Document:

riii_ex102.htm

EXHIBIT 10.2
  
  
 SECURITIES PURCHASE AGREEMENT
  
 This SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of August 13, 2021, by and between RENAVOTIO INC., a Nevada corporation, with headquarters located at 601 South Boulder Avenue, Suite 600, Tulsa, Oklahoma 74119 (the “Company”), and GS CAPITAL PARTNERS, LLC, a New York limited liability company, with its address at 30 Washington Street, Suite 5L, Brooklyn, NY 11201 (the “Buyer”).
  
 WHEREAS:
  
 A. The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”);
  
 B. Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement an Promissory Note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of US$115,000.00 (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), convertible into shares of common stock, $0.001 par value per share, of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note;
  
 C. The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of the Note as is set forth immediately below its name on the signature pages hereto; and
  
 NOW THEREFORE, the Company and the Buyer hereby agree as follows:
  
 1. PURCHASE AND SALE OF NOTE.
  
 a. Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages hereto.
  
 b. Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase Price.
  
 	 
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 c. Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 5 and Section 6 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall be 12:00 noon, Eastern Standard Time on or about August 13, 2021, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.
  
 2. REPRESENTATIONS AND WARRANTIES OF THE BUYER. The Buyer represents and warrants to the Company that:
  
 a. Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note (including, without limitation, such additional shares of Common Stock, if any, as are issuable (i) on account of interest on the Note (ii) as a result of the events described in Sections 1.3 and 1.4(g) of the Note or (iii) in payment of the Standard Liquidated Damages Amount (asdefined in Section 2(f) below) pursuant to this Agreement, such shares of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.
  
 b. Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”).
  
 c. Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.
  
 d. Information. The Buyer and its advisors, if any, have been, and for so long as the Note remains outstanding will continue to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for so long as the Note remains outstanding will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's representations and warranties made herein.
  
 	 
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 e. Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Securities.
  
 f. Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost of the Company, not to exceed $300 per opinion, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within three (3) business days of delivery of the opinion to the Company, the Company shall pay to the Buyer liquidated damages of three and one half percent (3.5%) of the outstanding amount of the Note per day plus accrued and unpaid interest on the Note, prorated for partial months, in cash or shares at the option of the Buyer (“Standard Liquidated Damages Amount”). If the Buyer elects to be pay the Standard Liquidated Damages Amount in shares of Common Stock, such shares shall be issued at the Conversion Price (as defined in the Note) at the time of payment.
  
 	 
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 g. Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):
  
 “NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”
  
 The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline (as such term is defined in Section 1.4(d) of the Note), it will be considered an Event of Default pursuant to Section 3.2 of the Note.
  
 	 
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 h. Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.
  
 i. Residency. The Buyer is a resident of the jurisdiction as set forth in the Preamble of this Agreement.
  
 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to the Buyer that:
  
 a. Organization and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. The Company and each of its Subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which its ownership or use of property or the nature of the business conducted by it makes such qualification necessary except where the failure to be so qualified or in good standing would not have a Material Adverse Effect. “Material Adverse Effect” means any material adverse effect on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith. “Subsidiaries” means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any equity or other ownership interest.
  
 b. Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.
  
 	 
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 c. Capitalization. As of August 13, 2021, as disclosed in the SEC Documents (as defined herein) the authorized capital stock of the Company consists of 500,000,000 shares of Common Stock, of which 145,674,836 shares of common stock are issued and outstanding. The Company’s authorized and issued and outstanding preferred stock is set forth in the SEC Documents. Except as disclosed in the SEC Documents, no shares are reserved for issuance pursuant to the Company’s stock option plans, no shares are reserved for issuance pursuant to securities exercisable for, or convertible into or exchangeable for shares of Common Stock and an aggregate of approximately 10,000,000 shares are reserved for issuance upon conversion of the Note. As of the date hereof the Company has less than $800,000.00 of convertible debt outstanding. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable. No shares of capital stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens or encumbrances imposed through the actions or failure to act of the Company. Except as disclosed in the SEC Documents, as of the effective date of this Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities under the 1933 Act and (iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security holders) that will be triggered by the issuance of the Note or the Conversion Shares. The Company has filed in its SEC Documents true and correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate of Incorporation”), the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common Stock of the Company and the material rights of the holders thereof in respect thereto. The Company shall provide the Buyer with a written update of this representation signed by the Company’s Chief Executive Officer on behalf of the Company as of each Closing Date.
  
 d. Issuance of Shares. The issuance of the Note is duly authorized and, upon issuance in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.
  
 	 
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 e. Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.
  
 f. No Conflicts. The execution, delivery and performance of this Agreement and the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). Neither the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws or other organizational documents and neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with notice or lapse of time or both could put the Company or any of its Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries has taken any action or failed to take any action that would give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or by which any property or assets of the Company or any of its Subsidiaries is bound or affected, except for possible defaults as would not, individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any law, ordinance or regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required under the 1933 Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency, regulatory agency, self-regulatory organization or stock market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement, the Note in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with the terms hereof and to issue the Conversion Shares upon conversion of the Note. All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the Over-the-Counter Bulletin Board (the “OTCBB”), the OTCQB or any similar quotation system, and does not reasonably anticipate that the Common Stock will be delisted by the OTCBB, the OTCQB or any similar quotation system, in the foreseeable future nor are the Company's securities “chilled” by DTC. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.
  
 	 
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 g. SEC Documents; Financial Statements. The Company has timely filed all quarterly and annual reports required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”). The Company has delivered to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents, and except as such Documents are available EDGAR filings on the SEC’s sec.gov website. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof). As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently applied, during the periods involved and fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the financial statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to September 30, 2016, and (ii) obligations under contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting principles to be reflected in such financial statements, which, individually or in the aggregate, are not material to the financial condition or operating results of the Company. The Company is subject to the reporting requirements of the 1934 Act. For the avoidance of doubt, filing of the documents required in this Section 3(g) via the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”) shall satisfy all delivery requirements of this Section 3(g).
  
 h. Absence of Certain Changes. Since August 13, 2021, there has been no material adverse change and no material adverse development in the assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.
  
 	 
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 i. Absence of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such, that could have a Material Adverse Effect. Schedule 3(i) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its Subsidiaries, without regard to whether it would have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.
  
 j. Patents, Copyrights, etc. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to use all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service marks, service names, trade names and copyrights (“Intellectual Property”) necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future). Except as disclosed in the SEC Documents, there is no claim or action by any person pertaining to, or proceeding pending, or to the Company’s knowledge threatened, which challenges the right of the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future); to the best of the Company’s knowledge, the Company’s or its Subsidiaries’ current and intended products, services and processes do not infringe on any Intellectual Property or other rights held by any person; and the Company is unaware of any facts or circumstances which might give rise to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of their Intellectual Property.
  
 k. No Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse Effect.
  
 l. Tax Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. The Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any foreign, federal, state or local tax. None of the Company’s tax returns is presently being audited by any taxing authority.
  
 	 
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 m. Certain Transactions. Except as disclosed in the Company’s SEC Documents and/or for arm’s length transactions pursuant to which the Company or any of its Subsidiaries makes payments in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could obtain from third parties and other than the grant of stock options disclosed on Schedule 3(c), none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.
  
 n. Disclosure. All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement and provided to the Buyer pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby is true and correct in all material respects and the Company has not omitted to state any material fact necessary in order to make the statements made herein or therein, in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under the 1934 Act are being incorporated into an effective registration statement filed by the Company under the 1933 Act).
  
 o. Acknowledgment Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.
  
 	 
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 p. No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its securities.
  
 q. Brokers. Except for the Registered Broker Dealer Fee (as defined in section 4(p) herein) to Moody Capital Solutions, Inc., the placement agent and registered broker dealer in connection with the transactions contemplated hereunder, the Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby.
  
 r. Permits; Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations, licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”), and there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. Since September 30, 2016, neither the Company nor any of its Subsidiaries has received any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.
  
 s. Environmental Matters.
  
 (i) There are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the Company, no past or present violations of Environmental Laws (as defined below), releases of any material into the environment, actions, activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common law environmental liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or similar federal, state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice with respect to any of the foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection with any of the foregoing. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.
  
 	 
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 (ii) Other than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained on or about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials were released on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries during the period the property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course of the Company’s or any of its Subsidiaries’ business.
  
 (iii) There are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries that are not in compliance with applicable law.
  
 t. Title to Property. Except as disclosed in the SEC Documents the Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects or such as would not have a Material Adverse Effect. Any real property and facilities held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.
  
 u. Internal Accounting Controls. Except as disclosed in the SEC Documents the Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient, in the judgment of the Company’s board of directors, to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
  
 v. Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee or other person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company, used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.
  
 	 
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 w. Solvency. The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e., its assets have a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute and matured) and currently the Company has no information that would lead it to reasonably conclude that the Company would not, after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it intend to take any action that would impair its ability to, pay its debts from time to time incurred in connection therewith as such debts mature. The Company did not receive a qualified opinion from its auditors with respect to its most recent fiscal year end and, after giving effect to the transactions contemplated by this Agreement, does not anticipate or know of any basis upon which its auditors might issue a qualified opinion in respect of its current fiscal year. For the avoidance of doubt any disclosure of the Borrower’s ability to continue as a “going concern” shall not, by itself, be a violation of this Section 3(w).
  
 x. No Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment Company”). The Company is not controlled by an Investment Company.
  
 y. Removed and Reserved.
  
 z. Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended on the basis of being a “bad actor” as that term is established in the September 19, 2013 Small Entity Compliance Guide published by the SEC.
  
 aa. Shell Status. The Company represents that it is not a “shell” issuer and has never been a “shell” issuer, or that if it previously has been a “shell” issuer, that at least twelve (12) months have passed since the Company has reported Form 10 type information indicating that it is no longer a “shell” issuer. Further, the Company will instruct its counsel to either (i) write a 144- 3(a)(9) opinion to allow for salability of the Conversion Shares or (ii) accept such opinion from Holder’s counsel.
  
 bb. No-Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.
  
 	 
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 cc. Manipulation of Price. The Company has not, and to its knowledge no one acting on its behalf has: (i) taken, directly or indirectly, any action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of the Company.
  
 dd. Sarbanes-Oxley Act. The Company and each Subsidiary is in material compliance with all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof.
  
 ee. Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union. The Company believes that its and its Subsidiaries’ relations with their respective employees are good. No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s employment with the Company or any such Subsidiary. To the knowledge of the Company, no executive officer or other key employee of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non- competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
  
 ff. Breach of Representations and Warranties by the Company. The Company agrees that if the Company breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement and it being considered an Event of Default under Section 3.5 of the Note, the Company shall pay to the Buyer the Standard Liquidated Damages Amount in cash or in shares of Common Stock at the option of the Company, until such breach is cured. If the Company elects to pay the Standard Liquidated Damages Amounts in shares of Common Stock, such shares shall be issued at the Conversion Price at the time of payment.
  
 	 
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 4. COVENANTS.
  
 a. Best Efforts. The parties shall use their commercially reasonable best efforts to satisfy timely each of the conditions described in Section 7 and 8 of this Agreement.
  
 b. Removed and Reserved
  
 c. Use of Proceeds. The Company shall use the proceeds from the sale of the Note for inventory financing, working capital and other general corporate purposes and shall not, directly or indirectly, use such proceeds for any loan to or investment in any other corporation, partnership, enterprise or other person (except in connection with its currently existing direct or indirect Subsidiaries).
  
 d. Removed and Reserved.
  
 e. Financial Information. The Company agrees to send or make available the following reports to the Buyer until the Buyer transfers, assigns, or sells all of the Securities: (i) within ten (10) days after the filing with the SEC, a copy of its Annual Report on Form 10-K its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1) day after release, copies of all press releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously with the making available or giving to the shareholders of the Company, copies of any notices or other information the Company makes available or gives to such shareholders. For the avoidance of doubt, filing the documents required in (i) above via EDGAR or releasing any documents set forth in (ii) above via a recognized wire service shall satisfy the delivery requirements of this Section 4(e).
  
 f. Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCBB, OTCQB, OTC Pink or any equivalent replacement exchange, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq SmallCap”), the New York Stock Exchange (“NYSE”), or the NYSE MKT and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any material notices it receives from the OTCBB, OTCQB and any other exchanges or quotation systems on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such exchanges and quotation systems. The Company shall pay any and all fees and expenses in connection with satisfying its obligation under this Section 4(f).
  
