Document:

Exhibit 10.3

 

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STOCK OPTION AGREEMENT

 

SIGN-ON GRANT

 

THIS AGREEMENT made as of August 11, 2014

 

AMONG:

 

Ritchie Bros. Auctioneers
Incorporated, a company incorporated under the laws of Canada, having an office at 9500 Glenlyon Parkway, Burnaby,
B.C. V5J OC6

 

(the "Company")

 

AND:

 

Ravichandra Saligram of 23W651 Hobson
Rd

Naperville IL 60540

United States

 

(the "Optionee")

 

WHEREAS:

 

A.           The
Optionee is a director, officer or employee of the Company or of a subsidiary of the Company or an individual employed by a person
which is providing management services to the Company or a person otherwise approved by the Compensation Committee as "Eligible
Persons"; and

 

B.           The
Company considers that the grant to the Optionee of an option to purchase Common Shares in the capital of the Company will promote
the interests of the Company by furnishing the Optionee with greater incentive to further develop and promote the business and
financial success of the Company and by furthering the identity of interest of the Optionee with the shareholders of the Company
generally through share ownership in the Company;

 

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NOW THEREFORE THIS AGREEMENT WITNESSES THAT in
consideration of the mutual premises and respective covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

 

ARTICLE I

 

INTERPRETATION

 

1.1 Definitions

 

In this Agreement unless there is something in the
subject matter or context inconsistent therewith, words and terms used herein will have the following meanings:

 

(1)         "Affiliate"
has the meaning ascribed thereto under the Securities Act (British Columbia) in effect on the date hereof;

 

(2)         "Board
of Directors" means the board of directors of the Company for the time being;

 

(3)         "Business
Day" means a day other than Saturday, Sunday and any other day which is a legal holiday in British Columbia;

 

(4)         "Cause"
shall have the meaning set forth in the Employment Agreement;

 

(5)         "Common
Shares" means common shares without par value in the capital of the Company;

 

(6)         "Compensation
Committee" means a committee of the Board of Directors, as constituted from time to time, charged with, among other things,
the administration of the Plan or, if at any time such a committee has not been appointed by the Board of Directors, the Board
of Directors as a whole;

 

(7)         "Employment
Agreement" means the employment agreement between the Optionee and Ritchie Bros. Auctioneers (Canada) Ltd. dated June
16, 2014;

 

(8)         "Expiry
Date" means the close of business on August 11, 2024 or such later date as may be extended pursuant to the terms of the
plan;

 

(9)         "Good
Reason" shall have the meaning set forth in the Employment Agreement;

 

(10)       "Option" means the option to purchase
Common Shares granted by this Agreement;

 

(11)       "Plan"
means the Stock Option Plan of the Company adopted by the Board of Directors as of July 31, 1997 and amended and re-stated as of
April 13, 2007, as the same may from time to time be supplemented or amended and in effect;

 

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(12)       "Retirement"
means retirement as an employee and/or officer of the Company and the person is not taking on any other substitute paid employment
or engagement, and if there is any question on whether a cessation of employment is by way of a retirement or not, the determination
by the Chief People Officer shall be conclusive and binding on the Optionee; provided, however, that the Optionee's entitlement
to exercise or receive any Retirement treatment hereunder shall be subject to the terms set forth in the Employment Agreement;

 

(13)       "subsidiary"
has the meaning ascribed thereto under the Securities Act (British Columbia) as the same may from time to time be
amended or re-enacted.

 

1.2 Interpretation

 

For the purposes of this Agreement, except as otherwise
provided:

 

(1)         "this
Agreement" means this Agreement as it may from time to time be supplemented or amended and in effect;

 

(2)         all
references in this Agreement to "Articles", "Sections" and other subdivisions are to the designated
Articles, Sections and other subdivisions of this Agreement;

 

(3)         the
words "herein", "hereof", "hereunder" and other words of similar import refer to this Agreement
as a whole and not to any particular Article, Section or other subdivision;

 

(4)         the
headings are for convenience only and do not form a part of this Agreement and are not intended to interpret, define or limit
the scope, extent or intent of this Agreement or any provision hereof;

 

(5)         the
singular of any term includes the plural, and vice versa, the use of any term is equally applicable to any gender and, where applicable,
a body corporate, the word "or" is not exclusive and the word "including" is not limiting whether or not non-limiting
language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference
thereto;

 

(6)         where
the time for doing an act falls or expires on a day other than a Business Day, the time for doing such act is extended to the
next day which is a Business Day;

 

(7)         any
reference to a statute is a reference to the applicable statute and to any regulations made pursuant thereto and includes all amendments
made thereto and in force from time to time and any statute or regulation that has the effect of supplementing or superseding such
statute or regulation; and

 

(8)         any
other capitalized terms not defined herein but defined in the Plan shall have the meaning as set out in the Plan.

 

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ARTICLE II

 

THE OPTION

 

2.1 Grant

 

08/11/2014_Stock Options Plan_Sp. Options_CEO_24.43

 

11-Aug-2014

 

$24.43 USD

 

Subject to the provisions
of this Agreement and all the terms of the Plan, the Company hereby grants to the Optionee an option to purchase 338,249.222026
Common Shares at an exercise price of $24.43 USD per share, being the closing trading price on August 11, 2014.

 

2.2 Expiry of Option

 

Subject to the terms of the Plan (including but
not limited to section 8.1(e)(iv) of the Plan) and the provisions of this Agreement below, the Option will expire upon the
earliest to occur of the following:

 

(1)         the
Expiry Date; 11-Aug-2024

 

(2)         the
date which is 90 days after the Optionee ceases to be an "Eligible Person" due to termination by the Company
without Cause or due to voluntary termination by the Optionee (other than Retirement);

 

(3)         the
date which is 30 days after the Optionee ceases to be an "Eligible Person" due to termination by the Company with
Cause;

 

(4)         the
date which is 3rd anniversary of the date the Optionee ceases to be an "Eligible Person" due to
Retirement, provided that if the Optionee takes on any substitute paid employment or engagement before the date which is the
3rd anniversary of the date when the Optionee ceased to be an "Eligible Person", then the Option will
expire on the date when such Optionee takes on such substitute paid employment or engagement (if there is any question on
whether certain work amounts to substitute paid employment or engagement, the determination by the Chief People Officer shall
be conclusive and binding on the Optionee); and

 

(5)         in
the event of the death of the Optionee (including death occurring during the time period specified in subsections 2.2(2) and
2.2(4) above), the date which is 365 days after the date of death of the Optionee.

