Document:

UNLESS PERMITTED UNDER
      SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE WHICH IS FOUR MONTHS AND A DAY AFTER THE LATER OF: MARCH 15, 2019 AND (ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

    FOUNDER WARRANT TO PURCHASE COMMON SHARES

    OF

    FLORA GROWTH CORP.

      (incorporated under the laws of Ontario)

    

    

    	
            Number __________

          	
            Number of Warrants represented

              by this certificate:  __________

             

          

    THIS CERTIFIES THAT, for value received, ____________ (the “Holder”), being the
      registered holder of this warrant (“Warrant”) is entitled, at any time prior to 5:00 p.m. (Toronto time) on the Expiry Day (as defined below) to
      subscribe for and purchase the number of common shares (the “Warrant Shares”) of FLORA GROWTH CORP. (the “Company”) set forth above on the basis of one Warrant Share at a price of USD$0.05 (the “Exercise Price”) for each Warrant exercised, subject to adjustment as set out herein, by surrendering to the Company at its principal office, 65 Queen Street West, Suite 805, Toronto, Ontario M5H 2M5, this Warrant
      certificate (the “Warrant Certificate”), with a completed and executed Subscription Form, and payment in full for the Warrant Shares being
      purchased.

    

    

    The Company shall treat the Holder as the absolute owner of this Warrant for all purposes and the Company shall not be affected by any
      notice or knowledge to the contrary.  The Holder shall be entitled to the rights evidenced by this Warrant free from all equities and rights of set-off or counterclaim between the Company and the original or any intermediate holder and all persons
      may act accordingly and the receipt by the Holder of the Warrant Shares issuable upon exercise hereof shall be a good discharge to the Company and the Company shall not be bound to inquire into the title of any such Holder.

    

    

    
      	
              1.

            	
              Definitions:  In this Warrant Certificate, unless there is something in the subject matter or context inconsistent therewith, the following expressions
                shall have the following meanings namely:

            

    

    
      	
              (a)

            	
              “Adjustment Period”
                means the period commencing on the date hereof and ending at the Expiry Time;

            

    

    
      	
              (b)

            	
              “Business Day” means
                any day other than a Saturday, Sunday, legal holiday or a day on which banking institutions are closed in Toronto, Ontario;

            

    

    
      	
              (c)

            	
              “Change of Control”
                means any of the following:

            

    

    
      	
              (i)

            	
              a takeover bid (as defined in the Securities Act (Ontario)), which is successful in acquiring Common Shares,

            

    

    
      	
              (ii)

            	
              the sale of all or substantially all the assets of the Company,

            

      
        1

        
          

      

    

    
      	
              (iii)

            	
              the sale, exchange or other disposition of a majority of the outstanding Common Shares in a single transaction or series of
                related transactions,

            

    

    
      	
              (iv)

            	
              the dissolution of the Company’s business or the liquidation of its assets,

            

    

    
      	
              (d)

            	
              “Common Shares” means
                the common shares of the Company as such shares are constituted on the date hereof, as the same may be reorganized, reclassified or otherwise changed pursuant to any of the events set out in Section 11 hereof;

            

    

    
      	
              (e)

            	
              “Company” means FLORA
                GROWTH CORP., a company incorporated under the laws of Ontario and its successors and assigns;

            

    

    
      	
              (f)

            	
              “Current Market Price”
                of a Common Share at any date means the price per share equal to the weighted average price at which the Common Shares have traded on any stock exchange for the 20 Trading Days prior to the relevant date as may be selected by the directors
                of the Company or, if the Common Shares are not listed on any stock exchange, then on the over-the-counter market with the weighted average price per Common Share being determined by dividing the aggregate sale price of all Common Shares
                sold on the said exchange or market, as the case may be, during the said 20 Trading Days by the aggregate number of Common Shares so sold or, if the Common Shares are not listed or quoted on any stock exchange or over-the-counter market,
                such price as may be reasonably determined by the directors of the Company after consideration of the market value of the Company and the price at which the Company has issue any Common Shares in the previous 12 months;

            

    

    
      	
              (g)

            	
              “Dividends Paid in the
                  Ordinary Course” means dividends paid in any financial year of the Company, whether in (i) cash; (ii) shares of the Company; (iii) warrants or similar rights to purchase any shares of the Company or property or other assets of the
                Company provided that the value of such dividends does not in such financial year exceed the greater of:

            

    

    
      	
              (i)

            	
              150% of the aggregate amount of dividends paid by the Company on the Common Shares in the 12-month period ending immediately
                prior to the first day of such financial year; and

            

    

    
      	
              (ii)

            	
              100% of the consolidated net earnings from continuing operations of the Company, before any extraordinary items, for the
                12-month period ending immediately prior to the first day of such financial year (such consolidated net earnings from continuing operations to be computed in accordance with generally accepted accounting principles in Canada);

            

    

    
      	
              (h)

            	
              “Exercise Price”
                means USD$0.05 per Warrant Share, subject to adjustment in accordance with Section 12 hereof;

            

    

    
      	
              (i)

            	
              “Expiry Day” means 36
                months from the date hereof;

            

    

    
      	
              (j)

            	
              “Expiry Time” means
                5:00 p.m. (Toronto time), on the Expiry Day;

            

    

    
      	
              (k)

            	
              “Holder” shall have
                the meaning ascribed thereto on the face page hereof;

            

      
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              (l)

            	
              “person” means an
                individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor, administrator, or other legal representative, or any group or combination thereof or any other entity whatsoever;

            

    

    
      	
              (m)

            	
              “Trading Day” with
                respect to a stock exchange, market or over-the-counter market means a day on which such stock exchange or over-the-counter market is open for business;

            

    

    
      	
              (n)

            	
              “U.S. Person” means
                U.S. person as that term is defined in Regulation S adopted by the United States Securities Exchange Commission under the U.S. Securities Act;

            

    

    
      	
              (o)

            	
              “U.S. Securities Act”
                means the United States Securities Act of 1933, as amended;

            

    

    
      	
              (p)

            	
              “Warrant” means a
                Warrant exercisable to purchase one Common Share at the Exercise Price until the Expiry Time; and

            

    

    
      	
              (q)

            	
               “Warrant Share”
                means the Common Shares issuable upon the exercise of the Warrants.

            

    

    
      	
              2.

            	
              Expiry Time:  At the Expiry Time, all rights under the Warrants evidenced hereby, in respect of which the right of subscription and purchase herein
                provided for shall not theretofore have been exercised, shall expire and be of no further force and effect.

            

    

    
      	
              3.

            	
              Exercise Procedure:

            

    

    
      	
              (a)

            	
              Subject to Section 4 herein, the Holder may exercise the right to subscribe and purchase the number of Warrant Shares herein
                provided, by delivering to the Company prior to the Expiry Time at its principal office this Warrant Certificate, with the Subscription Form attached hereto duly completed and executed by the Holder or its legal representative or attorney,
                duly appointed by an instrument in writing in form and manner satisfactory to the Company, together with a certified cheque or bank draft payable to or to the order of the Company in an amount equal to the aggregate Exercise Price in
                respect of the Warrants so exercised.  Any Warrant Certificate so surrendered shall be deemed to be surrendered only upon delivery thereof to the Company at its principal office set forth herein (or to such other address as the Company may
                notify the Holder).

