Document:

Sphere 3D Corp. - Exhibit 4.1 - Filed by newsfilecorp.com

EXHIBIT 4.1 

SPHERE 3D CORP. 
RESTRICTED STOCK UNIT AWARD
AGREEMENT 
(Inducement Grant) 

      
     THIS RESTRICTED STOCK UNIT AWARD AGREEMENT
(this “Agreement”) dated _____________________ by and between Sphere
3D Corp., a corporation incorporated under the laws of the Province of Ontario
(the “Corporation”), and ___________________________ (the
“Grantee”) evidences the award (the “Award”) granted by the
Corporation to the Grantee as to the number of the Corporation’s stock units
(“Stock Units”) first set forth below. The Award and this Agreement are
intended to qualify (i) for exemption from any requirement under the listing
rules that may be applicable to the Corporation that equity compensation
arrangements be approved by the Corporation’s shareholders, and (ii) for
exemption from the Canadian prospectus requirements. 

	Number of Stock Units:1 	Award Date:
  ___________________________
	  	  
	Vesting Commencement
      Date:     
    _________________________________
	 
	Vesting1 [The Stock
      Units subject to the Award will vest in six (6) equal installments, with
      the first installment vesting six (6) months after the Vesting
      Commencement Date and an additional installment vesting at the end of each
      six-month period thereafter.] [Subject to
      adjustment to reflect the vesting schedule approved by the
      Board for the particular grant.] 

            The
Award is subject to the Terms and Conditions of Restricted Stock Units (the
“Terms”) attached to this Agreement (incorporated herein by this
reference). The Award has been granted to the Grantee in addition to, and not in
lieu of, any other form of compensation otherwise payable or to be paid to the
Grantee. The Grantee’s participation in the Award is voluntary. The parties
agree to the terms of the Award set forth herein. The Grantee acknowledges
receipt of a copy of the Terms. 

            As
used herein, the term “stock unit” means a non-voting unit of measurement
which is deemed for bookkeeping purposes to be equivalent to one outstanding
Common Share of the Corporation (subject to adjustment as provided in Section
7(a) of the Terms) solely for purposes of this Agreement. The Stock Units shall
be used solely as a device for the determination of the payment to eventually be
made to the Grantee if such Stock Units vest pursuant to the terms hereof. The
Stock Units shall not be treated as property or as a trust fund of any kind.

	“GRANTEE” 	 	SPHERE 3D CORP. 
		 	a corporation incorporated under the laws of
      the Province of Ontario 
	 	 	 
	Signature 	 	  
	  	 	By:___________________________________________ 

	  	 	  
	 	 	 
	Print Name:	 	Name: 
      ________________________________________ 
	 	 	 
	 	 	 
	Print Name 	 	  
	 	 	 
	  	 	Title:  
      _________________________________________ 

_______________________________
1 Subject to
adjustment under Section 7(a) of the Terms. 

SPHERE 3D CORP. 
TERMS AND CONDITIONS OF RESTRICTED
STOCK UNITS
(Inducement Grant) 

            1.
Vesting. Subject to Section 6 below, the Award shall vest and
become nonforfeitable as set forth on the cover page of this Agreement.

            2.
Continuance of Employment/Service. The vesting schedule
requires continued employment or service through each applicable vesting date as
a condition to the vesting of the applicable installment of the Award and the
rights and benefits under this Agreement. Employment or service for only a
portion of the vesting period, even if a substantial portion, will not entitle
the Grantee to any proportionate vesting or avoid or mitigate a termination of
rights and benefits upon or following a termination of employment or services as
provided in Section 6 below. 

            Nothing
contained in this Agreement constitutes an employment or service commitment by
the Corporation, affects the Grantee’s status as an employee at will who is
subject to termination without cause, confers upon the Grantee any right to
remain employed by or in service to the Corporation or any corporation or other
entity a majority of whose outstanding voting stock or voting power is
beneficially owned directly or indirectly by the Corporation (a
“Subsidiary”), interferes in any way with the right of the Corporation or
any Subsidiary at any time to terminate such employment or services, or affects
the right of the Corporation or any Subsidiary to increase or decrease the
Grantee’s other compensation or benefits. Nothing in this Agreement, however, is
intended to adversely affect any independent contractual right of the Grantee
without his or her consent thereto. 

            3.
No Dividend and Voting Rights. The Grantee shall have no
rights as a shareholder of the Corporation, no dividend rights and no voting
rights, with respect to the Stock Units and any Common Shares underlying or
issuable in respect of such Stock Units until such Common Shares are actually
issued to and held of record by the Grantee. No adjustments will be made for
dividends or other rights of a holder for which the record date is prior to the
date of issuance of such shares. 

            4.
Restrictions on Transfer. Neither the Award, nor any interest
therein or amount or shares payable in respect thereof may be sold, assigned,
transferred, pledged or otherwise disposed of, alienated or encumbered, either
voluntarily or involuntarily. The transfer restrictions in the preceding
sentence shall not apply to (a) transfers to the Corporation, or (b) transfers
by will or the laws of descent and distribution, or (c) transfers to a family
member (or former family member) pursuant to a domestic relations order if
approved or ratified by the Administrator, or (d) subject to the written
approval of the Administrator and compliance with applicable federal,
provincial, state and foreign securities laws, transfers to a family member that
are not made for value (other than nominal consideration, settlement of marital
property rights, or for interests in an entity in which more than 50% of the
voting interests are held by the Grantee or by the Grantee’s family members).

            As
used herein, the “Administrator” means the Board of Directors of the
Corporation (the “Board”) or one or more committees appointed by the
Board or another committee (within its delegated authority and in the manner and on the terms
authorized by the Board) to administer all or certain aspects of this
Agreement.

