Document:

CounterPath Corporation - Exhibit 4.2 - Filed by newsfilecorp.com

COUNTERPATH CORPORATION 

AMENDED 2010 STOCK OPTION PLAN 

                          This
2010 Stock Option Plan (the "Plan") provides for the grant of options to acquire
shares of common stock, no par value (the "Common Stock"), of CounterPath
Corporation, a Nevada company (the "Company"). For the purposes of Eligible
Employees (as defined below) who are subject to tax in the United States, stock
options granted under this Plan that qualify under Section 422 of the United
States Internal Revenue Code of 1986, as amended (the "Code"), are referred to
in this Plan as "Incentive Stock Options". Incentive Stock Options and stock
options that do not qualify under Section 422 of the Code ("Non-Qualified Stock
Options") and stock options granted to non-United States residents under this
Plan are referred to collectively as "Options". 

1.                       PURPOSE

1.1                     The
purpose of this Plan is to retain the services of valued key employees and
consultants of the Company and such other persons as the Plan Administrator
shall select in accordance with Section 3 below, and to encourage such persons
to acquire a greater proprietary interest in the Company, thereby strengthening
their incentive to achieve the objectives of the shareholders of the Company,
and to serve as an aid and inducement in the hiring of new employees and to
provide an equity incentive to consultants and other persons selected by the
Plan Administrator. 

1.2                     This
Plan shall at all times be subject to all legal requirements relating to the
administration of stock option plans, if any, under applicable Canadian federal
and provincial, and United States federal and state securities laws, the Code,
the rules of any applicable stock exchange or stock quotation system, and the
rules of any foreign jurisdiction applicable to Options granted to residents
therein (collectively, the "Applicable Laws"). 

2.                      ADMINISTRATION

2.1                    This
Plan shall be administered initially by the Board of Directors of the Company
(the "Board"), except that the Board may, in its discretion, establish a
committee composed of two (2) or more members of the Board to administer the
Plan, which committee (the "Committee") may be an executive, compensation or
other committee, including a separate committee especially created for this
purpose. The Board or, if applicable, the Committee is referred to herein as the
"Plan Administrator". 

2.2                    If
and so long as the Common Stock is registered under Section 12(b) or 12(g) of
the United States Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the Board shall consider in selecting the Plan Administrator
and the membership of any Committee, with respect to any persons subject or
likely to become subject to Section 16 of the Exchange Act, the provisions
regarding (a) "outside directors" as contemplated by Section 162(m) of the Code,
and (b) "Non-Employee Directors" as contemplated by Rule 16b-3 under the
Exchange Act. 

2.3                    The
Committee shall have the powers and authority vested in the Board hereunder
(including the power and authority to interpret any provision of the Plan or of
any Option). The members of any such Committee shall serve at the pleasure of
the Board. A majority of the members of the Committee shall constitute a quorum,
and all actions of the Committee shall be taken by a majority of the members
present. Any action may be taken by a written instrument signed by all of the
members of the Committee and any action so taken shall be fully effective as if
it had been taken at a meeting. 

2.4                    The
Board may at any time amend, suspend or terminate the Plan, subject to such
shareholder approval as may be required by Applicable Laws, including the rules
of an applicable stock exchange or other national market system, provided that:

	 	(a) 	
      no Options may be granted during any suspension of the
      Plan or after termination of the Plan; and

- 2 - 

	 	(b) 	
      any amendment, suspension or termination of the Plan will
      not affect Options already granted, and such Options will remain in full
      force and affect as if the Plan had not been amended, suspended or
      terminated, unless mutually agreed otherwise between the Optionee (as
      defined below) and the Plan Administrator, which agreement will have to be
      in writing and signed by the Optionee and the
Company.

2.5                     Subject
to the provisions of this Plan, and with a view to effecting its purpose, the
Plan Administrator shall have sole authority, in its absolute discretion, to:

	 	(a) 	
      construe and interpret this Plan;

	 	 	 
	 	(b) 	
      define the terms used in the Plan;

	 	 	 
	 	(c) 	
      prescribe, amend and rescind the rules and regulations
      relating to this Plan;

	 	 	 
	 	(d) 	
      correct any defect, supply any omission or reconcile any
      inconsistency in this Plan;

	 	 	 
	 	(e) 	
      grant Options under this Plan;

	 	 	 
	 	(f) 	
      determine the individuals to whom Options shall be
      granted under this Plan and whether the Option is an Incentive Stock
      Option or a Non-Qualified Stock Option, or otherwise;

	 	 	 
	 	(g) 	
      determine the time or times at which Options shall be
      granted under this Plan;

	 	 	 
	 	(h) 	
      determine the number of shares of Common Stock subject to
      each Option, the exercise price of each Option, the duration of each
      Option and the times at which each Option shall become
  exercisable;

	 	 	 
	 	(i) 	
      determine all other terms and conditions of the Options;
      and

	 	 	 
	 	(j) 	
      make all other determinations and interpretations
      necessary and advisable for the administration of the
  Plan.

2.6                     All
decisions, determinations and interpretations made by the Plan Administrator
shall be binding and conclusive on all participants in the Plan and on their
legal representatives, heirs and beneficiaries, subject to any contrary
determination by the Board. 

3.                      
ELIGIBILITY 

3.1                     Incentive
Stock Options may be granted to any individual who, at the time the Option is
granted, is an employee of the Company or any Related Company (as defined below)
("Eligible Employees") subject to tax in the United States. 

3.2                     Non-Qualified
Stock Options may be granted to Eligible Employees, Consultants, and to such
other persons who are not Eligible Employees as the Plan Administrator shall
select, subject to any Applicable Laws.

3.3                    
Options may be granted in substitution for outstanding options of another
company in connection with the merger, consolidation, acquisition of property or
stock or other reorganization between such other company and the Company or any
subsidiary of the Company. Options also may be granted in exchange for
outstanding Options.

3.4                     Unless
otherwise approved by the Plan Administrator and Disinterested Shareholders (as
such term is defined in Applicable Laws), no person shall be eligible to receive
in any fiscal year Options to purchase more than 5% of the outstanding shares of
Common Stock (subject to adjustment as set forth in Section 5.1(m) hereof). Any person to whom an Option is granted under this
Plan is referred to as an "Optionee". Any person who is the owner of an Option
is referred to as a "Holder". 

- 3 - 

3.5                     As
used in this Plan, the term "Related Company" shall mean any company (other than
the Company) that is a "Parent Company" of the Company or "Subsidiary Company"
of the Company, as those terms are defined in Sections 424(e) and 424(f),
respectively, of the Code (or any successor provisions) and the regulations
thereunder (as amended from time to time). 

4.                      
STOCK 

4.1                     The
maximum number of shares of Common Stock issuable under the Plan is 1,186,000.
The number of shares with respect to which Options may be granted hereunder is
subject to adjustment as set forth in Section 5.1(m) hereof. In the event that
any outstanding Option expires or is terminated for any reason, the shares of
Common Stock allocable to the unexercised portion of such Option may again be
subject to an Option granted to the same Optionee or to a different person
eligible under Section 3 of this Plan; provided however, that any cancelled
Options will be counted against the maximum number of shares with respect to
which Options may be granted to any particular person as set forth in Section 3
hereof. 

