Document:

Exhibit 4.1

 

 

THIS
BUSINESS SERVICES AGREEMENT is entered into effective on August 1, 2019.

 

BETWEEN:

 

Business
Instincts Group Inc.

a
corporation having its office located

at
L120, 2303 4th Street SW., Calgary, Alberta T2S 2S7

 

(hereinafter
referred to as “BIG”)

 

AND

 

Draganfly
Innovations Inc.

a
corporation having its office located

at
2108 St. George Ave, Saskatoon, SK, S7M0K7

 

(hereinafter
referred to as the “Client”)

 

WHEREAS
in order to help achieve its corporate and business objectives, the Client desires and has agreed to retain the services of BIG to
provide the services and complete the duties described in Schedule “A” attached hereto and BIG agrees to provide such services
to the Client, in accordance with the terms and conditions contained herein;

 

WHEREAS
the parties desire that the Services (as defined below) shall be provided by BIG directly to each of the senior executive officers
and management team employed by the Client (collectively, “Senior Management” and each a “Senior Manager”) of
the Client;

 

WHEREAS
the Canadian Dollar is the accepted currency for the purposes of this Agreement;

 

NOW
THEREFORE in consideration and mutual covenants herein contained and such good and other consideration, the receipt and sufficiency
of which is acknowledged by each of the parties, the parties hereto agree as follows:

 

		1.	Services,
                                            Term, and Compensation. The term of this Agreement (the “Term”), the services
                                            to be provided by BIG under this Agreement (the “Services”) and the amounts to
                                            be paid to BIG as full and complete consideration for BIG providing the Services under this
                                            Agreement (the “Fees”), are set out in the attached Schedule “A”,
                                            which forms part of this Agreement.

 

This
Agreement shall come into force and effect as of the date set out first above, and shall continue as prescribed in Schedule “A”.
In the event of the expiration or termination of this Agreement, the Client agrees to pay to BIG any and all unpaid Fees and expenses
(as set forth herein) in full.

 

		2.	Independent
                                            Contractor. Subject to the terms and conditions of this Agreement, the Client hereby
                                            engages BIG as an independent contractor to perform the Services, and BIG hereby accepts
                                            such engagement.
It is expressly agreed that BIG is acting as an independent contractor in performing the Services hereunder.

 

    	Page 1 of 11

    	 

    

 

 

		3.	Nature
                                            of Engagement. BIG shall perform the Services as an independent contractor, and nothing
                                            contained in this Agreement shall be construed to create or imply a joint venture, partnership,
                                            principal-agent, or employment relationship between the Client and BIG. Unless the Client
                                            specifically

 

authorizes
BIG in writing to do so, BIG shall neither act or purport to be acting as the agent of the Client, nor enter into any agreement on behalf
of the Client or otherwise bind, nor purport to bind the Client or cause the Client to incur liability in any manner whatsoever. All
final decisions with respect to services provided by BIG hereunder shall be entirely the Client’s to make, and BIG shall have no
liability relating to or arising from the Client’s decisions. It is understood that BIG’s responsibility to the Client is
solely contractual in nature and that BIG does not act in a fiduciary capacity in relation to the Client as a result of this Agreement.

 

With
the prior written consent of BIG, not to be unreasonably withheld, nothing in this Agreement shall prohibit the Client, or any entity
chosen by the Client, from performing some or all of the functions of BIG herein. It is recognized that BIG will expend significant time
and commit considerable resources to the Client. The Services are not exclusive to the Client however, and BIG may render similar services
to other parties both during and after the Term.

 

		4.	Third-Party
                                            Expenses. The Client is responsible for paying specific disbursements charged by third
                                            parties to BIG relating to this Agreement, including graphic design, creative, legal and
                                            other advisory fees. The Client further agrees to reimburse BIG for any out-of-pocket expenses
                                            incurred by BIG in connection with this Agreement and carrying out the Services within thirty
                                            (30) days of presentation of reasonably itemized invoices to the Client as set forth in clause
                                            5 below.

 

		5.	Billing.
                                            Accounts, including out-of-pocket expenses, will be rendered by BIG as prescribed in
                                            Schedule “A”. Interest on overdue accounts attracts interest which is calculated
                                            at the rate of 12% per annum commencing thirty (30) days following the date of the invoice
                                            until the account is paid in full. Any out-of-pocket expenses and disbursements to be charged
                                            by third parties shall be pre-approved by the Client.

 

		6.	Information
                                            Provided to BIG. The Client agrees BIG is entitled to rely (without independent verification)
                                            upon any information by the Client in relation to this agreement, including information with
                                            respect to the assets, liabilities, earnings, earning potential, financial condition, historical
                                            performance, future prospects and financial projections, and any assumptions used in the
                                            development of such projections furnished by the Client or any individual on behalf of the
                                            Client, and BIG is entitled to assume that all such information is true, correct and complete
                                            in all material respects and does not contain any untrue statements of material fact or omit
                                            to state a material fact necessary to ensure the information supplied is not misleading.
                                            BIG is not liable or responsible for any loss or damage suffered by the Client or others
                                            if any misstatement, error or omission in any material, information, document or representation
                                            supplied or approved by the Client. If at any time during the effectiveness of this Agreement,
                                            the Client or any of the Client’s agents or advisors becomes aware of any material
                                            change in any of the information previously furnished to BIG, the Client will promptly advise
                                            BIG of the change.

 

    	Page 2 of 11

    	 

    

 

 

		7.	Confidentiality.

 

		a)	For
                                            the purpose of this section, the term “Confidential Information” includes, but
                                            is not limited to, all business and financial information, marketing and strategic plans,
                                            equipment details, software

 

programs,
manuals, maps, customer and client lists, employee information, supplier information, analyses, reports, technologies, processes and
operations, compilations, forecasts, studies. lists, summaries, notes, designs, formulae, innovations, techniques, data, patents and
trade secrets of the Client, as well as the present and contemplated products, techniques and other services evolved or to be used by
the Client. Confidential Information does not include such portions of the Confidential Information which: (i) are, or prior to the time
of disclosure or utilization become, generally available to the public; (ii) are received by BIG from an independent third party who
had obtained the Confidential. Information lawfully and was, to the best of BIG’s knowledge, under

 

No
obligation of secrecy or duty of confidentiality owed to the Client; (iii) BIG can show was in BIG’s lawful possession before BIG
received such Confidential Information from the Client, or (iv) BIG can show that such Confidential Information was independently developed
by BIG having no access to the Confidential Information at the time of its independent development.

 

		b)	In
                                            the course of performing the Services, BIG acknowledges and understands that it will have
                                            access to and will be entrusted with Confidential Information which is not public, but is
                                            proprietary and confidential to the Client. BIG shall keep the Confidential Information strictly
                                            confidential and shall take all necessary precautions against unauthorized disclosure of
                                            the Confidential Information during the Term of this Agreement and thereafter. BIG shall
                                            not use or reproduce any Confidential Information, in any manner, except as reasonably required
                                            to perform the Services and/or fulfill the purposes of this Agreement. BIG shall ensure that
                                            any copies of Confidential Information it takes or makes are clearly marked, or otherwise
                                            identified as confidential and proprietary to the Client and that all Confidential Information
                                            and copies thereof are stored in a secure location while in BIG’s possession, control,
                                            charge or custody.

 

		c)	BIG
                                            hereby agrees and acknowledges that the disclosure of any of the Confidential Information
                                            to competitors of the Client or to the general public would be highly detrimental to the
                                            best interests of the Client. Accordingly, BIG covenants and agrees with the Client that,
                                            save with the written consent of the Client, it will not, either during the Term of this
                                            Agreement, or at any time thereafter, directly or indirectly, disclose, allow access to,
                                            transmit or transfer any of such Confidential Information to any person other than its directors,
                                            officers, employees, consultants, agents and advisers or to similar representatives of the
                                            Client, nor shall it use the same for any purpose other than the purposes of performing the
                                            Services to be performed by BIG under this Agreement.

 

		d)	BIG
                                            acknowledges that it shall not acquire any right, title or interest in or to any Confidential
                                            Information by virtue of it having access to the same during the Term of this Agreement.

 

		e)	In
                                            the event BIG is requested or required pursuant to any Court order, or other legal or regulatory
                                            demand, to disclose any Confidential Information to a third party, BIG agrees that it will
                                            provide the Client with prompt notice of such request or requirement so that the Client,
                                            at its option, may seek an appropriate protective order or other remedies to ensure that
                                            Confidential Information will be accorded confidential treatment.

 

		f)	Upon
                                            termination or expiry of this Agreement, for whatever reason, BIG agrees to:

 

	 	(i)	deliver to the Client, or destroy, all Confidential Information and copies thereof which are in its power or possession which relate
in any way to the business of the Client, or its customers; and

 

	 	(ii)	remove any Confidential Information from BIG’s computers, or computer databases that may have been created in the course of performing
BIG’s Services under this Agreement (other than

 

information
stored on back-up servers pursuant to the retention of files laws and policies) and certify the return or destruction of all documents
containing Confidential Information.

 

    	Page 3 of 11

    	 

    

 

 

		8.	Ownership
                                            of Work Product. Any and all Work Product conceived, developed, reduced to practice or
                                            a definite and practical shape, invented, authored, wrote, created, produced or otherwise
                                            generated on behalf of BIG or by any employee, agent, contractor, representative or other
                                            individual acting on behalf of BIG (“BIG Personnel”) in connection with the performance
                                            of the Services will be the exclusive property of the Client. BIG shall assign and waive,
                                            and shall cause to be assigned or waived at BIG’s

 

expense,
any right, title and interest in and to the Work Product to or in favor of the Client. In this Agreement, “Work Product”
includes, without limitation any and all of the following: (a) any invention,

 

process,
formula, algorithm, specification, technique, concept, idea, method, diagnostic, compound, development, composition, apparatus, machine,
test, design, trade secret, know how or any improvement, modification, thereto or any issued patent, industrial design or application
therefor applied for, issued or granted in any jurisdiction anywhere in the world, including but not limited to reissues, divisions,
continuations, continuations-in-part, re-examinations, renewals and substitutes thereof, foreign counterparts of the foregoing, including,
without limitation, the right to apply for Letters Patent in the United States, Canada and all other countries throughout the world and
all rights to claim priority based on said applications under the terms of any international convention, and all rights in the United
States, Canada and all other countries throughout the world to sue and recover for past or future infringement of such rights; (b) trade
names, trademarks, trade secrets, service names, service marks, business names, product names, brands, logos and other distinctive identifications
used in commerce, whether in connection with products or services, and the goodwill associated with any of the foregoing; (c) original
works of authorship, derivative works and other copyrightable works of any nature, and fixations of any of the foregoing; (d) computer
software or code of any type (whether source code or object code) in any programming or markup language, underlying any type of computer
programming (whether application software, middleware, firm ware or system software) including, but not limited to, applets, assemblers,
compilers, design tools, and user interfaces, databases and fixations thereof; (e) uniform resource locators, website addresses, domain
names, website content and all fixations thereof; and (f) any other intellectual and industrial property in and to the foregoing, which
is recognized under the law of any jurisdiction anywhere in the world, whether under common law, by statute or otherwise.

