Document:

Exhibit

 Exhibit 10.3
Execution Version

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“Agreement”) is made and entered into by and between Hi-Crush Services LLC, a Delaware limited liability company (the “Company”), and Mark C. Skolos (“Employee”) effective as of September 19, 2019 (the “Effective Date”) and amends and replaces that certain Employment Agreement between Employee and Hi-Crush Proppants LLC dated April 16, 2012 (the “Prior Agreement”). Hi-Crush Inc., a Delaware corporation and parent of the Company (the “Parent”), enters into this Agreement for the limited purposes of acknowledging and agreeing to Sections 3(c), 7(f)(iii)(D), 7(f)(iii)(E) and 7(f)(iv).

1.Employment.  During the Employment Period (as defined in Section 4), the Company shall continue to employ Employee, and Employee shall continue to serve, as General Counsel and Secretary of the Company and in such other position or positions as may be assigned from time to time by the Company. Employee’s employment with the Company is at-will, which means that the employment relationship may be terminated at any time, with or without Cause (as defined in Section 7), or with or without Good Reason (as defined in Section 7), at the option of either the Company or Employee.
2.    Duties and Responsibilities of Employee.
(a)    During the Employment Period, Employee shall devote Employee’s best efforts and full business time and attention to the businesses of the Hi-Crush Inc. (the “Parent”) and its direct and indirect subsidiaries as may exist from time to time, including the Company (collectively, the Parent and its direct and indirect subsidiaries are referred to as the “Company Group”) as may be requested by the Company from time to time.  Employee may, without violating this Section 2(a), (i) as a passive investment, own publicly traded securities in such form or manner as will not require any services by Employee in the operation of the entities in which such securities are owned; (ii) engage in charitable and civic activities; or (iii) with the prior written consent of the board of directors of the Parent (the “Board”), engage in other personal and passive investment activities, in each case, so long as such ownership, interests or activities do not interfere with Employee’s ability to fulfill Employee’s duties and responsibilities under this Agreement and are not inconsistent with Employee’s obligations to any member of the Company Group or competitive with the Business (as defined below). 
(b)    Employee hereby represents and warrants that Employee is not the subject of, or a party to, any employment agreement, non-competition, non-solicitation, restrictive covenant or non-disclosure agreement, or any other agreement, obligation, restriction or understanding that would prohibit Employee from executing this Agreement or fully performing each of Employee’s duties and responsibilities hereunder, or would in any manner, directly or indirectly, limit or affect any of the duties and responsibilities that may now or in the future be assigned to Employee hereunder.  Employee expressly acknowledges and agrees that Employee is strictly prohibited from using or disclosing any confidential information belonging to any prior employer in the course of performing services for any member of the Company Group, and Employee promises that Employee shall not do so.  Employee shall not introduce documents or other materials containing confidential information of any prior employer to the premises or property (including computers and computer systems) of any member of the Company Group.
(c)    Employee owes each member of the Company Group fiduciary duties (including (i) duties of loyalty and disclosure and (ii) such fiduciary duties that an officer of a corporation owes under the laws of the State of Delaware), and the obligations described in this Agreement are in addition to, and not in lieu of, the obligations Employee owes each member of the Company Group under statutory and common law.

3.    Compensation.  
(a)    Base Salary.  During the Employment Period, the Company shall pay to Employee an annualized base salary equal to $335,000 (the “Base Salary”) in consideration for Employee’s services under this Agreement, payable in conformity with the Company’s customary payroll practices for similarly situated employees (which, as of the Effective Date, call for bi-weekly payments) as may exist from time to time. Notwithstanding the foregoing, the Company may reduce Employee’s Base Salary as part of one or more proportionate reductions applicable to similarly situated employees of the Company.
(b)    Annual Cash Bonus.  Employee shall be eligible beginning with the 2019 calendar year for a discretionary annual cash bonus compensation for each calendar year that Employee is employed by the Company hereunder (the “Annual Bonus”), which Annual Bonus will be determined by the Board (or a committee thereof) in its sole discretion.  Each Annual Bonus, if any, shall be paid as soon as administratively feasible after the Board (or a committee thereof) certifies whether any applicable performance targets for the applicable calendar year (the “Bonus Year”) have been achieved, but in no event later than March 15 following the end of such Bonus Year.  Notwithstanding anything in this Section 3(b) to the contrary, except in connection with a Qualifying Termination as set forth herein, no Annual Bonus, if any, nor any portion thereof, shall be payable for any Bonus Year unless Employee remains continuously employed by the Company from the Effective Date through the date on which such Annual Bonus is paid. 
(c)    Annual Equity Awards.  During the Employment Period, Employee shall be eligible to receive annual awards under the long-term incentive plan of the Parent as may be in effect from time to time (the “LTIP”). All awards granted to Employee under the LTIP, if any, shall be in such amounts and on such terms and conditions as the Board or a committee thereof shall determine from time to time, and shall be subject to and governed by the terms and provisions of the LTIP as in effect from time to time and the award agreements evidencing such awards. Nothing herein shall be construed to give Employee any rights to any amount or type of grant or award except as provided in an award agreement and authorized by the Board or a committee thereof.
4.    Term of Employment.  The initial term of Employee’s employment under this Agreement shall be for the period beginning on the Effective Date and ending on the first (1st) anniversary of the Effective Date (the “Initial Term”).  On the first (1st) anniversary of the Effective Date and on each subsequent anniversary thereafter, the term of Employee’s employment under this Agreement shall automatically renew and extend for a period of twelve (12) months (each such twelve (12)-month period being a “Renewal Term”) unless written notice of non-renewal is delivered by either party to the other not less than thirty (30) days prior to the expiration of the then-existing Initial Term or Renewal Term, as applicable.  Notwithstanding any other provision of this Agreement, Employee’s employment pursuant to this Agreement may be terminated at any time in accordance with Section 7.  The period from the Effective Date through the expiration of this Agreement or, if sooner, the termination of Employee’s employment pursuant to this Agreement, regardless of the time or reason for such termination, shall be referred to herein as the “Employment Period.”
5.    Business Expenses.  Subject to Section 24, the Company shall reimburse Employee for Employee’s reasonable out-of-pocket business-related expenses actually incurred in the performance of Employee’s duties under this Agreement so long as Employee timely submits all documentation for such expenses, as required by any Company Group policy in effect from time to time.  Any such reimbursement of expenses shall be made by the Company upon or as soon as practicable following receipt of such documentation (but in any event not later than ninety (90) days after such expense is submitted).  In no event shall any reimbursement be made to Employee for any expenses incurred after the date of Employee’s termination of employment with the Company.  All reasonable business-related travel, meals and lodging expenses by Employee in connection with performing duties hereunder shall be reimbursable expenses.

2

6.    Benefits.  During the Employment Period, Employee shall be eligible to participate in the same benefit plans and programs in which other similarly situated Company employees are eligible to participate, subject to the terms and conditions of the applicable plans and programs in effect from time to time. The Company shall not, however, by reason of this Section 6, be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such plan or policy, so long as such changes are similarly applicable to similarly situated Company employees generally. 
7.    Termination of Employment.
(a)    Company’s Right to Terminate Employee’s Employment for Cause.  The Company shall have the right to terminate Employee’s employment hereunder at any time for Cause.  For purposes of this Agreement, “Cause” shall mean: 
(i)    Employee’s material breach of this Agreement or any other written agreement between Employee and one or more members of the Company Group, including Employee’s material breach of any representation, warranty or covenant made under any such agreement;
(ii)    Employee’s material breach of any law applicable to the workplace or employment relationship, or Employee’s material breach of a policy or code of conduct established by a member of the Company Group and applicable to Employee (including any policy regarding drug-free workplaces);
(iii)    Employee’s gross negligence, willful misconduct, breach of fiduciary duty, fraud, theft or embezzlement;
(iv)    the commission by Employee of, or conviction or indictment of Employee for, or plea of nolo contendere by Employee to, any felony (or state law equivalent) or any crime involving moral turpitude; or
(v)    Employee’s material failure or refusal to perform Employee’s obligations pursuant to this Agreement or chronic absenteeism, in either case other than due to Disability, or to follow any lawful directive from the Company, as determined by the Company; provided, however, that if Employee’s actions or omissions as set forth in this Section 7(a)(v) are of such a nature that the Company determines that they are curable by Employee, such actions or omissions must remain uncured thirty (30) days after the Company first provided Employee written notice of the obligation to cure such actions or omissions.
(b)    Company’s Right to Terminate for Convenience.  The Company shall have the right to terminate Employee’s employment for convenience at any time and for any reason, or no reason at all, upon two (2) weeks’ prior written notice to Employee. In the event the Company selects a Termination Date that is less than two (2) weeks after written notice of termination, the Company shall pay Employee the Base Salary through the date that is two (2) weeks after notice of termination was given.
(c)    Employee’s Right to Terminate for Good Reason.  Employee shall have the right to terminate Employee’s employment with the Company at any time for Good Reason.  For purposes of this Agreement, “Good Reason” shall mean:
(i)    a material diminution in Employee’s Base Salary (other than a proportionate reduction in accordance with the last sentence of Section 3(a));

3

(ii)    a material breach by the Company of any of its obligations under this Agreement or by the Company Group under any other written agreement with Employee; or
(iii)    the relocation of the geographic location of Employee’s principal place of employment by more than fifty (50) miles from the then-current location of Employee’s principal place of employment.
Notwithstanding the foregoing provisions of this Section 7(c) or any other provision of this Agreement to the contrary, any assertion by Employee of a termination for Good Reason shall not be effective unless all of the following conditions are satisfied: (A) the condition described in Section 7(c)(i), (ii) or (iii) giving rise to Employee’s termination of employment must have arisen without Employee’s prior written consent; (B) Employee must provide written notice to the Board of the existence of such condition(s) within fifteen (15) days after the initial occurrence of such condition(s); (C) the condition(s) specified in such notice must remain uncorrected for thirty (30) days following the Board’s receipt of such written notice; and (D) the date of Employee’s termination of employment must occur within seventy-five (75) days after the initial occurrence of the condition(s) specified in such notice.
(d)    Death or Disability.  Except as set forth in Section 7(f)(iv), upon the death or Disability of Employee, Employee’s employment with the Company shall automatically (and without any further action by any person or entity) terminate with no further obligation under this Agreement of either party hereunder.  For purposes of this Agreement, a “Disability” shall exist if the Board determines in good faith that Employee is unable to perform the essential functions of Employee’s position (after accounting for reasonable accommodation, if applicable and required by applicable law), due to physical or mental impairment that continues, or can reasonably be expected to continue, for a period in excess of one hundred-twenty (120) consecutive days or one hundred-eighty (180) days, whether or not consecutive (or for any longer period as may be required by applicable law), in any twelve (12)-month period.  
(e)    Employee’s Right to Terminate for Convenience.  In addition to Employee’s right to terminate Employee’s employment for Good Reason, Employee shall have the right to terminate Employee’s employment with the Company for convenience at any time and for any other reason, or no reason at all, upon thirty (30) days’ advance written notice to the Company; provided, however, that if Employee has provided notice to the Company of Employee’s termination of employment, the Company may determine, in its sole discretion, that such termination shall be effective on any date prior to the effective date of termination provided in such notice (and, if such earlier date is so required, then it shall not change the basis for Employee’s termination of employment nor be construed or interpreted as a termination of employment pursuant to Section 7(b)).
(f)    Effect of Termination. 
(i)    As used herein:
(A)    “CIC Protection Period” means the twenty-four (24) month period following a Change in Control (as defined in the LTIP).
(B)    “Qualifying Termination” means (x) a termination by the Company without Cause pursuant to Section 7(b) or (y) a termination by Employee for Good Reason pursuant to Section 7(c), in each case, prior to the expiration of the then-existing Initial Term or Renewal Term, as applicable.

4

(ii)    Upon Employee’s termination of employment for any reason, in accordance with the Company’s customary payroll practices, the Company shall pay Employee (A) all unpaid Base Salary, (B) all accrued, unused vacation time, if any, in accordance with the Company’s vacation policies as in effect from time to time and (C) any unreimbursed business expenses incurred prior to the Termination Date, payable in accordance with Section 5.
(iii)    If Employee’s employment hereunder is terminated as a result of a Qualifying Termination, then so long as (and only if) Employee: (A) executes on or before the Release Expiration Date (as defined below), and does not revoke within any time provided by the Company to do so, a release of all claims in a form acceptable to the Company (the “Release”), which Release shall release each member of the Company Group and their respective affiliates, and the foregoing entities’ respective shareholders, members, partners, officers, managers, directors, fiduciaries, employees, representatives, agents and benefit plans (and fiduciaries of such plans) from any and all claims, including any and all causes of action arising out of Employee’s employment with the Company and any other member of the Company Group or the termination of such employment, but excluding all claims to severance payments Employee may have under this Section 7; and (B) abides by the terms of each of Sections 9, 10 and  11, then:
(A)    The Company shall make severance payments to Employee in a total amount equal to (I) twelve (12) months’ of Employee’s Base Salary as of the Termination Date (as defined below), or (II) if the Termination Date is during a CIC Protection Period, eighteen (18) months’ of Employee’s Base Salary, plus, solely in the case of this clause (II), one and a half (1.5) times Employee’s target Annual Bonus for the Bonus Year in which the Termination Date occurs (such total severance payments being referred to as the “Severance Payment”); provided, however, if the termination occurs as a result of Employee’s resignation for Good Reason resulting from a material diminution in Employee’s Base Salary, then the Base Salary for calculating the amount of the Severance Payment shall be the amount of the Base Salary immediately prior to such material diminution. The Severance Payment will be divided into substantially equal installments paid over the twelve (12)-month period (if the Termination Date is during a CIC Protection Period, over an eighteen (18)-month period) following the date on which Employee’s employment terminates (the “Termination Date”). On the Company’s first regularly scheduled pay date that is on or after the date that is sixty (60) days after the Termination Date (the “First Payment Date”), the Company shall pay to Employee, without interest, a number of such installments equal to the number of such installments that would have been paid during the period beginning on the Termination Date and ending on the First Payment Date had the installments been paid on the Company’s regularly scheduled pay dates on or following the Termination Date, and each of the remaining installments shall be paid on the Company’s regularly scheduled pay dates during the remainder of such twelve (12)- or eighteen (18)-month period, as applicable; provided, however, that to the extent, if any, that the aggregate amount of the installments of the Severance Payment that would otherwise be paid pursuant to the preceding provisions of this Section 7(f)(iii)(A) after March 15 of the calendar year following the calendar year in which the Termination Date occurs (the “Applicable March 15”) exceeds the maximum exemption amount under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A), then such excess shall be paid to Employee in a lump sum on the Applicable March 15 (or the first business day preceding the Applicable March 15 if the Applicable March 15 is not a business day) and the installments of the Severance Payment payable after the Applicable March 15 shall be reduced by such excess (beginning with the installment first payable after the Applicable March 15 and continuing with the next succeeding installment until the aggregate reduction equals such excess).  

5

(B)    During the portion, if any, of the twelve (12)-month (or, if the Termination Date is during a CIC Protection Period, eighteen (18)-month) period following the Termination Date (the “Reimbursement Period”) that Employee elects to continue coverage for Employee and Employee’s spouse and eligible dependents, if any, under the Company’s group health plans pursuant to Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company shall promptly reimburse Employee on a monthly basis for the difference between the amount Employee pays to effect and continue such coverage and the employee contribution amount that similarly situated employees of the Company pay for the same or similar coverage under such group health plans (the “COBRA Benefit”). Each payment of the COBRA Benefit shall be paid to Employee on the Company’s first regularly scheduled pay date in the calendar month immediately following the calendar month in which Employee submits to the Company documentation of the applicable premium payment having been paid by Employee, which documentation shall be submitted by Employee to the Company within thirty (30) days following the date on which the applicable premium payment is paid. Employee shall be eligible to receive such reimbursement payments until the earliest of: (1) the last day of the Reimbursement Period; (2) the date Employee is no longer eligible to receive COBRA continuation coverage; and (3) the date on which Employee becomes eligible to receive coverage under a group health plan sponsored by another employer (and any such eligibility shall be promptly reported to the Company by Employee); provided, however, that the election of COBRA continuation coverage and the payment of any premiums due with respect to such COBRA continuation coverage shall remain Employee’s sole responsibility, and the Company shall not assume any obligation for payment of any such premiums relating to such COBRA continuation coverage.  Notwithstanding the foregoing, if the provision of the benefits described in this Section 7(f)(iii)(B) cannot be provided in the manner described above without penalty, tax or other adverse impact on the Company or any other member of the Company Group, then the Company and Employee shall negotiate in good faith to determine an alternative manner in which the Company may provide substantially equivalent benefits to Employee without such adverse impact on the Company or such other member of the Company Group.
(C)    The Company shall pay Employee a pro-rata portion of the Annual Bonus for the Bonus Year in which the Termination Date occurs, which pro-rata portion shall equal (x) the Annual Bonus, if any, earned for the Bonus Year in which the Termination Date occurs based on actual performance, multiplied by (y) a fraction, the numerator of which is the number of days that have elapsed from the beginning of such Bonus Year through the Termination Date and the denominator of which is the total number of days in such Bonus Year (the “Pro-Rata Bonus”).  The Pro-Rata Bonus, if any, will be paid on the date Annual Bonuses for such Bonus Year are paid to other executives of the Company. 
(D)    On the date that is sixty (60) days following the Termination Date, all of Employee’s outstanding time-based equity awards granted pursuant to the LTIP shall be deemed to be fully vested effective as of the Termination Date. 
(E)    On the date that is sixty (60) days following the Termination Date, a pro-rata portion of Employee’s outstanding performance-based equity awards granted pursuant to the LTIP shall become earned based on actual performance through the Termination Date; provided, however, that if the Termination Date is within the CIC Protection Period, all of Employee’s outstanding performance-based equity awards granted pursuant to the LTIP shall be deemed to be earned at target levels of performance. 

6

(F)    The Annual Bonus applicable to any prior completed Bonus Year to the extent the Annual Bonus has not been paid as of the Termination Date with respect to such Bonus Year.
The payments and benefits described in clauses (A), (B), (C), (D), (E) and (F) above are collectively referred to herein as the “Termination Benefits.”
(iv)    If Employee’s employment hereunder is terminated as a result of Employee’s death or Disability pursuant to Section 7(d), then (A) all of Employee’s outstanding time-based equity awards granted pursuant to the LTIP shall become fully vested on the Termination Date and (B) a pro-rata portion of Employee’s outstanding performance-based equity awards granted pursuant to the LTIP shall become earned based on actual performance through the Termination Date. 
(v)    Notwithstanding anything herein to the contrary, the Termination Benefits (and any portion thereof) shall not be payable if Employee’s employment hereunder terminates upon the expiration of the then-existing Initial Term or Renewal Term, as applicable, as a result of a non-renewal of the term of Employee’s employment under this Agreement by the Company or Employee pursuant to Section 4.
(vi)    If the Release is not executed and returned to the Company on or before the Release Expiration Date, and the required revocation period has not fully expired without revocation of the Release by Employee, then Employee shall not be entitled to any portion of the Termination Benefits.  As used herein, the “Release Expiration Date” is that date that is twenty-one (21) days following the date upon which the Company delivers the Release to Employee (which shall occur no later than seven (7) days after the Termination Date) or, in the event that such termination of employment is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the date that is forty-five (45) days following such delivery date.
(vii)    Nothing contained in this Section 7 shall be construed as entitling Employee to receive, from and after the Termination Date, any of the benefits which Employee would otherwise be entitled to receive hereunder, other than the right to receive the Termination Benefits in the event of a Qualifying Termination as provided for in this Section 7.
(g)    After-Acquired Evidence.  Notwithstanding any provision of this Agreement to the contrary, in the event that the Company determines that Employee is eligible to receive the Termination Benefits pursuant to Section 7(f) but, after such determination, the Company subsequently acquires evidence or determines that: (i) Employee has failed to abide by the terms of Sections 9, 10 or 11; or (ii) prior to the end of the payment of the Termination Benefits, the Company determines that a Cause condition existed prior to the Termination Date that, had the Company been fully aware of such condition, would have given the Company the right to terminate Employee’s employment pursuant to Section 7(a), then the Company shall have the right to cease the payment of any future installments of the Termination Benefits and Employee shall promptly return to the Company all installments of the Termination Benefits received by Employee prior to the date that the Company determines that the conditions of this Section 7(g) have been satisfied.