5.                      
TERMS AND CONDITIONS OF OPTIONS 

5.1                    
Each Option granted under this Plan shall be evidenced by a written agreement
approved by the Plan Administrator (the "Agreement"). Agreements may contain
such provisions, not inconsistent with this Plan, as the Plan Administrator in
its discretion may deem advisable. All Options also shall comply with the
following requirements: 

	 	(a) 	
      Number of Shares and Type of Option

	 	 	 	 
	 		
      Each Agreement shall state the number of shares of Common
      Stock to which it pertains and, for Optionees subject to tax in the United
      States, whether the Option is intended to be an Incentive Stock Option or
      a Non-Qualified Stock Option, provided that:

	 	 	 	 
	 		(i) 	
      in the absence of action to the contrary by the Plan
      Administrator in connection with the grant of an Option, all Options shall
      be Non-Qualified Stock Options;

	 	 	 	 
	 		(ii) 	
      the aggregate fair market value (determined at the Date
      of Grant, as defined below) of the stock with respect to which Incentive
      Stock Options are exercisable for the first time by an Optionee subject to
      tax in the United States during any calendar year (granted under this Plan
      and all other Incentive Stock Option plans of the Company, a Related
      Company or a predecessor company) shall not exceed U.S.$100,000, or such
      other limit as may be prescribed by the Code as it may be amended from
      time to time (the "Annual Limit"); and

	 	 	 	 
	 		(iii) 	
      any portion of an Option which exceeds the Annual Limit
      shall not be void but rather shall be a Non-Qualified Stock
  Option.

	 	(b) 	
      Date of Grant

	 	 	 
	 		
      Each Agreement shall state the date the Plan
      Administrator has deemed to be the effective date of the Option for
      purposes of this Plan (the "Date of Grant").

	 	 	 
	 	(c) 	
      Option Price

	 	 	 
	 		
      Each Agreement shall state the price per share of Common
      Stock at which it is exercisable. The Plan Administrator shall act in good
      faith to establish the exercise price in accordance with Applicable Laws;
      provided that:

- 4 - 

	 	(i) 	
      the per share exercise price for an Incentive Stock
      Option or any Option granted to a "covered employee" as such term is
      defined for purposes of Section 162(m) of the Code ("Covered Employee")
      shall not be less than the fair market value per share of the Common Stock
      at the Date of Grant as determined by the Plan Administrator in good
      faith;

	 	 	 
	 	(ii) 	
      with respect to Incentive Stock Options granted to
      greater-than-ten percent (>10%) shareholders of the Company (as
      determined with reference to Section 424(d) of the Code), the exercise
      price per share shall not be less than one hundred ten percent (110%) of
      the fair market value per share of the Common Stock at the Date of Grant
      as determined by the Plan Administrator in good faith;

	 	 	 
	 	(iii) 	
      Options granted in substitution for outstanding options
      of another company in connection with the merger, consolidation,
      acquisition of property or stock or other reorganization involving such
      other company and the Company or any subsidiary of the Company may be
      granted with an exercise price equal to the exercise price for the
      substituted option of the other company, subject to any adjustment
      consistent with the terms of the transaction pursuant to which the
      substitution is to occur; and

	 	 	 
	 	(iv) 	
      with respect to Non-Qualified Stock Options, the exercise
      price per share shall be determined by the Plan Administrator at the time
      the Option is granted, but such price shall not be less than the closing
      trading price of the Common Stock on the OTCBB on the last trading day
      preceding the date on which the Option is granted (or if the Common Stock
      is not then listed and posted for trading on the OTCBB, on such other
      stock exchange on which the Common Shares are listed and posted for
      trading as may be selected by the Board of Directors). In the event that
      the Common Stock is not listed and posted for trading on any stock
      exchange or other quotation systems, the exercise price shall be the fair
      market value of the Common Stock as determined by the Plan
      Administrator.

	 	(d) 	
      Duration of Options

	 	 	 	 
	 		
      At the time of the grant of the Option, the Plan
      Administrator shall designate, subject to paragraph 5.1(g) below, the
      expiration date of the Option, which date shall not be later than ten (10)
      years from the Date of Grant; provided, that: (a) the expiration
      date of any Incentive Stock Option granted to a greater-than-ten percent
      (>10%) shareholder of the Company (as determined with reference to
      Section 424(d) of the Code) shall not be later than five (5) years from
      the Date of Grant, and (b) if the expiration date falls on a date which is
      not a business day, then the expiration date shall be extended to the end
      of the next business day. In the absence of action to the contrary by the
      Plan Administrator in connection with the grant of a particular Option,
      and except in the case of Incentive Stock Options as described above, all
      Options granted under this Plan shall expire five (5) years from the Date
      of Grant.

	 	 	 	 
	 	(e) 	
      Vesting Schedule

	 	 	 	 
	 		
      No Option shall be exercisable until it has vested. The
      vesting schedule for each Option shall be specified by the Plan
      Administrator at the time of grant of the Option prior to the provision of
      services with respect to which such Option is granted; provided
      that if no vesting schedule is specified at the time of grant, the
      Option shall vest as follows:

	 	 	 	 
	 		(i) 	
      on the first anniversary of the Date of Grant, the Option
      shall vest and shall become exercisable with respect to 25% of the Common
      Stock to which it pertains;

	 	 	 	 
	 		(ii) 	
      on the second anniversary of the Date of Grant, the
      Option shall vest and shall become exercisable with respect to an
      additional 25% of the Common Stock to which it
pertains;

- 5 - 

	 	(iii) 	
      on the third anniversary of the Date of Grant, the Option
      shall vest and shall become exercisable with respect to an additional 25%
      of the Common Stock to which it pertains; and

	 	 	 
	 	(iv) 	
      on the fourth anniversary of the Date of Grant, the
      Option shall vest and shall become exercisable with respect to balance of
      the Common Stock to which it pertains.

	 		
      The Plan Administrator may specify a vesting schedule for
      all or any portion of an Option based on the achievement of performance
      objectives established in advance of the commencement by the Optionee of
      services related to the achievement of the performance objectives.
      Performance objectives shall be expressed in terms of one or more of the
      following: return on equity, return on assets, share price, market share,
      sales, earnings per share, costs, net earnings, net worth, inventories,
      cash and cash equivalents, gross margin or the Company's performance
      relative to its internal business plan, or such other terms as determined
      and directed by the Board. Performance objectives may be in respect of the
      performance of the Company as a whole (whether on a consolidated or
      unconsolidated basis), a Related Company, or a subdivision, operating
      unit, product or product line of either of the foregoing. Performance
      objectives may be absolute or relative and may be expressed in terms of a
      progression or a range. An Option that is exercisable (in full or in part)
      upon the achievement of one or more performance objectives may be
      exercised only following written notice to the Optionee and the Company by
      the Plan Administrator that the performance objective has been
      achieved.

	 	 	 
	 	(f) 	
      Acceleration of Vesting

	 	 	 
	 		
      The vesting of one or more outstanding Options may be
      accelerated by the Plan Administrator at such times and in such amounts as
      it shall determine in its sole discretion. The vesting of Options also
      shall be accelerated under the circumstances described in Section 5.1(m)
      below.

