Document:

Exhibit 4.7

Exhibit 4.7

 

 

 

 

 

FIRST ENERGY METALS LIMITED

 

 

RESTRICTED SHARE UNIT PLAN

 

 

EFFECTIVE AS OF DECEMBER 31, 2021

 

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	ARTICLE 1 PURPOSE AND INTERPRETATION	2
	 	 	 
	 	Section 1.1	Purpose	2
	 	Section 1.2	 Definitions	2
	 	Section 1.3	 Interpretation	6
	 	Section 1.4	Governing Law	6
	 	Section 1.5	Severability	6
	 	 	 	 
	ARTICLE 2 SHARE CAPITAL	6
	 	 
	 	Section 2.1	 Shares Reserved	6
	 	 	 
	ARTICLE 3 ADMINISTRATION	7
	 	 	 
	 	Section 3.1	 General	7
	 	Section 3.2	Compliance with Legislation	8
	 	Section 3.3	Miscellaneous	9
	 	 	 
	ARTICLE 4 RESTRICTED SHARE UNITS	9
	 	 	 
	 	Section 4.1	 Granting of RSUs	9
	 	Section 4.2	 Dividends	10
	 	Section 4.3	Settlement of Restricted Share Units	10
	 	Section 4.4	Termination of Service	12
	 	Section 4.5	Non-transferability of RSUs	13
	 	Section 4.6	Hold Period	13
	 	 	 
	ARTICLE 5 TERMINATION, AMENDMENTS AND ADJUSTMENTS	13
	 	 	13
	 	Section 5.1	 Amendment and Termination	13
	 	Section 5.2	Change of Control	13
	 	Section 5.3	Adjustments	14
	 	 	 
	ARTICLE 6 GENERAL	14
	 	 	 
	 	Section 6.1	Effective Date	14
	 	Section 6.2	Notice	14
	 	Section 6.3	Tax Withholdings	14
	 	Section 6.4	Rights of Participants	15
	 	Section 6.5	Right to Issue Other Shares	15
	 	Section 6.6	Successors and Assigns	15
	 	Section 6.7	Funding of the Plan	15
	 	Schedule A Restricted Share Unit Grant Letter	16
	 	Schedule B Restricted Share Unit - Settlement Notice	18

 

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RESTRICTED SHARE UNIT PLAN

 

ARTICLE 1

PURPOSE AND INTERPRETATION

 

Section 1.1 Purpose

 

The purpose of the Plan is to promote
and advance the interests of the Company by (i) providing Eligible Persons with additional incentive through an opportunity to receive
discretionary bonuses in the form of Common Shares of the Company, (ii) encouraging stock ownership by such Eligible Persons, (iii) increasing
the proprietary interest of Eligible Persons in the success of the Company, and (iv) increasing the ability to attract, retain and motivate
Eligible Persons.

 

Section 1.2 Definitions

 

For the purposes of this Plan, the following
terms shall have the following meanings:

 

		(a)	“Account” means a notional account
maintained for each Participant on the books of the Company which will be credited with Restricted Share Units and Dividend RSUs, in accordance
with the terms of the Plan;
	 	 	 

		(b)	“Affiliate” means any person that
controls or is controlled by the Company or that is controlled by the same person that controls the Company;
	 	 	 

		(c)	“Associate” has the meaning ascribed to that term under the Securities
Act, R.S.B.C. 1996, c. 418, as amended from time to time;
	 	 	 

		(d)	“Affiliated Companies”, “Controlled
Companies” and “Subsidiary Companies” have the meanings ascribed to those terms under the Securities Act, R.S.B.C.
1996, c. 418, as amended from time to time;

 

		(e)	“Black-Out Period” means the period
during which designated directors, officers, employees and consultants of the Company and, if applicable, any Subsidiary Company, cannot
trade Common Shares pursuant to the Company s insider trading policy which is in effect at that time (which, for certainty, does not include
the period during which a cease trade order is in effect to which the Company, or in respect of a Reporting Insider, that Reporting Insider,
is subject);

 

		(f)	“Board” means the board of directors
of the Company or such delegate as referred to by the term in Section 3.1(1);

 

		(g)	“Business Day” means any day other
than a Saturday, Sunday or a statutory or civic holiday in the City of Vancouver, British Columbia, on which the Stock Exchange is open
for trading;

 

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		(h)	“Cause” means (i) if the Participant
has a written agreement with the Company or Subsidiary Companies in which cause is defined, cause as defined therein; or otherwise (ii)
(A) the inability of the Participant to perform his or her duties due to a legal impediment such as an injunction, restraining order or
other type of judicial judgment, decree or order entered against the Participant; (B) the failure of the Participant to follow the Company’s
reasonable instructions with respect to the performance of his or her duties; (C) any material breach by the Participant of his or her
obligations under any code of ethics, any other code of business conduct or any lawful policies or procedures of the Company; (D) excessive
absenteeism, flagrant neglect of duties, serious misconduct, or conviction of crime or fraud; and (E) any other act or omission of the Participant which would in law permit an employer to, without notice or payment in lieu of notice, terminate the employment of an employee;

 

 

 

		(i)	“Change of Control Event” means:

 

		(i)	the acquisition of a sufficient number of voting securities in the capital of the Company so that the
acquiror, together with Persons or Entities acting jointly or in concert with the acquiror, becomes entitled, directly or indirectly,
to exercise more than 50% of the voting rights attaching to the outstanding voting securities in the capital of the Company (provided
that, prior to the acquisition, the acquiror was not entitled to exercise more than 50% of the voting rights attaching to the outstanding
voting securities in the capital of the Company);

 

		(ii)	the completion of a consolidation, merger, arrangement or amalgamation of the Company with or into
any other entity whereby the voting securityholders of the Company immediately prior to the consolidation, merger, arrangement or amalgamation
receive less than 50% of the voting rights attaching to the outstanding voting securities of the consolidated, merged, arranged or amalgamated
entity;

 

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

 

		(iv)	an occurrence when a majority of the directors elected at any annual or extraordinary general meeting
of shareholders of the Company are not individuals nominated by the Company’s then-incumbent Board.

