Document:

ex4_1.htm

 

    
      

    

     Exhibit
4.1

     

    UR-ENERGY
INC.

    AMENDED
AND RESTATED STOCK OPTION PLAN

    2005

     

     

    1.            
PURPOSE OF THE
PLAN

     

    
      	
              1.1

            	
              The
      purpose of the Plan is to attract, retain and motivate persons of
      training, experience and leadership to the Corporation and its
      Subsidiaries, including their directors, officers, employees and service
      providers, and to advance the interests of the Corporation by providing
      such persons with the opportunity, through share options, to acquire an
      increased proprietary interest in the
  Corporation.

            

    

     

     

    2.           
 DEFINED
TERMS

     

    Where
used herein, the following terms shall have the following meanings,
respectively:

     

    
      	
              2.1

            	
              “Board”
      means the Board of Directors of the Corporation or, if established and
      duly authorized to act, the Executive Committee of the Board of Directors
      of the Corporation;

            

    

     

    
      	
              2.2

            	
              “Change
      of Control” includes:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      acquisition by any persons acting jointly or in concert (as determined by
      the Securities Act), whether directly or indirectly, of voting securities
      of the Corporation that, together with all other voting securities of the
      Corporation held by such persons, constitute in the aggregate more than
      50% of all outstanding voting securities of the
    Corporation;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              an
      amalgamation, arrangement or other form of business combination of the
      Corporation with another corporation that results in the holders of voting
      securities of that other corporation holding, in the aggregate, more than
      50% of all outstanding voting securities of the corporation resulting from
      the business combination;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      sale, lease or exchange of all or substantially all of the property of the
      Corporation to another person, other than in the ordinary course of
      business of the Corporation or to a Related Entity;
  or

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any
      other transaction that is deemed to be a “Change of Control” for the
      purposes of this Plan by the Board in its sole
  discretion;

            

    

     

    
      	
              2.3

            	
              “Committee”
      shall have the meaning attributed thereto in Section 3.1
      hereof;

            

    

     

    
      	
              2.4

            	
              “Control”
      by a person over a second person means the power to direct, directly or
      indirectly, the management and policies of the second person by virtue
      of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              ownership
      of or direction over voting securities in the second
    person;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      written agreement or indenture;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              being
      or Controlling the general partner of the second person;
  or

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (iv)

            	
              being
      a trustee of the second person;

            

    

     

    
      	
              2.5

            	
              “Corporation”
      means Ur-Energy Inc. and includes any successor corporation
      thereof;

            

    

     

    
      	
              2.6

            	
              “Eligible
      Person” means:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      Insider, director, officer or employee of the Corporation or any
      Subsidiary, or any other Service Provider (an “Eligible Individual”);
      or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      corporation controlled by an Eligible Individual, the issued and
      outstanding voting shares of which are, and will continue to be,
      beneficially owned, directly or indirectly, by such Eligible Individual
      and/or the spouse, children and/or grandchildren of such Eligible
      Individual (an “Employee
Corporation”);

            

    

     

    
      	
              2.7

            	
              “Insider”
      means any insider, as such term is defined in Subsection 1(1) of the Securities Act
      (Ontario), of the Corporation, other than a person who falls within that
      definition solely by virtue of being a director or senior officer of a
      Subsidiary, and includes any associate, as such term is defined in
      Subsection 1(1) of the Securities Act
      (Ontario), of any such insider;

            

    

     

    
      	
              2.8

            	
              “Market
      Price” at any date in respect of the Shares means the closing sale price
      of such Shares on the TSX (or, if such Shares are not then listed and
      posted for trading on the TSX, then on the recognized stock exchange on
      which such Shares are listed on which the greatest volume of them were
      traded during the period referenced below or, if such Shares are not so
      listed on any recognized stock exchange, then on the over-the-counter
      market on which they are traded as selected for such purpose by the
      Committee) on the trading day immediately preceding such date. In the
      event that such Shares did not trade on such trading day, the Market Price
      shall be the average of the bid and ask prices in respect of such Shares
      at the close of trading on such trading
day;

            

    

     

    
      	
              2.9

            	
              “Option”
      means an option to purchase Shares granted to an Eligible Person under the
      Plan;

            

    

     

    
      	
              2.10

            	
              “Option
      Price” means the price per Share at which Shares may be purchased under an
      Option, as the same may be adjusted from time to time in accordance with
      Article 8 hereof;

            

    

     

