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**CALEDONIA MINING CORPORATION**

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**2015 OMNIBUS EQUITY INCENTIVE COMPENSATION PLAN**

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**TABLE OF CONTENTS**

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**Page**

| ARTICLE 1 ESTABLISHMENT, PURPOSE AND DURATION           | 1  |
|---------------------------------------------------------|----|
| 1.1 Establishment of the Plan                           | 1  |
| 1.2 Purpose of the Plan                                 | 1  |
| 1.3 Duration of the Plan                                | 1  |
| 1.4 Successor Plan                                      | 1  |
| ARTICLE 2 DEFINITIONS                                   | 1  |
| ARTICLE 3 ADMINISTRATION                                | 8  |
| 3.1 General                                             | 8  |
| 3.2 Authority of the Committee                          | 8  |
| 3.3 Delegation                                          | 8  |
| ARTICLE 4 SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS | 9  |
| 4.1 Number of Shares Available for Awards               | 9  |
| 4.2 Adjustments in Authorized Shares                    | 9  |
| ARTICLE 5 ELIGIBILITY AND PARTICIPATION                 | 10 |
| 5.1 Eligibility                                         | 10 |
| 5.2 Actual Participation                                | 10 |
| ARTICLE 6 STOCK OPTIONS                                 | 10 |
| 6.1 Grant of Options                                    | 10 |
| 6.2 Award Agreement                                     | 10 |
| 6.3 Option Price                                        | 11 |
| 6.4 Duration of Options                                 | 11 |
| 6.5 Exercise of Options                                 | 11 |
| 6.6 Payment                                             | 11 |
| 6.7 Restrictions on Share Transferability               | 11 |
| 6.8 Death, Retirement and Termination of Employment     | 12 |
| 6.9 Nontransferability of Options                       | 13 |
| ARTICLE 7 SHARE APPRECIATION RIGHTS                     | 14 |
| 7.1 Grant of SARs                                       | 14 |
| 7.2 SAR Agreement                                       | 14 |
| 7.3 Term of SAR                                         | 14 |

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| 7.4 Exercise of Freestanding SARs                                           | 14 |
|-----------------------------------------------------------------------------|----|
| 7.5 Exercise of Tandem SARs                                                 | 14 |
| 7.6 Payment of SAR Amount                                                   | 14 |
| 7.7 Termination of Employment                                               | 15 |
| 7.8 Nontransferability of SARs                                              | 15 |
| 7.9 Other Restrictions                                                      | 15 |
| ARTICLE 8 RESTRICTED SHARE AND RESTRICTED SHARE UNITS                       | 15 |
| 8.1 Grant of Restricted Shares or Restricted Share Units                    | 15 |
| 8.2 Restricted Share or Restricted Share Unit Agreement                     | 15 |
| 8.3 Nontransferability of Restricted Share and Restricted Share Units       | 15 |
| 8.4 Other Restrictions                                                      | 16 |
| 8.5 Certificate Legend                                                      | 16 |
| 8.6 Voting Rights                                                           | 16 |
| 8.7 Dividends and Other Distributions                                       | 17 |
| 8.8 Death, Retirement and other Termination of Employment                   | 17 |
| 8.9 Payment in Settlement of Restricted Share Units                         | 19 |
| ARTICLE 9 DEFERRED SHARES UNITS                                             | 20 |
| 9.1 Grant of Deferred Share Units                                           | 20 |
| 9.2 Deferred Share Unit Agreement                                           | 20 |
| 9.3 Nontransferability of Deferred Share Units                              | 20 |
| 9.4 Termination of Employment                                               | 20 |
| ARTICLE 10 PERFORMANCE SHARES AND PERFORMANCE UNITS                         | 20 |
| 10.1 Grant of Performance Shares and Performance Units                      | 20 |
| 10.2 Value of Performance Shares and Performance Units                      | 20 |
| 10.3 Earning of Performance Shares and Performance Units                    | 20 |
| 10.4 Form and Timing of Payment of Performance Shares and Performance Units | 20 |
| 10.5 Dividends and Other Distributions                                      | 20 |
| 10.6 Death and other Termination of Employment.                             | 20 |
| 10.7 Nontransferability of Performance Shares and Performance Units         | 22 |
| ARTICLE 11 FULL VALUE SHARE-BASED AWARDS                                    | 23 |
| 11.1 Share-Based Awards                                                     | 23 |
| 11.2 Termination of Employment                                              | 23 |
| 11.3 Nontransferability of Share-Based Awards                               | 23 |
| ARTICLE 12 BENEFICIARY DESIGNATION                                          | 23 |
| 12.1 Beneficiary                                                            | 23 |
| 12.2 Discretion of the Committee                                            | 24 |
| ARTICLE 13 RIGHTS OF PERSONS ELIGIBLE TO PARTICIPATE                        | 24 |

