Document:

Exhibit 10.3

 

AMERICAS SILVER CORPORATION

 

DEFERRED SHARE UNIT PLAN

 

Effective
July 1, 2015

 

     

     

    

 

Table of Contents

 

	Article 1.	 	PURPOSE	3
	1.1	 	Purpose	3
	1.2	 	Effective Date	3
	Article 2.	 	DEFINITIONS	3
	2.1	 	Definitions	3
	Article 3.	 	ADMINISTRATION	5
	3.1	 	General	5
	3.2	 	Delegation of Administration	6
	3.3	 	Limitation of Liability	6
	Article 4.	 	DEFERRED SHARE UNIT AWARDS	6
	4.1	 	Grants of DSUs	6
	4.2	 	Terms of DSUs	7
	4.3	 	Maximum Number of Common Shares and Limitations	7
	4.4	 	Redemption of DSUs	7
	4.5	 	Blackout Periods	7
	Article 5.	 	PAYMENT OF BENEFITS	8
	5.1	 	Settlement Date	8
	5.2	 	Payment of Benefits	8
	5.3	 	Settlements of DSUs with Common Shares	8
	5.4	 	Death of a Participant	9
	Article 6.	 	PARTICIPANT’S ACCOUNT	9
	6.1	 	Participant Accounts	9
	6.2	 	Annual Notice	9
	Article 7.	 	RIGHTS OF PARTICIPANTS	9
	7.1	 	No Right to Employment or Service	9
	7.2	 	Legal Ownership of Common Shares	9
	7.3	 	Prohibition on Transfer of Rights	9
	Article 8.	 	AMENDMENT, SUSPENSION AND TERMINATION	9
	8.1	 	Amendment of Plan	9
	8.2	 	Amendments without Shareholder Approval	9
	8.3	 	Amendments Requiring Shareholder Approval	10
	Article 9.	 	ADJUSTMENTS, REORGANIZATIONS AND DIVIDENDS	10
	9.1	 	Capital Adjustments	10
	9.2	 	Fluctuation in Common Share Price	11
	Article 10.	 	DESIGNATION OF BENEFICIARIES	11
	10.1	 	Designation of Beneficiaries	11
	Article 11.	 	TAX	11
	11.1	 	Tax Consequences	11
	11.2	 	Withholding Requirements	11
	Article 12.	 	UNSECURED PLAN	12
	12.1	 	Unsecured Plan	12
	Article 13.	 	COMPLIANCE WITH APPLICABLE LAWS	12
	13.1	 	Compliance with Applicable Laws	12
	Article 14.	 	GENERAL	12
	14.1	 	No Representation	12
	14.2	 	Governing Law	12
	14.3	 	Severability	12
	14.4	 	Headings	12
	14.5	 	Successors and Assigns	12

 

     

     

    

 

DEFERRED SHARE UNIT PLAN

 

Article 1.     PURPOSE

 

1.1        Purpose.  The
purpose of the Plan is to advance the interests of the Company and its Affiliates by attracting and retaining highly
competent persons as Directors, Officers and Employees, to allow such persons to participate in the long term success of the
company and to promote a greater alignment of interests between the participants designated under this Plan and the
shareholders of the Company.

 

1.2        Effective Date.  This
Plan shall become effective upon receipt of Board approval and any requisite regulatory approvals, as applicable.

 

Article 2.      DEFINITIONS

 

2.1        Definitions.  In
this Plan, unless the context otherwise requires, the following terms shall have the following meanings:

 

		(a)	“Account” means an account maintained
for each Participant on the books of the Company, which will be credited with DSUs in accordance with the terms of this Plan;

 

		(b)	“Adjustment Factor” means such multiplier as the Board determines appropriate
from time-to-time with respect to calculating the number of DSUs to be granted in lieu of earned amounts that would otherwise be
payable in cash but are to be deferred through the issuance of DSUs as set out from time-to-time by the Board in the applicable
DSU Award Agreement;

 

		(c)	“Administrator” means the Company’s Chief Financial Officer or any other
person or persons appointed from time to time by the Committee to administer this Plan;

 

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

 

		(e)	“Annual Board Retainer” means the annual
retainer paid by the Company to a Director in a fiscal year for service on the Board, together with Board committee fees, attendance
fees and additional fees and retainers to committee chairs;

 

		(f)	“Award” means a grant of DSUs to a Participant in accordance with Article 4 of this Plan;

 

		(g)	“Beneficiaries” means such individuals who, on the date of a Participant’s
death, are a dependent or relation of such Participant and are designated in accordance with this Plan and applicable laws to receive
the value of the DSUs credited to the Participant on the date of death, or where no such individuals have been validly designated
by the Participant, or where the individuals so designated do not survive the Participant, the Participant’s legal representative;

 

		(h)	“Board” means the board of directors of the Company, as constituted from time
to time;

 

		(i)	“business day” means a day, other than Saturday, Sunday or a day on which the
principal commercial banking institutions in Toronto, Ontario are, or the Exchange is, closed;

 

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		(j)	“Committee” means the Compensation and Corporate Governance Committee of the
Board or such other committee of the Board comprised of members of the Board as the Board shall from time to time appoint to administer
the Plan;

 

		(k)	“Common Shares” means the common shares of the Company as currently constituted
or, in the event of an adjustment as contemplated by Article 9, such other shares or securities to which a Participant may be entitled
or on which the value of an Award may be based, as a result of such adjustment;

 

		(l)	“Company” means Americas Silver Corporation and includes any successor thereof;

 

		(m)	“Deferred Share Units” or “DSUs” means a unit credited by
means of a bookkeeping entry to the account of an Eligible Participant in accordance with the provisions hereof, the value of which,
on a particular date, shall be equal to the Market Price of one Common Share;

 

		(n)	“Director” means a member of the board of directors of the Company or any of
its Related Entities;

 

		(o)	“DSU Award Agreement” means the agreement in writing evidencing the terms and conditions under which an
Award has been granted under this Plan, substantially in the form attached hereto as Schedule A;

 

		(p)	“Eligible Participant” means any Director, Officer or Employee of the Company
or any Affiliate determined by the Committee as eligible for participation in this Plan;

 

		(q)	“Employee” means an individual (other than a director or Officer) who:

 

