Document:

exhibit_101

Execution Version   4131-1342-5212.13      EQUITY CAPITAL CONTRIBUTION AGREEMENT        by and among    CHEVRON NEW ENERGIES, A DIVISION OF CHEVRON U.S.A. INC.,  HYZON ZERO CARBON, INC., and    RAVEN SR, INC.        dated as of December 21, 2022      

 

TABLE OF CONTENTS    Page    i   4131-1342-5212.13    ARTICLE 1 DEFINED TERMS ................................................................................................... 1  1.1 Defined Terms ...................................................................................................... 1  1.2 Interpretation ....................................................................................................... 8  ARTICLE 2 Capital contributions ................................................................................................. 8  2.1 Capital Contributions; Admission as Company Member; Agreements  to Execute Company LLCA and Become a Member of the Company ........... 8  2.2 Funding ................................................................................................................. 9  2.3 Conditions Precedent to the Obligations of Chevron and Raven on the  Funding Date ...................................................................................................... 10  2.4 Conditions Precedent to the Obligations of Raven on the Funding  Date...................................................................................................................... 11  2.5 Conditions Precedent to the Obligations of Chevron on each  Subsequent Funding Date ................................................................................. 12  2.6 Use of Proceeds ................................................................................................... 13  ARTICLE 3 REPRESENTATIONS AND WARRANTIES ....................................................... 13  3.1 Representations and Warranties of Raven and the Company ...................... 13  3.2 Representations and Warranties of Chevron and Hyzon .............................. 19  ARTICLE 4 INDEMNIFICATION ............................................................................................. 21  4.1 Indemnification .................................................................................................. 21  4.2 Limitations on Indemnification ........................................................................ 21  4.3 Limitations on Liability. .................................................................................... 21  4.4 After-Tax Basis................................................................................................... 22  4.5 Procedure for Indemnification with Respect to Third-Party Claims. .......... 22  ARTICLE 5 GENERAL PROVISIONS ..................................................................................... 24  5.1 Exhibits and Schedules ...................................................................................... 24  5.2 Amendment, Modification and Waiver ........................................................... 24  5.3 Severability ......................................................................................................... 24  5.4 Parties in Interest ............................................................................................... 24  5.5 Notices ................................................................................................................. 25  5.6 Confidentiality; Public Statements ................................................................... 25  5.7 Counterparts ...................................................................................................... 26  

 

TABLE OF CONTENTS  (continued)  Page    ii   4131-1342-5212.13    5.8 Entire Agreement ............................................................................................... 26  5.9 GOVERNING LAW .......................................................................................... 26  5.10 Dispute Resolution. ............................................................................................ 26  5.11 Assignment.......................................................................................................... 28  5.12 Relationship of Parties ....................................................................................... 28  5.13 No Agents ............................................................................................................ 28  5.14 Further Assurances ............................................................................................ 28  5.15 Costs .................................................................................................................... 29  5.16 Conflicts of Interest............................................................................................ 29  5.17 Improper Influence. ........................................................................................... 29  5.18 Retention of Records.......................................................................................... 29    

 

  iii   4131-1342-5212.13    Schedules:  Schedule 3.1(j) Company Assets  Schedule 3.1(s) Insurance  Schedule 3.1(t) Third Party Consents  Schedule 3.1(u) Governmental Approvals, Filings and Permits  Schedule 3.1(v) Material Contracts    

 

   4131-1342-5212.13    EQUITY CAPITAL CONTRIBUTION AGREEMENT  This Equity Capital Contribution Agreement (this “Agreement”) is made and entered into  as of December 21, 2022 (the “Execution Date”) by and among Chevron New Energies, a division  of Chevron U.S.A. Inc., a Delaware corporation (“Chevron”), Hyzon Zero Carbon, Inc., a  Delaware corporation (“Hyzon”) and Raven SR, Inc., a Delaware corporation (“Raven”, and  together with Chevron and Hyzon, each, a “Party”, and collectively, the “Parties”).  Recitals:  Raven currently owns one hundred percent (100%) of the issued and outstanding  membership interests in Raven SR S1 LLC, a Delaware limited liability company (the  “Company”).  The Company is undertaking the development, construction, operation and  maintenance of a solid waste to hydrogen generation and production facility located in Richmond,  California (the “Project”).  On the Funding Date (as defined herein), along with the Company, the Parties will enter  into the Limited Liability Company Agreement of the Company (the “Company LLCA”), and  concurrently therewith each Party will make a capital contribution to the Company in consideration  of the issuance by the Company of Units (as defined in the Company LLCA) to each Party, subject  to the applicable terms and conditions contained herein.  NOW, THEREFORE, in consideration of the respective representations, warranties,  covenants, agreements, and conditions hereinafter set forth, and other good and valuable  consideration, the sufficiency of which is hereby acknowledged, the parties to this Agreement  hereby agree as follows:  ARTICLE 1  DEFINED TERMS  1.1 Defined Terms.  Capitalized terms not otherwise defined in this Agreement have  the meanings given such terms in this Section 1.1.  “50% Completion Milestone” is defined in Section 2.5(b).  “Affiliate” is defined in the Company LLCA.  “After-Tax Basis” means, with respect to any payment to be actually or constructively  received by any Person, the amount of such payment (the base payment) supplemented by a further  payment (the additional payment) to that Person so that the sum of the base payment plus the  additional payment shall, after deduction of the amount of all federal income taxes required to be  paid by such Person in respect of the receipt or accrual of the base payment and the additional  payment, and after reduction for the present value (using a 6% discount rate) of any federal income  taxes saved by reason of any basis adjustments arising out of the events giving rise to the base  payment, be equal to the amount required to be received.  For purposes of calculating the federal  income taxes payable or saved by any Person for purposes of this definition, such calculations  shall be made on the assumption that the Person is a domestic corporation (within the meaning of  

 

  2   4131-1342-5212.13    Section 7701 of the Code) that is subject to federal income taxes at the maximum marginal rates  of tax generally applicable to corporations for the relevant periods.   “Agreement” is defined in the introductory paragraph hereof.  “Appellate Rules” has the meaning set forth in Section 5.10(b)(E).  “Applicable Law” is defined in the Company LLCA.  “Bankruptcy” or “Bankrupt” means, with respect to any Person, that (a) such Person (i)  makes a general assignment for the benefit of creditors; (ii) files a voluntary bankruptcy petition;  (iii) becomes the subject of an order for relief or is declared insolvent in any federal or state  bankruptcy or insolvency proceedings; (iv) files a petition or answer seeking for such Person a  reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief  under any law; (v) files an answer or other pleading admitting or failing to contest the material  allegations of a petition filed against such Person in a proceeding of the type described in  subclauses (i) through (iv) of this clause (a); or (vi) seeks, consents to, or acquiesces in the  appointment of a trustee, receiver, or liquidator of such Person or of all or any substantial part of  such Person’s properties; or (b) a proceeding seeking reorganization, arrangement, composition,  readjustment, liquidation, dissolution, or similar relief under any law has been commenced against  such Person, and ninety (90) days have expired without dismissal thereof or with respect to which,  without such Person’s consent or acquiescence, a trustee, receiver, or liquidator of such Person or  of all or any substantial part of such Person’s properties has been appointed and ninety (90) days  have expired without the appointment’s having been vacated or stayed, or ninety (90) days have  expired after the date of expiration of a stay, if the appointment has not previously been vacated.   “Business Day” means a day other than a Saturday, Sunday, or other day on which  commercial banks in California are authorized or required to close.  “Chevron” is defined in the introductory paragraph hereof.  “Code” means the Internal Revenue Code of 1986, as amended from time to time.  “Company” is defined in the Recitals hereof.  “Company Assets” means all assets and properties of every kind, nature, character and  description (whether real, personal or mixed, whether tangible or intangible and wherever situated)  owned by the Company.   “Company LLCA” is defined in the Recitals hereof.  “Company Material Adverse Effect” means any condition, circumstance, transaction,  event, or change that, individually or in the aggregate, causes a material adverse effect on the  business, assets, liabilities, financial condition, or results of operations of the Company or the  Project.  “Confidential Information” is defined in Section 5.7.  

 

  3   4131-1342-5212.13    “Construction Initiation Milestone” is defined in Section 2.5(a).  “Contract” means contracts, agreements, leases, licenses, notes, indentures, obligations,  reinsurance treaties, bonds, security agreements, mortgages, instruments, and other binding  commitments, arrangements, undertakings and understandings (whether written or oral).  “Dollars” or “$” means the lawful currency of the United States of America.  “Encumbrance” means any charge, claim, community property interest, condition,  equitable interest, Lien, option, pledge, collateral assignment, mortgage, deed of trust, security  interest, right of first refusal or restriction of any kind, including any restriction on use, voting,  transfer, receipt of income or exercise of any other attribute of ownership.  “Environmental Laws” means all Applicable Laws pertaining to (a) the prevention,  abatement or elimination of pollution, (b) the protection or preservation of the environment,  wildlife, wildlife habitat, or natural resources, and (c) the use, generation, handling, treatment,  storage, Release, transportation or regulation of, or exposure to, Hazardous Substances, including,  but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act  of 1980 (42 U.S.C. § 9601 et seq.), and the Superfund Amendments and Reauthorization Act of  1986, the Emergency Planning and Community Right to Know Act (42 U.S.C. § 11001 et seq.),  the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), and the  Hazardous and Solid Waste Amendments Act of 1984, the Clean Air Act (42 U.S.C. § 7401 et  seq.), the Federal Water Pollution Control Act (also known as the Clean Water Act) (33 U.S.C.  § 1251 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Safe Drinking  Water Act (42 U.S.C. § 300f et seq.), the Endangered Species Act (16 U.S.C. § 1531 et seq.), the  Migratory Bird Treaty Act (16 U.S.C. § 703 et seq.), the Bald and Golden Eagle Protection Act  (16 U.S.C. §§ 668 et seq.), the Oil Pollution Act of 1990 (33 U.S.C. § 2701 et seq.), the Hazardous  Materials Transportation Act (49 U.S.C. §§ 1801 et seq.), and the Occupational Safety and Health  Act of 1970 (to the extent that it relates to the handling of and exposure to Hazardous Substances  in the workplace); and all state and local counterparts or equivalents of such Applicable Laws,  each as amended or supplemented from time to time.  “Environmental Report” means the Phase I Environmental Site Assessment Update  prepared by Civil & Environmental Consultants, Inc., dated as of December 8, 2022.  “EPC Contract” is defined in the Company LLCA.  “EPC Contractor” is defined in the Company LLCA.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.  “Execution Date” is defined in the introductory paragraph hereof  “Financial Statements” is defined in Section 3.1(h).  “Flow of Funds Memorandum” means the memorandum setting forth the flow of funds  on the Funding Date.  

 

  4   4131-1342-5212.13    “Funding” is defined in Section 2.2(a).  “Funding Date” is defined in Section 2.2(a).  “Funding Date Capital Contribution” is defined in Section 2.1(b).  “GAAP” means generally accepted accounting principles as in effect in the United States  of America consistently applied.  “Government Official” means any officer or employee of any government (including  federal, state, local municipal and national governments, and any governmental department,  agency, company or other instrumentality) or public international organization, or any political  party official or any candidate for political office.   “Governmental Approval” means any and all filings, notifications, orders, certificates,  determinations, registrations, permits, licenses, approvals and authorizations with or of any  Governmental Authority.  “Governmental Authority” means any governmental department, commission, board,  bureau, agency, court or other instrumentality of any country, state, province, county, township or  municipality, jurisdiction, or other political subdivision thereof (including FERC and NERC).  “Hazardous Substances” means:  (a) any pollutant, contaminant, hazardous material, hazardous waste, hazardous  substance, toxic waste, solid waste, and toxic substance as those or similar terms are defined under  any Environmental Law;  (b) any asbestos or asbestos containing material;  (c) polychlorinated biphenyls (“PCBs”), or PCB containing materials or fluids;  (d) radon;  (e) any petroleum, petroleum hydrocarbons, petroleum products, crude oil and any  fractions or derivatives thereof;  (f) per- and polyfluoroalkyl substances; and  (g) any other hazardous, radioactive, toxic or noxious substance, material, pollutant, or  contaminant that, whether by its nature or its use, or exposure to is subject to regulation or could  give rise to liability under any Environmental Laws.  “Hyzon” is defined in the introductory paragraph hereof.  “Indemnified Party” is defined in Section 4.1(a).  “Indemnify” or “Indemnifying” means to indemnify, protect, defend and hold harmless.  

 

  5   4131-1342-5212.13    “Indemnifying Party” is defined in Section 4.1(a).  “Indemnity Claim” means actual damages, losses, costs or expenses (including any loss  of profits, consequential, punitive, incidental or special damages recovered by any Third Person,  and interest, penalties, reasonable attorney’s fees, disbursements and costs of investigations,  deficiencies, levies, duties and imposts).  “IRS” means the Internal Revenue Service or any successor agency.  “Knowledge” means, with respect to Raven, the actual knowledge of the following  personnel of Raven:  Matt Murdock, CEO; Matt Scanlon, CFO; Michael Fatigati, CTO; or John  Scanlon, General Counsel, or those facts which after reasonable inquiry should have been known  to such person.  “Liabilities” means any and all direct or indirect liability, obligation, commitment,  expense, claim, Loss, damage, indebtedness, principal, interest, penalty, guaranty or endorsement  of any type, absolute or contingent, known or unknown, accrued or unaccrued, matured or  unmatured, absolute or contingent, due or to become due, or liquidated or unliquidated.  “License Agreement” means that certain Nonexclusive License and Project Agreement,  dated as of August 2, 2021, by and between Raven (f/k/a Raven SR, LLC) and WCCSL, as  assigned to the Company pursuant to that certain Amendment, Assignment and Assumption  Agreement among Raven, the Company, and WCCSL dated as of the date hereof.  “Liens” means, with respect to any asset, any mortgage, deed of trust, lien, pledge, charge,  security interest, restrictive covenant or easement or Encumbrance of any kind in respect of such  asset, whether or not filed, recorded or otherwise perfected or effective under Applicable Law, or  any interest of a vendor or lessor under any conditional sale agreement, capital lease or other title  retention agreement relating to such asset.  “Loss” or “Losses” means all Liabilities, losses, damages, Taxes, fines, penalties,  judgments, settlements, awards, costs and expenses (including reasonable fees and expenses of  counsel, court or arbitration fees, and other costs and expenses of investigation or defense).  “Material Adverse Effect” means any event, condition, occurrence, change or effect of  whatever nature that has or could reasonably be expected to have a material and adverse effect on:  (a) the status of the business, results of operations or condition (financial or otherwise)  of the Company, the Project or any Party; or  (b) ability of the Company or any Party to perform their respective obligations under  the Material Contracts or the Transaction Documents to which they are a party.  “Material Contract” means:  (a) the License Agreement,  (b) the EPC Contract,  

 

  6   4131-1342-5212.13    (c) the O&M Agreement,  (d) any other Contract related to the Project to which the Company is a party, or by the  terms of which the Company or its assets may be bound, and involves aggregate consideration  payable to or by the Company of $50,000 over the life of such Contract,  (e) any other Contract that provides for non-monetary obligations on the part of the  Company, the non-performance of which obligations could reasonably be expected to have a  Company Material Adverse Effect,  (f) any exclusivity agreements with any contractor, manufacturer, utility or supplier,  (g) any non-compete, non-solicitation, non-circumvention or similar agreements,   (h) any agreement entered into by Raven or its Affiliates for the sale or acquisition of  the Project or any material assets, and   (i) any amendments, modifications, restatements, or supplements to any of the  foregoing.  “Member” is defined in the Company LLCA.  “O&M Agreement” is defined in the Company LLCA.  “Party” or “Parties” is defined in the introductory paragraph hereof.  “Permitted Recipients” is defined in Section 5.7  “Person” means an individual, corporation, partnership, joint venture, limited liability  company, Governmental Authority, unincorporated organization, trust, association, or other entity.    “Project” is defined in the Recitals hereof.  “Project Site” means the site on which the Project is located, as described in the License  Agreement.  “Raven” is defined in the introductory paragraph hereof.  “Release” or “Released” means any spilling, leaking, pumping, pouring, emitting,  emptying, discharging, injecting, escaping, leaching, dumping, or disposing of any Hazardous  Substances.  “Representatives” means, with respect to any Person, the managing member(s), the  officers, directors, employees, representatives or agents (including investment bankers, financial  advisors, attorneys, accountants, brokers and other advisors) of such Person, to the extent that such  officer, director, employee, representative or agent of such Person is acting in his or her capacity  as an officer, director, employee, representative or agent of such Person.  “Securities Act” means the Securities Act of 1933, as amended.  