 

For greater certainty for the
purpose of this Agreement and the Plan, the date on which the employment of an Optionee is terminated without Cause shall be deemed
to be the date on which any notice of termination of employment provided to such Optionee is stated to be effective (or in the
case of an alleged constructive dismissal, the date on which the alleged constructive dismissal is alleged to have occurred), and
not during or as of the end of any period following such date during which the Optionee is in receipt of, or entitled to receive,
statutory, contractual or common law notice of termination or any compensation in lieu of such notice.

 

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2.3 Nontransferability of Option

 

The Option is not transferable or assignable and is exercisable
only by the Optionee or, in the event of the death of the Optionee or the appointment of a committee or duly appointed attorney
of the Optionee or of the estate of the Optionee on the grounds that the Optionee is incapable, by reason of physical or mental
infirmity, of managing his affairs, the Optionee's legal representative or such committee or attorney, as the case may be (the
"Legal Representative") .

 

2.4 Manner of Exercise

 

Subject to the terms of the Plan,
the Option may be exercised by (i) delivering to the Company, prior to the expiry of the Option, an option exercise form duly executed
by the Optionee or its Legal Representative (the "Option Exercise Form") substantially in the form of Schedule "A"
completed and executed in a manner acceptable to the Company, acting reasonably, or (ii) following and completing the on-line exercise
procedure as specified by the Compensation Committee from time to time (with appropriate proof of completion of such exercise procedure)
(the "Online Exercise Procedure"). The Option Exercise Form or the completion of the Online Exercise Procedure (as applicable)
must be accompanied by payment in full for the number of Common Shares in respect of which the Option is being exercised in lawful
currency of the United States of America, in cash, bank draft, certified cheque or other form of payment acceptable to the Company,
made payable to the Company at its principal place of business at the time of the exercise of the Option.

 

2.5 Issuance of Shares

 

The Company will have no obligation to issue Common Shares
upon the exercise of the Option unless the Compensation Committee is satisfied that the issuance of such Common Shares to the
Optionee will be exempt from all registration or qualification requirements of applicable securities laws and will be
permitted under the applicable rules and regulations of all regulatory authorities to which the Company is subject, including
any stock exchange or other organized market on which the Common Shares may from time to time be listed or posted for
trading. In particular, if required by any regulatory authority to which the Company is subject, including any stock exchange
or other organized market on which the Common Shares may from time to time be listed or traded, shareholder approval to the
grant of this Option must be obtained prior to the exercise of the Option or to the amendment of this Agreement. The Company
will also require the Optionee to pay or provide evidence to the full satisfaction of the Company that all tax, withholdings,
deductions or other form of tax remittance obligations applicable to the Optionee or the Company in relation to the Options
are satisfied before the Company will proceed to complete the exercise of the Option and the issuance and delivery of the
Common Shares to the Optionee or in accordance with his/her direction upon the exercise of the Option.

 

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2.6 Compliance with Laws

 

The Compensation Committee may from time to time take such steps
and require such documentation from the Optionee which in its opinion is necessary or desirable to ensure compliance with all applicable
laws, rules and regulations (including but not limited to rules and regulations of applicable stock exchanges) by the Company or
the Optionee in relation to the exercise of the Option or the issuance and delivery of the Common Shares to the Optionee upon exercise
of the Option. The Compensation Committee may also from time to time take such steps which in its opinion are necessary or desirable
to restrict the transferability of any Common Shares acquired on the exercise of any Option in order to ensure such compliance,
including the endorsement of a legend on any certificate representing Common Shares acquired on the exercise of the Option to the
effect that such Common Shares may not be offered, sold or delivered except in compliance with the applicable securities laws and
regulations of Canada or the United States.

 

2.7 Delivery of Share Certificates

 

Subject to
Sections 2.5 and 2.6, the Company will as soon as practicable after receipt of the Option Exercise Form or the confirmation of
the completion of the Online Exercise Procedure and the payment referred to in Section 2.4 issue and deliver a certificate or certificates
representing the Common Shares so purchased.

 

2.8 Vesting

 

	Vest
    Schedule - Options	 	 
	 	 	 
	Vest Date	 	Vest Quantity
	 	 	 
	11-Aug-2015	 	67,650
	 	 	 
	11-Aug-2016	 	67,650
	 	 	 
	11-Aug-2017	 	67,649
	 	 	 
	11-Aug-2018	 	67,650
	 	 	 
	11-Aug-2019	 	67,650.222026
	 	 	 
	 	 	338,249.222026

 

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Subject to the terms of the Plan, the Optionee may
elect to purchase before the expiry of the Options as provided for in Section 2.2 above:

 

(1)         up
to 20% of the Common Shares subject to the Options granted under this Agreement (which have not been previously purchased) on
or after the first anniversary date of this Agreement;

 

(2)         up
to 40% of the Common Shares subject to the Options granted under this Agreement (which have not been previously purchased) on
or after the second anniversary date of this Agreement;

 

(3)         up
to 60% of the Common Shares subject to the Options granted under this Agreement (which have not been previously purchased) on
or after the third anniversary date of this Agreement;

 

(4)         up
to 80% of the Common Shares subject to the Options granted under this Agreement (which have not been previously purchased) on
or after the fourth anniversary date of this Agreement; and

 

