Document:

Exhibit

Exhibit 10(y)

NORTHROP GRUMMAN INNOVATION SYSTEMS
DEFINED CONTRIBUTION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
As Amended and Restated Effective January 1, 2019

Statement of Plan

The Northrop Grumman Innovation Systems Defined Contribution Supplemental Executive Retirement Plan (the "Plan") is hereby amended and restated effective as of January 1, 2019.  Prior to January 1, 2019, the Plan was named the Orbital ATK, Inc. Defined Contribution Supplemental Executive Retirement Plan, and was maintained by Northrop Grumman Innovation Systems, Inc. (formerly Orbital ATK, Inc.).  Effective January 1, 2019, Northrop Grumman Corporation maintains and sponsors the Plan.
Effective January 1, 2019, the Plan is frozen, and no benefits shall accrue under this Plan with respect to compensation earned for services performed after December 31, 2018.  Except to the extent modified by Appendix A hereto, the terms of the Plan in effect on December 31, 2018 shall continue to govern.

This Plan is intended (1) to comply with section 409A of the Internal Revenue Code, as amended (the "Code") and official guidance issued thereunder, and (2) to be "a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees" within the meaning of sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974. Notwithstanding any other provision of this Plan, this Plan shall be interpreted, operated and administered in a manner consistent with these intentions.

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ARTICLE 1
Definitions

For the purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following indicated meanings:

1.1        “Account Balance” shall mean, with respect to a Participant, an entry on the records of the Employer equal to the sum of the Participant’s Annual Accounts under this Plan. The Account Balance shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

1.2        “Administrator” shall mean the Company, the Committee, and any person or committee of persons responsible for performing administrative functions under this Plan.

1.3        “Annual Accounts” shall mean, with respect to a Participant, an entry on the records of the Employer equal to the following amount, the sum of: (i) the Participant’s Company 401(k)  NEC  Contribution  Amount  and  the  Company  401(k)  Matching  Contribution Amount for any one Plan Year, plus (ii) amounts credited or debited to such amounts pursuant to this Plan, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Annual Accounts for such Plan Year. The Annual Accounts shall be bookkeeping entries only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

1.4        “Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 5, that are entitled to receive benefits under this Plan upon the death of a Participant.

1.5        “Beneficiary Designation Form” shall mean the form, which may be in electronic format, established from time to time by the Senior Vice President of Human Resources that a Participant  completes,  signs  and  returns  to  the  Company  to  designate  one  or  more Beneficiaries.

1.6        “Benefit Distribution Date” shall mean the date that triggers distribution of a Participant’s vested Account Balance.

A Participant’s Benefit Distribution Date shall be the earliest to occur of any one of the following:

(a)        If the Participant experiences a Termination of Employment, his or her Benefit Distribution Date shall be the later of (i) the first day of the seventh  month following  the  month  in  which  the  Participant  experiences  a  Termination  of Employment or (ii) the February 1 of the calendar year  following the calendar year in which the Participant experiences a Termination of Employment; or

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(b)        As soon as administratively practicable after the Company is provided with proof that is satisfactory to the Senior Vice President of Human  Resources of the Participant’s death, if the Participant dies prior to the complete distribution of his or her vested Account Balance.

1.7        “Board” shall mean the board of directors of the Company.

1.8        “Claimant” shall have the meaning set forth in Section 11.1.

1.9        “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

1.10      “Committee” shall mean the Compensation and Human Resources Committee of the Board of Directors of the Company or any successor committee of the Board.

1.11      “Company”  shall  mean  ORBITAL,  ATK  INC.,  a  Delaware  corporation,  and  any successor  to  all  or  substantially  all  of  the  Company’s  assets  or  business.    Prior to February 9, 2015, the Company was known as Alliant Techsystems, Inc.

1.12      “Company Contribution Account” shall mean (i) the sum of the Participant’s Company 401(k) NEC Contributions and Company 401(k) Matching Contributions under this Plan, plus (ii) amounts credited or debited to the Participant’s Company Contribution Account in accordance with this Plan, less (iii) all distributions made to the Participant or his or her  Beneficiary  pursuant  to  this  Plan  that  relate  to  the  Participant’s  Company Contribution Account

1.13      “Company  Contribution  Amounts”  shall  mean,  for  any  one  Plan  Year,  the  amount determined in accordance with Section 3.1.

1.14      “Company  401(k)  Matching  Contributions”  shall  mean  the  sum of  the  Participant’s Company 401(k) Matching Contribution Amounts under this Plan for all Plan Years.

1.15      “Company 401(k) Matching Contribution Amounts” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.1(b).

1.16      “Company 401(k) NEC Contributions” shall mean the sum of the Participant’s Company 401(k) NEC Contribution Amounts under this Plan for all Plan Years.

1.17      “Company 401(k) NEC Contribution Amounts” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.1(a).

1.18      “Deduction Limitation” shall mean the limitation on a benefit that may otherwise be distributable pursuant to the provisions of this Plan, as set forth in Section 12.15.

1.19      “Employee” shall mean a person who is an employee of any Employer.

1.20      “Employer(s)” shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have employees who participate in the Plan.

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1.21      “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time.

1.22      “401(k) Plan Before Tax Contributions” shall mean elective salary reduction deferral amounts made on a before tax basis on behalf of eligible participants under the 401(k) Plan.

1.23      “401(k) Plan Matching Contributions” shall mean employer contributions made on behalf of eligible participants in the 401(k) Plan, which are based on a specified percentage of the   Participant’s   401(k)   Plan   Before   Tax   Contributions   and   Roth   401(k)   Plan Contributions, if any, under the 401(k) Plan.

1.24      “401(k) Plan NEC” shall mean any non-elective contribution made on behalf of eligible participants under the 401(k) Plan that is based on age and service points.

1.25      “401(k) Plan NEC Percentage” shall mean the percentage of Recognized Compensation used  for  purposes  of  determining  an  eligible  participant’s  401(k)  NEC  (as  may  be amended under the 401(k) Plan from time to time), as applicable, and which is currently one of the following:

	
		
	Points
(As defined in the 401(k) Plan)
	Percentage

	Less than 40
	2.5%

	40 to 59
	3.0%

	60 or more
	4.0%

1.26      “401(k) Plan” shall mean the ORBITAL ATK, INC. 401(k) Plan, as amended from time to time.

1.27      “Investment Election Form” shall mean the form, which may be in electronic  format, established from time to time by the PRC that a Participant completes, signs and returns to the Company to make an election under the Plan.

1.28      “Nonqualified  Deferred  Compensation  Plan”  shall  mean  the  ORBITAL  ATK,  INC. Nonqualified Deferred Compensation Plan, as amended from time to time.

1.29      “Participant” shall mean any Employee who is eligible to participate in the Plan.

1.30      “Plan” shall mean the ORBITAL ATK, INC. Defined Contribution Supplemental Executive Retirement Plan, which shall be evidenced by this instrument, as it may be amended from time to time.  Prior to January 1, 2016, the Plan was named the “ALLIANT TECHSYSTEMS INC.  Defined Contribution Supplemental Executive Retirement Plan.”

1.31      “Plan Year” shall mean a period beginning on January 1 of each calendar year and continuing through December 31 of such calendar year.

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1.32      “PRC” shall mean the ORBITAL ATK Pension and Retirement Committee.

1.33      “Recognized Compensation” shall mean, for the period in which such amounts are paid, Recognized Compensation as defined under the 401(k) Plan (as amended from time to time); provided, however, that in determining a Participant’s Recognized Compensation for purposes of this Plan there shall be included: (i) deferrals under the  Nonqualified Deferred Compensation Plan to the extent that such compensation  would  have been recognized as Recognized Compensation under the 401(k) Plan in the Plan Year that it would have been paid had there been no deferral, and (ii) compensation that would have been recognized as Recognized Compensation under the 401(k) Plan for the Plan Year in which paid without regard to the dollar limitation in effect under section 401(a)(17) of the Code.

1.34      “Roth 401(k) Plan Contributions” shall mean elective salary reduction deferral amounts made on a Roth 401(k) after tax basis on behalf of eligible participants under the 401(k) Plan.

1.35      “Section 16 Officer” shall mean an “officer” of the Company as defined in  the rules promulgated under Section 16 of the Securities Exchange Act of 1934, as amended.

1.36      “Senior Vice President of Human Resources” shall mean the most senior officer of the Company in charge of the human resources function at the time the action is taken with respect to the Plan.

1.37      “Terminate the Plan” or “Termination of the Plan” shall mean a determination  by the Committee that all Participants shall no longer be eligible to participate in the Plan and that Participants shall no longer be eligible to receive Company contributions under this Plan.

1.38      “Termination of Employment” shall mean the separation from service with all Employers and all entities treated as members of the same controlled group with any Employer under Section 414(b) or (c) of the Code, voluntarily or involuntarily, for any reason other than death  or  an  authorized  leave  of  absence.  Controlled  group   membership  shall  be determined by substituting “at least 50 percent” for “at least 80  percent” each place it appears in section 1563(a)(1), (2) and (3) of the Code, and by substituting “at least 50 percent” for “at least 80 percent” each place it appears in Treas. Reg. §1.414(c)-2.

1.39      “Trust” shall mean one or more trusts established by the Company in accordance with Article 10.

1.40      “Vesting Service” shall mean an Employee’s period of “Vesting Service” as determined under the 401(k) Plan.

ARTICLE 2
Eligibility

2.1        Eligibility.  An  employee  of  the  Employer  shall  be  eligible  to  receive  a  credit  in accordance with Section 3.1 for a Plan Year if the employee: (i) is a participant in the 

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401(k) Plan and his or her 401(k) Plan NEC for the Plan Year is reduced by section 401(a)(17) of the Code; (ii) is a participant in the 401(k) Plan and the Nonqualified Deferred Compensation Plan and his or her 401(k) Plan NEC for the Plan Year is reduced due to the employee’s deferrals under the Nonqualified Deferred Compensation Plan, or (iii)  is  a  participant  in  the  401(k)  Plan  whose  combined  401(k)  Plan  Before  Tax Contributions and Roth 401(k) Plan Contributions under the 401(k) Plan equal or exceed the “applicable dollar amount” under Section 402(g)(i)(B) of the Code for a given Plan Year  and  whose  Recognized  Compensation  for  that  Plan  Year  exceeds  the  annual compensation limit in effect for such Plan Year under Section 401(a)(17) of the Code.

2.2        Termination of a Participant’s Eligibility. In the event that a Participant is no  longer eligible  to  receive  credits  under  this  Plan,  the  Participant’s  Account  Balance  shall continue to be governed by the terms of this Plan until such time as  the  Participant’s Account Balance is paid in accordance with the terms of this Plan.

ARTICLE 3
Company Contribution Amounts; Vesting; Crediting; Taxes

3.1        Company Contribution Amounts. The Company shall make contributions to the Plan as follows:

(a)        Company 401(k) NEC Contribution Amounts. If a Participant is eligible for a 401(k) Plan NEC for any Plan Year, a Participant’s Company 401(k) NEC  Contribution Amount under this Plan for that Plan Year shall be equal to:

(1)        a credit equal to the Participant’s 401(k) Plan NEC Percentage multiplied by the Participant’s Recognized Compensation for the Plan Year, if any, in excess of the annual compensation limit in effect for such Plan Year under section 401(a)(17) of the Code; and

(2)        a credit equal to the Participant’s 401(k) Plan NEC Percentage multiplied by the Recognized Compensation, if any, the Participant deferred under the Nonqualified Deferred Compensation Plan to the  extent that such compensation    would    have    been    recognized     as     “Recognized Compensation” under the 401(k) Plan in the Plan Year that it would have been paid had there been no deferral under the  Nonqualified Deferred Compensation Plan.