1 

            5.
Timing and Manner of Payment of Stock Units. Each Stock Unit
that becomes vested pursuant to the terms hereof (the date of such vesting, the
“Vesting Date” of such Stock Unit) will be paid on or as soon as
practicable after the Vesting Date (and in all events within two and one-half
months following the Vesting Date). In payment of the Stock Units, the
Corporation shall deliver to the Grantee a number of the Corporation’s common
shares (“Common Shares”) (either by delivering one or more certificates
for such shares or by entering such shares in book entry form, as determined by
the Corporation in its discretion, and, if the Grantee is a resident of Canada,
such shares to be issued from treasury if and to the extent required by
applicable law) equal to the number of Stock Units subject to this Award that
vest on the applicable Vesting Date, unless such Stock Units terminate prior to
the given Vesting Date pursuant to Section 6. The Award and the Corporation’s
obligation to deliver Common Shares or otherwise make payment with respect to
vested Stock Units is subject to (a) compliance with all applicable federal,
provincial, state, local and foreign laws, rules and regulations (including but
not limited to provincial, state and federal securities law and federal margin
requirements) and to such approvals by any listing, regulatory or governmental
authority as may, in the opinion of counsel for the Corporation, be necessary or
advisable in connection therewith and (b) the condition precedent that the
Grantee or other person entitled to receive any shares hereunder with respect to
the vested Stock Units deliver to the Corporation such assurances and
representations as the Administrator may deem necessary or desirable to assure
compliance with all applicable legal and accounting requirements. The Grantee
shall have no further rights with respect to any Stock Units that are paid or
that terminate pursuant to Section 6. 

            6.
Effect of Termination of Employment or Service; Change in Control;
[Employment Agreement].

                          (a)
General. Except as provided in Sections 6(b) and (c) below, the Grantee’s
Stock Units shall terminate to the extent such units have not become vested
prior to the Grantee’s Termination Date (as defined below). If any unvested
Stock Units are terminated hereunder, such Stock Units shall automatically
terminate and be cancelled as of the Termination Date without payment of any
consideration by the Corporation and without any other action by the Grantee, or
the Grantee’s beneficiary or personal representative, as the case may be. For
these purposes, “Termination Date” means the Grantee’s last day of actual
and active employment or service with the Corporation or any of its
Subsidiaries. For greater certainty, no period of notice of termination, if any,
or payment in lieu of notice that is given or ought to have been given pursuant
to the Grantee’s applicable employment agreement, contract for service or at law
that follows or is in respect of a period after the last date of actual and
active employment will be considered as extending Grantee’s period of employment
or services for purposes of determining the Grantee’s entitlement under the
Award.

                          (b)
[Acceleration Upon Certain Terminations. 

            (1)       
If either (i) the Grantee’s employment or service with the Corporation or one of
its Subsidiaries terminates due to the Grantee’s Disability or death, or (ii) a
Change in Control Event occurs and, at any time within sixty (60) days before or two (2) years
after the Change in Control Event, the Grantee’s employment or service with the
Corporation or one of its Subsidiaries is terminated by the Corporation or such
Subsidiary without Cause or by the Executive for Good Reason, the Stock Units,
to the extent then outstanding and unvested, shall vest in full upon the date of
such termination of employment or service (or, if later, upon the Change in
Control Event). 

2 

            (2)       
If the Grantee’s employment or service with the Corporation or one of its
Subsidiaries is terminated by the Corporation or such Subsidiary without Cause
or by the Executive for Good Reason, and such termination occurs at any time
other than within sixty (60) days before or two (2) years after a Change in
Control Event, the Award will vest on the Termination Date with respect to a
number of Stock Units determined by multiplying (x) the number of
then-outstanding and unvested Stock Units that would have otherwise vested on
the next scheduled “Vesting Date” set forth on the cover page of this Agreement
that follows the Grantee’s Termination Date, by (y) a fraction, the numerator of
which will be the number of whole months that have elapsed between the Vesting
Date that immediately preceded the Grantee’s Termination Date (or, in the case
of a termination prior to the first scheduled Vesting Date, the Vesting
Commencement Date) and the Grantee’s Termination Date, and the denominator of
which will be the total number of months between the Vesting Date that
immediately preceded the Grantee’s Termination Date (or, in the case of a
termination prior to the first scheduled Vesting Date, the Vesting Commencement
Date) and the next scheduled Vesting Date that follows the Grantee’s Termination
Date. Any Stock Units subject to the Award that are not vested after giving
effect to the preceding sentence shall terminate on the Termination Date. 

            (3)       
Notwithstanding any other provision herein, as a condition precedent to any
acceleration of vesting pursuant to this Section 6(b), the Grantee shall provide
the Corporation with a valid, executed general release agreement in the form
attached to any employment, severance, retention or similar agreement the
Grantee may have with the Corporation or any of its Subsidiaries in effect on
the Award Date (or, if there is no such agreement or no such form of release
attached thereto, in a form acceptable to the Corporation), and such release
shall have not been revoked pursuant to any revocation rights afforded by
applicable law. The Corporation shall provide the final form of release
agreement to the Grantee not later than seven (7) days following the Termination
Date, and the Grantee shall be required to execute and return such release to
the Corporation within twenty-one (21) days (or forty-five (45) days if such
longer period of time is required to make the release maximally enforceable
under applicable law) after the Corporation provides the form of release to the
Grantee. If the period for the Grantee to provide such release spans two
calendar years, then the payment of the Stock Units as provided in Section 5
shall in all events be made in the second of such two years. 

3 

[This Section 6(b) and Exhibit A
are subject to adjustment on a case-by-case basis to reflect any acceleration
provisions approved by the Board for the particular grant.] 

                          (c)
[Employment Agreement. The Stock Units are also subject to
any rights to accelerated vesting the Grantee may have under any employment,
severance, retention or similar agreement with the Corporation or any of its
Subsidiaries in effect on the Award Date (with any such acceleration rights to
be applied, in the case of a termination of the Grantee’s employment or service
other than in connection with a Change in Control Event, after giving effect to
the prorated vesting described above).] [This paragraph to be
included only for a few key executives on a case-by-case basis.]

                          (d)
Defined Terms. For purposes of this Agreement, the terms Cause, Good
Reason, Disability and Change in Control Event have the meanings given to such
terms on Exhibit A hereto.