		(i)	works for the Company or an Affiliate on a continuing and regular basis for a minimum amount of
time per week providing services specified by the Company or the Affiliate and is subject to the control and direction of the Company
or the Affiliate regarding both the method of performing or executing the services and the result to be effected,

 

		(ii)	works full-time for the Company or an Affiliate providing services normally provided by an employee
and who is subject to the same control and direction by the Company or the Affiliate over the details and method of work as an
employee of the Company or the Affiliate, and for whom income tax deductions are made at source, or

 

		(iii)	works for the Company or an Affiliate on a continuing and regular basis for a minimum amount of
time per week providing services normally provided by an employee and who is subject to the same control and direction by the Company
or the Affiliate over the details and method of work as an employee of the Company or the Affiliate, but for whom income tax deductions
are not made at source;

 

		(r)	“Exchange” means the TSX or, if the Common Shares are not then listed and posted
for trading on the TSX, such stock exchange in Canada on which such Common Shares are listed and posted for trading as may be selected
for such purpose by the Board;

 

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		(s)	“Market Price” as at any date in respect of the Common Shares means the volume-weighted
average price of the Common Shares on the Exchange for the five trading days immediately preceding such date, but if such Common
Shares did not trade on such trading days, the Market Price shall be average of the bid and ask prices in respect of such Common
Shares at the close of trading on such trading day;

 

		(t)	“Officer” means a senior officer of the Company or an Affiliate;

 

		(u)	“Participant” means an Eligible Participant who holds an Award under the terms
of this Plan;

 

		(v)	“Plan” means this Deferred Share Unit
Plan, as the same may be amended from time to time;

 

		(w)	“Quarterly Conversion Date” means with respect to any fiscal quarter, the date used to determine the Market
Price of a Common Share for the purposes of determining the number of Deferred Share Units to be credited with respect of that
fiscal quarter to a Director’s account; which shall be, unless otherwise determined by the Committee, the last business day
of the fiscal quarter in respect of which the Deferred Share Units are credited;

 

		(x)	“Regulations” means the Income Tax Regulations as amended from time to
time;

 

		(y)	“Securities Act” means the Securities Act (Ontario) as amended from time
to time;

 

		(z)	“Settlement Date” has the meaning ascribed to it in Section 5.1 hereto;

 

		(aa)	“Tax Act” means the Income Tax Act (Canada) as amended from time to time;

 

		(bb)	“Termination Date” means the date on which for any reason a Participant ceases
to be a Director (and is not otherwise an Employee of the Company), Officer or Employee of the Company, excluding any notice period
awarded by the Company, or required by employment law or by court judgments and includes termination from the Board, termination
of employment, voluntary resignation, retirement from the workforce, permanent disability or death of a Participant; and

 

		(cc)	“TSX” means the Toronto Stock Exchange.

 

		(dd)	“U.S. Addendum” has the meaning ascribed thereto in Section 4.1;

 

		(ee)	“U.S. Grantee” has the meaning ascribed thereto in Section 4.1;

 

Article 3.      ADMINISTRATION

 

 3.1        General.

 

		(a)	The Plan shall be administered as required by the Committee,
under the supervision of the Board. The Committee has full and complete authority to interpret, construe and administer the Plan,
to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations and perform
all other acts that it deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or
supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or
desirable. Any decision of the Committee in the interpretation, construction and administration of the Plan, or any action, all
as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties
concerned for all purposes.

 

    	 	- 5 -	 

     

    

 

		(b)	Notwithstanding the foregoing, all actions of the Committee shall be such that the Plan continuously
meets the requirements of any applicable tax laws and regulations, and shall be subject to all requisite Exchange, regulatory and/or
shareholder approvals, as required from time to time.

 

3.2        Delegation
of Administration.  The Committee may delegate to one or more of its members or an Administrator such administrative duties
as it may deem advisable, including without limitation delegation to an Administrator of the authority to acquire Common Shares
through the facilities of the Exchange for delivery to Participants in settlement of DSUs in accordance with the Plan. Any Committee
or Administrator to whom duties have been delegated as aforesaid may employ one or more persons to render advice with respect to
any responsibility the Committee or any Administrator may have under the Plan.

 

3.3        Limitation
of Liability.  No member of the Committee or the Board shall be liable for any action or determination made in good faith
pursuant to the Plan. To the full extent permitted by law, the Company shall indemnify and save harmless each person made, or threatened
to be made, a party to any action or proceeding by reason of the fact that such person is or was a member of the Committee or is
or was a member of the Board and, as such, is or was required or entitled to take action pursuant to the terms of the Plan. The
expenses of administering the Plan shall be borne by the Company.

 

Article 4.      DEFERRED
SHARE UNIT AWARDS

 

4.1        Grants of DSUs.  Subject
to the provisions of this Plan, the Committee may grant DSUs to Eligible Participants. The award of DSUs to an Eligible Participant
who is subject to taxation in the United States on employment or business income (a “U.S. Grantee”) shall be
subject to the terms and conditions set forth in Schedule B (the “U.S. Addendum”). The Plan and the U.S. Addendum
are complementary to each other and shall, with respect to an award of DSUs to a U.S. Grantee, be read and deemed as one. In the
event of any contradiction, whether explicit or implied, between the provisions of the U.S. Addendum and the Plan, the provisions
of the U.S. Addendum shall prevail with respect to an award of DSUs to a U.S. Grantee.

 

The provisions specified in the U.S. Addendum
shall apply solely to DSUs granted or credited to U.S. Grantees and shall form an integral part of the Plan with respect to such
DSUs, subject to any applicable restrictions or limitations as provided in applicable law.

 

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4.2        Terms
of DSUs.

 

		(a)	Deferred Share Units granted pursuant to the Plan shall be credited to an account maintained for
the Participant by the Company. In the case of DSUs granted in lieu of a Director’s Annual Board Retainer, the number of
DSUs granted shall be determined on a quarterly basis by the Company’s CFO and equal to, the product of the Annual Board
Retainer to be deferred multiplied by the applicable Adjustment Factor, divided by the Market Price per Common Share on the Quarterly
Conversion Date with the resulting number of DSUs to be credited effective the first business day following the last day of each
fiscal quarter for which the Annual Board Retainer is payable.