(b)        Company 401(k) Matching Contribution Amounts. If a Participant’s 401(k) Plan Before Tax and Roth 401(k) Plan Contributions to the 401(k) Plan equal or exceed the maximum “applicable dollar amount” as in effect under Section 402(g)(i)(B) of the Code for a given Plan Year (without regard to any additional “catch up” contributions  permitted under Section 414(v) of the Code), the Participant’s Company 401(k)  Matching Contribution Amount under this Plan for the Plan Year shall be equal to four and one-half percent (41⁄2%) of the Participant’s Recognized Compensation for the Plan Year, if any, in excess of the annual compensation limit in effect for such Plan Year under Section 401(a)(17) of the Code. If the Participant has not contributed the maximum applicable dollar amount in effect under Code §402(g) for the Plan Year, the Participant’s 

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Company 401(k) Matching Contribution Amount under this Plan for the Plan Year is zero (0).

3.2        Crediting of Amounts after Benefit Distribution. Notwithstanding any provision in this Plan  to  the  contrary,  if  the  complete  distribution  of  a  Participant’s  vested  Account Balance occurs prior to the date on which any portion of the Company  Contribution Amount would otherwise be credited to the Participant’s Account Balance, such amounts shall not be credited to the Participant’s Account Balance, but shall  be  paid to the Participant in a single lump sum as soon as administratively practicable after the amount can be determined.

3.3        Vesting. If a Participant either dies, attains age 65 or becomes Totally Disabled (as defined in the 401(k) Plan) while employed by the Company, he or she  shall be fully (100%) vested in his or her Account Balance under the Plan. In addition, all Participants who are actively employed by the Company shall become fully (100%) vested in their Account Balance under the Plan if the Company experiences a “Change in Control” (as defined in the Orbital ATK, Inc. Pension & Retirement Plan).

Otherwise, a Participant shall become vested in his or her Company NEC Contributions under this Plan (adjusted as provided in Sec. 3.4 herein) in accordance with the following schedule:

	
		
	Years of Vesting Service Completed
	NEC Vested Percentage

	Less than three
	0%

	Three or more
	100%

Also, a Participant shall otherwise become vested in his or her Company Matching Contributions under this Plan (adjusted as provided in Sec. 3.4 herein) in accordance with the following schedule:

	
		
	Years of Vesting Service Completed
	Matching Contribution 
Vested Percentage

	Less than one
	0%

	One or more
	100%

Notwithstanding the foregoing, all benefits under this Plan shall be permanently forfeited upon the determination by the Committee for that the Participant, either before or after Termination of Employment:

(a)        engaged in a criminal or fraudulent conduct resulting in material harm to the Company or an affiliate of the Company; or

(b)        made an unauthorized disclosure to any competitor of any material confidential information, trade information or trade secrets of the Company or an affiliate of the Company; or

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(c)        provided  Company  or  an  affiliate  of  Company  with  materially  false  reports concerning his or her business interests or employment; or

(d)        made materially false representations which are relied upon by Company or an affiliate   of   Company   in   furnishing   information   to   an   affiliate,   partner, stockholders,   accountants,   auditor,   a   stock   exchange,   the   Securities   and Exchange Commission or any regulatory or governmental agency; or

(e)        maintained an undisclosed, unauthorized and material conflict of interest in the discharge of the duties owed by him or her to the Company or an affiliate of the Company; or

(f)         engaged  in  conduct  causing  a  serious  violation  of  state  or  federal  law  by Company or an affiliate of Company; or

(g)        engaged  in  theft  of  assets  or  funds  of  the  Company  or  an  affiliate  of  the Company; or

(h)        has been convicted of any crime which directly or indirectly arose out of his her employment relationship with the Company or an affiliate of the  Company or materially  affected  his  or  her  ability  to  discharge  the  duties  of  his  or  her employment with the Company or an affiliate of the Company; or

(i)         engaged during his or her employment with an Employer or within two (2) years after termination of employment with an Employer in any employment with a competitor, or engaged in any activity in competition with the Company, without the consent of the Company.

3.4        Crediting and Debiting of Account Balances. In accordance with, and subject to, the rules and procedures that are established from time to time by the PRC, amounts shall be credited or debited to a Participant’s Account Balance in accordance with the following rules:

(a)        Measurement Funds. The Participant may elect one or more of the measurement funds selected by the PRC, in its sole discretion, which are  based on certain mutual funds or other collective investment vehicles (the “Measurement Funds”), for the purpose of crediting or debiting additional amounts to his or her Account Balance.  As necessary, the PRC may, in its sole discretion,  discontinue, substitute or add a Measurement Fund.  Notwithstanding the above, no Measurement Fund shall be based primarily on common stock or other securities of the Company.

(b)        Election of Measurement Funds. A Participant, in connection with his or her initial commencement of participation in the Plan, shall elect, on the Investment Election Form, one or more Measurement Fund(s) (as described in Section 3.4(a) above) to be used to determine the amounts to be credited or debited to his or her Account Balance. If a Participant does not elect any of the 

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Measurement Funds as described in the previous sentence, the Participant’s Account Balance shall automatically be allocated into the Measurement Fund as determined by the PRC from time to time, in its sole discretion. The Participant may (but is not required to) elect, by submitting an Investment Election Form to the Company that is accepted by the Company, to add or delete one or more Measurement Fund(s) to be used to determine the amounts to be credited or debited to his or her Account Balance, or to change the portion of his or her Account Balance allocated to each previously or newly elected Measurement Fund.  If  an  election  is  made  in accordance with the previous sentence, it shall apply as of the first business day that  is  administratively  practicable,   and   shall  continue  thereafter  for  each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the previous sentence.

(c)        Proportionate Allocation. In  making any election described in  Section  3.4(b) above,  the  Participant  shall  specify  on  the  Investment   Election  Form,  in increments of 1%, the percentage of his or her Account Balance or Measurement Fund, as applicable, to be allocated/reallocated.

(d)        Crediting or Debiting Method. The  performance  of each  Measurement  Fund (either positive or negative) will be determined on a daily  basis based on the manner in which such Participant’s Account Balance has  been hypothetically allocated among the Measurement Funds by the Participant.

(e)        No Actual Investment. Notwithstanding any other provision of this Plan that may be  interpreted  to  the  contrary,  the  Measurement  Funds  are  to  be  used  for measurement   purposes   only,   and   a   Participant’s   election   of   any   such Measurement Fund, the allocation of his or her Account Balance  thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Account Balance shall not be considered or  construed in any manner as an actual investment of his or her Account  Balance in any such Measurement Fund. In the event that the Company or the Trustee (as that term is defined in the Trust), in its own discretion, decides to invest funds in any or all of the investments on which the Measurement Funds are based, no Participant shall have any rights in or to such investments themselves.  Without  limiting  the foregoing, a Participant’s Account Balance shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trust; the Participant shall at all times remain an unsecured creditor of the Company.

3.5        FICA and Other Taxes.

(a)        Company Contribution Account.  When  a  Participant’s  Annual   Account  is credited with a Company Contribution Amount (or, if such amount is subject to a vesting  schedule,  when  such  Participant  is  vested  in  such   amount),  the Participant’s  Employer(s)  shall  withhold,  in  a  manner   determined  by  the Employer(s), the Participant’s share of FICA and other  employment taxes on such Company Contribution Amount. If necessary, the Company may reduce 

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the vested portion of the Participant’s Company Contribution Account, as applicable, in order to comply with this Section 3.5.

(b)        Distributions. The Participant’s Employer(s), or the trustee of the  Trust, shall withhold from any payments made to a Participant under this Plan  all federal, state and local income, employment and other taxes required to be withheld by the Employer(s), or the trustee of the Trust, in connection with such payments, in amounts  and  in  a  manner  to  be  determined  in  the  sole  discretion  of  the Employer(s) and the trustee of the Trust.

ARTICLE 4
Distribution of Benefits

4.1        Benefit Distribution Date.  A Participant who  dies  or  experiences  a  Termination  of Employment shall receive his or her vested Account Balance, calculated as of the close of business on the Participant’s Benefit Distribution Date. If the calculation date is not a business day, then such calculation shall be made on the immediately preceding business day.

4.2        Actual Payment Date. The Account Balance shall be paid to the Participant  (or the Participant’s Beneficiary(ies), as applicable) in a lump sum payment no later than 60 days after  the  Participant’s  Benefit  Distribution  Date  in  the  event  of  a  Termination  of Employment, and in the event of death, no later than the later of 90 days after the date of death or the last day of the calendar year in which death occurs.

4.3        Payment in Cash. Payment of a Participant’s Account Balance shall be made in cash.

ARTICLE 5
Beneficiary Designation

5.1        Beneficiary. Each Participant shall have the right, at any time, to designate  his  or her Beneficiary(ies) (both primary as well as contingent) to receive any  benefits  payable under  the  Plan  to  a  beneficiary  upon  the  death  of  a  Participant.  The  Beneficiary designated  under  this  Plan  may  be  the  same  as  or  different  from  the  Beneficiary designation under any other plan of an Employer in which the Participant participates.

5.2        Beneficiary Designation; Change; Spousal Consent. A Participant shall designate his or her  Beneficiary  by  completing  and  signing  the  Beneficiary  Designation  Form,  and returning it to the Company. A Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the  Beneficiary Designation Form and the Company’s rules and procedures, as in effect from time to time.  If the Participant names someone other than his or her spouse as a Beneficiary, the Senior Vice President of Human Resources may, in his or her sole discretion, determine that spousal consent is required to be provided in a form designated by the Senior Vice President of Human Resources, executed by such Participant’s spouse and returned to the Company. Upon the acceptance by the Company of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled. The Company shall be entitled to rely on the last 

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Beneficiary Designation Form filed by the Participant and accepted by the Company prior to his or her death.

5.3        Receipt. No designation or change in designation of a Beneficiary shall be effective until received by the Company in accordance with rules established by the Company.

5.4        No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 5.1, 5.2 and 5.3 above or, if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant’s benefits, then the Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse. If the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to  a  Beneficiary  shall  be  payable  to  the  executor  or  personal  representative  of  the Participant’s estate.

5.5        Doubt as to Beneficiary. If the Senior Vice President of Human Resources has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, he or she shall have the right, exercisable in his or her discretion, to cause the Participant’s Employer to withhold such payments until this matter is resolved to his or her satisfaction.

5.6        Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary (as the Beneficiary is determined by the Senior Vice President of Human Resources) shall fully and completely discharge the Company, the Employer, the Committee, the PRC and the Vice President of Human Resources from all further obligations under  this Plan with respect to the Participant.

ARTICLE 6
Leave of Absence

6.1        Paid Leave of Absence. If a Participant is authorized by the Participant’s Employer to take a paid leave of absence from the employment of the Employer, the Participant shall remain in the Plan until the Participant becomes eligible for the benefits as provided in Article 4 in accordance with the provisions of that Article.

6.2        Unpaid Leave of Absence. If a Participant is authorized by the Participant’s Employer to take an unpaid leave of absence from the employment of the Employer for any reason, the Participant shall remain in the Plan until the Participant becomes eligible for the benefits as provided in Article 4 in accordance with the provisions of that Article.

