Document:

Offer Letter from National Bank of Canada

 Exhibit 10.1 

 

			
	

	 	  
 Writer’s Direct Line

(403) 294-4957

 August 12, 2011 
 BY COURIER 
 Legend Energy Canada Ltd. 

801 – 6 Avenue SW, Suite 1750 
 Calgary, AB
T2P 3W2 
  

			
	ATTENTION:	  	Mr. Marshall Diamond-Goldberg
		  	President

 Dear Sir: 
  

	RE:	CREDIT FACILITIES – NATIONAL BANK OF CANADA / LEGEND ENERGY CANADA LTD. 

 
 We are pleased to advise that National Bank of
Canada has approved the following Credit Facilities for Legend Energy Canada Ltd., subject to the terms and condition set out herein. This Offering Letter contains all the terms and conditions pertaining to the availability of Credit Facilities from
National Bank of Canada. 
  

					
	BORROWER:	  	LEGEND ENERGY CANADA LTD. (the “Borrower” or “Loan Party”).
		
	LENDER:	  	NATIONAL BANK OF CANADA (the “Bank”).
		
	CREDIT FACILITY A:	  	REVOLVING OPERATING DEMAND LOAN (the “Credit Facility A”).
		
	MAXIMUM AMOUNT:	  	$6,000,000.
		
	PURPOSE:	  	Credit Facility A shall only be used for the Borrower’s general corporate purposes including capital expenditures and to assist in financing the acquisition of
producing petroleum and natural gas assets from International Sovereign Energy Corp. closing August 31, 2011.
		
	AVAILABILITY:	  	Prime Rate loans (“Prime Rate Loans”). Revolving in whole multiples of Cdn$25,000.
		
		  	Letters of credit and/or letters of guarantee (“L/C/Gs”) (maximum term one year). The aggregate Face Amount of L/C/Gs issued and outstanding at any time
limited to $500,000 in any currency acceptable to the Bank.
		
	REPAYMENT:	  	Interest only but always subject to Availability, Review, and the Bank’s right of demand.

 National Bank of Canada 
 2700, 530 - 8 Avenue S.W. 
 Calgary (Alberta) T2P 3S8 

			
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	INTEREST RATE:	  	The Borrower shall pay interest calculated daily and payable monthly, not in advance, on the outstanding principal amount of Prime Rate Loans drawn under the Credit
Facility A at a rate per annum equal to the Prime Rate as designated from time to time by the Bank plus one percent (Prime Rate + 1,00% p.a.). Interest at the aforesaid rate shall be due and payable on the 26th day of each and every month until all
amounts owing to the Bank are paid in full. Interest shall be paid via automatic debit to the Borrower’s account at the Calgary Branch of the Bank.  

As of this date, the Bank’s Prime Rate is 3.00% per annum.

		
	STANDBY FEE:	  	One-quarter percent per annum (0.25% p.a.), based on a 365 or 366 day period, as the case may be, on the undrawn portion of the Credit Facility A (the “Standby
Fee”), payable monthly on the first Business Day of each month.
		
	L/C/G FEE:	  	One and one-half percent per annum (1.50% p.a.), based on a 365 or 366 day period, as the case may be, of the issue amount, payable at issue (the “L/C/G
Fee”). This non-refundable, upfront fee is to be based on the number of months the L/C/G is to be outstanding with any portion of 31 days to be considered a complete month.
		
	EVIDENCE OF DEBT:	  	Revolving Demand Credit Agreement and the records of the Bank. Such records maintained by the Bank shall constitute in the absence of manifest error prima facie evidence
of the obligations of the Borrower to the Bank in respect of Advances made. The failure by the Bank to correctly record any such amount or date shall not adversely affect the obligations of the Borrower to pay amounts due hereunder to the Bank in
accordance with this Offering Letter.
		
	CREDIT FACILITY B:	  	MASTERCARD FACILITY (the “Credit Facility B”).
		
	MAXIMUM AMOUNT:	  	$20,000.
		
	PURPOSE:	  	Credit Facility B shall only be used by the Borrower to facilitate travel, entertainment, and supplier expenses for company officers.
		
	REPAYMENT:	  	Payment in full, monthly.
		
	INTEREST RATE:	  	Standard rates as established from time to time by MasterCard.
		
	EVIDENCE OF DEBT:	  	MasterCard monthly statements and the records of the Bank. Such records maintained by the Bank shall constitute in the absence of manifest error prima facie evidence of
the obligations of the Borrower to the Bank in respect of Advances made. The failure by the Bank to correctly record any such amount or date shall not adversely affect the obligations of the Borrower to pay amounts due hereunder to the Bank in
accordance with this Offering Letter.
		
		  	RISK MANAGEMENT FACILITY (the “Risk Management Facility”)
		
	PURPOSE:	  	Risk Management Facility shall be used by the Borrower for Financial instruments.
		
	AVAILABILITY:	  	Various Financial Instruments. Maximum term 24 months. Subject to Bank availability and including a cross default limit of $500,000.
		
	SETTLEMENT:	  	Settlement as per contract maturities.

			
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	EVIDENCE OF USAGE:	  	Executed treasury contracts, executed ISDA Master Agreement with appropriate annexes, other documentation acceptable to the Bank, and the records of the Bank. Such
records maintained by the Bank shall constitute in the absence of manifest error prima facie evidence of the obligations of the Borrower to the Bank in respect of Advances made. The failure by the Bank to correctly record any such amount or date
shall not adversely affect the obligations of the Borrower to pay amounts due hereunder to the Bank in accordance with this Offering Letter.
		
		  	FOR ALL CREDIT FACILITIES
		
	DEFINITIONS:	  	In this Offering Letter, including the Appendices hereto and in all notices given pursuant to this Offering Letter, capitalized words and phrases shall have the meanings
given to them in this Offering Letter in their proper context, and words and phrases not otherwise defined in this Offering Letter but defined in Appendix C to this Offering Letter shall have the meanings given to them in Appendix C to this Offering
Letter.
		
	INTERPRETATION:	  	In this Offering Letter, unless otherwise specifically provided, words importing the singular will include the plural and vice versa, words importing gender shall
include the masculine, the feminine and the neuter, and “in writing” or “written” includes printing, typewriting or any electronic means of communication capable of being visibly reproduced at the point of reception, including by
facsimile.
		
	FEES:	  	$24,000. US$12,000 collected (CA$11,472) and $12,528 due and payable upon provision of this Offering Letter. Non-refundable. This fee includes the Bank’s
engineering expenses incurred for this Review.
		
	SECURITY:	  	The following security shall be completed, duly executed, delivered, and registered, where necessary, to the entire satisfaction of the Bank and its counsel. All present
and future security (the “Security”) and the terms thereof shall be held by the Bank as continuing security for all present and future debts, obligations and liabilities (whether direct or indirect, absolute or contingent) of the
Loan Parties to the Bank including without limitation for the repayment of all loans and advances made hereunder and for other loans and advances that may be made from time to time in the future whether hereunder or otherwise. For greater certainty,
all Financial Instruments, including without limitation swaps and forwards, entered into at any time with the Bank (or any of its subsidiaries or affiliates from time to time) are deemed to be debts, obligations and liabilities of the Borrower and
are secured by the Security on a pari passu basis and shall rank pari passu with all other indebtedness under the Credit Facilities. Where applicable, the Security will be in the Bank’s standard form.
		
		  	To Be Obtained:
			
		  	1.	  	Accepted Offering Letter dated August 12, 2011.
			
		  	2.	  	General Assignment of Book Debts.
			
		  	3.	  	$25,000,000 Debenture with a floating charge over all assets of the Borrower with a negative pledge and undertaking to provide fixed charges on the Borrower’s producing
petroleum and natural gas properties at the request of the Bank, and pledge of such Debenture.
			
		  	4.	  	Evidence of insurance coverage in accordance with industry standards designating the Bank as first loss payee in respect of the proceeds of the
insurance.

			
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		  	5.	  	Appropriate title representation (Officer’s Certificate as to Title) including a schedule of major producing petroleum and natural gas reserves described by lease (type, date,
term, parties), legal description (wells and spacing units), interest (Working Interest or other APO/BPO interests), overrides (APO/BPO), gross overrides, and other liens, encumbrances, and overrides); (or, at the request of the Bank, title opinion
satisfactory to the Bank and its counsel).
			
		  	6.	  	Alberta Land Titles Office Name Search Consent from each Loan Party.
			
		  	7.	  	Assignment of revenues and monies under material contracts, as applicable.
			
		  	8.	  	Legal Opinion of the Bank’s counsel.
			
		  	9.	  	Such other security, documents, and agreements that the Bank or its legal counsel may reasonably request.
		
		  	The Security shall be registered in the of Alberta, in a first priority position, subject only to Permitted Encumbrances.
		
	 REPRESENTATIONS

AND WARRANTIES:
	  	Each Loan Party represents and warrants to the Bank (all of which representations and warranties each Loan Party hereby acknowledges are being relied upon by the Bank in
entering into this Offering Letter) that:
			
		  	1.	  	Each Loan Party has been duly incorporated or formed, as applicable, and is in good standing under the legislation governing it, and it has the powers, permits, and licenses
required to operate its business or enterprise and to own, manage, and administer its property.
			
		  	2.	  	This Offering Letter constitutes, and the Security and related agreements shall constitute, legal, valid, and binding obligations of each Loan Party party thereto, enforceable in
accordance with their respective terms, subject to applicable bankruptcy, insolvency, or similar taws affecting creditors’ rights generally and to the availability of equitable remedies.
			
		  	3.	  	Each Loan Party has the right to pledge, charge, mortgage, or lien its assets in accordance with the Security contemplated by this Offering Letter.
			
		  	4.	  	Each Loan Party is presently in good standing under, and shall duly perform and observe, all material terms of all documents, agreements, and instruments affecting or relating to
the petroleum assets of such Loan Party.
			
		  	5.	  	There has been no adverse material change in the financial position of any Loan Party since the date of its most recent proforma balance sheet, which were furnished to the Bank.
Such consolidated financial statements fairly present the financial position of each Loan Party at the date that they were drawn up. No Loan Party foresees incurring any major liability which it has not already disclosed to the
Bank.
			
		  	6.	  	No Loan Party is involved in any dispute or legal or regulatory proceedings likely to materially affect its financial position or its capacity to operate its
business.
			
		  	7.	  	No Loan Party is in default under the contracts to which it is a party or under the applicable legislation and regulations governing the operation of its business or its property,
including, without limitation, all Environmental Requirements subsequently stated in Environmental Obligations.

			
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		  	8.	  	The Borrower has no subsidiaries.
			
		  	9.	  	The chief executive office (for the purposes of the PPSA) of each Loan Party is located in Alberta.
			
		  	10.	  	Each Loan Party has all the requisite power, authority and capacity to execute and deliver this Offering Letter and the Security (to which it is a party) and to perform its
obligations hereunder and thereunder.
			
		  	11.	  	The execution and delivery of this Offering Letter and the Security (to which it is a party) and the performance of the terms of this Offering Letter and such Security do not
violate the provisions of any Loan Party’s constating documents or its by-laws or any law, order, rule or regulation applicable to it and have been validly authorized by it.
			
		  	12.	  	The execution, delivery and performance of the terms of this Offering Letter and the Security (to which it is a party) will not constitute a breach of any agreement to which any
Loan Party or its property, assets or undertaking are bound or affected.
			
		  	13.	  	No Loan Party has incurred any indebtedness or obligations for borrowed money (other than as contemplated hereby or payables incurred in the ordinary course of business or as
previously disclosed in writing to the Bank) and has not granted any security ranking equal with or in priority to the Security (other than Permitted Encumbrances).
		
		  	Unless expressly stated to be made as of a specific date, the representations and warranties made in this Offering Letter shall survive the execution of this Offering
Letter and all Security, and shall be deemed to be repeated as of the date of each Advance and as of the date of delivery of each Compliance Certificate, subject to modifications made by the Borrower to the Bank in writing and accepted by the Bank.
The Bank shall be deemed to have relied upon such representations and warranties at each such time as a condition of making an Advance hereunder or continuing to extend the Credit Facilities hereunder.
		
	 CONDITIONS

PRECEDENT:
	  	Prior to any drawdown under the Credit Facilities, the Borrower shall have provided, executed or satisfied the following, to the Bank’s satisfaction (collectively
with all other conditions precedent set out in this Offering Letter, the “Conditions Precedent”):
			
		  	1.	  	A Revolving Demand Credit Agreement in the face amount of $6,000,000 duly executed and delivered to the Bank by the Borrower.
			
		  	2.	  	All Security shall be duly completed, authorized, executed, delivered by each Loan Party which is a party thereto, and registered, all to the satisfaction of the Bank and its
counsel.
			
