Document:

wldn_Ex10_2

		
			Exhibit 10.2
		

		
			 
		

		
			 
		

		
			WILLDAN GROUP, INC.
		

		
			AMENDED AND RESTATED
		

		
			2006 EMPLOYEE STOCK PURCHASE PLAN
		

		
			 
		

		
			1.           PURPOSE.  The purpose of this Willdan Group, Inc. Amended and Restated 2006 Employee Stock Purchase Plan (the “Plan”) is to encourage stock ownership by eligible employees of Willdan Group, Inc. (the “Company”) and its Participating Subsidiaries, and to provide them with an incentive to contribute to the profitability and success of the Company.  The Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Code and will be maintained for the exclusive benefit of eligible employees of the Company and its Participating Subsidiaries.
		

		
			 
		

		
			2.           DEFINITIONS.  For purposes of the Plan, in addition to the terms defined in Section 1, the following terms are defined:
		

		
			 
		

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

		
			 
		

		
			(b)     “Book Account” means the book entry account maintained on behalf of  each Participant by the Company (or a recordkeeper designated by the Company) for the purpose of accounting for the cash contributions withheld from payroll pending an investment in Stock.
		

		
			 
		

		
			(c)     “Code” means the Internal Revenue Code of 1986, as amended.
		

		
			 
		

		
			(d)     “Earnings” means a Participant’s salary or wages, including overtime (but excluding bonuses) for services performed for the Company and its Participating Subsidiaries and received by a Participant for services rendered during an Offering Period.
		

		
			 
		

		
			(e)     “Fair Market Value” means the closing price of the Stock on the relevant date as reported on the Nasdaq Global Market (or any national securities exchange or quotation system on which the Stock is then listed), or if there were no sales on that date the closing price on the next preceding date for which a closing price was reported.
		

		
			 
		

		
			(f)     “Offering Period” means the six-month period beginning on each January 1 and ending each June 30 and the six-month period beginning on each July 1 and ending on each December 31; provided, however, that the Board may declare, as it deems appropriate and in advance of the applicable Offering Period, a shorter (not to be less than three months) Offering Period or a longer (not to exceed 27 months) Offering Period.   
		

		
			 
		

		
			(g)     “Parent” means any parent corporation as defined in Code Section 424(e).
		

		
			 
		

		
			(h)     “Participant” means an employee of the Company or a Participating Subsidiary who is participating in the Plan. 
		

		
			 
		

		
			(i)     “Participating Subsidiary” means any Subsidiary whose employees are designated as being eligible to participate in the Plan.
		

		
			 
		

		
			(j)     “Purchase Right” means a Participant’s option to purchase Stock that is deemed to be outstanding during a Offering Period.  A Purchase Right represents an “option” under Section 423 of the Code.
		

		
			 
		

		
			(k)    “Stock” means the common stock of the Company.
		

		
			 
		

		
			(l)     “Subsidiary” means any subsidiary corporation as defined in Code Section 424(f).
		

		
			 
		

		
			

		 

 

		

		
			3.           ADMINISTRATION.
		

		
			 
		

		
			(a)     BOARD ADMINISTRATION.  The Plan will be administered by the Board.  The Board may delegate its administrative duties and authority (other than its authority to amend or terminate the Plan) to any Board committee or to any officers or employees or committee thereof as the Board may designate (in which case references to the Board will be deemed to refer to the administrator to which such duties and authority have been delegated).  The Board will have full authority to adopt, amend, suspend, waive, and rescind rules and regulations and appoint agents as it deems necessary or advisable to administer the Plan, to correct any defect or supply any omission or reconcile any inconsistency in the Plan and to construe and interpret the Plan and rules and regulations thereunder, and to make all other decisions and determinations under the Plan (including determinations relating to eligibility).  No person acting in connection with the administration of the Plan will, in that capacity, participate in deciding any matter relating to his or her participation in the Plan.
		

		
			 
		

		
			(b)     WAIVERS.  Subject to the requirements of Section 423 of the Code, the Board may waive or modify any requirement that a notice or election be made or filed under the Plan a specified period in advance by adopting a rule or regulation under the Plan, without amending the Plan.
		

		
			 
		

		
			(c)     OTHER ADMINISTRATIVE PROVISIONS.  The Company will furnish information from its records as directed by the Board, and such records, including a Participant’s Earnings, will be conclusive on all persons unless determined by the Board to be incorrect.  Each Participant and other person claiming benefits under the Plan must furnish to the Company in writing a current mailing address and any other information as the Board may reasonably request.  Any communication, statement, or notice mailed with postage prepaid to any such Participant or other person at the last mailing address filed with the Company will be deemed sufficiently given when mailed and will be binding upon the named recipient.  The Plan will be administered on a reasonable and nondiscriminatory basis and uniform rules will be applied.  All Participants will have equal rights and privileges (subject to the terms of the Plan) with respect to Purchase Right outstanding during any given Offering Period in accordance with Code Section 423(b)(5).
		

		
			 
		

		
			4.           STOCK SUBJECT TO PLAN.  Subject to adjustment as provided in Section 8(a), the total number of shares of Stock reserved and available for issuance or which may be otherwise acquired upon exercise of Purchase Rights under the Plan will be 1,125,000.  Any shares of Stock delivered by the Company under the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares.  If, at the end of any Offering Period, the number of shares of Stock with respect to which Purchase Rights are to be exercised exceeds the number of shares of Stock then available under the Plan, the Board shall make a pro rata allocation of the shares of Stock remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable.  Shares of Stock that are subject to or underlie Purchase Rights, which for any reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason are not paid or delivered under this Plan shall again, except to the extent prohibited by law, be available for subsequent Purchase Rights under this Plan.
		

		
			 
		

		
			5.           ENROLLMENT AND CONTRIBUTIONS.
		

		
			 
		

		
			(a)     ELIGIBILITY.  An employee of the Company or any Participating Subsidiary may be enrolled in the Plan for any Offering Period if such employee is employed by the Company or a Participating Subsidiary authorized to participate in the Plan on the first day of the Offering Period, unless one of the following applies to the employee:
		

		
			 
		

		
			(i)          such person is customarily employed by the Company or a Participating Subsidiary for 20 hours or less a week; or
		

		
			 
		

		
			(ii)         such person is customarily employed by the Company or a Participating Subsidiary for not more than five months in any calendar year.
		

		
			 
		

		
			The Company will notify an employee of the date as of which he or she is eligible to enroll in the Plan, and will make available to each eligible employee the necessary enrollment forms.  
		

		
			 
		

		
			

		 

 

		

		
			(b)     INITIAL ENROLLMENT.  An employee who is eligible under Section 5(a) (or who will become eligible on or before a given Offering Period) may, after receiving current information about the Plan, initially enroll in the Plan by executing and filing with the Company a properly completed enrollment form, including the employee’s election as to the rate of payroll contributions for the Offering Period.  To be effective for any Offering Period, such properly executed enrollment form must be filed with the Company at such time prior to such Offering Period as may be determined by the Board.
		

		
			 
		

		
			(c)     AUTOMATIC RE-ENROLLMENT FOR SUBSEQUENT OFFERING PERIODS.  A Participant whose enrollment in, and payroll contributions under, the Plan continues throughout an Offering Period will automatically be re-enrolled in the Plan for the next Offering Period unless (i) the Participant terminates enrollment before the next Offering Period in accordance with Section 7(a), (ii) the Participant is ineligible to participate under Section 5(a), or (iii) the Board requires that a new enrollment form be executed and filed with the Company.  The initial rate of payroll contributions for a Participant who is automatically re-enrolled for an Offering Period will be the same as the rate of payroll contribution in effect at the end of the preceding Offering Period, unless the Participant files a new properly executed enrollment form designating a different rate of payroll contributions and such new enrollment form is filed with the Company at such time prior to the beginning of the next Offering Period as may be determined by the Board.
		