 

		(j)	“Common Shares” means the common shares in the share capital of the Company;

 

		(k)	“Company” means First Energy Metals Limited;

 

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		(l)	“Consultant” means a corporate entity or an individual, other than an employee, executive
officer or director of the Company or of an Affiliate, that:

 

		(i)	is engaged to provide services to the Company or an Affiliate, other than services provided in relation
to a distribution of the Company’s securities;

 

		(ii)	provides the services under a written contract with the Company or an Affiliate; and

 

		(iii)	spends or will spend a significant amount of time and attention on the affairs and business of the
Company or an Affiliate;

 

 and includes, for an individual
consultant, a Company of which the individual consultant is an employee or shareholder, and a partnership of which the individual consultant
is an employee or partner;

 

		(m)	“Dividend RSUs” means a bookkeeping entry credited to a Participant’s Account equivalent
in value to the dividend, if any, paid on a Common Share in accordance with Section 4.2 of the Plan;

 

		(n)	“Eligible Person” means:
	 	 	 

		(i)	any director, officer, employee or Consultant of the Company or any of its Subsidiary Companies; and
	 	 	 

		(ii)	any Personal Holding Company of any of the persons listed in Section 1.2(m)(i) above; who is designated by the Board as eligible
to participate in the Plan;

 

		(o)	“Expiry Date” means the expiry date set out by the Board on the date of approval of a grant
and as described in the applicable RSU Grant Letter (which for greater certainty may vary between RSUs granted from time to time), following
which an RSU is expired and is thereafter incapable of settlement, and is of no value whatsoever, provided however that in no event shall
an Expiry Date be a date that is more than three years from the date of grant;

 

		(p)	“Market Price” means, with respect to any particular date, the volume weighted average trading
price of the Common Shares as reported on the Stock Exchange for the five (5) trading days immediately preceding that date;

 

		(q)	“Participant” means an Eligible Person to whom RSUs have been granted and are outstanding;

 

		(r)	“Personal Holding Company” means a personal holding Company that is either wholly owned,
or controlled by, any director, executive officer, employee or Consultant of the Company or its Affiliates, and the shares of which are
held directly
or indirectly by any such person or the person’s spouse, minor children
and/or minor grandchildren;

 

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		(s)	“Person or Entity” means an individual, natural person, Company, government or political
subdivision or agency of a government, and where two or more persons act as a partnership, limited partnership, syndicate, or other group
for the purpose of acquiring, holding, or disposing of securities of an issuer, such partnership, limited partnership, syndicate, or group
shall be deemed to be a Person or Entity;

 

		(t)	“Plan” means this Restricted Share Unit plan of
the Company, as amended from time to time;

     

		(u)	“Reporting Insider” means a reporting insider as defined under National Instrument 55-104
as may be amended from time to time;
	 	 	 

		(v)	“Restricted Share Unit” or “RSU” means a bookkeeping entry equivalent in value
to a Common Share credited to a Participant’s Account and representing the right of a Participant to whom a grant of such restricted
share units is made to receive one Common Share (or, pursuant to Section 4.3, an amount of cash equal to the Market Value thereof), pursuant
and subject to the terms and conditions set forth in this Plan and in the applicable RSU Grant Letter;
	 	 	 

		(w)	“RSU Award” means the number of RSUs determined by the Board to be awarded to the Participant
and credited to a Participant’s Account, as evidenced by a RSU Grant Letter;

 

		(x)	“RSU Grant Letter” has the meaning given to that term in Section 3.1(3);
	 	 	 

		(y)	“Securities Act” means the Securities
Act (British Columbia), RSBC 1996, c.418 as from time to time amended.

     

		(z)	“Settlement Date” means the Business Day during the Settlement Period
on which a Participant elects to settle an RSU in accordance with Section 4.3;

 

		(aa)	“Settlement Notice” has the meaning set out in Section
4.3;

 

		(bb)	“Settlement Period” means the period starting on the Vesting Date and ending on the Expiry
Date;

 

		(cc)	“Shareholder” means a holder of a Common Share in
the capital of the Company;

 

		(dd)	“Share Compensation Arrangement” means any stock
option, stock option plan, employee stock purchase plan, restricted share unit, or any other compensation or incentive mechanism involving
the issuance or potential issuance of Common Shares, including a share purchase from treasury which is financially assisted by the Company
by way of a loan, guarantee or otherwise including, without limitation, this Plan;

 

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		(ee)	“Stock Exchange” means the Canadian Securities Exchange or if the Common
Shares are not listed on the Canadian Securities Exchange, any stock exchange on which the Common Shares are listed or traded, as determined
by the Board;
	 	 	 

		(ff)	“Termination Date” means the date on which a Participant ceases to
be an Eligible Person. For greater certainty, in the case of a Participant whose employment or term of office with the Company or any
Subsidiary Company terminates in the circumstances set out in Section 4.4(1)(a), Section 4.4(1)(b) or Section 4.4(1)(c), the date that
is designated by the Company or any Subsidiary Company, as the last day of the Participant’s employment or term of office with the
Company or such Subsidiary Company, provided that in the case of termination of employment or term of office by voluntary resignation
by the Participant, such date shall not be earlier than the date notice of resignation was given, and “Termination Date” specifically
does not include any period of reasonable notice that the Company or any Subsidiary Company may be required at law to provide to the Participant;
and

 

		(gg)	“Vesting Date” means the date on which an RSU is
vested for the purposes of the Plan.

 

Section 1.3 Interpretation

 

Words importing
the singular number only shall include the plural and vice versa and words importing the masculine shall include the feminine.

 

Section 1.4 Governing Law

 

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

 

Section 1.5 Severability

 

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

  

ARTICLE 2 

SHARE CAPITAL

 

Section 2.1 Shares Reserved

 

	 	(1)	Subject to Section 5.3(1), the securities that may be acquired
by Participants pursuant to RSUs granted under this Plan shall consist of authorized but unissued Common Shares.

 

	 	(2)	The Company shall at all times during the term of this Plan
ensure that the number of Common Shares it is authorized to issue shall be sufficient to satisfy the requirements of RSUs granted under
this Plan.

 

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		(3)	The maximum number of Common Shares made available for issuance
pursuant to the Plan shall be determined from time to time by the Board, but in any case, shall not exceed 10% of the Common Shares issued
and outstanding from time to time, subject to adjustments as provided in the Plan.

 

		(4)	The Plan shall be a “rolling plan” and therefore
when RSUs are cancelled (whether or not upon payment with respect to vested RSUs) or terminated, the number of Common Shares in respect
of such cancelled or terminated RSUs shall again be available for the purpose of granting RSU Awards pursuant to the Plan.

 

ARTICLE 3

ADMINISTRATION

 

Section 3.1 General

 

		(1)	This Plan shall be administered by the Board. Notwithstanding
the foregoing or any other provision contained herein, the Board shall have the right to delegate the administration and operation of
this Plan, in whole or in part, to a committee of the Board and/or to any member of the Board. Any delegation pursuant to this Section
3.1 shall be documented in a resolution of the Board.

 

		(2)	Subject to the terms and conditions set forth herein, the Board
is authorized to provide for the awarding, granting, vesting, settlement and method of settlement of RSUs, all on such terms (which may
vary between RSUs granted from time to time) as it shall determine. In addition, the Board shall have the authority to:

 

		(a)	select any directors, officers, employees or Consultants of the Company or Subsidiary Companies of
the Company to participate in this Plan; provided that RSUs granted to any Participant shall be approved by the Shareholders if the rules
of the Stock Exchange require such approval;

 

		(b)	construe and interpret this Plan and all agreements entered into hereunder;

 

		(c)	prescribe, amend, and rescind rules and regulations relating to this Plan; and
	 	 	 

		(d)	make all other determinations necessary or advisable for the administration of this Plan. All determinations
and interpretations made by the Board shall be binding on all Participants and on their legal, personal representatives and beneficiaries.

