Document:

Exhibit 4.1

 

Freedom Leaf Inc.

 

2016 Stock Option Plan

 

	SECTION 1	GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The
name of the plan is the Freedom Leaf Inc. 2016 Stock Option Plan (the “Plan”). The purpose of the Plan is to
encourage and enable the officers, employees, directors, consultants and other key persons of Freedom Leaf Inc., a Nevada corporation
(the “Company”) and its Parents, Subsidiaries and Affiliates, upon whose judgment, initiative and efforts the Company
largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. It is anticipated
that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests
with those of the Company, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain
with and or further the interests of the Company.

 

The following terms shall be
defined as set forth below:

 

“Affiliate”
means with respect to a specified Person, any Person that directly, or indirectly through one or more intermediaries, Controls,
or is Controlled by, or is under common Control with, the specified Person.

 

“Award”
or “Awards,” except where referring to a particular category of grant under the Plan, shall include Incentive
Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, or any combination of the foregoing.

 

“Board”
means the Board of Directors of the Company.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

 

“Control”
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, contract, or otherwise.

 

“Committee”
has the meaning specified in Section 2.

 

“Effective
Date” means the date on which the Plan is approved by stockholders as set forth at the end of this Plan.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair Market
Value” of the Stock on any given date means the fair market value of the Stock determined as the average of the highest
bid and lowest asked prices of the Stock reported on the Over-the-Counter Bulletin Board or Pink Sheets, as applicable, for such
date or, if no bid and asked prices were reported for such date, for the last day preceding such date for which such prices were
reported; provided, however, that (i) if the Stock is admitted to trading on a national securities exchange or the
NASDAQ National Market System, the Fair Market Value on any date shall not be less than the last reported closing price for the
Stock on such exchange or system and (ii) if the stock is not traded on any national securities exchange or on the Over-the-Counter
Bulletin Board or Pink Sheets, the Fair Market Value of the Stock shall be determined in good faith by the Committee.

 

“Incentive
Stock Option” means any Stock Option designated and qualified as an “incentive stock option” as defined in
Section 422 of the Code.

 

“Initial Public
Offering” means the consummation of the first fully underwritten, firm commitment public offering pursuant to an effective
registration statement under the Act, other than on Forms S-4 or S-8 or their then equivalents, covering the offer and sale by
the Company of its Stock, or such other event as a result of or following which the Company's Stock shall be registered under Section
12 of the Exchange Act.

 

“Non-Qualified
Stock Option” means any Stock Option that is not an Incentive Stock Option.

 

“Option”
or “Stock Option” means any option to purchase shares of Stock granted pursuant to Section 5.

 

“Outside Director”
means a member of the Board who is not also an employee or officer of the Company or any Subsidiary.

 

 

 

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“Parent”
means any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending with
the Company if each of the corporations or entities (other than the Company) owns stock or other interests possessing 50 percent
or more of the economic interest or the total combined voting power of all classes of stock or other interests in one of the other
corporations or entities in the chain.

 

“Person”
means any individual, corporation, partnership (limited or general), limited liability company, limited liability partnership,
association, trust, joint venture, unincorporated organization or any similar entity.

 

“Restricted
Stock Award” means Awards granted pursuant to Section 6.

 

“Stock”
means the Common Stock, par value $0.001 per share, of the Company, subject to adjustments pursuant to Section 3.

 

“Subsidiary”
means any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning
with the Company if each of the corporations or entities (other than the last corporation or entity in the unbroken chain) owns
stock or other interests possessing 50 percent or more of the economic interest or the total combined voting power of all classes
of stock or other interests in one of the other corporations or entities in the chain.

 

“Unrestricted
Stock Award” means any Award granted pursuant to Section 7.

 

	SECTION 2	ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT PARTICIPANTS AND DETERMINE AWARDS

 

(a)Administration of Plan.
The Plan shall be administered by the Board, or at the discretion of the Board, by a committee or committees of the Board, comprised,
except as contemplated by Section 2(c), of not less than two Directors. All references herein to the Committee shall be deemed
to refer to the group then responsible for administration of the Plan at the relevant time (i.e., either the Board of Directors
or a committee or committees of the Board, as applicable).

 

(b)Powers of Committee. The
Committee shall have the power and authority to grant Awards consistent with the terms of the Plan, including the power and authority:

 

(i)to
select the officers, employees, directors, consultants and key persons of the Company and/or its Subsidiaries and Affiliates to
whom Awards may from time to time be granted;

 

(ii)to
determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Restricted
Stock Awards, Unrestricted Stock Awards, or any combination of the foregoing, granted to any one or more participants;

 

(iii)to
determine the number of shares of Stock to be covered by any Award;

 

(iv)to
determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the
Plan, of any Award, which terms and conditions may differ among individual Awards and participants, and to approve the form of
written instruments evidencing the Awards;

 

(v)to
impose any limitations on Awards granted under the Plan, including limitations on transfers, repurchase provisions and the like
and to exercise repurchase rights or obligations;

 

(vi)subject
to the provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised;

 

 

 

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(vii)
to determine at any time whether, to what extent, and under what circumstances distribution or the receipt of Stock and other amounts
payable with respect to an Award shall be deferred either automatically or at the election of the participant and whether and to
what extent the Company shall pay or credit amounts constituting interest (at rates determined by the Committee) or dividends or
deemed dividends on such deferrals; and

 

(viii)
at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts
and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related
written instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes
arising in connection with the Plan; and to otherwise supervise the administration of the Plan.

 

(ix)All
decisions and interpretations of the Committee shall be binding on all persons, including the Company and Plan participants.

 

(c)Delegation of Authority
to Grant Awards. The Committee, in its discretion, may delegate to the Chief Executive Officer of the Company all or part of the
Committee’s authority and duties with respect to the granting of Awards at Fair Market Value to individuals who are not subject
to the reporting and other provisions of Section 16 of the Exchange Act or “covered employees” within the meaning of
Section 162(m) of the Code. Any such delegation by the Committee shall include a limitation as to the amount of Awards that may
be granted during the period of the delegation and shall contain guidelines as to the determination of the exercise price of any
Option, the conversion ratio or price of other Awards and the vesting criteria. The Committee may revoke or amend the terms of
a delegation at any time but such action shall not invalidate any prior actions of the Committee’s delegate or delegates
that were consistent with the terms of the Plan.

 

	SECTION 3	STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 

(a)Stock Issuable. The maximum
number of shares of Stock reserved and available for issuance under the Plan shall be 10,000,000 shares of Common Stock, subject
to adjustment as provided in Section 3(b). For purposes of this limitation, the shares of Stock underlying any Awards which are
forfeited, canceled, reacquired by the Company, satisfied without the issuance of Stock or otherwise terminated (other than by
exercise) shall be added back to the shares of Stock available for issuance under the Plan. Subject to such overall limitation,
shares of Stock may be issued up to such maximum number pursuant to any type or types of Award. The shares available for issuance
under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company and held in its treasury.

 

(b)Changes in Stock. Subject
to Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split,
reverse stock split or other similar change in the Company’s capital stock, the outstanding shares of Stock are increased
or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares
or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares
of Stock or other securities, or, if, as a result of any merger, consolidation or sale of all or substantially all of the assets
of the Company, the outstanding shares of Stock are converted into or exchanged for different number or kind of securities of the
Company or any successor entity (or a Subsidiary or Affiliate thereof), the Committee shall make an appropriate or proportionate
adjustment in (i) the maximum number of shares reserved for issuance under the Plan, (ii) the number and kind of shares or other
securities subject to any then outstanding Awards under the Plan, (iii) the repurchase price per share subject to each outstanding
Restricted Stock Award, and (iv) the exercise price and/or exchange price for each share subject to any then outstanding Stock
Options under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock
Options ) as to which such Stock Options remain exercisable. The adjustment by the Committee shall be final, binding and conclusive.
No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment, but the Committee in its discretion
may make a cash payment in lieu of fractional shares.

 

 

 

 

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(c)The Committee may also
adjust the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into
consideration material changes in accounting practices or principles, extraordinary dividends, acquisitions or dispositions of
stock or property or any other event if it is determined by the Committee that such adjustment is appropriate to avoid distortion
in the operation of the Plan, provided that no such adjustment shall be made in the case of an Incentive Stock Option, without
the consent of the participant, if it would constitute a modification, extension or renewal of the Option within the meaning of
Section 424(h) of the Code.

 

(d)Mergers and Other Sale
Events. In the case of and subject to the consummation of (i) the dissolution or liquidation of the Company, (ii) the sale of all
or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger, reorganization
or consolidation in which the outstanding shares of Stock are converted into or exchanged for a different kind of securities of
the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction do not
own a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction, or (iv)
the sale of all of the Stock of the Company to an unrelated person or entity (in each case, regardless of the form thereof, a “Sale
Event”), then (A) the Plan shall terminate upon the effective date and time of such Sale Event and (B) unless otherwise provided
in the applicable Award agreements, (x) all unexercised Options, whether vested or unvested, issued and outstanding immediately
prior to the consummation of such Sale Event shall expire and terminate upon the effective date and time that such Sale Event is
consummated, and (y) all unvested portions of any Restricted Stock Award outstanding immediately prior to the consummation of the
Sale Event shall expire and terminate upon the effective date and time that such Sale Event is consummated. In the event of such
termination of the Plan pursuant to this Section 3(b), each Plan participant shall be permitted within a specified period of time
prior to the consummation of the Sale Event as determined by the Committee to exercise all outstanding Options held by such participant
which are then exercisable or will become exercisable immediately prior to the consummation of the Sale Event.