 

		(b)	DSUs may also be granted on such terms as shall be determined by the Board and set out in a DSU
Award Agreement, a form of which is attached hereto as Schedule A. Without limiting the generality of the foregoing, subject
to the provisions of this Plan, the Committee shall, in its sole discretion and from time to time, determine the Eligible Participants
to whom Awards will be made based on its assessment, for each Participant, of the anticipated contribution of such Eligible Participant
to the success of the Company. At such time, the Committee shall also determine, in connection with each Award, the effective date
thereof, the number of DSUs to be allocated, the terms and conditions of vesting, if any, and such other terms and conditions which
the Committee considers appropriate to the Award in question, and which terms and conditions need not be identical as between any
two Awards, whether or not contemporaneous.

 

4.3        Maximum Number of Common Shares and Limitations.The
number of Common Shares issuable under the Plan combined with the number of Common Shares issuable under all security- based compensation
arrangements of the Company shall not exceed 10% of the issued and outstanding Common Shares as at the date of such Award.

 

The maximum aggregate value of Awards granted
under the Plan to any non-employee Director in a one-year period combined with the value of all grants under other security-based
compensation arrangements of the Company in such one-year period shall not exceed $150,000. The foregoing limitations do not apply
to grants made in lieu of directors’ fees payable in cash.

 

Notwithstanding anything else contained
herein, the number of Common Shares of the Company which are (i) issuable at any time, and (ii) issued within any one year period,
to insiders (as such term is defined in Part 1 of the TSX Company Manual) of the Company pursuant to the terms of the Plan and
under any other security-based compensation arrangement, shall not exceed 10% of the Company’s total issued and outstanding
Common Shares (the “Insider Participation Limit”).

 

4.4        Redemption
of DSUs.  Subject to the provisions of this Plan and any DSU Award Agreement, a DSU held by a Participant shall be redeemed
by the Company with settlement to occur on the Settlement Date, as described in Section 5.1 hereof, unless otherwise determined
by the Committee or agreed to between the Company and the Participant, but subject to Section 3.1 hereof.

 

4.5       Blackout Periods.  The
Company may from time to time impose trading blackouts during which some or all Directors, Officers and Employees may not trade
in the securities of the Company. In the event that a trading blackout is imposed by management or the Board in accordance with
any insider trading policy that the Company may adopt from time to time, Participants subject to the blackout are prohibited from
buying, selling or otherwise trading in securities of the Company until such time as notice is formally given by the Company that
trading may resume. For the avoidance of doubt, such blackout periods are not intended to restrict the ordinary course issuance
DSUs as contemplated by Section 4.2(a).

 

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Notwithstanding this Section 4.5 hereof,
if the Settlement Date of any Award of DSUs falls within such a blackout period, it shall be automatically extended to the date
which is ten (10) Business Days following the end of such blackout period.

 

Article 5.      PAYMENT
OF BENEFITS

 

5.1       Settlement
Date.  All of the DSUs credited to the Participant’s Account, as may be adjusted pursuant to Section 9.1 hereof, shall
be redeemed by the Company, in the form and manner specified by the Committee, following such Participant’s Termination Date,
but in no event later than December 15 the calendar year following the calendar year which includes the Termination Date (the “Settlement
Date”).

 

5.2       Payment of
Benefits.  Subject to the provisions of this ARTICLE 5, after the Termination Date with respect to a Participant, the Company
shall, in satisfaction of its obligations hereunder and in its sole discretion, either:

 

		(a)	pay to the Participant, or Participant’s Beneficiaries,
on the Settlement Date a lump sum cash payment, net of any applicable withholdings, equal to the number of DSUs credited to his
or her Participant Account as of the Settlement Date multiplied by the Market Price of one Common Share on the Settlement Date;
or

 

		(b)	subject to Section 5.3 herein, deliver to the Participant,
or to the Participant’s Beneficiaries, on the Settlement Date that number of Common Shares equal to the whole number of
DSUs credited to his or her Participant Account as of the Settlement Date, plus a cash settlement of any fraction of a DSU, provided
that the Company shall be entitled to sell a portion of the Common Shares to fund payment of applicable taxes and any associated
costs as contemplated in Section 11.2 herein.

 

The Participant shall have no further
entitlement under the Plan upon receipt of the lump sum cash payment referred to in Section 5.2(a) or Common Shares (and where
applicable, cash in lieu of fractional Common Shares) under Section 5.2(b).

 

5.3       Settlements
of DSUs with Common Shares.

 

		(a)	In order to satisfy its settlement obligation where the
Company has, subject to Exchange approval, elected to deliver Common Shares on a Settlement Date, the Company, at the discretion
of the Board may elect to obtain Common Shares in respect of a Participant's entitlement through the facilities of the Exchange
in accordance with the by-laws, regulations and policies of the Exchange or issue such Common Shares from treasury.

 

		(b)	Any entitlement to fractional Common Shares shall be paid in cash based on the Market Price of
one Common Share on the Settlement Date, less any applicable withholdings.

 

		(c)	If the Company elects to deliver Common Shares on a Settlement Date, the Company shall pay all
brokerage fees and commissions arising in connection with the purchase of such Common Shares by the Company.

 

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5.4       Death of a
Participant.  In the event of the death of a Participant prior to the settlement of the DSUs credited to his or her Account,
the Board shall, on the Settlement Date, cause to be delivered to the estate of the Participant or such Participant’s Beneficiary,
the cash payment or number of Common Shares such Participant would have been entitled to.

 

Article 6.      PARTICIPANT’S
ACCOUNT

 

6.1       Participant
Accounts.  The Company shall maintain or cause to be maintained in its records an Account for each Participant recording
at all times the number of DSUs credited to the Participant’s Account. Upon payment in satisfaction of DSUs in accordance
with Article 5 above, the Participant’s entitlement to receive any and all amounts in respect of DSUs so paid shall be fully
discharged and satisfied and such DSUs shall be cancelled and thereupon deleted from the Account of such Participant.

 

6.2       Quarterly Notice.  The
Company shall deliver to each Participant a quarterly written notification of the balance of DSUs in the Participant’s Account.