 

		(3)	An RSU Award shall be evidenced by a restricted share unit grant
letter (“RSU Grant Letter”), a form of which is attached as Schedule A to this Plan, signed on behalf of the Company, subject
to amendment by the Board from time to time, and which shall specify:

 

		(a)	the number of RSUs subject to the RSU Award to be credited to the Participant’s Account;
	 	 	 

		(b)	the date of grant of the RSU Award;

 

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		(c)	the Vesting Date or Vesting Dates applicable to the RSUs subject to the RSU Award;

 

		(d)	the Settlement Period and Expiry Date applicable to an RSU subject to the RSU Award;

 

		(e)	the nature and duration of the restrictions, if any, to be imposed upon the sale or other disposition
of Common Shares acquired upon settlement of the RSU;

 

		(f)	the nature of the events, if any, and the duration of the period in which any Participant’s rights
in respect of Common Shares acquired upon settlement of an RSU may be forfeited; and

		(g)	such other terms, conditions and limitations permitted by and not inconsistent with this Plan as the
Board may determine.
	 	 	 

		(4)	No member of the Board (or person acting under delegated authority,
nor the Company, will be liable for any action or determination taken or made in the administration, interpretation, construction, or
application of this Plan, any RSU Grant Letter or any RSU issued pursuant to this Plan, or otherwise in any way in respect of any Participant’s
participation in this Plan or the holding or settlement of RSUs.

 

Section 3.2 Compliance with Legislation

 

		(1)	The Plan, the terms of the issue or grant and the settlement
of RSUs hereunder and the Company s obligation to sell and deliver Common Shares upon settlement of RSUs shall be subject to all applicable
federal, provincial, and foreign laws, rules and regulations, the rules and regulations of the Stock Exchange and to such approvals by
any regulatory or governmental agency as may, in the opinion of counsel to the Company, be required. The Company shall not be obliged
by any provision of the Plan or the grant of any RSU hereunder to issue or sell Common Shares in violation of such laws, rules and regulations
or any condition of such approvals.

 

		(2)	No RSU shall be granted and no Common Shares issued or sold
thereunder where such grant, issue or sale would require registration of the Plan or of Common Shares under the securities laws of any
foreign jurisdiction and any purported grant of any RSU or issue or sale of Common Shares hereunder in violation of this provision shall
be void.

 

		(3)	The Company shall have no obligation to issue any Common Shares
pursuant to the Plan unless such Common Shares shall have been duly listed, upon official notice of issuance, with the Stock Exchange.
Common Shares issued and sold to Participants pursuant to the settlement of RSUs may be subject to restrictions or limitations on sale
or resale under applicable securities laws.

 

		(4)	If Common Shares cannot be issued to a Participant upon the
settlement of an RSU due to legal or regulatory restrictions, the obligation of the Company to issue such Common Shares under the Plan
shall terminate, at no cost to the Company nor obligation to otherwise compensate a Participant in any way.

 

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Section 3.3 Miscellaneous

 

		(1)	Nothing contained herein shall prevent the Board from adopting
other or additional compensation arrangements, subject to any required approval.

 

		(2)	Nothing contained in the Plan nor in any RSU granted hereunder
shall be deemed to give any Participant any interest or title in or to any Common Shares of the Company or any rights as a Shareholder
or any other legal or equitable right against the Company whatsoever other than as set forth in the Plan and pursuant to the settlement
of any RSU.

 

		(3)	The Plan does not give any Participant or any employee of the
Company or any of its Affiliated Companies, Subsidiary Companies or Controlled Companies the right or obligation to continue to serve
as a Consultant, director, officer or employee, as the case may be, of the Company or any of its Affiliated Companies, Subsidiary Companies
or Controlled Companies. The awarding of RSUs to any Eligible Person is a matter to be determined solely in the discretion of the Board.
The Plan shall not in any way fetter, limit, obligate, restrict or constrain the Board with regard to the allotment or issue of any Common
Shares or any other securities in the capital of the Company or any of its Subsidiary Companies other than as specifically provided for
in the Plan.

 

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

 

		(5)	No fractional Common Shares shall be issued upon the settlement
of RSUs granted under the Plan and, accordingly, if a Participant would become entitled to a fractional Common Share upon the settlement
of an RSU, or from an adjustment pursuant to Section 5.3(1) such Participant shall only have the right to receive the next lowest whole
number of Common Shares and no payment or other adjustment will be made with respect to the fractional interest so disregarded.

 

ARTICLE 4

 RESTRICTED
SHARE UNITS

 

Section 4.1 Granting of RSUs

 

		(1)	Where the Board determines to grant an RSU Award to an Eligible
Person and sets the terms and conditions applicable to such RSU Award, the Company shall deliver to the Eligible Person a RSU Grant Letter,
containing the terms and conditions applicable to such RSU Award.

 

		(2)	On the grant of an RSU Award, the Company will credit the Participant’s
Account with the number of RSUs granted to such Participant under the terms of the RSU Award.

 

		(3)	The grant of an RSU Award shall entitle the Participant to the
conditional right to receive for each RSU credited to the Participant’s Account, at the election of the Company, either one Common
Share or an amount in cash, net of applicable taxes and contributions to government sponsored plans, as determined by the Board, equal
to the Market Price of one Common Share for each RSU credited to the Participant’s Account on the Settlement Date, subject to the
conditions set out in the RSU Grant Letter and in the Plan, and subject to all other terms of this Plan.

 

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		(4)	An Eligible Person may receive an RSU Award on more than one
occasion under the Plan and may receive separate RSU Awards on any one occasion.

 

		(5)	RSUs granted under this Plan to an Eligible Person in a calendar
year will (subject to any applicable terms and conditions) represent a right to a bonus or similar award to be received for services
rendered by such Eligible Person to the Company or an Affiliate, as the case may be, in the fiscal year ending in, coincident with or
before such calendar year, subject to any other determination by the Company.

 

		(6)	Notwithstanding any other provision of the RSU Plan:

 

		(a)	the aggregate number of Shares reserved for issuance pursuant to RSUs granted under
the RSU Plan and other Security Based Compensation Arrangements (as defined in the RSU Plan) cannot exceed 10% of the issued and outstanding
Shares as at the date of grant (on a non-diluted basis);

 

		(b)	the aggregate number of Shares reserved for issuance pursuant to RSUs granted to
any one individual in any 12 month period shall not exceed 1% of the issued and outstanding Shares, unless disinterested shareholder approval
is obtained;

 

		(c)	the aggregate number of Shares reserved for issuance pursuant to RSUs granted to
Insiders (as defined in the policies of the Exchange) shall not exceed 2% of the issued and outstanding Shares, unless disinterested shareholder
approval is obtained; and

 

		(d)	all RSUs granted pursuant to the RSU Plan are subject to the policies of the Exchange.