 

		9.	Moral
                                            Rights. BIG acknowledges and agrees that the Client may use, alter, vary, adapt and exploit
                                            any Work Product as the Client sees fit, in its sole and unfettered discretion. At its own
                                            expense, BIG shall cause to be assigned, waived or released any and all rights including,
                                            but not limited to, all moral rights (as defined under the Copyright Act (Canada)), in or
                                            otherwise relating to any Work Product in favor of the Client, its successor and assigns.

 

		10.	Further
                                            Assurances. At the requested of the Client, BIG will promptly do all acts and execute
                                            and deliver to the Client all instruments that may be required to effect, register, record,
                                            or otherwise perfect the interest of the Client in or relating to Work Product, and BIG will
                                            cause the BIG Personnel to do the same.

 

    	Page 4 of 11

    	 

    

 

 

		11.	Conflicts.
                                            BIG assists other companies and individuals, some of whom may, on occasion, be competitors
                                            or adverse in interest to the Client. BIG will not disclose to others any sensitive, proprietary
                                            or

 

otherwise
confidential information of a non-public nature concerning or affecting the Client’s affairs, unless such disclosure is authorized
by the client or required to defend BIG against any claim, action, suit, or proceeding, or to the extent such disclosure is required
by any applicable law or regulation.

 

		12.	Announcements.
                                            Provided the Client has provided its prior written consent, not to be unreasonably withheld,
                                            BIG may, subject to compliance with paragraph 7 hereof, disclose the existence of this Agreement
                                            to certain persons and entities selected by BIG and in certain electronic and print publications,
                                            including BIG’s website. In accordance with all applicable laws, including the Client’s
                                            disclosure obligations under applicable securities laws, the Client is expressly permitted
                                            to make any required disclosures of this Agreement, including the material terms hereof.

 

		13.	Legal
                                            and Tax Advice. BIG will not provide or be responsible for obtaining legal or tax advice
                                            with respect to the Client, nor any other legal and regulatory requirements and issues which
                                            may arise pursuant to this Agreement. The Client is responsible for ensuring compliance with
                                            all of the Client’s legal and regulatory requirements in connection with all aspects
                                            of this Agreement.

 

		14.	Best
                                            Efforts/Timely Performance. BIG will use all reasonable efforts to perform the Services
                                            described in Schedule “A” to this Agreement within the time-frame agreed upon
                                            by the parties. Neither the execution and/or delivery of this Agreement, nor the provision
                                            of Services hereunder constitutes a guarantee or commitment, express or implied, on the part
                                            of BIG, as to the timeliness of BIG’s performance of the Services. Further, BIG shall
                                            not be liable for failures or delays in performance that arise from causes beyond our control.

 

		15.	Indemnification.

 

		a)	The
                                            Client shall indemnify BIG, its shareholders, directors, officers and employees (in each
                                            case, a “BIG Indemnitee”) from and against all losses, damages, costs
                                            and expenses, and hold such BIG Indemnitee harmless from and against any and all claims,
                                            liabilities, demands, actions, causes of action, lawsuits and proceedings which may be made
                                            or brought against or suffered by a BIG Indemnitee, or which it may suffer or incur as a
                                            result of, in respect of or arising out of, the performance of the Services. Notwithstanding
                                            the foregoing, no BIG Indemnitee shall be entitled to any indemnification by the Client for
                                            or in respect of any act, matter or omission caused by (i) fraud, wilful misconduct, bad
                                            faith or gross negligence; (ii) violation of applicable laws; or (iii) a breach of this Agreement.

 

		b)	BIG
                                            shall indemnify and hold harmless the Client, its shareholders, directors, officers and employees
                                            (in each case, an “Client Indemnitee”) from and against all losses, damages,
                                            costs and expenses, and hold such Client Indemnitee harmless from and against any and all
                                            claims, liabilities, demands, actions, causes of action, lawsuits and proceedings which may
                                            be made or brought against or suffered by a Client Indemnitee, which it may suffer or incur
                                            as a result of, in respect of or arising out of any act, matter or omission caused by BIG
                                            or any representative thereof: i) fraud, wilful misconduct, bad faith or gross negligence;
                                            (ii) violation of applicable laws; or (iii) a breach of this Agreement.

 

    	Page 5 of 11

    	 

    

 

 

		16.	Non-Solicitation.
                                            During the Term and for a period of one (1) year thereafter, the Client will not directly
                                            or indirectly recruit, solicit or hire any employee of BIG, or induce or attempt to induce
                                            any employee of BIG to terminate his/her employment with, or otherwise cease his/her relationship
                                            with BIG. During the

 

Term
and for a period of one (1) year thereafter, BIG will not directly or indirectly recruit, solicit or hire any employee of the Client,
or induce or attempt to induce any employee of the Client to terminate his/her employment with, or otherwise cease his/her relationship
with the Client.

 

		17.	Successors
                                            and Assigns. This Agreement and all obligations and benefits of the Client and BIG shall
                                            bind the Client and BIG and any of the respective successors and assigns of either.

 

		18.	Termination
                                            on Notice.

 

		a)	Either
                                            party may terminate this Agreement at any time upon the provision of sixty (60) days written
                                            notice to the other party.

 

		b)	Upon
                                            termination of the Agreement BIG will be entitled to no further compensation except the following
                                            lump-sum payments (if applicable):

 

		i)	any
                                            fees and commissions earned to the effective date of termination;

 

		ii)	out
                                            of pocket expenses incurred prior to the effective date of termination which is otherwise
                                            reimbursable by the Client pursuant to the terms of this Agreement.

 

		iii)	a
                                            lump sum payment of $29,000 CAD (such amount reflecting 2 months of the pro-rata fees set
                                            forth in Schedule “A” attached hereto.

 

		19.	Arbitration
                                            of Disputes. The Client and BIG agree that all claims or controversies, whether such
                                            claims or controversies arose prior to, on, or subsequent to the date hereof, between the
                                            Client and BIG or any of the present or former members, managers, officers, employees, agents
                                            and representatives of either party concerning or arising from, without limitation, the construction,
                                            performance or breach of this Agreement, or any duty arising therefrom, shall be determined
                                            by arbitration. Any arbitration under this Agreement shall be conducted pursuant to the laws
                                            of the Province of Alberta before a single arbitrator and shall be binding upon the Client
                                            and BIG. The costs of the arbitrator shall be borne equally by the Client and BIG, and each
                                            of the Client and BIG shall bear their respective legal and other fees unless the arbitrator
                                            decides to allocate a greater burden of said costs and fees to the unsuccessful party.

 

		20.	Notices.
                                            Any and all notices, demands, or other communications required or desired to be given
                                            hereunder by any party shall be in:

 

		a)	writing
                                            and shall be validly given or made to another party if personally served, or if deposited
                                            in the Canadian mail, certified or registered, postage prepaid, return receipt requested,
                                            but not required; or

 

		b)	via
                                            electronic mail.

 

    	Page 6 of 11

    	 

    

 

 

If
such notice or demand is served personally, notice shall be deemed constructively made at the time of such personal service. If such
notice, demand or other communication is given by mail, such notice shall be conclusively deemed given five days after deposit thereof
in the Canadian mail addressed to the party to whom such notice, demand or other communication is to be given as follows:

 

If
to BIG:

 

Business
Instincts Group Inc.,

L120, 2303 4 Street SW

Calgary, Alberta T2S 2S7

 

Attention:
Erika Racicot

(403)992-7295

erika@businessinstincts.com

 

If
to the Client:

Dragonfly Innovations Inc.

Attention: Paul Sun, CFO

416-569-5070

Paul.Sun@draganflyinnovations.com

 

Any
party hereto may change its office or email addresses for purposes of this paragraph by written notice given in the manner provided above.

 

		21.	Waiver.
                                            Failure of either party hereto to insist upon strict compliance with any of the terms,
                                            covenants, and conditions hereof shall not be deemed a waiver or relinquishment of any similar
                                            right or power hereunder at any subsequent time or of any other provision hereof.

 

		22.	Modification
                                            or Amendment. No amendment, change or modification of this Agreement shall be valid unless
                                            in writing signed by the parties hereto,

 

		23.	Survival.
                                            Any provision of this Agreement which expressly states that it is to continue in effect
                                            after termination or expiration of this Agreement, or which by its nature would survive the
                                            termination or expiration of this Agreement, shall do so.

 

		24.	Severability.
                                            If anyone or more of the provisions of this Agreement shall for any reason be held to
                                            be invalid, illegal, or unenforceable in any respect, any such provision shall be severable
                                            from this Agreement, in which event this Agreement shall be construed as if such provision
                                            had never been contained herein and the remainder of this Agreement shall nevertheless remain
                                            in full force and effect.

 

		25.	Entire
                                            Understanding. This document, and Schedule “A” hereto, constitute the entire
                                            understanding and agreement of the parties, and any and all prior agreements, understandings,
                                            and representations are hereby terminated and canceled in their entirety and are of no further
                                            force and effect.

 

		26.	Jurisdiction.
                                            The laws of the Province of Alberta shall govern the validity of this Agreement, the
                                            construction of its terms and the interpretation of the rights and duties of the parties
                                            hereto. The parties hereto irrevocably submit to the jurisdiction of Alberta for the purpose
                                            of any legal suit, action or other proceeding arising out of the Agreement.

 

		27.	Counterparts.
                                            Each party hereto may sign this Agreement in counterparts and deliver such counterparts by
                                            facsimile or other electronic delivery, which parts will be read together and construed as
                                            if all signing parties had signed one copy of this Agreement.

 

    	Page 7 of 11

    	 

    

 

 

IN
WITNESS WHEREOF the undersigned have executed this Agreement as of the day and year first written above.

 

 

    	Page 8 of 11

    	 

    

 

 

SCHEDULE
A

 

BUSINESS
SERVICES, MONTHLY RATE, SCOPE OF WORK, and TERM

 

Business
Instincts Group Inc., (“BIG”) will provide staffing, business functions, and other business services in the following
areas to Draganfly Innovations Inc. (“the Client”) on an on-going basis during the term of the Agreement.

 

All
figures in Canadian Dollars, applicable taxes are in addition.

