Document:

Exhibit 4.1

 

AGNICO EAGLE MINES LIMITED

 

DIVIDEND REINVESTMENT
 AND SHARE PURCHASE PLAN

 

Introduction

 

This dividend reinvestment plan (the “Plan”) is being offered to the registered or beneficial holders (the “Shareholders”) of common shares (“Common Shares”) of Agnico Eagle Mines Limited (the “Corporation”) who reside in Canada or the United States (or as otherwise set out below under “Eligible Participants”) as an alternative to the receipt of regular cash dividends.  Under the Plan, Shareholders can automatically reinvest cash dividends paid on their Common Shares in additional Common Shares at 95% of the Average Market Price (as defined below) and invest optional cash payments in additional Common Shares at 100% of the Average Market Price.  Optional cash payments can be made in a minimum amount of U.S.$500 and a maximum amount of U.S.$20,000 per fiscal year, or the Canadian dollar equivalents of such sums, as set out below under “Optional Cash Purchases”.

 

Full investment of cash dividends is possible under the Plan because the Plan permits fractions of Common Shares as well as whole Common Shares to be purchased and held for Plan participants.  In addition, dividends in respect of whole and fractional Common Shares held in the Plan will be automatically reinvested in further Common Shares.  Common Shares issued under the Plan will be issued directly from the treasury of the Corporation.

 

No Commissions or Administrative Costs

 

No brokerage commissions are payable in connection with the purchase of Common Shares under the Plan and all administrative costs will be borne by the Corporation.

 

Use of Proceeds

 

Proceeds received by the Corporation upon the purchase of new Common Shares under the Plan will form part of the working capital of the Corporation and will be used for general corporate purposes.

 

Administration

 

Computershare Trust Company of Canada (the “Agent”) has been retained to act as the Agent for the participants under the Plan pursuant to an agreement which may be terminated by the Corporation or the Agent at any time.  The Corporation will promptly pay over to the Agent, on behalf of the participants in the Plan, all cash dividends due on their Common Shares and the Agent will purchase new Common Shares for the participants directly from the treasury of the Corporation on the dividend payment date.  New Common Shares purchased under the Plan will be registered in the name of the Agent, or its nominee, as Agent for the participants in the Plan.

 

Eligible Participants

 

Except as otherwise provided below, any registered holder of Common Shares who is a resident of Canada or the United States is eligible to join in the Plan at any time.

 

 

Beneficial owners of Common Shares whose Common Shares are not registered in their own names may participate in the Plan only (1) by transferring such Common Shares into their own name or into a specific segregated registered account such as a numbered account with a bank, trust company or broker, or (2) if such Common Shares are held through CDS Clearing and Depository Services or The Depository Trust & Clearing Corporation (collectively, the “Depositories” or, individually, a “Depository”), by enrolling in the Plan through a participant in either such Depository (a “Depository Participant”).

 

Beneficial owners of Common Shares whose Common Shares are held in a numbered nominee account with a bank, trust company or broker may arrange to enrol such account in the Plan.  If a beneficial owner holds Common Shares in more than one such account, or in such an account or accounts as well as in such owner’s own name, such Common Shares may be dealt with separately with respect to the Plan.  For example, an owner can elect to participate in the Plan in respect of the Common Shares held in one account but not in respect of those held in another.  Furthermore, if beneficial owners of Common Shares hold such shares through the facilities of a Depository, they can arrange to treat each of their Common Shares separately with respect to the Plan.  For example, such beneficial owners can choose to participate in the Plan in respect of some of the Common Shares but not in respect of others.

 

Shareholders resident outside Canada and the United States may participate in the Plan unless prohibited by the law of the country in which they reside.  Cash dividends to be reinvested for shareholders resident outside Canada will be reduced by the amount of the applicable Canadian withholding tax as described below under “Summary of Principal Canadian Federal Income Tax Considerations”.

 

Enrolment

 

General

 

Shareholders may join the Plan by completing the Reinvestment Enrollment — Participant Declaration Form attached to the Plan, signing it and returning it to the Agent within the applicable deadlines set out below.  Additional Forms may be obtained from the Agent at any time upon written request addressed to the Agent.  The Corporation may deny the right to participate in the Plan to any person or terminate the participation of any participant in the Plan if the Corporation deems it advisable under any laws or regulations.

 

The Reinvestment Enrollment — Participant Declaration Form directs the Corporation to forward to the Agent all of the participating Shareholder’s cash dividends received on the Common Shares and directs the Agent to invest such dividends in the purchase of new Common Shares on behalf of the shareholder.  If a beneficial owner holds Common Shares in, for example, more than one brokerage account, and wishes to participate in the Plan in respect of Common Shares in all such accounts, a separate Reinvestment Enrollment — Participant Declaration Form must be completed and returned to the Agent by the registered holder of the Common Shares in respect of each such account.

 

Depository Participants

 

Beneficial owners of Common Shares whose Common Shares are held through a Depository may enrol through the Depository Participant that currently holds their Common

 

2

 

Shares, provided they do so in sufficient time for notice to be provided to the Agent within the applicable deadlines set out below.

 

Effective Date of Participation

 

Following receipt by the Agent of a properly completed Reinvestment Enrolment — Participant Declaration Form, participation in the Plan becomes effective on the next record date for any dividend declared on the Common Shares provided that the Reinvestment Enrolment — Participant Declaration Form is received not less than five business days before such record date.  Dividend record dates are normally in the first week of the last month of each quarter in which the Corporation declares a dividend.

 

Ongoing Enrolment

 

Once a Shareholder has enrolled in the Plan, participation continues automatically unless terminated in accordance with the terms of the Plan.  However, participants are advised that Common Shares acquired outside of the Plan may not be automatically enrolled in the Plan.  Participants should contact the Agent or the Depository Participant, if applicable, to confirm which of the Common Shares owned by them are enrolled in the Plan.

 

Optional Cash Purchases

 

If participants in the Plan choose to participate in the optional cash payment feature of the Plan, they must confirm on the Optional Cash Payment (OCP) — Participant Declaration Form that not more than U.S.$20,000 (or the Canadian dollar equivalent of such sum) in the aggregate per fiscal year is being paid by, or on behalf of, any registered or beneficial owner in respect of the optional investment of cash under the Plan.  Any determination of an equivalent amount will be based on the noon rate of exchange reported by the Agent’s principal banker as of such date, calculated on the date of bank deposit by the Agent.

 

There is no obligation on a participant to make optional cash payments nor to make all such payments in the same amount.  The aggregate number of Common Shares which may be purchased by all participants in any fiscal year of the Corporation under the optional cash payments may not exceed two percent of the outstanding Common Shares at the beginning of the fiscal year.  If necessary, available Common Shares will be allocated by the Agent on a pro rata basis to avoid exceeding this limit.

 

Optional cash payments may be made when enrolling in the Plan by enclosing a cheque or money order (in United States or Canadian currency), made payable to the Agent or, where applicable, to the Depository Participant, with the completed Optional Cash Payment (OCP) — Participant Declaration Form.  Thereafter, optional cash payments may be made by using the Optional Cash Purchase (OCP) — Participant Declaration Form enclosed with each statement of account sent to participants and enclosing a cheque or money order in the amount of the purchase.  Optional cash payments will be used to purchase Common Shares on the applicable dividend payment date.  Optional cash payments must be received by the Agent not less than five business days before any dividend record date.  Optional cash payments received by the Agent on or after this date will be returned to the participant.  No interest will be paid to participants on any funds held for investment pursuant to the Plan.  A participant may cancel an

 

3

 

optional cash payment by written notice received by the Agent on or before the second business day preceding the dividend payment date.

 

Payments received in United States currency will be converted to Canadian currency at the noon rate of exchange of the principal banker of the Agent on the date of bank deposit by the Agent.  Payment in currencies other than Canadian or United States dollars are not acceptable.

 

Price and Valuation of New Common Shares

 

The price at which the Agent will purchase new Common Shares from the Corporation on the dividend payment dates with cash dividends on Common Shares will be 95% of the weighted average of the trading prices for a board lot of Common Shares on The Toronto Stock Exchange (the “Exchange”) for a period of 20 trading days on which at least a board lot was traded immediately preceding a dividend payment date (the “Average Market Price”).

 

The price at which the Agent will purchase new Common Shares from the Corporation on the dividend payment dates with eligible funds other than cash dividends on Common Shares will be 100% of the Average Market Price.

 

There will be no brokerage commission on the purchase of new Common Shares under the Plan as the Common Shares will be purchased directly from the Corporation.

 

Participants’ Accounts and Statements

 

The Agent will maintain a separate account for each participant.  Where a participating beneficial owner holds his or her Common Shares through a Depository, the Agent will maintain an account for and in the name of the Depository and the appropriate Depository Participant will provide each such participating beneficial owner with confirmation of his or her purchase of Common Shares through the Plan.

 

On each dividend payment date, the Corporation will advise the Agent of the prices for the new Common Shares to be purchased (whether by way of dividend reinvestment or optional cash purchase) by the Agent on behalf of the participants and the number of new Common Shares to be issued.  Each participant’s account will be credited by the Agent with that number of Common Shares purchased for the participant, including fractions computed to four decimal places, which is equal to the cash dividends or optional cash payment to be invested for each participant divided by the applicable purchase price for such Common Shares (as set out above under “Price and Valuation of New Common Shares”).  In like fashion, the accounts of each participating beneficial owner of Common Shares will be credited with that number of Common Shares purchased on their behalf through the facilities of the relevant Depository and Depository Participant.

 

As soon as practicable following each dividend payment date, the Agent (or, where appropriate, the relevant Depository Participant) will send statements of account to participants setting out the number of whole and fractional Common Shares acquired by reinvestment of cash dividends and, where applicable, by optional purchases (“Plan Shares”).

 

4

 

These statements are a participant’s only record of the cost of each purchase of Plan Shares, and accordingly, should be retained by such participant for income tax purposes.  In addition, each participant will receive annually the appropriate tax information for reporting dividend income.

 

Generally, Plan Shares will be registered in the name of the Agent or its nominee and held by the Agent for a participant under the Plan.  For participants holding Plan Shares through a Depository, such Plan Shares will be registered in the name of the relevant Depository and held for the benefit of its Depository Participants under the Plan.  No share certificates will be issued for Plan Shares acquired under the Plan.  Plan Shares may not be sold, transferred, pledged or otherwise disposed of by the participant while such Plan Shares remain in the Plan.  A participant who wishes to sell, transfer, pledge or dispose of any Plan Shares must withdraw them from the Plan by instructing the Agent to issue, in the name of the participant, a share certificate representing such Plan Shares.

