Document:

Exhibit 4.2
Description of Generations Bancorp NY, Inc. Common Stock
Unless otherwise indicated or the context otherwise requires, references in this Exhibit 4.2 to “we, “us” and “our” refer collectively to Generations Bancorp NY, Inc. and Generations Bank or to any of those entities, depending on the context.
General
Generations Bancorp NY, Inc. is authorized to issue 14,000,000 shares of common stock, par value of $0.01 per share, and 1,000,000 shares of preferred stock, par value $0.01 per share.  Each share of common stock has the same relative rights as, and is identical in all respects to, each other share of common stock.  All of our shares of common stock are duly authorized, fully paid and nonassessable.
Common Stock
Dividends. Generations Bancorp NY, Inc. can pay dividends on its common stock if, after giving effect to the distribution, it would be able to pay its indebtedness as the indebtedness comes due in the usual course of business and its total assets exceed the sum of its liabilities and the amount needed, if we were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of any holders of capital stock who have a preference in the event of dissolution.  The holders of common stock of Generations Bancorp NY, Inc. are entitled to receive and share equally in dividends as may be declared by our Board of Directors out of funds legally available therefor.  If we issue shares of preferred stock, the holders thereof may have a priority over the holders of the common stock with respect to dividends.
Voting Rights.  The holders of our common stock have exclusive voting rights in Generations Bancorp NY, Inc.  They elect our Board of Directors and act on other matters as are required to be presented to them under Maryland law or as are otherwise presented to them by the Board of Directors.  Generally, each holder of common stock is entitled to one vote per share and does not have any right to cumulate votes in the election of directors.  Any person who beneficially owns more than 10% of the outstanding shares of our common stock, however, is not be entitled or permitted to vote any shares of common stock held in excess of the 10% limit.  If we issues shares of preferred stock, holders of the preferred stock may also possess voting rights. Amendments to the articles of incorporation generally require a two-thirds vote, and certain amendments require an 80% stockholder vote.
Liquidation. In the event of any liquidation, dissolution or winding up of Generations Bank, Generations Bancorp NY, Inc., as the holder of 100% of Generations Bank’s capital stock, would be entitled to receive all assets of Generations Bank available for distribution, after payment or provision for payment of all debts and liabilities of Generations Bank, including all deposit accounts and accrued interest thereon, and after distribution of the balance in the liquidation account to “Eligible Account Holders” and “Supplemental Eligible Account Holders” (as defined in the Plan of Conversion of The Seneca Falls Savings Bank, MHC). In the event of liquidation, dissolution or winding up of Generations Bancorp NY, Inc., the holders of its common stock would be entitled to receive, after payment or provision for payment of all its debts and liabilities, all of the assets of Generations Bancorp NY, Inc. available for distribution.  If preferred stock is issued, the holders thereof may have a priority over the holders of the common stock in the event of liquidation or dissolution.
​

Preemptive Rights. Holders of our common stock are not entitled to preemptive rights with respect to any shares that may be issued, unless such preemptive rights are approved by the Board of Directors.  The common stock is not subject to redemption.
Preferred Stock
None of the shares of Generations Bancorp NY, Inc.’s authorized preferred stock are outstanding. Preferred stock may be issued with preferences and designations as our Board of Directors may from time to time determine. Our Board of Directors may, without stockholder approval, issue shares of preferred stock with voting, dividend, liquidation and conversion rights that could dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted change in control.
Generations Bancorp NY, Inc.’s Articles of Incorporation and Bylaws
Generations Bancorp NY, Inc.’s articles of incorporation and bylaws contain a number of provisions relating to corporate governance and rights of stockholders that might discourage future takeover attempts.  As a result, stockholders who might desire to participate in such transactions may not have an opportunity to do so. In addition, these provisions will also render the removal of the Board of Directors or management of Generations Bancorp NY, Inc. more difficult.
Directors. The Board of Directors is divided into three classes.  The members of each class are elected for a term of three years and only one class of directors is elected annually.  Thus, it would take at least two annual elections to replace a majority of our directors.  The bylaws establish qualifications for board members, including restrictions on affiliations with competitors of Generations Bank and prior legal or regulatory violations and a requirement that board members maintain residence within thirty (30) miles of an office of the Company or Generations Bank for a period of at least one year immediately before his or her nomination or appointment to the Board of Directors.  Further, the bylaws impose notice and information requirements in connection with the nomination by stockholders of candidates for election to the Board of Directors or the proposal by stockholders of business to be acted upon at an annual meeting of stockholders.  Such notice and information requirements are applicable to all stockholder business proposals and nominations, and are in addition to any requirements under the federal securities laws.
Evaluation of Offers.  The articles of incorporation of Generations Bancorp NY, Inc. provide that its Board of Directors, when evaluating a transaction that would or may involve a change in control of Generations Bancorp NY, Inc. (whether by purchases of its securities, merger, consolidation, share exchange, dissolution, liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may, in connection with the exercise of its business judgment in determining what is in the best interests of Generations Bancorp NY, Inc. and its stockholders and in making any recommendation to the stockholders, give due consideration to all relevant factors, including, but not limited to:
		·
	the economic effect, both immediate and long-term, upon Generations Bancorp NY, Inc.’s stockholders, including stockholders, if any, who do not participate in the transaction;

		·
	the social and economic effect on the present and future employees, creditors and customers of, and others dealing with, Generations Bancorp NY, Inc. and its subsidiaries and on the communities in which Generations Bancorp NY, Inc. and its subsidiaries operate or are located;

​

		·
	whether the proposal is acceptable based on the historical, current or projected future operating results or financial condition of Generations Bancorp NY, Inc.;

		·
	whether a more favorable price could be obtained for Generations Bancorp NY, Inc.’s stock or other securities in the future;

		·
	the reputation and business practices of the other entity to be involved in the transaction and its management and affiliates as they would affect the employees of Generations Bancorp NY, Inc. and its subsidiaries;

		·
	the future value of the stock or any other securities of Generations Bancorp NY, Inc. or the other entity to be involved in the proposed transaction;

		·
	any antitrust or other legal and regulatory issues that are raised by the proposal;

		·
	the business and historical, current or expected future financial condition or operating results of the other entity to be involved in the transaction, including, but not limited to, debt service and other existing financial obligations, financial obligations to be incurred in connection with the proposed transaction, and other likely financial obligations of the other entity to be involved in the proposed transaction; and

		·
	the ability of Generations Bancorp NY, Inc. to fulfill its objectives as a financial institution holding company and on the ability of its subsidiary financial institution(s) to fulfill the objectives of a federally insured financial institution under applicable statutes and regulations. the economic effect, both immediate and long-term, upon Generations Bancorp NY, Inc.’s stockholders, including stockholders, if any, who do not participate in the transaction;

If the Board of Directors determines that any proposed transaction should be rejected, it may take any lawful action to defeat such transaction.
Restrictions on Call of Special Meetings.  The bylaws provide that special meetings of stockholders can be called by only the President, the Chief Executive Officer, the Chairperson of the Board or by the Board of Directors, or the Secretary upon the written request of stockholders entitled to cast a majority of all votes entitled to vote at the meeting..
Prohibition of Cumulative Voting.  The articles of incorporation prohibit cumulative voting for the election of directors.
Limitation of Voting Rights.   The articles of incorporation provide that in no event will any person who beneficially owns more than 10% of the then-outstanding shares of common stock be entitled or permitted to vote any of the shares of common stock held in excess of the 10% limit; provided that such 10% limit shall not apply if a majority of the unaffiliated directors approve the acquisition of shares in excess of the 10% limit prior to such acquisition.
Restrictions on Removing Directors from Office.  The articles of incorporation provide that directors may be removed only for cause, and only by the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then-outstanding shares of capital stock of Generations Bancorp NY, Inc. entitled to vote generally in the election of directors (after giving effect to the limitation on voting rights discussed above in “ − Limitation of Voting Rights”), voting together as a single class.
​

Authorized but Unissued Shares.  Generations Bancorp NY, Inc. has authorized but unissued shares of common and preferred stock.  The articles of incorporation authorize 1,000,000 shares of serial preferred stock.  Generations Bancorp NY, Inc. is authorized to issue preferred stock from time to time in one or more series subject to applicable provisions of law, and the board of directors is authorized to fix the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications and terms and conditions of redemption of such shares.  In addition, the articles of incorporation provide that a majority of the whole board may, without action by the stockholders, amend the articles of incorporation to increase or decrease the aggregate number of shares of stock of any class or series that Generations Bancorp NY, Inc. has the authority to issue.  In the event of a proposed merger, tender offer or other attempt to gain control of Generations Bancorp NY, Inc. that the board of directors does not approve, it would be possible for the board of directors to authorize the issuance of a series of preferred stock with rights and preferences that would impede the completion of the transaction.  An effect of the possible issuance of preferred stock therefore may be to deter a future attempt to gain control of Generations Bancorp NY, Inc.
Amendments to Articles of Incorporation and Bylaws.  Except as provided under “ − Authorized but Unissued Shares,” above, regarding the amendment of the articles of incorporation by the Board of Directors to increase or decrease the number of shares authorized for issuance, or as otherwise allowed by law, any amendment to the articles of incorporation must be approved by our Board of Directors and also by two-thirds of the outstanding shares of our voting stock (or a majority of the outstanding shares of our voting stock if the amendment is approved by two-thirds of our board of directors); provided, however, that approval by at least 80% of the outstanding voting stock is generally required to amend the following provisions:
		(i)
	The limitation on voting rights of persons who directly or indirectly beneficially own more than 10% of the outstanding shares of common stock;

		(ii)
	The division of the board of directors into three staggered classes;

		(iii)
	The ability of the board of directors to fill vacancies on the board;

		(iv)
	The requirement that at least a majority of the voting power of the stockholders must vote to remove directors, and can only remove directors for cause;

		(v)
	The ability of the board of directors to amend and repeal the bylaws and the required stockholder vote to amend or repeal the bylaws;

		(vi)
	The ability of the board of directors to evaluate a variety of factors in evaluating offers to purchase or otherwise acquire Generations Bancorp NY, Inc.;

		(vii)
	The authority of the board of directors to provide for the issuance of preferred stock;

		(viii)
	The validity and effectiveness of any action lawfully authorized by the affirmative vote of the holders of a majority of the total number of outstanding shares of common stock;

		(ix)
	The number of stockholders constituting a quorum or required for stockholder consent;

		(x)
	The provision regarding stockholder proposals and nominations;

​

		(xi)
	The indemnification of current and former directors and officers, as well as employees and other agents, by Generations Bancorp NY, Inc.;

		(xii)
	The limitation of liability of officers and directors to Generations Bancorp NY, Inc. for money damages; and

		(xiii)
	The provision of the articles of incorporation requiring approval of at least 80% of the outstanding voting stock to amend the provisions of the articles of incorporation set forth in (i) through (xii) of this list and the provisions related to amendment of the articles of incorporation.