 

	Service	 	Deliverables	 	Fee
	Corporate
                                            Development and 

    
	 	BIG
                                            has been engaged to create and deliver:
	 	
	Governance	 	 	 	 

	(Monthly)	 	●	Provide
    Executive Management Support;	 	$7,500.00
		 	 	 	 	 
		 	●	Liaison
    with Management and the Board of Directors and Advisors to provide clarity on the best path forward for Draganfly and partners;	 	 
	 	 	 	 	 	 
	 	 	●	Ongoing
    business development work, including prospecting, sales, and pipeline management;	 	 
	 	 	 	 	 	 
	 	 	●	Ongoing
    corporate development and mergers and acquisitions work;	 	 
	 	 	 	 	 	 
	 	 	●	Create
    and manage investor presentations and investor material;	 	 
	 	 	 	 	 	 
	 	 	●	Recruitment
    efforts surrounding Executives, Board of Directors, Board of Advisors, and Management level employees	 	 
	 	 	 	 	 	 
	 	 	●	Manage
    shareholder communication process;	 	 
	 	 	 	 	 	 
	 	 	●	Provide
    assistance in developing Capital structures;	 	 
	 	 	 	 	 	 
	 	 	●	Partner
    integrations where applicable;	 	 
	 	 	 	 	 	 
	 	 	●	Assist
    and provide guidance on product/service development; and	 	 
	 	 	 	 	 	 
	 	 	●	Assist
    with financing efforts;	 	 

 

    	Page 9 of 11

    	 

    

 

 

	Strategic
Facilitation & Management 

    (Monthly)
	 	RIPKIT
                                            implementation, including quarterly and monthly strategy sessions and weekly meetings;
	 	

		 	●	Access
    to the RIPKIT platform for monitoring and goal tracking; and	 	$2,500.00
	 	 	 	 	 	 
	 	 	●	Weekly
    Tracking of RIPs, and Strategic goals, including Offsite sessions, RIP resets and team alignment meetings.	 	 
	 	 	 	 	 	 
	 	 	●	Project
    facilitator to assist in project growth and support.	 	 
	 	 	 	 	 	 
	 	 	●	Coordination
    of efforts between all areas of the business to ensure projects and timelines stay on track.	 	 

 

	Business
                                                                                       Services

    (Monthly)
	 	Provide
                                            personnel to directly support Draganfly Innovations Senior Management with respect to:

                                                                                        

    HR
    Support & recruiting support;

     

    Administration
    and project coordination of basic marketing initiatives.
	 	$2,500.00
	 	 	 	 	 
	Shared
    Office Space LA Office	 	Office/Shop
    space including up to 2desks	 	$2000.00

 

Total
Fee (Monthly): $14,500 (plus tax)

 

Term:

 

March
1, 2020— July 31, 2020

 

Performance:

 

Our
performance will be reviewed quarterly, measured against the RIPKIT by the Client and the BIG team.

 

Fees:

 

As
compensation for the services rendered pursuant to this agreement, and as compensation for the past services provided by BIG to the client
prior to the effective date of the agreement, the client shall pay to BIG any amounts due within 30 days of the invoice plus any applicable
tax. All expenses incurred will be billed directly to BIG and allocated to the Client appropriately.

 

The
Client understands that based on workloads surrounding financing efforts, capital structure, shareholder engagement/communications, business
development, and marketing initiatives there may be an increase in billing within select months. This increase will only occur with previous
management approval of the request.

 

 

    	Page 10 of 11

    	 

    

 

 

SCHEDULE
B

 

SHAREHOLDER
MARKETING VIDEO CONTENT SCOPE OF WORK

 

Business
Instincts Group Inc., (“BIG”) will provide video marketing services in the following areas to Draganfly Innovations Inc.
(“the Client”) on an on-going basis during the term of the 3-month engagement, budget to be in part allocated through Draganfly’s
marketing initiatives.

 

All
figures in Canadian Dollars, applicable taxes are in addition.

 

	Service	 	Deliverables	 	Fee
	Corporate
    Business Development Video Content	 	BIG
                                            has been engaged to create and deliver:

                                                                                                                 

    BIG
    implementation of the awareness to advocacy video series;
	 	$47,000
	 	 	 	 	 

	 	 	●	Video
    Production of 15 Corporate videos reflecting the Draganfly story, their ability to execute, service and solutions set.	 	 

 

*Total
Fee: $47,000 (plus tax)

 

*BIG
acknowledges that payment has already been made for this service. Videos will be delivered during the term of this agreement.

 

Term:

 

March
1, 2020—July 31, 2020

 

Fees:

 

As
compensation for the services rendered pursuant to this agreement, and as compensation for the past services provided by BIG to the client
prior to the effective date of the agreement, the client shall pay to BIG any amounts due within 30 days of the invoice plus any applicable
tax. All expenses incurred with be billed directly to BIG and allocated to the Client appropriately. The Client understands that based
on workloads surrounding financing efforts, capital structure, shareholder engagement/communications, business development, and marketing
initiatives there may be an increase in billing within select months. This increase will only occur with previous management approval
of the request.

 

 

    	Page 11 of 11Exhibit
4.2

 

DRAGANFLY
INC.

 

sHARE
COMPENSATION PLAN

 

	1.	DEFINITIONS
    AND INTERPRETATION

 

	1.1	Definitions:
    For purposes of the Plan, unless the context requires otherwise, the following words and terms shall have the following meanings:

 

	 	(a)	“1933
    Act” means the United States Securities Act of 1933, as amended;
	 	 	 
	 	(b)	“Account”
    has the meaning attributed to that term in section 4.8;
	 	 	 
	 	(c)	“Administrators”
    means the Board or such other persons as may be designated by the Board from time to time;
	 	 	 
	 	(d)	“Affiliate”
    has the meaning attributed to that term in the Securities Act (British Columbia);
	 	 	 
	 	(e)	“Associate”
    has the meaning attributed to that term in the Securities Act (British Columbia);
	 	 	 
	 	(f)	“Award
    Date” means the date or dates on which an award of Restricted Share Units is made to a Participant in accordance with section
    4.1;
	 	 	 
	 	(g)	“Blackout
    Period” means the period during which designated directors, officers and employees of the Corporation cannot trade the
    Common Shares pursuant to the Corporation’s policy respecting restrictions on directors’, officers’ and employee
    trading which is in effect at that time (which, for greater certainty, does not include the period during which a cease trade order
    is in effect to which the Corporation or in respect of an insider, that insider is subject);
	 	 	 
	 	(h)	“Board”
    means the board of directors of the Corporation from time to time;
	 	 	 
	 	(i)	“Business
    Day” means each day other than a Saturday, Sunday or statutory holiday in Vancouver, British Columbia, Canada;
	 	 	 
	 	(j)	“Change
    of Control” means:

 

	 	(i)	the
    acceptance of an Offer by a sufficient number of holders of voting shares in the capital of the Corporation to constitute the offeror,
    together with persons acting jointly or in concert with the offeror, a shareholder of the Corporation being entitled to exercise
    more than 50% of the voting rights attaching to the outstanding voting shares in the capital of the Corporation (provided that prior
    to the Offer, the offeror was not entitled to exercise more than 50% of the voting rights attaching to the outstanding voting shares
    in the capital of the Corporation),
	 	 	 
	 	(ii)	the
    completion of a consolidation, merger or amalgamation of the Corporation with or into any other corporation whereby the voting shareholders
    of the Corporation immediately prior to the consolidation, merger or amalgamation receive less than 50% of the voting rights attaching
    to the outstanding voting shares of the consolidated, merged or amalgamated corporation or any parent entity, or  

 

    	 

    	- 2 -

    

 

	 	(iii)	the
    completion of a sale whereby all or substantially all of the Corporation’s undertakings and assets become the property of any
    other entity and the voting shareholders of the Corporation immediately prior to that sale hold less than 50% of the voting rights
    attaching to the outstanding voting securities of that other entity immediately following that sale;

 

Notwithstanding
the foregoing, if it is determined that an award hereunder with respect to a U.S. Participant is subject to the requirements of Section
409A of the Code and payable upon a Change of Control, the Corporation will not be deemed to have undergone a Change of Control unless
the Corporation is deemed to have undergone a “change in control event” pursuant to the definition of such term in Section
409A of the Code to the extent required for the award to comply with Section 409A of the Code;

 

	 	(k)	“Code”
    means the U.S. Internal Revenue Code of 1986, as amended, and includes the valid and binding governmental regulations, court
    decisions and other regulatory and judicial authority issued or rendered thereunder;
	 	 	 
	 	(l)	“Common
    Shares” means the common shares of the Corporation;
	 	 	 
	 	(m)	“Consultant”
    means an individual (other than an employee or a director of the Corporation) or company that:

 

	 	 	(A)	is
    engaged to provide on an ongoing bona fide basis, consulting, technical, management or other services to the Corporation or to an
    Affiliate of the Corporation, other than services provided in relation to an offer or sale of securities of the Corporation in a
    capital-raising transaction, or services that promote or maintain a market for the Corporation’s securities;
	 	 	 	 
	 	 	(B)	provides
    the services under a written contract between the Corporation or the Affiliate and the individual or the company, as the case may
    be;
	 	 	 	 
	 	 	(C)	in
    the reasonable opinion of the Corporation, spends or will spend a significant amount of time and attention on the affairs and business
    of the Corporation or an Affiliate of the Corporation; and
	 	 	 	 
	 	 	(D)	has
    a relationship with the Corporation or an Affiliate of the Corporation that enables the individual to be knowledgeable about the
    business and affairs of the Corporation;

 

	 	(n)	“Corporation”
    means Draganfly Inc., a corporation existing under the Business Corporations Act (British Columbia) and the successors thereof;
	 	 	 
	 	(o)	“Effective
    Date” means August 19, 2019;

 

    	 

    	- 3 -

    

 

	 	(p)	“Eligible
    Person” means:

 

	 	(i)	any
    officer or employee of the Corporation and/or any officer or employee of any Subsidiary of the Corporation and any director of the
    Corporation and/or any director of any Subsidiary of the Corporation; and
	 	 	 
	 	(ii)	a
    Consultant;

 

	 	(q)	“Event
    of Termination” means an event whereby a Participant ceases to be an Eligible Person and shall be deemed to have occurred
    by the giving of any notice of termination of employment or service (whether voluntary or involuntary and whether with or without
    cause), retirement, or any cessation of employment or service for any reason whatsoever, including disability or death;
	 	 	 
	 	(r)	“Exchange”
    means the Canadian Stock Exchange or any other stock exchange or quotation system where the Common Shares are listed on or through
    which the Common Shares are listed or quoted;
	 	 	 
	 	(s)	“Grant
    Date” means the date on which a grant of Options is made to a Participant in accordance with section 5.1;
	 	 	 
	 	(t)	“insider”
    has the meaning attributed to that term in the Securities Act (British Columbia);
	 	 	 
	 	(u)	“Insider
    Participant” means a Participant who is (i) an insider of the Corporation or any of its Subsidiaries, and (ii) an associate
    of any person who is an insider by virtue of (i);
	 	 	 
	 	(v)	“Investor
    Relations Activities” means any activities, by or on behalf of the Corporation or shareholder of the Corporation, that
    promote or reasonably could be expected to promote the purchase or sale of securities of the Corporation, but does not include:

 

	 	(i)	the
    dissemination of information provided, or records prepared, in the ordinary course of business of the Corporation:

 

	 	 	(A)	to
    promote the sale of products or services of the Corporation, or
	 	 	 	 
	 	 	(B)	to
    raise public awareness of the Corporation, that cannot reasonably be considered to promote the purchase or sale of securities of
    the Corporation;

 

	 	(ii)	activities
    or communications necessary to comply with the requirements of:

 

	 	 	(A)	applicable
    securities laws;
	 	 	 	 
	 	 	(B)	the
    by-laws, rules or other regulatory instruments of the Exchange or any other self-regulatory body or exchange having jurisdiction
    over the Corporation;

 

    	 

    	- 4 -

    

 

	 	(iii)	communications
    by a publisher of, or writer for, a newspaper, magazine or business or financial publication, that is of general and regular paid
    circulation, distributed only to subscribers to it for value or to purchasers of it, if:

 

	 	 	(A)	the
    communication is only through the newspaper, magazine or publication, and
	 	 	 	 
	 	 	(B)	the
    publisher or writer receives no commission or other consideration other than for acting in the capacity of publisher or writer; or

 

	 	(iv)	activities
    or communications that may be otherwise specified by the Exchange.