 

  7   4131-1342-5212.13    “Solvent” means having assets in excess of Liabilities.   “Subsequent Funding” is defined in Section 2.2(b).  “Subsequent Funding Date” is defined in Section 2.2(b).  “Subsequent Funding Date Capital Contribution” is defined in Section 2.1(b)(ii).  “Subsequent Funding Date Capital Contribution (Chevron)” is defined in  Section 2.1(b)(i).  “Subsequent Funding Date Capital Contribution (Hyzon)” is defined in Section  2.1(b)(ii).  “Tax” (and, with correlative meaning, “Taxes” and “Taxable”) means:   (a) any taxes, customs, duties, charges, fees, levies, penalties or other assessments, fees  and other governmental charges imposed by any Governmental Authority, including, but not  limited to, income, profits, gross receipts, net proceeds, windfall profit, severance, property,  personal property (tangible and intangible) production, sales, use, leasing or lease, license, excise,  duty, franchise, capital stock, net worth, employment, occupation, payroll, withholding, social  security (or similar), unemployment, disability, payroll, fuel, excess profits, occupational,  premium, severance, estimated, alternative or add-on minimum, ad valorem, value added,  turnover, transfer, stamp, or environmental tax, or any other tax, custom, duty, fee, levy or other  like assessment or charge of any kind whatsoever, together with any interest, penalty, addition to  tax, or additional amount attributable thereto; and  (b) any liability for the payment of amounts with respect to payment of a type described  in clause (a), including as a result of being a member of an affiliated, consolidated, combined or  unitary group, as a result of succeeding to such liability as a result of merger, conversion or asset  transfer or as a result of any obligation under any tax sharing arrangement or tax indemnity  agreement, or otherwise by operation of law.  “Tax Exempt Person” means (a) the United States, any state or political subdivision  thereof, any possession of the United States, or any agency or instrumentality of any of the  foregoing, (b) any organization which is exempt from tax imposed by the Code (including (1) any  previously tax-exempt organization within the meaning of Section 168(h)(2)(E) of the Code, (2)  any tax-exempt controlled entity within the meaning of Section 168(h)(6)(F)(iii) of the Code unless  such entity makes the election provided in Section 168(h)(6)(F)(ii) of the Code or has such an  election in effect, and (3) any tax-exempt entity within the meaning of Section 168(h)(2) of the  Code), (c) any Person who is not a “United States person” as defined in Section 7701(a)(30) of the  Code, (d) any Indian tribal government described in Section 7701(a)(40) of the Code, and (e) any  partnership or other pass-through entity, any direct or indirect partner (or other holder of an equity  or profits interest) of which is a Person described in clauses (a) through (d); provided, however, if  any such Person owns its interest indirectly through a Taxable C corporation (including a tax- exempt controlled entity within the meaning of Section 168(h)(6)(F)(iii) of the Code that makes  the election provided in Section 168(h)(6)(F)(ii) of the Code or has such an election in effect), then  such Person will not be deemed to be a Tax Exempt Person.   

 

  8   4131-1342-5212.13    “Tax Returns” means any return, report, statement, information return or other document  (including any amendments thereto and any related or supporting information) filed or required to  be filed with any Governmental Authority in connection with the determination, assessment,  collection or administration of any Taxes or the administration of any laws, regulations or  administrative requirements relating to any Taxes, including after the Funding any IRS Form K-1  issued to Members by the Company, information return, claim for refund, amended return or  declaration of estimated Tax.  “Third Person” means a Person other than the Parties or an Affiliate of the Parties.  “Transaction Documents” means the Agreement and the Company LLCA.  “Treasury Regulations” means the final and temporary regulations promulgated under  the Code, as such regulations are in effect on the date hereof.  “Underlying Award” has the meaning set forth in Section 5.10(b)(E).  “United States Person” has the same meaning as in Section 7701(a)(30) of the Code.  “Unit” is defined in the Company LLCA.  “WCCSL” means West Contra Costa Sanitary Landfill, Inc., a California corporation.  1.2 Interpretation.  For purposes of this Agreement, (a) the words “include,”  “includes,” and “including” shall be deemed to be followed by the words “without limitation”;   and (b) the words “herein,” “hereof,” “hereby,” “hereto,” and “hereunder” refer to this Agreement  as a whole.  The definitions given for any defined terms in this Agreement shall apply equally to  both the singular and plural forms of the terms defined.  Whenever the context may require, any  pronoun shall include the corresponding masculine, feminine, and neuter forms.  Unless the  context otherwise requires, references herein:  (x) to Articles, Sections, Schedules, and Exhibits  mean the Articles and Sections of, and Schedules and Exhibits attached to, this Agreement; (y) to  an agreement, instrument, or other document means such agreement, instrument, or other  document as amended, supplemented, and modified from time to time to the extent permitted by  the provisions thereof; and (z) to a statute or law means such statute or law as amended from time  to time and includes any successor legislation thereto and any regulations promulgated thereunder.   This Agreement shall be construed without regard to any presumption or rule requiring  construction or interpretation against the party drafting an instrument or causing any instrument to  be drafted.  The Schedules and Exhibits referred to herein shall be construed with, and as an  integral part of, this Agreement to the same extent as if they were set forth verbatim herein.  ARTICLE 2  CAPITAL CONTRIBUTIONS  2.1 Capital Contributions; Admission as Company Member; Agreements to  Execute Company LLCA and Become a Member of the Company.  (a) Funding Date Capital Contribution.  Subject to the terms and conditions in this  Agreement, on the Funding Date:  

 

  9   4131-1342-5212.13    (i) Chevron shall make a capital contribution to the Company in an amount  equal to Fifteen Million Dollars ($15,000,000) (the “Funding Date Capital Contribution  (Chevron)”), which shall be transmitted to the Company by wire transfer of immediately  available funds to the account specified in the Flow of Funds Memorandum provided in  connection with the Funding Date;  (ii) Hyzon shall make a capital contribution to the Company in an amount equal  to Eight Million Five Hundred Thousand Dollars ($8,500,000) (the “Funding Date  Capital Contribution (Hyzon)”, and together with the Funding Date Capital Contribution  (Chevron), the “Funding Date Capital Contribution”), which shall be transmitted to the  Company by wire transfer of immediately available funds to the account specified in the  Flow of Funds Memorandum provided in connection with the Funding Date;  (iii) Raven shall cause the Company to issue Units to each Party as set forth on  Schedule A to the Company LLCA; and  (iv) Each Party shall execute the Company LLCA and be admitted as a Member  of the Company holding the number of Units set forth on Schedule A to the Company  LLCA.  (b) Subsequent Funding Date Capital Contributions.    (i) Subject to the terms and conditions in this Agreement, on each of the two  (2) Subsequent Funding Dates, Chevron shall make a capital contribution to the Company  in an amount equal to Five Million Dollars ($5,000,000) and Raven shall cause the  Company to issue an additional 20 Units to Chevron (each such capital contribution, a  “Subsequent Funding Date Capital Contribution (Chevron)”).  (ii) Subject to the terms and conditions in this Agreement, on the later to occur  of (x) the second Subsequent Funding Date at the achievement of the 50% Completion  Milestone or (y) September 30, 2023, Hyzon shall make a capital contribution to the  Company in an amount equal to One Million Five Hundred Thousand Dollars ($1,500,000)  and Raven shall cause the Company to issue an additional 6 Units to Hyzon (each such  capital contribution, a “Subsequent Funding Date Capital Contribution (Hyzon)” and  together with each Subsequent Funding Date Capital Contribution (Chevron), each such  capital contribution, a “Subsequent Funding Date Capital Contribution”).  2.2 Funding.  (a) Subject to the terms and conditions of this Agreement, the payment by Chevron  and Hyzon of their respective Funding Date Capital Contribution and the issuance of the Units to  Chevron and Hyzon pursuant to Section 2.1(a) (the “Funding”) will take place on the Execution  Date (the “Funding Date”).  Each of the documents to be delivered pursuant to Section 2.3 and  Section 2.4 shall be deemed to be delivered simultaneously, and no such document shall be of any  force or effect until all such documents are delivered and the delivery to the Company of the  Funding Date Capital Contribution by wire transfer of immediately available funds has occurred.  

 

  10   4131-1342-5212.13    (b) Subject to the terms and conditions of this Agreement, the payment by Chevron of  each of the two (2) Subsequent Funding Date Capital Contributions (Chevron) and the issuance of  additional Units to Chevron pursuant to Section 2.1(b)(i) and the payment by Hyzon of the  Subsequent Funding Date Capital Contribution (Hyzon) and the issuance of additional Units to  Hyzon pursuant to Section 2.1(b)(ii) (each, a “Subsequent Funding”) will take place on the date  upon which all of the conditions set forth in Section 2.5 have either been satisfied or waived in  writing by (x) Chevron with respect to the Construction Initiation Milestone (for the first  Subsequent Funding), (y) Chevron with respect to the 50% Completion Milestone (for the second  Subsequent Funding), or (z) Hyzon with respect to the 50% Completion Milestone or after  September 30, 2023, whichever is later (for its Subsequent Funding), as applicable (each such date,  a “Subsequent Funding Date”).  2.3 Conditions Precedent to the Obligations of Chevron and Raven on the  Funding Date.  The obligations of Chevron and Hyzon to make their respective Funding Date  Capital Contribution on the Funding Date shall be subject to the satisfaction or waiver of each of  the conditions set forth in this Section 2.3 with respect to Chevron or Hyzon, as applicable.  (a) Secretary’s Certificates.  Chevron and Hyzon shall have received from each other  Party and the Company, a certificate, signed by an authorized secretary or officer of the applicable  Party as of the Funding Date, attaching and certifying to:  (i) the incumbency of such Party, (ii) a  good standing certificate for such Party, dated as of a recent date, from the Secretary of the State  of Delaware, (iii) resolutions of the board of directors, or other equivalent governing and managing  body of such Party, authorizing and approving the execution of this Agreement, the Company  LLCA, and each of the other Transaction Documents to which it is a party, and the transactions  contemplated hereunder and thereunder, (iv) formation documents and (v) the current operating  agreement of such Party.  (b) Performance; Delivery of Agreements; Material Contracts.  Raven shall have  delivered to Chevron and Hyzon (i) each Material Contract executed prior to or as of the Funding  Date (or if not executed as of the Funding Date, the most recent drafts or term sheets with respect  thereto, to the extent available) and each agreement, instrument and other document delivered in  connection therewith, and (ii) each other Contract in respect of the Company and the Project or in  connection therewith or the business of the Company that has been executed by Raven or the  Company, except for any such Contract that Raven has in good faith determined is not material to  the Company or the Project, which shall, in the case of clause (i) and (ii), each be in form and  substance reasonably satisfactory to Chevron and Hyzon.  Each Contract material to the Project  that is not executed in the name of the Company shall have been so assigned and transferred in a  manner reasonably satisfactory to the Parties.  (c) Representations and Warranties.  Each of the representations of each other Party  and the Company in the Transaction Documents are true and correct as of the Funding Date.    (d) Financial Statements.  Unaudited balance sheets and income statements of the  Company for the most recent fiscal quarter shall have been delivered to Chevron and Hyzon.    (e) Consents and Approvals.  All consents, approvals and filings required to be  obtained or made by Raven or the Company to execute, deliver and perform the Transaction  

 

  11   4131-1342-5212.13    Documents to which it is a party and are required to be obtained or made in connection with the  Funding shall have been obtained or made and are in full force and effect.  (f) Reports. Chevron and Hyzon shall have received the Environmental Report in  form and substance reasonably satisfactory to Chevron and Hyzon.    (g) Insurance Certificates.  Chevron and Hyzon shall have received true, correct and  complete copies of all applicable insurance certificates from the insurance broker with respect to  the insurance policies for the Company and the Project that are described in Schedule 3.1(s)  showing that coverage will remain in effect on the Funding Date, or such other evidence reasonably  satisfactory to Chevron and Hyzon that such insurance policies are in full force and effect.  (h) Flow of Funds Memorandum.  Chevron and Hyzon shall have received a Flow of  Funds Memorandum in form and substance satisfactory to Chevron and Hyzon setting forth the  Funding Date Capital Contribution as determined pursuant to Section 2.1.   (i) FIRPTA Certificate.  Raven shall have delivered to Chevron and Hyzon either  (i) a certificate, dated as of the Funding Date in form reasonably satisfactory to the Parties, sworn  under penalty of perjury, and satisfying the requirements set forth in Treasury Regulation  Section 1.1445-2(b), attesting that Raven (or its owner if Raven is a disregarded entity) is not a  “foreign person” for U.S. federal income tax purposes or (ii) a duly completed IRS Form W-9 of  Raven (or its owner if Raven is a disregarded entity) in compliance with IRS Notice 2018-29.  (j) EPC Contractor Estoppel. Chevron and Hyzon shall have received a fully  executed copy of an estoppel certificate dated as of the Funding Date from the EPC Contractor  with respect to the EPC Contract in form and substance reasonably satisfactory to Chevron and  Hyzon.   2.4 Conditions Precedent to the Obligations of Raven on the Funding Date.  The  obligation of Raven to consummate the Funding will be subject to the satisfaction, on or before  the Funding Date, of each of the conditions set forth in this Section 2.4, any or all of which may  be waived in whole or in part by Raven in its sole discretion.  (a) Secretary’s Certificates.  Raven shall have received, from each other Party, a  certificate, signed by an authorized secretary or officer of the applicable Party as of the Funding  Date, attaching and certifying to:  (i) the incumbency of such Party, (ii) a good standing certificate  for such Party, dated as of a recent date, from the Secretary of the State of Delaware,  (iii) resolutions of the board of directors, or other equivalent governing and managing body of such  Party, authorizing and approving the execution of this Agreement, the Company LLCA, and each  of the other Transaction Documents to which it is a party, and the transactions contemplated  hereunder and thereunder, (iv) formation documents and (v) the current operating agreement of  such Party.  (b) Representations and Warranties.  Each of the representations and warranties of  Chevron and Hyzon in Section 3.2 are true and correct in all material respects as of the Funding  Date except to the extent that any such representation or warranty has been expressly made only  as of an earlier date in which case such representation and warranty was true and correct in all  material respects as of such earlier date and if and to the extent any such representations and  

 

  12   4131-1342-5212.13    warranties are qualified by the words “material,” “Material Adverse Effect” or similar  qualification, true and correct, as qualified on such applicable date.  (c) Consents and Approvals.  All consents, approvals and filings required to be  obtained or made by Chevron or Hyzon to execute, deliver and perform the Transaction  Documents to which each such entity is a party that are required to be executed and delivered on  the Funding Date have been obtained or made and are in full force and effect.  2.5 Conditions Precedent to the Obligations of Chevron and Hyzon on each  Subsequent Funding Date.  The obligations of Chevron and Hyzon to make each of its  Subsequent Funding Date Capital Contribution on each Subsequent Funding Date, as applicable,  shall be subject to the satisfaction or waiver of each of the conditions set forth in this Section 2.5,  any or all of which may be waived in whole or in part by (x) Chevron, with respect to each  Subsequent Funding Date Capital Contribution (Chevron), or (y) Hyzon, with respect to the  Subsequent Funding Date Capital Contribution (Hyzon), in each of its sole discretion.    (a) With respect to the first Subsequent Funding Date, Raven shall have provided  evidence satisfactory to Chevron that the EPC Contractor has initiated construction under and  pursuant to the EPC Contract (the “Construction Initiation Milestone”).  (b) With respect to the second Subsequent Funding Date, Raven shall have provided  evidence satisfactory to Chevron that construction of the Project is at least 50% complete and pre- commissioning activities have been initiated (the “50% Completion Milestone”).   (c) With respect to the Subsequent Funding Date upon which Hyzon makes the  Subsequent Funding Date Capital Contribution (Hyzon), Raven shall have provided evidence  satisfactory to Hyzon that the 50% Completion Milestone has been achieved or September 30,  2023 has occurred, whichever is later.  (d) With respect to both the first and second Subsequent Funding Dates, Raven shall  have provided a certificate to Chevron certifying that no event has occurred and is continuing that  constitutes a default or material violation by Raven under the Company LLCA, or which would,  with notice or the lapse or time or both, constitute such a default or material violation thereof.   (e) With respect to the Subsequent Funding Date upon which Hyzon makes the  Subsequent Funding Date Capital Contribution (Hyzon), Raven shall have provided a certificate  to Hyzon certifying that no event has occurred and is continuing that constitutes a default or  material violation by Raven under the Company LLCA, or which would, with notice or the lapse  or time or both, constitute such a default or material violation thereof.   (f) With respect to each Subsequent Funding Date Capital Contribution (Chevron),  Chevron has not withdrawn from the Company pursuant to its right to do so under Section 4.05(b)  of the Company LLCA.  (g) With respect to the Subsequent Funding Date Capital Contribution (Hyzon), Hyzon  has not withdrawn from the Company pursuant to its right to do so under Section 4.05(b) of the  Company LLCA.  