		
			 
		

		
			(d)     PAYROLL CONTRIBUTIONS.  A Participant will make contributions under the Plan only by means of payroll deductions from Earnings for each payroll period that is paid during the Offering Period, at the rate elected by the Participant in his or her enrollment form in effect for that Offering Period (except that such rate may be changed during the Offering Period to the extent permitted below).  The rate of payroll contributions elected by a Participant may not be less than one percent (1%) nor more than ten percent (10%) of the Participant’s Earnings for each payroll period, and only whole percentages may be elected; provided, however, that the Board may specify a lower minimum rate and higher maximum rate prior to the start of the applicable Offering Period, subject to Section 9(b).  Notwithstanding the above, a Participant’s payroll contributions will be adjusted downward by the Company as necessary to ensure that the limit on the amount of Stock purchased for an Offering Period set forth in Section 6(a)(iii) is not exceeded.  A Participant may elect to increase, decrease, or discontinue payroll contributions for a future Offering Period by filing a new enrollment form designating a different rate of payroll contributions, which properly executed form must be filed with the Company at such time prior to the beginning of an Offering Period as may be determined by the Board to be effective for that Offering Period.  In addition, a Participant may elect to discontinue payroll contributions during an Offering Period by filing a new properly executed enrollment form, such change to be effective for the next payroll after the Participant’s new enrollment form is filed with the Company.
		

		
			 
		

		
			(e)     CREDITING PAYROLL CONTRIBUTIONS TO BOOK ACCOUNTS.  All payroll contributions by a Participant under the Plan will be credited to a Book Account maintained by the Company on behalf of such Participant. The Company will credit payroll contributions by a Participant to such Book Account as soon as practicable after the contributions are withheld from such Participant’s Earnings.
		

		
			 
		

		
			(f)     NO INTEREST ON BOOK ACCOUNTS.  No interest will be credited or paid on cash balances in the Book Accounts pending investment in Stock.
		

		
			 
		

		
			6.           PURCHASES OF STOCK.
		

		
			 
		

		
			(a)     PURCHASE RIGHTS.  Enrollment in the Plan for any Offering Period by a Participant will constitute a grant by the Company of a Purchase Right to such Participant for such Offering Period as long as the participant remains eligible pursuant to Section 5(a) hereof.  Each Purchase Right will be subject to the following terms:
		

		
			 
		

		
			(i)          The purchase price of each share of Stock purchased for each Offering Period will equal the lesser of:  (i) 85% of the Fair Market Value of a share of Stock on the first day of the Offering Period and (ii) 85% of the Fair Market Value of a share of Stock on the last day of that Offering Period; provided, however, that the Board may provide prior to the start of any Offering Period that the purchase price for each share of Stock for that Offering Period shall be determined by 

		 

 

applying a discount amount (not to exceed 15%) to either (1) the Fair Market Value of a share of Stock on the first day of the Offering Period, or (2) the Fair Market Value of a share of Stock on the last day of that Offering Period, or (3) the lesser of the Fair Market Value of a share of Stock on the first day of the Offering Period or the Fair Market Value of a share of Stock on the last day of that Offering Period.
		

		
			 
		

		
			(ii)         The number of shares of Stock that may be purchased upon exercise of the Purchase Right for a Offering Period will equal the number of shares that can be purchased at the purchase price specified in Section 6(a)(i) with the aggregate amount credited to the Participant’s Book Account as of the last day of an Offering Period.
		

		
			 
		

		
			(iii)        Notwithstanding the foregoing, the maximum number of shares of Stock that any one individual may acquire upon exercise of his or her Purchase Right with respect to any one Offering Period is 10,000, subject to adjustments pursuant to Section 8(a) (the “Individual Limit”).  The Board may amend the Individual Limit, effective no earlier than the first Offering Period commencing after the adoption of such amendment, without stockholder approval.
		

		
			 
		

		
			(iv)         Subject to Section 7, the Purchase Right will be automatically exercised on the last day of the Offering Period.
		

		
			 
		

		
			(v)          Payments by a Participant for Stock purchased under a Purchase Right will be made only through payroll deduction in accordance with Section 5(d) and (e).
		

		
			 
		

		
			(vi)        The Purchase Right will expire on the earlier of the last day of the Offering Period or the date on which the Participant’s enrollment in the Plan terminates.
		

		
			 
		

		
			(b)     LIMITS ON SHARE PURCHASES.  Notwithstanding anything else contained herein, any person who is otherwise an eligible to participate in this Plan shall not be granted any Purchase Right (or any Purchase Right granted such person shall be subject to compliance with the following limitations) or other right to purchase shares under this Plan to the extent:
		

		
			 
		

		
			(i)           it would, if exercised, cause the person to own stock (within the meaning of Section 423(b)(3) of the Code) possessing 5% or more of the total combined voting power or value of all classes of stock of the Company, or of any Parent, or of any Subsidiary; or
		

		
			 
		

		
			(ii)          such Purchase Right causes such individual to have rights to purchase stock under this Plan and any other plan of the Company, any Parent, or any Subsidiary which is qualified under Section 423 of the Code which accrue at a rate which exceeds $25,000 of the fair market value of the stock of the Company, of any Parent, or of any Subsidiary (determined at the time the right to purchase such stock is granted, before giving effect to any discounted purchase price under any such plan) for each calendar year in which such right is outstanding at any time.
		

		
			 
		

		
			For purposes of the foregoing, a right to purchase stock accrues when it first become exercisable during the calendar year.  In determining whether the stock ownership of any employee equals or exceeds the 5% limit set forth above, the rules of Section 424(d) of the Code (relating to attribution of stock ownership) shall apply, and stock which the employee may purchase under outstanding purchase rights shall be treated as stock owned by the employee.
		

		
			 
		

		
			(c)     PURCHASE OF STOCK.  At or as promptly as practicable after the last day of an Offering Period, amounts credited to each Participant’s Book Account will be applied by the Company to purchase 

		 

 

Stock, in accordance with the terms of the Plan.  Shares of Stock will be purchased from the Company.  The Company will aggregate the amounts in all Book Accounts when purchasing Stock, and shares purchased will be allocated to each Participant in proportion to the balance allocated from each Participant’s Book Account.  As soon as administratively practicable after the last day of the Offering Period, the Company shall, in its discretion, either deliver to each Participant a certificate representing the shares of Stock purchased upon exercise of his or her Purchase Right, provide for the crediting of such shares in book entry form in the name of the Participant, or provide for an alternative arrangement for the delivery of such shares to a broker or recordkeeping service for the benefit of the Participant.
		

		
			 
		

		
			(d)     EXCESS ACCOUNT BALANCES.  If any amounts remain in a Book Account following the date on which the Company purchases Stock for an Offering Period for any reason, such amounts will be returned to the Participant as promptly as practicable.
		