		  	3.	  	A legal opinion from the Borrower’s counsel, in form and substance satisfactory to the Bank and its counsel, that each Loan Party has been duly incorporated (or formed, as
applicable), is validly subsisting, and is in good standing, that the Security has been duly authorized and executed, and that each Loan Party has the corporate power and capacity to enter into and perform the obligations contemplated by this
Offering Letter and the Security.

			
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		  	4.	  	Satisfactory evidence to the Bank and its counsel that the Borrower has proper title to its major petroleum and natural gas interests and that no prior charges, liens, encumbrances,
or claims exist against such interests.
			
		  	5.	  	Evidence of closing of the petroleum and natural gas reserve acquisition from International Sovereign Energy Corp., including a copy of the executed purchase and sale agreement and
any related conveyance.
			
		  	6.	  	No interest letter from National Bank of Canada.
			
		  	7.	  	True copy of constating documents, including all amendments thereto, of each Loan Party.
			
		  	8.	  	True copy of the resolutions of the board of directors of each Loan Party authorizing the execution and delivery of this Offering Letter and the Security.
			
		  	9.	  	All fees due and payable to the Bank shall have been paid.
			
		  	10.	  	No Default or Event of Default shall exist.
			
		  	11.	  	No Material Adverse Effect has occurred with respect to any Loan Party or the Security.
			
		  	12.	  	Any other document that may be reasonably requested by the Bank.
		
		  	The above conditions are inserted for the sole benefit of the Bank, and may be waived by the Bank in whole or in part (with or without terms or conditions) in respect of
any particular Advance, provided that any waiver shall not be binding unless given in writing and shall not derogate from the right of the Bank to insist on the satisfaction of any condition not expressly waived in writing or to insist on the
satisfaction of any condition waived in writing which may be requested in the future.
		
	 REPORTING

REQUIREMENTS:
	  	The Borrower shall submit to the Bank:
			
		  	1.	  	Monthly production and revenue reports in form and substance satisfactory to the Bank within 60 calendar days of each month end;
			
		  	2.	  	Quarterly unaudited consolidated financial statements, including balance sheet, income statement, and cash flow statement, and Compliance Certificate within 60 calendar days of each
fiscal quarter end for the first three fiscal quarters of each fiscal year;
			
		  	3.	  	Annual audited consolidated financial statements and Compliance Certificate within 120 calendar days of each fiscal year end;
			
		  	4.	  	Annual independent engineering report in form and substance satisfactory to the Bank on the petroleum and natural gas reserves of the Borrower within 120 calendar days of each
fiscal year end, prepared by a firm acceptable to the Bank;
			
		  	5.	  	Annual consolidated budget for the following fiscal year, including production, cash flow and capital expenditures forecasts, within 120 days of each fiscal year end;
and
			
		  	6.	  	Any other information the Bank may reasonably require from time to time.

			
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	 AFFIRMATIVE

COVENANTS:
	  	Each Loan Party shall (each of the below being an “Affirmative Covenant”):
			
		  	1.	  	Carry on business and operate its petroleum and natural gas reserves in accordance with good practices consistent with accepted industry standards and pursuant to applicable
agreements, regulations, and laws.
			
		  	2.	  	Maintain its corporate existence and comply with all applicable laws.
			
		  	3.	  	Pay, when due, all taxes, assessments, deductions at source, crown royalties, income tax or levies for which the payment is guaranteed by legal privilege, prior claim, or legal
hypothec, without subrogation or consolidations.
			
		  	4.	  	Comply with all regulatory bodies and provisions regarding environmental procedures and controls.
			
		  	5.	  	Upon reasonable notice, allow the Bank access to its books and records, and take excerpts therefrom or make copies thereof, and to visit and inspect its assets and place(s) of
business.
			
		  	6.	  	Maintain adequate and appropriate insurance on its assets including protection against public liability, blow-outs, and “all-risk” perils.
			
		  	7.	  	Inform the Bank of any event or action which would have a Material Adverse Effect on its operational or financial affairs, including but not limited to the sale of assets,
guarantees, funded debt from other lenders, or alteration of type of business.
			
		  	8.	  	Keep and maintain books of account and other accounting records in accordance with GAAP.
			
		  	9.	  	Maintain an Adjusted Working Capital Ratio of not less than 1.00:1.00 at all times.
			
		  	10.	  	Pay all amounts due and payable hereunder and pursuant to the Security in accordance with the respective terms hereof and thereof.
			
		  	11.	  	As soon as practicable following receipt by such Loan Party of a request by the Bank to provide fixed charge security over the producing petroleum and natural gas properties of such
Loan Party (and in any event not more than 5 Business Days following such request), furnish or cause to be furnished to the Bank, at the sole cost and expense of such Loan Party, fixed charge security over such producing and natural gas properties
of such Loan Party as are specified by the Bank, in the form of a supplemental instrument to the Security.
			
		  	12.	  	Observe the terms of and perform its obligations under this Offering Letter and the Security, and under any other agreements now or hereafter made with the Bank.
			
		  	13.	  	Utilize the Advances only for the applicable purposes stipulated herein.
			
		  	14.	  	Notify the Bank, without delay, of (a) any litigation or proceeding in which it is a party if an adverse decision therein would require it to pay more than $300,000 or deliver
assets the value of which exceeds such sum (whether or not the claim is considered to be covered by insurance), and (b) the institution of any other suit or proceeding involving it that might materially and adversely affect its property, assets or
undertaking, or its operations, financial conditions or business.

			
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		  	15.	  	Notify the Bank, without delay, of any Default or Event of Default.
			
		  	16.	  	Obtain and maintain the licenses and permits required to operate its business unless failure to obtain such licenses and permits could not reasonably be expected to result in a
Material Adverse Effect.
			
		  	17.	  	Provide the Bank with any information or document that it may reasonably require from time to time.
		
	 NEGATIVE

COVENANTS:
	  	No Loan Party shall, without the prior approval of the Bank (each of the below being a “Negative Covenant”):
			
		  	1.	  	Allow a Change of Control.
			
		  	2.	  	Merge, amalgamate, consolidate, or wind up its assets, unless (i) such merger, amalgamation, consolidation or winding up is with another Loan Party and (ii) it has notified the
Bank, without delay, of such merger, amalgamation, consolidation or winding up.
			
		  	3.	  	Reduce or distribute capital or pay dividends or redeem or repurchase common or preferred shares, unless such distribution, dividends, redemptions, and repurchases do not impair the
capacity of such Loan Party to fulfil its obligations with respect to the Credit Facilities, including the repayment of all Credit Facilities; notwithstanding the foregoing, no Loan Party shall reduce or distribute capital or pay dividends or redeem
or repurchase common or preferred shares when a Default or an Event of Default has occurred and is continuing or shall reasonably expected to occur as a result of reducing or distributing capital or paying dividends or redeeming or repurchasing
common or preferred shares, as the case may be.
			
		  	4.	  	Incur further secured indebtedness, pledge or encumber assets, or guarantee the obligations of others.
			
		  	5.	  	Make loans or investments, except to or in another Loan Party.
			
		  	6.	  	Sell or dispose of any assets subject to the Bank’s Security in the aggregate of greater than $300,000 each calendar year. This shall include sale/leaseback transactions on
facilities.
			
		  	7.	  	Hedge or contract crude oil, natural gas liquids, or natural gas, on a fixed price basis, exceeding 50% of actual production volumes.
			
		  	8.	  	Monetize or effect an early termination of any fixed price financial hedge or contract.
			
		  	9.	  	Make any material change in the nature of its business as carried on at the date hereof.
			
		  	10.	  	Utilize Advances to finance a hostile takeover.
			
		  	11.	  	Move its property, assets or undertaking outside the jurisdictions in which the Security is registered.
			
		  	12.	  	Move its chief executive office from Alberta.

			
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		  	13.	  	Create, acquire or suffer to exist any subsidiary unless such subsidiary provides a guarantee and such other Security required by the Bank, in its sole discretion.
			
		  	14.	  	Experience a change in its executive management which, in the opinion of the Bank, acting in its sole discretion, has or may have a Material Adverse Effect.
			
	 ENVIRONMENTAL

OBLIGATIONS:
	  	1.	  	Each Loan Party shall comply with the requirements of all legislative and regulatory environmental provisions (the “Environmental Requirements”) and shall at all
times maintain the authorizations, permits, and certificates required under these provisions.
			
		  	2.	  	Each Loan Party shall immediately notify the Bank in the event a contaminant spill or emission occurs or is discovered with respect to its property, operations, or those of any
neighbouring property. In addition, it shall report to the Bank forthwith any notice, order, decree, or fine that it may receive or be ordered to pay with respect to the Environmental Requirements relating to its business or
property.
			
		  	3.	  	At the request of and in accordance with the conditions set forth by the Bank, each Loan Party shall, at its own cost, provide any information or document which the Bank may require
with respect to its environmental situation, including any study or report prepared by a firm acceptable to the Bank. In the event that such studies or reports reveal that any Environmental Requirements are not being respected, the applicable Loan
Party shall effect the necessary work to ensure that its business and property comply with the Environmental Requirements within a period acceptable to the Bank.
			
		  	4.	  	Each Loan Party undertakes to indemnify the Bank for any damage which the Bank may suffer or any liability which it may incur as a result of any noncompliance with the Environmental
Requirements.
			
		  	5.	  	The provisions, undertakings, and indemnification set out in this section shall survive the satisfaction and release of the Security and payment and satisfaction of the indebtedness
and liability of the Borrower to the Bank pursuant to the terms hereof.
		
	EVENTS OF DEFAULT:	  	Notwithstanding that the Credit Facilities are on a demand basis, and without prejudice to the Bank’s rights thereby, the following shall be considered events of
default (“Events of Default”), upon the occurrence of which, or of a Default, the Bank may choose, in its sole discretion, to cancel all credit availability and to demand repayment of the Credit Facilities in full, together with
outstanding accrued interest, fees and any other obligations of the Borrower to the Bank, and, without prejudice to the Bank’s other rights and remedies, the Bank’s Security shall become enforceable:
			
		  	1.	  	Immediately upon failure by any Loan Party to pay any instalment of principal, interest, fees, costs, incidental charges or any other amount payable hereunder or under any of the
Security when due.
			
		  	2.	  	Any material representation or warranty contained in this Offering Letter, the Security, any certificate or any opinion delivered hereunder proves to be untrue.
			
		  	3.	  	Failure by any Loan Party to observe or comply with any Affirmative Covenant, Negative Covenant, Environmental Obligation, condition, or term as outlined herein, or in any Security
document or underlying agreements delivered pursuant hereto (not otherwise specifically dealt with in this Events of Default Section).

			
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		  	4.	  	In the opinion of the Bank, acting reasonably, a Material Adverse Effect in the financial condition of any Loan Party or to the operation of any Loan Party’s assets has
occurred.
			
		  	5.	  	If a petition is filed, an order is made or a resolution passed, or any other proceeding is taken for the winding up, dissolution, or liquidation of any Loan Party.
			
		  	6.	  	If proceedings are taken to enforce any encumbrance on the assets of any Loan Party having a value in the aggregate greater than $300,000, excepting as long as such proceedings are
being contested in good faith by such Loan Party and security satisfactory to the Bank has been provided to the Bank.
			
		  	7.	  	If any Loan Party ceases or threatens to cease to carry on its business, or if proceedings are commenced for the suspension of the business of any Loan Party, or if any proceedings
are commenced under the Companies Creditors Arrangements Act (Canada) or under the Bankruptcy and Insolvency Act (Canada) (including filing a proposal or notice of intention) with respect to any Loan Party, or if any Loan Party commits or threatens
to commit an act of bankruptcy, or if any Loan Party becomes insolvent or bankrupt or makes an authorized assignment pursuant to the Bankruptcy and Insolvency Act (Canada), or a bankruptcy petition is filed by or presented against any Loan
Party.
			
		  	8.	  	If proceedings are commenced to appoint a receiver, receiver/manager, or trustee in respect of the assets of any Loan Party by a court or pursuant to any other
agreement.
			
		  	9.	  	If any Loan Party is in default under the terms of any other contracts, agreements or writings with any other creditor having liens on the property of such Loan Party and such
default could reasonably be expected to result in a Material Adverse Effect.
			
		  	10.	  	If the validity, enforceability or, where applicable, priority of this Offering Letter or any of the Security is prejudiced or endangered.
			
		  	11.	  	If an event of default under any of the Security occurs and is continuing, or any other event which constitutes or which with the giving of notice or lapse of time or otherwise
would constitute an event of default under any of the Security occurs.
			
		  	12.	  	If any event of default under any material agreement to which a Loan Party is a party occurs and is continuing, or any other event which constitutes or which with the giving of
notice or lapse of time or otherwise would constitute an event of default under any material agreement to which a Loan Party is a party occurs.
			
