Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Carbiz Inc. - Exhibit

CARBIZ INC.
2007 INCENTIVE STOCK PLAN

ARTICLE I 
Establishment, Purpose, and Duration

          1.1     
Establishment of the Plan. Carbiz Inc., an Ontario, Canada corporation
(the “Company”), hereby establishes an incentive stock plan for the Company and
its Subsidiaries to be known as the “Carbiz, Inc. 2007 Incentive Stock Plan,” as
set forth in this document. Unless otherwise defined herein, all capitalized
terms shall have the meanings set forth in Section 2.1 herein. The Plan permits
the grant of Incentive Stock Options, Non-Qualified Stock Options, and
Restricted Stock to Employees, Non-Employee Directors and consultants of the
Company.

          The
Plan was adopted on January 18, 2007, by the Board. The Plan shall become
effective on January 19, 2007 (the “Effective Date”), subject to the approval by
vote of shareholders of the Company in accordance with applicable laws. Awards
of Incentive Stock Options, Non-Qualified Stock Options and Restricted Stock may
be granted under the Plan on or after the Effective Date of the Plan and prior
to the date of shareholder approval of the Plan, provided, however, that if
granted prior to the date of shareholder approval of the Plan, each such Award
shall be expressly subject to the approval of the Plan by vote of shareholders
of the Company in accordance with applicable laws on or before January 19, 2008,
and if such shareholder approval is not obtained, the Plan and all such Awards
previously granted under the Plan shall terminate and become null and void.

          1.2     
Purpose of the Plan. The purpose of the Plan is to promote the success of
the Company and its Subsidiaries by providing incentives to Employees,
Non-Employee Directors and consultants of the Company that will promote the
identification of their personal interest with the long-term financial success
of the Company and with growth in shareholder value. The Plan is designed to
provide flexibility to the Company and its Subsidiaries, in its ability to
motivate, attract, and retain the services of Employees, Non-Employee Directors
and consultants of the Company upon whose judgment, interest, and effort the
successful conduct of its operation is largely dependent.

          1.3      Duration
of the Plan. The Plan shall commence on the Effective Date, as described in
Section 1.1 herein, and, if shareholder approval is obtained as provided in
Section 1.1 herein, shall remain in effect, subject to the right of the Board of
Directors to terminate the Plan at any time pursuant to Article X herein,
through January 18, 2017 (the “Term”), at which time it shall terminate except
with respect to Awards made prior to, and outstanding on, that date which shall
remain valid in accordance with their terms.

ARTICLE II 
Definitions

          2.1      Definitions.
Except as otherwise defined in the Plan, the following terms shall have the
meanings set forth below:

          (a)      “Agreement”
means a written agreement implementing the grant of each Award signed by an
authorized officer of the Company and by the Participant.

          (b)     
“Award” or “Grant” means, individually or collectively, a grant under the Plan
of Incentive Stock Options, Non-Qualified Stock Options or Restricted Stock.

          (c)     
“Award Date” or “Grant Date” means the date on which an Award is made by the
Committee under the Plan.

          (d)      “Board”
or “Board of Directors” means the Board of Directors of the Company, unless such
term is used with respect to a Subsidiary, in which event it shall mean the
Board of Directors of that Subsidiary.

          (e)      “Change
in Control” means the occurrence, on or after the Effective Date, of any of the
following:

          (i)     
the closing of a corporate reorganization in which the Company (or its
successor) becomes a subsidiary of a holding company, the merger of the Company
(or its successor) with or into another person, or the closing of the sale,
conveyance, or other transfer of all or substantially all of the assets of the
Company (or its successor) to another person, where the majority of the common
stock of the acquiring or surviving entity is beneficially owned by persons who
did not own the majority of the common shares of the Company (or its successor)
immediately prior to the reorganization, merger, sale, conveyance or other
transfer; or 

          (ii)   
individuals who constitute the Board on the Effective Date (the “Incumbent
Board”) cease for any reason to constitute at least a majority thereof; provided
that any person becoming a director subsequent to the date hereof whose
nomination for election was approved by a vote of at least three-quarters (3/4)
of the directors comprising the Incumbent Board shall be considered as though
such person were a member of the Incumbent Board for purposes of this
paragraph.

For purposes hereof, the term “person”
shall include any individual, corporation, partnership, group, association, or
other “person,” as such term is used in Section 14(d) of the Exchange Act, other
than the Company (or its successor), any entity in which the Company (or its
successor) owns a majority of the voting interest, or any employee benefit
plan(s) sponsored by the Company (or its successor).

          (f)      “Code”
means the United States Internal Revenue Code of 1986, as amended from time to
time.

          (g)      “Committee”
means the committee(s) of the Board appointed or otherwise serving, as provided
below, to administer the Plan pursuant to Article III herein.

          (i)      With
respect to Awards to Employees and consultants of the Company, the Committee
shall consist of at least two persons, each of whom shall be “non-employee
directors” as defined in Rule 16b-3, as amended, under the Exchange Act, or any
similar or successor rule, and “outside directors” within the meaning of Section
162(m)(4)(C)(i) of the Code. Unless otherwise determined by the Board, with
respect to Awards to Employees and consultants of the Company, the Committee
shall consist of the Compensation Committee of the Board of Directors of the
Company so long as it consists of at least two persons, each of whom is both a
non-employee director and an outside director (as hereinbefore defined).

          (ii)   
Unless otherwise determined by the Board, with respect to Awards to Non-Employee
Directors, the Committee shall consist of the entire Board of Directors of the
Company.

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          (h)     
“Company” means Carbiz, Inc., or any successor thereto as provided in Article
XII herein.

          (i)      “Employee”
means a current or prospective officer or other employee of the Company or any
of its Subsidiaries (including any corporation, partnership, limited liability
company, or joint venture, which becomes a Subsidiary after the adoption of the
Plan by the Board).

          (j)     
“Exchange Act” means the United States Securities Exchange Act of 1934, as
amended.

          (k)     
“Fair Market Value” of a Share means the closing market price (that is, the
price at which last sold on the applicable principal U.S. market) of the Shares
on the relevant date if it is a trading date or, if not, on the most recent date
on which the Shares were traded prior to such date, as reported by the OTC
Bulletin Board or, if applicable, by the NASDAQ Global Market or Capital Market
Systems; or if, in the opinion of the Committee, this method is inapplicable or
inappropriate for any reason, the fair market value as determined pursuant to a
reasonable method adopted by the Committee in good faith for such purpose.

          (l)     
“Incentive Stock Option” or “ISO” means an option to purchase Shares, granted
under Article VI herein, which is designated as an incentive stock option and is
intended to meet the requirements of Section 422 of the Code.

