Document:

Exhibit 10.5

 

This Heads of Agreement
(this “HOA”) is dated 07
May 2019.

 

__________________________________________________________

 

 

KANNAREIT INC.

(hereinafter referred
to as “KannaREIT”)

 

			OF THE FIRST PART,

 

 

- and -

 

 

CANNAPHARMARX INC.

(hereinafter referred
to as "CPRX")

 

			OF THE SECOND PART.

 

__________________________________________________________

 

 

HEADS OF AGREEMENT

 

WHEREAS:

 

		i.	CPRX is a corporation incorporated pursuant to the laws of the State of Delaware;

 

		ii.	KannaREIT is a corporation incorporated pursuant to the laws of the Province of Manitoba;

 

		iii.	CPRX desires to become a Licensed Producer (as the term is defined in the
Cannabis Act (the “Act”)) for the purpose of cannabis cultivation, CPRX has applied to Health Canada,
as respects the Lands (as hereinafter defined), under license number                    (the “License”);

 

		iv.	KannaREIT acquires and develops real estate in conjunction with operational
partners that desire to make use of the developed real estate assets for a cannabis business;

 

		v.	CPRX has submit a letter of intent, which letter of intent has been accepted,
the lands and buildings comprising the real property municipally known as 1655 Maple Street, Okanagan Falls, B.C. and legally described,
on PID 006-788-432, as:

 

LOT B DISTRICT LOT 551 SIMILKAMEEN DIVISION YALE
DISTRICT PLAN 22642 EXCEPT PLAN EPP34540

 

(the “Lands”);

 

 

    
	 	1	 

     

    

 

		vi.	A nominee corporation (“AcquireCo”) of CPRX, prior to Closing (as hereinafter
defined), will become the owner of the Lands;

 

		vii.	the Lands carry an industrial use zoning code (Type I2, Category industrial) and are subject
Zoning Bylaw No. 2455, 2008;

 

		viii.	in connection with the foregoing, CPRX desires to engage KannaREIT and enter into a relationship
governing the continued development of the Lands and retrofit of the existing improvements on site;

 

		ix.	the parties hereto desire to set out the general terms and conditions upon which CPRX and KannaREIT
will proceed to negotiate a formal definitive agreement for the aforementioned relationship.

 

It is the intent of
this HOA to set out the principal terms of the formal agreement or agreements whereby: (a) the SPV (defined below) shall
acquire AcquireCo, which shall have title to the Lands, including all improvements thereon; (b) KannaREIT shall arrange for a
construction loan facility to permit the SPV to complete the Development (as hereinafter defined) as contemplated by CPRX,
following completion of which, KannaREIT shall arrange for Stabilized Loan (as hereinafter defined); and (c) KannaREIT shall
provide for CPRX’s participation therein as an interest holder in the SPV, and tenant on, the Lands (the
“Transaction(s)”). The Parties agree that this HOA does not include all of the terms required to be
included in the definitive documents (the “Agreements”) and the execution of this HOA does not represent a
binding obligation upon the parties, nor is it intended to create a legal obligation between the parties.

 

NOW THEREFORE THE PARTIES
AGREE AS FOLLOWS:

 

	1.	Interpretation.	(a)	
        “Confidential Information” means, with respect
to a disclosing party, all information in whatever form, including without limitation, oral and written communications, licenses,
technical and scientific information, computer programs, business plans, trade secrets, processes, designs, data, formulae, prototypes,
specifications, know-how, improvements, inventions (whether patentable or not), techniques, customers lists, business opportunities,
agreements, electronic documents, sketches, photographs, source code, research, analytics, financial and accounting books and
records, specifications, reports, correspondence and other forms of documents or copies thereof that are indirectly or directly
conceived, originated, prepared or received by either party as a result of this HOA and which may be in any form or medium and
whether or not designated as confidential (or like designation). Confidential Information shall be deemed to include all information
passed between the parties for the purpose of proceeding to consummate the Transactions.

	 	 	(b)	“Intellectual
Property” includes, but is not limited to, the License, KannaREIT’s performance model, all Know-How, Confidential
Information, inventions, whether patentable or not, trade-marks (whether registered or unregistered), business processes, business
rules, tools, designs and industrial designs, ideas, works of authorship, creations, inventions, copyrights, developments, programs,
codes, drawings, sketches, analysis, experiments, data, formulae, schemas, prototypes methods, processes, studies, techniques,
prototypes,

 

 

 

    
	 	2	 

     

    

 

products, maps, geological
data, architectural plans, computer programs, software, programming code, computer databases, samples, equipment, equipment configurations,
works in progress, tools, machines, system access codes and passwords, designs, marketing, advertising, drawings and proposed or
implemented design or retrofitting of greenhouses and other structures, and any modifications or improvements thereto that has
been conceived, made, substantiated, developed, produced, or created, either directly or indirectly, by a party.

 

		(c)	“Know-How” means all information not publicly known or
not independently developed by a third party that is used or required to be used in or in connection with any product existing
in any form (including, but not limited to that comprised in or derived from horticultural, engineering, chemical and other data,
specifications, formulae, experience, drawings, manuals, component lists, instructions, designs and circuit diagrams, brochures,
catalogues and other descriptions) and relating to:

 

		(i)	the design, development, manufacture or production of any cannabis or cannabis clones;

		(ii)	the design or retrofitting of any building;

		(iii)	the operation of any process;

		(iv)	the provision of any services;

		(v)	the selection, procurement, construction, installation, maintenance or use
of raw materials, plant, machinery or other equipment or processes;

		(vi)	the rectification, repair or service or maintenance of products, plant, machinery or other equipment;

		(vii)	the supply, storage, assembly or packing of raw materials, components or partly manufactured
or finished products;

		(viii)	quality control, testing or certification; or

		(ix)	the performance modelling utilized by KannaREIT.

 

		(d)	The schedules and preamble hereto shall form an integral part hereof and
the schedules are as follows:

 

	
         

        Schedule:
	
         

        Content:

	5.(c)	SPV Organizational Chart
	5.(d)	Initial Performance Model Summary
	9.	Timeline for Deliverables [Projected]
	15.	Project Management Services

 

 

 

    
	 	3	 

     

    

 

	2.	Structure
    of Transaction.	
        The Transaction shall occur in two (2) stages set in series as
follows

 

		(a)	In
order to allow for the transaction contemplated at Subsection 2. (b). hereof, AcquireCo shall acquire the Lands;

 

		(b)	KannaREIT
and CPRX shall incorporate a special purpose vehicle (the “SPV”) for the purpose of acquiring AcquireCo, which
shall be transferred to the SPV as part of CPRX’s equity contribution (further defined below) thereto at a valuation between
85%-100% of the total acquisition cost (including reasonable transaction fees) of the Land. CPRX’s equity contribution shall
be recognized as 85%-100% [percentage within the range to be set by CPRX after consultation with its tax advisors] the forgoing
value (as required by Section 9. of Schedule 10.) of the Lands plus existing improvements fully
completed or partially completed, machinery/equipment at cost, if any (“Existing Improvements”), less any mortgage
financing and related costs being paid out by the SPV as the parties may agree (the Existing Improvements, collectively, with
the contribution of the Lands, comprise the “CPRX Equity”). The parties acknowledge and agree that the closing
of the transaction contemplated by the accepted letter of intent as between CPRX and Sunniva Inc. dated 25 April 2019 shall guide
the determination of CPRX Equity as the model progresses. For greater certainty, where the loan to value ratio calls for additional
equity to be contributed to the SPV [which will be determined as the performance model progresses], CPRX shall contribute further
capital which capital shall form a part of the CPRX Equity;

 

		(c)	
In exchange for the CPRX Equity, CPRX shall take issue of a non-voting preferred share block or equivalent (the “Preferred
Share Block”), which shall be issuable by the SPV in accordance with the Agreements and shall issue on the basis of
1 preferred share per $100,000. contributed; and

 

		(d)	Concurrently
with, but as a condition of the SPV’s consummation of the Transaction (“Closing”), CPRX shall enter into
a twenty (20) year lease-back, or such other agreed upon length (the “Lease”). The Lease value will include,
but not be limited to, the Lands, any Existing Improvements and future improvements (future improvements hereinafter referred
to as the “Development” and, collectively with the Lands and the Existing Improvements, hereinafter referred
to as the “Site”), on terms and conditions to be agreed to by the parties and set forth in the Agreements.
The rent commencement date, as defined in the Lease, shall be the date that is nine (9) months after the substantial performance
under the CCDC 2 (the “Rent Commencement Date”) for any given Phase (as hereinafter defined) of the Development,
which date shall coincide with the placement of permanent financing (the “Stabilized Loan”) on such completed
Phase that SPV’s third party lender (the “Lender”) will avail to the SPV.

