Document:

Exhibit 4.4

 

WARRANT AGENT AGREEMENT

 

This Warrant Agent Agreement
(“Warrant Agreement”) is made as of January [__], 2022, by and among FGI Industries Ltd., a Cayman Islands exempt company,
with offices at 906 Murray Road, East Hanover, NJ 07869 (the “Company”), and Continental Stock Transfer & Trust
Company, a Delaware  limited purpose trust company (the “Warrant Agent”).

 

WHEREAS, the Company
is engaged in its initial public offering (the “Public Offering”) of 2,500,000 units, each consisting of one ordinary
share, par value $0.0001 per share (the “Ordinary Shares”) and one warrant (the “Warrants”) entitling
its holder to purchase one Ordinary Share for each whole warrant (the “Warrant Shares”) (including the additional Ordinary
Shares and/or Warrants issuable to the underwriter if the underwriter’s over-allotment option is exercised);

 

WHEREAS, the Company
has filed, with the Securities and Exchange Commission (the “SEC”), a registration statement on Form S-1 (Registration
No. 333-259457) (as amended, the “Registration Statement”), for the registration, under the Securities Act of 1933,
as amended (the “Act”), of the offer and sale of the Ordinary Shares, the Warrants and the Warrant Shares;

 

WHEREAS, the Company
desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance,
registration, transfer, exchange, redemption and exercise of the Warrants;

 

WHEREAS, the Company
desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective
rights, limitation of rights and immunities of the Company, the Warrant Agent and the holders of the Warrants; and

 

WHEREAS, all acts and
things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned
by or on behalf of the Warrant Agent, as provided herein, the legally valid and binding obligations of the Company, and to authorize the
execution and delivery of this Warrant Agreement;

 

NOW, THEREFORE, in
consideration of the mutual agreements herein contained, the parties hereto agree as follows:

 

		1.	Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for
the Company for the Warrants, and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with
the express terms and conditions set forth in this Warrant Agreement.

 

		2.	Warrants.

 

		2.1.	Form of Warrant. Each Warrant shall be: (a) issued in registered form only, (b) in substantially
in the form of Exhibit A attached hereto (a “Warrant Certificate”), (c) signed by, or bear the facsimile or
electronic signature of, the Chairman of the Board of Directors of the Company, the Chief Executive Officer, the President, the Chief
Financial Officer, the Treasurer or Secretary of the Company, and (d) signed manually or by facsimile or electronic signature
by the Warrant Agent. In the event the person whose facsimile or electronic signature has been placed upon any Warrant shall have ceased
to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect
as if he or she had not ceased to be such at the date of issuance.

 

     

     

    

 

		2.2.	Effect of Countersignature. Unless and until countersigned by the manual, facsimile or electronic
signature of the Warrant Agent pursuant to this Warrant Agreement, a Warrant shall be invalid and of no effect and may not be exercised
by the holder thereof.

 

		2.3.	Registration.

 

		2.3.1.	Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”)
for the registration of the original issuance and transfers of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent
shall issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance
with instructions delivered to the Warrant Agent by the Company. Except as provided in this Section 2.3.1, upon the initial issuance
of the Warrants, to the extent the Warrants are Depository Trust Company (“Depository”) eligible as of such date, all
of the Warrants shall initially be represented by one or more Warrant Certificates reflecting book-entry of ownership (each a “Book-Entry
Warrant Certificate”), deposited with the Depository and registered in the name of Cede & Co., a nominee of the Depository.
Ownership of beneficial interests in the Book-Entry Warrant Certificates shall be shown on, and the transfer of such ownership shall be
effected through, records maintained (i) by the Depository or its nominee for each Book-Entry Warrant Certificate; (ii) by institutions
that have accounts with the Depository (such institution, with respect to a Warrant in its account, a “Participant”);
or (iii) directly on the book-entry records of the Warrant Agent with respect only to owners of beneficial interests that request such
direct registration. If the Warrants are not DTC-eligible at the issuance date or the Depository subsequently ceases to make its book-entry
settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding making other arrangements for book-entry
settlement within ten (10) Business Days (as defined below) after the Depository ceases to make its book-entry settlement available. In
the event that the Company does not make alternative arrangements for book-entry settlement within ten (10) Business Days, or the Warrants
are not eligible for, or it is no longer necessary to have the Warrants available in, book-entry form, the Warrant Agent shall provide
written instructions, upon receipt of instructions from the Company, to the Depository to deliver to the Warrant Agent for cancellation
each Book-Entry Warrant Certificate, and the Company shall instruct the Warrant Agent to deliver to the holder definitive Warrant Certificates
in physical form evidencing such Warrants.

 

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		2.3.2.	Registered Holder; Beneficial Owners. Prior to due presentment for registration of transfer of
any Warrant, the Company and the Warrant Agent may deem and treat the Person (as defined in the Warrant Certificate) in whose name such
Warrant shall be registered upon the Warrant Register
(“Registered Holder”) as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding
any notation of ownership or other writing on the Warrant Certificate made by anyone other than the Company or the Warrant Agent), for
the purpose of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any
notice to the contrary. The term “beneficial owner” shall mean any Person in whose name ownership of a beneficial interest
in the Warrants evidenced by a Book-Entry Warrant Certificate is recorded in the records maintained by the Depository or its nominee or
a Participant.

 

		2.4.	Separate Issuance of Warrants. The Ordinary Shares and the Warrants shall be issued separately
and shall be transferable separately immediately upon issuance. The Ordinary Shares and the Warrants will begin to trade separately on
or promptly after the date that is the effective date of the Registration Statement.

 

		2.5.	Uncertificated Warrants. Notwithstanding the foregoing and anything else herein to the contrary,
the Warrants may be issued in uncertificated form if so specified by the Company.

 

		2.6.	Opinion of Counsel. The Company shall provide an opinion of counsel to the Warrant Agent prior
to the issuance of the Warrants to set up a reserve of Warrants and related Warrant Shares. The opinion shall state that:

 

(a) the offer
and sale of all Warrants or Warrant Shares, as applicable, are registered under the Securities Act of 1933, as amended, or are exempt
from such registration; and

 

(b) all Warrants
or Warrant Shares, as applicable, are validly issued, fully paid and non-assessable.

 

		3.	Terms and Exercise of Warrants.

 

		3.1.	Warrant Price. Each Warrant shall, when countersigned by the Warrant Agent, entitle the Registered
Holder thereof, subject to the provisions of such Warrant and of this Warrant Agreement, to purchase from the Company the number of Ordinary
Shares stated therein, at the price of $[___] per whole Ordinary Share, subject to the adjustments provided in Section 4 and in
the last sentence of this Section 3.1. The term “Warrant Price” as used in this Warrant Agreement refers to
the price per whole share at which Ordinary Shares may be purchased at the time such Warrant is exercised. The Company, in its sole discretion,
may lower the Warrant Price at any time prior to the Expiration Date (as defined below); provided, that any such reduction remains in
effect for no less than ten (10) Business Days and shall be identical in percentage terms among all of the then outstanding Warrants.
The Company shall promptly notify the Warrant Agent of any Warrant Price reduction.

 

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		3.2.	Duration of Warrants. A Warrant may be exercised only during the period (“Exercise Period”)
commencing on the Issuance Date (as defined in the Warrant Certificate) and terminating at 5:00 p.m., New York City time, on [___], 2027
(“Expiration Date”). Each Warrant not exercised on or before the Expiration Date shall become null and void, and all
rights thereunder and all rights in respect thereof under this Warrant Agreement shall cease at the close of business on the Expiration
Date. The Company may extend the duration of the Warrants by delaying the Expiration Date; provided, however,
that the Company will provide notice of not less than twenty (20) days to the Warrant Agent and Registered Holders of such extension and
that such extension shall be identical in duration among all of the then outstanding Warrants.

 

		3.3.	Exercise of Warrants.

 

		3.3.1.	Payment. Subject to the provisions of the Warrant and this Warrant Agreement, a Warrant, when countersigned
by the Warrant Agent, may be exercised by the Registered Holder thereof by surrendering at the office of the Warrant Agent, or at the
office of its successor as Warrant Agent, at 1 State Street, 30th Floor, New York, NY 10004, (i) the Warrant Certificate evidencing
the Warrants to be exercised, or, in the case of a Book-Entry Warrant Certificate, the Warrants to be exercised (the “Book-Entry
Warrants”) shall be exercised as described herein and Section 1 of the Warrant, (ii) the subscription form, as set forth in
the Warrant Certificate (the “Exercise Notice”), in the case of a Book-Entry Warrant Certificate, properly delivered
by the Participant in accordance with the Depository’s procedures, and (iii), unless the cashless exercise procedure specified in
Section 1(d) of the Warrant is specified in the applicable Notice of Exercise (a “Registration Failure Cashless Exercise”),
payment in full, in lawful money of the United States, in cash, by wire of same day funds or by certified or bank cashier’s check
payable to the order of the Company, the Warrant Price for such number of Warrant Shares totaling whole Ordinary Shares as to which the
Warrant is exercised and any and all applicable taxes due in connection with the exercise of the Warrant, the exchange of the Warrant
for the Warrant Shares, and the issuance of the Warrant Shares. Notwithstanding any other provision in this Warrant Agreement, a holder
whose interest in a Book-Entry Warrant is a beneficial interest in a Book-Entry Warrant held through the Depositary (or another established
clearing corporation performing similar functions), shall effect exercises by delivering to the Depositary (or such other clearing corporation,
as applicable) the appropriate instruction form for exercise, complying with the procedures to effect exercise that are required by Depositary
(or such other clearing corporation, as applicable). Upon receipt of an Exercise Notice for a Registration Failure Cashless Exercise,
the Company will promptly calculate and transmit to the Warrant Agent the number of Warrant Shares issuable in connection with such Registration
Failure Cashless Exercise. The Warrant Agent shall have no duty or obligation to investigate or confirm whether the Company’s determination
of the number of Warrant Shares to be issued on such exercise is accurate or correct.

 

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		3.3.2.	Fractional Shares. Notwithstanding any provision to the contrary contained in this Warrant Agreement,
the Company shall not be required to issue any fractional Ordinary Shares in connection with the exercise of Warrants for Warrant Shares,
and in any case where the Registered Holder would be entitled under the terms of the Warrants to receive a fractional Ordinary Share as
a Warrant Share upon the exercise of such Registered Holder’s Warrants, issue or cause to be issued only the nearest whole number
of aggregate Warrant Shares issuable on such exercise (and such remaining fractional shares will be disregarded and an amount in cash
equal to the fractional amount multiplied by the exercise price will be paid to the Registered Holder); provided, that if more than one
Warrant Certificate is presented for exercise at the same time by the same Registered Holder, the number of Warrant Shares which shall
be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of Warrant Shares issuable on exercise of
all such Warrants. The Company shall provide an initial funding of one thousand dollars ($1,000) for the purpose of issuing cash in lieu
of fractional shares. From time to time thereafter, the Warrant Agent may request additional funding to cover payments for fractional
Warrant Shares. The Warrant Agent shall have no obligation to make such payments for fractional Warrant Shares unless the Company shall
have provided the necessary funds to pay in full all amounts due and payable with respect thereto.

 

		3.3.3.	Issuance of Certificates. As soon as practicable after the exercise of any Warrant and the clearance
of the funds in payment of the Warrant Price, the Warrant Agent shall advise the Company and its transfer agent regarding (i) the number
of Warrant Shares issuable upon such exercise in accordance with the terms and conditions of this Warrant Agreement, (ii) the instructions
of each Holder or Participant, as they case may be, with respect to delivery of the Warrant Shares issuable upon such exercise, (iii)
in case of a Book-Entry Warrant Certificate, the notation that shall be made to the records maintained by the Depository, its nominee
for each Book-Entry Warrant Certificate, or a Participant, as appropriate, evidencing the balance, if any, of the Warrants remaining after
such exercise and (iv) such other information as the Company or such transfer agent and registrar shall reasonably require. Promptly thereafter
and within the time period set forth in the Warrants, the Company shall instruct its transfer agent to issue to the Registered Holder
of such Warrant a certificate or certificates representing the number of full Ordinary Shares to which he, she or it is entitled, registered
in such name or names as may be directed by him, her or it, provided, in lieu of delivering physical certificates representing the Warrant
Shares issuable upon exercise, and provided the Company’s transfer agent is participating in the Depository’s Fast Automated
Securities Transfer program, the Company shall use its commercially reasonable efforts to cause its transfer agent to electronically transmit
the Warrant Shares issuable upon exercise to the Registered Holder by crediting the account of the Participant of record with the Depository
or through its Deposit Withdrawal Agent Commission system. If such Warrant shall not have been exercised or surrendered in full, in case
of a Book-Entry Warrant Certificate, a notation shall be made to the records maintained by the Depository or nominee for each Book-Entry
Warrant Certificate, evidencing the balance, if any, of the Warrants remaining after such exercise.
Notwithstanding the foregoing, the Company shall not be obligated to deliver any securities pursuant to the exercise of a Warrant unless
(a) a registration statement under the Act with respect to the Ordinary Shares issuable upon exercise of such Warrants is effective and
a current prospectus relating to the Ordinary Shares issuable upon exercise of the Warrants is available for delivery to the Registered
Holder of the Warrant or (b) in the absence of a registration statement under the Act with respect to the offer and sale of the Ordinary
Shares and a current prospectus relating to the Ordinary Shares, in the opinion of counsel to the Company, the exercise of the Warrants
is exempt from the registration requirements of the Act and such securities are qualified for sale or exempt from qualification under
applicable securities laws of the states or other jurisdictions in which the Registered Holder resides; provided that in the case of a
Registration Failure Cashless Exercise, no registration statement under the Act with respect to the Ordinary Shares and no current prospectus
relating to the Ordinary Shares, and no opinion of counsel shall be required. Until otherwise advised in writing by the Company, the Warrant
Agent shall always be entitled to assume that either clause (a) or clause (b) is in effect and shall incur no liability in making such
assumption. Warrants may not be exercised by, or securities issued to, any Registered Holder in any state in which such exercise or issuance
would be unlawful. In the event such an exercise would be unlawful with respect to a Registered Holder in any state, the Registered Holder
shall not be entitled to exercise such Warrants and such Warrants may have no value and expire worthless. In no event will the Company
be obligated to pay such Registered Holder any cash consideration upon exercise or otherwise “net cash settle” the Warrant.

 

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		3.3.4.	Valid Issuance. The validity of any exercise of Warrants will be determined by the Company in its
reasonable discretion. The Warrant Agent shall notify a holder of any purported invalidity of any exercise of Warrants. All Ordinary Shares
issued upon the proper exercise or surrender of a Warrant in conformity with this Warrant Agreement shall be validly issued, fully paid
and nonassessable.

 

		3.3.5.	Date of Issuance. Each Person in whose name any Ordinary Shares are issued shall, for all purposes,
be deemed to have become the holder of record of such shares on the date on which the Warrant was surrendered and payment of the Warrant
Price was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and payment is a
date when the stock transfer books of the Company are closed, such Person shall be deemed to have become the holder of such shares at
the close of business on the next succeeding date on which the stock transfer books are open (the “Exercise Date”).
If any of (i) the Warrant Certificate or the Book-Entry Warrants, (ii) the Exercise Notice, or (iii) the Warrant Price therefor, is received
by the Warrant Agent after 5:00 P.M., New York time, on the specified Exercise Date, the Warrants will be deemed to be received and exercised
on the Business Day next succeeding the Exercise Date, subject to clearance of the funds. If the date specified as the Exercise Date is
not a Business Day, the Warrants will be deemed to be received and exercised on the next succeeding day that is a Business Day, subject
to clearance of the funds. If the Warrants are received or deemed to
be received after the Expiration Date, the exercise thereof will be null and void and any funds delivered to the Warrant Agent will be
returned to the Registered Holder as soon as practicable.

 

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		3.3.6.	Cost Basis Information.

 

(a) In the event of a cash exercise,
the Company hereby instructs the Warrant Agent to record cost basis for newly issued shares in a manner to be subsequently communicated
by the Company in writing to the Warrant Agent.

 

(b) In the event of a Registration
Failure Cashless Exercise, the Company shall provide cost basis for shares issued pursuant to a Registration Failure Cashless Exercise
at the time the Company confirms the number of Warrant Shares issuable in connection with the Registration Failure Cashless Exercise to
the Warrant Agent pursuant to Section 3.3.1.

 

		4.	Adjustments; Rights. The Warrant Shares and Warrant Price shall be subject to adjustment as provided
for in the Warrant Certificate, and the rights of Warrant holders as provided for in the Warrant Certificate are incorporated herein by
reference and shall be adhered to by the Company and the Warrant Agent. The Company hereby agrees that it will provide the Warrant Agent
with reasonable notice of any adjustment events. The Company further agrees that it will provide to the Warrant Agent with any new or
amended exercise terms. Whenever the Warrant Shares or Warrant Price or the number of Ordinary Shares issuable upon the exercise of each
Warrant is adjusted, the Company shall (a) promptly prepare a certificate setting forth the Warrant Price of each Warrant as so adjusted,
and a brief statement of the facts accounting for such adjustment, (b) promptly file with the Warrant Agent and with each transfer agent
for the Ordinary Shares a copy of such certificate and (c) instruct the Warrant Agent to send a brief summary thereof to each Holder of
a Warrant Certificate. The Warrant Agent shall be fully protected in relying on any such certificate and on any adjustment or statement
therein contained and shall have no duty or liability with respect to, and shall not be deemed to have knowledge of any such adjustment
or any such event unless and until it shall have received such certificate.

 

		5.	Transfer and Exchange of Warrants.

 

		5.1.	Transfer of Warrants. The Warrants may be transferred or exchanged separately from Ordinary Shares.

 

		5.2.	Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of
any outstanding Warrant into the Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly
guaranteed and accompanied by appropriate instructions for transfer, or properly noticed by the Depositary as contemplated by Section
5.3. Upon any such transfer, a new Warrant, representing an equal aggregate number of Warrants shall be issued and the old Warrant
shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to
time upon the Company’s request. A party requesting transfer of Warrants
must provide any evidence of authority that may be required by the Warrant Agent, including but not limited to, a signature guarantee
from an eligible guarantor institution participating in a signature guarantee program approved by the Securities Transfer Association.

 

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		5.3.	Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together
with a written request for exchange or transfer reasonably acceptable to Warrant Agent, duly executed by the registered holder thereof,
or by a duly authorized attorney, and, thereupon, the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested
by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however,
that, except as otherwise provided herein or in any Book-Entry Warrant Certificate, each Book-Entry Warrant Certificate may be transferred
only in whole and only to the Depository, to another nominee of the Depository, to a successor depository, or to a nominee of a successor
depository; provided further, that in the event a Warrant surrendered for transfer bears a restrictive legend, the Warrant
Agent shall not cancel such Warrant and shall issue new Warrants in exchange therefor until the Warrant Agent has received an opinion
of counsel for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive
legend. Notwithstanding anything else in this Section 5.3, in case of a Book-Entry Warrant, the holder or Participant shall notify
the Depositary in accordance with the Depository’s procedures of a requested transfer and the Depositary shall provide notice to
an account of the Warrant Agent at the Depository designated for such purpose in writing by the Warrant Agent to the Depository from time
to time, of a transfer to be recorded in the records maintained by the Depository, its nominee for each Book-Entry Warrant Certificate,
or a Participant, as appropriate, evidencing the balance, if any, of the Warrants remaining after such transfer and the new name in which
the transferred Book Entry Warrants are to be held.

 

		5.4.	Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer
or exchange which will result in the issuance of a Warrant Certificate or a Book-Entry Warrant Certificate for a fraction of a Warrant.