		  	13.	  	If the Bank in good faith believes and has commercially reasonable grounds to believe that the prospect of repayment of any Advance is or is about to be impaired or that the
collateral secured by the Security is or is about to be placed in jeopardy.
			
		  	14.	  	If any Material Adverse Effect occurs.

			
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	INTEREST ON	  	
	OVERDUE AMOUNTS:	  	Notwithstanding any other provision of this Offering Letter, in the event that any amount due hereunder (including, without limitation, any interest payment) is not paid
when due (whether by acceleration or otherwise), the Borrower shall and hereby agrees to pay to the Bank interest on such unpaid amount (including, without limitation, interest on interest), if and to the fullest extent permitted by applicable law,
from the date that such amount is due until the date that such amount is paid in full (but excluding the date of such payment if the payment is made before 10:00 a.m. at the place of payment on the date of such payment), and such interest shall
accrue daily, be calculated and compounded on the last Business Day of each calendar month and be payable in the currency of the relevant Advance on demand, as well after as before maturity, default and judgment, at a rate per annum that is equal
to: (i) the rate of interest then being charged on Prime Rate Loans under the applicable Credit Facility plus 2.00% per annum, for overdue amounts in Canadian Dollars under such Credit Facility; and (ii) the rate of interest then being charged on
Base Rate Loans under the applicable Credit Facility plus 2.00% per annum, for overdue amounts in U.S. Dollars under such Credit Facility. The Borrower hereby waives, to the fullest extent it may do so under applicable law. any provisions of
applicable law, including specifically the Interest Act (Canada) or the Judgment Interest Act (Alberta), which may be inconsistent with this Offering Letter.
		
	COSTS:	  	All reasonable third party expenses incurred by the Bank in connection with the Credit Facilities or this Offering Letter are for the account of the Borrower including,
but not limited to, legal fees (on a solicitor and own client basis) and future engineering fees.
		
	CHANGE OF LAWS:	  	Notwithstanding anything contained in this letter to the contrary, in the event that:
			
		  	1.	  	changes to any existing law or regulation or the introduction of any new law or regulation, or taxes other than income taxes, including, without limitation, a sales tax
on loan transactions, or in the interpretation or administration thereof; or
			
		  	2.	  	compliance by the Bank with any request from or requirement of any central bank or other fiscal or monetary authority having jurisdiction over Canadian banks general
(whether or not such request has the force of law);
		
		  	cause the Bank to:
				
		  		  	a.	  	incur any cost as a result of having entered into and/or performed its obligations hereunder and/or as a result of obligations or options remaining outstanding hereunder including,
without limitation, any reserve or special deposit requirement or any payment on or calculated by reference to the amount of the Credit Facilities hereunder; or
				
		  		  	b.	  	suffer a reduction in the rate of return on that part of its overall capital (not due to the rates of tax payable on their overall profits or net income) as a result of a
requirement to attribute or allocate capital to the Credit Facilities or a Credit Facility provided hereunder in respect of that part of such Credit Facilities or Credit Facility which is for the time being undrawn as a result of a change in the
manner in which the Bank is required to allocate resources to its obligations hereunder,
		
		  	then the Bank reserves the right to increase the charges for the Credit Facilities or such Credit Facility provided hereunder by the amount of such additional cost of
liability as determined by the Bank and the Borrower agrees that it will forthwith on demand pay to the Bank amounts sufficient to reimburse the Bank against such costs or liabilities.

			
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	CURRENT ACCOUNTS:	  	Each Loan Party shall maintain its current accounts at the Calgary Branch of the Bank through which it shall conduct all of its banking activities.
		
		  	Regular Bank service charges shall apply in the day-to-day operations of each Loan Party’s accounts.
		
	GENERAL:	  	Time is of the essence.
		
		  	The terms and conditions of this Offering Letter between the Bank and each Loan Party are confidential and shall be treated accordingly.
		
		  	Each Loan Party shall do all things and execute all documents deemed necessary or appropriate by the Bank for the purposes of giving full force and effect to the terms, conditions,
undertakings, and security granted or to be granted hereunder.
		
		  	When a conflict or inconsistency exists between the Security and this Offering Letter, this Offering Letter shall govern to the extent necessary to remove such conflict or
inconsistency. Notwithstanding the foregoing, if there is any right or remedy of the Bank set out in any of the Security or any part of which is not set out or provided for in this Offering Letter, such additional right shall not constitute a
conflict or inconsistency.
		
	ACCOUNT DEBITS:	  	Each Loan Party hereby irrevocably authorizes the Bank to debit periodically or from time to time, any bank account it may maintain at the Bank in order to pay all or part of the
amounts any Loan Party may owe to the Bank hereunder.
		
	 PERSONAL PROPERTY

SECURITY ACT (ALBERTA)
	  	
	REQUIREMENTS:	  	Each Loan Party hereby waives the requirement for the Bank to provide copies of Personal Property Security Act (Alberta) (collectively with the equivalent legislation in other
jurisdictions, the “PPSA”) registrations, verification statements, or financing statements undertaken by the Bank.
		
		  	Each Loan Party hereby agrees to provide to the Bank written notice of a change in its name or address immediately.
		
	ASSIGNMENT:	  	No rights or obligations of any Loan Party hereunder and no amount of the Credit Facilities may be transferred or assigned by any Loan Party, any such transfer or assignment being
null and void insofar as the Bank is concerned and rendering any balance then outstanding of the loan immediately due and payable at the option of the Bank and releasing the Bank from any and all obligations of making any further advances
hereunder.
		
	DEMAND:	  	Notwithstanding any of the terms of this Offering Letter, all obligations of any Loan Party hereunder are repayable to the Bank at any time upon its demand.
		
	ADJUSTMENTS:	  	Notwithstanding any maximum amount, Availability, Reduction Amount, Pricing Grid, interest rate, margin calculation, Applicable Margin, Standby Fee, Stamping Fee, L/C/G Fee or other
fee quoted herein, the Bank shall have the right to adjust such maximum amount, Availability, Reduction Amount, Pricing Grid, interest rate, margin calculation, Applicable Margin, Standby Fee, Stamping Fee, L/C/G Fee or other fee, at the Bank’s
sole discretion.
		
	NO OBLIGATION:	  	Upon the Bank’s demand for repayment or upon the occurrence of a Default or an Event of Default, the Bank shall have no obligation or liability to make further advances under
the Credit Facilities.

			
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	ACCESS TO	 		  	
	INFORMATION:	 	Each Loan Party hereby authorizes the Bank to use the necessary information pertaining to it which the Bank has or may have for the purpose of granting credit and
insurance products (where permitted by law) and further authorize(s) the Bank to disclose such information to its affiliates and subsidiaries for this same purpose. Moreover, it hereby authorizes the Bank to obtain persona! information pertaining to
it from any party likely to have such information (credit or information bureau, financial institution, creditor, employer, tax authority, public entity, Persons with whom they might have business relations, and affiliates or Bank subsidiaries) in
order to verify the accuracy of all information provided to the Bank and to ensure the solvency of each Loan Party at all times.
	 ANTI-MONEY

LAUNDERING
	 		  	
	LEGISLATION:	 	Each Loan Party acknowledges that, pursuant to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and other applicable anti money laundering,
anti terrorist financing, government sanction and “know your client” laws, whether within Canada or elsewhere (collectively, including any guidelines or orders thereunder, “AML Legislation”), the Bank may be required to
obtain, verify and record information regarding any Loan Party, its directors, authorized signing officers, direct or indirect shareholders or other Persons in control of such Loan Party , and the transactions contemplated hereby. Each Loan Party
shall promptly provide all such information, including supporting documentation and other evidence, as may be reasonably requested by the Bank, or any prospective assign or participant of the Bank, in order to comply with any applicable AML
Legislation, whether now or hereafter in existence.
		
	NOTICE:	 	Notices to be given under this Offering Letter, the Security or any other document in respect thereto any of Loan Party or the Bank shall, except as otherwise
specifically provided, be in writing addressed to the party for whom it is intended Notices shall be given by personal delivery or transmitted by facsimile and shall be deemed to be received on the Business Day of receipt (unless such delivery or
transmission is received after 1:00 p.m. Mountain Time, in which case it shall be deemed to have been received on the following Business Day) unless the law deems a particular notice to be received earlier. The address for each Loan Party shall be
the addresses currently recorded on the records of the Bank for such Loan Party, or such other mailing or facsimile addresses as such Loan Party may from to time may notify the Bank as aforesaid. The address for the Bank shall be the Calgary Branch
of the Bank or such other mailing or facsimile addresses as the Bank may from to time may notify the Borrower as aforesaid.
		
	 AUTHORIZATION

REGARDING
 INSTRUCTIONS
SENT
	 	
	ELECTRONICALLY:	 	Each Loan Party authorizes the Bank to do all things as authorized by such Loan Party even if such authorization is sent by fax or by e-mail and the Bank may deem such
authorization valid and sufficient and the aforementioned presumption of accuracy shall apply to the authorization, whether it is required for transmitting information, a debit, issuing drafts or certified cheques or for any other purpose. Moreover,
the Bank will not be held liable for any fees or delays which may be caused when an instruction is sent whether due to a technical problem attributable to the systems in use at the Bank or otherwise.
		
	PAYMENTS:	 	Unless otherwise indicated herein, the obligation of each Loan Party to make all payments under this Offering Letter and the Security shall be absolute and unconditional
and shall not be limited or affected by any circumstance, including, without limitation:
			
		 	1.	  	Any set-off, compensation, counterclaim, recoupment, defence or other right which such Loan Party may have against the Bank of anyone else for any reason whatsoever;
or

			
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		 	2.	  	Any insolvency, bankruptcy, reorganization or similar proceedings by or against such Loan Party.
		
		 	All payments to be made under this Offering Letter shall be made in Canadian Dollars.
		
		 	All payments made under this Offering Letter shall be made on or prior to 1:00 p.m. Mountain Time on the day such payment is due. Any payment received after 1:00 p.m.
Mountain Time shall be deemed to have been received on the following day. Whenever a payment is due on a day which is not a Business Day, such due day shall be extended to the next Business Day and such extension of time shall be included in the
computation of any interest payable.
		
	SET-OFF:	 	The Bank shall have the right to set-off and apply any funds of any Loan Party deposited with or held by the Bank from time to time, and any other indebtedness owing to
any Loan Party by the Bank, against any of the amounts outstanding under this Offering Letter from time to time.
		
	JUDGMENT CURRENCY:	 	If for the purpose of obtaining judgment in any court in any jurisdiction with respect to this Offering Letter it is necessary to convert into the currency of such
jurisdiction (the “Judgment Currency”) any amount due hereunder in any currency other than the Judgment Currency, then such conversion shall be made at the rate of exchange prevailing on the Business Day before the day on which
judgment is given. For this purpose, rate of exchange means the rate at which the Bank would, on the relevant day, be prepared to sell a similar amount of such currency against the Judgment Currency.
		
	RIGHTS AND REMEDIES	 	
	CUMULATIVE:	 	The rights, remedies and powers of the Bank under this Offering Letter, the Security, at law and in equity are cumulative and not alternative and are not in substitution
for any other remedies, rights or powers of the Bank, and no delay or omission in exercise of any such right, remedy or power shall exhaust such rights, remedies and powers to be construed as a waiver of any of them.
		
	WAIVERS AND	 	
	AMENDMENTS:	 	No term, provision or condition of this Offering Letter or any of the Security, may be waived, varied or amended unless in writing and signed by a duly authorized
officer of the Bank.
		
	INTEREST ACT	 	
	(CANADA):	 	Any interest rate set forth in this Offering Letter based on a period less than a year expressed as an annual rate for the purposes of the Interest Act (Canada) is
equivalent to such interest rate multiplied by the actual number of days in the calendar year in which the same is to be ascertained and divided by the number of days in the period upon which it was based. The Borrower hereby waives, to the fullest
extent it may do so under law, any provisions of law, including specifically the Interest Act (Canada) or the Judgment Interest Act (Alberta), which may be inconsistent with this Offering Letter.
		
	GAAP / IFRS:	 	All financial statements required to be furnished by the Borrower to the Bank hereunder shall be prepared in accordance with GAAP, Each accounting term used in this
Offering Letter, unless otherwise defined herein, has the meaning assigned to it under GAAP and, except as otherwise provided herein, reference to any balance sheet item, statement of income item or statement of cash flows item means such item as
computed from the applicable financial statement prepared in accordance with GAAP.