 

	 	(w)	“Market
    Price” means, as of any date, the closing price of the Common Shares on the Exchange for the last market trading day prior
    to the date of grant of the Option or if the Common Shares are not listed on a stock exchange, the Market Price shall be determined
    in good faith by the Administrators;
	 	 	 
	 	(x)	“Market
    Value” means, on any date, the volume weighted average price of the Common Shares traded on the Exchange for the five (5)
    consecutive trading days prior to such date;
	 	 	 
	 	(y)	“Offer”
    means a bona fide arm’s length offer made to all holders of voting shares in the capital of the Corporation to purchase, directly
    or indirectly, voting shares in the capital of the Corporation;
	 	 	 
	 	(z)	“Option”
    means an option granted to an Eligible Person under the Plan to purchase Common Shares;
	 	 	 
	 	(aa)	“Option
    Agreement” has the meaning ascribed to that term in section 3.2;
	 	 	 
	 	(bb)	“Participant”
    means an Eligible Person selected by the Administrators to participate in the Plan in accordance with section 3.1 hereof;
	 	 	 
	 	(cc)	“Payout
    Date” means the day on which the Corporation pays to a Participant the Market Value of the RSUs that have become vested
    and payable;
	 	 	 
	 	(dd)	“Plan”
    means this share compensation plan, as amended, replaced or restated from time to time;
	 	 	 
	 	(ee)	“reserved
    for issuance” refers to Common Shares that may be issued in the future upon the vesting of Restricted Share Units which
    have been awarded and upon the exercise of Options which have been granted;
	 	 	 
	 	(ff)	“Restricted
    Share Unit” means a right granted in accordance with section 4.1 hereof to receive one Common Share that becomes vested
    in accordance with section 4.3;
	 	 	 
	 	(gg)	“Restricted
    Share Unit Agreement” has the meaning ascribed to that term in section 3.2;
	 	 	 
	 	(hh)	“Share
    Compensation Arrangement” means a stock option, stock option plan, employee stock purchase plan or any other compensation
    or incentive mechanism involving the issuance or potential issuance of Common Shares to directors, officers and employees of the
    Corporation and any of its Subsidiaries or to Consultants;

 

    	 

    	- 5 -

    

 

	 	(ii)	“Subsidiary”
    has the meaning ascribed thereto in the Securities Act (British Columbia) and “Subsidiaries” shall have
    a corresponding meaning;

 

	 	(jj)	“United
    States” means the United States of America, its territories and possessions, any state of the United States and the District
    of Columbia;
	 	 	 
	 	(kk)	“U.S.
    Participant” means a Participant who is a citizen of the United States or a resident of the United States, as defined in
    section 7701(a)(30)(A) and section 7701(b)(1) of the Code and any other Participant who is subject to tax under the Code with respect
    to compensatory awards granted pursuant to the Plan;
	 	 	 
	 	(ll)	“U.S.
    Person” means a “U.S. person”, as such term is defined in Rule 902 of Regulation S under the 1933 Act; and
	 	 	 
	 	(mm)	“Withholding
    Obligations” has the meaning ascribed to that term in section 4.6.

 

	1.2	Headings:
    The headings of all articles, sections, and paragraphs in the Plan are inserted for convenience of reference only and shall not
    affect the construction or interpretation of the Plan.
	 	 
	1.3	Context,
    Construction: Whenever the singular or masculine are used in the Plan, the same shall be construed as being the plural or feminine
    or neuter or vice versa where the context so requires.
	 	 
	1.4	References
    to this Plan: The words “hereto”, “herein”, “hereby”, “hereunder”, “hereof”
    and similar expressions mean or refer to the Plan as a whole and not to any particular article, section, paragraph or other part
    hereof.
	 	 
	1.5	Currency:
    All references in this Plan or in any agreement entered into under this Plan to “dollars”, “$” or lawful
    currency shall be references to Canadian dollars, unless the context otherwise requires.

 

	2.	PURPOSE
    AND ADMINISTRATION OF THE PLAN

 

	2.1	Purpose:
    The purpose of the Plan is to advance the interests of the Corporation and its Subsidiaries, and its shareholders by: (i) ensuring
    that the interests of Eligible Persons are aligned with the success of the Corporation and its Subsidiaries; (ii) encouraging stock
    ownership by Eligible Persons; and (iii) providing compensation opportunities to attract, retain and motivate Eligible Persons.

 

	2.2	Common
    Shares Subject to the Plan:

 

	 	(a)	The
    total number of Common Shares reserved and available for grant and issuance pursuant to this Plan, and the total number of Restricted
    Share Units that may be awarded pursuant to this Plan, shall not exceed 20% (in the aggregate) of the issued and outstanding Common
    Shares from time to time;

 

    	 

    	- 6 -

    

 

	 	(b)	The
    aggregate sales price (meaning the sum of all cash, property, notes, cancellation of debt, or other consideration received or to
    be received by the Corporation for the sale of the securities) or amount of Common Shares issued during any consecutive 12-month
    period will not exceed the greatest of the following: (i) U.S.$1,000,000; (ii) 15% of the total assets of the Corporation, measured
    at the Corporation’s most recent balance sheet date; or (iii) 15% of the outstanding amount of the Common Shares of the Corporation,
    measured at the Corporation’s most recent balance sheet date; and
	 	 	 
	 	(c)	The
    number of Common Shares issuable pursuant to the exercise of Options under the Plan within a 12 month period to all Eligible Persons
    retained to provide Investor Relations Activities (together with those Common Shares that are issued pursuant to any other Share
    Compensation Arrangement) shall not, at any time, exceed 1% of the issued and outstanding Common Shares.

 

	2.3	Administration
    of the Plan: The Plan shall be administered by the Administrators, through the recommendation of the Compensation Committee of
    the Board. Subject to any limitations of the Plan, the Administrators shall have the power and authority to:

 

	 	(a)	adopt
    rules and regulations for implementing the Plan;
	 	 	 
	 	(b)	determine
    the eligibility of persons to participate in the Plan, when Restricted Share Units and Options to Eligible Persons shall be awarded
    or granted, the number of Restricted Share Units and Options to be awarded or granted, the vesting criteria for each award of Restricted
    Share Units and the vesting period for each grant of Options;
	 	 	 
	 	(c)	interpret
    and construe the provisions of the Plan and any agreement or instrument under the Plan;
	 	 	 
	 	(d)	subject
    to regulatory requirements, make exceptions to the Plan in circumstances which they determine to be exceptional;
	 	 	 
	 	(e)	require
    that any Participant provide certain representations, warranties and certifications to the Corporation to satisfy the requirements
    of applicable laws, including without limitation, the registration requirements of the 1933 Act and applicable state securities laws,
    or exemptions therefrom; and
	 	 	 
	 	(f)	make
    all other determinations and take all other actions as they determine to be necessary or desirable to implement, administer and give
    effect to the Plan.

 

	3.	ELIGIBILITY
    AND PARTICIPATION IN PLAN

 

	3.1	The
    Plan and Participation: The Plan is hereby established for Eligible Persons. Restricted Share Units may be awarded and Options
    may be granted to any Eligible Person as determined by the Administrators in accordance with the provisions hereof. The Corporation
    and each Participant acknowledge that they are responsible for ensuring and confirming that such Participant is a bona fide Eligible
    Person entitled to receive Options or Restricted Share Units, as the case may be.
	 	 
	3.2	Agreements:
    All Restricted Share Units awarded hereunder shall be evidenced by a restricted share unit agreement (“Restricted Share
    Unit Agreement”) between the Corporation and the Participant, substantially in the form set out in Exhibit A or in such
    other form as the Administrators may approve from time to time. All Options granted hereunder shall be evidenced by an option agreement
    (“Option Agreement”) between the Corporation and the Participant, substantially in the form as set out in Exhibit
    B or in such other form as the Administrators may approve from time to time.

 

    	 

    	- 7 -

    

 

	4.	AWARD
    OF RESTRICTED SHARE UNITS

 

	4.1	Award
    of Restricted Share Units: The Administrators may, at any time and from time to time, award Restricted Share Units to Eligible
    Persons. In awarding any Restricted Share Units, the Administrators shall determine:

 

	 	(a)	to
    whom Restricted Share Units pursuant to the Plan will be awarded;
	 	 	 
	 	(b)	the
    number of Restricted Share Units to be awarded and credited to each Participant’s Account;
	 	 	 
	 	(c)	the
    Award Date; and
	 	 	 
	 	(d)	subject
    to section 4.3 hereof, the applicable vesting criteria.

 

Upon
the award of Restricted Share Units, the number of Restricted Share Units awarded to a Participant shall be credited to the Participant’s
Account effective as of the Award Date.

 

	4.2	Restricted
    Share Unit Agreement: Upon the award of each Restricted Share Unit to a Participant, a Restricted Share Unit Agreement shall
    be delivered by the Administrators to the Participant.

 

	4.3	Vesting:

 

	 	(a)	Subject
    to subsections (c) and (d) below, at the time of the award of Restricted Share Units, the Administrators shall determine in their
    sole discretion the vesting criteria applicable to such Restricted Share Units.
	 	 	 
	 	(b)	For
    greater certainty, the vesting of Restricted Share Units may be determined by the Administrators to include criteria such as performance
    vesting, in which the number of Common Shares to be delivered to a Participant for each Restricted Share Unit that vests may fluctuate
    based upon the Corporation’s performance and/or the Market Price of the Common Shares, in such manner as determined by the
    Administrators in their sole discretion.
	 	 	 
	 	(c)	Each
    Restricted Share Unit shall be subject to vesting in accordance with the terms set out in the Restricted Share Unit Agreement.
	 	 	 
