Document:

Document

EXHIBIT 10.31

FORM OF
INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered into as of                                                                       , by and between Farmer Bros. Co., a Delaware corporation (the “Company”), and                                                              (“Indemnitee”). 

RECITALS

WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation; 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Certificate of Incorporation (the “Charter”) and the Bylaws of the Company require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to applicable provisions of the Delaware General Corporation Law (the “DGCL”). The Charter, the Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification; 

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons; 

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future; 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 

WHEREAS, this Agreement is a supplement to and in furtherance of the Charter, the Bylaws of the Company and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor diminish or abrogate any rights of Indemnitee thereunder; and 

WHEREAS, Indemnitee does not regard the protection available under the Company’s Charter, Bylaws and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he or she be so indemnified; 

NOW, THEREFORE, in consideration of the premises and the covenants contained herein and Indemnitee’s agreement to serve as a director or officer after the date hereof, the Company and Indemnitee do hereby covenant and agree as follows: 

1.             Definitions.  As used in this Agreement: 

(a)           References to “agent” shall mean any person who is or was a director, officer, or employee of the Company or a Subsidiary of the Company or other person authorized by the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company or a Subsidiary of the Company. 

(b)           The terms “Beneficial Owner” and “Beneficial Ownership” shall have the meanings set forth in Rule 13d-3 promulgated under the Exchange Act as in effect on the date hereof. 

(c)           A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events: 

(i)            Acquisition of Stock by Third Party.  Any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors, unless (1) the change in the relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors, or (2) such acquisition was approved in advance by the Continuing Directors and such acquisition would not constitute a Change in Control under part (iii) of this definition; 

(ii)           Change in Board of Directors.  Individuals who, as of the date hereof, constitute the Board, and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two thirds of the directors then still in office who were directors on the date hereof or whose election for nomination for election was previously so approved (collectively, the “Continuing Directors”), cease for any reason to constitute at least a majority of the members of the Board; 

(iii)          Corporate Transactions.  The effective date of a reorganization, merger or consolidation of the Company (a “Business Combination”), in each case, unless, following such Business Combination: (1) all or substantially all of the individuals and entities who were the Beneficial Owners of securities entitled to vote generally in the election of directors immediately prior to such Business Combination beneficially own, directly or indirectly, more than 51% of the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more Subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the securities entitled to vote generally in the election of directors; (2) no Person (excluding any corporation resulting from such Business Combination) is the Beneficial Owner, directly or indirectly, of 15% or more of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of such corporation except to the extent that such ownership existed prior to the Business Combination; and (3) at least a majority of the Board of Directors of the corporation resulting from such Business Combination were Continuing Directors at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination; 

(iv)          Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement or series of agreements for the sale or disposition by the Company of all or substantially all of the Company’s assets (or, if such approval is not required, the decision by the Board to proceed with such a liquidation, sale, or disposition in one transaction or a series of related transactions); or 

(v)           Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act, whether or not the Company is then subject to such reporting requirement. 

(d)           “Corporate Status” describes the status of a person who is or was a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of the Company or of any other Enterprise which such person is or was serving at the request of the Company. References to “serving at the request of the Company” shall include, without limitation, any service as a director, officer, employee or agent of the Company or any other Enterprise that imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries, including as a deemed fiduciary thereto.

(e)           “Delaware Court” shall mean the Court of Chancery of the State of Delaware. 

(f)            “Disinterested Director” shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee. 

(g)           “Enterprise” shall mean the Company and any other corporation, constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger to which the Company (or any of its wholly owned subsidiaries) is a party, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent. 

(h)           “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(i)            “Expenses” shall include all direct and indirect costs, fees and expenses of any type or nature whatsoever, including, without limitation, attorneys’ fees and costs, retainers, court costs, transcript costs, fees and disbursements of experts, witness fees, fees and disbursements of private investigators and professional advisors, travel expenses, duplicating costs, printing and binding costs, telephone and fax transmission charges, postage, delivery service fees, secretarial services, reasonable compensation for time spent by Indemnitee for which he is not otherwise compensated for by the  Company or any third party, and all other disbursements or expenses in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding or enforcing a right to indemnification under this Agreement. Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(j)            “Independent Counsel” shall mean a law firm or a member of a law firm that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements); or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

(k)           References to “fines” shall include any excise tax assessed on Indemnitee with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service 

as a director, officer, employee, agent or fiduciary of the Company which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect to an employee benefit plan, its participants or beneficiaries (including as a deemed fiduciary thereto); and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

(l)            The term “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act as in effect on the date hereof; provided, however, that “Person” shall exclude: (i) the Company; (ii) any Subsidiary of the Company; (iii) any employee benefit plan of the Company including, without limitation, the Company’s Employee Stock Ownership Plan, or of any Subsidiary of the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan; (iv) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company; and (v) Roy F. Farmer and Emily Farmer (both deceased) and their descendants (collectively, “Farmer Family Members”), the estates of Farmer Family Members and the personal representatives thereof, and trusts, partnerships and other entities created by or for the benefit of Farmer Family Members and the trustees, partners and members thereof.

(m)          A “Potential Change in Control” shall be deemed to have occurred if: (i) the Company enters into an agreement or arrangement, the consummation of which would result in the occurrence of a Change in Control; (ii) any Person or the Company publicly announces an intention to take or consider taking actions which if consummated would constitute a Change in Control; (iii) any Person who becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 5% or more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors increases its Beneficial Ownership of such securities by 5% or more over the percentage so owned by such Person on the date hereof; or (iv) the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred. 

(n)           The term “Proceeding” shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, in each case whether formal or informal, whether brought in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative nature, in which Indemnitee was, is or will be involved as a party or otherwise (including, without limitation, as a witness, even if neither Indemnitee nor the Company is named as a party to such Proceeding) by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action (or failure to act) taken by him or of any action (or failure to act) on his part while acting as a director or officer of the Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of any other Enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses can be provided under this Agreement. 

(o)           The term “Subsidiary,” with respect to any Person, shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by that Person. 

2.             Agreement To Serve. Indemnitee agrees to serve and/or continue to serve as an agent of the Company, at its will (or under separate agreement, if such agreement exists), in the capacity Indemnitee currently serves as an agent of the Company; provided, however, that nothing contained in this Agreement is intended to or shall (i) restrict the ability of Indemnitee to resign at any time and for any reason from any current or future position or positions, (ii) create any right to continued employment of Indemnitee in any current or future position or positions, or (iii) restrict the ability of the Company to terminate the employment or agency of Indemnitee at any time and for any reason (subject to compliance with the terms of any employment or other applicable agreement to which the Company (or any of its Subsidiaries) and Indemnitee are parties).

3.             Indemnification in Third-Party Proceedings.  The Company shall indemnify and hold harmless Indemnitee in accordance with the provisions of this Section 3 if, by reason of his Corporate Status, Indemnitee was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, penalties, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that his conduct was unlawful. 

4.             Indemnification in Proceedings by or in the Right of the Company.  The Company shall indemnify and hold harmless Indemnitee in accordance with the provisions of this Section 4 if, by reason of his Corporate Status, Indemnitee was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Notwithstanding the foregoing, no indemnification shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that any court in which the Proceeding was brought or the Delaware Court shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such Expenses as the court shall deem proper.

5.             Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify and hold harmless Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify and hold harmless Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter. If Indemnitee is not wholly successful in such Proceeding, the Company also shall indemnify and hold harmless Indemnitee against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue or matter on which Indemnitee was successful. For these purposes and without limitation, Indemnitee will be deemed to have been “successful on the merits” in circumstances including but not limited to the termination of any Proceeding or of any claim, issue or matter therein, by the winning of a dismissal (with or without prejudice), motion for summary judgment, settlement (with or without court approval), or upon a plea of nolo contendere or its equivalent. 

6.             Indemnification for Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified and held harmless against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. 

7.             Additional Indemnification

(a)           Notwithstanding any limitation in Sections 3, 4 or 5, the Company shall indemnify and hold harmless Indemnitee if, by reason of his Corporate Status, Indemnitee is a party to or threatened to be made a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee in 

connection with the Proceeding. No indemnity shall be made under this Section 7(a) on account of Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty of loyalty to the Company or its stockholders or is an act or omission not in good faith or which involves intentional misconduct or a knowing violation of the law. 

(b)           Notwithstanding any limitation in Sections 3, 4, 5 or 7(a), the Company shall indemnify and hold harmless Indemnitee if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection with the Proceeding.

8.             Contribution

(a)           Whether or not the indemnification provided in Sections 3, 4, 5 and 7 hereof is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee.  The Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

(b)           Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall contribute to the amount of expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which the Law may require to be considered.  The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.

(c)           The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

(d)           To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

9.             Exclusions.  Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee: 

(a)           for which payment has actually been received by or on behalf of Indemnitee under any Company-purchased insurance policy or other indemnity provision, except with respect to any excess beyond the amount actually received under any insurance policy, contract, agreement, other indemnity provision or otherwise; 

(b)           for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law;

(c)           except as otherwise provided in Sections 14(e) and (f) hereof, prior to a Change in Control, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law; 

(d)           for any Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement resulting from Indemnitee’s conduct which is finally adjudged to have been willful misconduct, knowingly fraudulent or deliberately dishonest; or

(e)           if a court of competent jurisdiction shall finally determine that any indemnification hereunder is unlawful.

10.          Advances of Expenses; Defense of Claim; Information Sharing

(a)           Notwithstanding any provision of this Agreement to the contrary, and to the fullest extent permitted by applicable law, the Company shall advance all Expenses incurred by or on behalf of Indemnitee (or reasonably expected by Indemnitee to be incurred by Indemnitee within three months) in connection with any Proceeding by reason of Indemnitee’s Corporate Status within ten (10) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding; provided, however, that Indemnitee shall not be required to include in any such statement any information that would cause Indemnitee to waive any privilege provided by applicable law. Without limiting the generality or effect of the foregoing, within thirty (30) days after any request for Advances by Indemnitee, the Company shall, in accordance with such request (but without duplication), (i) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient for Indemnitee to pay such Expenses, and/or (iii) to the extent that Indemnitee has already paid for Expenses, reimburse Indemnitee for such Expenses. Indemnitee’s right to advances shall include all Expenses incurred through and including the final disposition of such Proceeding, including any appeal thereof.  Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all reasonable Expenses incurred pursuing a Proceeding to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.  The right to advances under this section shall in all events continue until final disposition of any Proceeding, including any appeal therein. The Company shall not seek from a court, or agree to, a "bar order" which would have the effect of prohibiting or limiting the Indemnitee's rights to receive advancement of expenses under this Agreement. Indemnitee shall qualify for advances, to the fullest extent permitted by applicable law, solely upon the execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that Indemnitee undertakes to the fullest extent permitted by law to repay the advance (without interest) if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to further appeal, that Indemnitee is not entitled to be indemnified by the Company under the provisions of this Agreement or applicable law. No other form of undertaking shall be required other than the execution of this Agreement.

(b)           With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement thereof, the Company will be entitled to participate in the Proceeding at its own expense and except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory to Indemnitee.  After notice from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable costs of investigation or as otherwise provided below.  Following any such assumption of defense by the Company, Indemnitee shall have the right to employ legal counsel in such Proceeding, but all Expenses related thereto incurred after notice from the Company of its assumption of the defense shall be at Indemnitee’s expense unless: (i) the employment of legal counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of the Proceeding, (iii) the fees and expenses are non-duplicative and reasonably incurred in connection with Indemnitee’s role in the Proceeding despite the Company’s assumption of the defense,  (iv) after a Change in Control, the employment of counsel by Indemnitee has been approved by the Independent Counsel, or (v) the Company shall not in fact have employed counsel to assume the defense of such Proceeding, in each of which cases all Expenses of the Proceeding shall be borne by the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company, or as to which Indemnitee shall have made the determination provided for in (ii) above or under the circumstances provided for in (iii) and (iv) above. Indemnitee agrees that any such separate counsel retained by Indemnitee will be a member of any approved list of panel counsel under the Company’s applicable directors’ and officers’ insurance policy, should the applicable policy provide for a panel of approved counsel and should such approve panel list comprise law firms with well-established reputations in the type of litigation at issue. 

(c)           The Company shall not settle any action, claim or Proceeding (in whole or in part) which would impose any Expense, judgment, fine, penalty or limitation on Indemnitee without Indemnitee’s prior written consent. 
(d)           If Indemnitee is the subject of or is implicated in any way during an investigation, whether formal or informal, the Company shall share with Indemnitee any information it has turned over to any third parties concerning the investigation (“Shared Information”).  By executing this Agreement, Indemnitee agrees that such Shared Information is material non-public information that Indemnitee is obligated to hold in confidence and may not disclose publicly; provided, however, that Indemnitee shall be permitted to use the Shared Information and to disclose Shared Information to Indemnitee’s legal counsel solely in connection with defending Indemnitee from legal liability.

11.          Procedure for Notification and Application for Indemnification

(a)           Indemnitee agrees to notify promptly the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement, or otherwise. 

(b)           Indemnitee may deliver to the Company a written application to indemnify and hold harmless Indemnitee in accordance with this Agreement. Such application(s) may be delivered from time to time and at such time(s) as Indemnitee deems appropriate in his sole discretion. Following such a written application for indemnification by Indemnitee, Indemnitee’s entitlement to indemnification shall be determined according to Section 12(a) of this Agreement. 

12.          Procedure Upon Application for Indemnification

(a)           A determination, if required by applicable law, with respect to Indemnitee’s entitlement to indemnification shall be made in the specific case by one of the following methods, which shall be at the election of the Board: (i) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board or 

(ii) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee. The Company promptly shall advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 

(b)           In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel shall be selected as provided in this Section 12(b). The Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected and certifying that the Independent Counsel so selected meets the requirements of “Independent Counsel” as defined in Section 1 of this Agreement. Indemnitee may, within ten (10) days after such written notice of selection shall have been received, deliver to the Company a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 11(b) hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by Indemnitee to the Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Delaware Court, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 12(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 12(a) hereof, regardless of the manner in which such Independent Counsel was selected or appointed.
13.          Presumptions and Effect of Certain Proceedings

(a)           In making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(b) of this Agreement, and the Company shall have the burden of proof to overcome that presumption (by clear and convincing evidence) in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct. 

(b)           If the person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within thirty (30) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact 

necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a final judicial determination that any or all such indemnification is expressly prohibited under applicable law; provided, however, that such 30-day period may be extended for a reasonable time, not to exceed an additional fifteen (15) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto. 

(c)           The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful. 

(d)           For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected by the Enterprise. The provisions of this Section 13(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed or found to have met the applicable standard of conduct set forth in this Agreement. 

(e)           The knowledge and/or actions, or failure to act, of any other director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

14.          Remedies of Indemnitee

(a)           In the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses, to the fullest extent permitted by applicable law, is not timely made pursuant to Section 10 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 12(a) of this Agreement within thirty (30) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5, 6, or the last sentence of Section 12(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) a contribution payment is not made in a timely manner pursuant to Section 8 of this Agreement, or (vi) payment of indemnification pursuant to Section 3 or 4 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication by the Delaware Court to such indemnification, contribution or advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Except as set forth herein, the provisions of Delaware law (without regard to its conflict of laws rules) shall apply to any such arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 

(b)           In the event that a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 14, Indemnitee shall be presumed to be entitled to indemnification under this Agreement and the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and the Company may not refer to or introduce into evidence any determination pursuant to Section 12(a) of this Agreement adverse to Indemnitee for any purpose. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 14, Indemnitee shall not be required to 

reimburse the Company for any advances pursuant to Section 10 until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). 

(c)           If a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law. 

(d)           The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. 

(e)           The Company shall indemnify and hold harmless Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee, shall (within ten (10) days after the Company’s receipt of such written request) advance to Indemnitee, to the fullest extent permitted by applicable law, such Expenses which are incurred by Indemnitee in connection with any judicial proceeding or arbitration brought by Indemnitee (i) to enforce his rights under, or to recover damages for breach of, this Agreement or any other indemnification, advancement or contribution agreement or provision of the Charter, or the Company’s Bylaws now or hereafter in effect; or (ii) for recovery or advances under any insurance policy maintained by any person for the benefit of Indemnitee, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance, contribution or insurance recovery, as the case may be. 

