Document:

Exhibit 4.4

 

EPSILON ENERGY LTD. (THE “CORPORATION”)

 

SECTION 10.11 OF THE BY-LAWS OF THE CORPORATION AMENDED ON SEPTEMBER
1, 2020 AS FOLLOWS:

 

10.11.       Quorum
- A quorum for the transaction of business at any meeting of shareholders
shall be at least one (1) person present in person, being a shareholder entitled to vote thereat or a duly appointed proxy
or representative for an absent shareholder so entitled and representing in the aggregate not less than thirty three and one-third
percent (33 1/3%) of the outstanding shares of the Corporation carrying voting rights at the meeting. If a quorum is present
at the opening of any meeting of shareholders, the shareholder(s) present or represented may proceed with the business of the
meeting notwithstanding that a quorum is not present throughout the meeting. If a quorum is not present at the opening of any
meeting of shareholders, the shareholder(s) present or represented may adjourn the meeting to a fixed time and place but may not
transact any other business other than as provided in these By-laws or in the Act until a quorum is present.

 

Approved by the Directors of the Corporation
on July 22, 2020 and confirmed by the Shareholders of the Corporation on September 1, 2020.Exhibit 4.5

 

EPSILON ENERGY LTD.

2020 EQUITY INCENTIVE PLAN

 

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TABLE OF CONTENTS

 

	 	 	Page
	1.	ESTABLISHMENT, PURPOSE AND TERM OF PLAN	A-5
	 	1.1	Establishment	A-5
	 	1.2	Purpose	A-5
	 	1.3	Term of Plan	A-5
	2.	DEFINITIONS AND CONSTRUCTION	A-5
	 	2.1	Definitions	A-5
	 	2.2	Construction	A-10
	3.	ADMINISTRATION	A-10
	 	3.1	Administration by the Committee	A-10
	 	3.2	Authority of Officers	A-10
	 	3.3	Administration with Respect to Insiders	A-11
	 	3.4	Powers of the Committee	A-11
	 	3.5	Option or SAR Repricing	A-11
	 	3.6	Indemnification	A-12
	4.	SHARES SUBJECT TO PLAN	A-12
	 	4.1	Maximum Number of Shares Issuable	A-12
	 	4.2	Share Counting	A-12
	 	4.3	Adjustments for Changes in Capital Structure	A-12
	 	4.4	Assumption or Substitution of Awards	A-13
	5.	ELIGIBILITY, PARTICIPATION AND AWARD LIMITATIONS	A-13
	 	5.1	Persons Eligible for Awards	A-13
	 	5.2	Participation in the Plan	A-13
	 	5.3	Incentive Stock Option Limitations	A-13
	 	5.4	Nonemployee Director Award Limit	A-14
	6.	STOCK OPTIONS	A-14
	 	6.1	Exercise Price	A-14
	 	6.2	Exercisability and Term of Options	A-14
	 	6.3	Payment of Exercise Price	A-14
	 	6.4	Effect of Termination of Service	A-15
	 	6.5	Transferability of Options	A-16
	7.	STOCK APPRECIATION RIGHTS	A-16
	 	7.1	Types of SARs Authorized	A-16
	 	7.2	Exercise Price	A-16
	 	7.3	Exercisability and Term of SARs	A-17
	 	7.4	Exercise of SARs	A-17
	 	7.5	Deemed Exercise of SARs	A-17
	 	7.6	Effect of Termination of Service	A-17
	 	7.7	Transferability of SARs	A-17
	8.	RESTRICTED STOCK AWARDS	A-18
	 	8.1	Types of Restricted Stock Awards Authorized	A-18
	 	8.2	Purchase Price	A-18

 

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	 	 	Page
	 	8.3	Purchase Period	A-18
	 	8.4	Payment of Purchase Price	A-18
	 	8.5	Vesting and Restrictions on Transfer	A-18
	 	8.6	Voting Rights; Dividends and Distributions	A-19
	 	8.7	Effect of Termination of Service	A-19
	 	8.8	Nontransferability of Restricted Stock Award Rights	A-19
	9.	RESTRICTED STOCK UNITS	A-19
	 	9.1	Grant of Restricted Stock Unit Awards	A-19
	 	9.2	Purchase Price	A-19
	 	9.3	Vesting	A-20
	 	9.4	Voting Rights, Dividend Equivalent Rights and Distributions	A-20
	 	9.5	Effect of Termination of Service	A-20
	 	9.6	Settlement of Restricted Stock Unit Awards	A-20
	 	9.7	Nontransferability of Restricted Stock Unit Awards	A-21
	10.	PERFORMANCE AWARDS	A-21
	 	10.1	Types of Performance Awards Authorized	A-21
	 	10.2	Initial Value of Performance Shares and Performance Units	A-21
	 	10.3	Establishment of Performance Period, Performance Goals and Performance Award Formula	A-21
	 	10.4	Measurement of Performance Goals	A-21
	 	10.5	Settlement of Performance Awards	A-23
	 	10.6	Voting Rights; Dividend Equivalent Rights and Distributions	A-24
	 	10.7	Effect of Termination of Service	A-24
	 	10.8	Nontransferability of Performance Awards	A-24
	11.	CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS	A-25
	 	11.1	Grant of Cash-Based Awards	A-25
	 	11.2	Grant of Other Stock-Based Awards	A-25
	 	11.3	Value of Cash-Based and Other Stock-Based Awards	A-25
	 	11.4	Payment or Settlement of Cash-Based Awards and Other Stock-Based Awards	A-25
	 	11.5	Voting Rights; Dividend Equivalent Rights and Distributions	A-25
	 	11.6	Effect of Termination of Service	A-26
	 	11.7	Nontransferability of Cash-Based Awards and Other Stock-Based Awards	A-26
	12.	STANDARD FORMS OF AWARD AGREEMENT	A-26
	 	12.1	Award Agreements	A-26
	 	12.2	Authority to Vary Terms	A-26
	13.	CHANGE IN CONTROL	A-26
	 	13.1	Effect of Change in Control on Awards	A-26
	 	13.2	Effect of Change in Control on Nonemployee Director Awards	A-27
	 	13.3	Federal Excise Tax Under Section 4999 of the Code	A-27
	14.	COMPLIANCE WITH SECURITIES LAW	A-28
	15.	COMPLIANCE WITH SECTION 409A	A-28
	 	15.1	Awards Subject to Section 409A	A-28
	 	15.2	Deferral and/or Distribution Elections	A-28

 

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	 	 	Page
	 	15.3	Subsequent Elections	A-29
	 	15.4	Payment of Section 409A Deferred Compensation	A-29
	16.	TAX WITHHOLDING	A-31
	 	16.1	Tax Withholding in General	A-31
	 	16.2	Withholding in or Directed Sale of Shares	A-31
	17.	AMENDMENT, SUSPENSION OR TERMINATION OF PLAN	A-31
	18.	MISCELLANEOUS PROVISIONS	A-31
	 	18.1	Repurchase Rights	A-31
	 	18.2	Forfeiture Events	A-32
	 	18.3	Provision of Information	A-32
	 	18.4	Rights as Employee, Consultant or Director	A-32
	 	18.5	Rights as a Shareholder	A-32
	 	18.6	Delivery of Title to Shares	A-32
	 	18.7	Fractional Shares	A-33
	 	18.8	Retirement and Welfare Plans	A-33
	 	18.9	Beneficiary Designation	A-33
	 	18.10	Severability	A-33
	 	18.11	No Constraint on Corporate Action	A-33
	 	18.12	Unfunded Obligation	A-33
	 	18.13	Choice of Law	A-33

 

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Epsilon Energy Ltd.

2020 Equity Incentive Plan

 

	1.	ESTABLISHMENT, PURPOSE AND TERM OF PLAN.

 

1.1   Establishment.   The
Epsilon Energy Ltd. 2020 Equity Incentive Plan (the “Plan”) is hereby established effective as of September
1, 2020, the date of the approval of the Plan by the Company’s shareholders (the “Effective Date”).

 

1.2   Purpose.   The
purpose of the Plan is to advance the interests of the Participating Company Group and its shareholders by providing an incentive
to attract, retain and reward persons performing services for the Participating Company Group and by motivating such persons to
contribute to the growth and profitability of the Participating Company Group. The Plan seeks to achieve this purpose by providing
for Awards in the form of Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Performance Shares,
Performance Units, Cash-Based Awards and Other Stock-Based Awards.

 

1.3   Term
of Plan.   The Plan shall continue in effect until its termination by the Committee; provided, however, that
all Awards shall be granted, if at all, within ten (10) years from the Effective Date.

 

	2.	DEFINITIONS AND CONSTRUCTION.

 

2.1   Definitions.   Whenever
used herein, the following terms shall have their respective meanings set forth below:

 

(a)   “Affiliate”
means (i) a parent entity, other than a Parent Corporation, that directly, or indirectly through one or more intermediary
entities, controls the Company or (ii) a subsidiary entity, other than a Subsidiary Corporation, that is controlled by the
Company directly or indirectly through one or more intermediary entities. For this purpose, the terms “parent,” “subsidiary,”
“control” and “controlled by” shall have the meanings assigned to such terms for the purposes of registration
of securities on Form S-8 under the Securities Act.

 

(b)   “Award”
means any Option, Stock Appreciation Right, Restricted Stock Purchase Right, Restricted Stock Bonus, Restricted Stock Unit, Performance
Share, Performance Unit, Cash-Based Award or Other Stock-Based Award granted under the Plan.

 

(c)   “Award
Agreement” means a written or electronic agreement between the Company and a Participant setting forth the terms,
conditions and restrictions applicable to an Award.

 

(d)   “Board”
means the Board of Directors of the Company.

 

(e)   “Cash-Based
Award” means an Award denominated in cash and granted pursuant to Section 11.

 

(f)   “Cashless
Exercise” means a Cashless Exercise as defined in Section 6.3(b)(i).

 

(g)   “Cause”
means, unless such term or an equivalent term is otherwise defined by the applicable Award Agreement or other written agreement
between a Participant and a Participating Company applicable to an Award, any of the following: (i) the Participant’s
theft, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, or falsification of any Participating Company
documents or records; (ii) the Participant’s material failure to abide by a Participating Company’s code of conduct
or other policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct); (iii) the
Participant’s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate
opportunity of a Participating Company (including, without limitation, the Participant’s improper use or disclosure of a
Participating Company’s confidential or proprietary information); (iv) any intentional act by the Participant which
has a material detrimental effect on a Participating Company’s reputation or business; (v) the Participant’s repeated
failure to perform any reasonable assigned duties after written notice from a Participating Company of, and a reasonable

 

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opportunity
to cure, such failure; (vi) any material breach by the Participant of any employment, service, non-disclosure, non-competition,
non-solicitation or other similar agreement between the Participant and a Participating Company, which breach is not cured pursuant
to the terms of such agreement; or (vii) the Participant’s conviction (including any plea of guilty or nolo contendere)
of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs the Participant’s
ability to perform his or her duties with a Participating Company.

 

(h)   “Change
in Control” means, unless such term or an equivalent term is otherwise defined by the applicable Award Agreement
or other written agreement between the Participant and a Participating Company applicable to an Award, the occurrence of any one
or a combination of the following:

 

(i)   any “person”
(as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as such
term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more
than fifty percent (50%) of the total Fair Market Value or total combined voting power of the Company’s then-outstanding
securities entitled to vote generally in the election of Directors; provided, however, that a Change in Control shall not be deemed
to have occurred if such degree of beneficial ownership results from any of the following: (A) an acquisition by any person
who on the Effective Date is the beneficial owner of more than fifty percent (50%) of such voting power, (B) any acquisition
directly from the Company, including, without limitation, pursuant to or in connection with a public offering of securities, (C) any
acquisition by the Company, (D) any acquisition by a trustee or other fiduciary under an employee benefit plan of a Participating
Company or (E) any acquisition by an entity owned directly or indirectly by the shareholders of the Company in substantially
the same proportions as their ownership of the voting securities of the Company; or

 

(ii)   an Ownership
Change Event or series of related Ownership Change Events (collectively, a “Transaction”) in which the
shareholders of the Company immediately before the Transaction do not retain immediately after the Transaction direct or indirect
beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding securities entitled
to vote generally in the election of Directors or, in the case of an Ownership Change Event described in Section 2.1(ee)(iii),
the entity to which the assets of the Company were transferred (the “Transferee”), as the case may be;
or

 

(iii)   a date
specified by the Committee following approval by the shareholders of a plan of complete liquidation or dissolution of the Company;

 

provided, however, that a Change in Control shall
be deemed not to include a transaction described in subsections (i) or (ii) of this Section 2.1(h) in which a majority
of the members of the board of directors of the continuing, surviving or successor entity, or parent thereof, immediately after
such transaction is comprised of Incumbent Directors.

