Document:

Exhibit 4.1

 

 

 

FRANCO-NEVADA
CORPORATION

 

AMENDED
AND RESTATED

 

DIVIDEND
REINVESTMENT PLAN

 

June 15, 2018

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	PURPOSE	1
	 	 	 
	2.	SUMMARY OF BENEFITS TO PARTICIPANTS	1
	 	 	 
	3.	DEFINITIONS	1
	 	 	 
	4.	PARTICIPATION	2
	 	 	 
	5.	ADMINISTRATION	4
	 	 	 
	6.	SOURCE OF COMMON SHARES	4
	 	 	 
	7.	METHOD OF PURCHASE	4
	 	 	 
	8.	PRICE OF COMMON SHARES	4
	 	 	 
	9.	COSTS	5
	 	 	 
	10.	STATEMENTS OF ACCOUNT	5
	 	 	 
	11.	WITHDRAWAL OF PLAN SHARES	5
	 	 	 
	12.	TERMINATION OF PARTICIPATION	6
	 	 	 
	13.	RIGHTS OFFERINGS	7
	 	 	 
	14.	STOCK DIVIDENDS AND SHARE SUBDIVISIONS	8
	 	 	 
	15.	SHARE VOTING	8
	 	 	 
	16.	RESPONSIBILITIES OF THE CORPORATION AND THE AGENT	8
	 	 	 
	17.	RISK OF MARKET PRICE FLUCTUATIONS	9
	 	 	 
	18.	AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN	9
	 	 	 
	19.	RULES AND REGULATIONS	9
	 	 	 
	20.	COMPLIANCE WITH LAWS	9
	 	 	 
	21.	GOVERNING LAW	9
	 	 	 
	22.	CURRENCY	9
	 	 	 
	23.	TAX CONSIDERATIONS	10
	 	 	 
	24.	WITHHOLDINGS	21
	 	 	 
	25.	NOTICES	21
	 	 	 
	26.	PLAN ADOPTION	22

 

     

     

    

 

FRANCO-NEVADA CORPORATION

AMENDED AND RESTATED DIVIDEND REINVESTMENT PLAN

 

		1.	PURPOSE

 

The Plan (as defined below) of the Corporation
(as defined below) provides a method for holders of Common Shares (as defined below) of the Corporation to purchase additional Common
Shares by reinvesting cash dividends (less applicable withholding tax). Each such Common Share acquired pursuant to the Plan will be acquired
without payment of brokerage commissions or service charges of any kind. Subject to discounts referred to below, Common Shares will be
acquired at prevailing market prices (as described herein).

 

		2.	SUMMARY OF BENEFITS TO PARTICIPANTS

 

Shareholders may wish to consider the following benefits to Participants
(as defined below) in the Plan:

 

		A.	There are no brokerage commissions or service charges for Common
Shares purchased pursuant to the Plan and all administration costs (other than those identified herein) of the Plan will be paid by the
Corporation. However, Participants who enrol in the Plan through a Nominee (as defined below) may be subject to fees charged by their
Nominee.

 

		B.	Full reinvestment of dividends (less applicable withholding
tax) after any applicable Canadian non-resident withholding tax is achieved since the Plan permits fractions of Common Shares computed
to six decimal places, to be credited to a Participant’s account.

 

		C.	All Common Shares purchased under the Plan will be held for
the Participant’s account by the Agent as agent on behalf of the Participant. The Agent will provide statements to each Participant
following each Investment Period (as defined below).

 

		D.	Participation in the Plan may be terminated by the Participants
at any time subject to the notice and settlement requirements of the Plan.

 

		3.	DEFINITIONS

 

“Agent” means Computershare Trust Company of Canada,
or such other agent as is appointed by the Corporation from time to time to act as agent under the Plan;

 

“Average Market Price” has the meaning set out in
Section 8 below;

 

“business day” means a day on which the Toronto
Stock Exchange or the New York Stock Exchange (or any of its successors on which the Common Shares are then listed for trading) is open
for business;

 

“CDS” means CDS Clearing and Depository Services
Inc.;

 

“Common Shares” means the common shares in the capital
of the Corporation as the same may be constituted from time to time;

 

“Corporation” means Franco-Nevada Corporation, and
any successor corporation;

 

     

     

    

 

“Dividend Payment Date” means the date upon which
a dividend is paid by the Corporation;

 

“DRS Advice” means Direct Registration
System Advice, a record of the security transaction affecting a securityholder’s account on the books of an issuer as part of the
Direct Registration System;

 

“Investment Period” means the
period, after a dividend is paid by the Corporation, in which the Agent purchases Common Shares under the Plan;

 

“Market Acquisition” has the meaning set out in
Section 6 below;

 

“Nominee” refers to an intermediary
such as a financial institution, broker, or other nominee who holds Common Shares registered in their own name on behalf of a beneficial
owner of Common Shares who is eligible to participate in the Plan;

 

“Participants” mean registered
holders or beneficial owners of at least one Common Share who, on the applicable record date for a cash dividend, are residents of Canada
or the U.S. (or certain other eligible jurisdictions) and who are otherwise eligible to participate in the Plan and elect to do so by,
in the case of registered holders, completing and delivering the appropriate authorization forms to the Agent or, in the case of beneficial
owners, having their Nominee register through CDS, as more particularly described in the Plan;

 

“Plan” means this Amended and Restated Dividend
Reinvestment Plan, as amended from time to time;

 

“Shareholder” means a registered
holder of Common Shares or a beneficial owner of Common Shares, as the context requires; and

 

“Treasury Acquisition” has the meaning set out in
Section 6 below.

 

		4.	PARTICIPATION

 

Except as described
below, a registered holder of Common Shares who is a resident of Canada or the U.S. (or in certain other eligible jurisdictions) is eligible
to participate in the Plan at any time by enrolling some or all of their Common Shares and completing the required Reinvestment Enrollment
 – Participant Declaration Form (an “Enrollment Form”) and sending it to the Agent at the address referred to
under the heading “Notices” or by enrolling online through the Agent’s self-service web portal, Investor Centre, at
www.investorcentre.com/franco-nevada. Shareholders in other eligible jurisdictions may be allowed to participate in the
Plan only if we determine that participation should be made available to those Shareholders taking into account the necessary steps to
comply with the laws relating to the offering and the sale of Common Shares in the jurisdiction of those Shareholders and we determine,
in our sole discretion, that such laws do not subject the Plan or the Corporation to additional legal or regulatory requirements. In
making such determination, we may request such documentation as we deem necessary, including an opinion of legal counsel or undertakings
from any intermediary.

 

An Enrollment Form may be obtained at any time
upon request to the Agent by calling 1-800-564-6253 or by following the instructions provided on the Corporation’s website at www.franco-nevada.com.

 

CDS will provide separate instructions to the
Agent regarding the extent of its participation in the Plan on behalf of beneficial Shareholders.

 

Beneficial owners of Common Shares whose
Common Shares are not registered in their own name and who wish to participate in the Plan may only participate in the Plan if they:
(i) transfer their Common Shares into their own name and then enrol in the Plan directly; or (ii) arrange for their Nominee to enrol
in the Plan on their behalf by registering with CDS. Beneficial owners of Common Shares should contact their Nominee to provide
instructions on how they would like to participate in the Plan. Once a Shareholder has enrolled in the Plan, participation continues
automatically, unless terminated in accordance with the terms of the Plan.

 

    2

     

    

 

Beneficial Shareholders in the United States whose
Common Shares are registered through The Depository Trust Company are not currently eligible for participation in the Plan as, in 2014,
The Depository Trust Company announced it had terminated its participation in dividend reinvestment plans for Canadian securities. If
a Shareholder is a beneficial owner whose Common Shares are registered in the name of The Depository Trust Company, he or she may participate
in the Plan by (i) directing his or her broker to transfer all or any number of whole Common Shares into his or her name and then enrolling
such Common Shares in the Plan or (ii) making appropriate arrangements with the broker, investment dealer, financial institution or other
nominee who holds the holder’s Common Shares to transfer all or any number of whole Common Shares into CDS and enrol in the Plan
on the holder’s behalf.

 

Under the terms of the Plan, Participants direct
the Agent to reinvest cash dividends (less applicable withholding tax) on all or some of the Common Shares and fractions thereof which
are enrolled in the Plan.

 

A registered holder of Common Shares shall become
a Participant with regard to the reinvestment of dividends as of the first Dividend Payment Date following receipt by the Agent of a
duly completed Enrollment Form provided that the Enrollment Form is received not less than 5:00 p.m. (Toronto time) five (5) business
days before the record date for the dividend payable on such Dividend Payment Date. If an Enrollment Form is received by the Agent less
than five (5) business days before the record date for a particular dividend, that dividend will be paid to the Shareholder in the usual
manner and participation in the Plan will commence with the next dividend. Dividend record dates for the Common Shares will be announced
by the Corporation in advance.

 

Participants should note that Common Shares acquired
outside of the Plan may not be registered in exactly the same name or manner as Common Shares enrolled in the Plan and therefore may not
be automatically enrolled in the Plan. Participants purchasing additional Common Shares outside of the Plan are advised to contact the
Agent to ensure that all Common Shares owned by them are enrolled in the Plan.

 

The Corporation, the Agent and any Nominee reserve
the right to deny participation in the Plan, and to not accept an Enrollment Form from, any person or agent of such person who appears
to be, or who the Corporation, the Agent or such Nominee has reason to believe is, subject to the laws of any jurisdiction which does
not permit participation in the Plan in the manner sought by or on behalf of such person. Shareholders should be aware that certain Nominees
may not allow participation in the Plan and the Corporation is not responsible for monitoring or advising which Nominees allow participation.

 

All funds received by the Agent under the Plan
will be applied to the purchase of Common Shares. In no event will interest be paid to Participants on any funds held for investment
under the Plan.

 

By enrolling in the Plan, whether directly
as a Participant or indirectly through CDS or through a Nominee, a registered holder or beneficial owner of Common Shares, as
applicable, shall be deemed to have: (i) represented and warranted to the Corporation and the Agent that they are eligible to
participate in the Plan; (ii) appointed the Agent to receive from the Corporation, and directed the Corporation to credit the Agent
with, all dividends (less any applicable withholding taxes) payable in respect of all Common Shares registered in the name of the
Shareholder enrolled in the Plan or held under the Plan for its account or, in the case of an owner of Common Shares enrolled
indirectly through CDS or through a Nominee, that are enrolled on its behalf in the Plan; and (iii) authorized and directed the
Agent to reinvest such dividends (less any applicable withholding taxes) in Common Shares, all in accordance with the provisions of
the Plan as set forth herein and otherwise upon and subject to the terms and conditions described herein.

 

    3

     

    

 

The right to participate in the Plan is not assignable by a Participant.

 

		5.	ADMINISTRATION

 

Computershare Trust Company of Canada (the “Agent”)
acts as the Agent for the Participants under the Plan pursuant to an agreement which may be terminated by the Corporation or the Agent
at any time upon thirty (30) days’ prior written notice to the other party. On each Dividend Payment Date, the Corporation shall
pay to the Agent on behalf of the Participants all cash dividends payable in respect of such Participants’ Common Shares (less any
applicable withholding taxes). The Agent shall use such funds to purchase Common Shares for the Participants. Common Shares purchased
under the Plan will be registered in the name of the Agent, as agent for Participants in the Plan. Should Computershare Trust Company
of Canada cease to act as Agent under the Plan, another agent will be designated by the Corporation, in its discretion.

 

		6.	SOURCE OF COMMON SHARES

 

The Common Shares acquired by the Agent under
the Plan will be, at the Corporation’s election, determined from time to time, either newly issued Common Shares acquired from the
Corporation (a “Treasury Acquisition”) or Common Shares purchased on the Toronto Stock Exchange, the New York Stock
Exchange or any other alternative Canadian open market, as applicable, (a “Market Acquisition”) at the Corporation’s
option. The proceeds received by the Corporation from the issue of new Common Shares under the Plan will be used for general corporate
purposes.

 

		7.	METHOD OF PURCHASE

 

Cash dividends payable on Common Shares in the
Plan (less any applicable withholding tax) will be paid to the Agent and applied automatically by the Agent in each Investment Period
to the purchase of Common Shares for the Participant by way of a Treasury Acquisition or Market Acquisition, as determined by the Corporation
in its sole discretion. Dividends paid will be subject to any applicable withholding tax.

 

A Participant’s account will be credited
with the number of Common Shares, including fractions computed to six (6) decimal places, which is equal to the dividends (less applicable
withholding tax) reinvested for such Participant divided by the applicable purchase price. Full reinvestment of dividends under the Plan
is possible because fractions of Common Shares as well as whole Common Shares are credited to a Participant’s account. The rounding
of any fractional interest is determined by the Agent using such methods as it deems appropriate in the circumstances.

 

Common Shares purchased pursuant to the Plan will
be registered in the name of the Agent or its nominee, as agent for Participants.

 

		8.	PRICE OF COMMON SHARES

 

Dividends on Common Shares otherwise payable to
Participants will be paid to the Agent as agent for such Participants and will be applied to the purchase of Common Shares by the Agent
either through a Treasury Acquisition or a Market Acquisition.