 

  13   4131-1342-5212.13    2.6 Use of Proceeds.    (a) Funding Date Capital Contributions.  The Funding Date Capital Contributions  will be wired to the Company and immediately deposited into the account specified in the Flow of  Funds Memorandum and the proceeds of the Funding Date Capital Contributions shall be applied  in the following order of priority (all as set forth in the Flow of Funds Memorandum):  (i) First, to fund a security deposit required to be posted under the EPC  Contract in the amount of $20,000,000;  (ii) Second, to the payment of any due and outstanding payments under the EPC  Contract;  (iii) Third, to the payment of any other due and outstanding construction costs  of the Project as set forth on the Construction Budget (as defined in the Company LLCA);  and  (iv) Fourth, to the operating account of the Company.  (b) Subsequent Funding Date Capital Contributions.  The Subsequent Funding  Date Capital Contributions will be wired to a bank account of the Company and the proceeds shall  be applied in the following order of priority:  (i) First, to the payment of any other due and outstanding construction costs of  the Project as set forth on the Construction Budget (as defined in the Company LLCA),  including amounts to be reimbursed to Raven as set forth in the Construction Budget; and  (ii) Second, to the operating account of the Company.  ARTICLE 3  REPRESENTATIONS AND WARRANTIES  3.1 Representations and Warranties of Raven and the Company.  Raven makes the  representations and warranties set forth in this Section 3.1, on behalf of itself and on behalf of the  Company, to Chevron and Hyzon on the Execution Date:  (a) Organization, Good Standing, Etc.  Each of Raven and the Company is an entity  duly organized, validly existing and in good standing under the Applicable Law of its jurisdiction  of organization. The only business activity that has been carried on since its formation or is  currently carried on by the Company is the development and ownership of the Project.  The  Company has the limited liability company power and authority to own, operate and lease its  properties and to carry on its business.  The Company is duly qualified or licensed to do business,  and is in good standing, in each jurisdiction where the character of the properties owned, leased or  operated by it or the nature of its activities makes such qualification or licensing necessary, except  in all jurisdictions other than the state in which the Company was formed where the failure to be  so qualified and in good standing, individually or in the aggregate with any such other failures,  could not reasonably be expected to have a Company Material Adverse Effect.  

 

  14   4131-1342-5212.13    (b) Authority.  (i) Each of Raven and the Company has the full right, power and authority to  perform its obligations hereunder and under the Transaction Documents to which it is a  party;  (ii) The execution, delivery, and performance of the Transaction Documents to  which Raven or the Company are a party, (i) have been duly authorized by all requisite  entity action on the part of Raven or the Company, as applicable, and do not require such  party to obtain any consent or approval that has not been duly obtained; and (ii) do not  contravene in any material respect or result in a default under (A) any provision of any law  or regulation applicable to such party; (B) its governing documents; or (C) any agreement  or instrument to which such party is a party or by which such party is bound;  (iii) Each Transaction Document to which Raven or the Company is a party has  been duly executed and delivered by such party;  (iv) Each Transaction Document to which Raven or the Company is a party is  valid, binding, and enforceable against such party in accordance with its terms, except as  may be limited by Bankruptcy, insolvency, reorganization, moratorium, and other similar  laws of general applicability relating to or affecting creditors’ rights or general equity  principles (regardless of whether considered at law or in equity).  (c) Absence of Litigation.  None of Raven nor the Company:  (i) is subject to any outstanding injunction, judgment, order, decree, ruling, or  charge; or  (ii) is, or to the Knowledge of Raven is threatened in writing with being made,  a party to any action, suit, proceeding, hearing, or investigation of, in, or before any  Governmental Authority or before any arbitrator.  (d) Ownership.  (i) Raven owns, directly of record and beneficially, and holds good and valid  title to, one hundred percent (100%) of the membership interests of the Company on the  Funding Date immediately prior to the admission of Chevron and Hyzon as Members, free  and clear of all Liens.  As of the Funding Date and immediately following admission of  Chevron and Hyzon as Members, there are no membership interests in the Company other  than the Units held by Chevron, Hyzon and Raven.  There are no outstanding options,  warrants, calls, puts, convertible securities, or other Contracts of any nature obligating or  permitting Raven or the Company to issue, deliver, acquire or sell membership interests or  other securities in the Company except as provided herein and in the Transaction  Documents.  (ii) Except as provided in this Agreement and the other Transaction Documents  and Material Contracts, no Person has or will have a right to acquire an ownership interest  the Project or in any property of the Project.  The Company has no subsidiaries.  

 

  15   4131-1342-5212.13    (e) Taxes.      (i) The Company has filed, or caused to be filed on its behalf, all Tax Returns  required to be filed by or with respect to the Company and the Project, and such Tax  Returns are true, correct and complete in all material respects and were filed within the  time and in the manner required by Applicable Law.  (ii) The Company has paid or caused to be paid on its behalf all Taxes with  respect to the Company, including any Taxes shown as due on such returns (other than  those Taxes that it is contesting in good faith and by appropriate proceedings) within the  time and in the manner required by Applicable Law.  No extension of time for filing a Tax  Return required to be filed by or with respect to the Company or its assets or activities has  been received or requested.  No claim has been made by a Tax authority in a jurisdiction  in which the Company does not file Tax Returns that the Company is or may be subject to  taxation by that jurisdiction.  The Company is not currently the subject of any audit or  administrative proceeding with respect to Taxes.  (iii) The Company has no liability for the Taxes of any other Person as a result  of:  (A) having been a member of an affiliated, consolidated, combined or  unitary group;  (B) succeeding to such liability as a result of any merger, conversion or  asset transfer or otherwise as a transferee or successor;  (C) any obligation under any contract (other than a Contract entered into  in the ordinary course of business that is not primarily related to Taxes); or  (D) Applicable Law.  (iv) The Company has not taken a position on any federal, state or local tax  report, tax filing or Tax Return that is inconsistent with the original use by the Company,  for federal income tax purposes, of the Project or any property that is part of the Project.  (f) Financial Statements.  The financial statements provided pursuant to  Section 2.3(d) (the “Financial Statements”) have been prepared in accordance with GAAP, and  present fairly and accurately in all material respects the financial position of the Company as of  such date and the results of operations for the period then ended, subject to normal year-end audit  adjustments and the absence of footnotes.  The Company has no indebtedness and no other  Liabilities.  None of Raven, its Affiliates or any of its or their respective Representatives has any  claims against the Company for Liabilities (known or unknown) or otherwise except those incurred  in accordance with the terms of the applicable Material Contracts and either that do not result from  a breach thereof or are not yet due and payable.  (g) Compliance with Laws.  With the exception of Tax matters (which are addressed  in Section 3.1(e)), Raven (solely with respect to the Company) and the Company are, and at all  times have been, in compliance in all material respects with all Applicable Laws.  Except in  

 

  16   4131-1342-5212.13    connection with the proceedings described in Schedule 3.1(c), none of Raven nor the Company  has received written notice from a Governmental Authority of an actual or potential violation of  any Applicable Laws.  (h) Environmental Matters.  (i) Raven (solely with respect to the Company) and the Company are, and at  all times have been, in material compliance with all Environmental Laws.  (ii) To the Knowledge of Raven, there are no locations or premises within the  Project Site where Hazardous Substances have been Released or are present in the soil or  groundwater, and neither Raven nor the Company has encountered or caused a disturbance  of any pre-existing contaminated soil during the development of the Project, in any case  that:  (A) Raven or the Company would be obligated to report, remove,  remediate or otherwise respond pursuant to any Environmental Law; or  (B) would reasonably be expected to result in a liability of Raven or the  Company to any Person under any Environmental Law.  (iii) None of Raven nor the Company has received written notice from any  Governmental Authority or any other Person of an actual, alleged or potential violation of,  or liability under, any Environmental Law and to the Knowledge of Raven, no actual or  potential violations of Environmental Law are threatened.  (iv) Neither Raven nor the Company has assumed any Liability of a third party  under Applicable Law or Contract pursuant to any Environmental Law.  (i) Real Property.    (i) The Company does not own or lease any real property and has no rights  under easements, rights of way or other rights to real property other than under the License  Agreement.  The Company has not assigned or subleased any of its interests under the  License Agreement.  (ii) Copies of the License Agreement have been provided to Chevron and  Hyzon and such copies are true, accurate, and complete in all material respects.  (iii) Neither Raven nor the Company has been informed in writing by the owner  of any such real property that the Company is in breach of its material obligations under  the License Agreement with respect to such owner.  (j) Company Assets.  Schedule 3.1(j)(1) is a complete and correct list of all of the  Company Assets.  Schedule 3.1(j)(2) sets out all the assets that, to Raven’s Knowledge, will need  to be developed or acquired by Company after the Funding Date in order to complete, own,  operate, and use the Project.  To Raven’s Knowledge, Schedule 3.1(j)(1) and (2) are all of the  assets necessary and required to finance, own, operate and maintain the Project, and the Project  

 

  17   4131-1342-5212.13    Site is sufficient for the construction, commissioning, testing, completion, operation, maintenance  and repair of the Project.  The Company is the sole owner of, and holds good and valid title to, or  a valid leasehold interest in, the Company Assets.  No other Person holds any interest or rights in  or to any Company Assets. There are no Liens or Encumbrances on any of the Company Assets.  (k) Disclosure.  The information pertaining to Raven and the Company furnished by  or on behalf of Raven, the Company, or any of their respective Affiliates in writing (including  items furnished in electronic form and contained in the data room made available to Chevron and  Hyzon) to Chevron or Hyzon for the purposes of evaluating the transactions contemplated by the  Transaction Documents, when taken as a whole, do not contain as of the date made or furnished  any untrue statement of a material fact or omit to state any material fact necessary to make the  statements contained therein not misleading as of the date made or furnished.  (l) Employee Matters.  The Company has no employees.  The Company does not  maintain, nor has it maintained, sponsored, administered, or participated in any employee benefit  plan or arrangement, including any employee benefit plan subject to ERISA.  (m) No Condemnation or Casualty.  No condemnation has occurred or is pending or  threatened in writing with respect to the Project or any portion thereof material to the ownership  or operation of the Project, and no unrepaired casualty exists with respect to the Project or any  portion thereof material to the ownership or operation of such Project or the sale of hydrogen  therefrom.  (n) Affiliate Transaction.  There are no existing Contracts between the Company, on  the one hand, and Raven or any Affiliate of Raven, on the other hand; and (ii) the Company has  no outstanding indebtedness to Raven or any Affiliate thereof.  (o) Tax Character.  The Company is classified as a partnership for U.S. federal  income tax purposes and at all times since its formation has been classified as either a partnership  or a “disregarded entity” within the meaning of Treasury Regulation Section 301.7701-3 for such  purposes.  No elections have been filed with the IRS to treat the Company as an association  Taxable as a corporation for U.S. federal, state or local income tax purposes.  No private letter  ruling has been requested or obtained by Raven or the Company for the transactions contemplated  hereunder from the IRS or any similar written ruling from any state or local Governmental  Authority.  The Company is not a Tax Exempt Person.   (p) Acknowledgement.  Raven acknowledges that, except with respect to the  representations and warranties expressly made Chevron and Hyzon in this Agreement and the other  Transaction Documents, neither Chevron nor Hyzon has made any representation or warranty,  either express or implied, under this Agreement or any of the other Transaction Documents or  otherwise, nor has Raven relied on any representation or warranty not expressly made in this  Agreement or the other Transaction Documents.  (q) United States Person.  Raven (or, if it is a “disregarded entity” for U.S. federal  income Tax purposes, the entity treated as owning its assets for federal income Tax purposes) is a  United States Person not subject to withholding under Section 1446 of the Code and is not a Tax  Exempt Person.    

 

  18   4131-1342-5212.13    (r) No Other Business.  Since its formation, the Company has not conducted any  business other than in connection with the development, construction, ownership and operation of  the Project. The Company is not a party to any Contract other than the Company LLCA, the  Material Contracts, and other Contracts disclosed in this Agreement, or as contemplated by the  Company LLCA.  (s) Insurance.  Schedule 3.1(s) contains a true and complete list of all insurance  policies maintained by the Company and under which the Company or any of the Company Assets  are insured, and such policies are in full force and effect.  Neither Raven nor the Company (i) has  taken any action that has rendered such insurance unenforceable or (ii) has received any notice  from an insurance provider that any such insurance policy is not in full force and effect.  There are  no unpaid claims on any insurance maintained for the Project.   (t) Third Party Consents.  Other than the consents listed in Schedule 3.1(t), no  consents from any third party are required to be obtained by the Raven or the Company for the  execution, delivery and performance by Raven of any Transaction Document or the consummation  of the transactions contemplated therein.  (u) Governmental Approvals, Filings and Permits.    (i) No Governmental Approval of, or filing with, any Governmental Authority  is required to be obtained or made by Raven or the Company for the execution, delivery  and performance by Raven or the Company of any Transaction Document or Material  Contract or the consummation of the transactions contemplated therein, other than the  Governmental Approvals or filings listed on Schedule 3.1(u).  (ii) Schedule 3.1(u) lists all material Governmental Approvals required by  Applicable Law to develop, construct, operate and routinely maintain the Project. Neither  Raven nor the Company have any reason to expect that the Governmental Approvals set  forth on Schedule 3.1 will not be obtained prior to being required under Applicable Law  on commercially reasonable terms.  (v) Material Contracts.  (i) Schedule 3.1(v) lists all Material Contracts executed prior to or as of the  Funding Date, and no such Material Contract has been amended, terminated or otherwise  modified from the form provided to Chevron and Hyzon. True and complete copies of all  Material Contracts executed prior to or as of the Funding Date have been provided to  Chevron and Hyzon.  (ii) Each Material Contract executed prior to or as of the Funding Date is in full  force and effect and is valid, binding and enforceable on the Company and, to the  Knowledge of Raven, on the other parties thereto, except as enforceability may be limited  by applicable bankruptcy and similar laws affecting the enforcement of creditors’ rights  and general equitable principles.  (iii) Except as shown on Schedule 3.1(v), (A) to the Knowledge of Raven, no  action is being taken by any Person to terminate or suspend any Material Contract and  

 

  19   4131-1342-5212.13    (B) none of the Company, or any Affiliate thereof that is a party to a Material Contract, or,  to the Knowledge of Raven, any other party to a Material Contract (1) is in default under a  Material Contract and no event has occurred that (with or without notice or lapse of time)  would reasonably be expected to result in a default under the terms of a Material Contract,  or (2) has received any written notice of termination or suspension of, or force majeure  claim under, any Material Contract.  (iv) The Material Contracts (other than the O&M Agreement) have been duly  executed and delivered by the Company.  (v) The execution, delivery, and performance of the Material Contracts (other  than the O&M Agreement), (i) have been duly authorized by all requisite entity action on  the part of the Company and do not require the Company to obtain any consent or approval  that has not been duly obtained; and (ii) do not contravene in any material respect or result  in a default under (A) any provision of any law or regulation applicable to the Company;  (B) its governing documents; or (C) any agreement or instrument to which the Company  is a party or by which the Company is bound.  (w) Solvency.    (i) Immediately before and immediately after the Funding Date and the  transactions contemplated by the Transaction Documents, Raven will be able to pay its  debts as they become due.    (ii) No transfer of property is being made, and no obligation is being incurred,  in connection with the transactions contemplated by this Agreement with the intent to  hinder, delay or defraud either present or future creditors of Raven or any of its Affiliates.  (iii) Company (a) is Solvent, (b) is not in receivership or dissolution, (c) has not  made any assignment for the benefit of creditors, (d) has not admitted in writing its inability  to pay its debts as they mature, (e) has not been adjudicated Bankrupt or (f) has not filed a  petition in voluntary Bankruptcy, a petition or answer seeking reorganization, or an  arrangement with creditors under the federal Bankruptcy Applicable Laws or any other  similar Applicable Laws, nor has any such petition been filed against such Company.  (x) Prior Acquisition and Development Agreements.  There are no amounts due or  that may become due and owing by the Company in connection with any prior development or  acquisition agreement or related transaction with respect to the Company’s development of the  Project; and there are no build-out restrictions, restrictions on competition, change in control  restrictions, direct or indirect equity ownership transfer restrictions, rights of first refusal, rights of  first offer, or other similar rights that bind the Company, Chevron, Hyzon or any Affiliate of  Chevron or Hyzon with respect to the Project.  3.2 Representations and Warranties of Chevron and Hyzon.  On the Execution  Date, each of Chevron and Hyzon makes the representations and warranties in this Section 3.2 to  each other Party.  