 

(e)Notwithstanding the foregoing,
the parties to any Sale Event transaction may, in their sole discretion, provide for the assumption or continuation of Plan Awards
theretofore granted (after taking into account any acceleration hereunder) by the successor entity, or the substitution for such
Plan Awards of new Awards of the successor entity or a Subsidiary or Affiliate thereof, with an appropriate adjustment as to the
number and kind of shares and the per share exercise prices (after taking into account any acceleration provided for hereunder).

 

(f)Substitute Awards. The
Committee may grant Awards under the Plan in substitution for stock and stock based awards held by employees, directors or other
option holders of another corporation in connection with a merger or consolidation of the employing corporation with the Company
or a Subsidiary or Affiliate, or the acquisition by the Company or a Subsidiary or Affiliate of property or stock of the employing
corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee considers
appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation set
forth in Section 3(a).

 

	SECTION 4	ELIGIBILITY

 

Participants in the
Plan will be such full or part-time officers, employees, directors, consultants and other key persons of the Company and/or its
Subsidiaries and Affiliates who are responsible for, or contribute to, the management, growth or profitability of the Company and/or
its Subsidiaries and Affiliates as are selected from time to time by the Committee in its sole discretion.

 

	SECTION 5	STOCK OPTIONS

 

Any Stock Option granted
under the Plan shall be pursuant to a Stock Option Agreement that shall be in such form as the Committee may from time to time
approve. Option agreements need not be identical.

 

Stock Options granted
under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only
to employees of (i) the Company or (ii) any Subsidiary that is a “subsidiary corporation” within the meaning of Section
424(f) of the Code or (iii) any Parent that is a “parent corporation” within the meaning of Section 424(e) of the Code.
To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option.

 

 

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No Incentive Stock
Option shall be granted under the Plan after the Board approves the date, which is 10 years from the date the Plan.

 

(a)Terms of Stock Options.
Stock Options granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms
and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable. If the Committee so determines,
Stock Options may be granted in lieu of cash compensation at the participant’s election, subject to such terms and conditions
as the Committee may establish, as well as in addition to other compensation.

 

(b)Exercise Price. The exercise
price per share for the Stock covered by a Stock Option shall be determined by the Committee at the time of grant but shall not
be less than 100 percent of the Fair Market Value on the date of grant in the case of Incentive Stock Options. If an employee owns
or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting
power of all classes of stock of the Company or any parent or subsidiary corporation and an Incentive Stock Option is granted to
such employee, the option price of such Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the
grant date. If the Fair Market Value is undeterminable at the time of grant due to no trading or thinly traded, an arbitrary exercise
price shall be set by the Company.

 

(c)Option Term. The term
of each Stock Option shall be fixed by the Committee, but no Stock Option shall be exercisable more than five years after the date
the option is granted. If an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code)
more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation
and an Incentive Stock Option is granted to such employee, the term of such option shall be no more than five years from the date
of grant.

 

(d)Exercisability; Rights
of a Stockholder. Stock Options shall become exercisable at such time or times, whether or not in installments, as shall be determined
by the Committee at or after the grant date. The Committee may at any time accelerate the exercisability of all or any portion
of any Stock Option. An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a Stock
Option and not as to unexercised Stock Options.

 

(i)Method
of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company, specifying
the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods to the
extent provided in the Award agreement:

 

(ii)In
cash, by certified or bank check, or other instrument acceptable to the Committee in U.S. funds payable to the order of the Company
in an amount equal to the purchase price of such Option Shares;

 

(iii)By
the optionee delivering to the Company a promissory note if the Board has expressly authorized the loan of funds to the optionee
for the purpose of enabling or assisting the optionee to effect the exercise of his or her Stock Option; provided that at least
so much of the exercise price as represents the par value of the Stock shall be paid other than with a promissory note;

 

(iv)If
permitted by the Committee, through the delivery (or attestation to the ownership) of shares of Stock that have been purchased
by the optionee on the open market or have been beneficially owned by the optionee for at least six months and are not then subject
to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date;

 

 

 

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(v)If
permitted by the Committee, by the optionee delivering to the Company a properly executed exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the purchase
price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker
shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe
as a condition of such payment procedure.

 

(vi)Payment
instruments will be received subject to collection. No certificates for Option Shares so purchased will be issued to optionee until
the Company has completed all steps required by law to be taken in connection with the issuance and sale of the shares, including
without limitation (i) receipt of a representation from the optionee at the time of exercise of the Option that the optionee is
purchasing the Option Shares for the optionee’s own account and not with a view to any sale or distribution thereof, (ii)
the legending of any certificate representing the shares to evidence the foregoing representations and restrictions, and (iii)
obtaining from optionee payment or provision for all withholding taxes due as a result of the exercise of the Option. The delivery
of certificates representing the shares of Stock to be purchased pursuant to the exercise of a Stock Option will be contingent
upon receipt from the optionee (or a purchaser acting in his or her stead in accordance with the provisions of the Stock Option)
by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in the Stock
Option or applicable provisions of laws. In the event an optionee chooses to pay the purchase price by previously owned shares
of Stock through the attestation method, the shares of Stock transferred to the optionee upon the exercise of the Stock Option
shall be net of the number of shares attested to.

 

(e)Annual
Limit on Incentive Stock Options. To the extent required for “incentive stock option” treatment under Section 422
of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which
Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary corporations become
exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any Stock
Option exceeds this limit, it shall constitute a Non-Qualified Stock Option.

 

(f)Non-transferability
of Options. No Stock Option shall be transferable by the optionee otherwise than by will or by the laws of descent and distribution
and all Stock Options shall be exercisable, during the optionee’s lifetime, only by the optionee, or by the optionee’s
legal representative or guardian in the event of the optionee’s incapacity. Notwithstanding the foregoing, the Committee,
in its sole discretion, may provide in the Award agreement regarding a given Option that the optionee may transfer, without consideration
for the transfer, his or her Non-Qualified Stock Options to members of his or her immediate family, to trusts for the benefit of
such family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees
in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Option.

 

(g)Termination.
Unless otherwise provided in the option agreement or determined by the Committee, upon the optionee’s termination of employment
(or other business relationship) with the Company and its Subsidiaries, the optionee’s rights in his or her Stock Options
shall automatically terminate.

 

	SECTION 6	RESTRICTED STOCK AWARDS

 

(a)Nature
of Restricted Stock Awards. A Restricted Stock Award is an Award pursuant to which the Company may, in its sole discretion,
grant or sell, at par value or such other higher purchase price determined by the Committee, in its sole discretion, shares of
Stock subject to such restrictions and conditions as the Committee may determine at the time of grant (“Restricted Stock”),
which purchase price shall be payable in cash or by promissory note (recourse, partial recourse, or nonrecourse) acceptable to
the Committee. Conditions may be based on continuing employment (or other business relationship) and/or achievement of pre-established
performance goals and objectives. The grant of a Restricted Stock Award is contingent on the participant executing the Restricted
Stock Award agreement. The terms and conditions of each such agreement shall be determined by the Committee, and such terms and
conditions may differ among individual Awards and participants.

 

 

 

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(b)Rights
as a Stockholder. Upon execution of a written instrument setting forth the Restricted Stock Award and payment of any applicable
purchase price, a participant shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject
to such conditions contained in the written instrument evidencing the Restricted Stock Award. Unless the Committee shall otherwise
determine, certificates evidencing the Restricted Stock shall remain in the possession of the Company until such Restricted Stock
is vested as provided in subsection (d) below of this Section, and the participant shall be required, as a condition of the grant,
to deliver to the Company a stock power endorsed in blank.

 

(c)Restrictions.
Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically
provided herein or in the Restricted Stock Award agreement. If a participant’s employment (or other business relationship)
with the Company and its Subsidiaries terminates under the conditions specified in the relevant instrument relating to the Award,
or upon such other event or events as may be stated in the instrument evidencing the Award, the Company or its assigns shall have
the right or shall agree, as may be specified in the relevant instrument, to repurchase some or all of the shares of Stock subject
to the Award at such purchase price as is set forth in such instrument.

 

(d)Vesting
of Restricted Stock. The Committee at the time of grant shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which Restricted Stock shall become vested, subject to such further rights
of the Company or its assigns as may be specified in the instrument evidencing the Restricted Stock Award.

 

(e)Waiver,
Deferral and Reinvestment of Dividends. The Restricted Stock Award agreement may require or permit the immediate payment, waiver,
deferral or investment of dividends paid on the Restricted Stock.

 

	SECTION 7	UNRESTRICTED STOCK AWARDS

 

(a)Grant
or Sale of Unrestricted Stock. The Committee may, in its sole discretion, grant (or sell at par value or such higher purchase
price determined by the Committee) an Unrestricted Stock Award to any participant, pursuant to which such participant may receive
shares of Stock free of any vesting restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may
be granted or sold as described in the preceding sentence in respect of past services or other valid consideration, or in lieu
of any cash compensation due to such individual.

 

(b)Elections
to Receive Unrestricted Stock In Lieu of Compensation. Upon the request of a participant and with the consent of the Committee,
each such participant may, pursuant to an advance written election delivered to the Company no later than the date specified by
the Committee, receive a portion of the cash compensation otherwise due to such participant in the form of shares of Unrestricted
Stock either currently or on a deferred basis.

 

(c)Restrictions
on Transfers. The right to receive shares of Unrestricted Stock on a deferred basis may not be sold, assigned, transferred,
pledged or otherwise encumbered, other than by will or the laws of descent and distribution.

 

	SECTION 8	TAX WITHHOLDING

 

(a)Payment
by Participant. Each participant shall, no later than the date as of which the value of an Award or of any Stock or other amounts
received thereunder first becomes includable in the gross income of the participant for Federal income tax purposes, pay to the
Company, or make arrangements satisfactory to the Committee regarding payment of, any federal, state, or local taxes of any kind
required by law to be withheld with respect to such income. The Company and its Subsidiaries shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant.