 

For purposes of the preceding
sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities
of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either directly
or through one or more subsidiary corporations or other business entities. The Committee shall determine whether multiple events
described in subsections (i), (ii) and (iii) of this Section 2.1(h) are related and to be treated in the aggregate
as a single Change in Control, and its determination shall be final, binding and conclusive.

 

(i)   “Code”
means the Internal Revenue Code of 1986, as amended, and any applicable regulations and administrative guidelines promulgated thereunder.

 

(j)   “Committee”
means the Compensation Committee and such other committee or subcommittee of the Board, if any, duly appointed to administer the
Plan and having such powers in each instance as shall be specified by the Board. If, at any time, there is no committee of the
Board then authorized or properly constituted to administer the Plan, the Board shall exercise all

 

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of the powers of the Committee
granted herein, and, in any event, the Board may in its discretion exercise any or all of such powers.

 

(k)   “Common
Share” means the common shares of the Company, as adjusted from time to time in accordance with Section 4.4.

 

(l)   “Company”
means Epsilon Energy Ltd., a corporation incorporated under the laws of the Province of Alberta, Canada, and any successor corporation
thereto.

 

(m)   “Consultant”
means a person engaged to provide consulting or advisory services (other than as an Employee or a Director) to a Participating
Company, provided that the identity of such person, the nature of such services or the entity to which such services are provided
would not preclude the Company from offering or selling securities to such person pursuant to the Plan in reliance on registration
on Form S-8 under the Securities Act.

 

(n)   “Director”
means a member of the Board.

 

(o)   “Disability”
means, unless such term or an equivalent term is otherwise defined by the applicable Award Agreement or other written agreement
between the Participant and a Participating Company applicable to an Award, the permanent and total disability of the Participant,
within the meaning of Section 22(e)(3) of the Code.

 

(p)   “Dividend
Equivalent Right” means the right of a Participant, granted at the discretion of the Committee or as otherwise provided
by the Plan, to receive a credit for the account of such Participant in an amount equal to the cash dividends paid on one Common
Share for each Common Share represented by an Award held by such Participant.

 

(q)   “Employee”
means any person treated as an employee (including an Officer or a Director who is also treated as an employee) in the records
of a Participating Company and, with respect to any Incentive Stock Option granted to such person, who is an employee for purposes
of Section 422 of the Code; provided, however, that neither service as a Director nor payment of a Director’s fee shall
be sufficient to constitute employment for purposes of the Plan. The Company shall determine in good faith and in the exercise
of its discretion whether an individual has become or has ceased to be an Employee and the effective date of such individual’s
employment or termination of employment, as the case may be. For purposes of an individual’s rights, if any, under the terms
of the Plan as of the time of the Company’s determination of whether or not the individual is an Employee, all such determinations
by the Company shall be final, binding and conclusive as to such rights, if any, notwithstanding that the Company or any court
of law or governmental agency subsequently makes a contrary determination as to such individual’s status as an Employee.

 

(r)   “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(s)   “Fair
Market Value” means, as of any date, the value of a Common Share or other property as determined by the Committee,
in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject
to the following:

 

(i)   Except
as otherwise determined by the Committee, if, on such date, the Common Shares are listed or quoted on a national or regional securities
exchange or quotation system, the Fair Market Value of a Common Share shall be the closing price of a Common Share as quoted on
the national or regional securities exchange or quotation system constituting the primary market for the Common Shares, as reported
in The Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which
the Common Shares have traded on such securities exchange or quotation system, the date on which the Fair Market Value shall be
established shall be the last day on which the Common Shares were so traded or quoted prior to the relevant date, or such other
appropriate day as shall be determined by the Committee, in its discretion.

 

(ii)   Notwithstanding
the foregoing, the Committee may, in its discretion, determine the Fair Market Value of a Common Share on the basis of the opening,
closing, or average of the

 

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high and low sale prices of a Common Share on such date or the preceding trading day, the actual sale
price of a Common Share received by a Participant, any other reasonable basis using actual transactions in the Common Shares as
reported on a national or regional securities exchange or quotation system, or on any other basis consistent with the requirements
of Section 409A. The Committee may vary its method of determination of the Fair Market Value as provided in this Section for
different purposes under the Plan to the extent consistent with the requirements of Section 409A.

 

(iii)   If, on
such date, the Common Shares are not listed or quoted on a national or regional securities exchange or quotation system, the Fair
Market Value of a Common Share shall be as determined by the Committee in good faith without regard to any restriction other than
a restriction which, by its terms, will never lapse, and in a manner consistent with the requirements of Section 409A.

 

(t)   “Full
Value Award” means any Award settled in Common Shares, other than (i) an Option, (ii) a Stock Appreciation
Right, or (iii) a Restricted Stock Purchase Right or an Other Stock-Based Award under which the Company will receive monetary
consideration equal to the Fair Market Value (determined on the effective date of grant) of the shares subject to such Award.

 

(u)   “Incentive
Stock Option” means an Option intended to be (as set forth in the Award Agreement) and which qualifies as an incentive
stock option within the meaning of Section 422(b) of the Code.

 

(v)   “Incumbent
Director” means a director who either (i) is a member of the Board as of the Effective Date or (ii) is
elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at
the time of such election or nomination (but excluding a director who was elected or nominated in connection with an actual or
threatened proxy contest relating to the election of directors of the Company).

 

(w)   “Insider”
means an Officer, a Director or other person whose transactions in Common Shares are subject to Section 16 of the Exchange
Act, or is otherwise an “insider” as such term is defined by the applicable securities laws of Canada.

 

(x)   “Net
Exercise” means a Net Exercise as defined in Section 6.3(b)(iii).

 

(y)   “Nonemployee
Director” means a Director who is not an Employee.

 

(z)   “Nonemployee
Director Award” means any Award granted to a Nonemployee Director.

 

(aa)   “Nonstatutory
Stock Option” means an Option not intended to be (as set forth in the Award Agreement) or which does not qualify
as an incentive stock option within the meaning of Section 422(b) of the Code.

 

(bb)   “Officer”
means any person designated by the Board as an officer of the Company.

 

(cc)   “Option”
means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant to the Plan.

 

(dd)   “Other
Stock-Based Award” means an Award denominated in Common Shares and granted pursuant to Section 11.

 

(ee)   “Ownership
Change Event” means the occurrence of any of the following with respect to the Company: (i) the direct or indirect
sale or exchange in a single or series of related transactions by the shareholders of the Company of securities of the Company
representing more than fifty percent (50%) of the total combined voting power of the Company’s then outstanding securities
entitled to vote generally in the election of Directors; (ii) a merger, consolidation or other business combination transaction
in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the
Company (other than a sale, exchange or transfer to one or more subsidiaries of the Company).

 

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(ff)   “Parent
Corporation” means any present or future “parent corporation” of the Company, as defined in Section 424(e)
of the Code.

 

(gg)   “Participant”
means any eligible person who has been granted one or more Awards.

 

(hh)   “Participating
Company” means the Company or any Parent Corporation, Subsidiary Corporation or Affiliate.

 

(ii)   “Participating
Company Group” means, at any point in time, the Company and all other entities collectively which are then Participating
Companies.

 

(jj)   “Performance
Award” means an Award of Performance Shares or Performance Units.

 

(kk)   “Performance
Award Formula” means, for any Performance Award, a formula or table established by the Committee pursuant to Section 10.3
which provides the basis for computing the value of a Performance Award at one or more levels of attainment of the applicable Performance
Goal(s) measured as of the end of the applicable Performance Period.

 

(ll)   “Performance
Goal” means a performance goal established by the Committee pursuant to Section 10.3.

 

(mm)   “Performance
Period” means a period established by the Committee pursuant to Section 10.3 at the end of which one or more
Performance Goals are to be measured.

 

(nn)   “Performance
Share” means a right granted to a Participant pursuant to Section 10 to receive a payment equal to the value
of a Performance Share, as determined by the Committee, based upon attainment of applicable Performance Goal(s).

 

(oo)   “Performance
Unit” means a right granted to a Participant pursuant to Section 10 to receive a payment equal to the value
of a Performance Unit, as determined by the Committee, based upon attainment of applicable Performance Goal(s).

 

(pp)   “Restricted
Stock Award” means an Award of a Restricted Stock Bonus or a Restricted Stock Purchase Right.

 

(qq)   “Restricted
Stock Bonus” means Common Shares granted to a Participant pursuant to Section 8.

 

(rr)   “Restricted
Stock Purchase Right” means a right to purchase Common Shares granted to a Participant pursuant to Section 8.

 

(ss)   “Restricted
Stock Unit” means a right granted to a Participant pursuant to Section 9 to receive on a future date or occurrence
of a future event a Common Share or cash in lieu thereof, as determined by the Committee.

 

(tt)   “Rule 16b-3”
means Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or regulation.

 

(uu)   “SAR”
or “Stock Appreciation Right” means a right granted to a Participant pursuant to Section 7 to receive
payment, for each Common Share subject to such Award, of an amount equal to the excess, if any, of the Fair Market Value of a Common
Share on the date of exercise of the Award over the exercise price thereof.

 

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

 

(ww)   “Section 409A
Deferred Compensation” means compensation provided pursuant to an Award that constitutes nonqualified deferred compensation
within the meaning of Section 409A.

 

(xx)   “Securities
Act” means the Securities Act of 1933, as amended.

 

(yy)   “Service”
means a Participant’s employment or service with the Participating Company Group, whether as an Employee, a Director or a
Consultant. Unless otherwise provided by the

 

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Committee, a Participant’s Service shall not be deemed to have terminated merely
because of a change in the capacity in which the Participant renders Service or a change in the Participating Company for which
the Participant renders Service, provided that there is no interruption or termination of the Participant’s Service. Furthermore,
a Participant’s Service shall not be deemed to have been interrupted or terminated if the Participant takes any military
leave, sick leave, or other bona fide leave of absence approved by the Company. However, unless otherwise provided by the Committee,
if any such leave taken by a Participant exceeds three (3) months, then on the first (1st) day following the end of such three-month
period the Participant’s Service shall be deemed to have terminated, unless the Participant’s right to return to Service
is guaranteed by statute or contract. Notwithstanding the foregoing, unless otherwise designated by the Company or required by
law, an unpaid leave of absence shall not be treated as Service for purposes of determining vesting under the Participant’s
Award Agreement. A Participant’s Service shall be deemed to have terminated either upon an actual termination of Service
or upon the business entity for which the Participant performs Service ceasing to be a Participating Company. Subject to the foregoing,
the Company, in its discretion, shall determine whether the Participant’s Service has terminated and the effective date of
and reason for such termination.

 

(zz)   “Stock
Tender Exercise” means a Stock Tender Exercise as defined in Section 6.3(b)(ii).

 

(aaa)   “Subsidiary
Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f)
of the Code or pursuant to the applicable securities laws of Canada.

 

(bbb)   “Ten
Percent Owner” means a Participant who, at the time an Option is granted to the Participant, owns shares possessing
more than ten percent (10%) of the total combined voting power of all classes of shares of a Participating Company (other
than an Affiliate) within the meaning of Section 422(b)(6) of the Code.

 

(ccc)   “Trading
Compliance Policy” means the written policy of the Company pertaining to the purchase, sale, transfer or other disposition
of the Company’s equity securities by Directors, Officers, Employees or other service providers who may possess material,
nonpublic information regarding the Company or its securities.

 

(ddd)   “Vesting
Conditions” mean those conditions established in accordance with the Plan prior to the satisfaction of which an Award
or shares subject to an Award remain subject to forfeiture or a repurchase option in favor of the Company exercisable for the Participant’s
monetary purchase price, if any, for such shares upon the Participant’s termination of Service or failure of a performance
condition to be satisfied.

 

2.2   Construction.   Captions
and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the
Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.
Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

 

		3.	ADMINISTRATION.

 

3.1   Administration
by the Committee.   The Plan shall be administered by the Committee. All questions of interpretation of the
Plan, of any Award Agreement or of any other form of agreement or other document employed by the Company in the administration
of the Plan or of any Award shall be determined by the Committee, and such determinations shall be final, binding and conclusive
upon all persons having an interest in the Plan or such Award, unless fraudulent or made in bad faith. Any and all actions, decisions
and determinations taken or made by the Committee in the exercise of its discretion pursuant to the Plan or Award Agreement or
other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence) shall be final,
binding and conclusive upon all persons having an interest therein. All expenses incurred in connection with the administration
of the Plan shall be paid by the Company.

 

3.2   Authority
of Officers.   Any Officer shall have the authority to act on behalf of the Company with respect to any matter,
right, obligation, determination or election that is the responsibility of or

 

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that is allocated to the Company herein, provided
that the Officer has apparent authority with respect to such matter, right, obligation, determination or election.

