Document:

EX-4.1

 Exhibit 4.1 
  

 
  
  

 
 LONG TERM INCENTIVE PLAN 
  

 
 Effective as of April 7, 2015 

 NOVADAQ TECHNOLOGIES INC. 

LONG TERM INCENTIVE PLAN 

The purpose of this Plan is to advance the interests of the Company by: (i) providing Eligible Persons with additional incentives;
(ii) rewarding performance by Participants; (iii) increasing the proprietary interest of Participants in the success of the Company; (iv) encouraging Participants to remain with the Company or its Affiliates; and (v) attracting
new directors, employees, officers and Consultants to the Company or its Affiliates. 
 ARTICLE 1 

INTERPRETATION; ADMINISTRATION 
  

	Section 1.1	Definitions 

 For the purposes of this Plan, the following terms shall have the
following meanings: 
  

	 	(a)	“Affiliate” has the meaning ascribed to that term under National Instrument 45-106 – Prospectus and Registration Exemptions, as amended from time to time; 

 

	 	(b)	“Annual Board Retainer” means the annual retainer paid by the Company to a director in a Fiscal Year for service on the Board, together with Board committee fees, attendance fees and additional fees and
retainers to committee chairs; 

  

	 	(c)	“Applicable Withholding Taxes” has the meaning ascribed thereto in Section 3.4; 

  

	 	(d)	“Associate” has the meaning ascribed to that term under National Instrument 45-106 – Prospectus and Registration Exemptions, as amended from time to time; 

 

	 	(e)	“Award Date” means the date(s) during the Fiscal Year on which the Annual Board Retainer is awarded; 

  

	 	(f)	“Board” means the Board of Directors of the Company or, as applicable, such committee of the Board to which the Board may choose to delegate authority to administer the Plan; 

 

	 	(g)	“Business Day” means any day other than a Saturday, Sunday or statutory or civic holiday in the City of Toronto, Ontario; 

 

	 	(h)	“Cash Equivalent” means (a) if the Participant regularly receives salary, wages or Annual Board Retainer in United States dollars, the Market Value multiplied by the number of vested Units in the
Participant’s notional account, net of any Applicable Withholding Taxes, on the Settlement Date or DSU Termination Date, as applicable, or (b) the Market Value converted into the currency in which the Participant regularly receives wages,
salary or Annual Board Retainer, multiplied by the number of vested Units in the Participant’s notional account, net of any Applicable Withholding Taxes, on the Settlement Date or DSU Termination Date, as applicable. For greater certainty, the
conversion of the Market Value into the applicable currency will be based on the exchange rate provided by the Bank of Canada on the Settlement Date. 

  
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	 	(i)	“Change of Control Event” means: 

  

	 	(i)	a reorganization, amalgamation, merger or other business combination (or a plan of arrangement in connection with any of the foregoing), other than solely involving the Company and any one or more of its Affiliates,
with respect to which all or substantially all of the persons who were the beneficial owners of the Shares and other securities of the Company immediately prior to such reorganization, amalgamation, merger, business combination or plan of
arrangement do not, following the completion of such reorganization, amalgamation, merger, business combination or plan of arrangement, beneficially own, directly or indirectly, more than fifty percent (50%) of the resulting voting shares (on a
fully-diluted basis) of the Company or its successor; 

  

	 	(ii)	the sale to a person other than an Affiliate of the Company of all or substantially all of the Company’s assets; or 

  

	 	(iii)	a change in the composition of the Board, which occurs at a single meeting of the shareholders of the Company or upon the execution of a shareholders’ resolution, such that individuals who are members of the Board
immediately prior to such meeting or resolution cease to constitute a majority of the Board, without the Board, as constituted immediately prior to such meeting or resolution, having approved of such change; 

 

	 	(j)	“Company” means Novadaq Technologies Inc. or any successor thereof; 

  

	 	(k)	“Consultant” means a person or company, other than an employee, senior officer or director of the Company, that: (i) is engaged to provide services to the Company or an Affiliate, other than
services provided in relation to a distribution, (ii) provides the services under a written contract with the Company or an Affiliate, and (iii) spends or will spend a significant amount of time and attention on the affairs and business of
the Company or an Affiliate; 

  

	 	(l)	“Date of Grant” means the date on which a particular Unit is granted by the Board as evidenced by the Grant Agreement pursuant to which the applicable Unit was granted; 

 

	 	(m)	“Deferred Share Unit” or “DSU” means a unit designated as a Deferred Share Unit representing the right to receive one Share or the Cash Equivalent in accordance with the terms set forth
in the Plan; 

  

	 	(n)	“Disability” means the inability of a Participant to perform the duties associated with his or her position for 270 consecutive days as a result of his or her incapacity due to physical or mental
illness; 

  

  
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	 	(o)	“DSU Participant” means a director of the Company (who for greater certainty may also be an employee, if applicable) who has been designated by the Company for participation in the Plan and who has
agreed to participate in the Plan and to whom Deferred Share Units have or will be granted thereunder; 

  

	 	(p)	“DSU Payment Date” means, with respect to a Deferred Share Unit granted to a DSU Participant, no later than December 31 of the Fiscal Year following the Fiscal Year in which the DSU Termination
Date occurred; 

  

	 	(q)	“DSU Settlement Notice” means a notice, in the form contained in Schedule “F” attached hereto, by a DSU Participant to the Company electing the desired form of Settlement of Deferred Share
Units; 

  

	 	(r)	“DSU Termination Date” of a DSU Participant means the day that the DSU Participant ceases to be a director and, if applicable, an employee of the Company for any reason including, without limiting the
generality of the foregoing, as a result of retirement, death, voluntary or involuntary termination, Disability or resignation; 

  

	 	(s)	“Effective Date” has the meaning ascribed thereto in Section 2.1(1); 

  

	 	(t)	“Elected Amount” has the meaning ascribed thereto in Section 6.3(1); 

  

	 	(u)	“Election Notice” has the meaning ascribed thereto in Section 6.3(1); 

  

	 	(v)	“Eligible Person” means any director, officer, employee or Consultant of the Company or any of its Affiliates and any such person’s personal holding company, as designated by the Board in a
resolution; 

  

	 	(w)	“Expire” means, with respect to a Unit, the termination of such Unit, on the occurrence of which such Unit is void, incapable of settlement, and of no value whatsoever; and “Expires” and
“Expired” have a similar meanings; 

  

	 	(x)	“Fiscal Year” means the fiscal year of the Company, which as of the Effective Date is the annual period commencing January 1 and ending the following December 31; 

 

	 	(y)	“Grant Agreement” means an agreement between the Company and a Participant under which a Unit is granted, substantially in the form attached hereto as Schedule “A” in reference to RSUs, and
Schedule “D” in reference to DSUs, as each may be amended from time to time; 

  

	 	(z)	“Insider” has the meaning ascribed to that term under the Securities Act (Ontario), as amended from time to time, and shall include Associates and Affiliates of the Insider, and shall include only those
Insiders who are “reporting insiders” as defined in National Instrument 55-104 – Insider Reporting Requirements and Exemptions; 

  
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	 	(aa)	“ITA” means the Income Tax Act (Canada), and the regulations thereunder; 

  

	 	(bb)	“Market Value” at any date in respect of the Shares, means the volume weighted average trading price of all Shares traded on the NASDAQ Stock Market for the five (5) trading days immediately
preceding such date (or, if such Shares are not listed and posted for trading on the NASDAQ Stock Market, on the TSX or such other stock exchange on which such Shares are listed and posted for trading as may be selected for such purpose by the
Board). In the event that such Shares are not listed and posted for trading on any stock exchange, the Market Value shall be the fair market value of such Shares as determined by the Board in its sole and absolute discretion; 

 

	 	(cc)	“Participant” means a RSU Participant or a DSU Participant, as applicable; 

  

	 	(dd)	“Performance Criteria” shall mean criteria, if any, established by the Board which, without limitation, may include criteria based on the financial performance of the Company and/or an Affiliate;

  

	 	(ee)	“Plan” means this Long Term Incentive Plan, as amended from time to time; 

  

	 	(ff)	“Restricted Share Unit” or “RSU” means a unit granted or credited to a RSU Participant’s notional account pursuant to the terms of this Plan that, subject to the provisions hereof,
entitles a RSU Participant to receive one Share or the Cash Equivalent in accordance with the terms set forth in the Plan; 

  

	 	(gg)	“RSU Participant” means an Eligible Person who has been designated by the Company for participation in the Plan and who has agreed to participate in the Plan and to whom a Restricted Share Unit has been
granted or will be granted thereunder; 

  

	 	(hh)	“RSU Settlement Notice” means a notice, in the form contained in Schedule “B” attached hereto, by a RSU Participant to the Company electing to settle vested Restricted Share Units;

  

	 	(ii)	“RSU Termination Date” means the date on which a RSU Participant ceases to be an Eligible Person as a result of a termination of employment with the Company or an Affiliate for any reason, including
death, retirement, Disability or resignation. For the purposes of the Plan, a RSU Participant’s employment with the Company or an Affiliate shall be considered to have terminated effective on the last day of the RSU Participant’s actual
and active employment with the Company or Affiliate, whether such day is selected by agreement with the individual, or unilaterally by the RSU Participant or the Company or Affiliate, and whether with or without advance notice to the RSU
Participant. For the avoidance of doubt, no period of notice or pay in lieu of notice that is given or that ought to have been given under applicable law in respect of such termination of employment that follows or is in respect of a period after
the RSU Participant’s last day of actual and active employment shall be considered as extending the RSU Participant’s period of employment for the purposes of determining his or her entitlement under the Plan; 

  
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	 	(jj)	“RSU Vesting Date” means the date or dates determined in accordance with the terms of the Grant Agreement entered into in respect of such Restricted Share Units (as described in Section 4.4), on
and after which a particular Restricted Share Unit may be settled, subject to amendment or acceleration from time to time in accordance with the terms hereof; 

  

	 	(kk)	“Settlement Date” has the meaning ascribed thereto in Section 5.1(1); 

  

	 	(ll)	“Share” means a common share in the capital of the Company, and includes any shares of the Company into which such common shares may be converted, reclassified, redesignated, subdivided, consolidated,
exchanged or otherwise changed; 

  

	 	(mm)	“Shareholders” means holders of Shares; 

  

	 	(nn)	“Stock Option Plan” has the meaning ascribed thereto in Section 3.10(1)(a); 

  

	 	(oo)	“Substitution Event” means (i) a Change of Control, or (ii) a merger, amalgamation, arrangement, business combination or other transaction pursuant to which the Shares of the Company are
converted into, or exchanged for, other property, whether in the form of securities of another entity, cash or otherwise; 

  

	 	(pp)	“Termination Notice” has the meaning ascribed thereto in Section 6.4(1); 

  

	 	(qq)	“TSX” means the Toronto Stock Exchange; and 

  

	 	(rr)	“Units” means DSUs and RSUs, as applicable. 