          (m)     
“Non-Employee Director” means an individual who is a member of the Board of the
Company or a Subsidiary and who is not an employee of the Company or any
Subsidiary (including any corporation, partnership, limited liability company,
or joint venture, which becomes a Subsidiary after the adoption of the Plan by
the Board).

          (n)      “Non-Qualified
Stock Option” or “NQSO” means an option to purchase Shares, granted under
Article VI, which is not intended to be an Incentive Stock Option.

          (o)     
“Option” means an Incentive Stock Option or a Non-Qualified Stock Option.

          (p)     
“Participant” means an Employee, Non-Employee Director or consultant of the
Company who is granted or receives an Award under the Plan.

          (q)     
“Performance Goal” means one or more performance measures or goals set by the
Committee in its discretion for each grant of a performance-based compensation
Award. The extent to which such performance measures or goals are met will
determine the amount or value of the performance-based compensation Award that a
Participant is entitled to exercise, receive, or retain. Performance Goals may
be particular to a Participant; may relate to the performance of the Subsidiary,
operating segment, division, branch, strategic business unit, or line of
business, which employs him or her; or may be based on the performance of the
Company generally. Performance Goals may be based on Share value or increases
therein; earnings per share or earnings per share growth; net earnings,
earnings, or earnings growth (before or after one or more of taxes, interest,
depreciation, and/or amortization); operating profit; operating cash flow;
operating or other expenses; operating efficiency; return on equity, assets,
capital, or investment; sales or revenues or growth thereof; working capital
targets or cost control measures; regulatory compliance; gross, operating, or
other margins; credit ratings; productivity; customer satisfaction; satisfactory
internal or external audits; improvement of financial ratings; achievement of
balance sheet or income statement objectives; quality measures; and any 

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component or components of the
foregoing (including, without limitation, determination thereof with or without
the effect of discontinued operations and dispositions of business segments,
non-recurring items, material extraordinary items that are both unusual and
infrequent, special charges, and/or accounting changes), or implementation,
management, or completion of critical projects or processes or other measurement
determined by the Committee. Performance Goals may include a threshold level of
performance below which no payment or vesting may occur, levels of performance
at which specified payments or specified vesting will occur, and a maximum level
of performance above which no additional payment or vesting will occur.
Performance Goals may be absolute in their terms or measured against or in
relationship to a market index; a group of other companies comparably,
similarly, or otherwise situated; or a combination thereof. Each of the
Performance Goals shall be determined, where applicable and except as provided
herein or in the applicable Agreement, in accordance with generally accepted
accounting principles applied in the United States of America.

The Committee, in its sole discretion
and at any time but subject to any limitations under Section 162(m) of the Code
in the case of an Award intended to qualify as “performance-based compensation”
under Section 162(m) of the Code, may adjust any Performance Goal and any
evaluation of performance under a Performance Goal to take into account any of
the following events that occurs during a performance period: (i) asset
write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect
of changes in tax law, accounting principles or other such laws or provisions
affecting reported results, (iv) accruals for reorganization and restructuring
programs, and (v) any extraordinary non-recurring items as described in
Accounting Principles Board Opinion No. 30 (or in any replacement thereof)
and/or in management’s discussion and analysis of financial condition and
results of operations appearing in the Company’s annual report to shareholders
for the applicable year. 

In addition, in the case of an Award
not intended to qualify as “performance-based compensation” under Section 162(m)
of the Code, the Committee, in its sole discretion and at any time, may adjust
any Performance Goal and any evaluation of performance under a Performance Goal
on such basis and for such reason as it may determine. 

Prior to the payment of any
compensation under an Award intended to qualify as “performance-based
compensation” under Section 162(m) of the Code, the Committee shall determine
and certify the extent to which any Performance Goal and any other material
terms under such Award have been satisfied (other than in cases where such
relate solely to the increase in the value of Shares).

          (r)      “Period
of Restriction” means the period during which Restricted Stock is restricted,
pursuant to Article VII herein.

          (s)     
“Plan” means the Carbiz, Inc. 2007 Incentive Stock Plan, as described and as
hereafter from time to time amended.

          (t)     
“Restricted Stock” means an Award of Shares granted to a Participant pursuant to
Article VII herein.

          (u)      “Stock”
or “Shares” means the Common Shares, no par value per share, of the Company.

          (v)     
“Subsidiary” means any subsidiary corporation of the Company within the meaning
of Section 424(f) of the Code (“Section 424(f) Corporation”) and any
partnership, 

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limited liability company or joint
venture in which either the Company or a Section 424(f) Corporation is at least
a fifty percent (50%) equity participant.

ARTICLE III 
Administration

          3.1     
The Committee. The Plan shall be administered by the Committee, which
shall have all powers necessary or desirable for such administration. The
express grant in the Plan of any specific power to the Committee shall not be
construed as limiting any power or authority of the Committee. In addition to
any other powers and subject to the provisions of the Plan, the Committee shall
have the following specific powers: (i) to determine the terms and conditions
upon which the Awards may be made, exercised and paid; (ii) to determine all
terms and provisions of each Agreement, which need not be identical; (iii) to
construe and interpret the Agreements and the Plan; (iv) to establish, amend, or
waive rules or regulations for the Plan’s administration; (v) to accelerate the
exercisability of any Award or the termination of any Period of Restriction or
other restrictions imposed under the Plan; (vi) to change Performance Goals
(subject to limitations under Section 162(m)(4)(C) of the Code for Awards that
are intended to qualify as performance-based compensation thereunder); and (vii)
to make all other determinations and take all other actions necessary or
advisable for the administration of the Plan in its sole and absolute
discretion. Any determination by the Committee shall be in the Committee’s sole
and absolute discretion, and its determination shall be final and binding on all
parties. Any exercise of discretion by the Committee shall be deemed to mean an
exercise of discretion in its sole and absolute discretion, and its exercise
shall be final and binding on all parties.

          For
purposes of determining the applicability of Section 422 of the Code (relating
to Incentive Stock Options), or in the event that the terms of any Award provide
that it may become earned, exercised or vested only during employment or service
or within a specified period of time after termination of employment or service,
the Committee may decide to what extent leaves of absence for governmental or
military service, illness, temporary disability, or other reasons shall not be
deemed interruptions of employment or service or continuous employment or
service. 

          Subject
to limitations under applicable law, the Committee is authorized in its
discretion to issue Awards and/or accept notices, elections, consents, and/or
other forms or communications by Participants by electronic or similar means,
including, without limitation, transmissions through e-mail, voice mail,
recorded messages on electronic telephone systems, and other permissible
methods, on such basis and for such purposes as it determines from time to
time.

