Document:

Sphere 3D Corp. - Exhibit 4.2 - Filed by newsfilecorp.com

EXHIBIT 4.2

SPHERE 3D CORP. 

EMPLOYEE STOCK PURCHASE PLAN 

As Amended November 1, 2017

	1. 	
      PURPOSE

	 	 
		
      The purpose of this Plan is to assist Eligible Employees
      in acquiring a stock ownership interest in the Corporation, at a favorable
      price and upon favorable terms, pursuant to a plan which is intended to
      qualify as an “employee stock purchase plan” under Section 423 of the
      Code. This Plan is also intended to encourage Eligible Employees to remain
      in the employ of the Corporation or a Participating Subsidiary and to
      provide them with an additional incentive to advance the best interests of
      the Corporation.

	 	 
	2. 	
      DEFINITIONS

	 	 
		
      Capitalized terms used herein which are not otherwise
      defined shall have the following meanings.

“Account” means the bookkeeping
account maintained by the Corporation, or by a recordkeeper on behalf of the
Corporation, for a Participant pursuant to Section 7(a). 

“Board” means the Board of
Directors of the Corporation. 

“Code” means the U.S. Internal
Revenue Code of 1986, as amended from time to time. 

“Commission” means the U.S.
Securities and Exchange Commission. 

“Committee” means the committee
appointed by the Board to administer this Plan pursuant to Section 12. 

“Common Shares” means the
common shares, no par value, of the Corporation, and such other securities or
property as may become the subject of Options pursuant to an adjustment made
under Section 17. 

“Compensation” means an
Eligible Employee’s regular earnings, commissions and cash bonuses. Compensation
also includes any amounts contributed as salary reduction contributions to a
plan qualifying under Section 401(k), 125 or 129 of the Code. Any other form of
remuneration is excluded from Compensation, including (but not limited to) the
following: relocation or housing allowances, share option exercises, share
appreciation right payments, the vesting or grant of restricted shares, the
payment of share units, performance awards, auto allowances, tuition
reimbursement, perquisites, non-cash compensation and other forms of imputed
income. Notwithstanding the foregoing, Compensation shall not include any
amounts deferred under or paid from any nonqualified deferred compensation plan
maintained by the Corporation or any Participating Subsidiary. 

“Contributions” means the
bookkeeping amounts credited to the Account of a Participant pursuant to this
Plan, equal in amount to the amount of Compensation that the Participant has
elected to contribute for the purchase of Common Shares under and in accordance
with this Plan. 

“Corporation” means Sphere 3D
Corp., a corporation incorporated under the laws of the Province of Ontario, and
its successors. 

1 

“Date of Termination” means the
Eligible Employee’s last day of actual and active employment with the
Corporation or any of its Subsidiaries. For greater certainty, no period of
notice of termination, if any, or payment in lieu of notice that is given or
ought to have been given pursuant to the Eligible Employee’s applicable
employment agreement or at law that follows or is in respect of a period after
the last date of actual and active employment will be considered as extending
Eligible Employee’s period of employment for purposes of determining the
Eligible Employee’s entitlement under this Plan. 

“Effective Date” means the date
on which this Plan is initially approved by the shareholders of the Corporation.

“Eligible Employee” means any
employee of the Corporation, or of any Subsidiary which has been designated in
writing by the Committee as a “Participating Subsidiary.” Notwithstanding the
foregoing, “Eligible Employee” shall not include any employee: 

	 	(a) 	
      whose customary employment is for five (5) months or less
      in a calendar year; or

	 	 	 
	 	(b) 	
      whose customary employment is for twenty (20) hours or
      less per week.

“Exchange Act” means the U.S.
Securities Exchange Act of 1934, as amended from time to time. 

“Fair Market Value” on any date
means: 

	 	(a) 	
      if the Common Shares are listed or admitted to trade on a
      national securities exchange, the closing price of the Common Shares on
      such date on the principal national securities exchange on which the
      Common Shares are so listed or admitted to trade, or, if there is no
      trading of the Common Shares on such date, then the closing price of a
      share of Common Shares on such exchange on the next preceding date on
      which there was trading in the Common Shares;

	 	 	 
	 	(b) 	
      in the absence of exchange data required to determine
      Fair Market Value pursuant to the foregoing, the value as established by
      the Committee as of the relevant time for purposes of this
  Plan.

“Grant Date” means, with
respect to an Offering Period, the first day of that Offering Period. 

“Individual Limit” has the
meaning given to such term in Section 4(b). 

“New Purchase Date” has the
meaning given to such term in Section 18. 

“Offering Period” means the six
(6) consecutive month period commencing on each Grant Date; provided, however,
that the Committee may declare, as it deems appropriate and in advance of the
applicable Offering Period, a shorter (not to be less than three months)
Offering Period or a longer (not to exceed 27 months) Offering Period, and may
provide for such Offering Period to be divided into one or more “purchase
periods.” In the event that an Offering Period consists of more than one
purchase period, the Committee may provide in advance of that Offering Period
that if the Fair Market Value of the Ordinary Shares on the last day of any such
purchase period is lower than the Fair Market Value of the Common Shares on the
Grant Date of that Offering Period, that Offering Period will terminate at the
end of such purchase period and that each Participant in such terminated
Offering Period will be automatically enrolled in a new Offering Period that
commences immediately thereafter. 

2 

“Option” means the stock option
to acquire Common Shares granted to a Participant pursuant to Section 8. 

“Option Price” means the per
share exercise price of an Option as determined in accordance with Section 8(b).

“Parent” means any corporation
(other than the Corporation) in an unbroken chain of corporations ending with
the Corporation in which each corporation (other than the Corporation) owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one or more of the other corporations in the chain. 

“Participant” means an Eligible
Employee who has elected to participate in this Plan and who has filed a valid
and effective Subscription Agreement to make Contributions pursuant to Section
6. 

“Participating Subsidiary”
shall have the meaning given to such term in Section 19(c). 

“Plan” means this Sphere 3D
Corp. Employee Stock Purchase Plan, as it may be amended or restated from time
to time. 

“Purchase Date” means, with
respect to an Offering Period, the last day of that Offering Period. 

“Subscription Agreement ” means
the written agreement filed by an Eligible Employee with the Corporation
pursuant to Section 6 to participate in this Plan. 

“Subsidiary” means any
corporation (other than the Corporation) in an unbroken chain of corporations
(beginning with the Corporation) in which each corporation (other than the last
corporation) owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one or more of the other corporations in the
chain, subject to any applicable laws that may require a different
interpretation in respect of matters contemplated herein. 

	3. 	
      ELIGIBILITY

	 	 
		
      Any person employed as an Eligible Employee as of the
      beginning of any given Offering Period shall be eligible to participate in
      such Offering Period, subject to the Eligible Employee satisfying the
      requirements of Section 6.

	 	 
	4. 	
      STOCK SUBJECT TO THIS PLAN; SHARE
    LIMITATIONS

	 	(a) 	
      Aggregate Share Limit. Subject to the provisions
      of Section 17, the capital stock that may be delivered under this Plan
      will be the authorized but unissued Common Shares. The maximum number of
      Common Shares that may be delivered pursuant to Options granted under this
      Plan is 300,000 Common Shares, subject to adjustments pursuant to Section
      17.

	 	 	 
	 	(b) 	
      Individual Share Limit. The maximum number of
      Common Shares that any one individual may acquire upon exercise of his or
      her Option with respect to any one Offering Period is 300, subject to
      adjustments pursuant to Section 17 (the “Individual Limit”). The
      Committee may amend the Individual Limit as it applies to any particular Offering
      Period, effective no earlier than the first day of such Offering Period
      without shareholder approval.

3 

	 	(c) 	
      Shares Not Actually Delivered. Shares that are
      subject to or underlie Options, which for any reason are cancelled or
      terminated, are forfeited, fail to vest, or for any other reason are not
      paid or delivered under this Plan shall again, except to the extent
      prohibited by law, be available for subsequent Options under this
    Plan.

	5. 	
      OFFERING PERIODS

	 	 
		
      During the term of this Plan, the Corporation will grant
      Options to purchase Common Shares in each Offering Period to all
      Participants in that Offering Period. The Grant Date and Purchase Date of
      the initial Offering Period after the Effective Date will be established
      by the Committee in advance of the Offering Period. Unless otherwise
      specified in advance by the Committee, each Offering Period thereafter
      will be of approximately six (6) months duration, with the first such
      Offering Period commencing immediately after the Purchase Date of the
      initial Offering Period. Each Option shall become effective on the Grant
      Date of the Offering Period with respect to which the Option is granted.
      The term of each Option shall be the duration of the related Offering
      Period and shall end on the Purchase Date of that Offering Period.
      Offering Periods shall continue until this Plan is terminated in
      accordance with Section 18 or 19, or, if earlier, until no Common Shares
      remain available for Options pursuant to Section 4.

	 	 
	6. 	
      PARTICIPATION

	 	(a) 	
      Enrollment. An Eligible Employee may become a
      Participant in this Plan by completing a Subscription Agreement on a form
      approved by and in a manner prescribed by the Committee (or its delegate).
      To become effective, a Subscription Agreement must be signed by the
      Eligible Employee and be filed with the Corporation at the time specified
      by the Committee, but in all cases prior to the start of the Offering
      Period with respect to which it is to become effective, and must set forth
      a whole percentage (or, if the Committee so provides, a stated amount) of
      the Eligible Employee’s Compensation to be credited to the Participant’s
      Account as Contributions each pay period.

	 	 	 
	 	(b) 	
      Contribution Limits. Notwithstanding the
      foregoing, a Participant may not elect to contribute less than one percent
      (1%) nor more than fifteen percent (15%) (or such other limit as the
      Committee may establish prior to the start of the applicable Offering
      Period) of his or her Compensation during any one pay period as Plan
      Contributions. The Committee also may prescribe other limits, rules or
      procedures for Contributions.

	 	 	 
	 	(c) 	
      Content and Duration of Subscription Agreements.
      Subscription Agreements shall contain the Eligible Employee’s
      authorization and consent to the Corporation’s withholding from his or her
      Compensation the amount of his or her Contributions. An Eligible
      Employee’s Subscription Agreement, and his or her participation election
      and withholding consent thereon, shall remain valid for all Offering
      Periods until (1) the Eligible Employee’s participation terminates
      pursuant to the terms hereof, (2) the Eligible Employee files a new
      Subscription Agreement that becomes effective, or (3) the Committee
      requires that a new Subscription Agreement be executed and filed with the
      Corporation.

	7. 	
      METHOD OF PAYMENT OF
  CONTRIBUTIONS

	 	(a) 	
      Participation Accounts. The Corporation shall
      maintain on its books, or cause to be maintained by a recordkeeper, an
      Account in the name of each Participant. The percentage of Compensation
      elected to be applied as Contributions by a Participant shall be deducted
      from such Participant’s Compensation on each payday during the period for
      payroll deductions set forth below and such payroll deductions shall be credited to that
      Participant’s Account as soon as administratively practicable after such
      date. A Participant may not make any additional payments to his or her
      Account. A Participant’s Account shall be reduced by any amounts used to
      pay the Option Price of shares acquired, or by any other amounts
      distributed pursuant to the terms hereof.