            

    

    
      	
              (b)

            	
              Upon such delivery as aforesaid, the Company shall cause to be issued to the Holder hereof the Warrant Shares subscribed for
                not exceeding those which such Holder is entitled to purchase pursuant to this Warrant Certificate and the Holder hereof shall become a shareholder of the Company in respect of the Warrant Shares subscribed for with effect from the date of
                such delivery and shall be entitled to delivery of a certificate evidencing the Warrant Shares and the Company shall cause such certificates to be mailed to the Holder hereof at the address or addresses specified in such subscription as
                soon as practicable, and in any event within five (5) Business Days of such delivery.

            

    

    
      	
              (c)

            	
              The certificate or certificates representing Warrant Shares issued before the date that is four months and a day after the
                later of: March 15, 2019; and (ii) the date the Company became a reporting issuer in any province or territory, shall be impressed with a legend substantially in the following form:

            

      
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    UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS
      SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE LATER OF: MARCH 15, 2019; AND (ii) THE DATE THE COMPANY BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

    
      	
              (d)

            	
              This Warrant may not be exercised in the United States or by or on behalf of a U.S. Person unless an exemption is available
                from the registration requirements of the U.S. Securities Act and applicable state securities laws and the holder of this Warrant has furnished an opinion of counsel of recognized standing in form and substance satisfactory to the Company
                to such effect.

            

    

    
      	
              (e)

            	
              If the certificate or certificates representing the Warrants that have been surrendered for exercise bear the legend
                described below, the certificate or certificates representing the Warrant Shares subscribed for and issued upon exercise of the Warrants shall be correspondingly impressed with the following legend unless such legend is no longer required
                under the applicable requirements of the U.S. Securities Act or applicable U.S. state laws and regulations,

            

    

    THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN, AND WILL NOT BE,
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THESE SECURITIES, AGREES FOR THE BENEFIT OF FLORA GROWTH CORP. (THE “CORPORATION”)
      THAT THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH CANADIAN LOCAL LAWS AND
      REGULATIONS, (C) WITHIN THE UNITED STATES IN COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION PROVIDED BY (i) RULE 144A UNDER THE U.S. SECURITIES ACT, IF APPLICABLE, OR (ii) RULE 144, IF APPLICABLE, AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE
      STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND, IN THE CASE OF (C)(II) AND (D), THE SELLER FURNISHES TO THE CORPORATION AN OPINION OF
      COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO SUCH EFFECT.

    DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN
      SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. PROVIDED THAT THE CORPORATION IS A “FOREIGN ISSUER” WITHIN THE MEANING OF REGULATION S AT THE TIME OF SALE, A NEW CERTIFICATE, BEARING NO LEGEND, DELIVERY OF WHICH WILL CONSTITUTE “GOOD
      DELIVERY” MAY BE OBTAINED FROM THE TRANSFER AGENT FOR THE CORPORATION UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION, IN A FORM SATISFACTORY TO THE TRANSFER AGENT FOR THE CORPORATION AND THE CORPORATION, AND SUCH OTHER
      DOCUMENTATION AS MAY BE REASONABLY REQUIRED BY THE CORPORATION OR THE TRANSFER AGENT FOR THE CORPORATION, TO THE EFFECT THAT THE SALE OF THE SECURITIES REPRESENTED HEREBY IS BEING MADE IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES
      ACT.”

    

    

    
      4

      
        

    

    provided that:

    
      	
              (i)

            	
              if any such securities are being sold under clause (B) above and in compliance with Canadian local laws and regulations, and provided that the
                Company is a “foreign issuer” within the meaning of Regulation S of the U.S. Securities Act at the time of sale, the legend set forth above may be removed by providing a declaration to the transfer agent for the Company in a form
                satisfactory to the transfer agent, as may be amended from time to time by the Company, to the effect that such securities are being sold in compliance with Rule 904 of Regulation S of the U.S. Securities Act, together with any
                documentation as may be required by the Company or its transfer agent to the effect that an exemption from the registration requirements of the U.S. Securities Act or state securities laws are available; and

            

    

    

    

    
      	
              (ii)

            	
              If any such securities are being sold under clause (C)(II) or (D) above, the legend may be removed by delivery to the transfer agent for the
                Company and the Company of an opinion of counsel, of recognized standing reasonably satisfactory to the Company, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

            

    

    

    

    
      	
              4.

            	
              Partial Exercise:  The Holder may subscribe for and purchase a number of Warrant Shares less than the maximum number the Holder is entitled to purchase
                pursuant to the full exercise of this Warrant Certificate. In the event of any such subscription prior to the Expiry Time, the Holder shall be entitled to receive, without charge, a new Warrant Certificate in respect of the balance of the
                Warrant Shares which the Holder was entitled to subscribe for pursuant to this Warrant Certificate and which were then not purchased.

            

    

    
      	
              5.

            	
              No Fractional Shares:  Notwithstanding any adjustments provided for in Section 11 hereof or otherwise, the Company shall not be required upon the exercise of any
                Warrants to issue fractional Warrant Shares in satisfaction of its obligations hereunder and, in any such case, the number of Warrant Shares issuable upon the exercise of any Warrants shall be rounded down to the nearest whole number.

            

    

    
      	
              6.

            	
              Exchange of Warrant
                    Certificates:  This Warrant Certificate may be exchanged for Warrant Certificates representing in the aggregate the same
                number of Warrants and entitling the Holder thereof to subscribe for and purchase an equal aggregate number of Warrant Shares at the same Exercise Price and on the same terms as this Warrant Certificate (with or without legends as may be
                appropriate).

            

    

    
      	
              7.

            	
              Transfer of Warrants:  Subject to the terms hereof, this Warrant may be transferred, subject to the terms set forth in the Transfer Form attached hereto.  No transfer of this Warrant shall be effective unless this
                Warrant Certificate is accompanied by a duly executed Transfer Form or other instrument of transfer in such form as the Company may from time to time prescribe, together with such evidence of the genuineness of each endorsement, execution
                and authorization and of other matters as may reasonably be required by the Company, and delivered to the Company.  No transfer of this Warrant shall be made if in the opinion of counsel to the Company such transfer would result in the
                violation of any applicable securities laws.  Subject to the foregoing, the Company shall issue and mail as soon as practicable, and in any event within five (5) Business Days of such delivery, a new Warrant Certificate (with or without
                legends as may be appropriate) registered in the name of the transferee or as the transferee may direct and shall take all other necessary actions to effect the transfer as directed.

            

      
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              8.

            	
              Not a Shareholder:  Nothing in this Warrant Certificate or in the holding of a Warrant evidenced hereby shall be construed as conferring upon the Holder any
                right or interest whatsoever as a shareholder of the Company.

            

    

    
      	
              9.

            	
              No Obligation to Purchase:  Nothing herein contained or done pursuant hereto shall obligate the Holder to subscribe for or the Company to issue any Warrant Shares
                except those Warrant Shares in respect of which the Holder shall have exercised its right to purchase hereunder in the manner provided herein.