	 	 	 
	 	(g) 	
      Term of Option

	 	(i) 	
      Options that have vested as specified by the Plan
      Administrator or in accordance with this Plan, shall terminate, to the
      extent not previously exercised, upon the occurrence of the first of the
      following events:

	 	A. 	
      the expiration of the Option, as designated by the Plan
      Administrator in accordance with Section 5.1(d) above;

	 	 	 
	 	B. 	
      the date of an Optionee's termination of employment or
      contractual relationship with the Company or any Related Company for cause
      (as determined in the sole discretion of the Plan
Administrator);

	 	 	 
	 	C. 	
      the expiration of three (3) months from the date of an
      Optionee's termination of employment or contractual relationship with the
      Company or any Related Company for any reason whatsoever other than cause,
      death or Disability (as defined below); or

	 	 	 
	 	D. 	
      the expiration of one year (1) from termination of an
      Optionee's employment or contractual relationship by reason of death or
      Disability (as defined below).

	 	(ii) 	
      Upon the death of an Optionee, any vested Options held by
      the Optionee shall be exercisable only by the person or persons to whom
      such Optionee's rights under such Option shall pass by the Optionee's will
      or by the laws of descent and distribution of the Optionee's domicile at
      the time of death and only until such Options terminate as provided
      above.

- 6 - 

	 	(iii) 	
      For purposes of the Plan, unless otherwise defined in the
      Agreement, "Disability" shall mean medically determinable physical or
      mental impairment which has lasted or can be expected to last for a
      continuous period of not less than six (6) months or that can be expected
      to result in death. The Plan Administrator shall determine whether an
      Optionee has incurred a Disability on the basis of medical evidence
      acceptable to the Plan Administrator. Upon making a determination of
      Disability, the Plan Administrator shall, for purposes of the Plan,
      determine the date of an Optionee's termination of employment or
      contractual relationship.

	 	 	 
	 	(iv) 	
      Unless accelerated in accordance with Section 5.1(f)
      above, unvested Options shall terminate immediately upon the Optionee
      resigning from or the Company terminating the Optionee’s employment or
      contractual relationship with the Company or any Related Company for any
      reason whatsoever, including death or Disability.

	 	 	 
	 	(v) 	
      For purposes of this Plan, transfer of employment between
      or among the Company and/or any Related Company shall not be deemed to
      constitute a termination of employment with the Company or any Related
      Company. For purposes of this subsection, employment shall be deemed to
      continue while the Optionee is on military leave, sick leave or other
      bona fide leave of absence (as determined by the Plan
      Administrator). The foregoing notwithstanding, employment shall not be
      deemed to continue beyond the first ninety (90) days of such leave, unless
      the Optionee's re-employment rights are guaranteed by statute or by
      contract.

	 	(h) 	
      Exercise of Options

	 	 	 	 
	 		(i) 	
      Options shall be exercisable, in full or in part, at any
      time after vesting, until termination. If less than all of the shares
      included in the vested portion of any Option are purchased, the remainder
      may be purchased at any subsequent time prior to the expiration of the
      Option term. No portion of any Option for less than fifty (50) shares (as
      adjusted pursuant to Section 5.1(m) below) may be exercised;
      provided, that if the vested portion of any Option is less than
      fifty (50) shares, it may be exercised with respect to all shares for
      which it is vested. Only whole shares may be issued pursuant to an Option,
      and to the extent that an Option covers less than one (1) share, it is
      unexercisable.

	 	 	 	 
	 		(ii) 	
      Options or portions thereof may be exercised by giving
      written notice to the Company, which notice shall specify the number of
      shares to be purchased, and be accompanied by payment in the amount of the
      aggregate exercise price for the Common Stock so purchased, which payment
      shall be in the form specified in Section 5.1(i) below. The Company shall
      not be obligated to issue, transfer or deliver a certificate of Common
      Stock to the Holder of any Option, until provision has been made by the
      Holder, to the satisfaction of the Company, for the payment of the
      aggregate exercise price for all shares for which the Option shall have
      been exercised and for satisfaction of any tax withholding obligations
      associated with such exercise.

	 	 	 	 
	 		(iii) 	
      During the lifetime of an Optionee, Options are
      exercisable only by the Optionee or in the case of a Non-Qualified Stock
      Option, transferee who takes title to such Option in the manner permitted
      by subsection 5.1(k) hereof.

	 	(i) 	
      Payment upon Exercise of Option

	 	 	 
	 		
      Upon the exercise of any Option, the aggregate exercise
      price shall be paid to the Company in cash or by certified or cashier's
      check. In addition, if pre-approved in writing by the Plan Administrator
      who may arbitrarily withhold consent, the Holder may pay for all or any
      portion of the aggregate exercise price by complying with one or more of
      the following alternatives:

- 7 - 

	 	(i) 	
      by delivering to the Company shares of Common Stock
      previously held by such Holder, or by the Company withholding shares of
      Common Stock otherwise deliverable pursuant to exercise of the Option,
      which shares of Common Stock received or withheld shall have a fair market
      value at the date of exercise (as determined by the Plan Administrator)
      equal to the aggregate exercise price to be paid by the Optionee upon such
      exercise; or

	 	 	 
	 	(ii) 	
      by complying with any other payment mechanism approved by
      the Plan Administrator at the time of
exercise.

	 	(j) 	
      No Rights as a Shareholder

	 	 	 
	 		
      A Holder shall have no rights as a shareholder with
      respect to any shares covered by an Option until such Holder becomes a
      record holder of such shares, irrespective of whether such Holder has
      given notice of exercise. Subject to the provisions of Section 5.1(m)
      hereof, no rights shall accrue to a Holder and no adjustments shall be
      made on account of dividends (ordinary or extraordinary, whether in cash,
      securities or other property) or distributions or other rights declared
      on, or created in, the Common Stock for which the record date is prior to
      the date the Holder becomes a record holder of the shares of Common Stock
      covered by the Option, irrespective of whether such Holder has given
      notice of exercise.

	 	 	 
	 	(k) 	
      Transfer of Option

	 	(i) 	
      Options granted under this Plan and the rights and
      privileges conferred by this Plan may not be transferred, assigned,
      pledged or hypothecated in any manner (whether by operation of law or
      otherwise) other than by will or by applicable laws of descent and
      distribution or pursuant to a qualified domestic relations order, and
      shall not be subject to execution, attachment or similar process;
      provided however that, subject to applicable laws:

	 	 	 	 
	 		A. 	
      for Incentive Stock Options, any Agreement may provide or
      be amended to provide that a Non-Qualified Stock Option to which it
      relates is transferable without payment of consideration to immediate
      family members of the Optionee or to trusts or partnerships or limited
      liability companies established exclusively for the benefit of the
      Optionee and the Optionee's immediate family members; or

	 	 	 	 
	 		B. 	
      for Non-Qualified Stock Options, the Optionee's heirs or
      administrators may exercise any portion of the outstanding Options within
      one year of the Optionee's death.