    
      	
              2.11

            	
              “Optioned
      Shares” means the Shares issuable pursuant to an exercise of
      Options;

            

    

     

    
      	
              2.12

            	
              “Optionee”
      means an Eligible Person to whom an Option has been granted and who
      continues to hold such Option;

            

    

     

    
      	
              2.13

            	
              “Plan”
      means this Amended and Restated Stock Option Plan, as the same may be
      further amended or varied from time to
time;

            

    

     

    
      	
              2.14

            	
              “Related
      Entity” means, for the Corporation, a person that Controls or is
      Controlled by the Corporation or that is Controlled by the same person
      that controls the Corporation;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              2.15

            	
              “Service
      Provider” means any person or company engaged as an independent contractor
      or otherwise to provide ongoing management or consulting services for the
      Corporation or for any entity controlled by the
    Corporation;

            

    

     

    
      	
              2.16

            	
              “Shares”
      means the Common Shares of the Corporation or, in the event of an
      adjustment contemplated by Article 8 hereof, such other shares or
      securities to which an Optionee may be entitled upon the exercise of an
      Option as a result of such
adjustment;

            

    

     

    
      	
              2.17

            	
              “Subsidiary”
      means any corporation which is a subsidiary, as such term is defined in
      Subsection 1(2) of the Canada Business Corporations
      Act, of the Corporation; and

            

    

     

    
      	
              2.18

            	
              “TSX”
      means the Toronto Stock Exchange.

            

    

     

     

    3.           
 ADMINISTRATION
OF THE PLAN

     

    
      	
              3.1

            	
              The
      Plan shall be administered by the Board or, if determined by the Board, by
      the Board with the assistance of the compensation committee (the
      “Committee”) of the Board.

            

    

     

    
      	
              3.2

            	
              The
      Committee shall have the power, where consistent with the general purpose
      and intent of the Plan and subject to the specific provisions of the
      Plan:

            

    

     

    
      	
               
      

            	
              (a)

            	
              to
      establish policies and to adopt rules and regulations for carrying out the
      purposes, provisions and administration of the
  Plan;

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      interpret and construe the Plan and to determine all questions arising out
      of the Plan or any Option, and any such interpretation, construction or
      determination made by the Committee shall be final, binding and conclusive
      for all purposes;

            

    

     

    
      	
               
      

            	
              (c)

            	
              to
      determine the number of Shares covered by each
  Option;

            

    

     

    
      	
               
      

            	
              (d)

            	
              to
      determine the Option Price of each
Option;

            

    

     

    
      	
               
      

            	
              (e)

            	
              to
      determine the time or times when Options will be granted and
      exercisable;

            

    

     

    
      	
               
      

            	
              (f)

            	
              to
      determine if the Shares which are issuable on the exercise of an Option
      will be subject to any restrictions upon the exercise of such Option;
      and

            

    

     

    
      	
               
      

            	
              (g)

            	
              to
      prescribe the form of the instruments relating to the grant, exercise and
      other terms of Options.

            

    

     

    
      	
              3.3

            	
              The
      Committee may, in its discretion, require as conditions to the grant or
      exercise of any Option that the Optionee shall
  have:

            

    

     

    
      	
               
      

            	
              (a)

            	
              represented,
      warranted and agreed in form and substance satisfactory to the Corporation
      that he or she is acquiring and will acquire such Option and the Shares to
      be issued upon the exercise thereof or, as the case may be, is acquiring
      such Shares, for his or her own account, for investment and not with a
      view to or in connection with any distribution, that he or she has had
      access to such information as is necessary to enable him or her to
      evaluate the merits and risks of such investment and that he or she is
      able to bear the economic risk of holding such Shares for an indefinite
      period;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              agreed
      to restrictions on transfer in form and substance satisfactory to the
      Corporation and to an endorsement on any option agreement on certificate
      representing the Shares making appropriate reference to such restrictions;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              agreed
      to indemnify the Corporation in connection with the
    foregoing.

            

    

     

    
      	
              3.4

            	
              Any
      Option granted under the Plan shall be subject to the requirement that, if
      at any time counsel to the Corporation shall determine that the listing,
      registration or qualification of the Shares subject to such Option upon
      any securities exchange or under any law or regulation of any
      jurisdiction, or the consent or approval of any securities exchange or any
      governmental or regulatory body, is necessary as a condition of, or in
      connection with, the grant or exercise of such Option or the issuance or
      purchase of Shares thereunder, such Option may not be accepted or
      exercised in whole or in part unless such listing, registration,
      qualification, consent or approval shall have been effected or obtained on
      conditions acceptable to the Committee. Nothing herein shall be deemed to
      require the Corporation to apply for or to obtain such listing,
      registration, qualification, consent or
  approval.