The articles of incorporation also provide that the bylaws may be amended by the affirmative vote of a majority of the total number of directors that Generations Bancorp NY, Inc. would have if there were no vacancies on the board of directors or by the stockholders by the affirmative vote of at least 80% of the votes entitled to be cast in the election of directors (after giving effect to the limitation on voting rights discussed above in “ – Limitation of Voting Rights”).
Maryland Corporate Law
Under Maryland law, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, statutory share exchange or, in circumstances specified in the statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications involving interested stockholders and their affiliates or issuance or reclassification of equity securities. Maryland law defines an interested stockholder as: (i) any person who beneficially owns 10% or more of the voting power of a corporation’s voting stock after the date on which Generations Bancorp NY, Inc. had 100 or more beneficial owners of its stock; or (ii) an affiliate or associate of Generations Bancorp NY, Inc. at any time after the date on which Generations Bancorp NY, Inc. had 100 or more beneficial owners of its stock who, within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then-outstanding voting stock of Generations Bancorp NY, Inc.. A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which the person otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board.
After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of Generations Bancorp NY, Inc. and approved by the affirmative vote of at least: (i) 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of Generations Bancorp NY, Inc. and (ii) two-thirds of the votes entitled to be cast by holders of voting stock of Generations Bancorp NY, Inc. other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. These super-majority vote requirements do not apply if Generations Bancorp NY, Inc.’s common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.
​

Change in Control Regulations
Under the Change in Bank Control Act, no person may acquire control of an insured savings association or its parent holding company unless the Federal Reserve Board has been given 60 days’ prior written notice and has not issued a notice disapproving the proposed acquisition.  The Federal Reserve Board takes into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition.  In addition, federal regulations provide that no company may acquire control of a savings association without the prior approval of the Federal Reserve Board.  Any company that acquires such control becomes a “savings and loan holding company” subject to registration, examination and regulation by the Federal Reserve Board.
Control, as defined under federal law, means ownership, control of or holding irrevocable proxies representing more than 25% of any class of voting stock, control in any manner of the election of a majority of the company’s directors, or a determination by the Federal Reserve Board that the acquirer has the power to direct, or directly or indirectly exercise a controlling influence over, the management or policies of the institution.  Acquisition of more than 10% of any class of a savings and loan holding company’s voting stock constitutes a rebuttable determination of control under the regulations under certain circumstances including where, as is the case with Generations Bancorp NY, Inc., the issuer has registered securities under Section 12 of the Securities Exchange Act of 1934.  Federal Reserve Board regulations provide that parties seeking to rebut control will be provided an opportunity to do so in writing.
Benefit Plans
In addition to the provisions of Generations Bancorp NY, Inc.’s articles of incorporation and bylaws described above, benefit plans of Generations Bancorp NY, Inc. and Generations Bank that may authorize the issuance of equity to its board of directors, officers and employees contain or may contain provisions which also may discourage hostile takeover attempts which the board of directors of Generations Bank might conclude are not in the best interests of Generations Bancorp NY, Inc. and Generations Bank or Generations Bancorp NY, Inc.’s stockholders.Exhibit 4.1

 

OEICP (2020 revised)

 

 

 

 

 

 

 

 

CALEDONIA MINING CORPORATION

 

 

2015 OMNIBUS EQUITY INCENTIVE COMPENSATION
PLAN

 

 

(as amended by the Compensation Committee
on 9 January 2020)

 

 

 

 

     

     

    

Table of
Contents

 

 

 

	 	 	Page
	ARTICLE 1 ESTABLISHMENT, PURPOSE AND DURATION	1
	1.1	Establishment of the Plan	1
	1.2	Purpose of the Plan	1
	1.3	Duration of the Plan	1
	1.4	Successor Plan	1
	ARTICLE 2 DEFINITIONS	1
	ARTICLE 3 ADMINISTRATION	7
	3.1	General	7
	3.2	Authority of the Committee	8
	3.3	Delegation	8
	ARTICLE 4 SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS	8
	4.1	Number of Shares Available for Awards	8
	4.2	Adjustments in Authorized Shares	8
	ARTICLE 5 ELIGIBILITY AND PARTICIPATION	9
	5.1	Eligibility	9
	5.2	Actual Participation	9
	ARTICLE 6 STOCK OPTIONS	10
	6.1	Grant of Options	10
	6.2	Award Agreement	10
	6.3	Option Price	10
	6.4	Duration of Options	10
	6.5	Exercise of Options	10
	6.6	Payment	10
	6.7	Restrictions on Share Transferability	11
	6.8	Death, Retirement and Termination of Employment	11
	6.9	Nontransferability of Options	12
	ARTICLE 7 SHARE APPRECIATION RIGHTS	12
	7.1	Grant of SARs	12
	7.2	SAR Agreement	13
	7.3	Term of SAR	13
	7.4	Exercise of Freestanding SARs	13
	7.5	Exercise of Tandem SARs	13
	7.6	Payment of SAR Amount	13
	7.7	Termination of Employment	13
	7.8	Nontransferability of SARs	14
	7.9	Other Restrictions	14
	ARTICLE 8 RESTRICTED SHARE AND RESTRICTED SHARE UNITS	14
	8.1	Grant of Restricted Shares or Restricted Share Units	14
	8.2	Restricted Share or Restricted Share Unit Agreement	14
	8.3	Nontransferability of Restricted Share and Restricted Share Units	14
	8.4	Other Restrictions	14
	8.5	Certificate Legend	15
	8.6	Voting Rights	15

 

     

     

    

	8.7	Dividends and Other Distributions	15
	8.8	Death, Retirement and other Termination of Employment	15
	8.9	Payment in Settlement of Restricted Share Units	18
	ARTICLE 9 DEFERRED SHARES UNITS	18
	9.1	Grant of Deferred Share Units	18
	9.2	Deferred Share Unit Agreement	18
	9.3	Nontransferability of Deferred Share Units	18
	9.4	Termination of Employment	18
	ARTICLE 10 PERFORMANCE SHARES AND PERFORMANCE UNITS	19
	10.1	Grant of Performance Shares and Performance Units	19
	10.2	Value of Performance Shares and Performance Units	19
	10.3	Earning of Performance Shares and Performance Units	19
	10.4	Form and Timing of Payment of Performance Shares and Performance Units	19
	10.5	Dividends and Other Distributions	19
	10.6	Death and other Termination of Employment.	19
	10.7	Nontransferability of Performance Shares and Performance Units	22
	ARTICLE 11 FULL VALUE SHARE-BASED AWARDS	22
	11.1	Share-Based Awards	22
	11.2	Termination of Employment	22
	11.3	Nontransferability of Share-Based Awards	23
	ARTICLE 12 BENEFICIARY DESIGNATION	23
	12.1	Beneficiary	23
	12.2	Discretion of the Committee	23
	ARTICLE 13 RIGHTS OF PERSONS ELIGIBLE TO PARTICIPATE	23
	13.1	Employment	23
	13.2	Participation	23
	13.3	Rights as a Shareholder	24
	ARTICLE 14 CHANGE OF CONTROL	24
	14.1	Accelerated Vesting and Payment	24
	14.2	Alternative Awards	24
	ARTICLE 15 AMENDMENT, MODIFICATION, SUSPENSION AND TERMINATION	25
	15.1	Amendment, Modification, Suspension and Termination	25
	15.2	Adjustment of Awards Upon the Occurrence of Unusual or Nonrecurring Events	26
	15.3	Awards Previously Granted	26
	ARTICLE 16 WITHHOLDING	26
	16.1	Withholding	26
	16.2	Acknowledgement	26
	ARTICLE 17 SUCCESSORS	26
	ARTICLE 18 GENERAL PROVISIONS	27
	18.1	Forfeiture Events	27
	18.2	Legend	27
	18.3	Delivery of Title	27
	18.4	Investment Representations	27
	18.5	Uncertificated Shares	27
	18.6	Unfunded Plan	27
	18.7	No Fractional Shares	28

 

     

     

    
	18.8	Other Compensation and Benefit Plans	28
	18.9	No Constraint on Corporate Action	28
	18.10	Compliance with Canadian Securities Laws	28
	ARTICLE 19 LEGAL CONSTRUCTION	28
	19.1	Gender and Number	28
	19.2	Severability	28
	19.3	Requirements of Law	28
	19.4	Governing Law	29
	19.5	Compliance with Section 409A of the Code	29

 

 

 

 

 

 

     

     

    

CALEDONIA
MINING CORPORATION

 

2015 OMNIBUS EQUITY INCENTIVE COMPENSATION PLAN

 

ARTICLE
1

ESTABLISHMENT, PURPOSE AND DURATION

 

		1.1	Establishment
                                         of the Plan. Caledonia Mining Corporation, a Canadian federal corporation (the “Company”),
                                         hereby establishes an incentive compensation plan to be known as the 2015 Omnibus Equity
                                         Incentive Compensation Plan (the “Plan”). The Plan permits the grant
                                         of Stock Options, Share Appreciation Rights, Restricted Shares, Restricted Share Units,
                                         Deferred Stock Units, Performance Shares, Performance Units and Share-Based Awards. The
                                         Plan shall be adopted and become effective on the date approved by the Board (the “Effective
                                         Date”), provided that no Awards may be exercised, paid or settled until the
                                         Plan has been approved by the shareholders of the Company and the Toronto Stock Exchange.

 

		1.2	Purpose
                                         of the Plan. The purposes of the Plan are: (i) to promote a significant alignment
                                         between officers and employees of the Company and its Affiliates (as defined below) and
                                         the growth objectives of the Company; (ii) to associate a portion of participating
                                         employees’ compensation with the performance of the Company over the long term;
                                         and (iii) to attract, motivate and retain the critical employees to drive the business
                                         success of the Company.

 

		1.3	Duration
                                         of the Plan. The Plan shall commence as of the Effective Date, as described in Section 1.1
                                         herein, and shall remain in effect until terminated by the Board (as defined below) pursuant
                                         to 0 hereof.

 

		1.4	Successor
                                         Plan. This Plan shall in respect of Options (as defined below) serve as the successor
                                         to the Company’s current Incentive Stock Option Plan dated April 10, 2007 (the
                                         “Predecessor Plan”), and no further awards shall be made under the
                                         Predecessor Plan from and after the Effective Date of this Plan. Each Option granted
                                         under the Predecessor Plan shall continue to be governed solely by the terms and conditions
                                         of the instrument evidencing such grant.

 

ARTICLE
2

DEFINITIONS

 

Whenever used in the
Plan, the following terms shall have the respective meanings set forth below, unless the context clearly requires otherwise, and
when such meaning is intended, such term shall be capitalized.

 

“Affiliate” means any corporation, partnership
or other entity (i) in which the Company, directly or indirectly, has majority ownership interest or (ii) which the Company
controls. For the purposes of this definition, the Company is deemed to “control” such corporation, partnership
or other entity if the Company possesses, directly or indirectly, the power to direct or cause the direction of the management
and policies of such corporation, partnership or other entity, whether through the ownership of voting securities, by contract
or otherwise, and includes a corporation which is considered to be a subsidiary for purposes of consolidation under International
Financial Reporting Standards.

 

“Award” means, individually or collectively,
a grant under this Plan of Options, SARs, Restricted Shares, Restricted Share Units, Performance Shares, Performance Units or Share-Based
Awards, in each case subject to the terms of this Plan.

    	 	1	 

     

    

“Award Agreement” means either (i) a
written agreement entered into by the Company or an Affiliate of the Company and a Participant setting forth the terms and provisions
applicable to Awards granted under this Plan; or (ii) a written statement issued by the Company or an Affiliate of the Company
to a Participant describing the terms and provisions of such Award. All Award Agreements shall be deemed to incorporate the provisions
of the Plan. An Award Agreement need not be identical to other Award Agreements either in form or substance.

 

“Beneficial Ownership” shall have the meaning
ascribed to such term in Section 90 of the OSA.

 

“Blackout Period” means a period of time
during which the Participant cannot sell Shares, due to applicable law or policies of the Company in respect of insider trading.

 

“Board” or “Board of Directors”
means the Board of Directors of the Company.

 

“Cause” means any of:

 

		(a)	dishonesty of the Participant as it relates to the performance
of his duties in the course of his employment by, or as an officer or director of, the Company or an Affiliate;

 

		(b)	fraud committed by the Participant;

 

		(c)	willful disclosure of confidential or private information regarding
the Company or an Affiliate by the Participant; 

 

		(d)	the Participant aiding a competitor of the Company or an Affiliate;

 

		(e)	misappropriation of a business opportunity of the Company or
an Affiliate by the Participant;

 

		(f)	willful misconduct or gross negligence in the performance of
the Participant’s duties under his or her employment agreement;

 

		(g)	a breach by the Participant of a material provision of his or
her employment agreement or the Code of Business Conduct and Ethics adopted by the Company from time to time;

 

		(h)	the willful and continued failure on the part of the Participant
to substantially perform duties in the course of his employment by, or as an officer of, the Company or an Affiliate, unless such
failure results from an incapacity due to mental or physical illness;

 

		(i)	willfully engaging in conduct that is demonstrably and materially
injurious to the Company or an Affiliate, monetarily or otherwise; or

 

		(j)	any other act or omission by the Participant which would amount
to just cause for termination at common law.