(f)            Interest shall be paid by the Company to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies or is obliged to indemnify for the period commencing with the date on which Indemnitee requests indemnification, contribution, reimbursement or advancement of any Expenses and ending with the date on which such payment is made to Indemnitee by the Company. 

15.          Establishment of Trust.  In the event of a Potential Change in Control, the Company shall, upon written request by Indemnitee, create a “Trust” for the benefit of Indemnitee and from time to time upon written request of Indemnitee shall fund such Trust in an amount sufficient to satisfy any and all Expenses reasonably anticipated at the time of each such request to be incurred in connection with investigating, preparing for, participating in or defending any Proceedings, and any and all judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such judgments, fines penalties and amounts paid in settlement) in connection with any and all Proceedings from time to time actually paid or claimed, reasonably anticipated or proposed to be paid. The trustee of the Trust (the “Trustee”) shall be a bank or trust company or other individual or entity chosen by Indemnitee and reasonably acceptable to the Company. Nothing in this Section 15 shall relieve the Company of any of its obligations under this Agreement. The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by mutual agreement of Indemnitee and the Company or, if the Company and Indemnitee are unable to reach such an agreement, by Independent Counsel selected in accordance with Section 12(b) of this Agreement. The terms of the Trust shall provide that, except upon the consent of both Indemnitee and the Company, upon a Change in Control: (a) the Trust shall not be revoked or the principal thereof invaded, without the written consent of Indemnitee; (b) the Trustee shall advance, to the fullest extent permitted by applicable law, within two (2) business days of a request by Indemnitee and upon the execution and delivery to the Company of an undertaking providing that Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company, any and all Expenses to Indemnitee; (c) the Trust shall continue to be funded by the Company in accordance with the funding obligations set forth above; (d) the Trustee shall promptly pay to Indemnitee all amounts for which Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise; and (e) all unexpended funds in such Trust shall revert to the Company upon mutual agreement by Indemnitee and the Company or, if Indemnitee and the Company are unable to reach such an agreement, by Independent Counsel selected in accordance with Section 12(b) of this Agreement, that Indemnitee has been fully indemnified under the terms of this Agreement. The Trust shall be governed by Delaware law (without regard to 

its conflicts of laws rules) and the Trustee shall consent to the exclusive jurisdiction of the Delaware Court in accordance with Section 23 of this Agreement. 

16.          Security.  Notwithstanding anything herein to the contrary, to the extent requested by Indemnitee and approved by the Board, the Company may at any time and from time to time provide security to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of Indemnitee. 

17.          Non-Exclusivity; Survival of Rights; Insurance; Subrogation; Period of Limitations

(a)           The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Charter, the Company’s Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in applicable law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Charter, the Company’s Bylaws or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 

(b)           The DGCL, the Charter and the Company’s Bylaws permit the Company to purchase and maintain insurance or furnish similar protection or make other arrangements including, but not limited to, providing a trust fund, letter of credit, or surety bond (“Indemnification Arrangements”) on behalf of Indemnitee against any liability asserted against him or incurred by or on behalf of him or in such capacity as a director, officer, employee or agent of the Company, or arising out of his status as such, whether or not the Company would have the power to indemnify him against such liability under the provisions of this Agreement or under the DGCL, as it may then be in effect. The purchase, establishment, and maintenance of any such Indemnification Arrangement shall not in any way limit or affect the rights and obligations of the Company or of Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights and obligations of the Company or the other party or parties thereto under any such Indemnification Arrangement. 

(c)           For the duration of Indemnitee’s service at the request of the Company and thereafter for so long as Indemnitee shall be subject to being made a party to or participant in any Proceeding by reason of Indemnitee’s current or former Corporate Status, the Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to cause to be maintained in effect policies of directors’ and officers’ liability insurance providing coverage for directors and/or officers of the Company that is at least substantially comparable in scope and amount to that provided by the Company’s current policies of directors’ and officers’ liability insurance.  The minimum AM Best rating for the insurance carriers of such insurance policy shall be not less than A- VI.

(d)           In the event of a Change in Control or the Company becoming insolvent—including, without limitation, being placed into receivership or entering the federal bankruptcy process and the like—the Company shall maintain in force any and all insurance policies then maintained by the Company in providing insurance—directors’ and officers’ liability, fiduciary, employment practices or otherwise—in respect of Indemnitee, for a period of six years thereafter (a “Tail Policy”).  Such coverage shall be with the incumbent insurance carriers using the policies that were in place immediately prior to the consummation of the Change in Control (unless the incumbent carrier(s) will not offer such policies, in which case the Tail Policy shall be 

substantially comparable in scope and amount as the expiring policies, and the insurance carriers for the Tail Policy shall have an AM Best rating that is the same or better than the AM Best ratings of the expiring policies).  Notwithstanding the foregoing, if the annual premium of any year of such Tail Policy or other continuing policies of insurance--directors’ and officers’ liability, fiduciary, employment practices or otherwise—would exceed 250% of the annual premium the Company paid for such insurance in its last full fiscal year prior to the reduction, termination, or expiration of such insurance or to such Change in Control (either case, a “Measuring Event”), the Company (or the acquiror or successor of the Company, as the case may be) will be deemed to have satisfied its obligations under this Section 17(d) by purchasing as much such insurance for such year as can be obtained for a premium equal to 250% of such annual premium the Company paid for such insurance prior to the Measuring Event.  The insurance to be placed and serviced pursuant to this Section 17(d) shall be placed by the Company’s insurance broker as of the time immediately prior to such Change in Control or insolvency event. 

(e)           To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, trustees, partners, managing members, fiduciaries, employees, or agents of the Company or of any other Enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, trustee, partner, managing member, fiduciary, employee or agent under such policy or policies. If, at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company will instruct the insurers and their brokers that they may communicate directly with Indemnitee regarding such matter. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. 

(f)            In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

(g)           The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such Enterprise. 

(h)           No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern.  Notwithstanding the foregoing; however, in a case where the Indemnitee fraudulently conceals the facts underlying such cause of action, no proceeding shall be brought and no cause of action shall be asserted after the expiration of one year from the earlier of (i) the date the Corporation or any subsidiary of the Corporation discovers such facts, or (ii) the date the Corporation or any subsidiary of the Corporation could have discovered such facts by the exercise of reasonable diligence. Any claim or cause or action of the Corporation or any subsidiary of the Corporation against the Indemnitee, including claims predicated upon the negligent act or omission of the Indemnitee, shall be extinguished and deemed released unless asserted by filing of a legal action within such period.

18.          Duration of Agreement.  All agreements and obligations of the Company contained herein shall continue during the period Indemnitee serves as a director or officer of the Company or as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee serves at the request of the Company and shall continue thereafter so long as Indemnitee may be subject to any possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement) by reason of his 

Corporate Status, whether or not he is acting in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement. 

19.          Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 

20.          Enforcement and Binding Effect

(a)           The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

(b)           Without limiting any of the rights of Indemnitee under the Charter or Bylaws of the Company as they may be amended from time to time, this Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof. If the DGCL or any other applicable law is amended after the date hereof to permit the Company to indemnify Indemnitee for Expenses or liabilities, or to indemnify Indemnitee with respect to any action or Proceeding, not contemplated by this Agreement, then this Agreement (without any further action by either party hereto) shall automatically be deemed to be amended to require that the Company indemnify Indemnitee to the fullest extent permitted by the DGCL.

(c)           The indemnification and advancement of expenses provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise at the Company’s request, and shall inure to the benefit of Indemnitee and his spouse, assigns, heirs, devisees, executors and administrators and other legal representatives. 

(d)           The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement to the fullest extent permitted by law. 

(e)           The Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which he may be entitled. The Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by the court, and the Company hereby waives any such requirement of such a bond or undertaking. 

21.          Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver. 

22.          Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (i) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on which it is so mailed: 

a.If to Indemnitee, at the address indicated on the signature page of this Agreement or such                 other address as Indemnitee shall provide in writing to the Company. 

(b)           If to the Company, to: 

Farmer Bros. Co.  1912 Farmer Brothers Drive
Northlake, TX 76262
Attention: Corporate Secretary

or to any other address as may have been furnished to Indemnitee in writing by the Company. 

23.          Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally: (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court and not in any other state or federal court in the United States of America or any court in any other country; (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement; (c) appoint irrevocably, to the extent such party is not a resident of the State of Delaware, RL&F Service Corp., One Rodney Square, 10th Floor, 10th and King Streets, P.O. Box 551, Wilmington, Delaware 19899 as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware; (d) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court; and (e) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum, or is subject (in whole or in part) to a jury trial. 

24.          Counterparts.       This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement. 

25.          Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written. 

FARMER BROS. CO.

By:                                                                         
Name:  
Title:  

INDEMNITEE

Address:Exhibit 4.1

  

	Incorporation number: BC1166724
	 
	DRONE ACQUISITION CORP.
	(the “Company ”)
	 
	The Company has as its articles the following articles.	 

 

	 	Full name and signature of each incorporator	Date of signing
	 	 	 
	 	/s/ Denis Silva	 	June 1, 2018
	 	DENIS SILVA	 

 

     

     

    

 

	ARTICLES
	 
	1.	Interpretation	1
	2.	Shares and Share Certificates	1
	3.	Issue of Shares	4
	4.	Share Registers	5
	5.	Share Transfers	5
	6.	Transmission of Shares	6
	7.	Purchase of Shares	7
	8.	Borrowing Powers	7
	9.	Alterations	8
	10.	Meetings of Shareholders	9
	11.	Proceedings at Meetings of Shareholders	11
	12.	Votes of Shareholders	15
	13.	Directors	19
	14.	Election and Removal of Directors	20
	15.	Alternate Directors	25
	16.	Powers and Duties of Directors	27
	17.	Interests of Directors and Officers	28
	18.	Proceedings of Directors	29
	19.	Executive and Other Committees	31
	20.	Officers	33
	21.	Indemnification	34
	22.	Dividends	35
	23.	Documents, Records and Reports	37
	24.	Notices	37
	25.	Seal	39
	26.	Prohibitions	40
	27.	Special Rights And Restrictions - Class A Common Shares	40
	28.	Special
    Rights And Restrictions – Class-B Common Shares Altered By Special Resolution July 17, 2019	41
	29.	Special Rights And Restrictions – Class-C Shares	42
	30.	Special Rights And Restrictions – Class-D Preferred Shares	43
	28.	SPECIAL RIGHTS AND RESTRICTIONS – PREFERRED	49

 

     

     

    

 

	1.	Interpretation

  

	1.1	Definitions

  

In these Articles, unless the context otherwise
requires:

  

	(1)	“appropriate person” has the meaning assigned in the Securities Transfer Act;

 

	(2)	“board of directors”, “directors” and “board”
mean the directors or sole director of the Company for the time being;

  

	(3)	“Business Corporations Act” means the Business Corporations Act (British
Columbia) from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that
Act;

  

	(4)	“Interpretation Act” means the Interpretation Act (British Columbia)
from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act;

  

	(5)	“legal personal representative” means the personal or other legal representative of
a shareholder;

  

	(6)	“protected purchaser” has the meaning assigned in the Securities Transfer Act;

 

	(7)	“registered address” of a shareholder means the shareholder’s address as recorded
in the central securities register;

  

	(8)	“seal” means the seal of the Company, if any;

  

	(9)	“securities legislation” means statutes concerning the regulation of securities markets
and trading in securities and the regulations, rules, forms and schedules under those statutes, all as amended from time to time, and
the blanket rulings and orders, as amended from time to time, issued by the securities commissions or similar regulatory authorities appointed
under or pursuant to those statutes; “Canadian securities legislation” means the securities legislation in any province
or territory of Canada and includes the Securities Act (British Columbia); and “U.S. securities legislation”
means the securities legislation in the federal jurisdiction of the United States and in any state of the United States and includes the
Securities Act of 1933 and the Securities Exchange Act of 1934; and

  

	(10)	“Securities Transfer Act” means the Securities Transfer Act (British Columbia)
from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act.

  

	1.2	Business Corporations Act and Interpretation Act Definitions
Applicable

  

	2.	Shares and Share Certificates

  

The definitions in the Business Corporations
Act and the definitions and rules of construction in the Interpretation Act, with the necessary changes, so far as applicable,
and unless the context requires otherwise, apply to these Articles as if they were an enactment. If there is a conflict between a definition
in the Business Corporations Act and a definition or rule in the Interpretation Act relating to a term used in these
Articles, the definition in the Business Corporations Act will prevail in relation to the use of the term in these Articles. If
there is a conflict or inconsistency between these Articles and the Business Corporations Act, the Business Corporations Act
will prevail.

 

     

     

    

  

	2.1	Authorized Share Structure

  

The authorized share structure of the Company
consists of shares of the class or classes and series, if any, described in the Notice of Articles of the Company.

  

	2.2	Form of Share Certificate

  

Each share certificate issued by the Company must
comply with, and be signed as required by, the Business Corporations Act.

  

	2.3	Shareholder Entitled to Certificate or Acknowledgment

  

Unless the shares of which the shareholder is
the registered owner are uncertificated shares, each shareholder is entitled, without charge, to (a) one share certificate representing
the shares of each class or series of shares registered in the shareholder’s name or (b) a non-transferable written acknowledgment
of the shareholder’s right to obtain such a share certificate, provided that in respect of a share held jointly by several persons,
the Company is not bound to issue more than one share certificate or acknowledgment and delivery of a share certificate or an acknowledgment
to one of several joint shareholders or to a duly authorized agent of one of the joint shareholders will be sufficient delivery to all.

  

	2.4	Delivery by Mail

  

Any share certificate or non-transferable written
acknowledgment of a shareholder’s right to obtain a share certificate may be sent to the shareholder by mail at the shareholder’s
registered address and neither the Company nor any director, officer or agent of the Company is liable for any loss to the shareholder
because the share certificate or acknowledgement is lost in the mail or stolen.

  

	2.5	Replacement of Worn Out or Defaced Certificate or Acknowledgement

  

If the directors are satisfied that a share certificate
or a non-transferable written acknowledgment of the shareholder’s right to obtain a share certificate is worn out or defaced, they
must, on production to them of the share certificate or acknowledgment, as the case may be, and on such other terms, if any, as they think
fit:

  

	(1)	order the share certificate or acknowledgment, as the case may be, to be cancelled; and

  

	(2)	issue a replacement share certificate or acknowledgment, as the case may be.

 

    - 2 - 

     

    

  

	2.6	Replacement of Lost, Destroyed or Wrongfully Taken Certificate

  

If a person entitled to a share certificate claims
that the share certificate has been lost, destroyed or wrongfully taken, the Company must issue a new share certificate, if that person:

  

	(1)	so requests before the Company has notice that the share certificate has been acquired by a protected
purchaser;

  

	(2)	provides the Company with an indemnity bond sufficient in the Company’s judgment to protect the
Company from any loss that the Company may suffer by issuing a new certificate; and

 

	(3)	satisfies any other reasonable requirements imposed by the directors.

 

A person entitled to a share certificate may not
assert against the Company a claim for a new share certificate where a share certificate has been lost, apparently destroyed or wrongfully
taken if that person fails to notify the Company of that fact within a reasonable time after that person has notice of it and the Company
registers a transfer of the shares represented by the certificate before receiving a notice of the loss, apparent destruction or wrongful
taking of the share certificate.

 

	2.7	Recovery of New Share Certificate

 

If, after the issue of a new share certificate,
a protected purchaser of the original share certificate presents the original share certificate for the registration of transfer, then
in addition to any rights on the indemnity bond, the Company may recover the new share certificate from a person to whom it was issued
or any person taking under that person other than a protected purchaser.

 

	2.8	Splitting Share Certificates

  

If a shareholder surrenders a share certificate
to the Company with a written request that the Company issue in the shareholder’s name two or more share certificates, each representing
a specified number of shares and in the aggregate representing the same number of shares as represented by the share certificate so surrendered,
the Company must cancel the surrendered share certificate and issue replacement share certificates in accordance with that request.

 

	2.9	Certificate Fee

  

There must be paid to the Company, in relation
to the issue of any share certificate under Articles 2.5, 2.6 or 2.8, the amount, if any and which must not exceed the amount prescribed
under the Business Corporations Act, determined by the directors.