 

Article 7.      RIGHTS
OF PARTICIPANTS

 

7.1       No Right to
Employment or Service.  Nothing in this Plan nor any action taken hereunder shall be construed as giving a Participant the
right to be retained as a Director, Officer or Employee of the Company, or giving any Participant or any other person the right
to receive any benefits not expressly provided in this Plan, nor shall it interfere in any way with any other right of the Company
to terminate the employment or service of any Participant at any time.

 

7.2       Legal Ownership
of Common Shares.  Under no circumstances shall DSUs be considered Common Shares nor shall they entitle any Participant to
exercise voting rights or any other rights attaching to the ownership or control of Common Shares, including, without limitation,
rights on liquidation, nor shall any Participant be considered the owner of any Common Shares to be delivered under this Plan until
the date of purchase or issuance of such Common Shares, as determined by the Board, for the Account of such Participant as specifically
provided herein.

 

7.3       Prohibition
on Transfer of Rights.  The rights or interests of a Participant under this Plan, including the DSUs, shall not be assignable
or transferable, otherwise than in case of death as set out in this Plan, and such rights or interests shall not be encumbered
by any means. Any attempt to so assign, transfer or encumber any such amount, whether presently or thereafter payable, shall be
void and of no force or effect.

 

Article 8.      AMENDMENT,
SUSPENSION AND TERMINATION

 

8.1       Amendment of
Plan.  This Plan may be amended at any time by the Board in its sole discretion, subject to applicable regulatory approval,
(including, approval of the TSX), and the terms of this Plan; provided that, no such amendment shall, unless required by law, adversely
affect the rights of any Participant with respect to DSUs to which the Participant is then entitled under this Plan, without the
consent of the Participant, and any amendment shall be such that this Plan continuously meets the conditions and requirements of
paragraph 6801(d) of the Regulations and any applicable provincial tax laws and regulations or any successor provisions thereto.

 

8.2       Amendments
without Shareholder Approval

 

Without limiting the generality
of the foregoing, the Board may make the following amendments to the Plan, without obtaining shareholder approval:

 

		(a)	amendments to the vesting provisions of the Plan and any DSU Award Agreement;

 

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		(b)	amendments to the terms and conditions of the Plan necessary to ensure that the Plan complies with
the applicable laws, regulations, rules, orders of governmental or regulatory authorities or the requirements of the Exchange in
place from time to time;

		(c)	amendments to the provisions of the Plan respecting administration of the Plan;

		(d)	amendments to the provisions of the Plan respecting the terms and conditions on which Awards may be made pursuant to the Plan;

		(e)	amendments to the Plan that are of a "housekeeping" nature; and

		(f)	any other amendments, fundamental or otherwise, not requiring shareholder approval under applicable laws or applicable policies
of the Exchange.

 

8.3        Amendments
Requiring Shareholder Approval

 

Without limiting the generality
of the foregoing, the Board may not, without the approval of the Company’s shareholders, make the following amendments to
the Plan:

 

		(a)	an increase to the Plan maximum or the number of Common Shares issuable under the Plan (including specifically to grants to
non-employee Directors);

		(b)	any amendment to the amendment provisions in Sections 8.2 and 8.3 of the Plan;

		(c)	extension of the termination or expiry of an Award;

		(d)	the removal or increase of Insider Participation Limits;

		(e)	any change that would materially modify the eligibility requirements for participation in this Plan; and

		(f)	any amendment that permits the assignment or transfer of a DSU other than for normal estate planning purposes.

 

8.4       Termination
of Plan.  The Board may, in its sole discretion and without the consent of any Participant, terminate the Plan at any time
by giving written notice thereof to each Participant. Following termination of the Plan, additional DSUs shall not be credited
to the Accounts of Participants except pursuant to ARTICLE 4 hereof. Notwithstanding the termination of the Plan, all amounts distributable
under the Plan shall be paid to the persons entitled thereto on the date on which such distributions would have been made had the
Plan not been terminated.

 

Article 9.      ADJUSTMENTS,
REORGANIZATIONS AND DIVIDENDS

 

9.1        Capital
Adjustments.

 

		(a)	The existence of DSUs shall not affect in any way the right or power of the Company or its shareholders
to make or authorize any stock dividend, stock split, combination or exchange of shares, merger, consolidation, recapitalization,
amalgamation, plan of arrangement, reorganization, spin-off or other distribution of the Company’s assets to shareholders
or any other change affecting the Common Shares. However, such adjustments as are required to reflect such change shall be made
with respect to each Participant’s Account, as the Committee in its discretion may deem appropriate to reflect such change.

 

		(b)	In the event that the Company has paid any dividends on the Common Shares since the credit of a
DSU to a Participant Account (other than a dividend payable in Common Shares), there shall be credited to the Participant Account
that number of additional DSUs equal to: (a) the product of the aggregate number of DSUs credited to the Participant Account prior
to the payment of the dividend multiplied by the per share amount of such dividend (or, in the case of any dividend payable in
property other than cash, the per share value of such dividend, as determined by the Board), divided by (b) the average of the
bid and ask prices in respect of a Common Share on the date the dividend is declared.

 

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		(c)	In the event that the Company has paid any dividends on the Common Shares in additional Common
Shares since the credit of a DSU to a Participant Account (other than a cash dividend payable in Common Shares at the election
of the holder), the number of DSUs credited to the Participant Account shall be increased by a number equal to the product of (a)
the aggregate number of DSUs credited to the Participant Account prior to the payment of the dividend, multiplied by (b) the number
of Common Shares (including any fraction thereof) payable as a dividend on one Common Share.

 

Any additional DSU’s granted pursuant to these Sections
9.1(b) and (c) shall be settled in the same manner as determined in Article 5.

 

9.2        Fluctuation
in Common Share Price. No amount will be paid to, or in respect of, a Participant under this Plan or pursuant to any other
arrangement, and no other DSUs will be granted to such Participants to compensate for a downward fluctuation in the price of a
Common Share, nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose.

 

Article 10.      DESIGNATION
OF BENEFICIARIES

 

10.1      Designation
of Beneficiaries. Subject to applicable law, a Participant may designate in writing one or more persons who are dependents
or relations as Beneficiaries to receive any amount payable under this Plan on the death of such Participant, and may change such
designations from time to time. Such designations shall be in such form and executed and filed in such manner as the Board or the
Administrator may from time to time determine. If no Beneficiaries are designated, the Participant’s legal representative
will receive any amount payable under this Plan.