 

“Change of Control” shall occur if any of
the following events occur:

 

    	 	2	 

     

    

		(a)	the acquisition, directly or indirectly and by any means whatsoever,
by any person, or by a group of persons acting jointly or in concert, of beneficial ownership or control or direction over that
number of Voting Securities which is greater than 50% of the total issued and outstanding Voting Securities immediately after such
acquisition, unless such acquisition arose as a result of or pursuant to:

 

		(i)	an acquisition or redemption by the Company of Voting Securities
which, by reducing the number of Voting Securities outstanding, increases the proportionate number of Voting Securities beneficially
owned by such person to 50% or more of the Voting Securities then outstanding; 

 

		(ii)	acquisitions of Voting Securities which were made pursuant to
a dividend reinvestment plan of the Company; 

 

		(iii)	the receipt or exercise of rights issued by the Company to all
the holders of Voting Securities to subscribe for or purchase Voting Securities or securities convertible into Voting Securities,
provided that such rights are acquired directly from the Company and not from any other person; 

 

		(iv)	a distribution by the Company of Voting Securities or securities
convertible into Voting Securities for cash consideration made pursuant to a public offering or by way of a private placement by
the Company ("Exempt Acquisitions"); 

 

		(v)	a stock-dividend, a stock split or other event pursuant to which
such person receives or acquires Voting Securities or securities convertible into Voting Securities on the same pro rata
basis as all other holders of securities of the same class ("Pro-Rata Acquisitions"); or 

 

		(vi)	the exercise of securities convertible into Voting Securities
received by such person pursuant to an Exempt Acquisition or a Pro-Rata Acquisition ("Convertible Security Acquisitions");

 

provided,
however, that if a person shall acquire 50% or more of the total issued and outstanding Voting Securities by reason of any one
or a combination of (1) acquisitions or redemptions of Voting Shares by the Company, (2) Exempt Acquisitions, (3) Pro-Rata
Acquisitions, or (4) Convertible Security Acquisitions and, after such share acquisitions or redemptions by the Company or
Exempt Acquisitions or Pro-Rata Acquisitions or Convertible Security Acquisitions, acquires additional Voting Securities exceeding
one per cent of the Voting Securities outstanding at the date of such acquisition other than pursuant to any one or a combination
of Exempt Acquisitions, Convertible Security Acquisitions or Pro-Rata Acquisitions, then as of the date of such acquisitions such
acquisition shall be deemed to be a "Change of Control";

 

		(b)	The replacement by way of election or appointment at any time
of one-half or more of the total number of the then incumbent members of the Board of Directors, unless such election or appointment
is approved by 50% or more of the Board of Directors in office immediately preceding such election or appointment in circumstances
where such election or appointment is to be made other than as a result of a dissident public proxy solicitation, whether actual
or threatened; and 

 

    	 	3	 

     

    

		(c)	any transaction or series of transactions, whether by way of
reorganization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise, whereby all or substantially all
of the shares or assets of the Company become the property of any other person (the “Successor Entity”),
(other than a subsidiary of the Company) unless:

 

		(i)	individuals who were holders of Voting Securities immediately
prior to such transaction hold, as a result of such transaction, in the aggregate, more than 50% of the voting securities of the
Successor Entity; 

 

		(ii)	a majority of the members of the board of directors of the Successor
Entity is comprised of individuals who were members of the Board of Directors immediately prior to such transaction; and 

 

		(iii)	after such transaction, no person or group of persons acting
jointly or in concert, holds more than 50% of the voting securities of the Successor Entity unless such person or group of persons
held securities of the Company in the same proportion prior to such transaction.

 

“Change of Control Price” means (i) the
highest price per Share offered in conjunction with any transaction resulting in a Change of Control (as determined in good faith
by the Committee if any part of the offered price is payable other than in cash), or (ii) in the case of a Change of Control
occurring solely by reason of a change in the composition of the Board, the highest Fair Market Value of the Shares on any of the
thirty (30) trading days immediately preceding the date on which a Change of Control occurs, except if the relevant participant
is subject to taxation under the ITA such Change of Control price shall be deemed to be a price determined by the Committee based
on the closing price of a Share on the TSX on the trading day preceding the Change of Control date or based on the volume weighted
average trading price of the Shares on the TSX for the five trading days immediately preceding the Change of Control date.

 

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

 

“Committee” means the Board of Directors
or if so delegated in whole or in part by the Board, the Compensation Committee of the Board of Directors, or any other duly authorized
committee of the Board appointed by the Board to administer the Plan or.

 

“Company” means Caledonia Mining Corporation,
a Canadian federal corporation, and any successor thereto as provided in 0 herein.

 

“Consultant” means a Person that:

 

		(i)	is engaged to provide services to the Company or an Affiliate
other than services
provided in relation to a distribution of securities of the Company or an Affiliate;

 

		(ii)	provides the services under a written contract with the Company
or an Affiliate; and

 

    	 	4	 

     

    

		(iii)	spends or will spend a significant amount of time and attention
on the affairs and
business of the Company or an Affiliate;

 

provided that
with respect to Consultants who are U.S. Persons, such Consultants shall be granted Awards under this Plan only if:

 

		(i)	they are natural persons;

 

		(ii)	they provide bona fide services to the Company or its
                                                                                                         majority-owned subsidiaries;
and

 

		(iii)	such services are not in connection with the offer or sale of
securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

“Deferred Share Unit” means an Award denominated
in units that provides the holder thereof with a right to receive Shares or cash or a combination thereof upon settlement of the
Award, granted under 0 herein and subject to the terms of this Plan.

 

“Director” means any individual who is a
member of the Board of Directors of the Company.

 

“Disability” means the Participant’s
inability to substantially fulfil his or her duties on behalf of the Company or an Affiliate for a continuous period of six (6)
months or more or the Participant’s inability to substantially fulfil his or her duties on behalf of the Company or an Affiliate
for an aggregate period of six (6) months or more during any consecutive twelve (12) month period; and if there is any
disagreement between the Company or an Affiliate and the Participant as to the Participant’s Disability or as to the date
any such Disability began or ended, the same shall be determined by a physician mutually acceptable to the Company and the Participant
whose determination shall be conclusive evidence of any such Disability and of the date any such Disability began or ended.

 

“Dividend Equivalent” means a right with
respect to an Award to receive cash, Shares or other property equal in value and form to dividends declared by the Board and paid
with respect to outstanding Shares. Dividend Equivalents shall not apply to an Award unless specifically provided for in the Award
Agreement, and if specifically provided for in the Award Agreement shall be subject to such terms and conditions set forth in the
Award Agreement as the Committee shall determine.

 

“Employee” means any employee of the Company
or an Affiliate. Directors who are not otherwise employed by the Company or an Affiliate shall not be considered Employees under
this Plan.

 

“Fair Market Value” or “FMV”
means, unless otherwise required by any applicable provision of the Code or any regulations thereunder or by any applicable accounting
standard for the Company’s desired accounting for Awards or by the rules of the TSX, a price that is determined by the Committee,
provided that such price cannot be less than the greater of (i) the volume weighted average trading price of the Shares for
the five trading days immediately prior to the grant date or (ii) the closing price of the Shares on the trading day immediately
prior to the grant date in each case as quoted on either the TSX, NYSE American or AIM as specified in the applicable Award Agreement.

 

    	 	5	 

     

    

“Fiscal Year” means the Company’s fiscal
year commencing on January 1 and ending on December 31 or such other fiscal year as approved by the Board.

 

“Freestanding SAR” means a SAR that is not
a Tandem SAR, as described in 0 herein.

 

“Grant Price” means the price against which
the amount payable is determined upon exercise of a SAR.

 

“Insider” shall have the meaning ascribed
thereto in Section 1(1) of the OSA.

 

“ITA” means the Income Tax Act (Canada).

 

“Non-Employee Director” means a Director
who is not an Employee.

 

“Notice Period” means any period of contractual
notice or reasonable notice that the Company or the Affiliate may be required at law, by contract or otherwise agrees to provide
to a Participant upon termination of employment, whether or not the Company or Affiliate elects to pay severance in lieu
of providing notice to the Participant, provided that where a Participant’s employment contract provides for an increased
severance or termination payment in the event of termination following a Change of Control, the Notice Period for the purposes
of the Plan shall be the Notice Period under such contract applicable to a termination which does not follow a Change of Control.

 

“Option” means the conditional right to purchase
Shares at a stated Option Price for a specified period of time subject to the terms of this Plan.

 

“Option Price” means the price at which a
Share may be purchased by a Participant pursuant to an Option, as determined by the Committee.

 

“OSA” means the Securities Act (Ontario),
as may be amended from time to time.

“Participant” means an Employee, Non-Employee
Director or Consultant who has been selected to receive an Award, or who has an outstanding Award granted under the Plan.

 

“Performance-Based Compensation” means compensation
under an Award that is granted in order to provide remuneration solely on account of the attainment of one or more Performance
Goals under circumstances that satisfy the requirements of Section 162(m) of the Code.

 

“Performance Goal” means a performance criterion
selected by the Committee for a given Award.

 

“Performance Period” means the period of
time during which the assigned performance criteria must be met in order to determine the degree of payout and/or vesting with
respect to an Award.

 

“Performance Share” means an Award granted
under 0 herein and subject to the terms of this Plan, denominated in Shares, the value of which at the time it is payable is determined
as a function of the extent to which corresponding performance criteria have been achieved.

 

“Performance Unit” means an Award granted
under 0 herein and subject to the terms of this Plan, denominated in units, the value of which at the time it is payable is determined
as a function of the extent to which corresponding performance criteria have been achieved.

 

“Period of Restriction” means the period
when an Award of Restricted Share or Restricted Share Units is subject to forfeiture based on the passage of time, the achievement
of performance criteria, and/or upon the occurrence of other events as determined by the Committee, in its discretion.

    	 	6	 

     

    

“Person” shall have the meaning ascribed
to such term in Section 1(1) of the OSA.

 

“Restricted Share” means an Award of Shares
subject to a Period of Restriction, granted under 0 herein and subject to the terms of this Plan.

 

“Restricted Share Unit” means an Award denominated
in units subject to a Period of Restriction, with a right to receive Shares or cash or a combination thereof upon settlement of
the Award, granted under 0 herein and subject to the terms of this Plan.

 

“Retirement” or “Retire”
means a Participant’s permanent withdrawal from employment or office with the Company or Affiliate on terms and conditions
accepted and determined by the Board.

 

“Shares” means common shares of the Company.

 

“Share Appreciation Right” or “SAR”
means the conditional right to receive the difference between the FMV of a Share on the date of exercise over the Grant Price,
pursuant to the terms of 0 herein and subject to the terms of this Plan.

 

“Share-Based Award” means an equity-based
or equity-related Award granted under 0 herein and subject to the terms of this Plan, and not otherwise described by the terms
of this Plan.

 

“Successor Entity” has the meaning ascribed
thereto under subsection (c) of the definition of Change of Control.

 

“Tandem SAR” means a SAR that the Committee
specifies is granted in connection with a related Option pursuant to 0 herein and subject to the terms of this Plan, the exercise
of which shall require forfeiture of the right to purchase a Share under the related Option (and when a Share is purchased under
the Option, the Tandem SAR shall similarly be cancelled) or a SAR that is granted in tandem with an Option but the exercise of
such Option does not cancel the SAR, but rather results in the exercise of the related SAR. Regardless of whether an Option is
granted coincident with a SAR, a SAR is not a Tandem SAR unless so specified by the Committee at the time of grant.

 

“Total Share Authorization” has the meaning
ascribed thereto under Section 4.1.

 

“TSX” means the Toronto Stock Exchange and
at any time the Shares are not listed and posted for trading on the TSX, shall be deemed to mean such other stock exchange or trading
platform upon which the Shares trade and which has been designated by the Committee.

 

“Voting Power” shall mean such number of
Voting Securities as shall enable the holders thereof to cast all the votes which could be cast in an annual election of directors
of a company.