	 	(d)	Notwithstanding
    anything to the contrary in this Plan, all vesting and issuances or payments, as applicable, in respect of a Restricted Share Unit
    shall be completed no later than December 15 of the third calendar year commencing after the Award Date for such Restricted Share
    Unit.

 

    	 

    	- 8 -

    

 

	4.4	Blackout
    Periods: Should the date of vesting of a Restricted Share Unit fall within a Blackout Period or within nine Business Days following
    the expiration of a Blackout Period, such date of vesting shall be automatically extended without any further act or formality to
    that date which is the tenth Business Day after the end of the Blackout Period, such tenth Business Day to be considered the date
    of vesting for such Restricted Share Unit for all purposes under the Plan. Notwithstanding section 6.4 hereof, the ten Business Day
    period referred to in this section 4.4 may not be extended by the Board.
	 	 
	4.5	Vesting
    and Settlement: As soon as practicable after the relevant date of vesting of any Restricted Share Units awarded under the Plan
    and with respect to a U.S. Participant, no later than 60 days thereafter, but subject to subsection 4.3(d), a Participant shall be
    entitled to receive and the Corporation shall issue or pay (at its discretion):

 

	 	(a)	a
    lump sum payment in cash equal to the number of vested Restricted Share Units recorded in the Participant’s Account multiplied
    by the Market Value of a Common Share on the Payout Date;
	 	 	 
	 	(b)	the
    number of Common Shares required to be issued to a Participant upon the vesting of such Participant’s Restricted Share Units
    in the Participant’s Account, duly issued as fully paid and non-assessable shares and such Participant shall be registered
    on the books of the Corporation as the holder of the appropriate number of Common Shares; or
	 	 	 
	 	(c)	any
    combination of the foregoing.

 

	4.6	Taxes
    and Source Deductions: the Corporation or an affiliate of the Corporation may take such reasonable steps for the deduction and
    withholding of any taxes and other required source deductions which the Corporation or the affiliate, as the case may be, is required
    by any law or regulation of any governmental authority whatsoever to remit in connection with this Plan, any Restricted Share Units
    or any issuance of Common Shares (“Withholding Obligations”). Without limiting the generality of the foregoing,
    the Corporation may, at its discretion: (i) deduct and withhold those amounts it is required to remit pursuant to the Withholding
    Obligations from any cash remuneration or other amount payable to the Participant, whether or not related to the Plan, the vesting
    of any Restricted Share Units or the issue of any Common Shares; (ii) allow the Participant to make a cash payment to the Corporation
    equal to the amount required to be remitted, pursuant to the Withholding Obligations, which amount shall be remitted by the Corporation
    to the appropriate governmental authority for the account of the Participant; or (iii) settle a portion of vested Restricted Share
    Units of a Participant in cash equal to the amount the Corporation is required to remit, pursuant to the Withholding Obligations,
    which amount shall be remitted by the Corporation to the appropriate governmental authority for the account of the Participant. Where
    the Corporation considers that the steps undertaken in connection with the foregoing result in inadequate withholding or a late remittance
    of taxes, the delivery of any Common Shares to be issued to a Participant on vesting of any Restricted Share Units may be made conditional
    upon the Participant (or other person) reimbursing or compensating the Corporation or making arrangements satisfactory to the Corporation
    for the payment to it in a timely manner of all taxes required to be remitted, pursuant to the Withholding Obligations, for the account
    of the Participant.

 

    	 

    	- 9 -

    

 

	4.7	Rights
    Upon an Event of Termination:

 

	 	(a)	If
    an Event of Termination has occurred in respect of any Participant, any and all Common Shares corresponding to any vested Restricted
    Share Units in the Participant’s Account shall be issued as soon as practicable after the Event of Termination to the former
    Participant in accordance with section 4.5 hereof. With respect to each Restricted Share Unit of a U.S. Participant, such Restricted
    Share Unit will be settled and shares issued as soon as practicable following the date of vesting of such Restricted Share Unit as
    set forth in the applicable Restricted Share Unit Agreement, but in all cases within 60 days following such date of vesting.
	 	 	 
	 	(b)	If
    an Event of Termination has occurred in respect of any Participant, any unvested Restricted Share Units in the Participant’s
    Account shall, unless otherwise determined by the Administrators in their discretion, forthwith and automatically be forfeited by
    the Participant and cancelled. With respect to any Restricted Share Unit of a U.S. Participant, if the Administrators determine,
    in their discretion, to waive vesting conditions applicable to a Restricted Share Unit that is unvested at the time of an Event of
    Termination, such Restricted Share Unit shall not be forfeited or cancelled, but instead will be deemed to be vested and settled
    and shares delivered following the date of vesting of such Restricted Share Unit as set forth in the applicable Restricted Share
    Unit Agreement.
	 	 	 
	 	(c)	Notwithstanding
    the foregoing subsection 4.7(b) and subject to the requirements of the Exchange, if a Participant retires in accordance with the
    Corporation’s retirement policy, at such time, any unvested performance-based Restricted Share Units in the Participant’s
    Account shall not be forfeited by the Participant or cancelled and instead shall be eligible to become vested in accordance with
    the vesting conditions set forth in the applicable Restricted Share Unit Agreement after such retirement (as if retirement had not
    occurred), but only if the performance vesting criteria, if any, are met on the applicable date.
	 	 	 
	 	(d)	For
    greater certainty, if a Participant’s employment is terminated for just cause, each unvested Restricted Share Unit in the Participant’s
    Account shall forthwith and automatically be forfeited by the Participant and cancelled.
	 	 	 
	 	(e)	For
    the purposes of this Plan and all matters relating to the Restricted Share Units, the date of the Event of Termination shall be determined
    without regard to any applicable severance or termination pay, damages, or any claim thereto (whether express, implied, contractual,
    statutory, or at common law).

 

	4.8	Restricted
    Share Unit Accounts: A separate notional account for Restricted Share Units shall be maintained for each Participant (an “Account”).
    Each Account will be credited with Restricted Share Units awarded to the Participant from time to time pursuant to section 4.1 hereof
    by way of a bookkeeping entry in the books of the Corporation. On the vesting of the Restricted Share Units pursuant to section 4.3
    hereof and the corresponding issuance of Common Shares to the Participant pursuant to section 4.5 hereof, or on the forfeiture and
    cancellation of the Restricted Share Units pursuant to section 4.7 hereof, the applicable Restricted Share Units credited to the
    Participant’s Account will be cancelled.

 

    	 

    	- 10 -

    

 

	4.9	Record
    Keeping: the Corporation shall maintain records in which shall be recorded:

 

	 	(a)	the
    name and address of each Participant;
	 	 	 
	 	(b)	the
    number of Restricted Share Units credited to each Participant’s Account;
	 	 	 
	 	(c)	any
    and all adjustments made to Restricted Share Units recorded in each Participant’s Account; and
	 	 	 
	 	(d)	any
    other information which the Corporation considers appropriate to record in such records.

 

	5.	GRANT
    OF OPTIONS 

 

	5.1	Grant
    of Options: Subject to section 2.2, the total number of Common Shares reserved and available for grant pursuant to this section
    on exercise of Options (together with those Common Shares issuable pursuant to any other Share Compensation Arrangement, including
    Restricted Share Units) shall not exceed 20% of the number of issued and outstanding Common Shares from time to time.

 

The
Administrators may at any time and from time to time grant Options to Eligible Persons. In granting any Options, the Administrators shall
determine:

 

	 	(a)	to
    whom Options pursuant to the Plan will be granted;
	 	 	 
	 	(b)	the
    number of Options to be granted, the Grant Date and the exercise price of each Option;
	 	 	 
	 	(c)	the
    expiration date of each Option; and
	 	 	 
	 	(d)	subject
    to section 5.3 hereof, the applicable vesting criteria,

 

provided,
however that the exercise price for a Common Share pursuant to any Option shall not be less than the Market Price on the Grant Date in
respect of that Option.

 

	5.2	Option
    Agreement: Upon each grant of Options to a Participant, an Option Agreement shall be delivered by the Administrators to the Participant.
	 	 
	5.3	Vesting:

 

	 	(a)	Subject
    to subsection 2.2(c) above with respect to grants to Eligible Persons providing Investor Relations Activities, at the time of the
    grant of any Options, the Administrators shall determine, in accordance with minimum vesting requirements of the Exchange, the vesting
    criteria applicable to such Options.
	 	 	 
	 	(b)	The
    Administrators may determine when any Option will become exercisable and may determine that Options shall be exercisable in instalments
    or pursuant to a vesting schedule. The Option Agreement will disclose any vesting conditions prescribed by the Administrators.

 

    	 

    	- 11 -

    

 

	5.4	Term
    of Option/Blackout Periods: The term of each Option shall be determined by the Administrators; provided that no Option shall
    be exercisable after ten years from the Grant Date. Should the term of an Option expire on a date that falls within a Blackout Period
    or within nine Business Days following the expiration of a Blackout Period, such expiration date shall be automatically extended
    without any further act or formality to that date which is the tenth Business Day after the end of the Blackout Period, such tenth
    Business Day to be considered the expiration date for such Option for all purposes under the Plan. Notwithstanding section 6.4 hereof,
    the ten Business Day period referred to in this section 5.4 may not be extended by the Board.

 

	5.5	Exercise
    of Option:

 

Options
that have vested in accordance with the provisions of this Plan and the applicable Option Agreement may be exercised at any time, or
from time to time, during their term and subject to the provisions of Section 5.9 hereof as to any number of whole Common Shares that
are then available for purchase thereunder; provided that no partial exercise may be for less than 100 whole Common Shares. Options may
be exercised by delivery of a written notice of exercise to the Administrators, substantially in the form attached to this Plan as Exhibit
C, with respect to the Options, or by any other form or method of exercise acceptable to the Administrators.

 

	5.6	Payment
    and Issuance: 

 

	 	(a)	Upon
    actual receipt by the Corporation or its agent of the materials required by subsection 5.5 and receipt by the Corporation of cash,
    a cheque, bank draft or other form of acceptable payment for the aggregate exercise price, the number of Common Shares in respect
    of which the Options are exercised will be issued as fully paid and non-assessable shares and the Participant exercising the Options
    shall be registered on the books of the Corporation as the holder of the appropriate number of Common Shares. No person or entity
    shall enjoy any part of the rights or privileges of a holder of Common Shares which are subject to Options until that person or entity
    becomes the holder of record of those Common Shares. No Common Shares will be issued by the Corporation prior to the receipt of payment
    by the Corporation for the aggregate exercise price for the Options being exercised.
	 	 	 