 

		5.5.	Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and
to deliver, in accordance with the terms of this Warrant Agreement, the Warrants required to be issued pursuant to the provisions of this
Section 5, and the Company, whenever required by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on
behalf of the Company for such purpose.

 

		6.	Other Provisions Relating to Rights of Registered Holders of Warrants.

 

		6.1.	No Rights as Stockholder. A Warrant does not entitle the Registered Holder thereof to any of the
rights of a stockholder of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise
any preemptive rights to vote or to consent or to receive notice as stockholders in respect of the meetings of stockholders or the election
of directors of the Company or any other matter.

 

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		6.2.	Lost, Stolen Mutilated or Destroyed Warrants. If any Warrant is lost, stolen, mutilated or destroyed,
the Company and the Warrant Agent may, absent notice to Warrant Agent that such certificates have been acquired by a bona fide purchaser,
on such terms as to indemnity or otherwise as they may in their discretion impose (which terms shall in all cases include posting of a
lost security bond by or on behalf of the Registered Holder, and in the case of a mutilated Warrant, include the surrender thereof), issue
a new Warrant of like denomination, tenor and date as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall
constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant
shall be at any time enforceable by anyone.

 

		6.3.	Reservation of Ordinary Shares. The Company shall at all times reserve and keep available a number
of its authorized but unissued Ordinary Shares that will be sufficient to permit the exercise in full of all outstanding Warrants issued
pursuant to this Warrant Agreement.

 

		6.4.	Registration of Ordinary Shares. The Company agrees to use its commercially reasonable efforts
to maintain the effectiveness of the Registration Statement until the expiration of the Warrants in accordance with the provisions of
this Warrant Agreement; provided, however, that the Company shall not have penalties for failure to deliver
Ordinary Shares if a registration statement is not effective or a current prospectus is not on file with the SEC at the time of exercise
by the Registered Holder. In addition, to the extent not completed at the time of the initial issuance of the Warrants, the Company agrees
to use its reasonable efforts to register such securities under the blue sky laws of the states of residence of the exercising Registered
Holders to the extent an exemption under the Act is not available for the exercise of the Warrants. In no event will the Registered Holder
of a Warrant be entitled to receive a net-cash settlement or Ordinary Shares or other consideration as of result of the Company’s
non-compliance with this Section 6.4.

 

		7.	Concerning the Warrant Agent and Other Matters.

 

		7.1.	Payment of Taxes. The Company will, from time to time, promptly pay all taxes and charges that
may be imposed upon the Company or the Warrant Agent in respect of the issuance or delivery of Ordinary Shares upon the exercise of Warrants,
but neither the Company nor the Warrant Agent shall be obligated to pay any transfer taxes in respect of the Warrants or such shares.
The Warrant Agent shall not register any transfer or issue or deliver any Warrant Certificate(s) or Warrant Shares unless or until the
Persons requesting the registration or issuance shall have paid to the Warrant Agent for the account of the Company the amount of such
tax, if any, or shall have established to the reasonable satisfaction of the Company and the Warrant Agent that such tax, if any, has
been paid.

 

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		7.2.	Resignation, Consolidation, or Merger of Warrant Agent.

 

		7.2.1.	Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed,
may resign its duties and be discharged from all further duties and liabilities hereunder after giving thirty (30) days’ notice
in writing to the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company
shall appoint, in writing, a successor warrant agent in place of the Warrant Agent. If the Company shall fail to make such appointment
within a period of thirty (30) days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by
the Registered Holder of the Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then
the Registered Holder of any Warrant may apply to the Supreme Court of the State of New York for the County of New York for the appointment
of a successor warrant agent. Any successor warrant agent, whether appointed by the Company or by such court, shall be an entity authorized
under applicable laws to exercise the powers of a transfer agent and subject to supervision or examination by federal or state authorities.
After appointment, any successor warrant agent shall be vested with all the authority, powers, rights, immunities, duties and obligations
of its predecessor Warrant Agent with like effect as if originally named as warrant agent hereunder, without any further act or deed;
but, if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of
the Company, an instrument transferring to such successor warrant agent all the authority, powers, and rights of such predecessor Warrant
Agent hereunder; and, upon request of any successor warrant agent, the Company shall make, execute, acknowledge, and deliver any and all
instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers,
rights, immunities, duties and obligations.

 

		7.2.2.	Notice of Successor Warrant Agent. In the event a successor warrant agent shall be appointed, the
Company shall give notice thereof to the predecessor Warrant Agent and the transfer agent for the Ordinary Shares not later than thirty
(30) days before the effective date of any such appointment.

 

		7.2.3.	Merger or Consolidation of Warrant Agent. Any Person into which the Warrant Agent may be merged
or with which it may be consolidated or any Person resulting from any merger or consolidation to which the Warrant Agent shall be a party
shall be the successor warrant agent under this Warrant Agreement without any further act on the part of the Company or the Warrant Agent.

 

		7.2.4.	Confidentiality. The Warrant Agent and the Company agree that all books, records, information and
data pertaining to the business of the other party, including inter alia, personal, non-public Holder information, which are exchanged
or received pursuant to the negotiation or the carrying out of this Warrant Agreement shall remain confidential, and shall not be voluntarily
disclosed to any other Person, except as may be required by law, including, without limitation, pursuant to subpoenas from state or federal
government authorities.

 

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		7.3.	Fees and Expenses of Warrant Agent.

 

		7.3.1.	Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services
as Warrant Agent hereunder as set forth in the fee schedule mutually agreed upon by the parties and will reimburse the Warrant Agent upon
demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder.

 

		7.3.2.	Further Assurances. The Company agrees to perform, execute, acknowledge and deliver, or cause to
be performed, executed, acknowledged and delivered, all such further and other acts, instruments and assurances as may reasonably be required
by the Warrant Agent for the carrying out or performing of the provisions of this Warrant Agreement.

 

		7.4.	Liability of Warrant Agent.

 

		7.4.1.	Reliance on Company Statement. Whenever, in the performance of its duties under this Warrant Agreement,
the Warrant Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking
or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may
be deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer, Chief Financial Officer or Chairman
of the Board of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon, and be held harmless for such reliance,
such statement for any action taken or suffered or omitted to be taken by it in the absence of bad faith pursuant to the provisions of
this Warrant Agreement, and shall not be held liable in connection with any delay in receiving such statement.

 

		7.4.2.	Indemnity. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful
misconduct or bad faith (each as determined by a final, non-appealable judgment of a court of competent jurisdiction). The Company covenants
and agrees to indemnify the Warrant Agent and hold it harmless against any and all liabilities, including judgments, losses, damages,
costs, expenses, and reasonable counsel fees, which may be paid, incurred or suffered by or to which it may become subject, arising from
or out of, directly or indirectly, any claims or liability resulting from its actions as Warrant Agent pursuant hereto; provided, that
such covenant and agreement does not extend to, and the Warrant Agent shall not be indemnified with respect to, such costs, expenses,
losses and damages incurred or suffered by the Warrant Agent as a result of, or arising out of, its gross negligence, willful misconduct
or bad faith each as determined by a final, non-appealable judgment of a court of competent jurisdiction).

 

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		7.4.3.	Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this
Warrant Agreement or with respect to the validity or execution of any Warrant (except its countersignature thereof); nor shall it be responsible
for any breach by the Company of any covenant
or condition contained in this Warrant Agreement or in any Warrant; nor shall it be responsible to make any adjustments required under
the provisions of Section 4 or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence
of facts that would require any such adjustment; nor shall it, by any act hereunder, be deemed to make any representation or warranty
as to the authorization or reservation of any Ordinary Shares to be issued pursuant to this Warrant Agreement or any Warrant or as to
whether any Ordinary Shares will when issued be valid and fully paid and nonassessable.

 

		7.4.4.	Instructions. From time to time, the Company may provide the Warrant Agent with instructions concerning
the services performed by the Warrant Agent hereunder. In addition, at any time the Warrant Agent may apply to any officer of the Company
for instruction, and may consult with legal counsel for the Warrant Agent or the Company with respect to any matter arising in connection
with the services to be performed by the Warrant Agent under this Warrant Agreement. Warrant Agent and its agents and subcontractors shall
not be liable and shall be indemnified by the Company for any action taken, suffered or omitted to be taken by Warrant Agent in reliance
upon any Company instructions or upon the advice or opinion of such counsel. Warrant Agent shall not be held to have notice of any change
of authority of any Person, until receipt of written notice thereof from Company.

 

		7.4.5.	Rights and Duties of Warrant Agent.

 

(a) The Warrant Agent may consult with
legal counsel (who may be legal counsel for the Company), and the advice or opinion of such counsel shall be full and complete authorization
and protection to the Warrant Agent as to any action taken, suffered or omitted by it in accordance with such advice or opinion.

 

(b) The Warrant Agent shall not be
liable for or by reason of any of the statements of fact or recitals contained in this Warrant Agreement or in the Warrant Certificates
(except its countersignature thereof) or be required to verify the same, and all such statements and recitals are and shall be deemed
to have been made by the Company only.

 

(c) The Warrant Agent shall not be
required to take notice or be deemed to have notice of any event or condition hereunder, including any event or condition that may require
action by the Warrant Agent, unless the Warrant Agent shall be specifically notified in writing of such event or condition by the Company,
and all notices or other instruments required by this Warrant Agreement to be delivered to the Warrant Agent must, in order to be effective,
be received by the Warrant Agent as specified in Section 8.2, and in the absence of such notice so delivered, the Warrant Agent
may conclusively assume no such event or condition exists.

 

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(d) The Warrant Agent and any stockholder,
director, officer or employee of the Warrant Agent may buy, sell or deal in any of the Warrants or other securities of the Company or
become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company
or otherwise act as fully and freely as though it were not Warrant Agent under this Warrant Agreement. Nothing herein shall preclude the
Warrant Agent from acting in any other capacity for the Company or for any other legal entity.

 

(e) The Warrant Agent may execute and
exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorney or
agents, and the Warrant Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorney
or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith
or willful misconduct (each as determined by a final, non-appealable judgment of a court of competent jurisdiction) in the selection and
continued employment thereof.

 

(f) The Warrant Agent may rely on and
shall be held harmless and protected and shall incur no liability for or in respect of any action taken, suffered or omitted to be taken
by it in reliance upon any certificate, statement, instrument, opinion, notice, letter, facsimile transmission or other document, or any
security delivered to it, and believed by it to be genuine and to have been made or signed by the proper party or parties, or upon any
written or oral instructions or statements from the Company with respect to any matter relating to its acting as Warrant Agent hereunder

 

(g) The Warrant Agent shall not be
obligated to expend or risk its own funds or to take any action that it believes would expose or subject it to expense or liability or
to a risk of incurring expense or liability, unless it has been furnished with assurances of repayment or indemnity satisfactory to it.

 

(h) The Warrant Agent shall not be
liable or responsible for any failure of the Company to comply with any of its obligations relating to any registration statement filed
with the SEC or this Warrant Agreement, including without limitation obligations under applicable regulation or law.

 

(i) The Warrant Agent shall not be
accountable or under any duty or responsibility for the use by the Company of any Warrants authenticated by the Warrant Agent and delivered
by it to the Company pursuant to this Warrant Agreement or for the application by the Company of the proceeds of the issue and sale, or
exercise, of the Warrants.

 

(j) The Warrant Agent shall act hereunder
solely as agent for the Company, and its duties shall be determined solely by the express provisions hereof (and no duties or obligations
shall be inferred or implied). The Warrant Agent shall not assume any obligations or relationship of agency or trust with any of the owners
or holders of the Warrants.

 

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(k) The Warrant Agent may rely on and
be fully authorized and protected in acting or failing to act upon (a) any guaranty of signature by an “eligible guarantor institution”
that is a member or participant in the Securities Transfer Agents Medallion Program or other comparable “signature guarantee program”
or insurance program in addition to, or in substitution for, the foregoing; or (b) any law, act, regulation or any interpretation of the
same even though such law, act, or regulation may thereafter have been altered, changed, amended or repealed.

 

(l) In the event the Warrant Agent
believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction, request or other communication, paper
or document received by the Warrant Agent hereunder, the Warrant Agent, may, in its sole discretion, refrain from taking any action, and
shall be fully protected and shall not be liable in any way to Company, the holder of any Warrant Certificate or Book-Entry Warrant Certificate
or any other Person for refraining from taking such action, unless the Warrant Agent receives written instructions signed by the Company
which eliminates such ambiguity or uncertainty to the satisfaction of Warrant Agent.

 

(m) Notwithstanding anything contained
herein to the contrary, the Warrant Agent’s aggregate liability during any term of this Warrant Agreement with respect to, arising
from, or arising in connection with this Warrant Agreement, or from all services provided or omitted to be provided under this Warrant
Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the amounts paid hereunder by the Company
to the Warrant Agent as fees and charges, but not including reimbursable expenses, during the twelve (12) months immediately preceding
the event for which recovery from the Warrant Agent is being sought. Neither party to this Warrant Agreement shall be liable to the other
party for any consequential, indirect, special, punitive or incidental damages under any provisions of this Warrant Agreement or for any
consequential, indirect, punitive, special or incidental damages arising out of any act or failure to act hereunder even if that party
has been advised of or has foreseen the possibility or likelihood of such damages.

 

		7.5.	Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Warrant Agreement
and agrees to perform the same upon the express terms and conditions herein set forth and, among other things, shall account promptly
to the Company with respect to Warrants exercised and concurrently account for, and forward to the Company all moneys received for warrant
exercises in a given month by the 5th Business Day of the following month by wire transfer to an account designated by the Company.

 

		7.6.	Survival. The Warrant Agent’s indemnities, immunities and protections provided by this Section
7 shall survive the resignation or discharge of the Warrant Agent or the termination of this Warrant Agreement.

 

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		8.	Miscellaneous Provisions.

 

		8.1.	Successors. All the covenants and provisions of this Warrant Agreement by or for the benefit of
the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors and assigns.

 

		8.2.	Notices. Any notice, statement or demand authorized by this Warrant Agreement to be given or made
by the Warrant Agent or by the Registered Holder of any Warrant to or on the Company shall be delivered by hand or sent by registered
or certified mail or overnight courier service, addressed (until another address is filed in writing by the Company with the Warrant Agent)
as follows:

 

FGI Industries Ltd.

906 Murray Road

East Hanover, NJ 07869

Attention: Chief Executive Officer

 

Any notice, statement or demand authorized
by this Warrant Agreement to be given or made by the Registered Holder of any Warrant or by the Company to or on the Warrant Agent shall
be delivered by hand or sent by registered or certified mail or overnight courier service, addressed (until another address is filed in
writing by the Warrant Agent with the Company), as follows:

 

Continental Stock Transfer & Trust Company

1 State Street, 30 FL

New York, New York 10004

Attn:   Compliance Department

 

Any notice, sent by the Warrant Agent
pursuant to this Warrant Agreement shall be effective when sent. Any other notice, sent pursuant to this Warrant Agreement shall be effective,
if delivered by hand, upon receipt thereof by the party to whom it is addressed, if sent by overnight courier, on the next Business Day
of the delivery to the courier, and if sent by registered or certified mail on the third day after registration or certification thereof.

 

		8.3.	Applicable Law. The validity, interpretation, and performance of this Warrant Agreement and of
the Warrants shall be governed in all respects by the laws of the State of New York, without giving effect to conflict of laws. The Company
and the Warrant Agent hereby agree that any action, proceeding or claim against either of them arising out of or relating in any way to
this Warrant Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the
Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company and the
Warrant Agent hereby waive any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such
process or summons to be served upon the Company or the Warrant Agent may be served by transmitting a copy thereof by registered or certified
mail, return receipt requested, postage prepaid, addressed
to it at the address set forth in Section 8.2. Such mailing shall be deemed personal service and shall be legal and binding upon
the Company and the Warrant Agent in any action, proceeding or claim.

 

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		8.4.	Persons Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed
and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any
Person other than the parties hereto and the Registered Holders of the Warrants and, for the purposes of Sections 6.4, 8.2
and 8.8, any underwriter of the Public Offering, any right, remedy, or claim under or by reason of this Warrant Agreement or of
any covenant, condition, stipulation, promise, or agreement hereof. The underwriters of the Public Offering shall be deemed to be a third-party
beneficiary of this Warrant Agreement with respect to Sections 6.4, 8.2 and 8.8. All covenants, conditions, stipulations,
promises, and agreements contained in this Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto (and the
underwriters of the Public Offering with respect to the Sections 6.4, 8.2 and 8.8) and its successors and assigns
and of the Registered Holders of the Warrants.

 

		8.5.	Examination of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all
reasonable times at the office of the Warrant Agent for inspection by the Registered Holder of any Warrant. The Warrant Agent may require
any such Registered Holder to submit his, her or its Warrant for inspection.

 

		8.6.	Counterparts; Facsimile Signatures. This Warrant Agreement may be executed in any number of counterparts,
and each of such counterparts shall, for all purposes, be deemed to be an original, and all such counterparts shall together constitute
one and the same instrument. Facsimile or electronic signatures shall constitute original signatures for all purposes of this Warrant
Agreement and shall have the same authority, effect and enforceability as an original signature.

 

		8.7.	Effect of Headings. The section headings herein are for convenience only and are not part of this
Warrant Agreement and shall not affect the interpretation thereof

 

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		8.8.	Amendments. This Warrant Agreement and any Warrant certificate may be amended by the parties hereto
by executing a supplemental warrant agreement (a “Supplemental Agreement”), without the consent of any of the Warrant
Holders, for the purpose of (i) curing any ambiguity, or curing, correcting or supplementing any defective provision contained herein,
or making any other provisions with respect to matters or questions arising under this Warrant Agreement that is not inconsistent with
the provisions of this Warrant Agreement or the Warrant certificates, (ii) evidencing the succession of another entity to the Company
and the assumption by any such successor of the covenants of the Company contained in this Warrant Agreement and the Warrants, (iii) evidencing
and providing for the acceptance of appointment by a successor Warrant Agent with respect to the Warrants, (iv) adding to the covenants
of the Company for the benefit of the Registered Holders or surrendering any right or power conferred upon the Company under this Warrant
Agreement, or (v) amending this Warrant Agreement and the Warrants in any manner that the Company
may deem to be necessary or desirable and that will not adversely affect the interests of the Registered Holders in any material respect.
All other modifications or amendments, including any amendment to increase the Warrant Price or shorten the Exercise Period, shall require
the written consent of the Registered Holders representing at least of 50.1% of the Warrant Shares issuable under the Warrants then outstanding.
Notwithstanding the foregoing, the Company may lower the Warrant Price or extend the duration of the Exercise Period in accordance with
Sections 3.1 and 3.2, respectively, without such consent. As a condition precedent to the Warrant Agent’s execution
of any amendment, the Company shall deliver to the Warrant Agent a certificate from a duly authorized officer of the Company that states
that the proposed amendment is in compliance with the terms of this Section 8.8.

 

		8.9.	Severability. This Warrant Agreement shall be deemed severable, and the invalidity or unenforceability
of any term or provision hereof shall not affect the validity or enforceability of this Warrant Agreement or of any other term or provision
hereof; provided, however, that if any such excluded term or provision shall adversely affect the rights,
immunities, liabilities, duties or obligations of the Warrant Agent, the Warrant Agent shall be entitled to resign immediately upon written
notice to the Company. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there
shall be added as a part of this Warrant Agreement a provision as similar in terms to such invalid or unenforceable provision as may be
possible and be valid and enforceable.

 

		8.10.	Business Day. For purposes of this Warrant Agreement, a “Business Day” is any
day other than a Saturday, Sunday or a day on which commercial banks in The City of New York are authorized or required by law to remain
closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required
by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” or any
other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so
long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are
open for use by customers on such day.