			
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		  	If there occurs a change in GAAP (an “Accounting Change”), including as a result of a conversion to International Financial Reporting Standards (“IFRS”), and
such change would result in a change (other than an immaterial change) in the calculation of any financial covenant, standard or term used hereunder, then at the request of the Borrower or the Bank, the Borrower and the Bank shall enter into
negotiations to amend such provisions so as to reflect such Accounting Change with the result that the criteria for evaluating the financial condition of the Borrower or any other party, as applicable, shall be the same after such Accounting Change,
as if such Accounting Change had not occurred. If, however, within 30 days of the foregoing request by the Borrower or the Bank, the Borrower and the Bank have not reached agreement on such amendment, the method of calculation shall not be revised
and all amounts to be determined thereunder shall be determined without giving effect to the Accounting Change.
		
	GOVERNING LAW:	  	This Offering Letter shall be construed and governed in accordance with the laws of the Province of Alberta. Each Loan Party irrevocably and unconditionally attorns to the
non-exclusive jurisdiction of the courts of the Province of Alberta and all courts competent to hear appeals therefrom.
		
	REVIEW:	  	Without detracting from the demand nature of the Credit Facilities, the Credit Facilities are subject to periodic review by the Bank in its sole discretion (each such review is
referred to in this Offering Letter as a “Review”). The next Review is scheduled on or before January 1, 2012, but may be set at an earlier or later date at the sole discretion of the Bank.
		
	EXPIRY DATE:	  	This Offering Letter is open for acceptance until August 19, 2011 (as may be extended from time to time as follows, the “Expiry Date”) at which time it shall expire
unless extended by mutual consent in writing. We reserve the right to cancel our offer at any time prior to acceptance.

			
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 If the foregoing terms and conditions are acceptable, please sign two copies of this Offering Letter and
return one copy to the Bank by the Expiry Date. This Offering Letter may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and such counterparts together shall constitute one and
the same agreement. The delivery of a facsimile or other electronic copy of an executed counterpart of this Offering Letter shall be deemed to be valid execution and delivery of this Offering Letter, but the party delivering a facsimile or other
electronic copy shall deliver an original copy of this Offering Letter as soon as possible after delivering the facsimile or other electronic copy. 
 National Bank of Canada appreciates the opportunity of providing this Offering Letter to Legend Energy Canada Ltd. We look forward to a continuing and mutually beneficial relationship. 

Yours truly, 
  

							
		 	NATIONAL BANK OF CANADA	 		 	
				
		 	

	 		 	

	

	 	David K. Forsyth	 		 	John W. Swendsen
	 	Director	 		 	Vice President & Managing Director
	 	Energy Group	 		 	Energy Group

 AGREED AND ACCEPTED this 15 day of August, 2011. 
 LEGEND ENERGY CANADA LTD. 
  

			
	Per:	 	 

		
	Per:	 	  

			
	 Legend Energy Canada Ltd.
 Offering Letter
 August 12, 2011
	  	 Page
 17

  

 APPENDIX A 

 

							
	CREDIT:	  	Energy Group	  	Director:	  	Mr. David Forsyth
		  	National Bank of Canada	  	Telephone:	  	(403) 294-4957
		  	530 – 8 Avenue SW, Suite 2700	  	Facsimile:	  	(403) 294-3078
		  	Calgary, AB T2P 3S8	  	E-mail:	  	david.forsyth@nbcenergy.com
				
		  		  	Associate:	  	Mr. Robert Chorley
		  		  	Telephone:	  	(403) 294-4920
		  		  	Facsimile:	  	(403) 294-3078
		  		  	E-mail:	  	robert.chorley@nbcenergy.com
				
	ADMINISTRATION:	  	BA Administration; Current	  	Account Representative:	  	Ms. Gerry McLean
		  	Account Documents; L/C/Gs;	  	Telephone:	  	(403) 294-4922
		  	MasterCard; Loan/Account	  	Facsimile:	  	(403) 294-3078
		  	Balances; CAD/USD Money	  	E-mail:	  	gerry.mclean@nbcenergy.com
		  	Orders; / Bank Drafts; Bank	  		  	
		  	Confirmations; Investments;	  		  	
		  	General Inquiries	  		  	
				
	BRANCH:	  	Calgary Branch	  	Telephone:	  	(403) 294-4900
		  	National Bank of Canada	  	Facsimile:	  	(403) 294-4965
		  	301 – 6 Avenue SW	  		  	
		  	Calgary, AB T2P 4M9	  		  	
				
	INTERNET/	  	Order Cheques, Loan/Account	  	Website:	  	www.nbc.ca
	TELEPHONE	  	Balances; Traces; Stop Payments,	  	Telephone:	  	(888) 483-5628
	BANKING	  	List of Current Account	  		  	
		  	Transactions; Pay Bills; Transfer	  		  	
		  	Between Accounts	  		  	
				
	OTHER:	  	Internet Banking	  	Manager,	  	Ms. Kathy Holland
		  		  	Global Cash Management:	  	(403) 294-4948
		  		  	Telephone:	  	(403) 294-4993
		  		  	Facsimile:	  	kholland@nbc.ca
		  		  	E-mail:	  	
				
		  	Foreign Exchange & Interest	  	Director – FX	  	Mr. George Androulidakis
		  	Rates	  	Telephone:	  	(403) 440-1126
		  	National Bank of Canada	  	Facsimile:	  	(403) 294-4993
		  	530 – 8 Avenue SW, Suite 2700	  	E-mail:	  	george.androulidakis@tres.bnc.ca
		  	Calgary, AB T2P 3S8	  		  	
				
		  	Commodity Derivatives	  	Telephone:	  	(403) 294-4935
		  	530 – 8 Avenue SW, Suite 2700	  	Facsimile:	  	(403) 294-4993
		  	Calgary, AB T2P 3S8	  	E-mail:	  	energy@nbcenergy.com

			
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 Offering Letter
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 APPENDIX B 

COMPLIANCE CERTIFICATE 
  

	To:	National Bank of Canada 

 530 –
8th Ave SW, Suite 2700 

Calgary, AB 
 I
                                        , of the
City of                             , in the Province of
                            , hereby certify as at the date of this Certificate as follows: 

 

	1.	I am the
                                         of
Legend Energy Canada Ltd. (the “Borrower”) and I am authorized to provide this Certificate to you for and on behalf of the Borrower; 

  

	2.	This Certificate applies to the fiscal quarter ended
                    ,             ; 

 

	3.	I am familiar with and have examined the provisions of the Offering Letter dated August 12, 2011, as amended from time to time, between the Borrower and National
Bank of Canada and I have made such investigations of corporate records and inquiries of other officers and senior personnel of each Loan Party as I have deemed reasonably necessary for purposes of the Certificate; 

 

	4.	As of the date hereof, the Borrower confirms that all of its subsidiaries (if any) are Loan Parties. 

 

	5.	The representations and warranties set forth in the Offering Letter are in all material respects true and correct on the date hereof; 

 

	6.	No Default or Event of Default has occurred and is continuing of which we are aware; 

 

	7.	As required, I have calculated the Adjusted Working Capital Ratio for the fiscal quarter ended as follows: 

                 : 1.00; and 

 

	8.	All relevant calculations and financial statements are attached. 

 Except where the context otherwise requires, all capitalized terms used herein have the same meanings as given thereto in the Offering Letter. 
 This Certificate is given by the undersigned officer in their capacity as an officer of the Borrower without any personal liability on the part of such officer. 

Executed at the City of                     , in the
Province of                      this              day of
                    , 20    . 
 Yours truly, 
 LEGEND ENERGY CANADA LTD. 

 

			
	Per:	 	  

		 	Name:
		 	Title:

			
	 Legend Energy Canada Ltd.
 Offering Letter
 August 12, 2011
	  	 Page
 19

  

 LEGEND ENERGY CANADA LTD. 

COMPLIANCE CERTIFICATE 

Calculation of Adjusted Working Capital Ratio 
  

					
	 Current Assets
	  			
		
	 Current assets
	  	$	 	  
	 Less: Unrealized Hedging Gains
	  	 	(            	) 
	 Add: Undrawn Availability under Credit Facility A
	  			
		  	  
	  
	 
		  	$	 (A	) 
		  	  
	  
	 
		
	 Current Liabilities
	  			
		
	 Current liabilities
	  	$	 	  
	 Less: Unrealized Hedging Losses
	  	 	(            	) 
	 Less: Current Portion of Bank Debt
	  	 	(            	) 
		  	  
	  
	 
		  	$	 (B	) 
		  	  
	  
	 

 Adjusted Working Capital Ratio calculated as follows: 

 

	
	
        A               
 =

	         B

			
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 Offering Letter
 August 12, 2011
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 APPENDIX C 

DEFINITIONS 
 In the
Offering Letter, including all Appendices to the Offering Letter, and in all notices given pursuant to the Offering Letter, unless something in the subject matter or context is inconsistent therewith, capitalized words and phrases shall have the
meanings given to them in the Offering Letter in their proper context, and capitalized words and phrases not otherwise defined in the Offering Letter shall have the following meanings: 
 “Adjusted Working Capital Ratio” means the ratio of (i) Current Assets plus undrawn Availability under Credit Facility A to (ii) Current Liabilities. 

“Advance” means an advance of funds made by the Bank under a Credit Facility to the Borrower, or if the context so requires, an advance
of funds under one or more of the Credit Facilities or under one or more of the availability options of one or more of the Credit Facilities, and any reference relating to the amount of Advances shall mean the sum of the principal amount of all
outstanding Prime Rate Loans and Base Rate Loans, plus the Face Amount of all outstanding BAs and the stated amount of all L/C/Gs as applicable. 
 “Appendix” means an appendix to the Offering Letter. 
 “Applicable
Margin” means, at any time, a margin, expressed as a rate per annum based on a 365 or 366 day period, as the case may be, for Prime Rate Loans, Base Rate Loans and payment of Standby Fees and L/C/G Fees, or based on a 365 day period in the
case of Stamping Fees, and in any case payable to the Bank, as set out in the Pricing Grid for Facility A under the then Net Debt to Cash Flow Ratio applicable to the type of Advance. 
 “Availability” has the meaning ascribed to such term under the section heading “Availability”, with respect to the applicable Credit Facility. 

“bps” means one one-hundredth of one percent. 
 “Business Day” means a day on which banks are open for business in Calgary, Alberta, Montreal, Quebec and Toronto, Ontario; but does not, in any event, include a Saturday or Sunday.

 “Calgary Branch of the Bank” means the branch of the Bank at 301 – 6 Avenue SW, Calgary, AB T2P 4M9, fax
(403) 294-4965, or such other address as the Bank may notify the Borrower from time to time. 
 “Canadian Dollars”,
“Cdn Dollars”, “Cdn$” , “CA$” and “$” mean the lawful money of Canada. 

“Capital Lease” means, with respect to any Person, any lease or other arrangement relating to real or personal property which should, in
accordance with GAAP, be accounted for as a capital lease on a balance sheet of such Person but excluding any lease that would in accordance with GAAP be determined to be an operating lease. 
 “Cash Flow” means, at any time, the annualized cash flow of the Borrower on a consolidated basis for the most recent fiscal quarter as determined from its quarterly financial statements
for that fiscal quarter, which for certainty means an annualized aggregate amount expressed in Canadian Dollars of the sum, without duplication, of its: 
  

	 	(a)	net earnings (but excluding from the determination of net earnings, non-cash income, unrealized mark to market gains, Capital Lease payments, any abandonment costs paid
in cash, cash taxes and any extraordinary or nonrecurring earnings, gains, and losses); 

  

	 	(b)	depletion, depreciation, accretion and amortization; 

  

	 	(c)	exploration and evaluation expenses to the extent deducted from Net Income; 

 

	 	(d)	future income taxes; and 

  

	 	(e)	other charges to operations not requiring a current cash payment, 

 it being acknowledged that such annualized cash flow shall be adjusted for such other amounts as reasonably requested by the Bank during such fiscal quarter. 

			
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 “Change of Control” means the occurrence of any of the following events, with respect
to any Loan Party: 
  

	 	(a)	any Person or Persons acting jointly or in concert (within the meaning of the Securities Act (Alberta)), shall beneficially, directly or indirectly, hold or exercise
control or direction over and/or has the right to acquire or control or exercise direction over (whether such right is exercisable immediately or only after the passage of time) more than 20% of the issued and outstanding Voting Shares of such Loan
Party; or 

  

	 	(b)	during any period of two consecutive years, individuals who at the beginning of such period constitute the board of directors of such Loan Party cease, for any reason,
to constitute at least a majority of the board of directors of such Loan Party unless the election or nomination for election of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors
at the beginning of the period (the “Incumbent Directors”) and in particular, any new director who assumes office in connection with or as a result of any actual or threatened proxy or other election contest of the board of directors of
the Borrower shall never be an Incumbent Director; or 

  

	 	(c)	such Loan Party ceases to own, control or direct 100% of the Voting Shares of a subsidiary. 