(5)         up
to 100% of the Common Shares subject to the Options granted under this Agreement (which have not been previously purchased)
on or after the fifth anniversary date of this Agreement provided that:

 

(6)         if,
prior to July 7, 2017, the Optionee ceases to be an "Eligible Person" due to termination by the Company without Cause
(not including voluntary termination by the Optionee) or termination by the Optionee for Good Reason, all Common Shares subject
to Options granted under this Agreement which are not yet available for purchase as provided for above (the "Unvested Options")
will immediately be cancelled on the effective date of such termination;

 

(7)         if,
on or subsequent to July 7, 2017, the Optionee ceases to be an "Eligible Person" due to termination by the Company without
Cause (not including voluntary termination by the Optionee) or termination by the Optionee for Good Reason, all Unvested Options
will immediately on the effective date of such termination become available for purchase (subject to the expiry provisions as set
out in Section 2.2 above);

 

(8)         if
the Optionee ceases to be an "Eligible Person" due to voluntary termination by the Optionee (other than
Retirement), all Unvested Options will immediately be cancelled on the effective date of such termination;

 

(9)         if
the Optionee ceases to be an "Eligible Person" due to termination by the Company of the Optionee with Cause, all Unvested
Options will immediately be cancelled on the date when the Company notifies the Optionee of such termination;

 

(10)       if
the Optionee ceases to be an "Eligible Person" due to Retirement, all Unvested Options on the date of Retirement will
continue to vest after Retirement according to the schedule provided for in Sections 2.8(1), (2), (3), (4) and (5); and

 

(11)       if
the Optionee dies before ceasing to be an "Eligible Person" or before the expiry of the period for exercise as provided
for in subsections 2.2(2) and 2.2( 4) above, all Unvested Options will vest immediately on the date of death.

 

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Notwithstanding the above, the
Compensation Committee may at its discretion shorten the period of time in which any Unvested Options may become exercisable, provided
that the Compensation Committee determines that such shortening of the period of time be appropriate and in the best interest of
the Company in the circumstances and it is agreed and acknowledged that there is no obligation on the Compensation Committee to
exercise such discretion nor shall the Compensation Committee be required to provide reasons for exercise or non-exercise of such
discretion.

 

ARTICLE III

 

ADJUSTMENTS

 

3.1 Adjustments

 

This Agreement will be amended by the Company unilaterally (without
the need of consent or notice to the Optionee) upon the occurrence of the events referred to in Section 8.1 (h) of the Plan so
that the rights of the Optionee hereunder, including the number of Common Shares that may be purchased on the exercise of the Option
and the Exercise Price at which such Common Shares may be purchased, will be adjusted in accordance with the provisions set forth
in the Plan from and after, but not before, the occurrence of such event. Successive adjustments will be made in the case of the
occurrence of more than one such event as provided for therein, but, in the case of each such event, only from and after the occurrence
of such event. Until the occurrence of such event, the rights of the Optionee hereunder, including the number of Common Shares
that may be purchased on the exercise of the Option and the Exercise Price at which such Common Shares may be purchased, will remain
unamended as set out herein.

 

ARTICLE IV

 

COVENANTS AND REPRESENTATIONS

 

4.1 Representations and Covenants of the Company

 

(1)        
The Company hereby covenants that it will reserve or cause to be reserved for allotment sufficient Common Shares for issue
to the Optionee of all Common Shares which are issuable from time to time under the Option.

 

(2)         The
Company represents that the Optionee is a bona fide employee of the Company or of a subsidiary of the Company or an individual
employed by a person which is providing management services to the Company (other than investor relations) or a person who is approved
as an "Eligible Person" by the Compensation Committee.

 

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4.2 Representations and Covenants of the
Optionee

 

The Optionee hereby represents and covenants that:

 

(1)         the
Optionee is a director, officer or employee of the Company or of a subsidiary of the Company or an individual employed by a person
providing management services to the Company or a person who is approved as an "Eligible Person" by the Compensation
Committee;

 

(2)         the
Optionee has not been induced to enter into this Agreement by the expectation of employment or continued employment with the
Company or any person providing management services to the Company;

 

(3)         the
Optionee is aware that the grant of the Option and the issuance by the Company of Common Shares thereunder are exempt from the
obligation under applicable securities laws to file a prospectus or other registration document qualifying the distribution of
the Options or Common Shares to be distributed thereunder under any applicable securities laws;

 

(4)         if
the Optionee or the Legal Representative of the Optionee exercises the Option, the Optionee or the Legal Representative, as the
case may be, will prior to and upon any sale or disposition of any Common Shares purchased upon the exercise of the Option, comply
with all applicable securities laws and all applicable rules and regulations of all regulatory authorities to which the Company
is subject, including any stock exchange or other organized market on which the Common Shares may be listed or posted for trading,
and will not offer, sell or deliver any of such Common Shares, directly or indirectly, in the United States or to any citizen or
resident of, or any company, partnership or other entity created or organized in or under the laws of, the United States, or any
estate or trust the income of which is subject to United States federal income taxation regardless of its source, except in compliance
with the securities laws of the United States; and

 

(5)         upon
each exercise of the Option, the Optionee, or the Legal Representatives of the Optionee, as the case may be, will, if requested
by the Company, represent and agree in writing that the Optionee is or was, a director, officer or employee of the Company or of
a subsidiary of the Company or an individual employed by a person providing management services to the Company or a person who
is approved as an "Eligible Person" by the Compensation Committee and has not been induced to purchase the Common Shares
by expectation of employment or continued employment with the Company or any person providing management services to the Company
and that such person is not aware of any commission or other remuneration having been paid or given to others in respect of the
trade in the Common Shares.

 

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ARTICLE V

 

MISCELLANEOUS

 

5.1 Notices

 

Any notice or other communication required or permitted to be
delivered under this Agreement will be considered delivered only if in writing and when it is actually delivered (which delivery
may be by telex, telecopy or other telecommunications device) to the attention of the party to whom it is intended at the principal
business address of the Company, if addressed to the Company, or to the address specified above, if to the Optionee, or to such
other address as such party may designate to the other party by notice in writing delivered in accordance with this Section.