 

A participant may, at any time upon written request to the Agent, have share certificates issued and registered in the participant’s name for any number of whole Plan Shares owned by such participant without terminating participation in the Plan.  Otherwise, share certificates will not be issued to participants for Plan Shares.  No certificate for a fraction of a Plan Share will be issued.

 

Termination of Participation

 

General

 

A participant may terminate participation in the Plan at any time by written notice to the Agent (or, where appropriate, to a Depository Participant, as set out below).  The Agent will then settle the participant’s account by issuing a share certificate for the number of whole Plan Shares standing to the credit of the participant and by purchasing for cash any fraction of a Plan Share.  The amount of the payment for any such fraction will be based on the last price paid by the Agent for such new Common Shares purchased out of cash dividends to be reinvested or out of the optional cash investment, where applicable.  If the notice is received by the Agent after a dividend record date but prior to a dividend payment date, termination and settlement of the participant’s account will not take place until after the dividend payment date.

 

Participation in the Plan will also be terminated upon receipt by the Agent of written notice of the death of a participant.  Certificates for Plan Shares will be issued in the name of the deceased participant and/or in the name of the estate of the deceased participant, as appropriate, and the Agent will send such certificates and cash payment for any fraction of a Plan Share to the representative of the deceased participant.

 

Upon termination of participation, a participant may request that all Plan Shares held for the participant’s account be sold.  Such sale will be made by the Agent, through a registered dealer or stockbroker designated by the Agent, as soon as practicable following receipt by the Agent of instructions to do so.  The proceeds of such sale, less brokerage commissions and transfer taxes, if any, will be paid to the participant by the Agent.  Plan Shares sold pursuant to such a request may be commingled with Plan Shares of other participants, in which case the proceeds to each participant will be based upon the average sale price of all Plan Shares so

 

5

 

commingled.  With respect to any fraction of a Plan Share, the Agent will purchase such fraction for cash at a price determined in the same manner as in the case of whole Plan Shares sold for the participant.

 

All payments of cash under the Plan will be made in either Canadian or United States currency.  Unless a participant requests otherwise in writing, the Agent will make payments in Canadian currency where the participant has a Canadian mailing address and in United States currency where the participant has a non-Canadian mailing address, in each case as such address is shown on the records of the Agent.

 

Depository Participants

 

Where participants hold their Common Shares or Plan Shares through a Depository Participant and Depository, any notice or actions to be delivered to or performed by the Agent in this section must be delivered to or performed by the relevant Depository Participant.  For greater certainty, if notice or termination is not received by the relevant Depository at least five business days before a dividend record date, termination will not occur until after the next dividend record date and after investment has been completed.

 

Rights Offerings, Stock Splits and Stock Dividends

 

In the event that the Corporation makes available to its Shareholders rights to subscribe for additional shares or other securities, rights certificates will be issued to participants for their whole Plan Shares.  No such rights will be made available in respect of fractions of Plan Shares.  Instead, the Agent will sell any rights relating to such fractions at a time and price determined by the Agent and participants will be paid their proportionate interests in the proceeds of such sale.

 

Any Common Shares distributed pursuant to a stock dividend or a stock split on Plan Shares will be retained by the Agent and credited proportionately to the accounts of participants.

 

In the event of a change, reclassification or conversion of the Common Shares into other shares or securities or of any further change, reclassification or conversion of such other shares or securities, into other shares or securities, the Plan will continue to apply to the shares or securities resulting from that event and references herein to the Common Shares and to Plan Shares will be deemed to be references to the shares or securities resulting from that event.

 

Voting of Plan Shares

 

Whole Plan Shares held on the record date for a vote of Shareholders may be voted in the same manner as the participant’s Common Shares of record may be voted, either in person or by proxy.

 

Responsibilities of the Corporation and the Agent

 

Neither the Corporation nor the Agent is liable for any act, or for any good faith omission to act, including, without limitation, for liability:

 

6

 

(a)                                 arising out of a failure to terminate a participant’s account upon such participant’s death prior to receipt of notice in writing of such death; or

 

(b)                                 relating to the prices at which Common Shares are purchased for the participant’s account and the times at which such purchases are made.

 

PARTICIPANTS SHOULD RECOGNIZE THAT NEITHER THE CORPORATION NOR THE AGENT CAN ASSURE A GAIN OR PROTECT AGAINST LOSS AS A RESULT OF THEIR HOLDING PLAN SHARES.

 

Amendment, Suspension or Termination of the Plan

 

The Corporation reserves the right to amend, suspend or terminate the Plan at any time.  The Corporation will send written notice to the participants of any material amendment, suspension or termination.  Any amendment of the Plan which materially affects the rights of participants in the Plan will be subject to the prior approval of the Exchange.  If the Plan is terminated, the Agent will remit to participants certificates registered in their name for whole Plan Shares, together with the proceeds from the sale of any fractions of Plan Shares.  If the Plan is suspended, subsequent dividends on Plan Shares will be paid in cash as will the amount of any optional cash payments which are not invested as of the effective date of such suspension.

 

Effective Date

 

The Plan is effective for dividends payable after June 30, 1999, as updated on July 27, 2011, July 25, 2012 and August 20, 2013.

 

Notices

 

All notices required to be given to participants under the Plan will be mailed to participants at the address shown on the records of the Agent.

 

Written communications to the Agent should be addressed to:

 

Computershare Trust Company of Canada
 100 University Avenue, 8th Floor
 Toronto, Ontario M5J 2Y1

 

Attention:  Dividend Reinvestment Services
 Facsimile No.: 416.263.9394

 

7

 

CANADIAN FEDERAL INCOME TAX CONSIDERATIONS

 

Summary of Principal Canadian Federal Income Tax Considerations

 

The following is a general summary of the principal Canadian federal income tax considerations generally applicable to participants in the Plan.  It is assumed for the purposes of this summary that the participant deals at arm’s length and is not affiliated with the Corporation and holds Common Shares as capital property.  Generally, Common Shares are considered to be capital property to a holder provided that the holder does not hold the Common Shares in the course of carrying on a business and has not acquired the Common Shares in one or more transactions considered to be an adventure or concern in the nature of trade.  Certain participants resident in Canada whose Common Shares might not otherwise qualify as capital property may, in certain circumstances, make an irrevocable election in accordance with subsection 39(4) of the Income Tax Act (Canada) (the “Tax Act”) to have their Common Shares and every “Canadian security” (as defined in the Tax Act) owned by such participant in the taxation year of the election and in all subsequent taxation years deemed to be capital property.

 

This summary is not applicable to a participant: (i) that is a “financial institution” (within the meaning of the Tax Act) for the purposes of the “mark-to-market” rules contained in the Tax Act; (ii) that is a “specified financial institution” (within the meaning of the Tax Act); (iii) an interest in which would be a “tax shelter investment” (within the meaning of the Tax Act); or (iv) that has elected to report its “Canadian tax results” (as defined in the Tax Act) in a currency other than the Canadian currency.  Any such participant should consult its own tax advisor with respect to an investment in the Common Shares.

 

This summary is based on the current provisions of the Tax Act, the regulations thereunder (the “Regulations”), all specific proposals to amend the Tax Act or the Regulations publicly announced by the Minister of Finance (Canada) prior to the date hereof and the current published administrative practices of the Canada Revenue Agency (the “CRA”).  This summary does not otherwise take into account or anticipate any changes in law, whether by judicial, administrative or legislative decision or action, nor does it take into account provincial, territorial or foreign income tax legislation or considerations, which may differ from those described.  This summary is not exhaustive of all possible Canadian federal income tax consequences that may affect a participant in the Plan.

 

This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular participant, and no representation with respect to the Canadian federal income tax consequences to any particular participant is made.  Consequently, prospective participants are advised to consult their own tax advisors with respect to their particular circumstances.

 

Foreign Exchange

 

For the purposes of the Tax Act, all amounts expressed in a currency other than Canadian dollars relating to the acquisition, holding or disposition of a Common Share, including dividends, adjusted cost base and proceeds of disposition, must be determined in Canadian dollars using the relevant rate of exchange quoted by the Bank of Canada at noon on the day the amount first arose or such other rate of exchange as is acceptable to the CRA.

 

8

 

Residents of Canada

 

The following summary is generally applicable to a participant who, at all relevant times for purposes of the Tax Act, is, or is deemed to be, resident in Canada.

 

Dividends

 

A participant will be subject to tax under the Tax Act on all dividends paid on Common Shares (including where such shares are held of record by the Agent for the account of the participant pursuant to the Plan) which are reinvested in Common Shares under the Plan (as well as on any dividends deemed under the Tax Act to be received on Common Shares) in the same manner as the participant would have been if such dividends had been received directly by the participant.  Such dividends paid to (or deemed to be received by) a participant who is an individual (including most trusts) will be subject to the gross-up and dividend tax credit rules in the Tax Act normally applicable to dividends received from taxable Canadian corporations, including the enhanced gross-up and dividend tax credit in respect of dividends designated by the Corporation as “eligible dividends.”  There may be limitations on the ability of the Corporation to designate dividends as “eligible dividends.”

 

A participant that is a corporation will include such dividends in computing its income and generally will be entitled to deduct the amount of such dividends in computing its taxable income.  A participant that is a “private corporation” or “subject corporation” (as such terms are defined in the Tax Act) may be liable under Part IV of the Tax Act to pay a refundable tax of 33 1/3% of dividends received or deemed to be received on the Common Shares to the extent that such dividends are deductible in computing the participant’s taxable income.

 

The cost for tax purposes to a participant of Common Shares purchased on the reinvestment of dividends or with optional cash payments made by the participant to the Agent will be the Canadian dollar equivalent of the price paid by the Agent for the Common Shares.  The cost of such Common Shares will be averaged with the adjusted cost base of all other Common Shares held by the participant at the time such Common Shares are acquired for purposes of subsequently computing the adjusted cost base of each such Common Share owned by the participant.

 

Dispositions

 

On a disposition or deemed disposition of a Common Share (including by the Agent on behalf of the participant), the participant will realize a capital gain (or capital loss) equal to the amount by which the participant’s proceeds of disposition, net of any reasonable costs of disposition, are greater than (or less than) the participant’s adjusted cost base of the Common Share.  Proceeds of disposition will not include an amount that is otherwise required to be included in the participant’s income.  The payment of cash in respect of any fraction of a Common Share on termination of participation in the Plan will constitute a disposition of such fraction of a Common Share for proceeds of disposition equal to the cash payment.