 

“Voting Securities” shall mean any securities
of the Company ordinarily carrying the right to vote at elections of directors and any securities immediately convertible into
or exchangeable for such securities.

 

ARTICLE 3

ADMINISTRATION

 

		3.1	General.
                                         The Committee shall be responsible for administering the Plan. The Committee may employ
                                         attorneys, consultants, accountants, agents and other individuals, any of whom may be
                                         an Employee, and the Committee, the Company, and its officers and Directors shall be
                                         entitled to rely upon the advice, opinions or valuations of any such persons. All actions
                                         taken and all interpretations and determinations made by the Committee shall be final,
                                         conclusive and binding upon the Participants, the Company, and all other interested parties.

    	 	7	 

     

    

		3.2	Authority
                                         of the Committee. The Committee shall have full and exclusive discretionary power
                                         to interpret the terms and the intent of the Plan and any Award Agreement or other agreement
                                         ancillary to or in connection with the Plan, to determine eligibility for Awards, and
                                         to adopt such rules, regulations and guidelines for administering the Plan as the Committee
                                         may deem necessary or proper. Such authority shall include, but not be limited to, selecting
                                         Award recipients, establishing all Award terms and conditions, including grant, exercise
                                         price, issue price and vesting terms, determining Performance Goals applicable to Awards
                                         and whether such Performance Goals have been achieved, and, subject to 0, adopting modifications
                                         and amendments, or subplans to the Plan or any Award Agreement, including, without limitation,
                                         any that are necessary or appropriate to comply with the laws or compensation practices
                                         of the jurisdictions in which the Company and Affiliates operate.

 

		3.3	Delegation.
                                         The Committee may delegate to one or more of its members any of the Committee’s
                                         administrative duties or powers as it may deem advisable; provided, however, that any
                                         such delegation must be permitted under applicable corporate law.

 

ARTICLE 4

SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS

 

		4.1	Number
                                         of Shares Available for Awards. Subject to adjustment as provided in Section 4.2
                                         herein, the number of Shares hereby reserved for issuance to Participants under the Plan,
                                         together with Shares reserved for issue under any other share compensation arrangements
                                         of the Company, shall not exceed the number which represents 10% of the issued and outstanding
                                         Shares from time to time (the “Total Share Authorization”). Subject
                                         to applicable law, the requirements of the TSX and any shareholder or other approval
                                         which may be required, the Board may in its discretion amend the Plan to increase such
                                         limit without notice to any Participants.

 

The number of Shares
reserved for issue to Insiders pursuant to this Plan, together with Shares reserved for issue to Insiders under any other share
compensation arrangements of the Company, shall not exceed 10% of the aggregate outstanding Shares of the Company. Within any one-year
period, the number of Shares issued to Insiders pursuant to this Plan and all other share compensation arrangements of the Company
shall not exceed 10% of the aggregate outstanding Shares of the Company. If the number of Shares shall be increased or decreased
as a result of a stock split, consolidation reclassification or recapitalization and not as a result of the issuance of Shares
for additional consideration or by way of a stock dividend in the ordinary course, the Company may make appropriate adjustments
to the maximum number of Shares which may be issued from the treasury of the Company under the Plan.

 

This Plan is an “evergreen”
plan whereby the number of Shares equivalent to the number of Awards and securities of any other share compensation arrangements
that have been issued, exercised, terminated, cancelled, redeemed, repurchased or expired, at any time, are immediately re-reserved
for issuance under the Plan and available for future issuances subject to the limits contained herein.

 

		4.2	Adjustments
                                         in Authorized Shares. In the event of any corporate event or transaction (collectively,
                                         a “Corporate Reorganization”) (including, but not limited to, a change
                                         in the Shares of the Company or the capitalization of the Company) such as a merger,
                                         arrangement, amalgamation, consolidation, reorganization, recapitalization, separation,
                                         stock dividend, extraordinary dividend, stock split, reverse stock split, split up, spin-off
                                         or other distribution of stock or property of the Company, combination of securities,
                                         exchange of securities, dividend in kind, or other like change in capital structure or
                                         distribution (other than normal cash dividends) to shareholders of the Company, or any
                                         similar corporate event or transaction, the Committee shall make or provide for such
                                         adjustments or substitutions, as applicable, in the number and kind of Shares that may
                                         be issued under the Plan, the number and kind of Shares subject to outstanding Awards,
                                         the Option Price or Grant Price applicable to outstanding Awards, the Total Share Authorization,
                                         the limit on issuing Awards other than Options granted with an Option Price equal to
                                         at least the FMV of a Share on the date of grant or Share Appreciation Rights with a
                                         Grant Price equal to at least the FMV of a Share on the date of grant, and any other
                                         value determinations applicable to outstanding Awards or to this Plan, as are equitably
                                         necessary to prevent dilution or enlargement of Participants’ rights under the
                                         Plan that otherwise would result from such corporate event or transaction. In connection
                                         with a Corporate Reorganization, the Committee shall have the discretion to permit a
                                         holder of Options to purchase (at the times, for the consideration, and subject to the
                                         terms and conditions set out in this Plan) and the holder will then accept on the exercise
                                         of such Option, in lieu of the Shares that such holder would otherwise have been
                                         entitled to purchase, the kind and amount of shares or other securities or property that
                                         such holder would have been entitled to receive as a result of the Corporate Reorganization
                                         if, on the effective date thereof, that holder had owned all Shares that were subject
                                         to the Option. Such adjustments shall be made automatically, without the necessity of
                                         Committee action, on the customary arithmetical basis in the case of any stock split,
                                         including a stock split effected by means of a stock dividend, and in the case of any
                                         other dividend paid in Shares.

    	 	8	 

     

    

The Committee shall
also make appropriate adjustments in the terms of any Awards under the Plan as are equitably necessary to reflect such corporate
event or transaction and may modify any other terms of outstanding Awards, including modifications of performance criteria and
changes in the length of Performance Periods. The determination of the Committee as to the foregoing adjustments, if any, shall
be conclusive and binding on Participants under the Plan, provided that any such adjustments must comply with Section 409A of the
Code with respect to any U.S. Participants.

 

Subject to the provisions
of 0 and any applicable law or regulatory requirement, without affecting the number of Shares reserved or available hereunder,
the Committee may authorize the issuance, assumption, substitution or conversion of Awards under this Plan in connection with any
such corporate event or transaction, upon such terms and conditions as it may deem appropriate. Additionally, the Committee may
amend the Plan, or adopt supplements to the Plan, in such manner as it deems appropriate to provide for such issuance, assumption,
substitution or conversion as provided in the previous sentence.

 

ARTICLE 5

ELIGIBILITY AND PARTICIPATION

 

		5.1	Eligibility.
                                         Individuals eligible to participate in the Plan include all Employees, Non-Employee Directors
                                         and Consultants.

 

		5.2	Actual
                                         Participation. Subject to the provisions of the Plan, the Committee may, from time
                                         to time, in its sole discretion select from among eligible Employees, Non-Employee Directors
                                         and Consultants, those to whom Awards shall be granted under the Plan, and shall determine
                                         in its discretion the nature, terms, conditions and amount of each Award.

 

    	 	9	 

     

    

ARTICLE 6

STOCK OPTIONS

 

		6.1	Grant of Options. Subject to the terms and provisions of the
Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall
be determined by the Committee in its discretion.

 

		6.2	Award
                                         Agreement. Each Option grant shall be evidenced by an Award Agreement that shall
                                         specify the Option Price, the duration of the Option, the number of Shares to which the
                                         Option pertains, the conditions upon which an Option shall become vested and exercisable,
                                         and any such other provisions as the Committee shall determine.

 

		6.3	Option
                                         Price. The Option Price for each grant of an Option under this Plan shall be determined
                                         by the Committee and shall be specified in the Award Agreement. The Option Price for
                                         an Option shall be not less than the FMV of the Shares on the date of grant.

 

		6.4	Duration
                                         of Options. Each Option granted to a Participant shall expire at such time as the
                                         Committee shall determine at the time of grant; provided, however, that no Option shall
                                         be exercisable later than the tenth (10th) anniversary date of its grant.
                                         Notwithstanding the foregoing, the expiry date of any Option shall be extended to the
                                         tenth business day following the last day of a Blackout Period if the expiry date would
                                         otherwise occur in a Blackout Period or within five days of the end of the Blackout Period.

 

		6.5	Exercise
                                         of Options. Options granted under this 0 shall be exercisable at such times and on
                                         the occurrence of such events, and be subject to such restrictions and conditions, as
                                         the Committee shall in each instance approve, which need not be the same for each grant
                                         or for each Participant.

 

		6.6	Payment.
                                         Options granted under this 0 shall be exercised by the delivery of a notice of exercise
                                         to the Company or an agent designated by the Company in a form specified or accepted
                                         by the Committee, or by complying with any alternative procedures which may be authorized
                                         by the Committee, setting forth the number of Shares with respect to which the Option
                                         is to be exercised, accompanied by full payment for the Shares (subject to the application
                                         of any cashless exercise procedures accepted by the Committee.

 

The Option Price upon
exercise of any Option shall be payable to the Company in full either: (a) in cash, certified cheque or wire transfer; or
(b) by any other method approved or accepted by the Committee in its sole discretion subject to the rules of the TSX and such
rules and regulations as the Committee may establish. Such methods may include cashless exercise and settlement.

 

Subject to Section 6.7
and any governing rules or regulations, as soon as practicable after receipt of a notification of exercise and full payment for
the Shares, the Shares in respect of which the Option has been exercised shall be issued as fully-paid and non-assessable shares
of the Company. As of the business day the Company receives such notice and such payment, the Participant (or the person claiming
through him, as the case may be) shall be entitled to be entered on the share register of the Company as the holder of the number
of Shares in respect of which the Option was exercised and to receive as promptly as possible thereafter a certificate or evidence
of book entry representing the said number of Shares. The Company shall cause to be delivered to or to the direction of the Participant
Share certificates or evidence of book entry Shares in an appropriate amount based upon the number of Shares purchased under the
Option(s), but in any event, on or before the 15th day of the third month of the year following the year in which the Option was
exercised.

    	 	10	 

     

    

		6.7	Restrictions
                                         on Share Transferability. The Committee may impose such restrictions on any Shares
                                         acquired pursuant to the exercise of an Option granted pursuant to this Plan as it may
                                         deem advisable, including, without limitation, requiring the Participant to hold the
                                         Shares acquired pursuant to exercise for a specified period of time, or restrictions
                                         under applicable laws or under the requirements of any stock exchange or market upon
                                         which such Shares are listed and/or traded.

 

		6.8	Death,
                                         Retirement and Termination of Employment.

 

		6.8.1	Death: If a Participant dies while an Employee, Director of,
or Consultant to, the Company or an Affiliate:

 

		6.8.1.1	the executor or administrator of the Participant’s estate
may exercise Options of the Participant equal to the number of Options that were exercisable at the Termination Date (as defined
at Section 6.8.4 below); 

 

		6.8.1.2	the right to exercise such Options terminates on the earlier
of: (i) the date that is 12 months after the Termination Date; and (ii) the date on which the exercise period of
the particular Option expires. Any Options held by the Participant that are not yet vested at the Termination Date immediately
expire and are cancelled and forfeited to the Company on the Termination Date; and

 

		6.8.1.3	such Participant’s eligibility to receive further grants
of Options under the Plan ceases as of the Termination Date.

 

		6.8.2	Retirement: If a Participant voluntarily Retires then:

 

		6.8.2.1	any Options held by the Participant that are exercisable at the
Termination Date continue to be exercisable by the Participant until the earlier of: (i) the date that is six months after
the Termination Date; and (ii) the date on which the exercise period of the particular Option expires. Any Options held by
the Participant that are not yet vested at the Termination Date immediately expire and are cancelled and forfeited to the Company
on the Termination Date,

 

		6.8.2.2	the eligibility of a Participant to receive further grants under
the Plan ceases as of the date that the Company or an Affiliate, as the case may be, provides the Participant with written notification
that the Participant’s employment or term of office or engagement, is terminated, notwithstanding that such date may be prior
to the Termination Date, and

 

		6.8.2.3	notwithstanding (b)(i) and (ii) above, unless the Committee,
in its sole discretion, otherwise determines, at any time and from time to time, Options are not affected by a change of employment
arrangement within or among the Company or an Affiliate for so long as the Participant continues to be an employee of the Company
or an Affiliate.