		
			 
		

		
			7.           TERMINATION AND DISTRIBUTIONS.
		

		
			 
		

		
			(a)     TERMINATION OF ENROLLMENT.  A Participant’s enrollment in the Plan will terminate upon (i) the beginning of any payroll period or Offering Period that begins after he or she files a written notice of termination of enrollment with the Company, provided that such Participant will continue to be deemed to be enrolled with respect to any completed Offering Period for which purchases have not been completed, (ii) such time as the Participant becomes ineligible to participate under Section 5(a) of the Plan, or (iii) the termination of the Participant’s employment by the Company and its Subsidiaries.  An employee whose enrollment in the Plan terminates may again enroll in the Plan as of any subsequent Offering Period if he or she satisfies the eligibility requirements of Section 5(a) as of such Offering Period.  A Participant’s election to discontinue payroll contributions will not constitute a termination of enrollment.
		

		
			 
		

		
			(b)     DISTRIBUTION.  As soon as practicable after a Participant’s enrollment in the Plan terminates, amounts in the Participant’s Book Account which resulted from payroll contributions will be repaid to the Participant.  If a Participant’s termination of enrollment results from his or her death, all amounts payable will be paid to his or her designated beneficiary or beneficiaries and if no such designation is made, to his or her estate.
		

		
			 
		

		
			8.           ADJUSTMENTS; POSSIBLE EARLY TERMINATION OF PURCHASE RIGHTS
		

		
			 
		

		
			(a)     ADJUSTMENTS.  Upon or in contemplation of any reclassification, recapitalization, stock split (including a stock split in the form of a stock dividend), or reverse stock split; any merger, combination, consolidation, or other reorganization; split-up, spin-off, or any similar extraordinary dividend distribution in respect of the Stock (whether in the form of securities or property); any exchange of Stock or other securities of the Company, or any similar, unusual or extraordinary corporate transaction in respect of the Stock; or a sale of substantially all the assets of the Company as an entirety occurs; then the Board shall equitably and proportionately adjust (1) the number and type of shares or the number and type of other securities that thereafter may be made the subject of Purchase Rights (including the specific maxima and numbers of shares set forth elsewhere in this Plan), (2) the number, amount and type of shares (or other securities or property) subject to any or all outstanding Purchase Rights, (3) the purchase price of any or all outstanding Purchaser Rights, and/or (4) the securities, cash or other property deliverable upon exercise of any outstanding Purchase Rights, in each case to the extent necessary to preserve (but not increase) the level of incentives intended by this Plan and the then-outstanding Purchase Rights.
		

		
			 
		

		
			Upon the occurrence of any event described in the preceding paragraph, or any other event in which the Company does not survive (or does not survive as a public company in respect of its Stock); then the Board may make provision for a cash payment or for the substitution or exchange of any or all outstanding Purchase Rights for cash, securities or property to be delivered to the holders of any or all outstanding Purchase Rights based upon the distribution or consideration payable to holders of the Stock upon or in respect of such event.
		

		
			 
		

		
			The Board may adopt such valuation methodologies for outstanding Purchase Rights as it deems reasonable in the event of a cash or property settlement and, without limitation on other methodologies, may base such settlement solely upon the excess (if any) of the amount payable upon or in respect of such event over the purchase price of the Purchase Right.  
		

		
			 
		

		
			

		 

 

		

		
			In any of such events, the Board may take such action sufficiently prior to such event to the extent that the Board deems the action necessary to permit the Participant to realize the benefits intended to be conveyed with respect to the underlying shares in the same manner as is or will be available to stockholders generally.
		

		
			 
		

		
			(b)     POSSIBLE EARLY TERMINATION OF PLAN AND PURCHASE RIGHTS.  Upon a dissolution or liquidation of the Company, or any other event described in Section 8(a) that the Company does not survive or does not survive as a publicly-traded company in respect of its Stock, as the case may be, and the Board does not make provision for a cash payment or for the substitution or exchange of outstanding Purchase Rights in accordance with Section 8(a), then any Offering Period then in progress shall be shortened and the last day of the Offering Period shall be established by the Board (the “New Purchase Date”), as of which date the Plan and any Offering Period then in progress will terminate. The New Purchase Date shall be on or before the date of the consummation of the transaction and the Board shall notify each Participant in writing at least ten (10) days prior to the New Purchase Date that the last day of the Offering Period for his or her outstanding Purchase Right has been changed to the New Purchase Date and that his or her Purchase Right will be exercised automatically on the New Purchase Date, unless prior to such date he or she has withdrawn from the Offering Period in accordance with Section 7. The purchase price on the New Purchase Date shall be determined as provided in Section 6(a), and, if applicable, the New Purchase Date shall be treated as the last day of the offering period for purposes of determining such purchase price. 
		

		
			 
		

		
			9.           GENERAL PROVISIONS.
		

		
			 
		

		
			(a)     COSTS.  Costs and expenses incurred in the administration of the Plan and maintenance of Book Accounts will be paid by the Company, to the extent provided in this Section 9(a).  Any brokerage fees and commissions for the purchase of Stock under the Plan will be paid by the Company, but any brokerage fees and commissions for the sale of Stock by a Participant will be borne by such Participant.
		

		
			 
		

		
			(b)     COMPLIANCE WITH SECTION 423.  It is the intent of the Company that this Plan comply in all respects with applicable requirements of Section 423 of the Code and regulations thereunder.  Accordingly, if any provision of this Plan does not comply with such requirements, such provision will be construed or deemed amended to the extent necessary to conform to such requirements.
		

		
			 
		

		
			(c)     COMPLIANCE WITH LEGAL AND OTHER REQUIREMENTS.  The Plan, the granting and exercising of Purchase Rights hereunder, and the other obligations of the Company under the Plan will be subject to all applicable federal and state laws, rules, and regulations, and to such approvals by any regulatory or governmental agency as may be required.  The Company may, in its discretion, postpone the issuance or delivery of Stock upon exercise of Purchase Rights until completion of such registration or qualification of such Stock or other required action under any federal or state law, rule, or regulation, or the laws of any country in which employees of the Company and a Participating Subsidiary who are nonresident aliens and who are eligible to participate reside, or other required action with respect to any automated quotation system or stock exchange upon which the Stock or other Company securities are designated or listed, or compliance with any other contractual obligation of the Company, as the Company may consider appropriate.  In addition, the Company may require any Participant to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of Stock in compliance with applicable laws, rules, and regulations, designation or listing requirements, or other contractual obligations.
		

		
			 
		

		
			(d)     LIMITS ON ENCUMBERING RIGHTS.  No right or interest of a Participant under the Plan, including any Purchase Right, may be pledged, encumbered, or hypothecated to or in favor of any party, subject to any lien, obligation, or liability of such Participant, or otherwise assigned, transferred, or disposed of except pursuant to the laws of descent or distribution, and any right of a Participant under the Plan will be exercisable during the Participant’s lifetime only by the Participant.
		

		
			 
		

		
			(e)     NO RIGHT TO CONTINUED EMPLOYMENT.  Neither the Plan nor any action taken hereunder, including the grant of a Purchase Right, will be construed as giving any employee the right to be retained in the employ of the Company or any of its Subsidiaries, nor will it interfere in any way with the right of the Company or any of its Subsidiaries to terminate any employee’s employment at any time.
		

		
			 
		

		
			

		 

 

		

		
			(f)     TAXES.  The Company or any Subsidiary is authorized to withhold from any payment to be made to a Participant, including any payroll and other payments not related to the Plan, amounts of withholding and other taxes due in connection with any transaction under the Plan, and a Participant’s enrollment in the Plan will be deemed to constitute his or her consent to such withholding.  In addition, Participants may be required to advise the Company of sales and other dispositions of Stock acquired under the plan in order to permit the Company to comply with tax laws and to claim any tax deductions to which the Company may be entitled with respect to the Plan.  This provision and other Plan provisions do not set forth an explanation of the tax consequences to Participants under the Plan.  A brief summary of the tax consequences will be included in disclosure documents to be separately furnished to Participants.
		