 

3.3   Administration
with Respect to Insiders.   With respect to participation by Insiders in the Plan, at any time that any class
of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered
in compliance with the requirements, if any, of Rule 16b-3.

 

3.4   Powers
of the Committee.   In addition to any other powers set forth in the Plan and subject to the provisions of the
Plan, the Committee shall have the full and final power and authority, in its discretion:

 

(a)   to determine
the persons to whom, and the time or times at which, Awards shall be granted and the number of Common Shares, units or monetary
value to be subject to each Award;

 

(b)   to determine
the type of Award granted;

 

(c)   to determine
the Fair Market Value of the Common Shares or other property;

 

(d)   to determine
the terms, conditions and restrictions applicable to each Award (which need not be identical) and any shares acquired pursuant
thereto, including, without limitation, (i) the exercise or purchase price of shares pursuant to any Award, (ii) the
method of payment for shares purchased pursuant to any Award, (iii) the method for satisfaction of any tax withholding obligation
arising in connection with any Award, including by the withholding or delivery of Common Shares, (iv) the timing, terms and
conditions of the exercisability or vesting of any Award or any shares acquired pursuant thereto, (v) the Performance Measures,
Performance Period, Performance Award Formula and Performance Goals applicable to any Award and the extent to which such Performance
Goals have been attained, (vi) the time of expiration of any Award, (vii) the effect of any Participant’s termination
of Service on any of the foregoing, and (viii) all other terms, conditions and restrictions applicable to any Award or shares
acquired pursuant thereto not inconsistent with the terms of the Plan;

 

(e)   to determine
whether an Award will be settled in Common Shares, cash, other property or in any combination thereof;

 

(f)   to approve
one or more forms of Award Agreement;

 

(g)   to amend,
modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any shares acquired
pursuant thereto;

 

(h)   to accelerate,
continue, extend or defer the exercisability or vesting of any Award or any shares acquired pursuant thereto, including with respect
to the period following a Participant’s termination of Service;

 

(i)   to prescribe,
amend or rescind rules, guidelines and policies relating to the Plan, or to adopt sub-plans or supplements to, or alternative versions
of, the Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws of, or to accommodate
the tax policy, accounting principles or custom of, foreign jurisdictions whose residents may be granted Awards; and

 

(j)   to correct
any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations
and take such other actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent
with the provisions of the Plan or applicable law.

 

3.5   Option
or SAR Repricing.   Without the affirmative vote of holders of a majority of the Common Shares cast in person
or by proxy at a meeting of the shareholders of the Company at which a quorum representing a majority of all outstanding Common
Shares are present or represented by proxy, the Committee shall not approve a program providing for either (a) the cancellation
of outstanding Options or SARs having exercise prices per share greater than the then Fair Market Value of a

 

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Common Share (“Underwater
Awards”) and the grant in substitution therefor of new Options or SARs having a lower exercise price, Full Value
Awards or payments in cash, or (b) the amendment of outstanding Underwater Awards to reduce the exercise price thereof. This
Section shall not be construed to apply to (i) “issuing or assuming a stock option in a transaction to which Section 424(a)
applies,” within the meaning of Section 424 of the Code, (ii) adjustments pursuant to the assumption of or substitution
for an Option or SAR in a manner that would comply with Section 409A, or (iii) an adjustment pursuant to Section 4.4.

 

3.6   Indemnification.   In
addition to such other rights of indemnification as they may have as members of the Board or the Committee or as officers or employees
of the Participating Company Group, to the extent permitted by applicable law, members of the Board or the Committee and any officers
or employees of the Participating Company Group to whom authority to act for the Board, the Committee or the Company is delegated
shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily
incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they
or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right
granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent
legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except
in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross
negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution
of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle
and defend the same.

 

	4.	SHARES SUBJECT TO PLAN.

 

4.1   Maximum
Number of Shares Issuable.   Subject to adjustment as provided in Sections 4.2, 4.3 and 4.4, the maximum
aggregate number of Common Shares that may be issued under the Plan shall be equal to 2,000,000 shares, and such shares shall consist
of authorized but unissued or reacquired Common Shares or any combination thereof.

 

4.2   Share
Counting.   If an outstanding Award for any reason expires or is terminated or canceled without having been
exercised or settled in full, or if Common Shares acquired pursuant to an Award subject to forfeiture or repurchase are forfeited
or repurchased by the Company for an amount not greater than the Participant’s purchase price, the Common Shares allocable
to the terminated portion of such Award or such forfeited or repurchased Common Shares shall again be available for issuance under
the Plan. Common Shares shall not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award that
is settled in cash. Upon payment in Common Shares pursuant to the exercise of an SAR, the number of shares available for issuance
under the Plan shall be reduced by the gross number of shares for which the SAR is exercised. If the exercise price of an Option
is paid by tender to the Company, or attestation to the ownership, of Common Shares owned by the Participant, or by means of a
Net Exercise, the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which
the Option is exercised. Shares purchased in the open market with proceeds from the exercise of Options shall not be added to the
limit set forth in Section 4.1. Shares withheld or reacquired by the Company in satisfaction of tax withholding obligations
pursuant to the exercise or settlement of Options or SARs pursuant to Section 16.2 shall not again be available for issuance
under the Plan. Shares withheld or reacquired by the Company in satisfaction of tax withholding obligations pursuant to the vesting
or settlement of Full Value Awards pursuant to Section 16.2 shall again become available for issuance under the Plan.

 

4.3   Adjustments
for Changes in Capital Structure.   Subject to any required action by the shareholders of the Company and the
requirements of Sections 409A and 424 of the Code to the extent applicable, in the event of any change in the Common Shares
effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation,
recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination
of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend
or distribution to the shareholders of the Company in a form other than Common Shares (excepting regular, periodic cash dividends)
that has a material

 

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effect on the Fair Market Value of Common Shares, appropriate and proportionate adjustments shall be made in
the number and kind of shares subject to the Plan and to any outstanding Awards, the Award limits set forth in Section 5.3
and Section 5.4, and in the exercise or purchase price per share under any outstanding Award in order to prevent dilution
or enlargement of Participants’ rights under the Plan. For purposes of the foregoing, conversion of any convertible securities
of the Company shall not be treated as “effected without receipt of consideration by the Company.” If a majority of
the shares which are of the same class as the shares that are subject to outstanding Awards are exchanged for, converted into,
or otherwise become (whether or not pursuant to an Ownership Change Event) shares of another corporation (the “New
Shares”), the Committee may unilaterally amend the outstanding Awards to provide that such Awards are for New Shares.
In the event of any such amendment, the number of shares subject to, and the exercise or purchase price per share of, the outstanding
Awards shall be adjusted in a fair and equitable manner as determined by the Committee, in its discretion. Any fractional share
resulting from an adjustment pursuant to this Section shall be rounded down to the nearest whole number and the exercise or purchase
price per share shall be rounded up to the nearest whole cent. In no event may the exercise or purchase price, if any, under any
Award be decreased to an amount less than the par value, if any, of the shares subject to such Award. The Committee in its discretion,
may also make such adjustments in the terms of any Award to reflect, or related to, such changes in the capital structure of the
Company or distributions as it deems appropriate, including modification of Performance Goals, Performance Award Formulas and Performance
Periods. The adjustments determined by the Committee pursuant to this Section shall be final, binding and conclusive.

 

4.4   Assumption
or Substitution of Awards.   The Committee may, without affecting the number of Common Shares reserved or available
hereunder, authorize the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition
of property or shares, or reorganization upon such terms and conditions as it may deem appropriate, subject to compliance with
Section 409A and any other applicable provisions of the Code. In addition, subject to compliance with applicable laws, and
listing requirements, shares available for grant under a shareholder approved plan of an acquired company (as appropriately adjusted
to reflect the transaction) may be used for awards under the Plan to individuals who were not Employees or Directors of the Participating
Company Group prior to the transaction and shall not reduce the number of shares otherwise available for issuance under the Plan.

 

	5.	ELIGIBILITY, PARTICIPATION AND AWARD LIMITATIONS.

 

5.1   Persons
Eligible for Awards.   Awards may be granted only to Employees, Consultants and Directors.

 

5.2   Participation
in the Plan.   Awards are granted solely at the discretion of the Committee. Eligible persons may be granted
more than one Award. However, eligibility in accordance with this Section shall not entitle any person to be granted an Award,
or, having been granted an Award, to be granted an additional Award.

 

5.3   Incentive
Stock Option Limitations.

 

(a)   Maximum
Number of Shares Issuable Pursuant to Incentive Stock Options.   Subject to adjustment as provided in Section 4.4,
the maximum aggregate number of Common Shares that may be issued under the Plan pursuant to the exercise of Incentive Stock Options
shall not exceed 2,000,000 shares. The maximum aggregate number of Common Shares that may be issued under the Plan pursuant to
all Awards other than Incentive Stock Options shall be the number of shares determined in accordance with Section 4.1, subject
to adjustment as provided in Sections 4.2, 4.3 and 4.4.

 

(b)   Persons
Eligible.   An Incentive Stock Option may be granted only to a person who, on the effective date of grant,
is an Employee of the Company, a Parent Corporation or a Subsidiary Corporation (each being an “ISO-Qualifying Corporation”).
Any person who is not an Employee of an ISO-Qualifying Corporation on the effective date of the grant of an Option to such person
may be granted only a Nonstatutory Stock Option.

 

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(c)   Fair
Market Value Limitation.   To the extent that options designated as Incentive Stock Options (granted under
all share plans of the Participating Company Group, including the Plan) become exercisable by a Participant for the first time
during any calendar year for shares having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion
of such options which exceeds such amount shall be treated as Nonstatutory Stock Options. For purposes of this Section, options
designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market
Value of the shares shall be determined as of the time the option with respect to such shares is granted. If the Code is amended
to provide for a limitation different from that set forth in this Section, such different limitation shall be deemed incorporated
herein effective as of the date and with respect to such Options as required or permitted by such amendment to the Code. If an
Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set
forth in this Section, the Participant may designate which portion of such Option the Participant is exercising. In the absence
of such designation, the Participant shall be deemed to have exercised the Incentive Stock Option portion of the Option first.
Upon exercise of the Option, shares issued pursuant to each such portion shall be separately identified.

 

5.4   Nonemployee
Director Award Limit.   Notwithstanding any other provision of the Plan to the contrary, the aggregate grant
date fair value (computed as of the date of grant in accordance with generally accepted accounting principles in the United States)
of all Awards granted to any Nonemployee Director during any fiscal year of the Company, taken together with any cash compensation
paid to such Nonemployee Director during such fiscal year, shall not exceed $300,000.

 

	6.	STOCK OPTIONS.

 

Options shall be evidenced by Award Agreements
specifying the number of Common Shares covered thereby, in such form as the Committee shall establish. Such Award Agreements may
incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:

 

6.1   Exercise
Price.   The exercise price for each Option shall be established in the discretion of the Committee; provided,
however, that (a) the exercise price per share shall be not less than the Fair Market Value of a Common Share on the effective
date of grant of the Option and (b) no Incentive Stock Option granted to a Ten Percent Owner shall have an exercise price
per share less than one hundred ten percent (110%) of the Fair Market Value of a Common Share on the effective date of grant
of the Option. Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may
be granted with an exercise price less than the minimum exercise price set forth above if such Option is granted pursuant to an
assumption or substitution for another option in a manner that would qualify under the provisions of Section 409A or Section 424(a)
of the Code.

 

6.2   Exercisability
and Term of Options.   Options shall be exercisable at such time or times, or upon such event or events, and
subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth
in the Award Agreement evidencing such Option; provided, however, that (a) no Option shall be exercisable after the expiration
of ten (10) years after the effective date of grant of such Option, (b) no Incentive Stock Option granted to a Ten Percent
Owner shall be exercisable after the expiration of five (5) years after the effective date of grant of such Option and (c) no
Option granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall
be first exercisable until at least six (6) months following the date of grant of such Option (except in the event of such
Employee’s death, disability or retirement, upon a Change in Control, or as otherwise permitted by the Worker Economic Opportunity
Act). Subject to the foregoing, unless otherwise specified by the Committee in the grant of an Option, each Option shall terminate
ten (10) years after the effective date of grant of the Option, unless earlier terminated in accordance with its provisions.