4 

	 	(b) 	
      Payroll Deductions. Subject to such other rules as
      the Committee may adopt, payroll deductions with respect to an Offering
      Period shall commence on the first pay day which coincides with or
      immediately follows the applicable Grant Date and shall end on the last
      pay day which coincides with or immediately precedes the applicable
      Purchase Date, unless sooner terminated by the Participant as provided in
      Section 7(d) or until his or her participation terminates pursuant to
      Section 11.

	 	 	 
	 	(c) 	
      Changes in Contribution Elections for Next Offering
      Period. A Participant may discontinue, increase, or decrease the level
      of his or her Contributions (within the Plan limits) by completing and
      filing with the Corporation, on such terms as the Committee (or its
      delegate) may prescribe, a new Subscription Agreement which indicates such
      election. Subject to any other timing requirements that the Committee may
      impose, an election pursuant to this Section 7(c) shall be effective with
      the first Offering Period that commences after the Corporation’s receipt
      of such election, provided that a participant may, on one occasion only
      during an Offering Period, elect to decrease (but not increase) the level
      of his or her Contributions (subject to Section 6(b) by filing a new
      Subscription Agreement with the Corporation indicating such election,
      which election shall be effective as soon as administratively practicable
      following its receipt by the Corporation. Except as contemplated by the
      foregoing proviso and Section 7(d) and 7(e), changes in Contribution
      levels may not take effect during an Offering Period. Other modifications
      or suspensions of Subscription Agreements are not permitted.

	 	 	 
	 	(d) 	
      Withdrawal During an Offering Period. A
      Participant may terminate his or her Contributions during an Offering
      Period (and receive a distribution of the balance of his or her Account in
      accordance with Section 11) by completing and filing with the Corporation,
      in such form and on such terms as the Committee (or its delegate) may
      prescribe, a written withdrawal form which shall be signed by the
      Participant. Such termination shall be effective as soon as
      administratively practicable after its receipt by the Corporation. A
      withdrawal election pursuant to this Section 7(d) shall only be effective
      for a particular Offering Period, however, if it is received by the
      Corporation prior to the Purchase Date of that Offering Period (or such
      earlier deadline that the Committee may reasonably require to process the
      withdrawal prior to the applicable Purchase Date). Partial withdrawals of
      Accounts are not permitted.

	 	 	 
	 	(e) 	
      Discontinuance of Contributions During an Offering
      Period. A Participant may discontinue his or her Contributions at any
      time during an Offering Period by completing and filing with the
      Corporation, on such terms as the Committee (or its delegate) may
      prescribe, a new Subscription Agreement which indicates such election. If
      a Participant elects to discontinue his or her Contributions pursuant to
      this Section 7(e), the Contributions previously credited to the
      Participant’s Account for that Offering Period shall be used to exercise
      the Participant’s Option as of the applicable Purchase Date in accordance
      with Section 9 (unless the Participant makes a timely withdrawal election
      in accordance with Section 7(d), in which case such Participant’s Account
      shall be paid to him or her in cash in accordance with Section
    11(a)).

	8. 	
      GRANT OF OPTION

	 	(a) 	
      Grant Date; Number of Shares. On each Grant Date,
      each Eligible Employee who is a Participant during that Offering Period
      shall be granted an Option to purchase a number of Common Shares. The
      Option shall be exercised on the Purchase Date for that Offering Period.
      The number of Common Shares to be purchased upon exercise of the Option
      on the Purchase Date shall be determined by dividing the Participant’s
      Account balance as of that Purchase Date by the Option Price, subject to
      the limits of Section 8(c).

5 

	 	(b) 	
      Option Price. The Option Price per share of the
      shares subject to an Option for an Offering Period shall be the lesser
      of: (i) 85% of the Fair Market Value of a Share on the Grant Date of
      the Offering Period; or (ii) 85% of the Fair Market Value of a Share on
      the Purchase Date of that Offering Period; provided, however, that the
      Committee may provide prior to the start of any Offering Period that the
      Option Price for that Offering Period shall be determined by applying a
      discount amount (not to exceed 15%) to either (1) the Fair Market Value of
      Common Shares on the Grant Date of the Offering Period, or (2) the Fair
      Market Value of Common Shares on the Purchase Date of that Offering
      Period, or (3) the lesser of the Fair Market Value of Common Shares on the
      Grant Date of the Offering Period or the Fair Market Value of Common
      Shares on the Purchase Date of that Offering Period.

	 	 	 
	 	(c) 	
      Limits on Share Purchases. Notwithstanding
      anything else contained herein, the maximum number of shares subject to an
      Option for an Offering Period shall be subject to the Individual Limit in
      effect on the Grant Date of that Offering Period (subject to adjustment
      pursuant to Section 17) and any person who is otherwise an Eligible
      Employee shall not be granted any Option (or any Option granted shall be
      subject to compliance with the following limitations) or other right to
      purchase shares under this Plan to the extent:

	 	(1) 	
      it would, if exercised, cause the person to own stock
      (within the meaning of Section 423(b)(3) of the Code) possessing 5% or
      more of the total combined voting power or value of all classes of stock
      of the Corporation, or of any Parent, or of any Subsidiary; or

	 	 	 
	 	(2) 	
      such Option causes such individual to have rights to
      purchase stock under this Plan and any other plan of the Corporation, any
      Parent, or any Subsidiary which is qualified under Section 423 of the Code
      which accrue at a rate which exceeds $25,000 of the fair market value of
      the stock of the Corporation, of any Parent, or of any Subsidiary
      (determined at the time the right to purchase such stock is granted,
      before giving effect to any discounted purchase price under any such plan)
      for each calendar year in which such right is outstanding at any
    time.

For purposes of the foregoing, a right
to purchase stock accrues when it first become exercisable during the calendar
year. In determining whether the stock ownership of an Eligible Employee equals
or exceeds the 5% limit set forth above, the rules of Section 424(d) of the Code
(relating to attribution of stock ownership) shall apply, and stock which the
Eligible Employee may purchase under outstanding options shall be treated as
stock owned by the Eligible Employee. 

	9. 	
      EXERCISE OF OPTION

	 	(a) 	
      Purchase of Shares. Unless a Participant withdraws
      pursuant to Section 7(d) or the Participant’s Plan participation is
      terminated as provided in Section 11, his or her Option for the purchase
      of shares shall be exercised automatically on the Purchase Date for that
      Offering Period, without any further action on the Participant’s part, and
      the maximum number of whole Common Shares subject to such Option (subject
      to the limits of Section 8(c)) shall be purchased at the Option Price with
      the balance of such Participant’s Account.

	 	 	 
	 	(b) 	
      Account Balance Remaining After Purchase. If any
      amount which is not sufficient to purchase a whole share remains in a
      Participant’s Account after the exercise of his or her Option on
  the Purchase Date: (1) such amount shall
be credited to such Participant’s Account for the next Offering Period, if he or
she is then a Participant; or (2) if such Participant is not a Participant in
the next Offering Period, or if the Committee so elects, such amount shall be
refunded to such Participant as soon as administratively practicable after such
date. If the share limit of Section 4(a) is reached, any amount that remains in
a Participant’s Account after the exercise of his or her Option on the Purchase
Date to purchase the number of shares that he or she is allocated shall be
refunded to the Participant as soon as administratively practicable after such
date. If any amount which exceeds the limits of Section 8(c) remains in a
Participant’s Account after the exercise of his or her Option on the Purchase
Date, such amount shall be refunded to the Participant as soon as
administratively practicable after such date. The Participant’s Account shall be
reduced on a dollar-for-dollar basis by any amount used to purchase shares
hereunder or any amount refunded to the Participant. 

6 

	 	
       
	10. 	
      DELIVERY OF SHARES

	 	 
		
      As soon as administratively practicable after the
      Purchase Date, the Corporation shall, in its discretion, either deliver to
      each Participant a certificate representing the Common Shares purchased
      upon exercise of his or her Option, provide for the crediting of such
      shares in book entry form in the name of the Participant, or provide for
      an alternative arrangement for the delivery of such shares to a broker or
      recordkeeping service for the benefit of the Participant. In the event the
      Corporation is required to obtain from any commission or agency authority
      to issue any such certificate or otherwise deliver such shares, the
      Corporation will seek to obtain such authority. If the Corporation is
      unable to obtain from any such commission or agency authority which
      counsel for the Corporation deems necessary for the lawful issuance of any
      such certificate or other delivery of such shares, or if for any other
      reason the Corporation cannot issue or deliver Common Shares and satisfy
      Section 21, the Corporation shall be relieved from liability to any
      Participant except that the Corporation shall return to each Participant
      to whom such shares cannot be issued or delivered the amount of the
      balance credited to his or her Account that would have otherwise been used
      for the purchase of such shares.

	 	 
	11. 	
      TERMINATION OF EMPLOYMENT; CHANGE IN ELIGIBLE
      STATUS

	 	(a) 	
      General. Except as provided in Section 11(b) below
      and subject to applicable law, if a Participant ceases to be an Eligible
      Employee for any reason (including, without limitation, due to the
      Participant’s death, disability, resignation or retirement, or due to a
      layoff or other termination of employment with or without cause), or if
      the Participant elects to withdraw from the Plan pursuant to Section 7(d),
      at any time prior to the last day of an Offering Period in which he or she
      participates, such Participant’s Account shall be paid to him or her (or,
      in the event of the Participant’s death, to the person or persons entitled
      thereto under Section 13) in cash, and such Participant’s Option and
      participation in the Plan shall automatically terminate as of the Date of
      Termination, or date of withdrawal, as applicable.

	 	 	 
	 	(b) 	
      Change in Eligible Status; Leave of Absence.
      Subject to applicable law, if a Participant (1) ceases to be an Eligible
      Employee during an Offering Period but remains an employee of the
      Corporation or a Subsidiary through the Purchase Date for that Offering
      Period (for example, and without limitation, due to a change in the
      Participant’s employer from the Corporation or a Participating Subsidiary
      to a non-Participating Subsidiary, if the Participant’s employer ceases to
      maintain the Plan as a Participating Subsidiary but otherwise continues as
      a Subsidiary, or if the Participant’s customary level of employment no
      longer satisfies the requirements set forth in the definition of Eligible
      Employee), or (2) during an Offering Period commences a sick leave,
      military leave, or other leave of absence approved by the Corporation or a
      Participating Subsidiary, and the leave meets the requirements of Treasury Regulation Section
      1.421-1(h)(2) and the Participant is an employee of the Corporation or a
      Subsidiary or on such leave as of the applicable Purchase Date, such
      Participant’s Contributions shall cease (subject to Section 7(d)), and the
      Contributions previously credited to the Participant’s Account for that
      Offering Period shall be used to exercise the Participant’s Option as of
      the applicable Purchase Date in accordance with Section 9 (unless the
      Participant makes a timely withdrawal election in accordance with Section
      7(d), in which case such Participant’s Account shall be paid to him or her
      in cash in accordance with Section 11(a)).