7

8.    Disclosures.  Promptly (and in any event, within three (3) business days) upon becoming aware of (a) any actual or potential Conflict of Interest or (b) any lawsuit, claim or arbitration filed against or involving Employee or any trust or vehicle owned or controlled by Employee, in each case, Employee shall disclose such actual or potential Conflict of Interest or such lawsuit, claim or arbitration to the Board.  A “Conflict of Interest” shall exist when Employee engages in, or plans to engage in, any activities, associations, or interests that conflict with, or create an appearance of a conflict with, Employee’s duties, responsibilities, authorities, or obligations for and to any member of the Company Group.  
9.    Confidentiality.  In the course of Employee’s continued employment with the Company and in order to assist Employee with the performance of Employee’s duties on behalf of the Company Group hereunder, the Company will provide Employee with, Employee will develop on the Company’s behalf, and Employee will have access to, Confidential Information (as defined below).  In consideration of Employee’s receipt, development, and access to such Confidential Information, and as a condition of Employee’s employment, Employee shall comply with this Section 9.  
(a)    Both during the Employment Period and thereafter, except as expressly permitted by this Agreement or by directive of the Board, Employee shall not disclose any Confidential Information to any person or entity and shall not use any Confidential Information except for the benefit of the Company Group.  Employee acknowledges and agrees that Employee would inevitably use and disclose Confidential Information in violation of this Section 9 if Employee were to violate any of the covenants set forth in Section 10.  Employee shall follow all Company Group policies and protocols regarding the security of all documents and other materials containing Confidential Information (regardless of the medium on which Confidential Information is stored).  The covenants of this Section 9(a) shall apply to all Confidential Information, whether now known or later to become known to Employee during the period that Employee is employed by or affiliated with the Company or any other member of the Company Group.
(b)    Notwithstanding any provision of Section 9(a) to the contrary, Employee may make the following disclosures and uses of Confidential Information:
(i)    disclosures to other employees of a member of the Company Group who have a need to know the information in connection with the businesses of the Company Group;
(ii)    disclosures to customers and suppliers when, in the reasonable and good faith belief of Employee, such disclosure is in connection with Employee’s performance of Employee’s duties under this Agreement and is in the best interests of the Company Group;
(iii)    disclosures and uses that are approved in writing by the Board; or
(iv)    disclosures to a person or entity that has (x) been retained by a member of the Company Group to provide services to one or more members of the Company Group and (y) agreed in writing to abide by the terms of a confidentiality agreement.

8

(c)    All trade secrets, non-public information, designs, ideas, concepts, improvements, product developments, discoveries and inventions, whether patentable or not, that are conceived, made, developed or acquired by or disclosed to Employee, individually or in conjunction with others, during the period that Employee is employed by the Company or any other member of the Company Group (whether during business hours or otherwise and whether on the Company’s premises or otherwise) that relate to any member of the Company Group’s businesses or properties, products or services (including all such information relating to methods, designs, drawings, technical information (including as relating to all silo, container, belt, hopper bottom and chassis/tractor/trailer equipment), methods to hire, train and compensate employees, contact information, methods to locate and qualify contractors, vendors and third party factories, and identity of companies contractors, vendors and third party factories and contacts of those with whom members of the Company Group have dealt, amounts/types of goods/services purchased in the past from contractors, vendors and third parties and amounts paid for such past purchases, identity of customers – the individual and their contact information, at customers with whom Employee has dealt, amounts and types of products and services purchased in the past  by customers and the amount paid for such past purchases, timing of such past purchases, method of payment, the Company Group’s plans for future products and services, details of ongoing or planned negotiations for future products and services and plans for future, including plans for products and services, for geographic and customer markets and for marketing, promotion, selling, distribution and providing products and services, databases, frameworks, models, marketing, sales, financial plans or results, training and technical information, business methods, policies, business systems, technology, computer programs (including as relating to supply chain inventory planning, supply/demand, logistics, dispatch, tracking, scanning and billing software, applications and systems), research or development projects or results, scientific studies and any and all information relating to projected business activity or other business arrangements, management organization structure information, manuals, merchandising and selling techniques and records) is defined as “Confidential Information.” Moreover, all documents, videotapes, written presentations, brochures, drawings, memoranda, notes, records, files, correspondence, manuals, models, specifications, computer programs, e-mail, voice mail, electronic databases, maps, drawings, architectural renditions, models and all other writings or materials of any type including or embodying any of such information, ideas, concepts, improvements, discoveries, inventions and other similar forms of expression are and shall be the sole and exclusive property of the Company or the other applicable member of the Company Group and be subject to the same restrictions on disclosure applicable to all Confidential Information pursuant to this Agreement.  For purposes of this Agreement, Confidential Information shall not include any information that (i) is or becomes generally available to the public other than as a result of a disclosure or wrongful act of Employee or any of Employee’s agents; (ii) was available to Employee on a non-confidential basis before its disclosure by a member of the Company Group; or (iii) becomes available to Employee on a non-confidential basis from a source other than a member of the Company Group; provided, however, that such source is, after due inquiry, not known to be bound by a confidentiality agreement with, or other obligation with respect to confidentiality to, a member of the Company Group.  

9

(d)    Notwithstanding the foregoing, nothing in this Agreement shall prohibit or restrict Employee from lawfully: (i) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by, any governmental authority regarding a possible violation of any law; (ii) responding to any inquiry or legal process directed to Employee from any such governmental authority; (iii) testifying, participating or otherwise assisting in any action or proceeding by any such governmental authority relating to a possible violation of law; or (iv) making any other disclosures that are protected under the whistleblower provisions of any applicable law.  Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (1) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and (2) solely for the purpose of reporting or investigating a suspected violation of law; (B) is made to the individual’s attorney in relation to a lawsuit for retaliation against the individual for reporting a suspected violation of law; or (C) is made in a complaint or other document filed in a lawsuit or proceeding, if such filing is made under seal.  Nothing in this Agreement requires Employee to obtain prior authorization before engaging in any conduct described in this paragraph, or to notify the Company that Employee has engaged in any such conduct. 
10.    Non-Competition; Non-Solicitation.
(a)    The Company shall provide Employee access to Confidential Information for use only during the Employment Period, and Employee acknowledges and agrees that the Company Group will be entrusting Employee, in Employee’s unique and special capacity, with developing the goodwill of the Company Group, and as a condition of the Company providing Employee with access to Confidential Information and as an express incentive for the Company to enter into this Agreement and employ Employee, Employee has voluntarily agreed to the covenants set forth in this Section 10.  Employee is a member of the Company’s executive or management personnel, and Employee expressly agrees and acknowledges that Employee is receiving new and valuable consideration following Employee’s entry into this Agreement, and the limitations and restrictions set forth herein, including geographical and temporal restrictions on certain competitive activities, are reasonable in all respects, will not cause Employee undue hardship, and are material and substantial parts of this Agreement intended and necessary to prevent unfair competition and to protect the Company Group’s Confidential Information, goodwill and legitimate business interests.
(b)    During the Prohibited Period, Employee shall not, without the prior written approval of the Board, directly or indirectly, for Employee or on behalf of or in conjunction with any other person or entity of any nature:
(i)    engage in or participate within the Market Area in competition with any member of the Company Group in any aspect of the Business, which prohibition shall prevent Employee from directly or indirectly: (A) owning, managing, operating, or being an officer or director of, any business that competes with any member of the Company Group in the Market Area, or (B) joining, becoming an employee or consultant of, or otherwise being affiliated with, any person or entity engaged in, or planning to engage in, the Business in the Market Area in competition, or anticipated competition, with any member of the Company Group in any capacity (with respect to this clause (B)) in which Employee’s duties or responsibilities are the same as or similar to the duties or responsibilities that Employee had on behalf of any member of the Company Group;
(ii)    appropriate any Business Opportunity of, or relating to, any member of the Company Group located in the Market Area;

10

(iii)    solicit, canvass, approach, encourage, entice or induce any customer or supplier of any member of the Company Group to cease or lessen such customer’s or supplier’s business with any member of the Company Group; or
(iv)    solicit, canvass, approach, encourage, entice or induce any employee or contractor of any member of the Company Group to terminate his, her or its employment or engagement with any member of the Company Group.
(c)    Notwithstanding the foregoing, 
(i)    following the date that Employee is no longer employed by any member of the Company Group, the above-referenced limitations in Sections 10(b)(i), (ii) and (iii) shall not apply in those portions of the Market Area located within the State of Oklahoma. Instead, Employee agrees that, during that portion of the Prohibited Period that begins following the date that Employee is no longer employed by any member of the Company Group, the restrictions on Employee’s activities within those portions of the Market Area located within the State of Oklahoma (in addition to those restrictions set forth in Sections 9 and 10(b)(iv) above) shall be as follows: Employee will not directly solicit the sale of goods, services, or a combination of goods and services from the established customers of the Company or any other member of the Company Group. 
(ii)    The passive beneficial ownership by Employee of less than or equal to two percent of the outstanding publicly traded equity securities of any business that competes with any member of the Company Group in the Market Area shall not be a breach of this Agreement.
(d)    Because of the difficulty of measuring economic losses to the Company Group as a result of a breach or threatened breach of the covenants set forth in Section 9 and in this Section 10, and because of the immediate and irreparable damage that would be caused to the members of the Company Group for which they would have no other adequate remedy, the Company and each other member of the Company Group shall be entitled to enforce the foregoing covenants, in the event of a breach or threatened breach, by injunctions and restraining orders from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security.  The aforementioned equitable relief shall not be the Company’s or any other member of the Company Group’s exclusive remedy for a breach but instead shall be in addition to all other rights and remedies available to the Company and each other member of the Company Group at law and equity.
(e)    The covenants in this Section 10, and each provision and portion hereof, are severable and separate, and the unenforceability of any specific covenant (or portion thereof) shall not affect the provisions of any other covenant (or portion thereof).  Moreover, in the event any arbitrator or court of competent jurisdiction shall determine that the scope, time or territorial restrictions set forth are unreasonable, then it is the intention of the parties that such restrictions be enforced to the fullest extent which such arbitrator or court deems reasonable, and this Agreement shall thereby be reformed.

11

(f)    Nothing in this Section 10 shall be interpreted or applied in a manner to prevent or restrict Employee from practicing law, as it is the intent of this Section 10 to create certain limitations on Employee’s business activities only, and not to create limitations that would restrict Employee from practicing law. For the avoidance of doubt, and without limiting the foregoing, nothing in this Section 10 shall prohibit Employee from engaging in the private practice of law as a sole practitioner or member of a law firm, irrespective of whether members of a law firm with whom he is affiliated or he, in such capacity, represents businesses that are engaged in Business as defined in Section 10(g)(i) below. Employee acknowledges and agrees that, both before and after the Termination Date, Employee shall be bound by all ethical and professional obligations (including those with respect to conflicts and confidentiality) that arise from Employee’s provision of legal services to, and acting as legal counsel for, the Company and, as applicable, the other members of the Company Group.
(g)    The following terms shall have the following meanings:
(i)    “Business” shall mean the business and operations that are the same or similar to those performed by the Company and any other member of the Company Group for which Employee provides services or about which Employee obtains Confidential Information during the Employment Period, which business and operations include frac sand mining, mine-to-wellsite logistics, and wellsite delivery and storage systems.
(ii)    “Business Opportunity” shall mean any commercial, investment or other business opportunity relating to the Business. 
(iii)    “Market Area” shall mean: (A) the States of Texas, Montana, Ohio, New Mexico, New York, Oklahoma, West Virginia, Wisconsin, and Colorado; and (B) the Commonwealth of Pennsylvania.
(iv)    “Prohibited Period” shall mean the period during which Employee is employed by any member of the Company Group and continuing for a period of twelve (12) months following the date that Employee is no longer employed by any member of the Company Group.
11.    Ownership of Intellectual Property.  Employee agrees that the Company shall own, and Employee shall (and hereby does) assign, all right, title and interest (including patent rights, copyrights, trade secret rights, mask work rights, trademark rights, and all other intellectual and industrial property rights of any sort throughout the world) relating to any and all inventions (whether or not patentable), works of authorship, mask works, designs, know-how, ideas and information authored, created, contributed to, made or conceived or reduced to practice, in whole or in part, by Employee during the period in which Employee is or has been employed by or affiliated with the Company or any other member of the Company Group that either (a) relate, at the time of conception, reduction to practice, creation, derivation or development, to any member of the Company Group’s businesses or actual or anticipated research or development, or (b) were developed on any amount of the Company’s or any other member of the Company Group’s time or with the use of any member of the Company Group’s equipment, supplies, facilities or trade secret information (all of the foregoing collectively referred to herein as “Company Intellectual Property”), and Employee shall promptly disclose all Company Intellectual Property to the Company.  All of Employee’s works of authorship and associated copyrights created during the period in which Employee is employed by or affiliated with the Company or any other member of the Company Group and in the scope of Employee’s employment or engagement shall be deemed to be “works made for hire” within the meaning of the Copyright Act.  Employee shall perform, during and after the period in which Employee is or has been employed by or affiliated with the Company or any other member of the Company Group, all acts deemed necessary by the Company to assist each member of the Company Group, at the Company’s expense, in obtaining and enforcing its rights throughout the world in the Company Intellectual Property.  Such acts may include execution of documents and assistance or cooperation (i) in the filing, prosecution, registration, and 

12

memorialization of assignment of any applicable patents, copyrights, mask work, or other applications, (ii) in the enforcement of any applicable patents, copyrights, mask work, moral rights, trade secrets, or other proprietary rights, and (iii) in other legal proceedings related to the Company Intellectual Property.  If the Company or its designee is unable for any reason whatsoever to obtain Employee’s signature to any documents that the Company is entitled to require Employee to sign pursuant to this Section 11, Employee hereby irrevocably designates and appoints the Company as Employee’s agent and attorney-in-fact to act for and on behalf of Employee and in Employee’s stead to execute, deliver, and file all such documents (including, without limitation, all applications for United States and foreign patents or for the reissue of such patents) and to do all other lawful acts that the Company is entitled to require Employee to do pursuant to this Section 11.
12.    Business Records and Return of Company Property. Given the competitive environment in which the Company does business and the fiduciary relationship that Employee will have with the Company hereunder, Employee agrees to promptly deliver to the Company, upon termination of Employee’s employment, or at any other time when the Company so requests, all memoranda, notes, records, drawings, manuals, and other documents (and all copies thereof and therefrom) in any way relating to the business or affairs of the Company Group or any of its subsidiaries or any of their clients, whether made or compiled by Employee or furnished to Employee by the Group or any of its employees, customers, clients, consultants, or agents. Employee confirms that all such memoranda, notes, records, drawings, manuals, and other documents (and all copies thereof and therefrom) are the exclusive property of the Company Group. The obligation of confidentiality set forth in Section 9 shall continue notwithstanding Employee’s delivery of any such documents to the Company or the termination of Employee’s employment hereunder for any reason. Further, Employee shall (a) return all equipment, records, files, programs or other materials and property in Employee’s possession which belongs to the Company Group or any of its affiliates, including, without limitation, all computers, printers, laptops, personal data assistants, cell phones, credit cards, keys and access cards; (b) deliver all original and copies of Confidential Information in Employee’s possession and notes, materials, records, plans, technical data or other documents, files or programs (whether stored in paper form, computer form, digital form, electronically or otherwise) in Employee’s possession that contain Confidential Information; (c) search for and delete all Company Group information (other than the payroll information that Employee may need to file tax returns or keep for financial records), including all Confidential Information, that may exist on Employee’s personal electronic devices such as a smartphone, laptop, tablet, personal computer, flash drive, or any other electronic storage device; and (d) if requested by the Company, certify to the return of such Confidential Information (and the deletion of Confidential Information from Employee’s personal devices).
13.    Arbitration.  
(a)    Subject to Section 13(b), any dispute, controversy or claim between Employee and any member of the Company Group arising out of or relating to this Agreement or Employee’s employment or engagement with any member of the Company Group will be finally settled by arbitration in Houston, Texas in accordance with the then-existing American Arbitration Association (“AAA”) Employment Arbitration Rules.  The arbitration award shall be final and binding on both parties.  Any arbitration conducted under this Section 13 shall be heard by a single arbitrator (the “Arbitrator”) selected in accordance with the then-applicable rules of the AAA.  The Arbitrator shall expeditiously hear and decide all matters concerning the dispute.  Except as expressly provided to the contrary in this Agreement, the Arbitrator shall have the power to (i) gather such materials, information, testimony and evidence as the Arbitrator deems relevant to the dispute before him or her (and each party will provide such materials, information, testimony and evidence requested by the Arbitrator), and (ii) grant injunctive relief and enforce specific performance.  The decision of the Arbitrator shall be reasoned, rendered in writing, be final and binding upon the disputing parties and the parties agree that judgment upon the award may be entered by any court of competent jurisdiction.  The party whom the Arbitrator determines is the prevailing party in such arbitration shall receive, in addition to any other award 

13

pursuant to such arbitration or associated judgment, reimbursement from the other party of all reasonable legal fees and costs associated with such arbitration and associated judgment. The parties agree that all disputes shall be arbitrated on an individual basis, and they forego and waive any right to arbitrate any dispute as a class action or collective action or on a consolidated basis or in a representative capacity on behalf of other persons or entities who are claimed to be similarly situated, or to participate as a class member in such a proceeding.  This provision is expressly made pursuant to and shall be governed by the Federal Arbitration Act, 9 U.S.C. Sections 1-14.
(b)    Notwithstanding Section 13(a), either party may make a timely application for, and obtain, judicial emergency or temporary injunctive relief to enforce any of the provisions of Sections 9 through 11; provided, however, that the remainder of any such dispute (beyond the application for emergency or temporary injunctive relief) shall be subject to arbitration under this Section 13.
(c)    By entering into this Agreement and entering into the arbitration provisions of this Section 13, THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT THEY ARE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVING THEIR RIGHTS TO A JURY TRIAL.
(d)    Nothing in this Section 13 shall prohibit a party to this Agreement from (i) instituting litigation to enforce any arbitration award, or (ii) joining the other party to this Agreement in a litigation initiated by a person or entity that is not a party to this Agreement.  Further, nothing in this Section 13 precludes Employee from filing a charge or complaint with a federal, state or other governmental administrative agency.
(e)    Arbitration processes, awards, findings and determinations of disputes under this Agreement shall be private and kept confidential by the parties, except to the extent disclosure of the terms of such processes, awards, findings, or determinations are required to be disclosed by law or court order, in which case (i) the disclosing party shall provide the other party as much advance notice of such required disclosure as is practicable and shall cooperate in all reasonable respects with any efforts by such other party (at such other party’s expense) to limit or restrict such required, and (ii) the disclosing party shall limit such required disclosures to the information that is legally required to be disclosed.
14.    Defense of Claims.  During the Employment Period and thereafter, upon request from the Company, Employee shall cooperate with the Company Group in the defense of any claims or actions that may be made by or against any member of the Company Group, or in providing information, including participating in interviews with the Company Group or its legal counsel, with respect to any audits or investigations that relate to Employee’s actual or prior areas of responsibility.  
15.    Withholdings; Deductions.  The Company may withhold and deduct from any benefits and payments made or to be made pursuant to this Agreement (a) all federal, state, local and other taxes as may be required pursuant to any law or governmental regulation or ruling and (b) any deductions consented to in writing by Employee.
16.    Title and Headings; Construction.  Titles and headings to Sections hereof are for the purpose of reference only and shall in no way limit, define or otherwise affect the provisions hereof.  Any and all Exhibits or Attachments referred to in this Agreement are, by such reference, incorporated herein and made a part hereof for all purposes.  Unless the context requires otherwise, all references to laws, regulations, contracts, agreements and instruments refer to such laws, regulations, contracts, agreements and instruments as they may be amended from time to time, and references to particular provisions of laws or regulations include a reference to the corresponding provisions of any succeeding law or regulation.  All references to “dollars” or “$” in this Agreement refer to United States dollars.  The word “or” is not exclusive.  The words “herein”, “hereof”, “hereunder” and other compounds of the word “here” shall refer to the entire Agreement, including all Exhibits attached hereto, and not to any particular provision hereof.  