 	 
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 g. Corporate Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCBB, OTCQB, OTC Pink, Nasdaq, NasdaqSmallCap, NYSE or AMEX.
  
 h. No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.
  
 i. Failure to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note, the Company shall comply with the quarterly and annual reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the 1934 Act.
  
 j. Trading Activities. Neither the Buyer nor its affiliates has an open short position (or other hedging or similar transactions) in the Common Stock of the Company and the Buyer agree that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions with respect to the Common Stock of the Company.
  
 k. Removed and Reserved.
  
 l. Legal Counsel Opinions. Upon the request of the Buyer from to time to time, the Company shall be responsible (at its cost) for promptly (within two (2) business days from the Buyer’s request) supplying to the Company’s transfer agent and the Buyer a customary legal opinion letter of its counsel (the “Legal Counsel Opinion”) to the effect that the sale of Conversion Shares by the Buyer or its affiliates, successors and assigns is exempt from the registration requirements of the 1933 Act pursuant to Rule 144 (provided the requirements of Rule 144 are satisfied and provided the Conversion Shares are not then registered under the 1933 Act for resale pursuant to an effective registration statement). Should the Company’s legal counsel fail for any reason to issue the Legal Counsel Opinion, the Buyer may (at the Company’s cost) secure another legal counsel to issue the Legal Counsel Opinion, and the Company will instruct its transfer agent to accept such opinion.
  
 m. Par Value. If the closing bid price at any time the Note is outstanding falls below $0.001 for five (5) consecutive days, the Company shall cause the par value of its Common Stock to be reduced to $0.0001 or less.
  
 	 
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 n. Breach of Covenants. The Company agrees that if the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of Default under Section 3.4 of the Note, the Company shall pay to the Buyer the Standard Liquidated Damages Amount in cash or in shares of Common Stock at the option of the Buyer, until such breach is cured, or with respect to Section 4(d) above, the Company shall pay to the Buyer the Standard Liquidated Damages Amount in cash or shares of Common Stock, at the option of the Buyer, upon each violation of such provision. If the Company elects to pay the Standard Liquidated Damages Amounts in shares of Common Stock, such shares shall be issued at the Conversion Price at the time of payment.
  
 o. Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent to issue certificates, registered in the name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time by the Buyer to the Company upon conversion of the Note in accordance with the terms thereof (the “Irrevocable Transfer Agent Instructions”). In the event that the Borrower proposes to replace its transfer agent, the Borrower shall provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower. Prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular date that can then be immediately sold, all such certificates shall bear the restrictive legend specified in Section 2(g) of this Agreement. The Company warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section, and stop transfer instructions to give effect to Section 2(f) hereof (in the case of the Conversion Shares, prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular date that can then be immediately sold), will be given by the Company to its transfer agent and that the Securities shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement and the Note; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any Conversion Shares issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement. Nothing in this Section shall affect in any way the Buyer’s obligations and agreement set forth in Section 2(g) hereof to comply with all applicable prospectus delivery requirements, if any, upon re-sale of the Securities. If the Buyer provides the Company, at the cost of the Company not to exceed $300, with (i) an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be made without registration under the 1933 Act and such sale or transfer is effected or (ii) the Buyer provides reasonable assurances that the Securities can be sold pursuant to Rule 144, the Company shall permit the transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified by the Buyer. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security being required.
  
 	 
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 p. Registered Broker Dealer Fee. The Company shall pay Moody Capital Solutions, Inc., a registered broker dealer, a cash fee in the amount of $5,000.00 wired at closing from the proceeds funded by the Buyer, and issue Moody Capital Solutions, Inc. 35,714 shares of Common Stock at closing, for placement agent services, diligence and compliance review on the transactions contemplated hereunder.
  
 q. Common Stock Purchase Warrant, Original Issue Discount. As additional consideration for the Buyer loaning the Purchase Price to the Company, the Company shall issue to the Buyer a Common Stock Purchase Warrant in the amount of 750,000 Warrant Shares (as defined in the Warrant) at an exercise price of $0.10 per share expiring five (5) years from the issuance date of the Warrant (the “Warrant”). Additionally, an original discount of $10,000.00 has been added to the Principal Amount of the Note and as such the Principal Amount of the Note is $115,000.00.
  
 5. CONDITIONS PRECEDENT TO THE COMPANY’S OBLIGATIONS TO SELL. The obligation of the Company hereunder to issue and sell the Note to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion:
  
 a. The Buyer shall have executed this Agreement and delivered the same to the Company.
  
 b. The Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.
  
 c. The representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.
  
 	 
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 d. No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.
  
 6. CONDITIONS PRECEDENT TO THE BUYER’S OBLIGATION TO PURCHASE. The obligation of the Buyer hereunder to purchase the Note at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:
  
 a. The Company shall have executed this Agreement and delivered the same to the Buyer.
  
 b. The Board of Directors of the Company shall have approved by Unanimous Written Consent (the “Consent”) the Issuance and transactions contemplated by this Agreement and the Note and the Company shall have delivered such fully executed Consent to the Buyer.
  
 c. The Company shall have delivered to the Buyer the duly executed Note (in such denominations as the Buyer shall request) and in accordance with Section 1(b) above.
  
 d. The Irrevocable Transfer Agent Instructions, in form and substance satisfactory to a majority-in-interest of the Buyer, shall have been delivered to and acknowledged in writing by the Company’s Transfer Agent and such fully executed Irrevocable Transfer Agent Instructions shall have been delivered to the Buyer.
  
 e. The representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Buyer shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including, but not limited to certificates with respect to the Company’s Certificate of Incorporation, By-laws and Board of Directors’ resolutions relating to the transactions contemplated hereby.
  
 	 
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 f. No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.
  
 g. No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act reporting obligations.
  
 h. The Conversion Shares shall have been authorized for quotation on the OTCBB, OTCQB, OTC Pink or any similar quotation system and trading in the Common Stock on the OTCBB, OTCQB or any similar quotation system shall not have been suspended by the SEC or the OTCBB, OTCQB, OTC Pink or any similar quotation system.
  
 i. The Buyer shall have received an officer’s certificate described in Section 3(c) above, and issued the Warrant.
  
 7. GOVERNING LAW; MISCELLANEOUS.
  
 a. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement, the Note or any other agreement, certificate, instrument or document contemplated hereby shall be brought only in the state courts of New York or in the federal courts located in the Southern District of the State of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.
  
 	 
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 b. Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.
  
 c. Construction; Headings. This Agreement shall be deemed to be jointly drafted by the Company and the Buyer and shall not be construed against any person as the drafter hereof. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.
  
 d. Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.
  
 e. Entire Agreement; Amendments. This Agreement, the Note and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.
  
 f. Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, email, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by email or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:
  
 	 
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 If to the Company, to:
  
 Renavotio Inc.
 601 South Boulder Ave. Suite 600
 Tulsa, OK 74119
  
 If to the Buyer, to:
  
 GS Capital Partners, LLC
 30 Washington Street Suite 5L
 Brooklyn, NY 11201
  
 Each party shall provide notice to the other party of any change in address.
  
 g. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other. Notwithstanding the foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act, without the consent of the Company.
  
 h. Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.
  
 i. Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder not withstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.
  
 j. Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
  
 	 
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 k. No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.
  
 l. Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.
  
 m. Publicity. The Company, and the Buyer shall have the right to review a reasonable period of time before issuance of any press releases, SEC, OTCQB or FINRA filings, or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of the Buyer, to make any press release or SEC, OTCQB (or other applicable trading market) or FINRA filings with respect to such transactions as is required by applicable law and regulations (although the Buyer shall be consulted by the Company in connection with any such press release prior to its release and shall be provided with a copy thereof and be given an opportunity to comment thereon).
  
 n. Indemnification. In consideration of the Buyer’s execution and delivery of this Agreement and acquiring the Securities hereunder, and in addition to all of the Company’s other obligations under this Agreement or the Note, the Company shall defend, protect, indemnify and hold harmless the Buyer and its stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in this Agreement or the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in this Agreement or the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby or (c) any cause of action, suit or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of this Agreement or the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, or (iii) the status of the Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by this Agreement. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible under applicable law.
  
 [signature page follows]
  
 	 
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 IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.
  
  
 	RENAVOTIO INC.	
	 	 	 
	By:	/s/ William Robinson	
	 Name: 
	William Robinson	 
	Title: 	Chief Executive Officer	 
	 	 	 
	 GS CAPITAL PARTNERS, LLC
	  

	  
	  
	  

	 By:
	 /s/ Gabe Sayegh
	  

	 Name: 
	 Gabe Sayegh
	  

	 Title:
	 Manager
	  

  
 AGGREGATE SUBSCRIPTION AMOUNT: 
  
 Aggregate Principal Amount of Note: US$115,000.00
  
 Purchase Price $115,0900 less $10,000 in Original Issue Discount less $5,000 in legal fees.
  
 	 
	24
	

	 

   
 Exhibit A
  
 Note
  
 See attached
  
 	 
	25Exhibit 4.1

 

		 	 

ACUITYADS HOLDINGS INC.

   

OMNIBUS LONG-TERM INCENTIVE PLAN

		 	 

 

     

     

    

 

		TABLE OF CONTENTS	

 

		 	Page

 

	HOLDINGS INC. OMNIBUS LONG-TERM INCENTIVE PLAN	1
	 	 
	ARTICLE 1 - DEFINITIONS	1

 

	 	Section 1.1 Definitions	1

 

	ARTICLE 2 - PURPOSE AND ADMINISTRATION OF THE PLAN; GRANTING OF AWARDS	5

 

	 	Section 2.1 Purpose of the Plan	5
	 	 	 
	 	Section 2.2 Implementation and Administration of the Plan	5
	 	 	 
	 	Section 2.3 Eligible Participants	6
	 	 	 
	 	Section 2.4 Shares Subject to the Plan	6
	 	 	 
	 	Section 2.5 Participation Limits	7

 

	ARTICLE 3 - OPTIONS	7

 

	 	Section 3.1 Nature of Options	7
	 	 	 
	 	Section 3.2 Option Awards	7
	 	 	 
	 	Section 3.3 Exercise Price	8
	 	 	 
	 	Section 3.4 Expiry Date; Blackout Period	8
	 	 	 
	 	Section 3.5 Option Agreement	8
	 	 	 
	 	Section 3.6 Exercise of Options	8
	 	 	 
	 	Section 3.7 Method of Exercise and Payment of Purchase Price	9
	 	 	 
	 	Section 3.8 Termination of Employment	10

 

	ARTICLE 4 - DEFERRED SHARE UNITS	10

 

	 	Section 4.1 Nature of DSUs	10
	 	 	 
	 	Section 4.2 DSU Awards	11
	 	 	 
	 	Section 4.3 Redemption of DSUs	11

 

	ARTICLE 5 - SHARE UNITS	12

 

	 	Section 5.1 Nature of Share Units	12
	 	 	 
	 	Section 5.2 Share Unit Awards	12
	 	 	 
	 	Section 5.3 Performance Criteria and Performance Period Applicable to PSU Awards	13
	 	 	 