7 

	 	(c) 	
      Re-Enrollment. A Participant’s termination from
      Plan participation precludes the Participant from again participating in
      this Plan during that Offering Period. However, such termination shall not
      have any effect upon his or her ability to participate in any succeeding
      Offering Period, provided that the applicable eligibility and
      participation requirements are again then met. A Participant’s termination
      from Plan participation shall be deemed to be a revocation of that
      Participant’s Subscription Agreement and such Participant must file a new
      Subscription Agreement to resume Plan participation in any succeeding
      Offering Period.

	 	 	 
	 	(d) 	
      Change in Subsidiary Status. For purposes of this
      Plan, if a Subsidiary ceases to be a Subsidiary, each person employed by
      that Subsidiary will be deemed to have terminated employment for purposes
      of this Plan (and the Date of Termination for such person shall be the
      date that Subsidiary ceases to be a Subsidiary), unless the person
      continues as an employee of the Corporation or another
  Subsidiary.

	12. 	
      ADMINISTRATION

	 	(a) 	
      The Committee. The Board shall appoint the
      Committee, which shall be composed of not less than two members of the
      Board. The Board may, at any time, increase or decrease the number of
      members of the Committee, may remove from membership on the Committee all
      or any portion of its members, and may appoint such person or persons as
      it desires to fill any vacancy existing on the Committee, whether caused
      by removal, resignation, or otherwise. The Board may also, at any time,
      assume the administration of all or a part of this Plan (including when
      actions hereunder may only be taken by the Board under applicable laws),
      in which case references (or relevant references in the event the Board
      assumes the administration of only certain aspects of this Plan) to the
      “Committee” shall be deemed to be references to the Board. Action of the
      Committee with respect to this Plan shall be taken pursuant to a majority
      vote or by the unanimous written consent of its members, and shall be in
      the manner and on the terms authorized by the Board. No member of the
      Committee shall be entitled to act on or decide any matter relating solely
      to himself or herself or solely to any of his or her rights or benefits
      under this Plan.

	 	 	 
	 	(b) 	
      Powers and Duties of the Committee. Subject to the
      express provisions of this Plan, the Committee shall supervise and
      administer this Plan in the manner and on the terms authorized by the
      Board and all applicable laws. Subject to the instructions of the Board,
      the Committee shall have the full authority and discretion: (1) to
      construe and interpret this Plan and any agreements defining the rights
      and obligations of the Corporation, any Subsidiary, and Participants under
      this Plan; (2) to further define the terms used in this Plan; (3) to
      prescribe, amend and rescind rules and regulations relating to the
      administration of this Plan (including, without limitation, deadlines for
      making elections or for providing any notices contemplated by this Plan,
      which deadlines may be more restrictive than any deadlines otherwise
      contemplated by this Plan); and (4) to make all other determinations and
      take such other action as contemplated by this Plan or as may be necessary
      or advisable for the administration of this Plan or the effectuation of
      its purposes. Notwithstanding anything else contained in this Plan to the
      contrary, the Committee may also adopt rules, procedures, separate
      offerings or sub-plans applicable to particular Subsidiaries or
      locations, which sub-plans may be designed to be outside the scope
      of Section 423 of the Code and need not comply with the otherwise
      applicable provisions of this Plan.

8 

	 	(c) 	
      Decisions of the Committee are Binding. Any action
      taken by, or inaction of, the Corporation, any Subsidiary, the Board or
      the Committee relating or pursuant to this Plan and within its authority
      hereunder or under applicable law shall be within the absolute discretion
      of that entity or body and shall be conclusive and binding upon all
      persons.

	 	 	 
	 	(d) 	
      Indemnification. Neither the Board nor any
      Committee, nor any member thereof or person acting at the direction
      thereof, shall be liable for any act, omission, interpretation,
      construction or determination made in good faith in connection with this
      Plan, and all such persons shall be entitled to indemnification and
      reimbursement by the Corporation in respect of any claim, loss, damage or
      expense (including, without limitation, attorneys’ fees) arising or
      resulting therefrom to the fullest extent permitted by law and/or under
      any directors and officers liability insurance coverage that may be in
      effect from time to time.

	 	 	 
	 	(e) 	
      Reliance on Experts. In making any determination
      or in taking or not taking any action under this Plan, the Committee or
      the Board, as the case may be, may obtain and may rely upon the advice of
      experts, including professional advisors to the Corporation. To the
      fullest extent permitted by law, no director, officer or agent of the
      Corporation or any Participating Subsidiary shall be liable for any such
      action or determination taken or made or omitted in good faith.

	 	 	 
	 	(f) 	
      Delegation. The Committee may delegate
      ministerial, non-discretionary functions to individuals who are officers
      or employees of the Corporation or a
Subsidiary.

	13. 	
      DESIGNATION OF BENEFICIARY

	 	 
		
      If the Committee permits beneficiary designations with
      respect to this Plan, then each Participant may file, on a form and in a
      manner prescribed by the Committee (or its delegate), a written
      designation of a beneficiary who is to receive any shares or cash from or
      with respect to such Participant’s Account under this Plan in the event of
      such Participant’s death. If a Participant is married and the designated
      beneficiary is not solely his or her spouse, spousal consent shall be
      required for such designation to be effective unless it is established (to
      the satisfaction of the Committee or its delegate) that there is no spouse
      or that the spouse cannot be located. The Committee may rely on the last
      designation of a beneficiary filed by a Participant in accordance with
      this Plan. Beneficiary designations may be changed by the Participant (and
      his or her spouse, if required) at any time on forms provided and in the
      manner prescribed by the Committee (or its delegate).

	 	 
		
      If a Participant dies with no validly designated
      beneficiary under this Plan who is living at the time of such
      Participant’s death (or in the event the Committee does not permit
      beneficiary designations under this Plan), the Corporation shall deliver
      all shares and/or cash payable pursuant to the terms hereof to the
      executor or administrator of the estate of the Participant, or if no such
      executor or administrator has been appointed, the Corporation, in its
      discretion and to the extent permitted by applicable law, may deliver such
      shares and/or cash to the spouse or to any one or more dependents or
      relatives of the Participant, or if no spouse, dependent or relative is
      known to the Corporation, then to such other person as the Corporation may
      designate.

	 	 
		
      If a Participant’s death occurs before the end of an
      Offering Period or subsequent to the end of an Offering Period but prior
      to the delivery to him or her or for his or her benefit of any shares
      deliverable under the terms of this Plan, and the Corporation has notice
      of the Participant’s death, then any shares purchased for that Offering
      Period and any remaining balance of such Participant’s Account shall be
      paid to such beneficiary (or such other person entitled to such payment
      pursuant to this Section 13). If the Committee permits beneficiary designations with respect to this
      Plan, any such designation shall have no effect with respect to shares
      purchased and actually delivered (or credited, as the case may be) to or
      for the benefit of the Participant.

9 

	14. 	
      TRANSFERABILITY

	 	 
		
      Neither Contributions credited to a Participant’s Account
      nor any Options or rights with respect to the exercise of Options or right
      to receive shares under this Plan may be anticipated, alienated,
      encumbered, assigned, transferred, pledged or otherwise disposed of in any
      way (other than by will, the laws of descent and distribution, or as
      provided in Section 13) by the Participant. Any such attempt at
      anticipation, alienation, encumbrance, assignment, transfer, pledge or
      other disposition shall be without effect and all amounts shall be paid
      and all shares shall be delivered in accordance with the provisions of
      this Plan. Amounts payable or shares deliverable pursuant to this Plan
      shall be paid or delivered only to (or credited in the name of, as the
      case may be) the Participant or, in the event of the Participant’s death,
      the Participant’s beneficiary pursuant to Section 13 or to the
      administrator, executor or liquidator of the Participant’s
  estate.

	 	 
	15. 	
      USE OF FUNDS; INTEREST

	 	 
		
      All Contributions received or held by the Corporation
      under this Plan will be included in the general assets of the Corporation
      and may be used for any corporate purpose. Notwithstanding anything else
      contained herein to the contrary, no interest will be paid to any
      Participant or credited to his or her Account under this Plan (in respect
      of Account balances, refunds of Account balances, or otherwise). Amounts
      payable under this Plan shall be payable in Common Shares or from the
      general assets of the Corporation and, except for any shares that may be
      reserved on the books of the Corporation for issuance with respect to this
      Plan, no special or separate reserve, fund or deposit shall be made to
      assure payment of amounts that may be due with respect to this
  Plan.

	 	 
	16. 	
      REPORTS

	 	 
		
      Statements shall be provided (either electronically or in
      written form, as the Committee may provide from time to time) to
      Participants as soon as administratively practicable following each
      Purchase Date. Each Participant’s statement shall set forth, as of such
      Purchase Date, that Participant’s Account balance immediately prior to the
      exercise of his or her Option, the Option Price, the number of whole
      shares purchased and his or her remaining Account balance, if
  any.

	 	 
	17. 	
      ADJUSTMENTS OF AND CHANGES IN THE STOCK

	 	 
		
      Upon or in contemplation of any reclassification,
      recapitalization, stock split (including a stock split in the form of a
      stock dividend) or reverse stock split; any recapitalization, merger,
      amalgamation, combination, consolidation, conversion or other
      reorganization; any spin-off, split-up, or any similar extraordinary
      dividend distribution in respect of the Common Shares (whether in the form
      of securities or property); any exchange of Common Shares or other
      securities of the Corporation, or any similar, unusual or extraordinary
      corporate transaction in respect of the Common Shares; or a sale of
      substantially all the assets of the Corporation as an entirety occurs;
      then the Committee shall equitably and proportionately adjust (1) the
      number and type of shares or the number and type of other securities that
      thereafter may be made the subject of Options (including the specific
      maxima and numbers of shares set forth elsewhere in this Plan), (2) the
      number, amount and type of shares (or other securities or property)
      subject to any or all outstanding Options, (3) the Option Price of any or
      all outstanding Options, and/or (4) the securities, cash or other property
      deliverable upon exercise of any outstanding Options, in each case to the
      extent necessary to preserve (but not increase) the level of incentives
      intended by this Plan and the then-outstanding
Options.

10 

		
      Upon the occurrence of any event described in the
      preceding paragraph, or any other event in which the Corporation does not
      survive (or does not survive as a public company in respect of its Common
      Shares); then the Committee may make provision for a cash payment or for
      the substitution or exchange of any or all outstanding Options for cash,
      securities or property to be delivered to the holders of any or all
      outstanding Options based upon the distribution or consideration payable
      to holders of the Common Shares upon or in respect of such
event.

