Document:

DEJOUR ENTERPRISES LTD.

 

2009 STOCK OPTION PLAN

 

ARTICLE ONE

 

DEFINITIONS AND INTERPRETATIONS

 

Section 1.01      Definitions:
For purposes of the Plan, unless such word or term is otherwise defined herein or the context in which such word or term is used
herein otherwise requires, the following words and terms with the initial letter or letters thereof capitalized shall have the
following meanings:

 

		(a)	"Black-Out Period" means a period
of time during which, pursuant to the policies of the Corporation, trading in Common Shares or Options is prohibited or restricted
(except where such prohibition or restriction is the result of a cease trade order, or equivalent, imposed by a securities commission
or other applicable regulatory authority);

 

		(b)	"Change of Control" means
the acquisition by any person or by any person and all Joint Actors, whether directly or indirectly, of voting securities (as defined
in the Securities Act) of the Corporation, which, when added to all other voting securities of the Corporation at the time held
by such person or by such person and a Joint Actor, totals for the first time not less than fifty percent (50%) of the outstanding
voting securities of the Corporation or the votes attached to those securities are sufficient, if exercised, to elect a majority
of the Board of Directors of the Corporation;

 

		(c)	"Committee" shall mean the Directors or, if the Directors so determine in accordance
with section 2.03 of the Plan, the committee of the Directors authorized to administer the Plan;

 

		(d)	"Common Shares" shall mean the common shares of the Corporation, as adjusted in
accordance with the provisions of Article Six of the Plan;

 

		(e)	"Corporation" shall mean Dejour Enterprises Ltd., a corporation existing pursuant
to the provisions of the Business Corporations Act (British Columbia);

 

		(f)	"Directors" shall mean the directors of the Corporation from time to time;

 

		(g)	"Eligible Insiders" shall mean the Insiders of the Corporation or of any subsidiary
of the Corporation from time to time who, by the nature of their positions are, in the opinion of the Committee, in a position
to contribute to the success of the Corporation;

 

		(h)	"Eligible Employees" shall mean employees, including officers, whether Directors
or not, and including both full-time and part-time employees, of the Corporation or any subsidiary of the Corporation who, by the
nature of their positions or jobs are, in the opinion of the Committee, in a position to contribute to the success of the Corporation;

 

		(i)	“Expiry Date” means the later of the date set by
the Committee under Section 3.02 as the last date on which an Option may be exercised and, if such date falls during or
within five (5) trading days after the end of a Black-Out Period, the date that is ten (10) trading days following the date on
which such Black-Out Period ends (the "Extension Period"); provided that if an additional Black-Out Period is
subsequently imposed during the Extension Period, then such Extension Period shall be deemed to commence following the end of such
additional Black-Out Period to enable the exercise of such Option within ten (10) trading days following the end of the last imposed
Black-Out Period;

 

    	 

    	 

    
 

		(j)	“Insider” means an insider as defined in the Securities Act;

 

		(k)	"Joint Actor" means a person acting “jointly
or in concert with” another person as that phrase is interpreted in Multilateral Instrument 62-104 Take-Over Bids and
Issuer Bids;

 

		(l)	"Market Price" means the
last closing price per Share on the trading day immediately preceding the day the options are granted (“Grant Date”),
or if the Shares are not listed on any stock exchange, “Market Price” of Shares means the price per Share on the over-the-counter
market determined by dividing the aggregate sale price of the Shares sold by the total number of such Shares so sold on the applicable
market for the last day prior to the Grant Date.

 

		(m)	"Option" shall mean an option to purchase Common Shares granted pursuant to, or
governed by, the Plan;

 

		(n)	"Option Agreement" means an agreement, substantially in the form attached hereto
as Schedule “A”, with such additions there to or modifications thereof as may be approved by the Corporation prior
to or at the time an Option is granted, whereby the Corporation grants to an Optionee an Option;

 

		(o)	"Optionee" means a Participant to whom an Option has been granted pursuant to
the Plan;

 

		(p)	"Option Period" for a particular Option shall mean the period of time commencing
on the date of grant of such Option and ending at the Expiry Time (as defined in Section 4.04);

 

		(q)	"Option Shares" means the aggregate number of Common Shares which an Optionee
may purchase under an Option;

 

		(r)	"Participant" means a person eligible to be issued Options under the Plan by virtue
of being either an Eligible Insider, Eligible Employee or Service Provider;

 

		(s)	"Plan" shall mean this stock option plan;

 

		(t)	"Securities Act" means
the Securities Act (British Columbia), as may be amended from time to time;

 

		(u)	"Service Provider" shall mean any person or corporation, other than an Eligible
Employee or Eligible Insider, engaged to provide services for the Corporation or for any entity controlled by the Corporation for
an initial, renewable or extended period of twelve months or more (or such lesser period of time as may be approved by the Committee
and acceptable to TSX on a case by case basis), and shall also include any individuals employed by such person or corporation;

 

		(v)	"TSX" shall mean The Toronto Stock Exchange;

 

		(w)	"Unissued Option Shares" means the number of Common Shares, at a particular time,
which have been reserved for issuance upon the exercise of an Option but which have not been issued, as adjusted from time to time
in accordance with the provisions of Article 6, such adjustments to be cumulative; and

 

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		(x)	"Vested" means that an Option has become
exercisable in respect of Options held by an Optionee.

 

Section 1.02      Securities
Definitions: In the Plan, the terms "associate", "subsidiary" and "insider" shall have the meanings
given to such terms in the Securities Act.

 

Section 1.03      Headings:
The headings of all articles, sections, and paragraphs in the Plan are inserted for convenience of reference only and shall not
affect the construction or interpretation of the Plan.

 

Section 1.04      Context,
Construction: Whenever the singular or masculine are used in the Plan, the same shall be construed as being the plural or feminine
or neuter or vice versa where the context so requires.

 

Section 1.05      References
to the Plan: The words "herein", "hereby", "hereunder", "hereof" and similar expressions
mean or refer to the Plan as a whole and not to any particular article, section, paragraph or other part hereof.

 

Section 1.06      Canadian
Funds: Unless otherwise specifically provided, all references to dollar amounts in the Plan are references to lawful money
of Canada.

 

ARTICLE TWO

 

PURPOSE AND ADMINISTRATION OF THE PLAN

 

Section 2.01      Purpose
of the Plan: The Plan provides for the grant of Options to Participants for the purpose of advancing the interests of the Corporation
through the motivation, attraction and retention of key employees and directors of the Corporation and subsidiaries of the Corporation
and to secure for the Corporation and the shareholders of the Corporation the benefits inherent in the ownership of Common Shares
by key employees and directors of the Corporation and subsidiaries of the Corporation, it being generally recognized that stock
option plans aid in attracting, retaining and encouraging employees and directors due to the opportunity offered to them to acquire
a proprietary interest in the Corporation.

 

Section 2.02      Administration
of the Plan: The Plan shall be administered by the Committee and the Committee shall have full authority to administer the
Plan including the authority to interpret and construe any provision of the Plan and to adopt, amend and rescind such rules and
regulations for administering the Plan as the Committee may deem necessary in order to comply with the requirements of the Plan.
All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and conclusive
and shall be binding on the Participants and the Corporation. No member of the Committee shall be personally liable for any action
taken or determination or interpretation made in good faith in connection with the Plan and all members of the Committee shall,
in addition to their rights as Directors, be fully protected, indemnified and held harmless by the Corporation with respect to
any such action taken or determination or interpretation made. The appropriate officers of the Corporation are hereby authorized
and empowered to do all things and execute and deliver all instruments, undertakings and applications and writings as they, in
their absolute discretion, consider necessary for the implementation of the Plan and of the rules and regulations established for
administering the Plan. All costs incurred in connection with the Plan shall be for the account of the Corporation.