          Except
in connection with the approval, modification or amendment of Awards to
Non-Employee Directors, a majority of the entire Committee shall constitute a
quorum and the action of a majority of the members present at any meeting at
which a quorum is present (in person or as otherwise permitted by applicable
law), or acts approved in writing by a majority of the Committee without a
meeting, shall be deemed the action of the Committee. In connection with the
approval, modification or amendment of Awards to Non-Employee Directors, the
entire Committee shall constitute a quorum and the unanimous action of all of
the members (in person or as otherwise permitted by applicable law), or acts
approved in writing by unanimous consent of the Committee without a meeting,
shall be deemed the action of the Committee.

          3.2      Selection
of Participants. The Committee shall have the authority to grant Awards
under the Plan, from time to time, to such Employees, Non-Employee Directors
and/or consultants of the Company as may be selected by it to be Participants.
Each Award shall be evidenced by an Agreement.

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          3.3      Decisions
Binding. All determinations and decisions made by the Board or the Committee
pursuant to the provisions of the Plan shall be made in its sole and absolute
discretion and shall be final, conclusive, and binding.

          3.4      Requirements
of Rule 16b-3 and Section 162(m) of the Code. Notwithstanding any other
provision of the Plan, the Board or the Committee may impose such conditions on
any Award, and amend the Plan in any such respects, as may be required to
satisfy the requirements of Rule 16b-3, as amended (or any successor or similar
rule), under the Exchange Act, if and when applicable.

          Any
provision of the Plan to the contrary notwithstanding, and except to the extent
that the Committee determines otherwise: (i) transactions by and with respect to
officers and directors of the Company who are subject to Section 16(b) of the
Exchange Act (hereafter, “Section 16 Persons”) shall comply with any applicable
conditions of Rule 16b-3; (ii) transactions with respect to persons whose
remuneration is subject to the provisions of Section 162(m) of the Code shall
conform to the requirements of Section 162(m)(4)(C) of the Code; and (iii) every
provision of the Plan shall be administered, interpreted, and construed to carry
out the foregoing provisions of this sentence.

          Notwithstanding
any provision of the Plan to the contrary, the Plan is intended to give the
Committee the authority to grant Awards that qualify as performance-based
compensation under Section 162(m)(4)(C) of the Code as well as Awards that do
not so qualify. Every provision of the Plan shall be administered, interpreted,
and construed to carry out such intention, and any provision that cannot be so
administered, interpreted, and construed shall to that extent be disregarded;
and any provision of the Plan that would prevent an Award that the Committee
intends to qualify as performance-based compensation under Section 162(m)(4)(C)
of the Code from so qualifying shall be administered, interpreted, and construed
to carry out such intention, and any provision that cannot be so administered,
interpreted, and construed shall to that extent be disregarded.

          3.5     
Indemnification of the Committee. In addition to such other rights of
indemnification as they may have as directors or as members of the Committee,
the members of the Committee shall be indemnified by the Company against
reasonable expenses, including attorneys’ fees, actually and reasonably incurred
in connection with the defense of any action, suit, or proceeding, or in
connection with any appeal therein, to which they or any of them may be a party
by reason of any action taken or failure to act under or in connection with the
Plan or any Award granted or made hereunder, and against all amounts reasonably
paid by them in settlement thereof or paid by them in satisfaction of a judgment
in any such action, suit, or proceeding, if such members acted in good faith and
in a manner which they believed to be in, and not opposed to, the best interests
of the Company and its Subsidiaries.

ARTICLE IV 
Shares Subject to the Plan

          4.1     
Number of Shares. Subject to adjustment as provided in Section 4.3
herein, the maximum aggregate number of Shares that may be issued pursuant to
Awards made under the Plan shall not exceed fifteen million (15,000,000) Shares.
Except as provided in Section 4.2 herein, only Shares actually issued in
connection with the exercise of, or as other payment for, Awards under the Plan
shall reduce the number of Shares available for future Awards under the
Plan.

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          4.2      Lapsed
Awards or Forfeited Shares; Shares Used as Payment of Exercise Price or for
Taxes.

          (a)      If
any Award granted under the Plan terminates, expires, or lapses for any reason
other than by virtue of exercise of the Award, or if Shares issued pursuant to
Awards are forfeited, any Shares subject to such Award again shall be available
for the grant of an Award under the Plan.

          (b)     
In the event a Participant pays the Option Price for Shares pursuant to the
exercise of an Option with previously acquired Shares, the number of Shares
available for future Awards under the Plan shall be reduced only by the net
number of new Shares issued upon the exercise of the Option. In addition, in
determining the number of shares of Shares available for Awards, if Shares have
been delivered or exchanged by, or withheld from, a Participant as full or
partial payment to the Company for payment of withholding taxes, or if the
number of Shares otherwise deliverable by the Company has been reduced for
payment of withholding taxes, the number of Shares exchanged by or withheld from
a Participant as payment in connection with the withholding tax or so reduced by
the Company shall again be available for the grant of an Award under the
Plan.

          4.3      Capital
Adjustments. The number and class of Shares subject to each outstanding
Award, the Option Price (as defined in Section 6.3 herein), and the annual
limits on and the aggregate number and class of Shares for which Awards
thereafter may be made shall be proportionately, equitably and appropriately
adjusted in such manner as the Committee shall determine in order to retain the
economic value or opportunity to reflect any share dividend, share split,
recapitalization, merger, consolidation, reorganization, reclassification,
combination, exchange of shares or similar event in which the number or class of
Shares is changed without the receipt or payment of consideration by the
Company. Where an Award being adjusted is an ISO or is subject to Section 409A
of the Code, the adjustment shall also be effected so as to comply with Section
424(a) of the Code and not to constitute a modification within the meaning of
Section 424(h) or 409A, as applicable, of the Code.

ARTICLE V 
Eligibility

          Persons
eligible to participate in the Plan and receive Awards are all Employees,
Non-Employee Directors and consultants of the Company who, in the opinion of the
Committee, merit becoming Participants.

ARTICLE 
VI Stock Options

          6.1     
Grant of Options. Subject to the terms and provisions of the Plan,
Options may be granted to Employees, Non-Employee Directors and consultants of
the Company at any time and from time to time as shall be determined by the
Committee. The Committee shall have complete discretion in determining the
number of Shares subject to Options granted to each Participant, provided,
however, that (i) no Participant may be granted Options in any calendar year for
more than five million (5,000,000) Shares, (ii) the aggregate Fair Market Value
(determined at the time the Award is made) of Shares with respect to which any
Participant may first exercise ISOs granted under the Plan during any calendar
year may not exceed $100,000 or such amount as shall be specified in Section 422
of the Code and rules and regulations thereunder, (iii) no ISO may be granted on
or following the tenth anniversary of the earlier of the Effective Date of the
Plan or the date of shareholder approval of the Plan, and (iv) no ISO may be
granted to a Non-Employee Director or consultant of the Company.