 

5.2 Interpretation

 

Any question arising as to the interpretation of this
Agreement will be determined by the Compensation Committee and, absent manifest error, such determination will be conclusive
and binding on the Company and the Optionee.

 

5.3 Further Assurances

 

Each of the parties hereto will,
on demand by the other party hereto, execute and deliver all such further documents and instruments and do all such further acts
and things as the party may either before or after the execution and delivery of this Agreement reasonably request to evidence,
carry out and give full effect to the terms, conditions, intent and meaning of this Agreement.

 

5.4 Severability

 

If any provision of this Agreement
is determined to be void, illegal or unenforceable, such provision will be construed to be separate and severable from this Agreement
and will not impair the validity, legality or enforceability of any other provision of this Agreement and the remainder of this
Agreement will continue to be binding on the parties hereto as if such provision had been deleted.

 

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5.5 No Assignment

 

Neither this
Agreement nor the Option may be assigned, transferred or charged in whole or in part by the Optionee and any purported assignment,
transfer or charge shall cause this Agreement and the Option to lapse forthwith and be null and void after that time.

 

5.6 Amendment

 

No amendment shall be made
to this Agreement unless all applicable rules and regulations of all regulatory authorities to which the Company is subject
have been complied with and in particular, no amendment shall be made to this Agreement without prior approval of the
shareholders of the Company if:

 

(1)         the
Option as originally constituted was accepted for filing by the shareholders; or

 

(2)         the
Optionee is an insider (as such term is defined in the Plan) of the Company at the time of the proposed amendment.

 

5.7 Burden and Benefit

 

This Agreement will be binding upon and will enure to the benefit
of the Company and its successors and assigns and the Optionee and, if applicable, his Legal Representative.

 

5.8 Time

 

Time will be of the essence in this Agreement.

 

5.9 Governing Law

 

This Agreement and all matters arising hereunder will be governed
by and construed in accordance with the laws of British Columbia.

 

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5.10 Incorporation of the Terms of the Plan

 

This Agreement shall be deemed to have incorporated all the
terms of the Plan and the Options granted hereunder shall be subject to the terms of the Plan. In the event of any conflict between
the provisions of this Agreement and the terms of the Plan, the terms of the Plan shall govern.

 

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

 

RITCHIE BROS. AUCTIONEERS INCORPORATED

 

	By:	 	 
	 	 	 
	C/S	 	 
	 	 	 
	 	Title: Corporate Secretary	 

 

	Signed by Ravichandra Saligram	 	)	 	 
	 	 	 	 	 
	in the presence of:	 	)	 	 
	 	 	 	 	 
	 	 	)	 	 
	 	 	 	 	 
	 	 	)	 	 
	 	 	 	 	 
	Signature	 	)	 	 
	 	 	 	 	 
	 	 	)	 	 
	 	 	 	 	 
	 	 	)	 	Ravichandra Saligram
	 	 	 	 	 
	Name	 	)	 	 
	 	 	 	 	 
	 	 	)	 	 
	 	 	 	 	 
	 	 	)	 	 
	 	 	 	 	 
	Address	 	)	 	 
	 	 	 	 	 
	 	 	)	 	 
	 	 	 	 	 
	 	 	)	 	 

 

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SCHEDULE "A"

 

OPTION EXERCISE FORM

 

    	 	 	13/13Exhibit 10.4

 

RITCHIE BROS. AUCTIONEERS INCORPORATED 

 

(the “Company”)

 

AMENDED AND
RESTATED EXECUTIVE LONG TERM INCENTIVE PLAN 

 

		1.	Commencement of the Plan 

 

This Executive Long Term Incentive Plan (the “Plan”)
commenced on September 30, 2004 and was amended and restated with effect from February 24, 2009 and February 24, 2011 and was further
amended and restated with effect from January 23, 2013. The purpose of the Plan is to encourage eligible employees to invest in
common shares of the Company (“Common Shares”).

 

		2.	Eligibility

 

Any senior officers or senior employees of the Company or any
subsidiary of the Company (as such term is defined in the Securities Act (British Columbia)) as from time to time (anticipated
to be at least annually) specified by the Board of Directors of the Company (or the Compensation Committee thereof if so delegated)
(“Board of Directors”) as an eligible person for the purpose of this Plan shall be eligible to become a participant
of the Plan (“Eligible Person”).

 

		3.	Enrolment

 

In order to become a participant of the Plan (a “Participant”),
an Eligible Person must sign a participation form and other necessary documents as required by the Company (the “Participation
Documentation”). Each Eligible Person who wants to participate in a particular year must execute and deliver the Participation
Documentation to the Company on or before the 5th Business Day following receipt of notification of their performance bonus in
the particular fiscal year in accordance with section 6 hereof. Participation Documentation is available from the Corporate Secretary
of the Company. As part of the Participation Documentation, a Participant can specify that all Common Shares held by the Administrator
(as defined below) for him under the Plan shall be held in a joint account for him and his spouse, as joint tenants and if such
specification is made, the Participant and the Participant’s spouse shall both sign the Participation Documentation and be
bound by the terms and conditions of this Plan.

 

		4.	Compliance with Share Ownership Guideline

 

In order to align the interests of the Participants with those
of the shareholders of the Company, the Company has adopted a share ownership guideline (the “Share Ownership Guideline”)
as follows:

 

		(a)	Each Participant who is a member of the Company’s Senior Leadership Team (“SLT”)
or a Senior Vice President (collectively, “Senior Vice President or above”) shall be required to accumulate
ownership of Common Shares which are held by the Administrator with a minimum Share Value equal to three (3) times such person’s
relevant base salary from time to time; and

 

		(b)	Each Participant who is a Vice-President (or equivalent) of the Company shall be required to accumulate
ownership of Common Shares which are held by the Administrator with a minimum Share Value equal to two (2) times such person’s
relevant base salary from time to time; and

 

     

     

    

 

For the purpose of this provision, “Share Value”
shall be determined by aggregating (i) all acquisition costs of the Common Shares acquired directly and held by the Administrator
for the benefit of the Participant; and (ii) the deemed acquisition costs of any Common Shares acquired by the Participant outside
this Plan and transferred to the Administrator and held in accordance with section 5 of this Plan, as determined based on the closing
price of the Common Shares on the New York Stock Exchange on the date of transfer of such Common Shares to the Administrator.