 

(b)Payment
in Stock. Subject to approval by the Committee, a participant may elect to have the minimum required tax withholding obligation
satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Stock to be issued pursuant to any Award
a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding
amount due, or (ii) transferring to the Company shares of Stock owned by the participant with an aggregate Fair Market Value (as
of the date the withholding is effected) that would satisfy the withholding amount due.

 

 

 

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	SECTION 9	TRANSFER, LEAVE OF ABSENCE, ETC.

 

For purposes of the
Plan, the following events shall not be deemed a termination of the employment of a Plan participant by the Company or its Subsidiaries
and Affiliates:

 

(a)a
transfer of employment to the Company from a Subsidiary or Affiliate, or a transfer of employment to a Subsidiary or Affiliate
from the Company, or a transfer of employment from one Subsidiary or Affiliate to another; or

 

(b)an
approved leave of absence for military service or sickness, or for any other purpose approved by (as applicable) the Company or
its Subsidiary or Affiliate, if the employee’s right to re-employment is guaranteed either by a statute or by contract or
under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing.

 

	SECTION 10	AMENDMENTS AND TERMINATION

 

The Board may, at any
time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Award (or provide substitute
Awards at the same or reduced exercise or purchase price or with no exercise or purchase price in a manner not inconsistent with
the terms of the Plan), but such price, if any, must satisfy the requirements which would apply to the substitute or amended Award
if it were then initially granted under this Plan for the purpose of satisfying changes in law or for any other lawful purpose,
but no such action shall adversely affect rights under any outstanding Award without the holder’s consent. If and to the
extent determined by the Committee to be required by the Code to ensure that Incentive Stock Options granted under the Plan are
qualified under Section 422 of the Code, Plan amendments shall be subject to approval by the Company’s stockholders who are
eligible to vote at a meeting of stockholders. Nothing in this Section 10 shall limit the Board’s or Committee’s authority
to take any action permitted pursuant to Section 3(c).

 

	SECTION 11	STATUS OF PLAN

 

With respect to the
portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received by a participant,
a participant shall have no rights greater than those of a general creditor of the Company unless the Committee shall otherwise
expressly determine in connection with any Award or Awards. In its sole discretion, the Committee may authorize the creation of
trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder,
provided that the existence of such trusts or other arrangements is consistent with the foregoing sentence.

 

	SECTION 12	GENERAL PROVISIONS

 

(a)No
Distribution; Compliance with Legal Requirements. The Committee may require each person acquiring Stock pursuant to an Award
to represent to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof.
No shares of Stock shall be issued pursuant to an Award until all applicable securities law and other legal and stock exchange
or similar requirements have been satisfied. The Committee may require the placing of such stop-orders and restrictive legends
on certificates for Stock and Awards as it deems appropriate.

 

(b)Delivery
of Stock Certificates. Stock certificates to participants under this Plan shall be deemed delivered for all purposes when the
Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the
participant, at the participant’s last known address on file with the Company.

 

 

 

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(c)Other
Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable
only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right to continued
employment with the Company or any Subsidiary or Affiliate.

 

(d)Trading
Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to such Company’s insider-trading-policy-related
restrictions, terms and conditions as may be established by the Committee, or in accordance with policies set by the Committee,
from time to time.

 

(e)Loans
to Award Recipients. The Company shall have the authority to make loans to recipients of Awards hereunder (including to facilitate
the purchase of shares) and shall further have the authority to issue shares for promissory notes hereunder.

 

	SECTION 13	EFFECTIVE DATE OF PLAN

 

This Plan shall become
effective upon its adoption by the Board and, thereafter, the Stock Options and other Awards may be granted hereunder; provided,
however, that no Stock may be issued hereunder prior to the approval of the Plan by the holders of a majority of the votes cast
at a meeting of stockholders at which a quorum is present or by written consent in accordance with applicable law.

 

	SECTION 14	GOVERNING LAW

 

This Plan and all Awards
and actions taken thereunder shall be governed by Nevada law, applied without regard to conflict of law principles.

 

ADOPTED BY BOARD OF DIRECTORS ON: August 9, 2016

 

 

 

 

 

 

 

 

    	 	9Electrameccanica Vehicles Corp.: Exhibit 10.8 - Filed by newsfilecorp.com

____________

	 
	EXECUTIVE SERVICES AGREEMENT

	 

Between: 

ELECTRAMECCANICA VEHICLES CORP. 

And: 

MARK WEST 

Electrameccanica Vehicles Corp. 
102
East First Avenue, Vancouver, British Columbia, Canada, V5T 1A4 
__________

EXECUTIVE SERVICES AGREEMENT  

THIS EXECUTIVE SERVICES AGREEMENT is made and dated as
fully executed on this 1st day of November, 2016, with an Effective
Date of November 1, 2016 as set forth below. 

BETWEEN: 

ELECTRAMECCANICA VEHICLES
CORP., a company incorporated pursuant to the laws of the Province of
British Columbia, Canada, and having an address for delivery and notice located
at 102 East First Avenue, Vancouver, British Columbia, Canada, V5T 1A4 

(the “Company”); 

OF THE FIRST PART 

AND: 

MARK WEST,
businessperson, having an address for notice and delivery located at 603 – 2180
West 38th Avenue, Vancouver, British Columbia, Canada, V6M 1R9 

(the “Executive”); 

OF THE SECOND PART 

(the Company and the Executive being
hereinafter singularly also referred to as a “Party” and collectively
referred to as the “Parties” as the context so requires). 

WHEREAS: 

A.          
The Company is a non-reporting company incorporated under the laws of the
Province of British Columbia, Canada; 

B.          
The Executive has experience in and specializes in providing companies with
valuable sales and marketing services and the Executive is the Company’s current
Vice-President Sales & Dealerships; 

C.          
The Company is focused on developing technology and business interests related
to and associated with the commercialization of its innovate electric vehicles
and related business interests and, as a consequence thereof, the Company is
hereby desirous of formally retaining the Executive as an executive of the
Company, and the Executive is hereby desirous of accepting such position, in
order to provide such related Services (as hereinafter defined) to the Company;

D.          
As a consequence of the Executive’s valuable role within the Company, the
Parties hereby acknowledge and agree that there have been various discussions,
negotiations, understandings and agreements between them relating to the terms
and conditions of the Services and, correspondingly, that it is their intention
by the terms and conditions of this “Executive Services Agreement” (the “Agreement”) to hereby replace,
in their entirety, all such prior discussions, negotiations, understandings and
agreements with respect to the Services; and 

- 2 - 

E.          
The Parties have agreed to enter into this Agreement which replaces, in its
entirety, all such prior discussions, negotiations, understandings and
agreements, and, furthermore, which necessarily clarifies their respective
duties and obligations with respect to the within Services to be provided
hereunder, all in accordance with the terms and conditions of this Agreement;

NOW THEREFORE THIS AGREEMENT WITNESSETH that, in
consideration of the mutual covenants and provisos herein contained,
THE PARTIES AGREE AS FOLLOWS: 

Article 1 
INITIAL TERM AND RENEWAL

Term 

1.1          
The initial term of this Agreement (the “Initial Term”) is for a period
of three years commencing on November 1, 2016 (the “Effective Date”),
unless such employment is terminated earlier as hereinafter provided.

1.2          
Subject at all times to the provisions of Article 7 herein, this Agreement shall
renew automatically if not specifically terminated in accordance with the
following provisions. The Company agrees to notify the Executive in writing at
least 90 calendar days prior to the end of the Initial Term of its intent not to
renew this Agreement (the “Company’s Non-Renewal Notice”). Should the
Company fail to provide a Company’s Non-Renewal Notice this Agreement shall
automatically renew on a one-month to one-month term renewal basis after the
Initial Term until otherwise specifically renewed in writing by each of the
Parties for the next one-month term of renewal or, otherwise, terminated upon
delivery by the Company of a corresponding and follow-up 30 calendar day
Company’s Non-Renewal Notice in connection with and within 30 calendar days
prior to the end of any such one-month term renewal period. Any such renewal on
a one-month basis shall be on the same terms and conditions contained herein
unless modified and agreed to in writing by the Parties in advance.

Article 2 
TITLE REPORTING AND DUTIES

Title and Services 

2.1          
Subject as otherwise herein provided, the Company hereby appoints the Executive
to the office of Vice-President Sales & Dealerships of the Company, and on
and after the Effective Date the Executive will undertake and perform the duties
and responsibilities normally and reasonably associated with such office. The
Executive agrees that the Executive’s duties and responsibilities may be
reasonably modified at the Company’s discretion from time to time. All services
to be provided by the Executive hereunder are referred to as the
“Services”. 

2.2          
In this regard it is hereby acknowledged and agreed that the Executive shall be
entitled to communicate with and shall rely upon the immediate advice, direction
and instructions of the President and Chief Executive Officer of the Company
(the “President and CEO”), or upon the advice or instructions of such
other director or officer of the Company as the President and CEO shall, from time to time, designate in times
of the President and CEO’s absence, in order to initiate, coordinate and
implement the Services as contemplated herein subject, at all times, to the
final direction and supervision of the Board of Directors of the Company (the
“Board of Directors”). 

- 3 - 

Conditions 

2.3          
The Executive’s employment under this Agreement is conditional upon the
Executive receiving and maintaining all required regulatory and governmental
licences and approvals of various jurisdictions as may be required to act as the
Vice-President Sales & Dealerships of the Company. 

Services to Subsidiaries 

2.4          
The Executive will perform the Services on behalf of the Company subsidiaries,
accordingly: 

	(a) 	
      in this Agreement the term “the Company” means the
      Company;

	 	 
	(b) 	
      the Executive may be appointed to the office of
      Vice-President Sales & Dealerships within the Company, and

	 	 
	(c) 	
      in the course of performing the Services, the Executive
      will be required to travel.