 

    4

     

    

 

The Corporation does not control the price of
Common Shares acquired under the Plan. The purchase price allocated for each Common Share acquired by the Agent under the Plan during
each Investment Period (the “Average Market Price”) will be:

 

		(a)	in the case of a Treasury Acquisition, subject to the discount referred to below, the average closing
price of the Common Shares (denominated in the currency in which the Common Shares trade on the applicable stock exchange) traded on the
Toronto Stock Exchange, the New York Stock Exchange or any other alternative Canadian open market, as applicable, for the five (5) consecutive
trading days on which at least a board lot of Common Shares traded ending on the day immediately prior to the applicable Dividend Payment
Date; and

 

		(b)	in the case of a Market Acquisition, the average price paid
(excluding brokerage commissions, fees and all transaction costs) per Common Share (denominated in the currency in which the Common Shares
trade on the applicable stock exchange) purchased by the Agent on behalf of Participants on the Toronto Stock Exchange, the New York
Stock Exchange or any other alternative Canadian open market, as applicable, for all Common Shares purchased in respect of an Dividend
Payment Date under the Plan. The Agent will acquire the applicable aggregate number of Common Shares by a Market Acquisition in a manner,
provided herein, on the applicable Dividend Payment Date or such date or dates as soon as practicable within three (3) trading days immediately
after the Dividend Payment Date unless otherwise directed by the Corporation.

 

In the case of a Treasury Acquisition, there may
be a discount of up to 5% from the Average Market Price. The Corporation will determine from time to time and in its sole discretion the
amount of any applicable discount. The Corporation will announce by way of press release and in dividend announcements any applicable
discount from the Average Market Price.

 

		9.	COSTS

 

There is no brokerage commission payable by Participants
with respect to Common Shares purchases under the Plan because the Corporation is responsible for any brokerage fees associated with purchases
under the Plan. A Participant will be responsible for brokerage commissions on a sale of Common Shares effected by the Agent as described
under “Termination of Participation”. All administrative costs of the Plan are paid by the Corporation. However, Participants
who enrol in the Plan through their Nominee may be subject to charges by their Nominee.

 

		10.	STATEMENTS OF ACCOUNT

 

The Agent will maintain an account for each Participant.
A statement of account will be mailed by the Agent to each Participant on a quarterly basis approximately two to three weeks after the
completion of each Investment Period.

 

Such statement of account will set out the amount
of cash dividends paid on the Participant’s Common Shares, the number of Common Shares purchased under the Plan, the purchase price
per share and the updated total number of Common Shares being held by the Agent for the Participant in his or her account. These statements
of account are a Participant’s continuing record of the cost of purchases and Participants are solely responsible for retaining
all such statements for tax and other purposes. In addition, each Participant will receive the appropriate information annually from the
Agent for reporting dividends on the Common Shares for tax purposes.

 

		11.	WITHDRAWAL OF PLAN SHARES

 

Common Shares purchased under the Plan for a
Participant will be held in the name of the Agent, or its nominee, for such Participant and reported on the Participant’s statement
of account. However, a registered Participant who does not wish to terminate participation in the Plan may obtain a certificate or DRS
Advice for any number of whole Common Shares held in his or her account by duly completing the withdrawal portion of the voucher located
on the reverse of the statement of account and delivering it to the Agent or by following the instructions at the Agent’s Investor
Centre web portal, at www.investorcentre.com/franco-nevada. A certificate or DRS Advice will not be issued for a fraction of a
Common Share.

 

    5

     

    

 

Plan accounts for a Participant will be maintained
in the name in which certificates and DRS Advices, as applicable, were registered with the Corporation at the time such Participant enrolled
in the Plan. Consequently, a certificate or DRS Advice for whole Common Shares withdrawn from the account maintained for a Participant
by the Agent will be registered in the same manner when issued.

 

Common Shares being held by the Agent for a Participant
pursuant to the Plan may not be pledged, sold or otherwise disposed of by a Participant. A registered Participant who wishes to do so
must request that a certificate or DRS Advice for the required number of Common Shares be issued before such action may be taken. Beneficial
Participants should contact their Nominee to determine the procedures for any such action.

 

A certificate or DRS Advice will generally be
issued to a Participant within three (3) weeks of receipt by the Agent of a Participant’s written request.

 

A registered Participant may request the sale
of any number of whole Common Shares on his or her behalf without terminating the registered Participant’s participation in the
Plan by delivering written instructions to the Agent, which instructions may be delivered to the Agent personally, by courier, by mail,
by facsimile or by any other electronic method acceptable to the Agent. In this event, the Agent will sell such shares through a broker-dealer
designated by the Agent from time to time. The registered Participant will be charged a commission by the broker-dealer, which commission
will be deducted from the cash proceeds of the sale to be paid to the registered Participant. Commissions charged on such sales will be
charged at the customary rates charged from time to time by the broker-dealer. The proceeds of such sale, less brokerage commissions and
transfer and withholding taxes, if any, will be paid to the selling Participant by the Agent. Common Shares in a Participant’s account
held pursuant to the Plan that are sold may be commingled with Common Shares of other selling Participants, in which case, the proceeds
to each selling Participant will be based on the average sale price of all Common Shares so commingled and sold on the same day.

 

		12.	TERMINATION OF PARTICIPATION

 

Participation in the Plan may be terminated by
a registered Participant by duly completing the termination portion of the voucher on the reverse side of the statement of account signed
by the registered Participant and delivering it to the Agent no later than 5:00 p.m. (Toronto time) five (5) business days before the
record date or by following the instructions at the Agent’s Investor Centre web portal, at www.investorcentre.com/franco-nevada.

 

When a registered Participant terminates participation
in the Plan, the Participant will receive from the Agent a certificate or DRS Advice for the whole number of Common Shares held in the
Participant’s account and a cash payment for any fraction of a Common Share which will be converted by the Agent at the prevailing
market price at the time of sale.

 

A registered Participant may also request the
sale of all the Common Shares held for his or her account pursuant to the Plan by duly completing the termination portion of the voucher
on the reverse side of the statement of account and delivering it to the Agent. In this event, the Agent will sell such shares through
a broker-dealer designated by the Corporation from time to time. If the request is received less than five (5) business days before a
record date for a dividend, or between a record date and a Dividend Payment Date, the request will be processed within three (3) weeks
after the applicable Dividend Payment Date. No terminations will be processed between a record date and the completion of the applicable
Investment Period. The registered Participant will be charged a commission by the broker-dealer, which commission will be deducted from
the cash proceeds of the sale to be paid to the registered Participant. Commissions charged on such sales will be charged at the customary
rates charged from time to time by the broker-dealer. The proceeds of such sale, less brokerage commissions and transfer and withholding
taxes, if any, will be paid to the terminating Participant by the Agent. Common Shares in a Participant’s account held pursuant
to the Plan that are sold may be commingled with Common Shares of other terminating Participants, in which case, the proceeds to each
terminating Participant will be based on the average sale price of all Common Shares so commingled and sold on the same day.

 

    6

     

    

 

Participation in the Plan for a registered Participant
will be terminated upon receipt by the Agent of evidence of the death of a Participant from such Participant’s duly appointed legal
representative. In such case, a certificate or DRS Advice for the whole number of Common Shares in the Participant’s account will
be issued in the name of the deceased Participant and/or the name of the estate of the deceased Participant, as appropriate, along with
a cash payment for any fraction of a Common Share in the account which will be converted by the Agent at the prevailing market price at
the time of sale. Requests for issuance of a certificate, DRS Advice and/or a cash payment for a fractional Common Share in the name of
an estate must be accompanied by appropriate documentation.

 

Non-registered Participants should contact their
Nominee to determine the procedures for terminating their participation in the Plan.

 

After termination of a Shareholder’s participation
in the Plan, all dividends on such Shareholder’s Common Shares will no longer be paid to the Agent.

 

The Corporation reserves the right to terminate
participation in the Plan if the number of Common Shares purchased for a Participant under the Plan is less than one (1) Common Share
over a period of twelve (12) consecutive months. Upon termination by the Corporation pursuant to this provision, the Agent will sell fractional
Common Shares in the Participant’s account and pay the Participant the proceeds of such sale, net of brokerage commissions, transfer
taxes and withholding taxes, if any, together with a cash payment for any fraction of a Common Share in the account which will be converted
by the Agent at the prevailing market price at the time of sale.

 

All cash payments in respect of fractional Common
Shares under the Plan to be paid pursuant to the terms of this Plan will be calculated based on the price received by the Agent in respect
of the sale of the Common Shares on Canadian open markets, including the facilities of the Toronto Stock Exchange or the alternative Canadian
open market or the New York Stock Exchange, on the date on which the termination is processed by the Agent.

 

A Participant having a Canadian mailing address
as shown on the records of the Agent will receive payment in Canadian currency and a Participant having a non-Canadian mailing address
as shown on the records of the Agent will receive payment in United States currency.

 

		13.	RIGHTS OFFERINGS

 

If the Corporation makes available to its registered
holders of Common Shares any rights to subscribe for additional Common Shares or other securities, rights certificates or similar instruments
will, subject to compliance with applicable laws and regulations, be forwarded to Participants in the Plan, or to CDS or another Nominee,
as applicable, in proportion to the number of whole Common Shares owned, including Common Shares being held for them by the Agent. Such
rights will not be made available for any fraction of a Common Share held for a Participant.

 

    7

     

    

 

		14.	STOCK DIVIDENDS AND SHARE SUBDIVISIONS

 

Any stock dividends on the Common Shares will
be credited to a Participant’s account based on whole and fractional Common Shares being held for a Participant by the Agent. Common
Shares resulting from a share subdivision will also be credited to a Participant’s account based on whole and fractional Common
Shares being held for a Participant by the Agent. Certificates and DRS Advices for Common Shares resulting from such a stock dividend
or share subdivision with respect to Common Shares held in certificate form by a Participant will be mailed directly to the Participant
in the same manner as to Shareholders who are not participating in the Plan.

 

		15.	SHARE VOTING

 

Whole Common Shares held in a Participant’s
account by the Agent will be voted in the same manner as Common Shares held by a Shareholder in certificate form or pursuant to a DRS
Advice, either by proxy or by the Participant in person. Shares for which instructions are not received will not be voted. A fractional
Common Share does not carry the right to vote.

 

		16.	RESPONSIBILITIES OF THE CORPORATION AND THE AGENT

 

Neither the Corporation nor the Agent shall be
liable for any act or for any omission to act in connection with the operation of the Plan including, without limitation, any claims for
liability:

 

		(a)	with respect to any failure by CDS or a Nominee to enrol
or not enrol in the Plan any holder of Common Shares (or, as applicable, any Common Shares held on such holder’s behalf) in accordance
with the Shareholder’s instructions or to not otherwise act upon a Shareholder’s instructions;

 

		(b)	with respect to the continued enrollment in the Plan of any
Shareholder (or, as applicable, any Common Shares held on such Shareholder’s behalf) until receipt of all necessary documentation
as provided herein required to terminate participation in the Plan;

		 	 

		(c)	arising out of the failure to terminate a Participant’s
account upon such Participant’s death prior to receipt of notice in writing of such death;

		 	 

		(d)	with respect to the prices and times at which Common Shares
are purchased on the open market for the account of or on behalf of a Participant;

		 	 

		(e)	with respect to any decision to amend or terminate the Plan
in accordance with the terms hereof;

		 	 

		(f)	with respect to any determination made by the Corporation
or the Agent regarding a Shareholder’s eligibility to participate in the Plan or any component thereof, including the cancellation
of a Shareholder’s participation for failure to satisfy eligibility requirements; or

		 	 

		(g)	with respect to any taxes or other liabilities payable by
a Shareholder in connection with their Common Shares or their participation in the Plan.

 

By enrolling in the Plan, Participants should acknowledge that neither
the Corporation nor the Agent can assure a profit or protect them against a loss on the Common Shares purchased under the Plan.

 

    8

     

    

 

		17.	RISK
                                            OF MARKET PRICE FLUCTUATIONS

 

A Participant’s investment in Common Shares
acquired under the Plan is no different from an investment in Common Shares directly held. Accordingly, neither the Corporation nor the
Agent can assure a profit or protect Participants against a loss on Common Shares acquired under the Plan and each Participant shall
bear the risk of loss and realize the benefits of any gain from market price changes or otherwise with respect to Common Shares acquired
under the Plan.

 

		18.	AMENDMENT,
                                            SUSPENSION OR TERMINATION OF THE PLAN

 

The Corporation reserves the right to amend,
suspend or terminate the Plan at any time, but such action shall have no retroactive effect that would prejudice the interests of the
Participants. Where required, amendments to the Plan will be subject to the prior approval of the Toronto Stock Exchange and the New
York Stock Exchange, as applicable. All Participants will be sent written notice or be informed by way of news release of the Corporation
of any such amendment, suspension or termination. In the event of termination of the Plan by the Corporation, the Agent will send to
the Participants (or to their Nominees, as applicable) certificates or DRS Advices for whole Common Shares held for Participants’
accounts under the Plan and cheques in payment for any remaining fractions of Common Shares in Participants’ accounts which will
be based on the prevailing market price of the time of sale. In the event of suspension of the Plan by the Corporation, no investment
will be made by the Agent during the Investment Period immediately following the effective date of such suspension. Any dividends on
the Common Share subject to the Plan and paid after the effective date of such suspension will be remitted by the Agent to the Participants
(without interest or deduction thereon except applicable withholding tax).