	 	 
		
      The Committee may adopt such valuation methodologies for
      outstanding Options as it deems reasonable in the event of a cash or
      property settlement and, without limitation on other methodologies, may
      base such settlement solely upon the excess (if any) of the amount payable
      upon or in respect of such event over the Option Price of the
    Option.

	 	 
		
      In any of such events, the Committee may take such action
      sufficiently prior to such event to the extent that the Committee deems
      the action necessary to permit the Participant to realize the benefits
      intended to be conveyed with respect to the underlying shares in the same
      manner as is or will be available to shareholders generally.

	 	 
	18. 	
      POSSIBLE EARLY TERMINATION OF PLAN AND
    OPTIONS

	 	 
		
      Upon a dissolution or liquidation of the Corporation, or
      any other event described in Section 17 that the Corporation does not
      survive or does not survive as a publicly-traded company in respect of its
      Common Shares, as the case may be, and the Committee does not make
      provision for a cash payment or for the substitution or exchange of
      outstanding Options in accordance with Section 17, then any Offering
      Period then in progress shall be shortened and a new Purchase Date shall
      be established by the Committee (the “New Purchase Date”), as of
      which date the Plan and any Offering Period then in progress will
      terminate. The New Purchase Date shall be on or before the date of the
      consummation of the transaction and the Committee shall notify each
      Participant in writing at least ten (10) days prior to the New Purchase
      Date that the Purchase Date for his or her outstanding Option has been
      changed to the New Purchase Date and that his or her Option will be
      exercised automatically on the New Purchase Date, unless prior to such
      date he or she has withdrawn from the Offering Period in accordance with
      Section 7(d). The Option Price on the New Purchase Date shall be
      determined as provided in Section 8(b), and, if applicable, the New
      Purchase Date shall be treated as the “Purchase Date” for purposes of
      determining such Option Price.

	 	 
	19. 	
      TERM OF PLAN; AMENDMENT OR
  TERMINATION

	 	(a) 	
      Effective Date; Termination. Subject to Section
      19(b), this Plan shall become effective as of the Effective Date. No new
      Offering Periods shall commence on or after the tenth (10th)
      anniversary of the Effective Date, and this Plan shall terminate as of the
      Purchase Date on or immediately following such date unless sooner
      terminated pursuant to Section 18 or this Section 19. In the event that
      during a particular Offering Period all of the Common Shares made
      available under this Plan are subscribed prior to the expiration of this
      Plan, this Plan and all outstanding Options hereunder shall terminate at
      the end of that Offering Period and the shares available shall be
      allocated for purchase by Participants in that Offering Period on a
      pro-rata basis determined with respect to Participants’ Account
      balances.

	 	 	 
	 	(b) 	
      Board Amendment Authority. The Board may, at any
      time, terminate or, from time to time, amend, modify or suspend this Plan,
      in whole or in part and without notice. Shareholder approval for any
      amendment or modification shall not be required, except to the extent
      required by law or applicable stock exchange rules, or required under
      Section 423 of the Code in order to preserve the intended tax consequences
      of this Plan. No Options may be granted during any suspension of
    this

11 

	 		
      Plan or after the termination of this Plan, but the
      Committee will retain jurisdiction as to Options then outstanding in
      accordance with the terms of this Plan. No amendment, modification, or
      termination pursuant to this Section 19(b) shall, without written consent
      of the Participant, affect in any manner materially adverse to the
      Participant any rights or benefits of such Participant or obligations of
      the Corporation under any Option granted under this Plan prior to the
      effective date of such change. Changes contemplated by Section 17 or
      Section 18 shall not be deemed to constitute changes or amendments
      requiring Participant consent.

	 	 	 
	 	(c) 	
      Certain Additional Committee Authority.
      Notwithstanding the amendment provisions of Section 19(b) and without
      limiting the Board’s authority thereunder and without limiting the
      Committee’s authority pursuant to any other provision of this Plan, the
      Committee shall have the right (1) to designate from time to time the
      Subsidiaries whose employees may be eligible to participate in this Plan
      (including, without limitation, any Subsidiary that may first become such
      after the date shareholders first approve this Plan) (each a
      “Participating Subsidiary”), and (2) to change the service and
      other qualification requirements set forth under the definition of
      Eligible Employee in Section 2 (subject to the requirements of Section
      423(b) of the Code and applicable rules and regulations thereunder). Any
      such change shall not take effect earlier than the first Offering Period
      that starts on or after the effective date of such change. Any such change
      shall not require shareholder approval.

	20. 	
      NOTICES

	 	 
		
      All notices or other communications by a Participant to
      the Corporation contemplated by this Plan shall be deemed to have been
      duly given when received in the form and manner specified by the Committee
      (or its delegate) at the location, or by the person, designated by the
      Committee (or its delegate) for that purpose.

	 	 
	21. 	
      CONDITIONS UPON ISSUANCE OF SHARES

	 	 
		
      This Plan, the granting of Options under this Plan and
      the offer, issuance and delivery of Common Shares are subject to
      compliance with all applicable federal, provincial and state laws, rules
      and regulations (including but not limited to provincial, state and
      federal securities laws) and to such approvals by any listing, regulatory
      or governmental authority as may, in the opinion of counsel for the
      Corporation, be necessary or advisable in connection therewith. The person
      acquiring any securities under this Plan will, if requested by the
      Corporation and as a condition precedent to the exercise of his or her
      Option, provide such assurances and representations to the Corporation as
      the Committee may deem necessary or desirable to assure compliance with
      all applicable legal requirements (including, if applicable, insider
      reporting requirements).

	 	 
	22. 	
      PLAN CONSTRUCTION

	 	(a) 	
      Section 16. It is the intent of the Corporation
      that transactions involving Options under this Plan (other than
      “Discretionary Transactions” as that term is defined in Rule 16b-3(b)(1)
      promulgated by the Commission under Section 16 of the Exchange Act, to the
      extent there are any Discretionary Transactions under this Plan), in the
      case of Participants who are or may be subject to the prohibitions of
      Section 16 of the Exchange Act, satisfy the requirements for exemption
      under Rule 16b-3(c) promulgated by the Commission under Section 16 of the
      Exchange Act to the maximum extent possible. Notwithstanding the
      foregoing, the Corporation shall have no liability to any Participant for
      Section 16 consequences of Options or other events with respect to this
      Plan.

	 	 	 
	 	(b) 	
      Section 423. Except as the Committee may expressly
      provide in the case of one or more sub-plans adopted pursuant to Section
      12(b), this Plan and Options are intended to qualify under Section 423 of
      the Code. Accordingly, all Participants are to have the same rights and
      privileges (within the meaning of Section 423(b)(5) of the Code and except as
      not required thereunder to qualify this Plan under Section 423) under this
      Plan, subject to differences in Compensation among Participants and
      subject to the Contribution and share limits of this Plan.

12 

	 	(c) 	
      Interpretation. If any provision of this Plan or
      of any Option would otherwise frustrate or conflict with the intents
      expressed above, that provision to the extent possible shall be
      interpreted so as to avoid such conflict. If the conflict remains
      irreconcilable, the Committee may disregard the provision if it concludes
      that to do so furthers the interest of the Corporation and is consistent
      with the purposes of this Plan as to such persons in the
    circumstances.

	23. 	
      EMPLOYEES’ RIGHTS

	 	(a) 	
      No Employment Rights. Nothing in this Plan (or in
      any Subscription Agreement or other document related to this Plan) will
      confer upon any Eligible Employee or Participant any right to continue in
      the employ or other service of the Corporation or any Subsidiary,
      constitute any contract or agreement of employment or other service or
      effect an employee’s status as an employee at will, nor shall interfere in
      any way with the right of the Corporation or any Subsidiary to change such
      person’s compensation or other benefits or to terminate his or her
      employment or other service, with or without cause. Nothing contained in
      this Section 23(a), however, is intended to adversely affect any express
      independent right of any such person under a separate employment or
      service contract other than a Subscription Agreement.

	 	 	 
	 	(b) 	
      No Rights to Assets of the Company. No Participant
      or other person will have any right, title or interest in any fund or in
      any specific asset (including Common Shares) of the Corporation or any
      Subsidiary by reason of any Option hereunder. Neither the provisions of
      this Plan (or of any Subscription Agreement or other document related to
      this Plan), nor the creation or adoption of this Plan, nor any action
      taken pursuant to the provisions of this Plan will create, or be construed
      to create, a trust of any kind or a fiduciary relationship between the
      Corporation or any Subsidiary and any Participant, Beneficiary or other
      person. To the extent that a Participant, Beneficiary or other person
      acquires a right to receive payment pursuant to this Plan, such right will
      be no greater than the right of any unsecured general creditor of the
      Corporation.

	 	 	 
	 	(c) 	
      No Shareholders Rights. A Participant will not be
      entitled to any privilege of stock ownership as to any Common Shares not
      actually delivered to and held of record by the Participant. No adjustment
      will be made for dividends or other rights as a shareholder for which a
      record date is prior to such date of delivery.

	24. 	
      MISCELLANEOUS

	 	(a) 	
      Governing Law. This Plan, the Options,
      Subscription Agreements and other documents related to this Plan shall be
      governed by, and construed in accordance with the laws of the state of
      California and the federal laws of the United States of America applicable
      thereto without recourse to their conflict of laws rules.

	 	 	 
	 	(b) 	
      Severability. If any provision shall be held by a
      court of competent jurisdiction to be invalid and unenforceable, the
      remaining provisions of this Plan shall continue in effect.

	 	 	 
	 	(c) 	
      Captions and Headings. Captions and headings are
      given to the sections of this Plan solely as a convenience to facilitate
      reference. Such captions and headings shall not be deemed in any way
      material or relevant to the construction of interpretation of this Plan or
      any provision hereof.

	 	 	 
	 	(d) 	
      No Effect on Other Plans or Corporate Authority.
      The adoption of this Plan shall not affect any other Corporation or
      Subsidiary compensation or incentive plans in effect. Nothing in this Plan
      will limit or be deemed to limit the authority of the Board or Committee
      (1) to establish any other forms of incentives or compensation for
      employees of the Corporation or any Subsidiary (with
or without reference to the Common
Shares), or (2) to grant or assume options (outside the scope of and in addition
to those contemplated by this Plan) in connection with any proper corporate
purpose; to the extent consistent with any other plan or authority. Benefits
received by a Participant under an Option granted pursuant to this Plan shall
not be deemed a part of the Participant’s compensation for purposes of the
determination of benefits under any other employee welfare or benefit plans or
arrangements, if any, provided by the Corporation or any Subsidiary, except
where the Committee or the Board (or the Board of Directors of the Subsidiary
that sponsors such plan or arrangement, as applicable) expressly otherwise
provides or authorizes in writing. 