 “Compliance Certificate” means a certificate of an officer of the Borrower signed on its behalf by the president, chief executive officer, chief operating officer, chief financial officer
or any vice president of the Borrower, substantially in the form annexed hereto as Appendix B, to be given to the Bank by the Borrower from time to time pursuant to the Offering Letter. 
 “Credit Facilities” means the credit facility(ies) (and the risk management facility) to be made available to the Borrower by the Bank in accordance with the provisions of the Offering
Letter. 
 “Current Assets” means, as at any date of determination, the current assets of the Borrower on a consolidated basis
for such date as determined in accordance with generally accepted accounting principles but excluding the impact of any Unrealized Hedging Gains. 
 “Current Liabilities” means, as at any dale of determination, the current liabilities of the Borrower on a consolidated basis for such date as determined in accordance with generally
accepted accounting principles but excluding: (i) Current Portion of Bank Debt; and (ii) the impact of any Unrealized Hedging Losses. 

“Current Portion of Bank Debt” means any current liabilities under the Credit Facilities other than those that arise due to total
advances under a Credit Facility exceeding the maximum amount of such Credit Facility, whether by reduction of maximum amount, fluctuations in exchange rates, or due to mandatory repayments, or due to the occurrence of a Default or an Event of
Default, or due to the Bank’s demand for repayment. 
 “Debt” means, as at any date of determination, all obligations,
liabilities and indebtedness of the Borrower which would, in accordance with generally accepted accounting principles, be classified upon a consolidated balance sheet of the Borrower for such date as indebtedness for borrowed money and, without
limiting the generality of the foregoing, whether or not so classified, shall include (without duplication): 
  

	 	(a)	obligations under BAs; 

  

	 	(b)	issued and drawn L/C/Gs; 

  

	 	(c)	obligations under guarantees, indemnities, or such other agreements providing financial assistance; 

 

	 	(d)	Capital Leases or sales/lease-backs; 

  

	 	(e)	obligations under deferred purchase price agreements; 

  

	 	(f)	deferred revenues relating to third party obligations; 

  

	 	(g)	the redemption amount of any capital where the holder of such capital has the option to require the redemption of such capital for cash or property and payment of the
redemption amounts; 

			
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 Offering Letter
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	 	(h)	any distributions declared but not yet paid; and 

  

	 	(i)	all mark to market losses under any Financial Instruments that are due and owing. 

 “Default” means any event or condition which, with the giving of notice, lapse of time or both, or upon a declaration or determination being made (or any combination thereof), would
constitute an Event of Default. 
 “Face Amount” means (i) in respect of a BA, the amount payable to the holder thereof on
its maturity, and (ii) in respect of a L/C/G, the maximum amount payable to the beneficiary specified therein or any other Person to whom payments may be required to be made pursuant to such L/C/G. 

“Federal Funds Effective Rate” means, on any day, the rate of interest per annum for that day set forth in the weekly statistical
release designated as H.15(519), or any successor publication, published by the Federal Reserve Board (the “H. 15(519)”) opposite the caption “Federal Funds (Effective)” and, if on any day such rate is not yet published in H.
15(519), the rate for such day will be the rate set forth in the Composite 3:30 p.m. Quotations for US Government Securities, or any successor publication, for such day published by the Federal Reserve Board (the “Composite 3:30 p.m.
Quotations”) under the caption “Federal Funds Effective Rate”; provided that if such rate is not yet published in either H.15(519) or the Composite 3:30 p.m. Quotations, such rate will be the average of the interest rates per annum
quoted for such day on overnight Federal funds (such words to have the meaning generally given to them by money market brokers of recognized standing doing business in the United States of America) transactions received by the Bank from three
Federal funds brokers of recognized standing selected by the Bank; 
 “Financial Instrument” means any currency swap agreement,
cross-currency agreement, interest swap agreement, agreement for the making or taking of delivery of any commodity, commodity swap agreement, forward agreement, floor, cap or collar agreement, futures or options, insurance or other similar risk
management agreement or arrangement, or any combination thereof, to be entered into by the Borrower where (i) the subject matter of the same is interest rates or the price, value or amount payable thereunder is dependent or based upon the
interest rates or fluctuations in interest rates in effect from time to time (but, for certainty, shall exclude conventional floating rate debt) (ii) the subject matter of the same is currency exchange rates or the price, value or amount
payable thereunder is dependent or based upon currency exchange rates or fluctuations in currency exchange rates as in effect from time to time, or (iii) the subject matter of the same is any commodity or the price, value or amount payable
thereunder is dependent or based upon the price of any commodity or fluctuations in the price of any commodity. 
 “Generally Accepted
Accounting Principles” or “GAAP” means generally accepted accounting principles consistently applied which are in effect from time to time, as published in the Handbook of the Canadian Institute of Chartered Accountants and
other primary sources recognized from time to time by the Canadian Institute of Chartered Accountants. 
 “ISDA Master
Agreement” means an International Swap and Derivatives Association, Inc. Master Agreement (Multi Currency - Cross-Border) as from time to time amended, restated or replaced by the International Swap and Derivatives Association, Inc.,
including the schedule thereto and any confirmation thereunder as entered into by the Borrower with any counterparty thereto. 

“Material Adverse Effect” means a material adverse effect on: 

 

	 	(a)	the business, financial condition, operations, assets or capitalization of the Borrower on a consolidated basis and taken as a whole; 

 

	 	(b)	the ability of any Loan Party to pay or perform the obligations under this Offering Letter or the ability of any Loan Party to pay or perform any of its obligations or
contingent obligations under any Security or any underlying agreements or document delivered pursuant to this Offering Letter or the Security; 

  

	 	(c)	the ability of any Loan Party to perform it obligations under any material contract, if it would also have a material adverse effect on the ability of such Loan Party
to pay or perform its obligations under this Offering Letter, the Security, or any underlying agreements or documents delivered pursuant to this Offering Letter or the Security; 

			
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 Offering Letter
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	 	(d)	the validity or enforceability of this Offering Letter, the Security, or any underlying agreements or documents delivered pursuant to this Offering Letter or the
Security; and 

  

	 	(e)	the priority ranking of any security interests granted by this Offering Letter, the Security, or any underlying agreements or documents delivered pursuant to this
Offering Letter or the Security, or the rights or remedies intended or purported to be granted to the Bank under or pursuant to this Offering Letter, the Security, or any underlying agreements or documents delivered pursuant to this Offering Letter
or the Security. 

 “Net Debt” means at any time, on a consolidated basis, the aggregate amount (without
duplication ) expressed in Canadian Dollars of (a) Working Capital Deficit plus (b) Debt. 
 “Net Debt to Cash Flow
Ratio” means at any time, the ratio of (i) Net Debt to (ii) Cash Flow. 
 “Offering Letter” means the
offering letter to which this appendix is appended, and any appendices thereto, as amended, supplemented, modified, restated or replaced from time to time. 
 “Permitted Contest” means action taken by a Loan Party in good faith by the appropriate proceedings diligently pursued to contest a tax, claim or security interest, provided that:

  

	 	(a)	such Loan Party has established reasonable reserves therefor in accordance with GAAP; 

 

	 	(b)	proceeding with such contest does not have, and would not reasonably be expected to have, a Material Adverse Effect; and 

 

	 	(c)	proceeding with such contest will not create a material risk of sale, forfeiture or loss of, or interference with the use or operation of, a material part of the
property, assets or undertaking of any Loan Party. 

 “Permitted Encumbrance” means at any particular time any of
the following encumbrances on the property or any part of the property of any Loan Party: 
  

	 	(a)	liens for taxes, assessments or governmental charges not at the time due or delinquent or, if due or delinquent, the validity of which is being contested at the time by
a Permitted Contest; 

  

	 	(b)	liens under or pursuant to any judgment rendered, or claim filed, against a Loan Party, which such Loan Party shall be contesting at the time by a Permitted Contest;

  

	 	(c)	undetermined or inchoate liens and charges incidental to construction or current operations which have not at such time been filed pursuant to law against any Loan
Party or which relate to obligations not due or delinquent, or, if due or delinquent, the validity of which is being contested at the time by a Permitted Contest; 

 

	 	(d)	easements, rights-of-way, servitudes or other similar rights in land (including, without in any way limiting the generality of the foregoing, rights-of-way and
servitudes for railways, sewers, drains, gas and oil and other pipelines, gas and water mains, electric light and power and telecommunication, telephone or telegraph or cable television conduits, poles, wires and cables) granted to or reserved or
taken by other Persons which individually or in the aggregate do not materially detract from the value of the land concerned or materially impair its use in the operation of the business of any Loan Party; 

 

	 	(e)	security given by any Loan Party to a public utility or any municipality or governmental or other public authority when required by such utility or municipality or
other authority in connection with the operations of such Loan Party, ail in the ordinary course of its business which individually or in the aggregate do not materially detract from the value of the asset concerned or materially impair its use in
the operation of the business of any Loan Party; 

  

	 	(f)	the reservation in any original grants from the Crown of any land or interests therein and statutory exceptions to title; 

			
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 Offering Letter
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	 	(g)	security interests in favour of the Bank securing the obligations of any Loan Party under the Offering Letter or the Security; 

 

	 	(h)	the Security; 

  

	 	(i)	liens incurred or created in the ordinary course of business and in accordance with sound industry practice in respect of the exploration, development or operation of
petroleum or natural gas interests, related production or processing facilities in which such Person has an interest or the transmission of petroleum or natural gas as security in favour of any other Person conducting the exploration, development,
operation or transmission of the property to which such liens relate, for any Loan Party’s portion of the costs and expenses of such exploration, development, operation or transmission, provided that such costs or expenses are not due or
delinquent or, if due or delinquent, the validity of which is being contested at the time by a Permitted Contest; 

  

	 	(j)	liens for penalties arising under non-participation or independent operations provisions of operating or similar agreements in respect of any Loan Party’s
petroleum or natural gas interests, provided that such liens do not materially detract from the value of any material part of the property of any Loan Party; 

 

	 	(k)	any right of first refusal in favour of any Person granted in the ordinary course of business with respect to all or any of the petroleum or natural gas interests of
any Loan Party; 

  

	 	(1)	any encumbrance or agreement entered into in the ordinary course of business relating to pooling or a plan of unitization affecting the property of any Loan Party, or
any part thereof; 

  

	 	(m)	the right reserved or vested in any municipality or governmental or other public authority by the terms of any petroleum or natural gas leases or similar agreements in
which any Loan Party has any interest or by any statutory provision to terminate petroleum or natural gas leases or similar agreements in which any Loan Party has any interest, or to require annual or other periodic payments as a condition of the
continuance thereof; 

  

	 	(n)	obligations of any Loan Party to deliver petroleum, natural gas, chemicals, minerals or other products to buyers thereof in the ordinary course of business; and

  

	 	(o)	royalties, net profits and other interests and obligations arising in accordance with standard industry practice and in the ordinary course of business, under petroleum
or natural gas leases or similar agreements in which any Loan Party has any interest. 

 “Person” or
“person” means and includes an individual, a partnership, a corporation, a joint stock company, a trust, an unincorporated association, a joint venture or other entity or a government or any agency or political subdivision thereof.

 “Prime Rate” means the rate of interest per annum, based on a 365 or 366 day period, as the case may be, in effect from time
to time that is equal to the greater of: 
  

	 	(a)	the rate of interest publicly announced by the Bank from time to time as being its reference rate then in effect for determining interest rates for commercial loans in
Canadian Dollars made by the Bank in Canada; and 

  

	 	(b)	the average annual rate (rounded upwards, if necessary, to 0.01%) as determined by the Bank as being the average of the “BA 1 month” CDOR Rate applicable to
bankers’ acceptances in Canadian Dollars displayed and identified as such on the “Reuters Screen CDOR Page” (as defined in the International Swap and Derivatives Association, Inc. definitions, as modified and amended from time to
time) plus 1.00%; provided that if such rates do not appear on the Reuters Screen CDOR Page as contemplated, then the CDOR Rate on any day shall be calculated as the arithmetic average of the 30-day discount rates applicable to bankers’
acceptances in Canadian Dollars quoted by three major Canadian Schedule 1 chartered banks chosen by the Bank as of approximately 10:00 a.m. on such day, or if such day is not a Business Day, then on the immediately preceding Business Day.