 

		19.	RULES
                                            AND REGULATIONS

 

The Corporation, in conjunction with the Agent,
may from time to time adopt rules and regulations to facilitate the administration of the Plan. The Corporation also reserves the right
to regulate and interpret the Plan as it deems necessary or desirable to ensure the efficient and equitable operation of the Plan.

 

		20.	COMPLIANCE
                                            WITH LAWS

 

The operation and implementation of the Plan
is subject to compliance with all applicable legal requirements, including obtaining all appropriate regulatory approvals and exemptions
from registration and prospectus requirements, and the requirements of any stock exchange on which the Common Shares are listed. The
Corporation may limit the Common Shares issuable under the Plan in connection with any discretionary exemptive relief relating to the
Plan granted by any securities regulatory authority.

 

		21.	GOVERNING
                                            LAW

 

The Plan shall be governed by and construed in
accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

 

		22.	CURRENCY

 

All monetary amounts identified in the Plan are
in Canadian and United States dollars, unless otherwise expressly stated.

 

    9

     

    

 

		23.	TAX
                                            CONSIDERATIONS

 

Canadian Federal Income Tax Considerations

 

The following is a summary of principal Canadian
federal income tax considerations generally applicable to Shareholders who participate in the Plan. This summary is of a general nature
only, is not exhaustive of all possible tax considerations and is not intended to be legal or tax advice to any particular Shareholder.

 

This summary is provided by and on behalf
of the Corporation and not the Agent. The summary is for general information only and is not intended to be legal or tax advice to any
particular Shareholder. Shareholders, including Shareholders in jurisdictions other than Canada or the United States, are urged to consult
their own tax advisors as to their particular circumstances.

 

Certain Canadian Federal Income Tax Considerations

 

The following is a general summary of the principal
Canadian federal income tax considerations under the Income Tax Act (Canada) (the “Tax Act”) and the Income
Tax Regulations (the “Regulations”) generally applicable to a Participant (a “Specified Participant”)
that, at all relevant times, for purposes of the Tax Act, deals at arm’s length with and is not affiliated with the Corporation
and holds Common Shares as capital property, all within the meaning of the Tax Act.

 

This summary does not apply to a Participant:
(i) that is a “financial institution” for purposes of the “mark-to-market” rules in the Tax Act; (ii) that is
a “specified financial institution”; (iii) an interest in which is or would constitute a “tax shelter investment”;
(iv) that has entered or will enter into, with respect to the Common Shares, a “synthetic disposition arrangement” or a “derivative
forward agreement”; (v) that is a corporation resident in Canada that is or becomes a part of a transaction or event or series
of transactions or events to which the foreign affiliate dumping rules in section 212.3 of the Tax Act apply; (vi) that reports its “Canadian
tax results” in a currency other than Canadian currency; or (vii) that is exempt from tax under the Tax Act, all as defined in
the Tax Act. Such Participants should consult their own tax advisor.

 

This summary is based upon the current provisions
of the Tax Act and the Regulations in force as of the date hereof, specific proposals to amend the Tax Act and the Regulations that have
been publicly announced by or on behalf of the Minister of Finance (Canada) prior to such date (the “Tax Proposals”),
and the current published administrative policies and assessing practices of the Canada Revenue Agency. This summary assumes that the
Tax Proposals will be enacted in the form proposed and does not otherwise take into account or anticipate any changes in law or administrative
practices, whether by legislative, governmental or judicial decision or action, nor does it take into account provincial, territorial
or foreign tax considerations, which may differ from the Canadian federal income tax considerations discussed herein. No assurance can
be given that the Tax Proposals will be enacted as proposed or at all, or that legislative, judicial or administrative changes will not
modify or change the statements expressed herein.

 

This summary is of a general nature only and
is not, and is not intended to be, legal or tax advice to any particular Participant under the Plan. This summary is not exhaustive of
all Canadian federal income tax considerations applicable to Participants. Accordingly, Participants should consult their own tax advisor,
with respect to the tax consequences applicable to them having regard to their own particular circumstances.

 

For the purposes of the Tax Act, all U.S.
dollar amounts relating to the acquisition, holding or disposition of Common Shares must generally be expressed in Canadian dollars using
the appropriate exchange rate determined in accordance with the detailed rules in the Tax Act in that regard. As a result, the amount
required to be included in the income of a Specified Participant may be affected by virtue of fluctuations in the value of the U.S. dollar
relative to the Canadian dollar.

 

    10

     

    

 

Canadian Residents

 

This portion of the summary is generally applicable
to a Specified Participant that, at all relevant times, for purposes of the Tax Act, is resident in Canada, or is deemed to be resident
in Canada (a “Canadian Participant”).

 

The reinvestment of dividends under the terms
of the Plan does not relieve a Canadian Participant from any liability for income taxes that may otherwise be payable on such amounts.
In this regard, a Canadian Participant who participates in the Plan will be treated, for tax purposes, as having received, on each dividend
payment date, a taxable dividend equal to the amount of the dividend payable on such date, which dividend will be subject to the same
tax treatment accorded to taxable dividends received by the Canadian Participant from a taxable Canadian corporation.

 

For example, in the case of a Canadian Participant
who is an individual (including certain trusts), such dividends will be subject to the normal gross-up and dividend tax credit rules
applicable to taxable dividends received by an individual from taxable Canadian corporations, including the enhanced gross-up and dividend
tax credit for “eligible dividends” properly designated as such by the Corporation. Taxable dividends received by such a
Canadian Participant may give rise to minimum tax under the Tax Act, depending on the individual’s circumstances. In the case of
a Canadian Participant that is a corporation, such dividends will be included in the Canadian Participant’s income and will normally
be deductible in computing such Canadian Participant’s taxable income. In certain circumstances, subsection 55(2) of the Tax Act
will treat a taxable dividend by a Canadian Participant that is a corporation as proceeds of disposition or a capital gain. Canadian
Participants that are corporations are urged to consult their own tax advisor having regard to their particular circumstances. A Canadian
Participant that is a “private corporation” or “subject corporation” (as such terms are defined in the Tax Act)
may be liable to pay a refundable tax under Part IV of the Tax Act on such dividends to the extent that such dividends are deductible
in computing the Canadian Participant’s taxable income for the year. Other taxes could apply depending on the circumstances of
the Canadian Participant.

 

If cash dividends are reinvested in Common Shares
for a Canadian Participant under the Plan in a Treasury Acquisition, and if the Corporation determines to issue such Common Shares at
a discount of up to 5%, at the discretion of the Corporation, from the Average Market Price, such discount should not give rise to a
taxable benefit under the Tax Act to such Canadian Participant.

 

A Canadian Participant should not realize any
additional income under the Tax Act when the Participant receives certificates for whole Common Shares previously credited to the Participant’s
account under the Plan, either upon the Participant’s request, upon termination of participation in the Plan or upon termination
of the Plan. Generally, one-half of any capital gain realized by a Canadian Participant on a disposition of a Common Share acquired pursuant
to the Plan must be included in the Canadian Participant’s income for the year as a taxable capital gain. Subject to certain specific
rules in the Tax Act, one-half of any capital loss realized by a Participant on a disposition of a Common Share in a taxation year will
be an allowable capital loss which must be deducted from any taxable capital gains realized by the Canadian Participant in the year of
disposition. Allowable capital losses for a taxation year in excess of taxable capital gains for that year generally may be carried back
and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year against net
taxable capital gains realized in such years to the extent and under the circumstances discussed in the Tax Act.

 

    11

     

    

 

When a Canadian Participant’s participation in the Plan is terminated
by the Canadian Participant or the Corporation or when the Plan is terminated by the Corporation, the Canadian Participant may receive
a cash payment. A deemed dividend may arise if the cash payment for a fractional Common Share exceeds the paid-up capital in respect
of such fractional Common Share and a capital gain (or loss) may also be realized in certain circumstances. A deemed dividend is treated
in the manner described above in respect of dividends.

 

The disposition by a Canadian Participant to
the Corporation of a fraction of a Common Share in consideration for cash (either upon the Canadian Participant’s request, upon
termination of participation in the Plan or upon termination of the Plan) may give rise to a deemed dividend to the Canadian Participant
as well as a capital gain or capital loss.

 

The cost to a Canadian Participant of Common
Shares acquired under the Plan will be the price paid for those shares by the Canadian Participant. The adjusted cost base of such Common
Shares to the Canadian Participant will be computed by averaging the cost of those shares with the adjusted cost base of all other Common
Shares of the Corporation held by the Canadian Participant as capital property.

 

A Canadian Participant who disposes of or is
deemed to have disposed of Common Shares acquired pursuant to the Plan (including on the disposition of a fraction of a Common Share
in consideration for cash upon termination of participation in the Plan or upon termination of the Plan) will generally realize a capital
gain (or incur a capital loss) equal to the amount by which the proceeds of disposition of such Common Shares exceed (or are exceeded
by) the aggregate of the adjusted cost base of such Common Shares immediately before the disposition or deemed disposition and any reasonable
expenses associated with the disposition or deemed disposition. Canadian Participants will generally be subject to the tax treatment
normally applicable under the Tax Act in respect of such capital gains or capital losses. For example, generally one-half of any such
capital gain (a “taxable capital gain”) realized by a Canadian Participant must be included in the Canadian Participant’s
income for the taxation year in which the disposition occurs. Capital gains realized by a Canadian Participant who is an individual (including
certain trusts) may result in the individual paying minimum tax under the Tax Act. A Canadian Participant that is a “Canadian-controlled
private corporation” (as defined in the Tax Act) may be liable to pay a refundable tax on its “aggregate investment income”
(as defined in the Tax Act) for the year, which is defined to include an amount in respect of taxable capital gains.

 

U.S. Residents

 

This portion of the summary
is generally applicable to a Specified Participant that, at all relevant times: (i) is neither resident in Canada nor deemed to be resident
in Canada for purposes of the Tax Act; (ii) is a resident of the U.S. and is a “qualifying person” within the meaning of
the Canada-United States Income Tax Convention (1980), as amended (the “Treaty”); and (iii) does not use or hold and is not
deemed to use or hold common shares in a business carried on in Canada (a “U.S. Resident Participant”). U.S. Resident Participants
are urged to consult with their own tax advisor to determine their entitlement to benefits under the Treaty based on their particular
circumstances.

 

Special rules, which are
not discussed in this summary, may apply to a U.S. Resident Participant that is an insurer that carries on an insurance business in Canada
and elsewhere or an authorized foreign bank (as defined in the Tax Act). Such U.S. Resident Participant should consult with their own
tax advisor as to their particular circumstances.

 

The reinvestment of dividends
under the terms of the Plan does not relieve a U.S. Resident Participant from any liability for income taxes that may otherwise be payable
on such amounts. In this regard, a U.S. Resident Participant who participates in the Plan will be treated, for tax purposes, as having
received, on each dividend payment date, a taxable dividend equal to the amount of the dividend payable on such date, which dividend
will be subject to the same tax treatment accorded to taxable dividends received by the U.S. Resident Participant from a taxable Canadian
corporation.

 

    12

     

    

 

All cash dividends paid on
Common Shares held by a U.S. Resident Participant will generally be subject to the treatment under the Tax Act normally applicable to
taxable dividends from taxable Canadian corporations even if such dividends are reinvested in Common Shares under the Plan on behalf
of a U.S. Resident Participant. For example, such dividends will be subject to Canadian withholding tax at the rate of 25%, subject to
any reduction in the rate of withholding to which the U.S. Resident Participant is entitled under the Treaty. Under the Treaty if the
U.S. Resident Participant is the beneficial owner of such dividends, the applicable rate of Canadian withholding tax is generally reduced
to 15%. The amount in respect of such dividends to be reinvested under the Plan will be reduced by the amount of any such applicable
withholding tax.

 

The disposition by a U.S.
Resident Participant to the Corporation of a fraction of a Common Share in consideration for cash (either upon the U.S. Resident Participant’s
request, upon termination of participation in the Plan or upon termination of the Plan) may give rise to a deemed dividend which is subject
to withholding tax as well as capital gain or capital loss.