 

  20   4131-1342-5212.13    (a) Organization, Good Standing, Etc.  Such Party is an entity duly organized,  validly existing and in good standing under the Applicable Law of its jurisdiction of organization.  (b) Authority.  (i) Such Party has the full right, power and authority to perform its obligations  hereunder;  (ii) The execution, delivery, and performance of this Agreement and the other  Transaction Documents to which it is party, (i) have been duly authorized by all requisite  entity action on the part of such Party and do not require such Party to obtain any consent  or approval that has not been duly obtained; and (ii) do not contravene in any material  respect or result in a default under (A) any provision of any law or regulation applicable to  such Party; (B) its governing documents; or (C) any agreement or instrument to which such  Party is a party or by which such Party is bound;  (iii) This Agreement and the other Transaction Documents to which it is party  have been duly executed and delivered by Raven;  (iv) This Agreement and the other Transaction Documents to which it is a party  are valid, binding, and enforceable against Raven in accordance with its terms, except as  may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar  laws of general applicability relating to or affecting creditors’ rights or general equity  principles (regardless of whether considered at law or in equity).  (c) Absence of Litigation.  Such Party is not subject to any outstanding injunction,  judgment, order, decree, ruling or charge or, to its knowledge, is threatened in writing with being  made a party to any action, suit, proceeding, hearing or investigation of, in, or before any  Governmental Authority or before any arbitrator that would likely affect its ability to complete the  transactions contemplated in the Transaction Documents to which it is a party.  (d) Accredited Investor.  Such Party is an “Accredited Investor” as such term is  defined in Regulation D under the Securities Act.  Such Party has had a reasonable opportunity to  ask questions of and receive answers from Raven and its Affiliates concerning Raven, the  Company, and the assets to be owned by the Company, and all such questions have been answered  to the full satisfaction of such Party.  Such Party understands that the Units have not been registered  under the Securities Act in reliance on an exemption therefrom, and that none of Raven, its  Affiliates, or the Company is under any obligation to register the membership interests.  Such Party  will not sell, hypothecate or otherwise transfer the membership interests without registering or  qualifying them under the Securities Act and applicable state securities laws or any other  Applicable Laws unless the transfer is exempted from registration or qualification under such laws.   Such Party is acquiring the Units for its own account and not for the account of any other Person  and not with a view to distribution or resale to others in a manner that would violate any federal  or state securities laws.  (e) United States Person.  Such Party (or, if it is a “disregarded entity” for U.S. federal  income Tax purposes, the entity treated as owning its assets for federal income Tax purposes) is a  

 

  21   4131-1342-5212.13    United States Person not subject to withholding under Section 1446 of the Code and is not a Tax  Exempt Person.  ARTICLE 4  INDEMNIFICATION  4.1 Indemnification.  Subject to the limitations set forth in this Article 4, to the fullest  extent permitted by applicable Law, each Party shall defend, indemnify and hold harmless each  other Party (the applicable indemnifying party, the “Indemnitor”), including, in the case of each  non-indemnifying Party, such Party’s Affiliates and their respective partners, managers, members,  shareholders, consultants, Representatives, successors and assigns (each, an “Indemnified Party,”  with each Party and its respective group of Indemnified Parties being referred to collectively as an  “Indemnified Group”) from and against any Loss suffered or incurred by any Indemnified Party  to the extent arising out of or resulting from (a) the inaccuracy or breach of any representation or  warranty of the Indemnitor contained in this Agreement; or (b) the nonfulfillment or breach or  default by the Indemnitor of any covenant or agreement of such Indemnitor contained in this  Agreement. Notwithstanding the foregoing, no Indemnified Party shall be entitled to any  indemnification hereunder in respect of any Loss to the extent caused by the fraud, gross  negligence, or willful misconduct by such Person.  4.2 Limitations on Indemnification.    (a) Timing of Claims.  Notwithstanding the provisions of Section 4.1, all claims by an  Indemnified Party for indemnification pursuant to this Article 4 resulting from claims arising from  breaches of representations or warranties set forth in this Agreement shall be forever barred unless  the applicable Indemnified Party has notified Indemnitor of such claims within eighteen (18)  months after time such representation and warranty was made, except that the representations and  warranties set forth in Section 3.1(a), Section 3.1(b), Section 3.1(d), Section 3.1(e), Section 3.2(a)  and Section 3.2(b) (collectively “Fundamental Representations”) shall survive indefinitely;  provided, that, if written notice of a claim for indemnification has been given by such Indemnified  Party on or prior to the last day of the respective foregoing period, as applicable, then the obligation  to indemnify such Indemnified Party pursuant to this Article 4 shall survive with respect to such  claim until such claim is finally resolved.     (b) Payment of Claims. Subject to the terms, conditions, and limitations set forth in this  Article 4, each Indemnity Claim shall be paid by payment of the sums so owing in immediately  available funds promptly and in any event within 15 days after the date an Indemnitor agrees in  writing that it is liable for such claim (or any portion thereof) or the date of a final non-appealable  determination that such Indemnitor is liable for such claim by a court of competent jurisdiction.  4.3 Limitations on Liability.  (a) Notwithstanding any other provision of this Agreement, but subject to the terms of  Section 4.2(a), and other than in respect of (A) the Fundamental Representations, (B) Taxes, or  (C) fraud, gross negligence, willful misconduct, the Indemnitor shall not have an obligation to  indemnify the Indemnified Party or Indemnified Group, until the aggregate of all claimed Losses  under this Agreement exceeds $50,000, at which point the full amount of Losses shall be  

 

  22   4131-1342-5212.13    recoverable, and the aggregate liability of each Party under this Agreement from any and all  causes, whether based in contract, tort (including negligence), strict liability, law, or equity, or any  other cause of action, shall not exceed $12,500,000.  (b) For purposes of this Article 4, the amount of Losses arising out of any inaccuracy  in or breach of any representations or warranties of a Party in this Agreement for which another  Party is entitled to indemnification under this Article 4 shall be calculated as if the terms “material”  and “Material Adverse Effect” (and variations thereof) were omitted from such representations  and warranties.  4.4 After-Tax Basis.  For tax reporting purposes, to the maximum extent permitted by  the Code, each Party will agree to treat all amounts paid under any of the provisions of this  Article 4 as a return of the capital contribution (or otherwise as a nontaxable reimbursement,  contribution or return of capital, as the case may be).  To the extent any such indemnification  payment is includable as income of an Indemnified Party as determined by agreement of the  Parties, or if there is no agreement, by an opinion of a nationally-recognized tax counsel selected  jointly by the Parties that such amount is “more likely than not” includable as income of the  recipient for U.S. federal income tax purposes, the amount of the payment shall be on an After- Tax Basis.  If an opinion is delivered in accordance with the foregoing sentence, the Indemnified  Party shall report the relevant indemnification payments as income consistent with such opinion  and otherwise act in a manner consistent with such opinion.  4.5 Procedure for Indemnification with Respect to Third-Party Claims.  (a) An Indemnified Party shall give written notice to the Indemnitor within 10 days  after it has actual knowledge of commencement or assertion of any action, proceeding, written  demand, complaint or claim by a third party (collectively, “Third Party Claims”) in respect of  which the Indemnified Party may seek indemnification under Section 4.1. Such notice shall state  the nature and basis of such Third Party Claim and the events and the amounts thereof to the extent  known. Any failure to so notify the Indemnitor shall not relieve the Indemnitor from any liability  that the Indemnitor may have to the Indemnified Party under this Article 4, except to the extent  the failure to give such notice materially and adversely prejudices the Indemnitor.  (b) In case any such action, proceeding or claim is brought against an Indemnified  Party, so long as Indemnitor has acknowledged in writing to the Indemnified Party Indemnitor’s  unqualified liability for such Third Party Claim pursuant to this Section 4.5 within 5 days of  receiving notice thereof, the Indemnitor shall be entitled to participate in and (unless in the  reasonable judgment of the Indemnified Party a conflict of interests between it and the Indemnitor  may exist in respect of such Third Party Claim or such Third Party Claim entails a material risk of  criminal penalties or civil fines or non-monetary sanctions being imposed on the Indemnified Party  or a risk of materially adversely affecting the Indemnified Party’s business (any such claim, a  “Third Party Penalty Claim”)) to assume the defense thereof, with counsel selected by the  Indemnitor and reasonably satisfactory to the Indemnified Party, and after timely notice from the  Indemnified Party to the Indemnitor of its election so to assume the defense thereof, but subject to  clause (c) below, the Indemnitor shall not be liable to the Indemnified Party for any legal or other  expenses subsequently incurred by the latter in connection with the defense thereof other than  reasonable costs of investigation or defending such portion of such Third Party Penalty Claim;  

 

  23   4131-1342-5212.13    provided, that the Indemnitor must conduct the defense of the Third Party Claim actively and  diligently thereafter in order to preserve its rights in this regard.  (c) In the event that (i) the Indemnitor advises an Indemnified Party that the Indemnitor  will not contest a claim for indemnification hereunder, (ii) the Indemnitor fails, within 10 days of  receipt of any indemnification notice to notify, in writing, such Indemnified Party of its election,  to defend, settle or compromise, at its sole cost and expense, any such Third Party Claim (or  discontinues, or fails to pursue in an active and diligent manner, its defense at any time after it  commences such defense), (iii) in the reasonable judgment of the Indemnified Party, a conflict of  interests between it and the Indemnitor exists in respect of such Third Party Claim or the action or  claim is a Third Party Penalty Claim or (iv) the Indemnitor contests its obligation to indemnify the  Indemnified Party with respect to such Third Party Claim under this Agreement, then in any such  case, the Indemnified Party may, at its option, defend, settle or otherwise compromise or pay such  action or claim or Third Party Claim, in each case, at the sole cost and expense of the Indemnitor,  and the Indemnitor shall reimburse the Indemnified Party for the expenses thereof promptly, and  in any event within 10 Business Days of the Indemnified Party’s submission of periodic bills. If  the Indemnitor shall assume the defense of any Third Party Claim, the Indemnified Party may  participate, at its own expense, in the defense of such Third Party Claim; provided, however, that  such Indemnified Party shall be entitled to participate in any such defense with separate counsel  at the expense of the Indemnitor (A) if so requested by the Indemnitor to participate and/or (B) in  the event of any situation described in clauses (i) through (iv) in the preceding sentence. In any  event, unless and until the Indemnitor elects in writing to assume and does so assume the defense  of any such claim, proceeding or action, the Indemnitor shall be liable for the Indemnified Party’s  reasonable costs and expenses arising out of the defense, settlement or compromise of any such  action, claim or proceeding. The Indemnified Party shall cooperate to the extent commercially  reasonable with the Indemnitor in connection with any negotiation or defense of any such action  or claim by the Indemnitor. The Parties agree to provide reasonable access to the other to such  documents and information as may be reasonably requested in connection with the defense,  negotiation or settlement of any such Third Party Claim. The Indemnitor or the Indemnified Party,  whichever has assumed the defense of an action or claim, shall keep the Indemnified Party or the  Indemnitor, respectively, fully apprised at all times as to the status of the defense or any settlement  negotiations with respect thereto; provided, however, that the failure to keep the Indemnitor so  informed shall not affect the obligations of the Indemnitor hereunder. If the Indemnitor elects to  defend any such action or claim, then the Indemnified Party shall be entitled to participate in such  defense with counsel of its choice at its sole cost and expense.  The Indemnitor shall not be liable  for any settlement of any action, claim or proceeding effected without its written consent;  provided, however, that the Indemnitor shall not unreasonably withhold, delay or condition any  such consent. Notwithstanding anything in this Section 4.5 to the contrary, the Indemnitor shall  not, without the Indemnified Party’s prior written consent, (i) settle or compromise any claim or  consent to entry of judgment in respect thereof which involves any condition other than payment  of money by the Indemnified Party, (ii) settle or compromise any claim or consent to entry of  judgment in respect thereof without first demonstrating to Indemnified Party the ability to pay such  claim or judgment, or (iii) settle or compromise any claim or consent to entry of judgment in  respect thereof that does not include, as an unconditional term thereof, the giving by the claimant  or the plaintiff to the Indemnitor, a full and complete release from all liability in respect of such  claim.   

 

  24   4131-1342-5212.13    (d) Upon making any indemnity payment (other than any indemnity payment relating  to Taxes), the Indemnitor will, to the extent of such indemnity payment, be subrogated to all rights  of the Indemnified Party against any third party, except third parties that provide insurance  coverage to the Indemnified Party or its Affiliates, in respect of the indemnified costs to which the  indemnity payment relates. Without limiting the generality or effect of any other provision hereof,  each such Indemnified Party and the Indemnitor shall duly execute upon request all instruments  reasonably necessary to evidence and perfect the above described subrogation rights, and  otherwise cooperate in the prosecution of such claims at the direction of the Indemnitor.  Nothing  in this Section 4.5 will be construed to require any Party to obtain or maintain any insurance  coverage.  ARTICLE 5  GENERAL PROVISIONS  5.1 Exhibits and Schedules.  All Annexes, Exhibits and Schedules are incorporated  herein by reference.  Any matter disclosed in any section of the Schedules shall be deemed  disclosed for all purposes and all sections of the Schedules to the extent that such disclosure is  applicable to such other sections.  5.2 Amendment, Modification and Waiver.  This Agreement may not be amended  or modified except by an instrument in writing signed by the Parties hereto.  Any such written  amendment or modification will be binding upon the Parties.  No waiver by any party of any of  the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party  so waiving.  No waiver by any party shall operate or be construed as a waiver in respect of any  failure, breach, or default not expressly identified by such written waiver, whether of a similar or  different character, and whether occurring before or after that waiver.  No failure to exercise, or  delay in exercising, any right, remedy, power, or privilege arising from this Agreement shall  operate or be construed as a waiver thereof, nor shall any single or partial exercise of any right,  remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise  of any other right, remedy, power, or privilege.  5.3 Severability.  If any term or provision of this Agreement is held to be invalid,  illegal, or unenforceable under Applicable Law in any jurisdiction, such invalidity, illegality, or  unenforceability shall not affect any other term or provision of this Agreement or invalidate or  render unenforceable such term or provision in any other jurisdiction.  Upon such determination  that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall  negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as  closely as possible in a mutually acceptable manner in order that the transactions contemplated  hereby be consummated as originally contemplated to the greatest extent possible.  5.4 Parties in Interest.  Except as provided in Article 4, which shall be for the benefit  of and enforceable by Indemnified Parties as described therein, this Agreement is for the sole  benefit of the parties hereto (and their respective heirs, executors, administrators, successors, and  permitted assigns) and nothing herein, express or implied, is intended to or shall confer upon any  other Person, including any creditor of the Company, any legal or equitable right, benefit, or  remedy of any nature whatsoever under or by reason of this Agreement.  

 

  25   4131-1342-5212.13    5.5 Notices.  All notices, requests, consents, claims, demands, waivers, and other communications  hereunder shall be in writing and shall be deemed to have been given:  (a) when delivered by hand  (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally  recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email of a  PDF document (with confirmation of transmission) if sent during normal business hours of the  recipient, and on the next Business Day if sent after normal business hours of the recipient; or  (d) on the third day after the date mailed, by certified or registered mail, return receipt requested,  postage prepaid.  Such communications must be sent to the respective parties at the following  addresses (or at such other address for a party as shall be specified in a notice given in accordance  with this Section 5.5):  If to Raven:  RAVEN SR, INC.  Attn:  John Scanlon, General Counsel  PO Box 1360  Pinedale, WY 82941  john.scanlon@ravensr.com  If to Chevron:  CHEVRON NEW ENERGIES, A DIVISION OF CHEVRON U.S.A. INC.  Attn: Roxanne Wisner, Commercial Advisor  1600 Smith St, #36020C  Houston, TX 77002  Mobile +1 832 499 0022  roxanne@chevron.com  with a copy to:  Chevron New Energies Legal   Email:  cneatty@chevron.com    If to Hyzon:  HYZON ZERO CARBON, INC.  Attn: John R. Zavoli, Chief Legal Officer & General Counsel  599 S. Schmidt Road, Bolingbrook, Illinois 60044  john.zavoli@hyzonmotors.com  5.6 Confidentiality; Public Statements.  Each Party shall, and shall cause each of his,  her, or its Affiliates to, maintain, at all times, the confidentiality of all information furnished to  such Party pertaining to the Company or the other Parties (“Confidential Information”), other  than information that such Party can demonstrate (a) is or becomes generally available to the public  other than as a result of a disclosure by such Party or his, her, or its Affiliates; (b) becomes  available to such Party or any of his, her, or its Representatives on a non-confidential basis from a  third party who is not known by such Party to be prohibited by any obligation of confidentiality  owed to the Company from transmitting the information to such Party; or (c) was already in the  

 

  26   4131-1342-5212.13    possession of such Party prior to his, her, or its becoming a Party, provided that the prohibitions  set forth in this Section 5.6 shall not prohibit disclosure of Confidential Information (i) to  Representatives of such Party or his, her, or its Affiliates who, in the reasonable judgment of such  Party, have a need to know such information and shall have agreed to be bound by the provisions  of this Section 5.6 as if a Party; (ii) to any investor in the equity or assets of such Party or its  Affiliates as part of disclosures to such investor in the ordinary course of such Party’s or its  Affiliate’s business, or to any other actual or potential sources of debt or equity financing; (iii) to  any bona fide prospective Transferee (as defined in the Company LLCA) of such Party that shall  have agreed to be bound by the provisions of Section 5.6 as if a Party (such recipients in clauses (i)  through (iii), “Permitted Recipients”); or (iv) as is required to be disclosed by a court of  competent jurisdiction, administrative body, or governmental body or by subpoena, summons, or  legal process, or by Applicable Law, provided that, to the extent permitted by Applicable Law, the  Party required to make such disclosure shall provide to the other Parties prompt notice of such  disclosure.  Each Party agrees to ensure that any of its Permitted Recipients to whom it provides  such information shall comply with the confidentiality obligations imposed and contained in this  Agreement.  The Party that is the recipient of such Confidential Information shall be responsible  for all actions and disclosures of its Permitted Recipients in breach hereof, whether or not such  actions or disclosures occur within the scope of that Permitted Recipient’s authority as a  Representative of such Party. No press or other public announcement, or public statement or  comment in response to any inquiry, relating to the transactions contemplated by the Transaction  Documents shall be issued or made by any Party without the approval of each other Party unless  required by Applicable Law.  5.7 Counterparts.  This Agreement may be executed in counterparts, each of which  shall be deemed an original, but all of which together shall be deemed to be one and the same  agreement.  A signed copy of this Agreement delivered by facsimile, email, or other means of  electronic transmission shall be deemed to have the same legal effect as delivery of an original  signed copy of this Agreement.  5.8 Entire Agreement.  This Agreement (together with the other Transaction  Documents) constitutes the sole and entire agreement of the parties to this Agreement with respect  to the subject matter contained herein and therein, and supersedes all prior and contemporaneous  understandings, agreements, representations, and warranties, both written and oral, with respect to  such subject matter.  5.9 GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY  AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF  DELAWARE, EXCLUDING ANY CONFLICT OF LAWS RULE OR PRINCIPLE THAT  MIGHT REFER THE GOVERNANCE OR CONSTRUCTION OF THIS AGREEMENT  TO THE LAW OF ANOTHER JURISDICTION.  5.10 Dispute Resolution.  (a) In General.  Any questions, disputes or differences among the Parties in any way  relating to or arising out of the validity, interpretation, breach or asserted breach of any provision  of this Agreement (each, a “Dispute”) shall be finally resolved exclusively as set forth in this  Section 5.10.  