	 	(ii) 	
      Upon any attempt to transfer, assign, pledge, hypothecate
      or otherwise dispose of any Option or of any right or privilege conferred
      by this Plan contrary to the provisions hereof, or upon the sale, levy or
      any attachment or similar process upon the rights and privileges conferred
      by this Plan, such Option shall thereupon terminate and become null and
      void.

	 	(l) 	
      Securities Regulation and Tax Withholding

	 	 	 	 
	 		(i) 	
      Shares shall not be issued with respect to an Option
      unless the exercise of such Option and the issuance and delivery of such
      shares shall comply with all Applicable Laws. The inability of the Company
      to obtain from any regulatory body the authority deemed by the Company to
      be necessary for the lawful issuance and sale of any Options or shares
      under this Plan, or the unavailability of an exemption from registration
      for the issuance and sale of any shares under this Plan, shall relieve the
      Company of any liability with respect to the non-issuance or sale of such
      Options or shares.

- 8 - 

	 	(ii) 	
      As a condition to the exercise of an Option, the Plan
      Administrator may require the Holder to represent and warrant in writing
      at the time of such exercise that the shares are being purchased only for
      investment and without any then-present intention to sell or distribute
      such shares. At the option of the Plan Administrator, a stop-transfer
      order against such shares may be placed on the stock books and records of
      the Company, and a legend indicating that the stock may not be pledged,
      sold or otherwise transferred unless an opinion of counsel is provided
      stating that such transfer is not in violation of any applicable law or
      regulation, may be stamped on the certificates representing such shares in
      order to assure an exemption from registration. The Plan Administrator
      also may require such other documentation as may from time to time be
      necessary to comply with federal, provincial or state securities laws. THE
      COMPANY HAS NO OBLIGATION TO UNDERTAKE REGISTRATION OF OPTIONS OR THE
      SHARES OF STOCK ISSUABLE UPON THE EXERCISE OF OPTIONS.

	 	 	 
	 	(iii) 	
      The Holder shall pay to the Company by certified or
      cashier's check, promptly upon exercise of an Option or, if later, the
      date that the amount of such obligations becomes determinable, all
      applicable federal, state, provincial, local and foreign withholding taxes
      that the Plan Administrator, in its discretion, determines to result upon
      exercise of an Option or from a transfer or other disposition of shares of
      Common Stock acquired upon exercise of an Option or otherwise related to
      an Option or shares of Common Stock acquired in connection with an Option.
      Upon approval of the Plan Administrator, a Holder may satisfy such
      obligation by complying with one or more of the following alternatives
      selected by the Plan Administrator:

	 	A. 	
      by delivering to the Company shares of Common Stock
      previously held by such Holder or by the Company withholding shares of
      Common Stock otherwise deliverable pursuant to the exercise of the Option,
      which shares of Common Stock received or withheld shall have a fair market
      value at the date of exercise (as determined by the Plan Administrator)
      equal to any withholding tax obligations arising as a result of such
      exercise, transfer or other disposition; or

	 	 	 
	 	B. 	
      by complying with any other payment mechanism approved by
      the Plan Administrator from time to time.

	 	(iv) 	
      The issuance, transfer or delivery of certificates of
      Common Stock pursuant to the exercise of Options may be delayed, at the
      discretion of the Plan Administrator, until the Plan Administrator is
      satisfied that the applicable requirements of the federal, provincial and
      state securities laws and the withholding provisions under Applicable Laws
      have been met and that the Holder has paid or otherwise satisfied any
      withholding tax obligation as described in paragraph 5.1(l)(iii)
    above.

	 	(m) 	
      Stock Dividend or Reorganization

	 	 	 	 
	 		(i) 	
      If: (1) the Company shall at any time be involved in a
      transaction described in Section 424(a) of the Code (or any successor
      provision) or any "corporate transaction" described in the regulations
      thereunder; (2) the Company shall declare a dividend payable in, or shall
      subdivide, reclassify, reorganize, or combine, its Common Stock; or (3)
      any other event with substantially the same effect shall occur, the Plan
      Administrator shall, subject to applicable law, with respect to each
      outstanding Option, proportionately adjust the number of shares of Common
      Stock subject to such Option and/or the exercise price per share so as to
      preserve the rights of the Holder substantially proportionate to the
      rights of the Holder prior to such event, and to the extent that such
      action shall include an increase or decrease in the number of shares of
      Common Stock subject to outstanding Options, the number of shares
      available under Section 4 of this Plan and the exercise price for such
      Options shall automatically be increased or decreased, as the case may be,
      proportionately, without further action on the part of the Plan
      Administrator, the Company, the Company's shareholders, or any Holder, so as
  to preserve the proportional rights of the Holder.

- 9 - 

	 	(ii) 	
      In the event that the presently authorized capital stock
      of the Company is changed into the same number of shares with a different
      par value, or without par value, the stock resulting from any such change
      shall be deemed to be Common Stock within the meaning of the Plan, and
      each Option shall apply to the same number of shares of such new stock as
      it applied to old shares immediately prior to such change.

	 	 	 
	 	(iii) 	
      If the Company shall at any time declare an extraordinary
      dividend with respect to the Common Stock, whether payable in cash or
      other property, the Plan Administrator may, subject to applicable law, in
      the exercise of its sole discretion and with respect to each outstanding
      Option, proportionately adjust the number of shares of Common Stock
      subject to such Option and/or adjust the exercise price per share so as to
      preserve the rights of the Holder substantially proportionate to the
      rights of the Holder prior to such event, and to the extent that such
      action shall include an increase or decrease in the number of shares of
      Common Stock subject to outstanding Options, the number of shares
      available under Section 4 of this Plan shall automatically be increased or
      decreased, as the case may be, proportionately, without further action on
      the part of the Plan Administrator, the Company, the Company's
      shareholders, or any Holder.

	 	 	 
	 	(iv) 	
      The foregoing adjustments in the shares subject to
      Options shall be made by the Plan Administrator, or by any successor
      administrator of this Plan, or by the applicable terms of any assumption
      or substitution document.

	 	 	 
	 	(v) 	
      The grant of an Option shall not affect in any way the
      right or power of the Company to make adjustments, reclassifications,
      reorganizations or changes of its capital or business structure, to merge,
      consolidate or dissolve, to liquidate or to sell or transfer all or any
      part of its business or assets.

6.                     
 EFFECTIVE DATE; SHAREHOLDER APPROVAL 

6.1                    
Incentive Stock Options may be granted by the Plan Administrator from time to
time on or after the date on which this Plan is adopted (the "Effective Date")
through the day immediately preceding the tenth anniversary of the Effective
Date.

6.2                    
Non-Qualified Stock Options may be granted by the Plan Administrator on or after
the Effective Date and until this Plan is terminated by the Board in its sole
discretion.

6.3                     Termination
of this Plan shall not terminate any Option granted prior to such
termination.

6.4                     The
approval of Disinterested Shareholders will be obtained for any reduction in the
exercise price of Options if the Optionee is an Insider of the Company at the
time of the proposed amendment. The terms "Disinterested Shareholder" and
"Insider" shall have the meanings as defined for those terms in the Applicable
Laws. 