 

One-half of any capital gains (or capital losses) realized by a participant will be required to be included in computing the participant’s income as a taxable capital gain (or allowable capital loss).  An allowable capital loss will be deductible against a taxable capital gain

 

9

 

realized in the year or in any of the three years preceding the year or any year following the year to the extent and under the circumstances described in the Tax Act.  Capital gains realized by an individual (including certain trusts) may be subject to alternative minimum tax.  A “Canadian-controlled private corporation” (as defined in the Tax Act) may be liable to pay an additional 6 2/3% refundable tax on certain investment income, including taxable capital gains.

 

Under specific rules in the Tax Act, any capital loss realized by a corporation on the disposition of a Common Share may be reduced by the amount of certain dividends which were received or were deemed to have been received on such share.  Similar rules may apply where a corporation is a member of a partnership or a beneficiary of a trust that disposes of such shares or where a trust or partnership of which a corporation is a beneficiary or member is a member of a partnership or beneficiary of a trust that disposes of such shares.  Participants should consult their own tax advisors for specific advice regarding the application of the relevant “stop-loss” provisions in the Tax Act.

 

Non-Residents of Canada

 

The following summary is generally applicable to a participant who, for purposes of the Tax Act and any applicable income tax treaty, is not resident, nor is deemed to be resident, in Canada, and who does not use or hold and is not deemed to use or hold Common Shares in carrying on business in Canada.  Special rules which are not discussed in this summary may apply to a non-resident participant that is an insurer which carries on business in Canada and elsewhere.

 

Dividends

 

Dividends paid or credited or deemed to be paid or credited on Common Shares to a non-resident of Canada (including where such shares are held of record by the Agent for the account of the non-resident pursuant to the Plan) are generally subject to Canadian withholding tax, whether or not such dividends are reinvested under the terms of the Plan.  Under the Tax Act, the rate of withholding tax is 25% of the gross amount of such dividends, which rate may be subject to reduction under the provisions of an applicable tax treaty.  Under the Canada-United States Income Tax Convention (the “U.S. Treaty”), a participant who is resident in the United States for the purposes of the U.S. Treaty and who is entitled to the benefits of such treaty will generally be subject to Canadian withholding tax at a rate of 15% of the amount of such dividends.  In addition, under the U.S. Treaty, dividends may be exempt from Canadian withholding tax if paid to certain participants that are qualifying religious, scientific, literary, educational or charitable tax-exempt organizations, or are qualifying trusts, companies organizations or other arrangements operated exclusively to administer or provide pension, retirement or employee benefits which are exempt from tax in the U.S., and that have complied with specific administrative procedures.  Dividends to be reinvested in Common Shares under the Plan for non-resident participants will be reduced by the amount of any applicable Canadian withholding tax.

 

Dispositions

 

A non-resident participant will not be subject to tax under the Tax Act on any capital gain realized on a disposition of Common Shares unless those Common Shares constitute

 

10

 

“taxable Canadian property” at the time of the disposition and the participant is not entitled to relief under an applicable income tax treaty or convention.

 

Generally, Common Shares will not be taxable Canadian property to a participant at a particular time provided that either: (i) the Common Shares are listed on a designated stock exchange (such as the Exchange or the New York Stock Exchange) at that time and at no time during the 60-month period that ends at that time did the participant, persons with whom the participant did not deal at arm’s length, or the participant together with such persons, own 25% or more of the issued shares of any class or series of the Corporation, or (ii) at no time during such 60-month period did the Common shares derive more than 50% of their value from any combination of: (a) real or immovable property situated in Canada, (b) “timber resource property” (within the meaning of the Tax Act), (c) “Canadian resource property” (within the meaning of the Tax Act) or (d) options in respect of, or interests in, or for civil law, rights in any of the foregoing, whether or not the property exists.  A Common Share may also be taxable Canadian property where the participant elected to have such Common Share treated as taxable Canadian property upon ceasing to be a resident of Canada, and in certain other circumstances.

 

Even if a Common Share is considered to be taxable Canadian property of a participant at the time of its disposition, a capital gain realized on the disposition may nevertheless be exempt from tax under the Tax Act pursuant to the terms of an applicable income tax treaty or convention.

 

Under the U.S. Treaty, a capital gain realized on the disposition of a Common Share by a participant who is entitled to the benefits of such treaty generally will be exempt from tax under the Tax Act except where the Common Share at the time of disposition derives its value principally from real property situated in Canada including rights to explore for or exploit mineral deposits in Canada.

 

Generally, if a Common Share constitutes taxable Canadian property to a participant at the time of its disposition and any capital gain realized by the participant on the disposition is not exempt from tax under the Tax Act by virtue of an applicable income tax treaty or convention, the participant will be required to include one-half of the amount of the capital gain in its income for the year as a taxable capital gain.  Subject to and in accordance with the provisions of the Tax Act, one-half of any capital loss realized by a participant in a taxation year from the disposition of taxable Canadian property may be deducted as an allowable capital loss from any taxable capital gains realized by the participant in the year from the disposition of taxable Canadian property.  If allowable capital losses for a year exceed taxable capital gain from the disposition of taxable Canadian property, the excess may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year from net taxable capital gains realized in such years from the disposition of taxable Canadian property to the extent and in the circumstances prescribed by the Tax Act.  Non-residents who dispose of taxable Canadian property are required to file a Canadian income tax return for the year of disposition, including where any resulting capital gain is not subject to tax under the Tax Act by virtue of an applicable income tax treaty or convention.

 

11

 

UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS

 

The following is a summary of certain United States federal income tax considerations generally applicable to certain participants in the Plan.  The summary is based upon the Internal Revenue Code of 1986, as amended (the “Code”), existing and proposed regulations promulgated thereunder, and judicial decisions and administrative interpretations, as in effect on the date of the Plan, all of which are subject to change, possibly with retroactive effect.  These United States federal income tax considerations apply only to a person or entity who, for United States federal income tax purposes, is: a citizen or resident of the United States; a corporation or other entity organized under the laws of the United States or of any political subdivision thereof; an estate whose income is subject to United States federal income taxation regardless of its source; or a trust (i) if a United States court can exercise primary jurisdiction over the trust’s administration and one or more United States persons have the authority to control all substantial decisions of the trust, or (ii) that has elected to be treated as a United States person under applicable Treasury regulations.

 

This summary does not address the United States federal income tax consequences for participants that are subject to special provisions under the Code, including the following participants: (i) participants that are tax-exempt organizations, qualified retirement plans, individual retirement accounts, or other tax-deferred accounts; (ii) participants that are financial institutions, insurance companies, real estate investment trusts, or regulated investment companies or that are broker-dealers, dealers, or traders in securities or currencies that elect to apply a mark-to-market accounting method; (iii) participants that have a “functional currency” other than the United States dollar; (iv) participants that are liable for the alternative minimum tax under the Code; (v) participants that own Common Shares as part of a straddle, hedging transaction, conversion transaction, constructive sale, or other arrangement involving more than one position; (vi) participants that hold the Common Shares other than as a capital asset within the meaning of Section 1221 of the Code; (vii) participants that own, directly or indirectly, 5% or more, by voting power or value, of the Corporation; (viii) partnerships or other entities classified as partnerships for U.S. federal income tax purposes; (ix) investors in pass-through entities; and (x) certain former citizens or residents of the U.S. Participants that are subject to special provisions under the Code, including participants described immediately above, should consult their own tax advisors regarding the tax consequences of reinvesting cash dividends in additional Common Shares under the Plan.  This summary does not include any discussion of tax consequences to participants in the Plan other than United States federal income tax consequences.  Participants are urged to consult their own tax advisors regarding any United States estate and gift, United States state and local, and foreign tax consequences of participating in the Plan.

 

Partners of entities that are classified as partnerships for United States federal income tax purposes should consult their own tax advisors regarding the United States federal income tax consequences of reinvesting cash dividends in additional Common Shares or making optional cash purchases under the Plan.

 

Circular 230 Disclosure

 

In compliance with U.S. Treasury Department Circular 230, which provides rules governing certain conduct of U.S. tax advisors giving advice with respect to U.S. tax

 

12

 

matters, please be aware that: (i) any U.S. federal tax advice contained in this summary is not intended to be used and cannot be used by you or any other person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code; (ii) such advice was prepared in the expectation that it may be used in connection with the promotion or marketing (within the meaning of Circular 230) of the Plan; and (iii) prospective investors should seek advice based on their particular circumstances from an independent tax advisor.

 

Subject to the “passive foreign investment company” (“PFIC”) discussion below, the gross amount of any distribution (including any Canadian taxes withheld therefrom) paid on Common Shares generally should be included in the gross income of a participant as foreign source dividend income to the extent such distribution is paid out of current or accumulated earnings and profits of the Corporation, as determined under United States federal income tax principles.  To the extent that the amount of any distribution exceeds the Corporation’s current and accumulated earnings and profits for a taxable year, the distribution is treated as a tax-free return of capital to the extent of the participant’s adjusted tax basis in the Common Shares. Then, to the extent that such distribution exceeds the participant’s adjusted tax basis, it is treated as a sale or exchange and taxed as a capital gain.  Subject to certain limitations under the Code, participants who are subject to United States federal income tax will be entitled to a credit or deduction for Canadian income taxes withheld from any distributions.

 

Dividends received by non-corporate participants may be subject to United States federal income tax at lower rates (generally 20% plus the new 3.8% unearned income Medicare contribution tax on higher income taxpayers) than other types of ordinary income if certain conditions are met.  These conditions include the Corporation not being classified as a PFIC, the Corporation being a “qualified foreign corporation”, the participant’s satisfaction of a holding period requirement, and the participant not treating the distribution as “investment income” for purposes of the investment interest deduction rules.

 

In the case of participants that are domestic corporations, distributions from the Corporation generally are not eligible for the dividends received deduction.

 

The amount of any cash distribution paid in Canadian dollars will be equal to the U.S. dollar value of the Canadian dollars on the date of distribution regardless of whether the payment is in fact converted into U.S. dollars at that time. Gain or loss, if any, realized on the sale or disposition of Canadian dollars will generally be U.S. source ordinary income or loss.

 

A participant will be treated for United States federal income tax purposes as having received a distribution in an amount equal to the fair market value of the Common Shares acquired with reinvested dividends pursuant to the Plan plus the amount of any Canadian income tax withheld therefrom.  The fair market value of the Common Shares so acquired will be equal to 100% of the average of the high and low sale prices of Common Shares on the dividend payment date, which amount may be higher or lower than the Average Market Price used to determine the number of Common Shares acquired under the Plan.  A participant’s tax basis per share for Common Shares purchased pursuant to the Plan will be equal to the amount of such distribution.  A participant’s holding period for Common Shares purchased with dividends will begin on the day following the dividend payment date.  A participant who makes optional cash

 

13

 

purchases of Common Shares under the Plan will have a tax basis in those Common Shares equal to the cash used to purchase those Common Shares and the participant’s holding period will begin on the day of the purchase.