14

Wherever the context so requires, the masculine gender includes the feminine or neuter, and the singular number includes the plural and conversely.  All references to “including” shall be construed as meaning “including without limitation.”  Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against any party hereto, whether under any rule of construction or otherwise.  On the contrary, this Agreement has been reviewed by each of the parties hereto and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of the parties hereto.
17.    Applicable Law; Submission to Jurisdiction.  This Agreement shall in all respects be construed according to the laws of the State of Texas without regard to its conflict of laws principles that would result in the application of the laws of another jurisdiction.  With respect to any claim or dispute related to or arising under this Agreement, the parties hereby consent to the arbitration provisions of Section 13 and recognize and agree that should any resort to a court be necessary and permitted under this Agreement, then they consent to the exclusive jurisdiction, forum and venue of the state and federal courts (as applicable) located in Harris County, Texas.
18.    Entire Agreement and Amendment.  This Agreement, the LTIP and any applicable award agreements under the LTIP contain the entire agreement of the parties with respect to the matters covered herein and supersede all prior and contemporaneous agreements and understandings, oral or written, between the parties hereto concerning the subject matter hereof; provided, however, Employee acknowledges that the terms of any agreements between Employee and any member of the Company Group that create obligations for Employee with respect to confidentiality, non-disclosure, non-competition or non-solicitation shall be complemented (and not superseded) by this Agreement and remain in full force and effect.  Without limiting the scope of the preceding sentence, except as otherwise expressly provided in this Section 18, all understandings and agreements preceding the Effective Date and relating to the subject matter hereof (including the Prior Agreement) are hereby null and void and of no further force or effect, and this Agreement shall supersede all other agreements, written or oral, that purport to govern the terms of Employee’s employment (including Employee’s compensation) with any member of the Company Group. Employee acknowledges and agrees that the Prior Agreement is hereby terminated and has been satisfied in full, as has any other employment agreement between Employee and any member of the Company Group.  In entering into this Agreement, Employee expressly acknowledges and agrees that Employee has received all sums and compensation that Employee has been owed, is owed or ever could be owed for services provided to any member of the Company Group through the date Employee signs this Agreement, with the exception of any unpaid base salary for the pay period that includes the date on which Employee signs this Agreement.  Employee represents and acknowledges that in executing this Agreement, Employee does not rely, and has not relied, upon any representation(s) by the Company or its agents except as expressly contained in this Agreement.  The parties agree that they have each used their own judgment in entering into this Agreement.  This Agreement may be amended only by a written instrument executed by both parties hereto.
19.    Waiver of Breach.  Any waiver of this Agreement must be executed by the party to be bound by such waiver.  No waiver by either party hereto of a breach of any provision of this Agreement by the other party, or of compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party or any similar or dissimilar provision or condition at the same or any subsequent time.  The failure of either party hereto to take any action by reason of any breach will not deprive such party of the right to take action at any time.
20.    Assignment.  This Agreement is personal to Employee, and neither this Agreement nor any rights or obligations hereunder shall be assignable or otherwise transferred by Employee.  The Company may assign this Agreement without Employee’s consent, including to any member of the Company Group and to any successor to or acquirer of (whether by merger, purchase or otherwise) all or substantially all of the equity, assets or businesses of the Company.

15

21.    Notices.  Notices provided for in this Agreement shall be in writing and shall be deemed to have been duly received (a) when delivered in person, (b) when sent by facsimile transmission (with confirmation of transmission) on a Business Day to the number set forth below, if applicable; provided, however, that if a notice is sent by facsimile transmission after normal business hours of the recipient or on a non-Business Day, then it shall be deemed to have been received on the next Business Day after it is sent, (c) on the first Business Day after such notice is sent by express overnight courier service, or (d) on the second Business Day following deposit with an internationally-recognized second-day courier service with proof of receipt maintained, in each case, to the following address, as applicable:
If to the Company, addressed to:
Hi-Crush Services LLC 
1330 Post Oak Blvd., Suite 600 
Houston, Texas 77056
If to Employee, addressed to: the last address appearing in the Company’s employment records.
22.    Counterparts.  This Agreement may be executed in any number of counterparts, including by electronic mail or facsimile, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument.  Each counterpart may consist of a copy hereof containing multiple signature pages, each signed by one party, but together signed by both parties hereto.
23.    Deemed Resignations.  Except as otherwise determined by the Board or as otherwise agreed to in writing by Employee and any member of the Company Group prior to the termination of Employee’s employment with the Company or any member of the Company Group, any termination of Employee’s employment shall constitute, as applicable, an automatic resignation of Employee: (a) as an officer of the Company and each member of the Company Group; (b) from the Board; and (c) from the board of directors or board of managers (or similar governing body) of any member of the Company Group and from the board of directors or board of managers (or similar governing body) of any corporation, limited liability entity, unlimited liability entity or other entity in which any member of the Company Group holds an equity interest and with respect to which board of directors or board of managers (or similar governing body) Employee serves as such Company Group member’s designee or other representative. 
24.    Section 409A.  
(a)    Notwithstanding any provision of this Agreement to the contrary, all provisions of this Agreement are intended to comply with Section 409A of the Internal Revenue Code of 1986 (the “Code”), and the applicable Treasury regulations and administrative guidance issued thereunder (collectively, “Section 409A”) or an exemption therefrom and shall be construed and administered in accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of Employee’s employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A.  
(b)    To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A), (i) any such expense reimbursement shall be made by the Company no later than the last day of Employee’s taxable year following the taxable year in which such expense was incurred by Employee, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible 

16

for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; provided, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period in which the arrangement is in effect.  
(c)    Notwithstanding any provision in this Agreement to the contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under Section 409A if Employee’s receipt of such payment or benefit is not delayed until the earlier of (%3) the date of Employee’s death or (%3) the date that is six (6) months after the Termination Date (such date, the “Section 409A Payment Date”), then such payment or benefit shall not be provided to Employee (or Employee’s estate, if applicable) until the Section 409A Payment Date.  Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are exempt from, or compliant with, Section 409A and in no event shall any member of the Company Group be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A.
25.    Certain Excise Taxes.  Notwithstanding anything to the contrary in this Agreement, if Employee is a “disqualified individual” (as defined in Section 280G(c) of the Code), and the payments and benefits provided for in this Agreement, together with any other payments and benefits which Employee has the right to receive from the Company or any of its affiliates, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the payments and benefits provided for in this Agreement shall be either (a) reduced (but not below zero) so that the present value of such total amounts and benefits received by Employee from the Company or any of its affiliates shall be one dollar ($1.00) less than three times Employee’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such amounts and benefits received by Employee shall be subject to the excise tax imposed by Section 4999 of the Code or (b) paid in full, whichever produces the better net after-tax position to Employee (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes).  The reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits to be paid in cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with such payment or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would be made first in time) and, then, reducing any benefit to be provided in-kind hereunder in a similar order.  The determination as to whether any such reduction in the amount of the payments and benefits provided hereunder is necessary shall be made by the Company in good faith.  If a reduced payment or benefit is made or provided and through error or otherwise that payment or benefit, when aggregated with other payments and benefits from the Company or any of its affiliates used in determining if a “parachute payment” exists, exceeds one dollar ($1.00) less than three times Employee’s base amount, then Employee shall immediately repay such excess to the Company upon notification that an overpayment has been made.  Nothing in this Section 25 shall require the Company to be responsible for, or have any liability or obligation with respect to, Employee’s excise tax liabilities under Section 4999 of the Code.
26.    Clawback.  To the extent required by applicable law or any applicable securities exchange listing standards, or as otherwise determined by the Board (or a committee thereof), amounts paid or payable under this Agreement shall be subject to the provisions of any applicable clawback policies or procedures adopted by the Company, which clawback policies or procedures may provide for forfeiture and/or recoupment of amounts paid or payable under this Agreement.  Notwithstanding any provision of this Agreement to the contrary, the Company reserves the right, without the consent of Employee, to adopt any such clawback policies and procedures, including such policies and procedures applicable to this Agreement with retroactive effect.

17

27.    Effect of Termination.  The provisions of Sections 7, 9-15 and 23 and those provisions necessary to interpret and enforce them, shall survive any termination of this Agreement and any termination of the employment relationship between Employee and the Company.
28.    Third-Party Beneficiaries.  Each member of the Company Group that is not a signatory to this Agreement shall be a third-party beneficiary of Employee’s obligations under Sections 8, 9, 10, 11, 12 and 23 and shall be entitled to enforce such obligations as if a party hereto.
29.    Severability.  If an arbitrator or court of competent jurisdiction determines that any provision of this Agreement (or portion thereof) is invalid or unenforceable, then the invalidity or unenforceability of that provision (or portion thereof) shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect.
[Remainder of Page Intentionally Blank; 
Signature Page Follows]

18

IN WITNESS WHEREOF, Employee, the Company and Parent each have caused this Agreement to be executed and effective as of the Effective Date.

EMPLOYEE

/s/ Mark C. Skolos                     
Name: Mark C. Skolos

HI-CRUSH SERVICES LLC

		
	By:
	/s/ Robert E. Rasmus                 
Name: Robert E. Rasmus     
Title:    Chief Executive Officer

Solely for purposes of  Sections 3(c), 7(f)(iii)(D), 7(f)(iii)(E) and 7(f)(iv):

HI-CRUSH INC.

		
	By:
	/s/ Robert E. Rasmus                 
Name: Robert E. Rasmus     
Title:    Chief Executive Officer

    

SIGNATURE PAGE TO
AMENDED AND RESTATED EMPLOYMENT AGREEMENTEX-4.1

 Exhibit 4.1 
  

AMENDED AND RESTATED 

SHAREHOLDER RIGHTS AGREEMENT 

DATED AS OF 

April 20, 2017 

BETWEEN 
 DIRTT
ENVIRONMENTAL SOLUTIONS LTD. 
 AND 

COMPUTERSHARE TRUST COMPANY OF CANADA 

AS RIGHTS AGENT 

 TABLE OF CONTENTS 

 

									
		 		 		  	 	Page	 
		
	 ARTICLE 1 INTERPRETATION
	  	 	1	 
		 	 1.1
	 	 Certain Definitions
	  	 	1	 
		 	 1.2
	 	 Currency
	  	 	12	 
		 	 1.3
	 	 Number and Gender
	  	 	12	 
		 	 1.4
	 	 Headings
	  	 	13	 
		 	 1.5
	 	 Statutory References
	  	 	13	 
		 	 1.6
	 	 Calculation of Number and Percentage of Beneficial Ownership of Outstanding Voting Shares
	  	 	13	 
		 	 1.7
	 	 Acting Jointly or in Concert
	  	 	13	 
		 	 1.8
	 	 Generally Accepted Accounting Principles
	  	 	13	 
	 ARTICLE 2 THE RIGHTS
	  	 	14	 
		 	 2.1
	 	 Legend on Share Certificates
	  	 	14	 
		 	 2.2
	 	 Initial Exercise Price; Exercise of Rights; Detachment of Rights
	  	 	14	 
		 	 2.3
	 	 Adjustments to Exercise Price; Number of Rights
	  	 	16	 
		 	 2.4
	 	 Date on Which Exercise Is Effective
	  	 	20	 
		 	 2.5
	 	 Execution, Authentication, Delivery and Dating of Rights Certificates
	  	 	20	 
		 	 2.6
	 	 Registration, Transfer and Exchange
	  	 	20	 
		 	 2.7
	 	 Mutilated, Destroyed, Lost and Stolen Rights Certificates
	  	 	21	 
		 	 2.8
	 	 Persons Deemed Owners of Rights
	  	 	22	 
		 	 2.9
	 	 Delivery and Cancellation of Certificates
	  	 	22	 
		 	 2.10
	 	 Agreement of Rights Holders
	  	 	22	 
		 	 2.11
	 	 Rights Certificate Holder Not Deemed a Shareholder
	  	 	23	 
	 ARTICLE 3 ADJUSTMENTS TO THE RIGHTS
	  	 	23	 
		 	 3.1
	 	 Flip-in Event
	  	 	23	 
	 ARTICLE 4 THE RIGHTS AGENT
	  	 	24	 
		 	 4.1
	 	 General
	  	 	24	 
		 	 4.2
	 	 Merger, Amalgamation or Consolidation or Change of Name of Rights Agent
	  	 	25	 
		 	 4.3
	 	 Duties of Rights Agent
	  	 	25	 
		 	 4.4
	 	 Change of Rights Agent
	  	 	26	 
	 ARTICLE 5 MISCELLANEOUS
	  	 	27	 
		 	 5.1
	 	 Redemption and Waiver
	  	 	27	 
		 	 5.2
	 	 Expiration
	  	 	29	 
		 	 5.3
	 	 Issuance of New Rights Certificates
	  	 	29	 
		 	 5.4
	 	 Supplements and Amendments
	  	 	29	 
		 	 5.5
	 	 Fractional Rights and Fractional Shares
	  	 	30	 
		 	 5.6
	 	 Rights of Action
	  	 	30	 
		 	 5.7
	 	 Regulatory Approvals
	  	 	31	 
		 	 5.8
	 	 Notice of Proposed Actions
	  	 	31	 
		 	 5.9
	 	 Notices
	  	 	31	 
		 	 5.10
	 	 Rights of Board and Corporation
	  	 	32	 
		 	 5.11
	 	 Costs of Enforcement
	  	 	32	 
		 	 5.12
	 	 Successors
	  	 	32	 
		 	 5.13
	 	 Benefits of this Agreement
	  	 	32	 
		 	 5.14
	 	 Governing Law
	  	 	32	 
		 	 5.15
	 	 Language
	  	 	32	 
		 	 5.16
	 	 Severability
	  	 	32	 
		 	 5.17
	 	 Effective Date
	  	 	33	 
		 	 5.18
	 	 Reconfirmation
	  	 	33	 
		 	 5.19
	 	 Determinations and Actions by the Board of Directors
	  	 	33	 
		 	 5.20
	 	 Declaration as to Non-Canadian Holders
	  	 	33	 
		 	 5.21
	 	 Time of the Essence
	  	 	33	 
		 	 5.22
	 	 Execution in Counterparts
	  	 	33	 

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

					
		  	 	Page	 
		
	 ATTACHMENT 1
	  			
	 FORM OF ASSIGNMENT
	  			
	 FORM OF ELECTION TO EXERCISE
	  			
	 NOTICE
	  			

  
 -ii- 

 AMENDED AND RESTATED 

SHAREHOLDER RIGHTS PLAN AGREEMENT 

AMENDED AND RESTATED SHAREHOLDER RIGHTS PLAN AGREEMENT, dated as of April 20, 2017 (amending and restating the shareholder rights plan
agreement dated as of April 3, 2014 and amended and restated as of March 21, 2017) between DIRTT Environmental Solutions Ltd. (the “Corporation”), a corporation amalgamated under the laws of the Province of Alberta and
Computershare Trust Company of Canada, a trust company continued under the laws of Canada and registered to carry on business in all provinces of Canada (the “Rights Agent”); 

WHEREAS effective April 3, 2014, the Board of Directors (as hereinafter defined), in the exercise of its fiduciary duties to the
Corporation, has determined that it is advisable for the Corporation to adopt the shareholder rights plan as provided herein to prevent, to the extent possible, a creeping takeover of the Corporation and to ensure, to the extent possible, the fair
treatment of all shareholders in connection with any take-over bid for the securities of the Corporation, and to ensure that the Board of Directors is provided with sufficient time to evaluate unsolicited take-over bids and to explore and develop
alternatives to maximize shareholder value; 
 AND WHEREAS effective March 21, 2017 and April 20, 2017, the Board of Directors
approved certain amendments to the Corporation’s shareholder rights plan (as amended and restated herein, the “Rights Plan”); 

AND WHEREAS in order to continue the Rights Plan as established by this Agreement (as hereinafter defined), the Board of Directors has
confirmed its: 
  

	(a)	 authorization and issuance, effective at the close of business (Calgary time) on the Effective Date (as
hereinafter defined), of one Right (as hereinafter defined) in respect of each Common Share (as hereinafter defined) outstanding at the close of business (Calgary time) on the Effective Date (the “Record Time”);

  

	(b)	 authorization and issuance of one Right in respect of each Voting Share of the Corporation issued after the
Record Time and prior to the earlier of the Separation Time (as hereinafter defined) and the Expiration Time (as hereinafter defined); and 

  

	(c)	 authorization and issuance of Rights Certificates (as hereinafter defined) to holders of Rights pursuant to
the terms and subject to the conditions set forth herein; 

 AND WHEREAS each Right entitles the holder thereof, after the
Separation Time, to purchase securities of the Corporation pursuant to the terms and subject to the conditions set forth herein; 
 AND
WHEREAS the Corporation desires to appoint the Rights Agent to act on behalf of the Corporation and the holders of Rights, and the Rights Agent is willing to so act, in connection with the issuance, transfer, exchange and replacement of Rights
Certificates, the exercise of Rights and other matters referred to herein; 
 NOW THEREFORE in consideration of the premises and the
respective covenants and agreements set forth herein, and subject to such covenants and agreements, the parties hereby agree as follows: 

ARTICLE 1 

INTERPRETATION 
  

	1.1	 Certain Definitions 

For purposes of this Agreement, the following terms have the meanings indicated: 

 

	 	(a)	 “ABCA” shall mean the Business Corporations Act (Alberta); 

 

	 	(b)	 “Acquiring Person” shall mean any Person who is the Beneficial Owner of 20% or more of the
outstanding Voting Shares; provided, however, that the term “Acquiring Person” shall not include: 

  

	 	(i)	 the Corporation or any Subsidiary of the Corporation; 

  
 - 2 - 

 

	 	(ii)	 any Person who becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares as a result of
one or any combination of: 

  

	 	(A)	 a Voting Share Reduction; 

 

	 	(B)	 a Permitted Bid Acquisition; 

 

	 	(C)	 an Exempt Acquisition; 

 

	 	(D)	 a Pro Rata Acquisition; or 

 

	 	(E)	 a Convertible Security Acquisition; 

provided, however, that if a Person becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares by reason of
one or any combination of the operation of Paragraphs (A), (B), (C), (D) or (E) above and such Person’s Beneficial Ownership of Voting Shares thereafter increases by more than 1% of the number of Voting Shares outstanding (other than
pursuant to one of a Voting Share Reduction, a Permitted Bid Acquisition, an Exempt Acquisition, a Pro Rata Acquisition or a Convertible Security Acquisition or any combination thereof), then as of the date such Person becomes the Beneficial Owner
of such additional Voting Shares, such Person shall become an “Acquiring Person”; 
  

	 	(iii)	 for a period of ten days after the Disqualification Date, any Person who becomes the Beneficial Owner of 20%
or more of the outstanding Voting Shares as a result of such Person becoming disqualified from relying on Subsection 1.1(g)(B) solely because such Person is making or has announced a current intention to make a Take-over Bid, either alone or by
acting jointly or in concert with any other Person. For the purposes of this definition, “Disqualification Date” means the first date of public announcement that any Person is making or intends to make a Take-over Bid;

  

	 	(iv)	 an underwriter or member of a banking or selling group that becomes the Beneficial Owner of 20% or more of
the Voting Shares in connection with a distribution of securities of the Corporation pursuant to an underwriting agreement with the Corporation; or 

  

	 	(v)	 a Person (a “Grandfathered Person”) who is the Beneficial Owner of 20% or more of the
outstanding Voting Shares determined as at the Record Time, provided, however, that this exception shall not be, and shall cease to be, applicable to a Grandfathered Person in the event that such Grandfathered Person shall, after the Record Time,
become the Beneficial Owner of any additional Voting Shares that increases its Beneficial Ownership of Voting Shares by more than 1% of the number of Voting Shares outstanding, other than through one of a Permitted Bid Acquisition, an Exempt
Acquisition, a Voting Share Reduction, a Pro Rata Acquisition or a Convertible Security Acquisition or any combination thereof; and provided, further, that a Person shall cease to be a Grandfathered Person in the event that such Person ceases to
Beneficially Own 20% or more of the then outstanding Voting Shares at any time after the Record Time; 

  

	 	(c)	 “Affiliate”, when used to indicate a relationship with a specified Person, shall mean a
Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified Person; 

 

	 	(d)	 “Agreement” shall mean this amended and restated shareholder rights plan agreement dated as
of April 20, 2017 (amending and restating the shareholder rights plan agreement dated as of April 3, 2014 and amended and restated as of March 21, 2017) between the Corporation and the Rights Agent, as amended or supplemented from
time to time; “hereof”, “herein”, “hereto” and similar expressions mean and refer to this Agreement as a whole and not to any particular part of this Agreement; 

  
 - 3 - 

 

	 	(e)	 “annual cash dividend” shall mean cash dividends paid in any fiscal year of the Corporation
to the extent that such cash dividends do not exceed, in the aggregate on a per share basis, in any fiscal year, the greater of: 

  

	 	(i)	 200% of the aggregate amount of cash dividends, on a per share basis, declared payable by the Corporation on
its Common Shares in its immediately preceding fiscal year; 

  