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          6.2     
Option Agreement. Each Option grant shall be evidenced by an Agreement
that shall specify the type of Option granted; the Option Price; the duration of
the Option; the number of Shares to which the Option pertains; any conditions
imposed upon the exercisability of Options in the event of retirement, death,
disability, or other termination of employment or service; and such other
provisions as the Committee shall determine. The Agreement shall specify whether
the Option is intended to be an Incentive Stock Option within the meaning of
Section 422 of the Code, or a Non-Qualified Stock Option not intended to be an
Incentive Stock Option within the meaning of Section 422 of the Code, provided,
however, that if an Option is intended to be an Incentive Stock Option but fails
to be such for any reason, it shall continue in full force and effect as a
Non-Qualified Stock Option.

          6.3     
Option Price. The exercise price per Share covered by an Option (“Option
Price”) shall be determined by the Committee subject to the following
limitations. The Option Price shall not be less than 100% of the Fair Market
Value of such Share on the date of grant. In addition, in order for an Option to
be an ISO where an Option is granted to an Employee who, at the time of grant,
owns (within the meaning of Section 424(d) of the Code) shares possessing more
than 10% of the total combined voting power of all classes of shares of the
Company, the Option must have an Option Price which is at least equal to 110% of
the Fair Market Value of the Shares on the date of grant.

          6.4     
Duration of Options. Each Option shall expire at such time as the
Committee shall determine at the time of grant, provided, however, that no ISO
shall be exercisable after the expiration of ten years from its Award Date
(unless on that day the exchange on which the Shares then trade is closed, in
which case those Options shall expire on the next day on which such exchange is
open). In addition, in order for an Option to be an ISO where an Option is
granted to an Employee who, at the time of grant, owns (within the meaning of
Section 424(d) of the Code) shares possessing more than 10% of the total
combined voting power of all classes of shares of the Company, the Option must
not be exercisable after the expiration of five years from its Award Date.

          6.5     
Exercisability. Options granted under the Plan shall be exercisable at
such times and be subject to such restrictions and conditions as the Committee
shall determine, which need not be the same for all Participants.

          6.6     
Method of Exercise. Options shall be exercised by the delivery of a
written notice to the Company in the form prescribed by the Committee setting
forth the number of Shares with respect to which the Option is to be exercised,
accompanied by full payment for the Shares. The Option Price shall be payable to
the Company in full either in cash or certified check or wire transfer or by a
combination of the foregoing.

          As
soon as practicable, after receipt of written notice and payment of the Option
Price and completion of payment of (or an arrangement satisfactory to the
Company for the Participant to pay) any tax withholding required in connection
with the Option exercise, the Company shall cause the appropriate number of
Shares to be issued in the Participant’s name, which issuance shall be effected
in book entry or electronic form, provided that issuance and delivery in
certificated form shall occur if the Participant so requests or the Committee so
directs.

          6.7      Restrictions
on Share Transferability. The Committee may impose such restrictions
on any Shares acquired pursuant to the exercise of an Option under the Plan as
it may deem advisable in its sole and absolute discretion, including, without
limitation, (i) restrictions under applicable United States federal securities
laws, under the rules of any stock exchange upon which such Shares are then
listed, and under any blue sky or state securities laws applicable to such
Shares and (ii) a right of first refusal running to the Company, a buyback right
by the Company or other restriction on transferability. In the event the
Committee so provides in an Agreement pertaining to an Option, Shares delivered
on exercise of the 

- 8 -

Option may be designated as Restricted Stock or Shares subject
to a buyback right by the Company in the amount of, or based on, the Option
Price therefore or otherwise in the event the Participant does not complete a
specified service period after exercise.

ARTICLE VII 
Restricted Stock

          7.1     
Grant of Restricted Stock. Subject to the terms and conditions of the
Plan, the Committee, at any time and from time to time, may grant Shares of
Restricted Stock under the Plan to such Participant and in such amounts as it
shall determine, provided, however, that no Participant may be granted more than
five million (5,000,000) Shares of Restricted Stock in any calendar year. Unless
otherwise provided in the applicable Agreement, Participants receiving
Restricted Stock Awards are not required to pay the Company therefore (except
for applicable tax withholding) other than the rendering of services. As
determined by the Committee, Shares of Restricted Stock shall be issued in
certificated form. Unless otherwise determined by the Committee, custody of
Shares of Restricted Stock in certificated form shall be retained by the Company
or held in escrow by an escrow agent selected, and subject to change from time
to time, by the Committee until the termination of the Period of Restriction
pertaining thereto.

          7.2     
Restricted Stock Agreement. Each Restricted Stock Award shall be
evidenced by an Agreement that shall specify the Period of Restriction, the
number of Shares of Restricted Stock granted, and the applicable restrictions
(whether service-based restrictions, with or without performance acceleration,
and/or performance-based restrictions) and such other provisions as the
Committee shall determine. If an Award of Restricted Stock is intended to be a
performance-based compensation Award, the terms and conditions of such Award,
including the Performance Goal(s) and Period of Restriction and, if different,
performance period, shall be set forth in an Agreement or in a sub-plan of the
Plan, which is incorporated by reference into an Agreement, and the requirements
to satisfy or achieve the Performance Goal(s) as so provided therein shall be
considered to be restrictions under the Plan.

          7.3      Other
Restrictions. The Committee may impose such other restrictions under
applicable United States federal or state securities laws as it may deem
advisable, and may legend the certificates representing Restricted Stock to give
appropriate notice of such restrictions. 

          7.4      Certificate
Legend. In addition to any legends placed on certificates pursuant to
Section 7.3 herein, each certificate representing Shares of Restricted Stock
granted pursuant to the Plan shall bear the following legend:

“The sale, transfer, pledge,
hypothecation or other disposition of the shares represented by this
certificate, whether voluntary, involuntary, or by operation of law, is subject
to certain restrictions on transfer set forth in the Carbiz, Inc. 2007 Incentive
Stock Plan, in the rules and administrative procedures adopted pursuant to such
Plan, and in an associated Restricted Stock Agreement. A copy of the Plan, such
rules and procedures, and the applicable Restricted Stock Agreement may be
obtained from the Secretary of Carbiz, Inc.”