 

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Section 2.03      Delegation
to Committee: All of the powers exercisable hereunder by the Directors may, to the extent permitted by applicable law and as
determined by resolution of the Directors, be exercised by a committee of the Directors comprised of not less than three Directors.

 

Section 2.04      Record
Keeping: The Corporation shall maintain a register in which shall be recorded:

 

		(a)	the name and address of each Optionee;

 

		(b)	the number of Common Shares subject to Options granted to each Optionee; and

 

		(c)	the aggregate number of Common Shares subject to Options.

 

Section 2.05      Previously
Granted Options: As set forth in Section 8.01, the Plan is to be implemented and effective upon TSX approval of the Plan and
the approval of the Plan by the shareholders of the Corporation (with the later of the date of TSX approval and the date of shareholder
approval to be hereinafter referred to as the “Effective Date”). In the event that on the Effective Date there
are outstanding stock options (the “Pre-Existing Options”) that were previously granted by the Corporation pursuant
to any stock option plan (a “Pre-Existing Plan”) in place prior to the Effective Date, all such Pre-Existing
Options shall, effective as of the Effective Date, be governed by and subject to the terms of the Plan. Notwithstanding anything
herein, a person holding Pre-Existing Options shall be deemed to satisfy the criteria necessary to be a Participant under the Plan
in respect of its eligibility under the Plan to have been granted and hold the Pre-Existing Options.

 

In addition, on the Effective Date the Company’s
U.S. Stock Incentive Plan that serves as a sub-plan to the current Pre-Existing Plan shall thereafter be a sub-plan to the Plan.

 

ARTICLE THREE

 

ELIGIBILITY AND PARTICIPATION

IN THE PLAN AND GRANT OF OPTIONS

 

Section 3.01      Eligibility:
Options shall only be granted to Participants.

 

Section 3.02      Determination
of Option Recipients and Option Terms: The Committee shall from time to time determine the Participants to whom Options shall
be granted, the number of Common Shares to be made subject to and the Expiry Date of each Option granted to each Participant and
the other terms of each Option granted to each Participant including any vesting provisions that may be applicable, all such determinations
to be made in accordance with the terms and conditions of the Plan, and the Committee may take into consideration the present and
potential contributions of and the services rendered by the particular Participant to the success of the Corporation and any other
factors which the Committee deems appropriate and relevant. Each Option granted to a Participant shall be evidenced by an Option
Agreement containing terms and conditions consistent with the provisions of the Plan, which terms and conditions need not be the
same in each case. No Participant who is a Director shall vote on any motion considered by the Directors granting any Option to
such Director.

 

ARTICLE FOUR

 

NUMBER OF COMMON SHARES SUBJECT TO THE

PLAN, EXERCISE PRICE AND TERM OF OPTIONS

 

Section 4.01      Number
of Shares: At the time of grant of any Option, the aggregate number of Common Shares reserved for issuance under the Plan which
may be made subject to Options at any time and from time to time (including those issuable upon the exercise of Pre-Existing Options)
together with those Common Shares reserved for issuance at such time under any other established or proposed share compensation
arrangement of the Corporation shall not exceed 10% of the total number of issued and outstanding Common
Shares, on a non-diluted basis, as constituted on the date of grant of such Option. Any Common Shares subject to an Option
which has been granted under the Plan and which has been subsequently cancelled or terminated in accordance with the terms of the
Plan, without having been exercised, will again be available for issuance pursuant to the exercise of Options granted under the
Plan.

 

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Section 4.02      Limits
on Grants to Insiders: With respect to Options granted to Insiders:

 

		(a)	the number of Common Shares issuable to Insiders at any time under all
security based compensation arrangements shall not exceed 10% of the total number of issued and outstanding Common Shares on a
non-diluted basis at such time; and

 

		(b)	the number of Common Shares issued to Insiders as a group within a one year period under all security
based compensation arrangements shall not exceed 10% of the total number of issued and outstanding Shares as at the end of such
one year period.

 

Section 4.03      Exercise
Price: The price per share at which any Common Share which is the subject of an Option may be purchased (the “Exercise
Price”) shall be determined by the Committee at the time the Option is granted, provided that such price shall be not
less than the Market Price of the Common Shares on the TSX on the date of grant or, if the Common Shares are not then listed on
the TSX, on the most senior of any other exchange on which the Common Shares are then traded, on the last trading day immediately
preceding the date of grant of such Option.

 

Section 4.04      Term
of Options: The Option Period for each Option shall be such period of time as shall be determined by the Committee, provided
that no Option Period shall exceed 10 years except in the event that an Extension Period (as defined in Section 1.01(i)) is applicable.
An Option Period shall expire at 4:00PM (Vancouver time) on the Expiry Date (the “Expiry Time”). The Committee
may determine the number or percentage of Common Shares which may be purchased by an Optionee pursuant to the exercise of Options
during any particular time period within the Option Period.

 

Section 4.05      Vesting:
The Committee may, at its discretion, determine and impose terms upon which each Option shall become Vested. In the event that
the Committee imposes a vesting schedule in respect of any Options granted to an Optionee, at any point in time the Optionee will
only be entitled to exercise those Options which are Vested at such point in time. Notwithstanding the foregoing, in the event
that a Pre-Existing Plan imposed vesting requirements on a Pre-Existing Option, such vesting requirements must be satisfied before
any such Pre-Existing Options shall become Vested.

 

ARTICLE FIVE

 

EXERCISE OF OPTION, EFFECT OF DEATH AND

TERMINATION OF EMPLOYMENT AND WITHHOLDING TAXES

 

Section 5.01      Exercise
of Option: Subject to: (i) any restriction (including vesting requirements) on the number or percentage of Common Shares which
may be purchased by the Optionee during any particular time period within the Option Period as determined by the Committee; (ii)
any restriction on the exercise of Options pursuant to the requirements of TSX or any regulatory authority having jurisdiction;
and (iii) termination of the Option in accordance with the terms of the Plan, an Option may be exercised by the Optionee in whole
at any time, or in part from time to time, during the Option Period. An Option shall be exercisable by delivering to the Corporation
written notice specifying the number of Common Shares in respect of which the Option is exercised together with payment in full
of the Exercise Price for each Option exercised.

 

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The Company shall have discretion to determine
the time or times at which an Option may be exercised in whole or in part and the method or methods by which, and the form or forms
(including, without limitation, cash, cheques that are not certified, foreign currency, Shares, other securities, other Awards
or other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the applicable exercise
price) in which, payment of the exercise price with respect thereto may be made or deemed to have been made.

 

If the Optionee’s cheque is not honoured
by the financial institution, the Company has the right to collect the payment from the Optionee and has the right to cancel the
Shares issued upon exercise. The Company may charge an administration fee up to $50.00 for any dishonoured cheque.

 

Upon receipt of
such notice and payment by the Corporation, there will be a binding contract for the issue of the Common Shares in respect of which
the Option is exercised, upon and subject to the provisions of the Plan. Upon an Optionee exercising an Option and paying
the Corporation the aggregate purchase price for the Common Shares in respect of which the Option has been exercised, the Corporation
shall as soon as practicable issue and deliver a certificate representing the Common Shares so purchased.