 

 

 

    
	 	4	 

     

    

 

	3.	The
    Preferred Share Block.	(a)	
        The Preferred Share Block shall be entitled to a preferred return of twelve (12%) percent per annum [calculated on the basis of the CPRX Equity as set out in the final form of the performance model certified on Closing] payable, quarterly in arrears, as of the Rent Commencement Date;

	 	 	(b)	The Preferred Share Block shall:

 

		a.	be of a non-voting share class;

 

		b.	shall
have a priority right to dividends or equivalent from the SPV ahead of any dividend or equivalent payable to the common share
block, but after allocation to the non-recoverable expense allowance (inclusive of, inter alia, property management fees,
asset management fees, reserve, maintenance and other expenses);

 

		c.	shall have priority rights (viz-a-viz other shareholders in the SPV) in
the event of liquidation, wind-up or dissolution of the SPV;

 

		(c)	The Preferred Share Block shall not be entitled to voting rights, however,
shall share in the growth and appreciation of the value of the SPV together with the common stock on the basis of the fraction
whereby the numerator is the total number of preferred shares issued comprising the Preferred Share Block and the denominator is
the aforesaid number of shares issued plus the number of common shares issued to KannaREIT (the “CPRX Factor”)
[note, however, in accordance with Section 16., the Preferred Share Block may become entitled to the whole of the
growth and appreciation of the Site by way of exercise of the right set out in Subsection 16. (c).];

 

		(d)	The shareholders of the SPV shall be subject to a unanimous shareholder
agreement, the terms of which will be negotiated but which will require the consent of CPRX to certain decisions of the company,
including, but not limited to the disposition of the Site, the amendment of the terms of any debt facility, whether detailed herein
or otherwise, the entering into of new, extended or additional debt facilities and any other fundamental changes;

 

		(e)	In the event that CPRX shall sell its assets (other than with the consent
of KannaREIT where such consent is required pursuant to the Agreements), breach or otherwise fall into default (to be further defined
under the Agreements) of the Lease and fail to cure such breach or default within the applicable cure period (a “CPRX
Default”), CPRX shall forfeit, for immediate redemption, at nil value (or nominal consideration to be paid if deemed
requisite by the accountants for the SPV), the Preferred Share Block [in this context, at all times, the share certificates demonstrating
CPRX’s title to the Preferred Share Block shall be held in escrow by KannaREIT with a duly executed redemption agreement
or agreements relating thereto, which KannaREIT may act upon in the event of a uncured CPRX Default]; and

 

 

 

    
	 	5	 

     

    

 

		(f)	The SPV shall not be entitled to issue any additional preferred shares
or to issue any additional common shares or to issue any debt securities or borrow any funds (other than the construction loan
facility, Stabilized Facility and any related facilities contemplated within the Agreements), other than trade creditors in the
ordinary course of business without the express written consent of CPRX.

 

	4.	The
    SPV.	(a)	
        All common stock authorized and issued of the SPV shall be owned by KannaREIT [the number of shares issued to be determined
in accordance with the performance model, as finalized ahead of Closing] and entitled to a dividend, quarterly in arrears, as
of the Rent Commencement Date;

	 	 	(b)	SPV shall be responsible to make mortgage payment to the Lender as respects the Stabilized Loan; and
	 	 	(c)	On the occurrence of a capital event such as the placement of the Stabilized Loan which shall occur as defined above in
        Subsection 2. (d)., CPRX may elect to require that the SPV pay out the value of the CPRX Equity, as determined in
        accordance with Subsection 2. (b). hereof in such form of payment as KannaREIT may elect (having no regard for tax
        treatment as income or otherwise once such amounts have been distributed to CPRX).

 

 

	5.	Business and 

financial Model.	(a)	
        For the purpose of the Lease and Stabilized Loan, KannaREIT shall complete a financial model and business case based on
        certain assumptions, to and including (but not limited to) a development plan of approximately 759,000 square feet, in two
        (2) phase (a “Phase” being synonymous with the “Development”).

	 	 	(b)	The financial model and business case shall include the development cost (which shall be expressed as a per square foot
        of gross area factor for the Development), inclusive of construction, structuring, consultants, marketing (if required), project
        and development management and entitlement services fees of the Development along with the fixed price contract (between the SPV
        and CPRX’s selected general contractor) shall not exceed an amount determined during and shown within the formal model that
        will be submit to the Lender in accordance with Schedule 10. once all the model assumptions have been agreed to and
        set by the parties hereto.
	 	 	(c)	KannaREIT has annexed hereto, as Schedule 5. (c)., an SPV organizational chart.
	 	 	(d)	KannaREIT
        has annexed hereto, as Schedule 5. (d)., high-level version of the model outlining the anticipated performance
        based upon the general assumptions shown therein and which will, once finalized, form the basis for the SPV and
        its shareholders. This schedule is subject to change based upon the evolution of the business case and the underlying CPRX
        requirements reflected therein. Upon execution of this HOA, CPRX shall work with KannaREIT on the business plan in order to
        finalize a ten (10) year formal business plan for the SPV, (a condition precedent for financing and proceeding with the
        Transaction). CPRX shall provide all plans, conceptual, formal or otherwise, that have been developed for the Development
        proposed upon the Lands (the “Due Diligence Materials”)

 

 

 

    
	 	6	 

     

    

 

	6.	Base Rent factor determination.	
        The Lease agreement shall provide for an average
base rent (which shall commence upon the Rent Commencement Date, as defined in the Lease, and which shall occur as defined above
in Subsection 2. (d).) which will be established by way of the formal model once all the model assumptions have
been agreed to (as per Section 5. above) by the parties hereto and which, as a condition precedent of the Closing,
shall satisfy the required lender underwriting criteria. The average base rent shall be expressed as a per square foot of gross
area factor. The Lease shall have a minimum of three (3) base rent adjustments throughout the term of the Lease. The base rent
in year one (until the initial base rent adjustment, shall be agreed upon by the parties during the formalization of the model)
of the Lease shall be established at a rate that the parties agree to, Lender acknowledges and that supports the model and business
case. The base rent factor shall be expressed as a cost per square foot of the gross building area of the Existing Improvements
and the Development, payable monthly from the Rent Commencement Date.

 

	7.	Intellectual Property.	
        All rights to any innovation or developments, including all Intellectual Property, shall be owned by CPRX.

 

	8.	CPRX Covenants.	
        CPRX covenants to and in favour of KannaREIT as follows.

	 	 	CPRX shall:

 

	 	 	(a)	
        provide evidence as to the status of any presently outstanding debts owing by CPRX to any third party;

	 	 	(b)	provide to KannaREIT copies of all documents in CPRX’s possession concerning the Site generated in connection with due diligence of the Site, appraising the Site, planning, entitlement and any other investigations concerning the Site;
	 	 	(c)	provide all financial statements for calendar year-ends having occurred to date and interim (internal) financial statements for the financial years of 2018 (if financial statements not yet complete) and 2019 (if any);
	 	 	(d)	assist and cooperate with all lender inquiries, and provide all documentation that KannaREIT may reasonably request of CPRX within ten (10) business days, which KannaREIT anticipates may include:

 

		a.	a copy of CPRX’s Articles of Incorporation and any amendments relating thereto, a status certificate as well as a certificate of incumbency;

                                                                     

	 	b.	a tax certificate concerning the Lands and improvements providing evidence that taxes have been paid to 31 December 2018 [KannaREIT agrees that a tax search may be provided while CPRX awaits receipt of a formal certificate];

 

 

 

    
	 	7	 

     

    

 

		c.	a copy of the License and all related licensing and approval documentation
that will permit CPRX to cultivate and sell cannabis, as well as any other cannabis related license documentation;

 

		d.	all documents set out herein that KannaREIT may reasonably request;

 

	 	 	(e)	
        provide copies of any sale and/or pre-sales agreements for CPRX’s product, all market data compiled
by CPRX, CPRX’s projections, CPRX’s business plan, CPRX’s security package concerning the Development upon the
Lands.

 

	9.	KannaREIT 

Covenants.	 KannaREIT
covenants to and in favour of CPRX as follows. 

	 	 	 KannaREIT shall:
	 	 	(a)	use commercially reasonable best efforts to arrange for the construction loan facility and the Stabilized Loan;
	 	 	(b)	        review all documentation provided by CPRX;
	 	 	(c)	advise CPRX as to all documentation required by the Lender;
	 	 	(d)	        negotiate commercially-reasonable security terms with the Lender concerning the Development, the Site and the Stabilized
        Loan through the SPV for the purpose of Closing; and
	 	 	(e)	prepare and provide all paperwork required to further the process contemplated hereunder.

 

	10.	Timelines for Deliverables.	
        See attached Schedule 10. The parties acknowledge and agree that the deliverables timeline will be replaced by the Master Project Schedule, upon its certification.