             7.
Adjustments; Corporate Transactions.

                          (a)
Adjustments. Subject to Section 7(b), upon (or, as may be necessary to
effect the adjustment, immediately prior to): any reclassification,
recapitalization, stock split (including a stock split in the form of a stock
dividend) or reverse stock split; any merger, amalgamation, combination,
consolidation, conversion or other reorganization; any spin-off, split-up, or
similar extraordinary dividend distribution in respect of the Common Shares; or
any exchange of Common Shares or other securities of the Corporation, or any
similar, unusual or extraordinary corporate transaction in respect of the Common
Shares; then the Administrator shall equitably and proportionately adjust the
number, amount and type of Common Shares (or other securities or property)
subject to the Award, to the extent necessary to preserve (but not increase) the
level of incentives intended by the Award. Upon (or, as may be necessary to
effect the adjustment, immediately prior to) any event or transaction described
in the preceding sentence or a sale of all or substantially all of the business
or assets of the Corporation as an entirety, the Administrator shall equitably
and proportionately adjust the performance standards (if any) applicable to the
Award to the extent necessary to preserve (but not increase) the level of
incentives intended by the Award. It is intended that, if possible, any
adjustments contemplated by the preceding two sentences be made in a manner that
satisfies applicable Canadian and U.S. legal, tax (including, without limitation
and as applicable in the circumstances, Section 424 of Internal Revenue Code of
1986, as amended (the “Code”), Section 409A of the Code and Section
162(m) of the Code) and accounting (so as to not trigger any charge to earnings
with respect to such adjustment) requirements. Any good faith determination by
the Administrator as to whether an adjustment is required in the circumstances
pursuant to this Section 7.1(a) and the extent and nature of any such
adjustment, shall be conclusive and binding on all persons. 

                          (b)
Corporate Transactions - Assumption and Termination of Award. Upon the
occurrence of any of the following: any recapitalization, merger, amalgamation,
combination, consolidation, conversion or other reorganization in connection
with which the Corporation does not survive (or does not survive as a public
company in respect of its Common Shares); any exchange of Common Shares or other
securities of the Corporation in connection with which the Corporation does not
survive (or does not survive as a public company in respect of its Common Shares); a sale of all or substantially all the business, stock
or assets of the Corporation in connection with which the Corporation does not
survive (or does not survive as a public company in respect of its Common
Shares); a dissolution of the Corporation; or any other event in which the
Corporation does not survive (or does not survive as a public company in respect
of its Common Shares); then the Administrator may make provision for a cash
payment in settlement of, or for the termination, assumption, substitution or
exchange of the Award or the cash, securities or property deliverable to the
Grantee pursuant to the Award, based upon, to the extent relevant under the
circumstances, the distribution or consideration payable to holders of the
Common Shares upon or in respect of such event. Upon the occurrence of any event
described in the preceding sentence, then, unless the Administrator has made a
provision for the substitution, assumption, exchange or other continuation or
settlement of the Award or the Award would otherwise continue in accordance with
its terms in the circumstances, the Award shall become payable to the Grantee
and shall terminate upon the related event. Without limiting the foregoing, in
connection with any event referred to in the preceding sentence or any Change in
Control Event, the Administrator may, in its discretion, provide for the
accelerated vesting of the Award as and to the extent determined by the
Administrator in the circumstances. The Administrator may adopt such valuation
methodologies for the Award as it deems reasonable in the event of a cash or
property settlement. In any of the events referred to in this Section 7(b), the
Administrator may take such action contemplated by this Section 7(b) prior to
such event (as opposed to on the occurrence of such event) to the extent that
the Administrator deems the action necessary to permit the Grantee to realize
the benefits intended to be conveyed with respect to the underlying shares.
Without limiting the generality of the foregoing, the Administrator may deem an
acceleration and/or termination to occur immediately prior to the applicable
event and, in such circumstances, will reinstate the original terms of the award
if an event giving rise to an acceleration and/or termination does not occur.
Any good faith determination by the Administrator pursuant to its authority
under this Section 7(b) shall be conclusive and binding on all persons.

4 

            8.
Tax Withholding. The Corporation shall reasonably determine
the amount of any federal, state, local, foreign, provincial or other income,
employment, or other taxes which the Corporation or any of its Subsidiaries may
reasonably be obligated to withhold with respect to the grant, vesting or other
event with respect to the Stock Units. If such withholding event occurs in
connection with the distribution of Common Shares in respect of the Stock Units
and subject to compliance with all applicable laws, the Grantee hereby agrees
that the appropriate number of whole shares, valued at their then fair market
value (with the “fair market value” of such shares determined in accordance with
the applicable provisions of Section 5.6 of the Sphere 3D Corp. 2015 Performance
Incentive Plan (or the corresponding provisions of a successor plan thereto)),
to satisfy any withholding obligations of the Corporation or its Subsidiaries
with respect to such distribution at the minimum applicable withholding rates
(such number of shares, the “Minimum Withholding Shares”) shall
automatically be sold by or on behalf of the Grantee on the open market and the
proceeds of such sale shall be promptly remitted to the Corporation to satisfy
such tax withholding obligations. In the event the Grantee has (prior to the
applicable Vesting Date) entered into an irrevocable arrangement (on terms
reasonably acceptable to the Corporation) with a third-party broker to use the
proceeds of a sale of Common Shares on the market to provide for tax withholding
in connection with any payment of the Stock Units and has provided the terms of
such arrangement to the Corporation (a “Broker Arrangement”), the Grantee
and the Corporation agree that, at the time of such payment of the Stock Units,
the Corporation will deliver to the Grantee’s designated broker a
number of whole Common Shares equal to the Minimum Withholding Shares. If there
is no such Broker Arrangement in place on the applicable Vesting Date, such sale
of the Minimum Withholding Shares shall be conducted through a broker designated
by the Corporation. The Grantee shall execute such documents as may reasonably
be requested by the Corporation or the broker, as applicable, in order to
implement such transactions and shall otherwise comply with the administrative
rules and procedures established by the Corporation with respect to such
transactions. If, however, any withholding event occurs with respect to the
Stock Units other than in connection with the distribution of shares of Common
Stock in respect of the Stock Units, or if the Corporation’s withholding
obligations cannot be satisfied by such market sale or such withholding and
reacquisition of shares as described above because such a sale, withholding or
reacquisition, as the case may be, would cause the Corporation to violate
applicable law, the Corporation shall be entitled to require a cash payment by
or on behalf of the Grantee and/or to deduct from other compensation payable to
the Grantee the amount of any such withholding obligations. 

5 

            9.
Notices. Any notice to be given under the terms of this
Agreement shall be in writing and addressed to the Corporation at its principal
office to the attention of the Secretary, and to the Grantee at the Grantee’s
last address reflected on the Corporation’s records, or at such other address as
either party may hereafter designate in writing to the other. Any such notice
shall be given only when received, but if the Grantee is no longer an employee
of or in service to the Corporation, shall be deemed to have been duly given by
the Corporation when enclosed in a properly sealed envelope addressed as
aforesaid, registered or certified, and deposited (postage and registry or
certification fee prepaid) in a post office or branch post office regularly
maintained by the United States Government. 