 

Article 11.      TAX

 

11.1      Tax
Consequences. It is the responsibility of the Participant to complete and file any tax returns which may be required under
any applicable tax laws within the periods specified in those laws as a result of the Participant’s participation in this
Plan. The Company shall not be responsible for any tax consequences to the Participant as a result of the Participant’s participation
in this Plan. The Participant shall remain responsible at all times for paying any federal, provincial, local and foreign income
or employment tax due with respect to any Award, and the Company shall not be liable for any interest or penalty that a Participant
incurs by failing to make timely payments of tax.

 

11.2      Withholding
Requirements. Prior to the delivery of any Common Shares or cash under this Plan, the Company shall have the power and the
right to deduct or withhold, or to require a Participant to remit to the Company, an amount sufficient to satisfy any federal,
provincial, local and foreign taxes, pension plan contributions, employment insurance premiums and any other required deductions
(collectively referred to herein as “withholding taxes”) that the Company determines is required to be withheld
to comply with applicable laws. The Company shall make any withholdings or deductions in respect of withholding taxes as required
by law or the interpretation or administration thereof. The Company shall be entitled to make arrangements to sell a sufficient
number of Common Shares to be issued pursuant to the Plan to fund the payment and remittance of withholding taxes that are required
to be deducted or withheld and any associated costs (including brokerage fees).

 

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Article 12.      UNSECURED
PLAN

 

12.1      Unsecured
Plan. Unless otherwise determined by the Board, this Plan will at all times remain unfunded and the obligations of the Company
under this Plan shall be general unsecured obligations of the Company and any amounts due to Participants under this Plan shall
be paid out of the general assets of the Company. The Company shall not segregate any assets for the purpose of funding its obligations
with respect to DSUs credited hereunder. Neither the Company nor the Committee shall be deemed to be a trustee of any amounts to
be distributed or paid pursuant to the Plan. No liability or obligation of the Company pursuant to the Plan shall be deemed to
be secured by any pledge of, or encumbrance on, any property of the Company or any Affiliate.

 

Article 13.      COMPLIANCE
WITH APPLICABLE LAWS

 

13.1      Compliance
with Applicable Laws. Any obligation of the Company with respect to the Common Shares in accordance with the terms of this
Plan is subject to compliance with all applicable laws, regulations, rules, orders of governmental or regulatory authorities and
the requirements of the Exchange. Notwithstanding any other provision of this Plan, if the Company, in its sole discretion, determines
that it is not desirable or feasible to provide for the settlement of DSUs in Common Shares in accordance with Section 5.3 above,
including by reason of any such laws, regulations, rules, orders or requirements, such obligation shall be satisfied by means of
a cash payment determined in accordance with subsection 5.2(a) above, net of applicable withholdings. Each Participant shall comply
with all such laws, regulations, rules, orders and requirements, and shall furnish the Company with any and all information and
undertakings as may be required to ensure compliance therewith.

 

Article 14.      GENERAL

 

14.1      No
Representation. The Company makes no representation or warranty as to the future market of the Common Shares.

 

14.2      Governing
Law. This Plan shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada
applicable therein. The Participants and Company hereby attorn to the jurisdiction of the courts of the Province of Ontario with
respect to any and all actions in relation thereto.

 

14.3      Severability.
If any provision of this Plan is determined to be void or unenforceable in whole or in part, such void or unenforceable provision
shall be severed from the remainder of this Plan and such determination shall not affect the validity or enforceability of any
other provision.

 

14.4      Headings.
Headings are for ease of reference only and shall not affect the interpretation or construction of the provisions hereof.

 

14.5      Successors
and Assigns. This Plan shall be binding on all successors and assigns of the Company and any Participant, including without
limitation, the estate of such Participant and the executor, liquidator, administrator or trustee of such estate, or any receiver
or trustee in bankruptcy or representative of the Participant’s creditors.

 

***

 

    	 	- 12 -	 

     

    

 

SCHEDULE A 

AMERICAS SILVER CORPORATION

DEFERRED SHARE UNIT AGREEMENT

 

This DEFERRED SHARE UNIT AGREEMENT
is made effective as of theday of, 20 between

 

AMERICAS SILVER CORPORATION
(the “Company”) and the undersigned (the “Participant”), being a director, officer or employee
of the Company or an Affiliate of the Company designated pursuant to the terms of the Deferred Share Unit Plan of the Company,
as may be amended from time to time (the ”Plan”). Capitalized terms used herein and not otherwise defined have
the meaning given to such terms in the Plan.

 

In consideration for the grant
of DSUs made to the Participant pursuant to the Plan (the receipt and sufficiency of which are hereby acknowledged), the Participant
hereby agrees and confirms that:

 

		1.	The Participant has received a copy of the Plan and has read, understands and agrees to be bound
by the provisions of the Plan. The Participant acknowledges, among other things, that the Plan contains provisions relating to
termination and restricting the transfer of rights or interests of Participants under the Plan.

 

		2.	The Participant accepts and consents to and shall be deemed conclusively to have accepted and consented
to, and agreed to be bound by, the provisions and all terms of the Plan and all bona fide actions or decisions made by the
Board, the Committee, or any person to whom the Committee may delegate administrative duties and powers in relation to the Plan,
which terms and content shall also apply to and be binding on all successors and assigns of the Company and the Participant, including
the estate of such Participant and the executor, liquidator, administrator or trustee of such estate, or any receiver or trustee
in bankruptcy or representative of the Participant’s creditors.

 

		3.	The Participant hereby elects to receive 100% of his/her Annual Board Retainer for the remainder
of the Company’s current fiscal year in the form of DSUs. For U.S. Grantees, the deferral election will be effective only
with respect to remuneration payable in respect of services performed after the date the election is effective. This election shall
continue to apply for all subsequent fiscal years, unless and until the Board resolves that the Annual Board Retainer not be paid
in the form of DSUs. The DSUs granted hereunder will be calculated in accordance with Section 4.2(a) of the Plan with an Adjustment
Factor of 1.25 to be applied to the Annual Board Retainer.

 

		4.	This Agreement shall be considered as part of and an amendment to the employment or service agreement
between the Participant and the Company and the Participant hereby agrees that the Participant will not make any claim under that
employment or service agreement for any rights or entitlement under the Plan or damages in lieu thereof, except as expressly provided
in the Plan.