 

Participants generally will recognize a taxable gain or loss when they sell or exchange Common Shares and when they receive cash payments for fractional shares credited to their accounts upon withdrawal from or termination of the Plan or otherwise.  The amount of this gain or loss will be equal to the difference between the amount a participant receives for his or her Common Shares or fraction thereof and the participant’s adjusted tax basis in these Common Shares or fraction thereof.  The gain or loss will be a capital gain or loss and will be a long-term capital gain or loss if the holding period for such Common Shares exceeds one year.  Capital gain of a non-corporate U.S. holder is generally taxed at a maximum rate of 20% (plus the new 3.8% unearned income Medicare contribution tax on higher income taxpayers) if the property has been held for more than one year.  The deductibility of capital losses is subject to limitations.  The gain or loss realized by participants who are United States persons will generally be gain or loss from sources within the United States for foreign tax credit limitation purposes.

 

The Corporation will be a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes in any taxable year if 75% or more of its gross income (including the pro rata share of the gross income of any corporation in which it is considered to own, directly or indirectly, 25% or more of the shares by value) is passive income, or on average at least 50% of the gross value of its assets is held for the production of, or produces, passive income.

 

PFIC status is determined on an annual basis.  The Corporation does not expect to be a PFIC for the taxable year ending December 31, 2013, or thereafter.  However, because the Corporation’s income and assets and the nature of its activities may vary from time to time, no assurance can be given that the Corporation will not be considered a PFIC for any taxable year.  If a participant owns Common Shares during a taxable year in which the Corporation is a PFIC, the PFIC rules generally will apply to a participant thereafter, even if in subsequent taxable years the Corporation no longer meets the test described above to be treated as a PFIC.  No ruling will be sought from the U.S. Internal Revenue Service (the “IRS”) regarding whether the Corporation is a PFIC.

 

In general, if the Corporation were to be treated as a PFIC, certain adverse rules would apply to dividends received from the Corporation and to dispositions of Common Shares (potentially including dispositions that would not otherwise be taxable).  Participants are urged to consult their tax advisors about the PFIC rules in connection with their holding of Common Shares.

 

Under current U.S. law, if the Corporation is a PFIC in any year, a participant must file an annual return on IRS Form 8621, which describes the income received (or deemed to be received pursuant to a QEF Election) from the Corporation, any gain realized on a disposition of common shares and certain other information.

 

Dividends on and proceeds arising from a sale of common shares generally will be subject to information reporting and backup withholding tax, currently at the rate of 28%, if

 

14

 

(a) a participant fails to furnish its correct United States taxpayer identification number (generally on Form W-9), (b) the withholding agent is advised the participant furnished an incorrect United States taxpayer identification number, (c) the withholding agent is notified by the IRS that the participant has previously failed to properly report items subject to backup withholding tax, or (d) a participant fails to certify, under penalty of perjury, that the participant has furnished its correct U.S. taxpayer identification number and that the IRS has not notified the participant that it is subject to backup withholding tax.  However, participants that are corporations generally are excluded from these information reporting and backup withholding tax rules.  Amounts withheld as backup withholding may be credited against a participant’s United States federal income tax liability, and a participant may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.

 

Recently enacted legislation requires U.S. individuals to report an interest in any “specified foreign financial asset” if the aggregate value of such assets owned by the U.S. individual exceeds $50,000 (or such higher amount as the IRS may prescribe in future guidance).  Stock issued by a foreign corporation is treated as a specified foreign financial asset for this purpose.

 

15

 

AGNICO EAGLE MINES LIMITED
 DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN

 

REINVESTMENT ENROLLMENT – PARTICIPANT DECLARATION FORM

 

I hereby apply to participate in the Dividend Reinvestment and Share Purchase Plan (the “Plan”) and hereby authorize the Corporation to forward all cash dividends paid on all Common Shares registered in my name now or in future to the Agent, Computershare Trust Company of Canada, to be dealt with in accordance with the terms and conditions of the Plan.

 

I am a citizen or resident (of the United States / of Canada) and the Common Shares held in my name are for the benefit of any citizen or resident (of the United States / of Canada).

 

Name and Address of Shareholder (please print):

 

 

 

	
Signature(s) of Shareholder(s):
    	
 
    
	
(If your shares are jointly owned, all owners   must sign.)
    	
 
    

 

 

	
Date:
    	
 
    	
 
    

 

 

OPTIONAL CASH PAYMENTS (OCP) – PARTICIPANT DECLARATION FORM

 

In addition to my participation in the Plan through the reinvestment of dividends, as elected above, I may wish to make optional cash payments from time-to-time to invest in new Common Shares of the Corporation in accordance with the terms of the Plan.  I understand that these optional cash payments are subject to a minimum amount of U.S.$500 and a maximum amount of U.S.$20,000 per fiscal year, or the Canadian dollar equivalents of such sums, calculated in accordance with the Plan.

 

Cheque enclosed, if any, for U.S.$                                 or Cdn$                                .Exhibit 10.1

 

G-III
APPAREL GROUP, LTD. 

2015 LONG-TERM INCENTIVE PLAN

(As amended effective for fiscal years beginning after January 31, 2017

with respect to Awards outstanding on or granted after February 1, 2017)

GENERAL

 

1.1       Purpose.
The purpose of the Plan is to establish a vehicle through which the Company can provide equity-based and other incentive compensation
opportunities in order to facilitate its ability to recruit, motivate, reward and retain qualified individuals who contribute or
are expected to contribute to the success and growth of the Company.

 

1.2       Eligibility.
Awards may be granted under the Plan to any employee or non-employee director of, and any consultant, independent contractor or
other person who provides personal services to, the Company or any of its Subsidiaries, provided that Incentive Stock Options may
be granted only to employees.

 

1.3       Types
of Awards. Awards under the Plan may include, without limitation, Options, Stock Appreciation Rights, shares of Restricted
Stock, Restricted Stock Units, other Share-based Awards and performance-based Cash Incentive Awards, all as described in Articles
5 through 7 hereof.

 

ARTICLE
2

Definitions

 

2.1       “Award”
means an award made to an eligible director, employee or consultant under the Plan.

 

2.2       “Award
Agreement” means an agreement, in written or electronic form, between the Company and a Participant setting forth the terms
and conditions of an Award.

 

2.3       “Board”
means the Board of Directors of the Company.

 

2.4       “Cause”
has the meaning set forth in Section 9.3(a).

 

2.5       “Change
in Control” has the meaning set forth in Section 9.3(b).

 

2.6       
“Code" means the Internal Revenue Code of 1986, as amended.

 

2.7       "Committee”
means the Compensation Committee of the Board.

 

2.8       "Company”
means G-III APPAREL GROUP, LTD., a Delaware corporation, and any successor thereto.

 

2.9       “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

    	 	- 1 -	 

     

    

 

2.10       “Exercise
Price” means, with respect to an Option, the price at which a holder may purchase the Shares covered by the Option and, with
respect to an SAR, the baseline price of the Shares covered by the SAR.

 

2.11       “Fair
Market Value” means, as of any relevant date, the closing price per Share on such date on the principal securities exchange
on which the Shares are traded or, if no Shares are traded on that date, the closing price per Share on the next preceding date
on which Shares are traded, or (2) the value determined under such other method or convention as the Board or the Committee, acting
in a consistent manner in accordance with the Plan and applicable tax law, may prescribe.

 

2.12       “Good
Reason” has the meaning set forth in Section 9.3(c).

 

2.13       “Incentive
Cash Award” means a performance-based cash Award described in Section 7.2.

 

2.14       “Incentive
Stock Option” or “ISO” means an Option that qualifies as an “incentive stock option” within the meaning
of Section 422 of the Code.

 

2.15       “Option”
means an option to purchase Shares granted pursuant to Section 5.1.

 

2.16       "Participant”
means any person who has been selected to receive an Award under the Plan or who holds an outstanding Award under the Plan.

 

2.17       “Performance-Based
Exemption" means the performance-based compensation exemption from the compensation deduction limitations imposed by Section
162(m) of the Code, as set forth in Section 162(m)(4)(C) of the Code.

 

2.18       “Performance
Factors” means any of the factors listed in Section 7.3(b) that may be used for Awards intended to qualify for the Performance-Based
Exemption.

 

2.19       “Plan”
means the incentive plan set forth herein, as it now exists or is hereafter amended.

 

2.20       “Restricted
Stock” means stock issued in the name of a Participant pursuant to Section 6.1, subject to applicable transfer restrictions
and vesting and other conditions.

 

2.21       “Restricted
Stock Unit” or “RSU” means a contingent right to receive Shares in the future that is granted pursuant to Section
6.1.

 

2.22       “Section
409A” means Section 409A of the Code.

 

2.23       “Shares”
means shares of the Company’s common stock.

 

2.24       “Stock
Appreciation Right” or “SAR” means a right to receive appreciation in the value of Shares that is granted pursuant
to Section 5.2.

 

    	 	- 2 -	 

     

    

 

2.25       “Subsidiary”
means (a) a corporation or other entity in an unbroken chain of corporations or other entities at least 50% of the total value
or voting power of the equity securities of which is owned by the Company or by any other corporation or other entity in the chain,
and (b) any other corporation or entity in which the Company has a 20% controlling interest, directly or indirectly, as may be
designated by the Committee pursuant to the criteria set forth in Section 1.409A-1(b)(5)(iii)(E) of the Treasury regulations.

 

2.26       “Ten
Percent Stockholder” means a person who owns or is deemed to own (under Section 424(d) of the Code) more than ten percent
of the total combined voting power of all classes of stock of the Company or any Subsidiary.

 

ARTICLE
3

ADMINISTRATION

 

3.1       General.
Except as specified herein or as otherwise determined by the Board, the Plan shall be administered by the Committee, the composition
of which is governed by the Committee’s charter.

 

3.2       Authority
of the Committee. Subject to the provisions of the Plan, the Committee, acting in its discretion, shall have the power and
authority to select the persons to whom Awards will be made, prescribe the terms and conditions of each Award and make amendments
thereto, construe, interpret and apply the provisions of the Plan and of any Award Agreement, and make any and all determinations
and take any and all other actions as it deems necessary or desirable in order to carry out the terms of the Plan or of any Award;
provided that the Committee may not accelerate the vesting of an outstanding award by reason of the termination of a Participant’s
employment unless (a) such termination is in connection with a Change in Control or on account of the Participant’s death,
disability or retirement, or (b) such termination occurs for any other reason and the net number of shares the Company would issue
by reason of such acceleration of vesting would not exceed 10% of the total number of Shares that may be issued under the Plan.