 

		(7)

 

Section 4.2 Dividends

 

		(1)	Unless the Board determines otherwise, additional RSUs (“Dividend
RSUs”) will be credited to a Participant’s Account where the Company declares and pays a dividend on Common Shares. The number
of Dividend RSUs credited to a Participant’s Account in connection with the payment of dividends on Common Shares will be based
on the actual amount of cash dividends that would have been paid to such Participant had he been holding such number of Shares equal
to the number of RSUs credited to the Participant’s Account on the date on which cash dividends are paid on the Shares and the
Market Price of the Common Shares on the payment date.

 

		(2)	Dividend RSUs credited to a Participant’s Account shall
vest and be settled in the same manner and on the same date as the RSUs to which they relate.

 

Section 4.3 Settlement of Restricted
Share Units

 

		(1)	Subject to the provisions of the Plan and in particular Section
4.4 and Section 5.2 and any vesting limitations imposed by the Board in its sole unfettered discretion at the time of grant, RSUs subject
to an RSU Award may be settled by a Participant during the Settlement Period applicable to the RSU by delivery to the Company of a notice
(the “Settlement Notice”) in a form attached to the RSU Grant Letter. As soon as practicable following the receipt of the
Settlement Notice, RSUs will be settled
by the Company through the delivery by the Company of such number of Common Shares equal to the number of RSUs then being settled or,
at a Company’s election, an amount in cash, net of applicable taxes, equal to the Market Price at the Settlement Date of one Common
Share for each RSU then being settled. Where, prior to the Expiry Date, a Participant fails to elect to settle an RSU, the Participant
shall be deemed to have elected to settle such RSUs on the day immediately preceding the Expiry Date.

 

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		(2)	Notwithstanding the foregoing, if the Company elects to issue
Common Shares in settlement of RSUs:

 

		(a)	the Company may arrange for such number of the Common Shares to be sold as it deems necessary or advisable
to raise an amount at least equal to its determination of such applicable taxes, with such amount bring withheld by the Company; or

 

		(b)	the Company may elect to settle for cash such number of RSUs
as it deems necessary or advisable to raise funds sufficient to cover such withholding taxes with such amount being withheld by the Company;
or

     

		(c)	the Company may, as a condition of settlement in the form
of Common Shares, require the Participant to pay the applicable taxes as determined by the Company or make such other arrangement acceptable
to the Company in its discretion (if at all) as it deems necessary or advisable.

 

		(3)	Subject to the terms of the Plan, as soon as practicable after
receipt of any of the amount, undertaking or election listed in Section 4.3(2), the Company will forthwith cause the transfer agent and
registrar of the Common Shares to deliver to the Participant a certificate or certificates in the name of the Participant or a statement
of account, at the discretion of the Company, representing in the aggregate Common Shares issued to the Participant.

 

		(4)	Notwithstanding any other provision of the Plan:

     

		(a)	no RSU shall be capable of settlement after the Expiry Date; provided, however, that if the Expiry Date
in respect of an RSU falls on, or within nine (9) Business Days immediately following, a date upon which such Participant is prohibited
from exercising such RSU due to a Black-Out Period or other trading restriction imposed by the Company, then the Expiry Date of such RSU
shall be automatically extended to the tenth (10th) Business Day following the date the relevant Black-Out Period or other trading restriction
imposed by the Company is lifted, terminated or removed. The foregoing extension applies to all RSUs regardless of the date of grant and
shall not be considered an extension of the term thereof as otherwise referred to in the Plan;

 

		(b)	the Settlement Period shall be automatically reduced in accordance with Section 4.4 upon the occurrence
of any of the events referred to therein; and

 

		(c)	no RSU in respect of which Shareholder approval is required under the rules of the Stock Exchange shall
be settled until such time as such RSU has been so approved.

 

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Section 4.4 Termination of Service

 

		(1)	Except as otherwise determined by the Board:

 

		(a)	all RSUs held by the Participant (whether vested or unvested) shall terminate automatically upon the
termination of the Participant’s service with the Company or any Subsidiary Companies for any reason other than as set forth in
paragraph (b) and (c) below;

 

		(b)	in the case of a termination of the Participant’s service by reason of (A) termination by the
Company or any Subsidiary Companies other than for Cause, or (B) the Participant’s death, the Participant’s unvested RSUs
shall vest automatically as of such date, and on the earlier of the original Expiry Date and any time during the ninety (90) day period
commencing on the date of such termination of service (or, if earlier, the Termination Date), the Participant (or his or her executor
or administrator, or the person or persons to whom the Participant’s RSUs are transferred by will or the applicable laws of descent
and distribution) will be eligible to request that the Company settle his vested RSUs. Where, prior to the 90th day following such termination
of service (or, if earlier, the Termination Date) the Participant fails to elect to settle a vested RSU, the Participant shall be deemed
to have elected to settle such RSU on such 90th day (or, if earlier, the Termination Date) and to receive Common Shares in respect thereof;

 

		(c)	in the case of a termination of the Participant’s services by reason of voluntary resignation,
only the Participant’s unvested RSUs shall terminate automatically as of such date, and any time during the ninety (90) day period
commencing on the date of such termination of service (or, if earlier, the Termination Date), the Participant will be eligible to request
that the Company settle his vested RSUs. Where, prior to the 90th day following such termination of service (or, if earlier, the Termination
Date) the Participant fails to elect to settle a vested RSU, the Participant shall be deemed to have elected to settle such RSU on such
90th day (or, if earlier, the Termination Date) and to receive Common Shares in respect thereof;

 

		(d)	for greater certainty, where a Participant’s employment or term of office terminates by reason
of termination by the Company or any Subsidiary Companies for Cause then any RSUs held by the Participant, whether or not vested at the
Termination Date, immediately terminate and are cancelled on the Termination Date or at a time as may be determined by the Board, in its
sole discretion;

 

		(e)	a Participant’s eligibility to receive further grants of RSUs under this Plan ceases as of the
earliest of the date the Participant resigns from the Company or any Subsidiary Company and the date that the Company or any Subsidiary
Company provides the Participant with written notification that the Participant’s employment or term of office, as the case may
be, is terminated, notwithstanding that such date may be prior to the Termination Date; and

 

		(f)	for the purposes of the Plan, a Participant shall not be deemed to have terminated service where: (i)
the Participant remains in employment or office within or among the Company or any Subsidiary Company or (ii) the Participant is on a
leave of absence approved by the Board.