			
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 Offering Letter
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 “Retractable Preferred Shares” means preferred shares of the Borrower which are
retractable at the option of the holder. 
 “Stamping Fee” means, at any time, a margin, expressed as a rate per annum based on
a 365 day period, charged by the Bank for accepting and stamping BAs. 
 “Unrealized Hedging Gains” means mark to market
unrealized gains in respect of Financial Instruments or other risk management products recorded in accordance with generally accepted accounting principles. 
 “Unrealized Hedging Losses” means mark to market unrealized losses in respect of Financial Instruments or other risk management products recorded in accordance with generally accepted
accounting principles. 
 “U.S. Base Rate” means the rate of interest per annum, based on a 365 or 366 day period, as the case
may be, in effect from time to time that is equal to the greater of: 
  

	 	(a)	the rate of interest publicly announced by the Bank from time to time as being its reference rate then in effect for determining interest rates for commercial loans in
U.S.$ made by the Bank in Canada; and 

  

	 	(b)	the Federal Funds Effective Rate in effect from time to time multiplied by 365/366, plus a margin on one half (1/2) of one (1) percent (0.50%).

 “U.S. Dollar” and the symbol “U.S.$” each means lawful money of the United States of America
in same day immediately available funds and, if such funds are not available, the form of money of the United States of America that is customarily used in the settlement of international banking transactions on the day payment is due. 

“Voting Shares” means: 
  

	 	(a)	in respect of a corporation or limited liability company, shares of any class or equity ownership interests of such entity: 

 

	 	(i)	carrying voting rights in all circumstances; or 

  

	 	(ii)	which carry the right to vote conditional on the happening of an event if such event shall have occurred and be continuing; 

provided that subparagraph (ii) above shall not include voting rights created solely by statute, such as those rights created
pursuant to section 183(4) of the Business Corporations Act (Alberta) as in effect on the date of the Offering Letter; 
  

	 	(b)	in respect of a trust, trust units of the trust: 

  

	 	(i)	carrying voting rights in all circumstances; or 

  

	 	(ii)	which carry the right to vote conditional on the happening of an event if such event shall have occurred and be continuing; 

 

	 	(c)	in respect of a partnership, the partnership interests or partnership units: 

 

	 	(i)	carrying voting rights in all circumstances; or 

  

	 	(ii)	which carry the right to vote conditional on the happening of an event if such event shall have occurred and is continuing. 

“Working Capital Deficit” means Current Liabilities minus Current Assets.Amarin Corporation plc 2011 Stock Incentive Plan

 Exhibit 4.1 
 AMARIN CORPORATION PLC 
 2011 STOCK INCENTIVE PLAN 

Section 1. Purpose  
 The
Amarin Corporation plc 2011 Stock Incentive Plan, (the “Plan”) is intended to promote the interests of Amarin Corporation plc (the “Company”) and its shareholders by aiding the Company in attracting and retaining Employees,
officers, Consultants and non-Employee Directors capable of assuring the future success of the Company, offering such persons incentives to put forth maximum efforts for the success of the Company’s business and affording such persons an
opportunity to acquire a proprietary interest in the Company. The Plan will provide a means by which Eligible Persons may acquire Shares of the Company pursuant to Awards to purchase a specified number of Shares, subject to the conditions and
restrictions contained herein. This Plan is subject to approval by the shareholders of the Company. 
 Section 2. Definitions
 
 As used in the Plan, the following terms shall have the meanings set forth below: 

 

	 	(a)	“2002 Plan” shall mean the Company’s 2002 Stock Option Plan as amended from time to time. 

 

	 	(b)	“ADSs” shall mean the American Depositary Shares, representing ordinary shares of the Company, issued under the Company’s American Depositary Receipt
facility. 

  

	 	(c)	“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. 

  

	 	(d)	“Applicable Laws” means the legal and regulatory requirements relating to stock options, if any, pursuant to English Law, U.S. state corporate laws, U.S.
federal and state securities laws, the Code and the rules of any applicable stock exchange. 

  

	 	(e)	“Award” shall mean any Option, Restricted Stock Unit or Shares not subject to restrictions granted under the Plan. 

 

	 	(f)	“Award Agreement” shall mean any written agreement, contract or other instrument or document evidencing any Award granted under the Plan.

  

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

  

	 	(h)	“Cause” shall mean willful misconduct with respect to, or that is harmful to, the Company or any of its Affiliates including, without limitation, dishonesty,
fraud, unauthorized use or disclosure of confidential information or trade secrets or other misconduct (including, without limitation, conviction for a felony), in each case as reasonably determined by the Committee. 

 

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

  

	 	(j)	“Committee” shall mean the Remuneration Committee of Directors designated by the Board to administer the Plan. 

 

	 	(k)	“Company” shall mean Amarin Corporation plc (an English company, registered number 2353920) and any successor corporation. 

 

	 	(l)	“Consultant” means any natural person, including an advisor or Director, who is engaged by the Company or any Affiliate including any Parent or Subsidiary to
render bona fide services and who is not an Employee, and such services are not in connection with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the
Company’s securities. 

  

	 	(m)	 “Continuous Status as an Employee or Consultant” means the absence of any interruption or termination of service as an Employee or
Consultant. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of: (i) vacation, sick leave, military leave or any other leave of absence

	 	
approved by Company management or the Committee, provided that such leave is for a period of not more than ninety (90) days or such longer period as is separately approved by the Committee,
unless re-employment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; (ii) transfers between locations of the Company or between the
Company, its Affiliates or their respective successors; or (iii) a change in status from an Employee to a Consultant or from a Consultant to an Employee. 

 

	 	(n)	“Control” means the ownership of more than fifty (50)% of the issued share capital or other equity interest of the Company or the legal power to direct or
cause the direction of the general management and policies of the Company. 

  

	 	(o)	“Covered Employee” means an employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code. 

 

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

  

	 	(q)	“Eligible Person” shall mean any Employee, officer, Consultant or Director providing services to the Company or any Affiliate whom the Committee determines to
be an Eligible Person. 

  

	 	(r)	“Employee” means any person, including officers and/or Directors (who meet the requirements of this Section), employed by the Company or any Affiliate of the
Company, with the status of employment determined based upon such minimum number of hours or periods worked as shall be determined by Company management or the Committee in its discretion, subject to any requirements of the Code. The payment of a
Director’s fee by the Company to a Director shall not alone be sufficient to constitute “employment” of such Director by the Company. 

  

	 	(s)	“Fair Market Value” shall mean, as of any date, the fair market value of Shares determined as follows: 

 

	 	(i)	If the Shares are listed on any established stock exchange or a national market system, including without limitation any national trading market operated by the NASDAQ
Stock Market LLC (“NASDAQ”), its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as reported by such system or exchange, or, if there is more than one such system or
exchange, the system or exchange with the greatest volume of trading in Shares, for the market trading day on the date of determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable;

  

	 	(ii)	If the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid
and low asked prices for the Shares for the market trading day on the date of determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable; or 

 

	 	(iii)	In the absence of an established market for the Shares, the Fair Market Value thereof shall be determined in good faith by the Committee. 

 

	 	(t)	“Grant Date” shall mean the date on which the Award is granted to the Participant by the Committee, as set forth in the Award Agreement.

  

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

  

	 	(v)	“ISO limit” shall mean the lesser of the Plan Limit (as defined in Section 4) or 14,314,887 million Shares, subject to adjustment as provided in the
Plan and subject to the provisions of Section 422 or 424 of the Code or any successor provisions. 

  

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

  

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

 

	 	(y)	“Optionee” shall mean a Participant who has been granted an Option. 

 

	 	(z)	“Parent” shall have the meaning set forth in Section 424(e) of the Code or any successor provision. 

 

	 	(aa)	“Participant” shall mean an Eligible Person who has been granted an Award under the Plan. 

  
 2 

	 	(bb)	“Performance-Based Award” means any Restricted Stock Units granted to a Covered Employee that is intended to qualify as “performance-based
compensation” under Section 162(m) of the Code and the regulations promulgated thereunder. 

  

	 	(cc)	“Performance Criteria” means the criteria that the Committee selects for purposes of establishing the Performance Goal or Performance Goals for an individual
for a Performance Cycle. The Performance Criteria (which shall be applicable to the organizational level specified by the Committee, including, but not limited to, the Company or a unit, division, group, or Subsidiary of the Company) that will be
used to establish Performance Goals are limited to the following: earnings before interest, taxes, depreciation and amortization, net income (loss) (either before or after interest, taxes, depreciation and/or amortization), changes in the market
price of the Shares, economic value-added, funds from operations or similar measure, sales or revenue, development, clinical or regulatory milestones, acquisitions or strategic transactions, operating income (loss), cash flow (including, but not
limited to, operating cash flow and free cash flow), return on capital, assets, equity, or investment, stockholder returns, return on sales, gross or net profit levels, productivity, expense, margins, operating efficiency, customer satisfaction,
working capital, earnings (loss) per Share, sales or market shares and number of customers, any of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group.

  

	 	(dd)	“Performance Cycle” means one or more periods of time, which may be of varying and overlapping durations, as the Committee may select, over which the
attainment of one or more Performance Criteria will be measured for the purpose of determining a Participant’s right to and the payment of Restricted Stock Units. Each such period shall not be less than 12 months. 

 

	 	(ee)	“Performance Goals” means, for a Performance Cycle, the specific goals established in writing by the Committee for a Performance Cycle based upon the
Performance Criteria. 

  

	 	(ff)	“Person” shall mean any individual, corporation, partnership, association or trust. 

 

	 	(gg)	“Plan” shall mean the Amarin Corporation plc 2011 Stock Incentive Plan, as amended from time to time, the provisions of which are set forth herein.

  

	 	(hh)	“Restricted Stock Unit” means a unit representing the right to receive a payment in cash or Shares in the future granted under Section 6(b) of the Plan.

  

	 	(ii)	“Share” or “Shares” shall mean the Company’s ordinary shares of £0.50 each or any ADSs (or equivalent security) as the case may be. If at
any time ADSs or Shares are registered under the Securities Exchange Act of 1934, at least two members of the Committee shall qualify as non-Employee Directors within the meaning of Securities and Exchange Commission Regulation
Section 240.16b-3. 

  

	 	(jj)	“Subsidiary” of the Company shall have the meaning set forth in Section 424(f) of the Code or any successor provision. 

Section 3. Administration  
  

	 	(a)	Power and Authority of the Committee. The Plan shall be administered by the Committee. Subject to the express provisions of the Plan and to applicable law, the
Committee shall have full power and authority to: 

  

	 	(i)	determine the Fair Market Value of the Shares, in accordance with the provisions of the Plan; 

 

	 	(ii)	select the Eligible Persons to whom Awards may from time to time be granted hereunder; 

 

	 	(iii)	determine whether and to what extent Awards are granted hereunder; 

  

	 	(iv)	grant Awards and to determine the exercise price, the term, the number and type of Shares and the vesting standards applicable to each such Award and any other terms,
conditions and/or restrictions applicable to each such Award; 

  

	 	(v)	approve forms of agreement for use under the Plan; 

  

	 	(vi)	construe and interpret the terms of the Plan and Awards granted under the Plan; 

 

	 	(vii)	determine whether and under what circumstances an Award may be settled in Shares, cash or other consideration; and 

  
 3 

	 	(viii)	make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 

Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon any Participant, any holder or beneficiary of any Award and any employee of the Company or
any Affiliate. 
  

	 	(b)	Delegation. The Committee may delegate its powers and duties under the Plan to one or more Directors or to one or more officers of the Company, subject to such
terms, conditions and limitations as the Committee may establish in its sole discretion. The Committee may also employ attorneys, consultants, accountants or other professional advisors and shall be entitled to rely upon the advice, opinions or
valuations of any such advisors. 

  

	 	(c)	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 Plan. 

  

	 	(d)	Effect of Committee’s Decision. All decisions, determinations and interpretations of the Committee shall be final and binding on all Participants.

  

	 	(e)	Liability; Indemnification. No member of the Committee, no member of the Board, or any individual to whom duties have been delegated, shall be personally liable
for any action, interpretation or determination made with respect to the Plan or Awards made thereunder, and each member of the Committee and of the Board shall be fully indemnified and protected by the Company with respect to any liability he or
she may incur with respect to such action, interpretation or determination, to the extent permitted by applicable law. 

Section 4. Shares Available for Awards 
  

	 	(a)	Shares Available. Subject to adjustment as provided in Section 4(c) of the Plan, the number of Shares in respect of which Awards may be made under this Plan
on any day shall not exceed the sum of (i) 3.5 million Shares, (ii) the number of Shares that remain available for grants under the 2002 Plan as of the Effective Date and (iii) the number of Shares subject to grants under the
2002 Plan that are outstanding as of the Effective Date but subsequently become Lapsed Awards (as defined below) (“the Plan Limit”). Shares to be issued under the Plan may be either authorized but unissued Shares, or Shares acquired in the
open market or otherwise. If any award over Shares granted under this Plan or the 2002 Plan expires or is forfeited, surrendered, canceled or otherwise terminated in whole or in part without Shares being issued (“Lapsed Award”), then the
Shares subject to such Lapsed Award may, at the discretion of the Committee, be made available for subsequent grants under the Plan. Notwithstanding the foregoing, the number of Shares available for granting Incentive Stock Options under the Plan
shall not exceed the ISO Limit, and Options with respect to no more than 3.5 million Shares may be granted to any one individual Participant during any one calendar year period. 