6.5                     Any
Options granted by the Plan Administrator prior to the approval of this Plan by
the shareholders of the Company shall be granted subject to ratification of this
Plan by the shareholders of the Company within twelve (12) months before or
after the Effective Date. If such shareholder ratification is sought and not
obtained, all Options granted prior thereto and thereafter shall be considered
Non-Qualified Stock Options and any Options granted to Covered Employees will
not be eligible for the exclusion set forth in Section 162(m) of the Code with
respect to the deductibility by the Company of certain compensation. In
addition, any such Options will remain unvested unless and until shareholder
approval is obtained. 

- 10 - 

7.                      
NO OBLIGATIONS TO EXERCISE OPTION 

7.1                     The
grant of an Option shall impose no obligation upon the Optionee to exercise such
Option. 

8.                      
NO RIGHT TO OPTIONS OR TO EMPLOYMENT 

8.1                     Whether
or not any Options are to be granted under this Plan shall be exclusively within
the discretion of the Plan Administrator, and nothing contained in this Plan
shall be construed as giving any person any right to participate under this
Plan.

8.2                     The
grant of an Option shall in no way constitute any form of agreement or
understanding binding on the Company or any Related Company, express or implied,
that the Company or any Related Company will employ or contract with an Optionee
for any length of time, nor shall it interfere in any way with the Company's or,
where applicable, a Related Company's right to terminate Optionee's employment
at any time, which right is hereby reserved. 

9.                      
APPLICATION OF FUNDS 

9.1                    
The proceeds received by the Company from the sale of Common Stock issued upon
the exercise of Options shall be used for general corporate purposes, unless
otherwise directed by the Board. 

10.                    
INDEMNIFICATION OF PLAN ADMINISTRATOR 

10.1                  
In addition to all other rights of indemnification they may have as members of
the Board, members of the Plan Administrator shall be indemnified by the Company
for all reasonable expenses and liabilities of any type or nature, including
attorneys' fees, incurred in connection with any action, suit or proceeding to
which they or any of them are a party by reason of, or in connection with, this
Plan or any Option granted under this Plan, and against all amounts paid by them
in settlement thereof (provided that such settlement is approved by independent
legal counsel selected by the Company), except to the extent that such expenses
relate to matters for which it is adjudged that such Plan Administrator member
is liable for willful misconduct; provided, that within fifteen (15) days after
the institution of any such action, suit or proceeding, the Plan Administrator
member involved therein shall, in writing, notify the Company of such action,
suit or proceeding, so that the Company may have the opportunity to make
appropriate arrangements to prosecute or defend the same. 

11.                     AMENDMENT
OF PLAN 

11.1                   The
Plan Administrator may, subject to Applicable Laws, at any time, modify, amend
or terminate this Plan or modify or amend Options granted under this Plan,
including, without limitation, such modifications or amendments as are necessary
to maintain compliance with applicable statutes, rules or regulations;
provided however that: 

	 	(a) 	
      no amendment with respect to an outstanding Option which
      has the effect of reducing the benefits afforded to the Holder thereof
      shall be made over the objection of such Holder;

	 	 	 
	 	(b) 	
      the events triggering acceleration of vesting of
      outstanding Options may be modified, expanded or eliminated without the
      consent of Holders;

	 	 	 
	 	(c) 	
      the Plan Administrator may condition the effectiveness of
      any such amendment on the receipt of shareholder approval at such time and
      in such manner as the Plan Administrator may consider necessary for the
      Company to comply with or to avail the Company and/or the Optionees of the
      benefits of any securities, tax, market listing or other administrative or
      regulatory requirement; and

	 	 	 
	 	(d) 	
      the Plan Administrator may not increase the number of
      shares available for issuance on the exercise of Incentive Stock Options
      without shareholder approval.

- 11 - 

11.2                   Without
limiting the generality of Section 11.1 hereof, the Plan Administrator may
modify grants to persons who are eligible to receive Options under this Plan who
are foreign nationals or employed outside Canada and the United States to
recognize differences in local law, tax policy or custom. 

Effective Date: September 27, 2011 as amended July 10, 2014,
September 12, 2016 and October 22, 2018.CounterPath Technologies Inc. - Exhibit 10.12 - Filed by newsfilecorp.com

 

	
    	Suite 300, One Bentall Centre 
505 Burrard
      Street 
Vancouver, BC, Canada 
V7X 1M3 
www.counterpath.com
  

WITHOUT PREJUDICE 

Personal, Private & Confidential 

Delivered by Email 

September 17, 2018 

Donovan Jones 
 

Dear Donovan: 

Re: Resignation of Employment

This letter will confirm the terms and conditions of Donovan
Jones’s (“Jones”) separation from his employment as President and Chief
Executive Officer of CounterPath Corporation and as an Officer and Director of
CounterPath Technologies Inc. and BridgePort Networks Inc. and any other
subsidiaries or affiliates (“CounterPath”) effective September 18, 2018
(the “Separation Date”), and CounterPath has accepted his
resignation.

The following terms have been agreed upon:

1.          
Resignation 

Jones will provide confirmation in writing of his resignation
as President and Chief Executive Officer of CounterPath Corporation by September
17, 2018, effective the Separation Date. In addition, Jones will provide
confirmation in writing of his resignation from his roles as Officer and
Director of any of CounterPath Corporation’s subsidiaries or affiliates by
September 17, 2018, effective the Separation Date, by completing and executing
the form attached as Schedule “A” to this document.

1

On the Separation Date, Jones will be paid the balance of any
outstanding wages. Any accrued and unused vacation up to the Separation Date
shall be forfeited. Jones’s Record of Employment will be provided shortly.

2.          
Salary Continuance 

CounterPath will pay Jones his regular base salary (not
including car allowance) less the normal statutory deductions (the “Salary
Continuance”) for twelve (12) months commencing on the first payroll
following September 18, 2018 until September 18, 2019, in accordance with
CounterPath’s regular pay schedule (the “Salary Continuance Period”). As
of September 18, 2019, all payments will cease and Jones will not be entitled to
any further compensation or payments of any type including vacation pay.

3.          
Benefits 

Jones’s group benefit coverage for MSP, healthcare, dental
care, life insurance, AD&D insurance, critical illness insurance and
disability benefits will end on the Separation Date. CounterPath will extend
Jones’s existing dental care and healthcare excluding out of country and global
medical assistance coverage (through Great Life) for twelve (12) months until
the end of the Salary Continuance Period on September 18, 2019. CounterPath will
also continue Jones’s MSP coverage until September 30, 2019. In the event Jones
secures replacement employment prior to September 30, 2019, Jones must notify
CounterPath and his remaining benefits will cease. 

Jones’s disability insurance policy #41223303 will end on the
Separation Date. To inquire about converting this and any of the other group
benefits to a personal plan beyond the Separation Date, Jones may contact
Benefit Insurance at 1-613-727-0424. 

4.          
Confidentiality and Non-Competition Agreement 

It is a condition of the acceptance of this Agreement that
Jones execute the attached Confidentiality/Non-Competition and Non-Solicitation
Agreement. For clarity, where there is any inconsistency between the attached
Confidentiality/Non-Competition and Non-Solicitation Agreement and the previous
Confidentiality and Non-Competition Agreement which Jones signed on June 1, 2005, the terms of the attached
Confidentiality/Non-Competition and Non-Solicitation Agreement will prevail.