 ARTICLE 2 

CONSTRUCTION AND INTERPRETATION 
  

	Section 2.1	Effective Date. 

  

	(1)	This Plan was initially adopted by the Board on April 7, 2015 (the “Effective Date”), subject to the acceptance and approval of the Plan by the TSX and the Shareholders. Any Units granted to
Participants prior to the Plan being accepted and approved by Shareholders shall be subject to such approval and acceptance being given and no such Units may be settled unless and until such approval and acceptance are given. 

 

	(2)	Should any changes to this Plan be required by any securities commission or other governmental body of any jurisdiction of Canada to which this Plan has been submitted or by any stock exchange on which the Shares may
from time to time be listed, such changes will be made to this Plan as are necessary to conform with such requests and, if such changes are approved by the Board, this Plan, as amended, will remain in full force and effect in its amended form as of
and from that date. 

  
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	Section 2.2	Currency. 

 All references in the Plan to currency refer to lawful currency of Canada.

  

	Section 2.3	Applicable Laws. 

 The Plan shall be governed by and construed in accordance with the
laws of the Province of Ontario and the federal laws of Canada applicable therein. 
  

	Section 2.4	Validity. 

 If any provision of the Plan or part hereof is determined to be void or
unenforceable in whole or in part, such determination shall not affect the validity or enforcement of any other provision or part thereof. 
  

	Section 2.5	References. 

 In the Plan, references to the masculine include the feminine; reference
to the singular shall include the plural and vice versa, as the context shall require. 
  

	Section 2.6	Headings. 

 Headings wherever used herein are for reference purposes only and do not
limit or extend the meaning of the provisions herein contained. 
 ARTICLE 3 

GENERAL PROVISIONS 
  

	Section 3.1	Administration. 

  

	(1)	The Board shall administer this Plan; however, notwithstanding the foregoing or any other provision contained herein, the Board shall have the right to delegate the administration and operation of this Plan, in whole or
in part, to a committee of the Board and/or to any member thereof. For greater certainty, any such delegation by the Board may be revoked at any time at the Board’s sole discretion. In the event of any such delegation by the Board, references
made to the Board herein, shall, as applicable, include a committee of the Board and/or any member thereof. Nothing contained herein shall prevent the Board from adopting other or additional Share compensation arrangements or other compensation
arrangements. 

  

	(2)	Subject to the terms and conditions set forth herein, the Board has the authority: (i) to grant Restricted Share Units to RSU Participants; (ii) to grant Deferred Share Units to DSU Participants; (iii) to
determine the terms, including the limitations, restrictions, vesting period and conditions (including any Performance Criteria), if any, of such grants; (iv) to interpret this Plan and all agreements entered into hereunder; (v) to adopt,
amend and rescind such administrative guidelines and other rules relating to this Plan as it may from time to time deem advisable; and (vi) to make all other determinations and to take all other actions in connection with the implementation and
administration of this Plan as it may deem necessary or advisable. The Board’s guidelines, rules, interpretations, and determinations shall be conclusive and binding upon the Company, its Affiliates, and all Participants and their heirs,
executors, legal personal representatives and beneficiaries. 

  
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	(3)	No member of the Board or any person acting pursuant to authority delegated by it hereunder shall be liable for any action or determination in connection with the Plan made or taken in good faith, and each member of the
Board and each such person shall be entitled to indemnification by the Company with respect to any such action or determination. 

  

	(4)	The Board may adopt such rules or regulations and vary the terms of this Plan and any grant hereunder as it considers necessary to address tax or other requirements of any applicable non-Canadian jurisdiction.

  

	(5)	The Plan shall not in any way fetter, limit, obligate, restrict or constrain the Board with regard to the allotment or issue of any Shares or any other securities in the capital of the Company other than as specifically
provided for in the Plan. 

  

	(6)	Shares issued or delivered to RSU Participants pursuant to the settlement of Restricted Share Units or to DSU Participants pursuant to the settlement of Deferred Share Units shall be subject to restrictions on resale
and transfer under applicable securities laws and the requirements of the TSX or other stock market on which any class of Shares are listed or quoted for trading, and any certificates representing such Shares shall bear, as required, a respective
legend in respect thereof. 

  

	Section 3.2	Rules and Regulations. 

 The Board is authorized, subject to the provisions of the Plan,
to establish such rules and regulations as it deems necessary for the proper administration of the Plan, and to make determinations and take such other action in connection with or in relation to the Plan as it deems necessary or advisable. Each
determination or action made or taken pursuant to the Plan, including interpretation of the Plan, shall be final and conclusive for all purposes and binding on all parties, absent manifest error. 

 

	Section 3.3	Amendment and Termination. 

  

	(1)	The Board may, in its sole discretion, suspend or terminate the Plan at any time or from time to time amend, revise or discontinue the terms and conditions of the Plan or of any Unit granted under the Plan and any Grant
Agreement relating thereto, subject to any required regulatory approval, provided that such suspension, termination, amendment, or revision will: 

  

	 	(a)	not adversely alter or impair any Unit previously granted except as permitted by the terms of this Plan; 

  

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

  
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	 	(c)	be subject to Shareholder approval, where required by law, the requirements of the TSX or this Plan. 

  

	(2)	If the Plan is terminated, the provisions of the Plan and any administrative guidelines and other rules and regulations adopted by the Board and in force with respect to outstanding Units will continue in effect as long
as any such Unit or any rights pursuant thereto remain outstanding and, notwithstanding the termination of the Plan, the Board will remain able to make such interpretations and amendments to the Plan or the Units as they would have been entitled to
make if the Plan was still in effect. 

  

	(3)	The Board shall have the power and authority to approve amendments relating to the Plan or to Units, without further approval of the Shareholders or Participants, to the extent such amendment: 

 

	 	(a)	is for the purpose of curing any ambiguity, error or omission in the Plan or to correct or supplement any provision of the Plan that is inconsistent with any provision of the Plan; 

 

	 	(b)	is necessary to comply with applicable law or the requirements of the TSX; 

  

	 	(c)	is an amendment to the Plan respecting administration and eligibility for participation under the Plan; 

  

	 	(d)	alters, extends or accelerates the terms of vesting applicable to any Units; 

  

	 	(e)	changes the termination provisions of a Unit or the Plan which does not entail an extension beyond the original expiry date of a Unit; 

 

	 	(f)	is an amendment to the Plan of a “housekeeping nature”; or 

  

	 	(g)	does not require Shareholder approval under applicable law (including, without limitation, the rules, regulations and policies of the TSX), provided that in the case of any alteration, amendment or variance referred to
in this Section 3.3, the alteration, amendment or variance does not: 

  

	 	(i)	amend the number of Shares issuable under the Plan; 

  

	 	(ii)	add any form of financial assistance by the Company for the exercise of a Unit; 

  

	 	(iii)	result in a material or unreasonable dilution in the number of outstanding Shares or any material benefit to a Participant; 

  

	 	(iv)	extend the time for which a Unit Expires beyond its original expiry date; 

  

	 	(v)	amend this Section 3.3, Section 3.10(1)(c), or Section 9.1; or 

  
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	 	(vi)	change the class of Eligible Persons under the Plan, which would have the potential of broadening or increasing participation by Insiders of the Company; 

and further provided that: 
  

	 	(vii)	any Units granted subject to the acceptance and approval of such amendments by the TSX shall be subject to such approval and acceptance being given and no such Units may be exercised unless and until such approval and
acceptance are given. 

  

	(4)	No such amendment to the Plan shall cause the Plan in respect of Restricted Share Units to cease to be a plan described in paragraph (k) of the definition of “salary deferral arrangement” in subsection
248(1) of the ITA or any successor to such provision. 

  

	(5)	No such amendment to the Plan shall cause the Plan in respect of Deferred Share Units to cease to be a plan described in regulation 6801(d) of the ITA or any successor to such provision. 

 

	Section 3.4	Applicable Tax Withholdings and Deductions. 

  

	(1)	Notwithstanding any other provision contained herein, and together with Section 5.4 and Section 6.10, the Company or the relevant Affiliate, as applicable, shall be entitled to withhold from any amount payable
to a Participant, either under this Plan or otherwise, such amounts as may be necessary so as to ensure that the Company or the relevant Affiliate is in compliance with the applicable provisions of the ITA or any other federal, provincial, state or
local law relating to the withholding of tax or other required deductions relating to the settlement of such Units (the “Applicable Withholding Taxes”). 

 

	(2)	It is the responsibility of the Participant to complete and file any tax returns which may be required within the periods specified in applicable laws as a result of the Participant’s participation in the Plan. The
Company shall not be held responsible for any tax consequences to a Participant as a result of the Participant’s participation in the Plan and the Participant shall indemnify and save harmless the Company from and against any and all loss,
liability, damage, penalty or expense (including legal expense), which may be asserted against the Company or which the Company may suffer or incur arising out of, resulting from, or relating in any manner whatsoever to any tax liability in
connection therewith. 

  

	Section 3.5	No Interest. 

 No interest or other amounts shall accrue to the Participant in respect
of any amount payable by the Company to the Participant under this Plan or any Unit. 
  

	Section 3.6	Costs. 

 The Company will be responsible for all costs relating to the administration of
the Plan. 

  
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	Section 3.7	Participation in this Plan. 

  

	(1)	Nothing contained in the Plan nor in any Unit granted hereunder shall be deemed to give any Participant any interest or title in or to any Shares or any rights as a Shareholder or any other legal or equitable right
against the Company, or any of its Affiliates whatsoever, including without limitation, the right to vote as a Shareholder and/or the right to participate in any new issue of Shares to existing holders of Shares, other than those rights relating to
Shares that have been issued by the Company upon the settlement of a Unit pursuant to the terms of this Plan. 

  

	(2)	Units shall be credited to an unfunded notional bookkeeping account established and maintained by the Company in the name of each Participant. Notwithstanding any other provision of the Plan to the contrary, a Unit
shall not be considered or construed as an actual investment in Shares. Participants shall have no legal or equitable rights, claims, or interest in any specific property or assets of the Company or any Affiliate. No assets of the Company or any
Affiliate shall be held in any way as collateral security for the fulfillment of the obligations of the Company or any Affiliate under this Plan. Any and all of the Company’s or any Affiliate’s assets shall be, and remain, the general
unrestricted assets of the Company or Affiliate. 