 

	11.	Terms of the Lease.	 The Lease will incorporate the following terms:

	 	 	(a)	the Lease shall be governed by British Columbia law;
	 	 	(b)	                triple net, subject to customary and market exclusions adjusted in the spirit of the Transaction;
	 	 	(c)	Average annual base rent over the Lease term, determined as noted above at Section 6. and payable monthly
        in advance, with payments commencing as set out in Subsection 2. (d). hereof;
	 	 	(d)	        At least three (3) base rent adjustments provisions during the term of Lease, or such provisions as parties agree;
	 	 	(e)	        Tenant maintenance requirements;
	 	 	(f)	        Market landlord-tenant default terms with typical cure period;
	 	 	(g)	Prohibitive terms ensuring that character of use maintained
and done so in

accordance with regulations, licenses, laws, etc.; and

	 	 	(h)	Customary measures for failure to abide by terms of the Lease including but not limited to a share pledge
in place such that SPV may take control and ownership of the Preferred Share Block in the event of a CPRX Default [in particular,
a monetary default that is not cured within the applicable cured period].

 

 

 

    
	 	8	 

     

    

 

	12.	Developments and
    Additional Developments.	(a)	
        The Lands are being transferred to the SPV,
on Closing, for the purpose of continued development for CPRX’s use as cannabis cultivation.

	 	 	(b)	The parties anticipate a two (2) phase development such that
the Development will encompass an approximately 759,000 square foot facility for the cultivation and processing of cannabis.

	 	 	(c)	Any future phases shall be modelled in line with the proposal
herein.

	 	 	(d)	CPRX shall participate in a cost segregation study so that KannaREIT may assess the level of allocation
to the capital reserve required by the SPV so as to ensure appropriate reserve is in place pursuant to the requirements to be defined
within the Lease.

 

	13.	Asset Disposition Fee.	
        In the event of a sale of the Site by the SPV (excluding a sale
to CPRX), CPRX shall be entitled to an asset disposition fee of two (2%) percent of the gain determined as follows:

	 	 	[A-B] – C = Gain;

	 	 	Where:

	 	 	•      A is the sale price obtained by the SPV;

	 	 	•      B is all closing costs associated with the sale of the Site
by the SPV;

	 	 	•      C is the valuation of the CPRX Equity determined hereunder in
accordance with Subsection 2. (b).;

	 	 	(the “Asset Disposition Fee”).

	 	 	The Asset Disposition Fee shall only be payable to
CPRX if the Lease is in full force and effect (as renewed or amended) as respects the entirety of the gross leasable portion of
the Lands and CPRX is not in default thereunder or breach thereof.

 

	14.	Event of Sale.	
        For greater certainty, in the event of a sale of the Site by the
SPV (but subject to the other terms and provision set out herein), CPRX shall be entitled to the Asset Disposition Fee plus its
share of net sale proceeds as determined in accordance with the CPRX Factor.

 

	15.	Project

 Management.	
        CPRX may engage KannaREIT for project management services including
those services, and upon the terms, more fully detailed on Schedule 15. hereto, which shall be governed by a project management
agreement.

 

 

 

    
	 	9	 

     

    

 

	16.	End of Lease term.	(a)	Notice. No later than six (6) months prior to the end of the term of the
    Lease, CPRX shall issue a written notice to KannaREIT binding CPRX to either Subsection 16. (b). hereof or Subsection
    16. (c). hereof;
	 	 	(b)	
        Renew Lease. CPRX may opt to renew the Lease, in which case CPRX and the SPV shall enter into negotiations as to
        the terms and rental rate concerning the renewal term (which term shall be a minimum of five (5) years and a maximum of twenty
        (20) years). Failing agreement as to any term or as to the rental rate, an arbitrator shall be appointed. The seat of the arbitration
        shall be Kelowna, British Columbia. The renewal and arbitration provisions shall be further detailed within the Lease.
	 	 	(c)	Option to Purchase the site. CPRX may elect
    to purchase the Site and/or AcquireCo from the SPV (the “Buy-back Right”). The Buy-back Right is only exercisable
    by CPRX if CPRX is not then in an uncured breach or default under the Lease and shall require full compliance with any requirements
    imposed under the Agreements. Further, an exercise of the Buy-back Right shall require written notice of no less than six
    (6) months in advance of the end of the term of the Lease setting out the following:

 

		a.	A binding waiver and forfeiture of any right to the Asset Disposition Fee (as hereinafter defined), including in the event
        that CPRX is unable to close under the Buy-back Right;
	 	b.	A binding commitment to purchase the site at the fair market value as determined by a qualified appraiser selected KannaREIT,
        acting reasonably;
	 	c.	A commitment to absorb the entirety of (a) all transaction costs incurred by the SPV and (b) all costs connected to the
        wind-up and dissolution of the SPV [at which point, KannaREIT will be paid its tax implication in connection with a sale in consideration
        for the common stock in the SPV in addition to the buy-back disposition fee pursuant to Subsection 16. (c) e.];
	 	d.	        A non-refundable deposit equal to TWO HUNDRED FIFTY THOUSAND ($250,000) DOLLARS, which, in the event of a CPRX failure
        to close, shall be paid to KannaREIT via a dividend on the common shares of the SPV;
	 	e.	A binding commitment to pay, together with the cash to close, a buy- back
disposition fee of two (2%) percent of the purchase price, determined in accordance with Subsection 16. (b), to the
SPV, which shall be paid to KannaREIT via a dividend on the common shares of the SPV.

 

	 	 	(d)	Failure
                                         to issue notice. In the event that CPRX fails to issue the notice referenced in Subsection
                                         16. (a). hereof, KannaREIT may direct the SPV towards a fair market sale of the site
                                         to a third party and shall have absolute discretion in the sale and list process. Following
                                         the successful sale of the site, the SPV shall be wound-up.

 

 

 

    
	 	10	 

     

    

 

	17.	Confidentiality.	
        The parties have entered into a Non-Disclosure Agreement and Confidentiality Agreement (the “NDA”)
        on 26 April 2019 which covers the purpose of this HOA and extends to any disclosure of Confidential Information
        as may occur in furtherance of the Transaction. All terms of the NDA shall continue to apply to the relationship created
        hereunder.

 

	18.	Further
    assurances.	
        Each party covenants and agrees to do and cause all things to be done and execute and deliver all such
documents as may be required and fully and effectually carry out the terms of this HOA.

 

	19.	Notices.	 The following provisions shall apply to all notices required
or permitted to be given under this HOA:

	 	 	(a)	        Giving Notice
	 	 		        every notice given pursuant to this HOA shall
        be in writing; such notice shall be sufficiently given if:
	 	 	i.	served by personal delivery upon the party to whom it is being given, which in the case of a trust shall be to one of its
        trustees, as identified in the signature bar hereto;
	 	 	ii.	        mailed by prepaid registered mail (with acknowledgement or receipt requested) addressed to the party to whom it is being
        given; or
	 	 	iii.	transmitted by facsimile facilities to the party to whom it is being given, so long as such facsimile facilities confirm
        that the material so transmitted has been received at a receiving facsimile facility at the facsimile number of the party to whom
        it is being given as disclosed in subsection (d) of this section;
	 	 	(b)	        Deemed Receipt
	 	 	 	a notice given in conformity with subsection (a)
        shall be deemed to be received by the person to whom it is given:
	 	 	i.	on the date it is personally served;
	 	 	ii.	subject to subsection (c) below, on the fifth business day following the date the notice was mailed in
Canada or the United States of America;
	 	 	iii.	the later of 9:00 a.m. (local time) on the first business day following, or eight hours after, its transmission
by facsimile facilities;
	 	 	 	as the case may be.
	 	 	(c)	Disruption of Mail Service
	 	 	 	during any period during which it may reasonably be anticipated that normal delivery of a notice by mail
will be adversely affected, no notice sent by mail shall be deemed to be received unless and until actually received;

 

 

 

    
	 	11	 

     

    

 

	 	 	(d)	Addresses for Service
	 	 	 	the respective addresses of the parties hereto for the giving of notices and the facsimile numbers for
such parties are as follows:
	 	 	 	KannaREIT:
	 	 	 	c/o Sam Goszer, CEO at:
	 	 	 	sgoszer@kannareit.com 
	 	 	 	 
	 	 	 	CPRX:
	 	 	 	c/o           Nick Colvin, CFO 

               ncolvin@cannapharmarx.ca

 

	20.	Time of the Essence.	Time
shall be of the essence of this HOA.

	 	 	 
	21.	Assignment.	Neither
party may assign this HOA without the express written consent of the other.

	 	 	 
	22.	Attornment.	Each
of the parties irrevocably attorns to the jurisdiction of the courts of the Province of British Columbia in respect of the interpretation
of, and relief sought in respect of, this HOA. All subsequent agreements deriving from this HOA shall be governed laws of the
Province of Manitoba.