            

    

    
      	
              10.

            	
              Covenants:

            

    

    
      	
              (a)

            	
              The Company covenants and agrees that so long as any Warrants evidenced hereby remain outstanding, it shall reserve and
                there shall remain unissued out of its authorized capital a sufficient number of Warrant Shares to satisfy the right of purchase herein provided for, it will cause the Warrant Shares subscribed for and purchased in the manner herein
                provided to be issued and delivered as directed and such Warrant Shares shall be issued as fully paid and non-assessable Common Shares and the holders thereof shall not be liable to the Company or to its creditors in respect thereof.

            

    

    
      	
              (b)

            	
              The Company covenants and agrees that until the Expiry Time, while the Warrants (or remaining portion thereof) shall be
                outstanding, the Company shall use its best efforts to preserve and maintain its corporate existence and the Company shall take all action as may be necessary to ensure that the issuance of the Warrant Shares upon the exercise of the
                Warrants is in compliance with all applicable laws and applicable requirements of any exchange on which the Common Shares of the Company may become listed.

            

    

    
      	
              (c)

            	
              If the issuance of the Warrant Shares upon the exercise of the Warrants requires any filing or registration with or approval
                of any securities regulatory authority or other governmental authority or compliance with any other requirement under any law before such Warrant Shares may be validly issued (other than the filing of a prospectus or similar disclosure
                document), the Company agrees to take such actions as may be necessary to secure such filing, registration, approval or compliance, as the case may be.

            

    

    
      	
              (d)

            	
              The Company will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, all other
                acts, deeds and assurances in law as may be reasonably required for the better accomplishing and effecting of the intentions and provisions of this Warrant Certificate.

            

    

    
      	
              11.

            	
              Adjustments:

            

    

    
      	
              (a)

            	
              Adjustment:  The rights of the
                holder of this Warrant, including the number of Warrant Shares issuable upon the exercise of such Warrants, will be adjusted from time to time in the events and in the manner provided in, and in accordance with the provisions of, this
                Section.  The purpose and intent of the adjustments provided for in this Section is to ensure that the rights and obligations of the Holder are neither diminished or enhanced as a result of any of the events set forth in paragraphs (b), (c)
                or (d) of this Section.  Accordingly, the provisions of this Section shall be interpreted and applied in accordance with such purpose and intent.

            

    

    
      	
              (b)

            	
              The Exercise Price in effect at any date will be subject to adjustment from time to time as follows:

            

      
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              (i)

            	
              Share Reorganization:  If and
                whenever at any time during the Adjustment Period, the Company shall (A) subdivide, redivide or change the outstanding Common Shares into a greater number of Common Shares, (B) consolidate, combine or reduce the outstanding Common Shares
                into a lesser number of Common Shares, or (C) fix a record date for the issue of Common Shares or securities convertible into or exchangeable for Common Shares to all or substantially all of the holders of Common Shares by way of a stock
                dividend or other distribution other than a Dividend Paid in the Ordinary Course, then, in each such event, the Exercise Price shall, on the record date for such event or, if no record date is fixed, the effective date of such event, be
                adjusted so that it will equal the rate determined by multiplying the Exercise Price in effect immediately prior to such date by a fraction, of which the numerator shall be the total number of Common Shares outstanding on such date before
                giving effect to such event, and of which the denominator shall be the total number of Common Shares outstanding on such date after giving effect to such event. Such adjustment shall be made successively whenever any such event shall occur.
                Any such issue of Common Shares by way of a stock dividend shall be deemed to have been made on the record date for such stock dividend for the purpose of calculating the number of outstanding Common Shares under paragraphs 11(b)(i) and
                (ii) hereof.

            

    

    
      	
              (ii)

            	
              Rights Offering:  If and whenever
                at any time during the Adjustment Period, the Company shall fix a record date for the issue of rights, options or warrants to all or substantially all of the holders of Common Shares entitling the holders thereof, within a period expiring
                not more than 45 days after the record date for such issue, to subscribe for or purchase Common Shares (or securities convertible into or exchangeable for Common Shares) at a price per share (or having a conversion or exchange price per
                share) less than 95% of the Current Market Price on such record date, then the Exercise Price shall be adjusted immediately after such record date so that it will equal the rate determined by multiplying the Exercise Price in effect on such
                record date by a fraction, of which the numerator shall be the total number of Common Shares outstanding on such record date plus the number of Common Shares equal to the number arrived at by dividing the aggregate price of the total number
                of additional Common Shares so offered for subscription or purchase (or the aggregate conversion or exchange price of the convertible or exchangeable securities so offered) by such Current Market Price, and of which the denominator shall be
                the total number of Common Shares outstanding on such record date plus the total number of additional Common Shares so offered for subscription or purchase (or into or for which the convertible or exchangeable securities so offered are
                convertible or exchangeable). Any Common Shares owned by or held for the account of the Company or any subsidiary of the Company shall be deemed not to be outstanding for the purpose of any such computation.  Such adjustment shall be made
                successively whenever such a record date is fixed, provided that if two or more such record dates referred to in this paragraph 11(b)(ii) are fixed within a period of 25 Trading Days, such adjustment will be made successively as if each of
                such record dates occurred on the earliest of such record dates.  To the extent that any such rights, options or warrants are not exercised prior to the expiration thereof, the Exercise Price shall then be readjusted to the Exercise Price
                which would then be in effect based upon the number of Common Shares (or securities convertible into or exchangeable for Common Shares) actually issued upon the exercise of such rights, options or warrants, as the case may be.

            

    

    
      
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              (iii)

            	
              Distribution:  If and whenever
                at any time during the Adjustment Period, the Company shall fix a record date for the making of a distribution to all or substantially all of the holders of Common Shares of (A) shares of any class other than Common Shares whether of the
                Company or any other corporation, (B) rights, options or warrants to acquire Common Shares or securities exchangeable for or convertible into Common Shares or property or other assets of the Company (other than a Rights Offering as
                described above), (C) evidences of indebtedness, or (D) cash, securities or other property or assets then, in each such case and if such distribution does not constitute a Dividend Paid in the Ordinary Course, or fall under clauses (i) or
                (ii) above, the Exercise Price will be adjusted immediately after such record date so that it will equal the rate determined by multiplying the Exercise Price in effect on such record date by a fraction, of which the numerator shall be the
                total number of Common Shares outstanding on such record date multiplied by the Current Market Price on the earlier of such record date and the date on which the Company announces its intention to make such distribution, less the aggregate
                fair market value (as determined by the directors, acting reasonably, at the time such distribution is authorized) of such shares or rights, options or warrants or evidences of indebtedness or cash, securities or other property or assets so
                distributed, and of which the denominator shall be the total number of Common Shares outstanding on such record date multiplied by such Current Market Price.  Any Common Shares owned by or held for the account of the Company or any
                subsidiary of the Company shall be deemed not to be outstanding for the purpose of any such computation.  Such adjustment shall be made successively whenever such a record date is fixed, provided that if two or more such record dates
                referred to in this paragraph 11(b)(iii) are fixed within a period of 25 Trading Days, such adjustment will be made successively as if each of such record dates occurred on the earliest of such record dates.  To the extent that any such
                rights, options or warrants so distributed are not exercised prior to the expiration thereof, the Exercise Price shall then be readjusted to the Exercise Price which would then be in effect based upon such rights, options or warrants or
                evidences of indebtedness or cash, securities or other property or assets actually distributed or based upon the number or amount of securities or the property or assets actually issued or distributed upon the exercise of such rights,
                options or warrants, as the case may be.