13 

	 	
       
	25. 	
      TAX WITHHOLDING

	 	 
		
      Notwithstanding anything else contained in this Plan
      herein to the contrary, the Corporation may deduct from a Participant’s
      Account balance as of a Purchase Date, before the exercise of the
      Participant’s Option is given effect on such date, the amount of taxes (if
      any) which the Corporation reasonably determines it or any Subsidiary may
      be required to withhold with respect to such exercise. In such event, the
      maximum number of whole shares subject to such Option (subject to the
      other limits set forth in this Plan) shall be purchased at the Option
      Price with the balance of the Participant’s Account (after reduction for
      the tax withholding amount).

	 	 
		
      Should the Corporation for any reason be unable, or elect
      not to, satisfy its or any Subsidiary’s tax withholding obligations in the
      manner described in the preceding paragraph with respect to a
      Participant’s exercise of an Option, or should the Corporation or any
      Subsidiary reasonably determine that it or an affiliated entity has a tax
      withholding obligation with respect to a disposition of shares acquired
      pursuant to the exercise of an Option prior to satisfaction of the holding
      period requirements of Section 423 of the Code, the Corporation or
      Subsidiary, as the case may be, shall have the right at its option to (1)
      require the Participant to pay or provide for payment of the amount of any
      taxes which the Corporation or Subsidiary reasonably determines that it or
      any affiliate is required to withhold with respect to such event or (2)
      deduct from any amount otherwise payable to or for the account of the
      Participant the amount of any taxes which the Corporation or Subsidiary
      reasonably determines that it or any affiliate is required to withhold
      with respect to such event.

	 	 
	26. 	
      NOTICE OF SALE

	 	 
		
      Any person who has acquired shares under this Plan shall
      give prompt written notice to the Corporation of any sale or other
      transfer of the shares if such sale or transfer occurs (1) within the
      two-year period after the Grant Date of the Offering Period with respect
      to which such shares were acquired, or (2) within the twelve-month period
      after the Purchase Date of the Offering Period with respect to which such
      shares were acquired.

14EX-10.1

 Exhibit 10.1 

GATES INDUSTRIAL CORPORATION PLC 2014 

STOCK INCENTIVE PLAN 
  

	1.	Purpose of the Plan 

 The purpose of the Plan (as defined below) is to aid the Company
(as defined below) and its Affiliates (as defined below) in recruiting and retaining key employees, directors, other service providers, or independent contractors and to motivate such employees, directors, other service providers, or independent
contractors to exert their best efforts on behalf of the Company and its Affiliates by providing incentives through the granting of Awards (as defined below). The Company expects that it will benefit from the added interest which such key employees,
directors, other service providers, or independent contractors will have in the welfare of the Company as a result of their proprietary interest in the Company’s success. 

 

	2.	Definitions 

 The following capitalized terms used in the Plan have the respective
meanings set forth in this Section: 
 (a)    Act: The Securities Exchange Act of 1934, as amended, or any
successor thereto. 
 (b)    Affiliate: With respect to any entity, any entity directly or indirectly controlling,
controlled by, or under common control with, such entity. As used herein, the term “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or otherwise, including the ownership, directly or indirectly, of securities
having the power to elect a majority of the board of directors or similar body governing the affairs of such Person. 

(c)    Award: Individually or collectively, any Option, Stock Appreciation Right or Other Stock-Based Award
(including a Restricted Stock Award or Restricted Stock Units) granted pursuant to the Plan. 
 (d)    Award
Agreement: shall have the meaning ascribed to it in Section 3(b) hereof. 
 (e)    Beneficial Owner: A
“beneficial owner”, as such term is defined in Rules 13d-3 and 13d-5 under the Act (or any successor rule thereto). 

(f)    Board: The Board of Directors of the Company. 

  
 1 

 (g)    Change in Control: (i) the sale or disposition, in one or
a series of related transactions, of all or substantially all of the assets of the Company and its Subsidiaries, as a whole, to any Person or Group other than the Sponsor or the Company or (ii) any Person or Group, other than the Sponsor, is or
becomes the Beneficial Owner, directly or indirectly, of more than 50% of the total voting power of the voting stock of the Company, including by way of merger, consolidation or otherwise, and the Sponsor ceases to control the Board. 

(h)    Code: The Internal Revenue Code of 1986, as amended, or any successor thereto. Reference in the Plan to any
section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such section, regulations or guidance. 

(i)    Committee: The Compensation Committee of the Board (or a subcommittee thereof), or such other committee of
the Board (including, without limitation, the full Board) to which the Board has delegated power to act under or pursuant to the provisions of the Plan, and if no such Committee has been created, the Board. 

(j)    Company: Gates Industrial Corporation plc, a public limited company organized under the laws of England
and Wales. 
 (k)    Detrimental Activity: The term “Detrimental Activity” means any of the following:
(i) unauthorized disclosure of any confidential or proprietary information of the Company or any of its Affiliates; (ii) any activity that results in the termination of the Participant’s Employment with the Company or any of its
Subsidiaries for Cause (as defined in the applicable Award Agreement) or any resignation by the Participant at a time when grounds exist for a termination by the Company or any of its Subsidiaries for Cause; (iii) the breach of any non-competition, non-solicitation, non-disparagement or other similar restrictive covenants in any agreement with the Company or its
Affiliates; or (iv) fraud or other intentional misconduct, directly or indirectly, contributing to any financial restatements or irregularities, in each case, as determined by the Committee in good faith. 

(l)    Effective Date: The date the Board approves the Plan, or such later date as is designated by the Board. 

(m)    Employment: The term “Employment” as used herein and/or in an Award Agreement shall be deemed to
refer to (i) a Participant’s employment if the Participant is an employee of the Company or any of its Subsidiaries, (ii) a Participant’s services as a consultant or independent contractor, if the Participant is a consultant to
or independent contractor of the Company or any of its Subsidiaries and (iii) a Participant’s services as a non-employee director, if the Participant is a
non-employee member of the Board. The Committee, in its sole discretion, shall exclusively determine the Employment status of a Participant. 

(n)    Fair Market Value: The term “Fair Market Value” shall mean, on a given date, (i) if there
should be a public market for the Shares on such date, the closing price of the Shares as reported on such date on the principal national securities exchange on which such Shares are listed or admitted to trading, or, if no sale of Shares shall have
been reported on any national securities exchange, then the immediately preceding date on which sales of the Shares have been 

  
 2 

 
so reported or quoted shall be used, and (ii) if there should not be a public market for the Shares on such date, the Fair Market Value shall be the value of the Shares determined by the
Committee in good faith and with respect to Awards that are subject to Section 409A, in compliance with the requirements of Section 409A.  

(o)    Group: A “group” as such term is used for purposes of Section 13(d) or Section 14(d) of
the Act (or any successor section thereto). 
 (p)    Option: An option to purchase Shares granted pursuant to
Section 6 of the Plan. 
 (q)    Option Price: The purchase price per Share of an Option, as determined
pursuant to Sections 6(a) and (b) of the Plan. 
 (r)    Other Stock-Based Awards: Awards granted pursuant to
Section 8 of the Plan. 
 (s)    Participant: An employee, director, other service provider, or independent
contractor of the Company or its Affiliates who is selected by the Committee to participate in the Plan. 

(t)    Person: A “person”, as such term is used for purposes of Section 13(d) or Section 14(d)
of the Act (or any successor section thereto). 
 (u)    Plan: The 2014 Gates Industrial Corporation plc Stock
Incentive Plan, as it may be amended or supplemented from time to time. 
 (v)    Public Trading Date: The first
date upon which Shares are listed (or approved for listing) upon notice of issuance on any national securities exchange. 

(w)    Restricted Stock Award: A share of restricted stock granted pursuant to Section 8 of the Plan. 

(x)    Restricted Stock Unit: Restricted stock units granted pursuant to Section 8 of the Plan. 

(y)    Section 409A: Section 409A of the Code. 

(z)    Share or Shares: An ordinary share of the Company, par value of $0.01 per ordinary share. 

(aa)    Sponsor: The Blackstone Group, L.P. and its Affiliates. 

(bb)    Stock Appreciation Right: A stock appreciation right granted pursuant to Section 7 of the Plan. 

(cc)    Subsidiary: With respect to an entity, a subsidiary corporation, as defined in Section 424(f) of the
Code, of such entity. 

  
 3 

	3.	Shares Subject to the Plan 

 (a)    Subject to Section 9, the
total number of Shares which may be issued under the Plan is 27,126,400 (the “Share Pool”) plus any Shares purchased for Fair Market Value under a Share purchase program. The Shares may consist, in whole or in part, of unissued
Shares or treasury Shares. The issuance of Shares or the payment of cash upon the exercise of an Award or in consideration of the settlement, cancellation, or termination of an Award, or the withholding or
“net-settling” of Shares in payment of the Option Price or exercise price or applicable withholding or other applicable taxes relating to an Award, shall reduce the total number of Shares available
under the Plan, as applicable (with any Awards settled in cash reducing the total number of Shares by the number of Shares determined by dividing the cash amount to be paid thereunder by the Fair Market Value of one Share on the date of payment).
Shares which are subject to Awards or portions of Awards which are canceled, forfeited or terminated, otherwise expire by their terms without being exercised, or terminate or lapse without the payment of consideration may be granted again subject to
Awards under the Plan. Subject to consultation with the Chief Executive Officer of the Company (the “CEO”), the Committee intends (but is not obligated) to (i) grant (A) Awards in respect of 80% of the Share Pool by
December 31, 2014 (the “Initial Grants”), (B) Awards in respect of an additional 10% of the Share Pool within eighteen (18) months after the Effective Date, and (C) Awards in respect of the remaining 10% of the Share
Pool at such time as may be mutually agreed to by the CEO and the Committee (the Awards granted pursuant to clause (B) and/or clause (C), the “Subsequent Grants”). With respect to a Subsequent Grant that is an Option or Stock
Appreciation Right and is granted to a Participant who received an Initial Grant, the Committee intends (but is not obligated) to grant an additional Award (or a bonus under another plan or agreement) such that each Subsequent Grant together with
such additional Award (or bonus) will have substantially the same intrinsic value on the date of a Change in Control as the Initial Grant, as determined in the Committee’s good faith discretion. 

(b)    Agreements Evidencing Awards. Each Award granted under the Plan shall be evidenced by an Award agreement
(the “Award Agreement”) that shall contain such provisions and conditions as the Committee deems appropriate; provided, that, except as otherwise expressly provided in an Award Agreement, if there is any conflict
between any provision of the Plan and an Award Agreement, the provisions of the Plan shall govern. Unless otherwise provided herein, the Committee may grant Awards in tandem with or in substitution for any other Award or Awards granted under the
Plan. By accepting an Award pursuant to the Plan, a Participant thereby agrees that the Award shall be subject to all of the terms and provisions of the Plan and the applicable Award Agreement. 