		
			 
		

		
			(g)     CHANGES TO THE PLAN.  The Board may amend, alter, suspend, discontinue, or terminate the Plan without the consent of stockholders or Participants, except that any such action will be subject to the approval of the Company’s stockholders within one year after such Board action if such stockholder approval is required by any federal or state law or regulation or the rules of any automated quotation system or stock exchange on which the Stock may then be quoted or listed, or if such stockholder approval is necessary in order for the Plan to continue to meet the requirements of Section 423 of the Code, and the Board may otherwise, in its discretion, determine to submit other such actions to stockholders for approval.  However, without the consent of an affected Participant, no amendment, alteration, suspension, discontinuation, or termination of the Plan may materially and adversely affect the rights of such Participant with respect to outstanding Purchase Rights relating to any Offering Period that has been completed prior to such Board action.  Changes contemplated by Section 8(a) or 8(b) shall not be deemed to constitute changes or amendments requiring Participant consent.  The foregoing notwithstanding, upon termination of the Plan the Board may (i) elect to terminate all outstanding Purchase Rights at such time as the Board may designate, and all amounts contributed to the Plan which are reflected in a Participant’s Book Account will be returned to the Participant (without interest) as promptly as practicable, or (ii) shorten the Offering Period to such period determined by the Board and use amounts credited to a Participant Book Account to purchase Stock.
		

		
			 
		

		
			(h)     NO RIGHTS TO PARTICIPATE; NO STOCKHOLDER RIGHTS.  No Participant or employee will have any claim to participate in the Plan with respect to Offering Periods that have not commenced, and the Company will have no obligation to continue the Plan.  No Purchase Right will confer on any Participant any of the rights of a stockholder of the Company unless and until Stock is duly issued or transferred and delivered to the Participant.
		

		
			 
		

		
			(i)     NO FRACTIONAL SHARES.  Unless otherwise determined by the Board, purchases of Stock under the Plan shall not result in the issuance of fractional shares of Stock to a Participant.  Any amounts in a Participant's Book Account after the purchase of whole shares of Stock shall be paid to such Participant as soon as practicable following the end of the Offering Period.
		

		
			 
		

		
			(j)     GOVERNING LAW.  The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan will be determined in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of laws, and applicable federal law.
		

		
			 
		

		
			(k)     EFFECTIVE DATE.  The Plan originally became effective on February 10, 2007, subject to the Plan being approved by stockholders of the Company by a vote sufficient to meet the requirements of Section 423(b)(2) of the Code.  This Amended and Restated version of the Plan is effective April 17, 2017, subject to the Amended and Restated version of the Plan being approved by stockholders of the Company by a vote sufficient to meet the requirements of Section 423(b)(2) of the Code.Trilogy International Partners Inc.: Exhibit 4.2 - Filed by newsfilecorp.com

Exhibit 4.2

TRILOGY INTERNATIONAL PARTNERS INC. 
RESTRICTED SHARE UNIT
PLAN 

	1. 	
      PURPOSE

	 	 
	1.1 	
      This Plan has been established by the Corporation to
      assist the Corporation in the recruitment and retention of highly
      qualified employees and consultants by providing a means to reward
      superior performance, to motivate Participants under the Plan to achieve
      important corporate and personal objectives and, through the issuance of
      Share Units in the Corporation to Participants under the Plan, to better
      align the interests of Participants with the long-term interests of
      Shareholders.

	 	 
	2. 	
      PLAN DEFINITIONS AND
  INTERPRETATIONS

In this Plan, the following terms have
the following meanings: 

	 	(a) 	
      “Account” means the bookkeeping account
      established and maintained by the Corporation for each Participant in
      which the number of Share Units of the Participant are recorded;

	 	 	 
	 	(b) 	
      “Affiliate” has the meaning given to it in
      National Instrument 45-106 – Prospectus Exemptions.

	 	 	 
	 	(c) 	
      “Applicable Law” means any applicable provision of
      law, domestic or foreign, including, without limitation, applicable
      securities legislation, together with all regulations, rules, policy
      statements, rulings, notices, orders or other instruments promulgated
      thereunder and Stock Exchange Rules;

	 	 	 
	 	(d) 	
      “Beneficiary” means any person designated by the
      Participant as his or her beneficiary under the Plan in accordance with
      Section 13.1 or, failing any such effective designation, the Participant’s
      legal representative;

	 	 	 
	 	(e) 	
      “Board” means the Board of Directors of the
      Corporation;

	 	 	 
	 	(f) 	
      “Change of Control”
means:

	 	(i) 	
      the acquisition whether directly or indirectly, by a
      person or company, or any persons or companies acting jointly or in
      concert (as determined in accordance with the Securities Act
      (British Columbia) and the rules and regulations thereunder) of voting
      securities of the Corporation which, together with any other voting
      securities of the Corporation held by such person or company or persons or
      companies, constitute, in the aggregate, more than 50% of all outstanding
      voting securities of the Corporation;

	 	 	 
	 	(ii) 	
      an amalgamation, arrangement or other form of business
      combination of the Corporation with another company which results in the
      holders of voting securities of that other company holding, in the
      aggregate, 50% or more of all outstanding voting securities of the
      Corporation (including a merged or successor company) resulting from the
      business combination; or

	 	 	 
	 	(iii) 	
      the sale, lease or exchange of all or substantially all
      of the property of the Corporation to another person, other than an
      Affiliate of the Corporation or other than in the ordinary course of
      business of the Corporation;

	 	(g) 	
      “Committee” means the Compensation and Corporate
      Governance Committee of the Board or any other committee or person
      designated by the Board to administer the Plan, provided, however, if the
      Company ceases to qualify as a “foreign private issuer” (as defined in
      Rule 3b-4 under the Exchange Act), the Committee shall be a committee of
      the Board comprised of not less than two directors, and each member of the
      Committee shall be a “non-employee director” within the meaning of Rule
      16b-3;

- 1 - 

	 	(h) 	
      “Corporation” means Trilogy International Partners
      Inc. and its respective successors and assigns, and any reference in the
      Plan to action by the Corporation means action by or under the authority
      of the Board or any person or committee that has been designated for the
      purpose by the Board including, without limitation, the
  Committee;

	 	 	 
	 	(i) 	
      “Designated Subsidiary” means an entity which is
      controlled by the Corporation and which has been designated by the
      Corporation for purposes of the Plan from time to time, and for the
      purposes of this definition, a person (first person) is considered to
      control another person (second person) if the first person, directly or
      indirectly, has the power to direct the management and policies of the
      second person by virtue of:

	 	(i) 	
      ownership of or direction over voting securities in the
      second person,

	 	 	 
	 	(ii) 	
      a written agreement or indenture,

	 	 	 
	 	(iii) 	
      being the general partner or controlling the general
      partner of the second person, or

	 	 	 
	 	(iv) 	
      being a trustee of the second
person;

	 	(j) 	
      “Director” means a director of the
    Corporation;