	 	Section 5.4 Share Unit Vesting Determination Date	13

 

    -i-

     

    

 

TABLE OF CONTENTS

(continued)

 

		 	Page

 

	ARTICLE 6 - GENERAL CONDITIONS	13

 

	 	Section 6.1 General Conditions applicable to Awards	13
	 	 	 
	 	Section 6.2 Dividend Share Units	14
	 	 	 
	 	Section 6.3 Unfunded Plan	14

  

	ARTICLE 7 - ADJUSTMENTS AND AMENDMENTS	14

 

	 	Section 7.1 Adjustment to Shares Subject to Outstanding Awards	14
	 	 	 
	 	Section 7.2 Amendment or Discontinuance of the Plan	15
	 	 	 
	 	Section 7.3 Change of Control	16

 

	ARTICLE 8 - MISCELLANEOUS	16

 

	 	Section 8.1 Currency	16
	 	 	 
	 	Section 8.2 Compliance and Award Restrictions	16
	 	 	 
	 	Section 8.3 Use of an Administrative Agent and Trustee	17
	 	 	 
	 	Section 8.4 Tax Withholding	17
	 	 	 
	 	Section 8.5 Reorganization of the Company	18
	 	 	 
	 	Section 8.6 Governing Laws	18
	 	 	 
	 	Section 8.7 Successors and Assigns	18
	 	 	 
	 	Section 8.8 Severability	18
	 	 	 
	 	Section 8.9 No Liability	18
	 	 	 
	 	Section 8.10 Effective Date of the Plan	18

   

	ADDENDUM FOR U.S. PARTICIPANTS ACUITYADS HOLDINGS INC	19

 

		1.	Definitions	19

 

		4.	No Acceleration	20

 

		5.	Code Section 409A	20

 

	FORM OF OPTION AGREEMENT ACUITYADS HOLDINGS INC. OPTION AGREEMENT	21

 

	SCHEDULE “A” ELECTION TO EXERCISE STOCK OPTIONS 	23

 

	SCHEDULE “B” SURRENDER NOTICE	24

 

    -ii-

     

    

 

ACUITYADS
HOLDINGS INC.

OMNIBUS LONG-TERM INCENTIVE PLAN

 

AcuityAds
Holdings Inc. (the “Company”) hereby establishes an Omnibus Long-Term Incentive Plan for certain qualified Directors,
Officers, Employees and Consultants (each as defined herein), providing ongoing services to the Company and/or its Subsidiaries (as defined
herein) that can have a significant impact on the Company’s long- term results.

 

ARTICLE 1 - DEFINITIONS

 

		Section 1.1	Definitions.

 

Where used
herein or in any amendments hereto or in any communication required or permitted to be given hereunder, the following terms shall have
the following meanings, respectively, unless the context otherwise requires:

 

“10% Stock Option Plan” means
the amended and restated 10% rolling stock option plan of the Company;

 

“2019 DSU Plan” means the third amended and
restated deferred share unit plan of the Company;

 

“Affiliate” has the meaning given to this term in National Instrument
45-106 – Prospectus Exemptions;

 

“Associate”,
where used to indicate a relationship with a Participant, means (i) any partner of that Participant and (ii) the spouse of that Participant
and that Participant’s children, as well as that Participant’s relatives and that Participant’s spouse’s relatives,
if they share that Participant’s residence;

 

“Award
Agreement” means, individually or collectively, the Option Agreement, RSU Agreement, PSU Agreement, DSU Agreement and/or the
Employment Agreement, as the context requires;

 

“Awards” means
Options, RSUs, PSUs and/or DSUs granted to a Participant pursuant to the terms of the Plan;

 

“Black-Out Period”
means the period of time required during which, pursuant to any policies or determinations of the Company or applicable law, securities
of the Company may not be traded by Insiders or other specified persons;

 

“Board” means
the board of directors of the Company as constituted from time to time;

 

“Broker” has the meaning ascribed thereto in
Section 8.4(2)) hereof;

 

“Business
Day” means a day other than a Saturday, Sunday or statutory holiday, when banks are generally open for business in Toronto,
Ontario, Canada for the transaction of banking business;

 

“Cancellation”
has the meaning ascribed thereto in Section 2.4(1) hereof;

 

“Cash Equivalent” means:

 

		(a)	in the case of Share Units, the amount of money equal to the Market Value multiplied
by the number of vested Share Units in the Participant’s Account, net of any applicable taxes in accordance with Section 8.4, on
the Share Unit Settlement Date;

 

		(b)	in the case of DSU Awards, the amount of money equal to the Market Value multiplied
by the whole number of DSUs then recorded in the Participant’s Account which the Non-Employee Director requests to redeem pursuant
to the DSU Redemption Notice, net of any applicable taxes in accordance with Section 8.4, on the date the Company receives, or is deemed
to receive, the DSU Redemption Notice;

 

    1

     

    

 

“CCG Committee” means the Compensation
and Corporate Governance Committee of the Board;

 

“Change of Control” means unless the
Board determines otherwise, the happening, in a single transaction or in a series of related transactions, of any of the following events:

 

		(a)	any transaction (other than a transaction described in clause (b) below) pursuant
to which any person or group of persons acting jointly or in concert acquires the direct or indirect beneficial ownership of securities
of the Company representing 50% or more of the aggregate voting power of all of the Company’s then issued and outstanding securities
entitled to vote in the election of Directors of the Company, other than any such acquisition that occurs upon the exercise or settlement
of options or other securities granted by the Company under any of the Company’s equity incentive plans.

 

		(b)	there is consummated an arrangement, amalgamation, merger, consolidation or similar
transaction involving (directly or indirectly) the Company and, immediately after the consummation of such arrangement, amalgamation,
merger, consolidation or similar transaction, the shareholders of the Company immediately prior thereto do not beneficially own, directly
or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving
or resulting entity in such amalgamation, merger, consolidation or similar transaction or (B) more than 50% of the combined outstanding
voting power of the parent of the surviving or resulting entity in such arrangement, amalgamation merger, consolidation or similar transaction,
in each case in substantially the same proportions as their beneficial ownership of the outstanding voting securities of the Company immediately
prior to such transaction;

 

		(c)	(A) the sale, lease, exchange, license or other disposition of all or substantially
all of the Company’s assets to a person other than a person that was an Affiliate of the Company at the time of such sale, lease,
exchange, license or other disposition or (B) a sale, lease, exchange, license or other disposition to an entity, more than fifty percent
(50%) of the combined voting power of the voting securities of which are beneficially owned by shareholders of the Company in substantially
the same proportions as their beneficial ownership of the outstanding voting securities of the Company immediately prior to such sale,
lease, exchange, license or other disposition;

 

		(d)	the passing of a resolution by the Board or shareholders of the Company to substantially
liquidate the assets of the Company or wind up the Company’s business or significantly rearrange its affairs in one or more transactions
or series of transactions or the commencement of proceedings for such a liquidation, winding-up or re-arrangement (except where such re-arrangement
is part of a bona fide reorganization of the Company in circumstances where the business of the Company is continued and the shareholdings
remain substantially the same following the re-arrangement);

 

		(e)	individuals who, on the Effective Date, are members of the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment
or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the
Incumbent Board then still in office, such new member will, for purposes of the Plan, be considered as a member of the Incumbent Board;
or

 

		(f)	any other matter determined by the Board to be a Change of Control.

 

“Code” means the U.S. Internal Revenue
Code of 1986, as amended from time to time and the Treasury Regulations promulgated thereunder;

 

“Code of Ethics” means any code of ethics
adopted by the Company, as modified from time to time;

 

“Company” means
AcuityAds Holdings Inc., a Company existing under the Canada Business Corporations Act;

 

“Consultant” has the meaning given to that
term in National Instrument 45-106 – Prospectus Exemptions;

 

    2

     

    

 

“Director” means a director of the Company;

 

“Dividend Share Units” has the meaning
ascribed thereto in Section 6.2 hereof;

 

“DSU” means a deferred share unit,
which is a bookkeeping entry equivalent in value to a Share credited to a Participant’s Account in accordance with Article 4 hereof;

 

“DSU Agreement” means a written
notice from the Company to a Participant evidencing the grant of DSUs and the terms and conditions thereof, in such form as the Plan Administrator
may approve from time to time;

 

“DSU Redemption Notice”
has the meaning ascribed thereto in Section 4.3(1) hereof;

 

“Eligible Participants” has the meaning ascribed thereto
in Section 2.3(1) hereof;

 

“Employee” has the meaning given to that
term in National Instrument 45-106 – Prospectus Exemptions;

 

“Employment Agreement”
means, with respect to any Participant, any written employment agreement between the Company or a Subsidiary and such Participant;

 

“Exercise Notice” means a notice in
writing signed by a Participant and stating the Participant’s intention to exercise or settle a particular Award, if applicable;

 

“Exercise Price” has the meaning
ascribed thereto in Section 3.3 hereof;

 

“Expiry Date” has the meaning ascribed thereto in Section 3.4 hereof;

 

“Insider”
has the meaning given to the term “reporting insider” in National Instrument 55-104 – Insider Reporting Requirements
and Exemptions and the TSX Company Manual in respect of the rules governing security-based compensation arrangements, as amended from
time to time;

 

“Management Corporation
Employee” means an individual employed by a Person providing management services to the Company or to a Related Entity of the
Company, which are required for the ongoing successful operation of the business enterprise of the Company, but excluding a Person engaged
in investor relations activities;

 

“Market Value”
means at any date when the market value of Shares of the Company is to be determined, the closing price of the Shares on the trading day
prior to such date on the TSX, or, if the Shares are not listed on the TSX at the relevant time, such other stock exchange upon which
the Shares are then listed, or if the Shares of the Company are not listed on any stock exchange, the value as is determined solely by
the Plan Administrator, acting reasonably and in good faith based on the reasonable application of a reasonable valuation method not inconsistent
with Section 409A of the Code or Canadian tax law;

 

“Non-Employee Directors”
means members of the Board who, at the time of execution of an Award Agreement, if applicable, and at all times thereafter while they
continue to serve as a member of the Board, are not Officers or Employees;

 

“Officer” means
an officer of the Company or a Management Corporation Employee, and for the purposes of the Plan includes officers of any Related Entity
of the Company;

 

“Option”
means an option granted by the Company to a Participant entitling such Participant to acquire a one Share from treasury at the Exercise
Price, but subject to the provisions hereof;

 

“Option Agreement”
means a written notice from the Company to a Participant evidencing the grant of Options and the terms and conditions thereof, substantially
in the form set out in Appendix “A”, or such other form as the Plan Administrator may approve from time to time;

 

    3

     

    

 

“Participants”
means Eligible Participants that are granted Awards under the Plan;

 

“Participant’s
Account” means an account maintained to reflect each Participant’s participation in RSUs, PSUs and/or DSUs under the Plan;

 

“Performance
Criteria” means criteria established by the Plan Administrator which, without limitation, may include criteria based on the
Participant’s personal performance, the financial performance of the Company and/or of its Subsidiaries and/or achievement of corporate
goals and strategic initiatives, and that may be used to determine the vesting of the Awards, when applicable;

 

“Performance Period”
means the period determined by the Plan Administrator pursuant to Section 5.3 hereof;

 

“Person”
means an individual, corporation, company, cooperative, partnership, trust, unincorporated association, entity with juridical personality
or governmental authority or body, and pronouns which refer to a Person shall have a similarly extended meaning;

 

“Plan” means this
Omnibus Long-Term Incentive Plan, as amended and restated from time to time;

 

“Plan Administrator”
means a Person determined by the Board, which will initially be the CCG Committee, or if the administration of this Plan has been delegated
by the Board to an equivalent committee.