	 	(ii)	 300% of the arithmetic mean of the aggregate amounts of the cash dividends, on a per share basis, declared
payable by the Corporation on its Common Shares in its three immediately preceding fiscal years; and 

  

	 	(iii)	 100% of the aggregate consolidated net income of the Corporation, before extraordinary items, for its
immediately preceding fiscal year divided by the number of Common Shares outstanding as at the end of such fiscal year; 

  

	 	(f)	 “Associate” shall mean, when used to indicate a relationship with a specified Person, a
spouse of that Person, any Person of the same or opposite sex with whom that Person is living in a conjugal relationship outside marriage, a child of that Person and a relative of that Person if that relative has the same residence as that Person;

  

	 	(g)	 A Person shall be deemed the “Beneficial Owner” of, and to have “Beneficial
Ownership” of, and to “Beneficially Own”: 

  

	 	(i)	 any securities as to which such Person or any of such Person’s Affiliates or Associates is the owner at
law or in equity; 

  

	 	(ii)	 any securities as to which such Person or any of such Person’s Affiliates or Associates has the right
to become the owner at law or in equity (where such right is exercisable within a period of 60 days, whether or not on condition or on the happening of any contingency) pursuant to any agreement, arrangement, pledge or understanding, whether or not
in writing, or upon the exercise of any conversion, exchange or purchase right (other than the Rights) attaching to a Convertible Security, including but not limited to any lock-up agreement or similar
agreement, arrangement or understanding that is not a Permitted Lock-Up Agreement; other than pursuant to (x) customary agreements between the Corporation and underwriters or between underwriters and/or
banking group members and/or selling group members with respect to a distribution of securities by the Corporation, and (y) pledges of securities in the ordinary course of business; 

 

	 	(iii)	 any securities which are Beneficially Owned within the meaning of Subsections 1.1(g)(i) or (ii) by any
other Person with which such Person is acting jointly or in concert; 

 provided, however, that a Person
shall not be deemed the “Beneficial Owner” of, or to have “Beneficial Ownership” of, or to “Beneficially Own”, any security: 

 

	 	(A)	 where such security has been deposited or tendered pursuant to any Take-over Bid or where the holder of such
security has agreed pursuant to a Permitted Lock-Up Agreement to deposit or tender such security pursuant to a Take-Over Bid, in each case made by such Person, made by any of such Person’s Affiliates or
Associates or made by any other Person acting jointly or in concert with such Person, until such deposited or tendered security has been taken up or paid for, whichever shall first occur; 

 

	 	(B)	 where such Person, any of such Person’s Affiliates or Associates or any other Person referred to in
Subsection 1.1(g)(iii), holds such security provided that: 

  

	 	(1)	 the ordinary business of any such Person (the “Investment Manager”) includes the management
of mutual funds or investment funds for others 

  
 - 4 - 

 

 (which others, for greater certainty, may include or be limited to one or more
employee benefit plans or pension plans and/or includes the acquisition or holding of securities for a non-discretionary account of a Client by a dealer or broker registered under applicable securities laws to
the extent required) and such security is held by the Investment Manager in the ordinary course of such business and in the performance of such Investment Manager’s duties for the account of any other Person or Persons (a
“Client”); 
  

	 	(2)	 such Person (the “Trust Company”) is licensed to carry on the business of a trust company
under applicable laws and, as such, acts as trustee or administrator or in a similar capacity in relation to the estates of deceased or incompetent Persons (each an “Estate Account”) or in relation to other accounts (each an
“Other Account”) and holds such security in the ordinary course of such duties for such Estate Accounts or for such Other Accounts; 

  

	 	(3)	 such Person is a pension plan or fund registered under the laws of Canada or any Province thereof or the
laws of the United States of America (a “Plan”) or is a Person established by statute for purposes that include, and the ordinary business or activity of such Person (the “Statutory Body”) includes, the management
of investment funds for employee benefit plans, pension plans, insurance plans of various public bodies; or 

  

	 	(4)	 such Person (the “Administrator”) is the administrator or trustee of one or more Plans and
holds such security for the purposes of its activities as an Administrator; 

 provided, in any of the
above cases, that the Investment Manager, the Trust Company, the Statutory Body, the Administrator or the Plan, as the case may be, is not then making and has not then announced an intention to make a Take-over Bid (other than an Offer to Acquire
Voting Shares or other securities by means of a distribution by the Corporation or by means of ordinary market transactions (including prearranged trades) executed through the facilities of a stock exchange or organized over-the-counter market), alone or by acting jointly or in concert with any other Person; 
  

	 	(C)	 only because such Person or any of such Person’s Affiliates or Associates is (1) a Client of the
same Investment Manager as another Person on whose account the Investment Manager holds such security, (2) an Estate Account or an Other Account of the same Trust Company as another Person on whose account the Trust Company holds such security,
or (3) a Plan with the same Administrator as another Plan on whose account the Administrator holds such security provided, however, that such Person is not then making and has not then announced an intention to make a Take-over Bid (other than
an Offer to Acquire Voting Shares or other securities by means of a distribution by the Corporation or by means of ordinary market transactions (including prearranged trades) executed through the facilities of a stock exchange or organized over the
counter market), alone or by acting jointly or in concert with any other Person; 

  

	 	(D)	 only because such Person is (1) a Client of an Investment Manager and such security is owned at law or
in equity by the Investment Manager, (2) an Estate Account or an Other Account of a Trust Company and such security is owned at law or in equity by the Trust Company or (3) a Plan and such security is owned at law or in equity by the
Administrator of the Plan provided, however, that such Person is not then making and has not then announced an intention to make a Take-over Bid (other than an Offer to Acquire Voting Shares or other securities

  
 - 5 - 

 

	 	 by means of a distribution by the Corporation or by means of ordinary market transactions (including
prearranged trades) executed through the facilities of a stock exchange or organized over the counter market), alone or by acting jointly or in concert with any other Person; or 

 

	 	(E)	 where such person is the registered holder of securities as a result of carrying on the business of or
acting as a nominee of a securities depository provided, however, that such Person is not then making and has not then announced an intention to make a Take-over Bid (other than an Offer to Acquire Voting Shares or other securities by means of a
distribution by the Corporation or by means of ordinary market transactions (including prearranged trades) executed through the facilities of a stock exchange or organized over the counter market), alone or by acting jointly or in concert with any
other Person; 

  

	 	(h)	 “Board of Directors” shall mean the board of directors of the Corporation or any duly
constituted and empowered committee thereof; 

  

	 	(i)	 “Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking
institutions in Calgary, Alberta are authorized or obligated by law to close; 

  

	 	(j)	 “Canadian Dollar Equivalent” of any amount which is expressed in United States dollars
shall mean on any day the Canadian dollar equivalent of such amount determined by reference to the U.S.-Canadian Exchange Rate in effect on such date; 

  

	 	(k)	 “close of business” on any given date shall mean the time on such date (or, if such date is
not a Business Day, the time on the next succeeding Business Day) at which the principal office of the transfer agent for the Common Shares (or, after the Separation Time, the principal transfer office of the Rights Agent) is closed to the public;

  

	 	(l)	 “Common Shares” shall mean the common shares in the capital of the Corporation as presently
constituted, as such shares may be subdivided, consolidated, reclassified or otherwise changed from time to time; 

  

	 	(m)	 “Competing Permitted Bid” shall mean a Take-over Bid which also complies with the following
additional provisions: 

  

	 	(i)	 the Take-over bid is made after a Permitted Bid or another Competing Permitted Bid has been made and prior
to the expiry, termination or withdrawal of such Permitted Bid or Competing Permitted Bid; 

  

	 	(ii)	 the Take-over Bid complies with all of the provisions of a Permitted Bid other than the condition set forth
in Subsection (iii) of the definition of a Permitted Bid; and 

  

	 	(iii)	 no Voting Shares are taken up or paid for pursuant to the Take-over Bid prior to the close of business on
the date that is the last day of the initial deposit period that the Offeror must allow securities to be deposited under the Take-over Bid pursuant to NI 62-104; 

provided that, should a Competing Permitted Bid cease to be a Competing Permitted Bid because it ceases to meet any or all of
the requirements mentioned above prior to the time it expires (after giving effect to any extension) or is withdrawn, then any acquisition of Voting Shares made pursuant to such Competing Permitted Bid, including any acquisition of Voting Shares
made prior to such time, shall not be a Permitted Bid Acquisition. 
  

	 	(n)	 A specified Person is “controlled” by another Person or two or more Persons acting jointly
or in concert if: 

  
 - 6 - 

 

	 	(i)	 securities entitled to vote in the election of directors carrying more than 50 percent of the votes for
the election of directors are held, directly or indirectly, by or on behalf of the other Person or two or more Persons acting jointly or in concert and the votes carried by such securities are entitled, if exercised, to elect a majority of the board
of directors of such body corporate; 

  

	 	(ii)	 in the case of a specified Person that is a partnership that does not have directors, other than a limited
partnership, the other Person holds more than 50 percent of the interests in the partnership; or 

  

	 	(iii)	 in the case of a specified Person that is a limited partnership, the other Person is the general partner of
the limited partnership; 

 and “controls”, “controlling” and
“under common control with” shall be interpreted accordingly; 
  

	 	(o)	 “Convertible Security” shall mean a security convertible, exercisable or exchangeable into
a Voting Share and a “Convertible Security Acquisition” shall mean an acquisition by a Person of Voting Shares upon the exercise, conversion or exchange of a Convertible Security received by a Person pursuant to a Permitted Bid
Acquisition, an Exempt Acquisition or a Pro Rata Acquisition; 

  

	 	(p)	 “Co-Rights Agents” shall have the meaning ascribed
thereto in Subsection 4.1(a); 

  

	 	(q)	 “Disposition Date” shall have the meaning ascribed thereto in Subsection 5.1(d);

  

	 	(r)	 “Dividend Reinvestment Acquisition” shall mean an acquisition of Voting Shares of any class
pursuant to a Dividend Reinvestment Plan; 

  

	 	(s)	 “Dividend Reinvestment Plan” shall mean a regular dividend reinvestment or other plan of
the Corporation made available by the Corporation to holders of its securities where such plan permits the holder to direct that some or all of: 

  

	 	(i)	 dividends paid in respect of shares of any class of the Corporation; 

 

	 	(ii)	 proceeds of redemption of shares of the Corporation; 

 

	 	(iii)	 interest paid on evidences of indebtedness of the Corporation; or 

 

	 	(iv)	 optional cash payments; 

be applied to the purchase from the Corporation of Voting Shares; 

 

	 	(t)	 “Effective Date” shall mean April 3, 2014; 

 

	 	(u)	 “Election to Exercise” shall have the meaning ascribed thereto in Subsection 2.2(d)(ii);

  

	 	(v)	 “Exempt Acquisition” shall mean an acquisition by a Person of Voting Shares and/or
Convertible Securities: 

  

	 	(i)	 in respect of which the Board of Directors has waived the application of Section 3.1 pursuant to the
provisions of Subsection 5.1(b), (c) or (d); 

  

	 	(ii)	 pursuant to a distribution of Voting Shares and/or Convertible Securities made by the Corporation
(A) to the public pursuant to a prospectus or similar document, provided that such Person does not thereby become the Beneficial Owner of a greater percentage of Voting Shares so offered than the percentage of Voting Shares Beneficially Owned
by such Person immediately prior to such distribution, or (B) pursuant to a distribution, provided 

  
 - 7 - 

 

	 	 that (x) all necessary stock exchange approvals for such private placement have been obtained and such
distribution complies with the terms and conditions of such approvals, and (y) such Person does not thereby become the Beneficial Owner of Voting Shares equal in number to more than 25% of the Voting Shares outstanding immediately prior to the
distribution and, in making this determination, the securities to be issued to such Person on the distribution shall be deemed to be held by such Person but shall not be included in the aggregate number of Voting Shares outstanding immediately prior
to the distribution; or 

  

	 	(iii)	 pursuant to an amalgamation, merger, arrangement or other statutory procedure requiring shareholder
approval; 

  

	 	(w)	 “Exercise Price” shall mean, as of any date, the price at which a holder may purchase the
securities issuable upon exercise of one whole Right which, until adjustment thereof in accordance with the terms hereof, shall be: 

  

	 	(i)	 until the Separation Time, an amount equal to three times the Market Price, from time to time, per Common
Share; and 

  

	 	(ii)	 from and after the Separation Time, an amount equal to three times the Market Price, as at the Separation
Time, per Common Share; 

  

	 	(x)	 “Expansion Factor” shall have the meaning ascribed thereto in Subsection 2.3(a)(x);

  

	 	(y)	 “Expiration Time” means the earlier of: 

 

	 	(i)	 the Termination Time; and 

 

	 	(ii)	 the date of termination of this Agreement pursuant to Sections 5.17 or 5.18. 

 

	 	(z)	 “Flip-in Event” shall mean a transaction in or
pursuant to which any Person becomes an Acquiring Person; 

  

	 	(aa)	 “holder” shall have the meaning ascribed thereto in Section 2.8;

  

	 	(bb)	 “Independent Shareholders” shall mean holders of Voting Shares, other than:

  

	 	(i)	 any Acquiring Person; 

 

	 	(ii)	 any Offeror, other than a Person who, by virtue of Subsection 1.1(g)(B), is not deemed to Beneficially Own
such Voting Shares at the relevant time; 

  

	 	(iii)	 any Affiliate or Associate of such Acquiring Person or Offeror; 

 

	 	(iv)	 any Person acting jointly or in concert with such Acquiring Person or Offeror; and 

 

	 	(v)	 any employee benefit plan, deferred profit sharing plan, stock participation plan and any other similar plan
or trust for the benefit of employees of the Corporation or a Subsidiary of the Corporation, unless the beneficiaries of the plan or trust direct the manner in which the Voting Shares are to be voted or direct whether the Voting Shares are to be
tendered to a Take-over Bid; 

  

	 	(cc)	 “Market Price” per share of any securities on any date of determination shall mean the
average of the daily closing prices per share of such securities (determined as described below) on each of the 20 consecutive Trading Days through and including the Trading Day immediately preceding such date; provided, however, that if an event of
a type analogous to any of the events described in Section 2.3 hereof shall have caused the closing prices used to determine the Market Price on any 

  
 - 8 - 

 

	 	 Trading Days not to be fully comparable with the closing price on such date of determination or, if the date
of determination is not a Trading Day, on the immediately preceding Trading Day, each such closing price so used shall be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 hereof in order to
make it fully comparable with the closing price on such date of determination or, if the date of determination is not a Trading Day, on the immediately preceding Trading Day. The closing price per share of any securities on any date shall be:

  

	 	(i)	 the closing board lot sale price or, in case no such sale takes place on such date, the average of the
closing bid and asked prices for each of such securities as reported by the principal Canadian stock exchange on which such securities are listed or admitted to trading; 

 

	 	(ii)	 if for any reason none of such prices is available on such day or the securities are not listed or admitted
to trading on a Canadian stock exchange, the last sale price or, in case no such sale takes place on such date, the average of the high bid and low asked prices for each of such securities in the over-the-counter market, as quoted by any reporting system then in use; or 

  

	 	(iii)	 if for any reason none of such prices is available on such day or the securities are not listed or admitted
to trading on a Canadian stock exchange or quoted by any such reporting system, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the securities selected in good faith by the Board of
Directors; 

 provided, however, that if for any reason none of such prices is available on such day, the
closing price per share of such securities on such date means the fair value per share of such securities on such date as determined by a nationally or internationally recognized investment dealer or investment banker with respect to the fair value
per share of such securities. The Market Price shall be expressed in Canadian dollars and, if initially determined in respect of any day forming part of the 20 consecutive Trading Day period in question in United States dollars, such amount shall be
translated into Canadian dollars on such date at the Canadian Dollar Equivalent thereof; 
  

	 	(dd)	 “Meeting” means the annual and special meeting of shareholders of the Corporation to be
held on May 3, 2017 or any adjournment or postponement thereof; 

  

	 	(ee)	 “NI 62-104” means National Instrument 62-104 – Take-Over Bids and Issuer Bids; 

  

	 	(ff)	 “Nominee” shall have the meaning ascribed thereto in Subsection 2.2(c);

  

	 	(gg)	 “Offer to Acquire” shall include: 

 

	 	(i)	 an offer to purchase or a solicitation of an offer to sell Voting Shares or a public announcement of an
intention to make such an offer or solicitation; and 

  

	 	(ii)	 an acceptance of an offer to sell Voting Shares, whether or not such offer to sell has been solicited;

 or any combination thereof, and the Person accepting an offer to sell shall be deemed to be making an
Offer to Acquire to the Person that made the offer to sell; 
  

	 	(hh)	 “Offeror” shall mean a Person who has made a public announcement of a current intention to
make or who is making a Take-over Bid but only so long as the Take-over Bid so announced or made has not been withdrawn or terminated or has not expired; 

  

	 	(ii)	 “Permitted Bid” shall mean a Take-over Bid, made by an Offeror by way of take-over bid
circular, which also complies with the following additional provisions: 

  
 - 9 - 

 

	 	(i)	 the Take-over Bid is made to all holders of Voting Shares on the books of the Corporation, other than the
Offeror; 

  

	 	(ii)	 no Voting Shares are taken up or paid for pursuant to the Take-over Bid unless more than 50% of the Voting
Shares held by Independent Shareholders (x) shall have been deposited or tendered pursuant to the Take-over Bid and not withdrawn and (y) have previously been or are taken up at the same time; 

 

	 	(iii)	 no Voting Shares are taken up or paid for pursuant to the Take-over Bid prior to the close of business on
the date that is no earlier than the earlier of (A) 105 days following the date of the Take-over Bid and (B) the last day of the initial deposit period that the Offeror must allow securities to be deposited under the Take-over Bid pursuant to
NI 62-104; 

  

	 	(iv)	 Voting Shares may be deposited pursuant to such Take-over Bid at any time during the period of time between
the date of the Take-over Bid and the date on which Voting Shares may be taken up and paid for and any Voting Shares deposited pursuant to the Take-over Bid may be withdrawn until taken up and paid for; and 

 

	 	(v)	 if on the date on which Voting Shares may be taken up and paid for under the Take-over Bid, more than 50% of
the Voting Shares held by Independent Shareholders have been deposited or tendered pursuant to the Take-over Bid and not withdrawn, the Offeror makes a public announcement of that fact and the Take-over Bid is extended to remain open for deposits
and tenders of Voting Shares for not less than ten Business Days from the date of such public announcement. 