            

    

    
      	
              (c)

            	
              Reclassifications:  If and
                whenever at any time during the Adjustment Period, there is (A) any reclassification of or amendment to the outstanding Common Shares, any change of the Common Shares into other shares or any other reorganization of the Company (other than
                as described in subsection 11(b) hereof), (B) any consolidation, amalgamation, arrangement, merger or other form of business combination of the Company with or into any other corporation resulting in any reclassification of the outstanding
                Common Shares, any change of the Common Shares into other shares or any other reorganization of the Company, or (C) any sale, lease, exchange or transfer of the undertaking or assets of the Company as an entirety or substantially as an
                entirety to another corporation or entity, then, in each such event, the Holder of this Warrant which is thereafter exercised shall be entitled to receive, and shall accept, in lieu of the number of Common Shares to which such Holder was
                theretofore entitled upon such exercise, the kind and number or amount of shares or other securities or property which such Holder would have been entitled to receive as a result of such event if, on the effective date thereof, such Holder
                had been the registered holder of the number of Common Shares to which such Holder was theretofore entitled upon such exercise. If necessary as a result of any such event, appropriate adjustments will be made in the application of the
                provisions set forth in this subsection with respect to the rights and interests thereafter of the Holder of this Warrant Certificate to the end that the provisions set forth in this subsection will thereafter correspondingly be made
                applicable, as nearly as may reasonably be, in relation to any shares or other securities or property thereafter deliverable upon the exercise of this Warrant.  Any such adjustments will be made by and set forth in an instrument
                supplemental hereto approved by the directors, acting reasonably, and shall for all purposes be conclusively deemed to be an appropriate adjustment.

            

    

    
      
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              (d)

            	
              If at any time during the Adjustment Period any adjustment or readjustment in the Exercise Price shall occur pursuant to the
                provisions of subsection 11(b) or 11(c) of this Warrant Certificate, then the number of Warrant Shares purchasable upon the subsequent exercise of the Warrants shall be simultaneously adjusted or readjusted, as the case may be, by
                multiplying the number of Warrant Shares purchasable upon the exercise of the Warrants immediately prior to such adjustment or readjustment by a fraction which shall be the reciprocal of the fraction used in the adjustment or readjustment
                of the Exercise Price.

            

    

    
      	
              12.

            	
              Rules Regarding
                    Calculation of Adjustment of Exercise Price:

            

    

    
      	
              (a)

            	
              The adjustments provided for in Section 11 are cumulative and will, in the case of adjustments to the Exercise Price, be
                computed to the nearest whole Warrant Share and will be made successively whenever an event referred to therein occurs, subject to the following subsections of this Section 12.

            

    

    
      	
              (b)

            	
              No adjustment in the Exercise Price is required to be made unless such adjustment would result in a change of at least 1% in
                the prevailing Exercise Price and no adjustment in the Exercise Price is required unless such adjustment would result in a change of at least one one-hundredth of a Warrant Share; provided, however, that any adjustments which, except for
                the provisions of this subsection, would otherwise have been required to be made, will be carried forward and taken into account in any subsequent adjustments.

            

    

    
      	
              (c)

            	
              No adjustment in the Exercise Price will be made in respect of any event described in Section 11, other than the events
                referred to in clauses 11(1)(c), if the Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the
                Holder had exercised this Warrant prior to or on the effective date or record date of such event.

            

    

    
      	
              (d)

            	
              No adjustment in the Exercise Price will be made under Section 11 in respect of the issue from time to time of Common Shares
                issuable from time to time as Dividends Paid in the Ordinary Course to holders of Common Shares who exercise an option or election to receive substantially equivalent dividends in Common Shares in lieu of receiving a cash dividend.

            

    

    
      	
              (e)

            	
              If at any time a question or dispute arises with respect to adjustments provided for in Section 11, such question or dispute
                will be conclusively determined by the auditor of the Company or, if they are unable or unwilling to act, by such other firm of independent chartered accountants as may be selected by action of the directors of the Company and any such
                determination, subject to regulatory approval and absent manifest error, will be binding upon the Company and the Holder. The Company will provide such auditor or chartered accountant with access to all necessary records of the Company.

            

      
        9

        
          

      

    

    
      	
              (f)

            	
              In case the Company after the date of issuance of this Warrant takes any action affecting the Common Shares, other than
                action described in Section 11, which in the opinion of the board of directors of the Company would materially affect the rights of the Holder, the Exercise Price will be adjusted in such manner, if any, and at such time, by action of the
                directors of the Company in their sole discretion, acting reasonably and in good faith, but subject in all cases to any necessary regulatory approval. Failure of the taking of action by the directors of the Company so as to provide for an
                adjustment on or prior to the effective date of any action by the Company affecting the Common Shares will be conclusive evidence that the board of directors of the Company has determined that it is equitable to make no adjustment in the
                circumstances.

            

    

    
      	
              (g)

            	
              If the Company sets a record date to determine the holders of the Common Shares for the purpose of entitling them to receive
                any dividend or distribution or sets a record date to take any other action and, thereafter and before the distribution to such shareholders of any such dividend or distribution or the taking of any other action, decides not to implement
                its plan to pay or deliver such dividend or distribution or take such other action, then no adjustment in the Exercise Price will be required by reason of the setting of such record date.

            

    

    
      	
              (h)

            	
              In the absence of a resolution of the directors of the Company fixing a record date for any event which would require any
                adjustment to this Warrant, the Company will be deemed to have fixed as the record date therefor the date on which the event is effected.

            

    

    
      	
              (i)

            	
              As a condition precedent to the taking of any action which would require any adjustment to the Warrant Shares issuable under
                this Warrant, including the Exercise Price, the Company shall take any corporate action which may be necessary in order that the Company or any successor to the Company or successor to the undertaking or assets of the Company have unissued
                and reserved in its authorized capital and may validly and legally issue as fully paid and non-assessable all the shares or other securities which the Holder is entitled to receive on the full exercise thereof in accordance with the
                provisions hereof.

            

    

    
      	
              (j)

            	
              The Company will from time to time, immediately after the occurrence of any event which requires an adjustment or
                readjustment as provided in Section 11, forthwith give notice to the Holder specifying the event requiring such adjustment or readjustment and the results thereof, including the resulting Exercise Price.

            

    

    
      	
              (k)

            	
              The Company covenants to and in favour of the Holder that so long as this Warrant remains outstanding, it will give notice
                to the Holder of the effective date or of its intention to fix a record date for any event referred to in Section 11 whether or not such action would give rise to an adjustment in the Exercise Price or the number and type of securities
                issuable upon the exercise of the Warrants, and, in each case, such notice shall specify the particulars of such event and the record date and the effective date for such event; provided that the Company shall only be required to specify in
                such notice such particulars of such event as have been fixed and determined on the date on which such notice is given. Such notice shall be given not less than 14 days in each case prior to such applicable record date or effective date.