  

	(3)	The Company’s or any of its Affiliate’s obligation under this Plan shall be merely that of an unfunded and unsecured promise of the Company or such Affiliate to pay money in the future, and the rights of
Participants shall be no greater than those of unsecured general creditors. 

  

	(4)	The Company makes no representation or warranty as to the future Market Value of the Shares or with respect to any income tax matters affecting the Participant resulting from the grant or settlement of a Unit or
transactions in the Shares. With respect to any fluctuations in the Market Value of Shares, neither the Company, nor any of its directors, officers, employees, Shareholders or agents, shall be liable for anything done or omitted to be done by such
person or any other person with respect to the price, time, quantity or other conditions and circumstances of the issuance of Shares hereunder, or in any other manner related to the Plan. For greater certainty, no amount will be paid to, or in
respect of, a Participant under the Plan or pursuant to any other arrangement, and no additional Units will be granted to such Participant, to compensate for a downward fluctuation in the price of the Shares, nor will any other form of benefit be
conferred upon, or in respect of, a Participant for such purpose. 

  

	(5)	The Plan does not provide for any guarantee in respect of any loss or profit that may result from fluctuations in the Market Value of Shares. 

 

	Section 3.8	Right to Issue Other Shares. 

 The Company shall not by virtue of this Plan be in any
way restricted from declaring and paying stock dividends, issuing further Shares, repurchasing Shares, or varying or amending its share capital or corporate structure. 

  
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	Section 3.9	Regulatory Approval. 

 The grant of Units and the issuance of Shares pursuant to this
Plan are subject to compliance with all applicable laws, rules and regulations of all governmental and regulatory authorities and to the requirements of the TSX. The Participant agrees to: (i) comply with all such laws, rules regulations and
requirements; (ii) to furnish to the Company any information, report and/or undertakings required to comply with all such laws, rules, regulations and requirements; (iii) to fully cooperate with the Company in complying with such laws,
rules regulations and requirements; and (iv) to fully cooperate with the Company in complying with the provisions of the ITA and/or other tax laws, as applicable. 
  

	Section 3.10	Grant of Units, Shares Reserved and Participation Limits. 

  

	(1)	Subject to the provisions of this Plan, the Board may grant Units to Participants upon the terms, conditions and limitations set forth herein, in any Grant Agreement, and such other terms, conditions and limitations
permitted by and not inconsistent with this Plan as the Board may determine, provided that: 

  

	 	(a)	The maximum number of Shares which may be reserved for issuance under this Plan in respect of grants of Restricted Share Units to RSU Participants and grants of Deferred Share Units to DSU Participants and pursuant to
any other security based compensation arrangement of the Company (including under the Company’s second amended and restated stock option plan, adopted as of March 24, 2008, as it may be further amended (the “Stock Option
Plan”)) shall not exceed 10% of the issued and outstanding Shares from time to time on a non-diluted basis. 

  

	 	(b)	The number of Shares subject to any grants of Restricted Share Units or Deferred Share Units (or portions thereof) that: (i) have vested and been settled; or (ii) have Expired or been forfeited, surrendered,
cancelled or otherwise terminated prior to the delivery of the Shares pursuant to a grant of Restricted Share Units or Deferred Share Units shall, in each case, automatically become available to be made and subject to new grants under this Plan. In
addition, the number of Shares subject to grants of Restricted Share Units or Deferred Share Units (or portions thereof) that the Company settles in cash in lieu of settlement in Shares shall automatically become available to be made the subject of
new grants under this Plan; and 

  

	 	(c)	Unless the Company has received requisite Shareholder approval, under no circumstances shall this Plan, together with all of the Company’s previously established or proposed compensation or incentive plans or
mechanisms involving the issuance or potential issuance of Shares, including the Stock Option Plan, result, at any time, in: 

  

	 	(i)	the aggregate number of Shares issuable to Insiders (as a group) at any point in time exceeding 10% of the Company’s issued and outstanding Shares; 

  
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	 	(ii)	the issuance to Insiders (as a group), within a one-year period, of an aggregate number of Shares exceeding 10% of the Company’s issued and outstanding Shares; 

 

	 	(iii)	the aggregate number of Shares issuable to all non-employee directors of the Company exceeding 1% of the Company’s issued and outstanding Shares; or 

 

	 	(iv)	the grant to any individual non-employee director of the Company of more than $150,000 worth of Shares annually. 

For greater certainty, any reference herein to a “non-employee director” shall exclude any director who is also acting as, or was
acting as during the time of any grant of securities, the President, Chief Executive Officer and/or Chief Financial Officer of the Company. 

For greater certainty, any one-time initial equity grant upon a director joining the Board are excluded from each of the limitations set forth
in Section 3.10(1)(c)(iii) and Section 3.10(1)(c)(iv). 
  

	(2)	In the event that a Participant receives Shares from the Company in satisfaction of a grant of Restricted Share Units or Deferred Share Units during a Company-imposed black-out period, the Participant shall not be
entitled to sell or otherwise dispose of such Shares until such black-out period has expired. In the event that a Participant’s Units are set to Expire during a black-out period, such expiry date shall be automatically extended for ten
(10) Business Days after the expiry of the black-out period following the date the relevant black-out period is lifted, terminated or removed, in accordance with Sections 3.3(4) and 3.3(5). 

ARTICLE 4 

RESTRICTED SHARE UNITS 
  

	Section 4.1	Grant of Restricted Share Units. 

  

	(1)	Subject to the provisions of this Plan, the Board may grant Restricted Share Units to any Eligible Person upon the terms, conditions and limitations set forth herein and such other terms, conditions and limitations
permitted by and not inconsistent with this Plan as the Board may determine. 

  

	(2)	The grant of a Restricted Share Unit shall be evidenced by a Grant Agreement, signed on behalf of the Company. 

  

	(3)	The Company shall maintain a notional account for each RSU Participant, in which shall be recorded the number of vested and unvested Restricted Share Units granted or credited to such RSU Participant. 

 

	(4)	The grant of a Restricted Share Unit to a RSU Participant, or the settlement of a Restricted Share Unit, under the Plan shall neither entitle such RSU Participant to receive nor preclude such RSU Participant from
receiving subsequently granted Restricted Share Units. 

  
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	(5)	Each Grant Agreement shall describe the Performance Criteria, if any, established by the Board that must be achieved for Units to vest to the RSU Participant. 

 

	Section 4.2	Equivalence. 

 One (1) Restricted Share Unit is equivalent to one (1) Share.
Fractional Restricted Share Units are permitted under the Plan. 
  

	Section 4.3	Calculation. 

 The number of Restricted Share Units (including fractional Restricted
Share Units) granted at any particular time pursuant to this Plan will be calculated by dividing (i) the dollar amount of such grant by (ii) the Market Value of a Share on the Date of Grant. 

 

	Section 4.4	Vesting. 

 Except as otherwise provided in a RSU Participant’s Grant Agreement or
any other provision of this Plan, and subject to the Board’s ability to change the RSU Vesting Date of any Restricted Share Unit pursuant to Article 7 and Article 8: 
  

	(1)	1/3 of the Restricted Share Units granted pursuant to Section 4.1 shall vest on the first (1st) anniversary of the Date of Grant; 

 

	(2)	1/3 of the Restricted Share Units granted pursuant to Section 4.1 shall vest on the second (2nd) anniversary of the Date of Grant; and 

 

	(3)	1/3 of the Restricted Share Units granted pursuant to Section 4.1 shall vest on the third (3rd) anniversary of the Date of Grant. 

 

	Section 4.5	Adjustments. 

 Subject to any required approval by the TSX or regulatory authority, in
the case of any merger, amalgamation, arrangement, rights offering, subdivision, consolidation, or reclassification of the Shares or other relevant change in the capitalization of the Company, or stock dividend or distribution (excluding dividends
or distributions which may be paid in cash or in Shares at the option of the Shareholder), or exchange of the Shares for other securities or property, the Company shall make appropriate adjustments in the Shares issuable or amounts payable, as the
case may be, as determined as appropriate by the Board, to preclude a dilution or enlargement of the benefits hereunder, and any such adjustment (or non-adjustment) by the Company shall be conclusive, final and binding upon the RSU Participants.
However, no amount will be paid to, or in respect of, the RSU Participants under the Plan or pursuant to any other arrangement, and no additional Restricted Share Units will be granted to such RSU Participant to compensation for a downward
fluctuation in the Market Value of the Shares, nor will any other form of benefit be conferred upon, or in respect of, a RSU Participant for such purpose. 

  
 13 

 ARTICLE 5 

SETTLEMENT & EXPIRY 
  

	Section 5.1	Settlement of Restricted Share Units. 

  

	(1)	Except as otherwise provided in a RSU Participant’s Grant Agreement or any other provision of this Plan: 

  

	 	(a)	All of the vested Restricted Share Units covered by a particular grant may be settled on the first Business Day following their RSU Vesting Date (the “Settlement Date”), but in no event later than
December 31 of the third calendar year following the year in which the services giving rise to the award were rendered; and 

  

	 	(b)	Following the RSU Vesting Date in respect of an award of Restricted Share Units granted to a RSU Participant, a RSU Participant shall become entitled to deliver to the Company a RSU Settlement Notice in respect of any
or all vested Units which it desires to settle. The RSU Participant will, when requested by the Company, execute and deliver all such documents relating to the settlement of the vested Restricted Share Units which the Company deems necessary or
desirable. 

  

	(2)	Following the receipt by the Company of a RSU Settlement Notice, the Company shall elect to settle the Restricted Share Units through delivery of: 

 

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

  

	 	(b)	in the case of settlement for Shares, a share certificate to the RSU Participant representing Shares issued from treasury; or 

  

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

Subject to the foregoing, the decision as to mode of payment shall be made by the Board in its sole discretion, and a payment of the Cash
Equivalent and/or Shares, as the case may be, to any one RSU Participant shall not create any obligation for the Board to make a similar payment to any other RSU Participant. 
  

	Section 5.2	Determination of Amounts. 