 

    - 12 -

     

    

 

Section 4.5 Non-transferability
of RSUs

 

RSUs shall not be transferable or
assignable by the Participant otherwise than by will or the laws of descent and distribution, and shall be exercisable during the lifetime
of a Participant only by the Participant and after death only by the Participant’s legal representative.

 

Section 4.6 Hold Period

 

Pursuant to Stock Exchange Policies,
where a hold period is applicable, the RSU Grant Letter will include a legend stipulating that the RSU Award is subject to a four-month
hold period commencing from the date of grant of the RSU Award.

 

ARTICLE 5

TERMINATION, AMENDMENTS AND
ADJUSTMENTS

 

Section 5.1 Amendment and Termination

 

		(1)	The Board may amend, suspend or terminate the Plan or any portion
thereof at any time in accordance with applicable law, and subject to any required regulatory approval.

 

		(2)	No such amendment, suspension or termination shall alter or
impair any RSUs or any rights pursuant thereto granted previously to any Participant without the consent of such Participant.

 

		(3)	If the Plan is terminated, the provisions of the Plan and any
administrative guidelines, and other rules and regulations adopted by the Board and in force at the time of the Plan termination shall
continue in effect during such time as an RSU or any rights pursuant thereto remain outstanding.

 

		(4)	With the consent of the affected Participant, the Board may
amend or modify any outstanding RSU in any manner to the extent that the Board would have had the authority to initially grant such award
as so modified or amended, including without limitation, to change the date or dates as of which the RSU becomes exercisable, subject
to the prior approval of the Stock Exchange where necessary.

 

Section 5.2 Change of Control

 

		(1)	Notwithstanding any other provision of this Plan, in the
event of an actual or potential Change of Control Event, the Board may, in its discretion, without the necessity or requirement for the
agreement or consent of any Participant: (i) accelerate, conditionally or otherwise, on such terms as it sees fit, the vesting date of
any RSU; (ii) permit the conditional settlement of any RSU, on such terms as it sees fit; (iii) otherwise amend or modify the terms of
the RSU, including for greater certainty permitting Participants to settle any RSU, to assist the Participants to tender the underlying
Common Shares to, or participate in, the actual or potential Change of Control Event or to obtain the advantage of holding the underlying
Common Shares during such Change of Control Event; and (iv) terminate, following the successful completion of such Change of Control
Event, on such terms as it sees fit, the RSUs not settled prior to the successful completion of such Change of Control Event, including,
without limitation, for no payment or other compensation.

 

The determination of the Board in
respect of any such Change of Control Event shall for the purposes of this Plan be final, conclusive and binding.

 

    - 13 -

     

    

 

Section 5.3 Adjustments

 

		(1)	If there is a change in the outstanding Common Shares by reason
of any stock dividend or split, recapitalization, amalgamation, consolidation, combination or exchange of shares, or other corporate
change, the Board shall make, subject to the prior approval of the Stock Exchange where necessary, appropriate substitution or adjustment
in

 

		(a)	the number or kind of Common Shares or other securities reserved
for issuance pursuant to the Plan, and

		(b)	the number and kind of Common Shares or other securities subject to unsettled and outstanding RSUs
granted pursuant to the Plan; provided, however, that no substitution or adjustment shall
obligate the Company to issue fractional RSUs or Common Shares.

 

		(2)	If the Company is reorganized, amalgamated with another Company
or consolidated, the Board shall make such provisions for the protection of the rights of Participants as the Board in its discretion
deems appropriate.

 

ARTICLE 6 

GENERAL

 

Section 6.1 Effective Date

 

The Plan shall be effective upon the approval of the Plan
by the Board.

 

Section 6.2 Notice

 

Any Notice
required to be given by this Plan shall be in writing and shall be given by registered mail, postage prepaid, or delivered by courier
or by facsimile transmission addressed, if to the Company, to the operations office of the Company in Vancouver, British Columbia, Attention:
Corporate Secretary; or if to a Participant, to such Participant at his address as it appears on the books of the Company or in the event
of the address of any such Participant not so appearing, then to the last known address of such Participant; or if to any other person,
to the last known address of such person.

 

Section 6.3 Tax Withholdings

 

The Company
shall be entitled to withhold such number of Common Shares or amount of cash payable to a Participant, either under this Plan or otherwise,
or make such other arrangement as are contemplated under Section 4.3(2), as it may deem necessary or advisable so as to ensure that the
Company is in compliance with the applicable provisions of any federal, provincial or local law relating to the withholding or remittance
of tax or other relevant amounts. It is the responsibility of the Participant to complete and file any tax returns which may be required
within the periods specified under applicable laws as a result of the Participant’s participation in the Plan. The Company shall
not be responsible for any tax consequences to a Participant as a result of the Participant’s participation in the Plan.

 

    - 14 -

     

    

 

Section 6.4 Rights of Participants

 

No person entitled
to settle any RSU granted under this Plan shall have any of the rights or privileges of a Shareholder in respect of any Common Shares
issuable upon settlement of such RSU until such Common Shares have been issued to such person.

 

Section 6.5 Right to Issue Other Shares

 

The Company
shall not by virtue of this Plan be in any way restricted from declaring and paying stock dividends, issuing further Common Shares, varying
or amending its share capital or corporate structure or conducting its business in any way whatsoever.

 

Section 6.6 Successors and Assigns

 

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

 

Section 6.7 Funding of the Plan

 

The Plan shall
be unfunded. No funds will be set aside to guarantee the payment of RSUs, which will remain an unfunded liability recorded on the books
of the Company.

 

    - 15 -

     

    

 

SCHEDULE
A

RESTRICTED
SHARE UNIT GRANT AGREEMENT

 

TO: [Name of Participant]

 

First
Energy Metals Limited (the “Company”) hereby confirms a grant of restricted share units (“RSU Units”)
to l (the “Participant”)
(as defined in the Company’s Restricted Share Unit Plan (the “RSU Plan”) described in the table below pursuant
to the Company’s RSU Plan.

 

This grant is made pursuant to
the terms and conditions of the Company’s RSU Plan, as amended from time to time, and is incorporated herein by reference and made
a part of this letter agreement. Each RSU Unit granted to the Participant named herein represents the right of the Participant to receive
one Common Share in the share capital of the Company on the date(s) or pursuant to the terms specified below. Capitalized terms not otherwise
defined herein shall have the same meanings as in the RSU Plan.

 

	No. of RSU Units	 	Grant Date	 	Vesting	 	Expiry Date
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

[include any specific/additional vesting
period or other conditions]

 

The Company and the undersigned
Participant hereby confirms that the undersigned Participant is a bona fide Director, Officer, Consultant, or Employee as the case may
be.

 

	DATED__________________, 20____. 	 
	FIRST ENERGY METALS LIMITED	 

 

	Per:	

 

 

Authorized Signatory

 

    - 16 -

     

    

 

The undersigned hereby accepts such
grant, acknowledges being a Participant under the RSU Plan, agrees to be bound by the provisions thereof and agrees that the RSU Plan
will be effective as an agreement between the Company and the undersigned with respect to the RSU Units granted or otherwise issued to
him/her/it.