 

For the purpose of this provision, the “relevant base
salary” shall be the base salary of the Participant as of February 1 of the particular year.

 

For all Participants whose relevant base salaries are denominated
in a currency other than United States dollars, the exchange rate to be used for all translation purposes under the Plan shall
be the average applicable U.S. dollar to foreign currency exchange rate for the immediate previous fiscal year.

 

An Eligible Person who has not yet met the applicable Share
Ownership Guideline as of February 1 in a particular year may either (a) participate in the Plan in accordance with section 6 of
this Plan or (b) not participate in the Plan.

 

		5.	Transfer of Shares to Administrator

 

For the purpose of satisfying the Share Ownership Guideline,
a Participant may, but shall not be required to, transfer Common Shares owned or controlled by him outside the Plan (the “Transferred
Shares”) to the Administrator to be held pursuant to the terms, conditions and restrictions provided hereunder. From
the date when the Transferred Shares are held by the Administrator, such shares shall be counted towards the satisfaction of the
Share Ownership Guideline for that Participant.

 

		6.	Participant’s Contributions

 

		(a)	Designation
                                         of Contribution. Subject to the provisions of subparagraph 6(b) and section 7 hereunder,
                                         each Participant shall designate in the Participation Documentation for each particular
                                         year commencing prior to January 1, 2014 the amount of his contribution under the Plan
                                         for the particular year (“Contribution”).

 

		(b)	Minimum
                                         and Maximum Designation. For any Participant who is not in compliance with the Company’s
                                         Share Ownership Guideline as of February 1 in a particular year commencing prior to January
                                         1, 2014, such Participant shall designate as their Contribution for that year an amount
                                         equal to at minimum the lesser of:

 

		(i)	50% of their ELTIP Entitlement under this Plan for the particular year;

 

		(ii)	50% of their short-term incentive bonus for the particular
year; and 

 

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		(iii)	the amount required for the Participant to be in compliance with the Share Ownership Guideline;

 

subject to a maximum of the ELTIP Target Entitlement
in accordance with section 7 hereunder.

 

For the purpose of this provision, the “Roll
Forward Entitlement” means the difference between the ELTIP Entitlement amount under section 7 for a Participant in the immediately
preceding year and the actual Contribution made by that Participant for that immediately preceding year.

 

For greater certainty, in the event that there is
no ELTIP Entitlement in accordance with this Plan in a particular year, a Participant is not required to make a Contribution, regardless
of their compliance with the Company’s Share Ownership Guideline. In addition, a Participant is not required to make a Contribution
that exceeds their short term incentive bonus for a particular year, regardless of their compliance with the Company’s Share
Ownership Guideline. In either case, a Participant may designate a Contribution at their option in that year, subject to the maximums
outlined above.

 

		(c)	No Contributions After 2013. Participants shall not designate or make any Contributions in any year commencing after
December 31, 2014. Participants shall not designate or make any Contributions in any year commencing after December 31, 2013, except
that, notwithstanding the foregoing, if a Participant has a Roll Forward Entitlement in the year ending December 31, 2013 as a
result of the Participant’s Contribution for the year ending December 31, 2013 being less than the Participant’s ELTIP
Entitlement under section 7 in that year, the Participant shall be entitled to designate and make a Contribution in 2014 in an
amount not exceeding the Participant’s Roll Forward Entitlement in respect of the year ending December 31, 2013.

 

		7.	ELTIP Entitlement 

 

Each Participant shall be entitled in respect of each year following
the commencement of the Plan until December 31, 2012 to an amount (the “ELTIP Entitlement”) equal to A x (B
/ 20%), where “A” is equal to the target ELTIP entitlement amount approved by the Board at the start of each year for
each Participant (the “ELTIP Target Entitlement”), and where “B” is equal to the Return in aggregate
for 12 quarters immediately preceding the date of determination divided by the Average Invested Capital in aggregate for 12 quarters
immediately preceding the date of the determination, subject to a maximum of 20%. “Return” for the purpose of
this provision means net income before interest and income taxes for a quarter, normalized for unusual gains or losses similar
to adjustments made to the target income for the MAC Short Term Incentive Bonus Plan. “Average Invested Capital”
for the purpose of this provision means average Total Shareholders’ Equity during a quarter plus average Long Term Debt outstanding
during that quarter. The ELTIP Entitlement so calculated in respect of any year shall be the Participant’s ELTIP Entitlement
for the purposes of Contributions in the following year. For example, the ELTIP Entitlement calculated in respect of the year ended
December 31, 2012 shall be the Participant’s ELTIP Entitlement for 2013 in respect of which Participants may make Contributions
in 2013.

 

    	 	3	 

     

    

 

No Participant shall be entitled to any further ELTIP Entitlement
in respect of any year after the year ended December 31, 2012.

 

		8.	ELTIP Award

 

Subject to subparagraphs 13(b) and 13(c) hereunder, for each
year that a Participant makes a Contribution, the Company shall pay to such Participant an ELTIP award amount (the “ELTIP
Award”) in cash equal to the lesser of :

 

		(a)	the amount of such Participant’s Contribution for that year; and

 

		(b)	the amount of such Participant’s ELTIP Entitlement
for that year plus their Roll Forward Entitlement.

 

Such ELTIP Award shall
be paid by the Company to the Participants at the same time as when the annual short term incentive bonuses are customarily paid,
subject to all necessary withholding taxes and other source deductions.