  

	(1)	Cash Equivalent of Restricted Share Units. For purposes of determining the Cash Equivalent of Restricted Share Units to be made pursuant to Section 5.1(2)(a) or Section 5.1(2)(c), such
calculation will be made on the Settlement Date based on the Market Value on the Settlement Date multiplied by the number of vested Restricted Share Units in the RSU Participant’s Restricted Share Unit notional account which are being settled
on the Settlement Date, net of any Applicable Withholding Taxes. 

  
 14 

	(2)	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 RSU Participant upon settlement
of Restricted Share Units pursuant to Section 5.1(2)(b) or Section 5.1(2)(c), such calculation will be made on the Settlement Date, or if the Settlement Date is not a Business Day, on the next such Business Day, based on the whole number
of Shares equal to the whole number of vested Restricted Share Units then recorded in the RSU Participant’s Restricted Share Unit notional account that are being settled on the Settlement Date, net of any Applicable Withholding Taxes. Shares
issued from treasury will be issued in consideration for the past services of the RSU Participant to the Company and the entitlement of the RSU Participant under this Plan shall be satisfied in full by such issuance of Shares. As set out in
Section 5.3, the Company will, if applicable, also make a cash payment, net of any Applicable Withholding Taxes, to the RSU Participant with respect to the value of any fractional Restricted Share Units standing to the RSU Participant’s
credit after the maximum number of whole Shares have been issued by the Company as described above. 

  

	Section 5.3	Cash Payment. 

 If applicable, the Company shall also make a cash payment, net of any
Applicable Withholding Taxes, to the RSU Participant with respect to the value of fractional Restricted Share Units standing to the RSU Participant’s credit after the maximum number of whole Shares have been issued by the Company, calculated by
multiplying (i) the number of such fractional Restricted Share Units by (ii) the Market Value of such fractional Restricted Share Units on the Settlement Date. 
  

	Section 5.4	Applicable Withholding Taxes. 

  

	(1)	For greater certainty, unless not required under the ITA or any other applicable law, no cash payment will be made nor will Shares be issued until: 

 

	 	(a)	An amount sufficient to cover the Applicable Withholding Taxes payable on the settlement of such Restricted Share Units has been received by the Company (or withheld by the Company from the Cash Equivalent and/or cash
payment noted above if applicable); or 

  

	 	(b)	The RSU Participant undertakes to arrange for such number of Shares to be sold as is necessary to raise an amount equal to the Applicable Withholding Taxes, and to cause the proceeds from the sale of such Shares to be
delivered to the Company. 

  

	Section 5.5	Cancellation of Restricted Share Units. 

 Upon payment in full of the value of the
Restricted Share Units, the Restricted Share Units shall be cancelled and no further payments shall be made from the Plan in relation to such Restricted Share Units. 

  
 15 

	Section 5.6	Termination. 

 Except as the Board may otherwise determine or unless otherwise provided
in the RSU Participant’s Grant Agreement and regardless of any adverse or potentially adverse tax or other consequences, if a RSU Participant ceases to be an Eligible Person for any reason, including, without limitation, as a result of his or
her resignation, voluntary or involuntary termination, retirement, Disability, or death, any unvested Restricted Share Units held by such RSU Participant shall Expire on the RSU Termination Date. 

ARTICLE 6 
 DEFERRED
SHARE UNITS 
  

	Section 6.1	Grant of Deferred Share Units. 

  

	(1)	Subject to the provisions of this Plan, the Board may grant Deferred Share Units to a DSU Participant upon the terms, conditions and limitations set forth herein and such other terms, conditions and limitations
permitted by and not inconsistent with this Plan as the Board may determine. 

  

	(2)	The grant of a Deferred Share Unit shall be evidenced by a Grant Agreement, signed on behalf of the Company. 

  

	(3)	The Company shall maintain a notional account for each DSU Participant, in which shall be recorded the number of Deferred Share Units granted or credited to such Participant. 

 

	(4)	The grant of a Deferred Share Unit to a DSU Participant, or the settlement of a Deferred Share Unit, under the Plan shall neither entitle such DSU Participant to receive nor preclude such DSU Participant from receiving
subsequently granted Deferred Share Units. 

  

	Section 6.2	Equivalence. 

 One (1) Deferred Share Unit is equivalent to one (1) Share.
Fractional Deferred Share Units are permitted under the Plan. 
  

	Section 6.3	Election Notice; Elected Amount. 

  

	(1)	Subject to Board approval, a DSU Participant may elect by filing an election notice in the form of Schedule “C” attached hereto (the “Election Notice”), once each Fiscal Year, to be paid,
subject to any minimum amount that may be required by the Board, up to one hundred percent (100%) of his or her Annual Board Retainer in the form of Deferred Share Units (the “Elected Amount”), with the balance of such Annual
Board Retainer being paid in cash in accordance with the Company’s regular practices of paying such cash compensation. In the case of an existing DSU Participant, the election must be completed, signed and delivered to the Company by the end of
the Fiscal Year preceding the Fiscal Year to which such election is to apply. In the case of a new DSU Participant, the election must be completed, signed and delivered to the Company as soon as possible, and, in any event, no later than 30 days
after the director’s appointment, with such election to be effective on the first day of the fiscal quarter of the Company following the date of the Company’s receipt of the election until the final day of such Fiscal Year. For the first
year of the Plan, DSU Participants must make such election as soon as possible, and, in any event, no later than 30 days, after adoption of the Plan and the election shall be effective on the first day of the fiscal quarter of the Company following
the date of the Company’s receipt of the election until the final day of such Fiscal Year. If no election is made in respect of a particular Fiscal Year, the new or existing DSU Participant will be paid in cash in accordance with the
Company’s regular practices of paying such cash compensation. 

  
 16 

	(2)	In the absence of a designation to the contrary (including delivery of an Election Notice by a DSU Participant requesting that a greater or lesser percentage of his or her Annual Board Retainer be payable in the form of
Deferred Share Units relative to the percentage previously elected by such DSU Participant), the DSU Participant’s Election Notice shall remain in effect unless otherwise terminated. 

 

	Section 6.4	Termination Right. 

  

	(1)	Each DSU Participant is entitled to terminate his or her participation in the Plan by filing with the Chief Financial Officer of the Company, or such other officer of the Company designated by the Board, a notice
electing to terminate the receipt of additional Deferred Share Units in the form of Schedule “E” attached hereto (“Termination Notice”). Such Termination Notice shall be effective as of the date received by the Company.

  

	(2)	Thereafter, any portion of such DSU Participant’s Annual Board Retainer payable, and subject to comply with Section 6.3, all subsequent Annual Board Retainers shall be paid in cash in accordance with the
Company’s regular practices of paying such cash compensation. 

  

	(3)	For greater certainty, to the extent a DSU Participant terminates his or her participation in the Plan, he or she shall not be entitled to become a DSU Participant again until the Fiscal Year following the Fiscal Year
in which the Termination Notice becomes effective. 

  

	Section 6.5	Calculation. 

  

	(1)	The number of Deferred Share Units (including fractional Deferred Share Units) granted at any particular time pursuant to this Plan will be calculated by: 

 

	 	(a)	in the case of an Elected Amount, by dividing (i) the dollar amount of the Elected Amount allocated to the DSU Participant by (ii) the Market Value of a Share on the applicable Award Date; or

  

	 	(b)	in the case of a grant of Deferred Share Units pursuant to Section 6.1, by dividing (i) the dollar amount of such grant by (ii) the Market Value of a Share on the Date of Grant. 

 

	Section 6.6	Vesting. 

  

	(1)	All Deferred Share Units recorded in a DSU Participant’s Deferred Share Unit notional account shall vest on the DSU Termination Date, unless otherwise determined by the Board at its sole discretion and in
compliance with Section 3.3(5), subject to a determination of the Board made in accordance with Article 7 and Article 8. 

  
 17 

	(2)	DSU Participants will not have any right to receive any benefit under the Plan in respect of a Deferred Share Unit until the DSU Termination Date. 

 

	Section 6.7	Settlement in respect of Deferred Share Units. 

 In respect of an award of Deferred
Share Units granted to a DSU Participant, settlement shall be as soon as practicable following the DSU Termination Date and no later than the DSU Payment Date: 
  

	(1)	Subject to Section 6.7(2), the DSU Participant (or where the DSU Participant has died, a dependant or relation of the DSU Participant or the legal representative of the DSU Participant) will deliver to the Company
a DSU Settlement Notice, in the DSU Participant’s sole discretion, to elect to settle all Deferred Share Units in such DSU Participant’s notional account for their Cash Equivalent (determined in accordance with Section 6.8(1)), Shares
(determined in accordance with Section 6.8(2)) or a combination thereof. 

  

	(2)	If such DSU Settlement Notice is not received by the Company within 30 days prior to the DSU Payment Date, settlement shall take the form of the Cash Equivalent determined in accordance with Section 6.8(1), among
other provisions of this Plan. 

  

	(3)	Settlement of Deferred Share Units shall take place on the DSU Payment Date and in the form set out in the DSU Settlement Notice through: 

 

	 	(a)	in the case of settlement for their Cash Equivalent, a cheque to the Participant, a dependant or relation of the Participant or the Participant’s duly authorized legal representative, as the case may be,
representing the Cash Equivalent; 

  

	 	(b)	in the case of settlement for Shares, a share certificate to the Participant, a dependant or relation of the Participant or the Participant’s duly authorized legal representative, as the case may be, representing
Shares issued from treasury; or 

  

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

  

	Section 6.8	Determination of Amounts. 

  

	(1)	Cash Equivalent of Deferred Share Units. For purposes of determining the Cash Equivalent of Deferred Share Units to be made pursuant to Section 6.7(3)(a) or Section 6.7(3)(c), such calculation
will be made on the Market Value on the DSU Termination Date multiplied by the number of vested Deferred Share Units in the Participant’s Deferred Share Unit notional account, net of any Applicable Withholding Taxes, as of the DSU Termination
Date. 

  
 18 

	(2)	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 DSU Participant upon settlement
of Deferred Share Units pursuant to Section 6.7(3)(b) or Section 6.7(3)(c), such calculation will be made on the DSU Termination Date, or if the DSU Termination Date is not a Business Day, on the next such Business Day, based on the whole
number of Shares equal to the whole number of vested Deferred Share Units then recorded in the Participant’s Deferred Share Unit notional account that are being settled on the DSU Termination Date, net of any Applicable Withholding Taxes.
Shares issued from treasury will be issued in consideration for the past services of the DSU Participant to the Company and the entitlement of the DSU Participant under this Plan shall be satisfied in full by such issuance of Shares. As set out in
Section 6.9, the Company will, if applicable, also make a cash payment, net of any Applicable Withholding Taxes, to the Participant with respect to the value of any fractional Deferred Share Units standing to the Participant’s credit after
the maximum number of whole Shares have been issued by the Company as described above. 