 

“PSU” means
a right awarded to a Participant to receive a payment in the form of Shares (or the Cash Equivalent) as provided in Article 4 hereof and
subject to the terms and conditions of the Plan;

 

“PSU
Agreement” means a written notice from the Company to a Participant evidencing the grant of PSUs and the terms and conditions
thereof, substantially in the form as the Plan Administrator may approve from time to time;

 

“Related Entity”
has the meaning given to that term in National Instrument 45-106 – Prospectus Exemptions;

 

“RSU” means a restricted
share unit awarded to a Participant to receive a payment in the form of Shares (or the Cash Equivalent) as provided in Article 4 hereof
and subject to the terms and conditions of the Plan;

 

“RSU Agreement”
means a written notice from the Company to a Participant evidencing the grant of RSUs and the terms and conditions thereof, in the form
as the Plan Administrator may approve from time to time;

 

“Share Compensation Arrangement”
means the 10% Stock Option Plan, the 2019 DSU Plan, and any other stock option, employee stock purchase plan, long-term incentive plan
or any other compensation or incentive mechanism involving the issuance or potential issuance of Shares to one or more Directors, Officers,
Employees or Consultants. For greater certainty, a “Share Compensation Arrangement” does not include a security-based compensation
arrangement used as an inducement to person(s) or company(ies) not previously employed by and not previously an Insider of the Company;

 

“Shares” means
the common shares in the capital of the Company;

 

“Share Unit” means a RSU or PSU, as the context requires;

 

“Share Unit Settlement Notice” means
a notice by a Participant to the Company electing the desired form of settlement of vested RSUs or PSUs;

 

“Share Unit Vesting Determination
Date” has the meaning described thereto in Section 5.4 hereof;

 

    4

     

    

 

“Subsidiary”
means a Company, company, partnership or other body corporate that is controlled, directly or indirectly, by the Company;

 

“Surrender”
has the meaning ascribed thereto in Section 3.7(3);

 

“Surrender Notice” has the meaning ascribed thereto in Section
3.7(3);

 

“Tax Act” means the
Income Tax Act (Canada) and its regulations thereunder, as amended from time to time;

 

“Termination Date”
means (i) with respect to a Participant who is an Employee or Officer, such Participant’s last day of active employment and does
not include any period of statutory, reasonable or contractual notice or any period of deemed employment or salary continuance, (ii) with
respect to a Participant who is a Consultant, the date such Consultant ceases to provide services to the Company or a Subsidiary, and
(iii) with respect to a Participant who is a Non-Employee Director, the date such Person ceases to be a Director of the Company or Subsidiary,
and “Terminate” and “Terminated” have corresponding meanings.

 

“Trading Day” means
any day on which the TSX is opened for trading;

 

“transfer” includes
any sale, exchange, assignment, gift, bequest, disposition, mortgage, lien, charge, pledge, encumbrance, grant of security interest or
any arrangement by which possession, legal title or beneficial ownership passes from one Person to another, or to the same Person in a
different capacity, whether or not voluntary and whether or not for value, and any agreement to effect any of the foregoing and “transferred”,
 “transferring” and similar variations have corresponding meanings.

 

“TSX” means the Toronto
Stock Exchange; and

 

“U.S. Participant”
means any Participant who is a United States citizen or United States resident alien as defined for purposes of Section 7701(b)(1)(A)
of the Code or for whom an Award is otherwise subject to taxation under the Code.

 

ARTICLE 2 - PURPOSE AND ADMINISTRATION
OF THE PLAN; GRANTING OF AWARDS

 

		Section 2.1	Purpose of the Plan.

 

The purpose
of the Plan is to advance the interests of the Company by: (i) providing Eligible Participants with additional incentives; (ii) encouraging
share ownership by such Eligible Participants; (iii) increasing the proprietary interest of Eligible Participants in the success of the
Company; (iv) promoting growth and profitability of the Company; (v) encouraging Eligible Participants to take into account long-term
corporate performance; (vi) rewarding Eligible Participants for sustained contributions to the Company and/or significant performance
achievements of the Company; and (vii) enhancing the Company’s ability to attract, retain and motivate qualified Directors, Officers,
Employees and Consultants.

 

		Section 2.2	Implementation and Administration of the Plan.

 

		(1)	The Plan shall be administered and interpreted by the Plan Administrator or, to
the extent permitted by applicable law, the Board may from time to time assume or delegate to an equivalent compensation committee of
the Board all or any of the powers conferred on the Plan Administrator pursuant to this Plan, including the power to subdelegate to any
member(s) of any committee of the Board or any specified Officer(s) of the Company all or any of the powers delegated by the Board. In
such event, the committee or any subdelegate will exercise the powers delegated to it in the manner and on the terms authorized by the
delegating party. Any decision made or action taken by the committee or any subdelegate arising out of or in connection with the administration
or interpretation of this Plan in this context is final and conclusive and binding on the Company and all subsidiaries of the Company,
all Participants and all other Persons. If a committee or subdelegate is so appointed for this purpose, all references to the term “Plan
Administrator” will be deemed to be references to such committee
or subdelegate, except as may otherwise be determined by the Board.

 

    5

     

    

 

		(2)	Subject to the terms and conditions set forth in the Plan, the Plan Administrator
shall have the sole and absolute discretion to: (i) designate Participants; (ii) determine the type, size, and terms, and conditions of
Awards to be granted; (iii) determine the method by which an Award may be settled, exercised, canceled, forfeited, or suspended; (iv)
determine the circumstances under which the delivery of cash with respect to an Award may be deferred either automatically or at the Participant’s
or the Plan Administrator’s election; (v) interpret and administer, reconcile any inconsistency in, correct any defect in, and supply
any omission in the Plan and any Award granted under, the Plan; (vi) establish, amend, suspend, or waive any rules and regulations and
appoint such agents as the Plan Administrator shall deem appropriate for the proper administration of the Plan; (vii) accelerate the vesting,
delivery, or exercisability of, or payment for or lapse of restrictions on, or waive any condition in respect of, Awards; and (viii) make
any other determination and take any other action that the Plan Administrator deems necessary or desirable for the administration of the
Plan or to comply with any applicable law.

 

		(3)	No member of the Plan Administrator will be liable for any action or determination
taken or made in good faith in the administration, interpretation, construction or application of the Plan, any Award Agreement or other
document or any Awards granted pursuant to the Plan.

 

		(4)	The day-to-day administration of the Plan may be delegated to such Officers and
Employees as the Plan Administrator determines.

 

		(5)	Unless otherwise expressly provided in the Plan, all designations, determinations,
interpretations, and other decisions regarding the Plan or any Award or any documents evidencing any Award granted pursuant to the Plan
shall be within the sole discretion of the Plan Administrator, may be made at any time, and shall be final, conclusive, and binding upon
all persons or entities, including, without limitation, the Company, any Subsidiary, any Participant, any holder or beneficiary of any
Award, and any shareholder of the Company.

 

		Section 2.3	Eligible Participants.

 

		(1)	The Persons who shall be eligible to receive Options, RSUs and PSUs shall be the
Directors, Officers, Employees or Consultants, providing ongoing services to the Company and/or its Subsidiaries, and the Persons who
shall be eligible to receive DSUs shall be the Non-Employee Directors (collectively, “Eligible Participants”).

 

		(2)	Participation in the Plan shall be entirely voluntary and any decision not to participate
shall not affect an Eligible Participant’s relationship, employment or appointment with the Company or a Subsidiary.

 

		(3)	(3) Notwithstanding any express or implied term of the Plan to the contrary, the
granting of an Award pursuant to the Plan shall in no way be construed as a guarantee of employment or appointment by the Company or a
Subsidiary.

 

		Section 2.4	Shares Subject to the Plan.

 

		(1)	Subject to adjustment pursuant to provisions of Article 7 hereof, the total number
of Shares reserved and available for grant and issuance pursuant to Awards under the Plan or pursuant to awards under any other proposed
or established Share Compensation Arrangement shall not exceed fifteen percent (15%) of the total issued and outstanding Shares from time
to time or such other number as may be approved by the TSX and the shareholders of the Company from time to time. For the purposes of
this Section 2.4(1), in the event that the Company cancels or purchases to cancel any of its issued and outstanding Shares (“Cancellation”)
and as a result of such Cancellation, the Company exceeds the limit set out in this Section 2.4(1), no approval of the Company’s
shareholders will be required for the issuance of Shares on the exercise of any Options which were granted prior to such Cancellation.
The Plan is considered an “evergreen” plan, since the Shares covered by Awards which have been exercised shall be available
for subsequent grants under the Plan and the number of Awards available to grant increases as the number of issued and outstanding Shares
increases.

 

    6

     

    

 

		(2)	For greater certainty, any issuance from treasury by the Company that is or was
issued in reliance upon an exemption under applicable stock exchange rules applicable to security based compensation arrangements used
as an inducement to person(s) or company(ies) not previously employed by and not previously an Insider of the Company shall not be included
in determining the maximum Shares reserved and available for grant and issuance under Section 2.4(1).

 

		(3)	Shares in respect of which an Award is exercised, granted under the Plan (or any
other Share Compensation Arrangement) but not exercised prior to the termination of such Award, not vested or settled prior to the termination
of such Award due to the expiration, termination, cancellation or lapse of such Award, or settled in cash in lieu of settlement in Shares,
shall, in each case, be available for Awards to be granted thereafter pursuant to the provisions of the Plan. All Shares issued from treasury
pursuant to the exercise or the vesting of the Awards granted under the Plan shall be so issued as fully paid and non-assessable Shares.

 

		Section 2.5	Participation Limits.

 

		(1)	Subject to adjustment pursuant to provisions of Article 7 hereof and unless requisite
shareholder approval has been obtained pursuant to the rules of the TSX (or unless permitted otherwise by the rules of the TSX):

 

		(a)	the number of Shares issuable to Insiders at any time of the Company pursuant to
all of the Company’s Share Compensation Arrangements shall not exceed 10% of the outstanding Shares on a non-diluted basis; however,
any Awards granted pursuant to the Plan, prior to the Participant becoming an Insider, shall be excluded for the purposes of the limits
set out in this Section 2.5(1);

 

		(b)	the number of Shares issued to Insiders of the Company, within any one-year period,
pursuant to all of the Company’s Share Compensation Arrangements, shall not exceed 10% of the outstanding Shares on a non-diluted
basis; however, any Awards granted pursuant to the Plan, prior to the Participant becoming an Insider, shall be excluded for the purposes
of the limits set out in this Section 2.5(1);

 

		(c)	the number of Shares which may be granted to any one person under the Plan and
other Share Compensation Arrangements, in any one-year period, shall not exceed 5% of the outstanding Shares calculated on the date of
the Award to such person;

 

		(d)	the number of Shares which may be granted to a Consultant under the Plan and other
Share Compensation Arrangements, in any one-year period, shall not exceed 2% of the outstanding Shares calculated on the date of the award
to such Consultant.

 

ARTICLE 3 - OPTIONS

 

		Section 3.1	Nature of Options.

 

An Option is an option granted by the
Company to a Participant entitling such Participant to acquire one Share from treasury at the Exercise Price, subject to the provisions
hereof.

 

		Section 3.2	Option Awards.

 

		(1)	The Plan Administrator shall, from time to time, in its sole discretion, (i) designate
the Eligible Participants who may receive Options under the Plan, (ii) determine the number of Options, if any, to be granted to each
Eligible Participant and the date or dates on which such Options shall be granted, (iii) determine the price per Share to be payable upon
the exercise of each such Option (the “Exercise Price”), (iv) determine the relevant vesting provisions (including Performance
Criteria, if applicable) and (v) determine the Expiry Date, the whole subject to the terms and conditions prescribed in the Plan, in any
Option Agreement and any applicable rules of the TSX (and any other stock exchange
on which the Shares are listed or posted for trading).