 

  27   4131-1342-5212.13    (b) Arbitration.  The Parties’ exclusive means of resolving a Dispute shall be to refer  the matter to binding arbitration conducted in San Francisco, California, in accordance with the  Commercial Arbitration Rules of the American Arbitration Association (“AAA”), pursuant to the  following procedures:  (i) Arbitration Panel.  (A) Selection of Arbitrators.  The arbitration shall be conducted before  a panel of three arbitrators, which arbitrators shall be mutually agreed upon by the  Parties, and one of which shall be mutually agreed upon to serve as the chairperson  of the arbitration panel.  If, within ten days after one Party commences arbitration,  the Parties have been unable to agree upon the three arbitrators or agree upon which  of the arbitrators shall serve as chairperson, then the Parties commencing the  arbitration, on the one hand, and the Party defending the arbitration, on the other  hand, shall each within ten days thereafter choose one arbitrator.  If either side is  unable to make such a joint selection within this time period, then the AAA shall  appoint all three arbitrators and shall designate one of them to act as chairperson.   If the Parties are able to make such a joint selection within this time period, then  the two arbitrators chosen shall, within 20 days after the last of such two arbitrators  were chosen, select the third arbitrator, which arbitrator shall serve as the  chairperson.  If, within such 20-day period, the two arbitrators are unable to agree  upon a third arbitrator, the third arbitrator shall be appointed by the AAA.  The  arbitrators shall render a reasoned award in writing, which award shall be final and  binding on the Parties.  The arbitration hearing shall be commenced, if possible,  within 60 days after the selection of the chairperson and a reasoned award shall be  rendered, if possible, no later than 30 days following the close of the hearing.   Failure to adhere to these time limits shall not be a basis for challenging an arbitral  award.  (B) Qualifications of Chairperson.  The chairperson of the arbitration  panel shall be experienced with the laws of the State of Delaware and shall be a  retired judge with experience in large commercial cases or a practicing commercial  lawyer with a minimum of 15 years of litigation experience.  (C) Interpretation of Provisions.  Notwithstanding anything to the  contrary herein, the arbitration provisions set forth herein, and any arbitration  conducted thereunder, shall be governed exclusively by the rules of the AAA, to  the exclusion of any state or municipal law of arbitration.  (D) Proceeds, Discovery, Awards, Judgments.  Notwithstanding the  foregoing, by agreeing to arbitration, the Parties do not intend to deprive any court  of its jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment, or other  order in aid of arbitration proceedings and the enforcement of any award.  Without  prejudice to such provisional remedies as may be available under the jurisdiction  of a court of competent jurisdiction, the arbitration panel shall have full authority  to grant provisional remedies.  The arbitration panel does not have the power to  award, nor shall the arbitration panel award, any punitive, indirect or consequential  

 

  28   4131-1342-5212.13    damages (however denominated).  Notwithstanding anything in this Section 5.10  to the contrary, the Parties shall be entitled to conduct discovery in connection with  the arbitration to the extent such discovery would be permitted under the Federal  Rules of Civil Procedure in a non-arbitration setting.    (E) Appeals.  The Parties hereby agree that any award in arbitration (an  “Underlying Award”) may be appealed pursuant to the AAA’s Optional Appellate  Arbitration Rules (“Appellate Rules”); that the Underlying Award rendered by the  arbitrator(s) shall, at a minimum, be a reasoned award; and that the Underlying  Award shall not be considered final until after the time for filing the notice of appeal  pursuant to the Appellate Rules has expired. Appeals must be initiated within thirty  (30) days of receipt of an Underlying Award, as defined by Rule A-3 of the  Appellate Rules, by filing a Notice of Appeal with any AAA office.  Following the  appeal process the decision rendered by the appeal tribunal may be entered in any  court of the State of California.    (F) Fees and Costs.  All arbitration fees and costs shall be paid equally,  regardless of which Party prevails.  Each Party shall pay its own costs of legal  representation and witness expenses.  (ii) Pendency of Dispute.  The existence of a Dispute or the pendency of the  dispute settlement or resolution procedures set forth above shall not in and of themselves  relieve or excuse any Party from its ongoing duties and obligations under this Agreement.  (iii) Confidentiality. Except as may be required by Applicable Law or court  order, the Parties shall maintain confidentiality as to all aspects of any arbitration, including  its existence and results, except that nothing herein shall prevent any Party from disclosing  information regarding the arbitration for purposes of enforcing this clause or the award or  seeking provisional remedies from a court of competent jurisdiction.  The Parties shall  obtain the arbitrators’ agreement to preserve the confidentiality of the arbitration.  5.11 Assignment.  This Agreement and all of the provisions hereof will be binding upon  and inure to the benefit of the Parties and their respective successors and permitted assigns.  This  Agreement may only be assigned by a Party with the prior written consent of the other Party, which  consent may be withheld in the sole discretion of the Party required to consent.  5.12 Relationship of Parties.  This Agreement does not constitute a joint venture,  association or partnership (including limited partnership) between the Parties.  No express or  implied term, provision or condition of this Agreement shall create, or shall be deemed to create,  an agency, joint venture, partnership (including limited partnership) or any fiduciary relationship  between the Parties.  5.13 No Agents.  No Party nor any Affiliate thereof has retained any broker, agent or  finder or incurred any liability or obligation for any brokerage fees, commissions or finder fees  with respect to this Agreement or the transactions contemplated hereby.  5.14 Further Assurances.  Each Party covenants and agrees promptly to execute,  deliver, file, or record such agreements, instruments, certificates and other documents and to do  

 

  29   4131-1342-5212.13    and perform such other and further acts and things as any other Party hereto may reasonably  request or as may be otherwise necessary or proper to consummate the transactions contemplated  hereby and to carry out the provisions of this Agreement.   5.15 Costs.  Each Party shall pay all of its own costs and expenses, including the fees  and costs of its attorneys, consultants, contractors and Representatives incurred in connection with  the Transaction Documents and the transactions contemplated herein and therein.  In the event that  any party hereto institutes any legal suit, action, or proceeding, including arbitration, against  another party in respect of a matter arising out of or relating to this Agreement, the prevailing party  in the suit, action, or proceeding shall be entitled to receive, in addition to all other damages to  which he, she, or it may be entitled, the costs incurred by such party in conducting the suit, action,  or proceeding, including reasonable attorneys’ fees and expenses, and court costs.  5.16 Conflicts of Interest.  No Party nor any of their Affiliates or any of their respective  contractors, directors, officers, employees or other personnel may (a) give to or receive from any  director, employee or agent of another Party, or its Affiliates, in connection with this Agreement,  any gift, entertainment or other benefit of significant cost or value, or any commission, fee or  rebate or (b) enter into any business arrangement with any director, employee or agent of another  Party, or its Affiliate (other than as a representative of such Party or its Affiliate), without the prior  written consent of the Party that is not entering into such arrangement.  5.17 Improper Influence.  No Party may offer or make any payment, or offer or give  anything of value to any Government Official, any immediate family member of a Government  Official or any political party to influence the Government Official's or organization's decision, or  to gain any other advantage for such Party or its Affiliates arising out of this Agreement. In  addition, no Party shall offer or make any payment or offer or give anything of value to any person  if the member knows or has reason to believe that any portion of the payment or gift will be given  directly, indirectly or through a third party to any Government Official, any immediate family  member of any Government Official or any political party.  5.18 Retention of Records. Raven will establish and maintain true and correct records  in connection with all matters related to this Agreement. These records shall be maintained and  retained until at least twenty-four (24) months from the end of the calendar year in which this  Agreement is completed or terminated. If any dispute arises under this Agreement, then all records  relevant to the dispute shall be retained at least until the dispute is finally resolved and all  obligations arising out of the resolution of the dispute are satisfied.  [Remainder of page intentionally left blank.  Signature pages to follow.]    

 

  [Raven Richmond - Signature Page to Equity Capital Contribution Agreement]    IN WITNESS WHEREOF, each Party hereto has caused this Agreement to be signed on  its behalf as of the date first written above.  CHEVRON NEW ENERGIES, A DIVISION OF  CHEVRON U.S.A. INC.,  a Delaware corporation  By:  /s/ Austin Knight  Name: Austin Knight  Title: Vice President  

 

  [Raven Richmond - Signature Page to Equity Capital Contribution Agreement]    HYZON ZERO CARBON, INC.,  a Delaware corporation  By: /s/ John Zavoli  Name: John Zavoli   Title: Secretary   

 

  [Raven Richmond - Signature Page to Equity Capital Contribution Agreement]    RAVEN SR, INC.,  a Delaware corporation  By:  /s/ Matt W. Murdock  Name: Matt W. Murdock  Title: CEOThe Alkaline Water Company Inc.: Exhibit 4.20 - Filed by newsfilecorp.com

    

    

    THE ALKALINE WATER COMPANY INC.
(the "Company")

    2020 EQUITY INCENTIVE PLAN

    1. Purpose

    1.1 Purpose. The purpose of this 2020 Equity Incentive Plan (this "Plan") is to: (a) enable the Company and any Affiliate to attract and retain the types of Employees, Consultants, Directors and such other Persons as the Committee may select who will contribute to the Company's long range success; (b) provide incentives that align the interests of Employees, Consultants, Directors and such other Persons as the Committee may select with those of the Shareholders; and (c) promote the success of the Company's business.

    2. Eligibility

    2.1 Eligible Award Recipients. The Persons eligible to receive Awards are, subject to any Applicable Laws, (a) the Employees, Consultants and Directors of the Company and its Affiliates, (b) such other individuals designated by the Committee who are reasonably expected to become Employees, Consultants and Directors after the receipt of Awards and (c) such other Persons as the Committee may select.

    2.2 While the Common Stock is listed on the TSXV, a Participant must be a Director, Employee or Consultant (as defined by the policies of the TSXV) of the Company or a subsidiary of the Company at the time of grant of the Awards, except as otherwise provided by the policies of the TSXV and, for Awards granted to Employees, Consultants or Management Company Employees (as defined by the policies of the TSXV), the Company will ensure that the Participant is a bona fide Employee, Consultant or Management Company Employee, as the case may be.

    2.3 While the Common Stock is listed on the TSXV, except in relation to Consultant Companies (as defined by the policies of the TSXV), the Awards may be granted only to an individual or to a company that is wholly owned by individual eligible for a grant of an Award.

    3. Definitions

    3.1 For the purposes of this Plan, the following terms shall have the following meanings, unless the context indicates otherwise:

    "Affiliate" means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by, or is under common control with, the Company.

    "Applicable Laws" means the requirements related to, or implicated by, the administration of this Plan under applicable state corporate laws, United States federal and state securities laws, the Code, the rules or policies of any stock exchange or quotation system on which the Common Stock is then listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted.

    

    
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    "Award" means any right granted to a Participant under this Plan, which may include the grant of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Awards, Performance Compensation Awards or Other Equity-Based Awards.

    "Award Agreement" means a written agreement, contract, certificate or other document evidencing the terms and conditions of an individual Award granted under this Plan, which may, in the discretion of the Company, be transmitted electronically to any Participant. Each Award Agreement shall be subject to the terms and conditions of this Plan.

    "Beneficial Owner" has the meaning ascribed thereto in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that, in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange Act), such "person" shall be deemed to have beneficial ownership of all securities that such "person" has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time.

    "Board" means the board of directors of the Company, as constituted at an applicable time.

    "Cause" means:

    (a) with respect to any Employee or Consultant:

    (i) if the Employee or Consultant is a party to an employment or service agreement with the Company or any Affiliate and such agreement provides for a definition of "cause" or other similar term, the definition contained therein, or

    (ii) if no such agreement exists, or if such agreement does not define "cause" or other similar term: (A) the commission of, or plea of guilty or no contest to, a felony or a crime involving moral turpitude or the commission of any other act involving willful malfeasance or material fiduciary breach with respect to the Company or an Affiliate, (B) conduct that results in, or is reasonably likely to result in, harm to the reputation or business of the Company or any Affiliate, (C) gross negligence or willful misconduct with respect to the Company or an Affiliate, or (D) material violation of any applicable securities laws;

    (b) with respect to any Director, a determination by a majority of the disinterested Board members that the Director has engaged in any of the following:

    (i) malfeasance in office with respect to the Company or an Affiliate,

    (ii) gross misconduct or neglect with respect to the Company or an Affiliate,

    

    
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    (iii) any false or fraudulent misrepresentation that has induced the Company or any Shareholder to elect or appoint the Director,

    (iv) wilful conversion of funds of the Company or an Affiliate, or

    (v) repeated failure to participate in Board meetings on a regular basis, despite having received proper notice of the meetings in advance.

    The Committee, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant has been discharged for Cause.

    "Change in Control" means:

    (a) the direct or indirect sale, transfer, conveyance or other disposition (other than in a transaction contemplated by subsection (e)), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries, taken as a whole, to any Person that is not an Affiliate;

    (b) the Incumbent Directors ceasing for any reason to constitute at least a majority of the Board;

    (c) the date which is 10 business days prior to the consummation of a complete liquidation or dissolution of the Company;

    (d) the acquisition by any Person of Beneficial Ownership of 50% or more (on a fully diluted basis) of either (i) the then outstanding shares of Common Stock, taking into account as outstanding for this purpose such Common Stock issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to acquire such Common Stock (the "Outstanding Common Stock"); or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "Outstanding Voting Securities"); provided, however, that for purposes of this Plan, the following acquisitions shall not constitute a Change in Control: (A) any acquisition by the Company or any Affiliate, (B) any acquisition by any employee benefit plan sponsored or maintained by the Company or any Affiliate, (C) any acquisition which complies with clauses (i), (ii) and (iii) of subsection (e) of this definition, or (D) in respect of an Award held by a particular Participant, any acquisition by the Participant or any group of Persons including the Participant (or any entity controlled by the Participant or any group of persons including the Participant); or

    (e) the consummation of a reorganization, merger, consolidation, statutory share exchange, business combination or similar form of corporate transaction involving the Company that requires the approval of the Shareholders, whether for such transaction or the issuance of securities in connection with such transaction (in any case, a "Business Combination"), unless immediately following such Business Combination: (i) more than 50% of the total voting power of (A) the entity resulting from such Business Combination (the "Surviving Company"), or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting securities eligible to elect a majority of the members of the board of directors (or the analogous governing body) of the Surviving Company (the "Parent Company"), is represented by the Outstanding Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which the Outstanding Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding Voting Securities among the holders thereof immediately prior to the Business Combination; (ii) no Person (other than any employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company) is or becomes the Beneficial Owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect members of the board of directors of the Parent Company (or the analogous governing body) (or, if there is no Parent Company, the Surviving Company); and (iii) at least a majority of the members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination were Board members at the time of the Board's approval of the execution of the initial agreement providing for such Business Combination.

    

    
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    "Code" means the Internal Revenue Code, as it may be amended from time to time, and any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder.

    "Committee" means the Board or a committee of the Board appointed by the Board to administer this Plan in accordance with Section 4.3 and Section 4.4.

    "Common Stock" means the common stock, $0.001 par value per share, of the Company or such other securities of the Company as may be designated by the Committee from time to time in substitution thereof.

    "Company" means The Alkaline Water Company Inc., a Nevada corporation, and any successor thereto.

    "Consultant" means any individual who performs bona fide services to the Company or an Affiliate, other than as an Employee or Director.

    "Continuous Service" means that a Participant's service with the Company or an Affiliate, whether as an Employee, Consultant or Director, is not interrupted or terminated. A Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which such Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director, or a change in the entity for which such Participant renders such service, provided that there is no interruption or termination of such Participant's Continuous Service; and provided further that if any Award is subject to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For example, a change in status from an Employee of the Company to a Director of an Affiliate will not constitute an interruption of Continuous Service. The Committee, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal or family leave of absence.

    

    
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    "Covered Employee" has the same meaning as set forth in Section 162(m)(3) of the Code, as interpreted by the Internal Revenue Service.

    "Deferred Stock Units (DSUs) "  has the meaning set forth in Section 8.2(b)(ii).

    "Director" means a member of the Board or of the board of directors of any Affiliate.

