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| HELIX BIOPHARMA      CORP.                                                                                                                                                 |  1 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|
|                                                                                                                                                                            |    |   |
| ARTICLE      1 INTERPRETATION                                                                                                                                              |  1 |   |
|                                                                                                                                                                            |    |   |
|     1.1          Defined Terms                                                                            |  1 |   |
|     1.2          Re-Election of      Directors                                                            |  3 |   |
|                                                                                                                                                                            |    |   |
| ARTICLE 2 STATEMENT OF      PURPOSE                                                                                                                                             |  3 |   |
|                                                                                                                                                                            |    |   |
|     2.1          Principal    Purposes                                                                    |  3 |   |
|     2.2          Benefit to      Shareholders                                                             |  3 |   |
|                                                                                                                                                                            |    |   |
| ARTICLE 3      ADMINISTRATION                                                                                                                                              |  3 |   |
|                                                                                                                                                                            |    |   |
|     3.1          Board or    Committee                                                                    |  3 |   |
|     3.2          Appointment of      Committee                                                            |  3 |   |
|     3.3          Quorum andVoting                                                                         |  3 |   |
|     3.4          Powers of    Committee                                                                   |  3 |   |
|     3.5          Obtain Regulatory      Approvals                                                         |  4 |   |
|     3.6          Administration by      Committee                                                         |  4 |   |
|                                                                                                                                                                            |    |   |
| ARTICLE 4 SHARES SUBJECT TO THE      PLAN                                                                                                                                       |  4 |   |
|                                                                                                                                                                            |    |   |
|     4.1          Number of Shares                                                                         |  4 |   |
|     4.2          10% Limitation on      Insiders                                                          |  5 |   |
|     4.3          5% Limitation                                                                            |  5 |   |
|     4.4          Reloading                                                                                |  5 |   |
|     4.5          Reservation of      Shares                                                               |  5 |   |
|                                                                                                                                                                            |    |   |
| ARTICLE 5 EXERCISE OF      OPTION                                                                                                                                               |  5 |   |
|                                                                                                                                                                            |    |   |
|     5.1          Method of    Exercise                                                                    |  5 |   |
|     5.2          Payment of Option      Price                                                             |  5 |   |
|     5.3          Issuance of Stock      Certificate                                                       |  5 |   |
|                                                                                                                                                                            |    |   |
| ARTICLE 6 TERM AND      TRANSFERABILITY OF OPTIONS                                                                                                                              |  6 |   |
|                                                                                                                                                                            |    |   |
|     6.1          Non-Transferable                                                                    |  6 |   |
|     6.2          Term                                                                                |  6 |   |
|                                                                                                                                                                            |    |   |
| ARTICLE 7 TERMINATION OF      OPTIONS                                                                                                                                           |  6 |   |
|                                                                                                                                                                            |    |   |
|     7.1          Termination of      Options                                                              |  6 |   |
|     7.2          Exercise of Options by Legal      Heirs and Representatives, and Continuation of Vesting |  6 |   |
|     7.3          Deemed Non-Interruption of      Employment                                               |  7 |   |
|     7.4          Blackout Period                                                                          |  7 |   |
|                                                                                                                                                                            |    |   |
| ARTICLE 8 SUSPENSION, AMENDMENT      OR TERMINATION                                                                                                                             |  7 |   |
|                                                                                                                                                                            |    |   |
|     8.1          Authority of Committee to      Suspend, Amend or Terminate Plan or Option Agreement      |  7 |   |
|     8.2          Shareholder Approval      Required                                                  |  7 |   |
|     8.3          Vote of Insider      Excluded                                                            |  7 |   |
|     8.4          No Grant During Suspension of      Plan                                                  |  7 |   |
|                                                                                                                                                                            |    |   |
| ARTICLE 9      ADJUSTMENT                                                                                                                                                       |  7 |   |
|                                                                                                                                                                            |    |   |
|     9.1          Adjustments                                                                              |  8 |   |
|     9.2          Stock Dividends                                                                          |  8 |   |
|     9.3          Mergers, Stock Splits, Stock      Consolidations, etc.                                   |  8 |   |
|     9.4          Other      Alterations                                                              |  8 |   |
|     9.5          Adjustment of Option      Price                                                          |  8 |   |
|     9.6          Other    Distributions                                                                   |  8 |   |
|                                                                                                                                                                            |    |   |
|                                                                                                                                                                            |    |   |