  

	Section 6.9	Cash Payment. 

 If applicable, the Company shall also make a cash payment, net of any
Applicable Withholding Taxes, to the DSU Participant with respect to the value of fractional Deferred Share Units standing to the DSU Participant’s credit after the maximum number of whole Shares have been issued by the Company, calculated by
multiplying (i) the number of such fractional Deferred Share Units by (ii) the Market Value of such fractional Deferred Share Units on the applicable date. 
  

	Section 6.10	Applicable Withholding Taxes. 

 For greater certainty, unless not required under the ITA or any other
applicable law, no cash payment will be made nor will Shares be issued until: 
  

	 	(a)	An amount sufficient to cover the Applicable Withholding Taxes payable on the settlement of such Deferred Share Units has been received by the Company (or withheld by the Company from the Cash Equivalent and/or cash
payment noted above if applicable); or 

  

	 	(b)	The DSU Participant undertakes to arrange for such number of Shares to be sold as is necessary to raise an amount equal to Applicable Withholding Taxes, and to cause the proceeds from the sale of such Shares to be
delivered to the Company. 

  

	Section 6.11	Cancellation of Deferred Share Units. 

 Upon payment in full of the value of the
Deferred Share Units, the Deferred Share Units shall be cancelled and no further payments shall be made from the Plan in relation to such Deferred Share Units. 

  
 19 

	Section 6.12	Adjustments. 

 Subject to any required approval by the TSX or regulatory authority, in
the case of any merger, amalgamation, arrangement, rights offering, subdivision, consolidation, or reclassification of the Shares or other relevant change in the capitalization of the Company, or stock dividend or distribution (excluding dividends
or distributions which may be paid in cash or in Shares at the option of the Shareholder), or exchange of the Shares for other securities or property, the Company shall make appropriate adjustments in the Shares issuable or amounts payable, as the
case may be, as determined as appropriate by the Board, to preclude a dilution or enlargement of the benefits hereunder, and any such adjustment (or non-adjustment) by the Company shall be conclusive, final and binding upon the DSU Participants.
However, no amount will be paid to, or in respect of, the DSU Participants under the Plan or pursuant to any other arrangement, and no additional Deferred Share Units will be granted to such Participant to compensation for a downward fluctuation in
the price of the Shares, nor will any other form of benefit be conferred upon, or in respect of, a DSU Participant for such purpose. 

ARTICLE 7 

ASSUMPTION OR SUBSTITUTION OF UNITS 
  

	Section 7.1	Substitution 

  

	(1)	In the event of a Substitution Event, any surviving or acquiring company must, unless Article 8 applies: 

  

	 	(a)	Assume any Unit outstanding under the Plan on substantially the same economic terms and conditions as the Plan; or 

  

	 	(b)	Substitute or replace restricted share units and deferred share units, as applicable (including an award to acquire the same consideration paid to the securityholders of the Company in the transaction effecting the
Substitution Event) for those Restricted Share Units and Deferred Share Units outstanding under the Plan on substantially the same economic terms and conditions as the Plan. 

 

	(2)	In the event any surviving or acquiring company neglects or refuses (as determined by the Board, acting reasonably) to assume any Units or to substitute or replace similar restricted share units and deferred share
units, as applicable, for those outstanding Restricted Share Units and Deferred Share Units under the Plan in connection with a Substitution Event, then with respect to any Units held by Participants, the vesting of such Units will automatically and
without further action by the Board or the Company be immediately accelerated so that such Units will be fully vested. 

  

	(3)	Notwithstanding any other provision of this Plan, in the event of a potential Substitution Event, the Board may, in its discretion: (i) terminate, conditionally or otherwise and on such terms as it sees fit, the
Units not settled following successful completion of such Substitution Event; and (ii) accelerate, conditionally or otherwise and on such terms as it sees fit, the vesting of Units or otherwise modify the terms of the Units to assist the
Participants to obtain the advantage of holding Shares during the Substitution Event. If the Substitution Event referred to in this Article 7 is not completed during the time specified therein (as the same may be extended), the Units which vested
pursuant to this Article 7 will be reinstated as unvested Units and the original terms applicable to such Units will apply. If any of the Units that vested pursuant to this Article 7 were settled, the applicable Shares or the Cash Equivalent must be
returned to the Company and any Shares shall be cancelled. The determination of the Board in respect of any such Substitution Event will for the purposes of this Plan be final, conclusive and binding. 

  
 20 

 ARTICLE 8 

TAKE-OVER BIDS 
  

	Section 8.1	Take-over Bids 

  

	(1)	In the event of a “potential change of control following a take-over bid” (as defined herein), the Board may, in its discretion, conditionally or otherwise and on such terms as it sees fit, accelerate the
vesting of all of a Participant’s unvested Units to a date prior to the expiry date of such take-over bid or offer, such that all of a Participant’s Units will immediately vest at such time and the RSU Vesting Date or the DSU Termination
Date, as applicable, in connection with such Units will be adjusted accordingly. Subject to Section 3.3(5). Subject to Section 3.3(5), in such event, all Units so vested may be settled conditionally or otherwise, from such date until their
respective expiry date so as to permit the Participant to tender the Shares received upon such settlement pursuant to the take-over bid or offer. For purposes of this Article 8, a “potential change of control following a take-over
bid” will be deemed to occur upon a formal take-over bid or tender offer for Shares being made as a result of which the offeror and its Affiliates or Associates, and each company, trust, partnership or other entity under common control with
any of them would, if successful, beneficially own, directly or indirectly, fifty percent (50%) or more of the Shares then outstanding. 

  

	(2)	Notwithstanding any other provisions of this Plan, in the event of a potential change of control following a take-over bid, the Board will have the power, if determined appropriate (i) to terminate, conditionally
or otherwise and on such terms as it sees fit, the Units not settled following successful completion of such event, and/or (ii) to modify the terms of the Units, conditionally or otherwise and on such terms as it sees fit, in order to assist
the Participants to tender their securities into the take-over bid. For greater certainty, in the event that the acquiring entity acquires one hundred percent (100%) of the outstanding Shares following the take-over bid, the Board will have the
power, if determined appropriate, to terminate the Units not settled upon the expiry of the time period for tendering Shares to the acquiring entity for purchase. 

 

	(3)	If the take-over bid referred to in this Article 8 is not completed within the time specified therein (as the same may be extended), the Units that vested pursuant to this Article 8 (if any) will be reinstated as
unvested Units and the original terms applicable to such Units will apply. If any of the Units that vested pursuant to this Article 8 (if any) were settled the applicable Shares or the Cash Equivalent must be returned to the Company, and any Shares
shall be cancelled. The determination of the Board with respect to any such event will for the purposes of this Plan be final, conclusive and binding. 

  
 21 

 ARTICLE 9 

ASSIGNMENT 
  

	Section 9.1	Successors and Assigns. 

 In no event may the rights or interests of a Participant under
the Plan be assigned, encumbered, pledged, transferred or alienated in any way, except to the extent that certain rights may pass to a beneficiary or legal representative upon death of a Participant, by will or by the laws of succession and
distribution. 
  

	Section 9.2	Rights and Obligations. 

 Rights and obligations under the Plan may be assigned by the
Company to a successor in the business of the Company. 
 ARTICLE 10 

GENERAL PROVISIONS 
  

	Section 10.1	Non-Exclusivity. 

 Nothing contained herein will prevent the Board from adopting other
additional compensation arrangements for the benefit of Eligible Persons, subject to any required regulatory or Shareholder approval. 
  

	Section 10.2	No Right to Continued Employment or Consultancy. 

 Nothing contained herein shall
(i) be construed as conferring upon any Participant the right to continued employment or consultancy, (ii) affect in any way the right of the Company or Shareholders to terminate such employment or consultancy, or (iii) affect in any
way the rights of any party contained in any agreement governing a Participant’s service as an employee or consultant or other agreement governing the Participant’s services to the Company. 

 

	Section 10.3	No Right to Continued Board Membership. 

 Nothing contained herein shall (i) be
construed as conferring upon any Participant the right to continue as a member of the Board, (ii) affect in any way the right of the Company or Shareholders to terminate such membership, or (iii) affect in any way the rights of any party
contained in any agreement governing a Participant’s service as a member of the Board or other agreement governing the Participant’s non-employee services to the Company. 

 

	Section 10.4	Reorganization of the Company. 

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

  
 22 

	Section 10.5	Notice 

 Any notice required to be given by this Plan shall be in writing and shall be
given by registered mail, postage prepaid, or delivered by courier or by facsimile transmission addressed, if to the Company, to the head office of the Company, Attention: Chief Financial Officer; or, if to a Participant, to such Participant at his
or her address as it appears on the books of the Company or in the event of the address of any such Participant not so appearing, then to the last known address of such Participant; or, if to any other person, to the last known address of such
person. 
  

	Section 10.6	Compliance with Legislation 

 The administration of the Plan shall be subject to and
performed in conformity with all applicable laws, regulations, orders of governmental or regulatory authorities and the requirements of any stock exchange on which the Shares are listed. Each Participant shall comply with all such laws, regulations,
rules, orders and requirements, and shall furnish the Company with any and all information and undertakings, as may be required to ensure compliance therewith. 

CONFIRMED as approved by the Board effective April 7, 2015. 

  
 23 

 ADDENDUM A TO NOVADAQ LONG TERM INCENTIVE PLAN 

U.S. TAXPAYERS 
 The terms and
conditions of this addendum (this “Addendum”) shall apply to Units granted to Participants subject to taxation in the United States (“US Participants”). The terms and conditions provided in this Addendum shall
supersede the terms of the Plan in the event of any inconsistency. 
  

	1.	Definitions. 

 All capitalized terms used in this Addendum and not otherwise defined shall have the meanings
set forth in the Plan; provided, however, that if a term is defined both in the Plan and in this Addendum, the definition in this Addendum shall control. 
  

	 	a.	“Change of Control Event” shall have the meaning set forth in the Plan, except that no event shall constitute a “Change of Control Event” unless it satisfies the requirements of U.S.
Treasury Regulation Section 1.409A-3(i)(5)(v), (vi) or (vii). 

  

	 	b.	“Code” means the U.S. Internal Revenue Code of 1986, as amended. 

  

	 	c.	“DSU Payment Date” means, with respect to a Deferred Share Unit granted to a US Participant, a date selected by the Company that is within 70 days after the DSU Termination Date. 