 

    7

     

    

 

		(2)	All Options granted herein shall vest in accordance with the terms of the Option
Agreement entered into in respect of such Options. In the absence of any other determination (including without limitation, in any employment
agreement or other agreement between the Participant and the Company), Options will become vested as follows:

 

		(a)	as to one-third on the first anniversary of the date of grant;

 

		(b)	as to an additional one-third on the second anniversary of the date of the grant; and

 

		(c)	as to the balance, on the third anniversary of the date of the grant.

 

		Section 3.3	Exercise Price.

 

The Exercise
Price for Shares that are the subject of any Option shall be fixed by the Plan Administrator when such Option is granted, but shall not
be less than the Market Value of such Shares at the time of the grant.

 

		Section 3.4	Expiry Date; Blackout Period.

 

Subject
to Section 7.2, each Option must be exercised no later than ten (10) years after the date the Option is granted or such shorter period
as set out in the Participant’s Option Agreement, at which time such Option will expire (the “Expiry Date”).
Notwithstanding any other provision of the Plan, each Option that would expire during or within ten (10) Business Days immediately following
a Black-Out Period shall expire on the date that is ten (10) Business Days immediately following the expiration of the Black-Out Period.
Where an Option will expire on a date that falls immediately after a Black-Out Period, and for greater certainty, not later than ten
(10) Business Days after the Black- Out Period, then the date such Option will expire will be automatically extended by such number of
days equal to ten (10) Business Days less the number of Business Days after the Black-Out Period that the Option expires.

 

		Section 3.5	Option Agreement.

 

Each Option
must be confirmed by an Option Agreement that sets forth the terms, conditions and limitations for each Option and may include, without
limitation, the applicable vesting and terms of the Options and the provisions applicable in the event employment or service terminates,
and shall contain such terms that may be considered necessary in order that the Option will comply with any provisions respecting options
in the income tax or other laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or
citizen or the rules of any regulatory body having jurisdiction over the Company.

 

		Section 3.6	Exercise of Options.

 

		(1)	Subject to the provisions of the Plan, a Participant shall be entitled to exercise
an Option granted to such Participant, subject to vesting limitations which may be imposed by the Plan Administrator at the time such
Option is granted and set out in the Option Agreement.

 

		(2)	Prior to its expiration or earlier termination in accordance with the Plan, each
Option shall be exercisable as to all or such part or parts of the optioned Shares and at such time or times and/or pursuant to the achievement
of such Performance Criteria and/or other vesting conditions as the Plan Administrator may determine in its sole discretion.

 

		(3)	No fractional Shares will be issued upon the exercise of Options granted under
the Plan and, accordingly, if a Participant would become entitled to a fractional Share upon the exercise of an Option, or from an adjustment
pursuant to Section 7.1, such Participant will only have the right to acquire the next lowest whole number of Shares, and no payment or
other adjustment will be made with respect to the fractional interest so disregarded.

 

    8

     

    

 

 

	Section 3.7	Method of Exercise and Payment of Purchase Price.

 

		(1)	Subject to the provisions of the Plan and the alternative exercise procedures
set out herein, an Option granted under the Plan may be exercisable (from time to time as provided in Section 3.6 hereof) by the Participant
(or by the liquidator, executor or administrator, as the case may be, of the estate of the Participant) by delivering an exercise notice
substantially in the form of Schedule “A” to the Option Agreement (an “Exercise Notice”) to the Company in the
form and manner determined by the Plan Administrator from time to time, together with a bank draft, certified cheque or other form of
payment acceptable to the Company in an amount equal to the aggregate Exercise Price of the Shares to be purchased pursuant to the exercise
of the Options and any applicable tax withholdings.

 

		(2)	Pursuant to the Exercise Notice and subject to the approval of the Plan Administrator,
a Participant may choose to undertake a “cashless exercise” with the assistance of a broker (the “Broker”)
in order to facilitate the exercise of such Participant’s Options. The “cashless exercise” procedure may include a sale
of such number of Shares as is necessary to raise an amount equal to the aggregate Exercise Price for all Options being exercised by that
Participant under an Exercise Notice and any applicable tax withholdings. Pursuant to the Exercise Notice, the Participant may authorize
the Broker to sell Shares on the open market by means of a short sale and forward the proceeds of such short sale to the Company to satisfy
the Exercise Price and any applicable tax withholdings, promptly following which the Company shall issue the Shares underlying the number
of Options as provided for in the Exercise Notice.

 

		(3)	In addition, in lieu of exercising any vested Option in the manner described in
this Section 3.7(1) or Section 3.7(2), and pursuant to the terms of this Section 3.7(3), a Participant may, by surrendering an Option
(“Surrender”) with a properly endorsed notice of Surrender to the Corporate Secretary of the Company, substantially
in the form of Schedule “B” to the Option Agreement (a “Surrender Notice”), elect to receive that number
of Shares calculated using the following formula, subject to acceptance of such Surrender Notice by the Plan Administrator and provided
that arrangements satisfactory to the Company have been made to pay any applicable withholding taxes:

 

X = (Y * (A-B)) / A

 

Where:

 

X = the number of Shares to be issued to the Participant
upon exercising such Options; provided that if the foregoing calculation results in a negative number, then no Shares shall be issued

 

Y = the number of Shares underlying the Options to be
Surrendered

 

A = the Market Value of the Shares as at the date of the Surrender

 

B = the Exercise Price of such Options

 

		(4)	No share certificates shall be issued and no person shall be registered in the
share register of the Company as the holder of Shares until actual receipt by the Company of an Exercise Notice and payment for the Shares
to be purchased.

 

		(5)	Upon the exercise of an Option pursuant to Section 3.7(1) or Section 3.7(3), the
Company shall, as soon as practicable after such exercise but no later than ten (10) Business Days following such exercise, forthwith
cause the transfer agent and registrar of the Shares to deliver to the Participant (or as the Participant may otherwise direct) such number
of Shares as the Participant shall have then paid for and as are specified in such Exercise Notice.

 

    9 

     

    

 

	Section 3.8	Termination of Employment.

 

		(1)	Subject to a written Employment Agreement of a Participant or Option Agreement
and as otherwise determined by the Plan Administrator, each Option shall be subject to the following conditions:

 

		(a)	Termination for Cause. Upon a Participant ceasing to be an Eligible Participant
for “cause”, all unexercised vested or unvested Options granted to such Participant shall terminate on the Termination Date
as specified in the notice of termination. For the purposes of the Plan, the determination by the Company that the Participant was discharged
for cause shall be binding on the Participant. Subject to the terms of the Employment Agreement, “cause” shall include, among
other things, gross misconduct, theft, fraud, breach of confidentiality or breach of the Company’s Code of Ethics and any reason
determined by the Company to be cause for termination.

 

		(b)	Resignation, Retirement and Termination other than for Cause. In the case
of a Participant ceasing to be an Eligible Participant due to such Participant’s resignation, retirement or termination other than
for “cause”, as applicable, subject to any later expiration dates determined by the Plan Administrator, all Options shall
expire on the earlier of ninety (90) days after the effective date of such Termination Date or the expiry date of such Option, to the
extent such Option was vested and exercisable by the Participant on the effective date of such Termination Date, and all unexercised unvested
Options granted to such Participant shall terminate on the effective date of such resignation, retirement or termination.

 

		(c)	Death or Long-term Disability. In the case of a Participant ceasing to
be an Eligible Participant due to death or long-term disability, as applicable, subject to any later expiration dates determined by the
Plan Administrator, all Options shall expire on the earlier of twelve (12) months after the effective date of such death or long-term
disability, or the expiry date of such Option, to the extent such Option was vested and exercisable by the Participant on the effective
date of such death or long-term disability, and all unexercised unvested Options granted to such Participant shall terminate on the effective
date of such death or long-term disability.

 

		(2)	For the avoidance of doubt, subject to applicable laws, no period of notice, if
any, or payment instead of notice that is given or that ought to have been given under applicable law, whether by statute, imposed by
a court or otherwise, in respect of such termination of employment that follows or is in respect of a period after the Participant’s
Termination Date will be considered as extending the Participant’s period of employment for the purposes of determining his entitlement
under the Plan.

 

		(3)	The Participant shall have no entitlement to damages or other compensation arising
from or related to not receiving any awards which would have settled or vested or accrued to the Participant after the Termination Date.

 

ARTICLE 4 - DEFERRED SHARE
UNITS

 

	Section 4.1	Nature of DSUs.

 

		(1)	A DSU is a unit granted to Non-Employee Directors representing the right to receive
a Share or the Cash Equivalent, subject to restrictions and conditions as the Plan Administrator may determine at the time of grant. Conditions
may be based on continuing service as a Non-Employee Director (or other service relationship) and/or achievement of pre-established vesting
and objectives.

 

		(2)	One DSU shall be equivalent in value to one Share. At the discretion of the Plan
Administrator, fractional DSUs will be permitted up to two decimal places, but shall be rounded down to the nearest whole number of Shares
at the time of settlement.

 

    10 

     

    

 

	Section 4.2	DSU Awards.

 

		(1)	Subject to the Company’s compensation policies determined by the Plan Administrator
from time to time, each Non-Employee Director may elect to receive all or a portion his or her annual director’s fee and / or committee
chair fees in the form of a grant of DSUs in each fiscal year, provided that such election must be made prior to the beginning of each
fiscal year (unless otherwise agreed to by the Plan Administrator). The number of DSUs shall be calculated as the amount of the Non-Employee
Director’s annual director’s fee elected to be paid by way of DSUs divided by the Market Value.

 

		(2)	Each DSU must be confirmed by a DSU Agreement that sets forth the terms, conditions
and limitations for each DSU and may include, without limitation, the vesting and terms of the DSUs and the provisions applicable in the
event employment or service terminates, and shall contain such terms that may be considered necessary in order that the DSU will comply
with any provisions respecting DSUs in the income tax or other laws in force in any country or jurisdiction of which the Participant may
from time to time be a resident or citizen or the rules of any regulatory body having jurisdiction over the Company.

 

		(3)	Any DSUs that are awarded to a Non-Employee Director who is a resident of Canada
or employed in Canada (each for purposes of the Tax Act) shall be structured so as to be considered to be a plan described in Section
7 of the Tax Act or to meet requirements of paragraph 6801(d) of the Income Tax Regulations adopted under the Tax Act (or any successor
to such provisions).

 

		(4)	Subject to vesting and other conditions and provisions set forth herein and in
the DSU Agreement, the Plan Administrator shall determine whether each DSU awarded to a Non-Employee Director shall entitle the Non- Employee
Director: (i) to receive one Share issued from treasury; (ii) to receive the Cash Equivalent of one Share; or (iii) to elect to receive
either one Share from treasury, the Cash Equivalent of one Share or a combination of cash and Shares.

 

	Section 4.3	Redemption of DSUs.

 

		(1)	Subject to Section 4.3(2), each Non-Employee Director shall be entitled to redeem
his or her DSUs during the period commencing on the Business Day immediately following the Termination Date and ending on the date that
is not later than December 15 of the year following the Termination Date, or a shorter such redemption period set out in the relevant
DSU Agreement, by providing a written notice of settlement to the Company setting out the number of DSUs to be settled and the particulars
regarding the registration of the Shares issuable upon settlement, if applicable (the “DSU Redemption Notice”). In
the event of the death of a Non-Employee Director, the Notice of Redemption shall be filed by the administrator or liquidator of the estate
of the Non-Employee Director.