            

    

    
      
        10

        
          

      

      	
              (l)

            	
              In any case that an adjustment pursuant to Section 11 shall become effective immediately after a record date for or an
                effective date of an event referred to herein, the Company may defer, until the occurrence and consummation of such event, issuing to the Holder of this Warrant, if exercised after such record date or effective date and before the
                occurrence and consummation of such event, the additional Warrant Shares or other securities or property issuable upon such exercise by reason of the adjustment required by such event, provided, however, that the Company will deliver to the
                Holder an appropriate instrument evidencing the Holder’s right to receive such additional Warrant Shares or other securities or property upon the occurrence and consummation of such event and the right to receive any dividend or other
                distribution in respect of such additional Warrant Shares or other securities or property declared in favour of the holders of record of Common Shares or of such other securities or property on or after the Exercise Date or such later date
                as the Holder would, but for the provisions of this subsection, have become the holder of record of such additional Warrant Shares or of such other securities or property.

            

    

    
      	
              13.

            	
              Representation and
                    Warranty:  The Company hereby represents and warrants with and to the Holder that the Company is duly authorized and has
                all corporate and lawful power and authority to create and issue this Warrant and the Warrant Shares issuable upon the exercise hereof and perform its obligations hereunder and that this Warrant Certificate represents a valid, legal and
                binding obligation of the Company enforceable in accordance with its terms.

            

    

    
      	
              14.

            	
              If Share Transfer Books
                    Closed:  The Company shall not be required to deliver certificates for Warrant Shares while the share transfer books of
                the Company are properly closed, prior to any meeting of shareholders or for the payment of dividends or for any other purpose and in the event of the surrender of any Warrant in accordance with the provisions hereof and the making of any
                subscription and payment for the Warrant Shares called for thereby during any such period delivery of certificates for Warrant Shares may be postponed for a period not exceeding three (3) Business Days after the date of the re-opening of
                said share transfer books provided that any such postponement of delivery of certificates shall be without prejudice to the right of the Holder, if the Holder has surrendered the same and made payment during such period, to receive such
                certificates for the Warrant Shares called for after the share transfer books shall have been re-opened.

            

    

    
      	
              15.

            	
              Lost Certificate:  If the Warrant Certificate evidencing the Warrants issued hereby becomes stolen, lost, mutilated or destroyed the Company shall issue and
                countersign a new Warrant Certificate of like denomination, tenor and date as the Warrant Certificate so stolen, lost mutilated or destroyed provided that the Holder shall bear the reasonable cost of the issue thereof and in case of loss,
                destruction or theft, shall, as a condition precedent to the issue thereof, furnish to the Company such evidence of ownership and of the loss, destruction or theft of the Warrant Certificate as shall be satisfactory to the Company, in its
                sole discretion acting reasonably, and the Holder may also be required to furnish an indemnity in form satisfactory to the Company, in its sole discretion acting reasonably, and shall pay the reasonable charges of the Company in connection
                therewith.

            

    

    
      	
              16.

            	
              Change of Control:   If a Change of Control shall or is proposed to occur prior to the Expiry Date, the Company will procure that an offer to participate in
                such Change of Control is made to all Holders in respect of all outstanding Warrants.  Such offer will enable all Holders to participate (in whole or in part) at their election in such Change of Control by exercising their Warrants with the
                resulting Common Shares participating on the same terms as all other Common Shares of the Company.  The Company will use all reasonable endeavours to assist Holders to participate to the fullest extent that they wish in the Change of
                Control including agreeing to a reduced period of time for notice of exercise of Warrants, issuing the arising Common Shares promptly to enable participation and, in respect of a Change of Control where holders of Common Shares will receive
                a cash payment, establishing a mechanism whereby the Holder will not be required to pay the Exercise Price to the Company prior to receipt of the consideration under the Change of Control (ie the Company will procure an agreement between
                the Holder and the offeror under the Change of Control for the arising Common Shares to participate in the Change of Control with the offeror to pay the Company the Exercise Price for each relevant Common Share participating due to the
                exercise of the Warrants and the Holder to receive the difference between the consideration per Common Share and the Exercise Price).  For the avoidance of doubt, the Holder will hold the right to elect whether their Warrants participate in
                whole or part in a Change of Control.   .

            

    

    
      
        11

        
          

      

      	
              17.

            	
              Governing Law:  This Warrant shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable
                therein but the reference to such laws shall not, by conflict of laws, rules or otherwise, require the application of the law of any jurisdiction other than the Province of Ontario.

            

    

    
      	
              18.

            	
              Severability:  If any one or more of the provisions or parts thereof contained in this Warrant Certificate should be or become invalid, illegal or
                unenforceable in any respect in any jurisdiction, the remaining provisions or parts thereof contained herein shall be and shall be conclusively deemed to be, as to such jurisdiction, severable therefrom.

            

    

    
      	
              19.

            	
              Amendments: 
                The provisions of these Warrants may from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing and consented to in writing by the Company and the holders of at least 80% of the Warrants then
                outstanding.

            

    

    
      	
              20.

            	
              Headings:  The headings of the articles, sections, subsections and clauses of this Warrant Certificate have been inserted for convenience and
                reference only and do not define, limit, alter or enlarge the meaning of any provision of this Warrant Certificate.

            

    

    
      	
              21.

            	
              Numbering of Articles,
                    etc.:  Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause,
                subclause or schedule refers to the article, section, subsection, clause, subclause or schedule bearing that number or letter in this Warrant Certificate.

            

    

    
      	
              22.

            	
              Gender:  Whenever used in this Warrant Certificate, words importing the singular number only shall include the plural, and vice versa, and words
                importing the masculine gender shall include the feminine gender.

            

    

    
      	
              23.

            	
              Day not a Business Day:  In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be
                required to be taken on or before the requisite time on the next succeeding day that is a Business Day.

            

    

    
      	
              24.

            	
              Binding Effect:  This Warrant Certificate and all of its provisions shall enure to the benefit of the Holder, its successors, assigns and legal personal
                representatives and shall be binding upon the Company and its successors.

            

    

    
      	
              25.

            	
              Notice:  Unless herein otherwise expressly provided, a notice to be given hereunder will be deemed to be validly given if the notice is sent by
                telecopier or prepaid same day courier addressed as follows:

            

      
        12

        
          

      

    

    
      	
              (a)

            	
              If to the Holder at the latest address of the Holder as recorded on the books of the Company; and

            

    

    
      	
              (b)

            	
              If to the Company at:

            

    

    FLORA GROWTH CORP.

      65 Queen Street West

    Suite 805

    Toronto, ON  M5H 2M5

    

    

    Attention: Corporate Secretary

        Facsimile No.: (416) 861-8165

    
      	
              26.

            	
              Time of Essence:  Time shall be of the essence hereof.

            

    

    
      13

      
        

    

    IN WITNESS WHEREOF the Company
      has caused this Warrant Certificate to be signed by its duly authorized officer as of this 15th day of March, 2019.