2

It is a further condition of the acceptance of this Agreement
that Jones agree to abide by these obligations. For clarity, Jones cannot work
for or provide any services to any CounterPath competitors for 18 months
commencing on September 18, 2018. In the event that Jones breaches these
obligations, including by accepting employment from a competitor such as DialPad
Inc., Slack Technologies, or from a division within a company competing with
CounterPath, the Salary Continuance will immediately cease and CounterPath will
take immediate steps to enforce the Confidentiality/Non-Competition and
Non-Solicitation Agreement and this Agreement. For clarity, in the event that
Jones breaches any of these obligations during the Salary Continuance Period or
after the Salary Continuance Period ceases, CounterPath also reserves the right
to pursue any other rights or remedies it may have against Jones, including but
not limited to an injunction and an action for damages.

It is a further condition of the acceptance of this Agreement
that Jones keep the terms of this Agreement strictly confidential and that Jones
does not disclose any information with respect to this Agreement to anyone with
the exception of Jones’s spouse and his legal or financial advisors, unless
compelled to do so by law or court order.

5.          
Stock Options and Deferred Share Units: 

Jones has been granted stock options pursuant to CounterPath’s
2010 Stock Option Plan, of which 99,583 stock options will be deemed to be
vested on September 18, 2018, and can be exercised by Jones for up to and
including 90 days from the Separation Date. 

Jones has been granted deferred share units (DSUs) pursuant to
the Company’s 2010 Stock Option Plan, of which 137,706 DSUs will be deemed to be
vested on September 18, 2018, and shall be converted to common shares on the
distribution date(s) indicated by Jones on the attached Schedule “B”. Failure to
provide specified distribution dates shall result in the Company converting
vested DSUs on December 31, 2019. 

3

6.          
Business Expenses, Laptop and Smartphone 

All reasonable business expenses incurred by Jones up to and
including September 18, 2018 will be reimbursed to him upon providing
CounterPath with the appropriate forms and supporting original receipts. All
outstanding reasonable business expenses must be submitted by no later than
September 30, 2018. Jones may keep his CounterPath laptop and smartphone,
provided that CounterPath’s IT department has downloaded and saved company
files, and then deleted company files. 

7.          
Non-Disparagement 

It is a condition of the acceptance of this Agreement that
Jones does not make any disparaging remarks about CounterPath, its affiliates,
directors, officers, shareholders, employees, owners, clients, suppliers,
services or products to any person or do anything that would damage or interfere
with CounterPath’s relationships with any former, current, or prospective
directors, officers, employees, contractors, owners, clients, customers,
suppliers, or agents. 

CounterPath’s employees and officers who have knowledge
regarding the cessation of Jones’s employment with CounterPath will, to the
extent it is within their knowledge and control, refrain from making any
disparaging remarks about Jones.

8.          
Reference Letter 

CounterPath agrees to provide Jones with a positive written
reference letter, the language of which will be determined by CounterPath in its
sole discretion. CounterPath agrees to respond to any inquiries in reference to
Jones in a manner consistent with the language in the written reference
letter.

9.          
Mutual Release 

This Agreement is made in full and final satisfaction of any
and all claims that Jones may have as against CounterPath. Accordingly, it is a
condition of the acceptance of this Agreement that Jones confirm his acceptance
of this Agreement by providing CounterPath with a signed copy of this letter and
an executed copy of the attached full and final Release of all claims by the
close of business on September 18, 2018.

4

CounterPath will agree to release and discharge Jones from any
actions arising from Jones’s employment with CounterPath and the cessation of
Jones’s employment with CounterPath with the exceptions set out in the Mutual
Release.

Jones has been given the opportunity to seek legal advice with
respect to this Agreement. 

If there are any questions with respect to this letter, please
feel free to contact the writer. 

Yours truly, 

CounterPath Corporation 
CounterPath Technologies
Inc. 

Per:

/s/ Steven Bruk 

Steven Bruk, 

Director 

Jones has been given a copy of this letter. Jones has read,
understood and hereby accepts its terms and conditions. 

 

	Accepted 	/s/
      Donovan Jones 	 	September 17, 2018 
	  	Donovan Jones 	 	Date 
	  	 	 	 
	  	/s/
      Steven Bruk	 	September 17, 2018 
	  	CounterPath Corporation 	 	Date 

5

MUTUAL RELEASE 

Donovan Jones (“Jones”) for the consideration set
out in the attached letter dated September 17, 2018 and for other good and
valuable consideration, does forever release and forever discharge CounterPath
Corporation together with its affiliates, subsidiaries, directors, officers,
employees, agents, owners and shareholders (collectively “CounterPath”)
from any and all manners of actions, causes of actions, suits, contracts,
claims, complaints, damages, costs and expenses of any nature or kind whatsoever
known or unknown whether in law or in equity or pursuant to statute, which, as
against CounterPath, Jones has ever had or now has by reason of or arising out
of any cause, matter or thing whatsoever occurring or existing up to the date of
execution of this Release and without limiting the generality of the foregoing,
any matter, cause, or thing relating to or arising out of Jones’s employment
with CounterPath, his contract of employment with CounterPath, or the cessation
of Jones’s employment with CounterPath, and any other claim for damages, notice,
payment in lieu of notice, wrongful dismissal, severance pay, loss of benefits
including life and long-term and short-term disability, pension issues, bonus,
profit sharing, stock distribution, stock options or stock purchase rights,
overtime pay, vacation pay or any claims under the British Columbia
Employment Standards Act or Human Rights Code. 

CounterPath, in exchange for this Mutual Release and other good
and valuable consideration, does release and discharge Jones from any and all
matters of actions, causes of actions, suits, contracts, claims, complaints,
damages, cost and expenses known to CounterPath, which, as against Jones,
CounterPath has ever had or now has up to the date of this Mutual Release and
without limiting the generality of the forgoing, any matter, cause or thing
relating to or arising out of Jones’s employment with CounterPath, his contract
of employment with CounterPath or the cessation of Jones’s employment with
CounterPath. Notwithstanding the forgoing, CounterPath does not release Jones
from any and all manners of actions, causes of actions, suits, contracts,
claims, complaints, damages, costs and expenses arising out of any criminal
conduct by Jones, or any breaches of the obligations set out in section 4 of the
attached letter dated September 17, 2018. 

6

Jones covenants and undertakes that he will not file any
complaint for termination or severance pay, overtime or vacation pay or make any
other claim pursuant to the British Columbia 

Employment Standards Act. 

Jones acknowledges that he has received all payments and
amounts owing to him under the Employment Standards Act and that the
payments made to him herein are in full and final satisfaction of any further
entitlements he may have pursuant to the Employment Standards Act. 

Jones acknowledges that he has not been subjected to any form
of discrimination whatsoever and hereby represents and warrants that he has not
commenced any complaint and undertakes not to commence any complaint under the
British Columbia Human Rights Code or Workers Compensation Act.

This Release is binding upon and enures to the benefit of
Jones’s heirs, executors, administrators, assigns, committees and trustees. 

This Release is binding upon and enures to the benefit of
CounterPath’s affiliates, subsidiaries, directors, officers, employees, agents,
predecessors, successors, assigns, liquidators, receivers, receiver managers,
trustees, owners and shareholders. 