	 	 	 
	23.	Enurement.	This
HOA shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators,
successors and permitted assigns.

	 	 	 
	24.	Not a Binding Agreement.	Save
and except for the rights and obligations created under the NDA and referenced at Section 17., this HOA is not intended
to and does not create legal binding obligations between the parties. The parties intend to continue discussing and developing
the model(s) contemplated herein with a view to preparing and concluding the Agreement(s) and all other documents in relation
thereto. The legal rights and obligations of the parties shall be only those which are set forth in the Agreement (s) when and
if executed and delivered by both the parties. Notwithstanding any provision to the contrary contained in this HOA, this HOA shall
not constitute an agreement to negotiate and solely constitutes an outline of the terms of negotiation. The parties each acknowledge
and agree that each party is proceeding with negotiations related to the proposed transaction(s) at its sole cost and expense
(which may involve substantial transaction costs) and that neither party shall have any liability for the costs and expenses of
the other party. Neither the expenditure of funds nor the undertaking of actions in furtherance of the transaction contemplated
by this HOA shall be considered partial performance or constitute a binding agreement, nor shall it be the basis for any reliance
upon the terms of this HOA by any party. The parties agree that there shall be no recourse by either of them against the other
if they do not reach agreement on the full terms and conditions for the Agreement(s) and execute and deliver the same [provided
that any pursuit of a construction facility or the Stabilized Loan with the Lender by CPRX without having first entered into the
Agreement(s) shall be a deemed acceptance of the terms of the Agreements as most recently proposed by KannaREIT]. The parties
acknowledge that a transaction of this type involves terms and conditions which have not yet been agreed upon and that this HOA
is in no way intended to be a complete or definitive statement of all the terms and conditions of the proposed transaction(s).

 

 

 

    
	 	12	 

     

    

 

	25.	Independent Legal Advice.	The
parties to this HOA agree that this HOA was negotiated fairly between them at arm’s length and that the final terms of this
HOA are the product of the parties’ negotiations. Each party warrants and represents that it has sought and received, or
has had the opportunity to seek and receive but has chosen not to of its own volition and without coercion, legal counsel of its
own choosing with regard to the contents of this HOA and the rights and obligations affected hereby. The parties agree that this
HOA shall be deemed to have been jointly and equally drafted by them, and that the sections of this HOA therefore should not be
construed against a party or parties on the grounds that the party or parties drafted or was more responsible for drafting the
section(s).

	26.	Counterparts.	
        This HOA may be
executed in any number of counterparts, each of which shall be considered the original and all of which, together, shall constitute
one and the same instrument. Such may also be executed in original or by signatures sent and received by electronic transmission
and the parties hereto agree that the reproduction of signatures sent and received by way of facsimile or other electronic transmission
will be deemed as though such reproductions were executed original thereof.

 

[signature page follows]

 

 

 

    
	 	13	 

     

    

 

IN WITNESS WHEREOF this HOA is executed by KannaREIT
the day and year first written above.

 

	 	KANNAREIT INC.
	 	 
	 	Per: /s/ SAMUEL A. GOSZER                  
	 	SAMUEL A. GOSZER, CEO
	 	I have authority to bind the
corporation.

 

 

 

IN WITNESS WHEREOF this HOA is executed by CPRX
the day and year first written above.

 

 

	 	CANNAPHARMARX INC.
	 	 
	 	Per: /s/ DOMINIC COLVIN                        
	 	DOMINIC COLVIN, CEO
	 	I have authority to bind the corporation.

 

 

 

 

 

    
	 	14Exhibit

EXHIBIT 4.4
ATHERSYS, INC.

2019 EQUITY AND INCENTIVE COMPENSATION PLAN
1.    Purpose.  The purpose of this Plan is to permit award grants to non-employee Directors, officers and other employees of the Company and its Subsidiaries, and certain consultants to the Company and its Subsidiaries, and to provide to such persons incentives and rewards for service and/or performance.
2.     Definitions.  As used in this Plan:
(a)    “Appreciation Right” means a right granted pursuant to Section 5 of this Plan.
(b)     “Base Price” means the price to be used as the basis for determining the Spread upon the exercise of an Appreciation Right.
(c)    “Board” means the Board of Directors of the Company.
(d)     “Cash Incentive Award” means a cash award granted pursuant to Section 8 of this Plan.
(e)     “Change in Control” has the meaning set forth in Section 13 of this Plan.
(f)    “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations thereunder, as such law and regulations may be amended from time to time.
(g)    “Committee” means the Compensation Committee of the Board (or its successor(s)), or any other committee of the Board designated by the Board to administer this Plan pursuant to Section 11 of this Plan.
(h)    “Common Shares” means the shares of common stock, par value $0.001 per share, of the Company or any security into which such common stock may be changed by reason of any transaction or event of the type referred to in Section 12 of this Plan.
(i)    “Company” means Athersys, Inc., a Delaware corporation, and its successors.
(j)    “Date of Grant” means the date provided for by the Committee on which a grant of Option Rights, Appreciation Rights, Performance Shares, Performance Units, Cash Incentive Awards, or other awards contemplated by Section 10 of this Plan, or a grant or sale of Restricted Stock, Restricted Stock Units, or other awards contemplated by Section 10 of this Plan, will become effective (which date will not be earlier than the date on which the Committee takes action with respect thereto).
(k)    “Director” means a member of the Board.
(l)    “Effective Date” means the date this Plan is approved by the Stockholders.
(m)    “Evidence of Award” means an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Committee that sets forth the terms and conditions of the awards granted under this Plan.  An Evidence of Award may be in an electronic medium, may be limited to notation on the books and records of the Company and, unless otherwise determined by the Committee, need not be signed by a representative of the Company or a Participant. 
(n)    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time.
(o)    “Incentive Stock Option” means an Option Right that is intended to qualify as an “incentive stock option” under Section 422 of the Code or any successor provision.
(p)    “Incumbent Directors” means the individuals who, as of the Effective Date, are Directors of the Company and any individual becoming a Director subsequent to the Effective Date whose election, nomination for election by the Stockholders, or appointment was approved by a vote of at least two-thirds of the then Incumbent Directors (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without 

1

objection to such nomination); provided, however, that an individual shall not be an Incumbent Director if such individual’s election or appointment to the Board occurs as a result of an actual or threatened election contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to the election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.
(q)    “Management Objectives” means the measurable performance objective or objectives established pursuant to this Plan for Participants who have received grants of Performance Shares, Performance Units or Cash Incentive Awards or, when so determined by the Committee, Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, dividend equivalents or other awards pursuant to this Plan.  If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances render the Management Objectives unsuitable, the Committee may in its discretion modify such Management Objectives or the goals or actual levels of achievement regarding the Management Objectives, in whole or in part, as the Committee deems appropriate and equitable.
(r)    “Market Value per Share” means, as of any particular date, the closing price of a Common Share as reported for that date on the NASDAQ Stock Market or, if the Common Shares are not then listed on the NASDAQ Stock Market, on any other national securities exchange on which the Common Shares are listed, or if there are no sales on such date, on the next preceding trading day during which a sale occurred.  If there is no regular public trading market for the Common Shares, then the Market Value per Share shall be the fair market value as determined in good faith by the Committee.  The Committee is authorized to adopt another fair market value pricing method provided such method is stated in the applicable Evidence of Award and is in compliance with the fair market value pricing rules set forth in Section 409A of the Code.
(s)    “Optionee” means the optionee named in an Evidence of Award evidencing an outstanding Option Right.
(t)    “Option Price” means the purchase price payable on exercise of an Option Right.
(u)    “Option Right” means the right to purchase Common Shares upon exercise of an award granted pursuant to Section 4 of this Plan.
(v)    “Participant” means a person who is selected by the Committee to receive benefits under this Plan and who is at the time (i) a non-employee Director, (ii) an officer or other employee of the Company or any Subsidiary, including a person who has agreed to commence serving in such capacity within 90 days of the Date of Grant, or (iii) a person, including a consultant, who provides services to the Company or any Subsidiary that are equivalent to those typically provided by an employee (provided that such person satisfies the Form S-8 definition of an “employee”).
(w)    “Performance Period” means, in respect of a Cash Incentive Award, Performance Share or Performance Unit, a period of time established pursuant to Section 8 of this Plan within which the Management Objectives relating to such Cash Incentive Award, Performance Share or Performance Unit are to be achieved.
(x)    “Performance Share” means a bookkeeping entry that records the equivalent of one Common Share awarded pursuant to Section 8 of this Plan.
(y)    “Performance Unit” means a bookkeeping entry awarded pursuant to Section 8 of this Plan that records a unit equivalent to $1.00 or such other value as is determined by the Committee.
(z)    “Plan” means this Athersys, Inc. 2019 Equity and Incentive Compensation Plan, as may be amended or amended and restated from time to time.
(aa)    “Predecessor Plan” means the Athersys, Inc. Amended and Restated 2007 Long-Term Incentive Plan, including as amended or amended and restated. 
(bb)    “Restricted Stock” means Common Shares granted or sold pursuant to Section 6 of this Plan as to which neither the substantial risk of forfeiture nor the prohibition on transfers has expired.
(cc)    “Restricted Stock Units” means an award made pursuant to Section 7 of this Plan of the right to receive Common Shares, cash or a combination thereof at the end of the applicable Restriction Period.