	 	(b)	Without
    limiting the foregoing, unless otherwise determined by the Administrators or not compliant with any applicable laws or rules of the
    Exchange, a Participant may elect a cashless exercise in a notice of exercise in accordance with the following: (i) cashless exercise
    of Options shall only be available to a Participant who intends to immediately sell the Common Shares issuable upon exercise of such
    Options and the proceeds of sale will be sufficient to satisfy the exercise price of the Options, and (ii) if an eligible Participant
    elects to exercise the Options through cashless exercise and complies with any relevant protocols approved by the Administrators,
    a sufficient number of the Common Shares issued upon exercise of the Options will be sold by a designated broker on behalf of the
    Participant to satisfy the exercise price of the Options, the exercise price of the Options will be delivered to the Corporation
    and the Participant will receive only the remaining unsold Common Shares from the exercise of the Options and the net proceeds of
    the sale after deducting the exercise price of the Options, applicable taxes and any applicable fees and commissions, all as determined
    by the Administrators from time to time. The Corporation shall not deliver the Common Shares issuable upon a cashless exercise of
    Options until receipt of the exercise price therefor, whether by a designated broker selling the Common Shares issuable upon exercise
    of such Options through a short position or such other method determined by the Administrators in compliance with applicable laws.

 

    	 

    	- 12 -

    

 

	5.7	Cashless
    Exercise: Provided that the Common Shares are listed and posted for trading on a stock exchange or market that permits cashless
    exercise, a Participant may elect a cashless exercise in a notice of exercise, which election will result in all of the Common Shares
    issuable on the exercise being sold. In such case, the Participant will not be required to deliver to the Administrators a cheque
    or other form of payment for the aggregate exercise price referred to above. Instead the following provisions will apply:

 

	 	(a)	The
    Participant will instruct a broker selected by the Participant to sell through the stock exchange or market on which the Common Shares
    are listed or quoted, the Common Shares issuable on the exercise of Options, as soon as possible upon the issue of such Common Shares
    to the Participant at the then applicable bid price of the Common Shares.
	 	 	 
	 	(b)	Before
    the relevant trade date, the Participant will deliver the exercise notice including details of the trades to the Corporation electing
    the cashless exercise and the Corporation will direct its registrar and transfer agent to issue a certificate for such Participant’s
    Common Shares in the name of the broker (or as the broker may otherwise direct) for the number of Common Shares issued on the exercise
    of the Options, against payment by the broker to the Corporation of (i) the exercise price for such Common Shares; and (ii) the amount
    the Corporation determines, in its discretion, is required to satisfy the Corporation withholding tax and source deduction remittance
    obligations in respect of the exercise of the Options and issuance of Common Shares.
	 	 	 
	 	(c)	The
    broker will deliver to the Participant the remaining proceeds of sale, net of any brokerage commission or other expenses.

 

	5.8	Taxes
    and Source Deductions: The Corporation or an affiliate of the Corporation may take such reasonable steps for the deduction and
    withholding of any taxes and other required source deductions which the Corporation or the affiliate, as the case may be, is required
    by any law or regulation of any governmental authority whatsoever to remit pursuant to the Withholding Obligations in connection
    with this Plan, any Options or any issuance of Common Shares. Without limiting the generality of the foregoing, the Corporation may,
    at its discretion: (i) deduct and withhold those amounts it is required to remit, pursuant to the Withholding Obligations, from any
    cash remuneration or other amount payable to the Participant, whether or not related to the Plan, the exercise of any Options or
    the issue of any Common Shares; or (ii) allow the Participant to make a cash payment to the Corporation equal to the amount required
    to be remitted, pursuant to the Withholding Obligations, which amount shall be remitted by the Corporation to the appropriate governmental
    authority for the account of the Participant. Where the Corporation considers that the steps undertaken in connection with the foregoing
    result in inadequate withholding or a late remittance of taxes, the delivery of any Common Shares to be issued to a Participant on
    the exercise of Options may be made conditional upon the Participant (or other person) reimbursing or compensating the Corporation
    or making arrangements satisfactory to the Corporation for the payment in a timely manner of all taxes required to be remitted, pursuant
    to the Withholding Obligations, for the account of the Participant.

 

    	 

    	- 13 -

    

 

	5.9	Rights
    Upon an Event of Termination:

 

	 	(a)	If
    an Event of Termination has occurred in respect of a Participant, any unvested Options, to the extent not available for exercise
    as of the date of the Event of Termination, shall, unless otherwise determined by the Administrators in their discretion, forthwith
    and automatically be cancelled, terminated and not available for exercise without further consideration or payment to the Participant.
	 	 	 
	 	(b)	Except
    as otherwise stated herein or otherwise determined by the Administrators in their discretion (provided such determination does not
    exceed a maximum of one year), upon the occurrence of an Event of Termination in respect of a Participant, any vested Options granted
    to the Participant that are available for exercise may be exercised only before the earlier of:

 

	 	(i)	the
    expiry of the Option; and
	 	 	 
	 	(ii)	six
    months after the date of the Event of Termination.

 

	 	(c)	Notwithstanding
    the foregoing subsections 5.9(a) and (b), if a Participant’s employment is terminated for just cause, each Option held by the
    Participant, whether or not then exercisable, shall forthwith and automatically be cancelled and may not be exercised by the Participant.
	 	 	 
	 	(d)	For
    the purposes of this Plan and all matters relating to the Options, the date of the Event of Termination shall be determined without
    regard to any applicable severance or termination pay, damages, or any claim thereto (whether express, implied, contractual, statutory,
    or at common law).

 

	5.10	Record
    Keeping: The Corporation shall maintain an Option register in which shall be recorded:

 

	 	(a)	the
    name and address of each holder of Options;
	 	 	 
	 	(b)	the
    number of Common Shares subject to Options granted to each holder of Options;
	 	 	 
	 	(c)	the
    term of the Option and exercise price, including adjustments for each Option granted; and
	 	 	 
	 	(d)	any
    other information which the Corporation considers appropriate to record in such register.

 

	6.	GENERAL

 

	6.1	Effective
    Date of Plan: The Plan shall be effective as of the Effective Date.

 

    	 

    	- 14 -

    

 

	6.2	Change
    of Control: If there is a Change of Control transaction then, notwithstanding any other provision of this Plan except subsection
    4.3(d) which will continue to apply in all circumstances, the Administrators may, in their sole discretion, determine that any or
    all unvested Restricted Share Units and any or all Options (whether or not currently exercisable) shall vest or become exercisable,
    as applicable, at such time and in such manner as may be determined by the Administrators in their sole discretion such that Participants
    under the Plan shall be able to participate in the Change of Control transaction, including, at the election of the holder thereof,
    by surrendering such Restricted Share Units and Options to the Corporation or a third party or exchanging such Restricted Share Units
    or Options, for consideration in the form of cash and/or securities, to be determined by the Administrators in their sole discretion.
    Notwithstanding the foregoing, with respect to Options of U.S. Participants, any exchange, substitution or amendment of such Options
    will occur only to the extent and in a manner that will not result in the imposition of taxes under Section 409A of the Code, and
    with respect to Restricted Share Units of U.S. Participants, any surrender or other modification of Restricted Share Units will occur
    only to the extent such surrender or other modification will not result in the imposition of taxes under Section 409A of the Code.

 

	6.3	Reorganization
    Adjustments:

 

	 	(a)	In
    the event of any declaration by the Corporation of any stock dividend payable in securities (other than a dividend which may be paid
    in cash or in securities at the option of the holder of Common Shares), or any subdivision or consolidation of Common Shares, reclassification
    or conversion of Common Shares, or any combination or exchange of securities, merger, consolidation, recapitalization, amalgamation,
    plan of arrangement, reorganization, spin off involving the Corporation, distribution (other than normal course cash dividends) of
    company assets to holders of Common Shares, or any other corporate transaction or event involving the Corporation or the Common Shares,
    the Administrators, in the Administrators’ sole discretion, may, subject to any relevant resolutions of the Board, and without
    liability to any person, make such changes or adjustments, if any, as the Administrators consider fair or equitable, in such manner
    as the Administrators may determine, to reflect such change or event including, without limitation, adjusting the number of Options
    and Restricted Share Units outstanding under this Plan, the type and number of securities or other property to be received upon exercise
    or redemption thereof, and the exercise price of Options outstanding under this Plan, provided that the value of any Option or Restricted
    Share Unit immediately after such an adjustment, as determined by the Administrators, shall not exceed the value of such Option or
    Restricted Share Unit prior thereto, as determined by the Administrators.
	 	 	 
	 	(b)	Notwithstanding
    the foregoing, with respect to Options and Restricted Share Units of U.S. Participants, such changes or adjustments will be made
    in a manner so as to not result in the imposition of taxes under Section 409A of the Code and will comply with the requirements in
    subsection 4.3(d).
	 	 	 
	 	(c)	The
    Corporation shall give notice to each Participant in the manner determined, specified or approved by the Administrators of any change
    or adjustment made pursuant to this section and, upon such notice, such adjustment shall be conclusive and binding for all purposes.
	 	 	 
	 	(d)	The
    Administrators may from time to time adopt rules, regulations, policies, guidelines or conditions with respect to the exercise of
    the power or authority to make changes or adjustments pursuant to section 6.2 or section 6.3(a). The Administrators, in making any
    determination with respect to changes or adjustments pursuant to section 6.2 or section 6.3(a) shall be entitled to impose such conditions
    as the Administrators consider or determine necessary in the circumstances, including conditions with respect to satisfaction or
    payment of all applicable taxes (including, but not limited to, withholding taxes).

 

    	 

    	- 15 -

    

 

	6.4	Amendment
    or Termination of Plan:

 

The
Board may amend this Plan or any Restricted Share Unit or any Option at any time without the consent of Participants provided that such
amendment shall:

 

	 	(a)	not
    adversely alter or impair any Restricted Share Unit previously awarded or any Option previously granted except as permitted by the
    provisions of section 6.3 hereof, and, with respect to Restricted Share Units and Options of U.S. Participants, such amendment will
    not result in the imposition of taxes under Section 409A;
	 	 	 
	 	(b)	be
    subject to any regulatory approvals including, where required, the approval of the Exchange; and
	 	 	 
	 	(c)	be
    subject to shareholder approval, where required by the requirements of the Exchange, provided that shareholder approval shall not
    be required for the following amendments:

 

	 	(i)	amendments
    of a “housekeeping nature”, including any amendment to the Plan or a Restricted Share Unit or Option that is necessary
    to comply with applicable laws, tax or accounting provisions or the requirements of any regulatory authority or Exchange and any
    amendment to the Plan or a Restricted Share Unit or Option to correct or rectify any ambiguity, defective provision, error or omission
    therein, including any amendment to any definitions therein;
	 	 	 
	 	(ii)	amendments
    that are necessary or desirable for Restricted Share Units or Options to qualify for favourable treatment under any applicable tax
    law;
	 	 	 
	 	(iii)	a
    change to the vesting provisions of any Restricted Share Unit or any Option (including any alteration, extension or acceleration
    thereof);
	 	 	 
	 	(iv)	a
    change to the termination provisions of any Option or Restricted Share Units (for example, relating to termination of employment,
    resignation, retirement or death) that does not entail an extension beyond the original expiration date (as such date may be extended
    by virtue of section 5.4);
	 	 	 
	 	(v)	the
    introduction of features to the Plan that would permit the Corporation to, instead of issuing Common Shares from treasury upon the
    vesting of the Restricted Share Units, retain a broker and make payments for the benefit of Participants to such broker who would
    purchase Common Shares in the open market for such Participants;
	 	 	 
	 	(vi)	the
    amendment of this Plan as it relates to making lump sum payments to Participants upon the vesting of the Restricted Share Units;
	 	 	 
	 	(vii)	the
    amendment of the cashless exercise feature set out in this Plan; and

 

    	 

    	- 16 -

    

 

	 	(d)	be
    subject to disinterested shareholder approval in the event of any reduction in the exercise price of any Option granted under the
    Plan to an Insider Participant.