 

6.3   Payment
of Exercise Price.

 

(a)   Forms
of Consideration Authorized.   Except as otherwise provided below, payment of the exercise price for the
number of Common Shares being purchased pursuant to any Option shall be made (i) in cash, by check or in cash equivalent;
(ii) if permitted by the Committee and

 

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subject to the limitations contained in Section 6.3(b), by means of (1) a
Cashless Exercise, (2) a Stock Tender Exercise or (3) a Net Exercise; (iii) by such other consideration as may be
approved by the Committee from time to time to the extent permitted by applicable law, or (iv) by any combination thereof.
The Committee may at any time or from time to time grant Options which do not permit all of the foregoing forms of consideration
to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration.

 

(b)   Limitations on Forms of
Consideration.

 

(i)   Cashless
Exercise.   A “Cashless Exercise” means the delivery of a properly executed notice
of exercise together with irrevocable instructions to a broker providing for the assignment to the Company of the proceeds of a
sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation,
through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors
of the Federal Reserve System). The Company reserves, at any and all times, the right, in the Company’s sole and absolute
discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless
Exercise, including with respect to one or more Participants specified by the Company notwithstanding that such program or procedures
may be available to other Participants.

 

(ii)   Stock
Tender Exercise.   A “Stock Tender Exercise” means the delivery of a properly executed
exercise notice accompanied by a Participant’s tender to the Company, or attestation to the ownership, in a form acceptable
to the Company of whole Common Shares owned by the Participant having a Fair Market Value that does not exceed the aggregate exercise
price for the shares with respect to which the Option is exercised. A Stock Tender Exercise shall not be permitted if it would
constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s
shares. If required by the Company, an Option may not be exercised by tender to the Company, or attestation to the ownership, of
Common Shares unless such shares either have been owned by the Participant for a period of time required by the Company (and not
used for another option exercise by attestation during such period) or were not acquired, directly or indirectly, from the Company.

 

(iii)   Net
Exercise.   A “Net Exercise” means the delivery of a properly executed exercise notice
followed by a procedure pursuant to which (1) the Company will reduce the number of shares otherwise issuable to a Participant
upon the exercise of an Option by the largest whole number of shares having a Fair Market Value that does not exceed the aggregate
exercise price for the shares with respect to which the Option is exercised, and (2) the Participant shall pay to the Company
in cash the remaining balance of such aggregate exercise price not satisfied by such reduction in the number of whole shares to
be issued.

 

6.4   Effect of Termination of
Service.

 

(a)   Option
Exercisability.   Subject to earlier termination of the Option as otherwise provided by this Plan and unless
otherwise provided by the Committee, an Option shall be exercisable after the Participant’s termination of Service to the
extent it is then vested only during the applicable time period determined in accordance with this Section and thereafter shall
terminate.

 

(i)   Disability.   If
the Participant’s Service terminates because of the Disability of the Participant, the Option, to the extent unexercised
and exercisable for vested shares on the date on which the Participant’s Service terminated, may be exercised by the Participant
(or the Participant’s guardian or legal representative) at any time prior to the expiration of twelve (12) months (or such
longer or shorter period provided by the Award Agreement) after the date on which the Participant’s Service terminated, but
in any event no later than the date of expiration of the Option’s term as set forth in the Award Agreement evidencing such
Option (the “Option Expiration Date”).

 

(ii)   Death.   If
the Participant’s Service terminates because of the death of the Participant, the Option, to the extent unexercised and exercisable
for vested shares on the

 

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date on which the Participant’s Service terminated, may be exercised by the Participant’s
legal representative or other person who acquired the right to exercise the Option by reason of the Participant’s death at
any time prior to the expiration of twelve (12) months (or such longer or shorter period provided by the Award Agreement) after
the date on which the Participant’s Service terminated, but in any event no later than the Option Expiration Date. The Participant’s
Service shall be deemed to have terminated on account of death if the Participant dies within three (3) months (or such longer
or shorter period provided by the Award Agreement) after the Participant’s termination of Service.

 

(iii)   Termination
for Cause.   Notwithstanding any other provision of the Plan to the contrary, if the Participant’s Service
is terminated for Cause or if, following the Participant’s termination of Service and during any period in which the Option
otherwise would remain exercisable, the Participant engages in any act that would constitute Cause, the Option shall terminate
in its entirety and cease to be exercisable immediately upon such termination of Service or act.

 

(iv)   Other
Termination of Service.   If the Participant’s Service terminates for any reason, except Disability, death
or Cause, the Option, to the extent unexercised and exercisable for vested shares on the date on which the Participant’s
Service terminated, may be exercised by the Participant at any time prior to the expiration of three (3) months (or such longer
or shorter period provided by the Award Agreement) after the date on which the Participant’s Service terminated, but in any
event no later than the Option Expiration Date.

 

(b)   Extension
if Exercise Prevented by Law.   Notwithstanding the foregoing, other than termination of Service for Cause,
if the exercise of an Option within the applicable time periods set forth in Section 6.4(a) is prevented by the provisions
of Section 14 below, the Option shall remain exercisable until the later of (i) thirty (30) days after the date such
exercise first would no longer be prevented by such provisions or (ii) the end of the applicable time period under Section 6.4(a),
but in any event no later than the Option Expiration Date.

 

6.5   Transferability
of Options.   During the lifetime of the Participant, an Option shall be exercisable only by the Participant
or the Participant’s guardian or legal representative. An Option shall not be subject in any manner to anticipation, alienation,
sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s
beneficiary, except transfer by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted
by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Option, an Option shall be assignable
or transferable subject to the applicable limitations, if any, described in the General Instructions to Form S-8 under the Securities
Act or, in the case of an Incentive Stock Option, only as permitted by applicable regulations under Section 421 of the Code
in a manner that does not disqualify such Option as an Incentive Stock Option.

 

	7.	STOCK APPRECIATION RIGHTS.

 

Stock Appreciation Rights shall be evidenced
by Award Agreements specifying the number of Common Shares subject to the Award, in such form as the Committee shall establish.
Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to
the following terms and conditions:

 

7.1   Types
of SARs Authorized.   SARs may be granted in tandem with all or any portion of a related Option (a “Tandem
SAR”) or may be granted independently of any Option (a “Freestanding SAR”). A Tandem SAR
may only be granted concurrently with the grant of the related Option.

 

7.2   Exercise
Price.   The exercise price for each SAR shall be established in the discretion of the Committee; provided,
however, that (a) the exercise price per share subject to a Tandem SAR shall be the exercise price per share under the related
Option and (b) the exercise price per share subject to a Freestanding SAR shall be not less than the Fair Market Value of
a Common Share on the effective date of grant of the SAR. Notwithstanding the foregoing, an SAR may be granted with an exercise
price lower than the minimum exercise price set forth above if such SAR is granted pursuant to an

 

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assumption or substitution for
another stock appreciation right in a manner that would qualify under the provisions of Section 409A of the Code.

 

7.3   Exercisability
and Term of SARs.

 

(a)   Tandem
SARs.   Tandem SARs shall be exercisable only at the time and to the extent, and only to the extent, that the
related Option is exercisable, subject to such provisions as the Committee may specify where the Tandem SAR is granted with respect
to less than the full number of Common Shares subject to the related Option. The Committee may, in its discretion, provide in any
Award Agreement evidencing a Tandem SAR that such SAR may not be exercised without the advance approval of the Company and, if
such approval is not given, then the Option shall nevertheless remain exercisable in accordance with its terms. A Tandem SAR shall
terminate and cease to be exercisable no later than the date on which the related Option expires or is terminated or canceled.
Upon the exercise of a Tandem SAR with respect to some or all of the shares subject to such SAR, the related Option shall be canceled
automatically as to the number of shares with respect to which the Tandem SAR was exercised. Upon the exercise of an Option related
to a Tandem SAR as to some or all of the shares subject to such Option, the related Tandem SAR shall be canceled automatically
as to the number of shares with respect to which the related Option was exercised.

 

(b)   Freestanding
SARs.   Freestanding SARs shall be exercisable at such time or times, or upon such event or events, and subject
to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award
Agreement evidencing such SAR; provided, however, that (i) no Freestanding SAR shall be exercisable after the expiration of
ten (10) years after the effective date of grant of such SAR and (ii) no Freestanding SAR granted to an Employee who is a
non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable until at least
six (6) months following the date of grant of such SAR (except in the event of such Employee’s death, disability or
retirement, upon a Change in Control, or as otherwise permitted by the Worker Economic Opportunity Act). Subject to the foregoing,
unless otherwise specified by the Committee in the grant of a Freestanding SAR, each Freestanding SAR shall terminate ten (10)
years after the effective date of grant of the SAR, unless earlier terminated in accordance with its provisions.

 

7.4   Exercise
of SARs.   Upon the exercise (or deemed exercise pursuant to Section 7.5) of an SAR, the Participant (or
the Participant’s legal representative or other person who acquired the right to exercise the SAR by reason of the Participant’s
death) shall be entitled to receive payment of an amount for each share with respect to which the SAR is exercised equal to the
excess, if any, of the Fair Market Value of a Common Share on the date of exercise of the SAR over the exercise price. Payment
of such amount shall be made (a) in the case of a Tandem SAR, solely in Common Shares in a lump sum upon the date of exercise
of the SAR and (b) in the case of a Freestanding SAR, in cash, Common Shares, or any combination thereof as determined by
the Committee, in a lump sum upon the date of exercise of the SAR. When payment is to be made in Common Shares, the number of shares
to be issued shall be determined on the basis of the Fair Market Value of a Common Share on the date of exercise of the SAR. For
purposes of Section 7, an SAR shall be deemed exercised on the date on which the Company receives notice of exercise from
the Participant or as otherwise provided in Section 7.5.

 

7.5   Deemed
Exercise of SARs.   If, on the date on which an SAR would otherwise terminate or expire, the SAR by its terms
remains exercisable immediately prior to such termination or expiration and, if so exercised, would result in a payment to the
holder of such SAR, then any portion of such SAR which has not previously been exercised shall automatically be deemed to be exercised
as of such date with respect to such portion.

 

7.6   Effect
of Termination of Service.   Subject to earlier termination of the SAR as otherwise provided herein and unless
otherwise provided by the Committee, an SAR shall be exercisable after a Participant’s termination of Service only to the
extent and during the applicable time period determined in accordance with Section 6.4 (treating the SAR as if it were an
Option) and thereafter shall terminate.

 

7.7   Transferability
of SARs.   During the lifetime of the Participant, an SAR shall be exercisable only by the Participant or the
Participant’s guardian or legal representative. An SAR shall not be subject

 

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in any manner to anticipation, alienation, sale,
exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s
beneficiary, except transfer by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted
by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Award, a Tandem SAR related to a Nonstatutory
Stock Option or a Freestanding SAR shall be assignable or transferable subject to the applicable limitations, if any, described
in the General Instructions to Form S-8 under the Securities Act.

 

	8.	RESTRICTED STOCK AWARDS.

 

Restricted Stock Awards shall be evidenced
by Award Agreements specifying whether the Award is a Restricted Stock Bonus or a Restricted Stock Purchase Right and the number
of Common Shares subject to the Award, in such form as the Committee shall establish. Such Award Agreements may incorporate all
or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:

 

8.1   Types
of Restricted Stock Awards Authorized.   Restricted Stock Awards may be granted in the form of either a Restricted
Stock Bonus or a Restricted Stock Purchase Right. Restricted Stock Awards may be granted upon such conditions as the Committee
shall determine, including, without limitation, upon the attainment of one or more Performance Goals described in Section 10.4.
If either the grant of or satisfaction of Vesting Conditions applicable to a Restricted Stock Award is to be contingent upon the
attainment of one or more Performance Goals, the Committee shall follow procedures substantially equivalent to those set forth
in Sections 10.3 through 10.5(a).

 

8.2   Purchase
Price.   The purchase price for Common Shares issuable under each Restricted Stock Purchase Right shall be established
by the Committee in its discretion. No monetary payment (other than applicable tax withholding) shall be required as a condition
of receiving Common Shares pursuant to a Restricted Stock Bonus, the consideration for which shall be services actually rendered
to a Participating Company or for its benefit. Notwithstanding the foregoing, if required by applicable state corporate law, the
Participant shall furnish consideration in the form of cash or past services rendered to a Participating Company or for its benefit
having a value not less than the par value of the Common Shares subject to a Restricted Stock Award.

 

8.3   Purchase
Period.   A Restricted Stock Purchase Right shall be exercisable within a period established by the Committee,
which shall in no event exceed thirty (30) days from the effective date of the grant of the Restricted Stock Purchase Right.

 

8.4   Payment
of Purchase Price.   Except as otherwise provided below, payment of the purchase price for the number of Common
Shares being purchased pursuant to any Restricted Stock Purchase Right shall be made (a) in cash, by check or in cash equivalent,
(b) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable
law, or (c) by any combination thereof.