2

(dd)    “Restriction Period” means the period of time during which Restricted Stock Units are subject to restrictions, as provided in Section 7 of this Plan.
(ee)    “Spread” means the excess of the Market Value per Share on the date when an Appreciation Right is exercised over the Base Price provided for with respect to the Appreciation Right.
(ff)    “Stockholder” means an individual or entity that owns one or more Common Shares.
(gg)    “Subsidiary” means a corporation, company or other entity (i) more than 50% of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture, limited liability company, unincorporated association or other similar entity), but more than 50% of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the Company; provided, however, that for purposes of determining whether any person may be a Participant for purposes of any grant of Incentive Stock Options, “Subsidiary” means any corporation in which the Company at the time owns or controls, directly or indirectly, more than 50% of the total combined voting power represented by all classes of stock issued by such corporation.
(hh)    “Voting Stock” means securities entitled to vote generally in the election of Directors. 
3.    Shares Available Under this Plan.
		
	(a)
	Maximum Shares Available Under this Plan.

		
	(i)
	Subject to adjustment as provided in Section 12 of this Plan and the share counting rules set forth in Section 3(b) of this Plan, the number of Common Shares available under this Plan for awards of (A) Option Rights or Appreciation Rights, (B) Restricted Stock, (C) Restricted Stock Units, (D) Performance Shares or Performance Units, (E) awards contemplated by Section 10 of this Plan, or (F) dividend equivalents paid with respect to awards made under this Plan will not exceed in the aggregate (x) 18,483,912 Common Shares minus (y) as of the Effective Date, one Common Share for every one Common Share subject to an award granted under the Predecessor Plan between December 31, 2018 and the Effective Date.  Such shares may be shares of original issuance or treasury shares or a combination of the foregoing.

		
	(ii)
	Subject to the share counting rules set forth in Section 3(b) of this Plan, the aggregate number of Common Shares available under Section 3(a)(i) of this Plan will be reduced by one Common Share for every one Common Share subject to an award granted under this Plan.

(b)    Share Counting Rules.
		
	(i)
	Except as provided in Section 23 of this Plan, if any award granted under this Plan (in whole or in part) is cancelled or forfeited, expires, is settled for cash, or is unearned, the Common Shares subject to such award will, to the extent of such cancellation, forfeiture, expiration, cash settlement, or unearned amount, again be available under Section 3(a)(i) above.

		
	(ii)
	If, after December 31, 2018, any Common Shares subject to an award granted under the Predecessor Plan are forfeited, or an award granted under the Predecessor Plan (in whole or in part) is cancelled or forfeited, expires, is settled for cash, or is unearned, the Common Shares subject to such award will, to the extent of such cancellation, forfeiture, expiration, cash settlement, or unearned amount, be available for awards under this Plan.

		
	(iii)
	Notwithstanding anything to the contrary contained in this Plan:  (A) Common Shares withheld by the Company, tendered or otherwise used in payment of the Option Price of an Option Right will not be added (or added back, as applicable) to the aggregate number of Common Shares available under Section 3(a)(i) of this Plan; (B) Common Shares withheld by the Company, tendered or otherwise used to satisfy tax withholding will not be added (or added back, as applicable) to the aggregate number of Common Shares available under Section 3(a)(i) of this Plan; (C) Common Shares subject to a share-settled Appreciation Right that are not actually issued in connection with the settlement of such Appreciation Right on the exercise thereof will not be added back to the aggregate number of Common Shares available under 

3

Section 3(a)(i) of this Plan; and (D) Common Shares reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Option Rights will not be added (or added back, as applicable) to the aggregate number of Common Shares available under Section 3(a)(i) of this Plan.
		
	(iv)
	If, under this Plan, a Participant has elected to give up the right to receive compensation in exchange for Common Shares based on fair market value, such Common Shares will not count against the aggregate limit under Section 3(a)(i) of this Plan.

(c)    Limit on Incentive Stock Options.  Notwithstanding anything to the contrary contained in this Plan, and subject to adjustment as provided in Section 12 of this Plan, the aggregate number of Common Shares actually issued or transferred by the Company upon the exercise of Incentive Stock Options will not exceed 15,000,000 Common Shares.
(d)    Non-Employee Director Compensation Limit.  Notwithstanding anything to the contrary contained in this Plan, in no event will any non-employee Director in any one calendar year be granted (i) awards under this Plan, in the aggregate, with respect to more than 150,000 Common Shares, plus (ii) other compensation for such service in excess of $150,000 in cash.
4.    Option Rights.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to Participants of Option Rights.  Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:
(a)    Each grant will specify the number of Common Shares to which it pertains subject to the limitations set forth in Section 3 of this Plan.
(b)    Each grant will specify an Option Price per Common Share, which Option Price (except with respect to awards under Section 23 of this Plan) may not be less than the Market Value per Share on the Date of Grant.
(c)    Each grant will specify whether the Option Price will be payable (i) in cash, by check acceptable to the Company or by wire transfer of immediately available funds, (ii) by the actual or constructive transfer to the Company of Common Shares owned by the Optionee having a value at the time of exercise equal to the total Option Price, (iii) subject to any conditions or limitations established by the Committee, by the withholding of Common Shares otherwise issuable upon exercise of an Option Right pursuant to a “net exercise” arrangement (it being understood that, solely for purposes of determining the number of treasury shares held by the Company, the Common Shares so withheld will not be treated as issued and acquired by the Company upon such exercise), (iv) by a combination of such methods of payment, or (v) by such other methods as may be approved by the Committee.
(d)    To the extent permitted by law, any grant may provide for deferred payment of the Option Price from the proceeds of sale through a bank or broker on a date satisfactory to the Company of some or all of the Common Shares to which such exercise relates.
(e)    Each grant will specify the period or periods of continuous service by the Optionee with the Company or any Subsidiary, if any, that is necessary before any Option Rights or installments thereof will vest.  Option Rights may provide for continued vesting or the earlier vesting of such Option Rights, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.
(f)    Any grant of Option Rights may specify Management Objectives regarding the vesting of such rights.
(g)    Option Rights granted under this Plan may be (i) options, including Incentive Stock Options, that are intended to qualify under particular provisions of the Code, (ii) options that are not intended to so qualify, or (iii) combinations of the foregoing.  Incentive Stock Options may only be granted to Participants who meet the definition of “employees” under Section 3401(c) of the Code.
(h)    No Option Right will be exercisable more than 10 years from the Date of Grant.  The Committee may provide in any Evidence of Award for the automatic exercise of an Option Right upon such terms and conditions as established by the Committee.
(i)    Option Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

4

(j)    Each grant of Option Rights will be evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.
5.    Appreciation Rights.
(a)    The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to any Participant of Appreciation Rights.  An Appreciation Right will be the right of the Participant to receive from the Company an amount determined by the Committee, which will be expressed as a percentage of the Spread (not exceeding 100%) at the time of exercise.
(b)    Each grant of Appreciation Rights may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:
		
	(i)
	Each grant may specify that the amount payable on exercise of an Appreciation Right will be paid by the Company in cash, Common Shares or any combination thereof.

		
	(ii)
	Each grant will specify the period or periods of continuous service by the Participant with the Company or any Subsidiary, if any, that is necessary before the Appreciation Rights or installments thereof will vest.  Appreciation Rights may provide for continued vesting or the earlier vesting of such Appreciation Rights, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

		
	(iii)
	Any grant of Appreciation Rights may specify Management Objectives regarding the vesting of such Appreciation Rights.

		
	(iv)
	Appreciation Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

		
	(v)
	Each grant of Appreciation Rights will be evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

(c)    Also, regarding Appreciation Rights:
		
	(i)
	Each grant will specify in respect of each Appreciation Right a Base Price, which (except with respect to awards under Section 23 of this Plan) may not be less than the Market Value per Share on the Date of Grant; and

		
	(ii)
	No Appreciation Right granted under this Plan may be exercised more than 10 years from the Date of Grant.  The Committee may provide in any Evidence of Award for the automatic exercise of an Appreciation Right upon such terms and conditions as established by the Committee.

6.    Restricted Stock.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the grant or sale of Restricted Stock to Participants.  Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:
(a)    Each such grant or sale will constitute an immediate transfer of the ownership of Common Shares to the Participant in consideration of the performance of services, entitling such Participant to voting and other ownership rights (subject in particular to Section 6(g) of this Plan), but subject to the substantial risk of forfeiture and restrictions on transfer hereinafter described.
(b)    Each such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share on the Date of Grant.
(c)    Each such grant or sale will provide that the Restricted Stock covered by such grant or sale will be subject to a “substantial risk of forfeiture” within the meaning of Section 83 of the Code for a period to be determined by the Committee on the Date of Grant or until achievement of Management Objectives referred to in Section 6(e) of this Plan. 