 

		6.8.3	Termination of Employment: Where a Participant’s employment
or term of office or engagement terminates (for any reason other than death or voluntary Retirement (whether such termination occurs
with or without any or adequate notice or reasonable notice, or with or without any or adequate compensation in lieu of
such notice)), then:

 

		6.8.3.1	any Options held by the Participant that are exercisable at the
Termination Date continue to be exercisable by the Participant until the earlier of: (i) the date that is three months after
the Termination Date; and (ii) the date on which the exercise period of the particular Option expires. Any Options held by
the Participant that are not yet vested at the Termination Date immediately expire and are cancelled and forfeited to the Company
on the Termination Date,

    	 	11	 

     

    

		6.8.3.2	the eligibility of a Participant to receive further grants under
the Plan ceases as of the date that the Company or an Affiliate, as the case may be, provides the Participant with written notification
that the Participant’s employment or term of office or engagement, is terminated, notwithstanding that such date may be prior
to the Termination Date, and

 

		6.8.3.3	notwithstanding (c)(i) and (ii) above, unless the Committee,
in its sole discretion, otherwise determines, at any time and from time to time, Options are not affected by a change of employment
arrangement within or among the Company or an Affiliate for so long as the Participant continues to be an employee of the Company
or an Affiliate.

 

		6.8.4	For purposes of section 6.8, the term, “Termination
Date” means, in the case of a Participant whose employment or term of office or engagement with the Company or an Affiliate
terminates:

 

		6.8.4.1	by reason of the Participant’s death, the date of death;

 

		6.8.4.2	for any reason whatsoever other than death, the date of the Participant’s
last day actively at work for or actively engaged by the Company or the Affiliate, as the case may be; and for greater certainty
“Termination Date” in any such case specifically does not mean the date on which any period of contractual notice or
reasonable notice that the Company or the Affiliate, as the case may be, may be required at law to provide to a Participant would
expire; and

 

		6.8.4.3	the resignation of a director shall be considered to be a Retirement
whereas the expiry of a director’s term on the Board without re-election (or nomination for election) shall be considered
to be a termination of his or her term of office.

 

		6.9	Nontransferability
                                         of Options. Except as otherwise provided in a Participant’s Award Agreement
                                         at the time of grant or thereafter by the Committee, an Option granted under this 0 may
                                         not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
                                         other than by will or by the laws of descent and distribution. Further, except as otherwise
                                         provided in a Participant’s Award Agreement at the time of grant or thereafter
                                         by the Committee, all Options granted to a Participant under this 0 shall be exercisable
                                         during such Participant’s lifetime only by such Participant.

 

ARTICLE 7

SHARE APPRECIATION RIGHTS

 

		7.1	Grant of SARs. Subject to the terms and conditions of the
Plan, SARs may be granted to Participants at any time and from time to time and upon such terms as shall be determined by the Committee
in its discretion. The Committee may grant Freestanding SARs, Tandem SARs, or any combination of these forms of SARs. 

    	 	12	 

     

    

The SAR Grant Price
for each grant of a Freestanding SAR shall be determined by the Committee and shall be specified in the Award Agreement. The SAR
Grant Price may include a Grant Price based on one hundred percent (100%) of the FMV of the Shares on the date of grant, a Grant
Price that is set at a premium to the FMV of the Shares on the date of grant, or is indexed to the FMV of the Shares on the date
of grant, with the index determined by the Committee, in its discretion, provided that the Grant Price may never be less than the
FMV of the Shares on the date of Grant. The Grant Price of Tandem SARs shall be equal to the Option Price of the related Option.

 

		7.2	SAR
                                         Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify
                                         the Grant Price, the term of the SAR, and any such other provisions as the Committee
                                         shall determine.

 

		7.3	Term
                                         of SAR. The term of a SAR granted under the Plan shall be determined by the Committee,
                                         in its sole discretion, and except as determined otherwise by the Committee and specified
                                         in the SAR Award Agreement, no SAR shall be exercisable later than the tenth (10th) anniversary
                                         date of its grant. Notwithstanding the foregoing, the expiry date of any SAR shall be
                                         extended to the tenth business day following the last day of a Blackout Period if the
                                         expiry date would otherwise occur in a Blackout Period or within five days of the end
                                         of the Blackout Period.

 

		7.4	Exercise
                                         of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and
                                         conditions the Committee, in its sole discretion, imposes.

 

		7.5	Exercise
                                         of Tandem SARs. With respect to Participants who are not subject to taxation under
                                         the ITA, Tandem SARs may be exercised for all or part of the Shares subject to the related
                                         Option upon the surrender of the right to exercise the equivalent portion of the related
                                         Option. With respect to Participants subject to taxation under the ITA, prior to exercising
                                         a Tandem SAR the Participant must elect to receive the Tandem SAR in consideration for
                                         the disposition of that Participant’s right to receive shares under the Option.
                                         A Tandem SAR may be exercised only with respect to the Shares for which its related Option
                                         is then exercisable.

 

		7.6	Payment
                                         of SAR Amount. Upon the exercise of a SAR, a Participant shall be entitled to receive
                                         payment from the Company in an amount representing the difference between the FMV of
                                         the underlying Shares on the date of exercise over the Grant Price. At the discretion
                                         of the Committee, the payment upon SAR exercise may be in cash, Shares of equivalent
                                         value (based on the FMV on the date of exercise of the SAR, as defined in the Award Agreement
                                         or otherwise defined by the Committee thereafter), in some combination thereof, or in
                                         any other form approved by the Committee at its sole discretion. Payment shall be made
                                         no earlier than the date of exercise nor later than 21⁄2 months after the close
                                         of the year in which the SAR is exercised. The Committee’s determination regarding
                                         the form of SAR payout shall be set forth or reserved for later determination in the
                                         Award Agreement for the grant of the SAR.

 

		7.7	Termination
                                         of Employment. Each Award Agreement shall set forth the extent to which the Participant
                                         shall have the right to exercise the SAR following termination of the Participant’s
                                         employment or other relationship with the Company or Affiliates. Such provisions shall
                                         be determined in the sole discretion of the Committee, need not be uniform among all
                                         SARs issued pursuant to the Plan, and may reflect distinctions based on the reasons for
                                         termination.

    	 	13	 

     

    

		7.8	Nontransferability
                                         of SARs. Except as otherwise provided in a Participant’s Award Agreement at
                                         the time of grant or thereafter by the Committee, a SAR granted under the Plan may not
                                         be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other
                                         than by will or by the laws of descent and distribution. Further, except as otherwise
                                         provided in a Participant’s Award Agreement at the time of grant or thereafter
                                         by the Committee, all SARs granted to a Participant under the Plan shall be exercisable
                                         during such Participant’s lifetime only by such Participant.

 

		7.9	Other
                                         Restrictions. Without limiting the generality of any other provision of this Plan,
                                         the Committee may impose such other conditions and/or restrictions on any Shares received
                                         upon exercise of a SAR granted pursuant to the Plan as it may deem advisable. This includes,
                                         but is not limited to, requiring the Participant to hold the Shares received upon exercise
                                         of a SAR for a specified period of time.

 

ARTICLE 8

RESTRICTED SHARE AND RESTRICTED SHARE UNITS

 

		8.1	Grant of Restricted Shares or Restricted Share Units. Subject to the terms and conditions
of the Plan, the Committee, at any time and from time to time, may grant Restricted Shares and/or Restricted Share Units to Participants
in such amounts and upon such terms as the Committee shall determine.

 

		8.2	Restricted
                                         Share or Restricted Share Unit Agreement. Each Restricted Share and/or Restricted
                                         Share Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s)
                                         of Restriction, the number of Restricted Shares or the number of Restricted Share Units
                                         granted, the settlement date for Restricted Share Units, and any such other provisions
                                         as the Committee shall determine, provided that unless otherwise determined by the Committee
                                         or as set out in any Award Agreement, no Restricted Share Unit shall vest later than
                                         three years after the date of grant.

 

		8.3	Nontransferability
                                         of Restricted Share and Restricted Share Units. Except as otherwise provided in this
                                         Plan or the Award Agreement, the Restricted Shares and/or Restricted Share Units granted
                                         herein may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated
                                         until the end of the applicable Period of Restriction specified in the Award Agreement
                                         (and in the case of Restricted Share Units until the date of settlement through delivery
                                         or other payment), or upon earlier satisfaction of any other conditions, as specified
                                         by the Committee in its sole discretion and set forth in the Award Agreement at the time
                                         of grant or thereafter by the Committee. All rights with respect to the Restricted Shares
                                         and/or Restricted Share Units granted to a Participant under the Plan shall be available
                                         during such Participant’s lifetime only to such Participant, except as otherwise
                                         provided in the Award Agreement at the time of grant or thereafter by the Committee.

 

		8.4	Other
                                         Restrictions. The Committee shall impose, in the Award Agreement at the time of grant
                                         or anytime thereafter, such other conditions and/or restrictions on any Restricted Shares
                                         or Restricted Share Units granted pursuant to this Plan as it may deem advisable, including,
                                         without limitation, a requirement that Participants pay a stipulated purchase price for
                                         each Restricted Share or each Restricted Share Unit, restrictions based upon the achievement
                                         of specific performance criteria, time-based restrictions on vesting following the attainment
                                         of the performance criteria, time-based restrictions, restrictions under applicable laws
                                         or under the requirements of any stock exchange or market upon which such Shares are
                                         listed or traded, or holding requirements or sale restrictions placed on the Shares by
                                         the Company upon vesting of such Restricted Shares or Restricted Share Units.

    	 	14	 

     

    

To the extent deemed
appropriate by the Committee, the Company may retain the certificates representing Restricted Shares, or Shares delivered in settlement
of Restricted Share Units, in the Company’s possession until such time as all conditions and/or restrictions applicable to
such Shares have been satisfied or lapse.

 

Except as otherwise
provided in this 0, Restricted Shares covered by each Restricted Share Award shall become freely transferable by the Participant
after all conditions and restrictions applicable to such Shares have been satisfied or lapse, and Restricted Share Units shall
be settled through payment in cash, Shares, or a combination of cash and Shares as the Committee, in its sole discretion, shall
determine.

 

		8.5	Certificate
                                         Legend. In addition to any legends placed on certificates pursuant to Section 8.4
                                         herein, each certificate representing Restricted Shares granted pursuant to the Plan
                                         may bear a legend such as the following:

 

“The
sale or other transfer of the shares of stock represented by this certificate, whether voluntary, involuntary or by operation of
law, is subject to certain restrictions on transfer as set forth in the 2015 Omnibus Equity Incentive Compensation Plan and in
the associated Award Agreement. A copy of the Plan and such Award Agreement may be obtained from the Chief Financial Officer of
Caledonia Mining Corporation.”

 

		8.6	Voting
                                         Rights. To the extent required by law, Participants holding Restricted Shares granted
                                         hereunder shall have the right to exercise full voting rights with respect to those Shares
                                         during the Period of Restriction. A Participant shall have no voting rights with respect
                                         to any Restricted Share Units granted hereunder.

 

		8.7	Dividends
                                         and Other Distributions. During the Period of Restriction, Participants holding Restricted
                                         Shares or Restricted Share Units granted hereunder may, if the Committee so determines,
                                         be credited with dividends paid with respect to the underlying Shares or Dividend Equivalents
                                         while they are so held in a manner determined by the Committee in its sole discretion.
                                         Dividend Equivalents shall not apply to an Award unless specifically provided for in
                                         the Award Agreement. The Committee may apply any restrictions to the dividends or Dividend
                                         Equivalents that the Committee deems appropriate. The Committee, in its sole discretion,
                                         may determine the form of payment of dividends or Dividend Equivalents, including cash,
                                         Shares, Restricted Shares or Restricted Share Units.

