Exhibit 10.70






Exhibit 10.70




NUCRYST
PHARMACEUTICALS CORP.


DIRECTOR STOCK OPTION AWARD AGREEMENT



GRANT of Options made effective as of (the “Grant Date”)





	TO: 	 	(the “Participant” or “Director”)
	 
	BY: 	 	NUCRYST Pharmaceuticals Corp. (the “Company”)





     WHEREAS, on December 21, 2005, the Board of Directors of the Company (the “Board”) approved
and adopted the Company’s 1998 Equity Incentive Plan (as amended) (the “Plan”) and the Plan was
subsequently approved by the Toronto Stock Exchange; and



     WHEREAS, pursuant to the Plan, awards of Options may be granted to persons including members
of the Board; and



     WHEREAS, by resolution of the Board made on                               , the Board
granted the Options provided for herein to the Director in connection with the Director’s services
to the Company, such grant to be effective the Grant Date and subject to the terms set forth
herein;



     NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
hereto agree as follows:




	1.	 	Equity Incentive Plan




The grant by the Company to the Participant of Options by this Agreement is made pursuant to the
terms and conditions of the Plan. This Agreement and the terms and conditions of the grant of
Options are subject in all respects to the terms and conditions of the Plan, which is made a part
of this Agreement. The Participant, by acceptance of this Agreement, agrees to be bound by the
Plan (and any regulations that may be established under the Plan) and acknowledges receipt of a
copy of the Plan and this Agreement. Terms that are defined in the Plan and not otherwise defined
in this Agreement shall have the same meaning when used in this Agreement as in the Plan.





	2.	 	Grant of Options




The Company grants to the Participant, effective the Grant Date, 2,000 options (defined in the Plan
and this Agreement as “Options” or individually as an “Option”) to purchase Common Shares of the
Company (which Common Shares, when purchased by the exercise of Options, are defined as “Optioned
Shares”), subject to the terms and conditions of this Agreement and the Plan. The grant of Options
herein is intended to be a grant of non-qualified stock options and shall not be treated or
construed as a grant of an “incentive stock option” as that term is used in Code Section 422, or
any successor provision thereof.





	3.	 	Option Price




The exercise price of each Option (which is defined in the Plan as the “Option Price”) is $.





	4.	 	Expiry Date




Unless earlier terminated in accordance with the terms of the Plan or this Agreement, the Options
shall terminate on, and may not be exercised in whole or in part, after 5:00 p.m. (Edmonton,
Alberta, Canada time) on                      (the “Expiry Date”); provide, however, that
where the Expiry Date of the Options occurs during a Blackout Period or within ten Non Blackout
Trading Days following the end of a Blackout Period, the Expiry Date shall be the date which is ten
Non-Blackout Trading Days following the end of such Blackout Period.




 









 









	5.	 	Vesting




Unless otherwise set forth in this Agreement, the Options shall vest and shall become exercisable:





	 	(a)	 	as to 1/3 of the shares on the first anniversary of the Grant Date until the
Expiry Date;






	 	(b)	 	as to 1/3 of the shares on the second anniversary of the Grant Date until the
Expiry Date; and






	 	(c)	 	as to 1/3 of the shares on the third anniversary of the Grant Date until the
Expiry Date.






	6.	 	Accelerated Vesting




Notwithstanding the vesting provisions contained section 5, in the event that a Change of Control
of the Company or an Elimination of the Public Float occurs prior to the Expiry Date, the Options
shall immediately become fully vested and exercisable as to all the Optioned Shares.



Whenever used in this Agreement, the following terms shall have the meanings set forth below:





	 	(a)	 	“Change of Control of the Company” means the occurrence of a transaction or
series of transactions, either alone or in combination with any other events or
transactions, as a result of which:






	 	(i)	 	any Person (other than the Director or any of his Associates
or Westaim) acquires or becomes the beneficial owner of, or a combination of
Persons (not including the Director or any of his Associates or Westaim)
acting jointly or in concert acquires or becomes the beneficial owner of,
directly or indirectly, more than 50% of the voting securities of the Company,
whether through the acquisition of previously issued and outstanding voting
securities, or of voting securities that have not been previously issued, or
any combination thereof, or any other transaction having a similar effect;