 

		8.11.	Bank Accounts. All funds received by the Warrant Agent under this Warrant Agreement that are to
be distributed or applied by the Warrant Agent in the performance of its services hereunder (the “Funds”) shall be
held by the Warrant Agent as agent for the Company and deposited in one or more bank accounts to be maintained by Warrant Agent in its
name as agent for the Company. Until paid pursuant to the terms of this Warrant Agreement, the Warrant Agent will hold the Funds through
such accounts in: deposit accounts of commercial banks with Tier 1 capital exceeding $1 billion or with an average rating above investment
grade by S&P (LT Local Issuer Credit Rating), Moody’s (Long Term Rating) and Fitch Ratings, Inc. (LT Issuer Default Rating)
(each as reported by Bloomberg Finance L.P.). The Warrant Agent shall have no responsibility or liability for any diminution of the Funds
that may result from any deposit made by the Warrant Agent in accordance with this paragraph, including any losses resulting from a default
by any bank, financial institution or other third party. The Warrant Agent may from time to time receive interest,
dividends or other earnings in connection with such deposits. The Warrant Agent shall not be obligated to pay such interest, dividends
or earnings to the Company, any holder of Warrants or any other party.

 

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		8.12.	Force Majeure. Notwithstanding anything to the contrary contained herein, the Warrant Agent will
not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation,
acts of God, pandemics, epidemics, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer
facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties,
war, or civil unrest.

 

		8.13.	Entire Agreement. This Agreement contains the entire agreement and understanding among the parties
hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements
and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms
hereof control and supersede any provision in the Warrant Certificate concerning the duties, obligations and immunities of the Warrant
Agent.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, this Warrant Agreement has
been duly executed by the patties hereto as of the day and year first above written.

 

	 	
    FGI INDUSTRIES LTD.

	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	
    CONTINENTAL STOCK TRANSFER & TRUST COMPANY

	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature Page to Warrant
Agent Agreement]

 

     

     

    

 

Exhibit A

Form of Warrant

 

(See attached.)

 

     

     

    

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

FGI Industries Ltd.

Warrant to Purchase Ordinary Shares

 
	Warrant No.:   [__]	Warrant CUSIP:    [__]

Number of Shares:   [__]

 

Date of Issuance: January [__], 2022 (“Issuance
Date”)

NOT EXERCISABLE AFTER JANUARY [__], 2027

 

FGI INDUSTRIES LTD., a Cayman
Islands exempted company (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Cede & Co., the registered holder hereof
or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company,
at the Exercise Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Ordinary Shares (including any Warrants
to Purchase Ordinary Shares issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times
on or after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), [__] (subject to adjustment
as provided herein) fully paid and non-assessable Ordinary Shares (as defined below) (the “Warrant Shares”). Except
as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 16. This Warrant is
a global certificate evidencing Warrants to Purchase Ordinary Shares (the “Registered Warrants”) issued pursuant to
that certain Underwriting Agreement, dated as of January [__], 2022 (the “Applicable Date”), by and among the Company
and the underwriter(s) referred to therein, as amended from time to time (the “Underwriting Agreement”) and (ii) the
Company’s Registration Statement on Form S-1 (File No. 333- 259457) (the “Registration Statement”).

 

     

     

    

 

1.             
EXERCISE OF WARRANT.

 

(a)         Mechanics
of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section
1(f)), this Warrant may be exercised by the Holder on any day on or after January [__], 2022 (an “Exercise
Date”), in whole or in part, by delivery (whether via facsimile, electronic mail or otherwise) of a written notice, (i) in
the form attached hereto as Exhibit A or (ii) via an electronic warrant exercise through the DTC system (the
“Exercise Notice”), of the Holder’s election to exercise this Warrant. Within one (1) Trading Day following
an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price
in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the
“Aggregate Exercise Price”) in cash or via wire transfer of immediately available funds if the Holder did not
notify the Company in such Exercise Notice that such exercise was made pursuant to a Registration Failure Cashless Exercise (as
defined in Section 1(d)). The Holder shall not be required to deliver the original of this Warrant in order to effect an
exercise hereunder, nor shall any ink-original signature or medallion guarantee (or other type of guarantee or notarization) with
respect to any Exercise Notice be required. Execution and delivery of an Exercise Notice with respect to less than all of the
Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing
the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the
then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the
Warrant Shares in accordance with the terms hereof. On or before the first (1st) Trading Day following the date on which
the Holder has delivered an Exercise Notice, the Company shall transmit by facsimile or electronic mail an acknowledgment of
confirmation of receipt of such Exercise Notice, in the form attached hereto as Exhibit B, to the Holder and the
Company’s transfer agent (the “Transfer Agent”), which confirmation shall constitute an instruction to the
Transfer Agent to process such Exercise Notice in accordance with the terms herein. No later than 5:00 P.M., Eastern Time, on the
second (2nd) Trading Day following the date on which the Exercise Notice has been delivered to the Company (or such earlier date as
required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade of such Warrant Shares
initiated on the applicable Exercise Date), the Company shall (i) provided that the Transfer Agent is participating in The
Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Holder,
credit such aggregate number of Ordinary Shares to which the Holder is entitled pursuant to such exercise to the Holder’s or
its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system, or (ii) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program, upon the request of the Holder, issue and deliver (via
reputable overnight courier) to the address as specified in the Exercise Notice, a certificate, registered in the name of the Holder
or its designee, for the number of Ordinary Shares to which the Holder shall be entitled pursuant to such exercise. Upon delivery of
an Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the
Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this
Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares
represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise and
upon surrender of this Warrant to the Company by the Holder, then, at the request of the Holder, the Company shall as soon as
practicable and in no event later than two (2) Business Days after any exercise and at its own expense, issue and deliver to the
Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of
Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to
which this Warrant is exercised. No fractional Ordinary Shares are to be issued upon the exercise of this Warrant, but rather any
fractional shares will be disregarded and an amount in cash equal to the fractional amount multiplied by the Exercise Price will be
paid to the Holder. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company,
and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder;
provided, however, that in the event Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when
surrendered for exercise shall be accompanied by an assignment form duly executed by the Holder and the Company may require, as a
condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay
all Transfer Agent fees required for same-day processing of any Election to Purchase and all fees to the Depository Trust Company
(or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant
Shares. Notwithstanding the foregoing, the Company shall deliver Warrant Shares to the Holder on or prior to the earlier of (A) two
(2) Trading Days after receipt of the applicable Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other
applicable law, rule or regulation for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date)
and (B) one (1) Trading Day after the Company’s receipt of the Aggregate Exercise Price (or valid notice of a Registration
Failure Cashless Exercise) (such later date, the “Share Delivery Date”). From the Issuance Date through and
including the Expiration Date, the Company shall maintain a transfer agent that participates in the DTC’s Fast Automated
Securities Transfer Program.

 

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(b)        
Exercise Price. For purposes of this Warrant, “Exercise Price” means $[__] per Warrant Share, subject
to adjustment as provided herein.

 

(c)         Company’s
Failure to Timely Deliver Securities. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to
an Election to Purchase by the Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a
penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the closing price of the Ordinary Shares on the date
of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Share Delivery Date until such Warrant Shares are delivered or
Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as
this Warrant remains outstanding and exercisable. In addition to any other rights available to the Holder, if the Company fails to
cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 1(a) above
pursuant to an exercise on or before the Exercise Date, and if after such date the Holder is required by its broker to purchase (in
an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, Ordinary Shares to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the Ordinary Shares so purchased exceeds (y) the
amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection
with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B)
at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such
exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of Ordinary
Shares that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For
example, if the Holder purchases Ordinary Shares having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted exercise of Ordinary Shares with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause
(A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the
Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect
to the Company’s failure to timely deliver Ordinary Shares upon exercise of the Warrant as required pursuant to the terms
hereof.

 

    3

     

    

 

(d)        
Registration Failure Cashless Exercise. Notwithstanding anything contained herein to the contrary (other than Section
1(f) below), if at the time of exercise hereof the Registration Statement is not effective (or the prospectus contained therein is
not available for use) for the issuance of all of the Warrant Shares, then the Holder may, in its sole discretion, exercise this Warrant
in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment
of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of Warrant Shares determined
according to the following formula (a “Registration Failure Cashless Exercise”):

 

(A – B) (X) divided by (A), where:

 

	A=	
    the last VWAP immediately preceding the date of
    exercise giving rise to the applicable “cashless exercise”, as set forth in the applicable Exercise Notice (to clarify, the
    “last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised
    at a time that the principal trading market for the Ordinary Shares is open, the prior Trading Day’s VWAP shall be used in this
    calculation);

     

	B =	
    the Exercise Price then in effect for the applicable
    Warrant Shares at the time of such exercise; and

     

	X =	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a Registration Failure Cashless Exercise.

 

If the Warrant Shares are issued in a Registration
Failure Cashless Exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the 1933 Act, the Warrant Shares
take on the registered characteristics of the Warrants being exercised. For purposes of Rule 144(d) promulgated under the 1933 Act, as
in effect on the Applicable Date, it is intended that the Warrant Shares issued in a Registration Failure Cashless Exercise shall be deemed
to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this
Warrant was originally issued pursuant to the Underwriting Agreement. The Company agrees to not take any position contrary to this Section
1(d).

 

    4

     

    

 

(e)        
 Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number
of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares
that are not disputed and resolve such dispute in accordance with Section 13.

 

(f)          Limitations
on Exercises. The Company shall not effect the exercise of any portion of this Warrant, and the Holder shall not have the right
to exercise any portion of this Warrant, pursuant to the terms and conditions of this Warrant and any such exercise shall be null
and void and treated as if never made, to the extent that after giving effect to such exercise, the Holder together with the other
Attribution Parties collectively would beneficially own in excess of 4.99% (or, upon election by a Holder prior to the issuance of
any Warrants, 9.99%) (the “Maximum Percentage”) of the Ordinary Shares outstanding immediately after giving
effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Ordinary Shares beneficially owned by the
Holder and the other Attribution Parties shall include the number of Ordinary Shares held by the Holder and all other Attribution
Parties plus the number of Ordinary Shares issuable upon exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude Ordinary Shares which would be issuable upon (A) exercise of the remaining, unexercised
portion of this Warrant beneficially owned by the Holder or any of the other Attribution Parties and (B) exercise or conversion of
the unexercised or unconverted portion of any other securities of the Company (including, without limitation, any convertible notes
or convertible preferred stock or warrants, including other Registered Warrants) beneficially owned by the Holder or any other
Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained in this Section
1(f). For purposes of this Section 1(f), beneficial ownership shall be calculated in accordance with Section 13(d) of the
1934 Act. For purposes of determining the number of outstanding Ordinary Shares the Holder may acquire upon the exercise of this
Warrant without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding Ordinary Shares as reflected in
(x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written notice
by the Company or the Transfer Agent, if any, setting forth the number of Ordinary Shares outstanding (the “Reported
Outstanding Share Number”). If the Company receives an Exercise Notice from the Holder at a time when the actual number of
outstanding Ordinary Shares is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing
of the number of Ordinary Shares then outstanding and, to the extent that such Exercise Notice would otherwise cause the
Holder’s beneficial ownership, as determined pursuant to this Section 1(f), to exceed the Maximum Percentage, the
Holder must notify the Company of a reduced number of Warrant Shares to be acquired pursuant to such Exercise Notice (the number of
shares by which such purchase is reduced, the “Reduction Shares”) and (ii) as soon as reasonably practicable, the
Company shall return to the Holder any exercise price paid by the Holder for the Reduction Shares. For any reason at any time, upon
the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by
electronic mail to the Holder the number of Ordinary Shares then outstanding. In any case, the number of outstanding Ordinary Shares
shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the
Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the event
that the issuance of Ordinary Shares to the Holder upon exercise of this Warrant results in the Holder and the other Attribution
Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding Ordinary
Shares (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which the Holder’s and the other
Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”)
shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the
Excess Shares. As soon as reasonably practicable after the issuance of the Excess Shares has been deemed null and void, the Company
shall return to the Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery of a written notice to the
Company, the Holder may from time to time increase (with such increase not effective until the sixty-first (61st) day
after delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in
such notice; provided that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first
(61st) day after such notice is delivered to the Company and (ii) any such increase or decrease will apply only to the
Holder and the other Attribution Parties and not to any other holder of Registered Warrants that is not an Attribution Party of the
Holder. For purposes of clarity, the Ordinary Shares issuable pursuant to the terms of this Warrant in excess of the Maximum
Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or
Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant pursuant to this paragraph shall have any effect on
the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability. The provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
1(f) to the extent necessary to correct this paragraph or any portion of this paragraph which may be defective or inconsistent
with the intended beneficial ownership limitation contained in this Section 1(f) or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived and shall
apply to a successor holder of this Warrant.

 

    5

     

    

 

2.            
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price
and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section
2.

 

(a)         
Stock Dividends and Splits. Without limiting any provision of Section 4, if the Company, at any time on or after
the Issuance Date, (i) pays a stock dividend on one or more classes of its then outstanding Ordinary Shares or otherwise makes a distribution
on any class of capital stock that is payable in Ordinary Shares, (ii) subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its then outstanding Ordinary Shares into a larger number of shares or (iii) combines (by combination,
reverse stock split or otherwise) one or more classes of its then outstanding Ordinary Shares into a smaller number of shares, then in
each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of Ordinary Shares outstanding
immediately before such event and of which the denominator shall be the number of Ordinary Shares outstanding immediately after such event.
Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of
this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

    6

     

    

 

(b)        
Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 2, the
number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that
after such adjustment the Aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the
Aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

 

(c)        
Other Events. In the event that the Company (or any Subsidiary (as defined in the Underwriting Agreement)) shall take any
action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution
or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features),
then the Company’s board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price
and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant
to this Section 2(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant
to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests
hereunder against such dilution, then the Company’s board of directors and the Holder shall agree, in good faith, upon an independent
investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding
absent manifest error and whose fees and expenses shall be borne by the Company.

 

(d)        
Calculations. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest
1/100th of a share, as applicable. The number of Ordinary Shares outstanding at any given time shall not include shares owned
or held by or for the account of the Company, and the disposition of any such shares shall be considered an issuance or sale of Ordinary
Shares.

 

(e)         
Voluntary Adjustment By Company. The Company may at any time during the term of this Warrant, subject to any required prior
consent of the Principal Market (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations or other similar
transactions), with the prior written consent of the holders of a majority of the Registered Warrants then outstanding, reduce the then
current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company.

 

    7

     

    

 

3.             Rights
upon distribution of assets. In addition to any adjustments pursuant to Section 2 above, if the Company shall
declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares, by
way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property,
options, evidence of indebtedness or any other assets by way of a dividend, spin off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this
Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the
Holder would have participated therein if the Holder had held the number of Ordinary Shares acquirable upon complete exercise of
this Warrant (without regard to any limitations or restrictions on exercise of this Warrant, including without limitation, the
Maximum Percentage) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken,
the date as of which the record holders of Ordinary Shares are to be determined for the participation in such Distribution (provided, however,
that to the extent that the Holder’s right to participate in any such Distribution would result in the Holder and the other
Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to
the extent of the Maximum Percentage (and shall not be entitled to beneficial ownership of such Ordinary Shares as a result of such
Distribution (and beneficial ownership) to the extent of any such excess) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time or times, if ever, as its right thereto would not result in the Holder and
the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution
(and any Distributions declared or made on such initial Distribution or on any subsequent Distribution held similarly in abeyance)
to the same extent as if there had been no such limitation).

 

4.            
PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)        
Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues
or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of Ordinary Shares (the “Purchase Rights”), then the Holder will be entitled to acquire, upon
the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held
the number of Ordinary Shares acquirable upon complete exercise of this Warrant (without regard to any limitations or restrictions on
exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before the date on which a record is taken
for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Ordinary
Shares are to be determined for the grant, issuance or sale of such Purchase Rights (provided, however, that to the extent
that the Holder’s right to participate in any such Purchase Right would result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to the extent of the Maximum Percentage
(and shall not be entitled to beneficial ownership of such Ordinary Shares as a result of such Purchase Right (and beneficial ownership)
to the extent of any such excess) and such Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until
such time or times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such initial
Purchase Right or on any subsequent Purchase Right held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    8

     

    

 

(a)         Fundamental
Transactions. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or
indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of
its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares are permitted to sell, tender
or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Ordinary Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any
reclassification, reorganization or recapitalization of the Ordinary Shares or any compulsory share exchange pursuant to which the
Ordinary Shares are effectively converted into or exchanged for other securities, cash or property (and if converted or exchanged
for other voting securities of the Company or another entity, Persons who are not holders of Ordinary Shares prior to the conversion
or exchange hold at least 50% of the voting securities of the successor or acquiring corporation or of the Company, if it is the
surviving corporation following the conversion or exchange) or (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by the other
Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or
share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any
subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been
issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder
(without regard to any limitation in Section 1(f) on the exercise of this Warrant), the number of Ordinary Shares or shares
of common stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional
consideration receivable as a result of such Fundamental Transaction by a holder of the number of Ordinary Shares for which this
Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 1(f) on
the exercise of this Warrant) (together, the “Alternate Consideration”). For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one Ordinary Share in such Fundamental Transaction, and the Company shall apportion
the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Ordinary Shares are given any choice as to the securities, cash or property
to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental Transaction. If the Holder does not elect to receive the
Alternate Consideration, the Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant
in accordance with the provisions of this Section 4(a) pursuant to written agreements prior to such Fundamental Transaction
and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a
corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the Ordinary Shares
acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to
such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock
(but taking into account the relative value of the Ordinary Shares pursuant to such Fundamental Transaction and the value of such
shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the
economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence of any
such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this
Warrant with the same effect as if such Successor Entity had been named as the Company herein. For the avoidance of doubt, if, at
any time while this Warrant is outstanding, a Fundamental Transaction occurs, pursuant to the terms of this Section 4(a), the
Holder shall not be entitled to receive more than one of (i) the Alternate Consideration, or (ii) the assumption by the Successor
Entity of all of the obligations of the Company under this Warrant and the option to receive a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to this Warrant.

 

    9

     

    

 

(b)        
Application. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions
and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations
on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit of the Maximum Percentage,
applied however with respect to shares of capital stock registered under the 1934 Act and thereafter receivable upon exercise of this
Warrant (or any such other warrant)).

 

5.           
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company
will not, by amendment of its certificate of incorporation, bylaws or other organizational documents or through any reorganization, transfer
of assets, consolidation, merger, scheme of arrangement, dissolution, issuance or sale of securities, or any other voluntary action, avoid
or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all
the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality
of the foregoing, the Company (a) shall not increase the par value of any Ordinary Shares receivable upon the exercise of this Warrant
above the Exercise Price then in effect, and (b) shall take all such actions as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and non-assessable Ordinary Shares upon the exercise of this Warrant. Notwithstanding anything
herein to the contrary, if after the sixty (60) calendar day anniversary of the Issuance Date, the Holder is not permitted to exercise
this Warrant in full for any reason (other than pursuant to restrictions set forth in Section 1(f) hereof), the Company shall use
its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals as necessary to
permit such exercise into Ordinary Shares.

 

6.             WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in its capacity as
a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company
for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the
Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder
of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in
this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant
or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the
Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other
information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

    10

     

    

 

 

7.                 
REISSUANCE OF WARRANTS.

 

(a)              
Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon
the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered
as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less
than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b)              
Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below
shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the
Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company
shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the
Warrant Shares then underlying this Warrant.