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|                                                                                                                                        |     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|----------|--------|
|                                                                                                                                        |     |   |
|     9.7          No Fractional    Shares                              |  8  |   |
|     9.8          Pre-Clearance by      Exchange                  |  9  |   |
|     9.9          Acceleration of Vesting      Schedule                |  9  |   |
|     9.10        Determinations to be Made By      Committee                     |  9  |   |
|                                                                                                                                        |     |   |
| ARTICLE 10 CONDITIONS PRECEDENT      TO ISSUANCE OF SHARES                                                                                  |  9  |   |
|                                                                                                                                        |     |   |
|     10.1          Compliance with    Laws                             |  9  |   |
|     10.2          Regulatory Approval to Issuance      of Shares      |  9  |   |
|                                                                                                                                        |     |   |
| ARTICLE 11      MISCELLANEOUS                                                                                                               |  9  |   |
|                                                                                                                                        |     |   |
|     11.1          Notices                                             |  9  |   |
|     11.2          Use of Proceeds                                     |  9  |   |
|     11.3          No Obligation to      Exercise                      |  9  |   |
|     11.4          No Obligation to Retain      Optionee               |  9  |   |
|     11.5          BindingAgreement                                    |  10 |   |
|     11.6          Use of    Terms                                |  10 |   |
|     11.7          Headings                                       |  10 |   |
|                                                                                                                                        |     |   |
| ARTICLE      12 DIRECTOR AND SHAREHOLDER APPROVALS                                                                                     |  10 |   |
|                                                                                                                                        |     |   |
|     12.1          Shareholder Approval to      Plan                   |  10 |   |
|     12.2          Adoption of      Plan                          |  10 |   |
|     12.3          Periodic Approval of Unallocated      Options  |  10 |   |
|                                                                                                                                        |     |   |
|                                                                                                                                        |     |   |

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| 1.1 | Defined      Terms  |
|-----|--------------------------|

| (a)   | a      Person (other than the current Control Person of the Company, if any)      becomes a Control Person, or |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (b)   | a      majority of the directors elected at any annual or extraordinary general      meeting of shareholders of the Company are not individuals nominated by      the Company’s then-incumbent Board; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | a      sufficient number of any of the securities of the Company so as to affect      materially the control of the Company,or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (b)   | more      than 20% of the outstanding voting securities of the Company except where      there is evidence showing that the holding of those securities does not      affect materially the control of theCompany; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | is      engaged to provide services to the Company or an affiliate of the Company,      other than services provided in relation to a distribution (as that term      is used in the Act); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | provides      the services under a written contract with the Company or an affiliate of      the Company; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

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

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|   | (a) | while      the Shares are listed for trading on The Toronto Stock Exchange, the      closing price of the Shares on the trading day immediately prior to the      Date of Grant on The Toronto StockExchange; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | while      the Shares are not listed for trading on The Toronto Stock Exchange but      are listed for trading on another stock exchange or over-the-counter      market, the closing price of the Shares on the trading day immediately      prior to the Date of Grant on such stock exchange or over-the-counter      market as may be selected for such purpose by the Committee, and in the      case of such closing price being denominated in a currency other than the      currency in which the Option Price is denominated, such closing price      shall be converted to the currency in which the Option Price is      denominated based on the noon rate of exchange for such currency published      by the Bank of Canada for the day on which the closing price is      determined; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | while      the Shares are not listed for trading on any stock exchange or      over-the-counter market, the value which is determined by the Committee to      be the fair value of the Shares at the Date of Grant, taking into      consideration all factors that the Committee deems appropriate, including,      without limitation, recent sale and offer prices of the Shares in private      transactions negotiated at arm’slength; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.2 | Re-Election      of Directors |
|-----|-------------------------------|

| 2.1 | Principal      Purposes  |
|-----|-------------------------------|

| 2.2 | Benefit      to Shareholders |
|-----|------------------------------|

| 3.1 | Board      or Committee |
|-----|-------------------------|

| 3.2 | Appointment      of Committee |
|-----|-------------------------------|

| 3.3 | Quorum      and Voting |
|-----|------------------------|

| 3.4 | Powers      of Committee |
|-----|--------------------------|

|   | (a) | administer      the Plan in accordance with its expressterms; |
|--------|-----|---------------------------------------------------------------|