            10.
Entire Agreement; Amendment. This Agreement constitutes the
entire agreement and supersede all prior understandings and agreements, written
or oral, of the parties hereto with respect to the subject matter hereof. The
Administrator by agreement or resolution may waive conditions of or limitations
on the Award, without the consent of the Grantee, and may make other changes to
the terms and conditions of the Award; provided, however, that no amendment of
the Award shall, without written consent of the Grantee, affect in any manner
materially adverse to the Grantee any rights or benefits of the Grantee or
obligations of the Corporation under the Award. Changes, settlements and other
actions contemplated by Section 7 above shall not be deemed to constitute
changes or amendments for purposes of this Section 10. Notwithstanding the
foregoing, the Corporation may, without the consent of the Grantee, amend the
tax-withholding procedures set forth in Section 8 above to provide that the
Corporation’s tax withholding obligations in connection with a distribution of
Common Shares in respect of the Stock Units shall be satisfied by the
Corporation reducing the number of Common Shares subject to such distribution by
the number of the Minimum Withholding Shares (as opposed to a market sale of
such shares); provided, however, that if the Corporation adopts such an
amendment of the procedures set forth in Section 8, such procedures shall not be
further amended within the one-year period thereafter. 

            11.
Limitation on Grantee’s Rights. The Award
confers no rights or interests other than as herein provided. This
Agreement creates only a contractual obligation on the part of the Corporation
as to amounts payable and shall not be construed as creating a trust. The Award
does not, in and of itself, have any assets. The Grantee shall have only the
rights of a general unsecured creditor of the Corporation with respect to amounts
credited and benefits payable, if any, with respect to the Stock Units, and
rights no greater than the right to receive the Common Shares as a general
unsecured creditor with respect to Stock Units, as and when payable
hereunder.

6 

            12.
Counterparts. This Agreement may be executed simultaneously in
any number of counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same instrument.

            13.
Section Headings. The section headings of this Agreement are
for convenience of reference only and shall not be deemed to alter or affect any
provision hereof. 

            14.
Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of California
without regard to conflict of law principles thereunder. 

            15.
Construction. It is intended that the terms of the Award will
not result in the imposition of any tax liability pursuant to Section 409A of
the Code. The Award is intended as a “short-term deferral” under Section 409A of
the Code, and this Agreement shall be construed and interpreted consistent with
that intent.

            16.
Language. The parties hereto have agreed that this Agreement
be drafted in English. Les parties aux présentes ont convenu que le présent
document soit rédigé en anglais. 

            17.
No Advice Regarding Grant. The Grantee is hereby advised to
consult with his or her own tax, legal and/or investment advisors with respect
to any advice the Grantee may determine is needed or appropriate with respect to
the Stock Units (including, without limitation, to determine the foreign, state,
local, estate and/or gift tax consequences with respect to the Award). Neither
the Corporation nor any of its officers, directors, affiliates or advisors makes
any representation (except for the terms and conditions expressly set forth in
this Award Agreement) or recommendation with respect to the Award. Except for
the withholding rights set forth in Section 8 above, the Grantee is solely
responsible for any and all tax and other liability that may arise with respect
to the Award or any sale of shares issued or delivered with respect to the
Award.

            18.
Insider Trading Rules. The Grantee hereby acknowledges being
subject to all applicable laws, rules and regulations, as well as Corporation
policies, regarding insider trading. 

7 

EXHIBIT A 

DEFINED TERMS 

For purposes of this Agreement, the
following definitions shall apply: 

	 	
      • 
	
      “Cause” has the meaning given to such term in any
      employment agreement between the Grantee and the Corporation or any of its
      Subsidiaries as in effect on the Award Date or, if there is no such
      agreement (or such agreement does not include a definition of such term),
      shall mean: (a) acts or omissions constituting reckless or willful
      misconduct on the Grantee’s part with respect to the Grantee’s obligations
      or otherwise relating to the business of the Corporation or any of its
      Subsidiaries that causes material harm to the Corporation or such
      Subsidiary or to the reputation of the Corporation or such Subsidiary; (b)
      the Grantee’s material breach of any agreement between the Grantee and the
      Corporation or one of its Subsidiaries, which breach the Grantee fails to
      cure within thirty (30) days after receiving written notice from the Board
      that specifies the specific conduct giving rise to the alleged breach; (c)
      the Grantee’s conviction or entry of a plea of nolo contendere for fraud,
      theft or embezzlement, or any felony or crime of moral turpitude; or (d)
      the Grantee’s willful neglect of duties as reasonably determined by the
      Board, which the Grantee fails to cure within thirty (30) days after
      receiving written notice from the Board that specifies the specific duties
      that the Grantee has failed to perform. 

	 	  	  
	 	
      • 
	
      “Good Reason” has the meaning given to such term
      in any employment agreement between the Grantee and the Corporation or any
      of its Subsidiaries as in effect on the Award Date or, if there is no such
      agreement (or such agreement does not include a definition of such term),
      shall mean a voluntary termination by the Grantee of the Grantee’s
      employment with the Corporation or one of its Subsidiaries within one (1)
      year after the initial occurrence of one or more of the following (without
      the Grantee’s written consent): (a) the Corporation or such Subsidiary
      reduces the Grantee’s base compensation (including commissions) by more
      than ten percent (10%), (b) the Grantee’s authority, responsibilities
      and/or duties are materially reduced so that the Grantee’s duties are no
      longer consistent with the Grantee’s position as of the Award Date and the
      Grantee no longer reports directly to the [_______________] of the
      Corporation; (c) a material breach by the Corporation or one of its
      Subsidiaries of any agreement between the Grantee and the Corporation or
      such Subsidiary; or (d) the Corporation or one of its Subsidiaries
      relocates the Grantee’s principal place of work to a location more than
      fifty (50) miles from the Grantee’s principal place of work as of the
      Award Date; provided, however, that such a termination by the Grantee
      shall not be a termination for Good Reason unless the Grantee notifies the
      Corporation in writing within sixty (60) days following the initial
      existence of the circumstance constituting Good Reason, the Corporation is
      given thirty (30) days from the receipt of such notice in which the
      Corporation may remedy or cure such condition, and the Corporation fails
      to remedy or cure the condition set forth in the Grantee’s notice within
      thirty (30) days of receipt of such notice. For purposes of the foregoing,
      if the Grantee does not timely provide notice to the Corporation as to a
      particular circumstance constituting Good Reason, then the
  Grantee shall be deemed to have waived the right to
  terminate for Good Reason with respect to such circumstance. 