 

Section 5.02      Effect
of Death: If a Participant shall die while an Optionee, any Option held by such Optionee at the date of death shall be exercisable
in whole or in part only by the person or persons to whom the rights of the Optionee under the Option shall pass by the will of
the Optionee or the laws of descent and distribution for a period of one year after the date of death of the Optionee or prior
to the Expiry Time in respect of the Option, whichever is sooner, and then only to the extent that such Optionee was entitled to
exercise the Option at the date of death of such Optionee.

 

Section 5.03      Effect
of Ceasing to be a Participant – For Cause: If an Optionee shall cease to meet the criteria necessary to be a Participant
as a result of termination for cause, as that term is interpreted by the courts of the jurisdiction in which the Optionee is employed
or engaged, any outstanding Options held by such Optionee on the date of such termination, whether Vested or not, shall be cancelled
as of that date.

 

Section 5.04      Effect
of Ceasing to be a Participant – For Reasons Other than For Cause: If an Optionee shall cease to meet the criteria necessary
to be a Participant for reasons other than termination for cause or by virtue of death, any Option held by such Optionee at such
time shall remain exercisable in full at any time, and in part from time to time, for a period ending on the earlier of the Expiry
Time and six (6) months after the date on which the Optionee ceases to be a Participant, and then only to the extent that such
Optionee was entitled to exercise the Option at such time. Notwithstanding the foregoing provisions of this Section 5.04, the Committee
may, on a case by case basis, allow Options held by an Optionee that ceases to meet the criteria necessary to be a Participant
for reasons other than termination for cause or by virtue of death, to remain exercisable in full at any time, and in part from
time to time, until the Expiry Time (subject to any remaining vesting requirements) where such Expiry Time is more than six (6)
months after the date on which the Optionee ceases to be a Participant.

 

Section 5.05      Withholding
Taxes: The Corporation or any subsidiary of the Corporation may take such steps as are considered necessary or appropriate
for the withholding of any taxes which the Corporation or any subsidiary of the Corporation is required by any law or regulation
of any governmental authority whatsoever to withhold in connection with any Option including, without limiting the generality of
the foregoing, the withholding of all or any portion of any payment or the withholding of the issue of Common Shares to be issued
upon the exercise of any Option until such time as the Optionee has paid the Corporation or any subsidiary of the Corporation for
any amount which the Corporation or subsidiary of the Corporation is required to withhold with respect to such taxes.

 

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ARTICLE SIX

 

CAPITAL CHANGES

 

Section 6.01      Share
Reorganization: Whenever the Corporation issues Common Shares to all or substantially all holders of Common Shares by way of
a stock dividend or other distribution, or subdivides all outstanding Common Shares into a greater number of Common Shares, or
combines or consolidates all outstanding Common Shares into a lesser number of Common Shares (each of such events being herein
called a "Share Reorganization") then effective immediately after the record date for such dividend or other distribution
or the effective date of such subdivision, combination or consolidation:

 

		(a)	for each Option the Exercise Price will be adjusted to a price per Common Share which is the product
of:

 

		(i)	the Exercise Price in effect immediately before that effective date or record date; and

 

		(ii)	a fraction, the numerator of which is the total number of Common Shares outstanding on that effective
date or record date before giving effect to the Share Reorganization, and the denominator of which is the total number of Common
Shares that are or would be outstanding immediately after such effective date or record date after giving effect to the Share Reorganization;
and

 

		(b)	the number of Unissued Option Shares will be adjusted by multiplying (i) the number of Unissued
Option Shares immediately before such effective date or record date by (ii) a fraction which is the reciprocal of the fraction
described in subsection (a)(ii).

 

6.02      Special
Distribution: Subject to the prior approval of the TSX, whenever the Corporation issues by way of a dividend or otherwise distributes
to all or substantially all holders of Common Shares;

 

		(a)	shares of the Corporation, other than the Common Shares;

 

		(b)	evidences of indebtedness;

 

		(c)	any cash or other assets, excluding cash dividends (other than cash dividends which the Directors
have determined to be outside the normal course); or

 

		(d)	rights, options or warrants;

 

then to the extent that such dividend or distribution
does not constitute a Share Reorganization (any of such non-excluded events being herein called a "Special Distribution"),
and effective immediately after the record date at which holders of Common Shares are determined for purposes of the Special Distribution,
for each Option the Exercise Price will be reduced, and the number of Unissued Option Shares will be correspondingly increased,
by such amount, if any, as is determined by the Directors in their sole and unfettered discretion to be appropriate in order to
properly reflect any diminution in value of the Option Shares as a result of such Special Distribution.

 

6.03      Corporate
Reorganization: Whenever there is:

 

		(a)	a reclassification of outstanding Common Shares, a change of Common Shares into other shares or
securities, or any other capital reorganization of the Corporation, other than as described in Sections 6.01 or 6.02;

 

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		(b)	a consolidation, merger or amalgamation of the Corporation with or into another corporation resulting
in a reclassification of outstanding Common Shares into other shares or securities or a change of Common Shares into other shares
or securities;

 

		(c)	an arrangement or other transaction under which, among other things, the business or assets of
the Corporation become, collectively, the business and assets of two or more companies with the same shareholder group upon the
distribution to the Corporation's shareholders, or the exchange with the Corporation's shareholders, of securities of the Corporation,
or securities of another company, or both; or

 

		(d)	a transaction whereby all or substantially all of the Corporation’s undertaking and assets
become the property of another corporation;

 

(any such event being herein called a "Corporate
Reorganization") the Optionee will have an option to purchase (at the times, for the consideration, and subject to the
terms and conditions set out in the Plan) and will accept on the exercise of such option, in lieu of the Unissued Option Shares
which he would otherwise have been entitled to purchase, the kind and amount of shares or other securities or property that he
would have been entitled to receive as a result of the Corporate Reorganization if, on the effective date thereof, he had been
the holder of all Unissued Option Shares or if appropriate, as otherwise determined by the Directors.

 

6.04      Determination
of Exercise Price and Number of Unissued Option Shares: If any questions arise at any time with respect to the Exercise Price
or number of Unissued Option Shares deliverable upon exercise of an Option following a Share Reorganization, Special Distribution
or Corporate Reorganization, such questions shall be conclusively determined by the Corporation’s auditor, or, if they decline
to so act, any other firm of Chartered Accountants in Vancouver, British Columbia, that the Directors may designate and who will
have access to all appropriate records and such determination will be binding upon the Corporation and all Optionees.

 

6.05      Regulatory
Approval: Any adjustment to the Exercise Price or the number of Unissued Option Shares purchasable under the Plan pursuant
to the operation of any provision of this Article Six is subject to the approval of the TSX and any other governmental authority
having jurisdiction.