 

For
greater certainty and subject to approval by the Exchange (if applicable), shareholder approval shall be required in circumstances where
an amendment to the Plan would:

 

	 	(a)	change
    from a fixed maximum percentage of issued and outstanding Common Shares to a fixed maximum number of Common Shares;
	 	 	 
	 	(b)	increase
    the limits in section 2.2;
	 	 	 
	 	(c)	reduce
    the exercise price of any Option (including any cancellation of an Option for the purpose of reissuance of a new Option at a lower
    exercise price to the same person);
	 	 	 
	 	(d)	extend
    the term of any Option beyond the original term (except if such period is being extended by virtue of section 5.4 hereof); or
	 	 	 
	 	(e)	amend
    this section 6.4.

 

	6.5	Termination:
    The Administrators may terminate this Plan at any time in their absolute discretion. If the Plan is so terminated, no further
    Restricted Share Units shall be awarded and no further Options shall be granted, but the Restricted Shares Units then outstanding
    and credited to Participants’ Accounts and the Options then outstanding shall continue in full force and effect in accordance
    with the provisions of this Plan. Any termination of this Plan shall occur in a manner that will not result in the imposition of
    taxes on a U.S. Participant under Section 409A.
	 	 
	6.6	Transferability:
    A Participant shall not be entitled to transfer, assign, charge, pledge or hypothecate, or otherwise alienate, whether by operation
    of law or otherwise, the Participant’s Restricted Share Units or Options or any rights the Participant has under the Plan.
	 	 
	6.7	Rights
    as a Shareholder: Under no circumstances shall the Restricted Share Units or Options be considered Common Shares nor shall they
    entitle any Participant to exercise voting rights or any other rights attaching to the ownership of Common Shares (including, but
    not limited to, the right to dividend equivalent payments).
	 	 
	6.8	Credits
    for Dividends: Unless otherwise determined by the Administrators, whenever cash or other dividends are paid on Common Shares,
    additional Restricted Share Units will be automatically granted to each Participant who holds Restricted Share Units on the record
    date for such dividends. The number of such Restricted Share Units (rounded to the nearest whole Restricted Share Units) to be credited
    to such Participant as of the date on which the dividend is paid on the Common Shares shall be an amount equal to the quotient obtained
    when (i) the aggregate value of the cash or other dividends that would have been paid to such Participant if the Participant’s
    Restricted Share Units as of the record date for the dividend had been Common Shares, is divided by (ii) the Market Value of the
    Common Shares as of the date on which the dividend is paid on the Common Shares. Restricted Share Units granted to a Participant
    shall be subject to the same vesting conditions (time and performance (as applicable)) as the Restricted Share Units to which they
    relate.

 

    	 

    	- 17 -

    

 

	6.9	No
    Effect on Employment, Rights or Benefits:

 

	 	(a)	The
    terms of employment shall not be affected by participation in the Plan.
	 	 	 
	 	(b)	Nothing
    contained in the Plan shall confer or be deemed to confer upon any Participant the right to continue as a director, officer, employee
    or Consultant nor interfere or be deemed to interfere in any way with any right of the Corporation, the Board or the shareholders
    of the Corporation to remove any Participant from the Board or of the Corporation or any Subsidiary to terminate any Participant’s
    employment or agreement with a Consultant at any time for any reason whatsoever.
	 	 	 
	 	(c)	Under
    no circumstances shall any person who is or has at any time been a Participant be able to claim from the Corporation or any Subsidiary
    any sum or other benefit to compensate for the loss of any rights or benefits under or in connection with this Plan or by reason
    of participation in this Plan.

 

	6.10	Market
    Value of Common Shares: The Corporation makes no representation or warranty as to the future market value of any Common Shares.
    No Participant shall be entitled, either immediately or in the future, either absolutely or contingently, to receive or obtain any
    amount or benefit granted to or to be granted for the purpose of reducing the impact, in whole or in part, of any reduction in the
    market value of the shares of the Corporation or a corporation related thereto.

 

	6.11	Compliance
    with Applicable Law:

 

	 	(a)	If
    any provision of the Plan contravenes any law or any order, policy, by-law or regulation of any regulatory body having jurisdiction,
    then such provision shall be deemed to be amended to the extent necessary to bring such provision into compliance therewith. Notwithstanding
    the foregoing, the Corporation shall have no obligation to register any securities provided for in this Plan under the 1933 Act.
	 	 	 
	 	(b)	The
    award of Restricted Share Units, the grant of Options and the issuance of Common Shares under this Plan shall be carried out in compliance
    with applicable statutes and with the regulations of governmental authorities and the Exchange. If the Administrators determine in
    their discretion that, in order to comply with any such statutes or regulations, certain action is necessary or desirable as a condition
    of or in connection with the award of a Restricted Share Unit, the grant of an Option or the issue of a Common Share upon the vesting
    of a Restricted Share Unit or exercise of an Option, as applicable, that Restricted Share Unit may not vest in whole or in part and
    that Option may not be exercised in whole or in part, as applicable, unless that action shall have been completed in a manner satisfactory
    to the Administrators. Without limiting the foregoing, any Common Shares issued upon the vesting of Restricted Share Units or exercise
    of Options granted pursuant to this Plan must be registered under the 1933 Act, and all applicable state securities laws, or must
    comply with the requirements of an exemption or exclusion therefrom. If the Common Shares issued upon the vesting of Restricted Share
    Units or exercise of Options are issued in the United States or to a U.S. Person in reliance upon an exemption from the registration
    requirements of the 1933 Act and applicable state securities laws, such Common Shares will be “restricted securities”
    (as such term is defined in Rule 144 under the 1933 Act) and the certificate representing such Common Shares will bear a legend restricting
    the transfer of such securities under the 1933 Act and applicable state securities laws. The Board may require that a Participant
    provide certain representations, warranties and certifications to the Corporation to satisfy the requirements of applicable securities
    laws, including without limitation, the registration requirements of the 1933 Act and applicable state securities laws or exemptions
    or exclusions therefrom.

 

    	 

    	- 18 -

    

 

	6.12	Governing
    Law: This Plan shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws
    of Canada applicable therein, and with respect to U.S. Participants, the Code.
	 	 
	6.13	Subject
    to Approval: The Plan is adopted subject to the approval of the Exchange and any other required regulatory approval. To the extent
    a provision of the Plan requires regulatory approval which is not received, such provision shall be severed from the remainder of
    the Plan until the approval is received and the remainder of the Plan shall remain in effect.
	 	 
	6.14	Special
    Terms and Conditions Applicable to U.S. Participants: Options issued to U.S. Participants are intended to be exempt from Section
    409A of the Code pursuant to Treas. Reg. Section 1.409A-1(b)(5)(i)(A) and the Plan and such Options will be construed and administered
    accordingly. Options may be issued to U.S. Participants under the Plan only if the shares with respect to the Options qualify as
    “service recipient stock” as defined in Treas. Reg. Section 1.409A-1(b)(5)(E)(iii). Restricted Share Units awarded to
    U.S. Participants are intended to be either exempt from (e.g., as short-term deferrals) or compliant with Section 409A of the Code
    and such Restricted Share Units will be construed and administered accordingly. Any waiver or acceleration of vesting under the Plan
    or any Restricted Share Unit Agreement for a U.S. Participant may occur only to the extent that such acceleration or waiver will
    not result in the imposition of taxes under Section 409A of the Code. Any payments made under this Plan or any Restricted Share Unit
    Agreement to a U.S. Participant as a result of a termination of employment that are deemed to be subject to Section 409A of the Code
    shall occur only if such termination constitutes a “separation from service” as defined in Treas. Reg. 1.409A-1(h). Additionally,
    any payments resulting from a separation from service made to a U.S. Participant who is a “specified employee” as defined
    in Treas. Reg. 1.409A-1(i) shall be subject to the six month delay in payments required by Treas. Reg. 1.409A-1(3)(v) if such payments
    are deemed to be subject to Section 409A of the Code. Although the Corporation intends Options and Restricted Share Units granted
    to U.S. Participants to be exempt from or compliant with Section 409A, the Corporation makes no representation or guaranty as to
    the tax treatment of such Options and Restricted Share Units. Each U.S. Participant (and any beneficiary or the estate of the Participant,
    as applicable) is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the
    account of such U.S. Participant in connection with this Plan. Neither the Corporation nor any affiliate, nor any employee or director
    of the Corporation or an affiliate, shall have any obligation to indemnify or otherwise hold such U.S. Participant, beneficiary or
    estate harmless from any or all such taxes or penalties.

 

ADOPTED
the 19th day of August, 2019 and Amended on April 14, 2021.

 

    	 

    	 

    

 

Exhibit
A

 

[Insert
of the underlying Common Shares have not been registered under the 1933 Act:

 

THE
RESTRICTED SHARE UNITS AND THE UNDERLYING COMMON SHARES HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“1933 ACT”) OR ANY U.S. STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS
SUCH SECURITIES ARE REGISTERED UNDER THE 1933 ACT AND ALL APPLICABLE U.S. STATE SECURITIES LAWS, OR AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND ALL APPLICABLE U.S. STATE SECURITIES LAWS ARE AVAILABLE. THE TERMS “UNITED STATES” AND “U.S.
PERSON” ARE AS DEFINED IN REGULATION S UNDER THE 1933 ACT.]

 

RESTRICTED
SHARE UNIT AGREEMENT

 

Notice
is hereby given that, effective this ________ day of ________________, __________ (the “Restricted Share Grant Date”)
Draganfly Inc. (the “Corporation”) has granted to ___________________________________________ (the “Participant”),
______________ Restricted Share Units pursuant to the Corporation’s Share Compensation Plan (the “Plan”), a
copy of which has been provided to the Participant.

 

Restricted
Share Units are subject to the following terms:

 

	 	(a)	Pursuant
    to the Plan and as compensation to the Participant, the Corporation hereby grants to the Participant, as of the Restricted Share
    Grant Date, the number of Restricted Share Units set forth above.
	 	 	 
	 	(b)	The
    granting and vesting of the Restricted Share Units and the payment by the Corporation of any payout in respect of any Vested Restricted
    Share Units (as defined below) are subject to the terms and conditions of the Plan, all of which are incorporated into and form an
    integral part of this Restricted Share Unit Agreement.
	 	 	 