	 	 	 
	 	(k) 	
      “Eligible Consultant” means a person, other than
      an Employee, that (i) is engaged to provide on a bona fide basis
      consulting, technical, management or other services to the Corporation or
      any Designated Subsidiary under a written contract with the Corporation or
      the Designated Subsidiary, (ii) in the reasonable opinion of the
      Corporation, spends or will spend a significant amount of time and
      attention on the affairs and business of the Corporation or a Designated
      Subsidiary, and (iii) does not provide services in connection with the
      offer or sale of securities in a capital-raising transaction and does not
      directly or indirectly promote or maintain a market for the registrant's
      securities;

	 	 	 
	 	(l) 	
      “Employee” means an employee of the Corporation or
      any of its Designated Subsidiaries or any combination or partnership of
      such corporations;

	 	 	 
	 	(m) 	
      “Employer” means the Corporation, the Designated
      Subsidiary or the combination or partnership of such entities that employs
      the Participant or that employed the Participant immediately prior to the
      Participant’s Termination Date;

	 	 	 
	 	(n) 	
      “Equity Interests” means the issued and
      outstanding Shares and Trilogy Class C Units;

	 	 	 
	 	(o) 	
      “Exchange Act” means the U.S. Securities Exchange
      Act of 1934, as amended;

	 	 	 
	 	(p) 	
      “Expiry Date” means, with respect to Share Units
      granted to a Participant, the date determined by the Corporation for such
      purpose for such grant, which date shall be no later than the date which
      is two years after the Participant’s Termination Date and shall, in all
      cases, be in compliance with the requirements pertaining to the exception
      to the application of the salary deferral arrangement rules in paragraph
      248(1)(k) of the Income Tax Act (Canada), as such section may be
      amended or re- enacted from time to time;

	 	 	 
	 	(q) 	
      “Fiscal Year” means a fiscal year of the
      Corporation;

	 	 	 
	 	(r) 	
      “Grant Agreement” means an agreement between the
      Corporation and a Participant under which Share Units are granted,
      together with such amendments, deletions or changes thereto as are
      permitted under the Plan;

- 2 - 

	 	(s) 	
      “Grant Date” of a Share Unit means the date a
      Share Unit is granted to a Participant under the Plan;

	 	 	 
	 	(t) 	
      “Insider” has the meaning provided for purposes of
      the TSX relating to Security Based Compensation Arrangements;

	 	 	 
	 	(u) 	
      “Joint Actor” means a person acting “jointly or in
      concert with” another person within the meaning of Section 96 of the
      Securities Act (British Columbia) or as such section may be amended
      or re-enacted from time to time;

	 	 	 
	 	(v) 	
      “Market Value” with respect to a Share as at any
      date means the volume-weighted average trading price of the Shares on the
      TSX for the five (5) trading days immediately preceding such date (or on
      any such other stock exchange on which the Shares are then listed and
      posted for trading as may be selected for such purpose by the Board). The
      volume weighted average trading price of the Shares shall be calculated by
      dividing the total value by the total volume of Shares traded for the
      relevant period. In the event that the Shares are not listed and posted
      for trading on any stock exchange, the Market Value shall be the Market
      Value of the Shares as determined by the Board in its discretion, acting
      reasonably and in good faith;

	 	 	 
	 	(w) 	
      “Participant” means a bona fide full-time or
      part-time Employee, an Eligible Consultant or a director who, in any such
      case, has been designated by the Corporation for participation in the
      Plan;

	 	 	 
	 	(x) 	
      “Payout Date” means a date selected by the
      Corporation, in accordance with and as contemplated by Sections 3.2, 6.1
      and 7.3;

	 	 	 
	 	(y) 	
      “Plan” means this Restricted Share Unit
    Plan;

	 	 	 
	 	(z) 	
      “Reorganization” means any (i) capital
      reorganization, (ii) merger, (iii) amalgamation, or (iv) arrangement or
      other scheme of reorganization;

	 	 	 
	 	(aa) 	
      “Rule 16b-3” means Rule 16b-3 promulgated by the
      Securities and Exchange Commission under the Exchange Act or any successor
      rule or regulation;

	 	 	 
	 	(bb) 	
      “Section 409A” means Section 409A of the U.S.
      Internal Revenue Code of 1986, as amended, and the Treasury
      Regulations promulgated thereunder as in effect from time to
  time;

	 	 	 
	 	(cc) 	
      “Securities Act” means the U.S. Securities Act of
      1933, as amended;

	 	 	 
	 	(dd) 	
      “Security Based Compensation Arrangement” has the
      meaning defined in the provisions of the TSX Company Manual relating to
      security based compensation arrangements;

	 	 	 
	 	(ee) 	
      “Shareholders” means the holders of
  Shares;

	 	 	 
	 	(ff) 	
      “Shares” mean common shares of the Corporation and
      includes any securities of the Corporation into which such common shares
      may be converted, reclassified, redesignated, subdivided, consolidated,
      exchanged or otherwise changed, pursuant to a Reorganization or
      otherwise;

	 	 	 
	 	(gg) 	
      “Share Unit” means a unit credited by means of an
      entry on the books of the Corporation to a Participant pursuant to the
      Plan, representing the right to receive, subject to and in accordance with
      the Plan, for each Vested Share Unit one Share or cash equal to the Market
      Value of one Share, at the time, in the manner, and subject to the terms,
      set forth in the Plan and the applicable Grant
Agreement;

- 3 - 

	 	(hh) 	
      “Stock Exchange Rules” means the applicable rules
      of any stock exchange upon which Shares are listed;

	 	 	 
	 	(ii) 	
      “Termination Date” means the date on which a
      Participant ceases, for any reason including resignation, termination,
      death or disability, to be an active Employee, an Eligible Consultant, or
      a director, as the case may be, and, in the case of a Participant who is
      an Employee, where the employment is terminated by the Employer, whether
      wrongful or for cause or otherwise, such date shall be the date notice of
      termination is provided and, in the case of a Participant who is an
      Eligible Consultant, the date the written contract between the Eligible
      Consultant and the Corporation or any Designated Subsidiary is terminated
      or expires and the Eligible Consultant no longer provides services
      thereunder;

	 	 	 
	 	(jj) 	
      “Trilogy Class C Unit” means a class C unit of
      Trilogy International Partners LLC including all series thereof;

	 	 	 
	 	(kk) 	
      “TSX” means the Toronto Stock Exchange;
  and

	 	 	 
	 	(ll) 	
      “Vested Share Units” shall mean Share Units in
      respect of which all vesting terms and conditions set forth in the Plan
      and the applicable Grant Agreement have been either satisfied or waived in
      accordance with the Plan.

	2.2 	
      In this Plan, unless the context requires otherwise,
      words importing the singular number may be construed to extend to and
      include the plural number, and words importing the plural number may be
      construed to extend to and include the singular number.

	 	 
	3. 	
      GRANT OF SHARE UNITS AND TERMS

	 	 
	3.1 	
      The Corporation may grant Share Units (including
      fractional Share Units) to such Participant or Participants in such number
      and at such times as the Corporation may, in its sole discretion,
      determine, as a bonus or similar payment in respect of services rendered
      by the Participant, in exchange for security-based compensation of a
      Designated Subsidiary held by the Participant, or otherwise as
      compensation, including as an incentive for future performance by the
      Participant.

	 	 
	3.2 	
      In granting any Share Units pursuant to Section 3.1, the
      Corporation shall designate:

	 	(a) 	
      the number of Share Units which are being granted to the
      Participant;

	 	 	 
	 	(b) 	
      any time-based or performance-based conditions as to
      vesting of the Share Units to become Vested Share Units;

	 	 	 
	 	(c) 	
      the Payout Date, which shall in no event be later than
      the Expiry Date and, unless otherwise determined on the Grant Date, shall
      be the third anniversary of the Grant Date; and

	 	 	 
	 	(d) 	
      the Expiry Date;

which shall be set out in the Grant
Agreement. 