 

		8.8	Death,
                                         Retirement and other Termination of Employment.

 

		8.8.1	Death: If a Participant dies while an Employee, Director of,
or Consultant to, the Company or an Affiliate:

 

		8.8.1.1	any Restricted Share or Restricted Share Units held by the Participant
that have not vested as at the Termination Date (as defined at Section 8.8.5 below) shall vest immediately;

 

		8.8.1.2	any Restricted Shares and Restricted Share Units held by the
Participant that have vested (including Restricted Shares and Restricted Share Units vested in accordance with Section 8.8.1.1)
as at the Termination Date (as defined at Section 8.8.5 below), shall be paid to the Participant's estate in accordance with
the terms of the Plan and Award Agreement; and

 

    	 	15	 

     

    

		8.8.1.3	such Participant's eligibility to receive further grants of Restricted
Share Units or Restricted Shares under the Plan ceases as of the Termination Date.

 

		8.8.2	Disability: If a Participant suffers a Disability while an Employee,
Director of, or Consultant to, the Company or an Affiliate and, as a result, his or her employment or engagement with the Company
or an Affiliate is terminated:

 

		8.8.2.1	the number of Restricted Shares or Restricted Share Units held
by the Participant and that have not vested (collectively referred to in this Section 8.8 as the "Unvested Awards")
shall be reduced to be equal to the product of (A) the number of Unvested Awards; and (B) the fraction obtained when
dividing (x) the number of calendar days from the date of the award of the Unvested Awards to the Termination Date (as defined
at Section 8.8.5 below) and (x) the number of calendar days from the date of the award of the Unvested Awards to the
original vesting date set out in the Award Agreement;

 

		8.8.2.2	the number of Unvested Awards, as calculated pursuant to Section
8.8.2.1, shall continue to vest in accordance with the terms of the Plan and Award Agreement; and

 

		8.8.2.3	such Participant's eligibility to receive further grants of Restricted
Share Units or Restricted Shares under the Plan ceases as of the Termination Date.

 

		8.8.3	Retirement: If a Participant voluntarily Retires then:

 

		8.8.3.1	any Restricted Share Units held by the Participant that have
vested before the Termination Date (as defined at Section 8.8.5 below) shall be paid to the Participant;

 

		8.8.3.2	any Unvested Awards held by the Participant at the Termination
Date (as defined at Section 8.8.5 below) shall continue to vest in accordance with the terms of the Plan and Award Agreement
following the Termination Date (as defined at Section 8.8.5 below) until the earlier of: (i) the date determined by the
Committee, in its sole discretion; and (ii) the date on which the Restricted Share Units vest pursuant to the original Award
Agreement in respect of such Unvested Awards; and

 

		8.8.3.3	such Participant's eligibility to receive further grants of Restricted
Share Units or Restricted Shares under the Plan ceases as of the Termination Date.

 

    	 	16	 

     

    

		8.8.4	Termination other than Death, Disability or Retirement: Unless
determined otherwise by the Committee, where a Participant’s employment or term of office or engagement terminates for any
reason other than death, Disability or Retirement (whether such termination occurs with or without any or adequate notice or reasonable
notice, or with or without any or adequate compensation in lieu of such notice), then:

 

		8.8.4.1	any Restricted Share Units held by the Participant that have
vested before the Termination Date (as defined at Section 8.8.5 below) shall be paid to the Participant. Any Restricted Share
Units or Restricted Shares held by the Participant that are not yet vested at the Termination Date (as defined at Section 8.8.5
below) will be immediately cancelled and forfeited to the Company on the Termination Date;

 

		8.8.4.2	the eligibility of a Participant to receive further grants under
the Plan ceases as of the date that the Company or an Affiliate provides the Participant with written notification that the Participant's
employment or term of office or engagement, is terminated, notwithstanding that such date may be prior to the Termination Date;
and

 

		8.8.4.3	notwithstanding Sections 8.8.4.1 and (ii) above, unless the Committee,
in its sole discretion, otherwise determines, at any time and from time to time, Restricted Share Units and Restricted Shares are
not affected by a change of employment arrangement within or among the Company or an Affiliate for so long as the Participant continues
to be an employee of the Company or an Affiliate.

 

		8.8.5	For purposes of section 8.8, the term, “Termination
Date” means, in the case of a Participant whose employment or term of office or engagement with the Company or an Affiliate
terminates:

 

		8.8.5.1	by reason of the Participant’s death, the date of death;

 

		8.8.5.2	by reason of termination for Cause, resignation by the Participant
or Retirement, the Participant's last day actively at work for or actively engaged by the Company or an Affiliate;

 

		8.8.5.3	by reason of Disability, the date of the Participant's last day
actively at work for or actively engaged by the Company or an Affiliate;

 

		8.8.5.4	for any reason whatsoever other than death, termination for Cause,
Retirement or termination by reason of Disability, the later of the (A) date of the Participant's last day actively at work
for or actively engaged by the Company or the Affiliate, and (B) the last date of the Notice Period; and

 

		8.8.5.5	the resignation of a director and the expiry of a director's
term on the Board without re-election (or nomination for election) shall each be considered to be a termination of his or her term
of office.

 

    	 	17	 

     

    

		8.8.6	Change of Control: The occurrence of a Change of Control will
not result in the vesting of Unvested Awards, provided that: (i) such Unvested Awards will continue to vest in accordance
with the Plan and Award Agreement; and (ii) any Successor Entity agrees to assume the obligations of the Company in respect
of such Unvested Awards.

 

		8.8.7	Termination Following a Change of Control: Where a Participant’s
employment or term of office or engagement is terminated for any reason, other than for Cause, during the 24 months following a
Change in Control, any Unvested Awards as at the date of such termination shall be deemed to have vested as at the date of such
termination and shall become payable as at the date of termination.

 

		8.9	Payment
                                         in Settlement of Restricted Share Units. When and if Restricted Share Units become
                                         payable, the Participant issued such units shall be entitled to receive payment from
                                         the Company in settlement of such units in cash, Shares (issued from treasury) of equivalent
                                         value (based on the FMV, as defined in the Award Agreement at the time of grant or thereafter
                                         by the Committee), in some combination thereof, or in any other form, all as determined
                                         by the Committee at its sole discretion. The Committee’s determination regarding
                                         the form of payout shall be set forth or reserved for later determination in the Award
                                         Agreement for the grant of the Restricted Share Units. In the event settlement is made
                                         by payment in cash, such payment shall be made by the earlier of (i) 21⁄2 months
                                         after the close of the year in which such conditions or restrictions were satisfied or
                                         lapsed and (ii) December 31 of the third year following the year of the grant date.

 

ARTICLE 9

DEFERRED SHARES UNITS

 

		9.1	Grant
                                         of Deferred Share Units. Subject to the terms and conditions of the Plan, the Committee,
                                         at any time and from time to time, may grant Deferred Share Units to Participants in
                                         such amounts and upon such terms as the Committee shall determine.

 

		9.2	Deferred
                                         Share Unit Agreement. Each Deferred Share Unit grant shall be evidenced by an Award
                                         Agreement that shall specify the number of Deferred Share Units granted, the settlement
                                         date for Deferred Share Units, and any other provisions as the Committee shall determine,
                                         including, but not limited to a requirement that Participants pay a stipulated purchase
                                         price for each Deferred Share Unit, restrictions based upon the achievement of specific
                                         performance criteria, time-based restrictions, restrictions under applicable laws or
                                         under the requirements of any stock exchange or market upon which the Shares are listed
                                         or traded, or holding requirements or sale restrictions placed on the Shares by the Company
                                         upon vesting of such Deferred Share Units.

 

		9.3	Nontransferability
                                         of Deferred Share Units. Except as otherwise provided in this Plan or the Award Agreement,
                                         the Deferred Share Units granted herein may not be sold, transferred, pledged, assigned
                                         or otherwise alienated or hypothecated. All rights with respect to the Deferred Share
                                         Units granted to a Participant under the Plan shall be available during such Participant’s
                                         lifetime only to such Participant, except as otherwise provided in the Award Agreement
                                         at the time of grant or thereafter by the Committee.

 

		9.4	Termination
                                         of Employment, Consultancy or Directorship. Each Award Agreement shall set forth
                                         the extent to which the Participant shall have the right to retain Deferred Share Units
                                         following termination of the Participant’s employment or other relationship with
                                         the Company or Affiliates. Such provisions shall be determined in the sole discretion
                                         of the Committee, need not be uniform among all Deferred Share Units issued pursuant
                                         to the Plan, and may reflect distinctions based on the reasons for termination.

    	 	18	 

     

    

ARTICLE 10

PERFORMANCE SHARES AND PERFORMANCE UNITS

 

		10.1	Grant of Performance Shares and Performance Units. Subject
to the terms and conditions of the Plan, the Committee, at any time and from time to time, may grant Performance Shares and/or
Performance Units to Participants in such amounts and upon such terms as the Committee shall determine. 

 

		10.2	Value
                                         of Performance Shares and Performance Units. Each Performance Share and Performance
                                         Unit shall have an initial value equal to the FMV of a Share on the date of grant. The
                                         Committee shall set performance criteria for a Performance Period in its discretion,
                                         which, depending on the extent to which they are met, will determine, in the manner determined
                                         by the Committee and set forth in the Award Agreement, the value and/or number of each
                                         Performance Share or Performance Unit that will be paid to the Participant.

 

		10.3	Earning
                                         of Performance Shares and Performance Units. Subject to the terms of this Plan and
                                         the applicable Award Agreement, after the applicable Performance Period has ended, the
                                         holder of Performance Shares/Performance Units shall be entitled to receive payout on
                                         the value and number of Performance Shares/Performance Units, determined as a function
                                         of the extent to which the corresponding performance criteria have been achieved. Notwithstanding
                                         the foregoing, the Company shall have the ability to require the Participant to hold
                                         any Shares received pursuant to such Award for a specified period of time.

 

		10.4	Form
                                         and Timing of Payment of Performance Shares and Performance Units. Payment of earned
                                         Performance Shares/Performance Units shall be as determined by the Committee and as set
                                         forth in the Award Agreement. Subject to the terms of the Plan, the Committee, in its
                                         sole discretion, may pay earned Performance Shares/Performance Units in the form of cash
                                         or in Shares issued from treasury (or in a combination thereof) equal to the value of
                                         the earned Performance Shares/Performance Units at the end of the applicable Performance
                                         Period. Any Shares may be granted subject to any restrictions deemed appropriate by the
                                         Committee. The determination of the Committee with respect to the form of payout of such
                                         Awards shall be set forth in the Award Agreement for the grant of the Award or reserved
                                         for later determination. In no event will delivery of such Shares or payment of any cash
                                         amounts be made later than the earlier of (i) 21⁄2 months after the close of
                                         the year in which such conditions or restrictions were satisfied or lapsed and (ii) December
                                         31 of the third year following the year of the grant date.

 

		10.5	Dividends
                                         and Other Distributions. The Committee shall determine whether Participants holding
                                         Performance Shares will receive Dividend Equivalents with respect to dividends declared
                                         with respect to the Shares. Dividends or Dividend Equivalents may be subject to accrual,
                                         forfeiture or payout restrictions as determined by the Committee in its sole discretion.

 

		10.6	Death and other Termination of Employment.

 

		10.6.1	Death: If a Participant dies while an Employee, Director of,
or Consultant to, the Company or an Affiliate:

 

    	 	19	 

     

    

		10.6.1.1	the number of Performance Shares or Performance Share Units held
by the Participant that have not vested (collectively referred to in this Section 10.6 as “Unvested Awards”)
shall be adjusted as set out in the applicable Award Agreement (collectively referred to in this Section 10.6 as “Deemed
Awards”);

 

		10.6.1.2	any Deemed Awards shall vest immediately;

 

		10.6.1.3	any Performance Shares and Performance Shares Units held by the
Participant that have vested (including Deemed Awards vested in accordance with Section 10.6.1.2 shall be paid to the Participant’s
estate in accordance with the terms of the Plan and Award Agreement; and

 

		10.6.1.4	such Participant’s eligibility to receive further grants
of Performance Shares or Performance Share Units under the Plan ceases as of the Termination Date (as defined at Section 10.6.5
below).