Reporting 

2.5          
The Executive will report to the person holding the office of President and CEO
of the Company. The Executive will report fully on the management, operations
and business affairs of the Company and advise, to the best of the Executive’s
ability and in accordance with reasonable business standards, on business
matters that may arise from time to time. 

Duties and Obligations 

2.6          
The Executive acknowledges that, as a senior or executive officer of the
Company, the Executive will owe a fiduciary duty to the Company. 

2.7          
The Executive will also: 

	 	(a) 	
      devote reasonable efforts and attention to the business
      and affairs of the Company;

	 	 	 
	 	(b) 	
      perform the Services in a competent and efficient manner
      and in a manner consistent with the Executive’s fiduciary obligations to
      the Company as a senior or executive officer thereof and in compliance
      with all the Company policies, and will carry out all lawful instructions
      and directions from time to time given to the Executive; and

	 	 	 
	 	(c) 	
      promote the interests and goodwill of the
  Company.

2.8          
The Executive acknowledges and agrees that all written and oral opinions,
reports, advice and materials provided by the Executive to the Company in
connection with the Executive’s employment and the Services hereunder are
intended solely for the Company’s benefit and for the Company’s uses only, and
that any such written and oral opinions, reports, advice and information are the
exclusive property of the Company. In this regard the Executive covenants and agrees that the Company may utilize any such
opinion, report, advice and materials for any other purpose whatsoever and,
furthermore, may reproduce, disseminate, quote from and refer to, in whole or in
part, at any time and in any manner, any such opinion, report, advice and
materials in the Company’s sole and absolute discretion. The Executive further
covenants and agrees that no public references to the Executive or disclosure of
the Executive’s role in respect of the Company may be made by the Executive
without the prior written consent of the President and CEO in each specific
instance. 

- 4 - 

2.9          
The Executive warrants that the Executive shall conduct the business and other
activities in a manner which is lawful and reputable and which brings good
repute to the Company, the Company’s business interests. In particular, and in
this regard, the Executive specifically warrants to provide the Services in a
sound and professional manner such that the same meets superior standards of
performance quality within the standards of the industry or as set by the
specifications of the Company. In the event that the Board of Directors has a
reasonable concern that the business as conducted by the Executive is being
conducted in a way contrary to law or is reasonably likely to bring disrepute to
the business interests or to the Company’s or the Executive’s reputation, the
Company may require that the Executive make such alterations in the Executive’s
business conduct or structure, whether of management or Board representation or
employee or sub-licensee representation, as the Board of Directors may
reasonably require in its sole and absolute discretion. 

2.10          
The Executive will comply with all reasonably known Canadian and foreign laws,
whether federal, provincial or state, applicable to the Executive’s respective
duties and obligations hereunder and, in addition, hereby represents and
warrants that any information which the Executive may provide to any person or
company hereunder will, to the best of the Executive’s knowledge, information
and belief, be accurate and complete in all material respects and not
misleading, and will not omit to state any fact or information which would be
material to such person or company. 

Article 3 
PLACE OF EMPLOYMENT

Relocation 

3.1          
The Executive will provide Services based in Vancouver, British Columbia, but
will, if requested by the Company, move to any place within Greater Vancouver
where the Company currently or may in the future conduct business.

Article 4 
COMPENSATION AND BENEFITS

Base Salary 

4.1          
It is hereby acknowledged and agreed that the Executive shall render the
Services as defined hereinabove during the Initial Term and during the
continuance of this Agreement and shall thus be compensated from the Effective
Date of this Agreement to the termination of the same by way of the payment by
the Company to the Executive, or to the further order or direction of the
Executive as the Executive may determine, in the Executive’s sole and absolute
discretion, and advise the Company of prior to such payment, of the gross
monthly fee (the “Base Salary”) of: 

- 5 - 

	 	(a) 	
      CAD$4,000.00 in Base Salary for the month of November,
      2016 – it being acknowledged and agreed that during the month of November,
      2016 the Executive will provide the Services on a part-time basis to the
      Company; and

	 	 	 
	 	(b) 	
      CAD$12,000.00 in Base Salary for every month subsequent
      to November, 2016 – it being acknowledged and agreed that subsequent to of
      November, 2016 the Executive will provide the Services on a full-time
      basis to the Company.

All such
Base Salary will be due and payable by the Company to the Executive, or to the
further order or direction of the Executive as the Executive may determine, in
the Executive’s sole and absolute discretion, and advise the Company of prior to
any such Fee payment, in a manner consistent with the general payroll practice
of the Company, or at such other time and in such other manner as the Executive
and the Company may agree, from time to time. 

Increase in Base Salary 

4.2          
The Company will review the Base Salary payable to the Executive from time to
time during the Initial Term and during the continuance of this Agreement and
may, in its sole and absolute discretion, increase the Base Salary depending on
the Executive’s performance of the Services and having regard to the financial
circumstances of the Company. 

Commission on Dealerships opened 

4.3          
It is hereby also acknowledged and agreed that during the Initial Term and
during the continuance of this Agreement the Executive shall also be compensated
from the Effective Date of this Agreement to the termination of the same by way
of the payment by the Company to the Executive of CAD$10,000.00 (each, a
“Commission”) for each and every dealership which is officially opened,
which was directly sourced and completed by the Executive and which is
established under an authorization to sell and distribute the Company’s good and
services in a particular area (each, a “Dealership”); it being
acknowledged and agreed that any such Dealership shall not include any “pop-up
dealerships” established for selling or distributing the Company’s goods and
services.

All such
Commissions on each Dealership will be due and payable by the Company to the
Executive, or to the further order or direction of the Executive as the
Executive may determine, in the Executive’s sole and absolute discretion, and
advise the Company of prior to any such Commission payment, in a manner
consistent with the general payroll practice of the Company, or at such other
time and in such other manner as the Executive and the Company may agree, from
time to time. 

Bonus 

4.4          
It is hereby also acknowledged that the Board of Directors shall, in good faith,
consider the payment of reasonable industry standard annual bonuses (each being
a “Bonus”) based upon the performance of the Company and upon the
achievement by the Executive and/or the Company of reasonable management
objectives to be reasonably established by the Board of Directors (after
reviewing proposals with respect thereto defined by the Executive and delivered
to the Board of Directors by the Executive at least 30 calendar days before the
beginning of the relevant year of the Company (or within 90 calendar days
following the commencement of the Company’s first calendar year commencing on
the Effective Date). These management objectives shall consist of both financial
and subjective goals and shall be specified in writing by the Board of
Directors, and a copy shall be given to the Executive prior to the commencement
of the applicable year. The payment of any such Bonus shall be payable, in the
sole and absolute discretion of the Company, in cash or common shares of the
Company, no later than within 120 calendar days of the ensuing year after any
calendar year commencing on the Effective Date.

- 6 - 

Stock Options 

4.5          
Subject to the following and the provisions of section 4.6 hereinbelow, it is
hereby acknowledged and agreed that, as soon as reasonably practicable after the
Effective Date hereof, the Executive will be granted, subject to the terms and
conditions of the Company’s existing stock incentive plan (the “Option
Plan”), an initial incentive stock option or options (each an
“Option”) to purchase a certain number of common shares (each an
“Option Share”) of the Company on the terms reasonably consistent with
other recently hired executive officers of the Company.

In this
regard it is hereby acknowledged that such initial Option or Options will have
been granted to the Executive in the context of the stage of development of the
Company existing on or about the Effective Date of this Agreement.
Correspondingly, it is hereby acknowledged and agreed that any Options granted
by the Company to the Executive shall be reviewed and renegotiated at the
request of either Party on a reasonably consistent basis during the Initial Term
and during the continuance of this Agreement and, in the event that the Parties
cannot agree, then the number of Options shall be increased on an annual basis
by the percentage which is the average percentage of all increases to management
stock options within the Company during the previous 12-month period; and in
each case on similar and reasonable exercise terms and conditions. Any dispute
respecting either the effectiveness or magnitude of the final number and terms
hereunder shall be determined by arbitration in accordance with Article 12
hereinbelow. 

4.6          
In this regard, and subject also to the following, it is hereby acknowledged and
agreed that the exercise of any such Options shall be subject, at all times, to
such vesting and resale provisions as may then be contained in the Company’s
Option Plan and as may be finally determined by the Board of Directors, acting
reasonably. In this regard, and in accordance with the terms and conditions of
each final form of Company Option agreement, as the same may exist from time to
time, the Parties hereby also acknowledge and agree that: 

	 	(a) 	
      Registration of Option Shares under the Options:
      the Company will use reasonable commercial efforts to file with the United
      States Securities and Exchange Commission (the “SEC”) a
      registration statement on Form S-8 (the “Form S-8 Registration
      Statement”) within 90 calendar days after the Effective Date hereof
      covering the issuance of all Option Shares of the Company underlying the
      then issued Options, and such Form S-8 Registration Statement shall comply
      with all requirements of the United States Securities Act of 1933,
      as amended (the “Securities Act”). In this regard the Company shall
      use its best efforts to ensure that the Form S-8 Registration Statement
      remains effective as long as such Options are outstanding, and the
      Executive fully understands and acknowledges that these Option Shares will
      be issued in reliance upon the exemption afforded under the Form S-8
      Registration Statement which is available only if the Executive acquires
      such Option Shares for investment and not with a view to distribution. The
      Executive is familiar with the phrase “acquired for investment and not
      with a view to distribution” as it relates to the Securities Act and the
      special meaning given to such term in various releases of the
  SEC;

	 	 	
       