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| 13.1 Employment                                                                 | 24 |
|---------------------------------------------------------------------------------|----|
| 13.2 Participation                                                              | 24 |
| 13.3 Rights as a Shareholder                                                    | 24 |
| ARTICLE 14 CHANGE OF CONTROL                                                    | 24 |
| 14.1 Accelerated Vesting and Payment                                            | 24 |
| 14.2 Alternative Awards                                                         | 25 |
| ARTICLE 15 AMENDMENT, MODIFICATION, SUSPENSION AND TERMINATION                  | 25 |
| 15.1 Amendment, Modification, Suspension and Termination                        | 25 |
| 15.2 Adjustment of Awards Upon the Occurrence of Unusual or Nonrecurring Events | 26 |
| 15.3 Awards Previously Granted                                                  | 27 |
| ARTICLE 16 WITHHOLDING                                                          | 27 |
| 16.1 Withholding                                                                | 27 |
| 16.2 Acknowledgement                                                            | 27 |
| ARTICLE 17 SUCCESSORS                                                           | 27 |
| ARTICLE 18 GENERAL PROVISIONS                                                   | 27 |
| 18.1 Forfeiture Events                                                          | 27 |
| 18.2 Legend                                                                     | 28 |
| 18.3 Delivery of Title                                                          | 28 |
| 18.4 Investment Representations                                                 | 28 |
| 18.5 Uncertificated Shares                                                      | 28 |
| 18.6 Unfunded Plan                                                              | 28 |
| 18.7 No Fractional Shares                                                       | 29 |
| 18.8 Other Compensation and Benefit Plans                                       | 29 |
| 18.9 No Constraint on Corporate Action                                          | 29 |
| 18.10 Compliance with Canadian Securities Laws                                  | 29 |
| ARTICLE 19 LEGAL CONSTRUCTION                                                   | 29 |
| 19.1 Gender and Number                                                          | 29 |
| 19.2 Severability                                                               | 29 |
| 19.3 Requirements of Law                                                        | 29 |
| 19.4 Governing Law                                                              | 30 |
| 19.5 Compliance with Section 409A of the Code                                   | 30 |
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**CALEDONIA MINING CORPORATION**

**2015 OMNIBUS EQUITY INCENTIVE COMPENSATION PLAN**

**ARTICLE 1ESTABLISHMENT, PURPOSE AND DURATION**

**1.1 Establishment of the Plan.  Caledonia Mining Corporation, a Canadian federal corporation (the "Company"), hereby establishes an incentive compensation plan to be known as the 2015 Omnibus Equity Incentive Compensation Plan (the "Plan").  The Plan permits the grant of Stock Options, Share Appreciation Rights, Restricted Shares, Restricted Share Units, Deferred Stock Units, Performance Shares, Performance Units and Share-Based Awards.  The Plan shall be adopted and become effective on the date approved by the Board (the "Effective Date"), provided that no Awards may be exercised, paid or settled until the Plan has been approved by the shareholders of the Company and the Toronto Stock Exchange.**

**1.2 Purpose of the Plan.  The purposes of the Plan are: (i) to promote a significant alignment between officers and employees of the Company and its Affiliates (as defined below) and the growth objectives of the Company; (ii) to associate a portion of participating employees' compensation with the performance of the Company over the long term; and (iii) to attract, motivate and retain the critical employees to drive the business success of the Company.**

**1.3 Duration of the Plan.  The Plan shall commence as of the Effective Date, as described in Section 1.1 herein, and shall remain in effect until terminated by the Board (as defined below) pursuant to Article 15 hereof.**

**1.4 Successor Plan.  This Plan shall in respect of Options (as defined below) serve as the successor to the Company's current Incentive Stock Option Plan dated April 10, 2007 (the "Predecessor Plan"), and no further awards shall be made under the Predecessor Plan from and after the Effective Date of this Plan.  Each Option granted under the Predecessor Plan shall continue to be governed solely by the terms and conditions of the instrument evidencing such grant.**

**ARTICLE 2DEFINITIONS**

**"Affiliate" means any corporation, partnership or other entity (i) in which the Company, directly or indirectly, has majority ownership interest or (ii) which the Company controls.  For the purposes of this definition, the Company is deemed to "control" such corporation, partnership or other entity if the Company possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such corporation, partnership or other entity, whether through the ownership of voting securities, by contract or otherwise, and includes a corporation which is considered to be a subsidiary for purposes of consolidation under International Financial Reporting Standards.**

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**"Award" means, individually or collectively, a grant under this Plan of Options, SARs, Restricted Shares, Restricted Share Units, Performance Shares, Performance Units or Share‐Based Awards, in each case subject to the terms of this Plan.**

**"Award Agreement" means either (i) a written agreement entered into by the Company or an Affiliate of the Company and a Participant setting forth the terms and provisions applicable to Awards granted under this Plan; or (ii) a written statement issued by the Company or an Affiliate of the Company to a Participant describing the terms and provisions of such Award.  All Award Agreements shall be deemed to incorporate the provisions of the Plan.  An Award Agreement need not be identical to other Award Agreements either in form or substance.**

**"Beneficial Ownership" shall have the meaning ascribed to such term in Section 90 of the OSA.**

**"Blackout Period" means a period of time during which the Participant cannot sell Shares, due to applicable law or policies of the Company in respect of insider trading.**

**"Board" or "Board of Directors" means the Board of Directors of the Company.**

**"Cause" means any of:**

|  | (a) | dishonesty of the Participant as it relates to the performance of his duties in the course of his employment by, or as an officer or director of, the Company or an Affiliate; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | fraud committed by the Participant; |
|--|-----|-------------------------------------|

|  | (c) | willful disclosure of confidential or private information regarding the Company or an Affiliate by the Participant; |
|--|-----|---------------------------------------------------------------------------------------------------------------------|

|  | (d) | the Participant aiding a competitor of the Company or an Affiliate; |
|--|-----|---------------------------------------------------------------------|

|  | (e) | misappropriation of a business opportunity of the Company or an Affiliate by the Participant; |
|--|-----|-----------------------------------------------------------------------------------------------|

|  | (f) | willful misconduct or gross negligence in the performance of the Participant's duties under his or her employment agreement; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | a breach by the Participant of a material provision of his or her employment agreement or the Code of Business Conduct and Ethics adopted by the Company from time to time; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | the willful and continued failure on the part of the Participant to substantially perform duties in the course of his employment by, or as an officer of, the Company or an Affiliate, unless such failure results from an incapacity due to mental or physical illness; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | willfully engaging in conduct that is demonstrably and materially injurious to the Company or an Affiliate, monetarily or otherwise; or |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