    

    

    	 	
            FLORA GROWTH CORP.

          
	 	
            Per:

          	 
	 	 	
            Authorized Signing Officer

          

    
      14

      
        

    

    

    

    SUBSCRIPTION FORM

    

    

    	TO:	
            FLORA GROWTH CORP.

            65 Queen Street West

            Suite 805

            

            Toronto, ON M5H 2M5

            

          

    

    The undersigned holder of the within Warrant hereby irrevocably subscribes for                                    Warrant Shares of FLORA GROWTH CORP. (the “Company”)
      pursuant to the within Warrant and tenders herewith a certified cheque or bank draft for USD$                                 (CAD$0.05 per Warrant Share) in
      full payment therefor.

    (Please check the ONE box
      applicable):

    
      
        	☐	A 	The undersigned holder (i) at the time of exercise of the Warrant is not in the United States; (ii) is not a
                “U.S. person” as defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), (iii) is
                not exercising the Warrant on behalf of a “U.S. person”; and (iv) did not execute or deliver this exercise form in the United States.

      

    

    
      
        	☐	B. 	The undersigned holder is the original U.S. Purchaser and (a) purchased the Units (of which the Warrants were a
                part) directly from the Company pursuant to a subscription agreement for the purchase of Units; (b) is exercising the Warrants solely for its own account or for the account of the original beneficial purchaser, if any; (c) each of it and
                any beneficial purchaser was on the date the Units was purchased from the Company, and is on the date of exercise of the Warrants, an “accredited investor” (as defined in Rule 501(a) of Regulation D under the U.S. Securities Act; and (d)
                the representations, warranties and covenants set forth in the written subscription agreement for the purchase of Units from the Corporation continue to be true and correct.

      

    

    
      
        	☐	C. 	The undersigned holder is a U.S. person and has delivered to the Company an opinion of counsel (which will not
                be sufficient unless it is from counsel of recognized standing and in form and substance satisfactory to the Company) to the effect that an exemption from the registration requirements of the U.S. Securities Act and applicable state
                securities laws is available.

      

    

    

    

    The undersigned hereby directs that the Warrant Shares be issued as follows:

    	
            

              NAME(S) IN FULL

          	
            

              ADDRESS(ES)

          	
            NUMBER OF

              WARRANT SHARES

          
	 	 	 
	 	 	 
	 	 	 

    

    

    
      15

      
        

    

    

    

    

    

    DATED this                    day of                                                     ,
      20_      .

    	 	
            NAME:

          	 
	 	 	 
	 	
            Signature of Authorized Representative:

          	 
	 	
            Print Name:

          	 
	 	
            Print Address:

          	 

     Please check if the certificates representing the Warrant Shares are to be delivered at the office
      where this Warrant Certificate is surrendered, failing which the certificates representing the Warrant Shares will be mailed to the address in the registration instructions set out above.

    If any Warrants represented by this Warrant Certificate are not being exercised, a new Warrant Certificate
      representing the unexercised Warrants will be issued and delivered with the certificate representing the Warrant Shares.

    Notes:

    Certificates will not be registered or delivered to an address in the United States unless Box B or Box C above is
      checked.

    If Box C is to be checked, holders are encouraged to consult with the Company in advance to determine that the legal opinion tendered in
      connection with exercise will be satisfactory in form and substance to the Company.

    

    

    
      16

      
        

    

    TRANSFER FORM

    

    

    FOR VALUE RECEIVED, the undersigned transferor hereby
      sells, assigns and transfers unto

     

    

     

    

    	 
	
            (Transferee)

          
	 
	
            (Address)

          
	 
	
            (Social Insurance Number)

          

    

    

                   of the Warrants registered in the name of the undersigned transferor represented by the attached Warrant Certificate.

    

    

    THE UNDERSIGNED TRANSFEROR HERBY CERTIFIES AND DECLARES
      that the Warrants are not being offered, sold or transferred to, or for the account or benefit of, a U.S. Person (as defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”)) or a person within the United States unless registered under the U.S. Securities Act and any applicable state securities laws or unless an exemption from such
      registration is available.

    

    

    DATED this                    day of                          ,             .

    

    

    

    

    
      	 	 	 	 
	 	
              Signature of Registered Holder

            	 	
              Signature Guarantee

            
	 	
              (Transferor)

            	 	 
	 	 	 	 
	 	 	 	 
	 	
              Print name of Registered Holder

               

            	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
              Address

            	 	 

    

    

    

        

    

    	NOTE:	
            The signature on this transfer form must correspond with the name as recorded on the face of the Warrant Certificate in every particular without alteration or
              enlargement or any change whatsoever or this transfer form must be signed by a duly authorized trustee, executor, administrator, curator, guardian, attorney of the Holder or a duly authorized signing officer in the case of a corporation  If
              this transfer form is signed by any of the foregoing, or any person acting in a fiduciary or representative capacity, the Warrant Certificate must be accompanied by evidence of authority to sign.

          

    

    

    

    

  

  17Document

Exhibit 10.1        

General Motors Company
2020 Long-Term Incentive Plan
Award Document for [Insert Date] Grant

Private and Confidential
[Name]

This letter (“Award Document”) describes the details under which you are being granted an Award of Performance Share Units (“PSUs”) under the General Motors Company 2020 Long-Term Incentive Plan (as amended from time to time, the “Plan”).
A copy of the Plan can be found on the Shareworks by Morgan Stanley site.  Capitalized terms used in this Award Document have the meanings given in the Plan unless noted otherwise.  
The full terms of your Award are set out in this Award Document, the Plan and any policy adopted by the Committee in respect of the Plan and Awards thereunder that is applicable to this Award.  In the event of any conflict between this Award Document and the Plan, the terms of this Award Document shall prevail.
Terms of this Award
						
	Issuer	General Motors Company, a Delaware corporation
	Number of Target Units	Your number of “Target Units” is [Insert Number] PSUs 

	Grant Date	[Insert Date]
	Performance Period	[Insert Date] through [Insert Date]
	Performance Conditions	See the Performance Conditions set forth on Exhibit A of this Award Document

	Settlement Conditions and Settlement Date(s)	Subject to the achievement of the Performance Conditions, any earned Award will vest and settle on the “Settlement Date,” which shall be a date in [Insert Year] selected by the Committee for the settlement of your Award.

If you experience a Full Career Status Termination of Service prior to the first anniversary of the Grant Date, your Award will be prorated.  The pro-rata portion of the Award that is retained shall continue to be subject to the achievement of the Performance Conditions and any earned Award will vest and settle on the Settlement Date, with the remaining portion of the Award being forfeited.  The retained pro-rata portion of the Award is calculated based on the month in which your Full Career Status Termination of Service occurs as follows:

[Insert Pro-Ration Schedule]

Except as otherwise provided in the Plan and this Award Document, any portion of the PSUs not vested and settled prior to a Termination of Service shall be forfeited.