In the event withholdings have not been deducted which should
have been deducted, Jones shall indemnify and save harmless CounterPath from any
resulting liabilities, obligations, and costs regarding any claims which Canada
Revenue Agency or Employment Insurance Commission may have with respect to any
payments made to or on behalf of Jones. 

Jones and CounterPath acknowledge that the facts in respect of
which this Release is made may prove to be other than or different from the
facts in that connection now known or believed to be true. The parties accept
and assumes the risk of the facts being different and agrees that this Release
shall be in all respects enforceable and not subject to termination, rescission,
or variation by discovery of any differences in facts. 

Jones agrees to keep the terms of this settlement with
CounterPath and this Release strictly confidential and will not disclose any
information with respect to this settlement or this Release to anyone with the exception of Jones’ spouse and his legal or
financial advisors, unless compelled to do so by law or court order. 

7

The parties acknowledge that this Release has been executed
voluntarily after receiving legal advice. 

The Release is given voluntarily for the purposes of making a
full and final settlement of all of Jones’s and Counterpath’s claims against
each other other than the exceptions set out here in.

This Release and the related settlement is a compromise of a
disputed claim and is not to be construed or considered as an admission of
liability by CounterPath. 

8

The terms of the Release are contractual and not recitals. 

Dated at Vancouver , the 17th
day of September , 2018. 

	SIGNED by Donovan Jones in the 	) 	  
	presence of: 	) 	  
	  	) 	  
	  	) 	  
	/s/ Lauren Mainman
    	) 	/s/
      Donovan Jones 
	Witness (Name) 	) 	Donovan Jones 
	  	) 	  
	  	) 	  
	  	) 	  
	Address 	) 	  
	  	  	  
	  	  	  
	  	  	  
	SIGNED by CounterPath in the presence 	) 	  
	of: 	) 	  
	  	) 	  
	  	) 	  
	/s/ Lauren Mainman
    	) 	/s/
      Steven Bruk 
	Witness (Name) 	) 	CounterPath 
	  	) 	  
	  	) 	  
	  	) 	  
	Address 	) 	  

9

SCHEDULE A 

 

RESIGNATION OF DIRECTOR AND OFFICER 

 

	TO: 	CounterPath Corporation (the
      “Corporation”) 
	AND TO: 	CounterPath Technologies Inc.
      (the “Subsidiary”) 

Effective as of September 18, 2018, I hereby resign as: 

	(a) 	
      a director of the Corporation and the
  Subsidiary;

	 	 
	(b) 	
      as the Chief Executive Officer and President of the
      Corporation;

	 	 
	(c) 	
      as the Chief Executive Officer and President of the
      Subsidiary; and

	 	 
	(d) 	
      from all other officer and director positions of the
      Corporation, the Subsidiary and any of their respective
  affiliates.

	 	/s/
      Donovan Jones 
	 	DONOVAN JONES 

10

SCHEDULE B 

 

NON-U.S. TAXPAYER: FORM OF ELECTION 

FOR TIMING AND AMOUNT OF PAYMENT 

THIS ELECTION FORM MUST BE RETURNED TO THE CORPORATE SECRETARY
OF THE CORPORATION (AT THE FOLLOWING FAX NUMBER: (604) 320-3399 BY 5:00 P.M.
(PACIFIC TIME)) PRIOR TO THE SEPARATION DATE, WITH RESPECT TO THE FIRST
DISTRIBUTION DATE AND PRIOR TO THE FIRST DISTRIBUTION DATE, WITH RESPECT TO
THE SECOND DISTRIBUTION DATE.

I hereby irrevocably elect the following Distribution Date(s)
and Amounts. 

	First Distribution Date: 	Percentage of Deferred Share Units to 
	  	Distribute to me on the First Distribution 
	                   days
      (minimum of 90 days) following 	Date: 
	my Separation Date. 	  
	  	                     %
      (must be in increments of 5%) 
	  	Will be rounded up to the nearest unit. 
	 
    	  
	Second Distribution Date (optional): 	Remainder of Deferred Share Units will be 
	  	delivered to me on the Second Distribution 
	                   days
      (minimum of 90 days) following 	Date. 
	my Separation Date. 	  

Please note that regardless of the elections above, if
either Distribution Date falls on or after December 31 of the calendar year
following the year during which the Participant’s Separation Date occurs, then
the all amounts credited to a Participant’s account shall be automatically
distributed on the business day that immediately precedes such December 31. 

______________________________ 
Participant Signature

______________________________ 
Date

11

Confidentiality/Non-Competition and Non-Solicitation
Agreement 

THIS CONFIDENTIALITY/NON-COMPETITION AND NON-SOLICITATION
AGREEMENT (the “Agreement”) dated as of the 17th day of
September, 2018.

BETWEEN: 

CounterPath Corporation. 
Suite
300, 505 Burrard Street, Vancouver, BC V7X 1M3
(the “Company”)

AND: 

Donovan Jones having an address at

(“Jones”) 

WHEREAS:

	A. 	
      The Company and Jones have entered into a Separation
      Agreement, the terms of which are set out in a letter dated September 17,
      2018 (the “ Separation Agreement”);

	 	 
	B. 	
      Pursuant to the Separation Agreement, the Company
      provides to Jones a compensation payment and other benefits;

	 	 
	C. 	
      Jones and Xten Networks, Inc., a predecessor to the
      Company, previously entered into a Confidentiality and Non- Competition
      Agreement (The 2005 Agreement); and

	 	 
	D. 	
      As a condition of the Company entering into the
      Separation Agreement, Jones agrees to the restrictions set out in this
      Agreement.

NOW THEREFORE in consideration of the promises and mutual
covenants and agreements set out in this Agreement and for other good and
valuable consideration given by each party to the other, the receipt and
sufficiency of which is hereby acknowledged by each of the Parties hereto, the
Parties hereby agree as follows: 

	1. 	
      CONFIDENTIALITY

	 	 
	1.1. 	
      Non-Disclosure of Information of the
      Company: Jones acknowledges that by reason of his employment with
      the Company, Jones had access to the Confidential Information of the
      Company. Jones understands and acknowledges the importance of maintaining
      the security and confidentiality of the Confidential Information. Jones
      will not use or disclose the Confidential Information. Nothing in this
      Agreement will prevent Jones’s use or disclosure of information which is
      publicly available or which is required to be disclosed under applicable
      laws or legal process.

	 	 
	1.2. 	
      Confidential Information: For the purposes
      of this Agreement, “Confidential Information” means all information
      in any form, whether written, electronic, or oral, about or owned, used or
      licensed by the Company or its subsidiaries, parents, affiliates and
      related companies and other third parties, including without limitation
      information about their respective businesses and projects, business
      interests and opportunities, financial information, credit information and
      pricing information, compensation data, customer lists, customer
      preferences, marketing and communication strategies and plans, new
      products and services research, pending projects
and proposals, market research, research and development
      strategies, information relating to employees and independent contractors,
      assets, liabilities, software, scientific interests, customers, members,
      website users, suppliers and customers of their suppliers, and all other
      information that is treated by the Company or any of its subsidiaries,
      parents, affiliates and related companies as confidential information or a
      trade secret. Examples of Confidential Information includes, but is not
      limited to customer lists and information, employee information, and their
      salaries, strengths and weaknesses, purchasing and marketing methods and
      strategies. Confidential Information does not include information that is
      lawfully available to the public other than: (a) through Jones’s breach of
      this Agreement; or (b) the breach by any other person of any
      confidentiality obligations owed to the Company or any of its
  subsidiaries, parents, affiliates and related companies.