 

	 	d.	“DSU Termination Date” means the date on which a DSU Participant incurs a Separation From Service, regardless of the reason for such Separation From Service. 

 

	 	e.	“Eligible Person” means any director, officer, employee or Consultant of the Company or any Subsidiary, as designated by the Board in a resolution. 

 

	 	f.	An “RSU Settlement Notice” shall not apply to US Participants. 

  

	 	g.	“RSU Termination Date” means the date on which a US Participant incurs a Separation From Service, regardless of the reason for such separation from service. For the avoidance of doubt, no period of
notice or pay in lieu of notice that is given or that ought to have been given under applicable law in respect of a termination of employment or service that follows or is in respect of a period after the RSU Participant’s last day of actual
and active employment or service shall be considered as extending the RSU Participant’s period of employment or service for the purposes of determining his or her entitlement under the Plan or this Addendum. 

 

	 	h.	“Separation From Service” means a “separation from service” (within the meaning of Code Section 409A) from the Company and its Subsidiaries. 

  
 “A” - 1 

	 	i.	“Subsidiary” means, with respect to the Company, any corporation, partnership, association or other business entity of which fifty percent (50%) or more of the total voting power or value of the
equity securities is at the time owned or controlled, directly or indirectly, by the Company or one or more of the Subsidiaries of the Company or a combination thereof. 

 

	2.	Administration 

  

	 	a.	Notwithstanding anything contained in the Plan to the contrary, including without limitation, Article 3 of the Plan, neither the Board, the Company nor any Subsidiary may exercise any discretionary authority to
accelerate the timing of the settlement of any Units that are treated as “non-qualified deferred compensation” under Code Section 409A. 

  

	 	b.	In the event that a US Participant’s Units are set to Expire during a black-out period, such expiry date shall be automatically extended for ten (10) Business Days after the expiry of the black-out period
following the date the relevant black-out period is lifted, terminated or removed, in accordance with Sections 3.3(4) and 3.3(5) of the Plan; provided, however, that in no event shall such extension result in the settlement of the Units beyond the
latest date permitted by Code Section 409A. 

  

	3.	Restricted Share Units 

  

	 	a.	Unless a different settlement date is specified in a Grant Agreement, any vested Restricted Share Units shall be settled as set forth in Section 5.1(2) of the Plan within 70 days after the date on which such
Restricted Share Unit became vested (the specific date of settlement shall be determined by the Company). The date on which a Restricted Share Unit is settled is referred to as the “Settlement Date.” 

 

	4.	Deferred Share Units 

  

	 	a.	An Election Notice shall be irrevocable when made. Once an Election Notice is provided, a US Participant may not increase or decrease the Elected Amount, nor may a US Participant cancel such Election Notice. Instead,
changes to such election shall not become effective until the first day of the calendar year following the calendar year to which such Election Notice relates. 

  

	 	b.	A Termination Notice shall not be effective until the first day of the calendar year following the calendar year in which it is provided to the Company. 

 

	 	c.	DSUs shall be settled within 70 days after the DSU Termination Date (the specific date of settlement shall be determined by the Company). 

  
 “A” - 2 

	5.	Substitution Events; Takeover Bids 

  

	 	a.	Neither Article 7 nor Article 8 shall apply to US Participants. 

  

	 	b.	In the event of a Substitution Event that constitutes a Change of Control Event, (i) all outstanding Units that are treated as non-qualified deferred compensation under Code Section 409A shall become fully
vested (at 100% of target to the extent that any Performance Criteria are applicable to the Units) and shall be settled within 5 days after the occurrence thereof in the same form (and proportions) of consideration as received by the Shareholders
and (ii) with respect to Units that are not treated as non-qualified deferred compensation under Code Section 409A, the Board may decide to (1) accelerate the vesting and settlement of such Units, (2) cause the acquiring or
surviving company or a parent to assume such Units or issue replacement awards on substantially the same terms and having substantially the same economic value (as determined by the Board) or (3) take such other action with respect to such
Units as the Board determines to be appropriate, provided that such action complies with Code Section 409A. 

  

	 	c.	In the event of a Substitution Event that does not constitute a Change of Control Event, (i) the Board may determine to vest, in whole or in part, outstanding Units that are treated as non-qualified deferred
compensation under Code Section 409A, but the Board may not accelerate the settlement date of any such Units (nor may the acceleration of the vesting of any such Units result in the acceleration of the settlement date of such Units) and
(ii) with respect to Units that are not treated as non-qualified deferred compensation under Code Section 409A, the Board may decide to (1) accelerate the vesting and settlement of such Units, (2) cause the acquiring or surviving
company or a parent to assume such Units or issue replacement awards on substantially the same terms and having substantially the same economic value (as determined by the Board) or (3) take such other action with respect to such Units as the
Board determines to be appropriate, provided that such action complies with Code Section 409A. In addition, upon the occurrence of an event described in this Section 5(c), the Board may take the action described in clause (ii)(2) of the
preceding sentence with respect to Units that are treated as non-qualified deferred compensation under Code Section 409A to the extent permitted by Code Section 409A. 

  
 “A” - 2 

	6.	Code Section 409A 

  

	 	a.	The Plan and all Units are intended to comply with, or be exempt from, Code Section 409A and all regulations, guidance, compliance programs and other interpretative authority thereunder, and shall be interpreted in
a manner consistent therewith. Notwithstanding anything contained herein to the contrary, in the event any Unit is subject to Code Section 409A, the Board may, in its sole discretion and without a US Participant’s prior consent, amend the
Plan and/or Unit, adopt policies and procedures, or take any other actions as deemed appropriate by the Board to (i) exempt the Plan and/or any Unit from the application of Code Section 409A, (ii) preserve the intended tax treatment
of any such Unit or (iii) comply with the requirements of Code Section 409A. In the event that a US Participant is a “specified employee” within the meaning of Code Section 409A, and a payment or benefit provided for
under the Plan would be subject to additional tax under Code Section 409A if such payment or benefit is paid within six (6) months after such US Participant’s Separation From Service (within the meaning of Code Section 409A),
then such payment or benefit shall not be paid (or commence) during the six (6) month period immediately following such US Participant’s Separation From Service except as provided in the immediately following sentence. In such an event,
any payments or benefits that would otherwise have been made or provided during such six (6) month period and which would have incurred such additional tax under Code Section 409A shall instead be paid to the US Participant in a lump-sum,
without interest, on the earlier of (i) the first business day of the seventh month following the month in which such US Participant’s Separation From Service occurs or (ii) the tenth business day following such US Participant’s
death. A US Participant’s right to receive any installment payments under the Plan shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate
and distinct payment as permitted under Code Section 409A. Notwithstanding anything contained in the Plan or in a Grant Agreement to the contrary, neither the Company, any member of the Board nor any Affiliate or Subsidiary shall have any
liability or obligation to any US Participant or any other person for taxes, interest, penalties or fines (including without limitation any of the foregoing resulting from the failure of any Unit granted hereunder to comply with, or be exempt from,
Code Section 409A). Any Unit that is to be settled or paid upon a termination of employment or service and that constitutes “non-qualified deferred compensation” under Code Section 409A shall not be paid or settled unless
such termination of employment or service constitutes a Separation From Service. 

*        *        *       
 *        * 

  
 “A” - 2 

 Schedule “A” 

NOVADAQ TECHNOLOGIES INC. 

RESTRICTED SHARE UNIT GRANT AGREEMENT 

Restricted Share Unit Grant Agreement dated _________________, 20___ between NOVADAQ TECHNOLOGIES INC., a Company existing under the laws of
Canada (the “Company”) and __________________________, an individual residing in _______________________ (the “Participant”). 

WHEREAS the Company has adopted a Long Term Incentive Plan (the “Plan”, as it may be amended from time to time), which
Plan provides for the granting of Restricted Share Units to RSU Participants (as defined in the Plan) entitling RSU Participants to receive on settlement of vested Restricted Share Units, a Cash Equivalent (as defined in the Plan), Shares in the
capital of the Company or a combination thereof as determined by the Company; 
 AND WHEREAS the Company desires to continue to
receive the benefit of the services of the Participant and to more fully align his or her interest with the Company’s future success; 

AND WHEREAS the board of directors of the Company (the “Board”) approved the granting of a Restricted Share Unit to
the Participant, upon the terms and conditions hereinafter provided; 
 AND WHEREAS the Company desires to grant to the Participant a
Restricted Share Unit upon the terms and conditions hereinafter provided; 
 AND WHEREAS capitalized terms used and not otherwise
defined in this Grant Agreement shall have the meanings set forth in Addendum A to the Plan (the “Addendum”); 
 NOW
THEREFORE in consideration of the foregoing and the mutual agreements contained herein and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows: 

 

	 	1.	Restricted Share Units. The Company hereby grants to the Participant, as of _____________, 20____, subject to the terms and conditions hereinafter set forth, _________________ Restricted Share Units (the
“Restricted Share Units”), vesting in accordance with the terms of this Agreement and in accordance with the Plan. 

  

	 	2.	Vesting of the Restricted Share Units. Subject to the vesting restrictions in Section 3 below (if any) the Restricted Share Units shall vest according to the following table: 

 

			
	 Date
		 % of Restricted Share Units Vested

		
	     ●    
		1/3, for a total of 1/3 vested
		
	     ●    
		1/3 additional, for a total of 2/3 vested
		
	     ●    
		1/3 additional, for a total of 100% vested

  
 SA-1 

	 	3.	Performance Criteria. Vesting of Restricted Share Units under Section 2 above is subject to the Company meeting the following performance criteria: 

 
  

 
  

	 	4.	Subject to Plan. This Restricted Share Units shall be subject in all respects to the provisions of the Plan and the Addendum, the terms and conditions of which are hereby expressly incorporated by
reference, as same may be amended from time to time in accordance therewith. A copy of the Plan and the Addendum shall be provided to the Participant upon his or her reasonable request from time to time. 

 

	 	5.	Shareholder Rights. A Participant shall have no rights whatsoever as a shareholder in respect of any of the Restricted Share Units. 

 

	 	6.	Transfer of Restricted Share Unit. The Restricted Share Units granted pursuant to this Agreement shall not be assignable or transferable by the Participant, except in accordance with the Plan.

  

	 	7.	Notice. Any notice required or permitted to be given hereunder shall be given in accordance with, and subject to, the provisions of the Plan. 