 

	 	(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 Grant Date of such Award against the aggregate number of Shares available for granting Awards under the Plan. 

 

	 	(c)	Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization,
stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or other similar corporate transaction or event that affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, then the Committee will, in such manner as it may deem equitable and proportionate, adjust any or all of (i) the number and type of Shares (or other securities or other property) that
thereafter may be made the subject of Awards, (ii) the number and type of Shares (or other securities or other property) subject to outstanding Awards and (iii) the purchase or exercise price with respect to any Award; provided,
however, that the number of Shares covered by any Award or to which such Award relates shall always be a whole number. 

  

  
 4 

 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. 

Section 6. Awards  
  

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

  

	 	(i)	Option Grant. Options granted herein may be either Incentive Stock Options within the meaning of Section 422 of the Code, as amended or Non-Qualified Stock
Options. Incentive Stock Options may only be granted to full or part-time Employees (but only to the extent such Employees are considered common law employees), and an Incentive Stock Option shall not be granted to an Employee of an Affiliate unless
such Affiliate is also a Subsidiary or Parent of the Company. Any Option not designated as an Incentive Stock Option shall be deemed a Non-Qualified Stock Option. In addition, if at any time an Option designated as an Incentive Stock Option fails to
meet the requirements of Section 422 of the Code, it shall be redesignated as a Non-Qualified Stock Option on the date of such failure for income tax purposes automatically without further action by the Committee. Subject to the provisions of
the Plan, the Committee shall, from time to time, determine the terms, conditions and restrictions upon which Options shall be granted. 

  

	 	(ii)	Exercise Price. Subject to the adjustment provisions above, the purchase price per Share purchasable under an Option shall be determined by the Committee;
provided, however, that such purchase price shall not be less than 100% of the Fair Market Value of a Share on the Grant Date of such Option. 

 

	 	(iii)	Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the
Committee (in its sole discretion) and may consist entirely of (a) cash or check, (b) for nonqualified stock options only, cancellation of indebtedness of the Company to Optionee, (c) surrender of other Shares that (i) have been
owned by Optionee for more than six months on the date of surrender or such other period as may be required to avoid a charge to the Company’s earnings, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of Shares to be purchased by Optionee as to which such Option shall be exercised, (d) if there is a public market for the Shares and they are registered under the Securities Act, delivery of a properly executed exercise notice
together with such other documentation as the Committee and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the aggregate exercise price and any
applicable income or employment taxes, (e) any combination of the foregoing methods of payment, or (f) such other consideration and method of payment for the issuance of Shares to the extent permitted under Applicable Laws and as
determined by the Committee. In making its determination as to the type of consideration to accept, the Committee shall consider if acceptance of such consideration may be reasonably expected to benefit the Company or result in the recognition of
compensation expense (or additional compensation expense) for financial reporting purposes. 

  

	 	(iv)	Option Term. Except as otherwise provided herein, each Option shall have a term of ten years from the Grant Date of such Option. 

 

	 	(v)	Time and Method of Exercise. The Committee shall determine the time or times at which an Option may be exercised in whole or in part. 

 

	 	(vi)	Vesting Schedule. Except as authorized by the Committee as permitted under the terms of this Plan, no Option will be exercisable until it has vested. The
Committee will specify the vesting schedule for each Option at Grant Date, provided that if no vesting schedule is specified at the time of grant, the Option shall vest in full over the course of four years from Grant Date as follows:

  

	 	(A)	twenty five percent (25%) of the total number of Shares granted under the Option shall vest on the first anniversary of Grant Date; 

  
 5 

	 	(B)	twenty five percent (25%) of the Shares granted under the Option shall vest on the second anniversary of Grant Date; 

 

	 	(C)	twenty five percent (25%) of the Shares granted under the Option shall vest on the third anniversary of Grant Date; and 

 

	 	(D)	twenty five percent (25%) of the Shares granted under the Option shall vest on the fourth anniversary of Grant Date. 

The Committee may specify a vesting schedule for all or any portion of an Option based on the achievement of performance objectives with
respect to the Company, an Affiliate, Parent, Subsidiary and/or Optionee, and as shall be permissible under the terms of the Plan. 
  

	 	(vii)	Procedure for Exercise; Rights as a Shareholder. An Option shall be deemed to be exercised when (A) written notice of such exercise has been given to the
Company in accordance with the terms of the Option by the person entitled to exercise the Option and the Company has received full payment for the Shares with respect to which the Option is exercised; and (B) (where appropriate) the Participant
has received clearance to exercise such Option in accordance with the Company’s share dealing code. An Option may not be exercised for a fraction of a Share. Full payment may, as authorized by the Committee, consist of any consideration and
method of payment as described above. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or
receive dividends or any other rights as a shareholder shall exist with respect to the Shares subject to the Option, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate within 28 days
upon exercise of the Option. 

  

	 	(viii)	Incentive Stock Options. Notwithstanding anything in the Plan to the contrary, the following additional provisions shall apply to the grant of Options which are
intended to qualify as Incentive Stock Options: 

  

	 	(A)	The aggregate Fair Market Value (determined as of the time the Option is granted) of the Shares with respect to which Incentive Stock Options are exercisable for the
first time by any Participant during any calendar year (under this Plan and all other plans of the Company and its Affiliates) shall not exceed $100,000 in value, and to the extent that the Fair Market Value of such Shares exceeds $100,000 (or any
such higher figure as determined under Section 422 of the Code), such Options shall be deemed to be Non-Qualified Options for the purposes of this Plan. 

 

	 	(B)	All Incentive Stock Options must be granted within ten years from the earlier of the date on which this Plan was adopted by the Board of Directors or the date this Plan
was approved by the shareholders of the Company. 

  

	 	(C)	Unless sooner exercised, all Incentive Stock Options shall expire and no longer be exercisable no later than 10 years after the date of grant; provided,
however, that in the case of a grant of an Incentive Stock Option to a Participant who, at the time such Option is granted, owns (within the meaning of Section 422 of the Code) stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company or of its Affiliates, such Incentive Stock Option shall expire and no longer be exercisable no later than 5 years from the date of grant. 

 

	 	(D)	The purchase price per Share for an Incentive Stock Option shall be not less than 100% of the Fair Market Value of a Share on the date of grant of the Incentive Stock
Option; provided, however, that, in the case of the grant of an Incentive Stock Option to a Participant who, at the time such Option is granted, owns (within the meaning of Section 422 of the Code) stock possessing more than 10%
of the total combined voting power of all classes of stock of the Company or of its Affiliates, the purchase price per Share purchasable under an Incentive Stock Option shall be not less than 110% of the Fair Market Value of a Share on the date of
grant of the Incentive Stock Option. 

  

	 	(E)	Any Incentive Stock Option authorized under the Plan shall contain such other provisions as the Committee shall deem advisable, but shall in all events be consistent
with and contain all provisions required in order to qualify the Option as an Incentive Stock Option. 

  

  
 6 

  

	 	(b)	Restricted Stock Units. The Committee is hereby authorized to grant Restricted Stock Units representing the right to receive a payment in cash or Shares in the
future to Participants subject to the following terms and conditions and with such additional terms and conditions not inconsistent with the provisions of the Plan as the Committee shall determine: 

 

	 	(i)	Settlement. Upon vesting of a Restricted Stock Unit, the Participant shall be entitled to a payment equal to the Fair Market Value of the Shares subject to the
Restricted Stock Unit Award as at the date of vesting. Any payment which may become due from the Company as a result of the vesting of a Participant’s Restricted Stock Units shall be paid to the Participant in cash, or if otherwise determined
by the Committee, in Shares or in any combination of cash or Shares. Payments shall be made to Participants with respect to their Restricted Stock Units as soon as practicable after vesting, subject to compliance with any Applicable Laws. In the
event that all or a portion of the payment is made in Shares, the Committee may impose such restrictions concerning their transferability and/or their forfeiture as may be provided in the applicable Award Agreement or as the Committee may otherwise
determine, provided such determination is made on or before the date certificates for such Shares are first delivered to the applicable Participant. 

  

	 	(ii)	Vesting Schedule. The Committee will specify the vesting schedule for each Restricted Stock Unit at Grant Date, provided that if no vesting schedule is specified
at the time of grant, the Restricted Stock Unit shall vest in full over the course of four years from Grant Date as follows: 

  

	 	(A)	twenty five percent (25%) of the total number of Shares subject to the Restricted Stock Unit shall vest on the first anniversary of Grant Date;

  

	 	(B)	twenty five percent (25%) of the Shares subject to the Restricted Stock Unit shall vest on the second anniversary of Grant Date; 

 

	 	(C)	twenty five percent (25%) of the Shares subject to the Restricted Stock Unit shall vest on the third anniversary of Grant Date; and 

 

	 	(D)	twenty five percent (25%) of the Shares subject to the Restricted Stock Unit shall vest on the fourth anniversary of Grant Date. 

The Committee may specify a vesting schedule for all or any portion of a Restricted Stock Unit based on the achievement of performance
objectives with respect to the Company, an Affiliate, Parent, Subsidiary and/or Participant, and as shall be permissible under the terms of the Plan. 
 Notwithstanding the foregoing, in the event that any such Restricted Stock Units have a performance-based goal, the restriction period shall not be less than one year, and in the event the Restricted
Stock Units shall have a time-based restriction, the total restriction period shall not be less than three years; provided, however, that any Restricted Stock Units with a time-based restriction may become vested incrementally over
such three-year period; and provided further that, notwithstanding the foregoing, Restricted Stock Units in respect of up to 5% of the Shares eligible for issuance under Section 4(a) measured at the Effective Date may be granted
in the aggregate to any one or more eligible Participants without respect to such minimum vesting provision. 
  

	 	(iii)	Rights as a Shareholder. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares subject to the Restricted Stock Unit, notwithstanding the vesting of the
Restricted Stock Unit. Subject to compliance with all Applicable Laws, the Company shall issue (or cause to be issued) such stock certificate within 28 days following vesting of the Restricted Stock Unit. 

 

	 	(iv)	Dividend Equivalents. The Committee may, in its sole discretion, pay to the Participant following vesting of his Restricted Stock Unit (on the same date as such
cash or Shares are paid upon vesting of such Restricted Stock Unit) an amount in cash or Shares up to the amount of any dividends that would have been paid if the number of Shares subject to the portion of the Restricted Stock Unit that vests had
been issued to the Participant on the Grant Date. The payments will be subject to any necessary income tax or other withholdings as provided for in Section 10 of this Plan. 

  
 7 

	 	(v)	Performance-Based Awards. Any Employee or other key person providing services to the Company and who is selected by the Committee may be granted one or more
Performance-Based Awards in the form of Restricted Stock Units payable upon the attainment of Performance Goals that are established by the Committee and relate to one or more of the Performance Criteria, in each case on a specified date or dates or
over any period or periods determined by the Committee. The Committee shall define in an objective fashion the manner of calculating the Performance Criteria it selects to use for any Performance Cycle. Depending on the Performance Criteria used to
establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business unit, or an individual. The Committee, in its discretion, may adjust or modify the
calculation of Performance Goals for such Performance Cycle in order to prevent the dilution or enlargement of the rights of an individual (i) in the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event or
development, (ii) in recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company, or (iii) in response to, or in anticipation of, changes in applicable laws,
regulations, accounting principles, or business conditions provided however, that the Committee may not exercise such discretion in a manner that would increase the Restricted Stock Units granted to a Covered Employee. Each grant of
Performance-Based Awards shall comply with the provisions set forth below: 

  

	 	(A)	Grant of Performance-Based Awards. With respect to each Performance-Based Award granted to a Covered Employee, the Committee shall select, within the first 90
days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of the Code) the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion (including a
threshold level of performance below which no amount will become payable with respect to such Award). Each Performance-Based Award will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various
applicable performance targets. The Performance Criteria established by the Committee may be (but need not be) different for each Performance Cycle and different Performance Goals may be applicable to Performance-Based Awards to different Covered
Employees. 

  

	 	(B)	Payment of Performance-Based Awards. Following the completion of a Performance Cycle, the Committee shall meet to review and certify in writing whether, and to
what extent, the Performance Goals for the Performance Cycle have been achieved and, if so, to also calculate and certify in writing the amount of the Performance-Based Awards earned for the Performance Cycle. The Committee shall then determine the
actual size of each Covered Employee’s Performance-Based Award, and, in doing so, may reduce or eliminate the amount of the Performance-Based Award for a Covered Employee if, in its sole judgment, such reduction or elimination is appropriate.
The Performance-Based Award shall be settled in accordance with Section 6(b)(i). 