 

		10.6.2	Disability: If a Participant suffers a Disability while an Employee,
officer or director of or Consultant to the Company or an Affiliate and as a result his or her employment with the company or Affiliate
is terminated:

 

		10.6.2.1	Unvested Awards shall be reduced to be equal to the product of
(A) the number of Unvested Awards; and (B) the fraction obtained when dividing (x) the number of calendar days from
the date of the award of the Unvested Awards to the Termination Date (as defined at Section 10.6.5 below) and (x) the
number of calendar days from the date of the award of the Unvested Awards to the original vesting date set out in the Award Agreement;

 

		10.6.2.2	the number of Unvested Awards, as calculated pursuant to Section 10.6.2.1,
shall continue to vest in accordance with the terms of its Plan and Award Agreement; and

 

		10.6.2.3	such Participant’s eligibility to receive further grants
of Performance Share Units or Performance Shares under the Plan ceases as of the Termination Date.

 

		10.6.3	Retirement: If a Participant voluntarily Retires then:

 

		10.6.3.1	any Performance Shares or Performance Share Units held by the
Participant that have vested before the Termination Date shall be paid to the Participant;

 

		10.6.3.2	any Unvested Awards held by the Participant at the Termination
Date (as defined at Section 10.6.5 below) shall continue to vest in accordance with the terms of the Plan and Award Agreement
following the Termination Date until the earlier of: (i) the date determined by the Committee, in its sole discretion; and
(ii) the date on which the Performance Share Units vest pursuant to the original Award Agreement in respect of such Unvested
Awards; and

 

    	 	20	 

     

    

		10.6.3.3	such Participant's eligibility to receive further grants of Performance
Shares or Performance Share Units under the Plan ceases as of the Termination Date.

 

		10.6.4	Termination other than Death, Disability or Retirement: Unless
determined otherwise by the Committee, where a Participant’s employment or term of office or engagement terminates for any
reason other than death (whether such termination occurs with or without any or adequate notice or reasonable notice, or with or
without any or adequate compensation in lieu of such notice), then:

 

		10.6.4.1	any Performance Share Units or Performance Shares held by the
Participant that have vested before the Termination Date shall be paid to the Participant in accordance with the terms of the Plan
and Award Agreement. Any Performance Shares Units or Performance Shares held by the Participant that are not yet vested at the
Termination Date will be immediately cancelled and forfeited to the Company on the Termination Date;

 

		10.6.4.2	the eligibility of a Participant to receive further grants under
the Plan ceases as of the date that the Company or an Affiliate provides the Participant with written notification that the Participant’s
employment or term of office or engagement, is terminated, notwithstanding that such date may be prior to the Termination Date;
and

 

		10.6.4.3	notwithstanding Sections 10.6.3.1 and (ii) above, unless
the Committee, in its sole discretion, otherwise determines, at any time and from time to time, Performance Share Units or Performance
Shares are not affected by a change of employment arrangement within or among the Company or an Affiliate for so long as the Participant
continues to be an employee of the Company or an Affiliate.

 

		10.6.5	For purposes of this Section 10.6, the term, “Termination
Date” has the meaning set out in Section 8.8.5.

 

		10.6.6	Change of Control: The occurrence of a Change of Control will
not result in the vesting of Unvested Awards, provided that:

 

		10.6.6.1	such Unvested Awards will continue to vest in accordance with
the Plan and the Award Agreement; 

 

		10.6.6.2	the level of achievement of Performance Goals for Fiscal Years
completed prior to the date of the Change of Control shall be based on the actual performance achieved to the date of the Change
of Control and the level of achievement of Performance Goals for Fiscal Years completed following the date of the Change of Control
shall be based on the assumed achievement of 100% of the Performance Goals; and

 

    	 	21	 

     

    

		10.6.6.3	any Successor Entity agrees to assume the obligations of the
Company in respect of such Unvested Awards.

 

		10.6.7	Termination following Change of Control: For the period of 24
months following a Change of Control, where a Participant’s employment or term of office or engagement is terminated for
any reason, other than for Cause: 

 

		10.6.7.1	any Unvested Awards as at the date of such termination shall
be deemed to have vested as at the date of such termination and shall become payable as at the date of termination; and

 

		10.6.7.2	the level of achievement of Performance Goals for any Unvested
Awards that are deemed to have vested pursuant to (i) above, shall be based on the actual performance achieved at the end of the
Fiscal Year immediately prior to the date of termination.

 

		10.7	Nontransferability
                                         of Performance Shares and Performance Units. Except as otherwise provided in a Participant’s
                                         Award Agreement at the time of grant or thereafter by the Committee, Performance Shares/Performance
                                         Units may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated,
                                         other than by will or by the laws of descent and distribution. Further, except as otherwise
                                         provided in a Participant’s Award Agreement or otherwise by the Committee at any
                                         time, a Participant’s rights under the Plan shall inure during such Participant’s
                                         lifetime only to such Participant.

 

ARTICLE 11

FULL VALUE SHARE-BASED AWARDS

 

		11.1	Share-Based Awards. The Committee may, to the extent permitted
by the TSX, 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 Shares and issuance of unrestricted Shares in satisfaction of compensation (including
salary, bonus or other incentive)) in such amounts and subject to such terms and conditions, including, but not limited to, being
subject to performance criteria, or in satisfaction of such obligations, as the Committee shall determine; provided that the maximum
number of Share-Based Awards issued in any calendar year shall not exceed one per cent (1%) of the issued and outstanding Shares
on January 1 of such calendar year. Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or
otherwise of amounts based on the value of Shares, subject to applicable corporate law and securities law requirements.

 

		11.2	Termination
                                         of Employment. Each Award Agreement shall set forth the extent to which the Participant
                                         shall have the right to receive Share-Based Awards following termination of the Participant’s
                                         employment or other relationship with the Company or Affiliates. Such provisions shall
                                         be determined in the sole discretion of the Committee, need not be uniform among all
                                         Share-Based Awards issued pursuant to the Plan, and may reflect distinctions based on
                                         the reasons for termination.

    	 	22	 

     

    

		11.3	Nontransferability
                                         of Share-Based Awards. Except as otherwise provided in a Participant’s Award
                                         Agreement at the time of grant or thereafter by the Committee, Share-Based Awards may
                                         not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other
                                         than by will or by the laws of descent and distribution. Further, except as otherwise
                                         provided in a Participant’s Award Agreement at the time of grant or thereafter
                                         by the Committee, a Participant’s rights under the Plan shall be exercisable during
                                         such Participant’s lifetime only by such Participant.

 

ARTICLE 12

BENEFICIARY DESIGNATION

 

 

	12.1	Beneficiary. A Participant’s “beneficiary”
is the person or persons entitled to receive payments or other benefits or exercise rights that are available under the Plan in
the event of the Participant’s death. A Participant may designate a beneficiary or change a previous beneficiary designation
at such times as prescribed by the Committee and by using such forms and following such procedures approved or accepted by the
Committee for that purpose. If no beneficiary designated by the Participant is eligible to receive payments or other benefits or
exercise rights that are available under the Plan at the Participant’s death, the beneficiary shall be the Participant’s
estate.
	 	 
	12.2	Discretion
                                         of the Committee. Notwithstanding the provisions above, the Committee may, in its
                                         discretion, after notifying the affected Participants, modify the foregoing requirements,
                                         institute additional requirements for beneficiary designations, or suspend the existing
                                         beneficiary designations of living Participants or the process of determining beneficiaries
                                         under this 0, or both, in favor of another method of determining beneficiaries.

 

ARTICLE 13

RIGHTS OF PERSONS ELIGIBLE TO PARTICIPATE

 

		13.1	Employment.
                                         Nothing in the Plan or an Award Agreement shall interfere with or limit in any way the
                                         right of the Company or an Affiliate to terminate any Participant’s employment,
                                         consulting or other service relationship with the Company or an Affiliate at any time,
                                         nor confer upon any Participant any right to continue in the capacity in which he or
                                         she is employed or otherwise serves the Company or an Affiliate.

 

Neither an Award nor
any benefits arising under this Plan shall constitute part of an employment or service contract with the Company or an Affiliate,
and, accordingly, subject to the terms of this Plan, this Plan may be terminated or modified at any time in the sole and exclusive
discretion of the Committee or the Board without giving rise to liability on the part of the Company or an Affiliate for severance
payments or otherwise, except as provided in this Plan.

 

For purposes of the
Plan, unless otherwise provided by the Committee, a transfer of employment of a Participant between the Company and an Affiliate
or among Affiliates, shall not be deemed a termination of employment. The Committee may provide in a Participant’s Award
Agreement or otherwise the conditions under which a transfer of employment to an entity that is spun off from the Company or an
Affiliate shall not be deemed a termination of employment for purposes of an Award.

 

		13.2	Participation.
                                         No Employee or other Person eligible to participate in the Plan shall have the right
                                         to be selected to receive an Award. No person selected to receive an Award shall have
                                         the right to be selected to receive a future Award, or, if selected to receive a future
                                         Award, the right to receive such future Award on terms and conditions identical or in
                                         proportion in any way to any prior Award.

    	 	23	 

     

    

		13.3	Rights
                                         as a Shareholder. A Participant shall have none of the rights of a shareholder with
                                         respect to Shares covered by any Award until the Participant becomes the record holder
                                         of such Shares.

 

ARTICLE 14

CHANGE OF CONTROL

 

		14.1	Accelerated
                                         Vesting and Payment. Subject to the provisions of Section 14.2 or as otherwise
                                         provided in the Plan or the Award Agreement, in the event of a Change of Control, the
                                         Committee shall have the discretion to unilaterally determine that all outstanding Awards
                                         shall be cancelled upon a Change of Control, and that the value of such Awards, as determined
                                         by the Committee in accordance with the terms of the Plan and the Award Agreements, shall
                                         be paid out in cash in an amount based on the Change of Control Price within a reasonable
                                         time subsequent to the Change of Control.

 

		14.2	Alternative
                                         Awards. Notwithstanding Section 14.1, no cancellation, acceleration of vesting,
                                         lapsing of restrictions, payment of an Award, cash settlement or other payment shall
                                         occur with respect to any Award if the Committee reasonably determines in good faith
                                         prior to the occurrence of a Change of Control that such Award shall be honored or assumed,
                                         or new rights substituted therefor (with such honored, assumed or substituted Award hereinafter
                                         referred to as an “Alternative Award”) by any successor to the Company
                                         or an Affiliate as described in 0; provided, however, that any such Alternative Award
                                         must:

 

		14.2.1	be based on stock which is traded on the TSX and/or an established
securities market in London, England or the United States; 

 

		14.2.2	provide such Participant with rights and entitlements substantially
equivalent to or better than the rights, terms and conditions applicable under such Award, including, but not limited to, an identical
or better exercise or vesting schedule (including vesting upon termination of employment) and identical or better timing and methods
of payment; 

 

		14.2.3	recognize, for the purpose of vesting provisions, the time that
the Award has been held prior to the Change of Control; and

 

		14.2.4	have substantially equivalent economic value to such Award (determined
prior to the time of the Change of Control).

 

 

 

 

 

 

    	 	24	 

     

    

ARTICLE 15

AMENDMENT, MODIFICATION, SUSPENSION AND TERMINATION

 

		15.1	Amendment,
                                         Modification, Suspension and Termination.

 

		(a)	Except as set out in clauses (b) and (c) below, and as otherwise
provided by law, or stock exchange rules, the Committee or Board may, at any time and from time to time, alter, amend, modify,
suspend or terminate the Plan or any Award in whole or in part without notice to, or approval from, shareholders, including, but
not limited to for the purposes of:

 

		(i)	making any amendments to the general vesting provisions of any
Award; 

 

		(ii)	making any amendments to the general term of any Award provided
that no Award held by an Insider may be extended beyond its original expiry date; 

 

		(iii)	making any amendments to add covenants or obligations of the
Company for the protection of Participants; 

 

		(iv)	making any amendments not inconsistent with the Plan as may be
necessary or desirable with respect to matters or questions which, in the good faith opinion of the Board, it may be expedient
to make, including amendments that are desirable as a result of changes in law or as a “housekeeping” matter; or 

 

		(v)	making such changes or corrections which are required for the
purpose of curing or correcting any ambiguity or defect or inconsistent provision or clerical omission or mistake or manifest error.