 

3.3       Delegation
of Authority. To the fullest extent authorized or permitted by applicable law, including, without limitation, Section 157(c)
of the Delaware General Corporation Law, the Committee may (i) delegate to officers of the Company or any affiliate, or committees
thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions, including the authority
to grant Awards, as the Committee may determine, and (ii) delegate to any person or subcommittee (who may, but need not be members
of the Committee) such Plan-related administrative authority and responsibilities as it deems appropriate. The Committee may not
delegate its authority with respect to non-ministerial actions relating to individuals who are subject to the reporting requirements
of Section 16(a) of the Exchange Act or Awards that are intended to qualify for the Performance-Based Exemption.

 

3.4       Indemnification.
The Company shall indemnify and hold harmless each member of the Committee and the Board and any employee or director of the Company
or any Subsidiary to whom any duty or power relating to the administration of the Plan or any Award is delegated from and against
any loss, cost, liability (including any sum paid in settlement of a claim with the approval of the Board), damage and expense
(including reasonable legal and other expenses

 

    	 	- 3 -	 

     

    

 

incident thereto) arising
out of or incurred in connection with the Plan, unless and except to the extent attributable to such person’s fraud or willful
misconduct.

 

ARTICLE
4

SHARES SUBJECT TO THE PLAN; Individual aWARD limitS

 

4.1       Shares
Issuable under the Plan. Subject to Section 4.3, up to 2,500,000 Shares shall be available for grant and issuance pursuant
to Awards made under the Plan, any or all of which may (but need not) be issued pursuant to ISOs. For purposes of these limitations,
(a) the total number of Shares covered by stock-settled SARs (and not just the number of Shares issued in settlement of such SARs)
shall be deemed to have been issued under the Plan, and (b) Shares covered and/or issued pursuant to an Award will again be available
for grant and issuance pursuant to subsequent Awards to the extent such Shares are covered by or relate to (1) the unexercised
portion of an Option or SAR that is forfeited or otherwise terminated or canceled for any reason other than exercise, (2) Restricted
Stock Awards, RSU Awards or any other forms of Award that are forfeited, (3) subject to an Award that is settled in cash or that
otherwise terminates without such Shares being issued, or (4) Shares issued pursuant to awards that are assumed, converted or substituted
as a result of the acquisition of another company by the Company or a combination of the Company with another Company. Shares that
are used or withheld to pay the exercise price of an Award or to satisfy the tax withholding obligations associated with the vesting
or settlement of an Award will not be available for future grant and issuance under the Plan. Shares issued under the Plan may
be either authorized and unissued Shares, or authorized and issued Shares held in the Company's treasury, or any combination of
the foregoing. For the avoidance of doubt, Shares purchased by the Company in the open market with proceeds from a cash exercise
of an Option may not be added to the pool of Shares otherwise available under the Plan.

 

4.2       Individual
Award Limitations. No more than 400,000 Shares may be issued pursuant to Awards granted to any Participant in any fiscal year
of the Company. No more than $10,000,000 may be earned by any Participant for any fiscal year pursuant to Cash Incentive Awards
made under Section 7.2. If the performance period for a Cash Incentive Award covers more than one fiscal year, then, for the purpose
of applying the annual limit under the preceding sentence, the amount that may be earned by the Participant for each fiscal year
covered by the performance period will be deemed to be equal to the quotient of (a) the maximum amount that may be earned pursuant
to the Award, divided by (b) the number of such fiscal years.

 

4.3       Adjustments
for Capital Changes. In the event of a split-up, spin-off, stock dividend, extraordinary cash dividend, recapitalization, consolidation
of Shares, reverse stock split or other similar capital change, the number and class of Shares that may be issued under the Plan
pursuant to Section 4.1, the number and class of Shares that may be issued pursuant to annual Awards granted to any Participant
pursuant to Section 4.2, the number, class and/or Exercise Price (if any) of Shares subject to outstanding Awards and performance
goals expressed in or with respect to Shares shall be equitably adjusted by and at the discretion of the Board or the Committee
in order to prevent undue dilution or enlargement of the benefits available under the Plan or an outstanding Award, as the case
may be, provided that the number of Shares subject to any outstanding Award shall always be a whole number. In furtherance of the
foregoing, in the event of an “equity restructuring,” each outstanding Award that constitutes a

 

    	 	- 4 -	 

     

    

 

“share-based payment
arrangement” (as such terms are defined in FASB Accounting Standards Codification Topic 718) shall be adjusted pursuant to
this Section.

 

ARTICLE
5

STOCK OPTIONs; Stock Appreciation Rights

 

5.1       Grant
of Company Stock Options. The Committee may grant Options to Participants upon such vesting, forfeiture and other terms and
conditions as the Committee, acting in its discretion in accordance with the Plan, may determine, either at the time an Option
is granted or, if the holder’s rights are not adversely affected, at any subsequent time, provided that each Option shall
have a vesting period of at least one year from the date of grant. Each Option will be deemed not to be an ISO (a non-ISO) unless,
at the time the Option is granted, the Committee specifically designates such Option as an ISO. If an Option is designated as an
ISO and if part or all of the Option does not qualify as an ISO for any reason, then the Option or the portion of the Option that
does not so qualify will nevertheless remain outstanding and will be characterized as a non-ISO.

 

5.2       Grant
of Stock Appreciation Rights. The Committee may grant Stock Appreciation Rights, or SARs, to Participants, either alone or
in connection with the grant of an Option, upon such vesting, forfeiture and other terms and conditions as the Committee, acting
in its discretion in accordance with the Plan, may determine, either at the time the SARs are granted or, if the holder’s
rights are not adversely affected, at any subsequent time, provided that SARs shall have a minimum vesting period of one year from
the date of grant. Upon exercise, the holder of an SAR shall be entitled to receive cash and/or a number of whole Shares (as determined
by the Committee) having a value equal to the product of X and Y, where—

 

X
= the number of whole Shares as to which the SAR is being exercised, and

 

Y
= the excess of (i) the Fair Market Value per Share on the date of exercise over (ii) the Exercise Price per Share covered by the
SAR.

 

5.3       Exercise
Price. The Committee shall determine the Exercise Price per Share under each Option and each SAR, provided that (a) the Exercise
Price per Share shall be at least equal to the Fair Market Value per Share on the date the Option or SAR is granted; and (b) in
the case of an ISO granted to a Ten Percent Stockholder, the Exercise Price per Share shall be at least equal to 110% of the Fair
Market Value per Share on the date the ISO is granted.

 

5.4       Repricing
and Reloading Prohibited. Except in connection with a corporate transaction involving the Company
(including, without limitation, any stock dividend, distribution (whether in the form of cash, Shares, other securities or other
property), stock split, extraordinary cash dividend, recapitalization, change in control, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase or exchange of Common Shares or other securities, or similar transaction(s)), the Company
may not, without obtaining stockholder approval: (a) reduce the Exercise Price under outstanding Options or SARs; (b) cancel outstanding
Options or SARs in exchange for Options or SARs with a lower Exercise Price; or (c) cancel outstanding Options or SARs in exchange
for cash or other securities at a time when the per Share Exercise Price under such Options or SARs is higher than the Fair Market
Value. 

 

    	 	- 5 -	 

     

    

 

The Committee
may not grant an Option that includes a “reload” feature or make any other Plan Awards that have the effect of providing
a “reload” feature with respect to Shares used to satisfy the Option exercise price or applicable withholding tax.

 

5.5       Exercise
Period of Options and SARs. The Committee may establish such vesting, forfeiture, expiration and other conditions as it deems
appropriate (on a grant-by-grant basis) with respect to the exercisability of an Option or SAR; provided, however, that, unless
sooner terminated in accordance with its terms, each Option and each SAR shall automatically expire on the tenth anniversary of
the date the Option or SAR is granted (or, in the case of an ISO granted to a Ten Percent Stockholder, on the fifth anniversary
of the date the ISO is granted).

 

5.6       Exercise
of Options. A Participant may exercise an outstanding Option that is vested and exercisable by transmitting to the Secretary
of the Company (or another person designated by the Company for this purpose) a written notice identifying the Option that is being
exercised and specifying the number of whole Shares to be purchased pursuant to such exercise, together with payment in full of
the aggregate Exercise Price payable for such Shares and any applicable withholding taxes. The Exercise Price shall be payable
in cash or by check or by any other means that the Committee may expressly permit, including, without limitation, (a) the Participant’s
surrender of previously-owned Shares, (b) the Company’s withholding Shares that would otherwise be issued if the Exercise
Price had been paid in cash, (c) payment pursuant to a broker-assisted cashless exercise program established and made available
in accordance with applicable law, (d) any other method of payment that is permitted by applicable law, or (e) any combination
of the foregoing. Applicable withholding taxes shall be payable in cash or by any other method that may be permitted or required
by the Committee in accordance with Section 11.1. Shares tendered or withheld for the payment of the exercise price of an Option
will be credited on the basis of the Fair Market Value of such Shares on the date they are tendered or withheld pursuant to such
exercise.

 

5.7       Exercise
of SARs. A Participant may exercise an outstanding SAR that is vested and exercisable by transmitting to the Secretary of the
Company (or another person designated by the Company for this purpose) a written notice identifying the SAR that is being exercised
and specifying the number of whole Shares for which the SAR is being exercised, together with payment in full of any applicable
withholding taxes attributable to such exercise. Applicable withholding taxes shall be payable in cash or by any other method that
may be permitted or required by the Committee in accordance with Section 11.1.

 

5.8       Termination
of Employment or Service. Unless the Committee determines otherwise at the time of grant, or thereafter if no rights of a Participant
are thereby reduced, in the event of the termination of a Participant’s employment or service with the Company and its Subsidiaries,
(a) the Participant will forfeit any then outstanding unvested Options or SARs, and (b) any then outstanding vested Option or SAR
will remain outstanding for a period of at least 90 days (one year if such termination is due to the Participant’s death)
following the date of such termination (but in no event longer than the expiration of its stated term.) Notwithstanding the foregoing,
if a Participant’s employment or other service is terminated by the Company or a Subsidiary for Cause (as such term is defined
in Section 9.3(a) below) or at a time when grounds

 

    	 	- 6 -	 

     

    

 

for such a termination
exist, the Participant’s then outstanding Options and/or SARs (whether or not previously vested) shall immediately terminate
and shall have no further force or effect.