 

	4.	Administration 

 (a)    Generally. The Plan shall be
administered by the Committee, which may delegate its duties and powers in whole or in part to any subcommittee thereof. Additionally, the Committee may delegate the authority to grant Awards under the Plan to any employee or group of employees of
the Company or an Affiliate; provided, that such delegation and grants are consistent with applicable law and guidelines established by the Board from time to time. Awards may, in the discretion of the Committee, be made under the Plan
in assumption of, or in substitution for, outstanding awards previously granted by the Company or its Affiliates or a company acquired by the Company or with which the Company combines. The number of Shares underlying such substitute awards shall
not be counted against the aggregate number of Shares available for Awards under the Plan. 

  
 4 

 (b)    Powers. The Committee may correct any defect or supply any
omission or reconcile any inconsistency in the Plan or Award Agreement in the manner and to the extent the Committee deems necessary or desirable, without the consent of any Participant. Any decision of the Committee in the interpretation and
administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or
successors). The Committee shall have the full power and authority in its sole discretion to make any determinations that it deems necessary or desirable for the administration of the Plan. Without limiting the generality of the foregoing, in
particular, the Committee shall have the authority in its sole discretion to: 
 (i)    exercise all of
the powers granted to it under the Plan; 
 (ii)    construe and interpret the Plan and any Award
Agreement; 
 (iii)    amend the Plan to reflect changes in applicable law, subject to the limitations
imposed by Sections 13 and 18 of the Plan; 
 (iv)    grant Awards and determine who shall receive
Awards, when such Awards shall be granted and establish the terms and conditions of such Awards, consistent with the Plan, including to determine the number of Shares to be covered by each such Award so granted, to approve forms of Award Agreement
for such Awards, setting forth provisions with regard to the effect of a termination of Employment on such Awards, and waive any such terms or conditions at any time; 

(v)    instruct (or cause the Company to instruct) the registered office provider of the Company to make
the appropriate entries in the register of members of the Company in respect of issuances of Shares pursuant to Awards or otherwise under the Plan; 

(vi)    amend any outstanding Award Agreement in any respect, including, without limitation, to
(A) accelerate the time or times at which the Award becomes vested, unrestricted or may be exercised (and, in connection with such acceleration, the Committee may provide that any Shares acquired pursuant to such Award shall be restricted
shares, which are subject to vesting, transfer, forfeiture or repayment provisions similar to those in the Participant’s underlying Award Agreement), (B) accelerate the time or times at which Shares are delivered under the Award (and,
without limitation on the Committee’s rights, in connection with such acceleration, the Committee may provide that any Shares delivered pursuant to such Award shall be restricted shares, which are subject to vesting, transfer, forfeiture or
repayment provisions similar to those in the Participant’s underlying Award Agreement), (C) waive or amend any goals, restrictions or conditions set forth in such Award Agreement, or impose new goals, restrictions and conditions, or
(D) reflect a change in the Participant’s circumstances (e.g., a change to 

  
 5 

 
part-time employment status or a change in position, duties or responsibilities), but, subject to Section 13 or as otherwise specifically provided herein, no such amendment shall materially
adversely impair the rights of a Participant under an outstanding Award without such Participant’s consent; and 

(vii)    to establish, amend and rescind any rules and regulations relating to the Plan, including, without
limitation, to determine, at any time, in accordance with Section 13, whether, to what extent and under what circumstances and method or methods: 

(A)    Awards may be (1) settled in cash, Shares, other securities, other Awards or other property (in
which event, the Committee may specify what other effects such settlement shall have on the Participant’s Award, including the effect on any repayment provisions under the Plan or Award Agreement), in all cases subject to Sections 6(c) and
7(b) of the Plan, (2) exercised or (3) canceled, forfeited or suspended; 
 (B)    Shares,
other securities, other Awards or other property and other amounts payable with respect to an Award may be deferred either automatically or at the election of the Participant or of the Committee; 

(C)    to the extent permitted under applicable law, loans (whether or not secured by Shares) may be
extended by the Company with respect to any Awards; and 
 (D)    Awards may be settled by the Company or
its Affiliates or any of its or their designees. 
 (c)    Taxes. The Committee shall require payment of any
amount it may determine to be necessary to withhold for federal, state, local or other applicable taxes as a result of the exercise, grant or vesting of an Award and the Company or one of its Affiliates shall have the right and are authorized to
withhold any applicable withholding or other applicable taxes with respect to any Award, its exercise, or any payment or transfer under or with respect to the Award and to take such other action(s) as may be necessary in the opinion of the Committee
to satisfy all obligations for the payment of such withholding or other applicable taxes. The Committee may specify in an Award Agreement or otherwise that the Participant may elect to pay a portion or all of such withholding or other applicable
taxes by (i) delivery in Shares or (ii) having Shares withheld by the Company from any Shares that would have otherwise been received by the Participant, provided that with respect to Shares withheld pursuant to clause (ii), the number of
such Shares may not have a Fair Market Value greater than the minimum required statutory withholding. 

(d)    Actions. Actions of the Committee, when acting through a committee may be taken by the vote of a majority of
its members present at a meeting (which may be held telephonically). Any action may be taken by a written instrument signed by a majority of such committee’s members, and action so taken shall be fully as effective as if it had been taken by a
vote at a meeting. 

  
 6 

 (e)    Final and Binding Decisions. The Committee shall make all
determinations necessary or advisable in administering the Plan. Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final,
conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries and successors). 

(f)    Actions of the Board. Notwithstanding anything to the contrary contained herein (including the delegation of
authority to the Committee by the Board), the Board may, in its sole discretion, at any time and from time to time, grant Awards or administer the Plan. In any such case, the Board shall have all of the authority and responsibility granted to the
Committee herein. 
 (g)    Exculpation and Indemnification. No member of the Board or the Committee (each such
Person, a “Covered Person”) shall have any liability to any Person (including any Participant) for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any Award. Each Covered
Person shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability or expense (including attorneys’ fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting
from any action, suit or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan or any Award Agreement, in each case, in good faith
and (ii) any and all amounts paid by such Covered Person, with the Company’s approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered
Person, provided that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and, once the Company gives notice of its intent to assume the defense, the Company shall have sole control over
such defense with counsel of the Company’s choice. The foregoing right of indemnification shall not be available to a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either
case, not subject to further appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such Covered Person’s bad faith, fraud or willful misconduct. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company’s memorandum and articles of association (as may be amended from time to time), as a matter of law, or
otherwise, or any other power that the Company may have to indemnify such Persons or hold them harmless. 
  

	5.	Limitations 

 No Award may be granted under the Plan after the tenth anniversary of the
Effective Date, but Awards theretofore granted may extend beyond that date. 
  

	6.	Terms and Conditions of Options 

 (a)    General. The
Committee shall have the right and power to grant to any Participant, subject to the limitation of Section 5, an Option to purchase Shares at such price, on such terms and subject to such conditions that are consistent with the Plan and
established by the Committee. Options granted under the Plan shall be non-qualified stock options for federal income tax purposes, as evidenced by the related Award Agreements, and shall be subject to the
terms and conditions hereof and to such other terms and conditions, not inconsistent therewith, as the Committee shall determine. 

  
 7 

 (b)    Option Price. The Option Price per Share shall be determined by
the Committee, provided that, for the purposes of an Option granted under the Plan to a Participant who is a U.S. or Canadian taxpayer, in no event will (i) the Option Price be less than 100% of the Fair Market Value of a Share on the date an
Option is granted (other than in the case of Options granted in substitution of previously granted awards, as described in Section 4(a)) and (ii) any Option be granted unless the Share on which it is granted constitutes “service
recipient stock” (within the meaning of Section 409A) with respect to the applicable Participant. 

(c)    Exercisability. Options granted under the Plan shall be exercisable at such time and upon such terms and
conditions as may be determined by the Committee, but in no event shall an Option be exercisable more than ten years after the date it is granted. 

(d)    Exercise of Options. 

(i)    Except as otherwise provided in the Plan or in an Award Agreement, an Option may be exercised for
all, or from time to time any part, of the Shares for which it is then exercisable. 
 (ii)    For
purposes of Section 6 of the Plan, the exercise date of an Option shall be the later of the date a notice of exercise is received by the Company and, if applicable, the date payment is received by the Company pursuant to clause (A), (B),
(C), (D) or (E) in the following sentence. The purchase price for the Shares as to which an Option is exercised shall be paid to the Company as designated by the Committee, pursuant to one or more of the following methods: (A) in cash or
its equivalent (e.g., by check or, if permitted by the Committee, a full-recourse promissory note) or (B) to the extent specified in an Award Agreement or otherwise permitted by the Committee in its sole discretion, (i) in Shares having a
Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; provided, that such Shares have been held by the Participant for any period as
established from time to time by the Committee in order to avoid adverse accounting treatment applying generally accepted accounting principles, (ii) if there is a public market for the Shares at such time, subject to such rules as may be
established by the Committee, through the delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the Option and to deliver promptly to the Company an amount out of the proceeds of such sale equal to the
aggregate Option Price for the Shares being purchased, (iii) using a net settlement mechanism whereby the number of Shares delivered upon the exercise of the Option will be reduced by a number of Shares that has a Fair Market Value equal to the
Option Price, or (iv) using any combination of the permitted exercise methods, provided, in each case, that the Participant tenders cash or its equivalent to pay any applicable withholding or other applicable taxes (unless otherwise permitted
by the Committee). 
 (iii)    Unless otherwise expressly provided in the applicable Award Agreement, no
Participant shall have any rights to dividends or other rights of a 

  
 8 

 
stockholder with respect to Shares subject to an Option until the Participant has given written notice of exercise of the Option, paid in full for such Shares and, if applicable, has satisfied
any other conditions imposed by the Committee pursuant to the Plan or specified in the applicable Award Agreement, including the requirement that the Participant tender cash or its equivalent to pay any applicable withholding or other applicable
taxes. 
 (iv)    In addition, the Company shall not be required to issue or deliver any certificate or
certificates for or make any entries in the Company’s register of members with respect to Shares purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions: 

(A)    The admission of such Shares to listing on all stock exchanges on which such class of stock is then
listed, if applicable; 
 (B)    The completion of any registration or other qualification of such
Options or Shares under any applicable law, or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body which the Committee shall, in its sole discretion, deem necessary or advisable; 

(C)    The obtaining of any approval or other clearance from any applicable governmental agency which the
Committee shall, in its sole discretion, determine to be necessary or advisable; 
 (D)    The lapse of
such reasonable period of time following the exercise of the Option as the Committee may establish from time to time for reasons of administrative convenience; and 

(E)    The receipt by the Company of full payment for such Shares subject to option, including payment of
any applicable withholding or other applicable tax. 
 (e)    Attestation. Wherever in this Plan or any Award
Agreement a Participant is permitted to pay the exercise price of an Option or taxes relating to the exercise of an Option by delivering Shares, the Participant may, subject to procedures satisfactory to the Committee, satisfy such delivery
requirement by presenting proof of beneficial ownership of such Shares, in which case the Company shall treat the Option as exercised without further payment and/or shall withhold such number of Shares from the Shares acquired by the exercise of the
Option, as appropriate. 
 (f)    Buyout Provisions. The Committee may at any time offer to buy out for payment
in cash or Shares an Option previously granted, based on such terms and conditions as the Committee shall establish and communicate to the Participant at the time that such offer is made. 