 

A U.S. Resident Participant
will not be subject to tax under the Tax Act in respect of any capital gain realized by such U.S. Resident Participant on a disposition
of Common Shares (including upon the disposition of a fractional Common Share), unless the Common Shares constitute “taxable Canadian
property” (as defined in the Tax Act) of the U.S. Resident Participant at the time of the disposition and the U.S. Resident Participant
is not entitled to relief under the Treaty. Generally, as long as the Common Shares are listed on a “designated stock exchange”
(which includes the Toronto Stock Exchange and the New York Stock Exchange) at a particular time, such shares will not constitute taxable
Canadian property to a U.S. Resident Participant at such time unless at any time during the sixty (60) month period that ends at that
time: (a) the U.S. Resident Participant, persons with which the U.S. Resident Participant does not deal at arm’s length, partnerships
whose members include, either directly or indirectly through one or more partnerships, the U.S. Resident Participant or persons which
do not deal at arm’s length with the U.S. Resident Participant, or any combination of them, owned 25% or more of the issued shares
of any class or series of shares of the capital stock of the Corporation; and (b) more than 50% of the fair market value of the Common
Shares was derived directly or indirectly from one or any combination of (i) real or immovable property situated in Canada, (ii) “Canadian
resource properties” (as defined in the Tax Act), (iii) “timber resource properties” (as defined in the Tax Act), and
(iv) options in respect of, or interests in, or for civil law rights in, property described in (i), (ii) and (iii), whether or not such
property exists. U.S. Resident Participants holding Common Shares that constitute taxable Canadian property should consult their own
tax advisor.

 

United States Income Tax Considerations for U.S. Participants

 

The following is a general
summary of certain material U.S. federal income tax considerations applicable to a U.S. Holder (as defined below) that participates in
the Plan (referred to as a “U.S. Participant”). This summary is for general information purposes only and does not
purport to be a complete analysis or listing of all potential U.S. federal income tax considerations that may apply to a U.S. Participant
arising from and relating to the acquisition, ownership and disposition of Common Shares acquired pursuant to the Plan. In addition,
this summary does not take into account the individual facts and circumstances of any particular U.S. Participant that may affect the
U.S. federal income tax consequences to such U.S. Participant, including specific tax consequences to a U.S. Participant under an applicable
tax treaty. Accordingly, this summary is not intended to be, and should not be construed as, legal or U.S. federal income tax advice
with respect to any U.S. Participant. This summary does not address the U.S. federal alternative minimum, U.S. federal estate and gift,
U.S. state and local, or non-U.S. tax consequences to U.S. Participants of the acquisition, ownership and disposition of Common Shares
acquired pursuant to the Plan. Except as specifically set forth below, this summary does not discuss applicable tax reporting requirements.
Each prospective participant in the Plan should consult its own tax advisor regarding the U.S. federal, U.S. federal alternative minimum,
U.S. federal estate and gift, U.S. state and local, and non-U.S. tax consequences relating to the acquisition, ownership and disposition
of Common Shares acquired pursuant to the Plan.

 

    13

     

    

 

No ruling from the United
States Internal Revenue Service (the “IRS”) has been requested, or will be obtained, regarding the U.S. federal income
tax consequences of the acquisition, ownership and disposition of Common Shares acquired pursuant to the Plan. This summary is not binding
on the IRS, and the IRS is not precluded from taking a position that is different from, and contrary to, the positions taken in this
summary. In addition, because the authorities on which this summary is based are subject to various interpretations, the IRS and the
U.S. courts could disagree with one or more of the conclusions described in this summary.

 

Scope of this Summary

 

Authorities

 

This summary is based on
the United States Internal Revenue Code of 1986, as amended (the “Code”), Treasury Regulations (whether final, temporary,
or proposed), published rulings of the IRS, published administrative positions of the IRS, the Convention Between Canada and the United
States of America with Respect to Taxes on Income and on Capital, signed September 26, 1980, as amended (the “Canada-U.S. Tax
Convention”), and U.S. court decisions that are applicable and, in each case, as in effect and available as of the date of
this prospectus. Any of the authorities on which this summary is based could be changed in a material and adverse manner at any time,
and any such change could be applied on a retroactive or prospective basis, which could affect the U.S. federal income tax considerations
described in this summary. This summary does not discuss the potential effects, whether adverse or beneficial, of any proposed legislation
that, if enacted, could be applied on a retroactive or prospective basis.

 

U.S. Holders

 

For purposes of this summary,
the term “U.S. Holder” means a beneficial owner of Common Shares that is for U.S. federal income tax purposes:

 

		•	an
                                            individual who is a citizen or resident of the United States;

 

		•	a
                                            corporation (or other entity treated as a corporation for U.S. federal income tax purposes)
                                            organized under the laws of the United States, any state thereof or the District of Columbia;

 

		•	an
                                            estate whose income is subject to U.S. federal income taxation regardless of its source;
                                            or

 

		•	a
                                            trust that (a) is subject to the primary supervision of a court within the United States
                                            and the control of one or more U.S. persons for all substantial decisions or (b) has a valid
                                            election in effect under applicable Treasury Regulations to be treated as a U.S. person.

 

    14

     

    

 

U.S. Participants Subject to Special U.S. Federal Income
Tax Rules Not Addressed

 

This summary does not address
the U.S. federal income tax considerations applicable to U.S. Participants that are subject to special provisions under the Code, including,
but not limited to, the following: (a) U.S. Participants that are tax-exempt organizations, qualified retirement plans, individual retirement
accounts, or other tax-deferred accounts; (b) U.S. Participants that are financial institutions, underwriters, insurance companies, real
estate investment trusts, or regulated investment companies; (c) U.S. Participants that are broker-dealers, dealers, or traders in securities
or currencies that elect to apply a mark-to-market accounting method; (d) U.S. Participants that have a “functional currency”
other than the U.S. dollar; (e) U.S. Participants that own Common Shares as part of a straddle, hedging transaction, conversion transaction,
constructive sale, or other arrangement involving more than one position; (f) U.S. Participants that acquire Common Shares in connection
with the exercise of employee stock options or otherwise as compensation for services; (g) U.S. Participants that hold Common Shares
other than as a capital asset within the meaning of Section 1221 of the Code (generally, property held for investment purposes); (h)
U.S. Participants that own or have owned (directly, indirectly, or by attribution) 10 percent or more of the total combined voting power
or value of all outstanding shares of the Corporation; or (i) U.S. Participants that are U.S. expatriates or former long-term residents
of the United States. U.S. Participants that are subject to special provisions under the Code, including, but not limited to, U.S. Participants
described immediately above, should consult their own tax advisors regarding the U.S. federal, U.S. federal alternative minimum, U.S.
federal estate and gift, U.S. state and local, and non-U.S. tax consequences relating to the acquisition, ownership and disposition of
Common Shares and participation in the Plan.

 

If an entity or arrangement
that is classified as a partnership (or other “pass-through” entity) for U.S. federal income tax purposes holds Common Shares,
the U.S. federal income tax consequences to such entity and the partners (or other owners) of such entity generally will depend on the
activities of the entity and the status of such partners (or owners). This summary does not address the tax consequences to any such
owner. Partners (or other owners) of entities or arrangements that are classified as partnerships or as “pass-through” entities
for U.S. federal income tax purposes should consult their own tax advisors regarding the U.S. federal income tax consequences arising
from and relating to the acquisition, ownership and disposition of Common Shares and participation in the Plan.

 

Ownership and Disposition of Common Shares

 

The following discussion
is subject to the rules described below under the heading “Passive Foreign Investment Company Rules.”

 

Tax Considerations Relating to Dividend Reinvestment

 

In the case of a treasury
acquisition, a U.S. Participant will be treated as receiving a distribution for U.S. federal income tax purposes in an amount equal to
the fair market value of the Common Shares acquired pursuant to the Plan plus the amount of any Canadian withholding tax withheld therefrom.
The fair market value of the Common Shares so acquired will be equal to the average of the high and low sale prices of the Common Shares
on the dividend payment date, which amount may be higher or lower than the average market price used to determine the number of Common
Shares so acquired pursuant to the Plan. In the case of a market acquisition, a U.S. Participant will be treated as receiving a distribution
for U.S. federal income tax purposes in an amount equal to the amount of the dividend used to purchase Common Shares on the open market
(without reduction for any Canadian tax withheld from such dividend) and to pay any brokerage commissions, fees, transaction costs, or
other related charges. The amount of any such distribution to a U.S. Participant (reduced by any Canadian tax withheld from such distribution)
generally will be such U.S. Participant’s tax basis in the Common Shares acquired pursuant to the Plan. A U.S. Participant’s
holding period for such Common Shares will begin on the day following the date of acquisition.

 

Any distribution to a U.S.
Participant described in the preceding paragraph generally will be subject to U.S. federal income tax in the same manner as cash distributions
described below under the heading “Distributions Generally.” If U.S. backup withholding tax applies to any dividends paid
that are to be reinvested in Common Shares, the number of Common Shares credited to a U.S. Participant’s account will be reduced
as a result of such backup withholding. Tax information reporting generally will apply to dividends reinvested in Common Shares by a
U.S. Participant pursuant to the Plan. See the discussion below under the heading “Additional Considerations – Backup Withholding
and Additional Information Reporting.”

 

    15

     

    

 

Distributions Generally

 

A U.S. Participant that receives
a distribution, including a constructive distribution, with respect to a Common Share will be required to include the amount of such
distribution in gross income as a dividend (including the amount of any Canadian income tax withheld from such distribution) to the extent
of the current or accumulated “earnings and profits” of the Corporation, as calculated for U.S. federal income tax purposes.
To the extent that a distribution exceeds the current and accumulated earnings and profits of the Corporation, such distribution will
be treated first as a tax-free return of capital to the extent of a U.S. Participant’s tax basis in the Common Shares and thereafter
as gain from the sale or exchange of such Common Shares. (See “Sale or Other Taxable Disposition of Common Shares” below.)
However, the Corporation may not calculate earnings and profits in accordance with U.S. federal income tax principles, and each U.S.
Participant should therefore assume that any distribution by the Corporation with respect to the Common Shares will be treated as ordinary
dividend income for U.S. federal information reporting purposes.

 

Subject to certain holding
period and other requirements, dividends received by non-corporate U.S. Participants from a “qualified foreign corporation”
may be eligible for reduced rates of taxation. A qualified foreign corporation includes a foreign corporation that is eligible for the
benefits of a comprehensive income tax treaty with the United States that the U.S. Treasury Department determines to be satisfactory
for these purposes and that includes an exchange of information provision. The U.S. Treasury has determined that the Canada-U.S. Tax
Convention meets these requirements, and the Corporation believes that it is eligible for the benefits of the Canada-U.S. Tax Convention.
A foreign corporation is also treated as a qualified foreign corporation with respect to dividends paid by that corporation on ordinary
shares that are readily tradeable on an established securities market in the United States. U.S. Treasury guidance indicates that the
Corporation’s Common Shares are readily tradeable on an established securities market in the United States. However, there can
be no assurance that the Common Shares will be considered readily tradeable on an established securities market in future years. If the
Corporation is classified as a PFIC (as defined below) in the taxable year of distribution or in the preceding taxable year, then dividends
received by U.S. Participants will not be qualified dividends. Dividends received by corporate U.S. Participants generally will not be
eligible for the “dividends received deduction.” The dividend rules are complex, and each U.S. Participant should consult
its own tax advisor regarding the application of such rules.

 

Sale or Other Taxable Disposition of Common Shares

 

Upon the sale or other taxable
disposition of Common Shares, a U.S. Participant generally will recognize capital gain or loss in an amount equal to the difference between
the U.S. dollar value of cash received plus the fair market value of any property received and such U.S. Participant’s tax basis
in such Common Shares sold or otherwise disposed of. A U.S. Participant’s tax basis in Common Shares generally will be such participant’s
U.S. dollar cost for such shares. Gain or loss recognized on such sale or other disposition generally will be long-term capital gain
or loss if, at the time of the sale or other disposition, the Common Shares have been held for more than one year.

 

    16

     

    

 

Preferential tax rates apply
to long-term capital gain of a U.S. Participant that is an individual, estate, or trust. There are currently no preferential tax rates
for long-term capital gain of a U.S. Participant that is a corporation. Deductions for capital losses are subject to significant limitations
under the Code.

 

Passive Foreign Investment Company Rules

 

If the Corporation were to
constitute a “passive foreign investment company” within the meaning of Section 1297 of the Code (a “PFIC”)
for any year during a U.S. Participant’s holding period, then certain different and potentially adverse U.S. federal income tax
rules would affect the U.S. federal income tax consequences to a U.S. Participant resulting from the acquisition, ownership and disposition
of Common Shares. The U.S. Treasury Department has not issued specific guidance on how the income and assets of a non-U.S. corporation
such as the Corporation will be treated under the PFIC rules.

 

The Corporation generally
will be a PFIC for any taxable year in which, after applying relevant look-through rules with respect to the income and assets of subsidiaries,
(a) 75 percent or more of its gross income is passive income (the “income test”) or (b) 50 percent or more of its assets
either produce passive income or are held for the production of passive income, based on the quarterly average of the fair market values
of such assets (the “asset test”). “Gross income” generally includes all sales revenues less the cost of goods
sold, plus income from investments and from incidental or outside operations or sources. “Passive income” generally includes,
for example, dividends, interest, certain rents and royalties, certain gains from the sale of stock and securities, and certain gains
from commodities transactions. Passive income generally excludes active business gains arising from the sale of commodities, if substantially
all of a foreign corporation’s commodities are stock in trade or inventory, real and depreciable property used in a trade or business,
or supplies regularly used or consumed in a trade or business, and certain other requirements are satisfied.