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|  | (j) | any other act or omission by the Participant which would amount to just cause for termination at common law. |
|--|-----|--------------------------------------------------------------------------------------------------------------|

**"Change of Control" shall occur if any of the following events occur:**

|  | (a) | the acquisition, directly or indirectly and by any means whatsoever, by any person, or by a group of persons acting jointly or in concert, of beneficial ownership or control or direction over that number of Voting Securities which is greater than 50% of the total issued and outstanding Voting Securities immediately after such acquisition, unless such acquisition arose as a result of or pursuant to: |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | an acquisition or redemption by the Company of Voting Securities which, by reducing the number of Voting Securities outstanding, increases the proportionate number of Voting Securities beneficially owned by such person to 50% or more of the Voting Securities then outstanding; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | acquisitions of Voting Securities which were made pursuant to a dividend reinvestment plan of the Company; |
|--|------|------------------------------------------------------------------------------------------------------------|

|  | (iii) | the receipt or exercise of rights issued by the Company to all the holders of Voting Securities to subscribe for or purchase Voting Securities or securities convertible into Voting Securities, provided that such rights are acquired directly from the Company and not from any other person; |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | a distribution by the Company of Voting Securities or securities convertible into Voting Securities for cash consideration made pursuant to a public offering or by way of a private placement by the Company ("Exempt Acquisitions"); |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | a stock-dividend, a stock split or other event pursuant to which such person receives or acquires Voting Securities or securities convertible into Voting Securities on the same pro rata basis as all other holders of securities of the same class ("Pro-Rata Acquisitions"); or |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | the exercise of securities convertible into Voting Securities received by such person pursuant to an Exempt Acquisition or a Pro-Rata Acquisition ("Convertible Security Acquisitions"); |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | (b) | the replacement by way of election or appointment at any time of one-half or more of the total number of the then incumbent members of the Board of Directors, unless such election or appointment is approved by 50% or more of the Board of Directors in office immediately preceding such election or appointment in circumstances where such election or appointment is to be made other than as a result of a dissident public proxy solicitation, whether actual or threatened; and |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | any transaction or series of transactions, whether by way of reorganization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise, whereby all or substantially all of the shares or assets of the Company become the property of any other person (the "Successor Entity"), (other than a subsidiary of the Company) unless: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | individuals who were holders of Voting Securities immediately prior to such transaction hold, as a result of such transaction, in the aggregate, more than 50% of the voting securities of the Successor Entity; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | a majority of the members of the board of directors of the Successor Entity is comprised of individuals who were members of the Board of Directors immediately prior to such transaction; and |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | after such transaction, no person or group of persons acting jointly or in concert, holds more than 50% of the voting securities of the Successor Entity unless such person or group of persons held securities of the Company in the same proportion prior to such transaction. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**"Change of Control Price" means (i) the highest price per Share offered in conjunction with any transaction resulting in a Change of Control (as determined in good faith by the Committee if any part of the offered price is payable other than in cash), or (ii) in the case of a Change of Control occurring solely by reason of a change in the composition of the Board, the highest Fair Market Value of the Shares on any of the thirty (30) trading days immediately preceding the date on which a Change of Control occurs, except if the relevant participant is subject to taxation under the ITA such Change of Control price shall be deemed to be a price determined by the Committee based on the closing price of a Share on the TSX on the trading day preceding the Change of Control date or based on the volume weighted average trading price of the Shares on the TSX for the five trading days immediately preceding the Change of Control date.**

**"Code" means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any successor thereto.**

**"Committee" means the Board of Directors or if so delegated in whole or in part by the Board, the Compensation Committee of the Board of Directors, or any other duly authorized committee of the Board appointed by the Board to administer the Plan or.**

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**"Company" means Caledonia Mining Corporation, a Canadian federal corporation, and any successor thereto as provided in Article 17 herein.**

**"Consultant" means a Person that:**

|  | (i) | is engaged to provide services to the Company or an Affiliate other than services provided in relation to a distribution of securities of the Company or an Affiliate; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | provides the services under a written contract with the Company or an Affiliate; and |
|--|------|--------------------------------------------------------------------------------------|

|  | (iii) | spends or will spend a significant amount of time and attention on the affairs and business of the Company or an Affiliate; |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------|

**provided that with respect to Consultants who are U.S. Persons, such Consultants shall be granted Awards under this Plan only if:**

|  | (i) | they are natural persons; |
|--|-----|---------------------------|

|  | (ii) | they provide bona fide services to the Company or its majority-owned subsidiaries; and |
|--|------|----------------------------------------------------------------------------------------|

|  | (iii) | such services are not in connection with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the Company's securities. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**"Deferred Share Unit" means an Award denominated in units that provides the holder thereof with a right to receive Shares or cash or a combination thereof upon settlement of the Award, granted under Article 9 herein and subject to the terms of this Plan.**