  

	2.10	Recognition of Trusts

  

Except as required by law or statute or these
Articles, no person will be recognized by the Company as holding any share upon any trust, and the Company is not bound by or compelled
in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share or fraction
of a share or (except as required by law or statute or these Articles or as ordered by a court of competent jurisdiction) any other rights
in respect of any share except an absolute right to the entirety thereof in the shareholder.

 

    - 3 - 

     

    

 

	3.	Issue of Shares

  

	3.1	Directors Authorized

  

Subject to the Business Corporations Act and the
rights, if any, of the holders of issued shares of the Company, the Company may issue, allot, sell or otherwise dispose of the unissued
shares, and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms and conditions
and for the issue prices (including any premium at which shares with par value may be issued) that the directors may determine. The issue
price for a share with par value must be equal to or greater than the par value of the share.

  

	3.2	Commissions and Discounts

  

The Company may at any time, pay a reasonable
commission or allow a reasonable discount to any person in consideration of that person purchasing or agreeing to purchase shares of the
Company from the Company or any other person or procuring or agreeing to procure purchasers for shares of the Company.

 

	3.3	Brokerage

 

The Company may pay such brokerage fee or other
consideration as may be lawful for or in connection with the sale or placement of its securities.

 

	3.4	Conditions of Issue

  

Except as provided for by the Business Corporations
Act, no share may be issued until it is fully paid. A share is fully paid when:

  

	(1)	consideration is provided to the Company for the issue of the share by one or more of the following:

 

		(a)	past services performed for the Company;

 

		(b)	property;

 

		(c)	money; and

  

	(2)	the value of the consideration received by the Company equals or exceeds the issue price set for the share
under Article 3.1.

 

	3.5	Share Purchase Warrants and Rights

 

Subject to the Business Corporations Act,
the Company may issue share purchase warrants, options and rights upon such terms and conditions as the directors determine, which share
purchase warrants, options and rights may be issued alone or in conjunction with debentures, debenture stock, bonds, shares or any other
securities issued or created by the Company from time to time.

 

    - 4 - 

     

    

 

	4.	Share Registers

  

	4.1	Central Securities Register

 

As required by and subject to the Business
Corporations Act, the Company must maintain in British Columbia a central securities register. The directors may, subject to the Business
Corporations Act, appoint an agent to maintain the central securities register. The directors may also appoint one or more agents,
including the agent which keeps the central securities register, as transfer agent for its shares or any class or series of its shares,
as the case may be, and the same or another agent as registrar for its shares or such class or series of its shares, as the case may be.
The directors may terminate such appointment of any agent at any time and may appoint another agent in its place.

  

	4.2	Closing Register

  

The Company must not at any time close its central
securities register.

  

	5.	Share Transfers

  

	5.1	Registering Transfers

  

Subject to the Business Corporations Act,
a transfer of a share of the Company must not be registered unless the Company or the transfer agent or registrar for the class or series
of share to be transferred has received:

  

	(1)	in the case of a share certificate that has been issued by the Company in respect of the share to be transferred,
that share certificate and a written instrument of transfer (which may be on a separate document or endorsed on the share certificate)
made by the shareholder or other appropriate person or by an agent who has actual authority to act on behalf of that person;

  

	(2)	in the case of a non-transferable written acknowledgment of the shareholder’s right to obtain a
share certificate that has been issued by the Company in respect of the share to be transferred, a written instrument of transfer that
directs that the transfer of the shares be registered, made by the shareholder or other appropriate person or by an agent who has actual
authority to act on behalf of that person;

  

	(3)	in the case of a share that is an uncertificated share, a written instrument of transfer that directs
that the transfer of the share be registered, made by the shareholder or other appropriate person or by an agent who has actual authority
to act on behalf of that person; and

  

	(4)	such other evidence, if any, as the Company or the transfer agent or registrar for the class or series
of share to be transferred may require to prove the title of the transferor or the transferor’s right to transfer the share, that
the written instrument of transfer is genuine and authorized and that the transfer is rightful or to a protected purchaser.

 

    - 5 - 

     

    

 

		5.2	Form of Instrument of Transfer

 

The instrument of transfer in respect of any share
of the Company must be either in the form, if any, on the back of the Company’s share certificates or in any other form that may
be approved by the directors or the transfer agent for the class or series of shares to be transferred.

 

		5.3	Transferor Remains Shareholder

 

Except to the extent that the Business Corporations
Act otherwise provides, the transferor of shares is deemed to remain the holder of the shares until the name of the transferee is
entered in a securities register of the Company in respect of the transfer.

 

		5.4	Signing of Instrument of Transfer

 

If a shareholder, or his or her duly authorized
attorney, signs an instrument of transfer in respect of shares registered in the name of the shareholder, the signed instrument of transfer
constitutes a complete and sufficient authority to the Company and its directors, officers and agents to register the number of shares
specified in the instrument of transfer or specified in any other manner, or, if no number is specified, all the shares represented by
the share certificates or set out in the written acknowledgments deposited with the instrument of transfer:

 

		(1)	in the name of the person named as transferee in that instrument of transfer; or

 

		(2)	if no person is named as transferee in that instrument of transfer, in the name of the person on whose
behalf the instrument is deposited for the purpose of having the transfer registered.

 

		5.5	Enquiry as to Title Not Required

 

Neither the Company nor any director, officer
or agent of the Company is bound to inquire into the title of the person named in the instrument of transfer as transferee or, if no
person is named as transferee in the instrument of transfer, of the person on whose behalf the instrument is deposited for the purpose
of having the transfer registered or is liable for any claim related to registering the transfer by the shareholder or by any intermediate
owner or holder of the shares, of any interest in the shares, of any share certificate representing such shares or of any written acknowledgment
of a right to obtain a share certificate for such shares.

 

		5.6	Transfer Fee

 

There must be paid to the Company, in relation
to the registration of any transfer, the amount, if any, determined by the directors.

 

		6.	Transmission of Shares

 

		6.1	Legal Personal Representative Recognized on Death

 

In the case of the death of a shareholder,
the legal personal representative of the shareholder, or in the case of shares registered in the shareholder’s name and the
name of another person in joint tenancy, the surviving joint holder, will be the only person recognized by the Company as having any
title to the shareholder’s interest in the shares. Before recognizing a person as a legal personal representative of a
shareholder, the directors may require the original grant of probate or letters of administration
or a court certified copy of them or the original or a court certified or authenticated copy of the grant of representation, will,
order or other instrument or other evidence of the death under which title to the shares or securities is claimed to vest.

 

    - 6 - 

     

    

 

		6.2	Rights of Legal Personal Representative

 

The legal personal representative of a shareholder
has the same rights, privileges and obligations that attach to the shares held by the shareholder, including the right to transfer the
shares in accordance with these Articles, if appropriate evidence of appointment or incumbency within the meaning of s. 87 of the Securities
Transfer Act has been deposited with the Company. This Article 6.2 does not apply in the case of the death of a shareholder with
respect to shares registered in the shareholder’s name and the name of another person in joint tenancy.

 

		7.	Purchase of Shares

 

		7.1	Company Authorized to Purchase Shares

 

Subject to Article 7.2, the special rights
and restrictions attached to the shares of any class or series and the Business Corporations Act, the Company may, if authorized
by the directors, purchase or otherwise acquire any of its shares at the price and upon the terms specified in such resolution.

 

		7.2	Purchase When Insolvent

 

The Company must not make a payment or provide
any other consideration to purchase or otherwise acquire any of its shares if there are reasonable grounds for believing that:

 

		(1)	the Company is insolvent; or

 

		(2)	making the payment or providing the consideration would render the Company insolvent.

 

		7.3	Sale and Voting of Purchased Shares

 

If the Company retains a share redeemed, purchased
or otherwise acquired by it, the Company may sell, gift or otherwise dispose of the share, but, while such share is held by the Company,
it:

 

		(1)	is not entitled to vote the share at a meeting of its shareholders;

 

		(2)	must not pay a dividend in respect of the share; and

 

		(3)	must not make any other distribution in respect of the share.

 

		8.	Borrowing Powers

 

The Company, if authorized by the directors, may:

 

		(1)	borrow money in the manner and amount, on the security, from the sources and on the terms and conditions
that they consider appropriate;

 

    - 7 - 

     

    

 

		(2)	issue bonds, debentures and other debt obligations either outright or as security for any liability or
obligation of the Company or any other person and at such discounts or premiums and on such other terms as they consider appropriate;

 

		(3)	guarantee the repayment of money by any other person or the performance of any obligation of any other
person; and

 

		(4)	mortgage, charge, whether by way of specific or floating charge, grant a security interest in, or give
other security on, the whole or any part of the present and future assets and undertaking of the Company.

 

		9.	Alterations

 

		9.1	Alteration of Authorized Share Structure

 

Subject to Article 9.2 and the Business
Corporations Act, the Company may:

 

		(1)	by ordinary resolution:

 

		(a)	create one or more classes or series of shares or, if none of the shares of a class or series of shares
are allotted or issued, eliminate that class or series of shares;

 

		(b)	increase, reduce or eliminate the maximum number of shares that the Company is authorized to issue out
of any class or series of shares or establish a maximum number of shares that the Company is authorized to issue out of any class or series
of shares for which no maximum is established;

 

		(c)	if the Company is authorized to issue shares of a class of shares with par value:

 

		(i)	decrease the par value of those shares; or

 

		(ii)	if none of the shares of that class of shares are allotted or issued, increase the par value of those
shares;

 

		(d)	alter the identifying name of any of its shares; or

 

		(e)	otherwise alter its shares or authorized
                                            share structure when required or permitted to do so by the Business Corporations Act.

 

		(2)	by resolution of the directors, subdivide or consolidate all or any of its unissued, or fully paid issued,
shares.

 

and, if applicable, alter its Notice of Articles
and, if applicable, its Articles, accordingly.

 

		9.2	Special Rights and Restrictions

 

Subject to the Business Corporations Act,
the Company may by ordinary resolution:

 

		(1)	create special rights or restrictions for, and attach those special rights or restrictions to, the shares
of any class or series of shares, whether or not any or all of those shares have been issued;

 

    - 8 - 

     

    

 

		(2)	vary or delete any special rights or restrictions attached to the shares of any class or series of shares,
whether or not any or all of those shares have been issued; or

 

		(3)	change all or any of its unissued, or fully paid issued, shares with par value into shares without par
value or any of its unissued shares without par value into shares with par value.

 

and alter its Notice of Articles accordingly.

 

		9.3	Change of Name

 

The Company may by a resolution of the directors
authorize an alteration of its Notice of Articles in order to change its name or adopt or change any translation of that name.

 

		9.4	Other Alterations

 

If the Business Corporations Act does not
specify the type of resolution and these Articles do not specify another type of resolution, the Company may by ordinary resolution alter
these Articles.

 

		10.	Meetings of Shareholders

 

		10.1	Annual General Meetings

 

Unless an annual general meeting is deferred or
waived in accordance with the Business Corporations Act, the Company must hold its first annual general meeting within 18 months
after the date on which it was incorporated or otherwise recognized, and after that must hold an annual general meeting at least once
in each calendar year and not more than 15 months after the last annual reference date at such time and place as may be determined by
the directors.

 

		10.2	Resolution Instead of Annual General Meeting

 

If all the shareholders who are entitled to vote
at an annual general meeting consent by a unanimous resolution under the Business Corporations Act to all of the business that
is required to be transacted at that annual general meeting, the annual general meeting is deemed to have been held on the date of the
unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article 10.2, select as the Company’s
annual reference date a date that would be appropriate for the holding of the applicable annual general meeting.

 

		10.3	Calling of Meetings of Shareholders

 

The directors may, whenever they think fit, call
a meeting of shareholders.

 

		10.4	Location of Meetings of Shareholders

 

Subject to the Business Corporations Act,
a meeting of shareholders may be held in or outside of British Columbia as determined by a resolution of the directors.

 

    - 9 - 

     

    

 

		10.5	Notice for Meetings of Shareholders

 

The Company must send notice of the date, time
and location of any meeting of shareholders, in the manner provided in these Articles, or in such other manner, if any, as may be prescribed
by ordinary resolution (whether previous notice of the resolution has been given or not), to each shareholder entitled to attend the meeting,
to each director and to the auditor of the Company, unless these Articles otherwise provide, at least the following number of days before
the meeting:

 

		(1)	if and for so long as the Company is a public company, 21 days;

 

		(2)	otherwise, 10 days.

 

		10.6	Record Date for Notice

 

The directors may set a date as the record date
for the purpose of determining shareholders entitled to notice of any meeting of shareholders. The record date must not precede the date
on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the
Business Corporations Act, by more than four months. The record date must not precede the date on which the meeting is held by
fewer than:

 

		(1)	if and for so long as the Company is a public company, 21 days;

 

		(2)	otherwise, 10 days.

 

If no record date is set, the record date is 5
p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

 

		10.7	Record Date for Voting

 

The directors may set a date as the record date
for the purpose of determining shareholders entitled to vote at any meeting of shareholders. The record date must not precede the date
on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the
Business Corporations Act, by more than four months. If no record date is set, the record date is 5 p.m. on the day immediately
preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

 

		10.8	Failure to Give Notice and Waiver of Notice

 

The accidental omission to send notice of any
meeting to, or the non-receipt of any notice by, any of the persons entitled to notice does not invalidate any proceedings at that meeting.
Any person entitled to notice of a meeting of shareholders may, in writing or otherwise, waive or reduce the period of notice of such
meeting.

 

		10.9	Notice of Special Business at Meetings of Shareholders

 

If a meeting of shareholders is to consider special
business within the meaning of Article 11.1, the notice of meeting must:

 

		(1)	state the general nature of the special business; and

 

    - 10 - 

     

    

 

		(2)	if the special business includes considering, approving, ratifying, adopting or authorizing any document
or the signing of or giving of effect to any document, have attached to it a copy of the document or state that a copy of the document
will be available for inspection by shareholders:

 

		(a)	at the Company’s records office, or at such other reasonably accessible location in British Columbia
as is specified in the notice; and

 

		(b)	during statutory business hours on any one or more specified days before the day set for the holding of
the meeting.

 

		11.	Proceedings at Meetings of Shareholders

 

		11.1	Special Business

 

At a meeting of shareholders, the following business
is special business:

 

		(1)	at a meeting of shareholders that is not an annual general meeting, all business is special business except
business relating to the conduct of or voting at the meeting;

 

		(2)	at an annual general meeting, all business is special business except for the following:

 

		(a)	business relating to the conduct of or voting at the meeting;

 

		(b)	consideration of any financial statements of the Company presented to the meeting;

 

		(c)	consideration of any reports of the directors or auditor;

 

		(d)	the setting or changing of the number of directors;

 

		(e)	the election or appointment of directors;

 

		(f)	the appointment of an auditor;

 

		(g)	the setting of the remuneration of an auditor;

 

		(h)	business arising out of a report of the directors not requiring the passing of a special resolution or
an exceptional resolution;

 

		(i)	any other business which, under these
                                            Articles or the Business Corporations Act, may be transacted at a meeting of shareholders
                                            without prior notice of the business being given to the shareholders.

 

		11.2	Special Majority

 

The majority of votes required for the Company
to pass a special resolution at a meeting of shareholders is two-thirds (2/3) of the votes cast on the resolution.

 

    - 11 - 

     

    

 

		11.3	Quorum

 

Subject to the special rights and restrictions
attached to the shares of any class or series of shares, and Article 11.4, the quorum for the transaction of business at a meeting
of shareholders is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 5% of the issued
shares entitled to be voted at the meeting.

 

		11.4	One Shareholder May Constitute Quorum

 

If there is only one shareholder entitled to vote
at a meeting of shareholders:

 

		(1)	the quorum is one person who is, or who represents by proxy, that shareholder, and

 

		(2)	that shareholder, present in person or by proxy, may constitute the meeting.

 

		11.5	Other Persons May Attend

 

In addition to those person who are entitled to
vote at a meeting of shareholders, the only other persons entitled to be present at the meeting are the directors, the president (if any),
the secretary (if any), the assistant secretary (if any), any lawyer for the Company, the auditor of the Company and any other persons
invited to be present at the meeting by the directors or by the chair of the meeting and any persons entitled or required under the Business
Corporations Act or these Articles to be present at the meeting; but if any of those persons does attend the meeting, that person
is not to be counted in the quorum and is not entitled to vote at the meeting unless that person is a shareholder or proxy holder entitled
to vote at the meeting.