 

Under certain attribution
rules, if the Corporation were a PFIC, U.S. Participants would generally be deemed to own their proportionate share of the Corporation’s
direct or indirect equity interest in any company that is also a PFIC (a “Subsidiary PFIC”), and would be subject
to U.S. federal income tax on any indirect gain realized on the stock of a Subsidiary PFIC upon the sale of the Common Shares of the
Corporation, as well as their proportionate share of (a) any “excess distributions” (as discussed below) on the stock of
a Subsidiary PFIC and (b) any gain realized upon the disposition or deemed disposition of stock of a Subsidiary PFIC by the Corporation
or by another Subsidiary PFIC, both as if such U.S. Participants directly held the shares of such Subsidiary PFIC. If the Corporation
were classified as a PFIC for any taxable year in which a U.S. Participant held Common Shares, then the Corporation generally would continue
to be classified as a PFIC with respect to such U.S. Participant for any subsequent taxable year in which the U.S. Participant continued
to hold Common Shares, even if the Corporation’s income or assets would not cause it to be a PFIC in such subsequent taxable year,
unless an exception were to apply.

 

The Corporation believes,
on a more-likely-than-not basis, that it currently qualifies, and expects to continue to qualify in the future, for the active commodities
business exception for purposes of the PFIC asset test and PFIC income test. Accordingly, the Corporation believes, on a more-likely-than-not
basis, that it was not a PFIC for its taxable year ended December 31, 2017, and, based on its current and anticipated business activities
and financial expectations, the Corporation expects, on a more-likely-than-not basis, that it will not be a PFIC for its current taxable
year and for the foreseeable future. However, the Corporation believes that it was a PFIC for its taxable year ended December 31, 2011,
and prior taxable years.

 

The determination as to whether
any corporation was, or will be, a PFIC for a particular taxable year depends, in part, on the application of complex U.S. federal income
tax rules, which are subject to differing interpretations and uncertainty. In addition, there is limited authority on the application
of the active commodities exception and other relevant PFIC rules to entities such as the Corporation and its subsidiaries. Accordingly,
there can be no assurance that the IRS will not challenge the views of the Corporation (or a Subsidiary PFIC, as defined above) concerning
its PFIC status. In addition, whether any corporation will be a PFIC for any taxable year depends on its assets and income over the course
of such taxable year, and, as a result, the Corporation’s PFIC status for its current taxable year and any future taxable year
cannot be predicted with certainty. Each U.S. Participant should consult its own tax advisor regarding the PFIC status of the Corporation
and any Subsidiary PFIC.

 

    17

     

    

 

If the Corporation were a
PFIC for any taxable year in which a U.S. Participant held Common Shares, and such U.S. Participant had not made an effective QEF Election
or Mark-to-Market Election under the PFIC rules (as defined and more fully described below) with respect to its Common Shares, then such
holder generally would be subject to special rules with respect to “excess distributions” made by the Corporation on the
Common Shares and with respect to gain from the direct or indirect disposition of Common Shares. An “excess distribution”
generally would include the excess of distributions made with respect to the Common Shares to a U.S. Participant in any taxable year
over 125% of the average annual distributions made to such U.S. Participant by the Corporation during the shorter of the three preceding
taxable years or such U.S. Participant’s holding period for the Common Shares. Generally, a U.S. Participant would be required
to allocate any excess distribution or gain from the direct or indirect disposition of the Common Shares ratably over its holding period
for the Common Shares. Amounts allocated to the year of the disposition or excess distribution would be taxed as ordinary income, and
amounts allocated to prior taxable years would be taxed at the highest tax rate in effect for ordinary income for each such year. In
addition, an interest charge would apply.

 

If the Corporation were a
PFIC for any taxable year in which a U.S. Participant held Common Shares, and such U.S. Participant had made a timely and effective election
to treat the Corporation as a “qualified electing fund” (a “QEF Election”) for the first taxable year of such
U.S. Participant’s holding period in which the Corporation were classified as a PFIC, then such U.S. Participant generally would
not be subject to the PFIC rules described in the preceding paragraph. Instead, such U.S. Participant would be subject to U.S. federal
income tax on such holder’s pro rata share of (a) the net capital gain of the Corporation, which would be taxed as long-term capital
gain to such U.S. Participant, and (b) the ordinary earnings of the Corporation, which would be taxed as ordinary income to such U.S.
Participant. A QEF Election, once made, would be effective with respect to such U.S. Participant’s Common Shares for all subsequent
taxable years in which the Corporation were treated as a PFIC, unless the QEF Election were invalidated or terminated or the IRS were
to consent to revocation of the QEF Election. The QEF Election cannot be made unless the Corporation provides or makes available certain
information. To facilitate the making of QEF Elections by U.S. Participants, for each taxable year that the Corporation is classified
as a PFIC, the Corporation intends to: (a) make available to U.S. Participants, upon written request, a “PFIC Annual Information
Statement” and (b) upon written request, use commercially reasonable efforts to provide all additional information that such U.S.
Participant is required to obtain in connection with maintaining such QEF Election with regard to the Corporation or any of its Subsidiary
PFICs. The Corporation may provide such information on its website (www.franco-nevada.com). U.S. Participants considering the QEF Election
should note that a QEF Election with respect to Common Shares would not apply to any Subsidiary PFICs. Consequently, unless a U.S. Participant
makes a QEF Election with respect to any Subsidiary PFIC, it could be subject to the adverse tax consequences described above with respect
to any interests in a Subsidiary PFIC. In light of the uncertainties described above, the Corporation has provided such information for
all taxable years through 2016 despite its belief on a more-likely-than-not basis that it was not a PFIC for any taxable year after 2011;
however, the Corporation reserves the right to and may discontinue this practice in the future.

 

    18

     

    

 

If the Corporation were a
PFIC for any taxable year in which a U.S. Participant held Common Shares, and such U.S. Participant had made a timely and effective “mark
to market” election (a “Mark-to-Market Election”) in the first taxable
year of such U.S. Participant’s holding period in which the Corporation were classified as a PFIC, then such U.S. Participant generally
would not be subject to the PFIC rules described in the preceding paragraphs. Instead, such holder generally would include in ordinary
income, for each taxable year in which the Corporation were a PFIC, an amount equal to the excess, if any, of (a) the fair market value
of the Common Shares, as of the close of such taxable year over (b) such U.S. Participant’s adjusted tax basis in such Common Shares.
The U.S. Participant would be entitled to deduct as an ordinary loss each year the excess of its adjusted tax basis in the Common Shares
over their fair market value at the end of the year, but only to the extent of the net amount previously included in income as a result
of the Mark-to-Market Election. A U.S. Participant’s adjusted tax basis in the Common Shares would be increased by the amount of
any income inclusion and decreased by the amount of any deductions under the Mark-to-Market Election rules. In addition, upon a sale
or other taxable disposition of Common Shares, a U.S. Participant that made a Mark-to-Market Election would recognize ordinary income
or ordinary loss (but only to the extent such loss did not exceed the net amount of previously included income as a result of the Mark-to-Market
Election). A Mark-to-Market Election would apply to the taxable year in which such election is made and to each subsequent taxable year,
unless the Common Shares were to cease to be “marketable stock,” the U.S. Participant were to mark the Common Shares to market
under non-PFIC provisions of the Code, or the IRS were to consent to the revocation of such election. The Mark-to-Market Election is
expected to be available with respect to the Corporation, provided that the Common Shares are “regularly traded” for U.S.
federal income tax purposes, which is expected to be the case. However, the Mark-to-Market Election will not be available with respect
to any Subsidiary PFIC. Accordingly, U.S. Participants making a Mark-to-Market Election would be subject to unfavorable tax consequences
described above with respect to any Subsidiary PFIC.

 

In any year in which the
Corporation is classified as a PFIC, a U.S. Participant generally will be required to file an annual report with the IRS containing certain
information regarding such holder’s interest in the Corporation (or a Subsidiary PFIC), subject to certain exceptions. A failure
to satisfy such reporting requirement could result in the extension of the statute of limitations with respect to federal income tax
returns filed by such U.S. Participant. The PFIC rules are complex, and each U.S. Participant should consult its own tax advisor regarding
the foregoing reporting requirements, the advisability of making a QEF Election or Mark-to-Market Election, and any other tax consequences
under the PFIC rules of acquiring, owning and disposing of Common Shares.

 

Additional Considerations

 

Tax on Net Investment Income

 

Certain individuals, estates
and trusts whose income exceeds certain thresholds are required to pay a 3.8 percent additional tax on “net investment income,”
including, among other things, dividends and net gain from disposition of property (other than property held in a trade or business).
Accordingly, dividends on and capital gain from the sale or other taxable disposition of the Common Shares may be subject to this additional
tax.

 

Receipt of Foreign Currency

 

The amount of any distribution
paid to a U.S. Participant in foreign currency, or received by a U.S. Participant in foreign currency on the sale, exchange or other
taxable disposition of Common Shares, generally will be equal to the U.S. dollar value of such foreign currency based on the exchange
rate applicable on the date of receipt (regardless of whether such foreign currency is converted into U.S. dollars at that time). A U.S.
Participant generally will have a basis in the foreign currency equal to its U.S. dollar value on the date of receipt. Any U.S. Participant
who converts or otherwise disposes of the foreign currency after the date of receipt may have a foreign currency exchange gain or loss
that would be treated as ordinary income or loss, and generally will be U.S.-source income or loss for foreign tax credit purposes. Each
U.S. Participant should consult its own tax advisor regarding the U.S. federal income tax consequences of receiving, owning, and disposing
of foreign currency.

 

    19

     

    

 

Foreign Tax Credit

 

Subject to the PFIC rules
discussed above, a U.S. Participant that pays (whether directly or through withholding) Canadian income tax with respect to dividends
paid on the Common Shares generally will be entitled, at the election of such U.S. Participant, to receive either a deduction or a credit
for such Canadian income tax paid. Generally, a credit will reduce a U.S. Participant’s U.S. federal income tax liability on a
dollar-for-dollar basis, whereas a deduction will reduce a U.S. Participant’s income subject to U.S. federal income tax. This election
is made on a year-by-year basis and applies to all foreign taxes paid (whether directly or through withholding) by a U.S. Participant
during a year.

 

Complex limitations apply
to the foreign tax credit, including the general limitation that the credit cannot exceed the proportionate share of a U.S. Participant’s
U.S. federal income tax liability that such U.S. Participant’s “foreign source” taxable income bears to such U.S. Participant’s
worldwide taxable income. In applying this limitation, a U.S. Participant’s various items of income and deduction must be classified,
under complex rules, as either “foreign source” or “U.S. source.” Generally, dividends paid by a foreign corporation
should be treated as foreign-source for this purpose, and gains recognized on the sale of stock of a foreign corporation by a U.S. Participant
should be treated as U.S.-source for this purpose, except as otherwise provided in an applicable income tax treaty, and if an election
is properly made under the Code. However, the amount of a distribution with respect to the Common Shares that is treated as a “dividend”
may be lower for U.S. federal income tax purposes than it is for Canadian federal income tax purposes, resulting in a reduced foreign
tax credit allowance to a U.S. Participant. In addition, this limitation is calculated separately with respect to specific categories
of income. The foreign tax credit rules are complex and involve the application of rules that depend upon a U.S. Participant’s
particular circumstances. Each U.S. Participant should consult its own U.S. tax advisor regarding the foreign tax credit rules.

 

Disclosure Requirements for Specified Foreign Financial
Assets

 

Certain U.S. Participants
that, during any taxable year, hold an interest in a “specified foreign financial asset” generally will be required to file
with their U.S. federal income tax returns a statement on IRS Form 8938 setting forth certain information, if the aggregate value of
all such assets exceeds certain threshold amounts. “Specified foreign financial assets” generally include financial accounts
maintained with non-U.S. financial institutions and may also include Common Shares not held in accounts maintained with certain financial
institutions. Substantial penalties may be imposed, and the period of limitations on assessment and collection of U.S. federal income
taxes may be extended, in the event of a failure to comply. U.S. Participants should consult their own tax advisor as to the possible
application to them of this filing requirement.

 

Backup Withholding and Additional Information Reporting

 

Payments made within the United States or by
a U.S. payor or U.S. middleman, of dividends on, and proceeds arising from the sale or other taxable disposition of, Common Shares will
generally be subject to information reporting. Such payments may also be subject to backup withholding tax if a U.S. Participant (a)
fails to furnish such U.S. Participant’s correct U.S. taxpayer identification number (generally on Form W-9), (b) is notified by
the IRS that such U.S. Participant has previously failed to properly report interest and dividend income, or (c) fails to certify, under
penalty of perjury, that such U.S. Participant has furnished its correct U.S. taxpayer identification number, that the IRS has not notified
such U.S. Participant that it is subject to backup withholding tax, and that such U.S. Participant is a U.S. person. However, certain
exempt persons generally are excluded from these information reporting and backup withholding rules. Backup withholding is not an additional
tax. Any amounts withheld under the U.S. backup withholding tax rules will be allowed as a credit against a U.S. Participant’s
U.S. federal income tax liability, if any, or will be refunded, if such U.S. Participant furnishes the required information to the IRS
in a timely manner. Each U.S. Participant should consult its own tax advisor regarding the information reporting and backup withholding
rules.