 

		(b)	Other than as expressly provided in an Award Agreement or as
set out herein with respect to a Change of Control, the Committee shall not alter or impair any rights or increase any obligations
with respect to an Award previously granted under the Plan without the consent of the Participant.

 

		(c)	The following amendments to the Plan shall require the prior
approval of the Company’s shareholders:

 

		(i)	A reduction in the Option Price of a previously granted Option
or the Grant Price of a previously granted SAR benefitting an Insider of the Company or one of its Affiliates except for adjustments
to the Option Price or Grant Price applicable to outstanding Awards pursuant to Section 4.2 hereof.

 

		(ii)	Any amendment or modification which would increase the total
number of Shares available for issuance under the Plan.

 

		(iii)	An increase to the limit on the number of Shares issued or issuable
under the Plan to Insiders of the Company;

 

		(iv)	An extension of the expiry date of an Option or SAR, other than
as otherwise permitted hereunder in relation to a Blackout Period or otherwise; or 

 

		(v)	Any amendment to the amendment provisions of the Plan under this
Section 15.1.

 

    	 	25	 

     

    

		15.2	Adjustment
                                         of Awards Upon the Occurrence of Unusual or Nonrecurring Events. The Committee may
                                         make adjustments in the terms and conditions of, and the criteria included in, Awards
                                         in recognition of unusual or nonrecurring events in addition to the events described
                                         in Section 4.2 hereof affecting the Company or the financial statements of the Company
                                         or of changes in applicable laws, regulations or accounting principles, whenever the
                                         Committee determines that such adjustments are appropriate in order to prevent unintended
                                         dilution or enlargement of the benefits or potential benefits intended to be made available
                                         under the Plan. The determination of the Committee as to the foregoing adjustments, if
                                         any, shall be conclusive and binding on Participants under the Plan.

 

		15.3	Awards
                                         Previously Granted. Notwithstanding any other provision of the Plan to the contrary,
                                         no termination, amendment, suspension or modification of the Plan shall adversely affect
                                         in any material way any Award previously granted under the Plan, without the written
                                         consent of the Participant holding such Award.

 

ARTICLE 16

WITHHOLDING

 

		16.1	Withholding.
                                         The Company or any Affiliate shall have the power and the right to deduct or withhold,
                                         or require a Participant to remit to the Company or any Affiliate, an amount sufficient
                                         to satisfy federal, state and local taxes or provincial, domestic or foreign, required
                                         by law or regulation to be withheld with respect to any taxable event arising or as a
                                         result of this Plan or any Award hereunder. The Committee may provide for Participants
                                         to satisfy withholding requirements by having the Company withhold and sell Shares or
                                         the Participant making such other arrangements, including the sale of Shares, in either
                                         case on such conditions as the Committee specifies.

 

		16.2	Acknowledgement.
                                         Participant acknowledges and agrees that the ultimate liability for all taxes legally
                                         payable by Participant is and remains Participant’s responsibility and may exceed
                                         the amount actually withheld by the Company. Participant further acknowledges that the
                                         Company: (a) makes no representations or undertakings regarding the treatment of
                                         any taxes in in connection with any aspect of this Plan; and (b) does not commit
                                         to and is under no obligation to structure the terms of this Plan to reduce or eliminate
                                         Participant’s liability for taxes or achieve any particular tax result. Further,
                                         if Participant has become subject to tax in more than one jurisdiction, Participant acknowledges
                                         that the Company may be required to withhold or account for taxes in more than one jurisdiction.

 

ARTICLE 17

SUCCESSORS

 

Any obligations of
the Company or an Affiliate under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company
or Affiliate, respectively, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation
or otherwise, of all or substantially all of the businesses and/or assets of the Company or Affiliate, as applicable.

 

    	 	26	 

     

    

ARTICLE 18

GENERAL PROVISIONS

 

		18.1	Forfeiture
                                         Events. Without limiting in any way the generality of the Committee’s power
                                         to specify any terms and conditions of an Award consistent with law, and for greater
                                         clarity, the Participant’s rights, payments and benefits with respect to an Award
                                         shall, at the sole discretion of the Committee, be subject to reduction, cancellation,
                                         forfeiture of any vested and unvested Awards or recoupment of any payments or settlements
                                         made in the current Fiscal Year or immediately prior Fiscal Year (provided such determination
                                         is made within 45 days of the end of that Fiscal Year) upon the occurrence of certain
                                         specified events, in addition to any otherwise applicable vesting or performance conditions
                                         of an Award. Such specified events shall include, but shall not be limited to, any of:
                                         (a) the Participant’s failure to accept the terms of the Award Agreement,
                                         violation of material Company and Affiliate policies, breach of noncompetition, confidentiality,
                                         nonsolicitation, noninterference, corporate property protection or other agreements that
                                         may apply to the Participant, or other conduct by the Participant that is detrimental
                                         to the business or reputation of the Company and Affiliates; (b) the Participant’s
                                         misconduct, fraud, gross negligence; and (c) the restatement of the financial statements
                                         of the Company that resulted in Awards which should not have vested, settled, or been
                                         paid had the original financial statements been properly stated.

 

Except as expressly
otherwise provided in this Plan or an Award Agreement, the termination and the expiry of the period within which an Award will
vest and may be exercised by a Participant shall be based upon the last day of actual service by the Participant to the Company
and specifically does not include any period of notice that the Company may be required to provide to the Participant under applicable
employment law.

 

		18.2	Legend.
                                         The certificates for Shares may include any legend that the Committee deems appropriate
                                         to reflect any restrictions on transfer of such Shares.

 

		18.3	Delivery
                                         of Title. The Company shall have no obligation to issue or deliver evidence of title
                                         for Shares issued under the Plan prior to:

 

		18.3.1	Obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable; and 

 

		18.3.2	Completion of any registration or other qualification of the
Shares under any applicable law or ruling of any governmental body that the Company determines
to be necessary or advisable. 

 

		18.4	Investment
                                         Representations. The Committee may require each Participant receiving Shares pursuant
                                         to an Award under this Plan to represent and warrant in writing that the Participant
                                         is acquiring the Shares for investment and without any present intention to sell or distribute
                                         such Shares.

 

		18.5	Uncertificated
                                         Shares. To the extent that the Plan provides for issuance of certificates to reflect
                                         the transfer of Shares, the transfer of such Shares may be effected on a noncertificated
                                         basis to the extent not prohibited by applicable law or the rules of any applicable stock
                                         exchange.

 

		18.6	Unfunded
                                         Plan. Participants shall have no right, title or interest whatsoever in or to any
                                         investments that the Company or an Affiliate may make to aid it in meeting its obligations
                                         under the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions,
                                         shall create or be construed to create a trust of any kind, or a fiduciary relationship
                                         between the Company or an Affiliate and any Participant, beneficiary, legal representative
                                         or any other person. Awards shall be general unsecured obligations of the Company, except
                                         that if an Affiliate executes an Award Agreement instead of the Company the Award shall
                                         be a general unsecured obligation of the Affiliate and not any obligation of the Company.
                                         To the extent that any individual acquires a right to receive payments from the Company
                                         or an Affiliate, such right shall be no greater than the right of an unsecured general
                                         creditor of the Company or Affiliate, as applicable. All payments to be made hereunder
                                         shall be paid from the general funds of the Company or Affiliate, as applicable, and
                                         no special or separate fund shall be established and no segregation of assets shall be
                                         made to assure payment of such amounts except as expressly set forth in the Plan.

    	 	27	 

     

    

		18.7	No
                                         Fractional Shares. No fractional Shares shall be issued or delivered pursuant to
                                         the Plan or any Award Agreement. In such an instance, unless the Committee determines
                                         otherwise, fractional Shares and any rights thereto shall be forfeited or otherwise eliminated.

 

		18.8	Other
                                         Compensation and Benefit Plans. Nothing in this Plan shall be construed to limit
                                         the right of the Company or an Affiliate to establish other compensation or benefit plans,
                                         programs, policies or arrangements. Except as may be otherwise specifically stated in
                                         any other benefit plan, policy, program or arrangement, no Award shall be treated as
                                         compensation for purposes of calculating a Participant’s rights under any such
                                         other plan, policy, program or arrangement.

 

		18.9	No
                                         Constraint on Corporate Action. Nothing in this Plan shall be construed (i) to limit,
                                         impair or otherwise affect the Company’s or an Affiliate’s right or power
                                         to make adjustments, reclassifications, reorganizations or changes in 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 (ii) to limit the right or power of the
                                         Company or an Affiliate to take any action which such entity deems to be necessary or
                                         appropriate.

 

		18.10	Compliance
                                         with Canadian Securities Laws. All Awards and the issuance of Shares underlying such
                                         Awards issued pursuant to the Plan will be issued pursuant to an exemption from the prospectus
                                         requirements of Canadian securities laws where applicable.

 

ARTICLE 19

LEGAL CONSTRUCTION

 

		19.1	Gender
                                         and Number. Except where otherwise indicated by the context, any masculine term used
                                         herein also shall include the feminine, the plural shall include the singular, and the
                                         singular shall include the plural.

 

		19.2	Severability.
                                         In the event any provision of this Plan shall be held illegal or invalid for any reason,
                                         the illegality or invalidity shall not affect the remaining parts of the Plan, and the
                                         Plan shall be construed and enforced as if the illegal or invalid provision had not been
                                         included.

 

		19.3	Requirements
                                         of Law. The granting of Awards and the issuance of Shares under the Plan shall be
                                         subject to all applicable laws, rules and regulations, and to such approvals by any governmental
                                         agencies or securities exchanges as may be required. The Company or an Affiliate shall
                                         receive the consideration required by law for the issuance of Awards under the Plan.

 

The inability of the
Company or an Affiliate to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company
or an Affiliate to be necessary for the lawful issuance and sale of any Shares hereunder, shall relieve the Company or Affiliate
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.

    	 	28	 

     

    

		19.4	Governing
                                         Law. The Plan and each Award Agreement shall be governed by the laws of the Province
                                         of Ontario excluding any conflicts or choice of law rule or principle that might otherwise
                                         refer construction or interpretation of the Plan to the substantive law of another jurisdiction.

 

		19.5	Compliance
                                         with Section 409A of the Code.

 

		19.5.1	To the extent the Plan is applicable to a particular Participant
subject to the Code, it is intended that this Plan and any Awards made hereunder shall not provide for the payment of “deferred
compensation” within the meaning of Section 409A of the Code or shall be structured in a manner and have such terms and conditions
that would not cause such a Participant to be subject to taxes and interest pursuant to Section 409A of the Code. This Plan and
any Awards made hereunder shall be administrated and interpreted in a manner consistent with this intent.

 

		19.5.2	To the extent that any amount or benefit in favour of a Participant
who is subject to the Code would constitute “deferred compensation” for purposes of Section 409A of the Code would
otherwise be payable or distributable under this Plan or any Award Agreement by reason of the occurrence of a Change of Control
or the Participant’s disability or separation from service, such amount or benefit will not be payable or distributable to
the Participant by reason of such circumstance unless: (i) the circumstances giving rise to such Change of Control, disability
or separation from service meet the description or definition of “change in control event,” “disability,”
or “separation from service,” as the case may be, in Section 409A of the Code and applicable proposed or final
Treasury regulations thereunder, and (ii) the payment or distribution of such amount or benefit would otherwise comply with
Section 409A of the Code and not subject the Participant to taxes and interest pursuant to Section 409A of the Code.
This provision does not prohibit the vesting of any Award or the vesting of any right to eventual payment or distribution of any
amount or benefit under this Plan or any Award Agreement.

 

The Committee shall use its reasonable discretion to determine
the extent to which the provisions of this Article 19.5 will apply to a Participant who is subject to taxation under the ITA.

 

 

 

29

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