For purposes of this Agreement, (A) should a Take-over Bid which qualified as a Permitted Bid cease to be a Permitted Bid
because it ceases to meet any or all of the requirements mentioned above prior to the time it expires (after giving effect to any extension) or is withdrawn, any acquisition of Voting Shares made pursuant to such Take-over Bid shall not be a
Permitted Bid Acquisition and (B) the term “Permitted Bid” shall include a Competing Permitted Bid; 
  

	 	(jj)	 “Permitted Bid Acquisition” shall mean an acquisition of Voting Shares made pursuant to a
Permitted Bid or a Competing Permitted Bid; 

  

	 	(kk)	 “Permitted Lock-Up Agreement” shall mean an
agreement between a Person and one or more holders of Voting Shares pursuant to which such holders (each a “Locked-Up Person”) agree to deposit or tender Voting Shares to a Take-Over Bid (the
“Lock-Up Bid”) made or to be made by such Person or any of such Person’s Affiliates or Associates or any other Person with which such Person is acting jointly or in concert, provided
that: 

  

	 	(i)	 the terms of such agreement are publicly disclosed and a copy of such agreement is made available to the
public (including the Corporation) not later than the date of the Lock-Up Bid or, if the Lock-Up Bid has been made prior to the date on which such agreement is entered
into, not later than the first business day following the date of such agreement; 

  

	 	(ii)	 the agreement permits a Locked-Up Person to terminate its obligation
to deposit or tender Voting Shares to or not to withdraw such Voting Shares from the Lock-Up Bid, in order to tender or deposit the Voting Shares to another Take-over Bid or to support another transaction:

  

	 	(A)	 where the price or value of the consideration per Voting Share offered under such other Take-over Bid or
transaction: 

  

	 	(1)	 is greater than the price or value of the consideration per Voting Share at which the Locked-Up Person has agreed to deposit or tender Voting Shares to the Lock-Up Bid; or 

  
 - 10 - 

 

	 	(2)	 exceeds by as much as or more than a specified amount (the “Specified Amount”) the price or
value of the consideration per Voting Share at which the Locked-Up Person has agreed to deposit or tender Voting Shares to the Lock-Up Bid, provided that such Specified
Amount is not greater than 7% of the price or value of the consideration per Voting Share at which the Locked-Up Person has agreed to deposit or tender Voting Shares to the
Lock-Up Bid; and 

  

	 	(B)	 if the number of Voting Shares offered to be purchased under the
Lock-Up Bid is less than 100% of the Voting Shares held by Independent Shareholders, where the number of Voting Shares to be purchased under such other Take-over Bid or transaction at a price or value per
Voting Share that is not less than the price or value per Voting Share offered under the Lock-Up Bid: 

  

	 	(1)	 is greater than the number of Voting Shares that the Offeror has offered to purchase under the Lock-Up Bid; or 

  

	 	(2)	 exceeds by as much as or more than a specified number (the “Specified Number”) the number
of Voting Shares that the Offeror has offered to purchase under the Lock-Up Bid, provided that the Specified Number is not greater than 7% of the number of Voting Shares offered to be purchased under the Lock-Up Bid, 

 and, for greater clarity, the agreement may contain a
right of first refusal or require a period of delay to give such Person an opportunity to at least match a higher price or value in another Take-over Bid or transaction or other similar limitation on a
Locked-up Person’s right to withdraw Voting Shares from the agreement, so long as the limitation does not preclude the exercise by the Locked-up Person of the right
to withdraw Voting Shares during the period of the other Take-over Bid or transaction; and 
  

	 	(iii)	 no “break-up” fees, “top-up” fees, penalties, expenses or other amounts that exceed in aggregate the greater of: 

  

	 	(A)	 the cash equivalent of 2.5% of the price or value of the consideration payable under the Lock-Up Bid to a Locked-Up Person; and 

  

	 	(B)	 50% of the amount by which the price or value of the consideration received by a Locked-Up Person under another Take-over Bid or transaction exceeds the price or value of the consideration that the Locked-Up Person would have received under the Lock-Up Bid, 

 shall be payable by such
Locked-Up Person pursuant to the agreement if the Locked-Up Person fails to deposit or tender Voting Shares to the Lock-Up Bid,
withdraws Voting Shares previously tendered thereto or supports another transaction; 
  

	 	(ll)	 “Person” shall include an individual, body corporate, firm, partnership, syndicate or other
form of unincorporated association, trust, trustee, executor, administrator, legal personal representative, group, unincorporated organization, a government and its agencies or instrumentalities, or other entity whether or not having legal
personality; 

  

	 	(mm)	 “Pro Rata Acquisition” shall mean an acquisition by a Person of Voting Shares pursuant to:

  

	 	(i)	 a Dividend Reinvestment Acquisition; 

 

	 	(ii)	 a stock dividend, stock split or other event in respect of securities of the Corporation of one or more
particular classes or series pursuant to which such Person becomes the Beneficial 

  
 - 11 - 

 

	 	 Owner of Voting Shares on the same pro rata basis as all other holders of securities of the particular class,
classes or series; or 

  

	 	(iii)	 the acquisition or the exercise by the Person of rights to purchase Voting Shares issued by the Corporation
to all holders of securities of the Corporation (other than holders resident in any jurisdiction where such issuance is restricted or impractical as a result of applicable law) of one or more particular classes or series pursuant to a rights
offering provided that such rights are acquired directly from the Corporation and not from any other Person; or 

  

	 	(iv)	 a distribution of Voting Shares or of Convertible Securities made pursuant to a prospectus or by way of a
private placement or a conversion or exchange of any Convertible Security; 

 provided, however, that such
Person does not thereby acquire a greater percentage of such Voting Shares or of Convertible Securities so offered than such Person’s percentage of Voting Shares Beneficially Owned immediately prior to such acquisition; 

 

	 	(nn)	 “Record Time” shall have the meaning set forth in the recitals hereto;

  

	 	(oo)	 “Redemption Price” shall have the meaning attributed thereto in Subsection 5.1(a);

  

	 	(pp)	 “Right” shall mean a right to purchase a Common Share, upon the terms and subject to the
conditions set forth in this Agreement; 

  

	 	(qq)	 “Rights Certificate” shall mean a certificate representing the Rights after the Separation
Time, which shall be substantially in the form attached hereto as Attachment 1; 

  

	 	(rr)	 “Rights Plan” shall have the meaning set forth in the recitals hereto;

  

	 	(ss)	 “Rights Register” shall have the meaning ascribed thereto in Subsection 2.6(a);

  

	 	(tt)	 “Securities Act” shall mean the Securities Act (Alberta); 

 

	 	(uu)	 “Separation Time” shall mean, subject to Subsection 5.1(d), the close of business on the
tenth Trading Day after the earlier of: 

  

	 	(i)	 the Stock Acquisition Date; 

 

	 	(ii)	 the date of the commencement of or first public announcement of the current intention of any Person (other
than the Corporation or any Subsidiary of the Corporation) to commence a Take-over Bid (other than a Permitted Bid or a Competing Permitted Bid); and 

  

	 	(iii)	 the date on which a Permitted Bid or Competing Permitted Bid ceases to qualify as such;

 or such later time as may be determined by the Board of Directors, provided that, if any Take-over Bid
referred to in Subsection 1.1(uu)(ii) above expires, is not made, is cancelled, terminated or otherwise withdrawn prior to the Separation Time, such Take-over Bid shall be deemed, for the purposes of this definition, never to have been commenced,
made or announced and further provided that if the Board of Directors determines, pursuant to Section 5.1, to waive the application of Section 3.1 to a Flip-in Event, then the Separation Time in respect
of such Flip-in Event shall be deemed never to have occurred and further provided that if the foregoing results in the Separation Time being prior to the Record Time, the Separation Time shall be the Record
Time; 
  

	 	(vv)	 “Stock Acquisition Date” shall mean the first date of public announcement or disclosure by
the Corporation or an Acquiring Person of facts indicating that a Person has become an Acquiring Person which for the purposes of this definition shall include, without limitation, a report filed pursuant to Part 5 of NI 62-104 announcing or disclosing such information; 

  
 - 12 - 

 

	 	(ww)	 “Subsidiary” a Person is a Subsidiary of another Person if: 

 

	 	(i)	 it is controlled by: 

 

	 	(A)	 that other; or 

  

	 	(B)	 that other and one or more Persons each of which is controlled by that other; or 

 

	 	(C)	 two or more Persons each of which is controlled by that other; or 

 

	 	(ii)	 it is a Subsidiary of a Person that is that other’s Subsidiary; 

 

	 	(xx)	 “Take-over Bid” shall mean an Offer to Acquire Voting Shares or Convertible Securities, if,
assuming that the Voting Shares or Convertible Securities subject to the Offer to Acquire are acquired and are Beneficially Owned at the date of such Offer to Acquire by the Person making such Offer to Acquire, the Voting Shares Beneficially Owned
by the Person making the Offer to Acquire would constitute in the aggregate 20% or more of the outstanding Voting Shares at the date of the Offer to Acquire; 

 

	 	(yy)	 “Termination Time” shall mean the time at which the right to exercise Rights shall
terminate pursuant to Section 5.1(g); 

  

	 	(zz)	 “Trading Day”, when used with respect to any securities, shall mean a day on which the
principal Canadian stock exchange on which such securities are listed or admitted to trading is open for the transaction of business or, if the securities are not listed or admitted to trading on any Canadian stock exchange, a Business Day;

  

	 	(aaa)	 “U.S. – Canadian Exchange Rate” on any date shall mean: 

 

	 	(i)	 if on such date the Bank of Canada sets an average noon spot rate of exchange for the conversion of one
United States dollar into Canadian dollars, such rate; and 

  

	 	(ii)	 in any other case, the rate for such date for the conversion of one United States dollar into Canadian
dollars which is calculated in the manner which shall be determined by the Board of Directors from time to time acting in good faith; 

  

	 	(bbb)	 “Voting Share Reduction” shall mean an acquisition or redemption by the Corporation of
Voting Shares which, by reducing the number of Voting Shares outstanding, increases the percentage of outstanding Voting Shares Beneficially Owned by any Person to 20% or more of the Voting Shares then outstanding; and 

 

	 	(ccc)	 “Voting Shares” shall mean the Common Shares and any other shares in the capital of the
Corporation entitled to vote generally in the election of all directors. 

  

	1.2	 Currency 

All sums of money which are referred to in this Agreement are expressed in lawful money of Canada, unless otherwise specified. 

 

	1.3	 Number and Gender 

Wherever the context will require, terms (including defined terms) used herein importing the singular number only shall include the plural and
vice versa and words importing any one gender shall include all others. 

  
 - 13 - 

 

	1.4	 Headings 

The division of this Agreement into Articles, Sections, Subsections, Paragraphs, Subparagraphs or other portions hereof and the insertion of
headings, subheadings and a table of contents are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. 
  

	1.5	 Statutory References 

Unless the context otherwise requires, any reference to a specific section, subsection, clause or rule of any act or regulation shall be
deemed to refer to the same as it may be amended, reenacted or replaced or, if repealed and there shall be no replacement therefor, to the same as it is in effect on the date of this Agreement. 

 

	1.6	 Calculation of Number and Percentage of Beneficial Ownership of Outstanding Voting Shares

  

	 	(a)	 For purposes of this Agreement, in determining the percentage of outstanding Voting Shares with respect to
which a Person is or is deemed to be the Beneficial Owner, all unissued Voting Shares of which such Person is deemed to be the Beneficial Owner shall be deemed to be outstanding. 

 

	 	(b)	 For purposes of this Agreement, the percentage of Voting Shares Beneficially Owned by any Person shall be
and be deemed to be the product (expressed as a percentage) determined by the formula: 

 100 x A/B 

where: 
  

	 	A	 = the number of votes for the election of directors of the Corporation generally attaching to the Voting
Shares Beneficially Owned by such Person; and 

  

	 	B	 = the number of votes for the election of directors of the Corporation generally attaching to all
outstanding Voting Shares. 

 The percentage of outstanding Voting Shares represented by any particular
group of Voting Shares acquired or held by any Person shall be determined in like manner mutatis mutandis. 
  

	1.7	 Acting Jointly or in Concert 

For purposes of this Agreement a Person is acting jointly or in concert with every Person who is a party to an agreement, commitment,
arrangement or understanding, whether formal or informal or written or unwritten, with the first Person to acquire or Offer to Acquire any Voting Shares or Convertible Securities (other than: (a) customary agreements with and between
underwriters and/or banking group members and/or selling group members with respect to a distribution of securities by the Corporation; (b) pledges of securities in the ordinary course of business; and (c) Permitted Lock-Up Agreements). 
  

	1.8	 Generally Accepted Accounting Principles 

Wherever in this Agreement reference is made to generally accepted accounting principles, such reference shall be deemed to be the
recommendations at the relevant time of the Chartered Professional Accountants of Canada, or any successor institute, applicable on a consolidated basis (unless otherwise specifically provided herein to be applicable on an unconsolidated basis) as
at the date on which a calculation is made or required to be made in accordance with generally accepted accounting principles. Where the character or amount of any asset or liability or item of revenue or expense is required to be determined, or any
consolidation or other accounting computation is required to be made for the purpose of this Agreement or any document, such determination or calculation shall, to the extent applicable and except as otherwise specified herein or as otherwise agreed
in writing by the parties, be made in accordance with generally accepted accounting principles applied on a consistent basis. 

  
 - 14 - 

 

 ARTICLE 2 

THE RIGHTS 
  

	2.1	 Legend on Share Certificates 

Certificates representing Voting Shares which are issued after the Record Time but prior to the earlier of the Separation Time and the
Expiration Time, shall also evidence one Right for each Voting Share represented thereby until the earlier of the Separation Time or the Expiration Time and shall have impressed on, printed on, written on or otherwise affixed to them the following
legend: 
 Until the earlier of the Separation Time or the Expiration Time (as both terms are defined in the Shareholder
Rights Agreement referred to below), this certificate also evidences and entitles the holder hereof to certain Rights as set forth in an Amended and Restated Shareholder Rights Plan Agreement dated as of April 20, 2017 (amending and restating
the shareholder rights plan agreement dated as of April 3, 2014 and amended and restated as of March 21, 2017), as may be amended or supplemented from time to time (the “Shareholder Rights Agreement”), between DIRTT Environmental
Solutions Ltd. (the “Corporation”) and Computershare Trust Company of Canada, as Rights Agent, the terms of which are incorporated herein by reference and a copy of which is on file at the principal executive offices of the Corporation.
Under certain circumstances set out in the Shareholder Rights Agreement, the Rights may be amended or redeemed, may expire or may become void (if, in certain cases they are “Beneficially Owned” by an “Acquiring Person” as such
terms are defined in the Shareholder Rights Agreement, whether currently held by or on behalf of such Person or a subsequent holder) or may be evidenced by separate certificates and no longer evidenced by this certificate. The Corporation will mail
or arrange for the mailing of a copy of the Shareholder Rights Agreement to the holder of this certificate without charge as soon as practicable after the receipt of a written request therefor. 

Certificates representing Common Shares that are issued and outstanding at the Record Time shall also evidence one Right for each Common Share
represented thereby notwithstanding the absence of the foregoing legend, until the earlier of the Separation Time and the Expiration Time. 
  

	2.2	 Initial Exercise Price; Exercise of Rights; Detachment of Rights 

 

	 	(a)	 Subject to adjustment as herein set forth, each Right will entitle the holder thereof, from and after the
Separation Time and prior to the Expiration Time, to purchase one Common Share for the Exercise Price as at the Business Day immediately preceding the Separation Time (which Exercise Price and number of Common Shares are subject to adjustment as set
forth below). Notwithstanding any other provision of this Agreement, any Rights held by the Corporation or any of its Subsidiaries shall be void. 

  

	 	(b)	 Until the Separation Time: 

 

	 	(i)	 the Rights shall not be exercisable and no Right may be exercised; and 

 

	 	(ii)	 each Right will be evidenced by the certificate for the associated Voting Share registered in the name of
the holder thereof (which certificate shall also be deemed to represent a Rights Certificate) and will be transferable only together with, and will be transferred by a transfer of, such associated Voting Share. 

 

	 	(c)	 From and after the Separation Time and prior to the Expiration Time: 

 

	 	(i)	 the Rights shall be exercisable; and 

 

	 	(ii)	 the registration and transfer of Rights shall be separate from and independent of Voting Shares.

 Promptly following the Separation Time, the Corporation will prepare or cause to be prepared and the
Rights Agent will mail to each holder of record of Voting Shares as of the Separation Time and, in respect of each Convertible Security converted into Voting Shares after the Separation Time and 

  
 - 15 - 

 

 prior to the Expiration Time, promptly after such conversion, the Corporation
will prepare or cause to be prepared and the Rights Agent will mail to the holder so converting (other than in either case an Acquiring Person and any Transferee whose rights are or become null and void pursuant to Section 3.1(b) and, in
respect of any Rights Beneficially Owned by such Acquiring Person or Transferee which are not held of record by such Acquiring Person or Transferee, the holder of record of such Rights (a “Nominee”)), at such holder’s address
as shown by the records of the Corporation (the Corporation hereby agreeing to furnish copies of such records to the Rights Agent for this purpose): 
  

	 	(x)	 a Rights Certificate appropriately completed, representing the number of Rights held by such holder at the
Separation Time or at the time of conversion, as applicable, and having such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Corporation may deem appropriate and as are not inconsistent with
the provisions of this Agreement, or as may be required to comply with any law, rule or regulation or judicial or administrative order made pursuant thereto or with any rule or regulation of any self-regulatory organization, stock exchange or
quotation system on which the Rights may from time to time be listed or traded, or to conform to usage; and 

  

	 	(y)	 a disclosure statement prepared by the Corporation describing the Rights, 

provided that a Nominee shall be sent the materials provided for in (x) and (y) only in respect of all Common Shares held
of record by it which are not Beneficially Owned by an Acquiring Person. In order for the Corporation to determine whether any Person is holding Common Shares which are Beneficially Owned by another Person, the Corporation may require such first
Person to furnish such information and documentation as the Corporation deems necessary. 
  

	 	(d)	 Rights may be exercised, in whole or in part, on any Business Day after the Separation Time and prior to the
Expiration Time by submitting to the Rights Agent at its office in Calgary, Canada or any other office of the Rights Agent in cities designated from time to time for that purpose by the Corporation with the approval of the Rights Agent:

  

	 	(i)	 the Rights Certificate evidencing such Rights; 

 

	 	(ii)	 an election to exercise such Rights (an “Election to Exercise”) substantially in the form
attached to the Rights Certificate appropriately completed and duly executed by the holder or such holder’s executors or administrators or other personal representatives or such holder’s or their legal attorney duly appointed by an
instrument in writing in form and executed in a manner satisfactory to the Rights Agent; and 

  

	 	(iii)	 payment by certified cheque, banker’s draft, money order or wire transfer payable to the order of the
Rights Agent, of a sum equal to the Exercise Price multiplied by the number of Rights being exercised and a sum sufficient to cover any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of
Rights Certificates or the issuance or delivery of certificates for Common Shares in a name other than that of the holder of the Rights being exercised. 

  

	 	(e)	 Upon receipt of a Rights Certificate, together with a completed Election to Exercise executed in accordance
with Subsection 2.2(d)(ii), which does not indicate that such Right is null and void as provided by Subsection 3.1(b), and payment as set forth in Subsection 2.2(d)(iii), the Rights Agent (unless otherwise instructed by the Corporation in the event
that the Corporation is of the opinion that the Rights cannot be exercised in accordance with this Agreement) will thereupon as soon as practicable: 

  

	 	(i)	 requisition from the transfer agent certificates representing the number of such Common Shares to be
purchased (the Corporation hereby irrevocably authorizing its transfer agent to comply with all such requisitions); 

  
 - 16 - 

 

	 	(ii)	 when appropriate, requisition from the Corporation the amount of cash, if any, to be paid in lieu of issuing
fractional Common Shares; 

  

	 	(iii)	 after receipt of the certificates referred to in Subsection 2.2(e)(i), deliver the same to or upon the order
of the registered holder of such Rights Certificates, registered in such name or names as may be designated by such holder; 

  

	 	(iv)	 when appropriate, after receipt, deliver the cash referred to in Subsection 2.2(e)(ii) to or to the order of
the registered holder of such Rights Certificate; and 

  

	 	(v)	 remit to the Corporation all payments received on the exercise of Rights. 

 

	 	(f)	 In case the holder of any Rights shall exercise less than all the Rights evidenced by such holder’s
Rights Certificate, a new Rights Certificate evidencing the Rights remaining unexercised (subject to the provisions of Subsection 5.5(a)) will be issued by the Rights Agent to such holder or to such holder’s duly authorized assigns.

  

	 	(g)	 The Corporation covenants and agrees that it will: 

 

	 	(i)	 take all such action as may be necessary and within its power to ensure that all Common Shares delivered
upon exercise of Rights shall, at the time of delivery of the certificates for such Common Shares (subject to payment of the Exercise Price), be duly and validly authorized, executed, issued and delivered as fully paid and non-assessable; 

  

	 	(ii)	 take all such action as may be necessary and within its power to comply with the requirements of the ABCA,
the Securities Act and the other applicable securities laws or comparable legislation of each of the provinces of Canada, and any other applicable law, rule or regulation, in connection with the issuance and delivery of the Rights, the Rights
Certificates and the issuance of any Common Shares upon exercise of Rights; 

  

	 	(iii)	 use reasonable efforts to cause all Common Shares issued upon exercise of Rights to be listed on the stock
exchanges and markets on which such Common Shares were traded immediately prior to the Stock Acquisition Date; 

  

	 	(iv)	 pay when due and payable, if applicable, any and all federal, provincial and municipal transfer taxes and
charges (not including any income or capital taxes of the holder or exercising holder or any liability of the Corporation to withhold tax) which may be payable in respect of the original issuance or delivery of the Rights Certificates, or
certificates for Common Shares to be issued upon exercise of any Rights, provided that the Corporation shall not be required to pay any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of
Rights Certificates or the issuance or delivery of certificates for Common Shares issued upon the exercise of Rights in a name other than that of the holder of the Rights being transferred or exercised; and 

 

	 	(v)	 after the Separation Time, except as permitted by Sections 5.1 and 5.4, not take (or permit any Subsidiary
to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights. 

 

	2.3	 Adjustments to Exercise Price; Number of Rights 

The Exercise Price, the number and kind of securities subject to purchase upon exercise of each Right and the number of Rights outstanding are
subject to adjustment from time to time as provided in this Section 2.3 and in Article 3. 
  