	 	(b) 	
      Section 16 compliance: the Company shall ensure
      that all grants of Options are made to ensure compliance with all
      applicable provisions of the exemption afforded under Rule 16b-3
      promulgated under the Securities and Exchange Act of 1934, as
      amended (the “Exchange Act”). Without limiting the foregoing, the
      Company shall have an independent committee of the Board of Directors approve
each grant of Options to the Executive and, if required, by the applicable
Regulatory Authorities and the shareholders of the Company. The Company shall
file, on behalf of the Executive, all reports required to filed with the SEC
pursuant to the requirements of Section 16(a) under the Exchange Act and
applicable rules and regulations;

- 7 - 

	 	(c) 	
      Disposition of any Option Shares: the Executive
      further acknowledges and understands that, without in anyway limiting the
      acknowledgements and understandings as set forth hereinabove, the
      Executive agrees that the Executive shall in no event make any disposition
      of all or any portion of the Option Shares which the Executive may acquire
      hereunder unless and until:

	 	(i) 	
      there is then in effect a “Registration Statement”
      under the Securities Act covering such proposed disposition and such
      disposition is made in accordance with said Registration Statement;
    or

	 	 	 
	 	(ii) 	
      (A) the Executive shall have notified the Company of the
      proposed disposition and shall have furnished the Company with a detailed
      statement of the circumstances surrounding the proposed disposition, (B)
      the Executive shall have furnished the Company with an opinion of the
      Executive’s own counsel to the effect that such disposition will not
      require registration of any such Option Shares under the Securities Act
      and (C) such opinion of the Executive’s counsel shall have been concurred
      in by counsel for the Company and the Company shall have advised the
      Executive of such concurrence; and

	 	(d) 	
      Payment for any Option Shares: it is hereby
      further acknowledged and agreed that, during the Initial Term and any
      continuance of this Agreement, the Executive shall be entitled to exercise
      any Option granted hereunder and pay for the same by way of the prior
      agreement of the Executive, in the Executive’s sole and absolute
      discretion, and with the prior knowledge of the Company, to settle any
      indebtedness which may be due and owing by the Company under this
      Agreement in payment for the exercise price of any Option Shares acquired
      thereunder. In this regard, and subject to further discussion as between
      the Company and the Executive, together with the prior approval of the
      Board of Directors and the establishment by the Company of a new Option
      Plan predicated upon the same, it is envisioned that, when the Company is
      in a position to afford the same, the Company may adopt certain additional
      “cashless exercise” provisions respecting the granting and exercise of
      incentive stock options during the continuance of this
  Agreement.

Individual Benefits 

4.7          
It is hereby acknowledged and agreed that, during the continuance of this
Agreement, the Executive shall be entitled to either the direct payment by the
Company for, or the reimbursement by the Company to the Executive, as the case
may be, of the following individual benefits (collectively, the “Individual
Benefits”) for which accounts will be provided to the Company in accordance
with the policies and directions provided by the Company from time to time: 

	 	(a) 	
      the payment or reimbursement of up to CAD$833.33 per
      month, and up to CAD$10,000.00 annually, as a car allowance for the
      Executive in order to assist in the provision for the Services being
      provided hereunder; and

- 8 - 

	 	(b) 	
      the payment or reimbursement of up to CAD$5,000.00
      annually as an education allowance for the Executive in order to assist in
      the provision for the Services being provided
hereunder.

Group Benefits 

4.8          
It is hereby acknowledged and agreed that, during the continuance of this
Agreement, the Executive shall be entitled to participate fully in each of the
Company’s respective medical services plans and management and employee benefits
program(s) which the Company provides, from time to time, to all senior
management personnel and including, without limitation, the following benefits
(collectively, the “Group Benefits”): 

	 	(a) 	
      group health insurance;

	 	 	 
	 	(b) 	
      accidental death and dismemberment insurance and
      including, without limitation, travel accident insurance;

	 	 	 
	 	(c) 	
      group life insurance;

	 	 	 
	 	(d) 	
      short-term disability insurance;

	 	 	 
	 	(e) 	
      long-term disability insurance;

	 	 	 
	 	(f) 	
      drug coverage; and

	 	 	 
	 	(g) 	
      dental coverage.

Payment of compensation and status as a taxable
employee 

4.9          
It is hereby also acknowledged and agreed that, unless otherwise agreed to in
advance and in writing by the Parties, the Executive will be classified as a
taxable employee of the Company for all purposes, such that all compensation
which is provided by the Company to the Executive under this Agreement, or
otherwise, will be calculated on a net basis and otherwise for which statutory
taxes will first be deducted by the Company. 

Article 5 
ANNUAL VACATION

Period 

5.1          
The Executive will be entitled to four weeks’ paid annual vacation per calendar
year (the “Vacation”) during the Initial Term and during the continuance
of this Agreement, to be taken at a time or times which are approved by the
President and CEO of the Company (such approval not to be unreasonably
withheld); provided, however, taking into account the operational requirements
of the Company and the need for the timely performance of the Executive’s
Services; and provided, further, that such weeks shall not be taken
consecutively. In this regard it is further understood hereby that the
Executive’s entitlement to any such paid Vacation during any year (including the
initial year) during the continuance of this Agreement will be subject, at all
times, to the Executive’s entitlement to only a pro rata portion of any such
paid Vacation time during any year (including the initial year) and to the
effective date upon which this Agreement is terminated prior to the end of any
such year for any reason whatsoever. 

Unused 

5.2          
Unused vacation may not be carried over after the completion of each calendar
year and any unused vacation will be paid out in cash. 

- 9 - 

Article 6 
EXPENSES 

Reimbursement of Expenses 

6.1          
The Company will reimburse the Executive for all pre-approved and reasonable
travel and other out-of-pocket expenses incurred by the Executive directly
related to the performance of the Services (collectively, the
“Expenses”). The Executive will account for such Expenses in accordance
with the policies and directions provided by the Company from time to time. 

Article 7 
TERMINATION 

Definitions 

7.1          
In this Agreement: 

	 	(a) 	
      “Just Cause” means any act, omission, behaviour,
      conduct or circumstance of the Executive that constitutes just cause for
      dismissal of the Executive at common law; and

	 	 	 
	 	(b) 	
      “Change In Control” means either: (i) a merger or
      acquisition in which the Company is not the surviving entity; except for a
      transaction the principal purpose of which is to change the incorporating
      jurisdiction of the Company; (ii) the sale, transfer or other disposition
      of all or substantially all of the assets of the Company; or (iii) any
      other corporate reorganization or business combination in which 50% or
      more of the outstanding voting stock of the Company is transferred, or
      exchanged through merger, to different holders in a single transaction of
      the Company or in a series of related
transactions.

Termination by the Company for Just Cause

7.2          
The Company may terminate the employment of the Executive under this Agreement
summarily, without any notice or any payment in lieu of notice, for Just Cause.

Voluntary Termination By the Executive

7.3          
The Executive may terminate the Executive’s employment under this Agreement for
any reason by providing not less than 90 calendar days’ notice in writing to the
Company; provided, however, that the Company may waive or abridge any notice
period specified in such notice in its sole and absolute discretion. 

Termination By the Executive for any Change In
Control 

7.4          
The Executive may terminate the Executive’s employment under this Agreement in
connection with any Change In Control of the Company by providing not less than
90 calendar days’ notice in writing of said termination to the
Company after the Change In Control has been effected; provided, however, that
the Company may waive or abridge any notice period specified in such notice in
its sole and absolute discretion; and provided, further, that the Company will
be entitled to carefully review and object to any said Change In Control
designation by the Executive within 30 calendar days of said notice; the final
determination of which, upon dispute, if any, to be determined by arbitration in
accordance with Article 12 herein. 

- 10 - 

Death of the Executive 

7.5          
The employment of the Executive will terminate upon the death of the Executive.

No Payments in Certain Events 

7.6          
Upon the date of the termination of the employment of the Executive: 

	 	(a) 	
      for Just Cause in accordance with section 7.2 herein;
      or

	 	 	 
	 	(b) 	
      by the voluntary termination of employment by the
      Executive in accordance with section 7.3 herein;

(in each instance the “Effective Date of Termination”
herein), the Executive will be entitled to compensation earned by the Executive
before the Effective Date of Termination calculated pro rata up to and including
the Effective Date of Termination and will not be entitled to any severance or
other payments under this Agreement or otherwise.

Payments in the Event of Termination by Death

7.7          
The Company will, upon the death of the Executive during the continuance of this
Agreement in accordance with section 7.5 herein (the “Effective Date of
Termination” herein), provide the Executive’s estate and, if applicable, the
Executive’s immediate family members, with the following: 

	 	(a) 	
      pay to the Executive’s estate the total
  of:

	 	(i) 	
      three month’s Base Salary, less any required statutory
      deductions, if any;

	 	 	 
	 	(ii) 	
      any outstanding Commission, less any required statutory
      deductions, if any;

	 	 	 
	 	(iii) 	
      that portion of any then declared and/or earned or
      accrued Bonus, prorated to the end of the three-month period from the
      Effective Date of Termination, that the President and CEO of the Company
      determines would likely have been paid to the Executive for the three
      months from the Effective Date of Termination; such determination to be
      made fairly and reasonably and taking into account all relevant
      circumstances;

	 	 	 
	 	(iv) 	
      any outstanding Vacation pay as at the Effective Date of
      Termination; and

	 	 	 
	 	(v) 	
      any outstanding Expenses as at the Effective Date of
      Termination; and

	 	(b) 	
      subject to the Company’s then Option Plan and the rules
      and policies of any regulatory authority and stock exchange having
      jurisdiction over the Company, allow for the Executive’s estate to then
      exercise any unexercised and fully vested portion of the Stock Option on the Effective Date of
Termination at any time during three months from the Effective Date of
Termination. 