 

ARTICLE SEVEN

 

TAKE-OVER BIDS AND CHANGES OF CONTROL

 

7.01                    Effect
of a Take-Over Bid: If a bona fide offer (an "Offer") for Common Shares is made to an Optionee or to shareholders
of the Corporation generally or to a class of shareholders which includes the Optionee, which Offer, if accepted in whole or in
part, would result in the offeror becoming a control person of the Corporation, within the meaning of subsection 1(1) of the Securities
Act, the Corporation shall, immediately upon receipt of notice of the Offer, notify each Optionee of full particulars of the Offer,
whereupon all Common Shares subject to such Option will become Vested and the Option may be exercised in whole or in part by the
Optionee so as to permit the Optionee to tender the Common Shares received upon such exercise, pursuant to the Offer. However,
if:

 

		(a)	the
                                                                                                            Offer is not completed
                                                                                                            within the time specified
                                                                                                            therein; or 

 

		(b)	all
                                                                                                            of the Common Shares
                                                                                                            tendered by the Optionee
                                                                                                            pursuant to the Offer
                                                                                                            are not taken up or
                                                                                                            paid for by the offeror
                                                                                                            in respect thereof,

  

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then the Common Shares received upon such
exercise, or in the case of clause (b) above, the Common Shares that are not taken up and paid for, may be returned by the Optionee
to the Corporation and reinstated as authorized but unissued Common Shares and with respect to such returned Common Shares, the
Option shall be reinstated as if it had not been exercised and the terms upon which such Common Shares were to become Vested pursuant
to this section shall be reinstated. If any Common Shares are returned to the Corporation under this Section 7.01, the Corporation
shall immediately refund the Exercise Price to the Optionee for such Common Shares. 

  

7.02                    Acceleration
of Expiry Time: If, at any time when an Option granted under the Plan remains unexercised, an Offer is made by an offeror,
the Directors may, upon notifying each Optionee of the full particulars of the Offer, declare all Common Shares issuable upon
the exercise of Options granted under the Plan, Vested, and declare that the Expiry Time for the exercise of all unexercised Options
granted under the Plan is accelerated so that all Options will either be exercised or will expire prior to the date upon which
Common Shares must be tendered pursuant to the Offer, provided such Offer is completed. 

 

7.03                    Effect
of a Change of Control: If a Change of Control occurs, all Common Shares subject to each outstanding Option will become Vested,
whereupon such Option may be exercised in whole or in part by the respective Optionee. 

 

ARTICLE EIGHT

 

EFFECTIVE DATE OF PLAN, AMENDMENT

OF PLAN AND TERMINATION OF PLAN

 

Section 8.01      Effective
Date of Plan: The Plan is to be implemented and effective upon TSX approval of the Plan and the approval of the Plan by the
shareholders of the Corporation. Such shareholder approval must be given by the affirmative vote of a majority of the Common Shares
represented at the meeting of the shareholders of the Corporation at which a motion to approve the Plan is presented.

 

Section 8.02      Amendment
of Plan: The Directors may from time to time, without shareholder approval and subject to applicable law and to the prior approval,
if required, of TSX or any other regulatory body having authority over the Corporation or the Plan, suspend, terminate or discontinue
the Plan at any time, or amend or revise the terms of the Plan or of any Option granted under, or otherwise governed by, the Plan
to:

 

		(a)	make amendments of a clerical or typographical nature and to include clarifying provisions in the
Plan;

 

		(b)	implement features or requirements that are necessary or desirable under applicable tax and securities
laws;

 

		(c)	change vesting provisions;

 

		(d)	change termination provisions for an Insider provided that the Expiry Time does not extend beyond
the original Expiry Time under the Plan;

 

		(e)	change termination provisions for an Optionee who is not an Insider beyond the original Expiry
Time;

 

		(f)	reduce the Exercise Price of an Option for an Optionee who is not an Insider; and

 

		(g)	implement a cashless exercise feature, payable in cash or securities;

 

provided that no such amendment, revision,
suspension, termination or discontinuance shall in any manner adversely affect any Option previously granted to an Optionee under
the Plan without the consent of that Optionee. Any other amendments to the Plan or Options granted thereunder (or Options otherwise
governed thereby) will be subject to the approval of the shareholders.

 

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Section 8.03      Termination
of the Plan: The Plan may be terminated at any time by the Directors. Notwithstanding the termination of the Plan, any Option
outstanding under the Plan at the time of termination shall remain in effect until such Option has been exercised, has expired,
has been surrendered to the Corporation or has been terminated.

 

ARTICLE NINE

 

MISCELLANEOUS PROVISIONS

 

Section 9.01      Non-Assignable:
No rights under the Plan and no Option awarded pursuant to the provisions of the Plan are assignable or transferable by any Participant
other than pursuant to a will or by the laws of descent and distribution.

 

Section 9.02      Rights
as a Shareholder: No Optionee shall have any rights as a shareholder of the Corporation with respect to any Common Shares which
are the subject of an Option. No Optionee shall be entitled to receive, and no adjustment shall be made for, any dividends, distributions
or other rights declared for shareholders of the Corporation for which the record date is prior to the date of exercise of any
Option.

 

Section 9.03      No
Contract of Employment: Nothing contained in the Plan shall confer or be deemed to confer upon any Participant the right to
continue in the employment of the Corporation or any subsidiary of the Corporation nor interfere or be deemed to interfere in any
way with any right of the Corporation or any subsidiary of the Corporation to discharge any Participant at any time for any reason
whatsoever, with or without cause.

 

Section 9.04      Exclusion
From Severance Allowance, Retirement Allowance or Termination Settlement: If an Optionee retires, resigns or is terminated
from employment or engagement with the Corporation or any subsidiary of the Corporation, the loss or limitation, if any, pursuant
to the Option Agreement with respect to the right to purchase Option Shares which were not Vested at that time or which, if Vested,
were cancelled, shall not give rise to any right to damages and shall not be included in the calculation of nor form any part of
any severance allowance, retiring allowance or termination settlement of any kind whatsoever in respect of such Optionee.

 

Section 9.05      Necessary
Approvals: The obligation of the Corporation to grant any Option pursuant to the Plan and to issue, sell and deliver any Common
Shares on the exercise of an Option is subject to the approval of any governmental authority or regulatory body required in connection
with the grant of such Option or the issue, sale and delivery of such Common Shares by the Corporation. Any Options granted prior
to the Corporation’s receipt of such required approvals shall be conditional upon such approval being given and no Options
may be exercised unless such approval has been being given.

 

In the event that any Common Shares cannot
be issued to any Optionee pursuant to the exercise of an Option for any reason whatsoever including, without limiting the generality
of the foregoing, the failure to obtain any required approval, then the obligation of the Corporation to issue such Common Shares
shall terminate and any money paid to the Corporation in connection with the exercise of such Option shall be returned to the Optionee
without interest or deduction.

 

Section 9.06      Form
of Notice: A notice given to the Corporation shall be in writing, signed by the Optionee and delivered to the head business
office of the Corporation.

 

    	- 10 -

    	 

    

 

Section 9.07      Conflict:
In the event of any conflict between the provisions of this Plan and an Option Agreement, the provisions of this Plan shall govern.

 

Section 9.08      Time
of Essence: Time is of the essence of this Plan and of each Option Agreement. No extension of time will be deemed to
be or to operate as a waiver of the essentiality of time.

 

Section 9.09      Entire
Agreement: This Plan and the applicable Option Agreement set out the entire agreement between the Corporation and the applicable
Optionee relative to the subject matter hereof and supersede all prior agreements, undertakings and understandings, whether oral
or written.

 

Section 9.10      No
Representation or Warranty: The Corporation makes no representation or warranty as to the value of any Option granted pursuant
to the Plan or as the future value of any Common Shares issued pursuant to the exercise of any Option.

 

Section 9.11      Compliance
with Applicable Law: If any provision of the Plan or any Option contravenes any law or any order, policy, by-law or regulation
of any regulatory body having jurisdiction, then such provision shall be deemed to be amended to the extent necessary to bring
such provision into compliance therewith.