 

8.5   Vesting
and Restrictions on Transfer.   Shares issued pursuant to any Restricted Stock Award may (but need not) be made
subject to Vesting Conditions based upon the satisfaction of such Service requirements, conditions, restrictions or performance
criteria, including, without limitation, Performance Goals as described in Section 10.4, as shall be established by the Committee
and set forth in the Award Agreement evidencing such Award. During any period in which shares acquired pursuant to a Restricted
Stock Award remain subject to Vesting Conditions, such shares may not be sold, exchanged, transferred, pledged, assigned or otherwise
disposed of other than pursuant to an Ownership Change Event or as provided in Section 8.8. The Committee, in its discretion,
may provide in any Award Agreement evidencing a Restricted Stock Award that, if the satisfaction of Vesting Conditions with respect
to any shares subject to such Restricted Stock Award would otherwise occur on a day on which the sale of such shares would violate
the provisions of the Trading Compliance Policy, then satisfaction of the Vesting Conditions automatically shall be determined
on the next trading day on which the sale of such shares would not violate the Trading Compliance Policy. Upon request by the Company,
each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of Common Shares hereunder
and shall promptly present to the Company any and all certificates

 

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representing Common Shares acquired hereunder for the placement
on such certificates of appropriate legends evidencing any such transfer restrictions.

 

8.6   Voting
Rights; Dividends and Distributions.   Except as provided in this Section, Section 8.5 and any Award
Agreement, during any period in which shares acquired pursuant to a Restricted Stock Award remain subject to Vesting
Conditions, the Participant shall have all of the rights of a shareholder of the Company holding Common Shares, including the
right to vote such shares and to receive all dividends and other distributions paid with respect to such shares; provided,
however, that if so determined by the Committee and provided by the Award Agreement, such dividends and distributions shall
be subject to the same Vesting Conditions as the shares subject to the Restricted Stock Award with respect to which such
dividends or distributions were paid, and otherwise shall be paid no later than the end of the calendar year in which such
dividends or distributions are paid to shareholders (or, if later, the 15th day of the third month following the date such
dividends or distributions are paid to shareholders). In the event of a dividend or distribution paid in Common Shares or
other property or any other adjustment made upon a change in the capital structure of the Company as described in
Section 4.4, any and all new, substituted or additional securities or other property (other than regular, periodic cash
dividends) to which the Participant is entitled by reason of the Participant’s Restricted Stock Award shall be
immediately subject to the same Vesting Conditions as the shares subject to the Restricted Stock Award with respect to which
such dividends or distributions were paid or adjustments were made.

 

8.7   Effect
of Termination of Service.   Unless otherwise provided by the Committee in the Award Agreement evidencing a
Restricted Stock Award, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including
the Participant’s death or disability), then (a) the Company shall have the option to repurchase for the purchase price
paid by the Participant any shares acquired by the Participant pursuant to a Restricted Stock Purchase Right which remain subject
to Vesting Conditions as of the date of the Participant’s termination of Service and (b) the Participant shall forfeit
to the Company any shares acquired by the Participant pursuant to a Restricted Stock Bonus which remain subject to Vesting Conditions
as of the date of the Participant’s termination of Service. The Company shall have the right to assign at any time any repurchase
right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company.

 

8.8   Nontransferability
of Restricted Stock Award Rights.   Rights to acquire Common Shares pursuant to a Restricted Stock Award shall
not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or garnishment
by creditors of the Participant or the Participant’s beneficiary, except transfer by will or the laws of descent and distribution.
All rights with respect to a Restricted Stock Award granted to a Participant hereunder shall be exercisable during his or her lifetime
only by such Participant or the Participant’s guardian or legal representative.

 

	9.	RESTRICTED STOCK UNITS.

 

Restricted Stock Unit Awards shall be evidenced
by Award Agreements specifying the number of Restricted Stock Units subject to the Award, in such form as the Committee shall establish.
Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to
the following terms and conditions:

 

9.1   Grant
of Restricted Stock Unit Awards.   Restricted Stock Unit Awards may be granted upon such conditions as the Committee
shall determine, including, without limitation, upon the attainment of one or more Performance Goals described in Section 10.4.
If either the grant of a Restricted Stock Unit Award or the Vesting Conditions with respect to such Award is to be contingent upon
the attainment of one or more Performance Goals, the Committee shall follow procedures substantially equivalent to those set forth
in Sections 10.3 through 10.5(a).

 

9.2   Purchase
Price.   No monetary payment (other than applicable tax withholding, if any) shall be required as a condition
of receiving a Restricted Stock Unit Award, the consideration for which shall be services actually rendered to a Participating
Company or for its benefit. Notwithstanding the foregoing, if required by applicable state corporate law, the Participant shall
furnish consideration in

 

    A-19

     

    

 

the form of cash or past services rendered to a Participating Company or for its benefit having a value
not less than the par value of the Common Shares issued upon settlement of the Restricted Stock Unit Award.

 

9.3   Vesting.   Restricted
Stock Unit Awards may (but need not) be made subject to Vesting Conditions based upon the satisfaction of such Service requirements,
conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in Section 10.4,
as shall be established by the Committee and set forth in the Award Agreement evidencing such Award.

 

9.4   Voting
Rights, Dividend Equivalent Rights and Distributions.   Participants shall have no voting or dividend rights
with respect to Common Shares represented by Restricted Stock Units until the date of the issuance of such shares (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). However, the Committee,
in its discretion, may provide in the Award Agreement evidencing any Restricted Stock Unit Award that the Participant shall be
entitled to Dividend Equivalent Rights with respect to the payment of cash dividends on Common Shares during the period beginning
on the date such Award is granted and ending, with respect to each share subject to the Award, on the earlier of the date the Award
is settled or the date on which it is terminated. Dividend Equivalent Rights, if any, shall be paid by crediting the Participant
with a cash amount or with additional whole Restricted Stock Units as of the date of payment of such cash dividends on Common Shares,
as determined by the Committee. The number of additional Restricted Stock Units (rounded to the nearest whole number), if any,
to be credited shall be determined by dividing (a) the amount of cash dividends paid on the dividend payment date with respect
to the number of Common Shares represented by the Restricted Stock Units previously credited to the Participant by (b) the
Fair Market Value per Common Share on such date. If so determined by the Committee and provided by the Award Agreement, such cash
amount or additional Restricted Stock Units shall be subject to the same terms and conditions and shall be settled in the same
manner and at the same time as the Restricted Stock Units originally subject to the Restricted Stock Unit Award. In the event of
a dividend or distribution paid in Common Shares or other property or any other adjustment made upon a change in the capital structure
of the Company as described in Section 4.4, appropriate adjustments shall be made in the Participant’s Restricted Stock
Unit Award so that it represents the right to receive upon settlement any and all new, substituted or additional securities or
other property (other than regular, periodic cash dividends) to which the Participant would be entitled by reason of the Common
Shares issuable upon settlement of the Award, and all such new, substituted or additional securities or other property shall be
immediately subject to the same Vesting Conditions as are applicable to the Award.

 

9.5   Effect
of Termination of Service.   Unless otherwise provided by the Committee and set forth in the Award Agreement
evidencing a Restricted Stock Unit Award, if a Participant’s Service terminates for any reason, whether voluntary or involuntary
(including the Participant’s death or disability), then the Participant shall forfeit to the Company any Restricted Stock
Units pursuant to the Award which remain subject to Vesting Conditions as of the date of the Participant’s termination of
Service.

 

9.6   Settlement
of Restricted Stock Unit Awards.   The Company shall issue to a Participant on the date on which Restricted
Stock Units subject to the Participant’s Restricted Stock Unit Award vest or on such other date determined by the Committee
in compliance with Section 409A, if applicable, and set forth in the Award Agreement one (1) Common Share (and/or any
other new, substituted or additional securities or other property pursuant to an adjustment described in Section 9.4) for
each Restricted Stock Unit then becoming vested or otherwise to be settled on such date, subject to the withholding of applicable
taxes, if any. The Committee, in its discretion, may provide in any Award Agreement evidencing a Restricted Stock Unit Award that
if the settlement date with respect to any shares issuable upon vesting of Restricted Stock Units would otherwise occur on a day
on which the sale of such shares would violate the provisions of the Trading Compliance Policy, then the settlement date shall
be deferred until the next trading day on which the sale of such shares would not violate the Trading Compliance Policy but in
any event no later than the 15th day of the third calendar month following the year in which such Restricted Stock Units vest.
If permitted by the Committee, the Participant may elect, consistent with the requirements of Section 409A, to defer receipt
of all or any portion of the Common Shares or other property otherwise issuable to the Participant pursuant to this Section, and

 

    A-20

     

    

 

such deferred issuance date(s) and amount(s) elected by the Participant shall be set forth in the Award Agreement. Notwithstanding
the foregoing, the Committee, in its discretion, may provide for settlement of any Restricted Stock Unit Award by payment to the
Participant in cash of an amount equal to the Fair Market Value on the payment date of the Common Shares or other property otherwise
issuable to the Participant pursuant to this Section. Restricted Stock Units granted to a Participant who is a Canadian resident
must be settled in Common Shares no later than the end of the third year following the year in which the Participant rendered Service
resulting in the vesting of such Restricted Stock Units.

 

9.7   Nontransferability
of Restricted Stock Unit Awards.   The right to receive shares pursuant to a Restricted Stock Unit Award shall
not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment
by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution.
All rights with respect to a Restricted Stock Unit Award granted to a Participant hereunder shall be exercisable during his or
her lifetime only by such Participant or the Participant’s guardian or legal representative.

 

	10.	PERFORMANCE AWARDS.

 

Performance Awards shall be evidenced by
Award Agreements in such form as the Committee shall establish. Such Award Agreements may incorporate all or any of the terms of
the Plan by reference and shall comply with and be subject to the following terms and conditions:

 

10.1   Types
of Performance Awards Authorized.   Performance Awards may be granted in the form of either Performance Shares
or Performance Units. Each Award Agreement evidencing a Performance Award shall specify the number of Performance Shares or Performance
Units subject thereto, the Performance Award Formula, the Performance Goal(s) and Performance Period applicable to the Award, and
the other terms, conditions and restrictions of the Award.

 

10.2   Initial
Value of Performance Shares and Performance Units.   Unless otherwise provided by the Committee in granting
a Performance Award, each Performance Share shall have an initial monetary value equal to the Fair Market Value of one (1) Common
Share, subject to adjustment as provided in Section 4.4, on the effective date of grant of the Performance Share, and each
Performance Unit shall have an initial monetary value established by the Committee at the time of grant. The final value payable
to the Participant in settlement of a Performance Award determined on the basis of the applicable Performance Award Formula will
depend on the extent to which Performance Goals established by the Committee are attained within the applicable Performance Period
established by the Committee.

 

10.3   Establishment
of Performance Period, Performance Goals and Performance Award Formula.   In granting each Performance Award,
the Committee shall establish in writing the applicable Performance Period, Performance Award Formula and one or more Performance
Goals which, when measured at the end of the Performance Period, shall determine on the basis of the Performance Award Formula
the final value of the Performance Award to be paid to the Participant. The Company shall notify each Participant granted a Performance
Award of the terms of such Award, including the Performance Period, Performance Goal(s) and Performance Award Formula.

 

10.4   Measurement
of Performance Goals.   Performance Goals shall be established by the Committee on the basis of targets to be
attained (“Performance Targets”) with respect to one or more measures of business or financial performance
or other criteria established by the Committee (each, a “Performance Measure”), subject to the following:

 

(a)   Performance
Measures.   Performance Measures based on objective criteria shall be calculated in accordance with the
Company’s financial statements, or, if such measures are not reported in the Company’s financial statements, they shall
be calculated in accordance with generally accepted accounting principles, a method used generally in the Company’s industry,
or in accordance with a methodology established by the Committee prior to the grant of the Performance Award. Performance Measures
based on subjective criteria shall be determined on the basis established by the Committee in granting the Award. As specified
by the Committee, Performance Measures may be calculated with respect to the Company and each Subsidiary Corporation

 

    A-21

     

    

 

consolidated
therewith for financial reporting purposes, one or more Subsidiary Corporations or such division or other business unit of any
of them selected by the Committee. Unless otherwise determined by the Committee prior to the grant of the Performance Award, the
Performance Measures applicable to the Performance Award shall be calculated prior to the accrual of expense for any Performance
Award for the same Performance Period and excluding the effect (whether positive or negative) on the Performance Measures of any
change in accounting standards or any unusual or infrequently occurring event or transaction, as determined by the Committee, occurring
after the establishment of the Performance Goals applicable to the Performance Award. Each such adjustment, if any, shall be made
solely for the purpose of providing a consistent basis from period to period for the calculation of Performance Measures in order
to prevent the dilution or enlargement of the Participant’s rights with respect to a Performance Award. Performance Measures
may be based upon one or more of the following, without limitation, as determined by the Committee:

 

(i)   revenue;

 

(ii)   sales;

 

(iii)   expenses;

 

(iv)   operating
income;

 

(v)   gross
margin;

 

(vi)   operating
margin;

 

(vii)   earnings
before any one or more of: share-based compensation expense, interest, taxes, depreciation and amortization;

 

(viii)   cash
flow per debt adjusted share;

 

(ix)   pre-tax
profit;

 

(x)   net operating
income;

 

(xi)   net income;

 

(xii)   economic
value added;

 

(xiii)   free
cash flow;

 

(xiv)   operating
cash flow, including debt-adjusted cash flow;

 

(xv)   balance
of cash, cash equivalents and marketable securities;

 

(xvi)   share
price;

 

(xvii)   earnings
per share;

 

(xviii)   return
on shareholder equity;

 

(xix)   return
on capital;

 

(xx)   return
on assets;

 

(xxi)   return
on investment;

 

(xxii)   total
shareholder return;

 

(xxiii)   employee
satisfaction;

 

(xxiv)   employee
retention;

 

(xxv)   market
share;

 

    A-22

     

    

 

(xxvi)   customer
satisfaction;

 

(xxvii)   product
development;

 

(xxviii)   research
and development expenses;

 

(xxix)   completion
of an identified special project;

 

(xxx)   completion
of a joint venture or other corporate transaction; and

 

(xxxi)   personal
performance objectives established for an individual Participant or group of Participants.