    

						
	Form of Settlement	Your Award will be settled in shares of common stock of the Company (“Shares”) to the extent such Shares are earned pursuant to Exhibit A.  Each earned PSU will be settled for one Share.
Earned PSUs shall convey the right to receive dividend equivalents on the Shares underlying the PSU Award with respect to any dividends declared during the period from Grant Date to Settlement Date. Accumulated dividend equivalents shall vest and be paid in cash on the Settlement Date, subject to the satisfaction of the performance, vesting and other conditions of the underlying PSU Award.  No dividend equivalents shall be provided with respect to any Shares subject to PSUs that are not earned or do not vest or settle pursuant to their terms.
Notwithstanding the forgoing and the terms of the Plan, the Company reserves the right to further modify the form of settlement of your Award.  For example, if you are a local national of the People’s Republic of China (“PRC”), your PSUs will only be settled by a cash payment to you equal to the Fair Market Value of the Shares that would otherwise be settled (subject to applicable withholding).  If your work location at the time of any Settlement Date noted above is in India, your PSUs will also only be settled by a cash payment to you equal to the Fair Market Value of the Shares that would otherwise be settled (subject to applicable withholding).  Your PSUs will not be settled by the issue of any Shares unless your work location changes to a jurisdiction that permits settlement in Shares. 
As required by law, the Company will withhold any applicable federal, state, local or foreign tax.  You are responsible for any taxes due upon vesting and/or settlement.

	Conditions Precedent	Pursuant and subject to Section 11 of the Plan, as a condition precedent to the vesting and/or settlement of any portion of your Award, you shall: 
•Refrain from engaging in any activity which will cause damage to the Company or is in any manner inimical or in any way contrary to the best interests of the Company, as determined pursuant to the Plan; 
•Comply with the Restrictive Covenants below; and
•Furnish to the Company such information with respect to the satisfaction of the foregoing as the Committee may reasonably request.
  
In addition, the Committee may require you to enter into such agreements as the Committee considers appropriate.

Your failure to satisfy any of the foregoing conditions precedent will result in the immediate cancellation of the unvested portion of your Award and any vested portion of your Award that has not yet been settled, and you will not be entitled to receive any consideration with respect to such cancellation.

						
	Restrictive Covenants	In exchange for the PSUs described in this Award Document, except to the extent this provision is expressly unenforceable or unlawful under applicable law, you agree to the following restrictive covenants (“Restrictive Covenants”) that apply during your employment with the Company and its Subsidiaries, and for the 12-month period commencing on your Termination of Service, including a Full Career Status Termination:

•During your employment and for one year after it ends, anywhere within the world where you have, within the last two years of your employment, worked, had management responsibilities or had access to confidential information, you will not directly or indirectly provide services to any business that competes with the Company if such services involve (i) the potential use or disclosure of Company confidential information or trade secrets; (ii) substantially the same functions/responsibilities as yours for the Company during your last two years of employment; or (iii) supervision over substantially the same functions, responsibilities or business units as those you supervised for the Company during your last two years of employment;
•During your employment and for one year after it ends, you will not directly or indirectly, knowingly induce any employee of the Company or any Subsidiary to leave his/her employment for participation, directly or indirectly, with any existing or future employer or business venture associated with you; and
•During your employment and for one year after it ends, you will not directly or indirectly solicit or attempt to solicit any client, customer, or supplier of, or provider to the Company or its Subsidiaries who was a client, customer, supplier or provider for which you provided services or supervised services during the 12-month period immediately prior to your Termination of Service.

You may seek permission from the Company to take action that would otherwise violate one or more aspects of these Restrictive Covenants, but the Company may either approve or deny such request in its unfettered discretion and otherwise enforce the provisions of the Restrictive Covenants.  

If you violate any of the Restrictive Covenants during its effective period without the Company’s consent, your entire Award, whether unvested or earned and vested but unsettled, will immediately be cancelled.  In addition, you agree to repay to the Company the value of all PSUs that were delivered pursuant to this Award Document during the period commencing on the date that is 12 months prior to your Termination of Service and ending on the date that is 12 months following your Termination of Service.  To the extent permitted under applicable law, the Company may also take action at equity or in law to enforce the provisions of the applicable Restrictive Covenants.  Following application of this provision of the Award Document, you will continue to be bound by the obligations, promises and other agreements contained in the Plan and the Award Document.  

						
	Other Terms and Conditions of the Award	Refer to the Plan for additional terms and conditions applicable to your Award, including but not limited to, those relating to:
•Effect of your Termination of Service on your Award, including upon Death, Disability, achievement of Full Career Status and other Termination of Service scenarios;
•Your Award being subject to any clawback or recoupment policies of the Company as may be in effect from time to time;
•The impact of a Change in Control or other specified corporate event on your Award; and
•Jurisdiction and governing law. 

Additional Acknowledgements

The following additional terms apply to your Award, your participation in the Plan and the grant of PSUs (and issuance of any Shares) to you.  By accepting the Award you irrevocably agree and acknowledge in favor of the Company (on its own behalf and as an agent for the Subsidiaries) that:

a)To enable the Company to issue you this Award, and administer the Plan and any Award, you consent to the holding and processing of personal information provided by you to the Company or any Subsidiary, trustee or third party service provider, for all purposes relating to the operation of the Plan in accordance with Section 20 of the Plan.

b)You will not have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of employees, consultants, advisors, Participants or holders or Beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to each recipient. Any Award granted under the Plan shall be a single, voluntary grant and does not constitute a promise, a contractual right or other right to receive future grants. The Committee maintains the right to make available future grants under the Plan.

c)The grant of this Award does not give you the right to be retained in the employ of, or to continue to provide services to, the Company or any Subsidiary. The Company or the applicable Subsidiary may at any time dismiss you, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or in any other agreement binding you and the Company or the applicable Subsidiary. Your receipt of this Award under the Plan is not intended to confer any rights on you except as set forth in this Award Document or in the Plan.

d)Unless otherwise required by law, this Award under, and your participation in, the Plan does not form part of your remuneration for the purposes of determining payments in lieu of notice of termination of your employment, severance payments, leave entitlements, or any other compensation payable to you.  No Award, payment, or other right or benefit, under the Plan will be taken into account in determining any benefits under any pension, retirement, savings, profit-sharing, group insurance, welfare or benefit plan of the Company or any of the Subsidiaries.

e)This Award includes Restrictive Covenants and conditions precedent that apply during and following your termination of employment, and the PSUs described in this Award constitute one element of the good and valuable consideration provided in exchange for those Restrictive Covenants.  You may be subject to other 

Agreements that contain restrictive covenants and those covenants are independent of these Restrictive Covenants.

f)The Company and the Subsidiaries, their respective affiliates, officers and employees make no representation concerning the financial benefit or taxation consequences of any Award or participation in the Plan and you are strongly advised to seek your own professional legal and taxation advice concerning the impact of the Plan and your Award.

g)The future value of the underlying Shares is unknown and cannot be predicted with certainty and the Shares may increase or decrease in value.

h)You will have no claim or entitlement to compensation or damages arising from the forfeiture of the PSUs, the termination of the Plan, or the diminution in value of the PSUs or Shares, including without limitation, as a result of the termination of your employment by the Company or any Subsidiary for any reason whatsoever and whether or not in breach of contract.  You irrevocably release the Company, its Subsidiaries, Affiliates, the Plan Administrator and their affiliates from any such claim that may arise.