**"Director" means any individual who is a member of the Board of Directors of the Company.**

**"Disability" means the Participant's inability to substantially fulfil his or her duties on behalf of the Company or an Affiliate for a continuous period of six (6) months or more or the Participant's inability to substantially fulfil his or her duties on behalf of the Company or an Affiliate for an aggregate period of six (6) months or more during any consecutive twelve (12) month period; and if there is any disagreement between the Company or an Affiliate and the Participant as to the Participant's Disability or as to the date any such Disability began or ended, the same shall be determined by a physician mutually acceptable to the Company and the Participant whose determination shall be conclusive evidence of any such Disability and of the date any such Disability began or ended.**

**"Dividend Equivalent" means a right with respect to an Award to receive cash, Shares or other property equal in value and form to dividends declared by the Board and paid with respect to outstanding Shares.  Dividend Equivalents shall not apply to an Award unless specifically provided for in the Award Agreement, and if specifically provided for in the Award Agreement shall be subject to such terms and conditions set forth in the Award Agreement as the Committee shall determine.**

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**"Employee" means any employee of the Company or an Affiliate.  Directors who are not otherwise employed by the Company or an Affiliate shall not be considered Employees under this Plan.**

**"Fair Market Value" or "FMV" means, unless otherwise required by any applicable provision of the Code or any regulations thereunder or by any applicable accounting standard for the Company's desired accounting for Awards or by the rules of the TSX, a price that is determined by the Committee, provided that such price cannot be less than the greater of (i) the volume weighted average trading price of the Shares on the TSX for the five trading days immediately prior to the grant date or (ii) the closing price of the Shares on the TSX on the trading day immediately prior to the grant date.**

**"Fiscal Year" means the Company's fiscal year commencing on January 1 and ending on December 31 or such other fiscal year as approved by the Board.**

**"Freestanding SAR" means a SAR that is not a Tandem SAR, as described in Article 7 herein.**

**"Grant Price" means the price against which the amount payable is determined upon exercise of a SAR.**

**"Insider" shall have the meaning ascribed thereto in Section 1(1) of the OSA.**

**"ITA" means the Income Tax Act (Canada).**

**"Non-Employee Director" means a Director who is not an Employee.**

**"Notice Period" means any period of contractual notice or reasonable notice that the Company or the Affiliate may be required at law, by contract or otherwise agrees to provide to a Participant upon termination of employment, whether or not the Company or Affiliate elects to pay severance in lieu of providing notice to the Participant, provided that where a Participant's employment contract provides for an increased severance or termination payment in the event of termination following a Change of Control, the Notice Period for the purposes of the Plan shall be the Notice Period under such contract applicable to a termination which does not follow a Change of Control.**

**"Option" means the conditional right to purchase Shares at a stated Option Price for a specified period of time subject to the terms of this Plan.**

**"Option Price" means the price at which a Share may be purchased by a Participant pursuant to an Option, as determined by the Committee.**

**"OSA" means the Securities Act (Ontario), as may be amended from time to time.**

**"Participant" means an Employee, Non-Employee Director or Consultant who has been selected to receive an Award, or who has an outstanding Award granted under the Plan.**

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**"Performance-Based Compensation" means compensation under an Award that is granted in order to provide remuneration solely on account of the attainment of one or more Performance Goals under circumstances that satisfy the requirements of Section 162(m) of the Code.**

**"Performance Goal" means a performance criterion selected by the Committee for a given Award.**

**"Performance Period" means the period of time during which the assigned performance criteria must be met in order to determine the degree of payout and/or vesting with respect to an Award.**

**"Performance Share" means an Award granted under Article 10 herein and subject to the terms of this Plan, denominated in Shares, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria have been achieved.**

**"Performance Unit" means an Award granted under Article 10 herein and subject to the terms of this Plan, denominated in units, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria have been achieved.**

**"Period of Restriction" means the period when an Award of Restricted Share or Restricted Share Units is subject to forfeiture based on the passage of time, the achievement of performance criteria, and/or upon the occurrence of other events as determined by the Committee, in its discretion.**

**"Person" shall have the meaning ascribed to such term in Section 1(1) of the OSA.**

**"Restricted Share" means an Award of Shares subject to a Period of Restriction, granted under Article 8 herein and subject to the terms of this Plan.**

**"Restricted Share Unit" means an Award denominated in units subject to a Period of Restriction, with a right to receive Shares or cash or a combination thereof upon settlement of the Award, granted under Article 8 herein and subject to the terms of this Plan.**

**"Retirement" or "Retire" means a Participant's permanent withdrawal from employment or office with the Company or Affiliate on terms and conditions accepted and determined by the Board.**

**"Shares" means common shares of the Company.**

**"Share Appreciation Right" or "SAR" means the conditional right to receive the difference between the FMV of a Share on the date of exercise over the Grant Price, pursuant to the terms of Article 7 herein and subject to the terms of this Plan.**

**"Share-Based Award" means an equity-based or equity-related Award granted under Article 11 herein and subject to the terms of this Plan, and not otherwise described by the terms of this Plan.**

**"Successor Entity" has the meaning ascribed thereto under subsection (c) of the definition of Change of Control.**

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**"Tandem SAR" means a SAR that the Committee specifies is granted in connection with a related Option pursuant to Article 7 herein and subject to the terms of this Plan, the exercise of which shall require forfeiture of the right to purchase a Share under the related Option (and when a Share is purchased under the Option, the Tandem SAR shall similarly be cancelled) or a SAR that is granted in tandem with an Option but the exercise of such Option does not cancel the SAR, but rather results in the exercise of the related SAR.  Regardless of whether an Option is granted coincident with a SAR, a SAR is not a Tandem SAR unless so specified by the Committee at the time of grant.**