ARTICLE 7
Termination of Plan, Amendment or Modification

7.1        Termination of Plan. Although the Company anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that the Company will continue the Plan or will not terminate the Plan at any time in the future. Accordingly, the Company reserves the right to Terminate the Plan (as defined in Section 1.37). In the event of a Termination of the Plan, the Measurement Funds available to Participants following the Termination of the Plan shall be comparable in number and type to those Measurement 

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Funds available to Participants in the Plan Year preceding the Plan Year  in which the Termination of the Plan is effective. Following a Termination of the Plan,  Participant Account Balances shall remain in the Plan until the Participant becomes eligible for the benefits provided in Article 4 in accordance with the  provisions of that Article. The Termination of the Plan shall not adversely affect any Participant or Beneficiary who has become  entitled  to  the  payment  of  any  benefits  under  the  Plan  as  of  the  date  of termination; provided, however, the Company shall have the right, in its sole discretion, and  notwithstanding  any  elections  made  by  the  Participant,  to  immediately  pay  all benefits in a lump sum following such Termination of the Plan, if (i)(A) Termination is not proximate to a downturn in the financial health of the Company, (B) the Company terminates all arrangements required to be  aggregated with the Plan pursuant to Code Section 409A, (C) lump sum payments are made between 12 and 24 months following Termination of the Plan, and (D) the Company does not establish a new plan that would have been aggregated with the Plan for purposes of Code Section 409A within three years following Termination of the Plan, or (ii) Termination is in connection with dissolution or change in control of the Company, or such other circumstances permitted by applicable guidance, and in accordance with such other corresponding conditions required by Code Section 409A and regulations or other guidance issued thereunder.

7.2        Amendment.

(a)        The Committee may, at any time, amend or modify the Plan in whole or in part.  Notwithstanding the foregoing, no amendment shall be effective to decrease the value of a Participant’s vested Account Balance in existence at the time the amendment is made. In no event shall the Company, the Employer, the PRC or the Committee be responsible for any decline in a Participant’s Account Balance as a result of the selection, discontinuation, addition, substitution, crediting or debiting of the Measurement Funds pursuant to Section 3.4.

(b)        Notwithstanding any provision of the Plan to the contrary, in the event that the Committee  determines  that  any  provision  of  the  Plan  may  cause  amounts deferred under the Plan to become immediately taxable to any Participant under Code Section 409A, and related guidance, the Committee  may (i) adopt such amendments  to  the  Plan  and  appropriate  policies  and  procedures,  including amendments and policies with retroactive effect, that the Committee determines necessary  or  appropriate  to  preserve  the  intended  tax  treatment  of  the  Plan benefits provided by the Plan and/or (ii) take such other actions as the Committee determines necessary or appropriate to comply with the requirements of Code Section 409A, and related guidance.

7.3        Effect of Payment. The full payment of the Participant’s vested Account Balance under Article 4 of the Plan shall completely discharge all obligations to a Participant and his or her designated Beneficiaries under this Plan.

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ARTICLE 8
Administration

8.1        Committee Duties.  Except  as  otherwise  provided  in  this  Plan,  this  Plan  shall  be administered  by  the  Committee.  The  Committee  shall  also  have  the  discretion  and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for  the  administration  of this  Plan  and  (ii)  decide  or  resolve  any  and  all  questions including interpretations of this Plan, as may arise in connection  with  the Plan. When making a determination or calculation, the Company, Committee and the Senior Vice President of Human Resources, as applicable, shall be entitled to  rely on information furnished by a Participant.

8.2        Agents. In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit  (including  acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to any Employer.

8.3        Binding Effect of Decisions. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.

8.4        Indemnity.  All  Employers  shall  indemnify  and  hold  harmless  the  members  of  the Committee, the PRC, the Senior Vice President of Human Resources, any Employee to whom duties have been or may be delegated under this Plan, and the  Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of an  individual’s willful misconduct.

8.5        Employer Information. To enable the Committee and/or Administrator to perform its functions, the Company and each Employer shall supply full and timely information to the Committee and/or Administrator, as the case may be, on all matters relating to the compensation of its Participants, the date and circumstances of the death or Termination of Employment of its Participants, and such other pertinent information as the Committee or Administrator may reasonably require.

ARTICLE 9
Other Benefits and Agreements

9.1        Coordination with Other Benefits.  The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees  of the Participant’s Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

13

ARTICLE 10
Trust

10.1      Establishment of the Trust. In order to provide assets from which to fulfill the obligations of the Participants and their beneficiaries under the Plan, the Company may establish a trust by a trust agreement with a third party, the trustee, to which each Employer may, in its discretion, contribute cash or other property to provide for the benefit payments under the Plan, (the “Trust”).

10.2      Interrelationship of the Plan and the Trust. The provisions of the Plan shall govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the Trust shall govern the rights of the Employers, Participants and the creditors of the Company to the assets transferred to the Trust. The Company shall at all times remain liable to carry out its obligations under the Plan.

10.3      Distributions From the Trust. The Company’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the Company’s obligations under this Plan.

ARTICLE 11
Claims Procedures

11.1      Presentation of Claim. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

11.2      Notification of Decision. The Committee shall consider a Claimant’s claim within a reasonable time, but no later than 90 days after receiving the claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 90-day period. In no event shall such extension exceed a period of 90 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Committee expects to render the benefit determination.  The Committee shall notify the Claimant in writing:

(a)        that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or

(b)        that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:

14

(i)         the specific reason(s) for the denial of the claim, or any part of it;

(ii)        specific reference(s) to pertinent provisions of the Plan upon which such denial was based;

(iii)       a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary;

(iv)       an explanation of the claim review procedure set forth in Section 11.3 below; and

(v)        a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.

11.3      Review of a Denied Claim. On or before 60 days after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Committee a written request for a review of the denial of the claim. The Claimant (or the Claimant’s duly authorized representative):

(a)        may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits;

(b)        may submit written comments or other documents; and/or

(c)        may request a hearing, which the Committee, in its sole discretion, may grant.

11.4      Decision on Review. The Committee shall render its decision on review promptly, and no later than 60 days after the receipt of the Claimant’s written request for a review of the denial of the claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 60-day period. In no event shall such extension exceed a period of 60 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Committee expects to render the benefit determination. In rendering its decision, the Committee shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The decision must be written in a manner calculated to be understood by the Claimant, and it must contain:

(a)        specific reasons for the decision;

(b)        specific reference(s) to the pertinent Plan provisions upon which the decision was based;

15

(c)        a statement that the Claimant is entitled to receive, upon request and  free of charge, reasonable access to and copies of, all documents, records  and  other information  relevant  (as  defined  in  applicable  ERISA   regulations)   to  the Claimant’s claim for benefits; and

(d)        a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a).

11.5      Legal Action. A Claimant’s compliance with the foregoing provisions of this Article 11 is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claim for benefits under this Plan. Any legal action must be brought within two years after the Claimant knew or should have known of the principal facts on which the claim  is  based  or,  if  earlier,  90  days  after  the  procedure  under  this  Article  11  is completed.

11.6      Determinations. Benefits under the Plan will be paid only the Committee decides in its discretion that the applicant is entitled to them. The Committee has discretionary authority to grant or deny benefits under the Plan. The Committee shall have the sole discretion, authority and responsibility to interpret and construe this Plan Statement and all relevant documents and information, and to determine all factual and legal questions under the Plan, including but not limited to the entitlement of all persons to benefits and the amounts of their benefits.  The Committee’s discretionary authority shall include all matters arising under the Plan.

ARTICLE 12
Miscellaneous

12.1      Status of Plan. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that “is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly  compensated  employees”  within  the  meaning  of  ERISA  Sections  201(2), 301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted (i) to the extent possible in a manner consistent with that intent and (ii) in accordance with Code Section 409A and other applicable tax law, including but not limited to Treasury Regulations promulgated pursuant to Code Section 409A.

12.2      Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of the Company. For purposes of the payment of benefits under this Plan, any and all of the Company’s assets shall be, and remain, the general, unpledged unrestricted assets of the Company. The Company’s obligation under the Plan shall  be  merely that of an unfunded and unsecured promise to pay money in the future.

12.3      Employer’s  Liability.  The  Company’s  liability  for  the  payment  of  benefits  shall  be defined only by the Plan. The Company shall have no obligation to a Participant under the Plan except as expressly provided in the Plan.

12.4      Nonassignability. Neither a Participant nor any other person shall have any  right to commute,  sell,  assign,  transfer,  pledge,  anticipate,  mortgage  or  otherwise  

16

encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or  separate maintenance owed by a Participant or any other person, be transferable by  operation of law in the event of a Participant’s or any other person’s bankruptcy or  insolvency or be transferable to a spouse as a result of a property settlement or otherwise (including without limitation any domestic relations order, whether or not a  “qualified domestic relations order” under section 414(p) of the Code and section 206(d) of ERISA) before the Account Balance is distributed to the Participant or Beneficiary.

12.5      Not a Contract of Employment. The terms and conditions of this Plan shall  not be deemed to constitute a contract of employment between the Company or any Employer and  the  Participant.  Such  employment  is  hereby  acknowledged  to  be  an  “at  will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement. Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of the Company or any Employer or to interfere with the right of the Company or any Employer to discipline or discharge the Participant at any time.

12.6      Furnishing Information. A Participant or his or her Beneficiary will cooperate with the Company by furnishing any and all information requested by the Company and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such  physical examinations as the Company may deem necessary.

12.7      Terms. Whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply.

12.8      Captions.  The  captions  of  the  articles,  sections  and  paragraphs  of  this  Plan  are  for convenience only and shall not control or affect the meaning or construction of any of its provisions.

12.9      Governing Law. Subject to ERISA, the provisions of this Plan shall be  construed and interpreted according to the internal laws of the State of Minnesota without regard to its conflicts of laws principles.

12.10    Notice. Any notice or filing required or permitted to be given to the Company under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

17

Northrop Grumman Corp.
Attn: Vice President, Compensation and Benefits
2980 Fairview Park Drive
Falls Church, VA 22042

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

12.11    Successors.  The  provisions  of  this  Plan  shall  bind  and  inure  to  the  benefit  of  the Company  and  its  successors  and  assigns  and  the  Participant  and  the  Participant’s designated Beneficiaries.

12.12    Spouse’s Interest. The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited  to  such spouse’s will, nor shall such interest pass under the laws of intestate succession.

12.13    Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal or invalid provision had never  been inserted herein.

12.14    Incompetent.  If  the  Senior  Vice  President  of  Human  Resources  determines  in  its discretion that a benefit under this Plan is to be paid to a minor, a person  declared incompetent  or  to  a  person  incapable  of  handling  the  disposition  of  that  person’s property,  he  or  she  may  direct  payment  of  such  benefit  to  the   guardian,  legal representative or person having the care and custody of such minor,  incompetent or incapable person. The Senior Vice President of Human Resources may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount.

12.15    Deduction Limitation on Benefit Payments. The Company may determine that as a result of the application of the limitation under Code Section 162(m), a distribution payable to a Participant pursuant to this Plan would not be deductible if such distribution were made at the time required by the Plan. If the Company makes such a determination, then the distribution shall not be paid to the Participant until such time  as the distribution first becomes deductible. The amount of the distribution shall  continue to be adjusted in accordance with Section 3.4 above until it is distributed to the Participant. The amount of the distribution, plus amounts credited or debited thereon, shall be paid to the Participant or his or her Beneficiary (in the event of the Participant’s death) at the earliest possible date, as determined by the Company, on which the deductibility of compensation paid or payable  to  the  Participant  for  the  taxable  year  

18

of  the  Company  during  which  the distribution  is  made  will  not  be  limited  by  Section  162(m).  Notwithstanding the foregoing, the Committee shall interpret this provision in a manner that is consistent with Code Section 409A and other applicable tax law, including but not limited to guidance issued after the effective date of this Plan.