    "Disability" means, unless the applicable Award Agreement says otherwise, that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment; provided, however, that for the purposes of determining the term of an Incentive Stock Option pursuant to Section 7.1(i), "Disability" shall have the meaning ascribed to it under Section 22(e)(3) of the Code. The determination of whether a Participant has a Disability shall be determined under procedures established by the Committee. Except in situations where the Committee is determining whether a Participant has a Disability for purposes of the term of an Incentive Stock Option pursuant to Section 7.1(i) hereof within the meaning of Section 22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled for purposes of benefits under any long-term disability plan maintained by the Company or any Affiliate in which a Participant participates.

    "Disqualifying Disposition" has the meaning set forth in Section 15.11.

    "Effective Date" shall mean the date as of which this Plan is adopted by the Board.

    "Employee" means any individual, including any Officer or Director, employed by the Company or an Affiliate; provided, that, for the purposes of determining eligibility to receive Incentive Stock Options, "Employee" shall mean an employee of the Company or an Affiliate within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director's fee to a Participant by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company or such Affiliate.

    "Exchange Act" means the United States Securities Exchange Act of 1934, as amended.

    "Fair Market Value" means, as of any date: (a) if the Shares are listed or quoted on any established stock exchange or public market, including the New York Stock Exchange, the Nasdaq Stock Market, the OTCQB, the OTCQX, the TSX Venture Exchange or the Canadian Securities Exchange, the closing price per Share (or if no sales were reported the closing price on the date immediately preceding such date) as quoted on such exchange or public market on the day of determination, as reported in such source as the Committee deems reliable, multiplied by the number of Shares underlying the applicable Award; or (b) if the Shares are not listed or quoted on any established stock exchange or public market, such value as is determined in good faith by the Committee in its sole discretion, which determination shall be conclusive and binding on all Persons.

    

    
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    "Free Standing Rights" has the meaning set forth in Section 8.1(a).

    "Good Reason" means, unless the applicable Award Agreement states otherwise:

    (a) if an Employee or Consultant is a party to an employment or service agreement with the Company or an Affiliate and such agreement provides for a definition of "good reason" or other similar term, the definition contained therein; or

    (b) if no such agreement exists or if such agreement does not define "good reason", the occurrence of one or more of the following without the Participant's express written consent, if such circumstances are not remedied by the Company within 30 days of its receipt of a written notice from the Participant describing the applicable circumstances (which notice must be provided by the Participant within 90 days of the Participant's knowledge of the applicable circumstances): (i) any material, adverse change in the Participant's duties, responsibilities, authority, title, status or reporting structure, (ii) a material reduction in the Participant's base salary or bonus opportunity, or (iii) a geographical relocation of the Participant's principal office location by more than 50 miles.

    "Grant Date" means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting an Award that specifies the key terms and conditions of the Award or, if a later date of grant for the Award is set forth in such resolution, then such date as is set forth in such resolution.

    "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

    "Incumbent Directors" means individuals who, on the Effective Date, constitute the Board, provided that any individual becoming a Director subsequent to the Effective Date whose election or nomination for election to the Board was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such individual is named as a nominee for Director without objection to such nomination) shall be deemed to be an Incumbent Director. No individual initially elected or nominated as a Director as a result of an actual or threatened election contest with respect to the Incumbent Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any Person other than the Incumbent Directors shall be an Incumbent Director.

    "Negative Discretion" means the discretion authorized by this Plan to be applied by the Committee to eliminate or reduce the size of a Performance Compensation Award in accordance with Section 8.3(d)(iv); provided that the exercise of such discretion would not cause such Performance Compensation Award to fail to qualify as "performance-based compensation" under Section 162(m) of the Code.

    "Non-Employee Director" means a Director who is a "non-employee director" within the meaning of Rule 16b-3.

    "Non-Option Award" means any Award other than an Option.

    

    
        - 7 -

    

    "Non-Qualified Stock Option" means an Option that by its terms does not qualify as, or is not intended to qualify as, an Incentive Stock Option.

    "Officer" means a Person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

    "Option" means an Incentive Stock Option or a Non-Qualified Stock Option granted pursuant to this Plan.

    "Option Exercise Price" means the price at which a Share may be purchased upon the exercise of an Option.

    "Optionholder" means a Person to whom an Option is granted pursuant to this Plan or, if applicable, such other Person who holds an outstanding Option.

    "Other Equity-Based Award" means an Award that is not an Option, Stock Appreciation Right, Restricted Award or Performance Compensation Award that is granted under Section 8.4 and is payable by delivery of Common Stock and/or which is measured by reference to the value of Common Stock.

    "Outside Director" means a Director who is an "outside director" within the meaning of Section 162(m) of the Code and Treasury Regulations Section 1.162-27(e)(3) or any successor to such statute and regulation.

    "Participant" means an eligible Person to whom an Award is granted pursuant to this Plan or, if applicable, such other Person who holds an outstanding Award.

    "Performance Compensation Award" means any Award designated by the Committee as a Performance Compensation Award pursuant to Section 8.3.

    "Performance Criteria" means the criterion or criteria that the Committee shall select for purposes of establishing the Performance Goal(s) for a Performance Period with respect to any Performance Compensation Award. The Performance Criteria that will be used to establish the Performance Goal(s) shall be based on the attainment of specific levels of performance of the Company (or an Affiliate, division, business unit or operational unit thereof), and shall be limited to:

    (a) net earnings or net income (before or after taxes);

    (b) basic or diluted earnings per Share (before or after taxes);

    (c) net revenue or net revenue growth;

    (d) gross revenue;

    (e) gross profit or gross profit growth;

    (f) net operating profit (before or after taxes);

    

    
        - 8 -

    

    (g) return on assets, capital, invested capital, equity, or sales;

    (h) cash flow (including operating cash flow, free cash flow and cash flow return on capital);

    (i) earnings before or after taxes, interest, depreciation and/or amortization;

    (j) gross or operating margins;

    (k) improvements in capital structure;

    (l) budget and expense management;

    (m) productivity ratios;

    (n) economic value added or other value added measurements;

    (o) Share price (including growth measures and total Shareholder return);

    (p) expense targets;

    (q) margins;

    (r) operating efficiency;

    (s) working capital targets;

    (t) enterprise value;

    (u) safety record; and

    (v) completion of acquisitions or business expansion.

    Any one or more of the Performance Criteria may be used on an absolute or relative basis to measure the performance of the Company and/or an Affiliate as a whole, or any division, business unit or operational unit of the Company and/or an Affiliate, or any combination thereof, as the Committee may deem appropriate. The Committee may make comparisons to the performance of a group of comparable companies, or data set out in a published or special index that the Committee, in its sole discretion, deems appropriate, or the Committee may make comparisons of matters related to Share price as compared to various stock market indices. The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of Performance Goals pursuant to the Performance Criteria. To the extent required under Section 162 (m) of the Code, the Committee shall, within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), define in an objective fashion the manner of calculating the Performance Criteria it selects to use for such Performance Period. In the event that applicable tax and/or securities laws change to permit the Committee discretion to alter the governing Performance Criteria without obtaining Shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining Shareholder approval.

    

    
        - 9 -

    

    "Performance Formula" means, for a Performance Period, the one or more objective formulas applied against the relevant Performance Goal to determine, with regard to the Performance Compensation Award of a particular Participant, whether all, some portion but less than all, or none of the Performance Compensation Award has been earned for the Performance Period.

    "Performance Goals" means, for a Performance Period, the one or more goals established by the Committee for the Performance Period based upon the Performance Criteria. The Committee is authorized at any time during the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), or at any time thereafter (but only to the extent the exercise of such authority after such period would not cause the Performance Compensation Awards granted to any Participant for the Performance Period to fail to qualify as "performance-based compensation" under Section 162(m) of the Code), in its sole and absolute discretion, to adjust or modify the calculation of a Performance Goal for such Performance Period to the extent permitted under Section 162(m) of the Code in order to prevent the dilution or enlargement of the rights of a Participant in connection with any of the following:

    (a) asset write-downs;

    (b) litigation or claim judgments or settlements;

    (c) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results;

    (d) any reorganization and restructuring programs;

    (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 (or any successor or pronouncement thereto) and/or in management's discussion and analysis of financial condition and results of operations as filed with applicable securities regulators;

    (f) acquisitions or divestitures;

    (g) any other specific unusual or nonrecurring events, or objectively determinable category thereof;

    (h) foreign exchange gains and losses; or

    (i) a change in the Company's fiscal year.

    "Performance Period" means such one or more periods of time (in any case being not less than one fiscal quarter in duration) as the Committee may determine, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant's right to, and the payment of, a Performance Compensation Award.

    

    
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    "Permitted Transferee" means:

    (a) a member of an Optionholder's immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships), any Person sharing the Optionholder's household (other than a tenant or employee), a trust in which any of the foregoing Persons have more than 50% of the beneficial interest, a foundation in which any of the foregoing Persons (or the Optionholder) control the management of assets, or any other entity in which any of the foregoing Persons (or the Optionholder) own more than 50% of the voting interests;

    (b) any Person designated by the Committee in connection with a program established and approved by the Committee pursuant to which Participants may receive a cash payment or other consideration in consideration for the transfer of a Non-Qualified Stock Option; and

    (c) such other transferees as may be permitted by the Committee in its sole discretion.

    "Person" is to be construed broadly and includes an individual, corporation, trust, partnership, governmental authority, or any administrator or executor of any of the foregoing.

    "Plan" means this 2020 Equity Incentive Plan, as amended and/or amended and restated from time to time.

    "Related Rights" has the meaning set forth in Section 8.1(a).

    "Restricted Award" means any Award granted pursuant to Section 8.2(a).

    "Restricted Period" has the meaning set forth in Section 8.2(a).

    "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

    "Securities Act" means the United States Securities Act of 1933, as amended.

    "Share" means a share of Common Stock.

    "Shareholder" means a holder of Shares.

    "Stock Appreciation Right" means the right, pursuant to an Award granted under Section 8.1, to receive, upon exercise, an amount payable in cash or Shares equal to the number of Shares subject to the Stock Appreciation Right that is being exercised multiplied by the excess of: (a) the Fair Market Value of one Share on the date the Award is exercised, over (b) the exercise price specified in the Stock Appreciation Right Award Agreement.

    "Stock for Stock Exchange" has the meaning set forth in Section 7.1(c).

    

    
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    "Ten Percent Shareholder" means a Person who owns (or is deemed to own pursuant to Section 424(d) of the Code) shares possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any of its Affiliates.

    "TSXV" means the TSX Venture Exchange.

    4. Administration

    4.1 Authority of Committee. This Plan shall be administered initially by the Committee. Subject to the terms of this Plan, the Committee's charter and Applicable Laws, and in addition to other express powers and authorization conferred by this Plan, the Committee shall have the authority:

    (a) to construe and interpret this Plan and apply its provisions;

    (b) to promulgate, amend, and rescind rules and regulations relating to the administration of this Plan;

    (c) to authorize any Person to execute, on behalf of the Company, any instrument required to carry out the purposes of this Plan;

    (d) to delegate its authority to one or more Officers with respect to Awards that do not involve Covered Employees or "insiders" within the meaning of Section 16 of the Exchange Act;

    (e) to determine when Awards are to be granted and the applicable Grant Date;

    (f) from time to time to select, subject to the limitations set forth in this Plan, those Participants to whom Awards shall be granted;

    (g) to determine the number of Shares to be made subject to each Award;

    (h) to determine whether each Option is to be an Incentive Stock Option or a Non-qualified Stock Option;

    (i) to prescribe the terms and conditions of each Award, including the exercise price, medium of payment and vesting provisions, and to specify the provisions of the Award Agreement with respect thereto;

    (j) to designate an Award (including a cash bonus) as a Performance Compensation Award and to select the Performance Criteria that will be used to establish the Performance Goals;

    (k) to amend the terms of any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding Award; provided, however, that if any such amendment impairs a Participant's rights or increases a Participant's obligations under an Award, or creates or increases a Participant's federal income tax liability with respect to an Award, such amendment shall also be subject to the Participant's consent;

    

    
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    (l) to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination of their employment for purposes of this Plan, which periods shall be no shorter than the periods generally applicable to Employees under the Company's employment policies;

    (m) to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that triggers anti-dilution adjustments;

    (n) to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in this Plan and any instrument or agreement relating to, or Award granted under, this Plan; and

    (o) to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of this Plan.

    The Committee also may modify the purchase price or the exercise price of any outstanding Award, provided that Shareholder approval shall be required before the repricing is effective if such Shareholder approval is necessary to satisfy any Applicable Laws.

    4.2 Committee Decisions Final. All decisions made by the Committee pursuant to the provisions of this Plan shall be final and binding on the Company and the Participants, unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.

    4.3 Delegation. The Committee may delegate administration of the Plan to a committee or committees of one or more Directors, and the term "Committee" shall apply to any Person(s) to whom such authority has been delegated. The Board shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Committee shall thereafter be to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members, and fill vacancies, however caused, in the Committee. The Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members, the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members, and minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by this Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be advisable.

    4.4 Committee Composition. If the Board establishes a committee to administer the Plan, except as otherwise determined by the Board, the Committee shall consist solely of two or more Non-Employee Directors who are also Outside Directors. The Board shall have discretion to determine whether or not it intends to comply with the exemption requirements of Rule 16b-3 and/or Section 162(m) of the Code. However, if the Board intends to satisfy such exemption requirements, with respect to Awards to any Covered Employee and with respect to any insider subject to Section 16 of the Exchange Act, the Committee shall be a compensation committee of the Board that at all times consists solely of two or more Non-Employee Directors who are also Outside Directors. Within the scope of such authority, the Board or the Committee may: (a) delegate to a committee of one or more members of the Board who are not Outside Directors the authority to grant Awards to eligible Persons who are either: (i) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Award, or (ii) not Persons with respect to whom the Company wishes to comply with Section 162(m) of the Code; or (b) delegate to a committee of one or more members of the Board who are not Non-Employee Directors the authority to grant Awards to eligible Persons who are not then subject to Section 16 of the Exchange Act. Nothing herein shall create an inference that an Award is not validly granted under the Plan in the event Awards are granted under the Plan by a compensation committee of the Board that does not at all times consist solely of two or more Non-Employee Directors who are also Outside Directors.

    

    
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    4.5 Indemnification. In addition to such other rights of indemnification as they may have as Directors or members of the Committee, and to the extent allowed by Applicable Laws, the Committee shall be indemnified by the Company against the reasonable expenses, including attorney's fees, actually incurred in connection with any action, suit or proceeding or in connection with any appeal therein, to which the Committee may be party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted under the Plan, and against all amounts paid by the Committee in settlement thereof (provided, however, that the settlement has been approved by the Company, which approval shall not be unreasonably withheld) or paid by the Committee in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that the Committee did not act in good faith and in a manner which such Person reasonably believed to be in the best interests of the Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained of was unlawful; provided, however, that within 60 days after institution of any such action, suit or proceeding, the Committee shall, in writing, offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.

    5. Shares Subject to this Plan

    5.1 Number of Shares Authorized. Subject to adjustment in accordance with Section 12, a total of 9,000,000 Shares shall be available for the grant of Options and 9,650,000 Shares shall be available for the grant of Non-Option Awards. For so long as any Awards are outstanding, the Company shall keep available at all times such number of Shares as would be issuable on the due exercise of all of such Awards.

    5.2 Limitations on Shares Available for Issuance. While the Common Stock is listed on the TSXV:

    (a) the aggregate number of Shares subject to Options granted, within a 12 month period, to a Participant who is a Consultant (as defined by the policies of the TSXV) is limited to an amount equal to 2% of the issued and outstanding Shares (on a non-diluted basis), calculated on the date an Option is granted to the Participant; and

    

    
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    (b) the aggregate number of Shares subject to Options granted, within a 12 month period, to all Participants (as a group) who are employed to perform Investor Relations Activities (as defined by the policies of the TSXV) is limited to an amount equal to 2% of the issued and outstanding Shares (on a non-diluted basis), calculated on the date an Option is granted to any Participant, provided that such Options must vest in stages over a 12 month period with no more than 1/4 of the Options vesting in any 3 month period.

    5.3 Nature of Shares. Shares available for distribution under this Plan may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner.

    5.4 Effect of Cancellation or Forfeiture of Award. Any Shares underlying an Award that is canceled, forfeited or expires prior to exercise or realization, either in full or in part, shall become available for issuance under this Plan.

    6. Option Eligibility

    6.1 Eligibility for Incentive Stock Options. Incentive Stock Options may be granted only to Employees.

    6.2 Ten Percent Shareholders. A Ten Percent Shareholder shall not be granted an Incentive Stock Option unless the Option Exercise Price is at least 110% of the Fair Market Value at the Grant Date and the Incentive Stock Option is not exercisable after the expiration of five years from the Grant Date.

    7. Option Provisions

    7.1 Each Option shall be evidenced by an Award Agreement, and shall be subject to the conditions set forth in this Section 7 and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options shall be separately designated Incentive Stock Options or Non-Qualified Stock Options at the time of grant, and, if certificates are issued, separate certificates will be issued for Shares purchased on exercise of each type of Option. Notwithstanding the foregoing, the Company shall have no liability to any Participant or any other Person if an Option designated as an Incentive Stock Option fails to qualify as such at any time, or if an Option is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code and the terms of such Option do not satisfy the requirements of Section 409A of the Code. The terms of separate Options need not be identical, but each Award Agreement shall include (through incorporation by reference of provisions of this Plan in the Award Agreement or otherwise) the substance of each of the following provisions:

    (a) Term. Subject to the provisions of Section 6.2 regarding Ten Percent Shareholders: (i) no Option shall be exercisable after the expiration of 10 years from the Grant Date, and (ii) the term of an Option shall be determined by the Committee at the time of grant.