 

Section 9.12      Applicable
Law: The Plan and all of the rights and obligations arising herefrom shall be interpreted and applied in accordance with the
laws of the Province of British Columbia.

 

Plan approved by the Board of Directors effective
December 17, 2009.

 

Plan approved by the shareholders of the Corporation
effective December 17, 2009.

 

Effective Date of Plan: December 17, 2009.

 

    	- 11 -

    	 

    

 

SCHEDULE "A"

 

DEJOUR ENTERPRISES LTD. 

 

STOCK OPTION PLAN - OPTION AGREEMENT

 

This Option Agreement is
entered into between Dejour Enterprises Ltd. (the “Corporation”) and the Optionee named below pursuant to the
Corporation’s Stock Option Plan (the "Plan"), a copy of which is attached hereto, and confirms that:

 

		1.	on ·, 200·
(the "Grant Date");

 

		2.	· (the "Optionee");

 

		3.	was granted the option (the “Option”) to purchase ·
Common Shares (the "Option Shares") of the Corporation;

 

		4.	for the price (the "Option Price") of $·
per share;

 

		5.	which shall be exercisable in full upon approval [OR set forth applicable vesting schedule such
as: which shall vest as to one-twelfth (1/12) of the Option at the end of each calendar month with the first 1/12 of the Option
vesting on · and with the Company being permitted to unilaterally waive the vesting
requirement at its discretion];

 

		6.	terminating on the [earlier of: (a)] ·, 200·
(the "Expiry Date")[, and (b) at the Company’s discretion upon the Company providing 30 days written notice
to the Optionee of the termination of the Option which notice may only be provided if the Option has vested or the Company has
waived the vesting requirement];

 

all on the terms and subject to the conditions
set out in the Plan. For greater certainty, Option Shares continue to be exercisable until the termination or cancellation thereof
as provided in this Option Agreement and the Plan.

 

By signing this Option
Agreement, the Optionee acknowledges that the Optionee has read and understands the Plan and agrees to the terms and conditions
of the Plan and this Option Agreement.

 

Acknowledgement – Personal Information

 

The undersigned hereby acknowledges and consents
to:

 

		(a)	the disclosure to all regulatory authorities of all personal information of the undersigned obtained
by the Corporation; and

 

		(b)	the collection, use and disclosure of such personal information by the all regulatory authorities
in accordance with their requirements, including the provision to third party service providers, from time to time.

 

IN WITNESS WHEREOF the parties hereto
have executed this Option Agreement as of the · day of ·,
200·.

 

	 	 	DEJOUR ENTERPRISES LTD.
	 	 	 
	 	 	Per:	 
	Signature	 	 	Authorized Signatory
	 	 	 
	 	 	 
	Print Name	 	 
	 	 	 
	 	 	 
	AddressAppendix A

 

DEJOUR ENTERPRISES
LTD.

2009 U.S. STOCK
INCENTIVE PLAN (“Sub-plan”)

(As Amended
on JANUARY 6, 2012)

 

Section 1.             Purpose.

 

This Sub-Plan is
an appendix to and is part of the Canadian Plan. Any option granted under this Plan is also subject to the terms and
conditions of the Canadian Plan. Unless otherwise explicitly provided in this Sub-Plan or an applicable Award Agreement,
where there is a conflict between the terms and conditions of this Sub-Plan and the terms and conditions of the Canadian
Plan, the terms and conditions of the Canadian Plan shall govern.

 

The purpose of this Sub-Plan
is to promote the interests of Dejour Enterprises Ltd. (the “Company”) and its stockholders by aiding the Company in
attracting and retaining employees, officers, consultants, independent contractors, advisors and non-employee Directors capable
of assuring the future success of the Company, to offer such persons incentives to put forth maximum efforts for the success of
the Company’s business and to compensate such persons through various stock-based arrangements and provide them with opportunities
for stock ownership in the Company, thereby aligning the interests of such persons with the Company’s stockholders.

 

Section 2.             Definitions.

 

As used in the Sub-Plan,
the following terms shall have the meanings set forth below:

 

(a)          “Administrator”
shall mean the Board or such director or other senior officer or employee of the Company or its Affiliate, as may be designated
as Administrator by the Board or Committee from time to time.

 

(b)          “Affiliate”
shall mean (i) any entity that, directly or indirectly through one or more intermediaries, is controlled by the Company and (ii)
any entity in which the Company has a significant equity interest, in each case as determined by the Committee.

 

(c)          “Award”
shall mean any Option granted under the Sub-Plan.

 

(d)          “Award
Agreement” shall mean any written agreement, contract or other instrument or document evidencing an Award granted under the
Sub-Plan. An Award Agreement may be in an electronic medium and need not be signed by a representative of the Company or the Participant.
Each Award Agreement shall be subject to the applicable terms and conditions of the Canadian Plan, the Sub-Plan and any other terms
and conditions (not inconsistent with the Canadian Plan and the Sub-Plan) determined by the Committee.

 

(e)          “Board”
shall mean the Board of Directors of the Company.

 

    	 

    	 

    

 

(f)          “Canadian
Plan” shall mean the Dejour Enterprises Ltd. Stock Option Plan as adopted by the Board on November 3, 2009, as it may be
amended from time to time.

 

(g)          “Change
in Control” shall have the meaning ascribed to such term in an Award Agreement, or any other applicable employment, severance
or change in control agreement between the Participant and the Company.

 

(h)          “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated thereunder.

 

(i)          “Committee”
shall mean the Compensation Committee of the Board or any successor committee of the Board designated by the Board to administer
the Sub-Plan. If the Company does not have a Compensation Committee, it will mean the majority of the independent directors. The
Committee shall be comprised of not less than such number of Directors as shall be required to permit Awards granted under the
Sub-Plan to qualify under Rule 16b-3, and each member of the Committee shall be a “Non-Employee Director” within the
meaning of Rule 16b-3 and an “outside director” within the meaning of Section 162(m). The Company expects to have
the Sub-Plan administered in accordance with the requirements for the award of “qualified performance-based compensation”
within the meaning of Section 162(m).

 

(j)          “Company”
shall mean Dejour Enterprises Ltd., a British Columbia corporation, or any successor corporation.

 

(k)          “Director”
shall mean a member of the Board.

 

(l)          “Eligible
Person” shall mean any employee, officer, consultant, independent contractor, advisor or non-employee Director providing
services to the Company or any Affiliate whom the Committee determines to be an Eligible Person, provided that in any case an Eligible
Person must also satisfy the criteria necessary to be a “Participant” (as defined in the Canadian Plan) and an Eligible
Person must be a natural person who is resident in the United States, a United States citizen, or who is otherwise subject to United
States tax law as determined by the Committee.

 

(m)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(n)          “Fair
Market Value” shall mean, with respect to any property (including, without limitation, any Shares or other securities), the
fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee.
Notwithstanding the foregoing, unless otherwise determined by the Committee, the Fair Market Value of Shares on a given
date for purposes of the Sub-Plan shall be the “Market Price” (as defined in the Canadian Plan).

 

(o)          “Incentive
Stock Option” shall mean an option granted under Section 6(a) of the Sub-Plan that is intended to meet the requirements of
Section 422 of the Code or any successor provision.

 

(p)          “Insider”
means an “Insider” as defined in the TSX Policies.