- 11 - 

Payments in the Event of Termination Without Just
Cause 

7.8          
The Company will, if it terminates the employment of the Executive, including on
and after expiry of the Initial Term, other than for Just Cause or by death in
accordance with sections 7.2 and 7.5 herein (in such instance on the
“Effective Date of Termination” herein), provide the Executive with the
following: 

	 	(a) 	
      pay to the Executive the total
of:

	 	(i) 	
      the following, less any required statutory deductions, if
      any:

	 	(A) 	
      if the Effective Date of Termination occurs within the
      first year of the Initial Term of this Agreement, nine months’ Base
      Salary; or

	 	 	 
	 	(B) 	
      if the Effective Date of Termination occurs after the
      first year but before the end of the Initial Term of this Agreement, 12
      months’ Base Salary; or

	 	 	 
	 	(C) 	
      if the Effective Date of Termination occurs after the
      Initial Term and during any renewal period during the continuance of this
      Agreement, the greater of (I) 12 months’ Base Salary, less any required
      statutory deductions, and (II) CAD$100,000;

	 	(ii) 	
      any outstanding Commission, less any required statutory
      deductions, if any;

	 	 	 
	 	(iii) 	
      that portion of any then declared and/or earned or
      accrued Bonus, prorated to the end of the three-month period from the
      Effective Date of Termination, that the President and CEO of the Company
      determines would likely have been paid to the Executive for the three
      months from the Effective Date of Termination; such determination to be
      made fairly and reasonably and taking into account all relevant
      circumstances;

	 	 	 
	 	(iv) 	
      the present value, as determined by the Company, acting
      reasonably, of each of the Individual Benefits described under section 4.7
      herein that would have been enjoyed by the Executive during the next six
      months from the Effective Date of Termination assuming the Executive’s
      employment was not terminated and assuming the then current level of
      Individual Benefits were continued for that six months;

	 	 	 
	 	(v) 	
      the present value, as determined by the Company, acting
      reasonably, of each of the Group Benefits described under section 4.8
      herein that would have been enjoyed by the Executive during the next six
      months from the Effective Date of Termination assuming the Executive’s
      employment was not terminated and assuming the then current level of Group
      Benefits were continued for that six months;

	 	 	 
	 	(vi) 	
      any outstanding Vacation pay as at the Effective Date of
      Termination; and

	 	 	 
	 	(vii) 	
      any outstanding Expenses as at the Effective Date of
      Termination;

- 12 - 

	 	(b) 	
      maintain the Executive’s Individual Benefits for a period
      of six months from the Effective Date of Termination;

	 	 	 
	 	(c) 	
      maintain the Executive’s Group Benefits for a period of
      six months from the Effective Date of Termination; and

	 	 	 
	 	(d) 	
      subject to the Company’s then Option Plan and the rules
      and policies of any regulatory authority and stock exchange having
      jurisdiction over the Company, allow for the Executive to then exercise
      any unexercised and fully vested portion of the Stock Option on the
      Effective Date of Termination at any time during three months from the
      Effective Date of Termination.

Payments in the Event of Termination upon a Change In
Control 

7.9          
The Company will, if the Executive terminates the Executive’s employment as a
consequence of a Change In Control of the Company (in such instance on the
“Effective Date of Termination” herein): 

	 	(a) 	
      pay the total of:

	 	(i) 	
      12 months’ Base Salary, less any required statutory
      deductions, if any;

	 	 	 
	 	(ii) 	
      any outstanding Commission, less any required statutory
      deductions, if any;

	 	 	 
	 	(iii) 	
      that portion of any then declared and/or earned or
      accrued Bonus, prorated to the end of the six-month period from the
      Effective Date of Termination, that the President and CEO of the Company
      determines would likely have been paid to the Executive for the six months
      from the Effective Date of Termination; such determination to be made
      fairly and reasonably and taking into account all relevant
      circumstances;

	 	 	 
	 	(iv) 	
      the present value, as determined by the Company, acting
      reasonably, of each of the Individual Benefits described under section 4.7
      herein that would have been enjoyed by the Executive during the next six
      months from the Effective Date of Termination assuming the Executive’s
      employment was not terminated and assuming the then current level of
      Individual Benefits were continued for that six months;

	 	 	 
	 	(v) 	
      the present value, as determined by the Company, acting
      reasonably, of each of the Group Benefits described under section 4.8
      herein that would have been enjoyed by the Executive during the next six
      months from the Effective Date of Termination assuming the Executive’s
      employment was not terminated and assuming the then current level of Group
      Benefits were continued for that six months;

	 	 	 
	 	(vi) 	
      any outstanding Vacation pay as at the Effective Date of
      Termination; and

	 	 	 
	 	(vii) 	
      any outstanding Expenses as at the Effective Date of
      Termination;

	 	(b) 	
      maintain the Executive’s Individual Benefits for a period
      of six months from the Effective Date of
Termination;

- 13 - 

	 	(c) 	
      maintain the Executive’s Group Benefits for a period of
      six months from the Effective Date of Termination; and

	 	 	 
	 	(d) 	
      subject to the Company’s then Option Plan and the rules
      and policies of any regulatory authority and stock exchange having
      jurisdiction over the Company, allow for the Executive to then exercise
      any unexercised and fully vested portion of the Stock Option on the
      Effective Date of Termination at any time during three months from the
      Effective Date of Termination.

Executive to Provide Release 

7.10          
Subject to the Company’s making the payment and maintaining the Individual
Benefits and the Group Benefits as provided in sections 7.8 and 7.9 herein, the
Executive will execute and deliver to the Company a full and final release of
the Company, in the form provided by the Company, in respect of the Executive’s
employment under this Agreement and otherwise. 

Manner of Payment 

7.11          
The Company may, in its sole and absolute discretion, pay the amounts referred
to in sections 7.7, 7.8 and 7.9 herein either in a manner consistent with the
general payroll practice of the Company over the course of the relevant time
period or in a lump sum payment within seven business days after receipt by the
Company of the executed full and final release referred to in section 7.9
herein. 

Return of Materials 

7.12          
All documents and materials in any form or medium and including, but not limited
to, files, forms, brochures, books, correspondence, memoranda, manuals and lists
(including lists of customers, suppliers, products and prices), all equipment
and accessories and again including, but not being limited to, leased
automobiles, computers, computer disks, software products, cellular phones and
personal digital assistants, all keys, building access cards, parking passes,
credit cards, and other similar items pertaining to the business of the Company
that may come into the possession or control of the Executive, will at all times
remain the property of the Company and, on termination of the Executive’s
employment for any reason, the Executive will promptly deliver to the Company
all property of the Company in the possession of the Executive or directly or
indirectly under the control of the Executive, and will not reproduce or copy
any such property or other property of the Company. 

Article 8 
CONFIDENTIALITY

Confidential Information 

8.1          
The Executive acknowledges that: 

	 	(a) 	
      the Executive may, during the course of employment with
      the Company, acquire information which is confidential in nature or of
      great value to the Company and its subsidiaries including, without
      limitation, matters or subjects concerning corporate assets, cost and
      pricing data, customer listing, financial reports, formulae, inventions,
      know-how, marketing strategies, products or devices, profit plans,
      research and development projects and findings, computer programs,
      suppliers, and trade secrets, whether in the form of records, files,
      correspondence, notes, data, information, or any other form, including
      copies or excerpts thereof (collectively, the “Confidential Information”); the
disclosure of any of which to competitors, customers, clients or suppliers of
the Company, unauthorized personnel of the Company or to third parties would be
highly detrimental to the best interests of the Company; and 

- 14 - 

	 	(b) 	
      the right to maintain the confidentiality of Confidential
      Information, and the right to preserve the Company’s goodwill, constitute
      proprietary rights which the Company is entitled to
  protect.

8.2          
The Executive will, while employed with the Company and at all times
thereafter:

	 	(a) 	
      hold all Confidential Information that the Executive
      receives in trust for the sole benefit of the Company and in strictest
      confidence;

	 	 	 
	 	(b) 	
      protect all Confidential Information from disclosure and
      will not take any action that could reasonably be expected to result in
      any Confidential Information losing its character as Confidential
      Information, and will take all lawful action necessary to prevent any
      Confidential Information from losing its status as Confidential
      Information; and

	 	 	 
	 	(c) 	
      neither, except as required in the course of performing
      duties and responsibilities under this Agreement, directly or indirectly
      use, publish, disseminate or otherwise disclose any Confidential
      Information to any unauthorized personnel of the Company or to any third
      party, nor use Confidential Information for any purpose other than the
      purposes of the Company, without the prior written consent of the Company,
      which consent may be withheld in the Company’s sole and absolute
      discretion.

8.3          
The restrictions on the Executive’s use or disclosure of all Company
Information, as set forth in this Article 8, shall continue following the
expiration or termination of the Executive’s employment with the Company
regardless of the reasons for or manner of such termination. 

8.4          
Notwithstanding section 8.2 herein, the Executive may, if and solely to the
extent required by lawful subpoena or other lawful process, disclose
Confidential Information but, to the extent possible, shall first notify the
Company of each such requirement so that the Company may seek an appropriate
protective order or waive compliance with the provisions of this Agreement. The
Executive will co-operate fully with the Company at the expense of the Company
in seeking any such protective order. 

Article 9 
NON-COMPETITION AND
NON-SOLICITATION 

Non-Competition and Payments for Enforcement by the
Company during Standstill Period 

9.1          
The Executive acknowledges that the Executive’s Services under this Agreement
are of special, unique and extraordinary character which give the Executive
value to the Company; the loss of which cannot adequately be compensated in
damages or by an action at law. In addition to, and not in limitation of any
other restrictive covenant which may be binding on the Executive, the Executive
shall not anywhere in Greater Vancouver, British Columbia, for a period of one
year after the termination of this Agreement (the “Standstill Period”
herein) for any reason in any manner whatsoever: 

- 15 - 

	 	(a) 	
      carry on, engage in, or be concerned with or interested
      in; or

	 	 	 
	 	(b) 	
      permit the Executive’s name or any part thereof to in any
      manner whatsoever to be used or connected with any business that is, or
      any interest in any business that is;

directly competitive with the business of the Company.