 

		(2)	If a DSU Redemption Notice is not received by the Company on or before the 90th
day following the Termination Date, the Non-Employee Director shall be deemed to have delivered a DSU Redemption Notice on the 90th day
following the Termination Date and the Plan Administrator shall determine the number of DSUs to be settled by way of Shares, the Cash
Equivalent or a combination of Shares and the Cash Equivalent and delivered to the Non-Employee Director, administrator or liquidator
of the estate of the Non-Employee Director, as applicable.

 

		(3)	Subject to Section 8.4, the DSU Agreement and the terms of a DSU Redemption Notice
received, settlement of DSUs shall take place promptly following the Company’s receipt or deemed receipt of the DSU Redemption Notice
(the “DSU Redemption Date”) through:

 

		(a)	in the case of settlement of DSUs for Shares, delivery of a Share to the Non-Employee Director;

 

		(b)	in the case of settlement DSUs for their Cash Equivalent, delivery of bank draft,
certified cheque or other acceptable form of payment to the Non-Employee Director representing the Cash Equivalent; or

 

		(c)	in the case of settlement of DSUs for a combination of Shares and the Cash Equivalent,
a combination of (a) and (b) above.

 

    11 

     

    

 

		(4)	Notwithstanding the foregoing, if the applicable DSU Redemption Date for DSUs held
by any Non-Employee Director occurs during or within ten (10) Business Days of the expiration of a Black-Out Period applicable to such
Non-Employee Director, then the DSU Redemption Date for such DSUs shall be extended to the close of business on the tenth (10th) Business
Day following the expiration of the Black-Out Period.

 

ARTICLE 5 - SHARE UNITS

 

	Section 5.1	Nature of Share Units.

 

A Share
Unit is an Award entitling the recipient to acquire Shares, at such purchase price (which may be zero) as determined by the Plan Administrator,
subject to such restrictions and conditions as the Plan Administrator may determine at the time of grant. Conditions may be based on continuing
employment (or other service relationship) and/or achievement of pre-established performance goals and objectives.

 

	Section 5.2	Share Unit Awards.

 

		(1)	Subject to the provisions herein set forth and any shareholder or regulatory approval
which may be required, the Plan Administrator shall, from time to time, in its sole discretion, (i) designate the Eligible Participants
who may receive RSUs and/or PSUs under the Plan, (ii) fix the number of RSUs and/or PSUs, if any, to be granted to each Eligible Participant
and the date or dates on which such RSUs and/or PSUs shall be granted, and (iii) determine the relevant conditions and vesting provisions
(including, in the case of PSUs, the applicable Performance Period and Performance Criteria, if any) and restriction period of such RSUs
and/or PSUs, the whole subject to the terms and conditions prescribed in the Plan and in any RSU Agreement or PSU Agreement, as applicable.

 

		(2)	Each RSU must be confirmed by an RSU Agreement that sets forth the terms, conditions
and limitations for each RSU and may include, without limitation, the vesting and terms of the RSUs and the provisions applicable in the
event employment or service terminates, and shall contain such terms that may be considered necessary in order that the RSUs will comply
with any provisions respecting RSUs in the income tax or other laws in force in any country or jurisdiction of which the Participant may
from time to time be a resident or citizen or the rules of any regulatory body having jurisdiction over the Company.

 

		(3)	Each PSU must be confirmed by a PSU Agreement that sets forth the terms, conditions
and limitations for each PSU and may include, without limitation, the applicable Performance Period and Performance Criteria, vesting
and terms of the PSUs and the provisions applicable in the event employment or service terminates, and shall contain such terms that may
be considered necessary in order that the PSUs will comply with any provisions respecting PSUs in the income tax or other laws in force
in any country or jurisdiction of which the Participant may from time to time be a resident or citizen or the rules of any regulatory
body having jurisdiction over the Company.

 

		(4)	Any RSUs or PSUs that are awarded to an Eligible Participant who is a resident
of Canada or employed in Canada (each for purposes of the Tax Act) shall be structured so as to be considered to be a plan described in
section 7 of the Tax Act or in such other manner to ensure that such award is not a “salary deferral arrangement” as defined
in the Tax Act (or any successor to such provisions).

 

		(5)	Subject to the vesting and other conditions and provisions set forth herein and
in the RSU Agreement and/or PSU Agreement, the Plan Administrator shall determine whether each RSU and/or PSU awarded to a Participant
shall entitle the Participant: (i) to receive one Share issued from treasury; (ii) to receive the Cash Equivalent of one Share; or (iii)
to elect to receive either one Share from treasury, the Cash Equivalent of one Share or a combination of cash and Shares.

 

    12 

     

    

 

		(6)	The applicable settlement period in respect of a particular Share Unit shall be
determined by the Plan Administrator. Except as otherwise provided in the Award Agreement or any other provision of the Plan, all vested
RSUs and PSUs shall be settled as soon as practicable following the Share Unit Vesting Determination Date (as defined herein) but in all
cases prior to (i) three (3) years following the date of the grant of the Share Units, if such Share Units are settled by payment of Cash
Equivalent or through purchases by the Company on the Participant’s behalf on the open market, or (ii) ten (10) years following
the date of grant of Share Units, if such Share Units are settled by issuance of Shares from treasury. Following the receipt of such settlement,
the PSUs and RSUs so settled shall be of no value whatsoever and shall be removed from the Participant's Account.

 

	Section 5.3	Performance Criteria and Performance Period Applicable to PSU Awards.

 

		(1)	For each award of PSUs, the Plan Administrator shall establish the period in which
any Performance Criteria and other vesting conditions must be met in order for a Participant to be entitled to receive Shares in exchange
for all or a portion of the PSUs held by such Participant (the “Performance Period”).

 

		(2)	For each award of PSUs, the Plan Administrator shall establish any Performance
Criteria and other vesting conditions in order for a Participant to be entitled to receive Shares in exchange for his or her PSUs.

 

	Section 5.4	Share Unit Vesting Determination Date.

 

The
vesting determination date means the date on which the Plan Administrator determines if the Performance Criteria and/or other vesting
conditions with respect to a RSU and/or PSU have been met (the “Share Unit Vesting Determination Date”), and as a result,
establishes the number of RSUs and/or PSUs that become vested, if any.

 

ARTICLE 6 - GENERAL CONDITIONS

 

	Section 6.1	General Conditions applicable to Awards.

 

Each Award, as applicable, shall be subject to the following
conditions:

 

		(1)	Employment - The granting of an Award to a Participant shall not impose
upon the Company or a Subsidiary any obligation to retain the Participant in its employ in any capacity. For greater certainty, the granting
of Awards to a Participant shall not impose any obligation on the Company to grant any awards in the future nor shall it entitle the Participant
to receive future grants.

 

		(2)	Rights as a Shareholder - Neither the Participant nor such Participant’s
personal representatives or legatees shall have any rights whatsoever as shareholder in respect of any Shares covered by such Participant’s
Awards until the date of issuance of a share certificate to such Participant (or to the liquidator, executor or administrator, as the
case may be, of the estate of the Participant) or the entry of such person’s name on the share register for the Shares. Without
in any way limiting the generality of the foregoing, no adjustment shall be made for dividends or other rights for which the record date
is prior to the date such share certificate is issued or entry of such person’s name on the share register for the Shares.

 

		(3)	Conformity to Plan – In the event that an Award is granted or an Award
Agreement is executed which does not conform in all particulars with the provisions of the Plan, or purports to grant Awards on terms
different from those set out in the Plan, the Award or the grant of such Award shall not be in any way void or invalidated, but the Award
so granted will be adjusted to become, in all respects, in conformity with the Plan.

 

		(4)	Non-Transferability – Except as set forth herein, Awards are not transferable.
Awards may be exercised only by:

 

		(a)	the Participant to whom the Awards were granted;

 

    13 

     

    

 

		(b)	with the Plan Administrator’s prior written approval and subject to such
conditions as the Plan Administrator may stipulate, such Participant’s family or retirement savings trust or any registered retirement
savings plans or registered retirement income funds of which the Participant is and remains the annuitant;

 

		(c)	upon the Participant’s death, by the legal representative of the Participant’s estate; or

 

		(d)	upon the Participant’s incapacity, the legal representative having authority
to deal with the property of the Participant;

 

provided that any such legal representative
shall first deliver evidence satisfactory to the Company of entitlement to exercise any Award. A person exercising an Award may subscribe
for Shares only in the person’s own name or in the person’s capacity as a legal representative.

 

	Section 6.2	Dividend Share Units.

 

When dividends
(other than stock dividends) are paid on Shares, Participants shall receive additional DSUs, RSUs and/or PSUs, as applicable (“Dividend
Share Units”) as of the dividend payment date. The number of Dividend Share Units to be granted to the Participant shall be determined
by multiplying the aggregate number of DSUs, RSUs and/or PSUs, as applicable, held by the Participant on the relevant record date by the
amount of the dividend paid by the Company on each Share, and dividing the result by the Market Value on the dividend payment date, which
Dividend Share Units shall be in the form of DSUs, RSUs and/or PSUs, as applicable. Dividend Share Units granted to a Participant in accordance
with this Section 6.2 shall be subject to the same vesting conditions and settlement terms applicable to the related DSUs, RSUs and/or
PSUs in accordance with the respective Award Agreement.

 

	Section 6.3	Unfunded Plan.

 

Unless otherwise
determined by the Plan Administrator, the Plan shall be unfunded. To the extent any Participant or his or her estate holds any rights
by virtue of a grant of Awards under the Plan, such rights (unless otherwise determined by the Plan Administrator) shall be no greater
than the rights of an unsecured creditor of the Company.

 

ARTICLE 7 - ADJUSTMENTS
AND AMENDMENTS

 

	Section 7.1	Adjustment to Shares Subject to Outstanding Awards.

 

In the
event of any stock dividend, stock split, combination or exchange of Shares, merger, consolidation, spin-off or other distribution (other
than normal cash dividends) of the Company’s assets to shareholders, or any other change in the Shares, the Plan Administrator will
make such proportionate adjustments, if any, as the Plan Administrator in its discretion, subject to regulatory approval, may deem appropriate
to reflect such change (for the purpose of preserving the value of the Awards), with respect to (i) the number or kind of Shares or other
securities reserved for issuance pursuant to the Plan; and (ii) the number or kind of Shares or other securities subject to unexercised
Awards previously granted and the exercise price of those Awards provided, however, that no substitution or adjustment will obligate the
Company to issue or sell fractional Shares. The existence of any Awards does not affect in any way the right or power of the Company or
an Affiliate or any of their respective shareholders to make, authorize or determine any adjustment, recapitalization, reorganization
or any other change in the capital structure or the business of, or any amalgamation, merger or consolidation involving, to create or
issue any bonds, debentures, shares or other securities of, or to determine the rights and conditions attaching thereto, to effect the
dissolution or liquidation of or any sale or transfer of all or any part of the assets or the business of, or to effect any other corporate
act or proceeding relating to, whether of a similar character or otherwise, the Company or such Affiliate, whether or not any such action
would have an adverse effect on the Plan or any Award granted hereunder.

 

    14 

     

    

 

 

	Section 7.2	Amendment or Discontinuance of the Plan.

 

	(1)	The Plan Administrator may, in its sole discretion, suspend or terminate the Plan
at any time or from time to time and/or amend or revise the terms of the Plan or of any Award granted under the Plan and any agreement
relating thereto, provided that such suspension, termination, amendment, or revision shall:

 

		(a)	not adversely alter or impair any Award previously granted except as permitted by
the terms of the Plan or upon the consent of the applicable Participant(s); and

 

		(b)	be in compliance with applicable law and with the prior approval, if required,
of the shareholders of the Company and of the TSX or any other stock exchange upon which the Company has applied to list its Shares.