 

	 	8.	Governing Law. This Agreement and the Restricted Share Units 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. 

  

	 	9.	French Language. The parties agree that this Agreement as well as all documents relating thereto be drawn up in the English language only. Les parties seront censes avoir requis que cette contrat de meme
que tous les documents s’y rattachant soient rediges en anglais seulement. 

 IN WITNESS WHEREOF the parties have caused this
Restricted Share Unit agreement to be executed as of the date hereof. 
  

			
	NOVADAQ TECHNOLOGIES INC.
		
	Per:		 
			Authorized Signing Officer

 NAME OF PARTICIPANT: ________________________ 

SIGNATURE OF PARTICIPANT: ________________________ 

Address: __________________________________________________________ 

  
 SA-2 

 Schedule “B”1 

NOVADAQ TECHNOLOGIES INC. 

RSU SETTLEMENT NOTICE 
 I,
_______________________________________________________, in respect of the 
 (print name) 

Restricted Share Units that were granted to me on _______________________________ by Novadaq Technologies Inc. (the “Company”) pursuant
to the Company’s Long Term Incentive Plan (the “Plan”), hereby elect to settle _________________ Restricted Share Units (including for any fractional Restricted Share Units). Capitalized terms used but not defined herein have
the meaning given to them in the Plan. 
 If the Company elects to settle my Restricted Share Units by paying me the Cash Equivalent for my Restricted Share
Units, I acknowledge that the Company will deduct Applicable Withholding Taxes in accordance with the Plan. 
 If the Company elects to settle my Restricted
Share Units by issuing me Shares, I understand that the Company may provide me with additional instructions to: 
  

	 	•	 	tender cash, a certified cheque, a bank draft or money for full payment for all Applicable Withholding Taxes; or 

  

	 	•	 	require me to undertake to direct that a number of Shares be sold, and the proceeds of such Shares be delivered to the Company, for full payment for all Applicable Withholding Taxes. 

 

							
				
	Date		   
		  
		   

							Participant’s Signature
				
	  
		  
		  
		   

							(Print name)

  
  
  

 
  
  

 

	1 	Not applicable to US Participants. 

  
 SB-1 

 Schedule “C” 

NOVADAQ TECHNOLOGIES INC. (THE “COMPANY”) 

DSU ELECTION NOTICE 
 All capitalized
terms used herein but not otherwise defined shall have the meanings ascribed to them in Addendum A to the Plan (the “Addendum”). 

Pursuant to the Long Term Incentive Plan (the “Plan”), I hereby elect to receive _______% of my Annual Board Retainer in the
form of Deferred Share Units in lieu of cash. 
 I confirm that: 
  

	 	(a)	I have received and reviewed a copy of the terms of the Plan and the Addendum, and have reviewed, considered and agreed to be bound by the terms of this Election Notice and the Plan and the Addendum. 

 

	 	(b)	I have requested and am satisfied that the Plan and the foregoing be drawn up in the English language. Le soussigné reconnaît qu’il a exigé que le Régime et ce qui
précède soient rédigés et exécutés en anglais et s’en déclare satisfait. 

  

	 	(c)	I recognize that when Deferred Share Units are settled in accordance with the terms of the Addendum, income tax and other withholdings as required will arise at that time. Upon settlement of the Deferred Share Units,
the Company will make or arrange with me to make all appropriate withholdings as required by law at that time. 

  

	 	(d)	The value of Deferred Share Units is based on the value of the Common Shares of the Company and therefore is not guaranteed. 

The foregoing is only a brief outline of certain key provisions of the Plan and the Addendum. For more complete information, reference should
be made to the Plan and the Addendum. 
  

							
				
	Date:		   
		  
		   

							(Name of Participant)
				
	  
		  
		  
		   

							(Signature of Participant)

  
 SC-1 

 Schedule “D” 

NOVADAQ TECHNOLOGIES INC. 

DEFERRED SHARE UNIT GRANT AGREEMENT 

Name: _________________________ 

Award Date: _________________________ 

Novadaq Technologies Inc. (the “Company”) has adopted a Long Term Incentive Plan (the “Plan”). Your award is
governed in all respects by the terms of the Plan and Addendum A to the Plan (the “Addendum”), and the provisions of the Plan and the Addendum are hereby incorporated by reference. Capitalized terms used and not otherwise defined in
this Grant Agreement shall have the meanings set forth in the Addendum. If there is a conflict between the terms of this Grant Agreement and the Plan or the Addendum, the terms of the Plan or the Addendum, as applicable, shall govern. 

 

			
	 Your Award
		 The Company hereby grants to you ___________________ Deferred

Share Units.

 PLEASE SIGN AND RETURN A COPY OF THIS GRANT AGREEMENT TO THE COMPANY. 

By your signature below, you acknowledge that you have received a copy of the Plan and the Addendum, and have reviewed, considered and agreed
to the terms of this Grant Agreement and the Plan and the Addendum. 
 Signature: _______________________
                    Date: ___________________ 

On behalf of the Company: 

                _________________________________________ 

Name: 
 Title: 

 

  
 SD-1 

 Schedule “E” 

NOVADAQ TECHNOLOGIES INC. 

ELECTION TO TERMINATE RECEIPT OF ADDITIONAL DEFERRED SHARE UNITS 

All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in Addendum A to the Plan
(the “Addendum”). 
 Notwithstanding my previous election on the DSU Election Notice dated
__________________, I hereby elect to terminate my participation in the Plan effective as of the first day of the calendar year following the date this Termination Notice is received by Novadaq Technologies Inc. 

I understand that the Deferred Share Units already granted under the Plan cannot be settled until the DSU Termination Date. 

I confirm that I have received and reviewed a copy of the terms of the Plan and the Addendum, and agree to continue to be bound by the Plan
and the Addendum. 
  

							
				
	Date:		   
		  
		   

							(Name of Participant)
				
	  
		  
		  
		   

							(Signature of Participant)

  
 SE-1 

 Schedule “F” 

NOVADAQ TECHNOLOGIES INC. (THE “COMPANY”) 

DSU SETTLEMENT NOTICE 
 I,
_______________________________________________________, in respect of the 
 (print name) 

Deferred Share Units that were granted to me on _______________________________ by the Company pursuant to the Company’s Long Term Incentive Plan (the
“Plan”), hereby elect upon settlement of the Deferred Share Units (including for any fractional Deferred Share Units) to receive (check one): 

(    )     (i) the Cash Equivalent, calculated in accordance with Section 6.8(1) of the Plan; 

(    )     (ii) Shares, calculated in accordance with Section 6.8(2) of the Plan; or 

(    )     (iii) the Cash Equivalent for _____________ Deferred Share Units and Shares for ____________ Deferred
Share Units. 
 If I elect to receive the Cash Equivalent or a portion of my Deferred Share Units as a Cash Equivalent, I acknowledge that the Company will
deduct Applicable Withholding Taxes in accordance with the Plan. 
 If I elect to receive only Shares, I (check one): 

(    )     (i) enclose cash, a certified cheque, bank draft or money order payable to the Company in the amount of
$_________________ as full payment for the Applicable Withholding Taxes; 
 (    )     (ii) undertake to direct that
such number of Shares are to be sold, and the proceeds of such Shares delivered to the Company, as is necessary to put the Company in funds equal to the amount that would have otherwise been required in (i) above; or 

(    )     (iii) elect to settle for cash such number of Deferred Share Units as is necessary to raise funds
sufficient to cover such withholding taxes with such amount being withheld by the Company. 
  

							
				
	Date		   
		  
		   

							Participant’s Signature
				
	  
		  
		  
		   

							(Print name)

  
 SF-1EX-10.1

 Exhibit 10.1 

SAGENT PHARMACEUTICALS, INC. 

SETTLEMENT AGREEMENT AND MUTUAL RELEASE 

THIS SETTLEMENT AGREEMENT (“Agreement”) and Mutual Release is made as of the 8th day of May 2015 (the “Effective
Date”), by and among Sagent Pharmaceuticals, Inc. and its parents, subsidiaries and affiliates and each of their successors, assigns, officers, directors, employees, agents, attorneys, and representatives in their capacity as such
(collectively, “Sagent” or “the Company”) and James Hussey, his heirs, representatives, successors and assigns (“Hussey” or “the Executive”) (Hussey and Sagent are collectively
referred to herein as the “Parties”). 
 WHEREAS, Hussey and Sagent and, as applicable, certain of its affiliates are party to
that certain Employment Agreement, dated as of March 13, 2013, (the “Employment Agreement”); 
 WHEREAS, Sagent and
Hussey have mutually agreed that the Hussey’s employment with Sagent and its affiliates terminated effective March 25, 2015 (the “Termination Date”); and 

WHEREAS, the Parties desire to avoid the costs of litigation and seek to resolve the dispute between the Parties, and the Parties now have
agreed to the terms of a settlement in order to avoid any litigation and to fully and finally settle, compromise, resolve and release all claims, actions, disputes, grievances, disagreements, differences, debts, accounts, demands, contracts,
lawsuits and causes of action, known or unknown, that exist or may hereafter arise or accrue, without any admission or liability or wrongdoing, except as expressly provided below. 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, Sagent and Hussey agree and covenant as follows:

 1. Within five business days after the Effective Date, Sagent shall: a) pay Hussey $525,000 (five hundred twenty-five thousand U.S.
dollars), b) reimburse Hussey for reasonable attorney’s fees in the amount of $30,000, and c) pay Hussey $38,000 for COBRA obligations. 

2. In addition to the benefits provided in Paragraph 1, Sagent acknowledges that Hussey may exercise all of his stock options that had vested
as of the Termination Date (as conclusively set forth on Exhibit A) at any time up to and including one (1) year from the Termination Date for each Non-Qualified Stock Option Award Agreement between Hussey and Sagent. Hussey has forfeited all
stock options that had not vested as of the Termination Date. 
 3. Sagent agrees that it waives the non-competition requirements set forth
in Section 7(d) of the Employment Agreement. 
 4. Hussey agrees that the terms of this Agreement and the provisions identified in
Section 16 of the Employment Agreement, except for Section 7(d) of the Employment Agreement, survive the execution of the General Release. 

5. Hussey agrees that he shall not, whether orally or in writing, publicly criticize, denigrate or disparage Sagent with respect to any
matters arising through and including the Effective Date, and Sagent agrees that it shall not, whether orally or in writing, publicly criticize, 

 
denigrate or disparage Hussey with respect to any matters arising through and including the Effective Date; provided, however, that the restrictions in this Section shall not apply to any action
brought to enforce this Agreement, any other litigation between Sagent and Hussey with respect to matters arising after the Effective Date, and shall not bar any good faith response to any court order, lawful subpoena, or inquiry by a governmental
or regulatory organization or limit any good faith statements of fact that may be made by a party in response to or in defense against any claim made by a third party. 