 

For greater certainty, since, as is provided in section
6, there will be no Contributions made by any Participant after the year ending December 31, 2013, there will be no ELTIP Awards
paid by the Corporation for any year after the year ending December 31, 2013 other than, in the circumstances described in section
6(c), if a Participant has a Roll Forward Entitlement in the year ending December 31, 2013 and makes a Contribution in 2014, the
Company shall pay to such Participant an ELTIP Award in cash equal to the amount of such Participant’s Contribution for
that year.

 

		9.	The Administrator and Establishment of Participants’ Accounts 

 

		(a)	The Administrator. The administrator of the Plan will be Canadian Western Trust (the “Administrator”).
The Company may change the Administrator to any other person at any time.

 

		(b)	Establishment of Accounts. The Administrator shall establish and maintain:

 

		(i)	an individual securities account or accounts (in case where subparagraph 13(b) applies) (a “Personal Securities Account”)
for each Participant to record the number of Common Shares of the Company and other assets held by the Administrator on behalf
of the Participant (showing year of acquisition, costs and other relevant details); and

 

		(ii)	an individual cash account (a “Personal Cash Account”) for each Participant to record cash received from
or on behalf of and distributed out to or on behalf of each Participant by the Administrator from time to time under this Plan.

 

    	 	4	 

     

    

 

		10.	Use of Contributions 

 

A Participant’s Contribution in a particular year shall
be paid by the Participant to the Administrator as soon as practicable (and in any event within two Business Days (as defined below)
after receipt of the Participant’s short term incentive bonus in that year) and the Administrator shall apply such Contribution
pursuant to the Participation Documentation towards the acquisition of Common Shares in the manner provided below during the Price
Determination Period (as defined below).

 

The Price Determination Period (the “Price
Determination Period”) for a particular year shall commence on the first day of the first trading window of that
fiscal year under the Company’s Policy regarding Securities Trades by Company Personnel (“Insider Trading
Policy”) that remains open for at least 5 days on which the New York Stock Exchange is open for trading
(“Business Days”) (which is usually the 4th Business Day following the day when the Company issues the
press release relating to the results of the immediately preceding fiscal year). The Price Determination Period shall end on
the last day of the first trading window for that year under the Company’s Insider Trading Policy that remains open for
at least 5 Business Days (the “Price Determination End Day”), which is usually the 11th Business Day prior
to the first quarter end of the Company in that year. For the purpose of this Plan, the Board of Directors shall have the
absolute authority to determine and confirm the exact commencement and end dates of the Price Determination Period for a
particular year and such determination and confirmation shall be final and conclusive.

 

The Administrator shall use the Participant’s Contribution
in a particular year to purchase Common Shares during the Price Determination Period on the New York Stock Exchange and such purchases
are made by the Administrator as agent for and on behalf of the Participants. The Administrator shall have sole discretion over
the timing and quantum of individual trades needed to accumulate the shares necessary to invest the combined Contributions of all
Participants for the relevant year towards purchase of Common Shares. The Administrator will, to the extent reasonably practicable,
attempt to make the purchases in a manner that does not disrupt the orderly market for the Common Shares. The Administrator may
in its discretion choose to have the Common Shares purchased under this Plan registered in the name of the Canadian Depository
for Securities Ltd.

 

		11.	Allocation of Common Shares to Personal Securities Accounts

 

Each year, following the full application of all Participants’
Contributions in purchasing Common Shares, the Administrator shall allocate the Common Shares acquired each day during the Price
Determination Period by allocating and crediting to the Personal Securities Accounts of each of the Participants, the number of
Common Shares that is equal to the product of (a) the quotient obtained by dividing such Participant’s aggregate Contribution
for that year by the sum of the Contributions of all Participants for that year, and (b) the total number of Common Shares purchased
by the Administrator on that day (partial share to be rounded at the Administrator’s sole discretion).

 

    	 	5	 

     

    

 

Payment for such Common Shares will be made by the Administrator
using Contributions received from the Participants pursuant to section 10 above. Subject to following the provisions relating to
allocation under this section, the Administrator shall have absolute discretion in allocating the Common Shares acquired under
this Plan among the Participants, notwithstanding that the Common Shares subject to allocation may have different acquisition costs
and the allocation by the Administrator of such Common Shares shall be final and binding on all Participants unless there are manifest
calculation errors. The Administrator shall record the number of Common Shares so purchased and allocated, the cost base and the
date of acquisition in such Participant’s Personal Securities Account. The Administrator shall hold all Common Shares and
other assets recorded in the Participants’ Personal Securities Account and Personal Cash Account in accordance with and subject
to the terms and conditions of this Plan.

 

		12.	Dividends and Distributions

 

All cash dividends and distributions on the Common Shares held
by the Administrator on behalf of the Participants shall be credited to such Participants’ Personal Cash Account and all
non-cash dividends or distributions on the Common Shares held by the Administrator on behalf of each of the Participants shall
be credited to such Participants’ Personal Securities Account. All cash or other distributions received and held by the Administrator
and credited to the Participant’s Personal Cash Account or Personal Securities Account shall be paid or transferred to the
Participants by the Administrator as soon as practicable after receipt of the same in accordance with the Administrator’s
records, subject to deduction or satisfaction of any applicable withholding tax as determined to be necessary in the sole discretion
of the Administrator.

 

		13.	Share Withdrawal

 

		(a)	Notice of Withdrawal. Subject to the provisions hereunder, a Participant (or his legal representative) may elect to
make withdrawals from his or her Personal Securities Account and receive all or part of the Common Shares in his or her Personal
Securities Account at the end of any month by providing at least one month’s notice to the Company’s Corporate Secretary
in the prescribed form as from time to time specified by the Administrator and delivered in accordance with section 27 hereunder
(the “Withdrawal Election”), provided that at least one of the following conditions is satisfied:

 

		(i)	the Participant has for any reason (including but not limited to resignation, death or termination for cause) ceased to be
an employee of the Company or its subsidiaries; or

 

		(ii)	the Participant is 55 years old or more and the Participant beneficially owns Common Shares held by the Administrator under
this Plan with a Share Value that exceeds the requirements of the Share Ownership Guideline, in which case such excess may be withdrawn,
subject to the provisions of subparagraph 13(d) hereunder; or

 

		(iii)	the Chief Executive Officer and Chairman of the Compensation Committee have approved such withdrawal by a Participant, whether
for extreme hardship or otherwise.