8 

	 	• 	
      “Disability” has the meaning given to such term
      (or a similar term) in any employment agreement between the Grantee and
      the Corporation or any of its Subsidiaries as in effect on the Award Date
      or, if there is no such agreement (or such agreement does not include a
      definition of such term), shall mean the Grantee (as determined solely by
      the Administrator on the basis of such medical evidence as the
      Administrator deems warranted under the circumstances) is unable to engage
      in any substantial gainful activity by reason of any medically
      determinable physical or mental impairment which can be expected to result
      in death or which has lasted or can be expected to last for a continuous
      period of not less than twelve (12) months. 

	 	  	     
	 	• 	
      “Change in Control Event” means any of the
      following: 

	 	(i) 	
      The acquisition by any individual, entity or group
      (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a
      “Person”)) of beneficial ownership (within the meaning of Rule
      13d-3 promulgated under the Exchange Act) of more than fifty percent (50%)
      of either (1) the then- outstanding common shares of the Corporation (the
      “Outstanding Company Common Shares”) or (2) the combined voting
      power of the then-outstanding voting securities of the Corporation
      entitled to vote generally in the election of directors (the
      “Outstanding Company Voting Securities”); provided, however, that,
      for purposes of this clause (i), the following acquisitions shall not
      constitute a Change in Control Event; (A) any acquisition directly from
      the Corporation, (B) any acquisition by the Corporation, (C) any
      acquisition by any employee benefit plan (or related trust) sponsored or
      maintained by the Corporation or any affiliate of the Corporation or a
      successor, or (D) any acquisition by any entity pursuant to a transaction
      that complies with clauses (iii)(1), (2) and (3) below;

	 	 	 
	 	(ii) 	
      Individuals who, as of the Award Date, constitute the
      Board (the “Incumbent Board”) cease for any reason to constitute at
      least a majority of the Board; provided, however, that any individual
      becoming a director subsequent to the Award Date whose election, or
      nomination for election by the Corporation’s shareholders, was approved by
      a vote of at least two-thirds of the directors then comprising the
      Incumbent Board (including for these purposes, the new members whose
      election or nomination was so approved, without counting the member and
      his predecessor twice) shall be considered as though such individual were
      a member of the Incumbent Board, but excluding, for this purpose, any such
      individual whose initial assumption of office occurs as a result of an
      actual or threatened election contest 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;

	 	 	 
	 	(iii) 	
      Consummation of a reorganization, merger, amalgamation,
      statutory share exchange or consolidation or similar corporate transaction
      involving the Corporation or any of its Subsidiaries, a sale or other
      disposition of all or substantially all of the assets of the Corporation,
      or the acquisition of assets or stock of another entity by the Corporation
      or any of its Subsidiaries (each, a “Business Combination”), in
      each case unless, following such Business Combination, (1) all or
      substantially all of the individuals and entities that were the beneficial
      owners of the Outstanding Company Common Shares and the Outstanding
      Company Voting Securities immediately prior to such Business Combination
      beneficially own, directly or indirectly, more than fifty percent (50%) of
      the then-outstanding common shares and the combined voting power of the
      then-outstanding voting securities entitled to vote generally in the
      election of directors, as the case may be, of the entity resulting from
      such Business Combination (including, without limitation, an entity that,
      as a result of such transaction, owns the Corporation or all or
      substantially all of the Corporation's assets directly or through one or
      more subsidiaries (a “Parent”)) in substantially the same
      proportions as their ownership immediately prior to such Business
      Combination of the Outstanding Company Common Shares and the Outstanding
      Company Voting Securities, as the case may be, (2) no Person (excluding
      any entity resulting from such Business Combination or a Parent or any
      employee benefit plan (or related trust) of the Corporation or such entity
      resulting from such Business Combination or Parent) beneficially owns,
      directly or indirectly, more than fifty percent (50%) of, respectively,
      the then-outstanding shares of common stock of the entity resulting from
      such Business Combination or the combined voting power of the
      then-outstanding voting securities of such entity, except to the extent
      that the ownership in excess of fifty percent (50%) existed prior to the
      Business Combination, and (3) at least a majority of the members of the
      board of directors or trustees of the entity resulting from such Business
      Combination or a Parent were members of the Incumbent Board at the time of
      the execution of the initial agreement or of the action of the Board
providing for such Business Combination; or

9 

	 	(iii) 	Consummation of a reorganization, merger, amalgamation,
      statutory share exchange or consolidation or similar corporate transaction
      involving the Corporation or any of its Subsidiaries, a sale or other
      disposition of all or substantially all of the assets of the Corporation,
      or the acquisition of assets or stock of another entity by the Corporation
      or any of its Subsidiaries (each, a “Business Combination”), in
      each case unless, following such Business Combination, (1) all or
      substantially all of the individuals and entities that were the beneficial
      owners of the Outstanding Company Common Shares and the Outstanding
      Company Voting Securities immediately prior to such Business Combination
      beneficially own, directly or indirectly, more than fifty percent (50%) of
      the then-outstanding common shares and the combined voting power of the
      then-outstanding voting securities entitled to vote generally in the
      election of directors, as the case may be, of the entity resulting from
      such Business Combination (including, without limitation, an entity that,
      as a result of such transaction, owns the Corporation or all or
      substantially all of the Corporation's assets directly or through one or
      more subsidiaries (a “Parent”)) in substantially the same
      proportions as their ownership immediately prior to such Business
      Combination of the Outstanding Company Common Shares and the Outstanding
      Company Voting Securities, as the case may be, (2) no Person (excluding
      any entity resulting from such Business Combination or a Parent or any
      employee benefit plan (or related trust) of the Corporation or such entity
      resulting from such Business Combination or Parent) beneficially owns,
      directly or indirectly, more than fifty percent (50%) of, respectively,
      the then-outstanding shares of common stock of the entity resulting from
      such Business Combination or the combined voting power of the
      then-outstanding voting securities of such entity, except to the extent
      that the ownership in excess of fifty percent (50%) existed prior to the
      Business Combination, and (3) at least a majority of the members of the
      board of directors or trustees of the entity resulting from such Business
      Combination or a Parent were members of the Incumbent Board at the time of
      the execution of the initial agreement or of the action of the Board
      providing for such Business Combination; or

	 		
       

	 	(iv) 	
      Approval by the shareholders of the Corporation of a
      complete liquidation or dissolution of the Corporation other than in the
      context of a transaction that does not constitute a Change in Control
      Event under clause (iii) above.