 

(b)   Performance
Targets.   Performance Targets may include a minimum, maximum, target level and intermediate levels of performance,
with the final value of a Performance Award determined under the applicable Performance Award Formula by the Performance Target
level attained during the applicable Performance Period. A Performance Target may be stated as an absolute value, an increase or
decrease in a value, or as a value determined relative to an index, a group of comparator companies, a budget or another standard
selected by the Committee.

 

10.5   Settlement
of Performance Awards.

 

(a)   Determination
of Final Value.   As soon as practicable following the completion of the Performance Period applicable to
a Performance Award, the Committee shall determine the extent to which the applicable Performance Goals have been attained and
the resulting final value of the Award earned by the Participant and to be paid upon its settlement in accordance with the applicable
Performance Award Formula.

 

(b)   Discretionary
Adjustment of Award Formula.   In its discretion, the Committee may, either at the time it grants a Performance
Award or at any time thereafter, provide for the positive or negative adjustment of the Performance Award Formula applicable to
a Performance Award to reflect such Participant’s individual performance in his or her position with the Company or such
other factors as the Committee may determine.

 

(c)   Effect
of Leaves of Absence.   Unless otherwise required by law or a Participant’s Award Agreement, payment
of the final value, if any, of a Performance Award held by a Participant who has taken in excess of thirty (30) days in unpaid
leaves of absence during a Performance Period shall be prorated on the basis of the number of days of the Participant’s Service
during the Performance Period during which the Participant was not on an unpaid leave of absence.

 

(d)   Notice
to Participants.   As soon as practicable following the Committee’s determination in accordance with
Sections 10.5(a) and (b), the Company shall notify each Participant of the determination of the Committee.

 

(e)   Payment
in Settlement of Performance Awards.   As soon as practicable following the Committee’s determination
in accordance with Sections 10.5(a) and (b), but in any event within the Short-Term Deferral Period described in Section 15.1
(except as otherwise provided below or consistent with the requirements of Section 409A), payment shall be made to each eligible
Participant (or such Participant’s legal representative or other person who acquired the right to receive such payment by
reason of the Participant’s death) of the final value of the Participant’s Performance Award. Payment of such amount
shall be made in cash, Common Shares, or a combination thereof as determined by the Committee. Unless otherwise provided in the
Award Agreement evidencing a Performance Award, payment shall be made in a lump sum. If permitted by the Committee, the Participant
may elect, consistent with the requirements of Section 409A, to defer receipt of all or any portion of the payment to be made
to the Participant pursuant to this Section, and such deferred payment date(s) elected by the Participant shall be set forth in
the Award Agreement. If any payment is to be made on a deferred basis, the Committee may, but shall not be obligated to, provide
for the payment during the deferral period of Dividend Equivalent Rights or interest.

 

(f)   Provisions
Applicable to Payment in Shares.   If payment is to be made in Common Shares, the number of such shares
shall be determined by dividing the final value of the Performance

 

    A-23

     

    

 

Award by the Fair Market Value of a Common Share determined
by the method specified in the Award Agreement. Common Shares issued in payment of any Performance Award may be fully vested and
freely transferable shares or may be Common Shares subject to Vesting Conditions as provided in Section 8.5. Any shares subject
to Vesting Conditions shall be evidenced by an appropriate Award Agreement and shall be subject to the provisions of Sections 8.5
through 8.8 above.

 

10.6   Voting
Rights; Dividend Equivalent Rights and Distributions.   Participants shall have no voting rights with respect
to Common Shares represented by Performance Share Awards until the date of the issuance of such shares, if any (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). However, the Committee,
in its discretion, may provide in the Award Agreement evidencing any Performance Share Award that the Participant shall be entitled
to Dividend Equivalent Rights with respect to the payment of cash dividends on Common Shares during the period beginning on the
date the Award is granted and ending, with respect to each share subject to the Award, on the earlier of the date on which the
Performance Shares are settled or the date on which they are forfeited. Such Dividend Equivalent Rights, if any, shall be credited
to the Participant either in cash or in the form of additional whole Performance Shares as of the date of payment of such cash
dividends on Common Shares, as determined by the Committee. The number of additional Performance Shares (rounded to the nearest
whole number), if any, to be so credited shall be determined by dividing (a) the amount of cash dividends paid on the dividend
payment date with respect to the number of Common Shares represented by the Performance Shares previously credited to the Participant
by (b) the Fair Market Value per Common Share on such date. Dividend Equivalent Rights, if any, shall be accumulated and paid
to the extent that the related Performance Shares become nonforfeitable. Settlement of Dividend Equivalent Rights may be made in
cash, Common Shares, or a combination thereof as determined by the Committee, and may be paid on the same basis as settlement of
the related Performance Share as provided in Section 10.5. Dividend Equivalent Rights shall not be paid with respect to Performance
Units. In the event of a dividend or distribution paid in Common Shares or other property or any other adjustment made upon a change
in the capital structure of the Company as described in Section 4.4, appropriate adjustments shall be made in the Participant’s
Performance Share Award so that it represents the right to receive upon settlement any and all new, substituted or additional securities
or other property (other than regular, periodic cash dividends) to which the Participant would be entitled by reason of the Common
Shares issuable upon settlement of the Performance Share Award, and all such new, substituted or additional securities or other
property shall be immediately subject to the same Performance Goals as are applicable to the Award.

 

10.7   Effect
of Termination of Service.   Unless otherwise provided by the Committee and set forth in the Award Agreement
evidencing a Performance Award, the effect of a Participant’s termination of Service on the Performance Award shall be as
follows:

 

(a)   Death
or Disability.   If the Participant’s Service terminates because of the death or Disability of the
Participant before the completion of the Performance Period applicable to the Performance Award, the final value of the Participant’s
Performance Award shall be determined by the extent to which the applicable Performance Goals have been attained with respect to
the entire Performance Period and shall be prorated based on the number of months of the Participant’s Service during
the Performance Period. Payment shall be made following the end of the Performance Period in any manner permitted by Section 10.5.

 

(b)   Other
Termination of Service.   If the Participant’s Service terminates for any reason except death or Disability
before the completion of the Performance Period applicable to the Performance Award, such Award shall be forfeited in its entirety;
provided, however, that in the event of an involuntary termination of the Participant’s Service, the Committee, in its discretion,
may waive the automatic forfeiture of all or any portion of any such Award and determine the final value of the Performance Award
in the manner provided by Section 10.7(a). Payment of any amount pursuant to this Section shall be made following the end
of the Performance Period in any manner permitted by Section 10.5.

 

10.8   Nontransferability
of Performance Awards.   Prior to settlement in accordance with the provisions of the Plan, no Performance Award
shall be subject in any manner to anticipation, alienation,

 

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sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment
by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution.
All rights with respect to a Performance Award granted to a Participant hereunder shall be exercisable during his or her lifetime
only by such Participant or the Participant’s guardian or legal representative.

 

	11.	CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS.

 

Cash-Based Awards and Other Stock-Based Awards
shall be evidenced by Award Agreements in such form as the Committee shall establish. Such Award Agreements may incorporate all
or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:

 

11.1   Grant
of Cash-Based Awards.   Subject to the provisions of the Plan, the Committee, at any time and from time to time,
may grant Cash-Based Awards to Participants in such amounts and upon such terms and conditions, including the achievement of performance
criteria, as the Committee may determine.

 

11.2   Grant
of Other Stock-Based Awards.   The Committee may grant other types of equity-based or equity-related Awards
not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted securities, stock-equivalent units,
stock appreciation units, securities or debentures convertible into Common Shares or other forms determined by the Committee)
in such amounts and subject to such terms and conditions as the Committee shall determine. Other Stock-Based Awards may be made
available as a form of payment in the settlement of other Awards or as payment in lieu of compensation to which a Participant is
otherwise entitled. Other Stock-Based Awards may involve the transfer of actual Common Shares to Participants, or payment in cash
or otherwise of amounts based on the value of Common Shares and may include, without limitation, Awards designed to comply with
or take advantage of the applicable local laws of jurisdictions other than the United States.

 

11.3   Value
of Cash-Based and Other Stock-Based Awards.   Each Cash-Based Award shall specify a monetary payment amount
or payment range as determined by the Committee. Each Other Stock-Based Award shall be expressed in terms of Common Shares or units
based on such Common Shares, as determined by the Committee. The Committee may require the satisfaction of such Service requirements,
conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in Section 10.4,
as shall be established by the Committee and set forth in the Award Agreement evidencing such Award. If the Committee exercises
its discretion to establish performance criteria, the final value of Cash-Based Awards or Other Stock-Based Awards that will be
paid to the Participant will depend on the extent to which the performance criteria are met.

 

11.4   Payment
or Settlement of Cash-Based Awards and Other Stock-Based Awards.   Payment or settlement, if any, with respect
to a Cash-Based Award or an Other Stock-Based Award shall be made in accordance with the terms of the Award, in cash, Common Shares
or other securities or any combination thereof as the Committee determines. To the extent applicable, payment or settlement with
respect to each Cash-Based Award and Other Stock-Based Award shall be made in compliance with the requirements of Section 409A.

 

11.5   Voting
Rights; Dividend Equivalent Rights and Distributions.   Participants shall have no voting rights with respect
to Common Shares represented by Other Stock-Based Awards until the date of the issuance of such Common Shares (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), if any, in settlement
of such Award. However, the Committee, in its discretion, may provide in the Award Agreement evidencing any Other Stock-Based Award
that the Participant shall be entitled to Dividend Equivalent Rights with respect to the payment of cash dividends on Common Shares
during the period beginning on the date such Award is granted and ending, with respect to each share subject to the Award, on the
earlier of the date the Award is settled or the date on which it is terminated. Such Dividend Equivalent Rights, if any, shall
be paid in accordance with the provisions set forth in Section 9.4. Dividend Equivalent Rights shall not be granted with respect
to Cash-Based Awards. In the event of a dividend or distribution paid in Common Shares or other property or any other adjustment
made upon a change in the capital structure of the Company as described in Section 4.4, appropriate adjustments shall be made
in the

 

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Participant’s Other Stock-Based Award so that it represents the right to receive upon settlement any and all new,
substituted or additional securities or other property (other than regular, periodic cash dividends) to which the Participant would
be entitled by reason of the Common Shares issuable upon settlement of such Award, and all such new, substituted or additional
securities or other property shall be immediately subject to the same Vesting Conditions and performance criteria, if any, as are
applicable to the Award.

 

11.6   Effect
of Termination of Service.   Each Award Agreement evidencing a Cash-Based Award or Other Stock-Based Award shall
set forth the extent to which the Participant shall have the right to retain such Award following termination of the Participant’s
Service. Such provisions shall be determined in the discretion of the Committee, need not be uniform among all Cash-Based Awards
or Other Stock-Based Awards, and may reflect distinctions based on the reasons for termination, subject to the requirements of
Section 409A, if applicable.

 

11.7   Nontransferability
of Cash-Based Awards and Other Stock-Based Awards.   Prior to the payment or settlement of a Cash-Based Award
or Other Stock-Based Award, the Award shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer,
assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except
transfer by will or by the laws of descent and distribution. The Committee may impose such additional restrictions on any Common
Shares issued in settlement of Cash-Based Awards and Other Stock-Based Awards as it may deem advisable, including, without limitation,
minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any stock
exchange or market upon which such Common Shares are then listed and/or traded, or under any state securities laws or foreign law
applicable to such Common Shares.