    

    
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    (b) Exercise Price of an Option. Subject to the provisions of Section 6.2 regarding Ten Percent Shareholders, the Option Exercise Price of each Incentive Stock Option shall be not less than 100% of the greater of (i) the Fair Market Value of the Shares underlying the Option on the Grant Date and (ii) the Fair Market Value of the Shares underlying the Option on the trading date immediately preceding the Grant Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Incentive Stock Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. While the Common Stock is listed on the TSXV, the Option Exercise Price shall be determined by the Committee and the Option Exercise Price shall not be less than the price permitted by the TSXV or other regulatory body having jurisdiction and a minimum Option Exercise Price shall not be established unless the Options are allocated to particular persons and the Company shall not grant Options unless and until the Options have been allocated to a particular person or persons.

    (c) Consideration. The Option Exercise Price shall be paid, to the extent permitted by applicable statutes and regulations, either: (a) in cash, certified check or by wire transfer at the time the Option is exercised; or (b) in the discretion of the Committee, upon such terms as the Committee shall approve: (i) by delivery to the Company of a certificate representing Shares, duly endorsed for transfer to the Company, having a Fair Market Value on the date of delivery equal to the Option Exercise Price (or portion thereof) due for the number of Shares being acquired, or by means of attestation whereby the Participant identifies for delivery specific Shares that have an aggregate Fair Market Value on the date of attestation equal to the Option Exercise Price (or portion thereof) and receives a number of Shares equal to the difference between the number of Shares thereby purchased and the number of identified attestation Shares (a "Stock for Stock Exchange"), (ii) pursuant to a "cashless" exercise program established with a broker, (iii) by reduction in the number of Shares otherwise deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate Option Exercise Price at the time of exercise, (iv) by any combination of the foregoing methods, or (v) in any other form of legal consideration that may be acceptable to the Committee. Unless otherwise specifically provided in the Award Agreement, the exercise price of Shares acquired on exercise of an Option that is paid by delivery (or attestation) to the Company of other Shares acquired, directly or indirectly from the Company, shall be paid only by Shares that have been held for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). Notwithstanding the foregoing, during any period during which the Shares are publicly traded, an exercise by a Director or Officer that involves, or may involve, a direct or indirect extension of credit, or arrangement of an extension of credit, by the Company, directly or indirectly, in violation of Section 402(a) of the Sarbanes-Oxley Act of 2002, shall be prohibited with respect to any Award. While the Common Stock is listed on the TSXV, the Option Exercise Price must be paid in cash.

    

    
        - 16 -

    

    (d) Transferability of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of an Optionholder only by such Optionholder. Notwithstanding the foregoing, an Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate another Person who, in the event of the death of such Optionholder, shall thereafter be entitled to exercise such Optionholder's Incentive Stock Option.

    (e) Transferability of a Non-Qualified Stock Option. A Non-Qualified Stock Option may, in the sole discretion of the Committee, be transferable to a Permitted Transferee, upon written approval by the Committee to the extent provided in the Award Agreement. While the Common Stock is listed on the TSXV or if a Non-Qualified Stock Option does not provide for transferability, then such Non-Qualified Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of an Optionholder only by such Optionholder. Notwithstanding the foregoing, an Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate another Person who, in the event of the death of such Optionholder, shall thereafter be entitled to exercise such Optionholder's Non-Qualified Stock Option.

    (f) Vesting of Options. Each Option may, but need not, vest and become exercisable in periodic installments that may, but need not, be equal, and may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Committee may deem appropriate. The vesting provisions of individual Options may vary. No Option may be exercised for a fraction of a Share. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in the terms of any Award Agreement upon the occurrence of a specified event.

    (g) Termination of Continuous Service. Unless otherwise provided in an Award Agreement, or in an employment agreement the terms of which have been approved by the Board, in the event an Optionholder's Continuous Service terminates (other than upon the Optionholder's death or Disability), such Optionholder may exercise its Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of: (a) the date that is three months following the termination of such Optionholder's Continuous Service; or (b) the expiration of the term of the Option as set forth in the Award Agreement; provided that, if the termination of the Optionholder's Continuous Service is by the Company for Cause, all outstanding Options (whether or not vested) held by such Optionholder shall immediately terminate and cease to be exercisable. If, after termination, an Optionholder does not exercise its Option within the time specified in the Award Agreement, such Optionholder's Option shall terminate. While the Common Stock is listed on the TSXV, Options granted to Participants engaged in Investor Relations Activities (as defined by the policies of the TSXV) on behalf of the Company expire 30 days after such Participants cease to perform such Investor Relations Activities for the Company. While the Common Stock is listed on the TSXV, any Option granted to any Optionholder who is a Director, Employee, Consultant or Management Company Employee must expire within 12 months following the date of the termination of such Optionholder's Continuous Service.

    

    
        - 17 -

    

    (h) Extension of Termination Date. An Award Agreement may provide that if the exercise of an Option following the termination of an Optionholder's Continuous Service for any reason would be prohibited at any time because the issuance of Shares in connection therewith would violate the registration requirements under the Securities Act or any other state or federal securities laws, or the rules of any securities exchange or interdealer quotation system, then such Option shall terminate on the earlier of: (a) the expiration of the term of the Option in accordance with Section 7.1(a); or (b) the expiration of a period after termination of the Optionholder's Continuous Service that is three months after the end of the period during which the exercise of such Optionholder's Option would be in violation of such registration or other securities law requirements.

    (i) Disability of Optionholder. Unless otherwise provided in an Award Agreement, in the event that an Optionholder's Continuous Service terminates as a result of such Optionholder's Disability, such Optionholder may exercise its Option (to the extent that such Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of: (a) the date 12 months following such termination; or (b) the expiration of the term of the Option as set forth in the Award Agreement. If, after termination, an Optionholder does not exercise its Option within the time specified herein or in the Award Agreement, such Optionholder's Option shall terminate.

    (j) Death of Optionholder. Unless otherwise provided in an Award Agreement, in the event that an Optionholder's Continuous Service terminates as a result of such Optionholder's death, then such Optionholder's Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder's estate, by a Person who acquired the right to exercise the Option by bequest or inheritance or by a Person designated to exercise the Option upon the Optionholder's death, but only within the period ending on the earlier of: (a) the date that is 12 months following the date of death; or (b) the expiration of the term of such Option as set forth in the Award Agreement. If, after an Optionholder's death, such Optionholder's Option is not exercised within the time specified herein or in the Award Agreement, such Option shall terminate.

    (k) Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Shares underlying any Incentive Stock Options that are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall not be void but rather be treated as Non-Qualified Stock Options.

    

    
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    8. Provisions of Non-Option Awards

    8.1 Stock Appreciation Rights.

    (a) General.  Each Stock Appreciation Right shall be evidenced by an Award Agreement, and shall be subject to the conditions set forth in this Section 8.1 and to such other conditions not inconsistent with this Plan as may be determined by the Committee in its sole discretion and reflected in the applicable Award Agreement. A Stock Appreciation Right may be granted alone (a "Free Standing Right") or in tandem with an Option (a "Related Right").

    (b) Grant Requirements.  Any Related Right that relates to a Non-Qualified Stock Option may be granted at the same time such Non-Qualified Stock Option is granted or at any time thereafter, but before the exercise or expiration of the Non-Qualified Stock Option. Any Related Right that relates to an Incentive Stock Option must be granted at the same time the Incentive Stock Option is granted.

    (c) Term of Stock Appreciation Rights.  The term of a Stock Appreciation Right shall be determined by the Committee and set out in the Award Agreement; provided, however, that no Stock Appreciation Right shall be exercisable later than the tenth anniversary of the Grant Date.

    (d) Vesting of Stock Appreciation Rights.  Each Stock Appreciation Right may, but need not, vest and become exercisable in periodic installments that may, but need not, be equal, and may be subject to such other terms and conditions on the time or times when it may be exercised as the Committee may deem appropriate. The vesting provisions of individual Stock Appreciation Rights may vary. No Stock Appreciation Right may be exercised for a fraction of a Share. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability of a Stock Appreciation Right in the terms of an applicable Award Agreement upon the occurrence of a specified event.

    (e) Exercise and Payment.  Upon exercise of a Stock Appreciation Right, the holder shall be entitled to receive from the Company an amount equal to: (i) the number of Shares subject to the Stock Appreciation Right that is being exercised multiplied by (ii) the excess of (A) the Fair Market Value of a Share on the date such Stock Appreciation Right is exercised, over (B) the exercise price specified in the Stock Appreciation Right. Payment with respect to the exercise of a Stock Appreciation Right shall be made on the date of exercise. Payment shall be made in the form of Shares (with or without restrictions as to substantial risk of forfeiture and transferability, as determined by the Committee in its sole discretion), cash or a combination thereof, as determined by the Committee.

    

    
        - 19 -

    

    (f) Exercise Price.  The exercise price of a Free Standing Right shall be determined by the Committee, but shall be not less than 100% of the greater of (i) the Fair Market Value of the Shares underlying the Free Standing Right on the Grant Date and (ii) the Fair Market Value of the Shares underlying the Free Standing Right on the trading date immediately preceding the Grant Date. A Related Right granted simultaneously with, or subsequent to, the grant of an Option and in conjunction therewith or in the alternative thereto, shall have the same exercise price as the related Option, shall be transferable only upon the same terms and conditions as the related Option, and shall be exercisable only to the same extent as the related Option; provided, however, that a Stock Appreciation Right, by its terms, shall be exercisable only when the Fair Market Value per Share subject to the Stock Appreciation Right and related Option exceeds the exercise price per Share thereof and no Stock Appreciation Rights may be granted in tandem with an Option unless the Committee determines that the requirements of Section 8.1(b) are satisfied.

    (g) Reduction in Underlying Option Shares.  Upon any exercise of a Related Right, the number of Shares for which any related Option shall be exercisable shall be reduced by the number of Shares for which the Stock Appreciation Right has been exercised. The number of Shares for which a Related Right shall be exercisable shall be reduced upon any exercise of any related Option by the number of Shares for which such Option has been exercised.

    8.2 Restricted Awards.

    (a) General.  A Restricted Award is an Award of actual Shares ("Restricted Stock") or hypothetical Share units ("Restricted Stock Units") having a value equal to the Fair Market Value of an identical number of Shares, which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any other purpose for such period (the "Restricted Period") as the Committee shall determine. Each Restricted Award granted under this Plan shall be evidenced by an Award Agreement, and shall be subject to the conditions set forth in this Section 8.2 and to such other conditions not inconsistent with the Plan as may be determined by the Committee in its sole discretion and reflected in the applicable Award Agreement.

    (b) Restricted Stock and Restricted Stock Units.

    (i) Each Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company: (A) an escrow agreement satisfactory to the Committee, if applicable; and (B) the appropriate blank stock power with respect to the Restricted Stock covered by such agreement. If a Participant fails to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and stock power, the Award shall be null and void. Subject to the restrictions set forth in the Award, the Participant generally shall have the rights and privileges of a Shareholder as to such Restricted Stock, including the right to vote such Restricted Stock and the right to receive dividends; provided that, any cash dividends and stock dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant's account, and interest may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee. The cash dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted Stock (and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee, in Shares having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions on such Share and, if such Share is forfeited, the Participant shall have no right to such dividends.

    

    
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    (ii) The terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No Shares shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside funds for the payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder. The Committee may also grant Restricted Stock Units with a deferral feature, whereby settlement is deferred beyond the vesting date until the occurrence of a future payment date or event set forth in an Award Agreement ("Deferred Stock Units"). At the discretion of the Committee, each Restricted Stock Unit or Deferred Stock Unit (representing one Share) may be credited with an amount equal to the cash and stock dividends paid by the Company in respect of one Share ("Dividend Equivalents"). Dividend Equivalents shall be withheld by the Company and credited to the Participant's account, and interest may be credited on the amount of cash Dividend Equivalents credited to the Participant's account at a rate and subject to such terms as determined by the Committee. Dividend Equivalents credited to a Participant's account and attributable to any particular Restricted Stock Unit or Deferred Stock Unit (and earnings thereon, if applicable) shall be distributed in cash or, at the discretion of the Committee, in Shares having a Fair Market Value equal to the amount of such Dividend Equivalents and earnings, if applicable, to the Participant upon settlement of such Restricted Stock Unit or Deferred Stock Unit and, if such Restricted Stock Unit or Deferred Stock Unit is forfeited, the Participant shall have no right to such Dividend Equivalents.

    

    
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    (c) Restrictions

    (i) Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement is used, the Participant shall not be entitled to delivery of the Share certificate; (B) the Shares shall be subject to the restrictions on transferability set forth in the Award Agreement; (C) the Shares shall be subject to forfeiture to the extent provided in the applicable Award Agreement; and (D) to the extent such Shares are forfeited, the Share certificates shall be returned to the Company, and all rights of the Participant to such Shares and as a Shareholder shall terminate without further obligation on the part of the Company.

    (ii) Restricted Stock Units  and Deferred Stock Units awarded to any Participant shall be subject to: (A) forfeiture until the expiration of the Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in the applicable Award Agreement, and to the extent such Restricted Stock Units or Deferred Stock Units are forfeited, all rights of the Participant to such Restricted Stock Units or Deferred Stock Units shall terminate without further obligation on the part of the Company; and (B) such other terms and conditions as may be set forth in the applicable Award Agreement.

    (iii) The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock, Restricted Stock Units and Deferred Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising after the date the Restricted Stock or Restricted Stock Units or Deferred Stock Units are granted, such action is appropriate.

    (d) Restricted Period.  With respect to Restricted Awards, the Restricted Period shall commence on the Grant Date and end at the time or times set forth on a schedule established by the Committee in the applicable Award Agreement.

    (e) Delivery of Restricted Stock and Settlement of Restricted Stock Units. No Restricted Award may be granted or settled for a fraction of a Share. The Committee may, but shall not be required to, provide for an acceleration of vesting in the terms of any Award Agreement upon the occurrence of a specified event. Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in Section 8.2(c) and the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the Participant, or his or her beneficiary, without charge, the stock certificate evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted Period has expired (to the nearest full share) and any cash dividends or stock dividends credited to the Participant's account with respect to such Restricted Stock and the interest thereon, if any. Upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, or at the expiration of the deferral period with respect to any outstanding Deferred Stock Units, the Company shall deliver to the Participant, or its beneficiary, without charge, one Share for each such outstanding vested Restricted Stock Unit or Deferred Stock Unit ("Vested Unit") and cash equal to any Dividend Equivalents credited with respect to each such Vested Unit in accordance with Section 8.2(b)(ii) hereof and the interest thereon or, at the discretion of the Committee, in Shares having a Fair Market Value equal to such Dividend Equivalents and the interest thereon, if any; provided, however, that, if explicitly provided in the applicable Award Agreement, the Committee may, in its sole discretion, elect to pay cash or part cash and part Shares in lieu of delivering only Shares for Vested Units. If a cash payment is made in lieu of delivering Shares, the amount of such payment shall be equal to the Fair Market Value of the Shares as of the date on which the Restricted Period lapsed in the case of Restricted Stock Units, or the delivery date in the case of Deferred Stock Units, with respect to each Vested Unit.

    

    
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    (f) Share Restrictions.  Each certificate representing Restricted Stock awarded under the Plan shall bear a legend in such form as the Company deems appropriate.

    8.3 Performance Compensation Awards.

    (a) General.  The Committee shall have the authority, at the time of grant of any Award (other than Options and Stock Appreciation Rights), to designate such Award as a Performance Compensation Award in order to qualify such Award as "performance-based compensation" under Section 162(m) of the Code. In addition, the Committee shall have the authority to make an Award of a cash bonus to any Participant and designate such Award as a Performance Compensation Award in order to qualify such Award as "performance-based compensation" under Section 162(m) of the Code.

    (b) Eligibility.  The Committee will, in its sole discretion, designate within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), which Participants will be eligible to receive Performance Compensation Awards in respect of such Performance Period. However, designation of a Participant eligible to receive an Award hereunder for a Performance Period shall not in any manner entitle the Participant to receive payment in respect of any Performance Compensation Award for such Performance Period. The determination as to whether or not such Participant becomes entitled to payment in respect of any Performance Compensation Award shall be decided solely in accordance with the provisions of this Section 8.3. Moreover, designation of a Participant eligible to receive an Award hereunder for a particular Performance Period shall not require designation of such Participant eligible to receive an Award hereunder in any subsequent Performance Period and designation of one Person as a Participant eligible to receive an Award hereunder shall not require designation of any other Person as a Participant eligible to receive an Award hereunder in such period or in any other period.