 

    	 

    	 

    

 

(q)          “Non-Qualified
Stock Option” shall mean an option granted under Section 6(a) of the Sub-Plan that is not intended to be an Incentive Stock
Option.

 

(r)          “Option”
shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

 

(s)          “Participant”
or “Optionee” shall mean an Eligible Person designated to be granted an Award under the Sub-Plan.

 

(t)          “Person”
shall mean any individual or entity, including a corporation, partnership, limited liability company, association, joint venture
or trust.

 

(u)          “Sub-Plan”
shall mean this Appendix A to the Canadian Plan, Dejour Enterprises Ltd. 2009 US Stock Incentive Plan, as amended from time to
time.

 

(v)         “Qualifying
Termination” shall have the meaning ascribed to it in any applicable Award Agreement, and, if not defined in any applicable
Award Agreement, shall mean termination of employment under circumstances that, in the judgment of the Committee, warrant acceleration
of the exercisability of Options . Without limiting the generality of the foregoing, a Qualifying Termination may apply to large
scale terminations of employment relating to the disposition or divestiture of business or legal entities or similar circumstances.

 

(w)          “Rule
16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act or any successor
rule or regulation.

 

(x)          “Section
162(m)” shall mean Section 162(m) of the Code, or any successor provision, and the applicable Treasury Regulations promulgated
thereunder.

 

(y)          “Section
409A” shall mean Section 409A of the Code, or any successor provision, and applicable Treasury Regulations and other applicable
guidance thereunder.

 

(z)          “Shares”
shall mean the common shares in the capital of the Company or such other securities or property as may become subject to Awards
pursuant to an adjustment made under Section 4(c) of the Sub-Plan.

 

(aa)         “Specified
Employee” shall mean a specified employee as defined in Code Section 409A(a)(2)(B) or applicable proposed or final regulations
under Code Section 409A.

 

(bb)         “TSX
Policies” means the applicable policies included in the TSX Company Manual and “TSX Policy” means any one of
them.

 

    	 

    	 

    

 

Section 3.             Administration.

 

(a)          Power
and Authority of the Committee and Administrator. The Sub-Plan shall be administered by the Committee or an Administrator on
the instructions of the Board or Committee. Subject to the express provisions of the Canadian Plan, the Sub-Plan and to applicable
law, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types
of Awards to be granted to each Participant under the Sub-Plan; (iii) determine the number of Shares to be covered by (or
the method by which payments or other rights are to be calculated in connection with) each Award; (iv) determine the terms
and conditions of any Award or Award Agreement, including any terms relating to the forfeiture of any Award and the forfeiture,
recapture or disgorgement of any cash, Shares, other securities, other Awards, other property and other amounts payable with respect
to any Award; (v) amend the terms and conditions of any Award or Award Agreement, provided, however, that, except as otherwise
provided in Section 4(c) hereof, the Committee shall comply with TSX Policies on any reprice, adjust or amend the exercise price
of Options previously awarded to any Participant; (vi) accelerate the exercisability of any Award or the lapse of restrictions
relating to any Award; (vii) determine whether, to what extent and under what circumstances Awards may be exercised in cash,
Shares, other securities, other Awards or other property, or canceled, forfeited or suspended; (viii) determine whether, to what
extent and under what circumstances cash, Shares, other securities, other Awards, other property and other amounts payable with
respect to an Award under the Sub-Plan shall be deferred either automatically or at the election of the holder of the Award or
the Committee; (ix) interpret and administer the Sub-Plan and any instrument or agreement, including any Award Agreement,
relating to the Sub-Plan; (x) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Sub-Plan; and (xi) make any other determination and take any other action
that the Committee deems necessary or desirable for the administration of the Sub-Plan. Unless otherwise expressly provided in
the Sub-Plan, all designations, determinations, interpretations and other decisions under or with respect to the Sub-Plan or any
Award or Award Agreement shall be within the sole discretion of the Committee or Administrator, may be made at any time and shall
be final, conclusive and binding upon any Participant, any holder or beneficiary of any Award or Award Agreement, and any employee
of the Company or any Affiliate.

 

(b)          Power
and Authority of the Board of Directors. Notwithstanding anything to the contrary contained herein, the Board may, at any time
and from time to time, without any further action of the Committee, exercise the powers and duties of the Committee under the Sub-Plan,
unless the exercise of such powers and duties by the Board would cause the Sub-Plan not to comply with the requirements of Section
162(m).

 

Section 4.             Shares
Available for Awards.

 

(a)          Shares
Available. Subject to adjustment as provided in Section 4(c) of the Sub-Plan, the aggregate number of Shares that may
be issued under all Awards under the Sub-Plan shall be 12,800,000 minus such number of Shares as are issued under the Canadian
Plan. Shares to be issued under the Sub-Plan may be authorized but unissued Shares or treasury shares . If an Award terminates
or is forfeited or cancelled without the issuance of any Shares, or if any Shares covered by an Award or to which an Award relates
are not issued for any other reason, then the number of Shares counted against the aggregate number of Shares available under the
Sub-Plan with respect to such Award, to the extent of any such termination, forfeiture, cancellation or other event, shall again
be available for granting Awards under the Sub-Plan.  Shares that are withheld in full or partial payment to the Company
of the purchase or exercise price relating to an Award or in connection with the satisfaction of tax obligations relating to an
Award shall not be available for granting Awards under the Sub-Plan.

 

    	 

    	 

    

 

(b)          Accounting
for Awards. For purposes of this Section 4, if an Award entitles the holder thereof to receive or purchase Shares, the number
of Shares covered by such Award or to which such Award relates shall be counted on the date of grant of such Award against the
aggregate number of Shares available for granting Awards under the Sub-Plan.

 

(c)          Adjustments.
The adjustment provisions set forth in the Canadian Plan, specifically Article Six of the Canadian Plan, shall apply to the Options.

 

(d)          Award
Limitations Under the Sub-Plan.

 

(i)          Section
162(m) Limitation for Certain Types of Awards. No Eligible Person may be granted Options or any other Award or Awards under
the Sub-Plan, the value of which Award or Awards is based solely on an increase in the value of the Shares after the date of grant
of such Award or Awards, for more than 5% of the total number of issued and outstanding Shares (subject to adjustment as
provided in Section 4(c) of the Sub-Plan) in the aggregate in any 12 month period.

 

(ii)         Limitation
on Awards Granted to Certain Persons. The number of Shares which may be issuable under the Sub-Plan and all of the Company’s
other previously established or proposed share compensation arrangements, within a one-year period: (a) to any one Participant,
shall not exceed 5% of the total number of issued and outstanding Shares on the Grant Date on a non-diluted basis; (b) to Insiders
as a group shall not exceed 10% of the total number of issued and outstanding Shares on the Grant Date on a non-diluted basis.

 

Section 5.             Eligibility.

 

Any Eligible Person shall
be eligible to be designated a Participant. In determining which Eligible Persons shall receive an Award and the terms of any Award,
the Committee may take into account the nature of the services rendered by the respective Eligible Persons, their present and potential
contributions to the success of the Company or such other factors as the Committee, in its discretion, shall deem relevant. Notwithstanding
the foregoing, an Incentive Stock Option may only be granted to full-time or part-time employees (which term as used herein includes,
without limitation, officers and Directors who are also employees), and an Incentive Stock Option shall not be granted to an employee
of an Affiliate unless such Affiliate is also a “subsidiary corporation” of the Company within the meaning of Section 424(f)
of the Code or any successor provision. Further, notwithstanding the foregoing, Options and Stock Appreciation Rights shall not
be granted to an Eligible Person providing direct services to an Affiliate unless the Company has a “controlling interest”
in such Affiliate within the meaning of Treas. Reg. Sec. 1.409A-1(b)(5)(iii)(E)(1).