**"Total Share Authorization" has the meaning ascribed thereto under Section 4.1.**

**"TSX" means the Toronto Stock Exchange and at any time the Shares are not listed and posted for trading on the TSX, shall be deemed to mean such other stock exchange or trading platform upon which the Shares trade and which has been designated by the Committee.**

**"Voting Power" shall mean such number of Voting Securities as shall enable the holders thereof to cast all the votes which could be cast in an annual election of directors of a company.**

**"Voting Securities" shall mean any securities of the Company ordinarily carrying the right to vote at elections of directors and any securities immediately convertible into or exchangeable for such securities.**

**ARTICLE 3ADMINISTRATION**

**3.1 General.  The Committee shall be responsible for administering the Plan.  The Committee may employ attorneys, consultants, accountants, agents and other individuals, any of whom may be an Employee, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons.  All actions taken and all interpretations and determinations made by the Committee shall be final, conclusive and binding upon the Participants, the Company, and all other interested parties.**

**3.2 Authority of the Committee.  The Committee shall have full and exclusive discretionary power to interpret the terms and the intent of the Plan and any Award Agreement or other agreement ancillary to or in connection with the Plan, to determine eligibility for Awards, and to adopt such rules, regulations and guidelines for administering the Plan as the Committee may deem necessary or proper.  Such authority shall include, but not be limited to, selecting Award recipients, establishing all Award terms and conditions, including grant, exercise price, issue price and vesting terms, determining Performance Goals applicable to Awards and whether such Performance Goals have been achieved, and, subject to Article 15, adopting modifications and amendments, or subplans to the Plan or any Award Agreement, including, without limitation, any that are necessary or appropriate to comply with the laws or compensation practices of the jurisdictions in which the Company and Affiliates operate.**

**3.3 Delegation.  The Committee may delegate to one or more of its members any of the Committee's administrative duties or powers as it may deem advisable; provided, however, that any such delegation must be permitted under applicable corporate law.**

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**ARTICLE 4SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS**

**4.1 Number of Shares Available for Awards.  Subject to adjustment as provided in Section 4.2 herein, the number of Shares hereby reserved for issuance to Participants under the Plan, together with Shares reserved for issue under any other share compensation arrangements of the Company, shall not exceed the number which represents 10% of the issued and outstanding Shares from time to time (the "Total Share Authorization").  Subject to applicable law, the requirements of the TSX and any shareholder or other approval which may be required, the Board may in its discretion amend the Plan to increase such limit without notice to any Participants.**

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**ARTICLE 5ELIGIBILITY AND PARTICIPATION**

**ARTICLE 6STOCK OPTIONS**

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|   | (a) | Death:  If a Participant dies while an Employee, Director of, or Consultant to, the Company or an Affiliate: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|  | (i) | the executor or administrator of the Participant's estate may exercise Options of the Participant equal to the number of Options that were exercisable at the Termination Date (as defined at Section 6.8(d) below); |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the right to exercise such Options terminates on the earlier of: (i) the date that is 12 months after the Termination Date; and (ii) the date on which the exercise period of the particular Option expires.  Any Options held by the Participant that are not yet vested at the Termination Date immediately expire and are cancelled and forfeited to the Company on the Termination Date; and |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | such Participant's eligibility to receive further grants of Options under the Plan ceases as of the Termination Date. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------|

|  | (b) | Retirement: If a Participant voluntarily Retires then: |
|--|-----|--------------------------------------------------------|

|  | (i) | any Options held by the Participant that are exercisable at the Termination Date continue to be exercisable by the Participant until the earlier of: (i) the date that is six months after the Termination Date; and (ii) the date on which the exercise period of the particular Option expires.  Any Options held by the Participant that are not yet vested at the Termination Date immediately expire and are cancelled and forfeited to the Company on the Termination Date, |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the eligibility of a Participant to receive further grants under the Plan ceases as of the date that the Company or an Affiliate, as the case may be, provides the Participant with written notification that the Participant's employment or term of office or engagement, is terminated, notwithstanding that such date may be prior to the Termination Date, and |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | notwithstanding (b)(i) and (ii) above, unless the Committee, in its sole discretion, otherwise determines, at any time and from time to time, Options are not affected by a change of employment arrangement within or among the Company or an Affiliate for so long as the Participant continues to be an employee of the Company or an Affiliate. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Termination of Employment:  Where a Participant's employment or term of office or engagement terminates (for any reason other than death or voluntary Retirement (whether such termination occurs with or without any or adequate notice or reasonable notice, or with or without any or adequate compensation in lieu of such notice)), then: |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (i) | any Options held by the Participant that are exercisable at the Termination Date continue to be exercisable by the Participant until the earlier of: (i) the date that is three months after the Termination Date; and (ii) the date on which the exercise period of the particular Option expires.  Any Options held by the Participant that are not yet vested at the Termination Date immediately expire and are cancelled and forfeited to the Company on the Termination Date, |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the eligibility of a Participant to receive further grants under the Plan ceases as of the date that the Company or an Affiliate, as the case may be, provides the Participant with written notification that the Participant's employment or term of office or engagement, is terminated, notwithstanding that such date may be prior to the Termination Date, and |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | notwithstanding (c)(i) and (ii) above, unless the Committee, in its sole discretion, otherwise determines, at any time and from time to time, Options are not affected by a change of employment arrangement within or among the Company or an Affiliate for so long as the Participant continues to be an employee of the Company or an Affiliate. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | For purposes of section 6.8, the term, "Termination Date" means, in the case of a Participant whose employment or term of office or engagement with the Company or an Affiliate terminates: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | by reason of the Participant's death, the date of death; |
|--|-----|----------------------------------------------------------|

|  | (ii) | for any reason whatsoever other than death, the date of the Participant's last day actively at work for or actively engaged by the Company or the Affiliate, as the case may be; and for greater certainty "Termination Date" in any such case specifically does not mean the date on which any period of contractual notice or reasonable notice that the Company or the Affiliate, as the case may be, may be required at law to provide to a Participant would expire; and |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | the resignation of a director shall be considered to be a Retirement whereas the expiry of a director's term on the Board without re-election (or nomination for election) shall be considered to be a termination of his or her term of office. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ARTICLE 7SHARE APPRECIATION RIGHTS**