 

    	 	6	 

     

    

 

		(b)	In the event of withdrawal pursuant to subparagraph 13(a)(ii), all subsequent Contributions made by that Participant, to the
extent permitted hereunder, shall be used to purchase Common Shares to be held by the Administrator under a separate account and
no withdrawal shall be permitted from that account until the occurrence of events under subparagraph 13(a)(i) or 13(a)(iii).

 

		(c)	In the event that a Participant elects to withdraw Common Shares under the condition set out in subparagraph 13(a)(iii) above,
the Participant’s eligibility to receive any additional ELTIP Award from the Company for any future year shall, subject to
section 7, be determined pursuant to the terms and conditions as may be specified by the Chief Executive Officer and Chairman of
the Compensation Committee. For greater certainty, as specified in section 7, no Participant shall be entitled to any further ELTIP
Award after December 31, 2013.

 

		(d)	In the event that a Participant elects to withdraw Common Shares under the condition set out in subparagraph 13(a)(ii), the
number of Common Shares that the Participant shall be entitled to withdraw at any time shall be equal to the following:

 

	 	A x (B – 55 + 1) x 20% – C
	 	 
	 	Where:	 
	 	 	 
	 	A	=	the number of Common Shares held by the Administrator for the Participant as recorded in his Personal Securities Account at the time when the Participant makes the first withdrawal election;
	 	 	 	 
	 	B	=	age (in whole number, no rounding up) of the Participant at the time of the current withdrawal;
	 	 	 	 
	 	C	=	the number of Common Shares previously withdrawn under the Plan in accordance with subparagraph 13(a)(ii).

 

In no event shall a withdrawal
be allowed if such withdrawal will result in a breach of the requirements of the Share Ownership Guideline.

 

		(e)	Withdrawal Election - Personal Securities Account. No Participant shall be entitled to elect to make a Withdrawal
Election more than once in a calendar year unless specifically approved in writing by the Chief Executive Officer and Chairman
of the Compensation Committee. Upon receipt of a valid Withdrawal Election, the Administrator and the Company will cause to be
issued a share certificate representing the number of whole Common Shares in the Participant’s Personal Securities Account
specified in the Withdrawal Election registered in the name of the Participant or as otherwise directed by the Participant and
shall deliver such certificate to the Participant at an address specified in the Withdrawal Election. Alternatively, if a Participant
specifies in the Withdrawal Election that the Common Shares withdrawn shall be issued to a depository agent for his account, the
Company will cause such Common Shares to be issued in accordance with such instructions on the Withdrawal Election and evidence
of such issuance shall constitute full discharge of the obligations of the Company to the Participant under this section.

 

    	 	7	 

     

    

 

		14.	Termination of Employment

 

		(a)	Unless specified otherwise in writing by the Chief Executive Officer and the Chairman of the Compensation Committee, if a Participant
ceases to work as an active employee of the Company or its subsidiaries (other than for death, disability or leave of absence provided
for below), including but not limited to, resignation, termination or retirement, the Participant shall be deemed to have ceased
to be a Participant in the Plan effective from the date when the Participant ceases to report to work at the Company or its subsidiaries
(the “Cessation Date”). Upon receipt of notification from the Company that such cessation occurs and if the
Administrator does not receive a Participant’s Withdrawal Election pursuant to section 13, the Administrator shall within
a reasonable time send to the Participant a share certificate registered in the Participant’s name representing all Common
Shares recorded in the Participant’s Personal Securities Account and any other cash or assets recorded in the Participant’s
Personal Cash Account, all as of the Cessation Date. If a Participant’s Withdrawal Election pursuant to section 13 is received
by the Administrator from such Participant within 30 days of the Cessation Date, the Administrator shall carry out the instructions
contained therein within 10 Business Days of receipt of same and transfers shall be made to that Participant or as he directs within
10 Business Days.

 

		(b)	Settlement in the manner provided in subparagraph 14(a) shall serve as full discharge of all obligations of the Company and
the Administrator to a Participant under the Plan.

 

		15.	Death of a Participant

 

If a Participant should die during any period of employment,
subject to requirements of applicable law (as determined by the Company), the beneficiary designated by a Participant in the Participation
Documentation or the estate of the deceased Participant, as the case may be, shall be entitled to receive all Common Shares, assets
and cash recorded in the Participant’s Personal Securities Account and Personal Cash Account, respectively. A married Participant’s
designation of a non-spouse beneficiary shall be effective only to the extent that the Participation Documentation includes the
spouse’s consent to such designation, in a form acceptable to the Company, where such consent is required by applicable law.
Nothing herein shall require the Company or the Administrator to transfer any Common Shares or assets in a Participant’s
Personal Securities Account or Personal Cash Account to any person if in the sole opinion of the Company, such transfer may be
in breach of applicable laws or would result in liabilities to the Company.

 

		16.	Disability or Leave of Absence

 

In the event that a Participant becomes disabled or takes a
leave of absence, whether that Participant may continue his participation or whether such participation under the Plan will be
suspended or terminated shall be at the discretion of the Chief Executive Officer and the Chairman of the Compensation Committee.

 

    	 	8	 

     

    

 

		17.	Plan Administrator Duties

 

No amendment, change or modification shall be made to the Plan
which will, without the Administrator’s written consent, alter the duties of the Administrator under the Plan.