	 	(a)	 In the event the Corporation shall at any time after the Record Time and prior to the Expiration Time:

  
 - 17 - 

 

	 	(i)	 declare or pay a dividend on Common Shares payable in Common Shares or Convertible Securities in respect
thereof other than pursuant to any Dividend Reinvestment Plan; 

  

	 	(ii)	 subdivide or change the then outstanding Common Shares into a greater number of Common Shares;

  

	 	(iii)	 consolidate or change the then outstanding Common Shares into a smaller number of Common Shares; or

  

	 	(iv)	 issue any Common Shares (or Convertible Securities in respect thereof) in respect of, in lieu of or in
exchange for existing Common Shares except as otherwise provided in this Section 2.3, 

 then the
Exercise Price and the number of Rights outstanding (or, if the payment or effective date therefor shall occur after the Separation Time, the securities purchasable upon exercise of Rights) shall be adjusted as of the payment or effective date in
the manner set forth below. 
 If the Exercise Price and number of Rights outstanding are to be adjusted: 

 

	 	(x)	 the Exercise Price in effect after such adjustment will be equal to the Exercise Price in effect immediately
prior to such adjustment divided by the number of Common Shares (or other capital stock) (the “Expansion Factor”) that a holder of one Common Share immediately prior to such dividend, subdivision, change, consolidation or issuance
would hold thereafter as a result thereof; and 

  

	 	(y)	 each Right held prior to such adjustment will become that number of Rights equal to the Expansion Factor,
and the adjusted number of Rights will be deemed to be distributed among the Common Shares with respect to which the original Rights were associated (if they remain outstanding) and the shares issued in respect of such dividend, subdivision, change,
consolidation or issuance, so that each such Common Share (or other capital stock) will have exactly one Right associated with it. 

For greater certainty, if the securities purchasable upon exercise of Rights are to be adjusted, the securities purchasable
upon exercise of each Right after such adjustment will be the securities that a holder of the securities purchasable upon exercise of one Right immediately prior to such dividend, subdivision, change, consolidation or issuance would hold thereafter
as a result of such dividend, subdivision, change, consolidation or issuance. 
 Adjustments made pursuant to this
Section 2.3(a) shall be made successively, whenever an event referred to in this Section 2.3(a) occurs. 
 If,
after the Record Time and prior to the Expiration Time, the Corporation shall issue any shares of capital stock other than Common Shares in a transaction of a type described in Subsections 2.3(a)(i) or (iv), shares of such capital stock shall be
treated herein as nearly equivalent to Common Shares as may be practicable and appropriate under the circumstances and the Corporation and the Rights Agent agree to amend this Agreement in order to effect such treatment. 

If an event occurs which would require an adjustment under both this Section 2.3 and Section 3.1, the adjustment
provided for in this Section 2.3 shall be in addition to, and shall be made prior to, any adjustment required under Section 3.1. 

In the event the Corporation shall at any time after the Record Time and prior to the Separation Time issue any Common Shares
otherwise than in a transaction referred to in this Subsection 2.3(a), each such Common Share so issued shall automatically have one new Right associated with it, which Right shall be evidenced by the certificate representing such associated Common
Share. 

  
 - 18 - 

 

	 	(b)	 In the event the Corporation shall at any time after the Record Time and prior to the Separation Time fix a
record date for the issuance of rights, options or warrants (other than Rights) to all holders of Common Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Common Shares (or
Convertible Securities in respect of Common Shares) at a price per Common Share (or, in the case of a Convertible Security, having a conversion, exchange or exercise price per share, including the price required to be paid to purchase such
Convertible Security) less than the Market Price per Common Share on such record date, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by
a fraction: 

  

	 	(i)	 the numerator of which shall be the number of Common Shares outstanding on such record date plus the number
of Common Shares that the aggregate offering price of the total number of Common Shares so to be offered (and/or the aggregate initial conversion, exchange or exercise price of the Convertible Securities, including the price required to be paid to
purchase such Convertible Securities) would purchase at such Market Price per Common Share; and 

  

	 	(ii)	 the denominator of which shall be the number of Common Shares outstanding on such record date plus the
number of additional Common Shares to be offered for subscription or purchase (or into which the Convertible Securities so to be offered are initially convertible, exchangeable or exercisable). 

In case such subscription price may be paid by delivery of consideration, part or all of which may be in a form other than
cash, the value of such consideration shall be as determined in good faith by the Board of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of
Rights. Such adjustment shall be made successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, or if issued, are not exercised prior to the expiration thereof, the Exercise Price
shall be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed, or to the Exercise Price which would be in effect based upon the number of Common Shares (or securities convertible into, or exchangeable
or exercisable for Common Shares) actually issued upon the exercise of such rights, options or warrants, as the case may be. 

For purposes of this Agreement, the granting of the right to purchase Common Shares (whether from treasury or otherwise)
pursuant to any Dividend Reinvestment Plan or any employee benefit, stock option or similar plans shall be deemed not to constitute an issue of rights, options or warrants by the Corporation; provided, however, that, in the case of any Dividend
Reinvestment Plan or share purchase plan, the right to purchase Common Shares is at a price per share of not less than 90% of the current market price per share (determined as provided in such plans) of the Common Shares. 

 

	 	(c)	 In the event the Corporation shall at any time after the Record Time and prior to the Separation Time fix a
record date for the making of a distribution to all holders of Common Shares (including any such distribution made in connection with a merger or amalgamation) of evidences of indebtedness, cash (other than an annual cash dividend or a dividend paid
in Common Shares, but including any dividend payable in securities other than Common Shares), assets or rights, options or warrants (excluding rights, options or warrants expiring within 45 calendar days after such record date) to purchase Common
Shares or Convertible Securities in respect of Common Shares, the Exercise Price in effect after such record date shall be equal to the Exercise Price in effect immediately prior to such record date less the fair market value (as determined in good
faith by the Board of Directors) of the portion of the evidences of indebtedness, cash, assets, rights, options or warrants so to be distributed applicable to the securities purchasable upon exercise of one Right. Such adjustment shall be made
successively whenever such a record date is fixed. 

  

	 	(d)	 Notwithstanding anything herein to the contrary, no adjustment in the Exercise Price shall be required
unless such adjustment would require an increase or decrease of at least one per cent in the Exercise Price; provided, however, that any adjustments which by reason of this Subsection 2.3(d) are not required to be made shall be carried forward and
taken into account in any subsequent 

  
 - 19 - 

 

	 	 adjustment. All calculations under Section 2.3 shall be made to the nearest cent or to the nearest ten-thousandth of a share. Any adjustment required by Section 2.3 shall be made as of: 

  

	 	(i)	 the payment or effective date for the applicable dividend, subdivision, change, combination or issuance, in
the case of an adjustment made pursuant to Subsection 2.3(a); or 

  

	 	(ii)	 the record date for the applicable dividend or distribution, the case of an adjustment made pursuant to
Subsection 2.3(b) or (c), subject to readjustment to reverse the same if such distribution shall not be made. 

  

	 	(e)	 In the event the Corporation shall at any time after the Record Time and prior to the Separation Time issue
any shares of capital stock (other than Common Shares), or rights, options or warrants to subscribe for or purchase any such capital stock, or securities convertible into or exchangeable for any such capital stock, in a transaction referred to in
Subsection 2.3(a)(i) or (iv) or Subsections 2.3(b) or (c), if the Board of Directors acting in good faith determines that the adjustments contemplated by Subsections 2.3(a), (b) and (c) in connection with such transaction will not
appropriately protect the interests of the holders of Rights, the Board of Directors may determine what other adjustments to the Exercise Price, number of Rights and/or securities purchasable upon exercise of Rights would be appropriate and,
notwithstanding Subsections 2.3(a), (b) and (c), such adjustments, rather than the adjustments contemplated by Subsections 2.3(a), (b) and (c), shall be made. Subject to Subsections 5.4(b) and (c), the Corporation and the Rights Agent may, with the
prior approval of the holders of the Common Shares, amend this Agreement as appropriate to provide for such adjustments. 

  

	 	(f)	 Each Right originally issued by the Corporation subsequent to any adjustment made to the Exercise Price
hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the number of Common Shares purchasable from time to time hereunder upon exercise of a Right immediately prior to such issue, all subject to further adjustment as
provided herein. 

  

	 	(g)	 Irrespective of any adjustment or change in the Exercise Price or the number of Common Shares issuable upon
the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Exercise Price per Common Share and the number of Common Shares which were expressed in the initial Rights Certificates issued
hereunder. 

  

	 	(h)	 In any case in which this Section 2.3 shall require that an adjustment in the Exercise Price be made
effective as of a record date for a specified event, the Corporation may elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of Common Shares and other securities of
the Corporation, if any, issuable upon such exercise over and above the number of Common Shares and other securities of the Corporation, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment;
provided, however, that the Corporation shall deliver to such holder an appropriate instrument evidencing such holder’s right to receive such additional shares (fractional or otherwise) or other securities upon the occurrence of the event
requiring such adjustment. 

  

	 	(i)	 Notwithstanding anything contained in this Section 2.3 to the contrary, the Corporation shall be
entitled to make such reductions in the Exercise Price, in addition to those adjustments expressly required by this Section 2.3, as and to the extent that in their good faith judgment the Board of Directors shall determine to be advisable, in
order that any: 

  

	 	(i)	 consolidation or subdivision of Common Shares; 

 

	 	(ii)	 issuance (wholly or in part for cash) of Common Shares or securities that by their terms are convertible
into or exchangeable for Common Shares; 

  

	 	(iii)	 stock dividends; or 

 

	 	(iv)	 issuance of rights, options or warrants referred to in this Section 2.3, 

  
 - 20 - 

 

 hereafter made by the Corporation to holders of its Common Shares, subject to
applicable taxation laws, shall not be taxable to such shareholders or shall subject such shareholders to a lesser amount of tax. 
  

	 	(j)	 Whenever an adjustment to the Exercise Price is made pursuant to this Section 2.3, the Corporation
shall: 

  

	 	(i)	 promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting
for such adjustment; and 

  

	 	(ii)	 promptly file with the Rights Agent and with each transfer agent for the Common Shares a copy of such
certificate and mail a brief summary thereof to each holder of Rights who requests a copy; 

 Failure to
file such certificate or to cause such notice to be given as aforesaid, or any defect therein, shall not affect the validity of any such adjustment or change. 
  

	2.4	 Date on Which Exercise Is Effective 

Each Person in whose name any certificate for Common Shares or other securities, if applicable, is issued upon the exercise of Rights shall
for all purposes be deemed to have become the absolute holder of record of the Common Shares or other securities, if applicable, represented thereon, and such certificate shall be dated the date upon which the Rights Certificate evidencing such
Rights was duly surrendered in accordance with Subsection 2.2(d) (together with a duly completed Election to Exercise) and payment of the Exercise Price for such Rights (and any applicable transfer taxes and other governmental charges payable by the
exercising holder hereunder) was made; provided, however, that if the date of such surrender and payment is a date upon which the Common Share transfer books of the Corporation are closed, such Person shall be deemed to have become the record holder
of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Common Share transfer books of the Corporation are open. 
  

	2.5	 Execution, Authentication, Delivery and Dating of Rights Certificates 

 

	 	(a)	 The Rights Certificates shall be executed on behalf of the Corporation by its Chairman of the Board, Chief
Executive Officer, President, Chief Financial Officer or any Vice-President and by its Corporate Secretary or any Assistant Secretary under the corporate seal of the Corporation reproduced thereon. The signature of any of these officers on the
Rights Certificates may be manual or facsimile. Rights Certificates bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Corporation shall bind the Corporation, notwithstanding that such
individuals or any of them have ceased to hold such offices either before or after the countersignature and delivery of such Rights Certificates. 

  

	 	(b)	 Promptly after the Corporation learns of the Separation Time, the Corporation will notify the Rights Agent
of such Separation Time and will deliver Rights Certificates executed by the Corporation to the Rights Agent for countersignature, and the Rights Agent shall countersign (manually or by facsimile signature in a manner satisfactory to the
Corporation) and send such Rights Certificates to the holders of the Rights pursuant to Subsection 2.2(c) hereof. No Rights Certificate shall be valid for any purpose until countersigned by the Rights Agent as aforesaid. 

 

	 	(c)	 Each Rights Certificate shall be dated the date of countersignature thereof. 

 

	2.6	 Registration, Transfer and Exchange 

 

	 	(a)	 After the Separation Time, the Corporation will cause to be kept a register (the “Rights
Register”) in which, subject to such reasonable regulations as it may prescribe, the Corporation will provide for the registration and transfer of Rights. The Rights Agent, at its office in the City of Calgary, is hereby appointed registrar
for the Rights (the “Rights Registrar”) for the purpose of maintaining the Rights Register for the Corporation and registering Rights and transfers of Rights as herein

  
 - 21 - 

 

	 	 provided and the Rights Agent hereby accepts such appointment. In the event that the Rights Agent shall cease
to be the Rights Registrar, the Rights Agent will have the right to examine the Rights Register at all reasonable times. 

  

	 	(b)	 After the Separation Time and prior to the Expiration Time, upon surrender for registration of transfer or
exchange of any Rights Certificate, and subject to the provisions of Subsection 2.6(d), the Corporation will execute, and the Rights Agent will countersign and deliver, in the name of the holder or the designated transferee or transferees, as
required pursuant to the holder’s instructions, one or more new Rights Certificates evidencing the same aggregate number of Rights as did the Rights Certificates so surrendered. 

 

	 	(c)	 All Rights issued upon any registration of transfer or exchange of Rights Certificates shall be the valid
obligations of the Corporation, and such Rights shall be entitled to the same benefits under this Agreement as the Rights surrendered upon such registration of transfer or exchange. 

 

	 	(d)	 Every Rights Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the Corporation or the Rights Agent, as the case may be, duly executed by the holder thereof or such holder’s attorney duly authorized in writing. As a condition to the
issuance of any new Rights Certificate under this Section 2.6, the Corporation may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including
the reasonable fees and expenses of the Rights Agent) connected therewith. 

  

	2.7	 Mutilated, Destroyed, Lost and Stolen Rights Certificates 

 

	 	(a)	 If any mutilated Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, the
Corporation shall execute and the Rights Agent shall countersign and deliver in exchange therefor a new Rights Certificate evidencing the same number of Rights as did the Rights Certificate so surrendered. 

 

	 	(b)	 If there shall be delivered to the Corporation and the Rights Agent prior to the Expiration Time:

  

	 	(i)	 evidence to their reasonable satisfaction of the destruction, loss or theft of any Rights Certificate; and

  

	 	(ii)	 such security or indemnity as may be reasonably required by them to save each of them and any of their
agents harmless, 

 then, in the absence of notice to the Corporation or the Rights Agent that such Rights
Certificate has been acquired by a bona fide purchaser, the Corporation shall execute and upon the Corporation’s request the Rights Agent shall countersign and deliver, in lieu of any such destroyed, lost or stolen Rights Certificate, a
new Rights Certificate evidencing the same number of Rights as did the Rights Certificate so destroyed, lost or stolen. 
  

	 	(c)	 As a condition to the issuance of any new Rights Certificate under this Section 2.7, the Corporation
may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the reasonable fees and expenses of the Rights Agent) connected therewith.

  

	 	(d)	 Every new Rights Certificate issued pursuant to this Section 2.7 in lieu of any destroyed, lost or
stolen Rights Certificate shall evidence the contractual obligation of the Corporation, whether or not the destroyed, lost or stolen Rights Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this
Agreement equally and proportionately with any and all other Rights duly issued hereunder. 

  
 - 22 - 

 

	2.8	 Persons Deemed Owners of Rights 

The Corporation, the Rights Agent and any agent of the Corporation or the Rights Agent may deem and treat the Person in whose name a Rights
Certificate (or, prior to the Separation Time, the associated Common Share certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby for all purposes whatsoever. As used in this Agreement, unless the context
otherwise requires, the term “holder” of any Right shall mean the registered holder of such Right (or, prior to the Separation Time, of the associated Common Share). 

 

	2.9	 Delivery and Cancellation of Certificates 

All Rights Certificates surrendered upon exercise or for redemption, registration of transfer or exchange shall, if surrendered to any Person
other than the Rights Agent, be delivered to the Rights Agent and, in any case, shall be promptly cancelled by the Rights Agent. The Corporation may at any time deliver to the Rights Agent for cancellation any Rights Certificates previously
countersigned and delivered hereunder which the Corporation may have acquired in any manner whatsoever, and all Rights Certificates so delivered shall be promptly cancelled by the Rights Agent. No Rights Certificate shall be countersigned in lieu of
or in exchange for any Rights Certificates cancelled as provided in this Section 2.9, except as expressly permitted by this Agreement. The Rights Agent shall, subject to applicable laws, destroy all cancelled Rights Certificates and deliver a
certificate of destruction to the Corporation. 
  

	2.10	 Agreement of Rights Holders 

Every holder of Rights, by accepting the same, consents and agrees with the Corporation and the Rights Agent and with every other holder of
Rights: 
  

	 	(a)	 to be bound by and subject to the provisions of this Agreement, as amended from time to time in accordance
with the terms hereof, in respect of all Rights held; 

  

	 	(b)	 that prior to the Separation Time, each Right will be transferable only together with, and will be
transferred by a transfer of, the associated Voting Share certificate representing such Right; 

  

	 	(c)	 that after the Separation Time, the Rights Certificates will be transferable only on the Rights Register as
provided herein; 

  

	 	(d)	 that prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated
Voting Share certificate) for registration of transfer, the Corporation, the Rights Agent and any agent of the Corporation or the Rights Agent may deem and treat the Person in whose name the Rights Certificate (or, prior to the Separation Time, the
associated Voting Share certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on such Rights Certificate or the associated Voting Share certificate made by
anyone other than the Corporation or the Rights Agent) for all purposes whatsoever, and neither the Corporation nor the Rights Agent shall be affected by any notice to the contrary; 

 

	 	(e)	 that such holder of Rights has waived his right to receive any fractional Rights or any fractional shares or
other securities upon exercise of a Right (except as provided herein); 

  

	 	(f)	 that, subject to the provisions of Section 5.4, without the approval of any holder of Rights or Voting
Shares and upon the sole authority of the Board of Directors, acting in good faith, this Agreement may be supplemented or amended from time to time pursuant to and as provided herein; and 

 

	 	(g)	 that notwithstanding anything in this Agreement to the contrary, neither the Corporation nor the Rights
Agent shall have any liability to any holder of a Right or any other Person as a result of its inability to perform any of its obligations under this Agreement by reason of preliminary or permanent injunctions or other order, decree or ruling issued
by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority prohibiting or otherwise
restraining performance of such obligation. 

  
 - 23 - 

 

	2.11	 Rights Certificate Holder Not Deemed a Shareholder 

No holder, as such, of any Rights or Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose whatsoever
the holder of any Common Share or any other share or security of the Corporation which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Rights Certificate be construed or
deemed or confer upon the holder of any Right or Rights Certificate, as such, any right, title, benefit or privilege of a holder of Common Shares or any other shares or securities of the Corporation or any right to vote at any meeting of
shareholders of the Corporation whether for the election of directors or otherwise or upon any matter submitted to holders of Common Shares or any other shares of the Corporation at any meeting thereof, or to give or withhold consent to any action
of the Corporation, or to receive notice of any meeting or other action affecting any holder of Common Shares or any other shares of the Corporation except as expressly provided herein, or to receive dividends, distributions or subscription rights,
or otherwise, until the Right or Rights evidenced by Rights Certificates shall have been duly exercised in accordance with the terms and provisions hereof. 

ARTICLE 3 
 ADJUSTMENTS
TO THE RIGHTS 
  

	3.1	 Flip-in Event 

 

	 	(a)	 Subject to Subsection 3.1(b) and Section 5.1, in the event that prior to the Expiration Time a Flip-in Event shall occur, each Right shall constitute, effective at the close of business on the tenth Trading Day after the Stock Acquisition Date, the right to purchase from the Corporation, upon exercise thereof
in accordance with the terms hereof, that number of Common Shares having an aggregate Market Price on the date of consummation or occurrence of such Flip-in Event equal to twice the Exercise Price for an
amount in cash equal to the Exercise Price (such right to be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 in the event that after such consummation or occurrence, an event of a type
analogous to any of the events described in Section 2.3 shall have occurred). 