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**ARTICLE 8RESTRICTED SHARE AND RESTRICTED SHARE UNITS**

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----

|  | (a) | Death:  If a Participant dies while an Employee, Director of, or Consultant to, the Company or an Affiliate: |
|--|-----|-------------------------------------------------------------------------------------------------------------------|

|  | (i) | any Restricted Share or Restricted Share Units held by the Participant that have not vested as at the Termination Date (as defined at Section 8.8(e) below) shall vest immediately; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | any Restricted Shares and Restricted Share Units held by the Participant that have vested (including Restricted Shares and Restricted Share Units vested in accordance with Section 8.8(a)(i)) as at the Termination Date (as defined at Section 8.8(e) below), shall be paid to the Participant's estate in accordance with the terms of the Plan and Award Agreement; and |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | such Participant's eligibility to receive further grants of Restricted Share Units or Restricted Shares under the Plan ceases as of the Termination Date. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Disability:  If a Participant suffers a Disability while an Employee, Director of, or Consultant to, the Company or an Affiliate and, as a result, his or her employment or engagement with the Company or an Affiliate is terminated: |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | the number of Restricted Shares or Restricted Share Units held by the Participant and that have not vested (collectively referred to in this Section 8.8 as the "Unvested Awards") shall be reduced to be equal to the product of (A) the number of Unvested Awards; and (B) the fraction obtained when dividing (x) the number of calendar days from the date of the award of the Unvested Awards to the Termination Date (as defined at Section 8.8(e) below) and (x) the number of calendar days from the date of the award of the Unvested Awards to the original vesting date set out in the Award Agreement; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the number of Unvested Awards, as calculated pursuant to Section 8.8(b)(i), shall continue to vest in accordance with the terms of the Plan and Award Agreement; and |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (iii) | such Participant's eligibility to receive further grants of Restricted Share Units or Restricted Shares under the Plan ceases as of the Termination Date. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Retirement: If a Participant voluntarily Retires then: |
|--|-----|--------------------------------------------------------|

|  | (i) | any Restricted Share Units held by the Participant that have vested before the Termination Date (as defined at Section 8.8(e) below) shall be paid to the Participant; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | any Unvested Awards held by the Participant at the Termination Date (as defined at Section 8.8(e) below) shall continue to vest in accordance with the terms of the Plan and Award Agreement following the Termination Date (as defined at Section 8.8(e) below) until the earlier of: (i) the date determined by the Committee, in its sole discretion; and (ii) the date on which the Restricted Share Units vest pursuant to the original Award Agreement in respect of such Unvested Awards; and |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | such Participant's eligibility to receive further grants of Restricted Share Units or Restricted Shares under the Plan ceases as of the Termination Date. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | Termination other than Death, Disability or Retirement: Unless determined otherwise by the Committee, where a Participant's employment or term of office or engagement terminates for any reason other than death, Disability or Retirement (whether such termination occurs with or without any or adequate notice or reasonable notice, or with or without any or adequate compensation in lieu of such notice), then: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | any Restricted Share Units held by the Participant that have vested before the Termination Date (as defined at Section 8.8(e) below) shall be paid to the Participant. Any Restricted Share Units or Restricted Shares held by the Participant that are not yet vested at the Termination Date (as defined at Section 8.8(e) below) will be immediately cancelled and forfeited to the Company on the Termination Date; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the eligibility of a Participant to receive further grants under the Plan ceases as of the date that the Company or an Affiliate provides the Participant with written notification that the Participant's employment or term of office or engagement, is terminated, notwithstanding that such date may be prior to the Termination Date; and |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | notwithstanding Sections 8.8(d)(i) and (ii) above, unless the Committee, in its sole discretion, otherwise determines, at any time and from time to time, Restricted Share Units and Restricted Shares are not affected by a change of employment arrangement within or among the Company or an Affiliate for so long as the Participant continues to be an employee of the Company or an Affiliate. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (e) | For purposes of section 8.8, the term, "Termination Date" means, in the case of a Participant whose employment or term of office or engagement with the Company or an Affiliate terminates: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | by reason of the Participant's death, the date of death; |
|--|-----|----------------------------------------------------------|

|  | (ii) | by reason of termination for Cause, resignation by the Participant or Retirement, the Participant's last day actively at work for or actively engaged by the Company or an Affiliate; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | by reason of Disability, the date of the Participant's last day actively at work for or actively engaged by the Company or an Affiliate; |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | for any reason whatsoever other than death, termination for Cause, Retirement or termination by reason of Disability, the later of the (A) date of the Participant's last day actively at work for or actively engaged by the Company or the Affiliate, and (B) the last date of the Notice Period; and |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | the resignation of a director and the expiry of a director's term on the Board without re-election (or nomination for election) shall each be considered to be a termination of his or her term of office. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | Change of Control:  The occurrence of a Change of Control will not result in the vesting of Unvested Awards, provided that: (i) such Unvested Awards will continue to vest in accordance with the Plan and Award Agreement; and (ii) any Successor Entity agrees to assume the obligations of the Company in respect of such Unvested Awards. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | Termination Following a Change of Control:  Where a Participant's employment or term of office or engagement is terminated for any reason, other than for Cause, during the 24 months following a Change in Control, any Unvested Awards as at the date of such termination shall be deemed to have vested as at the date of such termination and shall become payable as at the date of termination. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ARTICLE 9DEFERRED SHARES UNITS**