 

(c)              
Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right
to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase
such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no
warrants for fractional Ordinary Shares shall be given.

 

(d)              
Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the
right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section
7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of Ordinary Shares underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant),
(iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall
have the same rights and conditions as this Warrant.

 

    11

     

    

 

 

8.                 
NOTICES. (a) General.
Whenever notice is required to be given under this Warrant, including, without limitation, an Exercise Notice, unless otherwise provided
herein, such notice shall be given in writing, (i) if delivered (a) from within the domestic United States, by first-class registered
or certified airmail, or nationally recognized overnight express courier, postage prepaid, electronic mail or by facsimile or (b) from
outside the United States, by International Federal Express, electronic mail or facsimile, and (ii) will be deemed given (A) if delivered
by first-class registered or certified mail domestic, three (3) Business Days after so mailed, (B) if delivered by nationally recognized
overnight carrier, one (1) Business Day after so mailed, (C) if delivered by International Federal Express, two (2) Business Days after
so mailed and (D) if delivered by electronic mail, when sent (provided that such sent email is kept on file (whether electronically or
otherwise) by the sending party and the sending party does not promptly receive an automatically generated message from the recipient’s
email server that such e-mail could not be delivered to such recipient) and (E) if delivered by facsimile, upon electronic confirmation
of receipt of such facsimile, and will be delivered and addressed as follows:

 

	 	(i)	if to the Company, to:

                                                                           

                                                                          FGI Industries Ltd.

                                                                          906 Murray Road

                                                                          East
Hanover, NJ 07869

                                                                          Attention: John Chen

 

		(ii)	if to the Holder, at such address or other contact information delivered by the Holder to Company or as
is on the books and records of the Company.

 

(b)              
Required Notices. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this
Warrant (other than the issuance of Ordinary Shares upon exercise in accordance with the terms hereof), including in reasonable detail
a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written
notice to the Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable
detail, and certifying, the calculation of such adjustment(s), (ii) at least ten Trading Days prior to the date on which the Company closes
its books or takes a record (A) with respect to any dividend or distribution upon the Ordinary Shares, (B) with respect to any grants,
issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders
of Ordinary Shares or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided
in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the
Holder, and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction. To the extent that any notice
provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its Subsidiaries, the Company
shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that
the time of execution specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the
Company.

 

9.                 
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions
of this Warrant (other than Section 1(f)) may be amended and the Company may take any action herein prohibited, or omit to perform
any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be
effective unless it is in writing and signed by an authorized representative of the waiving party.

 

    12

     

    

 

10.             
 SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise
determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid
or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or
unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as
so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and
the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties.
The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

11.             
GOVERNING LAW.

 

This Warrant shall be governed
by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance
of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of New York. The Company hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy thereof to the Company at its principal executive office
and agrees that such service shall constitute good and sufficient service of process and notice thereof. The Company hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding
is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing
contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company
in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral or any other security
for such obligations, or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

12.             
CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted
by the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for
convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.

 

    13

     

    

 

13.              REMEDIES,
CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be
cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific
performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual and
consequential damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants to the Holder
that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or
provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be
received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the
performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such
breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to specific
performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent
jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security. The
Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to
confirm the Company’s compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section
2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be
made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company
shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any
certificate in a name other than the Holder or its agent on its behalf.

 

14.             
PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Warrant is
placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the holder
otherwise takes action to collect amounts due under this Warrant or to enforce the provisions of this Warrant or (b) there occurs any
bankruptcy, reorganization, receivership of the company or other proceedings affecting company creditors’ rights and involving a
claim under this Warrant, then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action or in
connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys’ fees
and disbursements.

 

15.             
TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned
without the consent of the Company.

 

16.             
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall
have the following meanings:

 

(a)              
“1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

(b)              
“1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

    14

     

    

 

(c)              
 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled
by, or is under common control with, such Person, it being understood for purposes of this definition that “control” of a
Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of
directors of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(d)              
“Attribution Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including,
any funds, feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or
advised by the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the
Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any
of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Ordinary Shares would or could be aggregated
with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of the
foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

(e)              
“Bloomberg” means Bloomberg, L.P.

 

(f)               
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City
of New York are authorized or required by law to remain closed.

 

(g)              
“Ordinary Shares” means (i) the Company’s ordinary shares, $0.0001 par value per share, and (ii) any capital
stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such ordinary shares.

 

(h)              
“Convertible Securities” means any stock or other security (other than Options) that is at any time and under
any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof
to acquire, any Ordinary Shares.

 

(i)                
“Eligible Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the
Nasdaq Global Market, the Nasdaq Capital Market or the Principal Market.

 

(j)                
“Expiration Date” means the date that is the fifth anniversary of the Issuance Date or, if such date falls on
a day other than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the
next date that is not a Holiday.

 

(k)              
“Group” means a “group” as that term is used in Section 13(d) of the 1934 Act and as defined in
Rule 13d-5 thereunder.

 

(l)                
“Options” means any rights, warrants or options to subscribe for or purchase Ordinary Shares or Convertible
Securities.

 

    15

     

    

 

(m)            
 “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person
or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental
Transaction.

 

(n)              
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(o)              
“Principal Market” means the Nasdaq Capital Market.

 

(p)              
“SEC” means the United States Securities and Exchange Commission or the successor thereto.

 

(q)              
“Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations relating
to the Ordinary Shares, any day on which the Ordinary Shares are traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Ordinary Shares, then on the principal securities exchange or securities market on which the Ordinary
Shares are then traded, provided that “Trading Day” shall not include any day on which the Ordinary Shares are scheduled to
trade on such exchange or market for less than 4.5 hours or any day that the Ordinary Shares are suspended from trading during the final
hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on
such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading
Day in writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Ordinary Shares,
any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(r)               
“VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security on
the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal securities
exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and
ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “HP” function (set to weighted average) or, if
the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic
bulletin board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time,
as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the
average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in
the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such security
on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined
by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such
dispute shall be resolved in accordance with the procedures in Section 13. All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination, recapitalization or other similar transaction during such period.

 

[signature page follows]

 

    16

     

    

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to Purchase Ordinary Shares to be duly executed as of the Issuance Date set out above.

 

	 	FGI INDUSTRIES LTD.

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature Page to Warrant to Purchase Ordinary
Shares]

 

    17

     

    

 

EXHIBIT A

 

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE
THIS

WARRANT TO PURCHASE ORDINARY SHARES

FGI INDUSTRIES LTD.

 

The undersigned holder hereby exercises the right
to purchase _________________ Ordinary Shares (“Warrant Shares”) of FGI Industries Ltd., a Cayman Islands exempted
company (the “Company”), evidenced by Warrant to Purchase Ordinary Shares No. _______ (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1. Form of Exercise Price. The Holder intends
that payment of the Aggregate Exercise Price shall be made as:

 

____________ a “Cash Exercise”
with respect to _________________ Warrant Shares; and/or

 

____________ a “Cashless Exercise”
with respect to _________________ Warrant Shares by the cancellation of such number of Warrant Shares as is necessary, in accordance with
the formula set forth in Section 1(d), to exercise this Warrant with respect to the above number of Warrant Shares purchasable pursuant
to the cashless exercise procedure set forth in Section 1(d).

 

2. Payment of Exercise Price. In the event
that the Holder has elected a Cash Exercise with respect to the Warrant Shares to be issued pursuant hereto, the Holder shall pay the
Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

 

3. Delivery of Warrant Shares. The Company
shall deliver to Holder, or its designee or agent as specified below, __________ Warrant Shares in accordance with the terms of the Warrant.
Delivery shall be made to Holder, or for its benefit, as follows:

 

[ ] Check here if requesting delivery as a certificate
to the following name and to the following address:

 

	 	Issued to:	 
	 	 	 
	 	 	 

 

[ ] Check here if requesting delivery by Deposit/Withdrawal
at Custodian as follows:

 

	 	DTC Participant:	 
	 	DTC Number:	 
	 	Account Number:	 

Date:                      
       ,

 

    18

     

    

 

	 	 
	Name of Registered
    Holder	 
	 	 
	 	 
	By:	 	 
	Name:	 
	Title:	 

 

	Tax ID:	 	 
	Facsimile:	 	 
	E-mail Address:	 	 

 

    19

     

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Exercise Notice
and hereby directs ______________ to issue the above indicated number of Ordinary Shares in accordance with the Transfer Agent Instructions
dated _________, 20__, from the Company and acknowledged and agreed to by _______________.

 

	 	FGI INDUSTRIES LTD.
	 	 
	 	By:	        
	 	Name:
	 	Title:

 

    20Exhibit 4.1

 

CARDIOL THERAPEUTICS INC

 

OMNIBUS EQUITY INCENTIVE PLAN

 

May 21, 2021

 

    	 	 	 

     

    

  

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE 1 PURPOSE	1
	 	 	 
	1.1	Purpose	1
	 	 	 
	ARTICLE 2 INTERPRETATION	1
	 	 	 
	2.1	Definitions.	1
	2.2	Interpretation	9
	 	 	 
	ARTICLE 3 ADMINISTRATION	9
	 	 	 
	3.1	Administration	9
	3.2	Delegation to Committee	10
	3.3	Determinations Binding	11
	3.4	Eligibility	11
	3.5	Plan Administrator Requirements	11
	3.6	Total Shares Subject to Awards	11
	3.7	Limits on Grants of Awards	12
	3.8	Award Agreements	12
	3.9	Non–transferability of Awards	12
	 	 	 
	ARTICLE 4 OPTIONS	13
	 	 	 
	4.1	Granting of Options	13
	4.2	Exercise Price.	13
	4.3	Term of Options	13
	4.4	Vesting and Exercisability	13
	4.5	Payment of Exercise Price	14
	 	 	 
	ARTICLE 5 RESTRICTED SHARE UNITS	15
	 	 	 
	5.1	Granting of RSUs	15
	5.2	RSU Account	15
	5.3	Vesting of RSUs	15
	5.4	Settlement of RSUs	15
	 	 	 
	ARTICLE 6 PERFORMANCE SHARE UNITS	16
	 	 	 
	6.1	Granting of PSUs	16
	6.2	Terms of PSUs	16
	6.3	Performance Goals	16
	6.4	PSU Account	17

 

     

     

    

 

	TABLE OF CONTENTS
	 	 	 
	(Continued)
	 	 	 
	6.5	Vesting of PSUs	17
	6.6	Settlement of PSUs	17
	 	 	 
	ARTICLE 7 DEFERRED SHARE UNITS	18
	 	 	 
	7.1	Granting of DSUs	18
	7.2	DSU Account	19
	7.3	Vesting of DSUs	19
	7.4	Settlement of DSUs	19
	7.5	No Additional Amount or Benefit	20
	 	 	 
	ARTICLE 8 SHARE-BASED AWARDS	20
	 	 	 
	8.1	Share-Based Awards	20
	 	 	 
	ARTICLE 9 ADDITIONAL AWARD TERMS	20
	 	 	 
	9.1	Dividend Equivalents	20
	9.2	Black–out Period	21
	9.3	Withholding Taxes	21
	9.4	Recoupment	21
	 	 	 
	ARTICLE 10 TERMINATION OF EMPLOYMENT OR SERVICES	22
	 	 	 
	10.1	Termination of Employee, Consultant or Director	22
	10.2	Discretion to Permit Acceleration	25
	 	 	 
	ARTICLE 11 EVENTS AFFECTING THE CORPORATION	25
	 	 	 
	11.1	General	25
	11.2	Change in Control	25
	11.3	Reorganization of Corporation’s Capital	27
	11.4	Other Events Affecting the Corporation	27
	11.5	Immediate Acceleration of Awards	27
	11.6	Issue by Corporation of Additional Shares	27
	11.7	Fractions	28
	 	 	 
	ARTICLE 12 U.S. TAXPAYERS	28
	 	 	 
	12.1	Provisions for U.S. Taxpayers	28
	12.2	ISOs.	28
	12.3	ISO Grants to 10% Shareholders	28
	12.4	$100,000 Per Year Limitation for ISOs	29
	12.5	Disqualifying Dispositions.	29
	12.6	Section 409A of the Code	29
	12.7	Section 83(b) Election	30

 

     

     

    

 

	TABLE OF CONTENTS
	 	 	 
	(Continued)
	 
	12.8	Application of Article 12 to U.S. Taxpayers	30
	 	 	 
	ARTICLE 13 AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN	30
	 	 	 
	13.1	Amendment, Suspension, or Termination of the Plan	30
	13.2	Shareholder Approval	31
	13.3	Permitted Amendments	32
	 	 	 
	ARTICLE 14 MISCELLANEOUS	32
	 	 	 
	14.1	Legal Requirement	32
	14.2	No Other Benefit	32
	14.3	Rights of Participant	33
	14.4	Corporate Action	33
	14.5	Conflict	33
	14.6	Anti–Hedging Policy	33
	14.7	Participant Information	33
	14.8	Participation in the Plan	33
	14.9	International Participants	34
	14.10	Successors and Assigns	34
	14.11	General Restrictions or Assignment	34
	14.12	Severability	34
	14.13	Notices	34
	14.14	Governing Law	35
	14.15	Submission to Jurisdiction	35
	 	 	 
	SCHEDULE A CARDIOL THERAPEUTICS INC.	36
	 	 	 
	SCHEDULE B CARDIOL THERAPEUTICS INC.	37
	 	 	 
	SCHEDULE C CARDIOL THERAPEUTICS INC.	38

 

     

     

    

 

OMNIBUS EQUITY INCENTIVE PLAN

 

ARTICLE 1

PURPOSE

 

1.1            Purpose

 

The purpose of this Plan is to provide the Corporation
with a share–related mechanism to attract, retain and motivate qualified Directors, Employees and Consultants of the Corporation
and its subsidiaries, if any, to reward such of those Directors, Employees and Consultants as may be granted Awards under this Plan by
the Board from time to time for their contributions toward the long–term goals and success of the Corporation and to enable and
encourage such Directors, Employees and Consultants to acquire Shares as long–term investments and proprietary interests in the
Corporation.

 

ARTICLE 2

INTERPRETATION

 

		2.1	Definitions

 

When used herein, unless the context otherwise
requires, the following terms have the indicated meanings, respectively:

 

“Affiliate” means any entity
that is an “affiliate” for the purposes of National Instrument 45–106

 

– Prospectus Exemptions of the Canadian
Securities Administrators, as amended from time to time;

 

“Award” means any Option, Restricted
Share Unit, Performance Share Unit, Deferred Share Unit or Share-Based Awards granted under this Plan which may be denominated or settled
in Shares, cash or in such other form as provided herein;

 

“Award Agreement” means a signed,
written agreement between a Participant and the Corporation, in the form or any one of the forms approved by the Plan Administrator, evidencing
the terms and conditions on which an Award has been granted under this Plan and which need not be identical to any other such agreements;

 

“Board” means the board of
directors of the Corporation as it may be constituted from time to time;

 

“Business Day” means a day, other than a Saturday
or Sunday, on which the principal commercial banks in the City of Toronto are open for commercial business during normal banking hours;

 

“Canadian Taxpayer” means a Participant that is
resident of Canada for purposes of the Tax Act; “Cash Fees” has the meaning set forth in Subsection 7.1(a);

 

“Cashless Exercise” has the meaning set forth in
Subsection 4.5(b);

 

     

     

    

 

“Cause” means, with respect to a particular Participant:

 

		(a)	“cause”(or any similar term) as such term is defined in the employment or other written agreement between the Corporation
or a subsidiary of the Corporation and the Employee;

 

		(b)	in the event there is no written or other applicable employment or other agreement between the Corporation or a subsidiary of the
Corporation or “cause” (or any similar term) is not defined in such agreement, “cause” as such term is defined
in the Award Agreement; or

 

		(c)	in the event neither (a) nor (b) apply, then “cause” as such term is defined by applicable law or, if not so
defined, such term shall refer to circumstances where

 

(i)            an
employer may terminate an individual’s employment without notice or pay in lieu thereof or other damages, or (ii) the Corporation
or any subsidiary thereof may terminate the Participant’s employment without notice or without pay in lieu thereof or other termination
fee or damages, or (iii) the Corporation or any subsidiary thereof may terminate the Participant’s employment without providing
the minimum entitlements to notice and, if applicable, severance pay under provincial employment standards legislation;

 

“Change in Control” means the occurrence of any
one or more of the following events:

 

		(a)	any transaction at any time and by whatever means pursuant to which any Person or any group of two (2) or more Persons acting
jointly or in concert hereafter acquires the direct or indirect “beneficial ownership” (as defined in the Securities
Act (Ontario)) of, or acquires the right to exercise Control or direction over, securities of the Corporation representing more than
50% of the then issued and outstanding voting securities of the Corporation, including, without limitation, as a result of a take–over
bid, an exchange of securities, an amalgamation of the Corporation with any other entity, an arrangement, a capital reorganization or
any other business combination or reorganization;

 

		(b)	the sale, assignment or other transfer of all or substantially all of the consolidated assets of the Corporation to a Person other
than a subsidiary of the Corporation;

 

		(c)	the dissolution or liquidation of the Corporation, other than in connection with the distribution of assets of the Corporation to
one (1) or more Persons which were Affiliates of the Corporation prior to such event;

 

		(d)	the occurrence of a transaction requiring approval of the Corporation’s shareholders whereby the Corporation is acquired through
consolidation, merger, exchange of securities, purchase of assets, amalgamation, statutory arrangement or otherwise by any other Person
(other than a short form amalgamation or exchange of securities with a subsidiary of the Corporation);

 

		(e)	individuals who comprise the Board as of the date hereof (the “Incumbent Board”) for any reason cease to constitute
at least a majority of the members of the Board,

 

    	 	- 2 -	 

     

    

 

unless the election, or nomination for
election by the Corporation’s shareholders, of any new director was approved by a vote of at least a majority of the Incumbent Board,
and in that case such new director shall be considered as a member of the Incumbent Board; or

 

		(f)	any other event which the Board determines to constitute a change in control of the Corporation;

 

provided that, notwithstanding clause (a), (b),
(c) and (d) above, a Change in Control shall be deemed not to have occurred if immediately following the transaction set forth
in clause(a), (b),

 

(c) or (d) above: (A) the holders
of securities of the Corporation that immediately prior to the consummation of such transaction represented more than 50% of the combined
voting power of the then outstanding securities eligible to vote for the election of directors of the Corporation hold

 

(x)            securities
of the entity resulting from such transaction (including, for greater certainty, the Person succeeding to assets of the Corporation in
a transaction contemplated in clause (b) above) (the “Surviving Entity”) that represent more than 50% of the combined
voting power of the then outstanding securities eligible to vote for the election of directors or trustees (“voting power”)
of the Surviving Entity, or (y) if applicable, securities of the entity that directly or indirectly has beneficial ownership of 100%
of the securities eligible to elect directors or trustees of the Surviving Entity (the “Parent Entity”) that represent
more than 50% of the combined voting power of the then outstanding securities eligible to vote for the election of directors or trustees
of the Parent Entity, and (B) no Person or group of two or more Persons, acting jointly or in concert, is the beneficial owner, directly
or indirectly, of more than 50% of the voting power of the Parent Entity (or, if there is no Parent Entity, the Surviving Entity) (any
such transaction which satisfies all of the criteria specified in clauses (A) and (B) above being referred to as a “Non–Qualifying
Transaction” and, following the Non–Qualifying Transaction, references in this definition of “Change in Control”
to the “Corporation” shall mean and refer to the Parent Entity (or, if there is no Parent Entity, the Surviving Entity)
and, if such entity is a company or a trust, references to the “Board” shall mean and refer to the board of directors
or trustees, as applicable, of such entity).