10Sphere 3D Corp. - Exhibit 4.2 - Filed by newsfilecorp.com

EXHIBIT 4.2 

SPHERE 3D CORP. 
RESTRICTED STOCK UNIT AWARD
AGREEMENT 
(Inducement Grant) 

            THIS
RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”) dated
_____________________ by and between Sphere 3D Corp., a corporation incorporated
under the laws of the Province of Ontario (the “Corporation”), and
___________________________ (the “Grantee”) evidences the award (the
“Award”) granted by the Corporation to the Grantee as to the number of
the Corporation’s stock units (“Stock Units”) first set forth below. The
Award and this Agreement are intended to qualify (i) for exemption from any
requirement under the listing rules that may be applicable to the Corporation
that equity compensation arrangements be approved by the Corporation’s
shareholders, and (ii) for exemption from the Canadian prospectus requirements.
le to the Corporation that equity compensation
arrangements be approved by the Corporation’s shareholders, and (ii) for
exemption from the Canadian prospectus requirements. 

  	Number of Stock Units:1 	Award Date: ___________________________
	 	 
	Vesting Commencement
        Date:     
        _________________________________
	 
	Vesting1 [The Stock
        Units subject to the Award will vest in six (6) equal installments, with
        the first installment vesting six (6) months after the Vesting
        Commencement Date and an additional installment vesting at the end of each
        six-month period thereafter.] [Subject to adjustment to reflect the vesting schedule approved by the
          Board for the particular grant.] 

           
The Award is subject to the Terms and Conditions of Restricted Stock Units (the
“Terms”) attached to this Agreement (incorporated herein by this
reference). The Award has been granted to the Grantee in addition to, and not in
lieu of, any other form of compensation otherwise payable or to be paid to the
Grantee. The Grantee’s participation in the Award is voluntary. The parties
agree to the terms of the Award set forth herein. The Grantee acknowledges
receipt of a copy of the Terms.

            As
used herein, the term “stock unit” means a non-voting unit of measurement
which is deemed for bookkeeping purposes to be equivalent to one outstanding
Common Share of the Corporation (subject to adjustment as provided in Section
7(a) of the Terms) solely for purposes of this Agreement. The Stock Units shall
be used solely as a device for the determination of the payment to eventually be
made to the Grantee if such Stock Units vest pursuant to the terms hereof. The
Stock Units shall not be treated as property or as a trust fund of any kind.

	“GRANTEE” 	 	SPHERE 3D CORP. 
		 	a corporation incorporated under the laws of
      the Province of Ontario 
	 	 	 
	Signature 	 	 
	 	 	By:___________________________________________  
	 	 	 
	 	 	 
	Print Name:	 	Name: 
      ________________________________________ 
	 	 	 
	 	 	 
	Print Name 	 	 
	 	 	 
	 	 	Title:  
      _________________________________________ 

___________________________
1 Subject to
adjustment under Section 7(a) of the Terms. 

SPHERE 3D CORP. 
TERMS AND CONDITIONS OF RESTRICTED
STOCK UNITS
(Inducement Grant) 

            1.
Vesting. Subject to Section 6 below, the Award shall vest and
become nonforfeitable as set forth on the cover page of this Agreement.

            2.
Continuance of Employment/Service. The vesting schedule
requires continued employment or service through each applicable vesting date as
a condition to the vesting of the applicable installment of the Award and the
rights and benefits under this Agreement. Employment or service for only a
portion of the vesting period, even if a substantial portion, will not entitle
the Grantee to any proportionate vesting or avoid or mitigate a termination of
rights and benefits upon or following a termination of employment or services as
provided in Section 6 below. 

            Nothing
contained in this Agreement constitutes an employment or service commitment by
the Corporation, affects the Grantee’s status as an employee at will who is
subject to termination without cause, confers upon the Grantee any right to
remain employed by or in service to the Corporation or any corporation or other
entity a majority of whose outstanding voting stock or voting power is
beneficially owned directly or indirectly by the Corporation (a
“Subsidiary”), interferes in any way with the right of the Corporation or
any Subsidiary at any time to terminate such employment or services, or affects
the right of the Corporation or any Subsidiary to increase or decrease the
Grantee’s other compensation or benefits. Nothing in this Agreement, however, is
intended to adversely affect any independent contractual right of the Grantee
without his or her consent thereto. 

            3.
No Dividend and Voting Rights. The Grantee shall have no
rights as a shareholder of the Corporation, no dividend rights and no voting
rights, with respect to the Stock Units and any Common Shares underlying or
issuable in respect of such Stock Units until such Common Shares are actually
issued to and held of record by the Grantee. No adjustments will be made for
dividends or other rights of a holder for which the record date is prior to the
date of issuance of such shares. 

            4.
Restrictions on Transfer. Neither the Award, nor any interest
therein or amount or shares payable in respect thereof may be sold, assigned,
transferred, pledged or otherwise disposed of, alienated or encumbered, either
voluntarily or involuntarily. The transfer restrictions in the preceding
sentence shall not apply to (a) transfers to the Corporation, or (b) transfers
by will or the laws of descent and distribution, or (c) transfers to a family
member (or former family member) pursuant to a domestic relations order if
approved or ratified by the Administrator, or (d) subject to the written
approval of the Administrator and compliance with applicable federal,
provincial, state and foreign securities laws, transfers to a family member that
are not made for value (other than nominal consideration, settlement of marital
property rights, or for interests in an entity in which more than 50% of the
voting interests are held by the Grantee or by the Grantee’s family members).

            As
used herein, the “Administrator” means the Board of Directors of the
Corporation (the “Board”) or one or more committees appointed by the
Board or another committee (within its delegated authority and in the manner and on the terms
authorized by the Board) to administer all or certain aspects of this
Agreement.