 

		11.6	Requirement of Quorum

 

No business, other than the election of a chair
of the meeting and the adjournment of the meeting, may be transacted at any meeting of shareholders unless a quorum of shareholders entitled
to vote is present at the commencement of the meeting, but such quorum need not be present throughout the meeting.

 

		11.7	Lack of Quorum

 

If, within one-half hour from the time set for
the holding of a meeting of shareholders, a quorum is not present:

 

		(1)	in the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and

 

		(2)	in the case of any other meeting of shareholders, the meeting stands adjourned to the same day in the
next week at the same time and place.

 

		11.8	Lack of Quorum at Succeeding Meeting

 

If, at the meeting to which the meeting referred
to in Article 11.7(2) was adjourned, a quorum is not present within one-half hour from the time set for the holding of the meeting,
the person or persons present and being, or representing by proxy, one or more shareholders entitled to attend and vote at the meeting
constitute a quorum.

 

    - 12 - 

     

    

 

		11.9	Chair

 

The following individual is entitled to preside
as chair at a meeting of shareholders:

 

		(1)	the chair of the board, if any;

 

		(2)	if the chair of the board is absent or unwilling to act as chair of the meeting, the president, if any;
or

 

		(3)	a vice-president, if any.

 

		11.10	Selection of Alternate Chair

 

If, at any meeting of shareholders, there is no
chair of the board or president present within 15 minutes after the time set for holding the meeting, or if the chair of the board and
the president are unwilling to act as chair of the meeting, or if the chair of the board and the president have advised the secretary,
if any, or any director present at the meeting, that they will not be present at the meeting, the directors present must choose one of
their number to be chair of the meeting or if all of the directors present decline to take the chair or fail to so choose or if no director
is present, the shareholders entitled to vote at the meeting who are present in person or by proxy may choose any person present at the
meeting to chair the meeting.

 

		11.11	Adjournments

 

The chair of a meeting of shareholders may, and
if so directed by the meeting must, adjourn the meeting from time to time and from place to place, but no business may be transacted at
any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

 

		11.12	Notice of Adjourned Meeting

 

It is not necessary to give any notice of an adjourned
meeting or of the business to be transacted at an adjourned meeting of shareholders except that, when a meeting is adjourned for 30 days
or more, notice of the adjourned meeting must be given as in the case of the original meeting.

 

		11.13	Decisions by Show of Hands or Poll

 

Subject to the Business Corporations Act, every
motion put to a vote at a meeting of shareholders will be decided on a show of hands unless a poll, before or on the declaration of the
result of the vote by show of hands, is directed by the chair or demanded by at least one shareholder entitled to vote who is present
in person or by proxy.

 

		11.14	Declaration of Result

 

The chair of a meeting of shareholders must declare
to the meeting the decision on every question in accordance with the result of the show of hands or the poll, as the case may be, and
that decision must be entered in the minutes of the meeting. A declaration of the chair that a resolution is carried by the necessary
majority or is defeated is, unless a poll is directed by the chair or demanded under Article 11.13, conclusive evidence without proof
of the number or proportion of the votes recorded in favour of or against the resolution.

 

    - 13 - 

     

    

 

		11.15	Motion Need Not be Seconded

 

No motion proposed at a meeting of shareholders
need be seconded unless the chair of the meeting rules otherwise, and the chair of any meeting of shareholders is entitled to propose
or second a motion.

 

		11.16	Casting Vote

 

In the case of an equality of votes, the chair
of a meeting of shareholders, on a show of hands and on a poll, has a second or casting vote in addition to the vote or votes to which
the chair may be entitled as a shareholder.

 

		11.17	Manner of Taking Poll

 

Subject to Article 11.18, if a poll is duly
demanded at a meeting of shareholders:

 

		(1)	the poll must be taken:

 

		(a)	at the meeting, or within seven days after the date of the meeting, as the chair of the meeting directs;
and

 

		(b)	in the manner, at the time and at the place that the chair of the meeting directs;

 

		(2)	the result of the poll is deemed to be the decision of the meeting
at which the poll is demanded; and

 

		(3)	the demand for the poll may be withdrawn by the person who demanded
it.

 

		11.18	Demand for Poll on Adjournment

 

A poll demanded at a meeting of shareholders on
a question of adjournment must be taken immediately at the meeting.

 

		11.19	Chair Must Resolve Dispute

 

In the case of any dispute as to the admission
or rejection of a vote given on a poll, the chair of the meeting must determine the dispute, and his or her determination made in good
faith is final and conclusive.

 

		11.20	Casting of Votes

 

On a poll, a shareholder entitled to more than
one vote need not cast all the votes in the same way.

 

		11.21	No Demand for Poll on Election of Chair

 

No poll may be demanded in respect of the vote
by which a chair of a meeting of shareholders is elected.

 

    - 14 - 

     

    

 

		11.22	Demand for Poll Not to Prevent Continuance of Meeting

 

The demand for a poll at a meeting of shareholders
does not, unless the chair of the meeting so rules, prevent the continuation of a meeting for the transaction of any business other than
the question on which a poll has been demanded.

 

		11.23	Retention of Ballots and Proxies

 

The Company must, for at least three months after
a meeting of shareholders, keep each ballot cast on a poll and each proxy voted at the meeting, and, during that period, make them available
for inspection during normal business hours by any shareholder or proxyholder entitled to vote at the meeting. At the end of such three
month period, the Company may destroy such ballots and proxies.

 

		12.	Votes of Shareholders

 

		12.1	Number of Votes by Shareholder or by Shares

 

Subject to any special rights or restrictions
attached to any shares and to the restrictions imposed on joint shareholders under Article 12.3:

 

		(1)	on a vote by show of hands, every person present who is a shareholder or proxy holder and entitled to
vote on the matter has one vote; and

 

		(2)	on a poll, every shareholder entitled to vote on the matter has one vote in respect of each share entitled
to be voted on the matter and held by that shareholder and may exercise that vote either in person or by proxy.

 

		12.2	Votes of Persons in Representative Capacity

 

A person who is not a shareholder may vote at
a meeting of shareholders, whether on a show of hands or on a poll, and may appoint a proxy holder to act at the meeting, if, before doing
so, the person satisfies the chair of the meeting, or the directors, that the person is a legal personal representative or a trustee in
bankruptcy for a shareholder who is entitled to vote at the meeting.

 

		12.3	Votes by Joint Holders

 

If there are joint shareholders registered in
respect of any share:

 

		(1)	any one of the joint shareholders may vote at any meeting, either personally or by proxy, in respect of
the share as if that joint shareholder were solely entitled to it; or

 

		(2)	if more than one of the joint shareholders is present at any meeting, personally or by proxy, and more
than one of them votes in respect of that share, then only the vote of the joint shareholder present whose name stands first on the central
securities register in respect of the share will be counted.

 

		12.4	Legal Personal Representatives as Joint Shareholders

 

Two or more legal personal representatives of
a shareholder in whose sole name any share is registered are, for the purposes of Article 12.3, deemed to be joint shareholders.

 

    - 15 - 

     

    

 

		12.5	Representative of a Corporate Shareholder

 

If a corporation, that is not a subsidiary of
the Company, is a shareholder, that corporation may appoint a person to act as its representative at any meeting of shareholders of the
Company, and:

 

		(1)	for that purpose, the instrument appointing a representative must:

 

		(a)	be received at the registered office of the Company or at any other place specified, in the notice calling
the meeting, for the receipt of proxies, at least the number of business days specified in the notice for the receipt of proxies, or if
no number of days is specified, two business days before the day set for the holding of the meeting or any adjourned meeting; or

 

		(b)	be provided, at the meeting or any adjourned meeting, to the chair of the meeting or adjourned meeting
or to a person designated by the chair of the meeting or adjourned meeting;

 

		(2)	if a representative is appointed under this Article 12.5:

 

		(a)	the representative is entitled to exercise in respect of and at that meeting the same rights on behalf
of the corporation that the representative represents as that corporation could exercise if it were a shareholder who is an individual,
including, without limitation, the right to appoint a proxy holder; and

 

		(b)	the representative, if present at the meeting, is to be counted for the purpose of forming a quorum and
is deemed to be a shareholder present in person at the meeting.

 

Evidence of the appointment of any such representative
may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.

 

		12.6	When Proxy Holder Need Not Be Shareholder

 

A person must not be appointed as a proxy holder
unless the person is a shareholder, although a person who is not a shareholder may be appointed as a proxy holder if:

 

		(1)	the person appointing the proxy holder is a corporation or a representative of a corporation appointed
under Article 12.5;

 

		(2)	the Company has at the time of the meeting for which the proxy holder is to be appointed only one shareholder
entitled to vote at the meeting;

 

		(3)	the shareholders present in person or by proxy at and entitled to vote at the meeting for which the proxy
holder is to be appointed, by a resolution on which the proxy holder is not entitled to vote but in respect of which the proxy holder
is to be counted in the quorum, permit the proxy holder to attend and vote at the meeting; or

 

		(4)	the Company is a public company, or is a pre-existing reporting company which has the Statutory Reporting
Company Provisions as part of these Articles or to which the Statutory Reporting Company Provisions apply.

 

    - 16 - 

     

    

 

		12.7	Proxy Provisions Do Not Apply to All Companies

 

If and for so long as the Company is a public
company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the
Statutory Reporting Company Provisions apply, Articles 12.8 to 12.15 apply only insofar as they are not inconsistent with any Canadian
securities legislation applicable to the Company or any U.S. securities legislation applicable to the Company or any rules of an
exchange on which securities of the Company are listed.

 

		12.8	Appointment of Proxy Holders

 

Every shareholder of the Company, including a
corporation that is a shareholder but not a subsidiary of the Company, entitled to vote at a meeting of shareholders of the Company may,
by proxy, appoint one or more (but not more than five) proxy holders to attend and act at the meeting in the manner, to the extent and
with the powers conferred by the proxy.

 

		12.9	Alternate Proxy Holders

 

A shareholder may appoint one or more alternate
proxy holders to act in the place of an absent proxy holder.

 

		12.10	Deposit of Proxy

 

A proxy for a meeting of shareholders must:

 

		(1)	be received at the registered office of the Company or at any other place specified, in the notice calling
the meeting, for the receipt of proxies, at least the number of business days specified in the notice, or if no number of days is specified,
two business days before the day set for the holding of the meeting or any adjourned meeting; or

 

		(2)	unless the notice provides otherwise, be provided, at the meeting, to the chair of the meeting or to a
person designated by the chair of the meeting or adjourned meeting.

 

A proxy may be sent to the Company by written
instrument, fax or any other method of transmitting legibly recorded messages.

 

		12.11	Validity of Proxy Vote

 

A vote given in accordance with the terms of a
proxy is valid notwithstanding the death or incapacity of the shareholder giving the proxy and despite the revocation of the proxy or
the revocation of the authority under which the proxy is given, unless notice in writing of that death, incapacity or revocation is received:

 

		(1)	at the registered office of the Company, at any time up to and including the last business day before
the day set for the holding of the meeting at which the proxy is to be used; or

 

		(2)	at the meeting or any adjourned meeting, by the chair of the meeting or adjourned meeting, before any
vote in respect of which the proxy has been given has been taken.

 

    - 17 - 

     

    

 

		12.12	Form of Proxy

 

A proxy, whether for a specified meeting or otherwise,
must be either in the following form any other form approved by the directors or the chair of the meeting:

 

[name of company] 

(the “Company”)

 

The undersigned, being a shareholder
of the Company, hereby appoints [name] or, failing that person, [name], as proxy holder for the undersigned to attend, act
and vote for and on behalf of the undersigned at the meeting of shareholders of the Company to be held on [month, day, year] and
at any adjournment of that meeting.

 

Number of shares in respect of which
this proxy is given (if no number is specified, then this proxy if given in respect of all shares registered in the name of the shareholder):                                                                                

 

	 	Signed [month, day, year]
	 	 
	 	[Signature of shareholder]
	 	 
	 	[Name of shareholder—printed]

 

		12.13	Revocation of Proxy

 

Subject to Article 12.14, every proxy may
be revoked by an instrument in writing that is:

 

		(1)	received at the registered office of the Company at any time up to and including the last business day
before the day set for the holding of the meeting or any adjourned meeting at which the proxy is to be used; or

 

		(2)	provided, at the meeting or any adjourned meeting, by the chair of the meeting or adjourned meeting, before
any vote in respect of which the proxy has been taken.

 

		12.14	Revocation of Proxy Must Be Signed

 

An instrument referred to in Article 12.13
must be signed as follows:

 

		(1)	if the shareholder for whom the proxy holder is appointed is an individual, the instrument must be signed
by the shareholder or his or her legal personal representative or trustee in bankruptcy;

 

		(2)	if the shareholder for whom the proxy holder is appointed is a corporation, the instrument must be signed
by the corporation or by a representative appointed for the corporation under Article 12.5.

 

		12.15	Chair May Determine Validity of Proxy

 

The chair of any meeting of shareholders may
determine whether or not a proxy deposited for use at the meeting, which may not strictly comply with the requirements of this
Part 12 as to form, execution, accompanying documentation, time
of filing or otherwise, shall be valid for use at such meeting and any such determination made in good faith shall be final, conclusive
and binding upon such meeting.

 

    - 18 - 

     

    

 

		12.16	Production of Evidence of Authority to Vote

 

The chair of any meeting of shareholders may,
but need not, inquire into the authority of any person to vote at the meeting and may, but need not, demand from that person production
of evidence as to the existence of the authority to vote.

 

		13.	Directors

 

		13.1	First Directors; Number of Directors

 

The first directors are the persons designated
as directors of the Company in the Notice of Articles that applies to the Company when it is recognized under the Business Corporations
Act. The number of directors, excluding additional directors appointed under Article 14.8, is set at:

 

		(1)	subject to paragraphs (2) and (3), the number of directors
that is equal to the number of the Company’s first directors;

 

		(2)	if the Company is a public company, the greater of three and
the most recently set of:

 

		(a)	the number of directors set by ordinary resolution (whether or not previous notice of the resolution was
given); and

 

		(b)	the number of directors set under Article 14.4;

 

		(3)	if the Company is not a public company, the most recently set
of:

 

		(a)	the number of directors set by ordinary resolution (whether or not previous notice of the resolution was
given); and

 

		(b)	the number of directors set under Article 14.4.

 

		13.2	Change in Number of Directors

 

If the number of directors is set under Articles
13.1(2)(a) or 13.1(3)(a), subject to Article 14.1:

 

		(1)	the shareholders may elect or appoint the directors needed to fill any vacancies in the board of directors
up to that number;

 

		(2)	if the shareholders do not elect or appoint the directors needed to fill any vacancies in the board of
directors up to that number contemporaneously with the setting of that number, then the directors may appoint, subject to Article 14.8,
or the shareholders may elect or appoint, directors to fill those vacancies.

 

		13.3	Directors’ Acts Valid Despite Vacancy

 

An act or proceeding of the directors is not invalid
merely because fewer than the number of directors set or otherwise required under these Articles is in office.

 

    - 19 - 

     

    

 

		13.4	Qualifications of Directors

 

A director is not required to hold a share in
the capital of the Company as qualification for his or her office but must be qualified as required by the Business Corporations Act
to become, act or continue to act as a director.

 

		13.5	Remuneration of Directors

 

The directors are entitled to the remuneration
for acting as directors, if any, as the directors may from time to time determine. If the directors so decide, the remuneration of the
directors, if any, will be determined by the shareholders. That remuneration may be in addition to any salary or other remuneration paid
to any officer or employee of the Company as such, who is also a director.

 

		13.6	Reimbursement of Expenses of Directors

 

The Company must reimburse each director for
the reasonable expenses that he or she may incur in and about the business of the Company.

 

		13.7	Special Remuneration for Directors

 

If any director performs any professional or other
services for the Company that in the opinion of the directors are outside the ordinary duties of a director, or if any director is otherwise
specially occupied in or about the Company’s business, he or she may be paid remuneration fixed by the directors, or, at the option
of that director, fixed by ordinary resolution, and such remuneration may be either in addition to, or in substitution for, any other
remuneration that he or she may be entitled to receive.

 

		13.8	Gratuity, Pension or Allowance on Retirement of Director

 

Unless otherwise determined by ordinary resolution,
the directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any director who has held any salaried
office or place of profit with the Company or to his or her spouse or dependants and may make contributions to any fund and pay premiums
for the purchase or provision of any such gratuity, pension or allowance.