 

Notwithstanding the foregoing, for purposes of
any Award that constitutes “deferred compensation” (within the meaning of Section 409A of the Code), the payment of which
is triggered by or would be accelerated upon a Change in Control, a transaction will not be deemed a Change in Control for Awards granted
to any Participant who is a U.S. Taxpayer unless the transaction qualifies as “a change in control event” within the meaning
of Section 409A of the Code.

 

“Code” means the United States
Internal Revenue Code of 1986, as amended from time to time. Any reference to a section of the Code shall be deemed to include a reference
to any regulations promulgated thereunder;

 

“Committee” has the meaning
set forth in Section 3.2;

 

“Consultant” means any individual, entity or other Person engaged by the Corporation or any subsidiary of the Corporation to render consulting or advisory services (including as a director
or officer of any subsidiary of the Corporation), other than as an Employee or Director, and whether or not compensated for such services;
provided, however, that at the time any Consultant receives any

 

    	 	- 3 -	 

     

    

 

offer of Award or executes any Award Agreement,
such Consultant must be a Person, and must agree to provide bona fide services to that Corporation that are not in connection
with the offer or sale of securities in a capital–raising transaction, and do not directly or indirectly promote or maintain a market
for the Corporation’s securities;

 

“Control” means the relationship
whereby a Person is considered to be “controlled” by a Person if:

 

		(a)	when applied to the relationship between a Person and a corporation, the beneficial ownership by that Person, directly or indirectly,
of voting securities or other interests in such corporation entitling the holder to exercise control and direction in fact over the activities
of such corporation;

 

		(b)	when applied to the relationship between a Person and a partnership, limited partnership, trust or joint venture, means the contractual
right to direct the affairs of the partnership, limited partnership, trust or joint venture; and

 

		(c)	when applied in relation to a trust, the beneficial ownership at the relevant time of more than 50% of the property settled under
the trust, and

 

the words “Controlled by”,
 “Controlling” and similar words have corresponding meanings; provided that a Person who controls a corporation, partnership,
limited partnership or joint venture will be deemed to Control a corporation, partnership, limited partnership, trust or joint venture
which is Controlled by such Person and so on;

 

“Corporation” means Cardiol
Therapeutics Inc., or any successor entity thereof;

 

“Date of Grant” means, for
any Award, the date specified by the Plan Administrator at the time it grants the Award or if no such date is specified, the date upon
which the Award was granted;

 

“Deferred Share Unit” or “DSU”
means a unit equivalent in value to a Share, credited by means of a bookkeeping entry in the books of the Corporation in accordance with
Article 7;

 

“Director” means a director
of the Corporation who is not an Employee;

 

“Director Fees” means the total
compensation (including annual retainer and meeting fees, if any) paid by the Corporation to a Director in a calendar year for service
on the Board;

 

“Disabled” or “Disability”
means, with respect to a particular Participant:

 

		(a)	“disabled” or “disability” (or any similar terms) as such terms are defined in the employment or other written
agreement between the Corporation or a subsidiary of the Corporation and the Participant;

 

		(b)	in the event there is no written or other applicable employment or other agreement between the Corporation or a subsidiary of the
Corporation, or “disabled” or “disability” (or any similar terms) are not defined in such agreement, “disabled”
or “disability” as such term are defined in the Award Agreement; or

 

    	 	- 4 -	 

     

    

 

		(c)	in the event neither (a) or (b) apply, then the incapacity or inability of the Participant, by reason of mental or physical
incapacity, disability, illness or disease (as determined by a legally qualified medical practitioner or by a court) that prevents the
Participant from carrying out his or her normal and essential duties as an Employee, Director or Consultant for a continuous period of
six months or for any cumulative period of 180 days in any consecutive twelve month period, the foregoing subject to and as determined
in accordance with procedures established by the Plan Administrator for purposes of this Plan;

 

“Effective Date” means the effective date of this
Plan, being May 21, 2021, subject to the approval of the shareholders of the Corporation;

 

“Elected Amount” has the meaning set forth in Subsection
7.1(a);

 

“Electing Person” means a Participant who is, on
the applicable Election Date, a Director or an Employee;

 

“Election Date” means the date on which the Electing
Person files an Election Notice in accordance with Subsection 7.1(b);

 

“Election Notice” has the meaning set forth in Subsection
7.1(b); “Employee” means an individual who:

 

		(a)	is considered an employee of the Corporation or a subsidiary of the Corporation for purposes of source deductions under applicable
tax or social welfare legislation; or

 

		(b)	works full–time or part–time on a regular weekly basis for the Corporation or a subsidiary of the Corporation providing
services normally provided by an employee and who is subject to the same control and direction by the Corporation or a subsidiary of the
Corporation over the details and methods of work as an employee of the Corporation or such subsidiary.

 

“Exchange” means (a) the
Toronto Stock Exchange, or (b) the primary exchange on which the Shares are then listed, as determined from by the Plan Administrator,
if (i) the Toronto Stock Exchange is no longer the Corporation’s primary exchange, or (ii) the Shares are not listed on
the Toronto Stock Exchange;

 

“Exercise Notice” means a notice
in writing, signed by a Participant and stating the Participant’s intention to exercise a particular Option;

 

“Exercise Price” means the
price at which an Option Share may be purchased pursuant to the exercise of an Option;

 

“Expiry Date” means the expiry
date specified in the Award Agreement (which shall not be later than the tenth anniversary of the Date of Grant) or, if not so specified,
means the tenth anniversary of the Date of Grant;

 

    	 	- 5 -	 

     

    

 

“In the Money Amount” has the
meaning given to it in Subsection 4.5(b);

 

“Insider” means an “insider”
as defined in the rules of the Exchange from time to time;

 

“Market Price” at any date
in respect of the Shares shall be the volume weighted average trading price of Shares on the Exchange for the five trading days immediately
preceding the Date of Grant; provided that, for so long as the Shares are listed and posted for trading on the Exchange, the Market Price
shall not be less than the market price, as calculated under the policies of the Exchange; and provided, further, that with respect to
an Award made to a U.S. Taxpayer such Participant, the class of Shares and the number of Shares subject to such Award shall be identified
by the Board or the Committee prior to the start of the applicable five trading day period. In the event that such Shares are not listed
and posted for trading on any Exchange, the Market Price shall be the fair market value of such Shares as determined by the Board in its
sole discretion and, with respect to an Award made to a U.S. Taxpayer, in accordance with Section 409A of the Code;

 

“Option” means a right to purchase
Shares under Article 4 of this Plan that is non–assignable and non–transferable, unless otherwise approved by the Plan
Administrator;

 

“Option Shares” means Shares
issuable by the Corporation upon the exercise of outstanding Options;

 

“Participant” means a Director,
Employee or Consultant to whom an Award has been granted under this Plan;

 

“Performance Goals” means performance
goals expressed in terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease
in the particular criteria, and may be applied to one or more of the Corporation, a subsidiary of the Corporation, a division of the Corporation
or a subsidiary of the Corporation, or an individual, or may be applied to the performance of the Corporation or a subsidiary of the Corporation
relative to a market index, a group of other companies or a combination thereof, or on any other basis, all as determined by the Plan
Administrator in its discretion;

 

“Performance Share Unit” or
 “PSU” means a unit equivalent in value to a Share, credited by means of a bookkeeping entry in the books of the Corporation
in accordance with Article 6;

 

“Person” means an individual,
sole proprietorship, partnership, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate,
and a natural person in his or her capacity as trustee, executor, administrator or other legal representative;

 

“Plan” means this Omnibus Equity
Incentive Plan, as may be amended from time to time;

 

“Plan Administrator” means
the Board, or if the administration of this Plan has been delegated by the Board to the Committee or sub-delegated to a member of the
Committee or officer of the Corporation pursuant to Section 3.2, the Committee or sub-delegate, as the case may be;

 

“PSU Service Year” has the
meaning given to it in Section 6.1;

 

    	 	- 6 -	 

     

    

 

“Restricted Share Unit” or
 “RSU” means a unit equivalent in value to a Share, credited by means of a bookkeeping entry in the books of the Corporation
in accordance with Article 5;

 

“Retirement” means, unless
otherwise defined in the Participant’s written or other applicable employment agreement or in the Award Agreement, the termination
of the Participant’s working career at such retirement age to which the Plan Administrator has consented, other than on account
of the Participant’s termination of service by the Corporation or its subsidiary for Cause and provided that for U.S. Taxpayers
such Retirement also constitutes a Separation from Service within the meaning of Section 409A of the Code;

 

“Section 409A of the Code”
or “Section 409A” means Section 409A of the Code and all regulations, guidance, compliance programs, and
other interpretive authority issued thereunder;

 

“Securities Laws” means securities
legislation, securities regulation and securities rules, as amended, and the policies, notices, instruments and blanket orders in force
from time to time that govern or are applicable to the Corporation or to which it is subject;

 

“Security Based Compensation Arrangement”
means a stock option, stock option plan, employee stock purchase plan or any other compensation or incentive mechanism involving the issuance
or potential issuance of Shares to Directors, officers, Employees and/or service providers of the Corporation or any subsidiary of the
Corporation, including a share purchase from treasury which is financially assisted by the Corporation by way of a loan, guarantee or
otherwise;

 

“Separation from Service” means
a separation from service within the meaning of Section 409A of the Code;

 

“Share” means one (1) common
share in the capital of the Corporation as constituted on the Effective Date or any share or shares issued in replacement of such common
share in compliance with Canadian law or other applicable law, and/or one share of any additional class of common shares in the capital
of the Corporation as may exist from time to time, or after an adjustment contemplated by Article 12, such other shares or securities
to which the holder of an Award may be entitled as a result of such adjustment;

 

“Share-Based Award” means other
types of equity-based or equity-related Awards that may be authorized for issuance and issued pursuant to Article 8;

 

“subsidiary” means an issuer
that is Controlled directly or indirectly by another issuer and includes a subsidiary of that subsidiary, or any other entity in which
the Corporation has an equity interest and is designated by the Plan Administrator, from time to time, for purposes of this Plan to be
a subsidiary;

 

“Tax Act” has the meaning set
forth in Section 4.5(d);

 

“Termination Date” means, subject
to applicable law which cannot be waived:

 

		(a)	in the case of an Employee whose employment with the Corporation or a subsidiary of the Corporation terminates, (i) the date
designated by the Employee and the Corporation or a subsidiary of the Corporation as the “Termination Date” (or

 

    	 	- 7 -	 

     

    

 

similar term) in a written employment
or other agreement between the Employee and Corporation or a subsidiary of the Corporation, or (ii) if no such written employment
or other agreement exists, the date designated by the Corporation or a subsidiary of the Corporation, as the case may be, on which the
Employee ceases to be an employee of the Corporation or the subsidiary of the Corporation, as the case may be, provided that, in the case
of termination of employment by voluntary resignation by the Participant, such date shall not be earlier than the date notice of resignation
was given; and in any event, the “Termination Date” shall be determined without including any period of reasonable notice
that the Corporation or the subsidiary of the Corporation (as the case may be) may be required by law to provide to the Participant or
any pay in lieu of notice of termination, severance pay or other damages paid or payable to the Participant;

 

		(b)	in the case of a Consultant whose agreement or arrangement with the Corporation or a subsidiary of the Corporation terminates, (i) the
date designated by the Corporation or the subsidiary of the Corporation, as the “Termination Date” (or similar term) or expiry
date in a written agreement between the Consultant and Corporation or a subsidiary of the Corporation, or (ii) if no such written
agreement exists, the date designated by the Corporation or a subsidiary of the Corporation, as the case may be, on which the Consultant
ceases to be a Consultant or a service provider to the Corporation or the subsidiary of the Corporation, as the case may be, or on which
the Participant’s agreement or arrangement is terminated, provided that in the case of voluntary termination by the Participant
of the Participant’s consulting agreement or other written arrangement, such date shall not be earlier than the date notice of voluntary
termination was given; in any event, the “Termination Date” shall be determined without including any period of notice that
the Corporation or the subsidiary of the Corporation (as the case may be) may be required by law to provide to the Participant or any
pay in lieu of notice of termination, termination fees or other damages paid or payable to the Participant; and

 

		(c)	in the case of a Director, the date such individual ceases to be a Director, in each case, unless the individual continues to be a
Participant in another capacity.

 

Notwithstanding the foregoing, in the case of
a U.S. Taxpayer, a Participant’s “Termination Date” will be the date the Participant experiences a Separation from Service;

 

“U.S.” or “United
States” means the United States of America, its territories and possessions, any State of the United States, and the District
of Columbia;

 

“U.S. Person” shall mean a
 “U.S. person” as such term is defined in Rule 902(k) of Regulation S under the U.S. Securities Act (the definition
of which includes, but is not limited to, (i) any natural person resident in the United States, (ii) any partnership or corporation
organized or incorporated under the laws of the United States, (iii) any partnership or corporation organized outside of the United
States by a U.S. Person principally for the purpose of investing in securities not registered under the U.S. Securities Act, unless it
is organized, or incorporated, and owned, by accredited

 

    	 	- 8 -	 

     

    

 

investors who are not natural persons, estates or trusts, and (iv) any
estate or trust of which any executor or administrator or trustee is a U.S. Person);

 

“U.S. Securities Act” means the United States Securities
Act of 1933, as amended;

 

“U.S. Taxpayer” shall mean a Participant who, with
respect to an Award, is subject to taxation under applicable U.S. tax laws.

 

		2.2	Interpretation

 

		(a)	Whenever the Plan Administrator exercises discretion in the administration of this Plan, the term “discretion” means the
sole and absolute discretion of the Plan Administrator.

 

		(b)	As used herein, the terms “Article”, “Section”, “Subsection” and “clause” mean and
refer to the specified Article, Section, Subsection and clause of this Plan, respectively.

 

		(c)	Words importing the singular include the plural and vice versa and words importing any gender include any other gender.

 

		(d)	Unless otherwise specified, time periods within or following which any payment is to be made or act is to be done shall be calculated
by excluding the day on which the period begins, including the day on which the period ends, and abridging the period to the immediately
preceding Business Day in the event that the last day of the period is not a Business Day. In the event an action is required to be taken
or a payment is required to be made on a day which is not a Business Day such action shall be taken or such payment shall be made by the
immediately preceding Business Day.

 

		(e)	Unless otherwise specified, all references to money amounts are to Canadian currency.

 

		(f)	The headings used herein are for convenience only and are not to affect the interpretation of this Plan.

 

 

		3.1	Administration

 

ARTICLE 3 

ADMINISTRATION

  

This Plan will be administered by the Plan Administrator and the Plan
Administrator has sole and complete authority, in its discretion, to:

 

		(a)	determine the individuals to whom grants under the Plan may be made;

 

		(b)	make grants of Awards under the Plan relating to the issuance of Shares (including any combination of Options, Restricted Share Units,
Performance Share Units or

 

    	 	- 9 -	 

     

    

 

Deferred Share Units) in such amounts,
to such Persons and, subject to the provisions of this Plan, on such terms and conditions as it determines including without limitation:

 

		(i)	the time or times at which Awards may be granted;

 

		(ii)	the conditions under which:

 

		(A)	Awards may be granted to Participants; or

 

		(B)	Awards may be forfeited to the Corporation, including any conditions relating to the attainment of specified Performance Goals;

 

		(iii)	the number of Shares to be covered by any Award;

 

		(iv)	the price, if any, to be paid by a Participant in connection with the purchase of Shares covered by any Awards;

 

		(v)	whether restrictions or limitations are to be imposed on the Shares issuable pursuant to grants of any Award, and the nature of such
restrictions or limitations, if any; and

 

		(vi)	any acceleration of exercisability or vesting, or waiver of termination regarding any Award, based on such factors as the Plan Administrator
may determine;

 

		(c)	establish the form or forms of Award Agreements;

 

		(d)	cancel, amend, adjust or otherwise change any Award under such circumstances as the Plan Administrator may consider appropriate in
accordance with the provisions of this Plan;

 

		(e)	construe and interpret this Plan and all Award Agreements;

 

		(f)	adopt, amend, prescribe and rescind administrative guidelines and other rules and regulations relating to this Plan, including
rules and regulations relating to sub– plans established for the purpose of satisfying applicable foreign laws or for qualifying
for favorable tax treatment under applicable foreign laws; and

 

		(g)	make all other determinations and take all other actions necessary or advisable for the implementation and administration of this
Plan.

 

		3.2	Delegation to Committee

 

		(a)	The initial Plan Administrator shall be the Board.

 

		(b)	To the extent permitted by applicable law, the Board may, from time to time, delegate to a committee of the Board (the “Committee”)
all or any of the powers

 

    	 	- 10 -	 

     

    

 

conferred on the Plan Administrator pursuant
to this Plan, including the power to sub–delegate to any member(s) of the Committee or any specified officer(s) of the
Corporation or its subsidiaries all or any of the powers delegated by the Board. In such event, the Committee or any sub–delegate
will exercise the powers delegated to it in the manner and on the terms authorized by the delegating party. Any decision made or action
taken by the Committee or any sub–delegate arising out of or in connection with the administration or interpretation of this Plan
in this context is final and conclusive and binding on the Corporation and all subsidiaries of the Corporation, all Participants and all
other Persons.

 

		3.3	Determinations Binding

 

Any decision made or action taken by the Board,
the Committee or any sub–delegate to whom authority has been delegated pursuant to Section 3.2 arising out of or in connection
with the administration or interpretation of this Plan is final, conclusive and binding on the Corporation, the affected Participant(s),
their legal and personal representatives and all other Persons.

 

		3.4	Eligibility

 

All Directors, Employees and Consultants are eligible
to participate in the Plan, subject to Section 10.1(f). Participation in the Plan is voluntary and eligibility to participate does
not confer upon any Director, Employee or Consultant any right to receive any grant of an Award pursuant to the Plan. The extent to which
any Director, Employee or Consultant is entitled to receive a grant of an Award pursuant to the Plan will be determined in the sole and
absolute discretion of the Plan Administrator.

 

		3.5	Plan Administrator Requirements

 

Any Award granted under this Plan shall be subject
to the requirement that, if at any time the Plan Administrator shall determine that the listing, registration or qualification of the
Shares issuable pursuant to such Award upon any securities exchange or under any Securities Laws of any jurisdiction, or the consent or
approval of the Exchange and any securities commissions or similar securities regulatory bodies having jurisdiction over the Corporation
is necessary as a condition of, or in connection with, the grant or exercise of such Award or the issuance or purchase of Shares thereunder,
such Award may not be accepted or exercised, as applicable, in whole or in part unless such listing, registration, qualification, consent
or approval shall have been effected or obtained on conditions acceptable to the Plan Administrator. Without limiting the generality of
the foregoing, all Awards shall be issued pursuant to the registration requirements of the U.S. Securities Act, or pursuant an exemption
or exclusion from such registration requirements. Nothing herein shall be deemed to require the Corporation to apply for or to obtain
such listing, registration, qualification, consent or approval. Participants shall, to the extent applicable, cooperate with the Corporation
in complying with such legislation, rules, regulations and policies.

 

		3.6	Total Shares Subject to Awards

 

		(a)	Subject to adjustment as provided for in Article 11 and any subsequent amendment to this Plan, the aggregate number of Shares
reserved for issuance pursuant to Awards granted under this Plan and under any other Security Based Compensation

 

    	 	- 11 -	 

     

    

 

Arrangement shall not exceed 15% of the
Corporation’s total issued and outstanding Shares from time to time. This Plan is considered an “evergreen” plan, since
the shares covered by Awards which have been settled, exercised or terminated shall be available for subsequent grants under the Plan
and the number of Awards available to grant increases as the number of issued and outstanding Shares increases.