 

	12.	STANDARD FORMS OF AWARD AGREEMENT.

 

12.1   Award
Agreements.   Each Award shall comply with and be subject to the terms and conditions set forth in the appropriate
form of Award Agreement approved by the Committee and as amended from time to time. No Award or purported Award shall be a valid
and binding obligation of the Company unless evidenced by a fully executed Award Agreement, which execution may be evidenced by
electronic means.

 

12.2   Authority
to Vary Terms.   The Committee shall have the authority from time to time to vary the terms of any standard
form of Award Agreement either in connection with the grant or amendment of an individual Award or in connection with the authorization
of a new standard form or forms; provided, however, that the terms and conditions of any such new, revised or amended standard
form or forms of Award Agreement are not inconsistent with the terms of the Plan.

 

	13.	CHANGE IN CONTROL.

 

13.1   Effect
of Change in Control on Awards.   In the event of a Change in Control, outstanding Awards shall be subject to
the definitive agreement entered into by the Company in connection with the Change in Control. Subject to the requirements and
limitations of Section 409A, if applicable, the Committee may provide for any one or more of the following:

 

(a)   Accelerated
Vesting.   In its discretion, the Committee may provide in the grant of any Award or at any other time may
take such action as it deems appropriate to provide for acceleration of the exercisability, vesting and/or settlement in connection
with a Change in Control of each or any outstanding Award or portion thereof and shares acquired pursuant thereto upon such conditions,
including termination of the Participant’s Service prior to, upon, or following the Change in Control, and to such extent
as the Committee determines.

 

(b)   Assumption,
Continuation or Substitution.   In the event of a Change in Control, the surviving, continuing, successor,
or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiror”),
may, without the consent of any Participant, assume or continue the Company’s rights and obligations under each or any Award
or portion thereof outstanding immediately prior to the Change in Control or substitute for each or any such outstanding Award
or portion thereof a substantially equivalent award with respect to the

 

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Acquiror’s stock, as applicable. For purposes of
this Section, if so determined by the Committee in its discretion, an Award denominated in Common Shares shall be deemed assumed
if, following the Change in Control, the Award confers the right to receive, subject to the terms and conditions of the Plan and
the applicable Award Agreement, for each Common Share subject to the Award immediately prior to the Change in Control, the consideration
(whether shares, cash, other securities or property or a combination thereof) to which a holder of a Common Share on the effective
date of the Change in Control was entitled (and if holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding Common Shares); provided, however, that if such consideration is not solely common
stock of the Acquiror, the Committee may, with the consent of the Acquiror, provide for the consideration to be received upon the
exercise or settlement of the Award, for each Common Share subject to the Award, to consist solely of common stock of the Acquiror
equal in Fair Market Value to the per share consideration received by holders of Common Shares pursuant to the Change in Control.
Any Award or portion thereof which is neither assumed or continued by the Acquiror in connection with the Change in Control nor
exercised or settled as of the time of consummation of the Change in Control shall terminate and cease to be outstanding effective
as of the time of consummation of the Change in Control.

 

(c)   Cash-Out
of Outstanding Stock-Based Awards.   The Committee may, in its discretion and without the consent of any
Participant, determine that, upon the occurrence of a Change in Control, each or any Award denominated in Common Shares or portion
thereof outstanding immediately prior to the Change in Control and not previously exercised or settled shall be canceled in exchange
for a payment with respect to each vested Common Share (and each unvested Common Share, if so determined by the Committee) subject
to such canceled Award in (i) cash, (ii) shares of the Company or of a corporation or other business entity that is a
party to the Change in Control, or (iii) other property which, in any such case, shall be in an amount having a Fair Market
Value equal to the Fair Market Value of the consideration to be paid per Common Share in the Change in Control, reduced (but not
below zero) by the exercise or purchase price per share, if any, under such Award. In the event such determination is made by the
Committee, an Award having an exercise or purchase price per share equal to or greater than the Fair Market Value of the consideration
to be paid per Common Share in the Change in Control may be canceled without payment of consideration to the holder thereof. Payment
pursuant to this Section (reduced by applicable withholding taxes, if any) shall be made to Participants in respect of the vested
portions of their canceled Awards as soon as practicable following the date of the Change in Control and in respect of the unvested
portions of their canceled Awards in accordance with the vesting schedules applicable to such Awards, , consistent with the requirements
of Section 409A, if applicable.

 

13.2   Effect of Change
in Control on Nonemployee Director Awards.   Subject to the requirements and limitations of Section 409A,
if applicable, including as provided by Section 15.4(f), in the event of a Change in Control, each outstanding Nonemployee
Director Award shall become immediately exercisable and vested in full and, except to the extent assumed, continued or substituted
for pursuant to Section 13.1(b), shall be settled effective immediately prior to the time of consummation of the Change in
Control.

 

13.3   Federal Excise Tax Under
Section 4999 of the Code.

 

(a)   Excess
Parachute Payment.   If any acceleration of vesting pursuant to an Award and any other payment or benefit
received or to be received by a Participant would subject the Participant to any excise tax pursuant to Section 4999 of the
Code due to the characterization of such acceleration of vesting, payment or benefit as an “excess parachute payment”
under Section 280G of the Code, then, provided such election would not subject the Participant to taxation under Section 409A,
the Participant may elect to reduce the amount of any acceleration of vesting called for under the Award in order to avoid such
characterization.

 

(b)   Determination
by Tax Firm.   To aid the Participant in making any election called for under Section 13.3(a), no later
than the date of the occurrence of any event that might reasonably be anticipated to result in an “excess parachute payment”
to the Participant as described in Section 13.3(a), the Company shall request a determination in writing by the professional
firm

 

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engaged by the Company for general tax purposes, or, if the tax firm so engaged by the Company is serving as accountant or
auditor for the Acquiror, the Company will appoint a nationally recognized tax firm to make the determinations required by this
Section (the “Tax Firm”). As soon as practicable thereafter, the Tax Firm shall determine and report
to the Company and the Participant the amount of such acceleration of vesting, payments and benefits which would produce the greatest
after-tax benefit to the Participant. For the purposes of such determination, the Tax Firm may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Company and the Participant shall furnish to the Tax
Firm such information and documents as the Tax Firm may reasonably request in order to make its required determination. The Company
shall bear all fees and expenses the Tax Firm charges in connection with its services contemplated by this Section.

 

	14.	COMPLIANCE WITH SECURITIES LAW.

 

The grant of Awards and the issuance of Common
Shares pursuant to any Award shall be subject to compliance with all applicable requirements of federal, provincial, state and
foreign law with respect to such securities and the requirements of any stock exchange or market system upon which the Common Shares
may then be listed. In addition, no Award may be exercised or shares issued pursuant to an Award unless (a) a registration
statement under the Securities Act shall at the time of such exercise or issuance be in effect with respect to the shares issuable
pursuant to the Award, or (b) in the opinion of legal counsel to the Company, the shares issuable pursuant to the Award may
be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. The
inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s
legal counsel to be necessary to the lawful issuance and sale of any shares under the Plan shall relieve the Company of any liability
in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a
condition to issuance of any Common Shares, the Company may require the Participant to satisfy any qualifications that may be necessary
or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect
thereto as may be requested by the Company.

 

	15.	COMPLIANCE WITH SECTION 409A.

 

15.1   Awards
Subject to Section 409A.   The Company intends that Awards granted pursuant to the Plan shall either be
exempt from or comply with Section 409A, and the Plan shall be so construed. The provisions of this Section 15 shall
apply to any Award or portion thereof that constitutes or provides for payment of Section 409A Deferred Compensation. Such
Awards may include, without limitation:

 

(a)   A Nonstatutory
Stock Option or SAR that includes any feature for the deferral of compensation other than the deferral of recognition of income
until the later of (i) the exercise or disposition of the Award or (ii) the time the shares acquired pursuant to the
exercise of the Award first becomes substantially vested.

 

(b)   Any Restricted
Stock Unit Award, Performance Award, Cash-Based Award or Other Stock-Based Award that either (i) provides by its terms for
settlement of all or any portion of the Award at a time or upon an event that will or may occur later than the end of the Short-Term
Deferral Period (as defined below) or (ii) permits the Participant granted the Award to elect one or more dates or events
upon which the Award will be settled after the end of the Short-Term Deferral Period.

 

Subject to the provisions
of Section 409A, the term “Short-Term Deferral Period” means the 21/2 month period ending on the
later of (i) the 15th day of the third month following the end of the Participant’s taxable year in which the right
to payment under the applicable portion of the Award is no longer subject to a substantial risk of forfeiture or (ii) the
15th day of the third month following the end of the Company’s taxable year in which the right to payment under the applicable
portion of the Award is no longer subject to a substantial risk of forfeiture. For this purpose, the term “substantial risk
of forfeiture” shall have the meaning provided by Section 409A.

 

15.2   Deferral
and/or Distribution Elections.   Except as otherwise permitted or required by Section 409A, the following
rules shall apply to any compensation deferral and/or payment elections

 

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(each, an “Election”) that may
be permitted or required by the Committee pursuant to an Award providing Section 409A Deferred Compensation:

 

(a)   Elections
must be in writing and specify the amount of the payment in settlement of an Award being deferred, as well as the time and form
of payment as permitted by this Plan.

 

(b)   Elections
shall be made by the end of the Participant’s taxable year prior to the year in which services commence for which an Award
may be granted to the Participant.

 

(c)   Elections
shall continue in effect until a written revocation or change in Election is received by the Company, except that a written revocation
or change in Election must be received by the Company prior to the last day for making the Election determined in accordance with
paragraph (b) above or as permitted by Section 15.3.

 

15.3   Subsequent
Elections.   Except as otherwise permitted or required by Section 409A, any Award providing Section 409A
Deferred Compensation which permits a subsequent Election to delay the payment or change the form of payment in settlement of such
Award shall comply with the following requirements:

 

(a)   No subsequent
Election may take effect until at least twelve (12) months after the date on which the subsequent Election is made.

 

(b)   Each subsequent
Election related to a payment in settlement of an Award not described in Section 15.4(a)(ii), 15.4(a)(iii) or 15.4(a)(vi)
must result in a delay of the payment for a period of not less than five (5) years from the date on which such payment would
otherwise have been made.

 

(c)   No subsequent
Election related to a payment pursuant to Section 15.4(a)(iv) shall be made less than twelve (12) months before the date on
which such payment would otherwise have been made.

 

(d)   Subsequent
Elections shall continue in effect until a written revocation or change in the subsequent Election is received by the Company,
except that a written revocation or change in a subsequent Election must be received by the Company prior to the last day for making
the subsequent Election determined in accordance the preceding paragraphs of this Section 15.3.

 

15.4   Payment
of Section 409A Deferred Compensation.

 

(a)   Permissible
Payments.   Except as otherwise permitted or required by Section 409A, an Award providing Section 409A
Deferred Compensation must provide for payment in settlement of the Award only upon one or more of the following:

 

(i)   The Participant’s
“separation from service” (as defined by Section 409A);

 

(ii)   The Participant’s
becoming “disabled” (as defined by Section 409A);

 

(iii)   The
Participant’s death;

 

(iv)   A time
or fixed schedule that is either (i) specified by the Committee upon the grant of an Award and set forth in the Award Agreement
evidencing such Award or (ii) specified by the Participant in an Election complying with the requirements of Section 15.2
or 15.3, as applicable;

 

(v)   A change
in the ownership or effective control or the Company or in the ownership of a substantial portion of the assets of the Company
determined in accordance with Section 409A; or

 

(vi)   The occurrence
of an “unforeseeable emergency” (as defined by Section 409A).

 

(b)   Installment
Payments.   It is the intent of this Plan that any right of a Participant to receive installment payments
(within the meaning of Section 409A) shall, for all purposes of Section 409A, be treated as a right to a series of separate
payments.

 

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(c)   Required
Delay in Payment to Specified Employee Pursuant to Separation from Service.   Notwithstanding any provision
of the Plan or an Award Agreement to the contrary, except as otherwise permitted by Section 409A, no payment pursuant to Section 15.4(a)(i)
in settlement of an Award providing for Section 409A Deferred Compensation may be made to a Participant who is a “specified
employee” (as defined by Section 409A) as of the date of the Participant’s separation from service before the
date (the “Delayed Payment Date”) that is six (6) months after the date of such Participant’s
separation from service, or, if earlier, the date of the Participant’s death. All such amounts that would, but for this paragraph,
become payable prior to the Delayed Payment Date shall be accumulated and paid on the Delayed Payment Date.