 

    20

     

    

 

Tax consequences will vary depending on
each U.S. Participant’s specific circumstances. Each U.S. Participant should discuss specific tax questions regarding participation
in the Plan with one’s own tax advisor.

 

		24.	WITHHOLDINGS

 

The Plan is subject to any withholding obligations
that the Corporation may have with respect to taxes or other charges under applicable laws, and any amounts to be reinvested hereunder
shall be net of any amounts required to be withheld.

 

		25.	NOTICES

 

All notices required to be given under the Plan
shall be mailed to each registered Participant (including CDS and financial institutions and stock brokerages holding Common Shares as
registered holder on behalf of non-registered Participants) at the address shown on the records of the Agent or at a more recent address
as furnished by the registered Participant.

 

Notices to the Agent shall be addressed as follows:

 

Computershare Trust Company of Canada

100 University Avenue, 8th Floor

North Tower

Toronto, Ontario

M5J 2Y1

 

Attention: Dividend Reinvestment Department

 

Or the National Customer Contact Centre at 1-800-564-6253

 

Or by visiting www.investorcentre.com/service

 

Notices to the Corporation shall be addressed as follows:

 

Franco-Nevada Corporation

199 Bay Street, Suite 2000, P.O. Box 285

Commerce Court West

Toronto, Ontario M5L 1G9

 

Attention: Chief Legal Officer

Fax No: 416-306-6330

 

    21

     

    

 

		26.	PLAN
                                            ADOPTION

 

The Plan was initially adopted by the Corporation on July 19, 2013
and amended and restated on June 15, 2018.

 

    22EX-10.2

   

  Exhibit 10.2

  AMENDED AND RESTATED WINC, INC.

  EXECUTIVE SEVERANCE PLAN

   

  Adopted on October 10, 2021

  As Amended and Restated on February 28, 2022

   

  	Winc, Inc., a Delaware corporation (the “Company”), has adopted this Amended and Restated Winc, Inc. Executive Severance Plan, including the attached Exhibits (the “Plan”), for the benefit of Participants (as defined below) on the terms and conditions hereinafter stated.  The Plan, as set forth herein, is intended to provide severance protections to a select group of management or highly compensated employees (within the meaning of ERISA (as defined below)) in connection with qualifying terminations of employment.

   

  1.	Defined Terms.  Capitalized terms used but not otherwise defined herein shall have the meanings indicated below:

  1.1“Base Compensation” means the Participant’s annual base salary rate in effect immediately prior to a Qualifying Termination, disregarding any reduction which gives rise to Good Reason. 

  1.2“Board” means the Board of Directors of the Company.

  1.3“Cash Salary Severance” means the portion of a Participant’s Cash Severance that is based on the Participant’s Base Compensation determined in accordance with Exhibit A or Exhibit B attached hereto, as applicable.

  1.4“Cash Salary Severance Period” means the number of months during which the Participant is entitled to Cash Salary Severance beginning on the Date of Termination and determined in accordance with Exhibit A or Exhibit B attached hereto, as applicable.

  1.5“Cash Severance” means the Cash Salary Severance and, with respect to a CIC Termination, the Incentive Compensation Severance, determined in accordance with Exhibit A or Exhibit B attached hereto, as applicable.

  1.6“Cause” means, except as may otherwise be provided in a Participant’s employment agreement to the extent such agreement is in effect at the relevant time, any of the following events: 

  (a)the Participant’s embezzlement, theft, fraud, misappropriation or any other intentional act of dishonesty involving the Company or any of its customers, vendors, agents or employees;

  (b)the Participant’s conviction (including a plea of nolo contendere) of any felony or other crime or misdemeanor involving moral turpitude;

  (c)the Participant’s continued and deliberate failure, for thirty (30) days after written notice, to substantially perform the Participant’s duties and responsibilities to the Company that materially and adversely affects the business or reputation of the Company;

  	1

   

   

   

   

   

   

   

   

  |US-DOCS\125010999.8||

  

   

  (d)the Participant’s unauthorized use or intentional disclosure of any proprietary information or trade secrets of the Company outside the ordinary course of business, provided such use or disclosure materially damages the Company or its business or reputation; or

  (e)the Participant’s breach of any material obligations under any written agreement the Participant has with the Company.

  Notwithstanding the foregoing, the termination of the Participant’s employment under subsection (c), (d), or (e) shall not be deemed to be for Cause unless and until there shall have been delivered to the Participant a notice specifying the particular act or acts or failure to act that is the basis of such notice, and the Participant fails, within ten (10) days of the Participant’s receipt of such notice, to substantially correct the same (to the extent correctable).  For clarity, a termination without “Cause” does not include any termination that occurs as a result of the Participant’s death or disability. 

  1.7“Change in Control” shall have the meaning set forth in the Company’s 2021 Incentive Award Plan, as may be amended from time to time.

  1.8“CIC Protection Period” means the period beginning three months prior to the date of a Change in Control and ending on and including the one-year anniversary of the date of a Change in Control. 

  1.9“CIC Termination” means a Qualifying Termination which occurs during the CIC Protection Period.

  1.10“Claimant” shall have the meaning set forth in Section 11.1 hereof.

  1.11“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985.

  1.12“COBRA Period” means the number of months used to calculate the COBRA Premium Payment, determined in accordance with Exhibit A or Exhibit B attached hereto, as applicable.

  1.13“COBRA Premium Payment” shall have the meaning set forth in Section 4.2(b) hereof.

  1.14“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto.

  1.15“Committee” means the Compensation Committee of the Board, or such other committee as may be appointed by the Board to administer the Plan.

  1.16“Date of Termination” means the effective date of the termination of the Participant’s employment.

  1.17“Employee” means an individual who is an employee of the Company or any of its subsidiaries.

  1.18“Equity Award” means a Company equity-based award that vests solely based on the passage of time granted under any equity-based award plan of the Company, including, but not limited to, the Company’s 2021 Incentive Award Plan, as may be amended from time to time.

  2

   

   

   

   

   

   

   

  |

  

   

  1.19“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

  1.20“Excise Tax” shall have the meaning set forth in Section 7.1 hereof.

  1.21“Good Reason” means the occurrence of any one or more of the following events without the Participant’s prior written consent, unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction) as provided below:

  (a)a material diminution in the Participant’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities, excluding for this purpose any isolated, insubstantial or inadvertent actions not taken in bad faith and which are remedied by the Company promptly after receipt of notice thereof given by the Participant;

  (b)a material change in the geographic location at which the Participant performs his or her principal duties for the Company to a new location that is more than 30 miles from the location at which the Participant performs his or her principal duties for the Company as of the date on which the Participant first becomes a Participant in the Plan; or

  (c)any material reduction in the Participant’s Base Compensation.

  Notwithstanding the foregoing, the Participant will not be deemed to have resigned for Good Reason unless (1) the Participant provides written notice to the Company setting forth in reasonable detail the facts and circumstances claimed by the Participant to constitute Good Reason within 90 days after the date of the occurrence of any event that the Participant knows or should reasonably have known to constitute Good Reason; (2) the Company fails to cure such acts or omissions within 30 days following its receipt of such notice; and (3) the effective date of the Participant’s termination for Good Reason occurs no later than 60 days after the expiration of the Company’s cure period.  With respect to the foregoing definition, the term “Company” will be interpreted to include any subsidiary, parent, affiliate, or any successor thereto, if appropriate.

  1.22“Incentive Compensation Severance” means the portion of a Participant’s Cash Severance that is based on the Participant’s Target Incentive Compensation, determined in accordance with Exhibit B attached hereto.  

  1.23“Independent Advisors” shall have the meaning set forth in Section 7.2 hereof.

  1.24“Participant” means each Employee who is selected by the Administrator to participate in the Plan and is provided with (and, if applicable, countersigns) a Participation Notice in accordance with the Plan, other than any Employee who, at the time of his or her termination of employment, is covered by a plan or agreement with the Company or a subsidiary that provides for cash severance or termination benefits that explicitly supersedes and/or replaces the payments and benefits provided under this Plan.  For the avoidance of doubt, retention bonus payments, change in control bonus payments and other similar cash payments shall not constitute “cash severance” for purposes of this definition.  

  1.25“Participation Notice” shall have the meaning set forth in Section 2 hereof.

  3

   

   

   

   

   

   

   

  |

  

   

  1.26“Qualifying Termination” means a termination of the Participant’s employment by (i) the Company without Cause or (ii) the Participant for Good Reason.  Notwithstanding anything contained herein, in no event shall a Participant be deemed to have experienced a Qualifying Termination (a) if such Participant is offered and/or accepts a comparable employment position with the Company or any subsidiary, or (b) if in connection with a Change in Control or any other corporate transaction or sale of assets involving the Company or any subsidiary, such Participant is offered and accepts a comparable employment position with the successor or purchaser entity (or an affiliate thereof), as applicable.  A Qualifying Termination shall not include a termination due to the Participant’s death or disability.

  1.27“Release” shall have the meaning set forth in Section 4.4 hereof.

  1.28“Severance Benefits” means the severance payments and benefits to which a Participant may become entitled pursuant to Section 4 of the Plan and Exhibit A or Exhibit B, as applicable and each as attached hereto. 

  1.29“Target Incentive Compensation” means the Participant’s target cash performance bonus, if any, for the year in which the Date of Termination occurs. 

  1.30“Total Payments” shall have the meaning set forth in Section 7.1 hereof.

  2.	Effectiveness of the Plan; Notification.  The Plan, as amended and restated, became effective on February 28, 2022. The Administrator shall, pursuant to a written notice to any Employee (a “Participation Notice”), notify each Participant that such Participant has been selected to participate in the Plan.  

   

  3.	Administration.  Subject to Section 13.3 hereof, the Plan shall be interpreted, administered and operated by the Committee (the “Administrator”), which shall have complete authority, subject to the express provisions of the Plan, to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan.  The Administrator may delegate any of its duties hereunder to a subcommittee, or to such person or persons from time to time as it may designate other than to any Participant in the Plan, and the Administrator may delegate (other than to any Participant in the Plan) its duty to provide a Participation Notice to a Participant in the Plan.  All decisions, interpretations and other actions of the Administrator (including with respect to whether a Qualifying Termination has occurred) shall be final, conclusive and binding on all parties who have an interest in the Plan.

   

  4.	Severance Benefits. 

   

  4.1Eligibility.  Each Employee who qualifies as a Participant and who experiences a Qualifying Termination is eligible to receive Severance Benefits under the Plan.

   

  4.2Qualifying Termination Payment.  In the event that a Participant experiences a Qualifying Termination (other than a CIC Termination), then, subject to the Participant’s execution and, to the extent applicable, non-revocation of a Release in accordance with Section 4.4 hereof, and subject to any additional requirements specified in the Plan, the Company shall pay or provide to the Participant the following Severance Benefits:

   

  4

   

   

   

   

   

   

   

  |

  

   

  (a)Cash Salary Severance Payment.  The Company shall pay to the Participant an amount equal to the Cash Salary Severance determined in accordance with Exhibit A attached hereto.  Subject to Section 6.2 hereof, the Cash Salary Severance (as set forth on Exhibit A) shall be paid in substantially equal installments in accordance with the Company’s normal payroll practice over the Cash Salary Severance Period, but commencing on the first payroll date following the 60th day following the Date of Termination (and amounts otherwise payable prior to such first payroll date shall be paid on such date without interest thereon). 

    

  (b)COBRA.  Subject to the requirements of the Code, if the Participant properly elects healthcare continuation coverage under the Company’s group health plans pursuant to COBRA, to the extent that the Participant is eligible to do so, then the Company shall subsidize the COBRA premiums for the Participant and the Participant’s covered dependents until the earlier of the end of the month during which the Participant’s COBRA Period, determined in accordance with Exhibit A attached hereto, ends or the date the Participant becomes eligible for healthcare coverage under a subsequent employer’s health plan (the “COBRA Premium Payment”). Such subsidy shall be made by direct payment or, at the Company’s election, by reimbursement to the Participant, and shall equal an amount determined based on the same benefit levels and cost to the Participant as would have applied based on the Participant’s elections in effect on the Date of Termination if the Participant’s employment had not been terminated.  Notwithstanding the foregoing, (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Code Section 409A under Treasury Regulation Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover the Participant under its group health plans without penalty under applicable law (including without limitation, Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company reimbursement shall thereafter be paid to the Participant in substantially equal monthly installments over the COBRA Period (or the remaining portion thereof).
 