 

		(b)	To the extent any Awards (or portion(s) thereof) under this Plan terminate or are cancelled for any reason prior to exercise
in full, or are surrendered or settled by the Participant, any Shares subject to such Awards (or portion(s) thereof) shall be added
back to the number of Shares reserved for issuance under this Plan and will again become available for issuance pursuant to the exercise
of Awards granted under this Plan.

 

		(c)	Any Shares issued by the Corporation through the assumption or substitution of outstanding stock options or other equity–based
awards from an acquired company shall not reduce the number of Shares available for issuance pursuant to the exercise of Awards granted
under this Plan.

 

		3.7	Limits on Grants of Awards

 

Notwithstanding anything in this Plan, the aggregate
number of Shares:

 

		(i)	issuable to Insiders at any time, under all of the Corporation’s Security– Based Compensation Arrangements, shall not
exceed ten percent (10%) of the Corporation’s issued and outstanding Shares; and

 

		(ii)	issued to Insiders within any one (1) year period, under all of the Corporation’s Security Based Compensation Arrangements,
shall not exceed ten percent (10%) of the Corporation’s issued and outstanding Shares,

 

provided that the acquisition of Shares by the
Corporation for cancellation shall be disregarded for the purposes of determining non–compliance with this Section 3.7 for
any Awards outstanding prior to such purchase of Shares for cancellation.

 

		3.8	Award Agreements

 

Each Award under this Plan will be evidenced by
an Award Agreement. Each Award Agreement will be subject to the applicable provisions of this Plan and will contain such provisions as
are required by this Plan and any other provisions that the Plan Administrator may direct. Any one officer of the Corporation is authorized
and empowered to execute and deliver, for and on behalf of the Corporation, an Award Agreement to a Participant granted an Award pursuant
to this Plan.

 

		3.9	Non–transferability of Awards

 

Except as permitted by the Plan Administrator
and to the extent that certain rights may pass to a beneficiary or legal representative upon death of a Participant, by will or as required
by law, no

 

    	 	- 12 -	 

     

    

 

assignment or transfer of Awards, whether voluntary,
involuntary, by operation of law or otherwise, vests any interest or right in such Awards whatsoever in any assignee or transferee and
immediately upon any assignment or transfer, or any attempt to make the same, such Awards will terminate and be of no further force or
effect. To the extent that certain rights to exercise any portion of an outstanding Award pass to a beneficiary or legal representative
upon death of a Participant, the period in which such Award can be exercised by such beneficiary or legal representative shall not exceed
one year from the Participant’s death.

 

ARTICLE 4 

OPTIONS

 

		4.1	Granting of Options

 

The Plan Administrator may, from time to time,
subject to the provisions of this Plan and such other terms and conditions as the Plan Administrator may prescribe, grant Options to any
Participant. The terms and conditions of each Option grant shall be evidenced by an Award Agreement.

 

		4.2	Exercise Price

 

The Plan Administrator will establish the Exercise
Price at the time each Option is granted, which Exercise Price must in all cases be not less than the Market Price on the Date of Grant.

 

		4.3	Term of Options

 

Subject to any accelerated termination as set
forth in this Plan, each Option expires on its Expiry Date.

 

		4.4	Vesting and Exercisability

 

		(a)	The Plan Administrator shall have the authority to determine the vesting terms applicable to grants of Options.

 

		(b)	Once an Option becomes vested, it shall remain vested and shall be exercisable until expiration or termination of the Option, unless
otherwise specified by the Plan Administrator, or as may be otherwise set forth in any written employment agreement, Award Agreement or
other written agreement between the Corporation or a subsidiary of the Corporation and the Participant. Each vested Option may be exercised
at any time or from time to time, in whole or in part, for up to the total number of Option Shares with respect to which it is then exercisable.
The Plan Administrator has the right to accelerate the date upon which any Option becomes exercisable.

 

		(c)	Subject to the provisions of this Plan and any Award Agreement, Options shall be exercised by means of a fully completed Exercise
Notice delivered to the Corporation.

 

    	 	- 13 -	 

     

    

 

		(d)	The Plan Administrator may provide at the time of granting an Option that the exercise of that Option is subject to restrictions,
in addition to those specified in this Section 4.4, such as vesting conditions relating to the attainment of specified Performance
Goals.

 

		4.5	Payment of Exercise Price

 

		(a)	Unless otherwise specified by the Plan Administrator at the time of granting an Option and set forth in the particular Award Agreement,
the Exercise Notice must be accompanied by payment of the Exercise Price. The Exercise Price must be fully paid by certified cheque, wire
transfer, bank draft or money order payable to the Corporation or by such other means as might be specified from time to time by the Plan
Administrator, which may include (i) through an arrangement with a broker approved by the Corporation (or through an arrangement
directly with the Corporation) whereby payment of the Exercise Price is accomplished with the proceeds of the sale of Shares deliverable
upon the exercise of the Option,

 

(ii) through the cashless exercise
process set out in Section 4.5(b), or (iii) such other consideration and method of payment for the issuance of Shares to the
extent permitted by Securities Laws, or any combination of the foregoing methods of payment.

 

		(b)	Unless otherwise specified by the Plan Administrator and set forth in the particular Award Agreement, a Participant may, but only
if permitted by the Plan Administrator, in lieu of exercising an Option pursuant to an Exercise Notice, elect to surrender such Option
to the Corporation (a “Cashless Exercise”) in consideration for an amount from the Corporation equal to (i) the
Market Price of the Shares issuable on the exercise of such Option (or portion thereof) as of the date such Option (or portion thereof)
is exercised, less (ii) the aggregate Exercise Price of the Option (or portion thereof) surrendered relating to such Shares (the
 “In–the– Money Amount”), by written notice to the Corporation indicating the number of Options such Participant
wishes to exercise using the Cashless Exercise, and such other information that the Corporation may require. Subject to Section 9.3,
the Corporation shall satisfy payment of the In–the–Money Amount by delivering to the Participant such number of Shares (rounded
down to the nearest whole number) having a fair market value equal to the In–the–Money Amount.

 

		(c)	No Shares will be issued or transferred until full payment therefor has been received by the Corporation, or arrangements for such
payment have been made to the satisfaction of the Plan Administrator.

 

		(d)	If a Participant surrenders Options through a Cashless Exercise pursuant to Section 4.5(b), to the extent that such Participant
would be entitled to a deduction under paragraph 110(1)(d) of the Income Tax Act (Canada) (the “Tax Act”)
in respect of such surrender if the election described in subsection 110(1.1) of the Tax Act were made and filed (and the other procedures
described therein were undertaken) on a timely basis after such surrender, the Corporation will cause such election to be so made and
filed (and such other procedures to be so undertaken).

 

    	 	- 14 -	 

     

    

 

ARTICLE 5

RESTRICTED SHARE
UNITS

 

		5.1	Granting of RSUs

 

		(a)	The Plan Administrator may, from time to time, subject to the provisions of this Plan and such other terms and conditions as the Plan
Administrator may prescribe, grant RSUs to any Participant in respect of a bonus or similar payment in respect of services rendered by
the applicable Participant in a taxation year. The terms and conditions of each RSU grant may be evidenced by an Award Agreement. Each
RSU will consist of a right to receive a Share, or at the election of a Participant, but subject to the approval of the Plan Administrator,
a cash payment or a combination of Shares and cash (as provided in Section 5.4(a)), upon the settlement of such RSU.

 

		(b)	The number of RSUs (including fractional RSUs) granted at any particular time pursuant to this Article 5 will be calculated by
dividing (i) the amount of any bonus or similar payment that is to be paid in RSUs, as determined by the Plan Administrator, by (ii) the
greater of (A) the Market Price of a Share on the Date of Grant; and (B) such amount as determined by the Plan Administrator
in its sole discretion.

 

		5.2	RSU Account

 

All RSUs received by a Participant shall be credited to an account
maintained for the Participant on the books of the Corporation, as of the Date of Grant.

 

		5.3	Vesting of RSUs

 

The Plan Administrator shall have the authority to determine any vesting
terms applicable to the grant of RSUs, provided that the terms comply with Section 409A, with respect to a U.S. Taxpayer.

 

		5.4	Settlement of RSUs

 

		(a)	Subject to Section 12.6(d) below and except as otherwise provided in an Award Agreement, on the settlement date for any
RSU, the Participant shall redeem each vested RSU for one fully paid and non-assessable Share issued from treasury to the Participant,
or the following at the election of the Participant but subject to the approval of the Plan Administrator:

 

		(i)	a cash payment, or

 

		(ii)	a combination of fully paid and non-assessable Shares issued from treasury to the Participant and a cash payment.

 

The Plan Administrator shall have the sole authority to determine
any other settlement terms applicable to the grant of RSUs, provided that with respect to a

 

U.S. Taxpayer the terms comply with Section 409A to the
extent it is applicable.

 

    	 	- 15 -	 

     

    

 

		(b)	Any cash payments made under this Section 5.4 by the Corporation to a Participant in respect of RSUs to be redeemed for cash
shall be calculated by multiplying the number of RSUs to be redeemed for cash by the Market Price per Share as at the settlement date.

 

		(c)	Payment of cash to Participants on the redemption of vested RSUs may be made through the Corporation’s payroll in the pay period
that the settlement date falls within.

 

ARTICLE 6

PERFORMANCE SHARE UNITS

 

		6.1	Granting of PSUs

 

The Plan Administrator may, from time to time,
subject to the provisions of this Plan and such other terms and conditions as the Plan Administrator may prescribe, grant PSUs to any
Participant in respect of a bonus or similar payment in respect of services rendered by the applicable Participant in a taxation year
(the “PSU Service Year”). The terms and conditions of each PSU grant shall be evidenced by an Award Agreement, provided
that with respect to a U.S. Taxpayer the terms comply with Section 409A to the extent it is applicable. Each PSU will consist of
a right to receive a Share, cash payment, or a combination thereof (as provided in Section 6.6(a)), upon the achievement of such
Performance Goals during such performance periods as the Plan Administrator shall establish.

 

		6.2	Terms of PSUs

 

The Performance Goals to be achieved during any
performance period, the length of any performance period, the amount of any PSUs granted, the effect of termination of a Participant’s
service and the amount of any payment or transfer to be made pursuant to any PSU will be determined by the Plan Administrator and by the
other terms and conditions of any PSU, all as set forth in the applicable Award Agreement.

 

		6.3	Performance Goals

 

The Plan Administrator will issue Performance
Goals prior to the Date of Grant to which such Performance Goals pertain. The Performance Goals may be based upon the achievement of corporate,
divisional or individual goals, and may be applied to performance relative to an index or comparator group, or on any other basis determined
by the Plan Administrator. Following the Date of Grant, the Plan Administrator may modify the Performance Goals as necessary to align
them with the Corporation’s corporate objectives, subject to any limitations set forth in an Award Agreement or an employment or
other agreement with a Participant. The Performance Goals may include a threshold level of performance below which no payment will be
made (or no vesting will occur), levels of performance at which specified payments will be made (or specified vesting will occur), and
a maximum level of performance above which no additional payment will be made (or at which full vesting will occur), all as set forth
in the applicable Award Agreement.

 

    	 	- 16 -	 

     

    

 

		6.4	PSU Account

 

All PSUs received by a Participant shall be credited
to an account maintained for the Participant on the books of the Corporation, as of the Date of Grant.

 

		6.5	Vesting of PSUs

 

The Plan Administrator shall have the authority
to determine any vesting terms applicable to the grant of PSUs, provided that with respect to a U.S. Taxpayer the terms comply with Section 409A
to the extent it is applicable.

 

		6.6	Settlement of PSUs

 

		(a)	The Plan Administrator shall have the authority to determine the settlement terms applicable to the grant of PSUs provided that with
respect to a U.S. Taxpayer the terms comply with Section 409A to the extent it is applicable. Subject to Section 12.6(d) below
and except as otherwise provided in an Award Agreement, on the settlement date for any PSU, the Participant shall redeem each vested PSU
for the following at the election of the Participant but subject to the approval of the Plan Administrator:

 

		(i)	one fully paid and non–assessable Share issued from treasury to the Participant or as the Participant may direct,

 

		(ii)	a cash payment, or

 

		(iii)	a combination of Shares and cash as contemplated by paragraphs (i) and (ii) above.

 

		(b)	Any cash payments made under this Section 6.6 by the Corporation to a Participant in respect of PSUs to be redeemed for cash
shall be calculated by multiplying the number of PSUs to be redeemed for cash by the Market Price per Share as at the settlement date.

 

		(c)	Payment of cash to Participants on the redemption of vested PSUs may be made through the Corporation’s payroll in the pay period
that the settlement date falls within.

 

		(d)	Notwithstanding any other terms of this Plan but, in the case of a U.S. Taxpayer, subject to Section 12.6(d) below and except,
in the case of a U.S. Taxpayer, as otherwise provided in an Award Agreement, no settlement date for any PSU shall occur, and no Share
shall be issued or cash payment shall be made in respect of any PSU, under this Section 6.6 any later than the final Business Day
of the third calendar year following the applicable PSU Service Year.

 

    	 	- 17 -	 

     

    

 

		7.1	Granting of DSUs

 

ARTICLE 7 

DEFERRED SHARE UNITS

  

		(a)	The Board may fix from time to time a portion of the Director Fees that is to be payable in the form of DSUs. In addition, each Electing
Person is given, subject to the conditions stated herein, the right to elect in accordance with Section 7.1(b) to participate
in the grant of additional DSUs pursuant to this Article 7. An Electing Person who elects to participate in the grant of additional
DSUs pursuant to this Article 7 shall receive their Elected Amount (as that term is defined below) in the form of DSUs. The “Elected
Amount” shall be an amount, as elected by the Director, in accordance with applicable tax law, between 0% and 100% of any Director
Fees that would otherwise be paid in cash (the “Cash Fees”).

 

		(b)	Each Electing Person who elects to receive their Elected Amount in the form of DSUs will be required to file a notice of election
in the form of Schedule A hereto (the “Election Notice”) with the Chief Financial Officer of the Corporation: (i) in
the case of an existing Electing Person, by December 31st in the year prior to the year to which such election is to apply (other
than for Director Fees payable for the 2020 financial year, in which case any Electing Person who is not a U.S. Taxpayer as of the date
of this Plan shall file the Election Notice by the date that is 30 days from the Effective Date with respect to compensation paid for
services to be performed after such date); and (ii) in the case of a newly appointed Electing Person who is not a U.S. Taxpayer,
within 30 days of such appointment with respect to compensation paid for services to be performed after such date. In the case of the
first year in which an Electing Person who is a U.S. Taxpayer first becomes an Electing Person under the Plan (or any plan required to
be aggregated with the Plan under Section 409A), an initial Election Notice may be filed within 30 days of such appointment only
with respect to compensation paid for services to be performed after the end of the 30–day election period. If no election is made
within the foregoing time frames, the Electing Person shall be deemed to have elected to be paid the entire amount of his or her Cash
Fees in cash.

 

		(c)	Subject to Subsection 7.1(d), the election of an Electing Person under Subsection 7.1(b) shall be deemed to apply to all Cash
Fees paid subsequent to the filing of the Election Notice. In the case of an Electing Person who is a U.S. Taxpayer, his or her election
under Section 7.1(b) shall be deemed to apply to all Cash Fees that are earned after the Election Date. An Electing Person is
not required to file another Election Notice for subsequent calendar years

 

		(d)	Each Electing Person who is not a U.S. Taxpayer is entitled once per calendar year to terminate his or her election to receive DSUs
by filing with the Chief Financial Officer of the Corporation a termination notice in the form of Schedule B. Such termination shall be
effective immediately upon receipt of such notice, provided that the Corporation has not imposed a “black–out” on trading.
Thereafter, any portion of such Electing Person’s Cash Fees payable or paid in the same calendar

 

    	 	- 18 -	 

     

    

 

year and, subject to complying with Subsection
7.1(b), all subsequent calendar years shall be paid in cash. For greater certainty, to the extent an Electing Person terminates his or
her participation in the grant of DSUs pursuant to this Article 7, he or she shall not be entitled to elect to receive the Elected
Amount, or any other amount of his or her Cash Fees in DSUs again until the calendar year following the year in which the termination
notice is delivered. An election by a U.S. Taxpayer to receive the Elected Amount in DSUs for any calendar year (or portion thereof) is
irrevocable for that calendar year after the expiration of the election period for that year and any termination of the election will
not take effect until the first day of the calendar year following the calendar year in which the termination notice in the form of Schedule
A is delivered.

 

		(e)	Any DSUs granted pursuant to this Article 7 prior to the delivery of a termination notice pursuant to Section 7.1(d) shall
remain in the Plan following such termination and will be redeemable only in accordance with the terms of the Plan.

 

		(f)	The number of DSUs (including fractional DSUs) granted at any particular time pursuant to this Article 7 will be calculated by
dividing (i) the amount of Director Fees that are to be paid as DSUs, as determined by the Plan Administrator or Director Fees that
are to be paid in DSUs (including any Elected Amount), by

 

(ii) the Market Price of a Share
on the Date of Grant.

 

		(g)	In addition to the foregoing, the Plan Administrator may, from time to time, subject to the provisions of this Plan and such other
terms and conditions as the Plan Administrator may prescribe, grant DSUs to any Participant.

 

		7.2	DSU Account

 

All DSUs received by a Participant (which, for
greater certainty includes Electing Persons) shall be credited to an account maintained for the Participant on the books of the Corporation,
as of the Date of Grant. The terms and conditions of each DSU grant shall be evidenced by an Award Agreement.

 

		7.3	Vesting of DSUs

 

Except as otherwise determined by the Plan Administrator
or as set forth in the particular Award Agreement, DSUs shall vest immediately upon grant.

 

		7.4	Settlement of DSUs

 

		(a)	DSUs shall be settled on the date established in the Award Agreement; provided, however that if there is no Award Agreement or the
Award Agreement does not establish a date for the settlement of the DSUs, then, for a Participant who is not a

 

U.S. Taxpayer the settlement date shall
be the date determined by the Participant (which date shall not be earlier than the Termination Date or later than the end of the first
calendar year commencing after the Termination Date), and for a Participant who is a U.S. taxpayer, the settlement date shall be the date
determined by the Participant in accordance with the Election Notice (which date shall not be

 

    	 	- 19 -	 

     

    

 

earlier than the “separation
from service” (within the meaning of Section 409A)). On the settlement date for any DSU, the Participant shall redeem each
vested DSU for:

 

		(i)	one fully paid and non–assessable Share issued from treasury to the Participant or as the Participant may direct; or

 

		(i)	at the election of the Participant and subject to the approval of the Plan Administrator, a cash payment.

 

		(b)	Any cash payments made under this Section 7.4 by the Corporation to a Participant in respect of DSUs to be redeemed for cash
shall be calculated by multiplying the number of DSUs to be redeemed for cash by the Market Price per Share as at the settlement date.

 

		(c)	Payment of cash to Participants on the redemption of vested DSUs may be made through the Corporation’s payroll or in such other
manner as determined by the Corporation.

 

		7.5	No Additional Amount or Benefit

 

For greater certainty, neither a Participant to
whom DSUs are granted nor any person with whom such Participant does not deal at arm’s length (for purposes of the Tax Act) shall
be entitled, either immediately or in the future, either absolutely or contingently, to receive or obtain any amount or benefit granted
or to be granted for the purpose of reducing the impact, in whole or in part, of any reduction in the Market Price of the Shares to which
the DSUs relate.