	 	(ii)	 	the shareholders of the Company approve: (1) any plan or
proposal for the liquidation or dissolution of the Company; or (2) the sale,
lease, exchange, disposition or other transfer of all or substantially all of
the assets of the Company;






	 	(iii)	 	50% or more of the issued and outstanding voting securities
of the Company become subject to a voting trust in which neither the Director
nor any of his Associates nor Westaim participates;






	 	(iv)	 	a majority of the directors of the Company are removed from
office at any annual or special meeting of shareholders, or a majority of the
directors of the Company (calculated not including the Director) resign form
office over a period of 60 days or less, unless the vacancies created thereby
are either (1) filled by appointments made by the remaining members of the
Board of Directors of the Company, (2) are filled by nominees proposed by the
Board of Directors, the Director or any of his Associates or Westaim, or (3)
the Board of Directors of the Company determines not to fill the vacancies in
connection with a reduction in the size of the Board of Directors of the
Company approved by a majority of directors of the Company then in officer;






	 	(v)	 	any Person (other than the Director or any of his Associates
or Westaim) makes a bona fide take-over bid (as defined in the Securities Act
(Ontario) from time to time in effect) for the Common Shares, whether made by
way of a take-over bid circular or tender offer as required under any
applicable legislation, or by way of stock exchange take-over bid. Any such
event is referred to herein as a “Take-over Bid”; or




 









 








	 	(vi)	 	a consolidation, share exchange or merger of the Company
occurs: (1) in which the shareholders of the Company immediately prior to such
transaction do not own at more than 50% of the voting securities of the entity
which survives/results from that transaction; or (2) in which a shareholder of
the Company who does not own more than 50% of the voting securities of the
Company immediately prior to such transaction, owns more than 50% of the
Company’s voting securities immediately after such transaction.






	 	(b)	 	“Elimination of Public Float” means the occurrence of a transaction or series
of transactions, either alone or in combination with any other events, as a result of
which: (1) Westaim acquires or becomes the beneficial owner of, directly or
indirectly, 100% of the publicly-traded voting securities of the Company; or (2) the
voting securities of the Company cease to be publicly-traded on a stock exchange or in
the over-the-counter market.






	 	(c)	 	“Person” means any individual, partnership, limited partnership, joint
venture, syndicate, sole proprietorship, company or corporation with or without share
capital, unincorporated association, trust, trustee, executor, administrator or other
legal personal representative, regulatory body or agency, government or governmental
agency, authority or entity however designated or constituted.






	 	(d)	 	“Associate” has the meaning attributed to such term in the Business
Corporations Act (Alberta) as the same may be amended from time to time and any
successor legislation thereto.






	 	(e)	 	“Westaim” means The Westaim Corporation and its Subsidiaries.






	7.	 	Restoration of Status Quo in the Event of an Uncompleted Take-over Bid




In the event that a Take-over Bid is made and:





	 	(a)	 	as a result, pursuant to section 6 the Options have become exercisable in
respect of certain of the Optioned Shares earlier than otherwise would be the case
under section 5; and






	 	(b)	 	thereafter the Take-over Bid is not completed and as a result no Change of
Control of the Company, within the meaning of section 6(a)(i), (ii) or (iii), occurs;




then the Company and the Director will forthwith negotiate in good faith and thereafter will
forthwith take such steps, enter into such agreements, make such payments, issue or convey such
securities, and seek such regulatory approvals as may be necessary and desirable to restore each of
the Company and the Director as nearly as possible to what would have been the situation had the
Take-over Bid not occurred, no options had become exercisable, nor any cash payment made as a
result of the Take-over Bid. It is the intent of the parties to re-establish as closely as
possible their respective economic positions as they existed prior to the making of the Take-over
Bid, while making allowance for taxation, regulatory and other irreversible events which may have
intervened since the making of the Take-over Bid.





	8.	 	Termination




If the Participant ceases to serve as a Director before the Expiry Date, then the vesting of all
Options shall stop immediately upon the Termination Date, and any Options that have vested as at
the Termination Date shall remain in force and can be exercised by the Participant in accordance
with the following provisions:





	 	(a)	 	If the Termination Date shall occur for any reason whatsoever other than
death or Disability, then the Participant will have 30 days after the Termination Date
or until the Expiry Date (whichever is earlier) to exercise all or any portion of such
vested Options.