|   | (b) | determine      all questions arising in connection with the administration,      interpretation, and application of the Plan, including all questions      relating to the value of theShares; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | correct      any defect, supply any information, or reconcile any inconsistency in the      Plan in such manner and to such extent as shall be deemed necessary or      advisable to carry out the purposes of thePlan; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | prescribe,      amend, and rescind rules and regulations relating to the administration of      the Plan; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (e) | determine      the duration and purposes of leaves of absence from employment which may      be granted to Optionees without constituting a termination of employment      for purposes of the Plan; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | grant      Options from time to time under this Plan to Eligible Persons, and in      doing so, make the followingdeterminations: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Eligible Persons to whom Options shall be  granted; |
|--------|-----|--------------------------------------------------------------|

|   | (ii) | the      terms and provisions of the Option Agreement to be entered into with any      Optionee (which need not be identical with the terms of any other Option      Agreement); |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | when      Options shall be granted; |
|--------|-------|-------------------------------------|

|   | (iv) | the      number of Shares subject to purchase pursuant to an  Option; |
|--------|------|-----------------------------------------------------------------------|

|   | (v) | subject      to Section 7.4, the Term, provided that the Term shall in no event be more      than ten years following the Date ofGrant; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | the      Option Price, provided that the Option Price shall not be less than the      Fair Market Value of the Shares; |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | any      vesting schedule upon which the exercise of an Option is      contingent; |
|--------|-------|------------------------------------------------------------------------------------|

|   | (viii) | such      other terms and conditions as the Committee deems advisable and are      consistent with the purposes of this Plan;and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | all      other determinations necessary or advisable for administration of the      Plan; |
|--------|------|-------------------------------------------------------------------------------------------|

|   | (g) | subject      to ARTICLE 8, amend the terms and provisions of Option      Agreements. |
|--------|-----|--------------------------------------------------------------------------------------|

| 3.5 | Obtain      Regulatory Approvals |
|-----|----------------------------------|

| 3.6 | Administration      by Committee |
|-----|----------------------------------|

| 4.1 | Number      of Shares |
|-----|-----------------------|

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| 4.2 | 10%      Limitation on Insiders |
|-----|---------------------------------|

|   | (a) | the      number of Shares issuable to insiders, at any time, under this Plan and      all other security based compensation arrangements of the Company, cannot      exceed 10% of the Company’s issued and outstanding Shares;    and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      number of Shares issued to insiders, within any one year period, under      this Plan and all other security-based compensation arrangements of the      Company, cannot exceed 10% of the Company’s issued and outstanding      Shares. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | 5%      Limitation |
|-----|--------------------|

|   | (a) | the      number of Shares issuable to any one Person, at any time, under this Plan      and all other security based compensation arrangements of the Company,      cannot exceed 5% of the Company’s issued and outstanding Shares;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      number of Shares issued to any one Person, within any one year period,      under this Plan and all other security based compensation arrangements of      the Company, cannot exceed 5% of the Company’s issued and outstanding      Shares. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Reloading |
|-----|-----------|

| 4.5 | Reservation      of Shares |
|-----|----------------------------|

| 5.1 | Method      of Exercise |
|-----|-------------------------|

| 5.2 | Payment      of Option Price |
|-----|------------------------------|

| 5.3 | Issuance      of Stock Certificate |
|-----|------------------------------------|

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| 6.1 | Non-Transferable |
|-----|------------------|

| 6.2 | Term |
|-----|------|

|   | (a) | the      date on which such Option is exercised in respect of all Shares that may      be purchased thereunder; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (b) | subject      to Section 7.4, the expiry date of such Option as determined by the      Committee which in no event may exceed ten years from the date of the      original grant of the Option. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1 | Termination      of Options |
|-----|-----------------------------|