 

ARTICLE 8

 SHARE-BASED AWARDS

 

8.1            Share-Based
Awards

 

The Committee may grant other types of equity-based or equity-related
Awards not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts
and subject to such terms and conditions, including, but not limited to, being subject to performance criteria, or in satisfaction of
such obligations, as the Committee shall determine. Such Awards may involve the transfer of actual Shares to Participants, or payment
in cash or otherwise of amounts based on the value of Shares.

 

ARTICLE 9

 ADDITIONAL AWARD TERMS

 

		9.1	Dividend Equivalents

 

		(a)	Unless otherwise determined by the Plan Administrator or as set forth in the particular Award Agreement, an Award of RSUs, PSUs and
DSUs shall include the right for such RSUs, PSUs and DSUs be credited with dividend equivalents in the form of additional RSUs, PSUs and
DSUs, respectively, as of each dividend

 

    	 	- 20 -	 

     

    

 

payment date in respect of which normal
cash dividends are paid on Shares. Such dividend equivalents shall be computed by dividing: (a) the amount obtained by multiplying
the amount of the dividend declared and paid per Share by the number of RSUs, PSUs and DSUs, as applicable, held by the Participant on
the record date for the payment of such dividend, by (b) the Market Price at the close of the first Business Day immediately following
the dividend record date, with fractions computed to three decimal places. Dividend equivalents credited to a Participant’s account
shall vest in proportion to the RSUs, PSUs and DSUs to which they relate, and shall be settled in accordance with Subsections 5.4, 6.6,
and 7.4 respectively.

 

		(b)	The foregoing does not obligate the Corporation to declare or pay dividends on Shares and nothing in this Plan shall be interpreted
as creating such an obligation.

 

		9.2	Black–out Period

 

In the event that an Award expires, at a time
when a scheduled blackout is in place or an undisclosed material change or material fact in the affairs of the Corporation exists, the
expiry of such Award will be the date that is 10 Business Days after which such scheduled blackout terminates or there is no longer such
undisclosed material change or material fact.

 

		9.3	Withholding Taxes

 

Notwithstanding any other terms of this Plan,
the granting, vesting or settlement of each Award under this Plan is subject to the condition that if at any time the Plan Administrator
determines, in its discretion, that the satisfaction of withholding tax or other withholding liabilities is necessary or desirable in
respect of such grant, vesting or settlement, such action is not effective unless such withholding has been effected to the satisfaction
of the Plan Administrator. In such circumstances, the Plan Administrator may require that a Participant pay to the Corporation such amount
as the Corporation or a subsidiary of the Corporation is obliged to withhold or remit to the relevant taxing authority in respect of the
granting, vesting or settlement of the Award. Any such additional payment is due no later than the date on which such amount with respect
to the Award is required to be remitted to the relevant tax authority by the Corporation or a subsidiary of the Corporation, as the case
may be. Alternatively, and subject to any requirements or limitations under applicable law, the Corporation or any Affiliate may (a) withhold
such amount from any remuneration or other amount payable by the Corporation or any Affiliate to the Participant, (b) require the
sale, on behalf of the applicable Participant, of a number of Shares issued upon exercise, vesting, or settlement of such Award and the
remittance to the Corporation of the net proceeds from such sale sufficient to satisfy such amount, or (c) enter into any other suitable
arrangements for the receipt of such amount.

 

		9.4	Recoupment

 

Notwithstanding any other terms of this Plan,
Awards may be subject to potential cancellation, recoupment, rescission, payback or other action in accordance with the terms of any clawback,
recoupment or similar policy adopted by the Corporation or the relevant subsidiary of the Corporation, or as set out in the Participant’s
employment agreement, Award Agreement or other written agreement, or as otherwise required by law or the rules of the Exchange. The
Plan

 

    	 	- 21 -	 

     

    

 

Administrator may at any time waive the application of this Section 9.4
to any Participant or category of Participants.

 

ARTICLE 10 

TERMINATION OF EMPLOYMENT OR SERVICES

 

		10.1	Termination of Employee, Consultant or Director

 

Subject to Section 10.2, unless otherwise determined by the Plan
Administrator or as set forth in an employment agreement, Award Agreement or other written agreement:

 

		(a)	where a Participant’s employment, consulting agreement or arrangement is terminated or the Participant ceases to hold office
or his or her position, as applicable, by reason of voluntary resignation by the Participant or termination by the Corporation or a subsidiary
of the Corporation for Cause, then any Option or other Award held by the Participant that has not been exercised, surrendered or settled
as of the Termination Date shall be immediately forfeited and cancelled as of the Termination Date;

 

		(b)	where a Participant’s employment, consulting agreement or arrangement is terminated by the Corporation or a subsidiary of the
Corporation without Cause (whether such termination occurs with or without any or adequate reasonable notice, or with or without any or
adequate compensation in lieu of such reasonable notice), then any unvested Options or other Awards which would otherwise vest or become
exercisable in accordance with its terms based solely on the Participant remaining in the service of the Corporation or a subsidiary on
or prior to the date that is 90 days after the Termination Date shall immediately vest. Any vested Options may be exercised by the Participant
at any time during the period that terminates on the earlier of: (A) the Expiry Date of such Option; and (B) the date that is
90 days after the Termination Date. If an Option remains unexercised upon the earlier of (A) or (B), the Option shall be immediately
forfeited and cancelled for no consideration upon the termination of such period. In the case of a vested Award other than an Option,
that is held by a Participant who is not a U.S. Taxpayer, such Award will be settled within 90 days after the Termination Date. In the
case of vested Awards of a U.S. Taxpayer, vested RSUs will be settled within 90 days after the Termination Date, vested DSUs will be settled
in accordance with the Participant’s DSU Election Notice (Schedule A hereto), and PSUs that become vested as a result of this Section 10.1(b) will
be settled within 90 days after the Termination Date, provided that in all cases such PSUs will be settled by March 15th of the year
immediately following the calendar year in which the Termination Date occurs;

 

		(c)	where a Participant’s employment, consulting agreement or arrangement terminates on account of his or her becoming Disabled,
then any Award held by the Participant that has not vested as of the date of the Participant’s Termination Date shall vest on such
date. Any vested Option may be exercised by the Participant at any time until the Expiry Date of such Option. Any vested Award other than
an

 

    	 	- 22 -	 

     

    

 

Option, that is held by a Participant
that is not a U.S. Taxpayer, will be settled within 90 days after the Termination Date. In the case of vested Awards of a U.S. Taxpayer,
vested RSUs will be settled within 90 days after the Termination Date, vested DSUs will be settled in accordance with the Participant’s
DSU Election Notice (Schedule A hereto), and PSUs that become vested as a result of this Section 10.1(c) will be settled within
90 days after the Termination Date, provided that in all cases such PSUs will be settled by March 15th of the year immediately following
the calendar year in which the Termination Date occurs;

 

		(d)	where a Participant’s employment, consulting agreement or arrangement is terminated by reason of the death of the Participant,
then any Award that is held by the Participant that has not vested as of the date of the death of such Participant shall vest on such
date. Any vested Option may be exercised by the Participant’s beneficiary or legal representative (as applicable) at any time during
the period that terminates on the earlier of: (A) the Expiry Date of such Option; and (B) the first anniversary of the date
of the death of such Participant. If an Option remains unexercised upon the earlier of (A) or (B), the Option shall be immediately
forfeited and cancelled for no consideration upon the termination of such period. In the case of a vested Award other than an Option,
that is held by a Participant that is not a

 

U.S. Taxpayer, such Award will be settled
with the Participant’s beneficiary or legal representative (as applicable) within 90 days after the date of the Participant’s
death. In the case of vested Awards of a U.S. Taxpayer, vested RSUs will be settled within 90 days after the date of death, vested DSUs
will be settled in accordance with the Participant’s Election Notice (Schedule A hereto), and PSUs that become vested as a result
of this Section 10.1(d) will be settled within 90 days after the date of death, provided that in all cases such PSUs will be
settled by March 15th of the year immediately following the calendar year in which the death occurs;

 

		(e)	where a Participant’s employment, consulting agreement or arrangement is terminated due to the Participant’s Retirement,
then (i) any outstanding Award that vests or becomes exercisable in accordance with its terms based solely on the Participant remaining
in the service of the Corporation or a subsidiary will become 100% vested, and (ii) any outstanding Award that vests based on the
achievement of Performance Goals and that has not previously become vested shall continue to be eligible to vest based upon the actual
achievement of such Performance Goals. Any vested Option may be exercised by the Participant at any time during the period that terminates
on the earlier of: (A) the Expiry Date of such Option; and

 

(B) the third anniversary of the
Participant’s date of Retirement. If an Option remains unexercised upon the earlier of (A) or (B), the Option shall be immediately
forfeited and cancelled for no consideration upon the termination of such period. In the case of a vested Award other than an Option that
is described in (i), such Award will be settled within 90 days after the Participant’s Retirement. In the case of a vested Award
other than an Option that is described in (ii), such Award will be settled at the same time the Award would otherwise have been settled
had the Participant remained in active service with the Corporation or a subsidiary. Notwithstanding the foregoing, if, following his
or her Retirement, the Participant commences (the “Commencement Date”) employment, consulting or acting as a

 

    	 	- 23 -	 

     

    

 

director of the Corporation or any of
its subsidiaries (or in an analogous capacity) or otherwise as a service provider to any Person that carries on or proposes to carry on
a business competitive with the Corporation or any of its subsidiaries, any Option or other Award held by the Participant that has not
been exercised or settled as of the Commencement Date shall be immediately forfeited and cancelled as of the Commencement Date;

 

		(f)	a Participant’s eligibility to receive further grants of Options or other Awards under this Plan ceases as of:

 

		(i)	the date that the Corporation or a subsidiary of the Corporation, as the case may be, provides the Participant with written notification
that the Participant’s employment, consulting agreement or arrangement is terminated, notwithstanding that such date may be prior
to the Termination Date; or

 

		(ii)	the date of the death, Disability or Retirement of the Participant;

 

		(g)	notwithstanding Subsection 10.1(b), unless the Plan Administrator, in its discretion, otherwise determines, at any time and from time
to time, but with due regard for Section 409A, Options or other Awards are not affected by a change of employment or consulting agreement
or arrangement, or directorship within or among the Corporation or a subsidiary of the Corporation for so long as the Participant continues
to be a Director, Employee or Consultant, as applicable, of the Corporation or a subsidiary of the Corporation; and

 

		(h)	for greater clarity, except as otherwise provided in an applicable Award Agreement or employment agreement, and notwithstanding any
other provision of this Section 10.1, in the case of an Award (other than an Option or DSU) that is granted to a U.S. Taxpayer and
that becomes vested (in whole or in part) pursuant to this Section 10.1 upon the Participant’s Termination Date, such Award
will, subject to Section 12.6(d), be settled as soon as administratively practicable following the Participant’s Termination
Date but in no event later than 90 days following the Participant’s Termination Date, provided that if such Award is a PSU, settlement
will occur no later than March 15th of the year immediately following the calendar year in which the Termination Date
occurs. In the case of an Award (other than an Option or DSU) granted to a U.S. Taxpayer that remains eligible to vest (in whole or in
part) following a Participant’s termination of service based upon the achievement of one or more Performance Goals, such Award will
be settled at the earlier of (i) the originally scheduled settlement date at the end of the performance period (to the extent Performance
Goals are achieved) and (ii) the date on which performance vesting conditions are waived, or are deemed satisfied pursuant to the
terms of the Applicable Award Agreement. DSUs will be settled in accordance with the U.S. Taxpayer’s DSU Election Notice (Schedule
A hereto).

 

    	 	- 24 -	 

     

    

 

		10.2	Discretion to Permit Acceleration

 

Notwithstanding the provisions of Section 10.1,
the Plan Administrator may, in its discretion, at any time prior to, or following the events contemplated in such Section, or in an employment
agreement, Award Agreement or other written agreement between the Corporation or a subsidiary of the Corporation and the Participant,
permit the acceleration of vesting of any or all Awards or waive termination of any or all Awards, all in the manner and on the terms
as may be authorized by the Plan Administrator, taking into consideration the requirements of Section 409A of the Code, to the extent
applicable, with respect to Awards of U.S. Taxpayers.

 

ARTICLE 11 

EVENTS AFFECTING THE CORPORATION

 

		11.1	General

 

The existence of any Awards does not affect in
any way the right or power of the Corporation or its shareholders to make, authorize or determine any adjustment, recapitalization, reorganization
or any other change in the Corporation’s capital structure or its business, or any amalgamation, combination, arrangement, merger
or consolidation involving the Corporation, to create or issue any bonds, debentures, Shares or other securities of the Corporation or
to determine the rights and conditions attaching thereto, to effect the dissolution or liquidation of the Corporation or any sale or transfer
of all or any part of its assets or business, or to effect any other corporate act or proceeding, whether of a similar character or otherwise,
whether or not any such action referred to in this Article 11 would have an adverse effect on this Plan or on any Award granted hereunder.

 

		11.2	Change in Control

 

Except as may be set forth in an employment agreement,
Award Agreement or other written agreement between the Corporation or a subsidiary of the Corporation and the Participant:

 

		(a)	Subject to this Section 11.2, but notwithstanding anything else in this Plan or any Award Agreement, the Plan Administrator may,
without the consent of any Participant, take such steps as it deems necessary or desirable, including to cause

 

(i)            the
conversion or exchange of any outstanding Awards into or for, rights or other securities of substantially equivalent value, as determined
by the Plan Administrator in its discretion, in any entity participating in or resulting from a Change in Control; (ii) outstanding
Awards to vest and become exercisable, realizable, or payable, or restrictions applicable to an Award to lapse, in whole or in part prior
to or upon consummation of such merger or Change in Control, and, to the extent the Plan Administrator determines, terminate upon or immediately
prior to the effectiveness of such merger or Change in Control; (iii) the termination of an Award in exchange for an amount of cash
and/or property, if any, equal to the amount that would have been attained upon the exercise or settlement of such Award or realization
of the Participant’s rights as of the date of the occurrence of the transaction (and, for the avoidance of doubt, if as of the date
of the occurrence of the transaction the Plan Administrator determines in good faith that no amount would have been attained upon the
exercise or settlement of such Award or

 

    	 	- 25 -	 

     

    

 

realization of the Participant’s
rights, then such Award may be terminated by the Corporation without payment); (iv) the replacement of such Award with other rights
or property selected by the Board of Directors in its sole discretion where such replacement would not adversely affect the holder; or
(v) any combination of the foregoing. In taking any of the actions permitted under this Section 11.2(a), the Plan Administrator
will not be required to treat all Awards similarly in the transaction. Notwithstanding the foregoing, in the case of Options held by a
Canadian Taxpayer, the Plan Administrator may not cause the Canadian Taxpayer to receive (pursuant to this Subsection 11.2(a)) any property
in connection with a Change in Control other than rights to acquire shares or units of a “mutual fund trust” (as defined in
the Tax Act), of the Corporation or a “qualifying person” (as defined in the Tax Act) that does not deal at arm’s length
(for purposes of the Tax Act) with the Corporation, as applicable, at the time such rights are issued or granted.

 

		(b)	Notwithstanding Section 10.1, and except as otherwise provided in a written employment or other agreement between the Corporation
or a subsidiary of the Corporation and a Participant, if within 12 months following the completion of a transaction resulting in a Change
in Control, a Participant’s employment, consultancy or directorship is terminated by the Corporation or a subsidiary of the Corporation
without Cause:

 

		(i)	any unvested Awards held by the Participant at the Termination Date shall immediately vest; and

 

		(ii)	any vested Awards of Participants may, subject to Section 6.6(d) (where applicable), be exercised, surrendered or settled
by such Participant at any time during the period that terminates on the earlier of: (A) the Expiry Date of such Award; and (B) the
date that is 90 days after the Termination Date, provided that any vested Awards (other than Options) granted to U.S. Taxpayers will be
settled within 90 days of the Participant’s “separation from service”. Any Award that has not been exercised, surrendered
or settled at the end of such period will be immediately forfeited and cancelled.

 

		(c)	Notwithstanding Subsection 11.2(a) and unless otherwise determined by the Plan Administrator, if, as a result of a Change in
Control, the Shares will cease trading on an Exchange, then the Corporation may terminate all of the Awards, other than an Option held
by a Canadian Taxpayer for the purposes of the Tax Act, granted under this Plan at the time of and subject to the completion of the Change
in Control transaction by paying to each holder at or within a reasonable period of time following completion of such Change in Control
transaction an amount for each Award equal to the fair market value of the Award held by such Participant as determined by the Plan Administrator,
acting reasonably, provided that any vested Awards granted to U.S. Taxpayers will be settled within 90 days of the Change in Control.

 

    	 	- 26 -	 

     

    

 

		(d)	It is intended that any actions taken under this Section 11.2 will comply with the requirements of Section 409A of the Code
with respect to Awards granted to U.S. Taxpayers.

 

		11.3	Reorganization of Corporation’s Capital

 

Should the Corporation effect a subdivision or
consolidation of Shares or any similar capital reorganization or a payment of a stock dividend (other than a stock dividend that is in
lieu of a cash dividend), or should any other change be made in the capitalization of the Corporation that does not constitute a Change
in Control and that would warrant the amendment or replacement of any existing Awards in order to adjust the number of Shares that may
be acquired on the vesting of outstanding Awards and/or the terms of any Award in order to preserve proportionately the rights and obligations
of the Participants holding such Awards, the Plan Administrator will, subject to the prior approval of the Exchange, authorize such steps
to be taken as it may consider to be equitable and appropriate to that end.

 

		11.4	Other Events Affecting the Corporation

 

In the event of an amalgamation, combination,
arrangement, merger or other transaction or reorganization involving the Corporation and occurring by exchange of Shares, by sale or lease
of assets or otherwise, that does not constitute a Change in Control and that warrants the amendment or replacement of any existing Awards
in order to adjust the number and/or type of Shares that may be acquired, or by reference to which such Awards may be settled, on the
vesting of outstanding Awards and/or the terms of any Award in order to preserve proportionately the rights and obligations of the Participants
holding such Awards, the Plan Administrator will, subject to the prior approval of the Exchange, authorize such steps to be taken as it
may consider to be equitable and appropriate to that end.

 

		11.5	Immediate Acceleration of Awards

 

In taking any of the steps provided in Sections
11.3 and 11.4, the Plan Administrator will not be required to treat all Awards similarly and where the Plan Administrator determines that
the steps provided in Sections 11.3 and 11.4 would not preserve proportionately the rights, value and obligations of the Participants
holding such Awards in the circumstances or otherwise determines that it is appropriate, the Plan Administrator may, but is not required
to, permit the immediate vesting of any unvested Awards, provided that any such adjustments or acceleration of vesting undertaken pursuant
to sections 11.3, 11.4 or 11.5 shall be undertaken only to the extent they will not result in adverse tax consequences under Section 409A
of the Code.

 

		11.6	Issue by Corporation of Additional Shares

 

Except as expressly provided in this Article 11,
neither the issue by the Corporation of shares of any class or securities convertible into or exchangeable for shares of any class, nor
the conversion or exchange of such shares or securities, affects, and no adjustment by reason thereof is to be made with respect to the
number of Shares that may be acquired as a result of a grant of Awards.

 

    	 	- 27 -	 

     

    

 

		11.7	Fractions

 

No fractional Shares will be issued pursuant to
an Award. Accordingly, if, as a result of any adjustment under this Article 11 or a dividend equivalent, a Participant would become
entitled to a fractional Share, the Participant has the right to acquire only the adjusted number of full Shares and no payment or other
adjustment will be made with respect to the fractional Shares, which shall be disregarded.