 

(d)   Payment
Upon Disability.   All distributions of Section 409A Deferred Compensation payable pursuant to Section 15.4(a)(ii)
by reason of a Participant becoming disabled shall be paid in a lump sum or in periodic installments as established by the Participant’s
Election. If the Participant has made no Election with respect to distributions of Section 409A Deferred Compensation upon
becoming disabled, all such distributions shall be paid in a lump sum upon the determination that the Participant has become disabled.

 

(e)   Payment
Upon Death.   If a Participant dies before complete distribution of amounts payable upon settlement of an
Award subject to Section 409A, such undistributed amounts shall be distributed to his or her beneficiary under the distribution
method for death established by the Participant’s Election upon receipt by the Committee of satisfactory notice and confirmation
of the Participant’s death. If the Participant has made no Election with respect to distributions of Section 409A Deferred
Compensation upon death, all such distributions shall be paid in a lump sum upon receipt by the Committee of satisfactory notice
and confirmation of the Participant’s death.

 

(f)   Payment
Upon Change in Control.   Notwithstanding any provision of the Plan or an Award Agreement to the contrary,
to the extent that any amount constituting Section 409A Deferred Compensation would become payable under this Plan by reason
of a Change in Control, such amount shall become payable only if the event constituting a Change in Control would also constitute
a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of
the Company within the meaning of Section 409A. Any Award which constitutes Section 409A Deferred Compensation and which
would vest and otherwise become payable upon a Change in Control as a result of the failure of the Acquiror to assume, continue
or substitute for such Award in accordance with Section 13.1(b) shall vest to the extent provided by such Award but shall
be converted automatically at the effective time of such Change in Control into a right to receive, in cash on the date or dates
such award would have been settled in accordance with its then existing settlement schedule (or as required by Section 15.4(c)),
an amount or amounts equal in the aggregate to the intrinsic value of the Award at the time of the Change in Control.

 

(g)   Payment
Upon Unforeseeable Emergency.   The Committee shall have the authority to provide in the Award Agreement
evidencing any Award providing for Section 409A Deferred Compensation for payment pursuant to Section 15.4(a)(vi) in
settlement of all or a portion of such Award in the event that a Participant establishes, to the satisfaction of the Committee,
the occurrence of an unforeseeable emergency. In such event, the amount(s) distributed with respect to such unforeseeable emergency
cannot exceed the amounts reasonably necessary to satisfy the emergency need plus amounts necessary to pay taxes reasonably anticipated
as a result of such distribution(s), after taking into account the extent to which such emergency need is or may be relieved through
reimbursement or compensation by insurance or otherwise, by liquidation of the Participant’s assets (to the extent the liquidation
of such assets would not itself cause severe financial hardship) or by cessation of deferrals under the Award. All distributions
with respect to an unforeseeable emergency shall be made in a lump sum upon the Committee’s determination that an unforeseeable
emergency has occurred. The Committee’s decision with respect to whether an unforeseeable emergency has occurred and the
manner in which, if at all, the payment in settlement of an Award shall be altered or modified, shall be final, conclusive, and
not subject to approval or appeal.

 

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(h)   Prohibition
of Acceleration of Payments.   Notwithstanding any provision of the Plan or an Award Agreement to the contrary,
this Plan does not permit the acceleration of the time or schedule of any payment under an Award providing Section 409A Deferred
Compensation, except as permitted by Section 409A.

 

(i)   No
Representation Regarding Section 409A Compliance.   Notwithstanding any other provision of the Plan,
the Company makes no representation that Awards shall be exempt from or comply with Section 409A. No Participating Company
shall be liable for any tax, penalty or interest imposed on a Participant by Section 409A.

 

	16.	TAX WITHHOLDING.

 

16.1   Tax
Withholding in General.   The Company shall have the right to deduct from any and all payments made under the
Plan, or to require the Participant, through payroll withholding, cash payment or otherwise, to make adequate provision for, the
federal, state, provincial, local and foreign taxes (including social insurance), if any, required by law to be withheld by any
Participating Company with respect to an Award or the shares acquired pursuant thereto. The Company shall have no obligation to
deliver Common Shares, to release Common Shares from an escrow established pursuant to an Award Agreement, or to make any payment
in cash under the Plan until the Participating Company Group’s tax withholding obligations have been satisfied by the Participant.

 

16.2   Withholding
in or Directed Sale of Shares.   The Company shall have the right, but not the obligation, to deduct from the
Common Shares issuable to a Participant upon the exercise or settlement of an Award, or to accept from the Participant the tender
of, a number of whole Common Shares having a Fair Market Value, as determined by the Company, equal to all or any part of the tax
withholding obligations of any Participating Company. The Fair Market Value of any Common Shares withheld or tendered to satisfy
any such tax withholding obligations shall not exceed the amount determined by the applicable minimum statutory withholding rates
(or the maximum individual statutory withholding rates for the applicable jurisdiction if use of such rates would not result in
adverse accounting consequences or cost). The Company may require a Participant to direct a broker, upon the vesting, exercise
or settlement of an Award, to sell a portion of the shares subject to the Award determined by the Company in its discretion to
be sufficient to cover the tax withholding obligations of any Participating Company and to remit an amount equal to such tax withholding
obligations to such Participating Company in cash.

 

	17.	AMENDMENT, SUSPENSION OR TERMINATION OF PLAN.

 

The Committee may amend, suspend or terminate
the Plan at any time. However, without the approval of the Company’s shareholders, there shall be (a) no increase in
the maximum aggregate number of Common Shares that may be issued under the Plan (except by operation of the provisions of Sections 4.2
and 4.3), (b) no change in the class of persons eligible to receive Incentive Stock Options, and (c) no other amendment
of the Plan that would require approval of the Company’s shareholders under any applicable law, regulation or rule, including
the rules of any stock exchange or quotation system upon which the Common Shares may then be listed or quoted. No amendment, suspension
or termination of the Plan shall affect any then outstanding Award unless expressly provided by the Committee. Except as provided
by the next sentence, no amendment, suspension or termination of the Plan may have a materially adverse effect on any then outstanding
Award without the consent of the Participant. Notwithstanding any other provision of the Plan or any Award Agreement to the contrary,
the Committee may, in its sole and absolute discretion and without the consent of any Participant, amend the Plan or any Award
Agreement, to take effect retroactively or otherwise, as it deems necessary or advisable for the purpose of conforming the Plan
or such Award Agreement to any present or future law, regulation or rule applicable to the Plan, including, but not limited to,
Section 409A.

 

	18.	MISCELLANEOUS PROVISIONS.

 

18.1   Repurchase
Rights.   Shares issued under the Plan may be subject to one or more repurchase options, or other conditions
and restrictions as determined by the Committee in its discretion at the time the Award is granted. The Company shall have the
right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons
as may be selected by the

 

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Company. Upon request by the Company, each Participant shall execute any agreement evidencing such transfer
restrictions prior to the receipt of Common Shares hereunder and shall promptly present to the Company any and all certificates
representing Common Shares acquired hereunder for the placement on such certificates of appropriate legends evidencing any such
transfer restrictions.

 

18.2   Forfeiture
Events.

 

(a)   The Committee
may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be
subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise
applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of
Service for Cause or any act by a Participant, whether before or after termination of Service, that would constitute Cause for
termination of Service, or any accounting restatement due to material noncompliance of the Company with any financial reporting
requirements of securities laws as a result of which, and to the extent that, such reduction, cancellation, forfeiture, or recoupment
is required by applicable securities laws. In addition, to the extent that claw-back or similar provisions applicable to Awards
are required by applicable law, listing standards and/or policies adopted by the Company, Awards granted under the Plan shall be
subject to such provisions.

 

(b)   If the
Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct,
with any financial reporting requirement under the securities laws, any Participant who knowingly or through gross negligence engaged
in the misconduct, or who knowingly or through gross negligence failed to prevent the misconduct, and any Participant who is one
of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, shall reimburse the
Company for (i) the amount of any payment in settlement of an Award received by such Participant during the twelve- (12-)
month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever
first occurred) of the financial document embodying such financial reporting requirement, and (ii) any profits realized by
such Participant from the sale of securities of the Company during such twelve- (12-) month period.

 

18.3   Provision
of Information.   Each Participant shall be given access to information concerning the Company equivalent to
that information generally made available to the Company’s common shareholders.

 

18.4   Rights
as Employee, Consultant or Director.   No person, even though eligible pursuant to Section 5, shall have
a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. Nothing in the Plan
or any Award granted under the Plan shall confer on any Participant a right to remain an Employee, Consultant or Director or interfere
with or limit in any way any right of a Participating Company to terminate the Participant’s Service at any time. To the
extent that an Employee of a Participating Company other than the Company receives an Award under the Plan, that Award shall in
no event be understood or interpreted to mean that the Company is the Employee’s employer or that the Employee has an employment
relationship with the Company.

 

18.5   Rights
as a Shareholder.   A Participant shall have no rights as a shareholder with respect to any shares covered by
an Award until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of
a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for
which the record date is prior to the date such shares are issued, except as provided in Section 4.4 or another provision
of the Plan.

 

18.6   Delivery
of Title to Shares.   Subject to any governing rules or regulations, the Company shall issue or cause to be
issued the Common Shares acquired pursuant to an Award and shall deliver such shares to or for the benefit of the Participant by
means of one or more of the following: (a) by delivering to the Participant evidence of book entry Common Shares credited
to the account of the Participant, (b) by depositing such Common Shares for the benefit of the Participant with any broker
with which the Participant has an account relationship, or (c) by delivering such Common Shares to the Participant in certificate
form.

 

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18.7   Fractional
Shares.   The Company shall not be required to issue fractional shares upon the exercise or settlement of any
Award.

 

18.8   Retirement
and Welfare Plans.   Neither Awards made under this Plan nor Common Shares or cash paid pursuant to such Awards
may be included as “compensation” for purposes of computing the benefits payable to any Participant under any Participating
Company’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides
that such compensation shall be taken into account in computing a Participant’s benefit. In addition, unless a written employment
agreement or other service agreement specifically references Awards, a general reference to “benefits” or a similar
term in such agreement shall not be deemed to refer to Awards granted hereunder.

 

18.9   Beneficiary
Designation.   Subject to local laws and procedures, each Participant may file with the Company a written designation
of a beneficiary who is to receive any benefit under the Plan to which the Participant is entitled in the event of such Participant’s
death before he or she receives any or all of such benefit. Each designation will revoke all prior designations by the same Participant,
shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company
during the Participant’s lifetime. If a married Participant designates a beneficiary other than the Participant’s spouse,
the effectiveness of such designation may be subject to the consent of the Participant’s spouse. If a Participant dies without
an effective designation of a beneficiary who is living at the time of the Participant’s death, the Company will pay any
remaining unpaid benefits to the Participant’s legal representative.

 

18.10   Severability.   If
any one or more of the provisions (or any part thereof) of this Plan shall be held invalid, illegal or unenforceable in any respect,
such provision shall be modified so as to make it valid, legal and enforceable, and the validity, legality and enforceability of
the remaining provisions (or any part thereof) of the Plan shall not in any way be affected or impaired thereby.

 

18.11   No
Constraint on Corporate Action.   Nothing in this Plan shall be construed to: (a) limit, impair, or otherwise
affect the Company’s or another Participating Company’s right or power to make adjustments, reclassifications, reorganizations,
or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any
part of its business or assets; or (b) limit the right or power of the Company or another Participating Company to take any
action which such entity deems to be necessary or appropriate.

 

18.12   Unfunded
Obligation.   Participants shall have the status of general unsecured creditors of the Company. Any amounts
payable to Participants pursuant to the Plan shall be considered unfunded and unsecured obligations for all purposes, including,
without limitation, Title I of the Employee Retirement Income Security Act of 1974. No Participating Company shall be required
to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such
obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which
the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust
or any Participant account shall not create or constitute a trust or fiduciary relationship between the Committee or any Participating
Company and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s
creditors in any assets of any Participating Company. The Participants shall have no claim against any Participating Company for
any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan.

 

18.13   Choice
of Law.   Except to the extent governed by applicable federal law, the validity, interpretation, construction
and performance of the Plan and each Award Agreement shall be governed by the laws of the State of Texas, without regard to its
conflict of law rules.

 

IN WITNESS WHEREOF, the undersigned
Chief Financial Officer of the Company certifies that the foregoing sets forth the Epsilon Energy Ltd. 2020 Equity Incentive Plan as duly adopted
by the Company’s shareholders effective as of the Effective Date.

 

	 	/s/
    B. Lane Bond
	 	B. Lane
    Bond
	 	Chief Financial Officer

 

    A-33

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