 

	(2)	If the Plan is terminated, the provisions of the Plan and any administrative guidelines
and other rules and regulations adopted by the Plan Administrator and in force on the date of termination will continue in effect as long
as any Award or any rights awarded or granted under the Plan remain outstanding and, notwithstanding the termination of the Plan, the
Plan Administrator will have the ability to make such amendments to the Plan or the Awards as they would have been entitled to make if
the Plan were still in effect.

 

	(3)	Subject to Section 7.2(2) the Plan Administrator may from time to time, in its
discretion and without the approval of shareholders, make changes to the Plan or any Award that do not require the approval of shareholders
under Section 7.2(4), which may include but are not limited to:

 

		(a)	a change to the vesting provisions of any Award granted under the Plan;

 

		(b)	a change to the provisions governing the effect of termination of a Participant’s
employment, contract or office;

 

		(c)	a change to accelerate the date on which any Award may be exercised under the Plan;

 

		(d)	an amendment of the Plan or an Award as necessary to comply with applicable law or
the requirements of any exchange upon which the securities of the Company are then listed or any other regulatory body having authority
over the Company, the Plan, the Participants or the shareholders of the Company;

 

		(e)	any amendment of a “housekeeping” nature, including without limitation
those made to clarify the meaning of an existing provision of the Plan or any agreement, correct or supplement any provision of the Plan
that is inconsistent with any other provision of the Plan or any agreement, correct any grammatical or typographical errors or amend the
definitions in the Plan regarding administration of the Plan;

 

		(f)	any amendment regarding the administration of the Plan;

 

		(g)	any other amendment, fundamental or otherwise, not requiring shareholder approval
under applicable laws or the applicable rules of the TSX or any other stock exchange upon which the Company has applied to list its Shares.

 

	(4)	Notwithstanding Section 7.2(3) or any other provision of the Plan, shareholder
approval is required for the following amendments to the Plan:

 

		(a)	any increase in the maximum number of Shares that may be issuable from treasury
pursuant to Awards granted under the Plan, other than an adjustment pursuant to Section 7.1;

 

    15 

     

    

 

		(b)	any reduction in the exercise price of an Award benefitting an Insider, except in
the case of an adjustment pursuant to Section 7.1;

 

		(c)	any extension of the Expiration Date of an Award benefitting an Insider, except in
case of an extension due to a Black-Out Period;

 

		(d)	any amendment to remove or to exceed the insider participation limit set out in Section 2.5(1); and

 

		(e)	any amendment to Section 7.2(3) or Section 7.2(4) of the Plan.

 

	Section 7.3	Change of Control.

 

	(1)	Notwithstanding anything else in the Plan or any Award Agreement, the Plan Administrator
has the right to provide (i) for the conversion or exchange of any outstanding Awards into or for awards, rights or other securities in
any entity participating in or resulting from a Change of Control or (ii) to provide that, following a Change of Control, a Participant
will be entitled to receive, on exercise or settlement of an award, the same consideration (including cash, securities or other property)
that the Participant would have received if it held an equivalent number of Shares on completion of the Change of Control, provided, in
each case, that the value of previously granted Awards and the rights of Participants are not materially adversely affected by any such
changes.

 

	(2)	The Plan Administrator may, in its sole discretion, accelerate the vesting and/or
the expiry date of any or all outstanding Awards, including conditionally, to provide that, notwithstanding the vesting provisions of
such Awards or any Award Agreement, such designated outstanding Awards shall be vested upon (or prior to) the completion of the Change
of Control. If, for any reason, the Change of Control does not occur within the contemplated time period, the acceleration of the vesting
of the Units shall be retracted and vesting shall instead revert to the manner provided in the Award Agreement.

 

	(3)	If the Plan Administrator has, pursuant to the provisions of Section 7.3(1) permitted
the conditional exercise of Awards in connection with a potential Change of Control, then the Plan Administrator will have the power,
in its sole discretion, to terminate, immediately following actual completion of such Change of Control and on such terms as it sees fit,
any Awards not exercised (including all vested and unvested Awards).

 

ARTICLE 8 - MISCELLANEOUS

 

	Section 8.1	Currency.

 

	 	Unless otherwise specifically provided, all references to dollars in the Plan are references to Canadian dollars.

 

	Section 8.2	Compliance and Award Restrictions.

 

	(1)	The Company’s obligation to issue and deliver Shares under any Award is
subject to: (i) the completion of such registration or other qualification of such Shares or obtaining approval of such regulatory authority
as the Company shall determine to be necessary or advisable in connection with the authorization, issuance or sale thereof; (ii) the admission
of such Shares to listing on any stock exchange on which such Shares may then be listed; and (iii) the receipt from the Participant of
such representations, agreements and undertakings as to future dealings in such Shares as the Company determines to be necessary or advisable
in order to safeguard against the violation of the securities laws of any jurisdiction. The Company shall take all reasonable steps to
obtain such approvals, registrations and qualifications as may be necessary for the issuance of such Shares in compliance with applicable
securities laws and for the listing of such Shares on any stock exchange on which such Shares are then listed.

 

	(2)	The Participant agrees to fully cooperate with the Company in doing all such things, including
                                   executing and delivering all such agreements, undertakings or other documents or furnishing all such information as is reasonably necessary to facilitate compliance by
the Company with such laws, rule and requirements, including all tax withholding and remittance obligations.

 

    16 

     

    

 

	(3)	No Awards will be granted where such grant is restricted pursuant to the terms
of any trading policies or other restrictions imposed by the Company.

 

	(4)	The Company is not obliged by any provision of the Plan or the grant of any Award
under the Plan to issue or sell Shares if, in the opinion of the Plan Administrator, such action would constitute a violation by the Company
or a Participant of any laws, rules and regulations or any condition of such approvals.

 

	(5)	If Shares cannot be issued to a Participant upon the exercise or settlement of
an Award due to legal or regulatory restrictions, the obligation of the Company to issue such Shares will terminate and, if applicable,
any funds paid to the Company in connection with the exercise of any Options will be returned to the applicable Participant as soon as
practicable.

 

	(6)	At the time a Participant ceased to hold Awards which are or may become exercisable,
the Participant ceases to be a Participant.

 

	(7)	Nothing contained herein will prevent the Board from adopting other or additional
compensation arrangements for the benefit of any Participant or any other Person, subject to any required regulatory, shareholder or other
approval.

 

	Section 8.3	Use of an Administrative Agent and Trustee.

 

The Plan Administrator may in its sole discretion appoint from time to time one or more entities to act as administrative agent to administer
the Awards granted under the Plan and to act as trustee to hold and administer the assets that may be held in respect of Awards granted
under the Plan, the whole in accordance with the terms and conditions determined by the Plan Administrator in its sole discretion. The
Company and the administrative agent will maintain records showing the number of Awards granted to each Participant under the Plan.

 

	Section 8.4	Tax Withholding.

 

	(1)	Notwithstanding any other provision of the Plan, all distributions, delivery of Shares or payments
                                   to a Participant (or to the liquidator, executor or administrator, as the case may be, of the estate of the Participant) under the
                                   Plan shall be made net of applicable source deductions. If the event giving rise to the withholding obligation involves an issuance
                                   or delivery of Shares, then, the withholding obligation may be satisfied by (a) having
                                   the Participant elect to have the appropriate number of such Shares sold by the Company, the Company’s transfer agent and
                                   registrar or any trustee appointed by the Company pursuant to Section 8.1 hereof, on behalf of and as agent for the Participant as
                                   soon as permissible and practicable, with the proceeds of such sale being delivered to the Company, which will in turn remit such
                                   amounts to the appropriate governmental authorities, or (b) any other mechanism as may be required or appropriate to conform with
                                   local tax and other rules. Notwithstanding any other provision of the Plan, the Company shall not be required to issue any Shares or
                                   make payments under this Plan until arrangements satisfactory to the Company have been made for payment of all applicable
                                   withholdings obligations.

 

	(2)	The sale of Shares by the Company, or by a Broker, under Section 8.4(1) or under
any other provision of the Plan will be made on the TSX (or any other stock exchange on which the Shares are listed or posted for trading).
The Participant consents to such sale and grants to the Company an irrevocable power of attorney to effect the sale of such Shares on
his behalf and acknowledges and agrees that (i) the number of Shares sold will be, at a minimum, sufficient to fund the withholding obligations
net of all selling costs, which costs are the responsibility of the Participant and which the Participant hereby authorizes to be deducted
from the proceeds of such sale; (ii) in effecting the sale of any such Shares, the Company or the Broker will exercise its sole judgment
as to the timing and the manner of sale and will not be obligated to seek or obtain a minimum price; and (iii) neither the Company nor
the Broker will be liable for any loss arising out of such sale of the Shares including any loss relating to the pricing,
manner or timing of the sales or any delay in transferring any Shares to a Participant or otherwise.

 

    17 

     

    

 

	(3)	The Participant further acknowledges that the sale price of the Shares will fluctuate
with the market price of the Shares and no assurance can be given that any particular price will be received upon any sale. The Company
makes no representation or warranty as to the future market value of the Shares or with respect to any income tax matters affecting the
Participant resulting from the grant or exercise of an Award and/or transactions in the Shares. Neither the Company, nor any of its Directors,
Officers, Employees, shareholders or agents will be liable for anything done or omitted to be done by such person or any other person
with respect to the price, time, quantity or other conditions and circumstances of the issuance of Shares under the Plan, with respect
to any fluctuations in the market price of Shares or in any other manner related to the Plan.

 

	(4)	Notwithstanding the first paragraph of this Section 8.4, the applicable tax withholdings
may be waived where the Participant directs in writing that a payment be made directly to the Participant’s registered retirement
savings plan in circumstances to which regulation 100(3) of the regulations of the Tax Act apply.

 

	Section 8.5	Reorganization of the Company.

 

The existence of any Awards shall not affect in any way the right or power of the Company or its shareholders to make or authorize any
adjustment, recapitalization, reorganization or other change in the
Company’s capital structure or its business, or any amalgamation, combination, merger or consolidation involving the Company
or to create or issue any bonds, debentures, shares or other securities of the Company or the rights and conditions attaching
thereto or to effect the dissolution or liquidation of the Company or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar nature or otherwise.

 

	Section 8.6	Governing Laws.

 

The Plan and all matters to which reference is made herein shall be governed by and interpreted in accordance with the laws of the Province
of Ontario and the federal laws of Canada applicable therein.

 

	Section 8.7	Successors and Assigns.

 

The Plan shall be binding on all successors and assigns of the Company and a Participant, including without limitation, the personal
legal representatives of a Participant, or any receiver or trustee in bankruptcy or representative of the Company’s or Participant’s
creditors.

 

	Section 8.8	Severability.

 

The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision
and any invalid or unenforceable provision shall be severed from the Plan.

 

	Section 8.9	No Liability.

 

No member of the Plan Administrator, the Board, the CCG Committee or any committee or other subdelegate shall be liable for any action
or determination taken or made in good faith in the administration, interpretation, construction or application of the Plan or any Award
granted hereunder.

 

	Section 8.10	Effective Date of the Plan.

 

The Plan was approved by the Board and shall take effect on l,
2020.

 

    18 

     

    

 

ADDENDUM FOR U.S. PARTICIPANTS

ACUITYADS HOLDINGS INC.

OMNIBUS LONG-TERM INCENTIVE
PLAN

 

The provisions of this Addendum
apply to Awards held by a U.S. Participant. All capitalized terms used in this Addendum but not defined in Section 1 below have the meanings
attributed to them in the Plan. The Section references set forth below match the Section references in the Plan. This Addendum shall have
no other effect on any other terms and provisions of the Plan except as set forth below.