 

		14.	Election and Removal of Directors

 

		14.1	Election at Annual General Meeting

 

		(1)	At each annual general meeting of the Company all the directors whose term of office expire at such annual
general meeting shall cease to hold office immediately before the election of directors at such annual general meeting and the shareholders
entitled to vote thereat shall elect to the board of directors, directors as otherwise permitted by any securities legislation in any
province or territory of Canada or in the federal jurisdiction of the United States or in any states of the United States that is applicable
to the Company and all regulations and rules made and promulgated under that legislation and all administrative policy statements,
blanket orders and rulings, notices and other administrative directions issued by securities commissions or similar authorities appointed
under that legislation as set out below. A retiring director shall be eligible for re-election;

 

    - 20  -

     

    

 

		(2)	Each director may be elected for a term of office of one or more years of office as may be specified by
ordinary resolution at the time he is elected. In the absence of any such ordinary resolution, a director’s term of office shall
be one year of office. No director shall be elected for a term of office exceeding five years of office. The shareholders may, by resolution
of not less than 3/4 of the votes cast on the resolution vary the term of office of any director; and

  

		(3)	A director elected or appointed to fill a vacancy shall be elected or appointed for a term expiring immediately
before the election of directors at the annual general meeting of the Company when the term of the director whose position he is filling
would expire.

 

		14.2	Consent to be a Director

 

No election, appointment or designation of an
individual as a director is valid unless:

 

		(1)	that individual consents to be a director in the manner provided for in the Business Corporations Act;

 

		(2)	that individual is elected or appointed at a meeting at which the individual is present and the individual
does not refuse, at the meeting, to be a director; or

 

		(3)	with respect to first directors, the designation is otherwise valid under the Business Corporations
Act.

 

		14.3	Failure to Elect or Appoint Directors

 

If:

  

		(1)	the Company fails to hold an annual general meeting, and all the shareholders who are entitled to vote
at an annual general meeting fail to pass the unanimous resolution contemplated by Article 10.2, on or before the date by which the
annual general meeting is required to be held under the Business Corporations Act; or

 

		(2)	the shareholders fail, at the annual general meeting or in the unanimous resolution contemplated by Article 10.2,
to elect or appoint any directors;

 

then each director then in office continues to
hold office until the earlier of:

 

		(3)	the date on which his or her successor is elected or appointed; and

 

		(4)	the date on which he or she otherwise ceases to hold office under the Business Corporations Act
or these Articles.

 

		14.4	Places of Retiring Directors Not Filled

 

If, at any meeting of shareholders at which
there should be an election of directors, the places of any of the retiring directors are not filled by that election, those
retiring directors who are not re-elected and who are asked by the newly elected directors to continue in office will, if willing to
do so, continue in office to complete the number of directors for the time being set pursuant to these Articles until further new
directors are elected at a meeting of shareholders convened for that purpose. If any such election or continuance of directors does
not result in the election or continuance of the number of directors for the time being set pursuant to these Articles, the number
of directors of the Company is deemed to be set at the number of directors actually elected or continued in office.

 

    - 21  -

     

    

 

		14.5	Directors May Fill Casual Vacancies

 

Any casual vacancy occurring in the board of directors
may be filled by the directors.

 

		14.6	Remaining Directors’ Power to Act

  

The directors may act notwithstanding any vacancy
in the board of directors, but if the Company has fewer directors in office than the number set pursuant to these Articles as the quorum
of directors, the directors may only act for the purpose of appointing directors up to that number or of summoning a meeting of shareholders
for the purpose of filling any vacancies on the board of directors or, subject to the Business Corporations Act, for any other
purpose.

 

		14.7	Shareholders May Fill Vacancies

 

If the Company has no directors or fewer directors
in office than the number set pursuant to these Articles as the quorum of directors, the shareholders may elect or appoint directors to
fill any vacancies on the board of directors.

 

		14.8	Additional Directors

 

Notwithstanding Articles 13.1 and 13.2, between
annual general meetings or unanimous resolutions contemplated by Article 10.2, the directors may appoint one or more additional directors,
but the number of additional directors appointed under this Article 14.8 must not at any time exceed one-third of the number of the
current directors who were elected or appointed as directors other than under this Article 14.8.

 

Any director so appointed ceases to hold office
immediately before the next election or appointment of directors under Article 14.1(1), but is eligible for re-election or re-appointment.

 

		14.9	Ceasing to be a Director

 

A director ceases to be a director when:

 

		(1)	the term of office of the director expires;

 

		(2)	the director dies;

 

		(3)	the director resigns as a director by notice in writing provided
to the Company or a lawyer for the Company; or

 

		(4)	the director is removed from office pursuant to Articles 14.10
or 14.11.

 

		14.10	Removal of Director by Shareholders

 

The Company may remove any director before the
expiration of his or her term of office by a resolution of not less than 3/4 of the votes cast on such resolution. In that event, the
shareholders may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy.

 

If the shareholders do not elect or appoint a
director to fill the resulting vacancy contemporaneously with the removal, then the directors may appoint or the shareholders may elect,
or appoint by ordinary resolution, a director to fill that vacancy.

  

    - 22  -

     

    

 

		14.11	Removal of Director by Directors

 

The directors may remove any director before the
expiration of his or her term of office if the director is convicted of an indictable offence, or if the director ceases to be qualified
to act as a director of a company and does not promptly resign, and the directors may appoint a director to fill the resulting vacancy.

 

		14.12	Nomination of Directors

 

		(1)	Only persons who are nominated in accordance with the following procedures shall be eligible for election
as directors of the Company. Nominations of persons for election to the board of directors of the Company may be made at any annual meeting
of shareholders, or at any special meeting of shareholders if one of the purposes for which the special meeting was called was the election
of directors:

 

		(a)	by or at the direction of the board, including pursuant to a notice of meeting;

 

		(b)	by or at the direction or request of one or more shareholders pursuant to a “proposal” made
in accordance with Division 7 of Part 5 of the Business Corporations Act (British Columbia) (the “Act”),
or a requisition of the shareholders made in accordance with section 167 of the Act; or

 

		(c)	by any person (a “Nominating Shareholder”): (i) who, at the close of business
on the date of the giving by the Nominating Shareholder of the notice provided for below in this Article 14.12 and at the close of
business on the record date for notice of such meeting, is entered in the securities register of the Company as a holder of one or more
shares carrying the right to vote at such meeting or who beneficially owns shares that are entitled to be voted at such meeting; and (ii) who
complies with the notice procedures set forth below in this Article 14.12.

 

		(2)	In addition to any other requirements under applicable laws, for a nomination to be made by a Nominating
Shareholder, the Nominating Shareholder must have given notice thereof that is both timely (in accordance with paragraph (3) below)
and in proper written form (in accordance with paragraph (4) below) to the Corporate Secretary of the Company at the head office
of the Company.

 

		(3)	To be timely, a Nominating Shareholder’s notice to the
Corporate Secretary of the Company must be made:

 

		(a)	in the case of an annual meeting of shareholders,
                                            not less than 30 nor more than 65 days prior to the date of the annual meeting of shareholders;
                                            provided, however, that in the event that the annual meeting of shareholders is to be held
                                            on a date that is less than 50 days after the date (the “Notice Date”)
                                            on which the first public announcement of the date of the annual meeting was made, notice
                                            by the Nominating Shareholder may be made not later than the close of business on the 10th
                                            day following the Notice Date; and

 

    - 23  -

     

    

 

		(b)	in the case of a special meeting (which is not also an annual meeting) of shareholders called for the
purpose of electing directors (whether or not called for other purposes), not later than the close of business on the 15th
day following the day on which the first public announcement of the date of the special meeting of shareholders was made.

 

The time periods for the giving of a
Nominating Shareholder’s notice set forth above shall in all cases be determined based on the original date of the applicable annual
meeting or special meeting of shareholders, and in no event shall any adjournment or postponement of a meeting of shareholders or the
announcement thereof commence a new time period for the giving of such notice.

 

	(4)	To be in proper written form, a Nominating Shareholder’s notice to the Corporate Secretary of the
Company must set forth:

 

		(a)	as to each person whom the Nominating Shareholder proposes to nominate for election as a director: (i) the
name, age, business address and residential address of the person; (ii) the present principal occupation, business or employment
of the person within the preceding 5 years, as well as the name and principal business of any company in which such employment is carried
on; (iii) the citizenship of such person; (iv) the class or series and number of shares in the capital of the Company which
are controlled or which are owned beneficially or of record by the person as of the record date for the meeting of shareholders (if such
date shall then have been made publicly available and shall have occurred) and as of the date of such notice; (v) confirmation that
the person meets the qualifications of directors set out in the Act; and (vi) any other information relating to the person that would
be required to be disclosed in a dissident’s proxy circular in connection with solicitations of proxies for election of directors
pursuant to the Act and Applicable Securities Laws (as defined below); and

 

		(b)	as to the Nominating Shareholder giving the notice, full particulars regarding any proxy, contract, agreement,
arrangement or understanding pursuant to which such Nominating Shareholder has a right to vote or direct the voting of any shares of the
Company and any other information relating to such Nominating Shareholder that would be required to be made in a dissident’s proxy
circular in connection with solicitations of proxies for election of directors pursuant to the Act and Applicable Securities Laws (as
defined below).

  

The Company may require any proposed
nominee to furnish such other information as may reasonably be required by the Company to determine the eligibility of such proposed nominee
to serve as an independent director of the Company or that could be material to a reasonable shareholder’s understanding of the
independence, or lack thereof, of such proposed nominee.

 

		(5)	No person shall be eligible for election as a director of the Company unless nominated in accordance with
the provisions of this Article 14.12; provided, however, that nothing in this Article 14.12 shall be deemed to preclude discussion
by a shareholder (as distinct from the nomination of directors) at a meeting of shareholders of any matter that is properly before such
meeting pursuant to the provisions of the Act or the discretion of the Chairman. The Chairman of the meeting shall have the power and
duty to determine whether a nomination was made in accordance
with the procedures set forth in the foregoing provisions and, if any proposed nomination is not in compliance with such foregoing provisions,
to declare that such defective nomination shall be disregarded.

 

    - 24  -

     

    

 

		(6)	For purposes of this Article 14.12:

  

		(a)	“Applicable Securities Laws” means the applicable securities legislation of each province
and territory of Canada in which the Company is a reporting issuer, as amended from time to time, the rules, regulations and forms made
or promulgated under any such statute and the published national instruments, multilateral instruments, policies, bulletins and notices
of the securities commission and similar regulatory authority of each province and territory of Canada; and

 

		(b)	“public announcement” shall mean disclosure in a press release reported by a national
news service in Canada, or in a document publicly filed by the Company under its profile on the System of Electronic Document Analysis
and Retrieval at www.sedar.com.

 

		(7)	Notwithstanding any other provision of this Article 14.12, notice given to the Corporate Secretary
of the Company pursuant to this Article 14.12 may only be given by personal delivery, facsimile transmission or by email (at such
email address as may be stipulated from time to time by the Corporate Secretary of the Company for purposes of this notice), and shall
be deemed to have been given and made only at the time it is served by personal delivery to the Corporate Secretary at the address of
the head office of the Company, email (at the address as aforesaid) or sent by facsimile transmission (provided that receipt of confirmation
of such transmission has been received); provided that if such delivery or electronic communication is made on a day which is a not a
business day or later than 5:00 p.m. (Vancouver time) on a day which is a business day, then such delivery or electronic communication
shall be deemed to have been made on the next following day that is a business day.

 

		(8)	Notwithstanding the foregoing, the board may, in its sole discretion,
waive any requirement in this Article 14.12.

 

		15.	Alternate Directors

 

		15.1	Appointment of Alternate Director

  

Any director (an “appointor”)
may by notice in writing received by the Company appoint any person (an “appointee”) who is qualified to act as a director
to be his or her alternate to act in his or her place at meetings of the directors or committees of the directors at which the appointor
is not present unless (in the case of an appointee who is not a director) the directors have reasonably disapproved the appointment of
such person as an alternate director and have given notice to that effect to his or her appointor within a reasonable time after the notice
of appointment is received by the Company. Every alternate director shall have a direct and personal duty to the Company arising from
his alternate directorship, independent of the duties of the director who appointed him.

 

    - 25  -

     

    

 

		15.2	Notice of Meetings

 

Every alternate director so appointed is entitled
to notice of meetings of the directors and of committees of the directors of which his or her appointor is a member and to attend and
vote as a director at any such meetings at which his or her appointor is not present.

 

		15.3	Alternate for More Than One Director Attending Meetings

 

A person may be appointed as an alternate director
by more than one director, and an alternate director:

 

		(1)	will be counted in determining the quorum for a meeting of directors once for each of his or her appointors
and, in the case of an appointee who is also a director, once more in that capacity;

  

		(2)	has a separate vote at a meeting of directors for each of his or her appointors and, in the case of an
appointee who is also a director, an additional vote in that capacity;

 

		(3)	will be counted in determining the quorum for a meeting of a committee of directors once for each of his
or her appointors who is a member of that committee and, in the case of an appointee who is also a member of that committee as a director,
once more in that capacity;

 

		(4)	has a separate vote at a meeting of a committee of directors for each of his or her appointors who is
a member of that committee and, in the case of an appointee who is also a member of that committee as a director, an additional vote in
that capacity.

 

		15.4	Consent Resolutions

 

Every alternate director, if authorized by the
notice appointing him or her, may sign in place of his or her appointor any resolutions to be consented to in writing.

  

		15.5	Alternate Director Not an Agent

 

Every alternate director is deemed not to be the
agent of his or her appointor and shall be deemed not to have any conflict arising out of any interest, property or office held by the
appointor. An alternate director shall be deemed to be a director for all purposes of these Articles, with full power to act as a director,
subject to any limitations in the instrument appointing him, and an alternate director shall be entitled to all of the indemnities and
similar protections afforded directors by the Business Corporations Act and under these Articles. A director shall have no liability
arising out of any act or omission by his alternate director to which the appointor was not a party, nor shall an alternate director have
liability for any such act or omission by the appointor. Without limiting the foregoing, no duty to account to the Company shall be imposed
upon an alternate director merely because he voted in respect of a contract or transaction in which the appointor was interested or which
the appointor failed to disclose, nor shall any such duty be imposed upon an appointor merely because he voted in respect of a contract
or transaction in which his alternate director was interested or which such alternate director failed to disclose.

 

    - 26  -

     

    

 

		15.6	Revocation of Appointment of Alternate Director

 

An appointor may at any time, by notice in writing
received by the Company, revoke the appointment of an alternate director appointed by him or her.

 

		15.7	Ceasing to be an Alternate Director

 

The appointment of an alternate director ceases
when:

 

		(1)	his or her appointor ceases to be a director and is not promptly re-elected or re-appointed;

 

		(2)	the alternate director dies;

 

		(3)	the alternate director resigns as an alternate director by notice in writing provided to the Company or
a lawyer for the Company;

 

		(4)	the alternate director ceases to be qualified to act as a director; or

 

		(5)	his or her appointor revokes the appointment of the alternate director.

 

		15.8	Remuneration and Expenses of Alternate Director

 

The Company may reimburse an alternate director
for the reasonable expenses that would be properly reimbursed if he or she were a director, and the alternate director is entitled to
receive from the Company such proportion, if any, of the remuneration otherwise payable to the appointor as the appointor may from time
to time direct.

 

		16.	Powers and Duties of Directors

 

		16.1	Powers of Management

 

The directors must, subject to the Business
Corporations Act and these Articles, manage or supervise the management of the business and affairs of the Company and have the authority
to exercise all such powers of the Company as are not, by the Business Corporations Act or by these Articles, required to be exercised
by the shareholders of the Company.

 

		16.2	Appointment of Attorney of Company

 

The directors may from time to time, by power
of attorney or other instrument, under seal if so required by law, appoint any person to be the attorney of the Company for such purposes,
and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the directors under these Articles
and excepting the power to fill vacancies in the board of directors, to remove a director, to change the membership of, or fill vacancies
in, any committee of the directors, to appoint or remove officers appointed by the directors and to declare dividends) and for such period,
and with such remuneration and subject to such conditions as the directors may think fit. Any such power of attorney may contain such
provisions for the protection or convenience of persons dealing with such attorney as the directors think fit. Any such attorney may be
authorized by the directors to sub-delegate all or any of the powers, authorities and discretions for the time being vested in him or
her.