5

(d)    Each such grant or sale will provide that during or after the period for which such substantial risk of forfeiture is to continue, the transferability of the Restricted Stock will be prohibited or restricted in the manner and to the extent prescribed by the Committee on the Date of Grant (which restrictions may include rights of repurchase or first refusal of the Company or provisions subjecting the Restricted Stock to a continuing substantial risk of forfeiture while held by any transferee).
(e)    Any grant of Restricted Stock may specify Management Objectives regarding the vesting of such Restricted Stock. 
(f)    Notwithstanding anything to the contrary contained in this Plan, Restricted Stock may provide for continued vesting or the earlier vesting of such Restricted Stock, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control. 
(g)    Any such grant or sale of Restricted Stock may require that any and all dividends or other distributions paid thereon during the period of such restrictions be automatically deferred and/or reinvested in additional shares of Restricted Stock, which will be subject to the same restrictions as the underlying award.  For the avoidance of doubt, any such dividends or other distributions on Restricted Stock will be deferred until, and paid contingent upon, the vesting of such Restricted Stock.
(h)    Each grant or sale of Restricted Stock will be evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.  Unless otherwise directed by the Committee, (i) all certificates representing shares of Restricted Stock will be held in custody by the Company until all restrictions thereon will have lapsed, together with a stock power or powers executed by the Participant in whose name such certificates are registered, endorsed in blank and covering such shares, or (ii) all shares of Restricted Stock will be held at the Company’s transfer agent in book entry form with appropriate restrictions relating to the transfer of such shares of Restricted Stock.
7.    Restricted Stock Units.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting or sale of Restricted Stock Units to Participants.  Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:
(a)    Each such grant or sale will constitute the agreement by the Company to deliver Common Shares or cash, or a combination thereof, to the Participant in the future in consideration of the performance of services, but subject to the fulfillment of such conditions (which may include achievement regarding Management Objectives) during the Restriction Period as the Committee may specify. 
(b)    Each such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share on the Date of Grant.
(c)    Notwithstanding anything to the contrary contained in this Plan, Restricted Stock Units may provide for continued vesting or the earlier lapse or other modification of the Restriction Period, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.
(d)    During the Restriction Period, the Participant will have no right to transfer any rights under his or her award and will have no rights of ownership in the Common Shares deliverable upon payment of the Restricted Stock Units and will have no right to vote them, but the Committee may, at or after the Date of Grant, authorize the payment of dividend equivalents on such Restricted Stock Units on a deferred and contingent basis based upon the vesting of such Restricted Stock Units.
(e)    Each grant or sale of Restricted Stock Units will specify the time and manner of payment of the Restricted Stock Units that have been earned.  Each grant or sale will specify that the amount payable with respect thereto will be paid by the Company in Common Shares or cash, or a combination thereof.
(f)    Each grant or sale of Restricted Stock Units will be evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.
8.    Cash Incentive Awards, Performance Shares and Performance Units.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting of Cash Incentive Awards, Performance Shares and Performance Units.  Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

6

(a)    Each grant will specify the number or amount of Performance Shares or Performance Units, or amount payable with respect to a Cash Incentive Award, to which it pertains, which number or amount may be subject to adjustment to reflect changes in compensation or other factors.
(b)    The Performance Period with respect to each Cash Incentive Award or grant of Performance Shares or Performance Units will be such period of time as will be determined by the Committee, which may be subject to continued vesting or earlier lapse or other modification, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.
(c)    Each grant of a Cash Incentive Award, Performance Shares or Performance Units will specify Management Objectives regarding the earning of the award.
(d)    Each grant will specify the time and manner of payment of a Cash Incentive Award, Performance Shares or Performance Units that have been earned.  
(e)    The Committee may, on the Date of Grant of Performance Shares or Performance Units, provide for the payment of dividend equivalents to the holder thereof either in cash or in additional Common Shares, which dividend equivalents will be subject to deferral and payment on a contingent basis based on the Participant’s earning and vesting of the Performance Shares or Performance Units, as applicable, with respect to which such dividend equivalents are paid.
(f)    Each grant of a Cash Incentive Award, Performance Shares or Performance Units will be evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.
9.    Non-Employee Directors.  If a non-employee Director subsequently becomes an employee of the Company or a Subsidiary while remaining a member of the Board, any award held under this Plan by such individual at the time of such commencement of employment will not be affected thereby. Non-employee Directors, pursuant to this Section 9, may be awarded, or may be permitted to elect to receive, pursuant to procedures established by the Committee, all or any portion of their annual retainer, meeting fees or other fees in Common Shares, Restricted Stock, Restricted Stock Units or other awards under this Plan in lieu of cash.
10.    Other Awards.
(a)    Subject to applicable law and the applicable limits set forth in Section 3 of this Plan, the Committee may authorize the grant to any Participant of Common Shares or such other awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Common Shares or factors that may influence the value of such shares, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Common Shares, purchase rights for Common Shares, awards with value and payment contingent upon performance of the Company or specified Subsidiaries, affiliates or other business units thereof or any other factors designated by the Committee, and awards valued by reference to the book value of the Common Shares or the value of securities of, or the performance of specified Subsidiaries or affiliates or other business units of the Company.  The Committee will determine the terms and conditions of such awards.  Common Shares delivered pursuant to an award in the nature of a purchase right granted under this Section 10 will be purchased for such consideration, paid for at such time, by such methods, and in such forms, including, without limitation, Common Shares, other awards, notes or other property, as the Committee determines.
(b)    Cash awards, as an element of or supplement to any other award granted under this Plan, may also be granted pursuant to this Section 10.
(c)    The Committee may authorize the grant of Common Shares as a bonus, or may authorize the grant of other awards in lieu of obligations of the Company or a Subsidiary to pay cash or deliver other property under this Plan or under other plans or compensatory arrangements, subject to such terms as will be determined by the Committee in a manner that complies with Section 409A of the Code.
(d)    The Committee may, at or after the Date of Grant, authorize the payment of dividends or dividend equivalents on awards granted under this Section 10 on a deferred and contingent basis, either in cash or in additional Common Shares, based upon the earning and vesting of such awards.

7

(e)    Each grant of an award under this Section 10 will be evidenced by an Evidence of Award.  Each such Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve, and will specify the time and terms of delivery of the applicable award.
(f)    Notwithstanding anything to the contrary contained in this Plan, awards under this Section 10 may provide for the earning or vesting of, or earlier elimination of restrictions applicable to, such award, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.
11.    Administration of this Plan.
(a)    This Plan will be administered by the Committee; provided, however, that notwithstanding anything in this Plan to the contrary, the Board may grant awards under this Plan to non-employee Directors and administer this Plan with respect to such awards.  The Committee may from time to time delegate all or any part of its authority under this Plan to a subcommittee thereof.  To the extent of any such delegation, references in this Plan to the Committee will be deemed to be references to such subcommittee.
(b)    The interpretation and construction by the Committee of any provision of this Plan or of any Evidence of Award (or related documents) and any determination by the Committee pursuant to any provision of this Plan or of any such agreement, notification or document will be final and conclusive.  No member of the Committee shall be liable for any such action or determination made in good faith.  In addition, the Committee is authorized to take any action it determines in its sole discretion to be appropriate subject only to the express limitations contained in this Plan, and no authorization in any Plan section or other provision of this Plan is intended or may be deemed to constitute a limitation on the authority of the Committee.
(c)    To the extent permitted by law, the Committee may delegate to one or more of its members, to one or more officers of the Company, or to one or more agents or advisors, such administrative duties or powers as it may deem advisable, and the Committee, the subcommittee, or any person to whom duties or powers have been delegated as aforesaid, may employ one or more persons to render advice with respect to any responsibility the Committee, the subcommittee or such person may have under this Plan.  The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as the Committee:  (i) designate employees to be recipients of awards under this Plan; and (ii) determine the size of any such awards; provided, however, that (A) the Committee will not delegate such responsibilities to any such officer for awards granted to an employee who is an officer (for purposes of Section 16 of the Exchange Act), Director, or more than 10% “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Committee in accordance with Section 16 of the Exchange Act; (B) the resolution providing for such authorization shall set forth the total number of Common Shares such officer(s) may grant; and (C) the officer(s) will report periodically to the Committee regarding the nature and scope of the awards granted pursuant to the authority delegated.
12.    Adjustments.  The Committee shall make or provide for such adjustments in the number of and kind of Common Shares covered by outstanding Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units granted hereunder and, if applicable, in the number of and kind of Common Shares covered by other awards granted pursuant to Section 10 of this Plan, in the Option Price and Base Price provided in outstanding Option Rights and Appreciation Rights, respectively, in Cash Incentive Awards, and in other award terms, as the Committee, in its sole discretion, exercised in good faith, determines is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (a) any extraordinary cash dividend, stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing.  Moreover, in the event of any such transaction or event or in the event of a Change in Control, the Committee may provide in substitution for any or all outstanding awards under this Plan such alternative consideration (including cash), if any, as it, in good faith, may determine to be equitable in the circumstances and shall require in connection therewith the surrender of all awards so replaced in a manner that complies with Section 409A of the Code.  In addition, for each Option Right or Appreciation Right with an Option Price or Base Price, respectively, greater than the consideration offered in connection with any such transaction or event or Change in Control, the Committee may in its discretion elect to cancel such Option Right or Appreciation Right without any payment to the person holding such Option Right or Appreciation Right.  The Committee shall also make or provide for such adjustments in the number of Common Shares specified in Section 3 of this Plan as the Committee in its sole discretion, exercised in good faith, determines is appropriate to reflect any transaction or event described in this Section 12; provided, however, that any such adjustment to the number specified in Section 3(c) of this Plan will be made only if and to the extent that such adjustment would not cause any Option Right intended to qualify as an Incentive Stock Option to fail to so qualify.  