 

	1.	Definitions

 

“cause” has
the meaning attributed under Section 3.8(1)(a) of the Plan, provided however that the Participant has provided the Company (or applicable
Subsidiary) with written notice of the acts or omissions constituting grounds for “cause” within 90 days of such act or omission
and the Company (or applicable Subsidiary) shall have failed to rectify, as determined by the Board acting reasonably, any such acts or
omissions within 30 days of the Company’s (or applicable Subsidiary’s) receipt of such notice.

 

“Separation from Service”
means, with respect to a U.S. Participant, any event that may qualify as a separation from service under Treasury Regulation Section 1.409A-1(h).
A U.S. Participant shall be deemed to have separated from service if he or she dies, retires, or otherwise has a termination of employment
as defined under Treasury Regulation Section 1.409A-1(h).

 

“Service Recipient”
means, with respect to a U.S. Participant holding a given Award under the Plan, the Company or one of its Affiliates by which the original
recipient of such Award is, or following a Separation from Service was most recently, principally employed or to which such original recipient
provides, or following a Separation from Service was most recently providing services, as applicable.

 

“Specified Employee”
has the meaning set forth in Treasury Regulation Section 1.409A-1(i).

 

	2.	Section 3.4 is deleted in its entirety and replaced with the following:

 

	 	“Subject to Section 7.2, each Option must be exercised no later than ten (10) years after the date the Option is granted or such
shorter period as set out in the Participant’s Option Agreement, at which time such Option will expire (the “Expiry Date”).
Notwithstanding any other provision of the Plan, each Option that would expire during or within ten (10) Business Days immediately following
a Black-Out Period shall expire on the date that is ten (10) Business Days immediately following the expiration of the Black-Out Period.”

 

	3.	Section 5.4 is deleted in its entirety and replaced with
                                    the following:

 

	 	“The vesting determination date means the date on which the Plan Administrator determines if the Performance Criteria and/or other
vesting conditions with respect to a RSU and/or PSU have been met (the “Share Unit Vesting Determination Date”), and as a
result, establishes the number of RSUs and/or PSUs that become vested, if any.

 

	 	Notwithstanding the foregoing, if the U.S. Participant vests in his or her Share Units pursuant to the Plan, within 30 days following
such U.S. Participant’s Separation from Service and subject to Section 8.4, the Company shall (i) issue from treasury the number
of Shares that is equal to the number of vested Share Units held by the U.S. Participant as at the U.S. Participant’s Separation
from Service (rounded down to the nearest whole number), as fully paid and non-assessable Shares, (ii) deliver to the U.S. Participant
an amount in cash (net of the applicable tax withholdings) equal to the number of vested Share Units held by the U.S. Participant as
at the U.S. Participant’s Separation from Service multiplied by the Market Value as at such date, or (iii) a combination of (i)
and (ii). Upon settlement of such Share Units, the corresponding number of Share Units shall be cancelled and the U.S. Participant shall
have no further rights, title or interest with respect thereto.”

 

    19 

     

    

 

	4.	No Acceleration

 

With respect to any Award held by
a U.S. Participant that is subject to Code Section 409A, the acceleration of the time or schedule of any payment except as provided under
the Plan (including this addendum) is prohibited, except as provided in regulations and administrative guidance promulgated under Code
Section 409A. Unless otherwise provided by the Plan Administrator in an Award Agreement or otherwise, in the event that the timing of
payments in respect of any Award (that would otherwise be considered “deferred compensation” subject to Code Section 409A)
would be accelerated upon the occurrence of (A) a Change of Control, no such acceleration shall be permitted unless the event giving rise
to the Change of Control satisfies the definition of a change in the ownership or effective control of a corporation, or a change in the
ownership of a substantial portion of the assets of a corporation pursuant to Code Section 409A; or (B) a “disability” or
 “incapacity”, no such acceleration shall be permitted unless the “disability” or “incapacity” also
satisfies the definition of “Disability” pursuant to Code Section 409A.

 

	5.	Code Section 409A

 

Each grant of Share Units to a
U.S. Participant is intended to be exempt from Code Section 409A and all provisions of the Plan shall be construed and interpreted in
a manner consistent with the requirements for avoiding taxes and penalties under Code Section 409A. However, to the extent any Award is
subject to Section 409A, then:

 

		(a)	All payments to be made upon a U.S. Participant’s Termination Date shall
only be made upon a Separation from Service.

 

		(b)	If on the date of the U.S. Participant’s Separation from Service the Company’s
shares (or shares of any other Company that is required to be aggregated with the Company in accordance with the requirements of Code
Section 409A) is publicly traded on an established securities market or otherwise and the U.S. Participant is a Specified Employee, then
the benefits payable to the Participant under the Plan that are payable due to the U.S. Participant’s Separation from Service shall
be postponed until the earlier of the date that is six months following the U.S. Participant’s Separation from Service or, if earlier,
the U.S. Participant’s death. Following any applicable six month delay, all such delayed payments will be paid in a single lump
sum on the earliest date permitted under Code Section 409A.

 

		(c)	Each of the payments that may be made in respect of any Award granted under the Plan
is designated as separate payments.

 

If any provision of the Plan contravenes
Code Section 409A or could cause the U.S. Participant to incur any tax, interest or penalties under Code Section 409A, the Plan Administrator
may, in its sole discretion and without the U.S. Participant’s consent, modify such provision to: (i) comply with, or avoid being
subject to, Code Section 409A, or to avoid incurring taxes, interest and penalties under Code Section 409A; and/or (ii) maintain, to the
maximum extent practicable, the original intent and economic benefit to the U.S. Participant of the applicable provision without materially
increasing the cost to the Company or contravening Code Section 409A. However, the Company shall have no obligation to modify the Plan
or any Share Unit and does not guarantee that Share Units will not be subject to taxes, interest and penalties under Code Section 409A.
Each Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect
of such Participant in connection with the Plan (including any taxes and penalties under Code Section 409A), and neither the Service Recipient,
the Company or any of its Affiliates shall have any obligation to indemnify or otherwise hold such Participant (or any beneficiary) harmless
from any or all of such taxes or penalties

 

    20 

     

    

 

 

APPENDIX “A”

 

FORM OF OPTION AGREEMENT
ACUITYADS HOLDINGS INC. OPTION AGREEMENT

 

This Stock
Option Agreement (the “Option Agreement”) is granted by AcuityAds Holdings Inc. (the “Company”),
in favour of the optionee named below (the “Optionee”) pursuant to and on the terms and subject to the conditions of
the Company’s Omnibus Long-Term Incentive Plan (the “Plan”). Capitalized terms used and not otherwise defined
in this Option Agreement shall have the meanings set forth in the Plan.

 

The terms of the option (the “Option”),
in addition to those terms set forth in the Plan, are as follows:

 

	1.	Optionee. The Optionee is ¬¬¬¬l
                                  and the address of the Optionee is currently l.

 

	2.	Number of Shares. The Optionee may purchase up to l
                               Shares of the Company (the “Option Shares”) pursuant to this Option, as and
                               to the extent that the Option vests and becomes exercisable as set forth in section 6 of this Option Agreement.

 

	3.	Exercise Price. The exercise price is Cdn $l
                                  per Option Share (the “Exercise Price”).

 

	4.	Date Option Granted. The Option was granted on l.

 

	5.	Expiry Date. The Option terminates on l.
                               (the “Expiry Date”).

 

	6.	Vesting. The Option to purchase Option Shares shall vest and become exercisable as follows:

 

l

 

	7.	Exercise of Options. In order to exercise the Option, the Optionee
shall notify the Company in the form annexed hereto as Schedule “A”, whereupon the Company shall use reasonable efforts to
cause the Optionee to receive a certificate representing the relevant number of fully paid and non-assessable Shares in the Company.

 

	8.	Transfer of Option. The Option is not-transferable or assignable except in accordance with
the Plan.

 

	9.	Inconsistency. This Option Agreement is subject to the terms and
conditions of the Plan and any Employment Agreement and, in the event of any inconsistency or contradiction between the terms of this
Option Agreement and the Plan or any Employment Agreement, the terms of the Employment Agreement shall govern.

 

	10.	Severability. Wherever possible, each provision of this Option Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Option Agreement is
held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other provision or any other jurisdiction, but this Option Agreement shall be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

	11.	Entire Agreement. This Option Agreement and the Plan embody the entire
agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or
among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

    21

     

    

 

	12.	Successors and Assigns. This Option Agreement shall bind and enure
to the benefit of the Optionee and the Company and their respective successors and permitted assigns.

 

	13.	Time of the Essence. Time shall be of the essence of this Agreement and of every part hereof.

 

	14.	Governing Law. This Agreement and the Option shall be governed by and
interpreted and enforced in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

 

	15.	Counterparts. This Option Agreement may be executed in separate counterparts,
each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 

By signing this Agreement, the Optionee acknowledges
that the Optionee has been provided a copy of and has read and understands the Plan and agrees to the terms and conditions of the Plan
and this Option Agreement.

 

IN WITNESS WHEREOF the parties hereof have executed this Option
Agreement as of the _________ day of ____________________, 20__ .

 

	 	ACUITYADS HOLDINGS INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	Witness	 	[Insert Participant’s Name]

 

    22

     

    

 

SCHEDULE “A”

ELECTION TO EXERCISE STOCK
OPTIONS

 

TO:         ACUITYADS HOLDINGS INC. (the “Company”)

 

The undersigned
Optionee hereby elects to exercise Options granted by the Company to the undersigned pursuant to an Award Agreement dated____________________,
20 under the Company’s Omnibus Long- Term Incentive Plan (the “Plan”), for the number Shares set forth below. Capitalized
terms used herein and not otherwise defined shall have the meanings given to them in the Plan.

 

	Number of Shares to be Acquired:	
	Exercise Price (per Share):	Cdn.$ 	 
	Aggregate Purchase Price:	Cdn.$ 	 
	Amount
    enclosed that is payable on account of any source deductions relating to this Option exercise (contact the Company for details of
    such amount):	 

     

    Cdn.$
	     

	 ̈ 
    Or check here if alternative arrangements have been made with the Company;	 

 

and hereby tenders a certified cheque,
bank draft or other form of payment confirmed as acceptable by the Company for such aggregate purchase price, and, if applicable, all
source seductions, and directs such Shares to be registered in the name of____________________________.

 

I hereby
agree to file or cause the Company to file on my behalf, on a timely basis, all insider reports and other reports that I may be required
to file under applicable securities laws. I understand that this request to exercise my Options is irrevocable.

 

DATED this____ day of______________,___.

 

	 	 
	 	Signature of Participant
	 	 
	 	 
	 	Name of Participant (Please
    Print)

 

    23

     

    

 

SCHEDULE “B”

SURRENDER NOTICE

 

TO: ACUITYADS HOLDINGS INC. (the “Company”)

 

The
undersigned Optionee hereby elects to surrender ______________ Options granted by the Company to the undersigned pursuant to an
Award Agreement dated______________________, 20 under the Company’s Omnibus Long-Term Incentive Plan (the “Plan”) in exchange
for Shares as calculated in accordance with Section 3.7(3) of the Plan. Capitalized terms used herein and not otherwise defined
shall have the meanings given to them in the Plan.

 

 

	Amount enclosed that is payable on account of any source deductions relating to this surrender of Options (contact the Company for details of such amount):	
     

     

    Cdn.$
	 

	 ̈ Or
    check here if alternative arrangements have been made with the Company	 

 

Please issue a certificate or certificates representing
the Shares in the name of____________________________________.

 

I hereby agree
to file or cause the Company to file on my behalf, on a timely basis, all insider reports and other reports that I may be required to
file under applicable securities laws. I understand that this request to exercise my Options is irrevocable.

 

DATED this___day of________________,_____.

 

	 	 
	 	Signature of Participant
	 	 
	 	 
	 	Name of Participant (Please
    Print)

 

    24

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