 

     - 27 - 

     

    

 

		16.3	Remuneration of Auditor

 

The directors may set the remuneration of the
auditor of the Company.

 

		17.	Interests of Directors and Officers

 

		17.1	Obligation to Account for Profits

 

A director or senior officer who holds a disclosable
interest (as that term is used in the Business Corporations Act) in a contract or transaction into which the Company has entered
or proposes to enter is liable to account to the Company for any profit that accrues to the director or senior officer under or as a result
of the contract or transaction only if and to the extent provided in the Business Corporations Act.

 

		17.2	Restrictions on Voting by Reason of Interest

 

A director who holds a disclosable interest in
a contract or transaction into which the Company has entered or proposes to enter is not entitled to vote on any directors’ resolution
to approve that contract or transaction, unless all the directors have a disclosable interest in that contract or transaction, in which
case any or all of those directors may vote on such resolution.

 

		17.3	Interested Director Counted in Quorum

 

A director who holds a disclosable interest in
a contract or transaction into which the Company has entered or proposes to enter and who is present at the meeting of directors at which
the contract or transaction is considered for approval may be counted in the quorum at the meeting whether or not the director votes on
any or all of the resolutions considered at the meeting.

 

		17.4	Disclosure of Conflict of Interest or Property

 

A director or senior officer who holds any office
or possesses any property, right or interest that could result, directly or indirectly, in the creation of a duty or interest that materially
conflicts with that individual’s duty or interest as a director or senior officer, must disclose the nature and extent of the conflict
as required by the Business Corporations Act.

 

		17.5	Director Holding Other Office in the Company

 

A director may hold any office or place of profit
with the Company, other than the office of auditor of the Company, in addition to his or her office of director for the period and on
the terms (as to remuneration or otherwise) that the directors may determine.

 

		17.6	No Disqualification

 

No director or intended director is disqualified
by his or her office from contracting with the Company either with regard to the holding of any office or place of profit the director
holds with the Company or as vendor, purchaser or otherwise, and no contract or transaction entered into by or on behalf of the Company
in which a director is in any way interested is liable to be voided for that reason.

 

     - 28 - 

     

    

 

		17.7	Professional Services by Director or Officer

 

Subject to the Business Corporations Act,
a director or officer, or any person in which a director or officer has an interest, may act in a professional capacity for the Company,
except as auditor of the Company, and the director or officer or such person is entitled to remuneration for professional services as
if that director or officer were not a director or officer.

 

		17.8	Director or Officer in Other Corporations

 

A director or officer may be or become a director,
officer or employee of, or otherwise interested in, any person in which the Company may be interested as a shareholder or otherwise, and,
subject to the Business Corporations Act, the director or officer is not accountable to the Company for any remuneration or other
benefits received by him or her as director, officer or employee of, or from his or her interest in, such other person.

 

		18.	Proceedings of Directors

 

		18.1	Meetings of Directors

 

The directors may meet together for the conduct
of business, adjourn and otherwise regulate their meetings as they think fit, and meetings of the directors held at regular intervals
may be held at the place, at the time and on the notice, if any, as the directors may from time to time determine.

 

		18.2	Voting at Meetings

 

Questions arising at any meeting of directors
are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the meeting does not have a second or
casting vote.

 

		18.3	Chair of Meetings

 

The following individual is entitled to preside
as chair at a meeting of directors:

 

		(1)	the chair of the board, if any;

 

		(2)	in the absence of the chair of the board, the president, if any, if the president is a director; or

 

		(3)	any other director chosen by the directors if:

 

		(a)	neither the chair of the board nor the president, if a director, is present at the meeting within 15 minutes
after the time set for holding the meeting;

 

		(b)	neither the chair of the board nor the president, if a director, is willing to chair the meeting; or

 

		(c)	the chair of the board and the president, if a director, have advised the secretary, if any, or any other
director, that they will not be present at the meeting.

 

     - 29 - 

     

    

 

		18.4	Meetings by Telephone or Other Communications Medium

 

A director may participate in a meeting of the
directors or of any committee of the directors in person or by telephone if all directors participating in the meeting, whether in person
or by telephone or other communications medium, are able to communicate with each other. A director may participate in a meeting of the
directors or of any committee of the directors by a communications medium other than telephone if all directors participating in the meeting,
whether in person or by telephone or other communications medium, are able to communicate with each other and if all directors who wish
to participate in the meeting agree to such participation. A director who participates in a meeting in a manner contemplated by this Article 18.4
is deemed for all purposes of the Business Corporations Act and these Articles to be present at the meeting and to have agreed
to participate in that manner.

 

		18.5	Calling of Meetings

 

A director may, and the secretary or an assistant
secretary of the Company, if any, on the request of a director must, call a meeting of the directors at any time.

 

		18.6	Notice of Meetings

 

Other than for meetings held at regular intervals
as determined by the directors pursuant to Article 18.1, or as provided in Article 18.7, reasonable notice of each meeting of
the directors, specifying the place, day and time of that meeting must be given to each of the directors and the alternate directors by
any method set out in Article 24.1 or orally or by telephone.

 

		18.7	When Notice Not Required

 

It is not necessary to give notice of a meeting
of the directors to a director or an alternate director if:

 

		(1)	the meeting is to be held immediately following a meeting of shareholders at which that director was elected
or appointed, or is the meeting of the directors at which that director is appointed;

 

		(2)	the director or alternate director, as the case may be, has waived notice of the meeting; or

 

		(3)	the director or alternate director, as the case may be, is not, at the time, in the province of British
Columbia.

 

		18.8	Meeting Valid Despite Failure to Give Notice

 

The accidental omission to give notice of any
meeting of directors to, or the non-receipt of any notice by, any director or alternate director, does not invalidate any proceedings
at that meeting.

 

		18.9	Waiver of Notice of Meetings

 

Any director or alternate director may send
to the Company a document signed by him or her waiving notice of any past, present or future meeting or meetings of the directors
and may at any time withdraw that waiver with respect to meetings held after that withdrawal. After sending a waiver with respect to
all future meetings and until that waiver is withdrawn, no notice of any meeting of the directors need be given to that director
and, unless the director otherwise requires by notice in writing to the Company, to his or her alternate director, and all meetings
of the directors so held are deemed not to be improperly called or constituted by reason of notice not having been given to such
director or alternate director.

 

     - 30 - 

     

    

 

		18.10	Quorum

 

The quorum necessary for the transaction of the
business of the directors may be set by the directors and, if not so set, is deemed to be set at two directors or, if the number of directors
is set at one, is deemed to be set at one director, and that director may constitute a meeting.

 

		18.11	Validity of Acts Where Appointment Defective

 

Subject to the Business Corporations Act,
an act of a director or officer is not invalid merely because of an irregularity in the election or appointment or a defect in the qualification
of that director or officer.

 

		18.12	Consent Resolutions in Writing

 

A resolution of the directors or of any committee
of the directors may be passed without a meeting:

 

		(1)	in all cases, if each of the directors entitled to vote on the resolution consents to it in writing; or

 

		(2)	in the case of a resolution to approve a contract or transaction in respect of which a director has disclosed
that he or she has or may have a disclosable interest, if each of the other directors who are entitled to vote on the resolution consent
to it in writing.

 

A consent in writing under this Article may
be by signed document, fax, email or any other method of transmitting legibly recorded messages. A consent in writing may be in two or
more counterparts which together are deemed to constitute one consent in writing. A resolution of the directors or of any committee of
the directors passed in accordance with this Article 18.12 is effective on the date stated in the consent in writing or on the latest
date stated on any counterpart and is deemed to be a proceeding at a meeting of directors or of the committee of the directors and to
be as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors that satisfies all
the requirements of the Business Corporations Act and all the requirements of these Articles relating to meetings of the directors or
of a committee of the directors.

 

		19.	Executive and Other Committees

 

		19.1	Appointment and Powers of Executive Committee

 

The directors may, by resolution, appoint an executive
committee consisting of the director or directors that they consider appropriate, and this committee has, during the intervals between
meetings of the board of directors, all of the directors’ powers, except:

 

		(1)	the power to fill vacancies in the board of directors;

 

		(2)	the power to remove a director;

 

     - 31 - 

     

    

 

		(3)	the power to change the membership of, or fill vacancies in,
any committee of the directors; and

 

		(4)	such other powers, if any, as may be set out in the resolution
or any subsequent directors’ resolution.

 

		19.2	Appointment and Powers of Other Committees

 

The directors may, by resolution:

 

		(1)	appoint one or more committees (other than the executive committee) consisting of the director or directors
that they consider appropriate;

 

		(2)	delegate to a committee appointed under paragraph (1) any of the directors’ powers, except:

 

		(a)	the power to fill vacancies in the board of directors;

 

		(b)	the power to remove a director;

 

		(c)	the power to change the membership of, or fill vacancies in, any committee of the directors; and

 

		(d)	the power to appoint or remove officers appointed by the directors; and

 

		(3)	make any delegation referred to in paragraph (2) subject to the conditions set out in the resolution
or any subsequent directors’ resolution.

 

		19.3	Obligations of Committees

 

Any committee appointed under Articles 19.1 or
19.2, in the exercise of the powers delegated to it, must:

 

		(1)	conform to any rules that may from time to time be imposed on it by the directors; and

 

		(2)	report every act or thing done in exercise of those powers at such times as the directors may require.

 

		19.4	Powers of Board

 

The directors may, at any time, with respect to
a committee appointed under Articles 19.1 or 19.2:

 

		(1)	revoke or alter the authority given to the committee, or override a decision made by the committee, except
as to acts done before such revocation, alteration or overriding;

 

		(2)	terminate the appointment of, or change the membership of, the committee; and

 

		(3)	fill vacancies in the committee.

 

     - 32 - 

     

    

 

		19.5	Committee Meetings

 

Subject to Article 19.3(1) and unless
the directors otherwise provide in the resolution appointing the committee or in any subsequent resolution, with respect to a committee
appointed under Articles 19.1 or 19.2:

 

		(1)	the committee may meet and adjourn as it thinks proper;

 

		(2)	the committee may elect a chair of its meetings but, if no chair of a meeting is elected, or if at a meeting
the chair of the meeting is not present within 15 minutes after the time set for holding the meeting, the directors present who are members
of the committee may choose one of their number to chair the meeting;

 

		(3)	a majority of the members of the committee constitutes a quorum of the committee; and

 

		(4)	questions arising at any meeting of the committee are determined by a majority of votes of the members
present, and in case of an equality of votes, the chair of the meeting does not have a second or casting vote.

 

		20.	Officers

 

		20.1	Directors May Appoint Officers

 

The directors may, from time to time, appoint
such officers, if any, as the directors determine and the directors may, at any time, terminate any such appointment.

 

		20.2	Functions, Duties and Powers of Officers

 

The directors may, for each officer:

 

		(1)	determine the functions and duties of the officer;

 

		(2)	entrust to and confer on the officer any of the powers exercisable by the directors on such terms and
conditions and with such restrictions as the directors think fit; and

 

		(3)	revoke, withdraw, alter or vary all or any of the functions, duties and powers of the officer.

 

		20.3	Qualifications

 

No officer may be appointed unless that officer
is qualified in accordance with the Business Corporations Act. One person may hold more than one position as an officer of the
Company. Any person appointed as the chair of the board or as the managing director must be a director. Any other officer need not be
a director.

 

		20.4	Remuneration and Terms of Appointment

 

All appointments of officers are to be made
on the terms and conditions and at the remuneration (whether by way of salary, fee, commission, participation in profits or
otherwise) that the directors think fit and are subject to termination at the pleasure of the directors, and an officer may in
addition to such remuneration be entitled to receive, after he or she ceases to hold such office or leaves the employment of the
Company, a pension or gratuity.

 

     - 33 - 

     

    

 

		21.	Indemnification

 

		21.1	Definitions

  

In this Article 21:

  

		(1)	“eligible penalty” means a judgment, penalty or fine awarded or imposed in, or an amount
paid in settlement of, an eligible proceeding;

  

		(2)	“eligible proceeding” means a legal proceeding or investigative action, whether current,
threatened, pending or completed, in which a director, former director or alternate director of the Company (an “eligible party”)
or any of the heirs and legal personal representatives of the eligible party, by reason of the eligible party being or having been a director
or alternate director of the Company:

  

		(a)	is or may be joined as a party; or

  

		(b)	is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding;

  

		(3)	“expenses” has the meaning set out in the Business
Corporations Act.

  

		21.2	Mandatory Indemnification of Directors and Former Directors

 

Subject to the Business Corporations Act,
the Company must indemnify a director, former director or alternate director of the Company and his or her heirs and legal personal representatives
against all eligible penalties to which such person is or may be liable, and the Company must, after the final disposition of an eligible
proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. Each director and alternate
director is deemed to have contracted with the Company on the terms of the indemnity contained in this Article 21.2.

  

		21.3	Indemnification of Other Persons

 

Subject to any restrictions in the Business
Corporations Act, the Company may indemnify any person.

  

		21.4	Non-Compliance
                                            with Business Corporations Act

  

The failure of a director, alternate director
or officer of the Company to comply with the Business Corporations Act or these Articles does not invalidate any indemnity to which he
or she is entitled under this Part.

  

		21.5	Company May Purchase Insurance

  

The Company may purchase and maintain insurance
for the benefit of any person (or his or her heirs or legal personal representatives) who:

 

		(1)	is or was a director, alternate director, officer, employee or agent of the Company;

 

     - 34 - 

     

    

 

		(2)	is or was a director, alternate director, officer, employee or agent of a corporation at a time when the
corporation is or was an affiliate of the Company;

  

		(3)	at the request of the Company, is or was a director, alternate director, officer, employee or agent of
a corporation or of a partnership, trust, joint venture or other unincorporated entity;

  

		(4)	at the request of the Company, holds or held a position equivalent to that of a director, alternate director
or officer of a partnership, trust, joint venture or other unincorporated entity;

  

against any liability incurred by him or her as
such director, alternate director, officer, employee or agent or person who holds or held such equivalent position.

  

		22.	Dividends

  

		22.1	Payment of Dividends Subject to Special Rights

  

The provisions of this Article 22 are subject
to the rights, if any, of shareholders holding shares with special rights as to dividends.

  

		22.2	Declaration of Dividends

  

Subject to the Business Corporations Act,
the directors may from time to time declare and authorize payment of such dividends as they may deem advisable.

  

		22.3	No Notice Required

  

The directors need not give notice to any shareholder
of any declaration under Article 22.2.

  

		22.4	Record Date

  

The directors may set a date as the record date
for the purpose of determining shareholders entitled to receive payment of a dividend. The record date must not precede the date on which
the dividend is to be paid by more than two months. If no record date is set, the record date is 5 p.m. on the date on which the
directors pass the resolution declaring the dividend.

  

		22.5	Manner of Paying Dividend

  

A resolution declaring a dividend may direct payment
of the dividend wholly or partly by the distribution of specific assets or of fully paid shares or of bonds, debentures or other securities
of the Company, or in any one or more of those ways.

  

		22.6	Settlement of Difficulties

  

If any difficulty arises in regard to a distribution
under Article 22.5, the directors may settle the difficulty as they deem advisable, and, in particular, may:

  

		(1)	set the value for distribution of specific assets;

  

     - 35 - 

     

    

 

		(2)	determine that cash payments in substitution for all or any part of the specific assets to which any shareholders
are entitled may be made to any shareholders on the basis of the value so fixed in order to adjust the rights of all parties; and

 

		(3)	vest any such specific assets in trustees for the persons entitled to the dividend.

  

		22.7	When Dividend Payable

  

Any dividend may be made payable on such date
as is fixed by the directors.

  

		22.8	Dividends to be Paid in Accordance with Number of Shares

  

All dividends on shares of any class or series
of shares must be declared and paid according to the number of such shares held.

  

		22.9	Receipt by Joint Shareholders

  

If several persons are joint shareholders of any
share, any one of them may give an effective receipt for any dividend, bonus or other money payable in respect of the share.

 

		22.10	Dividend Bears No Interest

  

No dividend bears interest against the Company.

  

		22.11	Fractional Dividends

  

If a dividend to which a shareholder is entitled
includes a fraction of the smallest monetary unit of the currency of the dividend, that fraction may be disregarded in making payment
of the dividend and that payment represents full payment of the dividend.