9.2          
The Executive agrees that: 

	 	(a) 	
      all restrictions contained in section 9.1 herein are
      reasonable and valid in the circumstances and all defences to the strict
      enforcement thereof by the Company are hereby waived by the
    Executive;

	 	 	 
	 	(b) 	
      the remedy available to the Company at law for any breach
      by him of section 9.1 herein will be inadequate and that the Company, on
      any application to a Court, shall be entitled to temporary and permanent
      injunctive relief against the Executive without the necessity of proving
      actual damage to the Company; and

	 	 	 
	 	(c) 	
      if the foregoing covenant is found to be unreasonable to
      any extent by a court of competent jurisdiction adjudicating upon the
      validity of the covenant, whether as to the scope of the restriction, the
      area of the restriction or the duration of the restriction, then such
      restriction shall be reduced to that which is in fact declared reasonable
      by such court, or a subsequent court of competent jurisdiction, requested
      to make such a declaration.

9.3          
Should this Agreement be terminated for any reason (in such instance on the
“Effective Date of Termination” herein) and should the Executive, during
the one year Standstill Period from the Effective Date of Termination, secure a
bona fide employment or consulting position outside of the Company (which the
Executive evidences in writing to the Company; the “Other Position”)
which may in any manner infringe the restrictions contained in section 9.1
herein, and should the Company, acting reasonably, not release the Executive
from the restrictions contained in sections 9.1 and 9.2 herein in taking such
Other Position, then, during the Standstill Period, and in order to compensate
the Executive for not being in a position to accept the Other Position, the
Company will, during the Standstill Period: 

	 	(a) 	
      continue to pay the Executive the Base Salary;
  and

	 	 	 
	 	(b) 	
      continue to maintain the Executive’s Group
    Benefits.

Non-Solicitation 

9.4          
The Executive hereby agrees that the Executive will not, during the period
commencing on the Effective Date hereof and ending one year following the
termination or expiration of this Agreement for any reason, be a party to or
abet any solicitation of customers, clients, referral services, consultants or
suppliers of the Company, to transfer business from the Company to any other
person, or seek in any way to persuade or entice any employee of the Company to
leave that employment or to be a party to or abet any such action. 

- 16 - 

Article 10 
OWNERSHIP OF INTELLECTUAL
PROPERTY 

Definitions 

10.1          In
this Agreement, “Inventions” means, collectively, all: 

	 	(a) 	
      discoveries, inventions, ideas, suggestions, reports,
      documents, designs, technology, methodologies, compilations, concepts,
      procedures, processes, products, protocols, treatments, methods, tests,
      improvements, work product and computer programs (including all source
      code, object code, compilers, libraries and developer tools, and any
      manuals, descriptions, data files, resource files and other such materials
      relating thereto), and

	 	 	 
	 	(b) 	
      each and every part of the
foregoing;

that are conceived, developed, reduced to practice or otherwise
made by the Executive either alone or with others or, in any way, relate to the
present or proposed programs, services, products or business of the Company, or
to tasks assigned to the Executive in connection with the Executive’s duties or
in connection with any research or development carried on or planned by the
Company, whether or not such Inventions are conceived, developed, reduced to
practice or otherwise made during the Executive’s employment or during regular
working hours and whether or not the Executive is specifically instructed to
conceive, develop, reduce to practice or otherwise make same. 

Exclusive Property 

10.2          
The Executive agrees that all Inventions, and any and all services and products
which embody, emulate or employ any such Invention, shall be the sole property
of the Company and all copyrights, patents, patent rights, trademarks, service
marks, reproduction rights and all other proprietary title, rights and interest
in and to each such Invention, whether or not registrable (collectively, the
“Intellectual Property Rights”), shall belong exclusively to the Company.

Work for Hire 

10.3          
For purposes of all applicable copyright laws to the extent, if any, that such
laws are applicable to any such Invention or any such service or product, it
shall be considered a work made for hire and the Company shall be considered the
author thereof. 

Disclosure 

10.4          
The Executive will promptly disclose to the Company, or any persons designated
by it, all Inventions and all such services or products. 

Assignment 

10.5          
The Executive hereby assigns and further agrees to, from time to time as such
Inventions arise, assign to the Company or its nominee (or their respective
successors or assigns) all of the Executive’s right, title and interest in and
to the Inventions and the Intellectual Property Rights without further payment
by the Company. 

- 17 - 

Moral Rights 

10.6          
The Executive hereby waives and further agrees to, from time to time as such
Inventions arise, waive for the benefit of the Company and its successors or
assigns all the Executive‘s moral rights in respect of the Inventions. 

Further Assistance 

10.7          
The Executive agrees to assist the Company in every proper way (but at the
Company’s expense) to obtain and, from time to time, enforce the Intellectual
Property Rights and to the Inventions in any and all countries, and to that end
will execute all documents for use in applying for, obtaining and enforcing the
Intellectual Property Rights in and to such Inventions as the Company may
desire, together with any assignments of such Inventions to the Company or
persons designated by it. The Executive’s obligation to assist the Company in
obtaining and enforcing such Intellectual Property Rights in any and all
countries shall continue beyond the termination of this Agreement. 

Representations and Warranties 

10.8          
The Executive hereby represents and warrants that the Executive is subject to no
contractual or other restriction or obligation that will in any manner limit the
Executive’s obligations under this Agreement or activities on behalf of the
Company. The Executive hereby represents and warrants to the Company that the
Executive has no continuing obligations to any person (a) with respect to any
previous invention, discovery or other item of intellectual property or (b) that
require the Executive not to disclose the same. 

Article 11 
INDEMNIFICATION AND LEGAL
PROCEEDINGS 

Indemnification 

11.1          
The Parties hereby each agree to indemnify and save harmless the other Party and
their respective directors, officers, associates, affiliates and agents (each
such party being an “Indemnified Party”), harmless from and against any
and all losses, claims, actions, suits, proceedings, damages, liabilities or
expenses of whatever nature or kind and including, without limitation, any
investigation expenses incurred by any Indemnified Party, to which an
Indemnified Party may become subject by reason of the terms and conditions of
this Agreement. 

No indemnification 

11.2          
This indemnity will not apply in respect of an Indemnified Party in the event
and to the extent that a Court of competent jurisdiction in a final judgment
shall determine that the Indemnified Party was grossly negligent or guilty of
wilful misconduct. 

Claim of indemnification 

11.3          
The Parties agree to waive any right they might have of first requiring the
Indemnified Party to proceed against or enforce any other right, power, remedy,
security or claim payment from any other person before claiming this indemnity.

- 18 - 

Notice of claim 

11.4             In case any action is brought against an Indemnified Party
in respect of which indemnity may be sought against either of the Parties (said
Party then being the “Indemnitee”), the Indemnified Party will give both
Parties prompt written notice of any such action of which the Indemnified Party
has knowledge and the Indemnitee will undertake the investigation and defense
thereof on behalf of the Indemnified Party, including the prompt employment of
counsel acceptable to the Indemnified Party affected and the Indemnitee and the
payment of all expenses. Failure by the Indemnified Party to so notify shall not
relieve the Indemnitee of the Indemnitee‘s obligation of indemnification
hereunder unless (and only to the extent that) such failure results in a
forfeiture by the Indemnitee of substantive rights or defenses. 

Settlement 

11.5          
No admission of liability and no settlement of any action shall be made without
the consent of each of the Parties and the consent of the Indemnified Party
affected, such consent not to be unreasonably withheld. 

Legal Proceedings 

11.6          
Notwithstanding that the Indemnitee will undertake the investigation and defense
of any action, an Indemnified Party will have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel will be at the expense of the Indemnified Party
unless: 

	 	(a) 	
      such counsel has been authorized by the
  Indemnitee;

	 	 	 
	 	(b) 	
      the Indemnitee has not assumed the defense of the action
      within a reasonable period of time after receiving notice of the
      action;

	 	 	 
	 	(c) 	
      the named parties to any such action include that any
      Party and the Indemnified Party shall have been advised by counsel that
      there may be a conflict of interest between any Party and the Indemnified
      Party; or

	 	 	 
	 	(d) 	
      there are one or more legal defenses available to the
      Indemnified Party which are different from or in addition to those
      available to any Party.

Contribution 

11.7          
If for any reason other than the gross negligence or bad faith of the
Indemnified Party being the primary cause of the loss claim, damage, liability,
cost or expense, the foregoing indemnification is unavailable to the Indemnified
Party or insufficient to hold them harmless, the Indemnitee shall contribute to
the amount paid or payable by the Indemnified Party as a result of any and all
such losses, claim, damages or liabilities in such proportion as is appropriate
to reflect not only the relative benefits received by the Indemnitee on the one
hand and the Indemnified Party on the other, but also the relative fault of the
Indemnitee and the Indemnified Party and other equitable considerations which
may be relevant. Notwithstanding the foregoing, the Indemnitee shall in any
event contribute to the amount paid or payable by the Indemnified Party, as a
result of the loss, claim, damage, liability, cost or expense (other than a
loss, claim, damage, liability, cost or expenses, the primary cause of which is
the gross negligence or bad faith of the Indemnified Party), any excess of such
amount over the amount of the fees actually received by the Indemnified Party
hereunder.

- 19 - 

Article 12 
ARBITRATION 

Matters for arbitration 

12.1          
Except for matters of indemnity or in the case of urgency to prevent material
harm to a substantive right or asset, the Parties agree that all questions or
matters in dispute with respect to this Agreement shall be submitted to
arbitration pursuant to the terms hereof. This provision shall not prejudice a
Party from seeking a Court order or assistance to garnish or secure sums or to
seek summary remedy for such matters as counsel may consider amenable to summary
proceedings. 