8

13.    Change in Control.  For purposes of this Plan, except as may be otherwise prescribed by the Committee in an Evidence of Award made under this Plan, a “Change in Control” shall be deemed to have occurred upon the occurrence of any of the following events:
(a)    any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) is or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of the combined voting power of the then-outstanding Voting Stock of the Company; provided, however, that:
		
	(i)
	for purposes of this Section 13(a), the following acquisitions shall not constitute a Change in Control: (A) any acquisition of Voting Stock of the Company directly from the Company that is approved by a majority of the Incumbent Directors, (B) any acquisition of Voting Stock of the Company by the Company or any Subsidiary, (C) any acquisition of Voting Stock of the Company by the trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, and (D) any acquisition of Voting Stock of the Company by any Person pursuant to a Business Transaction that complies with clauses (i), (ii) and (iii) of Section 13(c) below;

		
	(ii)
	a Change in Control will not be deemed to have occurred if a Person is or becomes the beneficial owner of 35% or more of the Voting Stock of the Company as a result of a reduction in the number of shares of Voting Stock of the Company outstanding pursuant to a transaction or series of transactions that is approved by a majority of the Incumbent Directors unless and until such Person thereafter becomes the beneficial owner of any additional shares of Voting Stock of the Company representing 1% or more of the then-outstanding Voting Stock of the Company, other than as a result of a stock dividend, stock split or similar transaction effected by the Company in which all holders of Voting Stock are treated equally; and

		
	(iii)
	if at least a majority of the Incumbent Directors determine in good faith that a Person has acquired beneficial ownership of 35% or more of the Voting Stock of the Company inadvertently, and such Person divests as promptly as practicable but no later than the date, if any, set by the Incumbent Board a sufficient number of shares so that such Person beneficially owns less than 35% of the Voting Stock of the Company, then no Change in Control shall have occurred as a result of such Person’s acquisition; or

(b)    a majority of the Board ceases to be comprised of Incumbent Directors; or
(c)    the consummation of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of the stock or assets of another corporation, or other transaction (each, a “Business Transaction”), unless, in each case, immediately following such Business Transaction (i) the Voting Stock of the Company outstanding immediately prior to such Business Transaction continues to represent (either by remaining outstanding or by being converted into Voting Stock of the surviving entity or any parent thereof), more than 60% of the combined voting power of the then outstanding shares of Voting Stock of the entity resulting from such Business Transaction (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (ii) no Person (other than the Company, such entity resulting from such Business Transaction or any employee benefit plan (or related trust) sponsored or maintained by the Company, any Subsidiary or such entity resulting from such Business Transaction) beneficially owns, directly or indirectly, 50% or more of the combined voting power of the then outstanding shares of Voting Stock of the entity resulting from such Business Transaction, and (iii) at least a majority of the members of the Board of Directors of the entity resulting from such Business Transaction were Incumbent Directors at the time of the execution of the initial agreement or of the action of the Board providing for such Business Transaction; or
(d)    approval by the stockholders of the Company of a complete liquidation or dissolution of the Company, except pursuant to a Business Transaction that complies with clauses (i), (ii) and (iii) of Section 13(c) above.
14.    Detrimental Activity and Recapture Provisions.  Any Evidence of Award may reference a clawback policy of the Company or provide for the cancellation or forfeiture of an award or the forfeiture and repayment to the Company of any gain related to an award, or other provisions intended to have a similar effect, upon such terms and conditions as may be determined by the Committee from time to time, if a Participant, either (a) during employment or other service with the Company or a 

9

Subsidiary, or (b) within a specified period after termination of such employment or service, engages in any detrimental activity, as described in the applicable Evidence of Award or such clawback policy.  In addition, notwithstanding anything in this Plan to the contrary, any Evidence of Award or such clawback policy may also provide for the cancellation or forfeiture of an award or the forfeiture and repayment to the Company of any Common Shares issued under and/or any other benefit related to an award, or other provisions intended to have a similar effect, upon such terms and conditions as may be required by the Committee or under Section 10D of the Exchange Act and any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which the Common Shares may be traded.
15.    Non-U.S. Participants.  In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide for such special terms for awards to Participants who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United States of America or who provide services to the Company or any Subsidiary under an agreement with a foreign nation or agency, as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom.  Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of this Plan (including sub-plans) (to be considered part of this Plan) as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as this Plan.  No such special terms, supplements, amendments or restatements, however, will include any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the Stockholders.
16.    Transferability.
(a)    Except as otherwise determined by the Committee, and subject to compliance with Section 18(b) of this Plan and Section 409A of the Code, no Option Right, Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, Cash Incentive Award, award contemplated by Section 10 of this Plan or dividend equivalents paid with respect to awards made under this Plan will be transferable by the Participant except by will or the laws of descent and distribution.  In no event will any such award granted under this Plan be transferred for value.  Where transfer is permitted, references to “Participant” shall be construed, as the Committee deems appropriate, to include any permitted transferee to whom such award is transferred.  Except as otherwise determined by the Committee, Option Rights and Appreciation Rights will be exercisable during the Participant’s lifetime only by him or her or, in the event of the Participant’s legal incapacity to do so, by his or her guardian or legal representative acting on behalf of the Participant in a fiduciary capacity under state law or court supervision.
(b)    The Committee may specify on the Date of Grant that part or all of the Common Shares that are (i) to be issued or transferred by the Company upon the exercise of Option Rights or Appreciation Rights, upon the termination of the Restriction Period applicable to Restricted Stock Units or upon payment under any grant of Performance Shares or Performance Units or (ii) no longer subject to the substantial risk of forfeiture and restrictions on transfer referred to in Section 6 of this Plan, will be subject to further restrictions on transfer, including minimum holding periods.
17.    Withholding Taxes.  To the extent that the Company is required to withhold federal, state, local or foreign taxes or other amounts in connection with any payment made or benefit realized by a Participant or other person under this Plan, and the amounts available to the Company for such withholding are insufficient, it will be a condition to the receipt of such payment or the realization of such benefit that the Participant or such other person make arrangements satisfactory to the Company for payment of the balance of such taxes or other amounts required to be withheld, which arrangements (in the discretion of the Committee) may include relinquishment of a portion of such benefit.  If a Participant’s benefit is to be received in the form of Common Shares, and such Participant fails to make arrangements for the payment of taxes or other amounts, then, unless otherwise determined by the Committee, the Company will withhold Common Shares having a value equal to the amount required to be withheld.  Notwithstanding the foregoing, when a Participant is required to pay the Company an amount required to be withheld under applicable income, employment, tax or other laws, the Participant may elect, unless otherwise determined by the Committee, to satisfy the obligation, in whole or in part, by having withheld, from the Common Shares required to be delivered to the Participant, Common Shares having a value equal to the amount required to be withheld or by delivering to the Company other Common Shares held by such Participant.  The Common Shares used for tax or other withholding will be valued at an amount equal to the fair market value of such Common Shares on the date the benefit is to be included in Participant’s income.  In no event will the fair market value of the Common Shares to be withheld and delivered pursuant to this Section 17 exceed the minimum amount required to be withheld, unless (i) an additional amount can be withheld and not result in adverse accounting consequences, (ii) such additional withholding amount is authorized by the Committee, and (iii) the total amount withheld does not exceed the Participant’s estimated tax obligations attributable to the applicable transaction.  Participants will also make such arrangements as the Company may require for the payment of any withholding tax or other obligation that may arise in connection with the disposition of Common Shares acquired upon the exercise of Option Rights.