12.16    Insurance. The Company, on its own behalf or on behalf of the trustee of the Trust, and, in its sole discretion, may apply for and procure insurance on the life of the Participant, in such amounts and in such forms as the Trust may choose. The Company or the trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such insurance.  The  Participant  shall  have  no  interest  whatsoever  in  any  such  policy  or policies, and at the request of the Company shall submit to medical  examinations and supply  such  information  and  execute  such  documents  as  may  be  required  by  the insurance company or companies to whom the Company has applied for insurance.

***********************

IN WITNESS WHEREOF, this Amendment and Restatement is hereby executed by a duly authorized officer on this 18th day of December, 2018.

NORTHROP GRUMMAN INNOVATION SYSTEMS

By:  /s/ Beth Pitts-Madonna    
Beth Pitts-Madonna
Vice President, Human Resources and
Administration

19

APPENDIX A
Provisions Applicable Effective January 1, 2019

Effective January 1, 2019, the Plan is frozen, and no benefits shall accrue under this Plan with respect to compensation earned for services performed after December 31, 2018.  
Notwithstanding anything herein to the contrary, effective January 1, 2019:
1.    The term “Company” shall mean Northrop Grumman Corporation.
2.    Except as provided in section 9 of this Appendix A, the term “Committee” shall mean the Company’s Benefit Plans Administrative Committee.
3.    The term “PRC” shall mean the Company’s Benefit Plans Investment Committee.
4.    The term “Plan” shall mean the Northrop Grumman Innovation Systems Defined Contribution Supplemental Executive Retirement Plan.
5.    No individual shall become a Participant in the Plan after December 31, 2018.
6.    No Company Contribution Amounts, 401(k) NEC Contribution Amounts or 401(k) Matching Contribution Amounts shall be credited to any Participant for any Plan Year beginning after December 31, 2018.
7.    The Company’s Vice President, Compensation & Benefits shall have all authority and discretion to interpret the terms of the Plan.
8.    References in Section 7.2 of the Plan to the “Committee” shall mean Northrop Grumman Corporation. 
Except to the extent modified by this Appendix A, the terms of the Plan as amended and restated effective January 1, 2019 shall continue to govern.

20CounterPath Corporation - Exhibit 4.8 - Filed by newsfilecorp.com

 

 

 

 

 

 

COUNTERPATH CORPORATION 

EMPLOYEE SHARE PURCHASE PLAN 

 

 

 

 

 

 

 

 

 

 

Adopted October 1, 2008 

Amended November 6, 2008, October 22, 2009, September 10,
2015, November 2, 2015 and October 22, 2018

COUNTERPATH CORPORATION 

EMPLOYEE SHARE PURCHASE PLAN 

Table of Contents 

	1.
      	Purpose
      of the Plan 	2
      
	 	 	 
	2.
      	Definitions
      	3
      
	 	 	 
	3.
      	Eligibility
      for Membership in the Plan 	5
      
	 	 	 
	4.
      	Contributions
      	6
      
	 	 	 
	5.
      	Dividend
      and Interest Payments and Voting Rights 	7
      
	 	 	 
	6.
      	Purchase
      of Shares 	8
      
	 	 	 
	7.
      	Vesting
      of Contributions 	8
      
	 	 	 
	8.
      	Withdrawals,
      Transfers, Sales and Suspensions 	9
      
	 	 	 
	9.
      	Distribution
      on Retirement, Termination of Employment or Death 	10
      
	 	 	 
	10.
      	Distribution
      of Benefits on Termination of Membership 	10
      
	 	 	 
	11.
      	Amendment
      or Termination of Plan 	11
      
	 	 	 
	12.
      	Trustee
      	12
      
	 	 	 
	13.
      	Administration
      	13
      
	 	 	 
	14.
      	Market
      Fluctuation and Selling of Shares 	13
      
	 	 	 
	15.
      	Miscellaneous
      Provisions 	13
      

	Appendix
      A – Form of Election to Purchase Shares 	16
      
	 	 
	Appendix
      B – Form of Instrument Changing Employee Contribution Level 	17
      
	 	 
	Appendix
      C – Form of Withdrawal, Transfer or Sale of Shares 	18
      
	 	 
	Appendix
      D – Form of Instrument Suspending Contributions 	20
      
	 	 
	Appendix
      E – Form of Instrument Resuming Contributions 	21
      
	 	 
	Appendix
      F – Form of Instrument Cancelling Participation 	22
      

	1. 	
      PURPOSE OF THE PLAN

	1.1 	
      The Company hereby establishes a share purchase plan (the
      “Plan”) for the Employees of the Company and its Subsidiaries.

	 	 
	1.2 	
      Subject to all required regulatory approvals, this Plan
      shall be effective as of and from October 1, 2008 (the “Commencement
      Date”) until the Expiry Date, unless earlier terminated as provided
      herein.

	 	 
	1.3 	
      The purpose of this plan is to give employees of the
      Company access to another equity participation vehicle by way of an
      opportunity to purchase common shares of the Company through payroll
      deductions and encourage them to use their combined best efforts on behalf
      of the Company to improve its profits through increased sales, reduction
      of costs and increased efficiency.

2 

	2. 	
      DEFINITIONS

	2.1 	
      In this Plan, the following terms shall have the meanings
      set forth below.

	 	(a) 	
      “Account(s)” means one or more of a Cash Account, an RRSP
      Account, or a TFSA Account created by the Trustee for a Participant, in
      which the assets held by the Trustee for such Participant under the terms
      of this Plan are held and recorded.

	 	 	 
	 	(b) 	
      “Acquirer” means the successor to all or substantially
      all of the assets or capital shares of the Company, or any other successor
      of the business of the Company as determined by the Board of Directors, in
      either case pursuant to a Change of Control, and includes the affiliated
      entities of any such successor;

	 	 	 
	 	(c) 	
      “Basic Compensation” means the base salary received by an
      Employee in the applicable Pay Period but does not include, without
      limitation, overtime pay, commissions, bonus payments, or the value of
      other benefits or amounts contributed by the Company under this
    Plan.

	 	 	 
	 	(d) 	
      “Board of Directors” means the board of directors of the
      Company, or if the Board of Directors has delegated administration of the
      Plan to a compensation committee, then “Board of Directors” shall mean
      such compensation committee.

	 	 	 
	 	(e) 	
      “Business Day” means any day other than a Saturday,
      Sunday or statutory or civic holiday on which chartered banks in
      Vancouver, British Columbia are open for business.

	 	 	 
	 	(f) 	
      “Cash Account” means an account, which is not a
      registered retirement savings plan account, created by the Trustee for a
      Participant in which the assets subject to this Plan are held and
      recorded.

	 	 	 
	 	(g) 	
      “Cessation Date” means the date that the Participant
      ceases for any reason (other than death or Retirement, but otherwise
      including, without limitation, resignation, Disability, or termination of
      employment with or without cause), to render Service to the Company or a
      Subsidiary; provided, that, notwithstanding any other term or provision of
      this Plan, in the event of the termination of the Participant’s Service
      without cause, the Cessation Date shall be the date the Participant is
      given actual notice of termination by the Company or a Subsidiary, without
      reference to any period of notice of termination to which the Participant
      may be entitled at law or pursuant to any employment agreement, whether or
      not such termination has been effected in accordance with applicable
      law.

	 	 	 
	 	(h) 	
      “Change of Control” means (i) a merger, amalgamation,
      consolidation, reorganization or arrangement of the Company with or into
      another corporation (other than a merger, amalgamation, consolidation,
      reorganization or arrangement of the Company with one or more of its
      related entities (as defined in NI 45-106); (ii) a tender offer for all or
      substantially all of the outstanding common shares of the Company; (iii)
      the sale of all or substantially all of the assets of the Company; or (iv)
      any other acquisition of the business of the Company as determined by the
      Board of Directors.

	 	 	 
	 	(i) 	
      “Commencement Date” has the meaning set forth in Section
      1.2 of this Plan.

	 	 	 
	 	(j) 	
      “Company” means CounterPath Corporation, and any
      successor company resulting from the amalgamation of the Company and any
      other company or other entity resulting from any other form of corporate
      reorganization thereof.

	 	 	 
	 	(k) 	
      “Disability” means the inability of the Participant to
      engage in substantial gainful activity by reason of a medically
      determinable physical or mental impairment (which state shall
  be determined by the Company on the basis of such medical
      evidence as the Company deems warranted in the circumstances).

3 

	 	(l) 	
      “Election to Purchase Shares” means an election,
      substantially in the form as set forth in Appendix A hereto, setting out
      the terms of an Employee’s election to participate in, and purchase Shares
      under, the Plan.

	 	 	 
	 	(m) 	
      “Employee” means a person (including a resident of the
      United States or outside of North America) under a permanent full-time or
      part-time contract of employment with the Company or a Subsidiary who
      participates in the Company’s or any of its Subsidiaries’ regular benefit
      plans (which fact shall be determined exclusively by the Board of
      Directors) including, without limitation, any such person who is also an
      officer or a director of the Company or a Subsidiary.

	 	 	 
	 	(n) 	
      “Expiry Date” means October 1, 2028.

	 	 	 
	 	(o) 	
      “Exchange” means the Toronto Stock Exchange in the case
      of shares purchased in Canada and the NASDAQ in the case of shares
      purchased in the United States or any other share exchange upon which the
      Shares are then listed and traded.

	 	 	 
	 	(p) 	
      “form” means any paper-based, web-based or any other
      electronic form as determined by the Company from time to time and
      includes the forms attached hereto which may be delivered, executed or
      otherwise completed in a method determined by the Company including the
      determination that such delivery, execution or completion be by way of any
      electronic or web- based means.

	 	 	 
	 	(q) 	
      “Insider” has the meaning set forth in the Securities Act
      and includes associates and affiliates (as such terms are defined by the
      Exchange) of the Insider.

	 	 	 
	 	(r) 	
      “Market Price” means the closing trading price of the
      Shares on the Exchange on such date in question, or, if Shares were not
      traded on such date on the Exchange, then on the preceding trading day
      during which a trade occurred.

	 	 	 
	 	(s) 	
      “Matching Assets” means all dividends and other assets
      allocated to a Participant’s Account on account of the Matching
    Shares.

	 	 	 
	 	(t) 	
      “Matching Shares” means Shares issued by the Company, or
      purchased by the Trustee on behalf of the Company, as contemplated by
      Section 4.2 of this Plan.

	 	 	 
	 	(u) 	
      “NI 45-106” means National Instrument 45-106 – Prospectus
      Exemptions, promulgated under the Securities Act, as such instrument may
      be amended from time to time, or any successor instrument
  thereto;

	 	 	 
	 	(v) 	
      “Participant” means any eligible Employee (as determined
      solely by the Board of Directors) who has elected to participate in the
      Plan, who has submitted an Election to Purchase Shares and who has not
      subsequently withdrawn from the Plan.

	 	 	 
	 	(w) 	
      “Participant Assets” means all dividends and other assets
      allocated to a Participant’s Account on account of the Participant
      Shares.