 

5.9       Rights
as a Stockholder. A Participant shall have no rights to vote or receive dividends or any other rights of a stockholder with
respect to any Shares covered by an Option or SAR unless and until such Option or SAR is validly exercised and any such Shares
are issued to the Participant (subject to Section 4.3). The Company will issue such Shares promptly after the exercise of such
Option or SAR (to the extent the SAR is settled in Shares) is completed.

 

ARTICLE
6

RESTRICTED stock and restricted stock unit awards

 

6.1       Grant
of Restricted Stock and RSU Awards. The Committee may grant Restricted Stock Awards and/or Restricted Stock Unit Awards (RSUs)
to any Participant. Under a Restricted Stock Award, the Company issues Shares to the Participant when the Award is made subject
to specified conditions and restrictions; and under an RSU Award, the Participant receives the right to receive Shares in the future
upon satisfaction of specified terms and conditions. The vesting, forfeiture and other terms and conditions applicable to the Shares
covered by a Restricted Stock Award or the RSUs and Shares covered by a Restricted Stock Unit Award (including, but not limited
to, conditions and restrictions tied to the achievement of specified performance objectives and/or the completion of one or more
specified periods of future service) will be determined by the Committee and will be set forth in the applicable Award Agreement,
provided that each such Award will have a vesting period of at least one year from date of grant.

 

6.2       Restricted
Shares. Shares issued pursuant to a Restricted Stock Award may be evidenced by book entries on the Company’s stock transfer
records pending satisfaction of the applicable vesting conditions. If a stock certificate for restricted Shares is issued, the
certificate will bear an appropriate legend to reflect the nature of the conditions and restrictions applicable to the Shares.
The Company may retain physical possession of any such stock certificate and may require a Participant to deliver a stock power
to the Company, endorsed in blank, in order to facilitate the transfer back to the Company of restricted Shares that are forfeited.
Notwithstanding the foregoing, if a Participant forfeits Shares covered by a Restricted Stock Award, the Shares that are forfeited
shall automatically be cancelled on the books and records of the Company whether or not the Participant returns a certificate for
such Shares or otherwise fails or refuses to execute documents or take other action requested by the Company in connection with
the cancellation of the forfeited Shares. Except to the extent otherwise provided under the Plan or the Award Agreement, a Participant
who holds unvested Shares pursuant to an outstanding Restricted Stock Award shall have all of the rights of a stockholder with
respect to said Shares, including the right to vote the Shares and the right to receive dividends thereon (subject to the payment
and vesting conditions described in Section 6.4 below).

 

6.3       Shares
Covered by RSU Awards. No Shares will be issued pursuant to an RSU Award unless and until the applicable vesting and other
conditions have been satisfied. The holder of an RSU Award shall have no rights as a stockholder with respect to Shares covered
by the RSUs unless and until the RSUs becomes vested and the Shares covered by the vested RSUs are issued to the Participant. Subject
to Section 6.4, the Committee may provide that a

 

    	 	- 7 -	 

     

    

 

Participant who holds
RSUs will be entitled to receive dividend equivalent credits based upon the dividends that would have been payable with respect
to the Shares covered by the RSUs if such Shares were outstanding.

 

6.4       Dividends
on Restricted Stock and RSU Shares. If a dividend is declared with respect to outstanding Shares, then, unless the Committee
determines otherwise, a corresponding dividend will be credited to a Participant with respect to Shares covered by an outstanding
Restricted Stock or RSU Award as if such Shares were outstanding and free of vesting and other conditions and restrictions. Dividend
credits (if any) will be made in the form of cash or in the form of additional Shares of Restricted Stock or RSUs (based upon the
then Fair Market Value per Share) or any combination thereof, all as determined by the Committee. Dividends credited with respect
to Restricted Stock and RSU Awards shall be subject to the same vesting and forfeiture conditions and the same payment terms that
are applicable to the Shares of Restricted Stock or RSU Shares to which such dividend credits apply and/or, if applicable, such
different terms and conditions that may be required in order to comply with Section 409A.

 

6.5       Non-Transferability.
No Restricted Stock Award and no Shares covered by a Restricted Stock Award, may be sold, assigned, transferred, disposed of, pledged
or otherwise hypothecated other than to the Company or its designee in accordance with the terms of the Award or the Plan, and
any attempt to do so shall be null and void.

 

6.6       Termination
of Service Before Vesting; Forfeiture. Unless otherwise specified in the Award Agreement or otherwise subsequently determined
by the Committee, unvested Shares held pursuant to a Restricted Stock Award and unvested RSUs held under an RSU Award shall be
forfeited and canceled upon the termination of a Participant’s employment or other service with the Company and its Subsidiaries.

 

6.7       Timing
Requirement for Settlement of RSUs. Unless otherwise specified in the applicable Award Agreement, RSUs shall be settled in
the form of Shares or cash (as determined by the Committee) as soon as practicable after the RSUs become vested but in no event
later than the 15th day of the third month following the calendar year in which the vesting of such RSUs occurs. Notwithstanding
the foregoing, the terms of an RSU Award may expressly provide that settlement of vested RSUs covered by the Award will be deferred
until a later date or the occurrence of a subsequent event, provided that any such deferral provision complies with the election,
distribution timing and other requirements of Section 409A.

 

6.8       Receipt
of Shares. A Participant who holds Shares that become vested under a Restricted Stock Award or who holds RSUs that become vested
(to the extent the vested RSUs are settled in Shares) will be entitled to receive such Shares, subject to the payment or satisfaction
of applicable withholding taxes. Applicable withholding taxes shall be payable in cash or by any other method that may be permitted
or required by the Committee in accordance with Section 11.1.

 

    	 	- 8 -	 

     

    

 

ARTICLE
7

OTHER forms of AWARD

 

7.1       Other
Share-Based Awards. Subject to applicable law, the Committee, acting in its discretion, may grant such other forms of Award
denominated or payable in, valued in whole or in part by reference to, or otherwise based upon or related to, Shares, including,
without limitation, performance share awards, performance unit awards, stock bonus Awards, dividend equivalent Awards (either alone
or in conjunction with other Awards), purchase rights for Shares, and Share-based Awards designed to comply with or take advantage
of applicable laws outside of the United States. Each such Share-based Award will be made upon such vesting, forfeiture, performance
and other terms and conditions as the Committee, acting in its discretion, may determine; provided that the vesting or earn out
period under any such Award may not be less than one year, and provided further that dividend equivalent awards made in conjunction
with other Share-based Awards shall be subject to the same vesting and forfeiture conditions and the same payment terms of the
corresponding Share-Based Awards and/or, if applicable, such different terms and conditions that may be required in order to comply
with Section 409A. If and when a Share-based Award granted under this Section becomes payable, payment may be made in the form
of cash, whole Shares or a combination of cash and whole Shares (as determined by the Committee), with a payment in Shares being
based upon their Fair Market Value on the applicable vesting or payment date(s).

 

7.2       Cash
Incentive Awards. The Committee may make annual and/or long-term Cash Incentive Awards pursuant to which a Participant may
earn the right to receive a cash payment that is conditioned upon the achievement of a specified performance goal or goals established
by the Committee and communicated to the Participant as soon as practicable after the beginning of the applicable performance period
and the satisfaction of such other terms and conditions as the Committee may prescribe. A Cash Incentive Award will be payable
in the form of a single sum cash payment on or as soon as practicable after the date the Award becomes earned and vested, but in
no event later than the 15th day of the third month of the following calendar year. Notwithstanding the foregoing, the
Committee may require or permit the deferred payment and/or installment payout of all or part of any such Cash Incentive Award
if (and only if) the Award is exempt from Section 409A or, if not so exempt, the deferred payout complies with the applicable terms
and conditions of Section 409A.

 

7.3       Termination
of Service Before Vesting; Forfeiture. Unless otherwise specified in the Award Agreement or otherwise subsequently determined
by the Committee, unearned and/or unvested Share-based Awards and Cash Incentive Awards granted under this Article shall be forfeited
and canceled upon the termination of a Participant’s employment or other service with the Company and its Subsidiaries.

 

7.4       Dividend
Equivalents under Performance-Based Awards. Dividends or dividend equivalents, if any, paid or credited with respect to performance-based
Awards will be subject to the same performance conditions as apply to the underlying Awards.

 

    	 	- 9 -	 

     

    

 

ARTICLE
8

PERFORMANCE-based EXEMPTION awards

 

8.1       Performance-Based
Exemption—General. If the Committee intends that an Award should qualify for the Performance-Based Exemption (other than
Options and SARs which otherwise qualify as “performance-based compensation” for purposes of Section 162(m) of the
Code), then, except as otherwise permitted by Section 162(m) of the Code, the grant, exercise, vesting, amount and/or settlement
of such Award shall be contingent upon achievement of one or more pre-established, objective performance goals, which shall be
prescribed in writing by the Committee not later than 90 days after the commencement of the applicable performance period and in
any event before completion of 25% of such performance period in accordance with the requirements of Section 162(m). Such performance
goals shall be based on any one or more of the Performance Factors listed in Section 8.2 and may be expressed in absolute terms,
relative to performance in prior periods and/or relative to performance of other companies or an index of other companies or on
such other basis as the Committee, acting in a manner consistent with Section 162(m) of the Code, may determine. All determinations
as to the establishment of performance goals, the amount of cash and/or the number of Shares that may be earned, the target level
(and, if applicable, minimum and maximum levels) of actual achievement required as a condition of earning the Award, and the earned
value of any Award intended to qualify for the Performance-Based Exemption shall be made by the Committee and shall be recorded
in writing.

 

8.2       Performance
Factors. Any one or more of the following Performance Factors may be used by the Committee in establishing performance goals
for Awards intended to qualify for the Performance-Based Exemption, in each case taking into account such adjustments and other
objective factors as the Committee may specify at the time the goal is established: (a) revenues on a corporate or product by product
basis, gross profit or gross profit growth; (b) earnings from operations, earnings before or after taxes, earnings before or after
interest, depreciation, amortization, incentives, service fees and/or extraordinary or special items; (c) net income or net income
per share (basic or diluted); (d) return measures, including return on assets, return on investment, return on capital, total capital
or tangible capital, return on sales or return on equity; (e) cash flow, free cash flow, cash flow return on investment, or net
cash provided by operations; (f) economic value created or added; (g) operating margin or profit margin; (h) expense or cost targets;
(i) objective measures of customer satisfaction; (j) working capital targets; (k) inventory control; (l) debt targets; (m) implementation,
completion or attainment of measurable objectives with respect to store openings or closings, acquisitions and divestitures, and
recruiting and maintaining personnel; and/or (n) share price (including, without limitation, growth measures, market capitalization
and/or total stockholder return).