  4.3CIC Termination Payment.  In the event that a Participant experiences a CIC Termination, then, subject to the Participant’s execution and, to the extent applicable, non-revocation of a Release in accordance with Section 4.4 hereof, and subject to any additional requirements specified in the Plan:

   

  (a)Cash Severance Payment.  The Company shall pay or provide to the Participant, as applicable, an amount equal to the Cash Severance determined in accordance with Exhibit B attached hereto and paid in accordance with following provisions:

     

  (i)Cash Salary Severance Payment.  Subject to Section 6.2 hereof, the Cash Salary Severance (as set forth on Exhibit B) shall be paid in substantially equal installments in accordance with the Company’s normal payroll practice over the Cash Salary Severance Period, but commencing on the first payroll date following the 60th day following the Date of Termination (and amounts otherwise payable prior to such first payroll date shall be paid on such date without interest thereon); provided, that in the event the CIC Termination occurs prior to a Change in Control, then any incremental Cash Salary Severance that would have been payable between the Date of Termination and the Change in Control date (i.e., incremental Cash Salary Severance above the Cash Salary Severance payable upon a Qualifying Termination that is not a CIC Termination) instead shall be paid in a single lump sum on the date of the Change in Control. 

   

  5

   

   

   

   

   

   

   

  |

  

   

  (ii)Incentive Compensation Severance Payment.  The Incentive Compensation Severance (as set forth on Exhibit B) shall be paid in a single lump sum on the first payroll date following the 60th day following the Date of Termination; provided that in the event the CIC Termination occurs prior to a Change in Control, then the Incentive Compensation Severance shall be paid in a single lump sum on the date of the Change in Control.

   

  (b)COBRA.  The Company shall provide to the Participant the COBRA Premium Payment set forth in Section 4.2(b) hereof; provided, however, that the COBRA Period shall be determined in accordance with Exhibit B attached hereto (instead of in accordance with Exhibit A).

   

  (c)Equity Acceleration.  Each outstanding Equity Award held by the Participant as of his or her Date of Termination shall vest and, as applicable, become exercisable as specified in Exhibit B, upon the later of the effectiveness of the Release and as of immediately prior to the consummation of a Change in Control.

   

  4.4Release.  Notwithstanding anything herein to the contrary, no Participant shall be eligible or entitled to receive or retain any Severance Benefits under the Plan unless he or she executes a general release of claims substantially in the form attached hereto as Exhibit C (the “Release”) within 21 days (or 45 days if necessary to comply with applicable law) after the Date of Termination and, if he or she is entitled to a seven day post-signing revocation period under applicable law, does not revoke such Release during such seven day period.

   

  5.	Limitations.  Notwithstanding any provision of the Plan to the contrary, if a Participant’s status as an Employee is terminated for any reason other than due to a Qualifying Termination, the Participant shall not be entitled to receive any Severance Benefits under the Plan, and the Company shall not have any obligation to such Participant under the Plan.

   

  6.	Section 409A.

   

  6.1General.  To the extent applicable, the Plan shall be interpreted and applied consistent and in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder.  Notwithstanding any provision of the Plan to the contrary, to the extent that the Administrator determines that any payments or benefits under the Plan may not be either compliant with or exempt from Code Section 409A and related Department of Treasury guidance, the Administrator may in its sole discretion adopt such amendments to the Plan or take such other actions that the Administrator determines are necessary or appropriate to (a) exempt the compensation and benefits payable under the Plan from Code Section 409A and/or preserve the intended tax treatment of such compensation and benefits, or (b) comply with the requirements of Code Section 409A and related Department of Treasury guidance; provided, however, that this Section 6.1 shall not create any obligation on the part of the Administrator to adopt any such amendment or take any other action, nor shall the Company have any liability for failing to do so.

   

  6.2Potential Six-Month Delay.  Notwithstanding anything to the contrary in the Plan, no amounts shall be paid to any Participant under the Plan during the six-month period following such Participant’s “separation from service” (within the meaning of Code Section 409A(a)(2)(A)(i) and Treasury Regulation Section 1.409A-1(h)) to the extent that the Administrator determines that paying such amounts at the time or times indicated in the Plan would result in a prohibited distribution under Code Section 

  6

   

   

   

   

   

   

   

  |

  

   

  409A(a)(2)(B)(i).  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six-month period (or such earlier date upon which such amount can be paid under Code Section 409A without resulting in a prohibited distribution, including as a result of the Participant’s death), the Participant shall receive payment of a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Participant during such six-month period without interest thereon.

   

  6.3Separation from Service.  A termination of employment shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payment of any amounts or benefits that constitute “nonqualified deferred compensation” under Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of the Plan, references to a “termination,” “termination of employment” or like terms shall mean “separation from service”.

   

  6.4Reimbursements.  To the extent that any payments or reimbursements provided to a Participant under the Plan are deemed to constitute compensation to the Participant to which Treasury Regulation Section 1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed reasonably promptly, but not later than December 31st of the year following the year in which the expense was incurred.  The amount of any such payments eligible for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement in any other taxable year, and the Participant’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.

   

  6.5Installments.  For purposes of applying the provisions of Code Section 409A to the Plan, each separately identified amount to which a Participant is entitled under the Plan shall be treated as a separate payment.  In addition, to the extent permissible under Code Section 409A, the right to receive any installment payments under the Plan shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment as permitted under Treasury Regulation Section 1.409A-2(b)(2)(iii).  Whenever a payment under the Plan specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

   

  7.	Limitation on Payments. 

   

  7.1Best Pay Cap.  Notwithstanding any other provision of the Plan, in the event that any payment or benefit received or to be received by a Participant (including any payment or benefit received in connection with a termination of the Participant’s employment, whether pursuant to the terms of the Plan or any other plan, arrangement or agreement) (all such payments and benefits, including the Severance Benefits, being hereinafter referred to as the “Total Payments”) would be subject (in whole or part), to the excise tax imposed under Code Section 4999 (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Code Section 280G in such other plan, arrangement or agreement, the Cash Severance benefits under the Plan shall first be reduced, and any noncash severance payments shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (a) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or equal to (b) the net amount of such Total Payments without such 

  7

   

   

   

   

   

   

   

  |

  

   

  reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Participant would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

   

  7.2Certain Exclusions.  For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (a) no portion of the Total Payments, the receipt or retention of which the Participant has waived at such time and in such manner so as not to constitute a “payment” within the meaning of Code Section 280G(b), will be taken into account; (b) no portion of the Total Payments will be taken into account which, in the written opinion of an independent, nationally recognized accounting firm (the “Independent Advisors”) selected by the Company, does not constitute a “parachute payment” within the meaning of Code Section 280G(b)(2) (including by reason of Code Section 280G(b)(4)(A)) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Code Section 280G(b)(4)(B), in excess of the “base amount” (as defined in Code Section 280G(b)(3)) allocable to such reasonable compensation; and (c) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Code Sections 280G(d)(3) and (4).

   

  8.	No Mitigation.  No Participant shall be required to seek other employment or attempt in any way to reduce or mitigate any Severance Benefits payable under the Plan and the amount of any such Severance Benefits shall not be reduced by any other compensation paid or provided to any Participant following such Participant’s termination of employment.

   

  9.	Successors.	

   

  9.1Company Successors.  The Plan shall inure to the benefit of and shall be binding upon the Company and its successors and assigns.  Any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume and agree to perform the obligations of the Company under the Plan.

   

  9.2Participant Successors.  The Plan shall inure to the benefit of and be enforceable by each Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, legatees or other beneficiaries.  If a Participant dies while any amount remains payable to such Participant hereunder, all such amounts shall be paid in accordance with the terms of the Plan to the executors, personal representatives or administrators of such Participant’s estate.

   

  10.Notices.  All communications relating to matters arising under the Plan shall be in writing and shall be deemed to have been duly given when hand delivered, faxed, emailed or mailed by reputable overnight carrier or United States certified mail, return receipt requested, addressed, if to a Participant, to the address or email address on file with the Company or to such other address or email address as the Participant may have furnished to the other in writing in accordance herewith and, if to the Company, to such address or email address as may be specified from time to time by the Administrator, except that notice of change of address shall be effective only upon actual receipt.

   

  8

   

   

   

   

   

   

   

  |

  

   

  11.Claims Procedure; Arbitration.

   

  11.1Claims.  Generally, Participants are not required to present a formal claim in order to receive benefits under the Plan.  If, however, any person (the “Claimant”) believes that benefits are being denied improperly, that the Plan is not being operated properly, that fiduciaries of the Plan have breached their duties, or that the Claimant’s legal rights are being violated with respect to the Plan, the Claimant must file a formal claim, in writing, with the Administrator.  This requirement applies to all claims that any Claimant has with respect to the Plan, including claims against fiduciaries and former fiduciaries, except to the extent the Administrator determines, in its sole discretion that it does not have the power to grant all relief reasonably being sought by the Claimant.  A formal claim must be filed within 90 days after the date the Claimant first knew or should have known of the facts on which the claim is based, unless the Administrator consents otherwise in writing.  The Administrator shall provide a Claimant, on request, with a copy of the claims procedures established under Section 11.2 hereof. 

   

  11.2Claims Procedure.  The Administrator has adopted procedures for considering claims (which are set forth in Exhibit D attached hereto), which it may amend or modify from time to time, as it sees fit.  These procedures shall comply with all applicable legal requirements.  These procedures may provide that final and binding arbitration shall be the ultimate means of contesting a denied claim (even if the Administrator or its delegates have failed to follow the prescribed procedures with respect to the claim).  The right to receive benefits under the Plan is contingent on a Claimant using the prescribed claims and arbitration procedures to resolve any claim. 

   

  12.Covenants.

   

  12.1Restrictive Covenants. A Participant’s right to receive and/or retain the Severance Benefits payable under this Plan is conditioned upon and subject to the Participant’s continued compliance with any restrictive covenants (e.g., confidentiality, invention assignment, non-solicitation, non-disparagement) contained in any other written agreement between the Participant and the Company, as in effect on the date of the Participant’s Qualifying Termination.

   

  12.2Return of Property.  A Participant’s right to receive and/or retain the Severance Benefits payable under the Plan is conditioned upon the Participant’s return to the Company of all Company documents (and all copies thereof) and other Company property (in each case, whether physical, electronic or otherwise) in the Participant’s possession or control.

   

  13.Miscellaneous.

   

  13.1Entire Plan; Relation to Other Agreements.  The Plan, together with any Participation Notice issued in connection with the Plan, contains the entire understanding of the parties relating to the subject matter hereof and supersedes any prior agreement, arrangement and understanding between any Participant, on the one hand, and the Company and/or any subsidiary, on the other hand, with respect to the subject matter hereof. Severance payable under the Plan is not intended to duplicate any other severance benefits payable to a Participant by the Company. By participating in the Plan and accepting the Severance Benefits hereunder, the Participant acknowledges and agrees that any prior agreement, arrangement and understanding between any Participant, on the one hand, and the Company and/or any subsidiary, on the other hand, with respect to the subject matter hereof is hereby revoked and ineffective with respect to the Participant (including with respect to any severance arrangement contained in an effective employment 

  9

   

   

   

   

   

   

   

  |

  

   

  agreement, employment letter agreement by and between the Participant and the Company (and/or any subsidiary)).

   

  13.2No Right to Continued Service.  Nothing contained in the Plan shall (a) confer upon any Participant any right to continue as an employee of the Company or any subsidiary, (b) constitute any contract of employment or agreement to continue employment for any particular period, or (c) interfere in any way with the right of the Company to terminate a service relationship with any Participant, with or without Cause.

   

  13.3Termination and Amendment of Plan.  The Plan may not be amended, modified, suspended or terminated except with the express written consent of each Participant who would be adversely affected by any such amendment, modification, suspension or termination.

   

  13.4Survival.  Section 7 (Limitation on Payments), Section 11 (Claims Procedure; Arbitration) and Section 12 (Covenants) hereof shall survive the termination or expiration of the Plan and shall continue in effect.

   

  13.5Severance Benefit Obligations.  Notwithstanding anything contained herein, Severance Benefits paid or provided under the Plan may be paid or provided by the Company or any subsidiary employer, as applicable.

   

  13.6Withholding.  The Company shall have the authority and the right to deduct and withhold an amount sufficient to satisfy federal, state, local and foreign taxes required by law to be withheld with respect to any Severance Benefits payable under the Plan. 

   

  13.7Benefits Not Assignable.  Except as otherwise provided herein or by law, no right or interest of any Participant under the Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective; and no right or interest of any Participant under the Plan shall be liable for, or subject to, any obligation or liability of such Participant.  When a payment is due under the Plan to a Participant who is unable to care for his or her affairs, payment may be made directly to his or her legal guardian or personal representative.

   

  13.8Applicable Law.  The Plan is intended to be an unfunded “top hat” pension plan within the meaning of U.S. Department of Labor Regulation Section 2520.104-23 and shall be interpreted, administered, and enforced as such in accordance with ERISA.  To the extent that state law is applicable, the statutes and common law of the State of Delaware, excluding any that mandate the use of another jurisdiction’s laws, will apply. 

   

  13.9Validity.  The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect. 

   

  13.10Captions.  The captions contained in the Plan are for convenience only and shall have no bearing on the meaning, construction or interpretation of the Plan’s provisions.

   

  13.11Expenses.  The expenses of administering the Plan shall be borne by the Company or its successor, as applicable.