  

		22.12	Payment of Dividends

  

Any dividend or other distribution payable in
cash in respect of shares may be paid by cheque, made payable to the order of the person to whom it is sent, and mailed to the address
of the shareholder, or in the case of joint shareholders, to the address of the joint shareholder who is first named on the central securities
register, or to the person and to the address the shareholder or joint shareholders may direct in writing. The mailing of such cheque
will, to the extent of the sum represented by the cheque (plus the amount of the tax required by law to be deducted), discharge all liability
for the dividend unless such cheque is not paid on presentation or the amount of tax so deducted is not paid to the appropriate taxing
authority.

  

		22.13	Capitalization of Retained Earnings or Surplus

  

Notwithstanding anything contained in these Articles,
the directors may from time to time capitalize any retained earnings or surplus of the Company and may from time to time issue, as fully
paid, shares or any bonds, debentures or other securities of the Company as a dividend representing the retained earnings or surplus or
any part of the retained earnings or surplus so capitalized or any part thereof.

  

     - 36 - 

     

    

 

		23.	Documents, Records and Reports

  

		23.1	Recording of Financial Affairs

  

The directors must cause adequate accounting records
to be kept to record properly the financial affairs and condition of the Company and to comply with the Business Corporations Act.

  

		23.2	Inspection of Accounting Records

 

Unless the directors determine otherwise, or unless
otherwise determined by ordinary resolution, no shareholder of the Company is entitled to inspect or obtain a copy of any accounting records
of the Company.

  

		24.	Notices

  

		24.1	Method of Giving Notice

  

Unless the Business Corporations Act or
these Articles provides otherwise, a notice, statement, report or other record required or permitted by the Business Corporations Act
or these Articles to be sent by or to a person may be sent by any one of the following methods:

  

	(1)	mail addressed to the person at the applicable address for
that person as follows:

  

		(a)	for a record mailed to a shareholder, the shareholder’s registered address;

  

		(b)	for a record mailed to a director or officer, the prescribed address for mailing shown for the director
or officer in the records kept by the Company or the mailing address provided by the recipient for the sending of that record or records
of that class;

  

		(c)	in any other case, the mailing address of the intended recipient;

  

		(2)	delivery at the applicable address for that person as follows, addressed to the person:

 

		(a)	for a record delivered to a shareholder, the shareholder’s registered address;

  

		(b)	for a record delivered to a director or officer, the prescribed address for delivery shown for the director
or officer in the records kept by the Company or the delivery address provided by the recipient for the sending of that record or records
of that class;

 

		(c)	in any other case, the delivery address of the intended recipient;

  

		(3)	sending the record by fax to the fax number provided by the intended recipient for the sending of that
record or records of that class;

  

		(4)	sending the record by email to the email address provided by the intended recipient for the sending of
that record or records of that class;

  

	(5)	physical delivery to the intended recipient; or

 

     - 37 - 

     

    

 

		(6)	as otherwise permitted by any securities legislation in any province or territory of Canada or in the
federal jurisdiction of the United States or in any states of the United States that is applicable to the Company and all regulations
and rules made and promulgated under that legislation and all administrative policy statements, blanket orders and rulings, notices
and other administrative directions issued by securities commissions or similar authorities appointed under that legislation.

 

		24.2	Deemed Receipt of Mailing

 

A notice, statement, report or other record that
is:

 

		(1)	mailed to a person by ordinary mail to the applicable address for that person referred to in Article 24.1
is deemed to be received by the person to whom it was mailed on the day (Saturdays, Sundays and holidays excepted) following the date
of mailing;

 

		(2)	faxed to a person to the fax number provided by that person referred to in Article 24.1 is deemed
to be received by the person to whom it was faxed on the day it was faxed; and

  

		(3)	emailed to a person to the email address provided by that person referred to in Article 24.1 is deemed
to be received by the person to whom it was emailed on the day it was emailed.

  

		24.3	Certificate of Sending

 

A certificate signed by the secretary, if any,
or other officer of the Company or of any other corporation acting in that capacity on behalf of the Company stating that a notice, statement,
report or other record was addressed as required by Article 24.1, prepaid and mailed or otherwise sent as permitted by Article 24.1
is conclusive evidence of that fact.

 

		24.4	Notice to Joint Shareholders

 

A notice, statement, report or other record may
be provided by the Company to the joint shareholders of a share by providing the notice to the joint shareholder first named in the central
securities register in respect of the share.

  

		24.5	Notice to Trustees

 

A notice, statement, report or other record may
be provided by the Company to the persons entitled to a share in consequence of the death, bankruptcy or incapacity of a shareholder by:

  

		(1)	mailing the record, addressed to them:

  

		(a)	by name, by the title of the legal personal representative of the deceased or incapacitated shareholder,
by the title of trustee of the bankrupt shareholder or by any similar description; and

 

	 	(b)	at the address, if any, supplied to the Company for that purpose by the persons claiming to be so entitled; or

 

     - 38 - 

     

    

 

		(2)	if an address referred to in paragraph (1)(b) has not been supplied to the Company, by giving the
notice in a manner in which it might have been given if the death, bankruptcy or incapacity had not occurred.

 

		24.6	Undelivered Notices

 

If on two consecutive occasions, a notice, statement,
report or other record is sent to a shareholder pursuant to Article 24.1 and on each of those occasions any such record is returned
because the shareholder cannot be located, the Company shall not be required to send any further records to the shareholder until the
shareholder informs the Company in writing of his or her new address.

 

		25.	Seal

 

		25.1	Who May Attest Seal

  

Except as provided in Articles 25.2 and 25.3,
the Company’s seal, if any, must not be impressed on any record except when that impression is attested by the signatures of:

  

		(1)	any two directors;

  

		(2)	any officer, together with any director;

  

		(3)	if the Company only has one director, that director; or

  

		(4)	any one or more directors or officers or persons as may be determined by the directors.

  

		25.2	Sealing Copies

  

For the purpose of certifying under seal a certificate
of incumbency of the directors or officers of the Company or a true copy of any resolution or other document, despite Article 25.1,
the impression of the seal may be attested by the signature of any director or officer or the signature of any other person as may be
determined by the directors.

 

		25.3	Mechanical Reproduction of Seal

  

The directors may authorize the seal to be impressed
by third parties on share certificates or bonds, debentures or other securities of the Company as they may determine appropriate from
time to time. To enable the seal to be impressed on any share certificates or bonds, debentures or other securities of the Company, whether
in definitive or interim form, on which facsimiles of any of the signatures of the directors or officers of the Company are, in accordance
with the Business Corporations Act or these Articles, printed or otherwise mechanically reproduced, there may be delivered to the
person employed to engrave, lithograph or print such definitive or interim share certificates or bonds, debentures or other securities
one or more unmounted dies reproducing the seal and the chair of the board or any senior officer together with the secretary, treasurer,
secretary-treasurer, an assistant secretary, an assistant treasurer or an assistant secretary-treasurer may in writing authorize such
person to cause the seal to be impressed on such definitive or interim share certificates or bonds, debentures or other securities by
the use of such dies. Share certificates or bonds, debentures or other securities to which the seal has been so impressed are for all
purposes deemed to be under and to bear the seal impressed on them.

  

     - 39 - 

     

    

 

		26.	Prohibitions

  

		26.1	Definitions

  

In this Part 26:

 

		(1)	“security” has the meaning assigned in the Securities Act (British Columbia);

  

		(2)	“transfer restricted security” means:

 

		(a)	a share of the Company;

 

		(b)	a security of the Company convertible into shares of the Company;

 

		(c)	any other security of the Company which must be subject to restrictions on transfer in order for the Company
to satisfy the requirement for restrictions on transfer under the “private issuer” exemption of Canadian securities legislation
or under any other exemption from prospectus or registration requirements of Canadian securities legislation similar in scope and purpose
to the “private issuer” exemption.

 

		26.2	Application

  

Article 26.3 does not apply to the Company
if and for so long as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions
as part of these Articles or to which the Statutory Reporting Company Provisions apply.

 

		26.3	Consent Required for Transfer of Shares or Transfer Restricted
Securities

 

No share or other transfer restricted security
may be sold, transferred or otherwise disposed of without the consent of the directors and the directors are not required to give any
reason for refusing to consent to any such sale, transfer or other disposition.

  

		27.	Special Rights And Restrictions – Class A Common
Shares

 

The Class A Common Shares without par value
in the authorized share structure of the Company (“Class A Common Shares”) have attached to them the special rights
and restrictions set out in this Part 27.

 

		27.1	Voting Rights

  

Except as required by law or by these Articles,
the holders of the Class A Common Shares, as such, are entitled to receive notice of every meeting of shareholders of the Company
and are entitled to vote at those meetings in person or by proxy.

  

		27.2	Dividends

 

		(1)	Except as otherwise provided in these Articles, the holders of the Class A Common Shares, as such,
are entitled to receive on the date fixed for payment, and the Company will pay, such dividends as the directors may in their sole and
absolute discretion declare from time to time.

 

     - 40 - 

     

    

 

	(2)	Except as otherwise provided in these Articles, the directors may, in their sole and absolute discretion,
at any time:

 

		(a)	declare and pay, or set apart for payment, a dividend on the Class A Common Shares independently
of any dividend on, and without also declaring or paying or setting apart for payment any dividend (whether or not of a similar amount
or similar kind) on, any one or more other classes of shares in the Company; and

 

		(b)	declare and pay, or set apart for payment, dividends on shares of any one or more classes of shares in
the Company other than the Class A Common Shares independently of any dividend on, and without also declaring or paying or setting
apart for payment any dividend (whether or not of a similar amount or similar kind) on, the Class A Common Shares.

 

	27.3	Winding Up

 

In the event of the liquidation or dissolution
of the Company, or of any distribution of property and assets of the Company among its shareholders for the purpose of winding up its
affairs, the holders of the Class A Common Shares, as such, will, subject to the rights of the holders of the Class C Shares,
Class D Preferred Shares and any other class of shares in the Company entitled to receive property and assets of the Company upon
such a distribution in priority to the holders of the Class A Common Shares, share pari passu with the holders of the Class B
Common Shares and any other class of shares in the Company ranking pari passu with the Class A Common Shares on a liquidation,
dissolution or winding up, as such, on a share-for-share basis, in all remaining property and assets of the Company.

 

		28	Special Rights And Restrictions Class B Common Shares Altered By Special Resolution Dated July 17, 2019

 

The Class B Common Shares without
par value in the authorized share structure of the Company (“Class B Common Shares”) have attached to them the
special rights and restrictions set out in this Part 28.

 

	28.1	Voting Rights

 

Except as required by law or by these
Articles, the holders of the Class B Common Shares, as such, are not entitled to receive notice of any meetings of shareholders
of the Company and are not entitled to vote at those meetings in person or by proxy.

 

	28.2	Dividends

 

		(1)	Except as otherwise provided in these
                                            Articles, the holders of the Class B Common Shares, as such, are entitled to receive
                                            on the date fixed for payment, and the Company will pay, such dividends as the directors
                                            may in their sole and absolute discretion declare from time to time.

 

		(2)	Except as otherwise provided in these
                                            Articles, the directors may, in their sole and absolute discretion, at any time:

 

		(a)	declare and pay, or set apart for payment, a dividend of any kind on
                                                                                                                             the Class B Common Shares independently of any dividend on, and without also declaring or paying or setting apart for payment
                                                                                                                             any dividend (whether or not of a similar amount or similar kind) on, any one or more other classes of shares in the Company; and

 

    - 41 -

     

    

 

		(b)	declare and pay, or set apart
                                            for payment, dividends on shares of any one or more classes of shares in the Company other
                                            than the Class B Common Shares independently of any dividend on, and without also declaring
                                            or paying or setting apart for payment any dividend (whether or not of a similar amount or
                                            similar kind) on, the Class B Common Shares.

 

	28.3	Winding Up

 

In the event of the liquidation or dissolution
of the Company, or of any distribution of property and assets of the Company among its shareholders for the purpose of winding up its
affairs, the holders of the Class B Common Shares, as such, will, subject to the rights of the holders of the Class C Shares,
Class D Preferred Shares and any other class of shares in the Company entitled to receive property and assets of the Company upon
such a distribution in priority to the holders of the Class B Common Shares, share par passu with the holders of the Class A
Common Shares and any other class of shares in the Company ranking pari passu with the Class B Common Shares on a liquidation, dissolution
or winding up, as such, on a share-for-share basis, in all remaining property and assets of the Company.

 

	29.	Special Rights And Restrictions
                                            – Class C Shares

 

The Class C Shares without par value
in the authorized share structure of the Company (“Class C Shares”) have attached to them the special rights
and restrictions set out in this Part 29.

 

	29.1	Voting Rights

 

Except as required by law or by these
Articles, the holders of the Class C Shares, as such, are entitled to receive notice of every meeting of shareholders of the Company
and are entitled to vote at those meetings in person or by proxy.

 

	29.2	Dividends

 

The holders of the Class C Shares,
as such, are not entitled to receive, and the Company will not pay, any dividends on the Class C Shares.

 

	29.3	Winding Up

 

In the event of the liquidation or dissolution of the Company, or of any distribution of property and assets of the Company among its shareholders for the purpose of winding up its affairs, the holders of the Class C Shares, as such, will, subject to the rights of the holders of the Class D Preferred Shares and any other class of shares in the Company entitled to receive property and assets of the Company upon such a distribution in priority to the holders of the Class C Shares, be entitle to receive from the property and assets of the Company a total amount equal to the capital in respect of all Class C Shares, as determined in accordance with the Business Corporations Act, before any amount is paid or any property and assets of the Company are distributed to the holders of any Class A Common Shares, Class B Common Shares, or any distribution After payment to the holders of the Class C Shares ranking junior to the Class C Shares on such a distribution. After payment to the holders of the Class C Shares of the amount payable to them as provided in this Article, they will not, as such, be entitled to share in any further distribution of property and assets of the Company among its sharesholders upon such a distribution.

 

    - 42 -

     

    

 

	30.	Special Rights And Restrictions
                                            – Class D Preferred Shares

 

The Class D Preferred Shares without
par value in the authorized share structure of the Company (“Class D Preferred Shares”) have attached to them
the special rights and restrictions set out in this Part 30.

 

	30.1	Voting Rights

 

Except as required by law or by these
Articles, the holders of the Class D Preferred Shares, as such, are not entitled to receive notice of any meetings of shareholders
of the Company and are not entitled to vote at those meetings in person or by proxy.

 

	30.2	Dividends

 

		(1)	Except as otherwise provided in these
                                            Articles, each holder of a Class D Preferred Share, as such, is entitled to receive,
                                            and the Company will pay to that holder, for each financial year of the Company, a fixed,
                                            preferential, non cumulative dividend (the “Class D Preferential Dividend”)
                                            on each Class D Preferred Share held, if, as and when declared by the directors in their
                                            discretion. The maximum Class D Preferential Dividend on a Class D Preferred Share
                                            for any financial year of the Company will be equal to the percentage of the Class D
                                            Redemption Amount determined by the directors of Company at the time such Class D Preferred
                                            Share is issued.

 

		(2)	For greater certainty, any reference
                                            in these Articles to “unpaid Class D Preferential Dividends” on a Class D
                                            Preferred Share at any time means the Class D Preferential Dividends, if any, that have
                                            been declared payable on that Class D Preferred Share by the directors on or before
                                            that time pursuant to this Part 30, but that remain unpaid at that time.

 

		(3)	The directors are entitled to declare
                                            and pay all or any part of the maximum Class D Preferential Dividend on the Class Preferred
                                            Shares for any financial year of the Company at any time and from time to time.

 

		(4)	The holders of the Class D Preferred
                                            Shares, as such, are not entitled to any dividend other than the Class D Preferential
                                            Dividend if, as and when declared by the directors on the Class D Preferred Shares pursuant
                                            to this Part 30.

 

		(5)	Subject to these Articles, if the
                                            Class D Preferential Dividend or any part of it is not declared by the directors pursuant
                                            to these Articles for any financial year of the Company by the end of that financial year
                                            it will be forever extinguished.