	 	 	 
	 	(x) 	
      “Participant Shares” means Shares purchased by the
      Trustee on behalf of the Participant with monies contributed by the
      Participant.

	 	 	 
	 	(y) 	
      “Pay Period” means the normal weekly, bi-weekly or
      monthly pay period as determined by the Company from time to
  time.

4 

	 	(z) 	
      “Payroll Administrator” means, initially, ADP and
      thereafter the Payroll Administrator selected by the Company, and the
      successor or successors thereto from time to time.

	 	 	 
	 	(aa) 	
      “Purchase Price” means, on any particular day with
      reference to Shares, the volume weighted average trading price of the
      Shares on the Exchange for the five trading days immediately preceding the
      end of the month in question as determined by the Company.

	 	 	 
	 	(bb) 	
      “Retirement” means retirement at age sixty-five (65) or
      older.

	 	 	 
	 	(cc) 	
      “RRSP Account” means a registered retirement savings plan
      account.

	 	 	 
	 	(dd) 	
      “Securities Act” means the Securities Act (British
      Columbia), as the same may be amended from time to time.

	 	 	 
	 	(ee) 	
      “Service” means continuous service to the Company or any
      of its Subsidiaries as an Employee.

	 	 	 
	 	(ff) 	
      “Share Compensation Arrangement” means a plan or program
      established or maintained by the Company providing for the acquisition of
      securities of the Company as compensation or as an incentive or benefit
      for services provided to the Company.

	 	 	 
	 	(gg) 	
      “Shares” means the common shares in the capital of the
      Company as presently constituted; provided that upon any subdivision,
      consolidation or reorganization of such shares or other change in the
      corporate structure or share capital of the Company, “Shares” shall mean
      such ordinary shares as are subdivided, consolidated, reorganized or
      changed, with such adjustment in the number thereof as may be thereby
      deemed appropriate by the Company.

	 	 	 
	 	(hh) 	
      “Subsidiary” means a corporation (located in Canada, the
      United States or outside of North America) or other entity which is
      controlled by the Company. For the purposes of this definition, the
      Company controls a body corporate or other entity
if:

	 	(i) 	
      in the case of a body
corporate:

	 	A. 	
      securities of the body corporate to which are attached
      more than 50% of the votes that may be cast to elect directors of the body
      corporate are held, other than by way of security only, by or for the
      benefit of the Company, and

	 	 	 
	 	B. 	
      the votes attached to those securities are sufficient, if
      exercised, to elect a majority of the directors of the body corporate;
      and

	 	(ii) 	
      in the case of an entity other than a body corporate,
      more than 50% of the voting or equity interests of such entity are
      controlled, directly or indirectly, by or for the benefit of the
      Company.

	 	(ii) 	
      “TFSA Account” means a tax-free savings
account.

	 	 	 
	 	(jj) 	
      “Trustee” means the agent or agents of the Plan appointed
      by the Company in accordance with Section 12.1 of this Plan, and the
      successor or successors thereto from time to
time.

	3. 	
      ELIGIBILITY FOR MEMBERSHIP IN THE
  PLAN

	3.1 	
      The Plan is open to all eligible Employees (as determined
      solely by the Board of Directors) at any time after the Employee has
      completed his/her probationary employment period with the Company subject
      to the rules set forth below. Participation in the Plan is entirely
      voluntary.

5 

	 	(a) 	
      Enrolment. An Employee shall become a Participant
      by duly executing and delivering to the Company an Election to Purchase
      Shares; provided that, the Participant’s participation in the Plan shall
      only be effective on the first day of the first Pay Period following the
      date that is thirty (30) days after such Election to Purchase Shares is
      received by the Company. The Election to Purchase Shares authorizes the
      Company or a Subsidiary, as applicable, to make regular payroll deductions
      for contributions to the Plan in respect of Participants.

	 	 	 
	 	(b) 	
      Termination of Employment. Participation in the
      Plan shall cease on the Cessation Date (in the event that the
      Participant’s Service is terminated for any reason other than death or
      Retirement) or the death or Retirement of the Employee, whichever is first
      to occur.

	 	 	 
	 	(c) 	
      Re-Employment. Except in cases of leave of absence
      approved in writing by the Company or a Subsidiary, a former Employee who
      is subsequently re-employed by the Company or a Subsidiary shall be
      considered a new Employee for the purposes of the Plan.

	 	 	 
	 	(d) 	
      Leave of Absence. A Participant who is on leave of
      absence or is absent due to illness or Disability shall not be permitted
      to make any contribution for that period of absence; during that period of
      absence, such Participant shall be deemed to remain in the employ of the
      Company or a Subsidiary for all other purposes of the Plan.

	 	 	 
	 	(e) 	
      Election to Purchase Shares. Each Employee who
      requests information about the Plan shall have delivered to him or her a
      copy of the Plan together with an Election to Purchase Shares to become a
      Participant. Execution of an Election to Purchase Shares by the Employee
      and admittance by the Company of the Employee as a Participant shall be
      deemed to be an acceptance by the Employee of the terms and forms of the
      Plan without further action or other formality.

	 	 	 
	 	(f) 	
      Plan Shares. The Participant Shares that may be
      purchased by the Trustee from the Company on behalf of the Participants,
      and, the Matching Shares that may be issued by the Company to the Trustee
      on behalf of the Participants, in accordance with the terms of the Plan at
      any time, shall be authorized and unissued Shares of the Company in an
      amount up to but not exceeding an aggregate of 220,000 Shares, and such
      number of Shares shall be set aside for the purposes of the Plan. The
      Company reserves the right to allocate Shares to Participants on a
      pro-rata basis should the number of Shares to be purchased or issued under
      the Plan exceed 220,000 Shares.

	 	 	 
	 	(g) 	
      Price of Shares. The price at which Participant
      Shares purchased from the Company and Matching Shares issued by the
      Company in accordance with the terms hereof shall be the Purchase Price or
      the price at which purchased on the open
market.

	4. 	
      CONTRIBUTIONS

	4.1 	
      Employee
Contributions.

	 	(a) 	
      Each Participant shall contribute through payroll
      deductions to the Plan in each Pay Period, at the Participant’s option as
      designated by the Participant, an amount equal to or between the following
      minimum and maximum amounts (in whole percentages
only):

	 	(i) 	
      a minimum of one percent (1%) of the Participant’s Basic
      Compensation; and

	 	 	 
	 	(ii) 	
      a maximum of six percent (6%) of the Participant’s Basic
      Compensation.

	 	(b) 	
      If a Participant is resident in Canada, a Participant
      shall be permitted to contribute Participant Shares and Matching Shares to
      such Participant’s RRSP Account or TFSA Account. The Participant is solely
      responsible for ensuring that contributions made to the Plan do not exceed
      the maximum dollar limit under the Income Tax Act (Canada) for
      contributions to registered retirement savings plans. For greater
      certainty, neither the Company nor any Subsidiary nor
the Trustee shall be responsible for any taxes or penalties
      that result from a breach of the maximum dollar limit under the Income Tax
      Act (Canada).

6 

	 	(c) 	
      The Company or a Subsidiary, as agent of the Participant,
      shall make (or direct the Payroll Administrator to make) the payroll
      deductions required by the terms of the Plan and pay (or direct the
      Payroll Administrator to pay) the Participant’s contribution to the
      Trustee in accordance with Section 4.1(e) below, and the Company, its
      Subsidiaries and each Payroll Administrator is authorized by the
      Participant to do so by such Participant’s execution of an Election to
      Purchase Shares.

	 	 	 
	 	(d) 	
      The Participant may change his or her contribution level
      twice in any 12 month period by filing a form with the Company,
      substantially in the form as set forth in Appendix B hereto (or other
      applicable form as provided by the Trustee), indicating the change to the
      Company, at least 30 days prior to the applicable effective date of such
      change.

	 	 	 
	 	(e) 	
      On the last day Business Day of each month, the Company
      shall (or shall direct the Payroll Administrator to) forward all monies
      deducted from Participants by means of payroll deductions (as provided in
      Section 4.1 hereof), to the Trustee who shall hold such monies for the
      benefit of each of the Participants (subject to the provisions of Section
      7 hereof). The Trustee shall maintain a separate Account or Accounts for
      each Participant to which shall be credited all of such Participant’s
      contributions.

	4.2 	
      Corporate Contribution. On the last Business Day
      of each month, the Company will either (1) forward monies equal to fifty
      (50%) of the Participant’s contributions such that the Trustee may acquire
      Matching Shares equal to fifty (50%) of the aggregate number of
      Participant Shares purchased by the Trustee on behalf of the Participants
      for such month as set out in Section 6 herein, or (2) issue to the Trustee
      that number of Matching Shares equal to fifty (50%) of the aggregate
      number of Participant Shares purchased by the Trustee on behalf of the
      Participants for such month. All Matching Shares so issued or purchased
      shall be immediately released and transferred to the Participant’s Cash
      Account, RRSP Account, or TFSA Account, as directed by the Participant,
      for the benefit of the Participant.

	 	 
	4.3 	
      Tax Treatment of Contributions. The tax
      ramifications for Participants participating in the Plan will depend on a
      number of factors, including whether or not a Participant elects to
      purchase Shares pursuant to the Plan in an RRSP, TFSA, 401K, or other
      Account. Participants should note that income tax laws are subject to
      change and such changes may affect the tax treatment of the Plan and the
      Participant’s individual tax treatment. Participants should consult their
      tax advisors to determine their individual tax treatment in connection
      with their participation in the Plan. The Corporation will withhold
      appropriate income taxes and other required withholdings on the basis of
      each Participant’s actual salary.

	 	 
	4.4 	
      Costs and Expenses. The Company or its
      Subsidiaries shall pay all administration expenses in connection with the
      operation of the Plan, including, without limitation, all commissions for
      purchases of Shares. Commissions, taxes and all governmental or other
      charges in connection with sales, as well as all charges for or associated
      with any transfers, withdrawals or personal administrative requests, are
      payable by the Participant who orders the transaction for his or her
      Account.

	5. 	
      DIVIDEND AND INTEREST PAYMENTS AND VOTING
      RIGHTS

	5.1 	
      Dividends and Interest. Dividends on Shares will
      be allocated to the appropriate Accounts by the Trustee upon receipt of
      such amounts by the Trustee. Cash dividends are reinvested in the Shares
      as soon as possible subject to available trading volumes. Contributions
      are withheld by the Trustee without interest or benefit accruing to the
      Participant.

	 	 
	5.2 	
      Reports and Voting. The Trustee will deliver to
      each Participant, as promptly as practicable, by mail or otherwise, all
      notices of meetings, proxy statements and other material distributed by
      the Company to its shareholders. There is no charge to the Participants
      for the Trustee’s retention of share certificates, or
in connection with the notices, proxies or other such
      material. The full Shares in each Participant’s Account shall be voted in
      accordance with such Participant’s signed proxy instructions duly
      delivered. In the absence of such instructions, the Shares will not be
      voted. In the alternative, the Trustee may sign a proxy granting a
      Participant a right to vote, on behalf of the Trustee, the Shares held by
      the Trustee in the Participant’s Account.