	3.3 	
      The conditions may relate to all or any portion of the
      Share Units in a grant and may be graduated such that different
      percentages of the Share Units in a grant will become Vested Share Units
      depending on the extent of satisfaction of one or more such conditions.
      The Corporation may, in its discretion and having regard to the best
      interests of the Corporation, subsequent to the Grant Date of a Share
      Unit, waive any resulting conditions, provided that the waiver of such
      conditions will not accelerate the time of payment with respect to such
      Share Units, and the payout will occur on the Payout Date as set forth in
      the Grant Agreement or pursuant to Sections 7.3 or 7.4 of the Plan, if
      applicable.

- 4 - 

	4. 	
      GRANT AGREEMENT

	 	 
	4.1 	
      Each grant of a Share Unit will be set forth in a Grant
      Agreement containing terms and conditions required under the Plan and such
      other terms and conditions not inconsistent herewith as the Corporation
      may, in its sole discretion, deem appropriate.

	 	 
	5. 	
      SHARE UNIT GRANTS AND ACCOUNTS

	 	 
	5.1 	
      An Account shall be maintained by the Corporation for
      each Participant. On the Grant Date, the Account will be credited with the
      Share Units (including fractional Share Units) granted to a Participant on
      that date.

	 	 
	6. 	
      PAYOUTS

	 	 
	6.1 	
      On each Payout Date, the Participant shall be entitled to
      receive, and the Corporation shall issue or provide, a payout with respect
      to those Vested Share Units in the Participant’s Account to which the
      Payout Date relates, in one of the following
forms:

	 	(a) 	
      subject to the limitations set forth in Section 10.2
      below, Shares issued from treasury equal in number to the Vested Share
      Units in the Participant’s Account to which the Payout Date relates,
      subject to any applicable deductions and withholdings;

	 	 	 
	 	(b) 	
      subject to and in accordance with any Applicable Law,
      Shares purchased by an independent administrator of the Plan in the open
      market for the purposes of providing Shares to Participants under the Plan
      equal in number to the Vested Share Units in the Participant’s Account to
      which the Payout Date relates, subject to any applicable deductions and
      withholdings;

	 	 	 
	 	(c) 	
      the payment of a cash amount to a Participant on the
      Payout Date equal to the number of Vested Share Units in respect of which
      the Corporation makes such a determination, multiplied by the Market Value
      on the Payout Date, subject to any applicable deductions and withholdings;
      or

	 	 	 
	 	(d) 	
      any combination of the foregoing,

as determined by the Corporation, in
its sole discretion. 

	6.2 	
      No fractional Shares shall be issued and any fractional
      entitlements shall be settled in cash based on the Market Value on the
      relevant Payout Date.

	 	 
	6.3 	
      Shares issued by the Corporation from treasury under
      Section 6.1(a) of this Plan shall be considered fully paid in
      consideration of past service that is no less in value than the fair
      equivalent of the money the Corporation would have received if the Shares
      had been issued for money.

	 	 
	6.4 	
      The Corporation or a Designated Subsidiary may withhold
      from any amount payable to a Participant, either under this Plan, or
      otherwise, such amount as may be necessary so as to ensure that the
      Corporation or the Designated Subsidiary will be able to comply with the
      applicable provisions of any federal, provincial, state or local law
      relating to the withholding of tax or other required deductions, including
      on the amount, if any, includable in the income of a Participant. Each of
      the Corporation or a Designated Subsidiary shall also have the right in
      its discretion to satisfy any such withholding tax liability by retaining,
      acquiring or selling on behalf of a Participant any Shares which would
      otherwise be issued or provided to a Participant hereunder.

	 	 
	7. 	
      TERMINATION OF EMPLOYMENT AND
FORFEITURES

	 	 
	7.1 	
      Unless otherwise determined by the Corporation pursuant
      to Sections 7.2 or 7.3, on a Participant’s Termination Date, any Share
      Units in a Participant’s Account which are not Vested Share Units shall
      terminate and be forfeited.

- 5 - 

	7.2 	
      Notwithstanding Section 7.1, where a Participant ceases
      to be an Employee as a result of the termination of his or her employment
      without cause, then in respect of each grant of Share Units made to such
      Participant, at the Corporation’s discretion, all or a portion of such
      Participant’s Share Units may be permitted to continue to vest, in
      accordance with their terms, during any statutory or common law severance
      period or any period of reasonable notice required by law or as otherwise
      may be determined by the Corporation in its sole discretion.

	 	 
	7.3 	
      Notwithstanding Section 7.1 nor the conditions as to
      vesting of Share Units contained in any individual Grant Agreement, in the
      event that a Participant’s employment is terminated without cause by the
      Corporation or an Affiliate within 12 months following a Change of
      Control, all outstanding Share Units shall become Vested Share Units on
      the Termination Date and, except as otherwise provided in Section 15
      hereof, the Payout Date in connection with such Vested Share Units shall,
      notwithstanding any provisions in the Grant Agreement, be accelerated to
      the Termination Date and the Corporation shall, as soon as practicable
      following such termination, issue or provide Shares or make payments to
      such Participants with respect to such Vested Share Units in accordance
      with Section 6.

	 	 
	7.4 	
      Except as otherwise provided in Section 15, in the event
      a Participant’s Termination Date is prior to the Payout Date with respect
      to any Vested Share Units in such Participant’s Account, the Payout Date
      with respect to such Vested Share Units shall, notwithstanding any
      provision in the Grant Agreement, be accelerated to the Participant’s
      Termination Date and the Corporation shall, as soon as practicable
      following such Termination Date, issue or provide Shares or make payment
      to such Participant, or Beneficiary thereof, as applicable, with respect
      to such Vested Share Units in accordance with Section 6.

	 	 
	8. 	
      FORFEITED UNITS

	 	 
	8.1 	
      Notwithstanding any other provision of the Plan or a
      Grant Agreement, Share Units granted hereunder shall terminate on, if not
      redeemed or previously terminated and forfeited in accordance with the
      Plan, and be of no further force and effect after, the Expiry
  Date.

	 	 
	9. 	
      ALTERATION OF NUMBER OF SHARES SUBJECT TO THE
      PLAN

	 	 
	9.1 	
      In the event that the Shares shall be subdivided or
      consolidated into a different number of Shares or a distribution shall be
      declared upon the Shares payable in Shares, the number of Share Units then
      recorded in the Participant’s Account shall be adjusted by replacing such
      number by a number equal to the number of Shares which would be held by
      the Participant immediately after the distribution, subdivision or
      consolidation, should the Participant have held a number of Shares equal
      to the number of Share Units recorded in the Participant’s Account on the
      record date fixed for such distribution, subdivision or
    consolidation.

	 	 
	9.2 	
      In the event there shall be any change, other than as
      specified in Section 9.1, in the number or kind of outstanding Equity
      Interests or of any shares or other securities into which such Shares
      shall have been changed or for which they shall have been exchanged,
      pursuant to a Reorganization or otherwise, then there shall be substituted
      for each Share referred to in the Plan or for each share into which such
      Share shall have been so changed or exchanged, the kind of securities into
      which each outstanding Equity Interest shall be so changed or exchanged
      (or, if no such change or exchange occurs, into such other securities as
      the Board may determine in its sole discretion) and an equitable
      adjustment shall be made, if required, in the number of Share Units then
      recorded in the Participant’s Account, such adjustment, if any, to be
      reasonably determined by the Committee and to be effective and binding for
      all purposes.