 

		5.	Participants who are “insiders” of the Company are required to file an insider report
under Canadian securities laws in respect of the grant of DSUs and upon future conversion of these DSUs into DSU Shares and any
subsequent sales of such DSU Shares.

 

		6.	In the event of any inconsistency between the terms of this Agreement and the Plan, the terms of
this Agreement shall prevail to the extent that it is not inconsistent with the requirements of the Exchange.

 

     

     

    

 

This Agreement shall be determined
in accordance with the laws of Ontario and the laws of Canada applicable therein.

 

Words used herein which are defined
in the Plan shall have the respective meanings ascribed to them in the Plan.

 

IN WITNESS WHEREOF, the parties
have executed and delivered this Agreement as of the date first above written.

 

	 	 	AMERICAS SILVER CORPORATION
	 	 	 	 
	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:
	 	 	 	(Authorized Signing Officer)
	 	 	 	 
	Accepted:_______________________, 20__	 	 	 
	 	 	 	 
	 	 	 	 
	[Name]	 	 	 

 

    	 	- 2 -	 

     

    

 

SCHEDULE
B

 

ADDENDUM FOR DSUs GRANTED TO A U.S. GRANTEE

 

		1)	The procedures regarding the Settlement Date outlined in Section 5.1 of the Plan do not apply to
Eligible Participants to whom this U.S. Addendum applies (i.e., Eligible Participants who are U.S. Grantees). For the avoidance
of doubt, U.S. Grantees are not permitted to select a redemption date under the Plan. All vested DSUs credited to a U.S. Grantee
will be redeemed and paid in accordance with the Plan between a date at least six months and one day following the date that the
Eligible Participant ceases to be an Eligible Participant as a result of a termination of employment and/or service as contemplated
in Section 5.1, of the Plan (including as a result of a termination of employment and/or service due to long-term disability or
retirement), and a date that is the earliest of (i) December 31st of the calendar year that includes the Termination
Date and (ii) the 15th day of the third calendar month following the month that includes the Termination Date; based
on the Market Price of the Common Shares on such date multiplied by the number of DSUs so redeemed.

 

		2)	For the purposes of clarity of the intent to comply with paragraph 6801(d) of the Regulations made
pursuant to the Income Tax Act (Canada), in no event will any payment under the Plan be made later than the end of the first
calendar year commencing after such U.S. Grantee's death, retirement, or cessation of service.

 

		3)	For purposes of U.S. Grantees subject to this Schedule B, references to cessation or termination
of employment shall be construed as requiring a separation from service within the meaning of U.S. Treasury Regulation §1.409A-1(h).

 

		4)	References to “Affiliated Entities” shall be interpreted in a manner that complies
with the definitions of “service recipient” and “employer”, as applicable, under the U.S. Treasury Regulations
under Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).

 

		5)	The Company shall withhold from any award and/or payment under the Plan all taxes or other amounts
required to be withheld by the Company under applicable law.

 

		6)	This Schedule B, and the Plan as it relates to U.S. Grantees, shall be interpreted and applied
in a manner that complies with the requirements of Section 409A of the Code.

 

		7)	All other provisions of the Plan shall continue to apply to the U.S. Grantees to the extent they
have not been specifically modified by this U.S. Addendum.

 

***Exhibit

Exhibit 10.1

SECOND AMENDMENT TO  
LOAN AND SECURITY AGREEMENT
THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 24th day of August, 2018, by and between SILICON VALLEY BANK, a California corporation (“Bank”), and CALIX, INC., a Delaware corporation (“Borrower”).
RECITALS
A.Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 7, 2017 (as the same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”).  
B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Bank (i) extend the Revolving Line Maturity Date, (ii) modify the financial covenants, and (iii) make certain other revisions to the Loan Agreement as more fully set forth herein.
D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.
2.    Amendments to Loan Agreement.
2.1    Section 6.2 (Financial Statements, Reports, Certificates).  
(a)    Section 6.2(a) of the Loan Agreement is hereby deleted in its entirety and replaced with the following:
     (a)    a Borrowing Base Report (and any schedules related thereto and including any other information reasonably requested by Bank with respect to Borrower’s Accounts, including without limitation, a detailed accounts receivable ledger) (i) no later than Friday of each week when a Streamline Period is not in effect, and (ii) within seven (7) days after the end of each month when a Streamline Period is in effect;  

(b)    Section 6.2(l) is hereby inserted in the Loan Agreement immediately following Section 6.2(k) of the Loan Agreement:
     (l)    Beneficial Ownership Information.  Borrower shall provide Bank with prompt written notice of any changes to the beneficial ownership information set out in the Beneficial Ownership Information Disclosure Form.  Borrower understands and acknowledges that Bank relies on such true, accurate and up-to-date beneficial ownership information to meet Bank’s regulatory obligations to obtain, verify and record information about the beneficial owners of its legal entity customers.
2.2    Section 6.9 (Financial Covenants).  Section 6.9 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:
     6.9    Financial Covenants. Maintain at all times on a consolidated basis with respect to Borrower:
     (a)    Adjusted Quick Ratio.  Tested as of the last day of each fiscal quarter of Borrower, an Adjusted Quick Ratio as set forth below:
	
		
	Fiscal Quarter Ending
	Adjusted Quick Ratio

	September 30, 2018
	At least 0.90:1.00

	December 31, 2018
	At least 0.90:1.00

	March 31, 2019 and each fiscal quarter thereafter
	At least 1.00:1.00

(b)    Adjusted EBITDA. Tested as of the last day of each fiscal quarter of Borrower, an Adjusted EBITDA of at least the following amounts at the following times:
	