          7.5      Removal
of Restrictions. Except as otherwise provided in this Article, Shares of
Restricted Stock covered by each Restricted Stock Award made under the Plan
shall become freely transferable by the Participant after the last day of the
Period of Restriction and, where applicable, after a determination of the
satisfaction or achievement on any applicable Performance Goal(s) by the
Committee. Once the Shares are released from the restrictions, the legend
required by Section 7.4 herein shall be removed.

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          7.6      Voting
Rights. Unless otherwise provided in the Agreement, during the Period of
Restriction, Participants holding Shares of Restricted Stock granted hereunder
may exercise voting rights with respect to those Shares.

          7.7      Dividends
and Other Distributions. Unless otherwise provided in the Agreement (which
may or may not provide for the accumulation and payment of dividends and other
distributions made in cash or property other than Shares until the Shares of
Restricted Stock to which the dividends and other distributions relate vest),
during the Period of Restriction, Participants entitled to or holding Shares of
Restricted Stock granted hereunder shall be entitled to receive all dividends
and other distributions made in cash or property other than Shares with respect
to those Shares of Restricted Stock. If any dividends or distributions are paid
in Shares, such Shares shall be subject to the same restrictions on
transferability and the same rules for vesting, forfeiture, and custody as the
Shares of Restricted Stock with respect to which they were distributed. 

          7.8     
Failure to Satisfy Performance Goal(s). In the event that the specified
Performance Goal(s) are not satisfied within the time period established by the
Committee, the Shares of Restricted Stock which were awarded subject to the
satisfaction of such Performance Goal(s) shall be automatically forfeited and
returned to the Company. Notwithstanding the foregoing, in the case of an Award
not intended to qualify as “performance-based compensation” under Section 162(m)
of the Code, the Committee may waive all or any part of the such Performance
Goal(s) and provide for vesting of the Award on such basis as it deems
appropriate.

          7.9     
Restrictions on Share Transferability. The Committee may impose
such restrictions on any Shares delivered to a Participant pursuant to this
Article as it may deem advisable in its sole and absolute discretion, including,
without limitation, (i) restrictions under applicable United States federal
securities laws, under the rules of any stock exchange upon which such Shares
are then listed, and under any blue sky or state securities laws applicable to
such Shares and (ii) a right of first refusal running to the Company, a buyback
right by the Company or other restriction on transferability. In the event the
Committee so provides in an Agreement, Shares delivered pursuant to the Plan in
connection with Awards of Restricted Stock may be subject to a buyback right by
the Company in the amount of, or based on, a specific or formula price therefore
or otherwise in the event the Participant does not complete a specified service,
consulting or non-competition period after issuance or delivery of the Share to
the Participant.

ARTICLE VIII 
Change in Control

          In
the event of a Change in Control of the Company, the Committee, as constituted
before such Change in Control, in its sole discretion may, as to any outstanding
Award, either at the time the Award is made or any time thereafter, take any one
or more of the following actions: (i) provide for the acceleration of any time
periods relating to the exercise or realization of any such Award so that such
Award may be exercised or realized in full on or before a date initially fixed
by the Committee; (ii) provide for the purchase or settlement of any such Award
by the Company, with or without a Participant’s request, for an amount of cash
equal to the amount which could have been obtained upon the exercise of such
Award or realization of such Participant’s rights had such Award been currently
exercisable or payable; (iii) make such adjustment to any such Award then
outstanding as the Committee deems appropriate to reflect such Change in
Control; or (iv) cause any such Award then outstanding to be assumed, or new
rights substituted therefore, by the acquiring or surviving corporation in such
Change in Control.

- 10 -

ARTICLE IX 
Modification, Extension, and Renewals of
Awards

          Subject
to the terms and conditions and within the limitations of the Plan, the
Committee may modify, extend, or renew outstanding Awards and may modify the
terms of an outstanding Agreement, provided that the exercise price of any Award
may not be lowered other than pursuant to Section 4.3 herein. In addition, the
Committee may accept the surrender of outstanding Awards granted under the Plan
or outstanding awards granted under any other equity compensation plan of the
Company and authorize the granting of new Awards pursuant to the Plan in
substitution therefore, so long as the new or substituted awards do not specify
a lower exercise price than the surrendered Awards or awards and are not of a
different type (with Options being one type and all other Awards being a
different type), and otherwise, the new Awards may specify different performance
goals from the surrendered Awards or awards, may provide for more rapid or
slower exercisability or vesting than the surrendered Awards or awards, and may
contain any other provisions that are authorized by the Plan. Notwithstanding
the foregoing, however, no modification of an Award shall, without the consent
of the Participant, adversely affect the rights or obligations of the
Participant.

ARTICLE X
Amendment, Modification, and Termination
of the Plan

          10.1     
Amendment, Modification and Termination. At any time and from time to
time, the Board may terminate, amend, or modify the Plan. Such amendment or
modification may be without shareholder approval except to the extent that such
approval is required by the Code, pursuant to the rules under Section 16 of the
Exchange Act, if applicable, by any national securities exchange or system on
which the Shares are then listed or reported, by any regulatory body having
jurisdiction with respect thereto, or under any other applicable laws, rules, or
regulations.

          10.2     
Awards Previously Granted. No termination, amendment, or modification of
the Plan, other than pursuant to Section 4.3 or 13.10 herein, shall in any
manner adversely affect any Award theretofore granted under the Plan, without
the written consent of the Participant.

ARTICLE XI 
Withholding

          11.1      Tax
Withholding. The Company shall have the power and the right to deduct or
withhold, or require a Participant to remit to the Company, an amount sufficient
to satisfy United States federal, state, and local taxes (including the
Participant’s FICA obligation, if any) required by law to be withheld with
respect to any grant, exercise or payment made under or as a result of the
Plan.

          11.2     
Share Withholding. With respect to withholding required upon the exercise
of Non-Qualified Stock Options, upon the lapse of restrictions on Restricted
Stock or upon the occurrence of any other taxable event with respect to any
Award, Participants may elect, subject to the approval of the Committee, or the
Committee may require Participants to satisfy the withholding requirement, in
whole or in part, by having the Company withhold Shares having a Fair Market
Value equal to the amount required to be withheld. The value of the Shares to be
withheld shall be based on the Fair Market Value of the Shares on the date that
the amount of tax to be withheld is to be determined. All elections by
Participants shall be irrevocable and be made in writing and in such manner as
determined by the Committee in advance of the day that the transaction becomes
taxable.