1 

            5.
Timing and Manner of Payment of Stock Units. Each Stock Unit
that becomes vested pursuant to the terms hereof (the date of such vesting, the
“Vesting Date” of such Stock Unit) will be paid on or as soon as
practicable after the Vesting Date (and in all events within two and one-half
months following the Vesting Date). In payment of the Stock Units, the
Corporation shall deliver to the Grantee a number of the Corporation’s common
shares (“Common Shares”) (either by delivering one or more certificates
for such shares or by entering such shares in book entry form, as determined by
the Corporation in its discretion, and, if the Grantee is a resident of Canada,
such shares to be issued from treasury if and to the extent required by
applicable law) equal to the number of Stock Units subject to this Award that
vest on the applicable Vesting Date, unless such Stock Units terminate prior to
the given Vesting Date pursuant to Section 6. The Award and the Corporation’s
obligation to deliver Common Shares or otherwise make payment with respect to
vested Stock Units is subject to (a) compliance with all applicable federal,
provincial, state, local and foreign laws, rules and regulations (including but
not limited to provincial, state and federal securities law and federal margin
requirements) and to such approvals by any listing, regulatory or governmental
authority as may, in the opinion of counsel for the Corporation, be necessary or
advisable in connection therewith and (b) the condition precedent that the
Grantee or other person entitled to receive any shares hereunder with respect to
the vested Stock Units deliver to the Corporation such assurances and
representations as the Administrator may deem necessary or desirable to assure
compliance with all applicable legal and accounting requirements. The Grantee
shall have no further rights with respect to any Stock Units that are paid or
that terminate pursuant to Section 6. 

            6.
Effect of Termination of Employment or Service. The
Grantee’s Stock Units shall terminate to the extent such units have not become
vested prior to the Grantee’s Termination Date (as defined below), regardless of
the reason for the termination of the Grantee’s employment or service with the
Corporation or a Subsidiary, whether with or without cause, voluntarily or
involuntarily. If any unvested Stock Units are terminated hereunder, such Stock
Units shall automatically terminate and be cancelled as of the Termination Date
without payment of any consideration by the Corporation and without any other
action by the Grantee, or the Grantee’s beneficiary or personal representative,
as the case may be. For these purposes, “Termination Date” means the
Grantee’s last day of actual and active employment or service with the
Corporation or any of its Subsidiaries. For greater certainty, no period of
notice of termination, if any, or payment in lieu of notice that is given or
ought to have been given pursuant to the Grantee’s applicable employment
agreement, contract for service or at law that follows or is in respect of a
period after the last date of actual and active employment will be considered as
extending Grantee’s period of employment or services for purposes of determining
the Grantee’s entitlement under the Award.

            7.
Adjustments; Corporate Transactions.

                          (a)
Adjustments. Subject to Section 7(b), upon (or, as may be necessary to
effect the adjustment, immediately prior to): any reclassification,
recapitalization, stock split (including a stock split in the form of a stock
dividend) or reverse stock split; any merger, amalgamation, combination,
consolidation, conversion or other reorganization; any spin-off, split-up, or
similar extraordinary dividend distribution in respect of the Common
Shares; or any exchange of Common Shares or other securities of the Corporation,
or any similar, unusual or extraordinary corporate transaction in respect of the
Common Shares; then the Administrator shall equitably and proportionately adjust
the number, amount and type of Common Shares (or other securities or property)
subject to the Award, to the extent necessary to preserve (but not increase) the
level of incentives intended by the Award. Upon (or, as may be necessary to
effect the adjustment, immediately prior to) any event or transaction described
in the preceding sentence or a sale of all or substantially all of the business
or assets of the Corporation as an entirety, the Administrator shall equitably
and proportionately adjust the performance standards (if any) applicable to the
Award to the extent necessary to preserve (but not increase) the level of
incentives intended by the Award. It is intended that, if possible, any
adjustments contemplated by the preceding two sentences be made in a manner that
satisfies applicable Canadian and U.S. legal, tax (including, without limitation
and as applicable in the circumstances, Section 424 of Internal Revenue Code of
1986, as amended (the “Code”), Section 409A of the Code and Section
162(m) of the Code) and accounting (so as to not trigger any charge to earnings
with respect to such adjustment) requirements. Any good faith determination by
the Administrator as to whether an adjustment is required in the circumstances
pursuant to this Section 7.1(a) and the extent and nature of any such
adjustment, shall be conclusive and binding on all persons. 

2 

                          (b)
Corporate Transactions - Assumption and Termination of Award. Upon the
occurrence of any of the following: any recapitalization, merger, amalgamation,
combination, consolidation, conversion or other reorganization in connection
with which the Corporation does not survive (or does not survive as a public
company in respect of its Common Shares); any exchange of Common Shares or other
securities of the Corporation in connection with which the Corporation does not
survive (or does not survive as a public company in respect of its Common
Shares); a sale of all or substantially all the business, stock or assets of the
Corporation in connection with which the Corporation does not survive (or does
not survive as a public company in respect of its Common Shares); a dissolution
of the Corporation; or any other event in which the Corporation does not survive
(or does not survive as a public company in respect of its Common Shares); then
the Administrator may make provision for a cash payment in settlement of, or for
the termination, assumption, substitution or exchange of the Award or the cash,
securities or property deliverable to the Grantee pursuant to the Award, based
upon, to the extent relevant under the circumstances, the distribution or
consideration payable to holders of the Common Shares upon or in respect of such
event. Upon the occurrence of any event described in the preceding sentence,
then, unless the Administrator has made a provision for the substitution,
assumption, exchange or other continuation or settlement of the Award or the
Award would otherwise continue in accordance with its terms in the
circumstances, the Award shall become payable to the Grantee and shall terminate
upon the related event. Without limiting the foregoing, in connection with any
event referred to in the preceding sentence or any Change in Control Event, the
Administrator may, in its discretion, provide for the accelerated vesting of the
Award as and to the extent determined by the Administrator in the circumstances.
The Administrator may adopt such valuation methodologies for the Award as it
deems reasonable in the event of a cash or property settlement. In any of the
events referred to in this Section 7(b), the Administrator may take such action
contemplated by this Section 7(b) prior to such event (as opposed to on the
occurrence of such event) to the extent that the Administrator deems the action
necessary to permit the Grantee to realize the benefits intended to be conveyed
with respect to the underlying shares. Without limiting the generality of the
foregoing, the Administrator may deem an acceleration and/or termination to occur immediately
prior to the applicable event and, in such circumstances, will reinstate the
original terms of the award if an event giving rise to an acceleration and/or
termination does not occur. Any good faith determination by the Administrator
pursuant to its authority under this Section 7(b) shall be conclusive and
binding on all persons.