7 

	6. 	
      PURCHASE OF SHARES

	6.1 	
      Purchase of Participant Shares. On the last
      Business Day of each month, the Trustee shall pool all contributions
      received from the Participants and the Company during such month and shall
      forthwith, at the written direction of the Company,
  either:

	 	(a) 	
      subscribe for and purchase from the Company such number
      of Participant Shares, at the Purchase Price, that those contributions can
      buy; or

	 	 	 
	 	(b) 	
      purchase through a stock broker on the open market
      through the facilities of the Exchange such number of Participant Shares,
      at the price on the open market, that those contributions can buy;
      provided that if such purchase cannot be completed within fifteen (15)
      days, then the Trustee shall purchase the Participant Shares from the
      Company as provided for in Section 6.1(a)
hereof.

		
      Such direction by the Company to the Trustee shall be and
      remain effective until the Company provides a subsequent direction to the
      Trustee. The Company shall pay all brokers’ commissions, or similar fees,
      incurred in connection with any purchases of Shares by the Trustee. The
      Company shall have no control over the timing or price of Participant
      Shares purchased on the open market in accordance with Section
    6.1(b).

	 	 
	6.2 	
      Issuance of Matching Shares. On the last Business
      Day of each month, if applicable, the Company shall issue to the Trustee
      such number of Matching Shares equal to fifty (50%) of the aggregate
      number of Participant Shares purchased by the Trustee pursuant to Section
      6.1 above.

	 	 
	6.3 	
      Share Certificates. Certificates or an applicable
      book entry representing the Shares purchased, issued or otherwise received
      by the Trustee pursuant to the Plan shall be registered in the name of the
      Trustee and shall be held by the Trustee for the benefit of the Company
      and the Participants in accordance with the terms of this Plan.

	 	 
	6.4 	
      Crediting of Shares to Accounts. The monthly
      aggregate number of Shares purchased by the Trustee with the contributions
      made by the Participants shall be allocated by the Trustee to each Account
      of the Participants, in proportion to the contributions made by or on
      behalf of the Participant. If applicable, the monthly aggregate number of
      Matching Shares issued by the Company to the Trustee shall be allocated by
      the Trustee to each Account of the Participants, as being attributable to
      the Participant in respect to whom such Matching Shares were issued.
      Allocations of fractional shares shall be permitted.

	 	 
		
      Stock dividends, stock splits, or both, as applicable, in
      respect of Shares that are held in the Participant’s Account will be
      credited to the Account without charge. Distributions of other securities
      (except pursuant to a merger, consolidation or other reorganization of the
      Company) and rights to subscribe may be sold and the proceeds will be
      handled in the same manner as a cash dividend.

	7. 	
      VESTING OF
CONTRIBUTIONS

	7.1 	
      Participant Shares. All Participant Shares,
      Participant Assets, Matching Shares and Matching Assets shall be fully
      vested immediately upon receipt of such Shares or assets, as applicable,
      by the Trustee.

8 

	7.2 	
      Rights of Matching Shares The Matching Shares
      shall have the same rights (including, without limitation, voting,
      dividend or liquidation rights) as the Company’s common shares and shall
      be eligible for inclusion in an RRSP or TFSA.

	 	 
	7.3 	
      Termination of Service. On the termination of the
      Participant’s Service for any reason: (i) the Participant Shares and
      Participant Assets, and (ii) any and all Matching Shares and Matching
      Assets, shall be dealt with as provided in Section
9.

	8. 	
      WITHDRAWALS, TRANSFERS, SALES AND
    SUSPENSIONS

	8.1 	
      Withdrawal, Transfer or Sale. At the end of any
      month and subject to prior express notice to the Company and the Trustee
      (such notice being in a form as determined by the Company and the
      Trustee), a Participant may withdraw, transfer or sell up to 100% of the
      Shares in such Participant’s Account; provided that during the previous
      twelve (12) calendar months such Participant has not made more than one
      other withdrawal, transfer or sale from the Plan. After obtaining approval
      from the Company for such withdrawal, transfer or sale, the Trustee shall
      satisfy such withdrawal, transfer or sale request by: (i) in the case of a
      withdrawal or transfer request, delivering all Shares (other than
      fractional Shares) requested to be withdrawn or transferred by the
      Participant, held in the Participant’s Account, to the Participant or such
      third party as designated by the Participant, and (ii) in the case of a
      sale, by selling all Shares (other than fractional Shares) requested to be
      sold by the Participant, held in the Participant’s Account, and distribute
      the cash proceeds to the Participant, less any commissions or fees, as
      applicable, provided that any such sale of Shares is in accordance with
      Section 14.2. No withdrawal or transfer of any cash amount in a
      Participant’s Account shall be permitted as part of a withdrawal or
      transfer of Shares from such Account pursuant to the provisions of this
      Section 8.1. The value of any fractional Shares requested to be withdrawn,
      transferred or sold shall be converted to cash by the Trustee and
      allocated to such Participant’s Account for payment to such
      Participant.

	 	 
		
      If a Participant makes two withdrawals, transfers or
      sales from the Plan in any twelve (12) month period pursuant to the
      provisions of Section 8.1 hereof, then such Participant shall be
      prohibited from making further contributions to, or withdrawals, transfers
      or sales from, the Plan (other than a withdrawal, transfer or sale of the
      remaining assets in such Participant’s Account upon termination of such
      Participant’s membership in the Plan as set forth in Section 10 hereof)
      until the first Business Day of the month following the first anniversary
      of such second withdrawal, transfer or sale. The form to be used by a
      Participant for the withdrawal, transfer or sale of Shares shall be
      substantially in the form as set forth in Appendix C hereto, which shall
      indicate, among other things, the number of Shares such Participant wishes
      to withdraw, transfer or sell and, in the case of a withdrawal or
      transfer, the particulars relating to the registration of the Shares that
      are to be delivered, if any.

	 	 
		
      Notwithstanding the foregoing, the Company, in its sole
      discretion, has the right to vary or amend the number of withdrawals,
      transfers or sales permitted by any Participant in accordance with this
      Section 8.1 based on extenuating circumstances or compassionate grounds.
      Such variance or amendment shall only apply to the Participant in
      question.

	 	 
	8.2 	
      Suspension of Contributions. A Participant may
      elect at any time to suspend contributions to the Plan by giving at least
      thirty (30) days prior express written notice to the Company to that
      effect. During such period of suspension, the rights and obligations of
      such Participant, the Company and its Subsidiaries, and the Trustee shall
      remain in full force and effect. A Participant who has suspended
      contributions under this Section 8.2 may resume contributions to the Plan
      on a subsequent date by express written notice to the Company to that
      effect at least thirty (30) days prior to such date. The form to be used
      by a Participant for such a suspension shall be substantially in the form
      as set forth in Appendix D hereto. The form to be used by a Participant to
      resume contributions to the Plan shall be substantially in the form as set
      forth in Appendix E hereto.

9 

	9. 	
      DISTRIBUTION ON RETIREMENT, TERMINATION OF EMPLOYMENT
      OR DEATH

	9.1 	
      Termination of Employment or Retirement of
      Participant. A Participant whose Service is terminated for any reason
      other than death, or a Participant who retires, must withdraw or otherwise
      transfer all of the Participant Shares, Participant Assets, Matching
      Shares and Matching Assets in the Participant’s Account within ninety (90)
      days of such termination of Service (for greater certainty, the number of
      Matching Shares to be released to the Participant under this Section 9.1
      shall be determined as of the date the actual notice of termination of
      Service is given by the Corporation to the Participant without reference
      to any “notice period” or “severance period” or any other period after the
      date that actual notice of termination of Service is given) or retirement.
      In the absence of specific instructions as to the method of distribution
      or transfer within the said ninety (90) day period, Participant shall be
      deemed to have elected to request that:

	 	(a) 	
      such Shares in the non-registered component of his or her
      Cash Account be transferred to an account in his or her name administered
      by the Trustee (ongoing administration costs being borne by the
      Participant); and

	 	 	 
	 	(b) 	
      if the Participant’s Shares are held in his or her RRSP
      Account, such Shares be transferred to a registered retirement savings
      plan of the former Participant under a group plan trusteed by the Trustee
      (ongoing RRSP administration costs being borne by the Participant);
    and

	 	 	 
	 	(c) 	
      if the Participant’s Shares are held in his or her TFSA
      Account, request such Shares and be transferred to a TFSA of the former
      Participant under a group plan trusteed by the Trustee (ongoing TFSA
      administration costs being borne by the
Participant).

	9.2 	
      Death of Participant. Following the death of a
      Participant, the Shares and other assets in such Participant’s Account
      will be distributed by the Trustee to such Participant’s estate or Account
      beneficiary, if any. The distribution shall be made by the Trustee in
      accordance with the written instructions of the legal representative of
      the Participant’s estate (provided that the Trustee has been provided with
      all relevant supporting documentation that it customarily requires) or by
      the Account beneficiary by:

	 	(a) 	
      the delivery of all Shares (other than any fractional
      Shares) and any cash held in the Participant’s Account;

	 	 	 
	 	(b) 	
      the distribution of cash realized from the sale of such
      Shares by the Trustee;

	 	 	 
	 	(c) 	
      a transfer to another registered retirement savings plan,
      if permitted by law; or

	 	 	 
	 	(d) 	
      a combination thereof.

		
      The value of any fractional Shares shall be distributed
      in cash in an amount equal to the fraction multiplied by the Market Price
      on the Business Day prior to the date of payment. If the legal
      representative of the Participant’s estate or Account beneficiary fails to
      make an election within ninety (90) days of the Participant’s death, then
      the Trustee shall make delivery in accordance with the provisions set
      forth in Section 9.2(a) above.

	 	 
	9.3 	
      Notifications to Trustee. The Company shall notify
      the Trustee in writing upon the Retirement, termination of employment or
      death of a Participant.

	10. 	
      DISTRIBUTION OF BENEFITS ON TERMINATION OF
      MEMBERSHIP

	10.1 	
      Cancellation of Participation. A Participant may
      cancel his or her Election to Purchase Shares at any time by express
      notice of cancellation delivered to and receipted for by the Company and
      the Trustee (such notice being in a form as determined by the Company and
      the Trustee). Upon receipt of such notice of cancellation, the Trustee
      shall return to the Participant the appropriate portion of the
      Participant’s Account in the manner set out in Section 9.1 hereof. Payment
      thereof shall constitute a discharge of the
Company’s and its Subsidiaries’ obligations to the Participant
      under the Plan. If a Participant cancels his or her Election to Purchase
      Shares under the Plan, then the Participant shall not be entitled to
      rejoin or otherwise participate in such Plan until the first anniversary
      of such cancellation. The form to be used by a Participant to cancel his
      or her Election to Purchase Shares shall be substantially in the form as
      set forth in Appendix F hereto.