	 	 
	9.3 	
      In the case of any such substitution, change or
      adjustment as provided for in this Section 9, the variation shall
      generally require that the aggregate Market Value of the Share Units then
      recorded in the Participant’s Account prior to such substitution, change
      or adjustment will be proportionately and appropriately varied so that it
      be equal to such aggregate Market Value after the
  variation.

- 6 - 

	10. 	
      RESTRICTIONS ON ISSUANCES

	 	 
	10.1 	
      Share Units may be granted by the Corporation in
      accordance with this Plan provided the aggregate number of Share Units
      outstanding pursuant to the Plan from time to time shall not exceed 7.5%
      of the number of issued and outstanding Equity Interests from time to
      time.

	 	 
	10.2 	
      The maximum number of Shares issuable to Insiders
      pursuant to Section 6.1(a) of the Plan, together with any Shares issuable
      pursuant to any other Security Based Compensation Arrangement, at any
      time, shall not exceed 10% of the total number of outstanding Equity
      Interests. The maximum number of Shares issued to Insiders pursuant to
      Section 6.1(a) of the Plan, together with any Shares issued pursuant to
      any other Security Based Compensation Arrangement, within any one year
      period, shall not exceed 10% of the total number of outstanding Equity
      Interests.

	 	 
	10.3 	
      At any given time, the number of Share Units granted to
      non-Employee Directors under the Plan, in combination with all other
      equity awards granted to non-Employee Directors under any other Security
      Based Compensation Arrangement, shall be limited to the lesser of: (i) a
      reserve, as a group, of equity awards entitling them to acquire up to 1%
      of the issued and outstanding Shares and (ii) an annual equity award value
      (based on grant date fair value as determined by the Board) of $150,000
      per non-Employee Director, provided that the total value (based on grant
      date fair value as determined by the Board) of stock options issuable to
      any one non-Employee Director in any one year period shall not exceed
      $100,000.

	 	 
	10.4 	
      The number of Share Units (or portions thereof) that: (i)
      have been settled or paid-out; or (ii) have expired or been forfeited,
      surrendered, cancelled or otherwise terminated prior to the delivery of
      the Shares pursuant to a grant of Share Units, shall, in each case,
      automatically become available to be made and subject to new grants under
      this Plan. In addition, the number of Share Units (or portions thereof)
      that the Corporation settles in cash in lieu of settlement in Shares shall
      automatically become available to be made the subject of new grants under
      this Plan.

	 	 
	11. 	
      AMENDMENT, SUSPENSION OR TERMINATION OF THE
      PLAN

	 	 
	11.1 	
      Subject to the provisions herein, the Plan may be
      amended, suspended or terminated at any time by the Board in whole or in
      part. No amendment of the Plan shall, without the consent of the
      Participants affected by the amendment, or unless required by Applicable
      Law, adversely affect the rights accrued to such Participants with respect
      to Share Units granted prior to the date of the amendment.

	 	 
	11.2 	
      The Corporation may, without notice, at any time and from
      time to time, and without shareholder approval, amend the Plan or any
      provisions thereof in such manner as the Corporation, in its sole
      discretion, determines appropriate, including, without
  limitation:

	 	(a) 	
      for the purposes of making formal minor or technical
      modifications to any of the provisions of the Plan;

	 	 	 
	 	(b) 	
      to correct any ambiguity, defective provision, error or
      omission in the provisions of the Plan;

	 	 	 
	 	(c) 	
      to change the vesting provisions of Share
Units;

	 	 	 
	 	(d) 	
      to change the termination provisions of Share Units or
      the Plan which does not entail an extension beyond the original Expiry
      Date of the Share Units;

	 	 	 
	 	(e) 	
      to make the amendments contemplated by Section 15.1(f);
      or

	 	 	 
	 	(f) 	
      to make any amendments necessary or advisable because of
      any change in Applicable Law;

provided, however, that: 

- 7 - 

	 	(g) 	
      no such amendment of the Plan may be made without the
      consent of each affected Participant in the Plan if such amendment would
      adversely affect the rights of such affected Participant(s) under the
      Plan; and

	 	 	 
	 	(h) 	
      shareholder approval shall be obtained in accordance with
      the requirements of the TSX for any amendment that results
  in:

	 	(i) 	
      an increase in the maximum number of Shares issuable
      pursuant to the Plan (other than pursuant to Section 9);

	 	 	 
	 	(ii) 	
      an extension of the Expiry Date for Share Units granted
      to Insiders under the Plan;

	 	 	 
	 	(iii) 	
      other types of compensation through Share
  issuance;

	 	 	 
	 	(iv) 	
      an expansion of the rights of a Participant to assign
      Share Units other than as set forth in Section 14.2; or

	 	 	 
	 	(v) 	
      the addition of additional categories of Participants
      (other than as contemplated by Section 9).

	11.3 	
      If the Corporation terminates the Plan, Share Units
      previously credited shall, at the discretion of the Corporation, either
      (a) be settled immediately in accordance with the terms of the Plan in
      effect at such time, or (b) remain outstanding and in effect and settled
      in due course in accordance with the applicable terms and conditions, in
      either case without shareholder approval.

	 	 
	12. 	
      ADMINISTRATION

	 	 
	12.1 	
      Unless otherwise determined by the Board, the Plan shall
      be administered by the Committee subject to Applicable Laws. The Committee
      shall have full and complete authority to interpret the Plan, to prescribe
      such rules and regulations and to make such other determinations as it
      deems necessary or desirable for the administration of the Plan. All
      actions taken and decisions made by the Committee shall be final,
      conclusive and binding on all parties concerned, including, but not
      limited to, the Participants and their beneficiaries and legal
      representatives, each Designated Subsidiary and the Corporation. All
      expenses of administration of the Plan shall be borne by the
      Corporation.

	 	 
	12.2 	
      The Corporation shall keep or cause to be kept such
      records and accounts as may be necessary or appropriate in connection with
      the administration of the Plan and the discharge of its duties. At such
      times as the Corporation shall determine, the Corporation shall furnish
      the Participant with a statement setting forth the details of his or her
      Share Units including the Grant Date and the Vested Share Units and
      unvested Share Units held by each Participant. Such statement shall be
      deemed to have been accepted by the Participant as correct unless written
      notice to the contrary is given to the Corporation within 30 days after
      such statement is given to the Participant.

	 	 
	12.3 	
      The Corporation may, at its discretion, appoint one or
      more persons or companies to provide services in connection with the Plan
      including without limitation, administrative and record-keeping
      services.

	 	 
	13. 	
      BENEFICIARIES AND CLAIMS FOR BENEFITS

	 	 
	13.1 	
      Subject to the requirements of Applicable Law, a
      Participant may designate in writing a Beneficiary to receive any benefits
      that are payable under the Plan upon the death of such Participant. The
      Participant may, subject to Applicable Law, change such designation from
      time to time. Such designation or change shall be in such form and
      executed and filed in such manner as the Corporation may from time to time
      determine.

- 8 - 

	14. 	
      GENERAL

	 	 
	14.1 	
      The transfer of an Employee from the Corporation to a
      Designated Subsidiary, from a Designated Subsidiary to the Corporation or
      from a Designated Subsidiary to another Designated Subsidiary, shall not
      be considered a termination of employment for the purposes of the Plan,
      nor shall it be considered a termination of employment if a Participant is
      placed on such other leave of absence which is considered by the
      Corporation as continuing intact the employment relationship.