3 

            8.
Tax Withholding. The Corporation shall reasonably determine
the amount of any federal, state, local, foreign, provincial or other income,
employment, or other taxes which the Corporation or any of its Subsidiaries may
reasonably be obligated to withhold with respect to the grant, vesting or other
event with respect to the Stock Units. If such withholding event occurs in
connection with the distribution of Common Shares in respect of the Stock Units
and subject to compliance with all applicable laws, the Grantee hereby agrees
that the appropriate number of whole shares, valued at their then fair market
value (with the “fair market value” of such shares determined in accordance with
the applicable provisions of Section 5.6 of the Sphere 3D Corp. 2015 Performance
Incentive Plan (or the corresponding provisions of a successor plan thereto)),
to satisfy any withholding obligations of the Corporation or its Subsidiaries
with respect to such distribution at the minimum applicable withholding rates
(such number of shares, the “Minimum Withholding Shares”) shall
automatically be sold by or on behalf of the Grantee on the open market and the
proceeds of such sale shall be promptly remitted to the Corporation to satisfy
such tax withholding obligations. In the event the Grantee has (prior to the
applicable Vesting Date) entered into an irrevocable arrangement (on terms
reasonably acceptable to the Corporation) with a third-party broker to use the
proceeds of a sale of Common Shares on the market to provide for tax withholding
in connection with any payment of the Stock Units and has provided the terms of
such arrangement to the Corporation (a “Broker Arrangement”), the Grantee
and the Corporation agree that, at the time of such payment of the Stock Units,
the Corporation will deliver to the Grantee’s designated broker a number of
whole Common Shares equal to the Minimum Withholding Shares. If there is no such
Broker Arrangement in place on the applicable Vesting Date, such sale of the
Minimum Withholding Shares shall be conducted through a broker designated by the
Corporation. The Grantee shall execute such documents as may reasonably be
requested by the Corporation or the broker, as applicable, in order to implement
such transactions and shall otherwise comply with the administrative rules and
procedures established by the Corporation with respect to such transactions. If,
however, any withholding event occurs with respect to the Stock Units other than
in connection with the distribution of shares of Common Stock in respect of the
Stock Units, or if the Corporation’s withholding obligations cannot be satisfied
by such market sale or such withholding and reacquisition of shares as described
above because such a sale, withholding or reacquisition, as the case may be,
would cause the Corporation to violate applicable law, the Corporation shall be
entitled to require a cash payment by or on behalf of the Grantee and/or to
deduct from other compensation payable to the Grantee the amount of any such
withholding obligations. 

            9.
Notices. Any notice to be given under the terms of this
Agreement shall be in writing and addressed to the Corporation at its principal
office to the attention of the Secretary, and to the Grantee at the Grantee’s
last address reflected on the Corporation’s records, or at such other address as
either party may hereafter designate in writing to the other. Any such notice
shall be given only when received, but if the Grantee is no longer an employee
of or in service to the Corporation, shall be deemed to have been duly given by
the Corporation when enclosed in a properly sealed envelope addressed as
aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or
branch post office regularly maintained by the United States Government. 

4 

            10.
Entire Agreement; Amendment. This Agreement constitutes the
entire agreement and supersede all prior understandings and agreements, written
or oral, of the parties hereto with respect to the subject matter hereof. The
Administrator by agreement or resolution may waive conditions of or limitations
on the Award, without the consent of the Grantee, and may make other changes to
the terms and conditions of the Award; provided, however, that no amendment of
the Award shall, without written consent of the Grantee, affect in any manner
materially adverse to the Grantee any rights or benefits of the Grantee or
obligations of the Corporation under the Award. Changes, settlements and other
actions contemplated by Section 7 above shall not be deemed to constitute
changes or amendments for purposes of this Section 10. Notwithstanding the
foregoing, the Corporation may, without the consent of the Grantee, amend the
tax-withholding procedures set forth in Section 8 above to provide that the
Corporation’s tax withholding obligations in connection with a distribution of
Common Shares in respect of the Stock Units shall be satisfied by the
Corporation reducing the number of Common Shares subject to such distribution by
the number of the Minimum Withholding Shares (as opposed to a market sale of
such shares); provided, however, that if the Corporation adopts such an
amendment of the procedures set forth in Section 8, such procedures shall not be
further amended within the one-year period thereafter. 

            11.
Limitation on Grantee’s Rights. The Award
confers no rights or interests other than as herein provided. This
Agreement creates only a contractual obligation on the part of the Corporation
as to amounts payable and shall not be construed as creating a trust. The Award
does not, in and of itself, have any assets. The Grantee shall have only the
rights of a general unsecured creditor of the Corporation with respect to
amounts credited and benefits payable, if any, with respect to the Stock Units,
and rights no greater than the right to receive the Common Shares as a general
unsecured creditor with respect to Stock Units, as and when payable
hereunder.

            12.
Counterparts. This Agreement may be executed simultaneously in
any number of counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same instrument.

            13.
Section Headings. The section headings of this Agreement are
for convenience of reference only and shall not be deemed to alter or affect any
provision hereof. 

            14.
Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of California
without regard to conflict of law principles thereunder. 

            15.
Construction. It is intended that the terms of the Award will
not result in the imposition of any tax liability pursuant to Section 409A of
the Code. The Award is intended as a “short-term deferral” under Section 409A of
the Code, and this Agreement shall be construed and interpreted consistent with
that intent.

5 

            16.
Language. The parties hereto have agreed that this Agreement
be drafted in English. Les parties aux présentes ont convenu que le présent
document soit rédigé en anglais. 

            17.
No Advice Regarding Grant. The Grantee is hereby advised to
consult with his or her own tax, legal and/or investment advisors with respect
to any advice the Grantee may determine is needed or appropriate with respect to
the Stock Units (including, without limitation, to determine the foreign, state,
local, estate and/or gift tax consequences with respect to the Award). Neither
the Corporation nor any of its officers, directors, affiliates or advisors makes
any representation (except for the terms and conditions expressly set forth in
this Award Agreement) or recommendation with respect to the Award. Except for
the withholding rights set forth in Section 8 above, the Grantee is solely
responsible for any and all tax and other liability that may arise with respect
to the Award or any sale of shares issued or delivered with respect to the
Award.

      
     18. Insider Trading
Rules. The Grantee hereby acknowledges being subject to all applicable
laws, rules and regulations, as well as Corporation policies, regarding insider
trading. 

6

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