- 11 -

ARTICLE XII 
Successors

          All
obligations of the Company under the Plan, with respect to Awards granted
hereunder, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

ARTICLE XIII 
General

          13.1     
Requirements of Law. The granting of Awards and the issuance of Shares
under the Plan shall be subject to all applicable laws, rules, and regulations,
and to such approvals by any governmental agencies or self-regulatory
organizations (i.e., exchanges) as may be required.

          13.2     
Effect of Plan. The establishment of the Plan shall not confer upon any
Participant any legal or equitable right against the Company, a Subsidiary, or
the Committee, except as expressly provided in the Plan. The Plan does not
constitute an inducement or consideration for the employment or service of any
Participant, nor is it a contract between the Company or any of its Subsidiaries
and any Participant. Participation in the Plan shall not give any Participant
any right to be retained in the employment or service of the Company or any of
its Subsidiaries. Except as may be otherwise expressly provided in the Plan or
in an Agreement, no Participant who receives an Award shall have rights as a
shareholder of the Company prior to the date Shares are issued to the
Participant pursuant to the Plan.

          13.3      Creditors.
The interests of any Participant under the Plan or any Agreement are not subject
to the claims of creditors and may not, in any way, be assigned, alienated, or
encumbered.

          13.4     
Governing Law. The Plan, and all Agreements hereunder, shall be governed,
construed, and administered in accordance with the laws of Florida.

          13.5     
Severability. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

          13.6     
Unfunded Status of Plan. The Plan is intended to constitute an “unfunded”
plan for incentive and deferred compensation. With respect to any payments as to
which a Participant has a fixed and vested interest but which are not yet made
to a Participant by the Company, nothing contained herein shall give any such
Participant any rights that are greater than those of a general unsecured
creditor of the Company.

          13.7     
Transferability. Unless the Agreement evidencing an Award (or an
amendment thereto authorized by the Committee) expressly states that it is
transferable as provided in this section, no Award granted under the Plan, nor
any interest in such Award, may be sold, assigned, conveyed, gifted, pledged,
hypothecated, or otherwise transferred in any manner, other than by will or the
laws of descent and distribution, prior to the vesting or lapse of any and all
restrictions applicable to any Shares issued under an Award. The Committee may
in its sole discretion grant an Award (other than an ISO) or amend an
outstanding Award (other than an ISO) to provide that the Award is transferable
or assignable to a member or members of the Participant’s “immediate family,” as
such term is defined under Exchange Act Rule 16a-l(e), or to a trust for the
benefit solely of a member or members of the Participant’s immediate family, or
to a partnership or other entity whose only owners are members of the
Participant’s family, provided that, following any such transfer or assignment,
the Award will remain subject to substantially 

- 12 -

the same terms applicable to the Award while held by the
Participant, as modified as the Committee in its sole discretion shall determine
appropriate, and the Participant shall execute an agreement agreeing to be bound
by such terms.

          13.8     
Termination of Employment or Service. Unless otherwise provided in the
Agreement pertaining to an Award, in the event that a Participant terminates his
or her employment or service with the Company and its Subsidiaries for any
reason, then the unvested portion of such Award shall automatically be forfeited
to the Company. Unless otherwise provided in the Agreement pertaining to an
Award, in determining cessation of employment or service, transfers between the
Company and/or any Subsidiary shall be disregarded, and changes in status
between that of an Employee, a Non-Employee Director and a consultant of the
Company shall be disregarded. The Committee may provide in an Agreement made
under the Plan for vesting of Awards in connection with the termination of a
Participant’s employment or service on such basis as it deems appropriate,
including, without limitation, any provisions for vesting at death, disability,
retirement, or in connection with a Change in Control, with or without the
further consent of the Committee. The Agreements evidencing Awards may contain
such provisions as the Committee may approve with reference to the effect of
approved leaves of absence.

          13.9      Registration
and Other Laws and Regulations. The Plan, the grant and exercise of Awards
hereunder, and the obligation of the Company to sell, issue, or deliver Shares
under such Awards, shall be subject to all applicable United States federal,
state, and foreign laws, rules, and regulations and to such approvals by any
governmental or regulatory agency as may be required. The Company shall not be
required to register in a Participant’s name or deliver any Shares prior to the
completion of any registration or qualification of such Shares under any
federal, state, or foreign law or any ruling or regulation of any government
body which the Committee shall, in its sole discretion, determine to be
necessary or advisable. 

          13.10    Nonqualified
Deferred Compensation Plan Omnibus Provision. It is intended that any
compensation, benefits, or other remuneration, which is provided pursuant to or
in connection with the Plan, which is considered to be nonqualified deferred
compensation subject to Section 409A of the Code, shall be provided and paid in
a manner, and at such time and in such form, as complies with the applicable
requirements of Section 409A of the Code to avoid the unfavorable tax
consequences provided therein for non-compliance. The Committee is authorized to
amend any Agreement and to amend or declare void any election by a Participant
as may be determined by it to be necessary or appropriate to evidence or further
evidence required compliance with Section 409A of the Code. 

ARTICLE XIV
Substitution of Awards under Other
Plans or Agreements

          The
Committee is hereby authorized to grant Awards on such basis as it deems
appropriate, and to effect the issuance of Shares under this Plan in
substitution for options, share appreciation rights, or other forms of equity
compensation awarded and outstanding under any equity compensation plan of, or
agreement entered into with, a business entity which is acquired by the Company
or otherwise becomes a Subsidiary on such terms and conditions as it deems
appropriate. The Committee is expressly authorized to provide that the exercise
price of an assumed option or share appreciation right may be higher or lower
than the Fair Market Value of the Shares to which a substitute Option relates in
order to approximate the inherent economic value of the assumed option or share
appreciation right.

Approved on January 18, 2007, by the Board of Directors

- 13 -Filed by Automated Filing Services Inc. (604) 609-0244 - Carbiz Inc.-

CARBIZ INC.
2007 INCENTIVE STOCK PLAN

INCENTIVE STOCK OPTION AGREEMENT

  FOR

  EMPLOYEE

	Granted
        {DATE 1}

This Incentive Stock Option Agreement evidences the grant of an
  Incentive Stock Option (“Option”) to {NAME} (the “Participant”)
  pursuant to Article VI of the Carbiz Inc. 2007 Incentive Stock Plan (the “Plan”).
  This Agreement also describes the terms and conditions of the Option evidenced
  by this Agreement.

	1. 	
      Grant of Options. In consideration of the services
      rendered to Carbiz Inc. (the “Company”) and/or its Subsidiaries by the
      Participant as an Employee of the Company or a Subsidiary, the Company
      hereby grants to the Participant an Option to purchase all or any part of
      a total of {NUMBER} Shares of the Company at a price of ${PRICE} per Share
      (“Option Price”). This Option is granted as of {DATE 1} (“Award Date”).
      This Option is granted pursuant to the Plan and is subject to the terms
      thereof.