	 	 
	14.2 	
      The Plan shall enure to the benefit of and be binding
      upon the Corporation, its successors and assigns. The interest of any
      Participant under the Plan or in any Share Unit shall not be transferable
      or assignable other than by operation of law, except, if and on such terms
      as the Corporation may permit, to a current or former spouse (defined to
      include a putative spouse of such person or any natural person with whom
      such person is or has been in a marital-like relationship where both
      parties cohabitate with knowledge that they are not lawfully married) or
      minor children or grandchildren (defined to include any adopted children)
      or a personal holding company or family trust controlled by a Participant,
      the sole shareholders or beneficiaries of which, as the case may be, are
      any combination of the Participant, the Participant’s current or former
      spouse, the Participant’s minor children or the Participant’s minor
      grandchildren, and after his or her lifetime shall enure to the benefit of
      and be binding upon the Participant’s Beneficiary, on such terms and
      conditions as are appropriate for such transferees to be included in the
      class of transferees who may rely on a Form S-8 registration statement
      under the Securities Act to sell shares received pursuant to the Share
      Unit.

	 	 
	14.3 	
      The Corporation’s grant of any Share Units or issuance of
      any Shares hereunder is subject to compliance with Applicable Law
      applicable thereto. As a condition of participating in the Plan, each
      Participant agrees to comply with all Applicable Law and agrees to furnish
      to the Corporation or a Designated Subsidiary all information and
      undertakings as may be required to permit compliance with Applicable
      Law.

	 	 
	14.4 	
      A Participant shall not have the right or be entitled to
      exercise any voting rights, receive any distribution or have or be
      entitled to any other rights as a Shareholder in respect of any Share
      Units.

	 	 
	14.5 	
      Neither designation of an Employee as a Participant nor
      the grant of any Share Units to any Participant entitles any Participant
      to the grant, or any additional grant, as the case may be, of any Share
      Units under the Plan. Neither the Plan nor any action taken thereunder
      shall interfere with the right of the Corporation or a Designated
      Subsidiary to terminate a Participant’s employment, or service under
      contract, at any time. Neither any period of notice, if any, nor any
      payment in lieu thereof, upon termination of employment, wrongful or
      otherwise, shall be considered as extending the period of employment for
      the purposes of the Plan.

	 	 
	14.6 	
      Participation in the Plan shall be entirely voluntary and
      any decision not to participate shall not affect any Employee’s employment
      or any consultant’s contractual relationship with the Corporation or a
      Designated Subsidiary.

	 	 
	14.7 	
      The Plan shall be an unfunded obligation of the
      Corporation. Neither the establishment of the Plan nor the grant of any
      Share Units or the setting aside of assets by the Corporation (if, in its
      sole discretion, it chooses to do so) shall be deemed to create a trust.
      The right of the Participant or Beneficiary to receive payment pursuant to
      the Plan shall be no greater than the right of other unsecured creditors
      of the Corporation.

	 	 
	14.8 	
      This Plan is established under the laws of the Province
      of British Columbia and the rights of all parties and the construction of
      each and every provision of the Plan and any Share Units granted hereunder
      shall be construed according to the laws of the Province of British
      Columbia.

- 9 - 

	15. 	
      SECTION 409A

	 	 
	15.1 	
      It is intended that the provisions of this Plan comply
      with Section 409A, and all provisions of this Plan shall be construed and
      interpreted in a manner consistent with the requirements for avoiding
      taxes or penalties under Section 409A. Notwithstanding anything in the
      Plan to the contrary, the Corporation may provide in the applicable Grant
      Agreement with respect to Share Units granted to Participants whose
      benefits under the Plan are or may become subject to Section 409A, such
      terms and conditions as may be required for compliance with Section 409A.
      In addition, the following will apply to the extent that a Participant’s
      Share Units are subject to Section 409A.

	 	(a) 	
      Except as permitted under Section 409A, any Share Units,
      or payment with respect to Share Units, may not be reduced by, or offset
      against, any amount owing by the Participant to the Corporation or any
      Designated Subsidiary.

	 	 	 
	 	(b) 	
      If a Participant otherwise would become entitled to
      receive payment in respect of any Share Units as a result of his or her
      ceasing to be an Employee, an Eligible Consultant or director upon a
      Termination Date, any payment made on account of such person ceasing to be
      an Employee or Eligible Consultant shall be made at that time only if the
      Participant has experienced a “separation from service” (within the
      meaning of Section 409A).

	 	 	 
	 	(c) 	
      If a Participant is a “specified employee” (within the
      meaning of Section 409A) at the time he or she otherwise would be entitled
      to payment as a result of his or her separation from service, any payment
      that otherwise would be payable during the six-month period following such
      separation from service will be delayed and shall be paid on the first day
      of the seventh month following the date of such separation from service
      or, if earlier, the Participant’s date of death.

	 	 	 
	 	(d) 	
      A Participant’s status as a specified employee shall be
      determined by the Corporation as required by Section 409A on a basis
      consistent with the regulations under Section 409A and such basis for
      determination will be consistently applied to all plans, programs,
      contracts, agreements, etc. maintained by the Corporation that are subject
      to Section 409A.

	 	 	 
	 	(e) 	
      Each Participant, any beneficiary or the Participant’s
      estate, as the case may be, is solely responsible and liable for the
      satisfaction of all taxes and penalties that may be imposed on or for the
      account of such Participant in connection with this Plan (including any
      taxes and penalties under Section 409A), and neither the Corporation nor
      any Designated Subsidiary or affiliate shall have any obligation to
      indemnify or otherwise hold such Participant or beneficiary or the
      Participant’s estate harmless from any or all of such taxes or
      penalties.

	 	 	 
	 	(f) 	
      If and to the extent that Share Units would otherwise
      become payable upon a Change of Control as defined in the Plan, such
      payment will occur at that time only if such change of control also
      constitutes a “change in ownership”, a “change in effective control” or a
      “change in the ownership of a substantial portion of the assets of the
      Corporation” as defined under Section 409A and applicable regulations (a
      “409A Change in Control”). If a Change of Control as defined in the Plan
      is not also a 409A Change in Control, unless otherwise permitted under
      Section 409A the time for the payment of Share Units will not be
      accelerated and will be payable pursuant to the terms of the Plan and
      applicable Grant Agreement as if such Change of Control had not
      occurred.

	 	 	 
	 	(g) 	
      In the event that the Committee determines that any
      amounts payable under the Plan will be taxable to a Participant under
      Section 409A prior to payment to such Participant of such amount, the
      Corporation may (i) adopt such amendments to the Plan and Share Units and
      appropriate policies and procedures, including amendments and policies
      with retroactive effect, that the Committee determines necessary or
      appropriate to preserve the intended tax treatment of the benefits
      provided by the Plan and Grant Agreement and/or (ii) take such other
      actions as the Corporation determines necessary or appropriate to avoid or
      limit the imposition of an additional tax under Section
  409A.

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	 	(h) 	
      In the event the Corporation terminates the Plan in
      accordance with Section 11.3, the time and manner of payment of amounts
      that are subject to 409A will be made in accordance with the rules under
      Section 409A. The Plan will not be terminated except as permitted under
      Section 409A. No change to the termination provisions of Share Units or
      the Plan pursuant to Section 11.2(d) will be made except as permitted
      under Section 409A.

APPROVED by the Board, as amended on June 8, 2017, effective
February 7, 2017. 

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