**ARTICLE 10PERFORMANCE SHARES AND PERFORMANCE UNITS**

|  | (a) | Death: If a Participant dies while an Employee, Director of, or Consultant to, the Company or an Affiliate: |
|--|-----|-------------------------------------------------------------------------------------------------------------|

|  | (i) | the number of Performance Shares or Performance Share Units held by the Participant that have not vested (collectively referred to in this Section 10.6 as "Unvested Awards") shall be adjusted as set out in the applicable Award Agreement (collectively referred to in this Section 10.6 as "Deemed Awards"); |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | any Deemed Awards shall vest immediately; |
|--|------|-------------------------------------------|

|  | (iii) | any Performance Shares and Performance Shares Units held by the Participant that have vested (including Deemed Awards vested in accordance with Section 10.6(a)(ii) shall be paid to the Participant's estate in accordance with the terms of the Plan and Award Agreement; and |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | such Participant's eligibility to receive further grants of Performance Shares or Performance Share Units under the Plan ceases as of the Termination Date (as defined at Section 10.6(e) below). |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | Disability:  If a Participant suffers a Disability while an Employee, officer or director of or Consultant to the Company or an Affiliate and as a result his or her employment with the company or Affiliate is terminated: |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | Unvested Awards shall be reduced to be equal to the product of (A) the number of Unvested Awards; and (B) the fraction obtained when dividing (x) the number of calendar days from the date of the award of the Unvested Awards to the Termination Date (as defined at Section 10.6(e) below) and (x) the number of calendar days from the date of the award of the Unvested Awards to the original vesting date set out in the Award Agreement; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the number of Unvested Awards, as calculated pursuant to Section 10.6(b)(i), shall continue to vest in accordance with the terms of its Plan and Award Agreement; and |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | such Participant's eligibility to receive further grants of Performance Share Units or Performance Shares under the Plan ceases as of the Termination Date. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Retirement: If a Participant voluntarily Retires then: |
|--|-----|--------------------------------------------------------|

|  | (i) | any Performance Shares or Performance Share Units held by the Participant that have vested before the Termination Date shall be paid to the Participant; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | any Unvested Awards held by the Participant at the Termination Date (as defined at Section 10.6(e) below) shall continue to vest in accordance with the terms of the Plan and Award Agreement following the Termination Date until the earlier of: (i) the date determined by the Committee, in its sole discretion; and (ii) the date on which the Performance Share Units vest pursuant to the original Award Agreement in respect of such Unvested Awards; and |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | such Participant's eligibility to receive further grants of Performance Shares or Performance Share Units under the Plan ceases as of the Termination Date. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | Termination other than Death, Disability or Retirement: Unless determined otherwise by the Committee, where a Participant's employment or term of office or engagement terminates for any reason other than death (whether such termination occurs with or without any or adequate notice or reasonable notice, or with or without any or adequate compensation in lieu of such notice), then: |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | any Performance Share Units or Performance Shares held by the Participant that have vested before the Termination Date shall be paid to the Participant in accordance with the terms of the Plan and Award Agreement. Any Performance Shares Units or Performance Shares held by the Participant that are not yet vested at the Termination Date will be immediately cancelled and forfeited to the Company on the Termination Date; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (ii) | the eligibility of a Participant to receive further grants under the Plan ceases as of the date that the Company or an Affiliate provides the Participant with written notification that the Participant's employment or term of office or engagement, is terminated, notwithstanding that such date may be prior to the Termination Date; and |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | notwithstanding Sections 10.6(c)(i) and (ii) above, unless the Committee, in its sole discretion, otherwise determines, at any time and from time to time, Performance Share Units or Performance Shares are not affected by a change of employment arrangement within or among the Company or an Affiliate for so long as the Participant continues to be an employee of the Company or an Affiliate. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | For purposes of this Section 10.6, the term, "Termination Date" has the meaning set out in Section 8.8(e). |
|--|-----|------------------------------------------------------------------------------------------------------------|

|  | (f) | Change of Control:  The occurrence of a Change of Control will not result in the vesting of Unvested Awards, provided that: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | such Unvested Awards will continue to vest in accordance with the Plan and the Award Agreement; |
|--|-----|-------------------------------------------------------------------------------------------------|

|  | (ii) | the level of achievement of Performance Goals for Fiscal Years completed prior to the date of the Change of Control shall be based on the actual performance achieved to the date of the Change of Control and the level of achievement of Performance Goals for Fiscal Years completed following the date of the Change of Control shall be based on the assumed achievement of 100% of the Performance Goals; and |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | any Successor Entity agrees to assume the obligations of the Company in respect of such Unvested Awards. |
|--|-------|----------------------------------------------------------------------------------------------------------|

|  | (g) | Termination following Change of Control:  For the period of 24 months following a Change of Control, where a Participant's employment or term of office or engagement is terminated for any reason, other than for Cause: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | any Unvested Awards as at the date of such termination shall be deemed to have vested as at the date of such termination and shall become payable as at the date of termination; and |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the level of achievement of Performance Goals for any Unvested Awards that are deemed to have vested pursuant to (i) above, shall be based on the actual performance achieved at the end of the Fiscal Year immediately prior to the date of termination. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ARTICLE 11FULL VALUE SHARE-BASED AWARDS**