	 	 	 	 
	2. 	
      Term.

	 	 	 	 
		(a) 	
      Normal Term. The term of this Option is {TERM
      YEARS} years, until {DATE 2}; provided, however, that this Option may be
      terminated earlier as provided below.

	 	 	 	 
		(b) 	
      Early Termination. This Option will terminate upon
      any of the following events:

	 	 	 	 
			(i) 	
      Death. This Option will terminate one year after
      the death of the Participant if the Participant dies while employed by the
      Company or one of its Subsidiaries.

	 	 	 	 
			(ii) 	
      Disability. This Option will terminate one year
      after the Participant’s employment with the Company or one of its
      Subsidiaries terminates on account of the Participant’s disability within
      the meaning of Section 22(e)(3) of the Code (“Disability”).

	 	 	 	 
			(iii) 	
      Retirement. This Option will terminate one year
      after the Participant’s retirement from employment with the Company or one
      of its Subsidiaries in accordance with any applicable Company policy on
      mandatory or permissive, early or normal retirement as in effect at the
      date of such retirement (“Retirement”).

	 	 	 	 
			(iv) 	
      Other Cessation of Company Service. Except as
      provided in the preceding provisions of this Paragraph 2(b), (1) this
      Option will terminate on the date the Participant’s Company Service (as
      defined in Paragraph 7) (A) ceases at the Company’s or a Subsidiary’s
      instigation for “cause,” or (B) is terminated by the Participant for any
      reason other than death, disability or retirement, and (2) this Option
      will terminate three months after the date the Participant’s Company
      Service ceases at the Company’s or a Subsidiary’s instigation for reasons
      other than for “cause.” For purposes of this paragraph “cause” shall mean
      continued neglect of duty, willful and material misconduct in connection
      with the performance of the Participant’s duties and obligations, and any
      other conduct of the Participant involving moral turpitude, commission of
      a crime or habitual drunkenness or drug abuse, that would make retention
      of the Participant in his position with his employer prejudicial to its
      best interests.

- 1 -

	3. 	
      Exercise.

	 	 	 	 
		(a) 	
      Exercisability. This Option is first exercisable,
      in whole or in part, on and after the applicable time provided
    below:

	 	 	 	 
			(i) 	
      Subject to earlier exercisability as provided in (ii)
      below, this Option shall become exercisable as follows: (1) 20% of the
      total number of Shares awarded under this Agreement shall be first
      exercisable on the first anniversary of the Award Date, (2) the second 20%
      of the total number of Shares awarded under this Agreement shall be first
      exercisable on the second anniversary of the Award Date, (3) the third 20%
      of the total number of Shares awarded under this Agreement shall be first
      exercisable on the third anniversary of the Award Date, (4) the fourth 20%
      of the total number of Shares awarded under this Agreement shall be first
      exercisable on the fourth anniversary of the Award Date, and (5) the fifth
      20% of the total number of Shares awarded under this Agreement shall be
      first exercisable on the fifth anniversary of the Award Date.

	 	 	 	 
			(ii) 	
      If a Change in Control occurs after the Award Date,
      before the expiration date of this Option and during the continuation of
      the Participant’s Company Service (as defined in Paragraph 7), this Option
      may first be exercised (to the extent not already exercisable), in whole
      or in part, after the date such Change in Control occurs.

	 	 	 	 
		(b) 	
      By Whom Exercisable. During the Participant’s
      lifetime, only the Participant may exercise this Option. If the
      Participant dies prior to the expiration date of this Option, without
      having exercised this Option as to all of the Shares covered thereby, this
      Option may be exercised, to the extent of the Shares with respect to which
      this Option could have been exercised on the date of the Participant’s
      death, by the estate or a person who acquired the right to exercise this
      Option by bequest or inheritance from, or by reason of the death of, the
      Participant.

	 	 	 	 
		(c) 	
      Exercise. This Option shall be exercised by
      delivery on any business day to the Company of a Notice of Exercise in the
      form attached to this Agreement accompanied by payment of the Option Price
      as provided in Paragraph 4 and payment in full, to the extent required by
      Paragraph 12, of the amount of any tax the Company is required to withhold
      as a result of such exercise.

	 	 	 	 
	4. 	
      Payment of Option Price. The Option Price will be
      payable in full upon exercise of this Option to purchase Shares, and such
      Option Price must be paid in cash or certified check or wire transfer or
      by a combination of the foregoing.

	 	 	 	 
	5. 	
      Transferability. This Option may not be
      transferred by the Participant except by will or by the laws of descent
      and distribution.

	 	 	 	 
	6. 	
      Forfeiture. This Option shall be forfeited to the
      extent it is not exercisable at the time of the Participant’s cessation of
      Company Service (as defined in Paragraph 7).

	 	 	 	 
	7. 	
      Company Service.

	 	 	 	 
		(a) 	
      For purposes hereof, “Company Service” means service as
      an Employee and includes subsequent service as a member of the Board of
      Directors of the Company or a Subsidiary, if any, as provided in this
      paragraph. Notwithstanding any contrary provision or implication herein,
      in determining cessation of Company Service for purposes hereof, transfers
      between the Company and/or any Subsidiary shall be disregarded and shall
      not be considered a cessation of Company Service, and changes in status
      between that of an Employee and a Non-Employee Director shall be
      disregarded and shall not be considered a cessation of Company
    Service.

- 2 -

		(b) 	
      Nothing under the Plan or in this Agreement shall confer
      upon the Participant any right to continue Company Service or in any way
      affect any right of the Company to terminate the Participant’s Company
      Service without prior notice at any time for any or no reason.

	 	 	 
	8. 	
      Compliance with Securities Laws. The Company
      covenants that it will file and attempt to maintain an effective
      registration statement with the United States Securities and Exchange
      Commission covering the Shares of the Company, which are the subject of
      and may be issued pursuant to this Agreement, at all times during which
      this Option is exercisable and there is no applicable exemption from
      registration of such Shares; provided, however, that this Option shall not
      be exercisable for Shares at any time if its exercise would cause the
      Company to be in violation of any applicable provisions of the United
      States federal or state securities law.

	 	 	 
	9. 	
      Administration of Plan. The Plan is administered
      by a Committee appointed by the Board of Directors. The Committee has the
      authority to construe and interpret the Plan, to make rules of general
      application relating to the Plan, to amend outstanding options, and to
      require of any person exercising this Option, at the time of such
      exercise, the execution of any paper or the making of any representation
      or the giving of any commitment that the Committee shall, in its
      discretion, deem necessary or advisable by reason of the securities laws
      of the United States or any state, or the execution of any paper or the
      payment of any sum of money in respect of taxes or the undertaking to pay
      or have paid any such sum that the Committee shall, in its discretion,
      deem necessary by reason of the Code or any rule or regulation thereunder
      or by reason of the tax laws of any state. All such Committee
      determinations shall be final, conclusive, and binding upon the Company
      and the Participant.