	 	(c)	The
    Restricted Share Units shall become vested restricted share units (the “Vested Restricted Share Units”) in accordance
    with the following schedule:

 

	 	(i)	●
    on the 6 month anniversary of the Restricted Share Grant Date;
	 	 	 
	 	(ii)	●
    on the 12 month anniversary of the Restricted Share Grant Date;
	 	 	 
	 	(iii)	●
    on the 18 month anniversary of the Restricted Share Grant Date; and
	 	 	 
	 	(iv)	●
    on the 24 month anniversary of the Restricted Share Grant Date (each a “Vesting Date”).

 

	 	(d)	As
    soon as reasonably practicable and no later than 60 days following the Vesting Date, or, if the Participant is not a U.S. Participant
    (as defined in the Plan), such later date mutually agreed to by the Corporation and the Participant, the Participant shall be entitled
    to receive, and the Corporation shall issue or provide, a payout with respect to those Vested Restricted Share Units in the Participant’s
    Account to which the Vesting Date relates (each a “Payout Date”):

 

    	 

    	- 2 -

    

 

	 	(i)	a
    lump sum payment in cash equal to the number of vested Restricted Share Units recorded in the Participant’s Account multiplied
    by the Market Value of a Common Share on the Payout Date;
	 	 	 
	 	(ii)	the
    number of Common Shares required to be issued to a Participant upon the vesting of such Participant’s Restricted Share Units
    in the Participant’s Account, duly issued as fully paid and non-assessable shares and such Participant shall be registered
    on the books of the Corporation as the holder of the appropriate number of Common Shares; or
	 	 	 
	 	(iii)	any
    combination of the foregoing.

 

subject
to any applicable Withholding Obligations.

 

	 	(e)	The
    Participant acknowledges that:

 

	 	(i)	he
    or she has received and reviewed a copy of the Plan; and
	 	 	 
	 	(ii)	the
    Restricted Share Units have been granted to the Participant under the Plan and are subject to all of the terms and conditions of
    the Plan to the same effect as if all of such terms and conditions were set forth in this Restricted Share Unit Agreement, including
    with respect to termination and forfeiture as set out in Section 4.7 of the Plan.

 

Notwithstanding
anything to the contrary in this Restricted Share Unit Agreement all vesting and issuances or payments, as applicable, in respect of
a Restricted Share Unit evidenced hereby shall be completed no later than December 15 of the third calendar year commencing after the
Restricted Share Grant Date;

 

The
grant of the Restricted Share Units evidenced hereby is made subject to the terms and conditions of the Plan. The Participant agrees
that he/she may suffer tax consequences as a result of the grant of these Restricted Share Units and the vesting of the Restricted Share
Units. The Participant acknowledges that he/she is not relying on the Corporation for any tax advice and has had an adequate opportunity
to obtain advice of independent tax counsel.

 

The
Participant represents and warrants to the Corporation that (i) under the terms and conditions of the Plan the Participant is a bona
fide Eligible Person (as defined in the Plan) entitled to receive Restricted Share Units, and (ii) if the Common Shares issuable pursuant
to the Restricted Share Units have not been registered under the 1933 Act, either (A) the Participant is not in the United States or
a U.S. Person, nor is the Participant acquiring the Restricted Share Units for the benefit of a person in the United States or a U.S.
Person, or (B) an exemption from the registration requirements of the 1933 Act and all applicable state securities laws is available
and the Participant has provided evidence satisfactory to the Corporation to such effect. The Corporation may condition awards and elections
under the Plan upon receiving from the undersigned such representations and warranties and such evidence of registration or exemption
under the 1933 Act and all applicable U.S. state securities laws as is satisfactory to the Corporation, acting in its sole discretion.

 

In
the event of any inconsistency between the terms of this Restricted Share Unit Agreement and the Plan, the terms of the Plan shall prevail
unless otherwise determined in the Plan.

 

	Draganfly
    Inc.	 	 
	 	 	 
	 	 	 
	Authorized
    Signatory	 	Signature
    of Participant
	 	 	 
	 	 	 
	 	 	Name
    of Participant

 

    	 

    	 

    

 

Exhibit
B

 

[Insert
if the underlying Common Shares have not been registered under the 1933 Act:

 

THE
options AND THE optioned shares HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”)
OR ANY U.S. STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS SUCH SECURITIES ARE
REGISTERED UNDER THE 1933 ACT AND ALL APPLICABLE U.S. STATE SECURITIES LAWS, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND ALL APPLICABLE U.S. STATE SECURITIES LAWS ARE AVAILABLE. THE TERMS “UNITED STATES” AND “U.S. PERSON”
ARE AS DEFINED IN REGULATION S UNDER THE 1933 ACT.]

 

Option
Agreement

 

Notice
is hereby given that, effective this ________ day of ________________, __________ (the “Effective Date”) Draganfly
Inc. (the “Corporation”) has granted to ___________________________________________ (the “Participant”),
Options to acquire ______________ Common Shares (the “Optioned Shares”) up to 4:30 p.m. Pacific Time on the __________
day of ____________________, __________ (the “Option Expiry Date”) at an exercise price of Cdn$____________ per Optioned
Share pursuant to the Corporation’s Share Compensation Plan (the “Plan”), a copy of which is attached hereto.

 

Optioned
Shares may be acquired as follows:

 

	 	(f)	[insert
    vesting provisions, if applicable]; and

 

	 	(g)	[insert
    hold period when required].

 

The
grant of the Options evidenced hereby and the Option Expiry Date thereof, is made subject to the terms and conditions of the Plan. The
Participant agrees that he/she may suffer tax consequences as a result of the grant of these Options, the exercise of the Options and
the disposition of Optioned Shares. The Participant acknowledges that he/she is not relying on the Corporation for any tax advice and
has had an adequate opportunity to obtain advice of independent tax counsel.

 

The
Participant represents and warrants to the Corporation that (i) under the terms and conditions of the Plan the Participant is a bona
fide Eligible Person (as defined in the Plan) entitled to receive Options, and (ii) if the Common Shares issuable pursuant to the Restricted
Share Units have not been registered under the 1933 Act, either (A) the Participant is not in the United States or a U.S. Person, nor
is the Participant acquiring the Options or any Optioned Shares for the benefit of a person in the United States or a U.S. Person, or
(B) an exemption from the registration requirements of the 1933 Act and all applicable state securities laws is available and the Participant
has provided evidence satisfactory to the Corporation to such effect. The Participant understands that the Options may not be exercised
in the United States or by or on behalf of a U.S. Person unless the Options and the Option Shares have been registered under the 1933
Act or are exempt from registration thereunder. The Corporation may condition the exercise of the Options upon receiving from the Participant
such representations and warranties and such evidence of registration or exemption under the 1933 Act and all applicable state securities
laws as is satisfactory to the Corporation, acting in its sole discretion.

 

In
the event of any inconsistency between the terms of this Option Agreement and the Plan, the terms of the Plan shall prevail.

 

	Draganfly
    Inc.	 	 
	 	 	 
	 	 	 
	Authorized
    Signatory	 	Signature
    of Participant
	 	 	 
	 	 	 
	 	 	Name
    of Participant

 

    	 

    	 

    

 

Exhibit
C

 

Notice of OPTION EXERCISE

 

	TO:	Draganfly Inc. (the “Corporation”)	 
	 	 	 
	FROM:	 	 
	 	 	 
	DATE:	 	 

 

The
undersigned hereby irrevocably gives notice, pursuant to the Corporation’s Share Compensation Plan (the “Plan”),
of the exercise of the Options to acquire and hereby subscribes for:

 

[check
one]

 

	☐	(a)	all of the Optioned Shares;
    or
	 	 	 
	☐	(b)	_______________ of the
    Optioned Shares,

 

which
are the subject of the Option Agreement attached hereto.

 

Calculation
of total Exercise Price:

 

	 	(i)	number
    of Optioned Shares to be acquired on exercise __________ Optioned Shares
	 	 	 
	 	(ii)	multiplied
    by the Exercise Price per Optioned Share: 	$
    __________
	 	 	 	 
	 	TOTAL
    EXERCISE PRICE, enclosed herewith (unless this is a cashless exercise): 	

    $ __________

 

	A.
    	☐	The
    undersigned (i) at the time of exercise of these Options is not in the “United States” or a “U.S. Person”
    (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended (the “1933 Act”)
    and is not exercising these Options on behalf of a person in the United States or U.S. Person and (ii) did not execute or deliver
    this Notice of Option Exercise in the United States.
	 	 	 
	B.
    	☐	The
    undersigned has delivered an opinion of counsel of recognized standing or other evidence in form and substance satisfactory to the
    Corporation to the effect that an exemption from the registration requirements of the 1933 Act, and applicable state securities laws
    is available for the issuance of the Optioned Shares.
	 	 	 
	C.
    	☐	The
    Optioned Shares have been registered under the 1933 Act.
	 	 	 
	 		Note:
    The undersigned understands that unless Box A or C is checked, the certificates representing the Optioned Shares will bear a legend
    restricting transfer without registration under the 1933 Act and applicable state securities laws unless an exemption from registration
    is available.
	 	 	 
	 		Note:
    Certificates representing Optioned Shares will not be registered or delivered to an address in the United States unless Box B or
    C above is checked.
	 	 	 
	 		Note:
    If Box B is checked, any opinion or other evidence tendered must be in form and substance satisfactory to the Corporation. Holders
    planning to deliver an opinion of counsel or other evidence in connection with the exercise of Options should contact the Corporation
    in advance to determine whether any opinions to be tendered or other evidence will be acceptable to the Corporation.

 

    	 

    	- 2 -

    

 

I
hereby:

 

	☐ 	(a)	unless
    this is a cashless exercise, enclose a cheque payable to “[●]” for the aggregate Exercise Price plus the amount
    of the estimated Withholding Obligations and agree that I will reimburse the Corporation for any amount by which the actual Withholding
    Obligations exceed the estimated Withholding Obligations; or

 

	☐	(b)	advise
    the Corporation that I am exercising the above Options on a cashless exercise basis, in compliance with the procedures established
    from time to time by the Administrators for cashless exercises of Options under the Plan. I will consult with the Corporation to
    determine what additional documentation, if any, is required in connection with my cashless exercise of the above Options. I agree
    to comply with the procedures established by the Corporation for cashless exercises and all terms and conditions of the Plan. Please
    prepare the Optioned Shares certificates, if any, issuable in connection with this exercise in the following name(s):

 

_____________________________________________________

 

______________________________________________________

 

	 	 
	Signature
    of Participant	 
	 	 
	 	 
	Name
    of Participant	 

 

Letter
and consideration/direction received on ________________, 20 _____.

 

[●]

 

	By:	 	 
	 	[Name]	 
	 	[Title]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}]]