 

	DATED______________________ , 20____. 	 

 

	 	 
	Participant’s Signature	 
	 	 
	 	 
	Name of Participant (print)	 
	 	 
	OR	 
	 	 
	[NAME OF COMPANY PARTICIPANT]	 
	 	 
	Per:	 
	 	 
	 	 
	Authorized Signatory	 
	 	 
	 	 
	Name of Authorized Signatory	 

 

    - 17 -

     

    

 

SCHEDULE
B

RESTRICTED
SHARE UNIT - SETTLEMENT NOTICE

 

I, ________________,
in respect of the grant of Unit Award made to me on __________, which Unit Awards have now vested to RSUs as of the Vesting Date
set forth below, hereby elect to settle ________________Restricted Share Units and to receive (check one):

 

	Date:______________________ 
    	 

 

If the Company elects to pay
out any of the settled RSUs in cash, I acknowledge that the Company will deduct applicable withholding taxes. If any of the settled RSUs
are paid out in Shares, I (check one):

 

		i.	☐	enclose cash, a certified cheque, bank draft or money order payable to the Company in the amount of $ ______________________as
full payment for the applicable withholding taxes; or

 

		ii.	☐	undertake to direct that such number of Shares are to be sold, and the proceeds of such Shares delivered
to the Company, as is necessary to put the Company in funds equal to the amount that would have otherwise been required in (i) above.

 

	Date:______________________ 	 

 

	 	 
	Participant’s Signature	 
	 	 
	 	 
	Name of Participant (print)	 

 

 

- 18 -Exhibit 10.1

 

Settlement Agreement

 

This Settlement Agreement,
dated July 27, 2022 (including all exhibits hereto, this “Agreement”), is by and among Lifeway Foods, Inc. (the “Company”)
on the one hand and Edward Smolyansky (“Mr. Smolyansky”) and Ludmila Smolyansky (“Mrs. Smolyansky”
and, together with Mr. Smolyansky, the “Shareholders”) on the other hand (each, a “Party” and, collectively,
the “Parties”).

 

The Parties hereto agree as
follows:

 

1.                 
The Company agrees that the Board of Directors of the Company (the “Board”) or a duly authorized committee thereof
shall take all necessary actions to (i) nominate, submit to shareholders, recommend and solicit proxies for (in a manner no less
favorable than its solicitation on behalf of other nominees of the Board) Mrs. Smolyansky for re-election as director at the 2022 annual
meeting of the shareholders (together with any postponements, adjournments or other delays thereof, the “2022 Annual Meeting”)
as a member of the Board’s slate of director nominees, which slate shall then include only the following individuals: Juan Carlos
Dalto, Jodi Levy, Dorri McWhorter, Perfecto Sanchez, Jason Scher, Pol Sikar, Julie Smolyansky and Ludmila Smolyansky (collectively, the
“Nominees”), and (ii) within five (5) business days after the date hereof, and effective no later than the
2022 Annual Meeting, increase the number of directors of the Company to eight (8). The Company hereby represents and warrants that, except
for Mr. Smolyansky, no shareholder of the Company has timely notified the Company of an intent to nominate any other individual for election
to the Board at the 2022 Annual Meeting, and agrees that no such other nomination shall be permitted. During the Term (as defined below),
the Company shall not increase the number of directors of the Company to more than nine (9). The Company agrees that if Mrs. Smolyansky
is not elected, resigns as a director or is otherwise unable to serve as a director during the Term, the Company shall provide the Shareholders
with criteria established by the Board for a substitute person, other than the Shareholders, to fill the resulting vacancy and the Shareholders
shall have the right to nominate a substitute person who satisfies such criteria, subject to the approvals of the ACG Committee (as defined
below) and of the Board, in each case after consideration of the substitute person in good faith and exercising its fiduciary duties,
which approvals shall not be unreasonably withheld. During the Term, Mrs. Smolyansky agrees to vote as a director in favor of any amendment
to any Company policies to which the directors are subject that receive votes in favor from at least a majority of the other directors.

 

2.                 
The Shareholders agree to appear in person or by proxy and vote all shares of common stock of the Company (the “Common
Stock”) beneficially owned (in accordance with Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended),
individually or otherwise, and controlled by each of the Shareholders and over which the Shareholders have power and authority to vote
(“Voting Shares”) in favor of (i) the Nominees submitted to shareholders by the Board for election at the 2022 Annual
Meeting and (ii) all other Board-recommended shareholder proposals to be considered at the 2022 Annual Meeting, as set forth in the Company’s
preliminary proxy statement, in the form filed with the Securities and Exchange Commission (the “SEC”) on May 2,
2022 (the “Preliminary Proxy Statement”), or, at the request of the Company, to appear in person and to give their
proxy to the Company-appointed proxies to be voted in their capacities as such without instruction as to how to vote on any such proposal.
Mr. Smolyansky hereby agrees to consent to and approve the voting of shares of Common Stock held by Smolyansky Holding LLC in favor of
the matters set forth in (i) and (ii) above.

 

3.                 
Each Shareholder hereby grants a proxy to the Chief Executive Officer of the Company and the Chief Financial Officer of the Company,
or any of them from time to time, or their designees (each a “Proxy Holder”), to vote (or consent pursuant to an action
by written consent of the shareholders, if applicable) with respect to the matters referenced under Section 2 hereof, and hereby authorizes
each Proxy Holder to represent and vote, if and only if such Shareholder (i) fails to vote, or (ii) attempts to vote (whether by proxy,
in person or by written consent), in a manner which is inconsistent with the terms of this Agreement, all of such Shareholder’s
Voting Shares in accordance with the terms and provisions of Section 2 of this Agreement or to take any action necessary to effect Section
2 of this Agreement. Each of the proxies granted pursuant to the immediately preceding sentence is given in consideration of the agreements
and covenants of the Company and the other Parties in connection with this Agreement and, as such, each is coupled with an interest and
shall be irrevocable unless and until the end of the Term (as defined below). Except as may be set forth in, or as may be granted pursuant
to, any pledge arrangement referenced in the Preliminary Proxy Statement, each Shareholder hereby revokes any and all previous proxies
or powers of attorney with respect to the Voting Shares and shall not hereafter, unless and until the end of the Term without the consent
of the Company, purport to grant any other proxy or power of attorney with respect to any of the Voting Shares, deposit any of the Voting
Shares into a voting trust or enter into any agreement (other than this Agreement), arrangement or understanding with any Person, directly
or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of the Voting Shares, in each case, with
respect to any of the matters set forth herein.

 

 

 

    	 	1	 

     

    

 

4.                 
Mr. Smolyansky hereby formally and irrevocably withdraws the notice of the nomination of Mr. Smolyansky, Robert Whalen, Austin
Hollis and Iana Trifonova previously submitted to the Company in the letter of March 10, 2022 to the Board from Mr. Smolyansky.