 

ARTICLE 12 

U.S. TAXPAYERS

 

		12.1	Provisions for U.S. Taxpayers

 

Options granted under this Plan to U.S. Taxpayers
may be non–qualified stock options or incentive stock options qualifying under Section 422 of the Code (“ISOs”).
Each Option shall be designated in the Award Agreement as either an ISO or a non–qualified stock option. If an Award Agreement fails
to designate an Option as either an ISO or non–qualified stock option, the Option will be a non–qualified stock option. The
Corporation shall not be liable to any Participant or to any other Person if it is determined that an Option intended to be an ISO does
not qualify as an ISO. Non– qualified stock options will be granted to a U.S. Taxpayer only if (i) such U.S. Taxpayer performs
services for the Corporation or any corporation or other entity in which the Corporation has a direct or indirect controlling interest
or otherwise has a significant ownership interest, as determined under Section 409A, such that the Option will constitute an option
to acquire “service recipient stock” within the meaning of Section 409A, or (ii) such option otherwise is
exempt from Section 409A.

 

		12.2	ISOs

 

Subject to any limitations in Section 3.6,
the aggregate number of Shares reserved for issuance in respect of granted ISOs shall not exceed 10,000,000 Shares, and the terms and
conditions of any ISOs granted to a U.S. Taxpayer on the Date of Grant hereunder, including the eligible recipients of ISOs, shall be
subject to the provisions of Section 422 of the Code, and the terms, conditions, limitations and administrative procedures established
by the Plan Administrator from time to time in accordance with this Plan. At the discretion of the Plan Administrator, ISOs may only
be granted to an individual who is an employee of the Corporation, or of a “parent corporation” or “subsidiary corporation”
of the Corporation, as such terms are defined in Sections 424(e) and (f) of the Code.

 

		12.3	ISO Grants to 10% Shareholders

 

Notwithstanding anything to the contrary in this
Plan, if an ISO is granted to a person who owns shares representing more than 10% of the voting power of all classes of shares of the
Corporation or of a “parent corporation” or “subsidiary corporation”, as such terms are defined in Section 424(e) and
(f) of the Code, on the Date of Grant, the term of the Option shall not exceed five years from the time of grant of such Option and
the Exercise Price shall be at least 110% of the Market Price of the Shares subject to the Option.

 

    	 	- 28 -	 

     

    

 

		12.4	$100,000 Per Year Limitation for ISOs

 

To the extent the aggregate Market Price as at
the Date of Grant of the Shares for which ISOs are exercisable for the first time by any person during any calendar year (under all plans
of the Corporation and any “parent corporation” or “subsidiary corporation”, as such terms are defined in Section 424(e) and
(f) of the Code) exceeds US$100,000, such excess ISOs shall be treated as non–qualified stock options.

 

		12.5	Disqualifying Dispositions

 

Each person awarded an ISO under this Plan shall
notify the Corporation in writing immediately after the date he or she makes a disposition or transfer of any Shares acquired pursuant
to the exercise of such ISO if such disposition or transfer is made (a) within two years from the Date of Grant or (b) within
one year after the date such person acquired the Shares. Such notice shall specify the date of such disposition or other transfer and
the amount realized, in cash, other property, assumption of indebtedness or other consideration, by the person in such disposition or
other transfer. The Corporation may, if determined by the Plan Administrator and in accordance with procedures established by it, retain
possession of any Shares acquired pursuant to the exercise of an ISO as agent for the applicable person until the end of the later of
the periods described in

 

(a) or (b) above, subject to complying
with any instructions from such person as to the sale of such Shares.

 

		12.6	Section 409A of the Code

 

		(a)	This Plan will be construed and interpreted to be exempt from, or where not so exempt, to comply with Section 409A of the Code
to the extent required to preserve the intended tax consequences of this Plan. Any reference in this Plan to Section 409A of the
Code shall also include any regulation promulgated thereunder or any other formal guidance issued by the Internal Revenue Service with
respect to Section 409A of the Code. Each Award shall be construed and administered such that the Award either (A) qualifies
for an exemption from the requirements of Section 409A of the Code or (B) satisfies the requirements of Section 409A of
the Code. If an Award is subject to Section 409A of the Code, (I) distributions shall only be made in a manner and upon an event
permitted under section 409A of the Code, (II) payments to be made upon a termination of employment or service shall only be made
upon a “separation from service” under Section 409A of the Code,

 

(III) unless the Award specifies
otherwise, each installment payment shall be treated as a separate payment for purposes of Section 409A of the Code, and (IV) in
no event shall a Participant, directly or indirectly, designate the calendar year in which a distribution is made except in accordance
with Section 409A of the Code. To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Section 409A
of the Code, the Award will be granted, paid, settled or deferred in a manner that will meet the requirements of Section 409A of
the Code, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under
Section 409A of the Code. Payment of any Award that is intended to be exempt from Section 409A of the Code as a short- term
deferral shall in all events be paid by no later than March 15 of the year

 

    	 	- 29 -	 

     

    

 

following the year of the applicable vesting
event. The Corporation reserves the right to amend this Plan to the extent it reasonably determines is necessary in order to preserve
the intended tax consequences of this Plan in light of Section 409A of the Code. In no event will the Corporation or any of its subsidiaries
or Affiliates be liable for any tax, interest or penalties that may be imposed on a Participant under Section 409A of the Code or
any damages for failing to comply with Section 409A of the Code.

 

		(b)	All terms of the Plan that are undefined or ambiguous must be interpreted in a manner that complies with Section 409A of the
Code if necessary to comply with Section 409A of the Code.

 

		(c)	The Plan Administrator, in its sole discretion, may permit the acceleration of the time or schedule of payment of a U.S. Taxpayer’s
vested Awards in the Plan under circumstances that constitute permissible acceleration events under Section 409A of the Code.

 

		(d)	Notwithstanding any provisions of the Plan to the contrary, in the case of any “specified employee” within the meaning
of Section 409A of the Code who is a

 

U.S. Taxpayer, distributions of non–qualified
deferred compensation under Section 409A of the Code made in connection with a “separation from service” within the meaning
set forth in Section 409A of the Code may not be made prior to the date which is six months after the date of separation from service
(or, if earlier, the date of death of the U.S. Taxpayer). Any amounts subject to a delay in payment pursuant to the preceding sentence
shall be paid as soon practicable following such six–month anniversary of such separation from service.

 

		12.7	Section 83(b) Election

 

If a Participant makes an election pursuant to
Section 83(b) of the Code with respect to an Award of Shares subject to vesting or other forfeiture conditions, the Participant
shall be required to promptly file a copy of such election with the Corporation.

 

		12.8	Application of Article 12 to U.S. Taxpayers

 

For greater certainty, the provisions of this
Article 12 shall only apply to U.S. Taxpayers.

 

ARTICLE 13 

AMENDMENT, SUSPENSION OR TERMINATION OF THE
PLAN

 

		13.1	Amendment, Suspension, or Termination of the Plan

 

The Plan Administrator may from time to time,
without notice and without approval of the holders of voting shares of the Corporation, amend, modify, change, suspend or terminate the
Plan or any Awards granted pursuant to the Plan as it, in its discretion determines appropriate, provided, however, that:

 

    	 	- 30 -	 

     

    

 

		(a)	no such amendment, modification, change, suspension or termination of the Plan or any Awards granted hereunder may materially impair
any rights of a Participant or materially increase any obligations of a Participant under the Plan without the consent of the Participant,
unless the Plan Administrator determines such adjustment is required or desirable in order to comply with any applicable Securities Laws
or Exchange requirements; and

 

		(b)	any amendment that would cause an Award held by a U.S. Taxpayer to be subject to income inclusion under Section 409A of the Code
shall be null and void ab initio with respect to the U.S. Taxpayer unless the consent of the U.S. Taxpayer is obtained.

 

		13.2	Shareholder Approval

 

Notwithstanding Section 13.1 and subject to any rules of
the Exchange, approval of the holders of Shares shall be required for any amendment, modification or change that:

 

		(a)	increases the percentage of Shares reserved for issuance under the Plan, except pursuant to the provisions under Article 11 which
permit the Plan Administrator to make equitable adjustments in the event of transactions affecting the Corporation or its capital;

 

		(b)	increases or removes the 10% limits on Shares issuable or issued to Insiders as set forth in Section 3.7;

 

		(c)	reduces the exercise price of an Option Award (for this purpose, a cancellation or termination of an Option Award of a Participant
prior to its Expiry Date for the purpose of reissuing an Option Award to the same Participant with a lower exercise price shall be treated
as an amendment to reduce the exercise price of an Option Award) except pursuant to the provisions in the Plan which permit the Plan Administrator
to make equitable adjustments in the event of transactions affecting the Corporation or its capital;

 

		(d)	extends the term of an Option Award beyond the original Expiry Date (except where an Expiry Date would have fallen within a blackout
period applicable to the Participant or within 10 Business Days following the expiry of such a blackout period);

 

		(e)	permits an Option Award to be exercisable beyond 10 years from its Date of Grant (except where an Expiry Date would have fallen within
a blackout period of the Corporation);

 

		(f)	permits Awards to be transferred to a Person in circumstances other than those specified under Section 3.9;

 

		(g)	changes the eligible participants of the Plan; or

 

    	 	- 31 -	 

     

    

 

		(h)	deletes or reduces the range of amendments which require approval of shareholders under this Section 13.2.

 

		13.3	Permitted Amendments

 

Without limiting the generality of Section 13.1,
but subject to Section 13.2, the Plan Administrator may, without shareholder approval, at any time or from time to time, amend the
Plan for the purposes of:

 

		(a)	making any amendments to the general vesting provisions of each Award;

 

		(b)	making any amendments to the provisions set out in Article 10;

 

		(c)	making any amendments to add covenants of the Corporation for the protection of Participants, as the case may be, provided that the
Plan Administrator shall be of the good faith opinion that such additions will not be prejudicial to the rights or interests of the Participants,
as the case may be;

 

		(d)	making any amendments not inconsistent with the Plan as may be necessary or desirable with respect to matters or questions which,
in the good faith opinion of the Plan Administrator, having in mind the best interests of the Participants, it may be expedient to make,
including amendments that are desirable as a result of changes in law in any jurisdiction where a Participant resides, provided that the
Plan Administrator shall be of the opinion that such amendments and modifications will not be prejudicial to the interests of the Participants
and Directors; or

 

		(e)	making such changes or corrections which, on the advice of counsel to the Corporation, are required for the purpose of curing or correcting
any ambiguity or defect or inconsistent provision or clerical omission or mistake or manifest error, provided that the Plan Administrator
shall be of the opinion that such changes or corrections will not be prejudicial to the rights and interests of the Participants.

 

ARTICLE 14 

MISCELLANEOUS

 

		14.1	Legal Requirement

 

The Corporation is not obligated to grant any
Awards, issue any Shares or other securities, make any payments or take any other action if, in the opinion of the Plan Administrator,
in its sole discretion, such action would constitute a violation by a Participant or the Corporation of any provision of any applicable
statutory or regulatory enactment of any government or government agency or the requirements of any Exchange upon which the Shares may
then be listed.

 

		14.2	No Other Benefit

 

No amount will be paid to, or in respect of, a
Participant under the Plan to compensate for a downward fluctuation in the price of a Share, nor will any other form of benefit be conferred
upon, or in respect of, a Participant for such purpose.

 

    	 	- 32 -	 

     

    

 

		14.3	Rights of Participant

 

No Participant has any claim or right to be granted
an Award and the granting of any Award is not to be construed as giving a Participant a right to remain as an Employee, Consultant or
Director. No Participant has any rights as a shareholder of the Corporation in respect of Shares issuable pursuant to any Award until
the allotment and issuance to such Participant, or as such Participant may direct, of certificates representing such Shares.

 

		14.4	Corporate Action

 

Nothing contained in this Plan or in an Award
shall be construed so as to prevent the Corporation from taking corporate action which is deemed by the Corporation to be appropriate
or in its best interest, whether or not such action would have an adverse effect on this Plan or any Award.

 

		14.5	Conflict

 

In the event of any conflict between the provisions
of this Plan and an Award Agreement, the provisions of the Award Agreement shall govern. In the event of any conflict between or among
the provisions of this Plan or any Award Agreement, on the one hand, and a Participant’s employment agreement with the Corporation
or a subsidiary of the Corporation, as the case may be, on the other hand, the provisions of the employment agreement or other written
agreement shall prevail.

 

		14.6	Anti–Hedging Policy

 

By accepting an Award each Participant acknowledges
that he or she is restricted from purchasing financial instruments such as prepaid variable forward contracts, equity swaps, collars,
or units of exchange funds that are designed to hedge or offset a decrease in market value of Awards.

 

		14.7	Participant Information

 

Each Participant shall provide the Corporation
with all information (including personal information) required by the Corporation in order to administer the Plan. Each Participant acknowledges
that information required by the Corporation in order to administer the Plan may be disclosed to any custodian appointed in respect of
the Plan and other third parties, and may be disclosed to such persons (including persons located in jurisdictions other than the Participant’s
jurisdiction of residence), in connection with the administration of the Plan. Each Participant consents to such disclosure and authorizes
the Corporation to make such disclosure on the Participant’s behalf.

 

		14.8	Participation in the Plan

 

The participation of any Participant in the Plan
is entirely voluntary and not obligatory and shall not be interpreted as conferring upon such Participant any rights or privileges other
than those rights and privileges expressly provided in the Plan. In particular, participation in the Plan does not constitute a condition
of employment or engagement nor a commitment on the part of the Corporation to ensure the continued employment or engagement of such Participant.
The Plan does not provide any guarantee against any loss which may result from fluctuations in the market value

 

    	 	- 33 -	 

     

    

 

of the Shares. The Corporation does not assume
responsibility for the income or other tax consequences for the Participants and Directors and they are advised to consult with their
own tax advisors.

 

		14.9	International Participants

 

With respect to Participants who reside or work
outside Canada and the United States, the Plan Administrator may, in its sole discretion, amend, or otherwise modify, without shareholder
approval, the terms of the Plan or Awards with respect to such Participants in order to conform such terms with the provisions of local
law, and the Plan Administrator may, where appropriate, establish one or more sub–plans to reflect such amended or otherwise modified
provisions.

 

		14.10	Successors and Assigns

 

The Plan shall be binding on all successors and
assigns of the Corporation and its subsidiaries.

 

		14.11	General Restrictions or Assignment

 

Except as required by law, the rights of a Participant
under the Plan are not capable of being assigned, transferred, alienated, sold, encumbered, pledged, mortgaged or charged and are not
capable of being subject to attachment or legal process for the payment of any debts or obligations of the Participant unless otherwise
approved by the Plan Administrator.

 

		14.12	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.

 

		14.13	Notices

 

All written notices to be given by a Participant
to the Corporation shall be delivered personally, e– mail or mail, postage prepaid, addressed as follows:

 

Cardiol Therapeutics Inc. 

602-2265 Upper Middle Road East Oakville,
ON 

L6H 0G5

 

Attention: Director, Finance

dan.crandall@cardiolrx.com

 

All notices to a Participant will be addressed
to the principal address of the Participant on file with the Corporation. Either the Corporation or the Participant may designate a different
address by written notice to the other. Such notices are deemed to be received, if delivered personally or by e–mail, on the date
of delivery, and if sent by mail, on the fifth Business Day following the date of mailing. Any notice given by either the Participant
or the Corporation is not binding on the recipient thereof until received.

 

    	 	- 34 -	 

     

    

 

		14.14	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 Ontario and the federal laws of Canada
applicable therein, without any reference to conflicts of law rules.

 

		14.15	Submission to Jurisdiction

 

The Corporation and each Participant irrevocably
submits to the exclusive jurisdiction of the courts of competent jurisdiction in the Province of Ontario in respect of any action or proceeding
relating in any way to the Plan, including, without limitation, with respect to the grant of Awards and any issuance of Shares made in
accordance with the Plan.

 

    	 	- 35 -	 

     

    

 

SCHEDULE A 

CARDIOL THERAPEUTICS INC.

 

OMNIBUS EQUITY INCENTIVE PLAN

 (THE “PLAN”)

 

ELECTION NOTICE

 

All capitalized terms used herein but not otherwise defined shall have
the meanings ascribed to them in the Plan.

 

Pursuant to the Plan, I hereby elect
to participate in the grant of DSUs pursuant to Article 7 of the Plan and to receive     %
of my Cash Fees in the form of DSUs.

 

If I am a U.S. Taxpayer, I hereby further elect for any DSUs subject
to this Election Notice to be settled on the later of (i) my “separation from service” (within the meaning of Section 409A)
or

(ii)          .
I confirm that:

 

		(a)	I have received and reviewed a copy of the terms of the Plan and agreed to be bound by them.

 

		(b)	I recognize that when DSUs credited pursuant to this election are redeemed in accordance with the terms
of the Plan, income tax and other withholdings as required will arise at that time. Upon redemption of the DSUs, the Corporation will
make all appropriate withholdings as required by law at that time.

 

		(c)	The value of DSUs is based on the value of the Shares of the Corporation and therefore is not guaranteed.

 

		(d)	To the extent I am a U.S. taxpayer, I understand that this election is irrevocable for the calendar
year to which it applies and that any revocation or termination of this election after the expiration of the election period will not
take effect until the first day of the calendar year following the year in which I file the revocation or termination notice with the
Corporation.

 

The foregoing is only a brief outline of certain key provisions of
the Plan. For more complete information, reference should be made to the Plan’s text.

  

Date:

 

	 	 
	 	(Name of Participant)
	 	 
	 	 
	 	(Signature of Participant)

 

    	 	 	 

     

    

  

SCHEDULE B

 

CARDIOL THERAPEUTICS INC.

 

OMNIBUS EQUITY INCENTIVE PLAN

(THE “PLAN”)

 

ELECTION TO TERMINATE RECEIPT OF ADDITIONAL
DSUS

 

All capitalized terms used herein but not otherwise
defined shall have the meanings ascribed to them in the Plan.

 

Notwithstanding my previous election in the form
of Schedule A to the Plan, I hereby elect that no portion of the Cash Fees accrued after the date hereof shall be paid in DSUs in
accordance with Article 7 of the Plan.

 

I understand that the DSUs already granted under
the Plan cannot be redeemed except in accordance with the Plan.

 

I confirm that I have received and reviewed a
copy of the terms of the Plan and agree to be bound by them.

 

Date:

 

 

	 	 
	 	(Name of Participant)
	 	 
	 	 
	 	(Signature of Participant)

 

 

Note: An election to terminate receipt of additional DSUs can
only be made by a Participant once in a calendar year.

 

    	 	 	 

     

    

 

 

SCHEDULE C

CARDIOL THERAPEUTICS INC.

 

OMNIBUS EQUITY INCENTIVE PLAN

(THE “PLAN”)

 

ELECTION TO TERMINATE RECEIPT OF ADDITIONAL
DSUS

(U.S. TAXPAYERS)

 

All capitalized terms used herein but not otherwise
defined shall have the meanings ascribed to them in the Plan.

 

Notwithstanding my previous election in the form
of Schedule A to the Plan, I hereby elect that no portion of the Cash Fees accrued after the effective date of this termination notice
shall be paid in DSUs in accordance with Article 5 of the Plan.

 

I understand that this election to terminate receipt
of additional DSUs will not take effect until the first day of the calendar year following the year in which I file this termination notice
with the Corporation.

 

I understand that the DSUs already granted under
the Plan cannot be redeemed except in accordance with the Plan.

 

I confirm that I have received and reviewed a
copy of the terms of the Plan and agree to be bound by them.

 

Date:

  

 

	 	 
	 	(Name of Participant)
	 	 
	 	 
	 	(Signature of Participant)

 

 

Note: An election to terminate receipt of additional DSUs can
only be made by a Participant once in a calendar year.

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