  

	 	(C)	Maximum Award Payable. The maximum Performance-Based Award payable to any one Covered Employee under the Plan for a Performance Cycle is a payment equal to the
Fair Market Value at the date of vesting of 3.5 million Shares (subject to adjustment as provided in Section 4(c) hereof). 

  

	 	(c)	Grant of Unrestricted Shares to Directors. The Committee is hereby authorized to grant Shares to any Director free of any restrictions (in a manner not
inconsistent with the provisions of the Plan as the Committee shall determine), provided that if any such grant is to be satisfied by a new issue of Shares, the Director shall pay an amount for the Shares which is at least equal to their aggregate
nominal values. 

  

	 	(d)	General 

  

	 	(i)	No Cash Consideration for Awards. Awards shall be granted for no cash consideration or for such minimal cash consideration as may be required by applicable law.

  

	 	(ii)	 Limits on Transfer of Awards. No Award and no right under any such Award shall be transferable by a Participant otherwise than by will or by the
laws of descent and distribution relevant to the participant, or to a Participant’s family member (as defined in Section 1(a)(5) of General Instruction A to Form S-8 promulgated under the US Securities Exchange Act of 1934, as amended) as
a gift or 

  
 8 

	 	
under a domestic relations order (as defined in Section 414(p) of the Code) and the Company shall not be required to recognize any attempted assignment of such rights by any Participant.
Each Award or right under any Award shall be exercisable during the Participant’s lifetime only by the Participant or, if permissible by the Participant’s guardian or legal representative as set forth above. 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. 

 

	 	(iii)	Term of Awards. The term of each Award shall be for such period as may be determined by the Committee; provided, however, that an Option granted hereunder shall
not be exercisable after the expiration of 10 years from the date the Option is granted. 

  

	 	(iv)	Restrictions; Securities Exchange Listing. All Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject
to such restrictions as the Committee may deem advisable under the Plan, Applicable Laws, and the Committee may cause appropriate entries to be made or legends to be affixed to reflect such restrictions. If any securities of the Company 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.

 Section 7. Change of Control  

 

	 	(a)	Meaning of Change of Control. Each of the following events shall constitute a “Change of Control” for purposes of the Plan: 

 

	 	(i)	any person or company (either alone or together with any person or company acting in concert with him or it) (an “Acquiring Company”)) obtaining Control of
the Company, 

  

	 	(ii)	any person or company that Controls the Company becoming bound or entitled to acquire Shares under sections 974 to 991 of the UK Companies Act 2006,

  

	 	(iii)	any court sanctioning a compromise or arrangement under section 899 of the UK Companies Act 2006, 

 

	 	(iv)	a resolution being tabled for the voluntary winding-up of the Company, and 

 

	 	(v)	any Acquiring Company acquiring all or substantially all of the assets of the Company. 

 

	 	(b)	Exercise of Vested Options. In the event of a Change of Control, Optionees may exercise their Options to the extent vested immediately prior to the Change of
Control within 12 months following the Change of Control, following which the Options will lapse; save that the Committee may, in its absolute discretion permit or require any Optionees to exercise their vested Options during any specified period
before the Change of Control, such exercise to be effective immediately prior to the Change of Control becoming effective, following which the vested Options would lapse on the Change of Control. In no event, however, may the Option be exercised
after the expiration of the Option’s term, as determined under Section 6(d)(iii). 	 

  

	 	(c)	Acceleration of Vesting. Subject to Section 7(d), in the event of a Change of Control: 

 

	 	(i)	in the case of any Award held by any Director (other than the Chief Executive Officer of the Company), any part of any such Director’s Awards that has not vested
at the date of such Change of Control shall vest immediately prior to such Change of Control and be exercisable in accordance with Section 7(b); and 

  

	 	(ii)	in the case of any Award held by any other Participant (being the Chief Executive Officer and Participants who are not Directors), the Award (or any award that replaces
the Award under Section 7(d)) shall continue to vest following the Change of Control and if within two years following such Change of Control, any such Participant’s employment or engagement is terminated by the Company for any reason
other than for Cause, any part of any such Participant’s Awards or replacement awards that has not vested at the date of such termination shall vest upon such termination and all such Optionee’s Options or replacement options will, unless
otherwise agreed between the Company and the Acquiring Company, thereafter lapse twelve months following the date of such termination (or, if earlier, the expiration date of the Option). 

  
 9 

	 	(iii)	The Committee may additionally also accelerate the vesting of one or more outstanding Awards at such times and in such amounts as it determines in its sole discretion.

  

	 	(d)	Replacement of Awards. The Committee may, in its absolute discretion, procure that immediately prior to a Change of Control, Participants shall be granted new
rights in substitution for all or any part of the Awards they hold, which new rights shall be no less valuable overall than the prior rights at the time of substitution, in which case no accelerated vesting or rights of exercise shall arise under
Section 7(c)(i) and the original Awards shall lapse in accordance with this Plan. 

  

	 	(e)	Cashout of Awards. In the event of a Change in Control, the Committee may provide, in its sole discretion, for the settlement of any outstanding Awards in cash
or cash equivalents, whether or not then vested or exercisable, and the Awards shall lapse on consummation of such Change in Control. 

 Section 8. Effect of Termination  
  

	 	(a)	Termination for Cause. Notwithstanding any other provisions of this Plan, and unless otherwise determined by the Committee, if a Participant’s Continuous
Status as an Employee or Consultant is terminated for Cause, Awards granted under this Plan shall lapse immediately. 

  

	 	(b)	Death or Disability. Unless otherwise determined by the Committee, if a Participant’s Continuous Status as an Employee or Consultant is terminated by reason
of death or permanent and total disability, Restricted Stock Units shall vest pro-rata to the time elapsed between Grant Date and the date of termination and to the extent any Option is then vested and exercisable, it shall be exercisable for twelve
months following the date of the Optionee’s death or permanent and total disability. In the case of the Optionee’s death, Restricted Stock Units shall vest in full and Options may be exercised by the Optionee’s designated beneficiary
or estate giving written notice to the Committee stating the number of Shares with respect to which the Option is being exercised and contemporaneously tendering payment, in cash, for the Shares. In no event, however, may an Option be exercised
after the expiration of the Option’s term, as determined under Section 6(d)(iii). For purposes of the Plan, “permanent and total disability” shall mean that the Committee has determined that the Participant is disabled within the
meaning of Section 22(e)(3) of the Code. 

  

	 	(c)	Other Termination. Unless otherwise determined by the Committee, if a Participant’s Continuous Status as an Employee or Consultant is terminated for any
reason other than for Cause, death or permanent and total disability, Restricted Stock Units shall vest pro-rata to the time elapsed between Grant Date and the date of termination and to the extent any Option is then vested and exercisable, it shall
be exercisable for twelve months following the date of such termination. In order for an Option to retain its status as an Incentive Stock Option, it must be exercised within three months following the date of such termination. In no event, however,
may the Option be exercised after the expiration of the Option’s term, as determined under Section 6(d)(iii). 

Section 9. Amendment and Termination; Adjustments  
  

	 	(a)	Amendments to the Plan. The Board may amend, alter, suspend, discontinue or terminate the Plan at any time; provided, however, that,
notwithstanding any other provision of the Plan or any Award Agreement, without the approval of the shareholders of the Company, no such amendment, alteration, suspension, discontinuation or termination shall be made that, absent such approval:

  

	 	(i)	would violate the rules or regulations of the NASDAQ National Market System or any securities exchange that are applicable to the Company; or 

 

	 	(ii)	would cause the Company to be unable, under the Code, to grant Incentive Stock Options under the Plan. 

In no event shall the Board or Committee exercise its discretion to reduce the exercise price of outstanding Options or effect repricing
through cancellation and re-grants or cancellation of Options in exchange for cash. 

  
 10 

	 	(b)	Amendments to Awards. The Committee may waive any conditions of or rights of the Company under any outstanding Award, prospectively or retroactively. Except as
otherwise provided herein or in the Award Agreement, the Committee may not amend, alter, suspend, discontinue or terminate any outstanding Award, prospectively or retroactively, if such action would adversely affect the rights of the holder of such
Award, without the written consent of the Participant or holder 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 Plan or any
Award in the manner and to the extent it shall deem desirable to carry the Plan into effect. 

 Section 10. Income and
Other Withholdings  
 In order to comply with all applicable federal or state income tax laws and social security contributions or
regulations and (where applicable) the laws and regulations of the United Kingdom and the United States of America and any other relevant country, the Company may take such action as it deems appropriate to ensure that all applicable national,
federal or state payroll, withholding, income or other taxes and social security contributions, 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 any such taxes or social security contributions 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 and social security contributions by (i) electing to have the Company withhold a portion of the Shares otherwise to be delivered upon exercise or
receipt, vesting or the lapse of restrictions relating to such Award with a Fair Market Value equal to the minimum amount of such taxes and social security contributions or (ii) delivering to the Company Shares other than Shares issuable upon
exercise, vesting or receipt of or the lapse of restrictions relating to such Award with a Fair Market Value equal to the minimum amount of such taxes and social security contributions required to be withheld. Shares withheld or delivered shall be
valued at their Fair Market Value as determined by the Committee, in its discretion, as of the date when income is required to be recognized for income tax purposes. The Participant shall, if so required by the Company or his employer, enter into an
agreement or election for the transfer to the employee of the employer’s liability to UK National Insurance Contribution arising on the grant, exercise, vesting, assignment or cancellation of any Award as permitted by the applicable law for the
time being. 
 Section 11. 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 Plan, and there is no obligation for
uniformity of treatment of Eligible Persons, Participants or holders or beneficiaries of Awards under the 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 Agreement. In connection with each grant of an Award under this Plan, the Participant and the Company shall execute a written agreement containing such
restrictions, terms, and conditions, if any, as the Committee may require. No Participant will have rights under an Award granted to such Participant unless and until and Award Agreement shall have been duly executed on behalf of the Company and, if
requested by the Company, signed by the Participant. 

  

	 	(c)	Plan Provisions. In the event that any provision of an Award Agreement conflicts with or is inconsistent in any respect with the terms of the Plan as set forth
herein or subsequently amended, the terms of the Plan shall control. In the event, the Plan is silent as to a term, provision or restriction contained in an Award Agreement, the term, provision or restriction of the Award Agreement shall govern.
Similarly, in the event the Award Agreement is silent as to a term, provision or restriction contained in the Plan, the term, provision or restriction of the Plan shall govern. 

 

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

  

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

  
 11 

	 	(f)	Governing Law. The validity, construction and effect of the Plan or any Award, and any rules and regulations relating to the Plan or any Award, shall be
determined in accordance with the laws of the State of New York, United States. 

  

	 	(g)	Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or would
disqualify the 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 Plan or the Award, such provision shall be stricken as to such jurisdiction or Award, and the remainder of the Plan or any such Award shall remain in full force and effect.

  

	 	(h)	No Trust or Fund Created. Neither the 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 Plan or any Award, and the Committee shall determine whether cash shall
be paid in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated. 

  

	 	(j)	Headings. Headings are given to the Sections and subsections of the 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 Plan or any provision thereof. 

  

	 	(k)	Stockholder Rights. The Participant or other person or entity exercising an Option shall have no rights as a stockholder of record of the Company with respect to
Shares issuable pursuant to an Award until such certificate representing Shares, registered in the Participant’s name have been issued to the Participant. 

 

	 	(l)	Notices. Notices required or permitted to be made under the Plan shall be sufficiently made if sent by overnight courier, registered or certified mail, return
receipt requested, facsimile or first class mail addressed to the Committee at its offices, which notice shall effective upon its receipt. Each notice shall be addressed to (i) the Participant at the Participant’s last known address as set
forth in the books and records of the Company or an Affiliate, if any, or (ii) the Company or the Committee at the principal office of the Company. 

 Section 12. Effective Date of the Plan  
 The Plan shall be effective as of its
approval by the shareholders of the Company (the “Effective Date”). 
 Section 13. Term of the Plan  

No Award shall be granted under the Plan after the tenth anniversary of the Effective Date or any earlier date of discontinuation or termination
established pursuant to the Plan. However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date. 
 Section 14. Section 409A of the US Internal Revenue Code 
 It is intended
that this Plan and the Awards granted under the Plan will comply with Section 409A of the Code and any regulations and guidelines promulgated thereunder (collectively, “Section 409A”), to the extent the Plan and the Awards are subject
thereto, and the Plan and such Awards shall be interpreted on a basis consistent with such intent. Without limiting the generality of the foregoing, it is intended that any adjustment to an Award made pursuant to Section 4(c), Section 7(d)
or otherwise under the Plan will not cause any Award to be treated as deferred compensation subject to Section 409A. 

  
 12

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