Notice 

12.2          
It shall be a condition precedent to the right of any Party to submit any matter
to arbitration pursuant to the provisions hereof that any Party intending to
refer any matter to arbitration shall have given not less than five business
days’ prior written notice of its intention to do so to the other Party together
with particulars of the matter in dispute. On the expiration of such five
business days the Party who gave such notice may proceed to refer the dispute to
arbitration as provided for herein. Except for matters of indemnity or in the
case of urgency to prevent material harm to a substantive right or asset, the
Parties agree that all questions or matters in dispute with respect to this
Agreement shall be submitted to arbitration pursuant to the terms hereof. This
provision shall not prejudice a Party from seeking a Court order or assistance
to garnish or secure sums or to seek summary remedy for such matters as counsel
may consider amenable to summary proceedings. 

Appointments 

12.3          
The Party desiring arbitration shall appoint one arbitrator, and shall notify
the other Party of such appointment, and the other Party shall, within five
business days after receiving such notice, appoint an arbitrator, and the two
arbitrators so named, before proceeding to act, shall, within five business days
of the appointment of the last appointed arbitrator, unanimously agree on the
appointment of a third arbitrator, to act with them and be chairperson of the
arbitration herein provided for. If the other Party shall fail to appoint an
arbitrator within five business days after receiving notice of the appointment
of the first arbitrator, and if the two arbitrators appointed by the Parties
shall be unable to agree on the appointment of the chairperson, the chairperson
shall be appointed in accordance with the provisions of the British Columbia
Arbitration Act (the “Arbitration Act”). Except as specifically
otherwise provided in this section, the arbitration herein provided for shall be
conducted in accordance with such Arbitration Act. The chairperson, or in the
case where only one arbitrator is appointed, the single arbitrator, shall fix a
time and place in Greater Vancouver, British Columbia, for the purpose of
hearing the evidence and representations of the Parties, and the chairperson
shall preside over the arbitration and determine all questions of procedure not
provided for by the Arbitration Act or this section. After hearing any evidence
and representations that the Parties may submit, the single arbitrator, or the
arbitrators, as the case may be, shall make an award and reduce the same to
writing, and deliver one copy thereof to each of the Parties. The expense of the
arbitration shall be paid as specified in the award. 

Award 

12.4          
The Parties agree that the award of a majority of the arbitrators, or in the
case of a single arbitrator, of such arbitrator, shall be final and binding upon
each of them. 

- 20 - 

Article 13 
OTHER PROVISIONS

Waivers and Amendments 

13.1          
This Agreement may be amended, modified, superseded, cancelled, renewed or
extended, only by a written agreement between the Parties. Failure or delay by
either Party to enforce compliance with any term or condition of this Agreement
shall not constitute a waiver of such term or condition. 

No Representation or Claims 

13.2          
The Executive agrees that the Executive has not been induced to enter into this
Agreement by reason of any statement, representation, understanding or promise
not expressly set out in this Agreement. The Executive has no claim against the
Company arising from any Services provided by the Executive to the Company in
any capacity prior to the Effective Date of this Agreement. 

Governing Law 

13.3          
The situs of this Agreement is Vancouver, British Columbia, Canada, and for all
purposes this Agreement will be governed exclusively by and construed and
enforced in accordance with the laws prevailing in the Province of British
Columbia, Canada, and the federal laws of Canada applicable thereto. 

Notices 

13.4          
Any notice or other communication or writing required or permitted to be given
under this Agreement or for the purposes of this Agreement will be in writing
and will be sufficiently given if delivered personally, or if transmitted by
facsimile transmission (with original to follow by mail) or other form of
recorded communication, tested prior to transmission, to: 

	 	(a) 	if to the Company: 
	 	  	  	  
	 	  	Electrameccanica Vehicles Corp.

	 	  	102 East First Avenue, Vancouver,
      British Columbia, Canada, V5T 1A4 
	 	  	Attention: 	President and CEO 
	 	  	Phone: 	(604) 428-7656 
	 	  	E-mail: 	jerrykroll@me.com; 
	 	  	  	  
	 	  	with a copy to counsel for the
      Company: 
	 	  	  	  
	 	  	McMillan LLP 
	 	  	Suite 1500, 1055 West Georgia Street,
      Vancouver, British Columbia, Canada, 
	 	  	V6E 4N7 	  
	 	  	Attention: 	Thomas J. Deutsch 
	 	  	Phone: 	(604) 691-7445 
	 	  	Fax: 	(604) 893-2679 
	 	  	E-mail: 	thomas.deutsch@mcmillan.ca; and
  

- 21 - 

	 	(b) 	if to the Executive: 
	 	  	  	  
	 	  	603 – 2180 West 38th
      Avenue, Vancouver, British Columbia, Canada, V6M 
	 	  	Phone: 	(604) 616-5246 
	 	  	E-mail: 	mw.2112@hotmail.com; 

or to such other address as the Party to whom such notice is to
be given will have last notified the Party giving the same in the manner
provided in this section. Any notice so delivered will be deemed to have been
given and received on the day it is so delivered at such address; provided that
such day is not a Business Day (as herein defined) then the notice will be
deemed to have been given and received on the Business Day next following the
day it is so delivered. Any notice so transmitted by facsimile transmission or
other form of recorded communication will be deemed to have been given and
received on the day of its confirmed transmission (as confirmed by the
transmitting medium), provided that if such day is not a Business Day then the
notice will be deemed to have been given and received on the Business Day next
following such day. “Business Day” means any day that is not a Saturday,
Sunday or civic or statutory holiday in the Province of British Columbia,
Canada. 

Assignment 

13.5          
The Executive may not assign this Agreement or any right or obligation under it.

Severability 

13.6          
If any provision of this Agreement is determined to be invalid or unenforceable
in whole or in part, such invalidity or unenforceability shall attach only to
such provision or part thereof and the remaining part of such provision and all
other provisions hereof shall continue in full force and effect. The Parties
agree to negotiate in good faith to agree to a substitute provision which shall
be as close as possible to the intention of any invalid or unenforceable
provision as may be valid or enforceable.

Independent Legal Advice 

13.7          
The Executive acknowledges that the Company has recommended that the Executive
obtain independent legal advice with respect to this Agreement, and that the
Executive has had a reasonable opportunity to do so prior to executing this
Agreement. 

Force Majeure 

13.8          
If either Party is at any time either during this Agreement or thereafter
prevented or delayed in complying with any provisions of this Agreement by
reason of strikes, walk-outs, labour shortages, power shortages, fires, wars,
acts of God, earthquakes, storms, floods, explosions, accidents, protests or
demonstrations by environmental lobbyists or native rights groups, delays in
transportation, breakdown of machinery, inability to obtain necessary materials
in the open market, unavailability of equipment, governmental regulations
restricting normal operations, shipping delays or any other reason or reasons
beyond the control of that Party, then the time limited for the performance by
that Party of its respective obligations hereunder shall be extended by a period
of time equal in length to the period of each such prevention or delay. A Party
shall within three calendar days give notice to the other Party of each event of
force majeure under this section, and upon cessation of such event shall furnish
the other Party with notice of that event together with particulars of the
number of days by which the obligations of that Party hereunder have been
extended by virtue of such event of force majeure and all preceding events of
force majeure. 

- 22 - 

Time of the essence 

13.9          
Time will be of the essence of this Agreement. 

Enurement 

13.10          
This Agreement will enure to the benefit of and will be binding upon the Parties
and their respective heirs, executors, administrators and assigns. 

Further assurances 

13.11          
The Parties will from time to time after the execution of this Agreement make,
do, execute or cause or permit to be made, done or executed, all such further
and other acts, deeds, things, devices and assurances in law whatsoever as may
be required to carry out the true intention and to give full force and effect to
this Agreement. 

No partnership or agency 

13.12          
The Parties have not created a partnership and nothing contained in this
Agreement shall in any manner whatsoever constitute any Party the partner, agent
or legal representative of the other Parties, nor create any fiduciary
relationship between them for any purpose whatsoever. 

Personal Information 

13.13          
The Executive acknowledges that the Company is obligated to comply with the
British Columbia Personal Information Protection Act and with any other
applicable legislation governing the collection, use, storage and disclosure of
personal information. The Executive agrees to comply with all Company personal
information protection policies and with other policies, controls and practices
as they may exist, from time to time, in ensuring that the Executive and the
Company engage only in lawful collection, storage, use and disclosure of
personal information. 

Captions 

13.14          
The headings, captions, Article, section and subsection numbers appearing in
this Agreement are inserted for convenience of reference only and shall in no
way define, limit, construe or describe the scope or intent of this Agreement
nor in any way affect this Agreement. 

Counterparts 

13.15          
This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, and all of which together shall constitute one and the
same instrument. 

[Rest of page left intentionally blank. Signature page
follows.] 

- 23 - 

IN WITNESS WHEREOF the Parties have hereunto set their
respective hands and seals as at the Effective Date as hereinabove determined.

	The COMMON SEAL of 	) 	  
	ELECTRAMECCANICA 	) 	  
	VEHICLES CORP., 	) 	  
	the Company herein, was hereunto affixed 	) 	  
	in the presence of: 	) 	(C/S) 
	  	) 	  
	  	) 	  
	   
                     /s/ Jerry Kroll 	) 	  
	Authorized Signatory 	) 	  
	  	  	  
	SIGNED, SEALED and DELIVERED by 	) 	  
	MARK WEST, 	) 	  
	the Executive herein, in the presence of: 	) 	  
	  	) 	  
	  	) 	  
	   
                     /s/ Christopher
      Koch 	) 	  
	Witness Signature 	) 	/s/
      Mark West 
	  	) 	       MARK WEST
    
	  	) 	  
	Witness Address 	) 	  
	  	) 	  
	Christopher Koch, Director of Sales for EMV) 	 	  
	Witness Name and Occupation 	)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}]]