-1- 

	1.3. 	
      Return of Confidential Information and
      Property: Jones represents that on or before September 18, 2018 he
      will return to the Company or destroy all originals or copies of the
      Confidential Information and all paper and electronic documents and other
      records containing Confidential Information, and any other property
      belonging to, or relating to the business of, the Company or its
      subsidiaries, parents, affiliates and related companies.

	 	 
	2. 	
      RESTRICTED ACTIVITIES

	 	 
	2.1. 	
      Non-Solicitation: For a period of eighteen
      (18) months beginning on September 18, 2018, Jones will not, directly or
      indirectly:

	(a) 	
      contact or communicate with any Customer for the purpose
      of offering for sale any products or services that are the same as or
      similar to those offered by the Company;

	(b) 	
      solicit, divert, or take away from the Company the
      business of any Customer;

	(c) 	
      service, or otherwise enter into contractual relations
      with, any Customer of the Company for the purpose of offering for sale any
      products or services that are the same as or similar to those offered by
      the Company; or

	(d) 	
      solicit or encourage any employee or contractor of the
      Company to terminate their relationship with the Company, or assist any
      other person or entity to do so.

	2.2. 	
      Non-Competition: For a period of eighteen
      (18) months beginning on September 18, 2018, Jones will not, without the
      prior written agreement of the Company, directly or indirectly, engage in
      any Prohibited Business, whether as an employee, partner, principal,
      agent, consultant, shareholder, lender, guarantor or otherwise, in North
      America.

	 	 
	2.3. 	
      Definitions: For the purposes of this
      section:

	(a) 	
      “Customer” means any person to whom the Company
      provided products or services in the two years prior to September 18, 2018
      and whom Jones knew to be a customer of the Company;

	(b) 	
      “employee or contractor” means any person who had
      an employment or contractor relationship with the Company in the two years
      prior to September 18, 2018 and with whom Jones became acquainted as a
      result of his employment with the Company; and

	(c) 	
      “Prohibited Business” means the development of
      software or provision of services for unified communications including
      voice and video calling, instant messaging and
  collaboration.

-2- 

	3. 	
      TRADE SECRETS AND WORK PRODUCT

	 	 
	3.1 	
      Assignment:

	 	 
		
      Jones represents that Jones had intended and agreed that
      the Company would own all Developments, Trade Secrets and Confidential
      Information (each as defined in the 2005 Agreement and all other
      intellectual property, materials and work product created by Jones in the
      course of his employment by the Company and its predecessors (all of the
      foregoing being hereafter referred to collectively as “Work
      Product”), together with all copyright, patent rights and other
      intellectual property rights of any kind whatsoever throughout the world
      (“IP Rights”), from the time of creation, and that this Section 3.1
      is effective in respect of each item of Work Product as, at and from the
      date of its creation. Jones hereby irrevocably and unconditionally assigns
      and transfers to the Company all of Jones’s right, title and interest
      (including without limitation all IP Rights) throughout the world in, to
      and associated with the Work Product, free and clear of all liens,
      encumbrances, and interests of third parties, without any limitation of
      time and without any restriction whatsoever; and (b) waives in favour of
      the Company and its successors, assigns and licensees any and all
      non-transferable rights (including without limitation any and all moral
      rights and rights of authorship) Jones has throughout the world in, to or
      associated with any item of Work Product.

	 	 
	3.2 	
      Addition to the 2005 Agreement:

	 	 
		
      This section is in addition to, and not in submission for
      the provisions of the 2005 Agreement relating to Developments, Trade
      Secrets and Work Product, all of which continue to be binding on
    Jones.

	 	 
	4. 	
      GENERAL

	 	 
	4.1 	
      Assignment: The Company may assign this
      Agreement.

	 	 
	4.2 	
      Severability: Jones acknowledges that each
      provision of this Agreement is a separate and distinct covenant and if any
      covenant or provision herein is determined to be unreasonable, void,
      voidable or unenforceable, in whole or in part, by a court of competent
      jurisdiction, such determination will not affect or impair, and will not
      be deemed to affect or impair, the validity of any other covenant or
      provision hereof, and each covenant and provision herein is hereby
      declared to be separate, severable and distinct. It is the intent of the
      parties that if a court of competent jurisdiction adjudicating upon the
      validity of these covenants finds them to be unreasonable in any way,
      whether with respect to the scope of the restriction, the geographic area
      of the restriction, or the duration of the restriction, then such
      restriction shall be reduced to that which is deemed reasonable by such
      court.

	 	 
	4.3 	
      Governing Law: This Agreement and all
      related matters will be governed by, and construed in accordance with, the
      laws of British Columbia and the laws of Canada applicable in British
      Columbia.

	 	 
	4.4 	
      Other Duties: The restrictions contained in
      Section 1 and Section 2 of this Agreement are in addition to
      and do not derogate from any other duties and obligations (including
      fiduciary obligations) Jones owes to the Company under any applicable
      laws.

-3- 

	4.5 	
      Succession: This Agreement and everything
      herein contained will enure to the benefit of and be binding upon the
      Parties, and their respective legal representatives, executors,
      administrators, trustees, receivers, receiver-managers, successors and
      permitted assigns.

	 	 
	4.6 	
      Injunctive Relief: Jones acknowledges and
      agrees that a violation of any of the covenants contained in this
      Agreement will cause irreparable harm or damage to the Company, the exact
      amount of which would be impossible to ascertain, and for this reason,
      among others, the Company will be entitled to obtain injunctive relief
      restraining any further violations of such covenants, without the
      necessity of providing any undertaking as to damages or meeting any
      requirements for security. Jones hereby also acknowledges and agrees that,
      in the event of a violation of any of the covenants contained in this
      Agreement, an injunction is a reasonable and proper remedy. The right of
      the Company to any injunction or other equitable relief under this
      paragraph is in addition to, and not a limitation of, any other rights or
      remedies that the Company may have against Jones.

	 	 
	4.7 	
      Agreement Voluntary and Equitable: The
      parties acknowledge that they have carefully considered and understand the
      terms contained in this Agreement and acknowledge that they have each
      executed this Agreement voluntarily and of their own free will, after
      having the opportunity to obtain independent legal
  advice.

	CounterPath 	  	  
	Per: 	  	  
	  	  	  
	/s/ Steven Bruk
	  	  
	Authorized Signatory 	  	  
	  	  	  
	  	  	  
	SIGNED, SEALED AND DELIVERED by 	) 	  
	Donovan Jones in the presence of: 	) 	  
	  	) 	  
	/s/ Lauren Mainman
    	) 	/s/
      Donovan Jones 
	Witness 	) 	Donovan Jones 
	  	) 	  

-4-

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