 

Section 6.             Awards.

 

(a)          Options.
The Committee is hereby authorized to grant Options to Eligible Persons with the following terms and conditions and with such additional
terms and conditions not inconsistent with the provisions of the Sub-Plan as the Committee shall determine:

 

    	 

    	 

    

 

(i)          Exercise
Price. The purchase price per Share purchasable under an Option shall be determined by the Committee and shall not be less
than 100% of the Fair Market Value of a Share on the date of grant of such Option.

 

(ii)         Option
Term. The term of each Option shall be fixed by the Committee but shall not be longer than 10 years from the date of
grant and in no event will an Incentive Stock Option be exercisable after the expiration of ten years from the date
such option is granted notwithstanding anything contained in sections 1.01(i) and 4.04 of the Plan arguably to the contrary. The
option term of an Incentive Stock Option granted to an individual owning more than 10% of the total combined voting power of all
classes of stock of the Corporation and related corporations as described in Treas. Reg. 1.422-2(f) shall not be longer than 5
years from the date of grant and, notwithstanding anything in the Plan arguably to the contrary, in no event will such an option
be exercisable after the expiration of 5 years from the date such option is granted.

 

(iii)        Time
and Method of Exercise. The Option shall be exercisable by delivering to the Company a notice specifying
the number of Shares in respect of which the Option is exercised together with payment in full of the Option Price for each such
Share. Upon notice and payment there will be a binding contract for the issue of the Shares in respect of which the Option is exercised,
upon and subject to the provisions of the Plan. 

 

Option Exercise is settled
in Canadian dollar by certified cheque or wire transfer. Nevertheless, the Committee or Administrator shall have discretion to
determine the time or times at which an Option may be exercised in whole or in part and the method or methods by which, and the
form or forms (including, without limitation, cash, foreign currency, Shares, other securities, other Awards or other property,
or any combination thereof, having a Fair Market Value on the exercise date equal to the applicable exercise price) in which, payment
of the exercise price with respect thereto may be made or deemed to have been made.

 

If the Participant’s cheque is not honoured
by the financial institution, the Company has the right to collect the payment from the Participant and has the right to cancel
the Shares issued upon exercise. The Company can charge an administration fee of $35.00 for any dishonoured cheque.

 

(b)          General.

 

(i)          Consideration
for Awards. Awards may be granted for no cash consideration or for any cash or other consideration as may be determined by
the Committee or required by applicable law.

 

(ii)         Awards
May Be Granted Separately or Together. Awards may, in the discretion of the Committee, be granted either alone or in addition
to, in tandem with or in substitution for any other Award or any award granted under any other plan of the Company or any Affiliate.
Awards granted in addition to or in tandem with other Awards or in addition to or in tandem with awards granted under any other
plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other
Awards or awards.

 

(iii)        Forms
of Payment under Awards. Subject to the terms of the Sub-Plan and of any applicable Award Agreement, payments or transfers
to be made by the Company or an Affiliate upon the grant, exercise or payment of an Award may be made in such form or forms as
the Committee shall determine (including, without limitation, cash, Shares, other securities, other Awards or other property, or
any combination thereof), and may be made in a single payment or transfer, in installments or on a deferred basis, in each case
in accordance with rules and procedures established by the Committee.

 

    	 

    	 

    

 

(iv)        Term
of Awards. The term of each Award shall be for a period not longer than 10 years from the date of grant.

 

(v)         Limits
on Transfer of Awards. Except as otherwise provided in this Section 6(b)(v), no Award and no right under any such Award shall
be transferable by a Participant other than by will or by the laws of descent and distribution. The Committee may establish procedures
as it deems appropriate for a Participant to designate a Person or Persons, as beneficiary or beneficiaries, to exercise the rights
of the Participant and receive any property distributable with respect to any Award in the event of the Participant’s death.
The Committee, in its discretion and subject to such additional terms and conditions as it determines, may permit a Participant
to transfer a Non-Qualified Stock Option to any “family member” (as such term is defined in the General Instructions
to Form S-8 (or any successor to such Instructions or such Form) under the Securities Act of 1933, as amended) at any time that
such Participant holds such Option, provided that such transfers may not be for value (i.e., the transferor may not receive any
consideration therefor) and the family member may not make any subsequent transfers other than by will or by the laws of descent
and distribution. Each Award under the Sub-Plan or right under any such Award shall be exercisable during the Participant’s
lifetime only by the Participant (except as provided herein or in an Award Agreement or amendment thereto relating to a Non-Qualified
Stock Option) or, if permissible under applicable law, by the Participant’s guardian or legal representative. No Award or
right under any such Award may be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment
or encumbrance thereof shall be void and unenforceable against the Company or any Affiliate.

 

(vi)        Restrictions;
Securities Exchange Listing. All Shares or other securities delivered under the Sub-Plan pursuant to any Award or the exercise
thereof shall be subject to such restrictions as the Committee may deem advisable under the Sub-Plan, applicable federal or state
securities laws and regulatory requirements, and the Committee may cause appropriate entries to be made or legends to be placed
on the certificates for such Shares or other securities to reflect such restrictions. If the Shares or other securities are traded
on a securities exchange, the Company shall not be required to deliver any Shares or other securities covered by an Award unless
and until such Shares or other securities have been admitted for trading on such securities exchange.

 

(vii)       Section
409A Provisions. Notwithstanding anything in the Sub-Plan or any Award Agreement to the contrary, to the extent that any amount
or benefit that constitutes “deferred compensation” to a Participant under Section 409A of the Code and applicable
guidance thereunder is otherwise payable or distributable to a Participant under the Sub-Plan or any Award Agreement solely by
reason of the occurrence of a Change in Control or due to the Participant’s disability or “separation from service”
(as such term is defined under Section 409A), such amount or benefit will not be payable or distributable to the Participant by
reason of such circumstance unless the Committee determines in good faith that (i) the circumstances giving rise to such Change
in Control, disability or separation from service meet the definition of a change in ownership or control, disability, or separation
from service, as the case may be, in Section 409A(a)(2)(A) of the Code and applicable proposed or final regulations, or (ii) the
payment or distribution of such amount or benefit would be exempt from the application of Section 409A by reason of the short-term
deferral exemption or otherwise. Any payment or distribution that otherwise would be made to a Participant who is a Specified Employee
(as determined by the Committee in good faith) on account of separation from service may not be made before the date which is 6
months after the date of the Specified Employee’s separation from service (or if earlier, upon the Specified Employee’s
death) unless the payment or distribution is exempt from the application of Section 409A by reason of the short-term deferral exemption
or otherwise.

 

    	 

    	 

    

 

 

Section 7.             Amendment
and Termination; Corrections.