10 

	11. 	
      AMENDMENT OR TERMINATION OF
PLAN

	11.1 	
      Amendment or Termination. The Company reserves the
      right to discontinue use of payroll deductions at any time such action is
      deemed advisable, in its sole discretion. The Plan may be amended, altered
      or discontinued by the Company at any time, subject to obtaining: (i) any
      necessary approval of any applicable regulatory authority including,
      without limitation, the Exchange if the Shares are listed on the Exchange
      or any other stock exchange or market on which the Shares are then listed
      or admitted to trading; and (ii) if required by the rules of the Exchange
      if the Shares are listed on the Exchange, the approval of the shareholders
      of the Company in accordance with the rules, regulations and policies of
      the Exchange at a duly constituted meeting of shareholders (“Shareholder
      Approval”). Notwithstanding the foregoing, the following amendments to the
      Plan may be made by the Board without Shareholder
  Approval:

	 	(a) 	
      amendments of a technical, clerical or “housekeeping”
      nature, or to clarify any provision of the Plan, including without
      limiting the generality of the foregoing, any amendment for the purpose of
      curing any ambiguity, error or omission in the Plan or to correct or
      supplement any provision of the Plan that is inconsistent with any other
      provision of the Plan;

	 	 	 
	 	(b) 	
      suspension or termination of the Plan;

	 	 	 
	 	(c) 	
      amendments to respond to changes in legislation,
      regulations, instruments (including NI 45- 106), stock exchange rules
      (including the rules, regulations and policies of the Exchange) or
      accounting or auditing requirements;

	 	 	 
	 	(d) 	
      amendments respecting administration of the
  Plan;

	 	 	 
	 	(e) 	
      any amendment to the definition of “Employee”;

	 	 	 
	 	(f) 	
      any amendment to the definition of
“Subsidiary”;

	 	 	 
	 	(g) 	
      changes to the vesting provisions for any outstanding
      Matching Shares;

	 	 	 
	 	(h) 	
      amendments to the Participant contribution provisions of
      the Plan;

	 	 	 
	 	(i) 	
      amendments to the withdrawal and suspension provisions of
      the Plan;

	 	 	 
	 	(j) 	
      amendments to the number or percentage of Matching Shares
      contributed by the Company;

	 	 	 
	 	(k) 	
      amendments to the termination provisions of the
    Plan;

	 	 	 
	 	(l) 	
      adjustments to reflect stock dividends, stock splits,
      reverse stock splits, share combinations or other alterations of the
      capital stock of the Company; and

	 	 	 
	 	(m) 	
      any other amendment, whether fundamental or otherwise,
      not requiring shareholder approval under applicable law (including,
      without limitation, the rules, regulations and policies of the
      Exchange).

Shareholder Approval will be required
for the following types of amendments: 

11 

	 	(i) 	
      amendments to the number of Shares issuable under the
      Plan, including an increase to the fixed maximum number of Shares or a
      change from a fixed maximum number of Shares to a fixed maximum
      percentage; and

	 	 	 
	 	(ii) 	
      amendments required to be approved by shareholders under
      applicable law (including, without limitation, the rules, regulations and
      policies of the Exchange).

		
      In the event of any conflict between subsections (a) to
      (m) and subsections (i) to (ii), above, the latter shall prevail to the
      extent of any conflict.

	 	 
		
      In the event of any amendment or termination of the Plan
      in accordance with this Section 11, such amendment or termination will not
      result in the forfeiture of any funds deducted from the Basic Compensation
      of any Participant, or any dividends or other distributions in respect of
      the Participant Shares, effective before the effective date of amendment
      or termination of the Plan. In the event of any termination, each
      Participant shall be entitled to 100% of the Participant Shares,
      Participant Assets, Matching Shares and Matching Assets in the
      Participant’s Account as of the date of such termination, which shall be
      distributed to each Participant within ninety (90) days following
      termination of the Plan.

	 	 
	12. 	
      TRUSTEE

	12.1 	
      The Company shall designate the Trustee to open and
      maintain Accounts for the benefit of the Participants and to arrange for
      purchases of the Participant Shares and receipt of the Matching Shares.
      The Company may, in its discretion, substitute another corporation as
      Trustee under the Plan and the Trustee may terminate its services,
      provided such substitution or termination, as the case may be, shall be on
      ninety (90) days notice given by the party effecting the action.

	 	 
	12.2 	
      The Trustee is authorized and directed by the Company and
      the Participants to purchase Participant Shares and receive Matching
      Shares, provided that the Trustee has been provided with the contributions
      and necessary payroll information. The Trustee agrees to make such
      purchases of Participant Shares as soon as such contributions are
      received, and if such Participant Shares are being purchased on the open
      market subject to the trading volume of the Shares. Participant Shares
      shall be allocated absolutely, and Matching Shares shall be allocated
      subject to the terms and provisions of the Plan (including without
      limitation Section 7.2 hereof) by the Trustee to such Participant’s
      Account.

	 	 
	12.3 	
      The Trustee shall maintain an Account for each
      Participant showing a record of the assets held in each such Participant’s
      Account under the Plan, and the interest accrued thereon, if any. The
      Trustee shall furnish to the Participants a summary by way of a
      password-protected web-page containing the following
  information:

	 	(a) 	
      the total amount of the contributions made by such
      Participant; and

	 	 	 
	 	(b) 	
      the number of Shares in such Participant’s
  Account.

		
      Each such statement shall be deemed to have been accepted
      by the Participant as correct unless written notice to the contrary shall
      have been received by the Trustee within three (3) months of the date of
      such statement.

	 	 
	12.4 	
      The Trustee shall be protected in acting and relying upon
      any written notice, certificate, confirmation, request, waiver, consent,
      receipt, statutory declaration or other paper or document (collectively
      referred to as the “Documents”) furnished to it and signed by any person
      required to or entitled to execute and deliver to the Trustee any such
      Documents in connection with any action or omission of the Trustee
      hereunder, not only as to its due execution and the validity and
      effectiveness of the Documents’ provisions, but also as to the truth and
      accuracy of any information therein contained, which the Trustee in good
      faith believes to be genuine.

12 

	12.5 	
      No amendment, change or modification to the Plan shall be
      made which will, without the Trustee’s consent, alter the duties of the
      Trustee under the Plan.

	13. 	
      ADMINISTRATION

	13.1 	
      The Trustee shall act on behalf of the Company and its
      Subsidiaries in the day-to-day administration of the Plan.

	 	 
	13.2 	
      Subject to the provisions of the Plan, the Company shall
      be authorized to interpret the Plan and to establish, amend and rescind
      any rules and regulations relating to the Plan and to make all other
      determinations necessary or advisable for the administration of the Plan.
      The Company may correct any defect, supply any omission and reconcile any
      inconsistency in the Plan and, to the extent it shall be deemed desirable
      by the Company, to carry it into effect. The determinations of the Company
      in the administration of the Plan, as described herein, shall be final and
      conclusive. The Company shall provide the Trustee with written notice of
      any amendments or changes to the Plan as described
  herein.

	14. 	
      MARKET FLUCTUATION AND SELLING OF
  SHARES

	14.1 	
      THERE IS NO GUARANTEE UNDER THE PLAN AGAINST LOSS OF
      VALUE OF THE SHARES. IN SEEKING THE BENEFITS OF PARTICIPATION IN THE PLAN,
      AN EMPLOYEE MUST ACCEPT THE RISK OF A DECLINE IN THE MARKET PRICE OF THE
      SHARES AND THE TOTAL LOSS OF HIS OR HER INVESTMENT IN THE SHARES.
      Neither the Company nor its Subsidiaries nor the Trustee will bear any
      responsibility for any loss that may occur as a result of such market
      fluctuation or otherwise. Neither the Company nor its Subsidiaries nor the
      Trustee makes any representation or warranty that the Shares are suitable
      investments for any particular eligible Employee. Subject to Section 6,
      any purchase or sale of the Shares or any other security by the Trustee
      provided for in this Plan may be at such price or prices and at such time
      or times for the purchase or sale of such Shares or securities, as are
      readily available on the Exchange. Subject to Section 6, neither the
      Trustee nor the Company nor its Subsidiaries shall be liable for the
      failure to purchase or sell the Shares or any other securities at any
      particular price, time or at all.

	 	 
	14.2 	
      Issuance and Selling of Shares. No Shares issued
      to the Participant, or on behalf of the Participant, may be sold by the
      Participant, or on behalf of the Participant, unless such sale is in
      accordance with all applicable securities laws and the Company’s insider
      trading policy in effect from time to time. Accordingly, the Trustee shall
      obtain the approval of the Company for each sale by or on behalf of a
      Participant to ensure compliance with all applicable securities laws and
      the Company’s insider trading policy.

	15. 	
      MISCELLANEOUS
PROVISIONS

	15.1 	
      The fiscal year of the Plan shall coincide with the
      Company’s fiscal year end.

	 	 
	15.2 	
      Subject to Section 12.5, the Company reserves the right,
      at any time, to make rules regarding the interpretation, implementation
      and organization of the Plan, to prescribe, modify, amend or rescind the
      provisions of this Plan or to suspend this Plan; provided that no
      prescription, modification, amendment, rescission or suspension shall
      deprive a Participant of benefits vested in the Participant under the Plan
      or divert the use of the funds in the Accounts for purposes other than the
      exclusive benefit of the Participants.

	 	 
	15.3 	
      Participants shall provide to the Company, its
      Subsidiaries and the Trustee any information that might be required of
      them in the administration of this Plan.

	 	 
	15.4 	
      Neither this Plan nor any Trustee agreement entered into
      between the Company and the Trustee pursuant to this Plan shall give any
      Employee the right to be employed, or to continue to be employed, by the
      Company or any of its Subsidiaries.

13 

	15.5 	
      No right or interest of any Participant in or under this
      Plan shall be subject to assignment, sale, transfer, pledge, encumbrance
      or charge, in whole or in part, either directly or by operation of law or
      otherwise in any manner otherwise than by death or mental incompetency,
      and shall be exercisable, during the Participant’s lifetime, only by the
      Participant. No attempted assignment, sale, transfer, pledge, encumbrance
      or charge thereof shall be effective and any attempt to do so shall be
      void. Any attempt to violate the provisions of this Section 15.5 shall be
      deemed a decision by the Participant to terminate participation in this
      Plan whereupon all of the Employee’s contributions credited to a violating
      Participant’s Account shall be immediately refunded to the Participant and
      the Participant shall no longer be considered a participant in the Plan.
      The Company shall notify the Trustee in writing of the need for such a
      refund.

	 	 
	15.6 	
      No Participant or any other person shall have any right
      in or to any part of the corpus or income of the Accounts of the Plan, or
      any part of the assets thereof (including, without limitation, the
      assignment of any part of the Plan as a pledge or collateral for any loan
      or debt), except as and when and to the extent expressly provided by the
      Plan.

	 	 
	15.7 	
      Participation in the Plan will not give any Participant
      any right or claim to any payment except as such payment is provided for
      under the provisions of the Plan and only to the extent that assets are
      available in the hands of the Trustee for the making of such payment and
      to the extent provided for in the Plan.

	 	 
	15.8 	
      Any act or matter to be taken or decided by the Company
      under the Plan may be taken by or decided by the Board of Directors or the
      Company unless otherwise expressly set forth in this Plan.

	 	 
	15.9 	
      The laws of the Province of British Columbia shall apply
      to this Plan, any amendments thereto, and the administration thereof, and
      all rights and obligations thereunder shall be determined in accordance
      with such laws and according to such Province.

	 	 
	15.10 	
      Any purchase, sale or offering of Shares under the Plan
      shall be made on the express condition that an application to purchase
      Shares may not be made, nor may the purchase of any Shares thereunder be
      effected, under circumstances which would constitute a violation of any
      applicable securities or other law or regulation or any listing
      requirement, by-law or regulation of the Exchange or any other stock
      exchange on which the Shares are listed. The operation of the Plan may be
      suspended at any time, in the discretion of the Company, if necessary to
      ensure compliance with any applicable securities or other law or
      regulation or any listing requirement, by-law or regulation of the
      Exchange or any other stock exchange on which the Shares are listed or
      proposed to be listed. The Shares under the Plan may not be offered, sold,
      transferred, pledged hypothecated or otherwise assigned in the United
      States or any other jurisdiction unless pursuant to an available exemption
      under applicable securities laws. The Shares under the Plan have not been
      registered under the United States Securities Act of 1933, as amended, nor
      qualified under or pursuant to the securities or “Blue Sky” laws of any
      state. The Company’s obligation to issue and deliver Shares is subject to
      the availability, on terms and conditions reasonably satisfactory to the
      Company, of an exemption from prospectus and registration requirements in
      respect of the issuance, sale and delivery of such Shares under applicable
      securities and “Blue Sky” laws.