  

	 	(b)	 Notwithstanding anything in this Agreement to the contrary, upon the occurrence of any Flip-in Event, any Rights that are or were Beneficially Owned on or after the earlier of the Separation Time or the Stock Acquisition Date by: 

 

	 	(i)	 an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any other Person acting jointly
or in concert with an Acquiring Person or any Affiliate or Associate of such other Person); or 

  

	 	(ii)	 a transferee or other successor in title, directly or indirectly, (a “Transferee”) of
Rights held by an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any other Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of such other Person), where such Transferee becomes a
transferee concurrently with or subsequent to the Acquiring Person becoming such in a transfer that the Board of Directors acting in good faith has determined is part of a plan, arrangement or scheme of an Acquiring Person (or any Affiliate or
Associate of an Acquiring Person or any other Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of such other Person), that has the purpose or effect of avoiding Subsection 3.1(b)(i), 

shall become null and void without any further action, and any holder of such Rights (including any Transferee) shall
thereafter have no right to exercise such Rights under any provision of this Agreement and further shall thereafter not have any other rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The
holder of any Rights represented by a Rights Certificate which is submitted to the Rights Agent upon exercise or for registration or transfer or exchange which does not contain the necessary certifications set forth in the Rights Certificate
establishing that such Rights are not null and void under this Subsection 3.1(b) shall be deemed to be an Acquiring Person for the purposes of this Subsection 3.1 and such Rights shall become null and void. 

  
 - 24 - 

 

	 	(c)	 From and after the Separation Time, the Corporation shall do all such acts and things as shall be necessary
and within its power to ensure compliance with the provisions of this Section 3.1, including without limitation, all such acts and things as may be required to satisfy the requirements of the ABCA, the Securities Act and the other applicable
securities laws or comparable legislation of each of the provinces of Canada and elsewhere in respect of the issue of Common Shares upon the exercise of Rights in accordance with this Agreement. 

 

	 	(d)	 Any Rights Certificate that represents Rights Beneficially Owned by a Person described in either Subsection
3.1(b)(i) or (ii) or transferred to any Nominee of any such Person, and any Rights Certificate issued upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain or will be
deemed to contain the following legend: 

 The Rights represented by this Rights Certificate were issued
to a Person who was an Acquiring Person or an Affiliate or an Associate of an Acquiring Person (as such terms are defined in the Shareholder Rights Agreement) or a Person who was acting jointly or in concert with an Acquiring Person or an Affiliate
or Associate of such Person. This Rights Certificate and the Rights represented hereby are void or shall become void in the circumstances specified in Subsection 3.1(b) of the Shareholder Rights Agreement. 

provided, however, that the Rights Agent shall not be under any responsibility to ascertain the existence of facts that would
require the imposition of such legend but shall impose such legend only if instructed to do so by the Corporation in writing or if a holder fails to certify upon transfer or exchange in the space provided on the Rights Certificate that such holder
is not a Person described in such legend and provided further that the fact that such legend does not appear on a certificate is not determinative of whether any Rights represented thereby are void under this Section. 

ARTICLE 4 
 THE RIGHTS
AGENT 
  

	4.1	 General 

 

	 	(a)	 The Corporation hereby appoints the Rights Agent to act as agent for the Corporation and the holders of the
Rights in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Corporation may from time to time appoint such co-Rights Agents (“Co-Rights Agents”) as it may deem necessary or desirable. In the event the Corporation appoints one or more Co-Rights Agents, the respective duties of the Rights
Agent and Co-Rights Agents shall be as the Corporation may determine with the approval of the Rights Agent and the Co-Rights Agent. The Corporation agrees to pay to the
Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements reasonably incurred in the administration and
execution of this Agreement and the exercise and performance of its duties hereunder (including the fees and disbursements of any expert or advisor retained by the Rights Agent pursuant to Section4.3(a)). The Corporation also agrees to indemnify the
Rights Agent, and its officers, directors, employees and agents for, and to hold it and them harmless against, any loss, liability or expense, incurred without negligence, bad faith or wilful misconduct on the part of the Rights Agent or such
persons, for anything done or omitted by the Rights Agent or such persons in connection with the acceptance and administration of this Agreement, including legal costs and expenses, which right to indemnification will survive the termination of this
Agreement and the resignation or removal of the Rights Agent. 

  

	 	(b)	 The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken,
suffered or omitted by it in connection with its administration of this Agreement in reliance upon any certificate for Common Shares, Rights Certificate, certificate for other securities of the Corporation, instrument of assignment or transfer,
power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper
Person or Persons. 

  
 - 25 - 

 

	 	(c)	 The Corporation shall inform the Rights Agent in a reasonably timely manner of events which may materially
affect the administration of this Agreement by the Rights Agent and, at any time upon request, shall provide to the Rights Agent an incumbency certificate certifying the then current officers of the Corporation. 

 

	4.2	 Merger, Amalgamation or Consolidation or Change of Name of Rights Agent 

 

	 	(a)	 Any corporation into which the Rights Agent may be merged or amalgamated or with which it may be
consolidated, or any corporation resulting from any merger, amalgamation, statutory arrangement or consolidation to which the Rights Agent is a party, or any corporation succeeding to the shareholder or stockholder services business of the Rights
Agent, will be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a
successor Rights Agent under the provisions of Section 4.4 hereof. In case at the time such successor Rights Agent succeeds to the agency created by this Agreement any of the Rights Certificates have been countersigned but not delivered, any
successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates have not been countersigned, any successor Rights
Agent may countersign such Rights Certificates in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates will have the full force provided in the Rights Certificates and
in this Agreement. 

  

	 	(b)	 In case at any time the name of the Rights Agent is changed and at such time any of the Rights Certificates
shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been
countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this
Agreement. 

  

	4.3	 Duties of Rights Agent 

The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the following terms and conditions, all of which the
Corporation and the holders of certificates for Common Shares and the holders of Rights Certificates, by their acceptance thereof, shall be bound: 
  

	 	(a)	 the Rights Agent may retain and consult with legal counsel (who may be legal counsel for the Corporation)
and the opinion of such counsel will be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion and the Rights Agent may also consult with such
other experts as the Rights Agent may reasonably consider necessary or appropriate to properly carry out the duties and obligations imposed under this Agreement (at the expense of the Corporation) and the Rights Agent shall be entitled to act and
rely in good faith on the advice of any such expert; 

  

	 	(b)	 whenever in the performance of its duties under this Agreement, the Rights Agent deems it necessary or
desirable that any fact or matter be proved or established by the Corporation prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate signed by a Person believed by the Rights Agent to be the Chairman of the Board, Chief Executive Officer, President, Chief Financial Officer, any Vice-President, Treasurer, Corporate Secretary or
any Assistant Secretary of the Corporation and delivered to the Rights Agent; and such certificate will be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance
upon such certificate; 

  

	 	(c)	 the Rights Agent will be liable hereunder only for its own negligence, bad faith or wilful misconduct;

  
 - 26 - 

 

	 	(d)	 the Rights Agent will not be liable for or by reason of any of the statements of fact or recitals contained
in this Agreement or in the certificates for Common Shares or the Rights Certificates (except its countersignature thereof), or be required to verify the same, but all such statements and recitals are and will be deemed to have been made by the
Corporation only; 

  

	 	(e)	 the Rights Agent will not be under any responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due authorization, execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of any certificate for a Common Share or Rights Certificate (except its countersignature
thereof); nor will it be responsible for any breach by the Corporation of any covenant or condition contained in this Agreement or in any Rights Certificate; nor will it be responsible for any change in the exercisability of the Rights (including
the Rights becoming void pursuant to Subsection 3.1(b) hereof) or any adjustment required under the provisions of Section 2.3 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of
facts that would require any such adjustment (except with respect to the exercise of Rights after receipt of the certificate contemplated by Section 2.3 describing any such adjustment or any written notice from the Corporation or any holder
that a Person has become an Acquiring Person); nor will it by any act hereunder be deemed to make any representation or warranty as to the authorization of any Common Shares to be issued pursuant to this Agreement or any Rights or as to whether any
Common Shares will, when issued, be duly and validly authorized, executed, issued and delivered and fully paid and non-assessable; 

 

	 	(f)	 the Corporation agrees that it will perform, execute, acknowledge and deliver or cause to be performed,
executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement;

  

	 	(g)	 the Rights Agent is hereby authorized and directed to accept instructions in writing with respect to the
performance of its duties hereunder from any individual believed by the Rights Agent to be the Chairman of the Board, President, Chief Executive Officer, Chief Financial Officer, any Vice-President, Treasurer, Corporate Secretary or any Assistant
Secretary of the Corporation, and to apply to such individuals for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any such
individual. It is understood that instructions to the Rights Agent shall, except where circumstances make it impractical or the Rights Agent otherwise agrees, be given in writing and, where not in writing, such instructions shall be confirmed in
writing as soon as practicable after the giving of such instructions; 

  

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

 

	 	(i)	 the Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any
duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent will not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Corporation
resulting from any such act, default, neglect or misconduct, provided reasonable care was exercised in the selection and continued employment thereof. 

  

	4.4	 Change of Rights Agent 

The Rights Agent may resign and be discharged from its duties under this Agreement upon 60 days’ notice (or such lesser notice as is
acceptable to the Corporation) in writing mailed to the Corporation and to each transfer agent of Common Shares by registered or certified mail and to the holders of Rights in accordance with Section 5.9. The Corporation may remove the Rights
Agent upon 30 days’ notice in writing, mailed to the Rights Agent and to each 

  
 - 27 - 

 

 transfer agent of the Common Shares by registered or certified mail and to the holders of Rights
in accordance with Section 5.9. If the Rights Agent should resign or be removed or otherwise become incapable of acting, the Corporation will appoint a successor to the Rights Agent. If the Corporation fails to make such appointment within a
period of 30 days after such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent, then by prior written notice to the Corporation the resigning Rights Agent or the holder
of any Rights (which holder shall, with such notice, submit such holder’s Rights Certificate, if any, for inspection by the Corporation), may apply, at the Corporation’s expense, to any court of competent jurisdiction for the appointment
of a new Rights Agent. Any successor Rights Agent, whether appointed by the Corporation or by such a court, shall be a corporation incorporated under the laws of Canada or a province thereof authorized to carry on the business of a trust company in
the Province of Alberta. After appointment, the successor Rights Agent will be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor
Rights Agent shall, upon payment in full of any outstanding amounts owing by the Corporation to the Rights Agent under this Agreement, deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and
deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Corporation will file notice thereof in writing with the predecessor Rights Agent and each transfer
agent of the Common Shares, and mail a notice thereof in writing to the holders of the Rights in accordance with Section 5.9. Failure to give any notice provided for in this Section 4.4, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the appointment of any successor Rights Agent, as the case may be. 

ARTICLE 5 
 MISCELLANEOUS

  

	5.1	 Redemption and Waiver 

 

	 	(a)	 The Board of Directors acting in good faith may, with the prior approval of the holders of Voting Shares or
of the holders of Rights given in accordance with Section 5.1(i) or (j), as the case may be, at any time prior to the occurrence of a Flip-in Event as to which the application of Section 3.1 has not
been waived pursuant to the provisions of this Section 5.1, elect to redeem all but not less than all of the then outstanding Rights at a redemption price of $0.00001 per Right appropriately adjusted in a manner analogous to the applicable
adjustment provided for in Section 2.3 in the event that an event of the type analogous to any of the events described in Section 2.3 shall have occurred (such redemption price being herein referred to as the “Redemption
Price”). 

  

	 	(b)	 The Board of Directors acting in good faith may, with the prior approval of the holders of Voting Shares
given in accordance with Section 5.1(i), determine, at any time prior to the occurrence of a Flip-in Event as to which the application of Section 3.1 has not been waived pursuant to this
Section 5.1, if such Flip-in Event would occur by reason of an acquisition of Voting Shares otherwise than pursuant to a Take-over Bid made by means of a take-over bid circular to all holders of record of
Voting Shares and otherwise than in the circumstances set forth in Subsection 5.1(d), to waive the application of Section 3.1 to such Flip-in Event. In the event that the Board of Directors proposes such
a waiver, the Board of Directors shall extend the Separation Time to a date subsequent to and not more than ten Business Days following the meeting of shareholders called to approve such waiver. 

 

	 	(c)	 The Board of Directors acting in good faith may, until the occurrence of a
Flip-in Event upon prior written notice delivered to the Rights Agent, determine to waive the application of Section 3.1 to such particular Flip-in Event provided
that the Flip-in Event would occur by reason of a Take-over Bid made by way of take-over bid circular sent to all holders of Voting Shares (which for greater certainty shall not include the circumstances
described in Subsection 5.1(d)); provided that if the Board of Directors waives the application of Section 3.1 to a particular Flip-in Event pursuant to this Subsection 5.1(c), the Board of Directors
shall be deemed to have waived the application of Section 3.1 to any other Flip-in Event subsequently occurring by reason of any Take-over Bid which is made by means of a take-over bid circular to all
holders of Voting Shares prior to the expiry of any Take-over Bid in respect of which a waiver is, or is deemed to have been, granted under this Subsection 5.1(c). 

  
 - 28 - 

 

	 	(d)	 Notwithstanding the provisions of Subsections 5.1(b) and (c) hereof, the Board of Directors may waive
the application of Section 3.1 in respect of the occurrence of any Flip-in Event if the Board of Directors has determined within ten Trading Days following a Stock Acquisition Date that a Person became an
Acquiring Person by inadvertence and without any intention to become, or knowledge that it would become, an Acquiring Person under this Agreement, and in the event such waiver is granted by the Board of Directors, such Stock Acquisition Date shall
be deemed not to have occurred. Any such waiver pursuant to this Subsection 5.1(d) must be on the condition that such Person, within 14 days after the foregoing determination by the Board of Directors or such earlier or later date as the Board of
Directors may determine (the “Disposition Date”), has reduced its Beneficial Ownership of Voting Shares such that the Person is no longer an Acquiring Person. If the Person remains an Acquiring Person at the close of business on the
Disposition Date, the Disposition Date shall be deemed to be the date of occurrence of a further Stock Acquisition Date and Section 3.1 shall apply thereto. 

 

	 	(e)	 The Board of Directors shall, without further formality, be deemed to have elected to redeem the Rights at
the Redemption Price on the date that a Person which has made a Permitted Bid, a Competing Permitted Bid or a Take-Over Bid in respect of which the Board of Directors has waived, or is deemed to have waived, pursuant to Subsection 5.1(c) the
application of Section 3.1, takes up and pays for Voting Shares in connection with such Permitted Bid, Competing Permitted Bid or Take-over bid, as the case may be. 

 

	 	(f)	 Where a Take-over Bid that is not a Permitted Bid is withdrawn or otherwise terminated after the Separation
Time has occurred and prior to the occurrence of a Flip-in Event, the Board of Directors may elect to redeem all the outstanding Rights at the Redemption Price. Upon the Rights being redeemed pursuant to this
Subsection 5.1(f), all the provisions of this Agreement shall continue to apply as if the Separation Time had not occurred and Rights Certificates representing the number of Rights held by each holder of record of Common Shares as of the Separation
Time had not been mailed to each such holder and for all purposes of this Agreement the Separation Time shall be deemed not to have occurred and the Corporation shall be deemed to have issued replacement Rights to the holders of its then outstanding
Common Shares. 

  

	 	(g)	 If the Board of Directors elects or is deemed to have elected to redeem the Rights, and, in circumstances in
which Subsection 5.1(a) is applicable, such redemption is approved by the holders of Voting Shares or the holders of Rights in accordance with Subsection 5.1(i) or (j), as the case may be, the right to exercise the Rights, will thereupon, without
further action and without notice, terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. 

  

	 	(h)	 Within ten Business Days after the Board of Directors elects or is deemed to elect to redeem the Rights or
if Subsection 5.1(a) is applicable within ten Business Days after the holders of Common Shares or the holders of Rights have approved a redemption of Rights in accordance with Section 5.1(i) or (j), as the case may be, the Corporation shall
give notice of redemption to the holders of the then outstanding Rights by mailing such notice to each such holder at his last address as it appears upon the registry books of the Rights Agent or, prior to the Separation Time, on the registry books
of the transfer agent for the Voting Shares. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of
the Redemption Price will be made. The Corporation may not redeem, acquire or purchase for value any Rights at any time in any manner other than specifically set forth in this Section 5.1 or in connection with the purchase of Common Shares
prior to the Separation Time. 

  

	 	(i)	 If a redemption of Rights pursuant to Subsection 5.1(a) or a waiver of a
Flip-in Event pursuant to Section 5.1(b) is proposed at any time prior to the Separation Time, such redemption or waiver shall be submitted for approval to the holders of Voting Shares. Such approval
shall be deemed to have been given if the redemption or waiver is approved by the affirmative vote of a majority of the votes cast by Independent Shareholders represented in person or by proxy at a meeting of such holders duly held in accordance
with applicable laws and the Corporation’s by-laws. 

  
 - 29 - 

 

	 	(j)	 If a redemption of Rights pursuant to Subsection 5.1(a) is proposed at any time after the Separation Time,
such redemption shall be submitted for approval to the holders of Rights. Such approval shall be deemed to have been given if the redemption is approved by holders of Rights by a majority of the votes cast by the holders of Rights represented in
person or by proxy at and entitled to vote at a meeting of such holders. For the purposes hereof, each outstanding Right (other than Rights which are Beneficially Owned by any Person referred to in Subsections (i) to (v) inclusive of the
definition of Independent Shareholders) shall be entitled to one vote, and the procedures for the calling, holding and conduct of the meeting shall be those, as nearly as may be, which are provided in the Corporation’s by-laws and the ABCA, with respect to meetings of shareholders of the Corporation. 

  

	 	(k)	 The Corporation shall not be obligated to make a payment of the Redemption Price to any holder of Rights
unless such holder is entitled to receive at least $10 in respect of all of the Rights held by such holder. 

  

	5.2	 Expiration 

No Person shall have any rights whatsoever pursuant to this Agreement or in respect of any Right after the Expiration Time, except the Rights
Agent as specified in Section 4.1 of this Agreement. 
  

	5.3	 Issuance of New Rights Certificates 

Notwithstanding any of the provisions of this Agreement or the Rights to the contrary, the Corporation may, at its option, issue new Rights
Certificates evidencing Rights in such form as may be approved by the Board of Directors to reflect any adjustment or change in the number or kind or class of securities purchasable upon exercise of Rights made in accordance with the provisions of
this Agreement. 
  

	5.4	 Supplements and Amendments 

 

	 	(a)	 The Corporation may, without the prior approval of the holders of Voting Shares or Rights, make amendments
to this Agreement: 

  

	 	(i)	 to correct any clerical or typographical error; 

 

	 	(ii)	 which are required to maintain the validity of this Agreement as a result of any change in any applicable
legislation or regulations or rules thereunder; or 

  

	 	(iii)	 to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent
with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Agreement, provided that such action pursuant to this paragraph (iii) shall not adversely affect the interests of the
holders of Voting Shares Rights in any material respect. 

  

	 	(b)	 Subject to Subsection 5.4(a), the Corporation may, with the prior approval of the holders of Voting Shares,
at any time before the Separation Time, supplement, amend, vary, rescind or delete any of the provisions of this Agreement and the Rights (whether or not such action would materially adversely affect the interests of the holders of Rights
generally). Any approval of the holders of Voting Shares shall be deemed to have been given if the action requiring such approval is authorized by the affirmative vote of a majority of the votes cast by Independent Shareholders present or
represented at and entitled to be voted at a meeting of the holders of Voting Shares duly called and held in compliance with applicable laws and the articles and by-laws of the Corporation.

  

	 	(c)	 Subject to Subsection 5.4(a), the Corporation may, with the prior approval of the holders of Rights, at any
time on or after the Separation Time, supplement, amend, vary, rescind or delete any of the provisions of this Agreement and the Rights (whether or not such action would materially adversely affect the interests of the holders of Rights generally).
Any approval of the holders of Rights shall be deemed to have been given if the action requiring such approval is authorized by the affirmative votes of the holders of Rights present or represented at and entitled to be voted at a meeting of the

  
 - 30 - 

 

	 	 holders of Rights and representing a majority of the votes cast in respect thereof. For the purposes hereof,
each outstanding Right (other than Rights which are void pursuant to the provisions hereof) shall be entitled to one vote, and the procedures for the calling, holding and conduct of the meeting shall be those, as nearly as may be, which are provided
in the Corporation’s by-laws and the ABCA, with respect to meetings of shareholders of the Corporation. 

  

	 	(d)	 Any amendments made by the Corporation to this Agreement pursuant to Subsection 5.4(a)(ii) shall:

  

	 	(i)	 if made before the Separation Time, be submitted to the shareholders of the Corporation at the next meeting
of shareholders and the shareholders may, by the majority referred to in Subsection 5.4(b), confirm or reject such amendment; 

  

	 	(ii)	 if made after the Separation Time, be submitted to the holders of Rights at a meeting to be called for on a
date not later than immediately following the next meeting of shareholders of the Corporation and the holders of Rights may, by resolution passed by the majority referred to in Subsection 5.4(c), confirm or reject such amendment.