	 	 	 
	10. 	
      Capital Adjustments. The number of Shares covered
      by this Option, and the Option Price thereof, will be subject to an
      appropriate and equitable adjustment, as determined by the Committee, to
      reflect any share dividend, share split or share combination, and will be
      subject to such adjustment as the Committee may deem appropriate to
      reflect any exchange of shares, recapitalization, merger, consolidation,
      separation, reorganization, liquidation or the like, of or by the
      Company.

	 	 	 
	11. 	
      Rights as a Shareholder. The Participant, or a
      transferee of this Option, shall have no rights as a shareholder with
      respect to any Shares subject to this Option until the date of the
      exercise of this Option for such Shares. No adjustment shall be made for
      dividends (ordinary or extraordinary, whether in cash, securities or other
      property) or distributions or other rights for which the record date is
      prior to the date of such exercise, except as provided in Paragraph 10
      hereof.

	 	 	 
	12. 	
      Withholding Taxes. The Company, or one of its
      Subsidiaries, shall have the right to withhold any federal, state or local
      taxes or any other applicable taxes required to be withheld by law with
      respect to the exercise of this Option. The Participant will be required
      to pay the Company, as appropriate, the amount of any such taxes which the
      Company, or one of its Subsidiaries, is required to withhold. In lieu
      thereof, the Company shall have the right to withhold from any other cash
      amounts due to or to become due from the Company to the Participant an
      amount equal to such taxes required to be withheld by the Company to
      reimburse the Company for any such taxes; or to retain and withhold a
      number of Shares having a Fair Market Value on the date of exercise not
      less than the amount of such taxes, and cancel any such Shares so
      withheld, in order to reimburse the Company for any such taxes.

	 	 	 
	13. 	
      Governing Law. This Agreement shall be construed
      in accordance with and governed by the laws of the State of
  Florida.

	 	 	 
	14. 	
      Successors. This Agreement shall be binding upon
      and inure to the benefit of the successors, assigns, heirs, and legal
      representatives of the respective parties.

	 	 	 
	15. 	
      Prohibition Against Pledge, Attachment, etc.
      Except as otherwise provided herein, this Option, and the rights and
      privileges conferred hereby, shall not be transferred, assigned, pledged
      or hypothecated in any way and shall not be subject to execution,
      attachment or similar process.

- 3 -

	16. 	
      Intended to be an Incentive Stock Option. This
      Option is intended to qualify as an incentive stock option within the
      meaning of Section 422(b) of the Code, and the provisions hereof shall be
      construed consistent with that intent. While it is intended that this
      Option be treated as an incentive stock option within the meaning of
      Section 422(b) of the Code, the Company does not guarantee such treatment.
      If, or to the extent, for any reason, this Option is not treated as an
      incentive stock option within the meaning of Section 422(b) of the Code,
      this Option shall nevertheless continue to otherwise be fully effective
      according to its terms and the applicable terms of the Plan and shall be
      regarded as a Non-Qualified Stock Option under the Plan.

	 	 
	17. 	
      Disqualifying Disposition of Shares Issued on Exercise
      of Incentive Stock Option. If the Participant makes a “disposition”
      (within the meaning of Section 424(c) of the Code) of Shares issued upon
      exercise of this Option within two years from the Award Date or within one
      year from the date the Shares are transferred to the Participant, the
      Participant agrees, within ten days of disposition, to notify the
      Committee in order that any income realized as a result of such
      disposition can be properly reported by the Company or one of its
      Subsidiaries on IRS forms W-2 or 1099.

	 	 
	18. 	
      Capitalized Terms. Capitalized terms in this
      Agreement have the meaning assigned to them in the Plan, unless this
      Agreement provides, or the context requires,
otherwise.

To evidence their agreement to the terms and conditions of this
Option, the Company and the Participant have signed this Agreement as of the
date first above written.

	CARBIZ INC.: 	By:
      _______________________________________________
	 	 
	  	Its:
      _______________________________________________
	  	  
	PARTICIPANT: 	 
    
	  	{NAME} 

- 4 -

NOTICE OF EXERCISE

Carbiz Inc.
[ADDRESS]

I hereby exercise my Option pursuant to that certain Incentive
Stock Option Agreement dated {DATE 1} (the “Stock Option Agreement”) awarded
under the Carbiz Inc. 2007 Incentive Stock Plan (the “Plan”), subject to all of
the terms and conditions of the said Stock Option Agreement and the Plan
referred to therein, and hereby notify you of my election to purchase the
following stated number of Shares of Carbiz Inc., an Ontario, Canada corporation
(the “Company”), from the award therein as indicated below at the following
stated Option Price per Share.

	Number of Shares - 	Option Price per Share - $ 	Total Option Price - $ 

If this Notice of Exercise involves fewer than all of the
Shares that are subject to option under the said Stock Option Agreement, I
retain the right to exercise my option for the balance of the Shares remaining
subject to option, all in accordance with the terms of the said Stock Option
Agreement.

I agree to provide the Company with such other documents and
representations as it deems appropriate in connection with this option
exercise.

Payment of Exercise Price. This Notice of Exercise is
accompanied by cash, a certified check or confirmation of a wire transfer in the
amount of $ _____________.

Tax Withholding. Subject to any satisfaction of tax
withholding pursuant to the next paragraph, I hereby authorize the Company (and
any of its Subsidiaries) to withhold from my Board compensation or any other pay
from the Company (and any of its Subsidiaries) the applicable minimum amount of
any taxes required by law and the said Stock Option Agreement to be withheld as
a result of this exercise, to the extent not satisfied by the attached check in
the amount of $ _____________.

[   ] [Check only if desired] I request that the Company
  withhold from the Shares otherwise to be issued to me in connection with this
  exercise a sufficient number of Shares having a value (based on the Shares’
  Fair Market Value on the date of exercise) needed to satisfy the payment of
  [   ] all or [   ] $ ________ of the applicable minimum
  amount of any taxes required by law and the said Stock Option Agreement to be
  withheld as a result of this exercise.

My current address and my Social Security Number are as
follows:

Address:
_________________________________________________________________

________________________________________________________________________

Social Security Number:
________________________________________

	Date: 	 	 
	                                                                                                                                                               	 	 {NAME}

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