|   | (a) | Subject      to Section 7.4, the expiry date specified for such Option in the Option      Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (b) | where      the Optionee’s position as an Eligible Person is removed or terminated for      just cause, and the Optionee has no continuing business relationship with      the Company or an affiliate of the Company as an Eligible Person in any      other capacity, the date of such termination for just    cause; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | where      the Optionee’s position as an Eligible Person terminates due to the death      or Disability of the Optionee, one year following such      termination; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | where      the Optionee’s position as an Eligible Person terminates for a reason      other than the Optionee’s Disability, death, or termination for just cause      (termination for such other reason being hereinafter referred to as a      “Voluntary Termination”), and the Optionee has no continuing business      relationship with the Company or an affiliate of the Company as an      Eligible Person in any othercapacity: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | where      the Optionee held the position of a director of the Company or an      affiliate of the Company, one year after the date of Voluntary      Termination; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | where      the Optionee held any other position with the Company or an affiliate of      the Company, such period of time after the date of Voluntary Termination,      which shall be not less than 30 days nor more than one year, as is      determined by the Compensation Committee at the time the option is      granted, subject to extension by the Compensation Committee in its sole      discretion, at any time during the duration of the Option, up to but not      beyond one year following the date of Voluntary    Termination. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Exercise      of Options by Legal Heirs and Representatives, and Continuation of      Vesting |
|-----|-----------------------------------------------------------------------------------------------|

----

| 7.3 | Deemed      Non-Interruption ofEmployment |
|-----|-------------------------------------------|

| 7.4 | Blackout      Period |
|-----|----------------------|

| 8.1 | Authority      of Committee to Suspend, Amend or Terminate Plan or Option      Agreement |
|-----|------------------------------------------------------------------------------------------|

|   | (a) | make      changes of a clerical nature or changes to clarify the meaning of existing      provisions; |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (b) | change      the vesting provisions of anOption; |
|--------|-----|-------------------------------------------------|

|   | (c) | reflect      any requirements of applicable regulatory bodies or stock      exchanges; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (d) | extend      the term of an Option held by an Eligible Person who is not an      insider; |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (e) | reduce      the Option Price of an Option held by an Eligible Person who is not an      insider, but in no event shall an Option Price be reduced below Fair      Market Value; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | change      the categories of Persons who are Eligible  Persons. |
|--------|-----|------------------------------------------------------------------|

| 8.2 | Shareholder      Approval Required |
|-----|------------------------------------|

|   | (a) | increase      the number of Shares which may be issued pursuant to any Option granted      under this Plan (subject to any necessary adjustment pursuant to ARTICLE 9      hereof); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | reduce      the Option Price of any Option granted under this Plan then held by an      insider (subject to any necessary adjustment pursuant to ARTICLE 9      hereof); or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | extend      the term of any Option granted under this Plan then held by an      insider. |
|--------|-----|------------------------------------------------------------------------------------------|

| 8.3 | Vote      of Insider Excluded |
|-----|-------------------------------|

| 8.4 | No      Grant During Suspension ofPlan |
|-----|----------------------------------------|

----

| 9.1 | Adjustments |
|-----|-------------|

| 9.2 | Stock      Dividends |
|-----|----------------------|

| 9.3 | Mergers,      Stock Splits, Stock Consolidations,etc. |
|-----|-------------------------------------------------------|

| 9.4 | Other      Alterations |
|-----|------------------------|

| 9.5 | Adjustment      of Option Price |
|-----|---------------------------------|

| 9.6 | Other      Distributions |
|-----|--------------------------|

| 9.7 | No      Fractional Shares |
|-----|---------------------------|

----

| 9.8 | Pre-Clearance      by Exchange |
|-----|--------------------------------|

| 9.9 | Acceleration      of Vesting Schedule |
|-----|---------------------------------------|

| 9.10 | Determinations      to be Made By Committee |
|------|---------------------------------------------|

| 10.1 | Compliance      with Laws |
|------|---------------------------|

| 10.2 | Regulatory      Approval to Issuance ofShares |
|------|-----------------------------------------------|

| 11.1 | Notices |
|------|---------|

| 11.2 | Use      of Proceeds |
|------|----------------------|

| 11.3 | No      Obligation to Exercise |
|------|--------------------------------|

| 11.4 | No      Obligation to RetainOptionee |
|------|--------------------------------------|

----

| 11.5 | Binding      Agreement |
|------|------------------------|

| 11.6 | Use      of Terms |
|------|-------------------|

| 11.7 | Headings |
|------|----------|

| 12.1 | Shareholder      Approval to Plan |
|------|-----------------------------------|

| 12.2 | Adoption      of Plan |
|------|-----------------------|

| 12.3 | Periodic      Approval of UnallocatedOptions |
|------|----------------------------------------------|

|   | (a) | a      majority of the Company’s directors and a majority of the Company’s      independent directors; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      required by a stock exchange on which the Shares are then listed, the      Company’s shareholders. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|