	 	 
	15.11 	
      The Plan is effective beginning on the Commencement Date
      and will terminate on the Expiry Date.

	 	 
	15.12 	
      Nothing contained in this Plan shall restrict or limit or
      be deemed to restrict or limit the rights or power of the Board of
      Directors in connection with any allotment and issuance of any securities
      of the Company.

14 

	15.13 	
      Any word contained herein importing gender shall include
      the masculine and feminine and neuter. All references in this Plan to the
      words “herein”, “hereby”, “hereto”, “hereof”, and words of similar import
      refer to this Plan as a whole and not to any particular Section, schedule
      or appendix unless otherwise stated or the context otherwise
    requires.

ADOPTED as of October 1, 2008, as amended November 6, 2008,
October 22, 2009, September 10, 2015, November 2, 2015 and October 22, 2018.

	 	COUNTERPATH CORPORATION 
	 	 
	 	 
	 	By:          
       /s/ David Karp 
	 	Name:      David Karp
    
	 	Title:        Interim Chief
      Executive Officer 

15 

Appendix A – Form of Election to Purchase Shares

Employee Share Purchase Plan 
effective __________________,
2008 

	To: 	COUNTERPATH CORPORATION
      (the “Company”) 
	  	Attention: Trustee, Employee
      Share Purchase Plan 

           
The undersigned employee acknowledges that he/she has been advised by the
Company of the Company’s employee share purchase plan (the “Plan”) that the
undersigned is eligible to participate in the Plan and that the undersigned has
received a copy of the Plan and has read and understands the terms of the Plan.

           
The undersigned irrevocably accepts the terms, conditions and forms of the Plan
and hereby elects to participate in the Plan and hereby directs and authorizes
the Company to deduct from the undersigned’s salary, by way of payroll deduction
on each Pay Period, the amount (the “Employee Contribution”) of _____% of the
undersigned’s Participant’s Basic Compensation (minimum of 1% of the
undersigned’s Participant’s Basic Compensation, maximum 6% of the undersigned’s
Participant’s Basic Compensation, in whole percentages only). The Employee
Contribution shall be used by the Trustee to purchase common shares (“Shares”)
in the capital of the Company in accordance with the terms and subject to the
conditions of the Plan. 

           
The undersigned hereby authorizes and directs the Trustee to purchase Shares on
behalf of the undersigned in accordance with the terms of the Plan, and directs
that the Shares be allocated by the Trustee to the Participant’s Account. In
consideration of the Company establishing the Plan, the undersigned hereby
irrevocably directs and authorizes the Trustee to carry out and perform the
trusts created by the Plan and to hold the Shares purchased by the Trustee on
behalf of the undersigned in accordance with the terms of the Plan and all of
the rights, privileges and benefits conferred by the Plan for the benefit of the
undersigned, on the terms and subject to the conditions contained in the Plan.

           
In case of the undersigned’s death, the undersigned hereby designates that all
assets then contained in the undersigned’s Account shall be distributed to
______________________ as my beneficiary for such assets. The name of the
trustee, if any, in the event such beneficiary is a minor child is
_______________________. 

           
Whenever used herein, any words or terms not otherwise defined in this Election
to Purchase Shares, but defined in the Plan, shall have the meanings ascribed
thereto in the Plan. 

DATED as of the ______day of ______________, 20_____. 

 

	 	 	 
	(Witness) 	 	(Signature of Employee) 
	 	 	 
	 	 	 
	 	 	(Please Print Name) 
	 	 	 
	 	 	 
	 	 	(Please Print Address) 

16 

Appendix B – Form of Instrument Changing Employee
Contribution Level 
Employee Share Purchase Plan 
effective
__________________, 2008 

	To: 	COUNTERPATH CORPORATION
      (the “Company”) 
	  	Attention: Trustee, Employee
      Share Purchase Plan 

           
The undersigned employee hereby gives notice to, and directs, the Company to
change the undersigned’s contribution to the Company’s employee share purchase
plan (the “Plan”) to _______% of the undersigned’s Participant’s Basic
Compensation (minimum of 1% of the undersigned’s Participant’s Basic
Compensation, maximum 6% of the undersigned’s Participant’s Basic Compensation,
in whole percentages only), to be calculated accordingly and deducted per Pay
Period pursuant to the terms of such Plan. 

           
Whenever used herein, any words or terms not otherwise defined in this
Instrument Changing Employee Contribution Level, but defined in the Plan, shall
have the meanings ascribed thereto in the Plan. 

DATED as of the ______day of ______________, 20_____. 

 

	 	 	 
	(Witness) 	 	(Signature of Employee) 
	 	 	 
	 	 	 
	(Account Number) 	 	(Please Print Name) 
	 	 	 
	 	 	 
	 	 	(Please Print Address) 

17 

Appendix C – Form of Withdrawal, Transfer or Sale of Shares

Employee Share Purchase Plan 
effective __________________,
2008 

	To: 	COUNTERPATH CORPORATION
      (the “Company”), 
		 Attention:
      Trustee, Employee Share Purchase Plan 

In connection with the Company’s employee share purchase plan
(the “Plan”) and pursuant to the terms of the Plan, the undersigned employee
hereby requests to: 

	 	[   ] 	(1) 	
      withdraw Shares from the undersigned’s account and
      register such Shares in the undersigned’s name and delivered to the
      undersigned’s address below; 

	 	  	  	
       

	 	[   ] 	(2) 	
      transfer Shares from the undersigned’s account to ,
      registered as follows ; 

	 	  	  	
       

	 	[   ] 	(3) 	
      sell Shares from the undersigned’s account and forward
      the proceeds (net of fees, commissions and withholding taxes) to the
      undersigned by cheque at the address below; 

	 	  	  	
       

	 	[   ] 	(4) 	
      sell Shares from the undersigned’s account and transfer
      the proceeds (net of fees and commissions) to another RRSP Account or TFSA
      Account as set out below; and 

	 	  	  	
       

	 	[   ] 	(5) 	
      transfer Shares from the undersigned’s account to another
      RRSP Account or TFSA Account as set out below.

For requests to transfer Shares or cash to another financial
institution: 

	 	Institution Name: 	 
	 	 	 
	 	Institution Address: 	 
	 	 	 
	 	Contact Name: 	 
	 	 	 
	 	Contact Phone Number: 	 
	 	 	 
	 	CUID: 	 
	 	 	 
	 	RRSP/TFSA Account Details: 	 
	 	 	 
	 	Account Number: 	 

In the past 12 months, this withdrawal, transfer or sale is my:

	 	First 	  
	 	  	  
	 	Second 	
      (I understand that I am restricted from making further
      contributions to, or withdrawals, transfers or sales from, the Plan for a
      period of 12 months from the date of this withdrawal, transfer or sale)
      

	 	  	     
	 	Third 	
      (I understand that I must terminate my membership in the
      Plan with this withdrawal, transfer or sale) 

18 

Whenever used herein, any words or terms not otherwise defined
in this Withdrawal, Transfer or Sale of Shares, but defined in the Plan, shall
have the meanings ascribed thereto in the Plan. 

DATED as of the ______day of ______________, 20_____. 

 

 

	 	 	 
	(Witness) 	 	(Signature of Employee) 
	 	 	 
	 	 	 
	(Account Number) 	 	(Please Print Name) 
	 	 	 
	 	 	 
	 	 	(Please Print Address) 

 

The Company hereby authorizes the above withdrawal, transfer or
sale by the Trustee. 

 

	 	COUNTERPATH CORPORATION 
	 	  
	 	  
	 	Per:            _____________________________________________
	 	           
             Name:
    ________________________________________
	 	           
             Title:  
      ________________________________________

19 

Appendix D – Form of Instrument Suspending Contributions

Employee Share Purchase Plan 
effective __________________,
2008 

	To: 	COUNTERPATH CORPORATION
      (the “Company”) 
	  	Attention: Trustee, Employee
      Share Purchase Plan (the “Plan”) 

           
The undersigned employee hereby elects to suspend the undersigned’s
contributions to the Plan until further notice, pursuant to the terms of the
Plan. 

DATED as of the ______day of ______________, 20_____. 

 

	 	 	 
	(Witness) 	 	(Signature of Employee) 
	 	 	 
	 	 	 
	(Account Number) 	 	(Please Print Name) 
	 	 	 
	 	 	 
	 	 	(Please Print Address) 

20 

Appendix E – Form of Instrument Resuming Contributions

Employee Share Purchase Plan 
effective __________________,
2008 

	To: 	COUNTERPATH CORPORATION
      (the “Company”) 
	  	Attention: Trustee, Employee
      Share Purchase Plan (the “Plan”) 

           
The undersigned employee hereby requests to resume the undersigned’s
contribution to the Company’s employee share purchase plan (the “Plan”) in an
the amount of ______ % of the undersigned’s Participant’s Basic Compensation
(minimum of 1% of the undersigned’s Participant’s Basic Compensation, maximum 6%
of the undersigned’s Participant’s Basic Compensation, in whole percentages
only), pursuant to the Plan. 

           
Whenever used herein, any words or terms not otherwise defined in this
Instrument Resuming Contributions, but defined in the Plan, shall have the
meanings ascribed thereto in the Plan. 

DATED as of the ______day of ______________, 20_____. 

 

	 	 	 
	(Witness) 	 	(Signature of Employee) 
	 	 	 
	 	 	 
	(Account Number) 	 	(Please Print Name) 
	 	 	 
	 	 	 
	 	 	(Please Print Address) 

21 

Appendix F – Form of Instrument Cancelling Participation

Employee Share Purchase Plan 
effective __________________,
2008 

	To: 	COUNTERPATH CORPORATION (the “Company”)
    
	  	Attention: Trustee, Employee Share Purchase
      Plan (the “Plan”) 

           
The undersigned employee hereby gives notice to, and directs, the Company to
cancel the undersigned’s Election to Purchase Shares and the undersigned’s
participation in the Plan, pursuant to the terms of the Plan. 

           
The undersigned hereby directs the Company and the Trustee to forward the assets
in my account to which I am entitled pursuant to the terms of the Plan as
follows: 

	 	[   ] 	(1) 	
      Please forward a share certificate to me, registered in
      my name as set forth below, for all of the Shares in my Account to which I
      am entitled. I understand that any fractional shares in my account will be
      converted to cash and forwarded to me, with any cash in my account, by
      cheque. 

	 	  	  	     
	 	[   ] 	(2) 	
      Please transfer all of the Shares in my account to which
      I am entitled to , at the following address,      registered as follows . I understand that any fractional
      shares in my account will be converted to cash and forwarded to me, with
    any cash in my account, by cheque. 

	 	  	  	     
	 	[   ] 	(3) 	
      Please sell all of the Shares in my account to which I am
      entitled and forward the proceeds (net of fees and commissions) to me by
      cheque. 

DATED as of the ______ day of ______________, 20_____. 

 

	 	 	 
	(Witness) 	 	(Signature of Employee) 
	 	 	 
	 	 	 
	(Account Number) 	 	(Please Print Name) 
	 	 	 
	 	 	 
	  	 	(Please Print Address) 

22

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