    

    
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    (c) Discretion of Committee with Respect to Performance Compensation Awards.  With regard to a particular Performance Period, the Committee shall have full discretion to select the length of such Performance Period (provided any such Performance Period shall be not less than one fiscal quarter in duration), the type(s) of Performance Compensation Awards to be issued, the Performance Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s) of the Performance Goal(s) that is (are) to apply to the Company and the Performance Formula. Within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), the Committee shall, with regard to the Performance Compensation Awards to be issued for such Performance Period, exercise its discretion with respect to each of the matters enumerated in the immediately preceding sentence of this Section 8.3(c) and record the same in writing.

    (d) Payment of Performance Compensation Awards

    (i) Condition to Receipt of Payment.  Unless otherwise provided in the applicable Award Agreement, a Participant must be employed by the Company on the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation Award for such Performance Period.

    (ii) Limitation.  A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only to the extent that: (A) the Performance Goals for such period are achieved; and (B) the Performance Formula as applied against such Performance Goals determines that all or some portion of such Participant's Performance Compensation Award has been earned for the Performance Period.

    (iii) Certification.  Following the completion of a Performance Period, the Committee shall review and certify in writing whether, and to what extent, the Performance Goals for the Performance Period have been achieved and, if so, calculate and certify in writing the amount of the Performance Compensation Awards earned for the period based upon the Performance Formula. The Committee shall then determine the actual size of each Participant's Performance Compensation Award for the Performance Period and, in so doing, may apply Negative Discretion in accordance with Section 8.3(d)(iv) hereof, if and when it deems appropriate.

    (iv) Use of Discretion.  In determining the actual size of an individual Performance Compensation Award for a Performance Period, the Committee may reduce or eliminate the amount of the Performance Compensation Award earned under the Performance Formula in the Performance Period through the use of Negative Discretion if, in its sole judgment, such reduction or elimination is appropriate. The Committee shall not have the discretion to: (A) grant or provide payment in respect of Performance Compensation Awards for a Performance Period if the Performance Goals for such Performance Period have not been attained or (B) increase a Performance Compensation Award above the maximum amount payable under Section 8.3(d)(i) of the Plan.

    

    
        - 24 -

    

    (v) Timing of Award Payments.  Performance Compensation Awards granted for a Performance Period shall be paid to Participants as soon as administratively practicable following completion of the certifications required by this Section 8.3.

    8.4 Other Equity-Based Awards. The Committee may grant Other Equity-Based Awards, either alone or in tandem with other Awards, in such amounts and subject to such conditions as the Committee shall determine in its sole discretion. Each Other Equity-Based Award shall be evidenced by an Award Agreement and shall be subject to such conditions, not inconsistent with the Plan, as may be reflected in the applicable Award Agreement.

    9. Compliance

    9.1 Compliance with Applicable Laws. Each Award Agreement shall provide that no Shares shall be purchased or sold thereunder unless and until: (a) any then applicable requirements of Applicable Laws have been fully complied with to the satisfaction of the Company and its counsel; and (b) if required to do so by the Company, the Participant has executed and delivered to the Company a letter of investment intent in such form and containing such provisions as the Committee may require. The Company shall use reasonable efforts to seek to obtain from each regulatory commission or agency having jurisdiction over this Plan such authority as may be required to grant Awards and to issue and sell Shares upon exercise of the Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Award or any Shares issued or issuable pursuant to any such Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Shares under this Plan, the Company shall be relieved from any liability for failure to issue and sell Shares upon exercise of such Awards unless and until such authority is obtained.

    10. Use of Proceeds

    10.1 Proceeds from the sale of Shares issued pursuant to Awards, or upon exercise thereof, shall constitute general funds of the Company.

    11. Miscellaneous

    11.1 Acceleration of Exercisability and Vesting. Subject to the rules and policies of the TSXV while the Common Stock is listed on the TSXV, the Committee shall have the power to accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with this Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.

    

    
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    11.2 Shareholder Rights. Except as provided in this Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any Shares subject to such Award unless and until such Participant has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is prior to the date such Share certificate is issued, except as provided in Section 12 hereof.

    11.3 No Employment or Other Service Rights. Nothing in this Plan or any instrument executed or Award granted pursuant hereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the right of the Company or an Affiliate to terminate: (a) the employment of an Employee with or without notice and with or without Cause; or (b) the service of a Director pursuant to the by-laws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

    11.4 Transfer; Approved Leave of Absence. For purposes of this Plan, no termination of employment by an Employee shall be deemed to result from either: (a) a transfer of the employment to the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate to another; or (b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the Employee's right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing, in either case, except to the extent inconsistent with Section 409A of the Code if the applicable Award is subject thereto.

    11.5 Withholding Obligations. To the extent provided by the terms of an Award Agreement and subject to the discretion of the Committee, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Shares under an Award by any of the following means (in addition to the Company's right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold Shares from the Shares otherwise issuable to the Participant as a result of the exercise of, or acquisition of Shares under, the Award, provided, however, that no Shares are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered Shares.

    12. Adjustments Upon Changes in Stock

    In the event of changes in the outstanding Shares or in the capital structure of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the Grant Date of any Award, Awards granted under this Plan and any Award Agreements, the exercise price of Options and Stock Appreciation Rights, and the maximum number of Shares underlying all Awards stated in Section 5, will be equitably adjusted or substituted, as to the number, price or kind of a Share or other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award. In the case of adjustments made pursuant to this Section 12, unless the Committee specifically determines that such adjustment is in the best interests of the Company or any Affiliate, the Committee shall, in the case of Incentive Stock Options, ensure that any adjustments under this Section 12 will not constitute a modification, extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of the Code, and in the case of Non-qualified Stock Options, ensure that any adjustments under this Section 12 will not constitute a modification of such Non-qualified Stock Options within the meaning of Section 409A of the Code. Any adjustments made under this Section 12 shall be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act. Further, with respect to Awards intended to qualify as "performance-based compensation" under Section 162(m) of the Code, any adjustments or substitutions will not cause the Company to be denied a tax deduction on account of Section 162(m) of the Code. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

    

    
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    13. Effect of Change in Control

    13.1 Unless otherwise provided in an Award Agreement, notwithstanding any provision of this Plan to the contrary, but subject to the rules and policies of the TSXV while the Common Stock is listed on the TSXV:

    (a) in the event of a Change in Control, all Options and Stock Appreciation Rights shall become immediately exercisable with respect to 100% of the Shares subject to such Options or Stock Appreciation Rights, and/or the Restricted Period shall expire immediately with respect to 100% of the Shares of Restricted Stock or Restricted Stock Unit; and

    (b) with respect to Performance Compensation Awards, in the event of a Change in Control, all Performance Goals or other vesting criteria will be deemed achieved at 100% of target levels and all other terms and conditions will be deemed met.

    To the extent practicable, any actions taken by the Committee under subsections (a) and (b) shall occur in a manner and at a time which allows affected Participants the ability to participate in the Change in Control with respect to the Shares underlying their Awards.

    13.2 In addition, in the event of a Change in Control, the Committee may, in its discretion and upon at least 10 days' advance notice to the affected Persons, cancel any outstanding Awards and pay to the holders thereof, in cash or stock, or any combination thereof, the value of such Awards based upon the price per Share received or to be received by other Shareholders in connection therewith. In the case of any Option or Stock Appreciation Right with an exercise price (or SAR Exercise Price in the case of a Stock Appreciation Right) that equals or exceeds the price paid for a Share in connection with the Change in Control, the Committee may cancel the Option or Stock Appreciation Right without the payment of consideration therefor.

    

    
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    13.3 The obligations of the Company under this Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially all of the assets and business of the Company and its Affiliates, taken as a whole.

    14. Amendment of Plan and Awards

    14.1 Amendment of Plan. The Board at any time, and from time to time, may amend or terminate this Plan. However, except as provided in Section 12 relating to adjustments upon changes in Shares and Section 14.4, no amendment shall be effective unless approved by the Shareholders (to the extent Shareholder approval is necessary to satisfy any Applicable Laws). At the time of such amendment, the Board shall determine, upon advice from counsel, whether such amendment will be contingent on Shareholder approval. Notwithstanding the foregoing and any other section of this Plan, the Board at any time, and from time to time, may amend this Plan as required by any stock exchange or quotation system on which the Common Stock is then listed or quoted.

    14.2 Shareholder Approval. The Board may, in its sole discretion, submit any other amendment to this Plan for Shareholder approval, including, amendments to this Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation paid to certain executive officers.

    14.3 Disinterested Shareholder Approval

    (a) In this section the following terms have the following meanings:

    (i) "Disinterested Shareholder Approval" shall have the meaning as described in the TSXV Policies;

    (ii) "Insider" means an insider as defined in the TSXV Policies; or as defined in securities legislation applicable to the Company; and

    (iii) "TSXV Policies" means the rules and policies of the TSXV, as amended from time to time.

    (b) If the Shares are listed on the TSXV, unless Disinterested Shareholder Approval is obtained, under no circumstances will this Plan, together with all of the Company's other previously established and outstanding stock option or equity incentive plans or grants, result in:

    (i) the aggregate number of Shares reserved for issuance under Awards granted to Insiders (as a group) at any point in time exceeding 10% of the issued and outstanding Shares (on a non-diluted basis);

    (ii) the grant to Insiders (as a group), within a 12 month period, of Options where an aggregate number of Shares subject to such Options exceeds 10% of the issued and outstanding Shares (on a non-diluted basis), calculated on the date an Award is granted to any Insider;

    

    
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    (iii) the grant to Insiders (as a group), within a 12 month period, of Non-Option Awards where an aggregate number of Shares subject to such Non-Option Awards exceeds 2% of the issued and outstanding Shares (on a non-diluted basis), calculated on the date a Non-Option Award is granted to any Insider;

    (iv) the aggregate number of Shares subject to Awards granted to any one Participant within a 12 month period exceeding 5% of the issued and outstanding Shares (on a non-diluted basis), calculated on the date an Award is granted to the Participant;

    (v) the aggregate number of Shares subject to Non-Option Awards granted to any one Participant within a 12 month period exceeding 1% of the issued and outstanding Shares (on a non-diluted basis), calculated on the date a Non-Option Award is granted to the Participant;

    (vi) the aggregate number of Shares subject to Awards granted to any one Participant who is a Consultant (as defined by the policies of the TSXV)  within a 12 month period exceeding 2% of the issued and outstanding Shares (on a non-diluted basis), calculated on the date an Award is granted to the Participant; or

    (vii) the aggregate number of Shares subject to Awards granted to all Participants (as a group) who are employed to perform Investor Relations Activities (as defined by the Policies of the TSXV) within a 12 month period exceeding 2% of the issued and outstanding Shares (on a non-diluted basis), calculated on the date an Award is granted to the Participant.

    (c) If the Shares are listed on the TSXV, the Company must obtain Disinterested Shareholder Approval for any amendment to Options held by Insiders that would have the effect of decreasing the exercise price of the Options.

    14.4 Contemplated Amendments. It is expressly contemplated that the Board may amend this Plan in any respect the Board deems necessary or advisable to provide eligible Employees, Consultants and Directors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options or to the nonqualified deferred compensation provisions of Section 409A of the Code and/or to bring the Plan and/or Awards granted under it into compliance therewith.

    14.5 No Impairment of Rights. Rights under any Award granted before amendment of this Plan shall not be impaired by any amendment of this Plan unless: (a) the Company requests the consent of the Participant; and (b) the Participant consents in writing.

    

    
        - 29 -

    

    14.6 Amendment of Awards. The Committee at any time, and from time to time, may amend the terms of any one or more Awards; provided, however, that the Committee may not affect any amendment which would otherwise constitute an impairment of the rights under any Award unless: (a) the Company requests the consent of the Participant; and (b) the Participant consents in writing.

    15. General Provisions

    15.1 Forfeiture Events. The Committee may specify in an Award Agreement that the Participant's rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition to applicable vesting conditions of an Award. Such events may include, without limitation, breach of non-competition, non-solicitation, confidentiality, or other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant, a termination of the Participant's Continuous Service for Cause, or other conduct by the Participant that is detrimental to the business or reputation of the Company and/or any Affiliate.

    15.2 Clawback. Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any Applicable Laws will be subject to such deductions and clawback as may be required to be made pursuant to such Applicable Laws (or any policy adopted by the Company pursuant to any such Applicable Laws).

    15.3 Other Compensation Arrangements. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to Shareholder approval if such approval is required, and such arrangements may be either generally applicable or applicable only in specific cases.

    15.4 Sub-plans. The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying blue sky, securities, tax or other laws of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of this Plan, but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.

    15.5 Deferral of Awards. The Committee may establish one or more programs under this Plan to permit selected Participants the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Participant to payment or receipt of Shares or other consideration under an Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Committee deems advisable for the administration of any such deferral program.

    15.6 Unfunded Plan. This Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any assets to assure the performance of its obligations under this Plan.

    

    
        - 30 -

    

    15.7 Delivery. Upon exercise of a right granted under this Plan, the Company shall issue Shares or pay any amounts due within a reasonable period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise have, for purposes of this Plan, 30 days shall be considered a reasonable period of time.

    15.8 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to this Plan. The Committee shall determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional Shares or whether any fractional Shares should be rounded, forfeited or otherwise eliminated.

    15.9 Other Provisions. The Award Agreements authorized under this Plan may contain such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon the exercise of the Awards, as the Committee may deem advisable.

    15.10 Section 409A. This Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Plan shall be interpreted and administered to be in compliance therewith. Any payments described in this Plan that are due within the "short-term deferral period" as defined in Section 409A of the Code shall not be treated as deferred compensation unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in this Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six month period immediately following the Participant's termination of Continuous Service shall instead be paid on the first payroll date after the six month anniversary of the Participant's separation from service (or the Participant's death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Participant under Section 409A of the Code, and neither the Company nor the Committee will have any liability to any Participant for such tax or penalty.

    15.11 Disqualifying Dispositions. Any Participant who shall make a "disposition" (as defined in Section 424 of the Code) of all or any portion of the Shares acquired upon exercise of an Incentive Stock Option within two years from the Grant Date of such Incentive Stock Option or within one year after the issuance of the Shares acquired upon exercise of such Incentive Stock Option (a "Disqualifying Disposition") shall be required to immediately advise the Company in writing as to the occurrence of the sale and the price realized upon the sale of such Shares.

    15.12 Section 16. It is the intent of the Company that this Plan satisfy, and be interpreted in a manner that satisfies, the applicable requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule 16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability under Section 16 of the Exchange Act. Accordingly, if the operation of any provision of this Plan would conflict with the intent expressed in this Section 15.12, such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.

    

    
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    15.13 Section 162(m). To the extent the Committee issues any Award that is intended to be exempt from the deduction limitation of Section 162(m) of the Code, the Committee may, without shareholder or grantee approval, amend this Plan or the relevant Award Agreement retroactively or prospectively to the extent it determines necessary in order to comply with any subsequent clarification of Section 162(m) of the Code required to preserve the Company's federal income tax deduction for compensation paid pursuant to any such Award.

    15.14 Beneficiary Designation. Each Participant may from time to time name any beneficiary or beneficiaries by whom any right under this Plan is to be exercised in case of such Participant's death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Committee, and shall be effective only when filed by the Participant in writing with the Company during the Participant's lifetime.

    15.15 Expenses. The costs of administering this Plan shall be paid by the Company.

    15.16 Severability. If any of the provisions of this Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall not be affected thereby.

    15.17 Plan Headings. The headings in this Plan are for purposes of convenience only and are not intended to define or limit the construction of the provisions hereof.

    15.18 Non-Uniform Treatment. The Committee's determinations under this Plan need not be uniform and may be made by it selectively among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements.

    16. Effective Date of Plan

    16.1 This Plan shall become effective as of the Effective Date, but no Award shall be exercised (or, in the case of a stock Award, shall be granted) unless and until this Plan has been approved by the Shareholders, which approval shall be within 12 months before or after the date this Plan is adopted by the Board.

    17. Termination or Suspension of this Plan

    17.1 This Plan shall terminate automatically on February 28, 2030. No Award shall be granted pursuant to this Plan after such date, but Awards granted before may extend beyond that date. The Board may suspend or terminate this Plan at any earlier date pursuant to Section 14.1 hereof. No Awards may be granted under this Plan while this Plan is suspended or after it is terminated. Unless the Company determines to submit Section 8.3 of this Plan and the definition of "Performance Goal" and "Performance Criteria" to the Shareholders at the first Shareholder meeting that occurs in the fifth year following the year in which this Plan was last approved by Shareholders (or any earlier meeting designated by the Board), in accordance with the requirements of Section 162(m) of the Code, and such Shareholder approval is obtained, then no further Performance Compensation Awards shall be made to Covered Employees under Section 8.3 after the date of such annual meeting, but this Plan may continue in effect for Awards to Participants not in accordance with Section 162(m) of the Code.

    

    
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    18. Choice of Law

    18.1 The law of the State of Nevada shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state's conflict of law rules.

    19. Shareholder Approval 

    19.1 No Awards may be exercised prior to the Company obtaining the Shareholder approval of this Plan that is necessary to satisfy any Applicable Laws.

    19.2 The Board may suspend or terminate this Plan, and any outstanding Awards granted under this Plan may be cancelled, if the Company does not obtain the Shareholder approval of this Plan that is necessary to satisfy any Applicable Laws.

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