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|   | a) | “Associates” shall have the same meaning as is assigned to that term in the Securities Act (British Columbia) as amended or re-enacted from time to time. |
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|   | b) | "Board" means (i) the board of directors of the Company, or (ii) the Company’s compensation committee, if the board of directors delegates its powers and responsibilities under the Plan to it. |
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|   | c) | "Controlling Shareholder" means the individual who controls a personal holding company which is granted Options. |
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|   | d) | "Eligible Person" means (i) an employee, officer, director or Service Provider of the Company or its Subsidiaries, or the estate of that individual, (ii) any personal holding company controlled by an employee, officer, director or service provider of the Company or its Subsidiaries, (iii) an RRSP or RRIF established by or for an employee, officer, director or service provider of the Company or under which any employee, officer, director or service provider of the Company is a beneficiary, or (iv) a partnership of which a service provider of the Company is an employee or partner.  Absence on approved leave shall not be considered an interruption of employment for any purpose of this Plan. |
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|   | e) | "For Cause" means the termination of a Participant, or a Participant's Controlling Shareholder, as an employee, officer, director or Service Provider of the Company or a Subsidiary for any reason which at law, or under the terms of the contract with that individual, allows for termination without notice or compensation in lieu of notice. |
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|   | f) | “Market” means the Canadian National Stock Exchange so long as the Shares are quoted on that Exchange. If the Shares are listed on another stock exchange, the Market shall be that stock exchange. |
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|   | g) | "Option" means an option to purchase Shares granted under this Plan. |
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|   | h) | "Participant" means an individual or company to whom an Option has been granted. |
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|   | i) | “Related Person” means a director or senior officer of the Company or an associate of a director or senior officer of the Company (and for this purpose the term “senior officer” shall have the same meaning as is assigned to that term in the Securities Act (British Columbia) as amended or re-enacted from time to time). |
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|   | j) | "Service Provider" means an individual, other than an employee, officer or director of the Company, that (i) is engaged to provide on a bona fide basis consulting, technical, management or other services to the issuer or to Subsidiary under a written contract between the issuer or the Subsidiary entity and the individual or a company of which that individual is an employee or shareholder or a partnership of which that the individual is an employee or partner, and (ii) in the reasonable opinion of the Company, spends or will spend a significant amount of time and attention on the affairs and business of the Company or Subsidiary. |
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|   | k) | "Shares" means (i) common shares in the capital of the Company, or (ii) if there is an adjustment under Article 5, such other shares or securities to which a Participant may be entitled upon the exercise of an Option as a result of such adjustment. |
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|   | l) | "Subsidiary" means a subsidiary of the Company, as the term "subsidiary" is defined in the Business Corporations Act (British Columbia), as it may be amended. |
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|   | a) | the number of Shares which may be purchased under the Option; |
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|   | b) | the price at which Shares may be purchased under the Option; |
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|   | c) | the term of the Option, or the expiry date of the Option; |
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|   | d) | if the Board so decides, the conditions which must be satisfied prior to the Option becoming exercisable; and |
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|   | e) | such other terms and conditions which the Board may wish to include in the Option and which are not inconsistent with the terms of this Plan. Options may be granted at or in anticipation of the time a Participant becomes an Eligible Person, or at any other time the Board deems appropriate. |
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|   | a) | the Company obtaining such approvals, registrations and qualifications as the Company determines to be necessary or advisable for the issuance of the Shares in compliance with applicable securities laws or the rules of any stock exchange (or quotation system) on which the class of Shares are then listed (or quoted); and |
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|   | b) | the receipt from the Participant of such representations, agreements and undertakings, including as to future dealings in the Shares, as the Company determines to be necessary or advisable in order to safeguard against the violation of the securities laws of any jurisdiction. |
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|   | a) | the last day on which the Option, by its terms, may be exercised; |
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|   | b) | one (1) year after the death of the Participant or the Participant's Controlling Shareholder; |
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|   | c) | 90 days after the Participant or the Participant's Controlling Shareholder is terminated as an employee, officer, director or service provider of the Company by reason of permanent disability or retirement under any retirement plan of the Company or any Subsidiary (or in the case of a Participant or the Participant's Controlling Shareholder is involved in investor relations activities for the Company, 30 days); |
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|   | d) | immediately upon the termination For Cause of the Participant or the Participant's Controlling Shareholder as an employee, officer, director or Service Provider of the Company or a Subsidiary; |
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|   | e) | except as determined otherwise by the Board, 90 days after the Participant or the Participant's Controlling Shareholder ceases to be an employee, officer, director or Service Provider of the Company for any reason other than those referred to above. Without limitation, this provision will apply upon the termination not For Cause of the Participant or the Participant's Controlling Shareholder as an employee, officer, director or service provider of the Company (regardless of whether the Participant or the Participant's Controlling Shareholder is entitled to more than 90 days notice of termination); and |
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|   | f) | except as determined otherwise by the Board, 30 days after any Participant involved in investor relations activity for the Company (or the Participant's Controlling Shareholder) ceases to be an employee, officer, director or Service Provider of the Company for any reason other than those referred to above. Without limitation, this provision will apply upon the termination not For Cause of the Participant or the Participant's Controlling Shareholder as an employee, officer, director or service provider of the Company (regardless of whether the Participant or the Participant's Controlling Shareholder is entitled to more than 90 days notice of termination); |
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|   | a) | a subdivision of the Shares into a greater number of Shares, |
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|   | b) | a consolidation of the Shares into a lesser number of Shares, |
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|   | c) | a reclassification or change of the Shares, |
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|   | d) | a capital reorganization of the Company not otherwise covered in this section, or |
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|   | e) | a consolidation, amalgamation or merger of the Company with or into any other entity, then the number and type of securities to be issued to the Participant upon exercise of the Option shall be adjusted so that the Participant shall receive the same number and type of securities as the Participant would have received as a result of the Adjusting Event if the portion of the Option so exercised had been exercised before the Adjusting Event. The adjustments provided for in this section shall be cumulative. The Company shall not be obligated to issue fractional shares in satisfaction of any of its obligations under this section. |
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|   | (i) | An Option is personal to the Participant and may not be assigned or transferred, except to the estate of the Participant upon the Participant's death; |
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|   | (ii) | An Option can be exercisable for a maximum of five years from the date of grant; |
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|   | (iii) | No more than 5% of the issued shares of the Company may be granted to any one individual in any 12 month period (or 1% in respect of any individual consultant or an employee engaged in investor relations activities on behalf of the Company); |
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|   | (iv) | The terms of the Option may not be amended once issued; and |
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|   | (v) | For stock options granted to Employees, Consultants or Management Company Employees, the Company represents that the Optionee is a bona fide Employee, Consultant or Management Company Employee, as the case may be. |
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|   | a) | the number of shares reserved for issuance under stock options granted to Insiders exceeding 10% of the issued shares; and |
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|   | b) | the grant to Insiders, within a 12 month period, of a number of options exceeding 10% of the issued shares. |
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|   | a) | in the case of the Company, to the attention of the Secretary of the Company at the principal business office of the Company, and |
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|   | b) | in the case of a Participant, to the last address of the Participant known to the Company. Any Notice given by mail or personal delivery or courier shall be deemed to have been given and received on the date of actual delivery, and any Notice given by telecopy shall be deemed to have been given and received on the first business day following the transmittal thereof. For the purpose of this section, a business day means a day, other than a Saturday or Sunday, which is generally a business day for chartered banks in the municipality in which the principal business office of the Company is located. |
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