10

18.    Compliance with Section 409A of the Code.  
(a)    To the extent applicable, it is intended that this Plan and any grants made hereunder comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants.  This Plan and any grants made hereunder will be administered in a manner consistent with this intent.  Any reference in this Plan to Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to such section by the U.S. Department of the Treasury or the Internal Revenue Service. 
(b)    Neither a Participant nor any of a Participant’s creditors or beneficiaries will have the right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable under this Plan and grants hereunder to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant or for a Participant’s benefit under this Plan and grants hereunder may not be reduced by, or offset against, any amount owed by a Participant to the Company or any of its Subsidiaries. 
(c)    If, at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (i) the Participant will be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time) and (ii) the Company makes a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it, without interest, on the tenth business day of the seventh month after such separation from service. 
(d)    Solely with respect to any award that constitutes nonqualified deferred compensation subject to Section 409A of the Code and that is payable on account of a Change in Control (including any installments or stream of payments that are accelerated on account of a Change in Control), a Change in Control shall occur only if such event also constitutes a “change in the ownership,” “change in effective control,” and/or a “change in the ownership of a substantial portion of assets” of the Company as those terms are defined under Treasury Regulation §1.409A-3(i)(5), but only to the extent necessary to establish a time and form of payment that complies with Section 409A of the Code, without altering the definition of Change in Control for any purpose in respect of such award.
(e)    Notwithstanding any provision of this Plan and grants hereunder to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of the Code, the Company reserves the right to make amendments to this Plan and grants hereunder as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code.  In any case, a Participant will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant or for a Participant’s account in connection with this Plan and grants hereunder (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its affiliates will have any obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.
19.    Amendments.
(a)    The Board may at any time and from time to time amend this Plan in whole or in part; provided, however, that if an amendment to this Plan, for purposes of applicable stock exchange rules and except as permitted under Section 12 of this Plan, (i) would materially increase the benefits accruing to Participants under this Plan, (ii) would materially increase the number of securities which may be issued under this Plan, (iii) would materially modify the requirements for participation in this Plan, or (iv) must otherwise be approved by the Stockholders in order to comply with applicable law or the rules of the NASDAQ Stock Market or, if the Common Shares are not traded on the NASDAQ Stock Market, the principal national securities exchange upon which the Common Shares are traded or quoted, all as determined by the Board, then, such amendment will be subject to Stockholder approval and will not be effective unless and until such approval has been obtained.
(b)    Except in connection with a corporate transaction or event described in Section 12 of this Plan or in connection with a Change in Control, the terms of outstanding awards may not be amended to reduce the Option Price of outstanding Option Rights or the Base Price of outstanding Appreciation Rights, or cancel outstanding “underwater” Option Rights or Appreciation Rights (including following a Participant’s voluntary surrender of “underwater” Option Rights or Appreciation Rights) in exchange for cash, other awards or Option Rights or Appreciation Rights with an Option Price or Base Price, as applicable, that is less than the Option Price of the original Option Rights or Base Price of the original Appreciation Rights, as applicable, without Stockholder approval.  This Section 19(b) is intended to prohibit the repricing of “underwater” Option Rights and Appreciation Rights and will not be construed to prohibit the adjustments provided for in Section 12 of this Plan.  Notwithstanding any provision of this Plan to the contrary, this Section 19(b) may not be amended without approval by the Stockholders.

11

(c)    If permitted by Section 409A of the Code, but subject to the paragraph that follows, including in the case of termination of employment or service, or in the case of unforeseeable emergency or other circumstances or in the event of a Change in Control, to the extent a Participant holds an Option Right or Appreciation Right not immediately exercisable in full, or any Restricted Stock as to which the substantial risk of forfeiture or the prohibition or restriction on transfer has not lapsed, or any Restricted Stock Units as to which the Restriction Period has not been completed, or any Cash Incentive Awards, Performance Shares or Performance Units which have not been fully earned, or any dividend equivalents or other awards made pursuant to Section 10 of this Plan subject to any vesting schedule or transfer restriction, or who holds Common Shares subject to any transfer restriction imposed pursuant to Section 16(b) of this Plan, the Committee may, in its sole discretion, provide for continued vesting or accelerate the time at which such Option Right, Appreciation Right or other award may vest or be exercised or the time at which such substantial risk of forfeiture or prohibition or restriction on transfer will lapse or the time when such Restriction Period will end or the time at which such Cash Incentive Awards, Performance Shares or Performance Units will be deemed to have been earned or the time when such transfer restriction will terminate or may waive any other limitation or requirement under any such award.
(d)    Subject to Section 19(b) of this Plan, the Committee may amend the terms of any award theretofore granted under this Plan prospectively or retroactively.  Except for adjustments made pursuant to Section 12 of this Plan, no such amendment will materially impair the rights of any Participant without his or her consent.  The Board may, in its discretion, terminate this Plan at any time.  Termination of this Plan will not affect the rights of Participants or their successors under any awards outstanding hereunder and not exercised in full on the date of termination.
20.    Governing Law.  This Plan and all grants and awards and actions taken hereunder will be governed by and construed in accordance with the internal substantive laws of the State of Delaware.
21.    Effective Date/Termination.  This Plan will be effective as of the Effective Date.  No grants will be made on or after the Effective Date under the Predecessor Plan, provided that outstanding awards granted under the Predecessor Plan will continue unaffected following the Effective Date.  No grant will be made under this Plan on or after the tenth anniversary of the Effective Date, but all grants made prior to such date will continue in effect thereafter subject to the terms thereof and of this Plan.  For clarification purposes, the terms and conditions of this Plan shall not apply to or otherwise impact previously granted and outstanding awards under the Predecessor Plan, as applicable.
22.    Miscellaneous Provisions.
(a)    The Company will not be required to issue any fractional Common Shares pursuant to this Plan.  The Committee may provide for the elimination of fractions or for the settlement of fractions in cash.
(b)    This Plan will not confer upon any Participant any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate such Participant’s employment or other service at any time.
(c)    Except with respect to Section 22(e) of this Plan, to the extent that any provision of this Plan would prevent any Option Right that was intended to qualify as an Incentive Stock Option from qualifying as such, that provision will be null and void with respect to such Option Right.  Such provision, however, will remain in effect for other Option Rights and there will be no further effect on any provision of this Plan.
(d)    No award under this Plan may be exercised by the holder thereof if such exercise, and the receipt of cash or shares thereunder, would be, in the opinion of counsel selected by the Company, contrary to law or the regulations of any duly constituted authority having jurisdiction over this Plan.
(e)    Absence on leave approved by a duly constituted officer of the Company or any of its Subsidiaries will not be considered interruption or termination of service of any employee for any purposes of this Plan or awards granted hereunder.
(f)    No Participant will have any rights as a Stockholder with respect to any Common Shares subject to awards granted to him or her under this Plan prior to the date as of which he or she is actually recorded as the holder of such Common Shares upon the share records of the Company.
(g)    The Committee may condition the grant of any award or combination of awards authorized under this Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary to the Participant.

12

(h)    Except with respect to Option Rights and Appreciation Rights, the Committee may permit Participants to elect to defer the issuance of Common Shares under this Plan pursuant to such rules, procedures or programs as it may establish for purposes of this Plan and which are intended to comply with the requirements of Section 409A of the Code.  The Committee also may provide that deferred issuances and settlements include the crediting of dividend equivalents or interest on the deferral amounts.
(i)    If any provision of this Plan is or becomes invalid or unenforceable in any jurisdiction, or would disqualify this Plan or any award under any law deemed applicable by the Committee, such provision will be construed or deemed amended or limited in scope to conform to applicable laws or, in the discretion of the Committee, it will be stricken and the remainder of this Plan will remain in full force and effect.  Notwithstanding anything in this Plan or an Evidence of Award to the contrary, nothing in this Plan or in an Evidence of Award prevents a Participant from providing, without prior notice to the Company, information to governmental authorities regarding possible legal violations or otherwise testifying or participating in any investigation or proceeding by any governmental authorities regarding possible legal violations, and for purpose of clarity a Participant is not prohibited from providing information voluntarily to the Securities and Exchange Commission pursuant to Section 21F of the Exchange Act.
23.    Stock-Based Awards in Substitution for Awards Granted by Another Company.  Notwithstanding anything in this Plan to the contrary:
(a)    Awards may be granted under this Plan in substitution for or in conversion of, or in connection with an assumption of, stock options, stock appreciation rights, restricted stock, restricted stock units or other stock or stock-based awards held by awardees of an entity engaging in a corporate acquisition or merger transaction with the Company or any Subsidiary.  Any conversion, substitution or assumption will be effective as of the close of the merger or acquisition, and, to the extent applicable, will be conducted in a manner that complies with Section 409A of the Code.  The awards so granted may reflect the original terms of the awards being assumed or substituted or converted for and need not comply with other specific terms of this Plan, and may account for Common Shares substituted for the securities covered by the original awards and the number of shares subject to the original awards, as well as any exercise or purchase prices applicable to the original awards, adjusted to account for differences in stock prices in connection with the transaction.
(b)    In the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary merges has shares available under a pre-existing plan previously approved by shareholders and not adopted in contemplation of such acquisition or merger, the shares available for grant pursuant to the terms of such plan (as adjusted, to the extent appropriate, to reflect such acquisition or merger) may be used for awards made after such acquisition or merger under this Plan; provided, however, that awards using such available shares may not be made after the date awards or grants could have been made under the terms of the pre-existing plan absent the acquisition or merger, and may only be made to individuals who were not employees or directors of the Company or any Subsidiary prior to such acquisition or merger.
(c)    Any Common Shares that are issued or transferred by, or that are subject to any awards that are granted by, or become obligations of, the Company under Sections 23(a) or 23(b) of this Plan will not reduce the Common Shares available for issuance or transfer under this Plan or otherwise count against the limits contained in Section 3 of this Plan.  In addition, no Common Shares subject to an award that is granted by, or becomes an obligation of, the Company under Sections 23(a) or 23(b) of this Plan, will be added to the aggregate limit contained in Section 3(a)(i) of this Plan.

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]