 

5.                 
The Company further agrees that the Board shall delegate to its Audit and Corporate Governance Committee (the “ACG Committee”)
the responsibility, duty and authority to explore strategic alternatives for the Company and to grant the ACG Committee the authority
to hire advisors, attorneys and/or accountants as it deems necessary and desirable to conduct such exploration. The ACG Committee shall
engage a nationally recognized financial advisor to assist it with the exploration of strategic alternatives. The Company shall provide
notice to Mrs. Smolyansky of all meetings and other proceedings of the ACG Committee (or any other committee or subcommittee of the Board)
related to such exploration, and Mrs. Smolyansky shall be entitled to attend as an observer, without voting rights, any portion of such
meetings or proceedings related to such exploration, subject to all processes, procedures and rules of conduct established by the ACG
Committee for its meetings and the Code, and to receive copies of all relevant meeting materials concurrent with their distribution to
other members of the ACG Committee (or such other committee or subcommittee of the Board).

 

6.                 
From the date hereof through the date that is the earliest of (i) ten (10) days prior to the deadline for the submission
of shareholder nominations for the Company’s 2023 annual meeting of shareholders (the “2023 Annual Meeting”),
(ii) ten (10) days prior to the deadline for the making of shareholder proposals at the 2023 Annual Meeting, and (iii) the
date of any material breach by the Company of its obligations under this Agreement, other than a breach resulting from actions of any
Shareholder, provided that (if such breach is curable) the Company has received ten days prior written notice of such breach and such
breach has not been cured prior to the expiration date of such ten day period (the “Term”), other than in their respective
capacities as a director of the Company or otherwise in accordance with this Agreement, the Shareholders shall not, without the prior
written consent of the Company:

 

(a)              
make, or in any way participate, directly or indirectly, in any “solicitation” of “proxies” to vote (as
such terms are used in the rules of the SEC), or seek to advise or influence any person with respect to the voting of, any Common Stock
(other than as a member of the Board and only in a manner consistent with the Board’s recommendation in connection with such matter);

 

(b)              
present at any annual meeting or any special meeting of the Company’s shareholders or through action by written consent any
proposal for consideration for action by shareholders or (except as explicitly permitted by this Agreement) propose any nominee for election
to the Board or seek the removal of any member of the Board, other than in the capacity as a director of the Company;

 

(c)              
act, alone or in concert with others, to seek to control the management, Board, policies, or affairs of the Company or solicit,
propose, seek to effect or negotiate with any other Person (including, without limitation, the Company) with respect to any form of business
combination or other extraordinary transaction with the Company or any restructuring, recapitalization, similar transaction, or other
transaction not in the ordinary course of business, with respect to the Company; provided, however, nothing in this clause (c) shall present
the Shareholders from selling or purchasing any Common Stock;

 

(d)              
request, or take any action to request, access to or review, inspection or copying of, the Company’s list of shareholders,
or any information in the possession or control of the Company or to which the Company has access relating to Common Stock beneficially
owned by any Person, whether under state law, federal law (including but not limited to the federal securities laws and the rules of the
SEC) or otherwise, or make any request of the Company to distribute materials to any of the Company’s shareholders;

 

(e)              
request, or take any action to request, access to or review, inspection or copying of, any of the Company’s books and records,
in whatever form such records may be maintained, whether under state law, federal law (including but not limited to the federal securities
laws and the rules of the SEC) or otherwise;

 

 

 

    	 	2	 

     

    

 

(f)               
other than as contemplated by this Agreement, and except for any agreement solely among the Shareholders or their Affiliates that
does not otherwise violate this Section 6, enter into any shareholders’ agreement, voting agreement or voting trust with other holders
of Common Stock;

 

(g)              
make or issue, or cause to be made or issued, any public disclosure, statement or announcement (including any SEC filing) (x) in
support of any solicitation described in clause (a) above, or (y) negatively commenting upon the Company, including the Company’s
corporate strategy, business, research and development, corporate activities, Board or management (and including making any statements
critical of the Company’s business, strategic direction, capital structure or compensation practices);

 

(h)              
institute, solicit, assist or join, as a party, any litigation, arbitration or other proceeding against or involving the Company
or any of its current or former directors or officers in such capacities (including derivative actions) other than to enforce the provisions
of this Agreement; or

 

(i)                
direct, instruct, assist or encourage any of their respective Affiliates, Associates or representatives to take any such action.

 

7.                 
Furthermore, as used herein, (a) the terms “Affiliate” and “Associate” (and any plurals thereof)
have the meanings ascribed to such terms under Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder and shall include all persons or entities that at any time become Affiliates or Associates of any
applicable person or entity referred to in this Agreement; provided, however, that for purposes of this Agreement, neither
the Company nor any of its subsidiaries, nor any of their respective directors, officers or employees, shall be deemed Affiliates or Associates
of Mr. Smolyansky or Mrs. Smolyansky; provided, however, that the Shareholders acknowledge that they may be deemed Affiliates or Associates
of each other.

 

8.                 
Except as may otherwise be required by law, from and after the date hereof, no Party shall directly or indirectly make or issue
or cause to be made or issued any disclosure, announcement, or statement (including without limitation the filing of any document or report
with the SEC (with the exception of information disclosed in the 2022 definitive proxy statement) or any other governmental agency or
any disclosure to any journalist, member of the media, or securities analyst) concerning another Party or, with respect to the Company,
any of its past, present or future directors, officers, employees, advisors or consultants or other Affiliates or Associates, which disparages
such other Party or any of such other Party’s respective past, present, or future directors, officers, employees, advisors, consultants
or other Affiliates or Associates.

 

9.                 
Notwithstanding anything in this Agreement to the contrary, the Company shall provide the Shareholders a draft of any proposed
disclosure in any press release, report, proxy statement or other public disclosure that references this Agreement or the matters covered
hereby for review and comment, in each case at least twenty-four (24) hours prior to the issuance, filing or furnishing thereof (the
“Review Period”). The Company shall consider any reasonable comments of the Shareholders thereto. Subject to the preceding
sentence, upon the expiration of the applicable Review Period, the Company may deem such disclosure approved without further communications
with the Shareholders and may disseminate, file or furnish such disclosure publicly. Neither the Shareholders nor any of their Affiliates
shall make or cause to be made any public announcement or statement that is inconsistent with or contrary to the statements made in the
Company’s initial press release regarding this Agreement (as disclosed to the Shareholders prior to the execution hereof) except
as required by law.

 

10.             
Within five (5) business days of the execution of this Agreement, the Company shall reimburse the Shareholders’ reasonable
and documented legal expenses incurred to date in connection with the Shareholders’ solicitation of proxies from the Company’s
shareholders and the negotiation and execution of this Agreement in an amount not to exceed $15,000 in the aggregate.