 

		(6)	The Company will
                                            not:

 

		(a)	declare, pay or set apart for
                                            payment any dividend;

 

		(b)	make or pay any other distribution
                                            of any kind; or

 

		(c)	pay any proceeds of redemption,
                                            proceeds of retraction, or purchase price, on or in respect of the Class A Common Shares,
                                            Class B Common Shares, Class C Shares or any other class of shares in the Company
                                            ranking junior to the Class D Preferred Shares at any time if the directors, on reasonable
                                            grounds, determine that the Company would, after the payment, be unable to pay (i) the
                                            liabilities of the Company as they become due and (ii) the total Class D Redemption
                                            Amount of the issued and outstanding Class D Preferred Shares.

 

    - 43 -

     

    

 

	30.3	Company’s Right to Redeem

 

The Company has the right, exercisable
at any time, to redeem, in whole or in part, the outstanding Class D Preferred Shares on the terms and subject to the conditions
set out in these Articles (the “Class D Redemption Right “).

 

	30.4	Pro Rata Redemption

 

Except with the consent of the holders
of all the issued Class D Preferred Shares, the Company will only redeem Class D Preferred Shares pursuant to the Class D
Redemption Right on a pro rata basis among all holders of Class D Preferred Shares in accordance with the number of Class D
Preferred Shares held by each of them at the time of redemption.

 

	30.5	Notice of Redemption

 

Subject to these Articles, if the Company
wishes to exercise the Class D Redemption Right, the Company must give notice in writing of that exercise (the “Class D
Redemption Notice”) to each holder of Class D Preferred Shares to be redeemed at least 10 days before the proposed redemption,
specifying the number of Class D Preferred Shares to be redeemed and the date for redemption of those Class D Preferred Shares
(the “Class D Redemption Date”). A Class D Redemption Notice may be given to the holder of a Class D
Preferred Share at the last address of that holder as it appears on the books of the Company. The inadvertent failure to give a Class D
Redemption Notice to any person will not affect the validity of the redemption.

 

	30.6	Class D Retraction Right

 

Each holder of a Class D Preferred
Share has the right, exercisable by it at any time, to require the Company to redeem some or all of its Class D Preferred Shares
on the terms and subject to the conditions set out in these Articles (the “Class D Retraction Right”).

 

	30.7	Procedure to Exercise Class D
                                            Retraction Rights

 

Subject to these Articles, if at any
time the holder of a Class D Preferred Share wishes to exercise the Class D Retraction Right, the holder must give a notice
in writing of that exercise (the “Class D Retraction Notice”) to the Company and to each other holder of Class D
Preferred Shares (the “Other Class D Shareholders”) specifying:

 

	(1)	the number of the holder’s Class D
                                            Preferred Shares to be redeemed; and

 

	(2)	the Class D Redemption Date for those
                                            Class D Preferred Shares, which date must satisfy the following requirements:

 

		(a)	if at that time any Other Class D
                                            Shareholder has already specified a Class D Redemption Date that has not passed, then
                                            that date already specified is the Class D Redemption Date; or

 

    - 44 -

     

    

 

		(b)	in any other case, the Class D
                                            Redemption Date must be at least 15 days and not more than 60 days after the latest date
                                            that such Class D Retraction Notice is given to the Company and to the Other Class D
                                            Shareholders.

 

	30.8	Retraction on Insolvency

 

Despite any other provisions in these
Articles, if any holder of Class D Preferred Shares exercises the Class D Retraction Right to require the Company to redeem
one or more Class D Preferred Shares on a particular Class D Redemption Date, the Company will not be obligated to redeem those
Class D Preferred Shares to the extent that such redemption would render the Company insolvent or would be contrary to the solvency
requirements or other provisions of applicable law. If the directors of the Company determine that the Company would be insolvent after
that redemption, or would not be permitted by any solvency requirements or other provisions of applicable law to redeem all those Class D
Preferred Shares, the Company will give notice of that determination to each holder of Class D Preferred Shares to be redeemed on
that Class D Redemption Date, and the Company will then only be obligated to redeem those Class D Preferred Shares on that
Class D Redemption Date pro rata, based on the number of Class D Preferred Shares tendered for redemption, to the extent of
the maximum number of those shares that may be redeemed without breaching those requirements or other provisions, as determined by the
directors of the Company.

 

	30.9	Waiver of Notice

 

Any person entitled to receive a Class D
Redemption Notice or a Class D Retraction Notice may waive receipt of, or any of the requirements to give, that notice, or the time
for giving that notice, and that waiver, whether given before or after redemption, will be effective for all purposes of these Articles
and will cure any failure in respect of that notice, including failure to give that notice, to give the specified form of notice, or
to give the notice by a particular date.

 

	30.10	Redemption

 

		(1)	The Company will redeem the number
                                            of Class D Preferred Shares specified in the relevant Class D Redemption Notice
                                            or Class D Retraction Notice on the applicable Class D Redemption Date, on the
                                            terms and subject to the conditions set out in these Articles.

 

		(2)	Despite the terms and conditions set
                                            out in these Articles, the applicable Class D Redemption Date can be changed by the
                                            agreement of the Company and all holders of Class D Preferred Shares.

 

	30.11	Payment on Redemption

 

Subject to Article 30.12, the Company
will redeem the Class D Preferred Shares which are to be redeemed pursuant to the exercise of any Class D Redemption Right
or Class D Retraction Right by paying to the holder of those Class D Preferred Shares on the applicable Class D Redemption
Date the Class D Redemption Amount for those Class D Preferred Shares plus all unpaid Class D Preferential Dividends owing
on them, in cash or in kind, on surrender to the Company for cancellation of the certificate, if any, for those Class D Preferred
Shares at the registered office of the Company or any other reasonable place acceptable to the Company.

 

    - 45 -

     

    

 

	30.12	Deposit of Fund for Certificated
                                            Shares

 

If the certificate representing any certificated
Class D Preferred Share being redeemed has not been surrendered by the holder of that share in accordance with these Articles, the
Company will have the right, but not the obligation, to deposit the amount payable by it on redemption for such Class D Preferred
Share into an account in any chartered bank or trust company in British Columbia, or into a trust account with a lawyer or law firm in
British Columbia. If that deposit is made, the Company will instruct that bank, trust company, lawyer or law firm, as applicable, to
pay the amount so deposited, without interest, to or to the order of the holder of that Class D Preferred Share upon surrender to
the Company, or to the bank, trust company, lawyer or law firm, as applicable, for cancellation of the certificate representing that
Class D Preferred Share. Any interest earned on the Company’s deposit will be the property of and be paid to the Company.

 

	30.13	No Further Rights

 

The Class D Preferred Shares to
be redeemed on any Class D Redemption Date will be deemed to have been redeemed on that date and the holders of those Class D
Preferred Shares will have no further rights against the Company in respect of those Class D Preferred Shares (including any right
to any further Class D Preferential Dividend), except the right to be paid in full the Class D Redemption Amount and all unpaid
Class D Preferential Dividends, and those Class D Preferred Shares:

 

		(1)	will be, and will be deemed to have
                                            been, redeemed; and

  

		(2)	unless otherwise determined by the
                                            Company will be, and will be deemed to be, cancelled;

 

on such Class D Redemption Date.

 

	30.14	Balancing Certificate

 

If less than all the Class D Preferred
Shares represented by a certificate are to be redeemed, the Company will, at its expense, issue a new certificate for the balance of
those shares.

 

	30.15	Definition of Class D Redemption
                                            Amount

 

In these Articles, the term “Class D
Redemption Amount” in respect of each Class D Preferred Share means:

 

		(1)	if the Class D Preferred Share
                                            is not issued in consideration for property, the amount designated by the directors of the
                                            Company in respect of the issuance of that Class D Preferred Share; or

 

		(2)	if the Class D Preferred Share
                                            is issued in consideration for property (including in consideration for any other share of
                                            the Company), the fair market value of the property received by the Company in consideration
                                            for the issuance of that Class D Preferred Share (the “Relevant Class D
                                            Property”) computed as at the time that Class D Preferred Share was issued,
                                            net of the fair market value of any other consideration given by the company for the Relevant
                                            Class D Property, and computed on a per share basis.

 

    - 46 -

     

    

 

	30.16	Determination of Class Redemption
                                            Amount

 

The directors, acting in good faith,
will be entitled at any time and from time to time to estimate the fair market value of the Relevant Class D Property and, based
on that estimate, to designate an amount as the Class D Redemption Amount (the amount so designated from time to time is referred
to in these Articles as the “Designated Class D Redemption Amount”). The most recent designation of the Class D
Redemption Amount made by the directors pursuant to these Articles will be conclusive evidence at law and in equity against all persons
(including the Company, its creditors, trustees or other representatives, and all shareholders of the Company, and their respective successors
and assigns) that the Class D Redemption Amount is equal to that Designated Class D Redemption Amount.

 

	30.17	Redetermination

 

For greater certainty, despite any prior
designation of an amount as the Class D Redemption Amount, the directors of the Company, acting in good faith, will be entitled
at any time to designate another amount as the Class D Redemption Amount having regard to any advice or information that the directors,
in their discretion, deem necessary or advisable regarding the actual fair market value of the Relevant Class D Property, computed
as at the time of issue of that Class D Preferred Share, net of any other consideration and computed on a per Class D Preferred
Share basis. That advice or information may include any appraisal or other indication of value, or any relevant tax assessment or reassessment
of the Company or any shareholder of the Company issued or proposed to be issued by the Minister of National Revenue for Canada or any
other competent taxation authority, or any order or ruling of a court of competent jurisdiction.

 

	30.18	Consequences of Redetermination

 

If at any time the directors designate
the Class D Redemption Amount in respect of any Class D Preferred Share pursuant to these Articles then, whether or not any
or all of the Class D Preferred Shares are then held by their original holders, and whether or not any or all of the Class D
Preferred Shares are then outstanding:

 

		(1)	the Class D Redemption Amount
                                            in respect of each Class D Preferred Share will be deemed for all purpose of these Articles
                                            retroactively and nunc pro tunc as of the date of issue of that Class D Preferred
                                            Share to be equal to that Designated Class D Redemption Amount, and that designation
                                            will supersede and replace any prior designation of a Class D Redemption Amount;

 

		(2)	any dividend declared on a Class D
                                            Preferred Share before that designation will be deemed to have been declared in accordance
                                            with the dividend entitlement provided in these Articles notwithstanding that the effective
                                            rate of any such dividend, when computed using the prevailing Designated Class D Redemption
                                            Amount, may be greater or less than the rate contemplated in these Articles or in a resolution
                                            or determination of the directors;

 

		(3)	if any Class D Preferred Share
                                            has been redeemed or otherwise acquired by the Company, or for any other reason is no longer
                                            issued and outstanding, then the appropriate adjustments will be made between the parties,
                                            namely, either (A) the Company, or its successors or assigns, will pay to the last registered
                                            holder of that Class D Preferred Share, or its successors or assigns, the Designated
                                            Class D Redemption Amount less the amount previously paid to that holder upon the redemption or other acquisition of that Class D Preferred Share by the
Company, or (B) the last registered holder of that Class D Preferred Share, or its successors or assigns, will repay to the Company, or
its successors or assigns, the amount previously paid to that holder upon the redemption or other acquisition of that Class D Preferred
Share by the Company less the Designated Class D Redemption Amount, depending on whether the Designated Class D Redemption Amount exceeds
or is less than the amount previously paid to that holder upon the redemption or other acquisition of that Class D Preferred Share; and

 

    - 47 -

     

    

 

		(4)	to the greatest extent reasonably
                                            practicable, the Company and the holders of the Class D Preferred Shares, and their
                                            respective successors and assign, will make all other adjustments and take all steps as may
                                            be required as a result of that designation, and those adjustments will be effective retroactively,
                                            nunc pro tunc, as of the date of issue of the Class D Preferred Shares.

 

	30.19	Return of Capital

 

To the extent permitted by, and subject
to the provisions of the Business Corporations Act, the holders of the Class D Preferred Shares, as such, may receive from the Company
by way of a return of capital on the Class D Preferred Shares such amounts as the directors may in their sole and absolute discretion
determine from time to time, and the Class D Redemption Amount in respect of the Class D Preferred Shares will be reduced accordingly
to the extent that there is a payment by the Company to the holders of the Class D Preferred Shares by way of a return of capital
on those shares.

 

	30.20	Winding Up

 

In the event of the liquidation or dissolution
of the Company, or of any distribution of property and assets of the Company among its shareholders for the purpose of winding up its
affairs, the holders of the Class D Preferred Shares, as such, will, subject to the rights of the holders of any other class of
shares in the Company entitled to receive property and assets of the Company upon such a distribution in priority to the holders of the
Class D Preferred Shares, be entitled to receive from the property and assets of the Company an amount equal to the Class D
Redemption Amount in respect of each Class D Preferred Share held by them respectively, plus any unpaid Class D Preferential
Dividends owing in respect of all Class D Preferred Shares held by them respectively, before any amount is paid or any property
and assets of the Company are distributed to the holders of any Class A Common Shares, Class B Common Shares, Class C
Shares, or any other class of shares in the Company ranking junior to the Class D Preferred Shares on such a distribution. After
payment to the holders of the Class D Preferred Shares of the amount payable to them as provided in this Article, they will not,
as such, be entitled to share in any further distribution of property and assets of the Company among its shareholders upon such a distribution.

 

    - 48 -

     

    

 

	28.	SPECIAL RIGHTS AND RESTRICTIONS

 

The Preferred Shares without par value in the
authorized share structure of the Company (“Preferred Shares”) have attached to them the special rights and restrictions
set out in this Part 28.

 

	28.1	Preferred Shares – Series Shares

 

		(1)	The Directors of the Company may issue the Preferred shares at any time and from time to time in one or
more series.

 

		(2)	Subject to the Business Corporations Act, the directors may from time to time, by resolution, if
none of the Preferred Shares of any particular series are issued, alter these Articles and authorize the alteration of the Notice of Articles
of the Company, as the case may be, to do one or more of:

 

		(a)	determine the maximum number of shares of that series that the Company is authorized to issue, determine
that there is no such maximum number, or alter any such determination;

 

		(b)	create an identifying name for the shares of that series, or alter any such identifying name; and

 

		(c)	attach special rights or restrictions to the shares of that series, including, but without limiting or
restricting the generality of the foregoing, the rate or amount of dividends (whether cumulative, non-cumulative or partially cumulative),
the dates and places of payment thereof, the consideration for, and the terms and conditions, of, any purchase for cancellation or redemption
thereof (including redemption after a fixed term or at a premium), conversion or exchange rights, the terms and conditions of any share
purchase plan or sinking fund, restrictions respecting payment of dividends on, or the repayment of capital in respect of, any other shares
of the Company and voting rights and restrictions; or alter any such special rights or restrictions, but no such special right or restriction
shall contravene the provisions of Article 28.2 and Article 28.3 of this Article 28.

 

	28.2	Winding Up

 

The holders of Preferred Shares shall be
entitled, on the liquidation or dissolution of the Company, whether voluntary or involuntary, or on any other distribution of its
assets among its shareholders for the purpose of winding up its affairs, to receive, before any distribution is made to the holders
of the Common Shares or any other shares of the company ranking junior to the Preferred Shares with respect to repayment with
respect to repayment of capital on the liquidation or dissolution of the Company, whether voluntary or involuntary, or on any other
distribution of its assets among its shareholders for the purpose of winding up its affairs, the amount paid up with respect to each
Preferred Share held by them, together with the fixed premium (if any) thereon, all accrued and unpaid cumulative dividends (if any
and if preferential) thereon, which for such purpose shall be calculated as if such dividends were accruing on a day-to-day basis up
to the date of such distribution, whether or not earned or declared, and all declared and unpaid non-cumulative dividends (if any
and if preferential) thereon. After payment to the holders of Preferred Shares of the amounts so payable to them, they shall not, as
such, be entitled to share in any further distribution of the property or assets of the Company except as specifically provided in
the special rights and restrictions attached to any particular series.

 

    - 49 -

     

    

 

	28.3	Dividends/Voting

 

Except for such rights relating to the election
of directors on a default in payment of dividends as may be attached to any series of the Preferred Shares by the directors, holders of
the Preferred Shares shall not be entitled, as such, to receive notice of, or to attend or vote at, any general meeting of shareholders
of the company.

 

Under the Business Corporation Act and
the Articles of the Company, a simple majority of the votes cast at the meeting (in person or by proxy) is required to pass the foregoing
resolution

 

    - 50 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00333-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00333-of-00352.parquet"}]]