 

8.3       Performance
Goals. In establishing performance goals with respect to an Award intended to qualify for the Performance Exemption, the applicable
Performance Factors may be determined by reference to the Company's performance and/or the performance of any one or more Subsidiaries,
divisions, business segments or business units of the Company and its Subsidiaries, and may be based upon comparisons of any of
the indicators of performance relative to other companies (or subsidiaries, divisions, business segments or business units of other
companies) or relevant indices. Subject to compliance with the Treasury regulations under Section 162(m) of the Code, the Committee
may prescribe that performance goals under any such Award will be adjusted as necessary or appropriate in order to account for
changes in law or

 

    	 	- 10 -	 

     

    

 

accounting rules, principles
or standards or to reflect the impact of extraordinary or unusual items, events or circumstances which, if not taken into account,
would result in windfalls or hardships that are not consistent with the intent and purposes of the Award, including without limitation
(a) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (b) an event either
not directly related to the operations of the Company or not within the reasonable control of the Company’s management, (c)
acquisitions and divestitures, or (d) changes in generally accepted accounting principles.

 

8.4       Discretion.
The Committee shall have the authority, in its discretion, to reduce the formula amount or number of Shares otherwise payable pursuant
to an Award that is intended to qualify for the Performance-Based Exemption, but may not increase the amount or number of Shares
that would otherwise be payable under any such Award; provided that, in the case of an Award intended to constitute a “share-based
payment arrangement” under FASB ASC Topic 718, the Committee may exercise its discretion under this Section only if such
discretion is expressly reserved as part of the original terms of the Award.

 

8.5       Certification.
No amount shall be paid and no Shares shall be distributed or released pursuant to an Award intended to qualify for the Performance-Based
Exemption unless and until the Committee certifies in writing the extent of achievement of the applicable performance goal(s) and
the corresponding amount that is earned by the Participant under such Award.

 

ARTICLE
9

cHANGE IN CONTROL

 

9.1       Assumption
or Substitution of Outstanding Awards. If a “Change in Control” (as defined below) occurs, the parties to the Change
in Control may agree that outstanding Awards shall be assumed by, or converted into a substitute award for or with respect to shares
of common stock of, the successor or acquiring company (or a parent company thereof) on an economically equivalent basis. If the
Change in Control does not involve an agreement with a third party, and if the Shares covered by an outstanding Award are still
traded on a national securities exchange, then the Committee may unilaterally require that the Award be continued, assumed, converted
or substituted in accordance with this Section. The vesting and other terms of any such assumed or substitute award shall be substantially
the same as the vesting and other terms and conditions of the original Award, provided that (a) if the assumed or substituted Award
is an Option or SAR, the number of shares and Exercise Price shall be adjusted in accordance with the principles set forth in Sections
1.424-1(a)(5) and 1.409A-1(b)(5)(v)(D) of the Treasury regulations, and (b) if the assumed or substituted Award is not an Option
or SAR, the number of shares covered by the assumed or substitute Award will be based upon the Change in Control transaction value
of the Company’s outstanding Shares. If the original Award is subject to the satisfaction of performance conditions, then
such performance conditions shall be deemed to have been satisfied immediately prior to the Change in Control at the greater of
(x) the target performance level, or (y) the performance level that would have been attained if the rate or level of performance
from the beginning of the performance period through the date of the Change in Control had continued at the same rate through the
end of the performance period. If reasonably feasible, the assumed or substituted Award will also provide the participant with
an opportunity to earn any remaining portion of the Award (over and above the portion deemed to

 

    	 	- 11 -	 

     

    

 

have been earned under
the preceding sentence) based upon the achievement of a performance goal for the entire performance period that is similar in nature
to the corresponding performance goal under the original terms of the Award. If, within two years following a Change in Control,
a Participant’s employment or other service terminates due to the Participant’s death or is terminated by the Company
or a successor or acquiring company (or any of its or their affiliates) without “Cause” or by the Participant for “Good
Reason” (as such terms are defined below), any then outstanding assumed or substitute Awards held by such terminated Participant
shall immediately be fully vested, and any outstanding assumed or substitute Options and SARs will remain outstanding for 180 days
after such termination of employment (or, if earlier, until the expiration of their original stated terms).

 

9.2       Awards
Not Assumed or Substituted. If a Change in Control occurs and an outstanding Award is not assumed, converted, substituted or
continued pursuant to Section 9.1, then such Award will be deemed fully vested and any performance conditions applicable to such
Award will be deemed to have been satisfied immediately prior to the Change in Control at the maximum performance level specified
in the Award for purposes of determining the extent to which the Award is earned. Each such Award shall be cancelled immediately
prior to the effective time of the Change in Control in exchange for an amount equal to the per Share consideration received by
the holders of outstanding Shares in the Change in Control transaction, reduced in the case of an Option or SAR by the Exercise
Price for such Shares. No consideration will be payable in respect of the cancellation of an Option or SAR with an Exercise Price
per Share that is equal to or greater than the value of the Change in Control transaction consideration per Share. The amount payable
with respect to the cancellation of an outstanding Award pursuant to this section will be paid in cash, unless the parties to the
Change in Control agree that some or all of such amount will be payable in the form of freely tradable shares of common stock of
the successor or acquiring company (or a parent company thereof). Subject to Section 11.2, the payments contemplated by this Section
9.2 shall be made upon at or as soon as practicable following the effective time of the Change in Control. Notwithstanding the
foregoing, the Committee, acting in its discretion, may prescribe different treatment of an Award in the circumstances governed
by this Section, provided that the terms of such different treatment, together with a specific reference to this Section, are set
forth in the applicable Award Agreement.

 

9.3       Certain
Defined Terms.

 

(a)       “Cause”
means, with respect to any Participant and unless otherwise specified in the Participant’s Award Agreement, (i) if there
is an employment or other services agreement in effect between the Participant and the Company or a Subsidiary that defines the
term “cause” (or a term of like import), the Participant’s engaging in conduct that constitutes “cause”
(or a term of like import) within the meaning of that agreement, or (ii) if there is no such employment or other services agreement
in effect, “Cause” shall mean (1) a Participant’s repeated failure or refusal to perform the duties of the Participant’s
employment, consistent with past practice and his or her position and title where such conduct shall not have ceased or been remedied
within ten days following written warning from the Company specifying such conduct; (2) the Participant’s conviction of,
or entering a plea of guilty or no contest to, a felony; (3) the Participant’s performance of any act or the Participant’s
failure to act, for which, if the

 

    	 	- 12 -	 

     

    

 

Participant
were prosecuted and convicted, a crime or offense involving money or property of the Company would have occurred; (4) the Participant’s
performance of any act or the Participant’s failure to act which constitutes fraud or a breach of a fiduciary trust, including,
without limitation, misappropriation of funds or a material misrepresentation of the Company’s operating results or financial
condition; (5) any attempt by the Participant to secure any personal profit (other than pursuant to the terms of the Participant’s
employment or through the Participant’s ownership of equity in the Company) in connection with the business of the Company
(for example, without limitation, using Company assets to pursue other interests, diverting to the Participant or to a third party
any business opportunity belonging to the Company, insider trading or taking bribes or kickbacks); (6) the Participant’s
engagement in conduct or activities materially damaging to the property, business or reputation of the Company other than as a
result of good faith performance of his duties; (7) the Participant’s illegal use of controlled substances; (8) any act or
omission by the Participant involving malfeasance or gross negligence in the performance of the duties of the Participant’s
employment to the material detriment of the Company; or (9) the entry of any order of a court that remains in effect and is not
discharged for a period of at least sixty days, which enjoins or otherwise limits or restricts the performance by the Participant
of the duties of the Participant’s employment, relating to any contract, agreement or commitment made by or applicable to
the Participant in favor of any former employer or any other person.

 

(b)       A
“Change in Control” shall be deemed to have occurred upon the happening of any of the following events:

 

(i)       any
“person” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, a subsidiary
of the Company, any trustee or other fiduciary holding securities under any employee benefit plan of the Company or any corporation
owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock
of the Company), is or becomes, including pursuant to a tender or exchange offer for shares of Common Stock pursuant to which purchases
are made, the “beneficial owner” (as defined in Rule l3d-3 under the Exchange Act), directly or indirectly, of securities
of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities, provided,
however, that the provisions of this paragraph (a) shall not be applicable to any acquisition directly from the Company; or

 

(ii)       individuals
who, as of the date hereof, constitute the Board (the “Incumbent Board”), shall cease for any reason to constitute
at least a majority thereof; provided, however, that any individual becoming a director subsequent to the date hereof whose appointment
or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of
at least two-thirds (2/3) of the directors then still in office who were either directors on the date hereof, or whose appointment,
election or nomination for election was previously so approved or recommended, shall be considered a member of the Incumbent Board,
but excluding for this purpose any new director whose initial assumption of office is in connection with an actual or threatened
election contest relating to the election of directors of the Company; or

 

    	 	- 13 -	 

     

    

 

(iii)       there
is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to
such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or any parent thereof) more than 50% of the combined voting power of the securities of the Company or such
surviving entity or any parent thereof outstanding immediately after such merger or consolidation; or

 

(iv)       there
is consummated a plan of complete liquidation or dissolution of the Company or there is consummated the sale or disposition by
the Company of all or substantially all of the Company’s assets, in one transaction or a series of related transactions,
other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, more than
50% of the combined voting power of the voting securities of which is owned by stockholders of the Company in substantially the
same proportion as their ownership of the Company immediately prior to such sale.

 

(c)       “Good
Reason” shall have the meaning ascribed to that term (or a term of like import) in a Participant’s employment
agreement or, if such term (or a term of like import) is not defined in the Participant’s employment agreement or there is
no such agreement, then “Good Reason” shall mean any of the following events: (i) a material diminution of the Participant’s
duties and responsibilities that result in a material adverse effect on the Participant’s status and authority, (ii) a change
in the principal location of the Participant’s employment to a location more than fifty (50) miles outside of New York City
or the Participant’s then current other business location, except for travel reasonably required as part of such employment,
(iii) failure to timely pay the Participant any salary or bonus when due, or (iv) any reduction in (1) the Participant’s
annual rate of salary from the highest annual rate of salary in effect during the one-year period prior to the date of the Change
of Control, or (2) the amount of annual bonus paid to the Participant after the date of the Change in Control in light of the results
of operations of the Company for that year compared to the bonus paid for the most recent fiscal year prior to the date of the
Change of Control in light of the results of operations of the Company for that year. Notwithstanding the foregoing, in order to
terminate for “Good Reason,” a Participant must specify in writing to the Company (or the successor or acquiring company
or a parent thereof) the nature of the act or omission that the Participant deems to constitute Good Reason and provide the Company
(or the successor or acquiring company or a parent thereof) 30 days after receipt of such notice to review and, if required, correct
the situation (and thus prevent the Participant’s termination for Good Reason). Notice of termination for Good Reason must
be provided, if at all, within 90 days after the occurrence of the event or condition giving rise to such termination.