		
	Fiscal Quarter Ending
	Adjusted EBITDA

	September 30, 2018
	$3,000,000

	December 31, 2018
	$5,000,000

	March 31, 2019 and each fiscal quarter thereafter
	$1.00

2.3    Section 7.2 (Changes in Business, Management, Control or Business Locations). The following sentence is hereby added at the end of the second paragraph of Section 7.2 of the Loan Agreement:
     “If Borrower intends to add any new offices or business locations, including warehouses, containing in excess of [***] of Borrower’s assets or property, then Borrower will first receive the written consent of Bank, and the landlord of any such new offices or business locations, including warehouses, shall execute and deliver a landlord consent in form and substance satisfactory to Bank.”
2.4    Section 13 (Definitions).  
(a)    The following terms and their respective definitions set forth in Section 13.1 of the Loan Agreement are hereby deleted in their entirety and replaced with the following: 
     “Eligible Foreign Accounts” are Accounts for which the Account Debtor  is [***], which are Account Debtors that do not have their principal place of business in the United States, and which (a) otherwise satisfy the definition of Eligible Accounts, (b) are billed and collected in the United States, and (c) are billed and/or payable in Dollars, Euros, Pounding Sterling, or Canadian Dollars.
“Revolving Line Maturity Date” is August 7, 2020.
(b)    Clause (c) of the definition of “Permitted Liens” set forth in Section 13.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:
     (c)    purchase money Liens or Liens in connection with capital leases (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than Six Million Dollars ($6,000,000) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment;
(c)    The following new defined term is hereby inserted alphabetically to Section 13.1 of the Loan Agreement:
     “Beneficial Ownership Information Disclosure Form” means the form attached hereto as Exhibit E.
2.5    Compliance Certificate.  Exhibit B of the Loan Agreement is hereby replaced in its entirety with Exhibit B attached hereto.  From and after the date hereof, all references in the Loan Agreement to the Compliance Certificate shall be deemed to refer to Exhibit B attached hereto.
2.6    Beneficial Ownership Information Disclosure Form.  The Loan Agreement is hereby amended by adding the Beneficial Ownership Information Disclosure Form attached hereto as Exhibit E as Exhibit E to the Loan Agreement. From and after the date hereof, 

all references in the Loan Agreement to the Beneficial Ownership Information Disclosure Form shall be deemed to refer to the Beneficial Ownership Information Disclosure Form attached hereto as Exhibit E
3.    Limitation of Amendment.
3.1    The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.
3.2    This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.
3.3    In addition to those Events of Default specifically enumerated in the Loan Documents, the failure to comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle Bank to exercise all rights and remedies provided to Bank under the terms of any of the other Loan Documents as a result of the occurrence of the same.
4.    Representations and Warranties.  To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:
4.1    Immediately after giving effect to this Amendment (1) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (1) no Event of Default has occurred and is continuing;
4.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;
4.3    The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
4.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
4.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any material law or regulation binding on or affecting 

Borrower, (b) any contractual restriction with a Person binding on Borrower in any material respects, (c) in any material respects, any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 
4.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and
4.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
5.    Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.
6.    Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
7.    Effectiveness.  This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment of an amendment fee to Bank of One Hundred Five Thousand Dollars ($105,000), and (c) payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment.
[Signature page follows.]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.
BORROWER:
CALIX, INC.
By:  _/s/ Cory Sindelar__________________________
Name:  Cory Sindelar
Title: Chief Financial Officer 
BANK:
SILICON VALLEY BANK
By:  _/s/ Stephen Chang_________________________
Name: Stephen Chang
        Title: Director

EXHIBIT B
COMPLIANCE CERTIFICATE
TO:        SILICON VALLEY BANK                    Date:                
FROM:      CALIX, INC.
The undersigned authorized officer of CALIX, INC. (“Borrower”) certifies, solely in his or her capacity as an officer of Borrower and not in his or her individual capacity, that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank.  Attached are the required documents supporting the certification.  The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.
	
			
	Please indicate compliance status by circling Yes/No under “Complies” column.

	 

	Reporting Covenants
	Required
	Complies

	 
	 
	 

	Monthly financial statements with  
Compliance Certificate
	Monthly within 30 days
	Yes   No

	Annual financial statements (CPA Audited)
	Earlier of 120 days of FYE, or 10-K filing date
	Yes   No

	Quarterly financial statements
	Earlier of 90 days of FQE, or 10-Q filing date
	Yes   No

	10-Q, 10-K and 8-K
	Within 5 days after filing with SEC
	Yes   No

	A/R & A/P Agings
	Monthly within 30 days
	Yes   No

	Deferred Revenue Report
	Monthly within 30 days
	Yes   No

	Detailed Debtor Listing
	Monthly within 30 days
	Yes   No

	Borrowing Base Reports
	If Streamline Period in effect, monthly within 7 days; if Streamline Period not in effect, Friday of each week
	Yes   No

	Board approved projections
	Within later of 60 days of Board approval or FYE, and as within 10 days of any amendment/update
	Yes   No

	 

	

The following Intellectual Property was registered after the Effective Date or after the last delivery date of a Compliance Certificate (if no registrations, state “None”)
____________________________________________________________________________

	
				
	Financial Covenants
	Required
	Actual
	Complies

	 
	 
	 
	 

	Maintain as indicated:
	 
	 
	 

	Adjusted Quick Ratio (tested quarterly)
	See attached schedule
	See attached schedule
	Yes   No

	Adjusted EBITDA (tested quarterly)
	See attached schedule
	See attached schedule
	Yes   No

	
			
	Performance Pricing
	 

	 
	 
	 

	 
	Interest Rate
	Applies

	AQR > 1.50
	LIBOR + 2.00% or Prime + 0.50%
	Yes   No

	AQR > 1.25 and < 1.50 
	LIBOR + 2.50% or Prime + 1.00
	Yes   No

	AQR < 1.25
	LIBOR + 3.00% or Prime + 1.50%
	Yes   No

	
			
	 
	Unused Line Fee
	Applies

	AQR > 1.25
	0.25%
	Yes   No

	AQR < 1.25
	0.375%
	Yes   No

	
			
	Streamline Period
	Applies

	 
	 
	 

	(i) AQR > 1.10 from the Effective Date through December 31, 2017, or (ii) AQR > 1.25 from January 1, 2018 and at all times thereafter 
	Yes
	Yes   No

	(i) AQR < 1.10 from the Effective Date through December 31, 2017, or (ii) AQR < 1.25 from January 1, 2018 and at all times thereafter
	No
	Yes   No

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.
The following are the exceptions with respect to the certification above:  (If no exceptions exist, state “No exceptions to note.”)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Attached are copies of all correspondence, reports, documents and other filings with any Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or that could reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the operations of Borrower or any of its Subsidiaries.