**ARTICLE 12BENEFICIARY DESIGNATION**

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**ARTICLE 13RIGHTS OF PERSONS ELIGIBLE TO PARTICIPATE**

**ARTICLE 14CHANGE OF CONTROL**

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|  | (a) | be based on stock which is traded on the TSX and/or an established securities market in London, England or the United States; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | provide such Participant with rights and entitlements substantially equivalent to or better than the rights, terms and conditions applicable under such Award, including, but not limited to, an identical or better exercise or vesting schedule (including vesting upon termination of employment) and identical or better timing and methods of payment; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | recognize, for the purpose of vesting provisions, the time that the Award has been held prior to the Change of Control; and |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------|

|  | (d) | have substantially equivalent economic value to such Award (determined prior to the time of the Change of Control). |
|--|-----|---------------------------------------------------------------------------------------------------------------------|

**ARTICLE 15AMENDMENT, MODIFICATION, SUSPENSION AND TERMINATION**

|  | (a) | Except as set out in clauses (b) and (c) below, and as otherwise provided by law, or stock exchange rules, the Committee or Board may, at any time and from time to time, alter, amend, modify, suspend or terminate the Plan or any Award in whole or in part without notice to, or approval from, shareholders, including, but not limited to for the purposes of: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | making any amendments to the general vesting provisions of any Award; |
|--|-----|-----------------------------------------------------------------------|

|  | (ii) | making any amendments to the general term of any Award provided that no Award held by an Insider may be extended beyond its original expiry date; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (iii) | making any amendments to add covenants or obligations of the Company for the protection of Participants; |
|--|-------|----------------------------------------------------------------------------------------------------------|

|  | (iv) | making any amendments not inconsistent with the Plan as may be necessary or desirable with respect to matters or questions which, in the good faith opinion of the Board, it may be expedient to make, including amendments that are desirable as a result of changes in law or as a "housekeeping" matter; or |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | making such changes or corrections which are required for the purpose of curing or correcting any ambiguity or defect or inconsistent provision or clerical omission or mistake or manifest error. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Other than as expressly provided in an Award Agreement or as set out herein with respect to a Change of Control, the Committee shall not alter or impair any rights or increase any obligations with respect to an Award previously granted under the Plan without the consent of the Participant. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | The following amendments to the Plan shall require the prior approval of the Company's shareholders: |
|--|-----|------------------------------------------------------------------------------------------------------|

|  | (i) | A reduction in the Option Price of a previously granted Option or the Grant Price of a previously granted SAR benefitting an Insider of the Company or one of its Affiliates except for adjustments to the Option Price or Grant Price applicable to outstanding Awards pursuant to Section 4.2 hereof. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | Any amendment or modification which would increase the total number of Shares available for issuance under the Plan. |
|--|------|----------------------------------------------------------------------------------------------------------------------|

|  | (iii) | An increase to the limit on the number of Shares issued or issuable under the Plan to Insiders of the Company; |
|--|-------|----------------------------------------------------------------------------------------------------------------|

|  | (iv) | An extension of the expiry date of an Option or SAR, other than as otherwise permitted hereunder in relation to a Blackout Period or otherwise; or |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | Any amendment to the amendment provisions of the Plan under this Section 15.1. |
|--|-----|-------------------------------------------------------------------------------------|

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**ARTICLE 16WITHHOLDING**

**ARTICLE 17SUCCESSORS**

**ARTICLE 18GENERAL PROVISIONS**

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|  | (a) | Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and |
|--|-----|----------------------------------------------------------------------------------------------------------------|

|  | (b) | Completion of any registration or other qualification of the Shares under any applicable law or ruling of any governmental body that the Company determines to be necessary or advisable. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ARTICLE 19LEGAL CONSTRUCTION**

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|  | (a) | To the extent the Plan is applicable to a particular Participant subject to the Code, it is intended that this Plan and any Awards made hereunder shall not provide for the payment of "deferred compensation" within the meaning of Section 409A of the Code or shall be structured in a manner and have such terms and conditions that would not cause such a Participant to be subject to taxes and interest pursuant to Section 409A of the Code.  This Plan and any Awards made hereunder shall be administrated and interpreted in a manner consistent with this intent. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | To the extent that any amount or benefit in favour of a Participant who is subject to the Code would constitute "deferred compensation" for purposes of Section 409A of the Code would otherwise be payable or distributable under this Plan or any Award Agreement by reason of the occurrence of a Change of Control or the Participant's disability or separation from service, such amount or benefit will not be payable or distributable to the Participant by reason of such circumstance unless: (i) the circumstances giving rise to such Change of Control, disability or separation from service meet the description or definition of "change in control event," "disability," or "separation from service," as the case may be, in Section 409A of the Code and applicable proposed or final Treasury regulations thereunder, and (ii) the payment or distribution of such amount or benefit would otherwise comply with Section 409A of the Code and not subject the Participant to taxes and interest pursuant to Section 409A of the Code.  This provision does not prohibit the vesting of any Award or the vesting of any right to eventual payment or distribution of any amount or benefit under this Plan or any Award Agreement. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | The Committee shall use its reasonable discretion to determine the extent to which the provisions of this Article 19.5 will apply to a Participant who is subject to taxation under the ITA. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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