 

		18.	Administrator and Costs

 

The Company shall appoint the Administrator and shall enter
into an agreement with such Administrator as the Company deems appropriate. The Administrator shall not be liable to any Participant
for any loss resulting from a decline in the market value of any securities held by the Administrator on behalf of the Participants
under this Plan. The Company shall be responsible for all costs and administration fees relating to the design, set up, implementation
and administration of this Plan.

 

		19.	Conclusive Records

 

The Administrator shall keep or cause to be kept such records
and open and maintain accounts in the names of the Participants as may be necessary or appropriate for the efficient and effective
administration of the Plan. Records of the Administrator and the Company shall be conclusive as to all matters involved in the
administration of the Plan.

 

		20.	Account Statements

 

Each Participant shall receive a statement of account detailing
all transactions recorded in the Participant’s Personal Securities Account and Personal Cash Account by the Administrator
semi-annually as at June 30 and December 31 of each year. The Administrator shall issue to all Participants, on a timely basis,
the income tax reporting information which is required by applicable tax legislation. A tax form reflecting investment income shall
be sent annually to each Participant.

 

		21.	Reports to Participants and Voting

 

The Administrator and the Company will arrange for each Participant
to receive all communications provided to shareholders of the Company, including notices of meetings of holders of Common Shares.
The same shall apply for the Allowed Securities. A Participant may vote by proxy at a meeting of shareholders of the Company in
respect to those Common Shares held on his behalf by the Administrator in his Personal Securities Account at the record date for
such meeting and the Administrator shall arrange for appropriate proxies to be executed and delivered to the Participant or the
Company to effect this.

 

For any offer, proposal or arrangement made in respect of the
Common Shares or the Allowed Securities, the Administrator shall send to the Participants all notices, information circulars and
other documents received by it relating thereto and shall seek and carry out the instructions from the Participant in relation
thereto, except that if any such instruction involves the withdrawal of Common Shares from the Participant’s Personal Securities
Account, the provisions under this Plan including but not limited to section 13, will apply and such instructions will be carried
out to the extent consistent therewith.

 

    	 	9	 

     

    

 

		22.	Change or Termination of the Plan

 

The terms of the Plan are subject to various regulatory and
other approvals, consents or requirements as may be applicable from time to time. Accordingly, the Plan may be amended or suspended
to comply with such approvals, consents or requirements without prior consultation or approval from the Participants. While the
Company has every intention of continuing the Plan, the Board of Directors may at any time, subject to regulatory approval and
applicable laws, amend or discontinue the Plan in any manner it deems advisable. If the Plan is discontinued, Common Shares and
cash held by the Administrator on behalf of each Participant in the Participant’s Personal Securities Account and Personal
Cash Account shall be distributed to each Participant as if termination of each Participants’ employment had occurred.

 

		23.	No Entitlement

 

This Plan and participation in this Plan will not give any Participant
any right or claim to any benefit except to the extent specifically provided for in the Plan and for clarification purpose, this
Plan and participation therein does not confer on any Participant any right or entitlement to any bonus payment from the Company.
Annual performance and other bonuses for the Company’s senior officers and senior employees have always been and are expected
to continue to be determined or approved at the discretion of the Board of Directors.

 

		24.	Applicable Law

 

The Plan shall be governed, construed and administered in accordance
with the laws of the Province of British Columbia.

 

		25.	Assignment and Enurement

 

		(a)	Any benefits payable under the terms of this Plan are for the Participant’s own use and benefit, are not capable of assignment,
alienation or surrender without the prior written consent of the Company or as provided for under this Plan, and do not confer
upon any Participant, his beneficiary, personal representative, dependent, or any other person, any right or interest in the benefits,
if any, capable of being assigned, surrendered, or otherwise alienated.

 

		(b)	The rights and obligations of the Company, the Administrator and the Participants pursuant to this Plan shall be binding upon
and shall enure to the benefit of each Company, the Administrator and the Participants, respectively, and each of their permitted
successor and assigns. The rights and obligations of the Administrator and the Participants under this Plan may not be assigned
without the consent of the Company. The rights and obligations of the Administrator and the Participants under this Plan may be
assigned by the Company to a successor in the business of the Company or to a corporation with which the Company may amalgamate
or merge or a corporation resulting from any reconstruction or reorganization of the Company.

 

    	 	10	 

     

    

 

		26.	Severability and Extended Meaning

 

If any provisions of this Plan or the application thereof to
any person or circumstances shall be invalid or unenforceable to any extent, the remainder of the Plan and the application of such
provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted
by law. In this Plan, words importing the singular number only include the plural and vice versa and words importing any gender
include all genders.

 

		27.	Notice

 

Any Withdrawal Election or any other notice to be given by the
Company, the Administrator or any Participant shall be in writing signed by an authorized signatory of the party giving the notice.
Any such notice shall be addressed to the relevant party at its address set out below or at such other address as may be notified
from time to time in accordance with section 27 and delivered or sent by facsimile to such party:

 

		(a)	If to the Company:

 

9500 Glenlyon Parkway 

Burnaby, BC, Canada 

V5J 0C6

 

Facsimile: 778.331.5500

 

Attention: Corporate Secretary

 

		(b)	If to the Administrator:

 

Suite 2200, 666 Burrard Street

Vancouver,
British Columbia

V6C 2X8

 

Facsimile: 604-669-6069 

Attention: Managing Director,
Fiduciary Operations and Risk Management

 

		(c)	If to a Participant:

 

As set out in the Participation Documentation.

 

Any such notice shall be deemed to have been received at the
time of delivery, or time of sending if by facsimile (provided complete transmission is confirmed), provided that any delivery
made or facsimile shall be deemed to have been received at 9:00 a.m. (Vancouver time) on the next following Business Day. Any
facsimile shall be followed by a delivery of the same document by hand, courier or by mail, provided that notice shall be deemed
to have been validly sent by facsimile notwithstanding inadvertent failure to deliver the same document by hand, courier or mail.

 

    	 	11

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