 

9.4       No
Fractional Shares. In the event of an adjustment in the number of shares covered by any Award pursuant to the provisions hereof,
any fractional shares resulting from such adjustment shall be disregarded, and each converted Award shall cover only the number
of full shares resulting from the adjustment.

 

    	 	- 14 -	 

     

    

 

ARTICLE
10

AMENDMENT and TERMINATION

 

10.1       Amendment
and Termination of the Plan. The Board, acting in its sole discretion, may amend the Plan at any time and from time to time
and may terminate the Plan at any time. Plan amendments will be subject to approval by the Company’s stockholders if and
to the extent such approval is required in order to satisfy applicable law and/or stock exchange listing rules. Unless sooner terminated,
the Plan will terminate on the tenth anniversary of the date it is approved by the Company’s stockholders (and the Plan will
not become effective unless and until such approval is obtained).

 

10.2       Outstanding
Awards. Except as specifically required or permitted by the Plan or an Award Agreement, no amendment of an Award Agreement,
and no termination, amendment or modification of the Plan shall cause any then outstanding Award to be forfeited or altered in
a way that adversely affects a Participant’s rights, unless the Participant consents thereto. The rights of any person
with respect to an Award that is outstanding at the time of the termination of the Plan shall not be affected solely by reason
of such termination and shall continue in accordance with the terms of the Award and of the Plan, as each is then in effect or
is thereafter amended.

 

ARTICLE
11

tax withholding; Section 409a

 

11.1       Tax
Withholding. Each Award and the exercise, vesting and settlement of each Award shall be subject to a Participant’s payment
or other satisfaction of any applicable withholding taxes. The Committee, in its sole discretion and pursuant to applicable law
and such procedures as it may specify from time to time, may require or permit the Participant to satisfy the tax withholding obligation(s)
relating to an Award (in whole or in part) by or through (a) the payment of cash by the Participant, (b) the Company’s withholding
cash or Shares that would otherwise be paid, issued or released pursuant to the Award, (c) the transfer to the Company of other
Shares owned by the Participant, (d) a broker-assisted cashless exercise arrangement that complies with applicable law, and/or
(e) by such other means as the Committee may determine. The amount of a Participant’s withholding tax obligation that is
satisfied in Shares (whether previously-owned or withheld from the Shares that would otherwise be issued or released) shall be
based upon the Fair Market Value of the Shares on the date such Shares are delivered or withheld. If Shares are withheld
for the payment of a Participant’s taxes associated with an Award, the amount of tax covered by such Share withholding must
be based upon a rate that is not less than the minimum applicable withholding rate and may be based upon a rate that does not exceed
the maximum individual statutory tax rate in the Participant’s applicable tax jurisdiction(s). For the avoidance of doubt,
if a Participant’s actual marginal tax rate is lower than the maximum applicable tax rate, the amount of Share-based withholding
may be based upon the higher maximum tax rate.

 

11.2       Section
409A Compliance. It is intended that Awards made under the Plan, including any deferred payment or settlement terms and conditions,
shall be exempt from or comply with Section 409A. Without limiting the generality of the preceding sentence and notwithstanding
anything to the contrary contained herein, the following provisions shall apply

 

    	 	- 15 -	 

     

    

 

with respect to an Award
if and to the extent that such Award provides for the payment of “nonqualified deferred compensation” (within the meaning
of Section 409A).

 

(a)       If
a Participant becomes entitled to payments (cash or Shares) under the Award on account of the “termination of the Participant’s
employment or other service” or words of like import, then such termination of employment or service will not be deemed to
have occurred unless and until the Participant incurs a “separation from service” within the meaning of Section 409A.

 

(b)       If
the Participant is a “specified employee” within the meaning of Section 409A at the time of his or her separation from
service, then any such payment covered by Section 409A shall be delayed until the first business day following the earlier of (i)
the date which is six months after the date of such separation from service, or (ii) the date of the Participant’s death.
On the delayed payment date, the Participant (or the Participant’s beneficiary) will be entitled to receive a lump sum payment
or distribution of the payments that otherwise would have been made during the period that such payments are delayed.

 

(c)       If
a payment covered by Section 409A would be accelerated on account of the occurrence of a “Change in Control,” then
such payment shall not be made unless such Change in Control also constitutes a “change in ownership,” “change
in effective control” or “change in ownership of a substantial portion of the Company’s assets” within
the meaning of Section 409A. Any payment that would have been made except for the application of the preceding sentence shall be
made in accordance with the payment or settlement schedule that would have applied under the Award in the absence of a Change in
Control or, if earlier, on the date of the termination of the Participant’s employment or service (without regard to any
further service or performance conditions that otherwise would have applied).

 

(d)       Notwithstanding
the foregoing, each Participant shall be solely responsible, and the Company shall have no liability to the Participant or otherwise,
for or with respect to any taxes, acceleration of taxes, interest or penalties arising under Section 409A.

 

ARTICLE
12

miscellaneous

 

12.1       Non-Transferability.
Except as otherwise specifically permitted by the Plan or the applicable Award Agreement, no Award shall be assignable or transferable
except upon the Participant’s death to his or her “beneficiary” (as defined below), and, during a Participant’s
lifetime, an Option or SAR may be exercised only by the Participant or the Participant’s guardian or legal representative.
Notwithstanding the foregoing, subject to the consent of the Committee (which it may grant, condition or deny in its sole discretion
for any or no reason), a Participant may make an inter vivos transfer of an Option (other than an ISO), SAR or RSU to any “family
member” (within the meaning of Item A(1)(a)(5) of the General Instructions to SEC Form S-8 or a successor), including, without
limitation, to one or more trusts, partnerships, limited liability companies and other entities which qualify as family members,
provided that such transfer is not

 

    	 	- 16 -	 

     

    

 

a transfer for value
or is a transfer for value that the Committee determines is for estate planning purposes, and provided further that such transfer
is permitted by applicable law and does not give rise to tax under Section 409A. For the purposes hereof, a Participant’s
“beneficiary” is any person or entity (including, without limitation, a trust or estate) designated in writing by a
Participant to succeed to the Participant’s Award(s) upon the Participant’s death, subject to the provisions hereof
and of the applicable Award Agreement(s). A Participant may designate a beneficiary by delivering a written beneficiary designation
to the Committee (or its designee) in such form and in such manner as the Committee (or its designee) may prescribe. Each beneficiary
designation duly filed with the Committee (or its designee) will have the effect of superseding and revoking any prior beneficiary
designation. If a Participant does not designate a beneficiary, or if no designated beneficiary survives the Participant, then
the Participant’s estate will be deemed to be his or her beneficiary. The term “Participant,” as used herein,
shall be deemed to include the Participant’s beneficiary if and to the extent the context requires.

 

12.2       Successors.
All obligations of the Company with respect to Awards granted under the Plan shall be binding on any successor to the Company of
all or substantially all of the business and/or assets of the Company, whether the existence of such successor is the result of
a direct or indirect purchase, merger, consolidation or otherwise, and the term “Company” as used herein shall be construed
accordingly.

 

12.3       Legal
Construction. If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall
not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision
had not been included.

 

12.4       Compliance
with Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules,
and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

12.5       Transfer
Orders; Placement of Legends. All certificates for shares of Common Stock delivered under the Plan shall be subject to such
stock-transfer orders and other restrictions as the Company may deem advisable under the rules, regulations, and other requirements
of the Securities and Exchange Commission, any stock exchange or market upon which the Common Stock may then be listed, and any
applicable federal or state securities law. The Company may cause a legend or legends to be placed on any such certificates to
make appropriate reference to such restrictions.

 

12.6       Nonexclusivity
of the Plan. No provision of the Plan, and neither its adoption Plan by the Board or submission to the stockholders for approval,
shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements,
apart from the Plan, as it may deem desirable.

 

12.7       Sub-Plans.
The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying securities, tax or other laws
of any foreign jurisdictions that may apply to Participants who receive Awards. Any such sub-plan shall contain such limitations
and other terms and conditions as the Committee determines are necessary or desirable for such purposes and shall be in such form
(including, without limitation, as an appendix to the Plan) as the Committee deems appropriate. Each sub-plan shall be deemed a
part of the Plan, but shall

 

    	 	- 17 -	 

     

    

 

apply only to the Participants
who are subject to the laws of the jurisdiction to which the sub-plan relates.

 

12.8       Uniformity
Not Required. The provisions of the Award Agreements need not be uniform among all Awards, among all Awards of the same type,
among all Awards granted to the same Participant, or among all Awards granted at the same time.

 

12.9       Claw
Back Conditions. Notwithstanding anything to the contrary contained herein or in an Award Agreement, Awards and benefits otherwise
provided by Awards made under the Plan shall be subject to the Company’s incentive compensation claw back policies as in
effect from time to time, and, as applicable, the claw back requirements of the Dodd-Frank Act Section 954.

 

12.10     Limitation
of Rights. The Plan shall not interfere with or limit in any way the right of the Company or of any Subsidiary to terminate
any person’s employment or other service at any time, and the Plan shall not confer upon any person the right to continue
in the employ or other service of the Company or any Subsidiary. No employee, director or other person shall have any right to
be selected to receive an Award or, having been so selected, to be selected to receive a future Award.

 

12.11     Decisions
and Determinations Final. All decisions and determinations made by the Board pursuant to the provisions hereof and, except
to the extent rights or powers under the Plan are reserved specifically to the discretion of the Board, all decisions and determinations
made by the Committee in connection with the exercise of its authority and responsibilities under the Plan (including, without
limitation, decisions and determinations relating to the construction, interpretation and administration of the Plan or any Award),
shall be final, binding and conclusive on all persons.

 

12.12     Governing
Law. The Plan and all Award Agreements shall be construed in accordance with and governed by the laws of the State of Delaware
(without regard to the legislative or judicial conflict of laws rules of any state).

 

    	 	- 18 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}]]