	
		
	CALIX, INC.

By:   
Name:   
Title:   
	BANK USE ONLY

Received by: _____________________
AUTHORIZED SIGNER
Date:    _________________________

Verified: ________________________
AUTHORIZED SIGNER
Date:    _________________________

Compliance Status:   Yes     No

Schedule 1 to Compliance Certificate
Financial Covenants of Borrower
In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.
Dated:    ____________________
I.    Adjusted Quick Ratio (Section 6.9(a))
Required:  Tested as of the last day of each fiscal quarter of Borrower, an Adjusted Quick Ratio as set forth below:

	
		
	Fiscal Quarter Ending
	Adjusted Quick Ratio

	September 30, 2018
	At least 0.90:1.00

	December 31, 2018
	At least 0.90:1.00

	March 31, 2019 and each fiscal quarter thereafter
	At least 1.00:1.00

Actual:
	
			
	A.
	Aggregate value of the unrestricted and unencumbered cash and Cash Equivalents of Borrower at Bank and Bank’s Affiliates, or held in accounts subject to Control Agreements as permitted under the Agreement
	$_______

	B.
	Aggregate value of net billed accounts receivable of Borrower
	$_______

	C.
	Quick Assets (the sum of lines A and B)
	$_______

	D.
	Aggregate value of liabilities of Borrower on its consolidated balance sheet including all Indebtedness and current portion of Subordinated Debt permitted by Bank to be paid by Borrower (but excluding (i) all other Subordinated Debt, (ii) Obligations to Bank, and (iii) any Indebtedness that is cash secured or is otherwise collateralized pursuant to terms acceptable to Bank in its sole discretion), that matures within one (1) year
	$_______

	E.
	Aggregate value of Obligations to Bank
	$_______

	F.
	The sum of lines D and E
	$_______

	G.
	Aggregate value of the current portion of all amounts received or invoiced by Borrower in advance of performance under contracts and not yet recognized as revenue
	$_______

	H.
	Line F minus line G
	$_______

	I.
	Adjusted Quick Ratio (line C divided by line H)
	        :1.00

Is line I at least the required amount for such fiscal quarter?
________ No, not in compliance                          Yes, in compliance

II    Adjusted EBITDA (Section 6.9(b))

Required:  Tested as of the last day of each fiscal quarter of Borrower, an Adjusted EBITDA of at least the following amounts at the following times:

	
		
	Fiscal Quarter Ending
	Adjusted EBITDA

	September 30, 2018
	$3,000,000

	December 31, 2018
	$5,000,000

	March 31, 2019 and each fiscal quarter thereafter
	$1.00

Actual:
	
			
	A.
	Net Income of Borrower
	$_________

	B.
	To the extent included in the determination of Net Income
	 

	 
	1.   The provision for income taxes
	$_________

	 
	2.   Depreciation expense
	$_________

	 
	3.   Amortization expense
	$_________

	 
	4.   Interest Expense
	$_________

	C.
	EBITDA (line A plus lines B.1-B.4)
	$_________

	D.
	Non-cash stock compensation expense
	$_________

	E.
	Other non-cash items approved by Bank in writing on a case-by-case basis
	$_________

	F.
	One-time non-recurring restructuring expenses actually incurred by Borrower in the fiscal quarter ending March 31, 2018 not to exceed $3,000,000 in the aggregate
	$_________

	G.
	Adjusted EBITDA (line C plus lines D-F
	$_________

Is line G at least the amount required above?

  No, not in compliance                ___________ Yes, in compliance 

EXHIBIT E
BENEFICIAL OWNERSHIP INFORMATION DISCLOSURE FORM
		
	1.
	Is the Borrower any of the following:

	
					
	 
	i.                          
	 
	a public company or an issuer of securities that are registered with the Securities and Exchange Commission under Section 12 of the Securities Exchange Act of 1934 or that is required to file reports under Section 15(d) of that Act; 
	 

	 
	ii.
	 
	an investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940;
	 

	 
	iii.
	 
	an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940; or
	 

	 
	iv.
	 
	a pooled investment vehicle operated or advised by a regulated financial institution (including an SEC-registered investment adviser)?
	 

	 
	 
	 
	 
	 

Yes           No    
If yes, skip to signature page below.  If no, continue to 2:
		
	2.
	Is the Borrower a pooled investment vehicle that is not operated or advised by a regulated financial institution?

Yes           No    
If yes, skip to 4 below.  If no, continue to 3:
		
	3.
	Does any individual, directly or indirectly (for example, if applicable, through such individual’s equity interests in the Borrower’s parent entity), through any contract, arrangement, understanding, relationship or otherwise, own 25% or more of the equity interests of Borrower:

Yes           No    
If yes, complete the following information:

	
							
	 
	Name
	Date of birth
	Residential address
	For US Persons, Social Security Number:
(non-US persons should provide SSN if available)
	For Non-US Persons: Type of ID, ID number, country of issuance, expiration date
	Percentage of ownership/Name of Entity
(if indirect ownership, explain structure)

	1
	 
	 
	 
	 
	 
	 

	2
	 
	 
	 
	 
	 
	 

	3
	 
	 
	 
	 
	 
	 

	4
	 
	 
	 
	 
	 
	 

		
	4.
	Identify one individual with significant responsibility for managing Borrower i.e., an executive officer or senior manager (e.g., Chief Executive Officer, President, Vice President, Chief Financial Officer, Treasurer, Chief Operating Officer, Managing Member or General Partner) or any other individual who regularly performs similar functions.  If appropriate, an individual listed in Section 1 above may also be listed here.

	
							
	 
	Name
	Date of birth
	Residential address
	For US Persons, Social Security Number:
(non-US persons should provide SSN if available)
	For Non-US Persons: Type of ID, ID number, country of issuance, expiration date
	Name of Entity

	1
	 
	 
	 
	 
	 
	 

The undersigned, hereby certifies, to the best of his or her knowledge, that the information set out in this Beneficial Ownership Information Disclosure Form is true, complete and correct.
Date:  August 24, 2018    

By:  /s/ Cory Sindelar
Name:  Cory Sindelar
Title:  CFO
Email: cory.sindelar@calix.com
Phone: (408) 474-0052

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}]]