6. In exchange for the good and valuable consideration set forth in this Agreement, and subject to Section 11 below, Hussey (with
the exception of the terms and obligations of this Agreement, as to all of which Hussey reserves the right to enforce), releases and discharges Sagent, and each of its former and current successors, assigns, officers, directors, partners, employees,
agents, attorneys, and representatives in their capacity as such (and, along with Sagent, the “Sagent Released Parties”) of and from any and all rights, claims, demands, debts, dues, sums of money, accounts, attorneys’ fees
(except as provided in Section 1 above), complaints, judgments, executions, actions and causes of action of any nature whatsoever, cognizable at law or equity, whether known or unknown, which Hussey ever had, now has, or might hereafter have or
claim, against the Sagent Released Parties from the beginning of the world to the Effective Date, including, but not limited to, claims based upon, related to, arising out of, brought in, or that could have been based upon, related to, or arising
out of Hussey’s employment at or termination from Sagent, and any damages, harms, or any rights, claims, complaints or actions or causes of action which were or could have been asserted by Hussey in relation to the foregoing; provided, however,
that the foregoing release shall not terminate Hussey’s rights to indemnification in relation to any actual or threatened action, suit or proceeding, whether civil, criminal, administrative or investigative, with respect to which Hussey is made
or is threatened to be made a party or is otherwise involved (including, without limitation, as a witness), by reason of the fact that he was an officer or employee of Sagent or serving in another related role, all as such indemnification rights are
set forth in the Bylaws of Sagent or under applicable law, and shall not terminate the benefits of any related director and officer insurance maintained by Sagent. This release includes, without limitation, any and all statutory claims and/or claims
based upon race, age, gender, national origin, color, disability, religion, or any other violation of any equal employment opportunity law, ordinance, rule, regulation or order, including, but not limited to, any allegation, claim or violation,
arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as
amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the
Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or
tort, or under common law; or arising under any policies, practices or procedures of Employer; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; provided, however, that this Agreement specifically
does not release any claims that Hussey cannot waive by operation of law, including the right to file a charge with or participate in an investigation conducted by the Equal Employment Opportunity Commission (“EEOC”). Hussey is
waiving, however, his right to any monetary recovery or other relief should the EEOC or any other agency pursue claims on his behalf; provided, however, that nothing in this Section shall release the

  
 2 

 
Sagent Released Parties from a claim based upon any conduct that occurs after the Effective Date of this Agreement. The Sagent Released Parties shall each have third-party beneficiary rights with
respect to Hussey’s release of them pursuant to this Section 6 and shall be entitled to enforce the provisions of this Section 6. 

7. In exchange for the good and valuable consideration set forth in this Agreement, and subject to Section 11 below, Sagent (with the
exception of the terms and obligations of this Agreement, as to all of which Sagent reserves its right to enforce), releases and discharges Hussey of and from any and all rights, claims, demands, debts, dues, sums of money, accounts, attorneys’
fees, complaints, judgments, executions, actions and causes of action of any nature whatsoever, whether cognizable at law or equity, whether known or unknown, which Sagent ever had, now has, or might hereafter have or claim, against Hussey from the
beginning of the world to the Effective Date, including, but not limited to, claims based upon, related to, arising out of, brought in, or that could have been based upon, related to, or arising out of Hussey’s employment at or termination from
Sagent, and any damages, harms, or any rights, claims, complaints or actions or causes of action which were or could have been asserted by Sagent in relation to the foregoing, including but not limited to any and all claims related to breach of
fiduciary duty, conversion or misappropriation of Sagent assets; provided, however, that nothing in this Section shall release Hussey from a claim based upon any misappropriation or misuse that occurs after the Effective Date of this Agreement. 

8. Hussey expressly represents and warrants that he shall not disclose the fact of settlement, the existence of this Agreement, or the terms
of this Agreement to any third person without the prior express written consent of the Sagent Releasing Parties. Notwithstanding the foregoing, Hussey may disclose the existence and/or terms of this Agreement: (1) to his attorneys or
accountants, to the extent that such disclosure is necessary in the preparation of his tax returns; (2) pursuant to a securities regulatory request or to comply with a securities regulatory requirement or other legal obligation;
(3) pursuant to a duly-issued court or arbitration order; and (4) if the existence and/or terms of this Agreement have previously become publicly disclosed by Sagent pursuant to Paragraph 9(1) below. In the case of a disclosure required
pursuant to a duly-issued court or arbitration order, Hussey or his attorneys shall at the earliest opportunity notify Sagent of any request or order compelling disclosure of any of the terms of this Agreement or settlement so as to allow Sagent an
opportunity to take appropriate action to protect their interests. In the case of a disclosure required pursuant to a securities regulatory request, Hussey or his attorneys shall at the earliest opportunity notify Respondents of any request. 

9. Sagent expressly represents and warrants that it shall not disclose the fact of settlement, the existence of this Agreement, or the terms
of this Agreement to any third person without the prior express written consent of Hussey. Notwithstanding the foregoing, the Sagent Releasing Parties may disclose the existence and/or terms of this Agreement: (1) to the public in connection
with any required filing with the Securities and Exchange Commission or other regulatory body; (2) to their attorneys or accountants, to the extent that such disclosure is necessary in the preparation of their tax returns; (3) pursuant to
a securities regulatory request or to comply with a securities regulatory requirement or other legal obligation; (4) pursuant to a duly-issued court or arbitration order. In the case of a disclosure required pursuant to a duly-issued court or
arbitration order, Sagent or their attorneys shall at the earliest opportunity notify Hussey of any request or order compelling disclosure of any of the terms of this Agreement or 

  
 3 

 
settlement so as to allow Hussey an opportunity to take appropriate action to protect his interests. In the case of a disclosure required pursuant to a securities regulatory request, Sagent or
their attorneys shall at the earliest opportunity notify Hussey of any request. 
 10. The Parties hereby acknowledge and agree that, by
entering into this Agreement, they are not admitting any unlawful or otherwise wrongful conduct or liability of any kind. This Agreement will not be offered by or be admissible as evidence against any Party, nor will it be cited or referred to by
any Party in any action or proceeding, except an action to enforce this Agreement. In any action to enforce this Agreement in which this Agreement is admitted into evidence or otherwise considered, this Agreement will not constitute an admission by
any Party or a waiver of any claims or defenses any party may assert. 
 11. The Parties agree that, notwithstanding their execution of the
releases in Sections 6 and 7 above, (a) the terms and obligations of this Agreement are specifically excepted from and shall survive said releases, and all such terms and obligations shall be fully enforceable against the Parties, (b) the
terms and obligations of all Non-Qualified Stock Option Award Agreements pursuant to which Hussey received stock options that were vested as of the Termination Date are specifically excepted from and shall survive said releases, and Hussey may
exercise all options vested as of the Termination Date at any time up to and including one (1) years from the Termination Date and (c) subsequent to the execution of this Agreement, all of Hussey’s duties and obligations with respect
to Sagent Confidential Information (as that term is defined in Section 25 of the Employment Agreement), whether contractual, statutory, based on the common law or otherwise, shall continue. 

12. The Parties represent and warrant that their review and execution of this Agreement has been in consultation with their attorneys, that
they have been represented by competent counsel in connection with this matter, and that they understand their rights, obligations and undertakings under this Agreement. The Parties represent and warrant that they are entering into this Agreement
knowingly and voluntarily, and hereby waive any and all defenses to enforcement of this Agreement based on an alleged lack of such knowledge or free will, mutual mistake, unilateral mistake, or any defense based upon any allegation that a claim
existed which the Parties did not know or suspect to know to exist in their favor at the time of executing this Agreement, which if known would have materially affected this Agreement. 

13. This Agreement and its attachments constitute the entire agreement among the Parties with respect to the subject matters hereof, and based
solely on the representations and warranties, covenants and agreements contained herein, and not on the basis of any other representation, warranty, covenant, agreement, promise, statement, arrangement or understanding, written or oral, not
expressly set forth herein or therein. This Agreement may not be amended or modified except in a writing signed by both Parties and expressly stating that it is intended to amend this Agreement. 

14. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which taken together shall
constitute one and the same instrument. 
 15. The Parties hereby represent and warrant, as to the respective Party, that (a) as to the
corporate parties, each is duly incorporated and validly existing under the laws of the state of its incorporation, (b) the Party has the requisite power and authority to enter into this Agreement and to perform the obligations undertaken by
him or it hereunder, (c) as to the corporate parties, 

  
 4 

 
each has taken all necessary corporate, legal and any other internal actions to approve the entering into and performance of this Agreement and no further corporate, legal or other internal
approvals are necessary, (d) no other person or entity has had any interest in the claims, demands, obligations or causes of action referred to in this Agreement, (e) the Party is under no obligation or restriction that would in any way
interfere or conflict with his or its performance hereunder, (f) the Party does not presently have on file any claims, charges, grievances or complaints against any other Party in or with any administrative, state, federal or governmental
entity, agency board or court, or before any other tribunal or panel of arbitrators, public or private, based upon any acts or omissions by any Party relating to Hussey’s employment with or termination from Sagent occurring prior to the
Effective Date. 
 16. This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois, without
regard to the conflict of law provisions thereof. 
 17. All promises, representations, warranties, covenants and undertakings contained in
this Agreement shall be deemed material and shall be deemed to have been relied upon by the Parties and shall survive the execution of this Agreement until all obligations hereunder are completed. 

18. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. 

19. Any proceeding or action seeking equitable or other relief based on this Agreement must be commenced in a federal district court of
Illinois, (unless that Court lacks subject matter jurisdiction, in which case it may be commenced in any Illinois state court of competent jurisdiction). Each Party irrevocably waives any objection that it now has or hereafter may have to such
venue. 
 20. IN WITNESS WHEREOF the Parties have executed this Settlement Agreement and Mutual Release as of the day and date indicated
below. 
 (Signatures on next page) 

  
 5 

									
	EXECUTIVE:						Dated: May 8, 2015
				
	 /s/ James Hussey
						
	James Hussey						
				
	SAGENT PHARMACEUTICALS, INC.						Dated: May 8, 2015
					
	Name:		 /s/ Michael Logerfo
						
					
	Title:		 President
						

  
 6

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