 

	7.	Terms and Conditions of Stock Appreciation Rights 

(a)    Grants. The Committee may grant (i) a Stock Appreciation Right independent of an Option or (ii) a
Stock Appreciation Right in connection with an Option, or a portion thereof. A Stock Appreciation Right granted pursuant to clause (ii) of the preceding sentence (A) may be 

  
 9 

 
granted at the time the related Option is granted or at any time prior to the exercise or cancellation of the related Option, (B) shall cover the same number of Shares covered by such Option
(or such lesser number of Shares as the Committee may determine), and (C) shall be subject to the same terms and conditions as such Option except for such additional limitations as are contemplated by this Section 7 (or such additional
limitations as may be included in an Award Agreement). 
 (b)    Exercise Price. The exercise price per Share
under a Stock Appreciation Right shall be determined by the Committee, provided that, for the purposes of a Stock Appreciation Right granted under the Plan to a Participant who is a U.S. or Canadian taxpayer, in no event will (i) the exercise
price be less than 100% of the Fair Market Value of a Share on the date the Stock Appreciation Right is granted (other than in the case of a Stock Appreciation Right granted in substitution of previously granted awards, as described in
Section 4(a)) and (ii) any Stock Appreciation Right be granted unless the Share in respect of which it is granted constitutes “service recipient stock” (within the meaning of Section 409A) with respect to the applicable
Participant. 
 (c)    Terms of Grant. Each Stock Appreciation Right granted independent of an Option shall
entitle a Participant upon exercise to an amount equal to (i) the excess of (A) the Fair Market Value of one Share on the exercise date over (B) the exercise price per Share, times (ii) the number of Shares covered by the Stock
Appreciation Right or the portion thereof that is being exercised. Each Stock Appreciation Right granted in connection with an Option, or a portion thereof, shall entitle a Participant to surrender to the Company the unexercised Option, or any
portion thereof, and to receive from the Company in exchange therefor an amount equal to (i) the excess of (A) the Fair Market Value of one Share on the exercise date over (B) the Option Price per Share, times (ii) the number of
Shares covered by the Option, or portion thereof, which is surrendered. Payment to the Participant shall be made in Shares or in cash, or partly in Shares and partly in cash (any such Shares valued at such Fair Market Value), all as shall be
determined by the Committee. 
 (d)    Exercisability. Stock Appreciation Rights may be exercised from time to
time upon actual receipt by the Company of written notice of exercise stating the number of Shares with respect to which the Stock Appreciation Right is being exercised. The date a notice of exercise is received by the Company shall be the exercise
date. No fractional Shares will be issued in payment for Stock Appreciation Rights, but instead cash will be paid for a fraction or, if the Committee should so determine, the number of Shares will be rounded downward to the next whole Share. 

(e)    Limitations. The Committee may impose, in its discretion, such conditions upon the exercisability or
transferability of Stock Appreciation Rights as it may deem fit, but in no event shall a Stock Appreciation Right be exercisable more than ten years after the date it is granted. Unless otherwise expressly provided in the applicable Award Agreement,
no Participant shall have any rights to dividends or other rights of a stockholder with respect to any Stock Appreciation Right. In addition, the Company shall not be required to issue or deliver any certificate or certificates for Shares subject to
any Stock Appreciation Right prior to the fulfillment of all the conditions of Sections 6(d)(iv)(A), (B), (C), (D), and (E). 

  
 10 

	8.	Other Stock-Based Awards 

 The Committee, in its sole discretion, may grant or sell
Awards of Shares, Restricted Stock Awards, Restricted Stock Units, and Awards that are valued in whole or in part by reference to, or are otherwise based on the Fair Market Value of, Shares (“Other Stock-Based Awards”). Such Other
Stock-Based Awards shall be in such form, and dependent on such conditions, as the Committee shall determine, including, without limitation, the right to receive, or vest with respect to, one or more Shares (or the equivalent cash value of such
Shares) upon the completion of a specified period of service, the occurrence of an event and/or the attainment of performance objectives. Other Stock-Based Awards may be granted alone or in addition to any other Awards granted under the Plan.
Subject to the provisions of the Plan, the Committee shall determine to whom and when Other Stock-Based Awards will be made, the number of Shares to be awarded under (or otherwise related to) such Other Stock-Based Awards; whether such Other
Stock-Based Awards shall be settled in cash, Shares or a combination of cash and Shares; and all other terms and conditions of such Awards (including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares so
awarded and issued shall be fully paid and non-assessable). 
  

	9.	Adjustments Upon Certain Events 

 Notwithstanding any other provisions in the Plan to
the contrary, the following provisions shall apply to all Awards granted under the Plan: 
 (a)    Equity
Restructurings. In the event of any change in the outstanding Shares after the Effective Date by reason of any extraordinary Share distribution or split, recapitalization, reclassification, rights offering,
split-up or spin-off or any other event that constitutes an “equity restructuring” within the meaning of Statement of Financial Accounting Standards ASC Topic
718, the Committee shall adjust the Plan and outstanding Awards as it deems necessary, in good faith, to prevent dilution or enlargement of rights immediately resulting from such event or transaction (or in order to preserve the economic value of
the outstanding Awards and the value that may be delivered pursuant to outstanding Awards under the Plan), with such adjustments to be made in such manner as the Committee may determine, in its sole discretion. Action by the Committee may include:
(i) adjustment of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the Option Price or exercise price of
outstanding Awards or the measure to be used to determine the amount of the benefit payable on an Award; (iv) payment of an amount in cash to the holder of the Award; and/or (v) any other adjustments that the Committee determines to be
equitable. Without limiting the foregoing, in the event of a subdivision of the outstanding Shares (stock-split), a declaration of a dividend payable in Shares, or a combination or consolidation of the outstanding Shares into a lesser number of
Shares, the authorization limits under Section 3 shall automatically be adjusted proportionately, and the Shares then subject to each Award shall automatically, without the necessity for any additional action by the Committee, be adjusted
proportionately without any change in the aggregate Option Price or other exercise or purchase price therefor. 

(b)    Mergers, Reorganizations and Other Corporate Transactions. In the event of any change in the outstanding
Shares after the Effective Date by reason of any reorganization, 

  
 11 

 
merger, consolidation, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the
Company, extraordinary dividend, distribution or return of capital, or other similar corporate transaction or event that affects the Shares such that an adjustment is determined by the Committee in good faith to be appropriate or desirable
(including, without limitation, in order to preserve the economic value of the outstanding Awards and the value that may be delivered pursuant to outstanding Awards under the Plan), the Committee in its sole discretion and without liability to any
Person shall make such substitution or adjustment, if any, as it deems to be equitable (subject to Sections 16 and 18), as to (i) the number of Shares or other securities of the Company (or number and kind of other securities or property
including cash) with respect to which Awards have or may be granted under the Plan, (ii) the terms of any outstanding Award, including (A) the number of Shares or other securities of the Company (or number and kind of other securities or
property) subject to outstanding Awards or to which outstanding Awards relate and (B) the Option Price or exercise price of any Stock Appreciation Right and/or (iii) any other affected terms of such Awards. 

(c)    Change in Control. In the event of a Change in Control after the Effective Date, (i) if determined by
the Committee in the applicable Award Agreement or otherwise, any outstanding Awards then held by Participants which are unexercisable or otherwise unvested or subject to lapse restrictions shall automatically be deemed exercisable or otherwise
vested or no longer subject to lapse restrictions, as the case may be, as of immediately prior to such Change in Control and (ii) the Committee may (subject to Sections 16 and 18), but shall not be obligated to, (A) accelerate, vest
or cause the restrictions to lapse with respect to all or any portion of an Award, (B) cancel such Awards for fair value (as determined in the sole discretion of the Committee) which, in the case of Options and Stock Appreciation Rights, may
equal the excess, if any, of value of the consideration to be paid in the Change in Control transaction to holders of the same number of Shares subject to such Options or Stock Appreciation Rights (or, if no consideration is paid in any such
transaction, the Fair Market Value of the Shares subject to such Options or Stock Appreciation Rights) over the aggregate exercise price of such Options or Stock Appreciation Rights (and, for the avoidance of doubt, any Options and Stock
Appreciation Rights with an Option Price or exercise price, as applicable, that is greater than or equal to the per Share consideration to be paid or Fair Market Value per Share in such Change in Control transaction may be cancelled for no
consideration), (C) provide for the issuance of substitute Awards or the assumption or replacement of such Awards, in each case, that will substantially preserve the otherwise applicable terms of any affected Awards previously granted hereunder as
determined by the Committee in its sole discretion whether by any successor or survivor Person, or a parent or Affiliate thereof or (D) provide that for a period of at least 7 days prior to the Change in Control, such Awards shall be
exercisable, to the extent applicable, as to all Shares subject thereto and, to the extent not exercised, the Committee may further provide that upon the occurrence of the Change in Control, such Awards shall terminate and be of no further force and
effect. 
 (d)    Other Provisions. After any adjustment made pursuant to this Section 9, the number of
Shares subject to each outstanding Award shall be rounded down to the nearest whole number. The existence of the Plan, any Award Agreement and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company or
the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other 

  
 12 

 
change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds,
debentures, preferred or prior preference stocks whose rights are superior to or affect the Shares or the rights thereof or which are convertible into or exchangeable for Shares, or 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 character or otherwise. 
  

	10.	No Right to Employment or Awards 

 The granting of an Award under the Plan shall impose
no obligation on the Company or any Affiliate to continue the Employment of a Participant and shall not lessen or affect the Company’s or any Affiliate’s right to terminate the Employment of such Participant. No Participant or other Person
shall have any claim to be granted any Award. 
  

	11.	Successors and Assigns 

 The Plan and any applicable Award Agreement shall be binding on
all successors and assigns of the Company and a Participant, including, without limitation, the estate of such Participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the
Participant’s creditors. 
  

	12.	Nontransferability of Awards 

 Unless otherwise provided in an Award Agreement or the
Plan, no Award (or any rights and obligations thereunder) granted to any Person under the Plan may be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of or hedged, in any manner (including through the use of any
cash-settled instrument), whether voluntarily or involuntarily and whether by operation of law or otherwise, other than by will or by the laws of descent and distribution, and all Awards (and any rights thereunder) shall be exercisable during the
life of the Participant only by the Participant or the Participant’s legal representative. Notwithstanding the foregoing, the Committee may permit, under such terms and conditions that it deems appropriate in its sole discretion, a Participant
to transfer any Award to any Person or entity that the Committee so determines. Any sale, exchange, transfer, assignment, pledge, hypothecation, other disposition or hedge in violation of the provisions of this Section 12 shall be null and
void. 
  