	 	(b)	 	If the Termination Date shall occur by reason of death or Disability, then
the Participant (or his personal legal representative) may, within 180 days after the
Termination Date or before the Expiry Date (whichever is earlier) exercise all or any
portion of such vested Options.




 









 






At the end of the periods specified above or the Expiry Date, whichever is earlier, all of the
Options shall terminate and be of no further force or effect. “Termination Date” is defined in the
Plan, and in no event shall any period during which the Participant is in receipt of or entitled to
be in receipt of severance pay or pay in lieu of notice serve to extend the Termination Date.








	9.	 	Method of Exercise of Options and Payment




The Options shall be exercised (in accordance with the provisions of this Agreement and the Plan)
from time to time by giving notice in writing to the Company and setting forth the number of
Options being exercised. Such notice shall be accompanied by cash or certified cheque payable to
the Company, or any other form of payment satisfactory to the Company, in the full amount of the
purchase price for the Optioned Shares being purchased (such purchase price being equal to the
number of Options being exercised times the Option Price) plus payment of any applicable Federal,
State, Provincial or local taxes, or any other taxes which the Company may be obligated to collect
as a result of the issue or transfer of Optioned Shares upon such exercise of the Options. The
Participant shall provide the Company with any additional documents that the Company may require.
As soon as reasonably practicable after the proper exercise of any Options, the Company shall issue
to the Participant a share certificate representing the Optioned Shares acquired.





	10.	 	General Matters






	 	(a)	 	Options are not transferable or assignable.






	 	(b)	 	This Agreement is not an employment contract and nothing in this Agreement
shall be deemed to create in any way whatsoever any obligation on the Participant’s
part to continue to work for the Company (or any subsidiary of the Company), or of the
Company (or any subsidiary of the Company) to continue to employ the Participant.






	 	(c)	 	The Participant acknowledges that the Company may be required to disclose to
the securities regulatory authorities, the Exchange or other regulatory authorities
duly authorized to make such request, the name, address and telephone number of the
Participant, the number of Options granted, and if required by applicable securities
legislation, regulations, rules, policies or orders or by any securities commission,
the Exchange or other regulatory authority, it will, in a timely manner, execute,
deliver, file and otherwise assist the company in filing, such reports, undertakings,
and other documents with respect to the Options as may be required or requested by the
Company to enable the Company to comply with applicable securities legislation,
regulations, rules, policies or orders or the requirements of any securities
commission or other regulatory authority or the Exchange.






	 	(d)	 	This Agreement and the Plan constitute the entire agreement between the
parties relating to the grant of Options to the Participant and supersedes all prior
communications, representations and negotiations in respect thereto provided that, for
greater certainty, in the event of any inconsistencies as between this Agreement and
the Plan, such matters shall be governed by the terms and provisions of the Plan.






	 	(e)	 	For the grant of the Options to be effective, this Agreement must be executed
by the Participant and returned to the Company.






	 	(f)	 	This Agreement shall be governed by the laws of the Province of Alberta. The
parties agree that any disputes under this Agreement shall be resolved by the courts
of Alberta and each of the parties irrevocably attorn to the non-exclusive
jurisdiction thereof with respect to all such matters and the transactions
contemplated herein.






	 	(g)	 	Time shall be of the essence of this Agreement.






	 	(h)	 	The Participant acknowledges that neither the Plan or this Agreement
restricts the Company’s ability to conduct its business (including, but not limited
to, such decisions as transactions with related parties, new product development
efforts, cancellation of existing products, mergers and acquisitions, or corporate
dissolution) regardless of the effect those decisions may have on the value of
Options.




 









 







	 	(i)	 	The Participant shall not have any of the rights and privileges of a
shareholder of the Company by virtue of being granted Options.




The Company and the Participant have executed this Agreement this                 day of                     
           to be effective the date first written above.







NUCRYST PHARMACEUTICALS CORP.




	 	 	 	 	 
	By:

	 	
 
	 	
 
Director