 

(a)          Amendments
to the Sub-Plan. The Board may amend, alter, suspend, discontinue or terminate the Sub-Plan at any time without the approval
of the stockholders of the Company; provided, however, that, notwithstanding any other provision of the Sub-Plan or any Award Agreement,
prior approval of the stockholders of the Company shall be required for any amendment to the Sub-Plan that:

 

(i)          requires
stockholder approval under the applicable rules or regulations of the Securities and Exchange Commission, the American Stock Exchange,
TSX Policies or any other securities exchange that are applicable to the Company;

 

(ii)         increases
the number of shares authorized under the Sub-Plan as specified in Section 4(a) of the Sub-Plan;

 

(iii)        increases
the number of shares subject to the limitations contained in Sections 4(d)(i), (iii) and (iv) of the Sub-Plan or the dollar amount
subject to the limitation contained in Section 4(d)(ii) of the Sub-Plan;

 

(iv)        reduce
the exercise price of Options to Insider, unless such repricing does not required stockholders approval according to TSX Policies;

 

(v)         permits
the award of Options at a price less than 100% of the Fair Market Value of a Share on the date of grant of such Option or Stock
Appreciation Right; and

 

(vi)        would
cause Section 162(m) to become unavailable with respect to the Sub-Plan.

 

(b)          Amendments
to Awards. Subject to the provisions of the Sub-Plan, the Committee or Administrator may waive any conditions of or rights
of the Company under any outstanding Award, prospectively or retroactively. Except as otherwise provided in the Sub-Plan, the Committee
or Administrator may amend, alter, suspend, discontinue or terminate any outstanding Award, prospectively or retroactively, but
no such action may adversely affect the rights of the holder of such Award without the consent of the Participant or holder or
beneficiary thereof. The Company intends that Awards under the Sub-Plan shall satisfy the requirements of Section 409A to avoid
any adverse tax results thereunder, and the Committee shall administer and interpret the Sub-Plan and all Award Agreements in a
manner consistent with that intent. If any provision of the Sub-Plan or an Award Agreement would result in adverse tax consequences
under Section 409A, the Committee may amend that provision (or take any other action reasonably necessary) to avoid any adverse
tax results and no action taken to comply with Section 409A shall be deemed to impair or otherwise adversely affect the rights
of any holder of an Award or beneficiary thereof.

 

    	 

    	 

    

 

(c)          Correction
of Defects, Omissions and Inconsistencies. The Committee may correct any defect, supply any omission or reconcile any inconsistency
in the Sub-Plan or in any Award or Award Agreement in the manner and to the extent it shall deem desirable to implement or maintain
the effectiveness of the Sub-Plan.

 

Section 8.             Income
Tax Withholding.

 

In order to comply with all
applicable federal, state, local or foreign income tax laws or regulations, the Company may take such action as it deems appropriate
to ensure that all applicable federal, state, local or foreign payroll, withholding, income or other taxes, which are the sole
and absolute responsibility of a Participant, are withheld or collected from such Participant. In order to assist a Participant
in paying all or a portion of the applicable taxes to be withheld or collected upon exercise or receipt of (or the lapse of restrictions
relating to) an Award, the Committee, in its discretion and subject to such additional terms and conditions as it may adopt, may
permit the Participant to satisfy such tax obligation by (a) electing to have the Company withhold a portion of the Shares
otherwise to be delivered upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair Market
Value equal to the amount of such taxes or (b) delivering to the Company Shares other than Shares issuable upon exercise or
receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes. The
election, if any, must be made on or before the date that the amount of tax to be withheld is determined.

 

Section 9.             General
Provisions.

 

(a)          No
Rights to Awards. No Eligible Person, Participant or other Person shall have any claim to be granted any Award under the Sub-Plan,
and there is no obligation for uniformity of treatment of Eligible Persons, Participants or holders or beneficiaries of Awards
under the Sub-Plan. The terms and conditions of Awards need not be the same with respect to any Participant or with respect to
different Participants.

 

(b)          Award
Agreements. No Participant shall have rights under an Award granted to such Participant unless and until an Award Agreement
shall have been duly executed on behalf of the Company and, if requested by the Company, signed by the Participant, or until such
Award Agreement is delivered and accepted through any electronic medium in accordance with procedures established by the Company.

 

(c)          No
Rights of Stockholders. Except with respect to Restricted Stock and Stock Awards, neither a Participant nor the Participant’s
legal representative shall be, or have any of the rights and privileges of, a stockholder of the Company with respect to any Shares
issuable upon the exercise or payment of any Award, in whole or in part, unless and until the Shares have been issued.

 

    	 

    	 

    

 

(d)          No
Limit on Other Compensation Plans or Arrangements. Nothing contained in the Sub-Plan shall prevent the Company or any Affiliate
from adopting or continuing in effect other or additional compensation plans or arrangements, and such plans or arrangements may
be either generally applicable or applicable only in specific cases.

 

(e)          No
Right to Employment or Directorship. The grant of an Award shall not be construed as giving a Participant the right to be retained
as an employee of the Company or any Affiliate, or a Director to be retained as a Director, nor will it affect in any way the right
of the Company or an Affiliate to terminate a Participant’s employment at any time, with or without cause. In addition, the
Company or an Affiliate may at any time dismiss a Participant from employment free from any liability or any claim under the Sub-Plan
or any Award, unless otherwise expressly provided in the Sub-Plan or in any Award Agreement.

 

(f)          Governing
Law. The internal law, and not the law of conflicts, of the State of Delaware, shall govern all questions concerning the validity,
construction and effect of the Sub-Plan or any Award, and any rules and regulations relating to the Sub-Plan or any Award.

 

(g)          Severability.
If any provision of the Sub-Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction
or would disqualify the Sub-Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed
or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination
of the Committee, materially altering the purpose or intent of the Sub-Plan or the Award, such provision shall be stricken as to
such jurisdiction or Award, and the remainder of the Sub-Plan or any such Award shall remain in full force and effect.

 

(h)          No
Trust or Fund Created. Neither the Sub-Plan nor any Award shall create or be construed to create a trust or separate fund of
any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person. To the extent
that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be
no greater than the right of any unsecured general creditor of the Company or any Affiliate.

 

(i)          No
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Sub-Plan or any Award, and the Committee
shall determine whether cash shall be paid in lieu of any fractional Share or whether such fractional Share or any rights thereto
shall be canceled, terminated or otherwise eliminated.

 

(j)          Headings.
Headings are given to the Sections and subsections of the Sub-Plan solely as a convenience to facilitate reference. Such headings
shall not be deemed in any way material or relevant to the construction or interpretation of the Sub-Plan or any provision thereof.

 

    	 

    	 

    

 

Section 10.            Effective
Date of the Sub-Plan; Effect on Prior Sub-Plan.

 

The Sub-Plan shall be subject
to approval by the stockholders of the Company at the first annual meeting of stockholders of the Company to be held after January
6, 2012 and the Sub-Plan shall be effective as of the date of such stockholder approval. In addition, the increase in the number
of Shares from 9,579,104 to 12,800,000 that may be issued under the Sub-Plan shall be subject to approval by the stockholders
of the Company and such increase under the Sub-Plan shall be effective as of the date of such stockholder approval.

 

Section 11.           Term
of the Sub-Plan.

 

The Sub-Plan shall terminate
at midnight on January 5, 2022, unless terminated before then by the Board. Awards may be granted under the Sub-Plan until the
Sub-Plan terminates or until all Shares available for Awards under the Sub-Plan have been purchased or acquired; provided, however,
that Incentive Stock Options may not be granted following the 10-year anniversary of the Board’s adoption of the Sub-Plan.
As long as any Awards are outstanding under the Sub-Plan, the terms of the Sub-Plan shall govern such Awards.

 

Adopted by Board and shareholders on
December 17, 2009 and amended by Board on January 6, 2012.

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