i)The Company has adopted a stock ownership requirement policy, and if your position is covered, you shall be subject to and comply with this policy as may be in effect from time to time.

j)If any term of this Award is determined to be unenforceable as written by a court of competent jurisdiction, you acknowledge and agree that such term shall be adjusted to the extent determined by the court to achieve the intent of the Company in imposing such term and if the court determines that such term cannot be reformed to achieve the intent of the Company, then the elimination of the pertinent provisions of that term shall not otherwise impact the enforceability of the other terms of this Award.  

k)You agree this Plan and this Award are governed by the laws of the State of Delaware, without regard to the conflicts of law provisions thereof, and further consent to the exclusive personal jurisdiction and venue of the Chancery Court of the State of Delaware and the United States District Court for the District of Delaware for any action, claim or dispute arising out of or relating to this Award, the Plan or the subject matter contained in this Award Document.  The Company will make reasonable efforts so that the Award complies with all applicable federal and state securities laws; provided, however, notwithstanding any other provision of the Award Document, the PSUs shall not be settled if the settlement thereof would result in a violation of any such law. 

l)Nothing in this Award Document will be construed as requiring a forfeiture or otherwise prohibiting you from fully and truthfully cooperating with any investigation or engaging in any other conduct protected by U.S. law.  

m)You have read this Award Document and the Plan carefully and understand their terms, including but not limited to the Restrictive Covenants herein.  By indicating your acceptance of these terms, you are expressly accepting the terms and conditions of the Award, and the Company may rely on your acceptance.

Acceptance of Offer

To accept this offer you will need to follow the link at the bottom of this page. Your electronic acceptance confirms the following:

I confirm that I have been given a copy of this Award Document and access to the Plan, and that having read both documents I irrevocably agree to:
a)Accept the number of target PSUs (and any Shares) that are issued by the Company to me in accordance with the terms of the Plan and this Award Document; and
b)Be bound by and abide by the terms of this Award Document and the Plan.
If you do not accept this Award by [Insert Date], this offer will lapse and be incapable of acceptance (unless otherwise agreed to by the Company).
If you have any questions concerning this offer or the Plan, please contact [Insert Contact Information]. 

       

EXHIBIT A

I.  Performance Measures

The number of Shares that will be delivered will range between 0 - 200% of your number of Target Units and will be determined based on two performance measures – Relative ROIC-Adjusted and Relative TSR.  For each measure, GM’s ROIC-Adjusted performance and GM’s TSR performance will be measured relative to the performance of the companies in the “OEM Peer Group.”  Each performance measure is assessed independently, so it is possible to receive a payout for one performance measure and not the other.    

The OEM Peer Group means the Original Equipment Manufacturers (other than GM) in the Dow Jones Automobiles and Parts Titans 30 Index on the Grant Date.  Note:  The Company reserves the right to adjust the companies listed in the OEM Peer Group due to the following events: mergers, acquisitions, consolidations, divestitures or insolvencies.

Relative ROIC-Adjusted:  One-half of the Target Units eligible to be earned will be determined based on Relative ROIC-Adjusted as follows:  
•First, the 3-Year Average ROIC-Adjusted for each company is determined.  
•Second, the results for each company in the OEM Peer Group are ranked by percentile independent of GM’s results.   
•Third, GM’s 3-Year Average ROIC-Adjusted result is placed on the percentile continuum between the peer company directly above us and below us to determine our performance.
•Fourth, the percentage of Target Units earned is determined based on the following performance goals:  
															
	GM’s 3-Year Average ROIC-Adjusted Result Versus OEM Peer Group
		Below Threshold	Threshold	Target	Maximum
		Below 35th 
Percentile
	35th 
Percentile
	60th 
Percentile
	100th 
Percentile

	Percentage of Target Units Eligible to be Earned	0%	50%	100%	200%

Note: Percentage of Target Units eligible to be earned are interpolated for percentiles not shown between threshold and maximum.  

•Fifth, the percentage of Target Units earned will be capped at a 100% payout if GM’s 3-Year Average ROIC-Adjusted result does not exceed GM’s Weighted Average Cost of Capital “WACC” over the performance period.    

Relative TSR:  One-half of the Target Units eligible to be earned will be determined based on Relative TSR as follows:  
•First, the TSR for each company is determined.  
•Second, the results for each company in the OEM Peer Group are ranked by percentile independent of GM’s results.   
•Third, GM’s TSR result is placed on the percentile continuum between the peer company directly above us and below us to determine our performance.
•Fourth, the percentage of Target Units earned is determined based on the following performance goals:  
															
	GM’s TSR Result Versus OEM Peer Group
		Below Threshold	Threshold	Target	Maximum
		Below 25th Percentile
	25th 
Percentile
	50th 
Percentile
	75th 
Percentile

	Percentage of Target Units Eligible to be Earned	0%	50%	100%	200%

Note: Percentage of Target Units eligible to be earned are interpolated for percentiles not shown between threshold and maximum.  

•Fifth, the percentage of Target Units earned will be capped at a 100% payout if GM’s TSR result is negative.

EXHIBIT A

II. Definitions

For purposes of the PSUs:
3-Year Average Return on Invested Capital-Adjusted (“ROIC-Adjusted”) shall be the average annual return on invested capital for years [Insert Year], [Insert Year] and [Insert Year], where return on invested capital is:
									
	Total Company EBIT-Adjusted*	÷	Average Total Company Net Assets**

*EBIT-Adjusted is defined as earnings excluding interest income, interest expense and income taxes as well as certain additional adjustments.  Such adjustments include impairment charges related to goodwill and certain investments, gains or losses on the settlement/extinguishment of obligations and gains or losses on the sale of non-core investments.  
**Net Assets will be the average for the year and will exclude:
•All income tax related accounts
•Interest and certain dividend related accounts
•Fresh start accounting goodwill
•External debt (except capital leases)
•Pension and OPEB liabilities

Total Shareholder Return (“TSR”) shall be the change in a company’s common stock price on the New York Stock Exchange (or other applicable exchange), plus reinvested dividends, expressed as a percent of the original stock price.  For purposes of calculating the starting and ending stock prices for the OEM Peer Group companies and GM, it is the 30 trading day trailing average converted daily to U.S. Dollars prior to and including [Insert Date] (“Starting Stock Price”) and [Insert Date] (“Ending Stock Price”).  If necessary, TSR will be adjusted to reflect stock splits or other changes to capitalization that occur.

Weighted Average Cost of Capital (“WACC”) shall be the 3-Year average of the low-point of GM’s Corporate WACC (customarily expressed as a range) for [Insert Year], [Insert Year] and [Insert Year].  The WACC shall be calculated annually in [Insert Month], consistent with GM’s Treasurer’s Office Corporate Policies.  ROIC-Adjusted and WACC will be calculated on a tax-equivalent basis to provide comparability.  Additionally, the annual WACC calculation will be externally reviewed by a third-party for reasonableness.  For further documentation on the calculation of GM’s WACC, open the document below.

[Insert Document]

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