  10

   

   

   

   

   

   

   

  |

  

   

   

  13.12Unfunded Plan.  The Plan shall be maintained in a manner to be considered “unfunded” for purposes of ERISA.  The Company shall be required to make payments only as benefits become due and payable.  No person shall have any right, other than the right of an unsecured general creditor against the Company, with respect to the benefits payable hereunder, or which may be payable hereunder, to any Participant, surviving spouse or beneficiary hereunder.  If the Company, acting in its sole discretion, establishes a reserve or other fund associated with the Plan, no person shall have any right to or interest in any specific amount or asset of such reserve or fund by reason of amounts which may be payable to such person under the Plan, nor shall such person have any right to receive any payment under the Plan except as and to the extent expressly provided in the Plan.  The assets in any such reserve or fund shall be part of the general assets of the Company, subject to the control of the Company.

   

  * * * * *

   

  11

   

   

   

   

   

   

   

  |

  

   

   

   

  S-1

   

   

   

   

   

   

   

  |

  

   

  	I hereby certify that the foregoing Plan was duly adopted by the Board of Directors of Winc, Inc. on February 28, 2022.

   

   

  Signature: /s/ Matthew Thelen__________________

   

  Name: Matthew Thelen

   

  Title:   General Counsel

   

   

  S-1

   

   

   

   

   

   

   

  |

  

   

  Exhibit A

  Calculation of QUALIFYING TERMINATION Severance Amounts

  				
	Tier
	Cash Salary Severance
	Cash Salary Severance Period
	COBRA Period (1)

	1
	50% Base Compensation
	6 months
	6 months

   

  (1)   COBRA Period begins on the first day of the calendar month following the calendar month in which the Date of Termination occurs.

  Exh. B-1

   

  |US-DOCS\125010999.8||

  

   

  Exhibit B

  Calculation of CIC TERMINATION Severance Amounts

  						
	Tier
	Cash Severance
	Cash Salary Severance Period
	Equity Acceleration
	COBRA Period (1)

	Cash Salary Severance
	Incentive Compensation Severance

	1
	100% Base Compensation 
	100% Target Incentive Compensation
	12 Months
	Full vesting acceleration (and, as applicable, exercisability) of Equity Awards
	12 months 

   

   

  (1)   COBRA Period begins on the first day of the calendar month following the calendar month in which the Date of Termination occurs.

  Exh. B-1

   

  |US-DOCS\125010999.8||

  

   

   

  EXHIBIT C

   

  FORM OF GENERAL RELEASE

   

  1.	Release For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of Winc, Inc. a Delaware corporation (the “Company”), and the Company’s partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof.  The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasees’ right to terminate the employment of the undersigned; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act.  

  2.	Claims Not Released.  Notwithstanding the foregoing, this general release (the “Release”) shall not operate to release any rights or claims of the undersigned (i) to the payments or benefits provided under the Winc, Inc. Executive Severance Plan that are conditioned on the undersigned’s execution of this Release, (ii) to accrued or vested benefits the undersigned may have, if any, as of the date hereof under any applicable plan, policy, practice, program, contract or agreement with the Company, (iii) to any Claims, including claims for indemnification and/or advancement of expenses arising under any indemnification agreement between the undersigned and the Company or under the bylaws, certificate of incorporation or other similar governing document of the Company, (iv) to any Claims which cannot be waived by an employee under applicable law, or (v) with respect to the undersigned’s right to communicate directly with, cooperate with, or provide information to, any federal, state or local government regulator.

  3.	Unknown Claims.

  THE UNDERSIGNED ACKNOWLEDGES THAT THE UNDERSIGNED HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

  “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”

  THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS THE UNDERSIGNED MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

  Exh. C-1

   

  |

  

   

  4.	Exceptions.  Notwithstanding anything in this Release to the contrary, nothing contained in this Release shall prohibit the undersigned from (i) filing a charge with, reporting possible violations of federal law or regulation to, participating in any investigation by, or cooperating with any governmental agency or entity or making other disclosures that are protected under the whistleblower provisions of applicable law or regulation and/or (ii) communicating directly with, cooperating with, or providing information (including trade secrets) in confidence to, any federal, state or local government regulator (including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice) for the purpose of reporting or investigating a suspected violation of law, or from providing such information to the undersigned’s attorney or in a sealed complaint or other document filed in a lawsuit or other governmental proceeding.  Pursuant to 18 USC Section 1833(b), the undersigned will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (x) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (y) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

  5.	Representations.  The undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which the undersigned may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer.  It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity.

  6.	No Action.  The undersigned agrees that if the undersigned hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorneys’ fees incurred by Releasees in defending or otherwise responding to said suit or Claim.

  7.	No Admission.  The undersigned further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned.

  8.	[OWBPA.  The undersigned agrees and acknowledges that this Release constitutes a knowing and voluntary waiver and release of all Claims the undersigned has or may have against the Company and/or any of the Releasees as set forth herein, including, but not limited to, all Claims arising under the Older Worker’s Benefit Protection Act and the Age Discrimination in Employment Act. In accordance with the Older Worker’s Benefit Protection Act, the undersigned is hereby advised as follows:

  (i)the undersigned has read the terms of this Release, and understands its terms and effects, including the fact that the undersigned agreed to release and forever discharge the Company and each of the Releasees, from any Claims released in this Release;

   

  (ii)the undersigned understands that, by entering into this Release, the undersigned does not waive any Claims that may arise after the date of the undersigned’s execution of this Release, including without limitation any rights or claims that the undersigned may have to secure enforcement of the terms and conditions of this Release;

   

  Exh. C-2

   

  |

  

   

  (iii)the undersigned has signed this Release voluntarily and knowingly in exchange for the consideration described in this Release, which the undersigned acknowledges is adequate and satisfactory to the undersigned and which the undersigned acknowledges is in addition to any other benefits to which the undersigned is otherwise entitled;

   

  (iv)the Company advises the undersigned to consult with an attorney prior to executing this Release; 

   

  (v)the undersigned has been given at least [21] days in which to review and consider this Release.  To the extent that the undersigned chooses to sign this Release prior to the expiration of such period, the undersigned acknowledges that the undersigned has done so voluntarily, had sufficient time to consider the Release, to consult with counsel and that the undersigned does not desire additional time and hereby waives the remainder of the [21]-day period; and

   

  (vi)the undersigned may revoke this Release within seven days from the date the undersigned signs this Release and this Release will become effective upon the expiration of that revocation period.  If the undersigned revokes this Release during such seven-day period, this Release will be null and void and of no force or effect on either the Company or the undersigned and the undersigned will not be entitled to any of the payments or benefits which are expressly conditioned upon the execution and non-revocation of this Release.  Any revocation must be in writing and sent to [name], via electronic mail at [email address], on or before [11:59 p.m. Pacific time] on the seventh day after this Release is executed by the undersigned.]1

   

  9.	Governing Law. This Release is deemed made and entered into in the State of California, and in all respects shall be interpreted, enforced and governed under the internal laws of the State of California, to the extent not preempted by federal law.

  IN WITNESS WHEREOF, the undersigned has executed this Release this ____ day of ___________, ____.

   

  _________________________

  1 Note to Draft: Applicable to employees 40 years of age or older.  In addition, for group terminations, the consideration should be 45 (and not 21) days.

  Exh. C-3

   

  |

  

   

   

  EXHIBIT D

  Detailed Claims Procedures

   

  Section 1.1.	Claim Procedure.  Claims for benefits under the Plan shall be administered in accordance with Section 503 of ERISA and the Department of Labor Regulations thereunder.  The Administrator shall have the right to delegate its duties under this Exhibit and all references to the Administrator shall be a reference to any such delegate, as well.  The Administrator shall make all determinations as to the rights of any Participant, beneficiary, alternate payee or other person who makes a claim for benefits under the Plan (each, a “Claimant”).  A Claimant may authorize a representative to act on his or her behalf with respect to any claim under the Plan.  A Claimant who asserts a right to any benefit under the Plan he has not received, in whole or in part, must file a written claim with the Administrator.  All written claims shall be submitted to the head of Human Resources of Winc, Inc.

   

  (a)   Regular Claims Procedure.	The claims procedure in this subsection (a) shall apply to all claims for Plan benefits.

   

  (1)Timing of Denial.  If the Administrator denies a claim in whole or in part (an “adverse benefit determination”), then the Administrator will provide notice of the decision to the Claimant within a reasonable period of time, not to exceed 90 days after the Administrator receives the claim, unless the Administrator determines that an extension of time for processing is required.  In the event that the Administrator determines that such an extension is required, written notice of the extension will be furnished to the Claimant before the end of the initial 90 day review period.  The extension will not exceed a period of 90 days from the end of the initial 90 day period, and the extension notice will indicate the special circumstances requiring such extension of time and the date by which the Administrator expects to render the benefit decision. 

   

  (2)Denial Notice.  The Administrator shall provide every Claimant who is denied a claim for benefits with a written or electronic notice of its decision.  The notice will set forth, in a manner to be understood by the Claimant:

   

  (i)the specific reason or reasons for the adverse benefit determination;

   

  (ii)reference to the specific Plan provisions on which the determination is based;

   

  (iii)a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation as to why such information is necessary; and

   

  (iv)an explanation of the Plan’s appeal procedure and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA after receiving a final adverse benefit determination upon appeal.

   

  (3)Appeal of Denial.  The Claimant may appeal an initial adverse benefit determination by submitting a written appeal to the Administrator within 60 days of receiving notice of the denial of the claim.  The Claimant:

   

  (i)may submit written comments, documents, records and other information relating to the claim for benefits; 

  Exh. D-1

   

  |

  

   

   

   

  (ii)will be provided, upon request and without charge, reasonable access to and copies of all documents, records and other information relevant to the Claimant’s claim for benefits; and

   

  (iii)will receive a review that takes into account all comments, documents, records and other information submitted by the Claimant relating to the appeal, without regard to whether such information was submitted or considered in the initial benefit determination.

   

  (4)Decision on Appeal.  The Administrator will conduct a full and fair review of the claim and the initial adverse benefit determination.  The Administrator holds regularly scheduled meetings at least quarterly.  The Administrator shall make a benefit determination no later than the date of the regularly scheduled meeting that immediately follows the Plan’s receipt of an appeal request, unless the appeal request is filed within 30 days preceding the date of such meeting.  In such case, a benefit determination may be made by no later than the date of the second regularly scheduled meeting following the Plan’s receipt of the appeal request.  If special circumstances require a further extension of time for processing, a benefit determination shall be rendered no later than the third regularly scheduled meeting of the Administrator following the Plan’s receipt of the appeal request.  If such an extension of time for review is required, the Administrator shall provide the Claimant with written notice of the extension, describing the special circumstances and the date as of which the benefit determination will be made, prior to the commencement of the extension.  The Administrator generally cannot extend the review period any further unless the Claimant voluntarily agrees to a longer extension.  The Administrator shall notify the Claimant of the benefit determination as soon as possible but not later than five days after it has been made.

   

  (5)Notice of Determination on Appeal.  The Administrator shall provide the Claimant with written or electronic notification of its benefit determination on review.  In the case of an adverse benefit determination, the notice shall set forth, in a manner intended to be understood by the Claimant:

   

  (i)the specific reason or reasons for the adverse benefit determination;

   

  (ii)reference to the specific Plan provisions on which the adverse benefit determination is based; 

   

  (iii)a statement that the Claimant is entitled to receive, upon request and without charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits;

   

  (iv)a statement describing any voluntary appeal procedures offered by the Plan and the Claimant’s right to obtain the information about such procedures; and

   

  (v)a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA.

   

  (b)   Exhaustion; Judicial Proceedings.  No action at law or in equity shall be brought to recover benefits under the Plan until the claim and appeal rights described in the Plan have been exercised and the Plan benefits requested in such appeal have been denied in whole or in part.  If any judicial proceeding is undertaken to appeal the denial of a claim or bring any other action under ERISA other than a breach of fiduciary claim, the evidence presented may be strictly limited to the evidence timely presented to the Administrator.  Any such judicial proceeding must be filed by the earlier of: (a) one year after the 

  Exh. D-2

   

  |

  

   

   

  Administrator’s final decision regarding the claim appeal or (b) one year after the Participant or other Claimant commenced payment of the Plan benefits at issue in the judicial proceeding.  The jurisdiction and venue for any judicial proceedings arising under or relating to the Plan will be exclusively in the courts in California, including the federal courts located there should federal jurisdiction exist.  This paragraph (c) shall not be construed to prohibit the enforcement of any arbitration agreements.

   

  (c)   Administrator’s Decision is Binding.  Benefits under the Plan shall be paid only if the Administrator decides in its sole discretion that a Claimant is entitled to them.  In determining claims for benefits, the Administrator has the authority to interpret the Plan, to resolve ambiguities, to make factual determinations, and to resolve questions relating to eligibility for and amount of benefits.  Subject to applicable law, any decision made in accordance with the above claims procedures is final and binding on all parties and shall be given the maximum possible deference allowed by law.  A misstatement or other mistake of fact shall be corrected when it becomes known and the Administrator shall make such adjustment on account thereof as it considers equitable and practicable.

   

   

  Exh. D-3

   

  |

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00344-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00344-of-00352.parquet"}]]