	13.	Amendments or Termination 

 The Board may amend, alter or discontinue the Plan, but no
amendment, alteration or discontinuation shall be made, (a) after the Public Trading Date, without the approval of the shareholders of the Company, if such action would (except as is provided in Section 9 of the Plan), increase the total
number of Shares reserved for the purposes of the Plan or (b) without the consent of Participants holding a majority in the economic interests, if such action would materially diminish the rights of the Participants under the Awards theretofore
granted to such Participants under the Plan; provided, however, that the Committee may (i) amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting the requirements of the Code or other
applicable laws (including, without limitation, to avoid adverse tax consequences to the Company or to Participants) and (ii) amend any outstanding Awards in a manner that is not materially adverse to a Participant, except as otherwise may be
permitted pursuant to Section 9 hereof or as is otherwise contemplated pursuant to the terms of the Award, without the Participant’s consent. 

  
 13 

 Notwithstanding any provision of the Plan to the contrary, in the event that the Committee
determines that any amounts payable hereunder will be taxable to a Participant under Section 409A prior to payment to such Participant of such amount, the Company may (a) adopt such amendments to the Plan and Awards and appropriate
policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder and/or
(b) take such other actions as the Committee determines necessary or appropriate to avoid the imposition of an additional tax under Section 409A of the Code. 
  

	14.	International Participants 

 With respect to Participants who reside or work outside the
United States of America, the Committee may, in its sole discretion, amend the terms of the Plan or Awards with respect to such Participants in order to conform such terms with the requirements of local law or to obtain more favorable tax or other
treatment for a Participant, the Company or any Affiliate. 
  

	15.	Choice of Law 

 The Plan shall be governed by and construed in accordance with the laws
of the Cayman Islands without regard to conflicts of laws. 
  

	16.	Other Laws; Restrictions on Transfer of Shares 

 The Committee may refuse to issue or
transfer any Shares or other consideration under an Award if, acting in its sole discretion, it determines that the issuance or transfer of such Shares or such other consideration might violate any applicable law or regulation or entitle the Company
to recover the same under Section 16(b) of the Act, as amended, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant
Participant, holder or beneficiary. Without limiting the generality of the foregoing, no Award granted hereunder shall be construed as an offer to sell securities of the Company or any of its Affiliates, and no such offer shall be outstanding,
unless and until the Committee in its sole discretion has determined that any such offer, if made, would be in compliance with all applicable requirements of the United States federal and any other applicable securities laws. 

 

	17.	Effectiveness of the Plan 

 The Plan shall be effective as of the Effective Date. 

 

	18.	Section 409A of the Code 

 This Plan and Awards issued hereunder shall be
interpreted in accordance with Section 409A. Notwithstanding other provisions of the Plan or any Award Agreements thereunder, no Award shall be granted, deferred, accelerated, extended, paid out or modified under this Plan in a manner that
would result in the imposition of an additional tax under Section 409A upon a 

  
 14 

 
Participant. In the event that it is reasonably determined by the Committee that, as a result of Section 409A, payments in respect of any Award under the Plan may not be made at the time
contemplated by the terms of the Plan or the relevant Award Agreement, as the case may be, without causing the Participant holding such Award to be subject to taxation under Section 409A, the Company will make such payment on the first day that
would not result in the Participant incurring any tax liability under Section 409A, which action may include, but is not limited to, delaying payment to a Participant who is a “specified employee” within the meaning of
Section 409A until the first day following the six month period beginning on the date of the Participant’s termination of Employment. The Company shall use commercially reasonable efforts to implement the provisions of this Section 18
in good faith; provided that neither the Company, the Committee nor any of the Company’s employees, directors or representatives shall have any liability to Participants with respect to this Section 18. 

 

	19.	Miscellaneous. 

 (a)    Transfers and Leaves of
Absence. For purposes of the Plan, unless the Committee determines otherwise: (i) a transfer of a Participant’s Employment without an intervening period of separation among the Company and any Subsidiary or Affiliate of the Company
shall not be deemed a termination of Employment; and (ii) a Participant who is granted a leave of absence in writing or who is entitled to a statutory leave of absence shall be deemed to have remained in the employ of the Company (or such
Subsidiary or Affiliate, as applicable) during such leave of absence. 
 (b)    Right of Offset.
The Company shall have the right to offset against its obligation to deliver Shares (or other property or cash) under the Plan or any Award Agreement any outstanding amounts (including, without limitation, travel and entertainment or advance account
balances, loans, repayment obligations under any Awards or amounts repayable to the Company pursuant to tax equalization, housing, automobile or other employee programs) that the Participant then owes to the Company and any amounts the Committee
otherwise deems appropriate pursuant to any tax equalization policy or agreement; provided, that the Participant is first offered the opportunity to pay cash for such outstanding amounts. Notwithstanding the foregoing, the Committee shall have no
right to offset against its obligation to deliver Shares (or other property or cash) under the Plan, in respect of any Award, or in respect of any non-qualified deferred compensation amounts if such offset
would subject the Participant to the additional tax imposed under Section 409A in respect of such offset Award or non-qualified deferred compensation amount. 

(c)    Waiver of Claims. Each Participant who receives an Award recognizes and agrees that before
being selected by the Committee to receive an Award he or she has no right to any benefits under such Award. Accordingly, in consideration of the Participant’s receipt of any Award hereunder, he or she expressly waives any right to contest the
amount of any Award, the terms of any Award Agreement, any determination, action or omission hereunder or under any Award Agreement by the Committee, the Company, its Subsidiaries, and Affiliates, or the Board, or any amendment to the Plan or any
Award Agreement (other than an amendment to the Award Agreement for which his or her consent is expressly required by the express terms of the Award Agreement or the Plan). 

  
 15 

 (d)    Nature of Payments. Any and all grants of
Awards and deliveries of cash, securities or other property under the Plan shall be in consideration of services performed or to be performed for the Company by the Participant. Awards under the Plan may, in the discretion of the Committee, be made
in substitution in whole or in part for cash or other compensation otherwise payable to a Participant. Only whole Shares shall be delivered under the Plan. Awards shall, to the extent reasonably practicable, be aggregated in order to eliminate any
fractional Shares. Fractional Shares may, in the discretion of the Committee, be forfeited or be settled in cash or otherwise as the Committee may determine. All grants and deliveries of Shares, cash, securities or other property under the Plan
shall constitute a special discretionary incentive payment to the Participant and shall not be required to be taken into account in computing the amount of salary or compensation of the Participant for the purpose of determining any contributions to
or any benefits under any pension, retirement, profit-sharing, bonus, life insurance, severance or other benefit plan of the Company or under any agreement with the Participant, unless the Company specifically provides otherwise. 

(e)    Shares Covered by Plan. For purposes of Section 3, a Share will be considered to be
“covered by” the Plan if (i) if it is available for issuance pursuant to the Plan but is not subject to an outstanding Award or (ii) it is subject to an outstanding Award. For purposes of Section 3, (A) an Option or Stock
Appreciation Right that has been granted under the Plan will be considered to be an “outstanding” Award until is it exercised or terminates, is forfeited or cancelled or otherwise expires by its terms, (B) a Share that has been
granted as an Award under the Plan that is subject to vesting conditions will be considered an “outstanding” Award until the vesting conditions have been satisfied or the Award terminates, is forfeited or cancelled or otherwise expires
unvested by its terms and (C) any Award other than an Option, Stock Appreciation Right or Share that is subject to vesting conditions will be considered to be an “outstanding” Award until it has been settled. 

(f)    Non-Uniform Determinations. The Committee’s
determinations under the Plan and Award Agreements need not be uniform and any such determinations may be made by it selectively among Participants who receive, or Persons in the Employment of the Company, its Subsidiaries, or its Affiliates who are
eligible to receive, Awards under the Plan (whether or not such Persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make
non-uniform and selective determinations under Award Agreements, and to enter into non-uniform and selective Award Agreements, as to (i) the Persons to receive
Awards, (ii) the terms and provisions of Awards and (iii) whether a Participant’s Employment has been terminated for purposes of the Plan. 

(g)    No Third Party Beneficiaries. Except as expressly provided in the Plan or an Award
Agreement, neither the Plan nor any Award Agreement shall confer on any Person other than the Company and the Participant receiving any Award any rights or remedies thereunder. 

(h)    Other Payments or Awards. Nothing contained in the Plan shall be deemed in any way to limit
or restrict the Company from making any award or payment to any Person under any other plan, arrangement or understanding, whether now existing or hereafter in effect. 

(i)    Plan Headings. The headings in the Plan are for the purpose of convenience only and are not
intended to define or limit the construction of the provisions hereof. 

  
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 (j)    Severability. Whenever possible, each provision
of the Plan shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Plan is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but the Plan shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein. 
 (k)    Participant Representations. The Company may require a
Participant, as a condition to the grant or exercise of, or acquisition of Shares under, any Option or Stock Appreciation Right, (A) to give written representations satisfactory to the Company as to the Participant’s knowledge and
experience in financial and business matters, and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters, and to give written representations satisfactory
to the Company that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Option or Stock Appreciation Right, (B) to give written representations satisfactory to the
Company stating that the Participant is acquiring the Shares subject to the Option or Stock Appreciation Right for the Participant’s own account and not with any present intention of selling or otherwise distributing the Shares, and (C) to
give such other written representations as are deemed necessary or appropriate by the Company and its counsel. The foregoing requirements, and any representations given pursuant to such requirements, shall be inoperative if (1) the issuance of
the Shares upon the exercise or acquisition of Shares under the applicable Option or Stock Appreciation Right has been registered under a then currently effective registration statement under the Securities Act or (2) as to any particular
requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Shares. 

(l)    Clawback; Forfeiture. Notwithstanding anything to the contrary contained herein, the
Committee may, in its sole discretion, provide in an Award Agreement or otherwise that the Committee may cancel such Award if the Participant has engaged in or engages in any Detrimental Activity. The Committee may, in its sole discretion, also
provide in an Award Agreement or otherwise that (i) if the Participant otherwise has engaged in or engages in any Detrimental Activity (for these purposes, clause (i) of such definition shall be subject to materiality) while employed by
the Company or any of its Subsidiaries or during the Post-Termination Period (as such term is defined in a nonqualified stock option agreement between the Company and the Participant) and such activity is, or could reasonably be expected to be,
injurious to the financial condition or business reputation of the Company or any of its Subsidiaries or Affiliates, the Participant will forfeit any gain realized on the vesting or exercise of such Award, and must repay the gain to the Company and
(ii) if the Participant receives any amount in excess of what the Participant should have received under the terms of the Award for any reason (including, without limitation, by reason of a financial restatement,

  
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mistake in calculations or other administrative error), as determined by the Committee in good faith or by the Company’s independent auditors, then the Participant shall be required to repay
any such excess amount to the Company. Without limiting the foregoing, all Awards shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with applicable law. 

  
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