 

 

 

    	 	3	 

     

    

 

11.             
Each of the Shareholders, on his or her own behalf, individually and as trustee, manager,
or similar capacity of any other shareholder, and that of his or her heirs, executors, attorneys, administrators, successors, and assigns,
fully releases and discharges the Company, its predecessors, successors, parents, subsidiaries, affiliates, and assigns, and its and their
directors, officers, trustees, employees, and agents, in such official capacities (the “Releasees”) from all liability,
claims, demands, and actions that the Shareholders in their capacity as shareholders now have, may have had, or may ever have, whether
currently known or unknown, as of or prior to the Shareholders execution of this Agreement. For the avoidance of doubt, neither of the
Shareholders releases any of the Releasees from any liability, claims, demands or actions that such Shareholder may have in his or her
capacities as a current or former director, consultant, officer, employee or agent of, or licensor to, the Company, or in any other capacity
other than as a shareholder of the Company, and neither of the Shareholders releases any of the Releasees from any liability, claims,
demands or actions that such Shareholder may have against such Releasee in such Releasee’s individual capacity.

 

12.             
Notice. All communications to a Party pursuant to or in connection with this Agreement shall be sent to the applicable
mailing and email addresses set forth below, or to such other address(es) of which such Party may subsequently notify the other Parties
in writing:

 

For the Shareholders:
to their mailing and email addresses set forth in the Company’s books and records,

 

with a courtesy copy, which shall not constitute notice,
to:

 

Nicholas H. Callahan

Barack Ferrazzano Kirschbaum & Nagelberg LLP

200 W. Madison Street, Suite 3900

Chicago, IL 60606

nick.callahan@bfkn.com

For the Company:

 

Lifeway Foods, Inc.

Attn: Julie Smolyansky, President and Chief Executive Officer
and

Eric Hanson, Chief Financial Officer

6431 West Oakton St.

Morton Grove, IL 60053

julies@lifeway.net

erich@lifeway.net

 

with a courtesy copy, which shall not constitute notice,
to:

 

Kelley Drye & Warren LLP

Attn: Tim Lavender

333 West Wacker Drive

Suite 2600

Chicago, IL 60606

tlavender@kelleydrye.com

 

 

 

 

    	 	4	 

     

    

13.             
Each Party shall instruct its Affiliates and Associates to comply with the terms of this Agreement and shall be responsible for
any breach of this Agreement by any such Affiliate or Associate. A breach of this Agreement by an Affiliate or Associate of a Party, if
such Affiliate or Associate is not a Party to this Agreement, shall be deemed to occur if such Affiliate or Associate engages in conduct
that would constitute a breach of this Agreement if such Affiliate or Associate was a Party to the same extent as a Party to this Agreement.

 

14.             
THE CONSTRUCTION AND INTERPRETATION OF THIS AGREEMENT SHALL BE EXCLUSIVELY GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS, WITHOUT
GIVING EFFECT TO ITS CONFLICT OF LAW RULES. BY SIGNING THIS AGREEMENT, THE PARTIES IRREVOCABLY CONSENT TO THE EXCLUSIVE JURISDICTION OF
THE FEDERAL DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION, OR THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS, IF
NO GROUNDS FOR FEDERAL JURISDICTION ARE AVAILABLE, FOR RESOLUTION OF ALL DISPUTES RELATING TO OR ARISING UNDER THIS AGREEMENT. BY SIGNING
THIS AGREEMENT, THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY AND ALL RIGHTS HE OR SHE MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT.

 

15.             
The Parties agree to promptly confer and, if necessary, submit to mediation in front of a JAMS mediator in Chicago, Illinois within
20 days of any disputes arising out of or relating to this Agreement, and the Company on the one hand and the Shareholders on the other
hand shall be equally responsible for all fees and expenses of the mediator.

 

16.             
No amendment, modification or waiver of this Agreement shall be binding or effective for any purpose unless it is made in a writing
signed by the Party against whom enforcement of such amendment, modification, or waiver is sought. No course of dealing between the Parties
to this Agreement shall be deemed to modify, amend, or discharge any provision or term of this Agreement. No delay by any Party to this
Agreement in the exercise of any of its rights or remedies shall operate as a waiver thereof, and no single or partial exercise by any
Party to this Agreement of any such right or remedy shall preclude any other or further exercise thereof. A waiver of any right or remedy
on any one occasion shall not be construed as a bar to or waiver of any such right or remedy on any other occasion.

 

17.             
This Agreement may be executed in one or more counterparts, each of which shall be considered an original instrument, but all of
which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by each
of the Parties hereto and delivered to each of the other Parties hereto. Delivery of an executed counterpart of this Agreement by facsimile
or electronic mail in portable document format (pdf) shall be equally as effective as delivery of an original executed counterpart of
this Agreement.

 

18.             
The Parties and their respective legal counsel participated in the preparation of this Agreement and the Parties have consulted
their legal counsel, and therefore, this Agreement shall be construed neither against nor in favor of any of the Parties hereto, but rather
in accordance with the fair meaning thereof. Words in this Agreement of the male, female, or neutral gender shall be construed to include
any other gender where appropriate. Words used in this Agreement that are either singular or plural shall be construed to include the
other where appropriate. The terms “Agreement,” “hereof,” “herein,” “hereby” and words
of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole. The word “or” shall
not be exclusive.

 

19.             
Any provision of this Agreement that is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition, unenforceability or non-authorization without invalidating the remaining provisions
hereof or affecting the validity, enforceability, or legality of such provision in any other jurisdiction. The Parties agree to negotiate
in good faith to replace any illegal, invalid, or unenforceable provision of this Agreement with a legal, valid, and enforceable provision
that, to the extent possible, will preserve the economic bargain of this Agreement.

 

20.             
This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, parents, affiliates,
subsidiaries, officers, directors, partners, employees, and permitted assigns.

 

21.             
Each Party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other Party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

[SIGNATURE PAGES FOLLOW]

 

 

    	 	5	 

     

    

 

 

IN WITNESS WHEREOF, each of
the Parties hereto has executed this Agreement or caused the same to be executed by its duly authorized representative as of the date
first above written.

 

 

	 	LIFEWAY FOODS, INC.
	 	 
	 	 
	 	By:     /s/ Julie Smolyansky                              
	 	Name: Julie Smolyansky
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	 

 

 

 

 

 

 

    	 	6	 

     

    

 

	 	SHAREHOLDERS
	 	 
	 	 
	 	/s/ Edward Smolyansky                              
	 	Edward Smolyansky
	 	 
	 	 
	 	 
	 	 
	 	/s/ Ludmila
  Smolyansky                              
	 	Ludmila
  Smolyansky
	 	 
	 	 
	 	 

 

 

  

    	 	7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00346-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00346-of-00352.parquet"}]]