 Any such amendment shall be effective from the date of the resolution of the Board of Directors
adopting such amendment, until it is confirmed or rejected or until it ceases to be effective (as described in the next sentence) and, where such amendment is confirmed, it continues in effect in the form so confirmed. If such amendment is rejected
by the shareholders or the holders of Rights or is not submitted to the shareholders or holders of Rights as required, then such amendment shall cease to be effective from and after the termination of the meeting (or any adjournment of such meeting)
at which it was rejected or to which it should have been but was not submitted or from and after the date of the meeting of holders of Rights that should have been but was not held, and no subsequent resolution of the Board of Directors to amend
this Agreement to substantially the same effect shall be effective until confirmed by the shareholders or holders of Rights as the case may be. 
  

	 	(e)	 Notwithstanding anything in this Section 5.4 to the contrary, no such supplement or amendment shall be
made to the provisions of Article 4 except with the written concurrence of the Rights Agent to such supplement or amendment. 

  

	5.5	 Fractional Rights and Fractional Shares 

 

	 	(a)	 The Corporation shall not be required to issue fractions of Rights or to distribute Rights Certificates
which evidence fractional Rights. After the Separation Time, in lieu of issuing fractional Rights, the Corporation shall pay to the holders of record of the Rights Certificates (provided the Rights represented by such Rights Certificates are not
void pursuant to the provisions of Subsection 3.1(b), at the time such fractional Rights would otherwise be issuable), an amount in cash equal to the fraction of the Market Price of one whole Right that the fraction of a Right that would otherwise
be issuable is of one whole Right. 

  

	 	(b)	 The Corporation shall not be required to issue fractions of Common Shares upon exercise of Rights or to
distribute certificates which evidence fractional Common Shares. In lieu of issuing fractional Common Shares, the Corporation shall pay to the registered holders of Rights Certificates, at the time such Rights are exercised as herein provided, an
amount in cash equal to the fraction of the Market Price of one Common Share that the fraction of a Common Share that would otherwise be issuable upon the exercise of such Right is of one whole Common Share at the date of such exercise.

  

	5.6	 Rights of Action 

Subject to the terms of this Agreement, all rights of action in respect of this Agreement, other than rights of action vested solely in the
Rights Agent, are vested in the respective holders of the Rights. Any holder of Rights, without the consent of the Rights Agent or of the holder of any other Rights, may, on such holder’s own behalf and for such holder’s own benefit and
the benefit of other holders of Rights enforce, and may institute and maintain any suit, action or proceeding against the Corporation to enforce such holder’s right to exercise such holder’s Rights, or Rights to which such holder is
entitled, in the manner provided in such holder’s Rights Certificate and in this Agreement. 

  
 - 31 - 

 

 Without limiting the foregoing or any remedies available to the holders of Rights, it is
specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened
violations of the obligations of any Person subject to, this Agreement. 
  

	5.7	 Regulatory Approvals 

Any obligation of the Corporation or action or event contemplated by this Agreement shall be subject to the receipt of any requisite approval
or consent from any governmental or regulatory authority, including without limiting the generality of the foregoing, any necessary approvals of The Toronto Stock Exchange, or any other applicable stock exchange or market. 

 

	5.8	 Notice of Proposed Actions 

In case the Corporation shall propose after the Separation Time and prior to the Expiration Time to effect or permit (in cases where the
Corporation’s permission is required) any Flip-in Event or to effect the liquidation, dissolution or winding up of the Corporation or the sale of all or substantially all of the Corporation’s assets,
then, in each such case, the Corporation shall give to each holder of a Right, in accordance with Section 5.9 hereof, a notice of such proposed action, which shall specify the date on which such Flip-in
Event, liquidation, dissolution, or winding up is to take place, and such notice shall be so given at least 20 Business Days prior to the date of taking of such proposed action by the Corporation. 

 

	5.9	 Notices 

 

	 	(a)	 Notices or demands authorized or required by this Agreement to be given or made by the Rights Agent or by
the holder of any Rights to or on the Corporation shall be sufficiently given or made if delivered, sent by registered or certified mail, postage prepaid (until another address is filed in writing with the Rights Agent), or sent by facsimile or
other form of recorded electronic communication, charges prepaid and confirmed in writing, as follows: 

  

					
	 DIRTT Environmental Solutions Ltd.
	  	
	 7303, 30 Street S.E.
	  	
	 Calgary, Alberta T2C 1N6
	  	
			
	 Attention:
	  	 President
	  	
	 Fax No.:
	  		  	
	 Email:
	  		  	

  

	 	(b)	 Notices or demands authorized or required by this Agreement to be given or made by the Corporation or by the
holder of any Rights to or on the Rights Agent shall be sufficiently given or made if delivered, sent by registered or certified mail, postage prepaid (until another address is filed in writing with the Corporation), or sent by facsimile or other
form of recorded electronic communication, charges prepaid and confirmed in writing, as follows: 

  

			
	 Computershare Trust Company of Canada

	 310, 606 - 4 Street S.W.

	 Calgary, Alberta T2P 1T1

		
	 Attention:
	  	 General Manager

Client Services

	 Fax No.:
	  	
	 Email:
	  	

  

	 	(c)	 Notices or demands authorized or required by this Agreement to be given or made by the Corporation or the
Rights Agent to or on the holder of any Rights shall be sufficiently given or made if delivered or sent by first class mail, postage prepaid, addressed to such holder at the address of such holder as it appears upon the register of the Rights Agent
or, prior to the Separation Time, on 

  
 - 32 - 

 

	 	 the register of the Corporation for its Common Shares. Any notice which is mailed or sent in the manner herein
provided shall be deemed given, whether or not the holder receives the notice. 

  

	 	(d)	 Any notice given or made in accordance with this Section 5.9 shall be deemed to have been given and to
have been received on the day of delivery, if so delivered, on the third Business Day (excluding each day during which there exists any general interruption of postal service due to strike, lockout or other cause) following the mailing thereof, if
so mailed, and on the day of telegraphing, telecopying or sending of the same by other means of recorded electronic communication (provided such sending is during the normal business hours of the addressee on a Business Day and if not, on the first
Business Day thereafter). Each of the Corporation and the Rights Agent may from time to time change its address for notice by notice to the other given in the manner aforesaid. 

 

	5.10	 Rights of Board and Corporation 

Without limiting the generality of the foregoing, nothing contained herein shall be construed to suggest or imply that the Board of Directors
shall not be entitled to recommend that holders of Voting Shares reject or accept any Take-over Bid or take any other action (including, without limitation, the commencement, prosecution, defence or settlement of any litigation and the submission of
additional or alternative Take-over Bids or other proposals to the holders of Voting Shares) with respect to any Take-over Bid or otherwise that the Board of Directors believes is necessary or appropriate in the exercise of its fiduciary duties.

  

	5.11	 Costs of Enforcement 

The Corporation agrees that if the Corporation fails to fulfil any of its obligations pursuant to this Agreement, then the Corporation will
reimburse the holder of any Rights for the costs and expenses (including legal fees) incurred by such holder, on a solicitor and his own client basis, to enforce his rights pursuant to any Rights or this Agreement. 

 

	5.12	 Successors 

All the covenants and provisions of this Agreement by or for the benefit of the Corporation or the Rights Agent shall bind and enure to the
benefit of their respective successors and assigns hereunder. 
  

	5.13	 Benefits of this Agreement 

Nothing in this Agreement shall be construed to give to any Person other than the Corporation, the Rights Agent and the holders of the Rights
any legal or equitable right, remedy or claim under this Agreement; further, this Agreement shall be for the sole and exclusive benefit of the Corporation, the Rights Agent and the holders of the Rights. 

 

	5.14	 Governing Law 

This Agreement and each Right issued hereunder shall be deemed to be a contract made under the laws of the Province of Alberta and for all
purposes shall be governed by and construed in accordance with the laws of such Province applicable to contracts to be made and performed entirely within such Province. 
  

	5.15	 Language 

Les parties aux présentes ont exigé que la présente convention ainsi que tous les documents et avis qui s’y
rattachent ou qui en coulent soient redigés en langue anglaise. The parties hereto have required that this Agreement and all documents and notices related thereto or resulting therefrom be drawn up in English. 

 

	5.16	 Severability 

If any term or provision hereof or the application thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or
unenforceable, such term or provision shall be ineffective only as to such jurisdiction and to the extent of such invalidity or unenforceability in such jurisdiction without invalidating or rendering unenforceable or ineffective the remaining terms
and provisions hereof in such jurisdiction or the application of such term or provision in any other jurisdiction or to circumstances other than those as to which it is specifically held invalid or unenforceable. 

  
 - 33 - 

 

	5.17	 Effective Date 

This Agreement is effective and in full force and effect in accordance with its terms and conditions from and after the Effective Date. 

 

	5.18	 Reconfirmation 

This Agreement must be reconfirmed by a resolution passed by a majority of the votes cast by Independent Shareholders who vote in respect of
such reconfirmation at every third annual meeting of the Corporation. If this Agreement is not so reconfirmed or is not presented for reconfirmation at such annual meeting, then this Agreement and all outstanding Rights shall terminate and be void
and of no further force and effect on and from the date of termination of the applicable annual meeting; provided that termination shall not occur if a Flip-in Event has occurred (other than a Flip-in Event which has been waived) prior to the date upon which this Agreement would otherwise terminate pursuant to this Section 5.18. 

 

	5.19	 Determinations and Actions by the Board of Directors 

All actions, calculations and determinations (including all omissions with respect to the foregoing) which are done or made or approved by the
Board of Directors in connection herewith, in good faith, shall not subject the Board of Directors or any director of the Corporation to any liability to the holders of the Rights. 

 

	5.20	 Declaration as to Non-Canadian Holders

 If in the opinion of the Board of Directors (who may rely upon the advice of counsel) any action or event
contemplated by this Agreement would require compliance by the Corporation with the securities laws or comparable legislation of a jurisdiction outside Canada or the United States, the Board of Directors acting in good faith shall take such actions
as it may deem appropriate to ensure such compliance. In no event shall the Corporation or the Rights Agent be required to issue or deliver Rights or securities issuable on exercise of Rights to persons who are citizens, residents or nationals of
any jurisdiction other than Canada or the United States, in which such issue or delivery would be unlawful without registration of the relevant Persons or securities for such purposes. 

 

	5.21	 Time of the Essence 

Time shall be of the essence in this Agreement. 
  

	5.22	 Execution in Counterparts 

This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute one and the same instrument. 
 [Signature page follows] 

  
 - 34 - 

 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date first above written. 
  

			
	 DIRTT ENVIRONMENTAL SOLUTIONS LTD.

		
	 By:
	 	 /s/ Scott Jenkins

		 	 Name: Scott Jenkins

		 	 Title: President

	
	COMPUTERSHARE TRUST COMPANY OF CANADA
		
	 By:
	 	 /s/ Jacqueline Fisher

		 	 Name: Jacqueline Fisher

		 	 Title: Relationship Manager

		
	 By:
	 	 /s/ Simon Law

		 	 Name: Simon Law

		 	 Title: Relationship Manager

 ATTACHMENT 1 

DIRTT ENVIRONMENTAL SOLUTIONS LTD. 

SHAREHOLDER RIGHTS PLAN AGREEMENT 

[Form of Rights Certificate] 
  

			
	 Certificate No.     
	  	      Rights

 THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE CORPORATION, AND AMENDMENT OR TERMINATION ON THE
TERMS SET FORTH IN THE SHAREHOLDER RIGHTS PLAN AGREEMENT. UNDER CERTAIN CIRCUMSTANCES (SPECIFIED IN SUBSECTION 3.1(b) OF THE SHAREHOLDER RIGHTS PLAN AGREEMENT), RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR CERTAIN RELATED PARTIES, OR
TRANSFEREES OF AN ACQUIRING PERSON OR CERTAIN RELATED PARTIES, MAY BECOME VOID. 
 Rights Certificate 

This certifies that
                            , or registered assigns, is the registered holder of the number of Rights
set forth above, each of which entitles the registered holder thereof, subject to the terms, provisions and conditions of the Amended and Restated Shareholder Rights Plan Agreement, dated as of April 20, 2017 (amending and restating the
Shareholder Rights Plan Agreement dated as of April 3, 2014 and amended and restated as of March 21, 2017), as the same may be amended or supplemented from time to time (the “Shareholder Rights Agreement”), between DIRTT
Environmental Solutions Ltd., a corporation amalgamated under the laws of the Province of Alberta (the “Corporation”) and Computershare Trust Company of Canada, a trust company incorporated under the laws of Canada (the “Rights
Agent”) (which term shall include any successor Rights Agent under the Shareholder Rights Agreement), to purchase from the Corporation at any time after the Separation Time (as such term is defined in the Shareholder Rights Agreement) and prior
to the Expiration Time (as such term is defined in the Shareholder Rights Agreement), one fully paid common share of the Corporation (a “Common Share”) at the Exercise Price referred to below, upon presentation and surrender of this Rights
Certificate with the Form of Election to Exercise (in the form provided hereinafter) duly executed and submitted to the Rights Agent, together with payment of the Exercise Price by certified cheque, bank draft or money order payable to the
Corporation, at the Rights Agent’s principal office in any of the cities of Calgary and Toronto. Until adjustment thereof in certain events as provided in the Shareholder Rights Agreement, the Exercise Price shall be: 

 

	 	(a)	 until the Separation Time, an amount equal to three times the Market Price (as such term is defined in the
Shareholder Rights Agreement), from time to time, per Common Share; and 

  

	 	(b)	 from and after the Separation Time, an amount equal to three times the Market Price, as at the Separation
Time, per Common Share. 

 In certain circumstances described in the Shareholder Rights Agreement, each Right evidenced
hereby may entitle the registered holder thereof to purchase or receive assets, debt securities or shares in the capital of the Corporation other than Common Shares, or more or less than one Common Share, all as provided in the Shareholder Rights
Agreement. 
 This Rights Certificate is subject to all of the terms and provisions of the Shareholder Rights Agreement, which terms and
provisions are incorporated herein by reference and made a part hereof and to which Shareholder Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities thereunder of
the Rights Agent, the Corporation and the holders of the Rights Certificates. Copies of the Shareholder Rights Agreement are on file at the registered office of the Corporation and are available upon request. 

This Rights Certificate, with or without other Rights Certificates, upon surrender at any of the offices of the Rights Agent designated for
such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing an aggregate number of Rights equal to the aggregate number of Rights evidenced by the Rights Certificate or Rights Certificates
surrendered. If this Rights Certificate shall be exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Rights Certificate or Rights Certificates for the number of whole Rights not exercised. 

  
 - 2 - 

 

 Subject to the provisions of the Shareholder Rights Agreement, the Rights evidenced by this
Rights Certificate may be, and under certain circumstances are required to be, redeemed by the Corporation at a redemption price of $0.00001 per Right. 

No fractional Common Shares will be issued upon the exercise of any Right or Rights evidenced hereby, but in lieu thereof a cash payment will
be made, as provided in the Shareholder Rights Agreement. 
 No holder of this Rights Certificate, as such, shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of Common Shares or of any other securities which may at any time be issuable upon the exercise hereof, nor shall anything contained in the Shareholder Rights Agreement or herein be construed
to confer upon the holder hereof, as such, any of the Rights of a shareholder of the Corporation or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent
to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in the Shareholder Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by
this Rights Certificate shall have been exercised as provided in the Shareholder Rights Agreement. 
 This Rights Certificate shall not be
valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
 WITNESS the facsimile signature of the
proper officer of the Corporation. 
  

	
	
Date:                  
                                         
              

	
	 DIRTT ENVIRONMENTAL SOLUTIONS LTD.

	
	
By:                  
                                         
                     

	
	 Countersigned:

	
	 COMPUTERSHARE TRUST COMPANY OF CANADA

	
	
By:                  
                                         
                     

	        Authorized Signature

	
	
By:                  
                                         
                     

	        Authorized Signature

 FORM OF ASSIGNMENT 

(To be executed by the registered holder if such holder desires to transfer the Rights Certificate.) 

FOR VALUE RECEIVED
                                         
                                    hereby sells, assigns and transfers
unto                                        
                      
  

 
  

 
 (Please print name and address of
transferee.) 
 the Rights represented by this Rights Certificate, together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint
                                         
                                   , as attorney, to transfer the
within Rights on the books of the Corporation, with full power of substitution. 
  

					
	
Dated:                  
                                         
                                         
         
	 		 	                                     
                                         
                                       
		 		 	 Signature

			
		 		 	                                     
                                         
                                      
		 		 	 (Please print name of Signatory)

 Signature Guaranteed:     (Signature must correspond to name as written upon the face of
this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever.) 
 Signature must be guaranteed by
a Canadian chartered bank or trust company, a member firm of a recognized stock exchange in Canada, a registered national securities exchange in the United States, a member of the Investment Dealers Association of Canada or National Association of
Securities Dealers, Inc. or a commercial bank or trust company having an office or correspondent in Canada or the United States or a member of the Securities Transfer Association Medallion (Stamp) Program. 

. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. . . . . . . . . . . 
 CERTIFICATE 

(To be completed if true.) 
 The
undersigned party transferring Rights hereunder, hereby represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are not, and, to the knowledge of the undersigned, have never been,
Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or a Person acting jointly or in concert with any of the foregoing. Capitalized terms shall have the meaning ascribed thereto in the Shareholder Rights Agreement. 

 

					
		 		 	                                     
                                         
                                       
		 		 	Signature
			
		 		 	                                     
                                         
                                        

		 		 	 (Please print name of Signatory)

 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
 (To be
attached to each Rights Certificate.) 

 FORM OF ELECTION TO EXERCISE 

(To be executed by the registered holder if such holder desires to exercise the Rights Certificate.) 

TO:
                                         
                                         
   
 The undersigned hereby irrevocably elects to exercise
                                         
                    whole Rights represented by the attached Rights Certificate to purchase the Common Shares or other securities, if applicable,
issuable upon the exercise of such Rights and requests that certificates for such securities be issued in the name of: 
  

 
 (Name) 

 
  

(Address) 
  

 
 (City and Province) 

 
  

Social Insurance Number or other taxpayer identification number. 
  

					
	
Dated:                  
                                         
                                         
       
	 		 	                                     
                                         
                                        

		 		 	 Signature

			
		 		 	                                     
                                         
                                       
		 		 	 (Please print name of Signatory)

 If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights
Certificate for the balance of such Rights shall be registered in the name of and delivered to: 
  

 
 (Name) 

 
  

(Address) 
  

 
 (City and Province) 

 
  

Social Insurance Number or other taxpayer identification number. 
  

					
	
Dated:                  
                                         
                                         
       
	 		 	                                     
                                         
                                        

		 		 	 Signature

			
		 		 	                                     
                                         
                                       
		 		 	 (Please print name of Signatory)

 Signature Guaranteed:     (Signature must correspond to name as written upon the face of
this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever.) 
 Signature must be guaranteed by
a Canadian chartered bank or trust company, a member firm of a recognized stock exchange in Canada, a registered national securities exchange in the United States, a member of the Investment Dealers Association of Canada or National Association of
Securities Dealers, Inc. or a commercial bank or trust company having an office or correspondent in Canada or the United States or a member of the Securities Transfer Association Medallion (Stamp) Program. 

. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. . . . . . . . . . . 

 CERTIFICATE 

(To be completed if true.) 
 The
undersigned party exercising Rights hereunder, hereby represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are not, and, to the knowledge of the undersigned, have never been,
Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or a Person acting jointly or in concert with any of the foregoing. Capitalized terms shall have the meaning ascribed thereto in the Shareholder Rights Agreement. 

 

					
		 		 	                                     
                                         
                                   
		 		 	Signature
			
		 		 	                                     
                                         
                                   
		 		 	 (Please print name of Signatory)

 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
 (To
be attached to each Rights Certificate.) 

 NOTICE 

In the event the certification set forth above in the Forms of Assignment and Election to Exercise is not completed, the Corporation will deem
the Beneficial Owner of the Rights evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Shareholder Rights Agreement). No Rights Certificates shall be issued in exchange for a Rights
Certificate owned or deemed to have been owned by an Acquiring Person or an Affiliate or Associate thereof, or by a Person acting jointly or in concert with an Acquiring Person or an Affiliate or Associate thereof.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}]]