            

    

     

    
      	
              3.5

            	
              The
      Chief Executive Officer of the Corporation may grant Options, in the
      context of non-executive employment or consulting arrangements, from time
      to time between the dates of meetings of the Board in the amount of up to
      100,000 Shares in aggregate and upon the reporting from time to time of
      the grant of such Options to the Board, the amount available for such
      grants by the Chief Executive Officer shall be restored to the full amount
      of 100,000 Shares.

            

    

     

     

    4.         
   SHARES SUBJECT TO THE
PLAN

     

    
      	
              4.1

            	
              Subject
      to adjustment as provided in Article 8 hereof, the Shares to be offered
      under the Plan shall consist of the Corporation’s authorized but unissued
      common shares. The aggregate number of Shares issuable upon the exercise
      of all options granted under the Plan shall not exceed 10% of the issued
      and outstanding shares of the Corporation as at the date of grant of each
      Option under the Plan. If any Option granted hereunder shall expire or
      terminate for any reason in accordance with the terms of the Plan without
      being exercised, the un-purchased shares subject thereto shall again be
      available for the purpose of this
Plan.

            

    

     

     

    5.         
   ELIGIBILITY; GRANT; TERMS OF
OPTIONS

     

    
      	
              5.1

            	
              Options
      may be granted to any Eligible Person in accordance with Section 5.2
      hereof.

            

    

     

    
      	
              5.2

            	
              Options
      may be granted by the Corporation pursuant to the recommendations of the
      Committee from time to time provided and to the extent that such decisions
      are approved by the Board.

            

    

     

    
      	
              5.3

            	
              Subject
      as herein and otherwise specifically provided in this Article 5, the
      number of Shares subject to each Option, the Option Price of each Option,
      the expiration date of each Option, the extent to which each Option is
      exercisable from time to time during the term of the Option and other
      terms and conditions relating to each such Option shall be determined by
      the Committee.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              5.4

            	
              In
      the event that no specific determination is made by the Committee with
      respect to any of the following matters, each Option shall, subject to any
      other specific provisions of the Plan, contain the following terms and
      conditions:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      period during which an Option shall be exercisable shall be 5 years from
      the date the Option is granted to the Optionee;
  and

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Optionee may exercise the Option for not more than 10% of the Shares
      covered by the Option on the date of the grant of the Option, as to not
      more than an additional 22%, four and one half months after the date of
      grant, as to not more than an additional 22%, nine months after the date
      of grant, as to an additional 22%, thirteen and one half months after the
      date of grant and as to the final 24%, eighteen months after the date of
      grant,

            

    

     

    subject
to the right of the Board to determine at the time of grant that a particular
Option will be exercisable in whole or in part on different dates and to
determine at any time after the date of grant that a particular Option will be
exercisable in whole or in part on earlier dates for any reason, including the
occurrence of a proposal by the Corporation or any other person to implement a
transaction that would, if implemented, result in a Change of
Control.

     

    
      	
              5.5

            	
              Subject
      to any adjustments pursuant to the provisions of Article 8 hereof, the
      Option Price of any Option shall be in no circumstances be lower than the
      Market Price on the trading day immediately preceding the date of which
      the grant of the Option is approved by the Committee. Notwithstanding the
      foregoing, in the event that the Shares are not listed on any stock
      exchange on the date on which the grant of an Option is approved by the
      Committee, the Option Price for such Option shall be determined by the
      Committee. If, as and when any Shares have been duly purchased and paid
      for under the terms of an Option, such Shares shall be conclusively deemed
      allotted and issued as fully paid non-assessable Shares at the price paid
      therefor.

            

    

     

    
      	
              5.6

            	
              No
      Options shall be granted to any Optionee if the total number of Shares
      issuable to such Optionee under this Plan, together with any Shares
      reserved for issuance to such Optionee under options for services or any
      other stock option plans, would exceed 5% of the issued and outstanding
      Shares.

            

    

     

    
      	
              5.7

            	
              An
      Option is personal to the Optionee and non-assignable (whether by
      operation of law or otherwise), except as provided for herein. Upon any
      attempt to transfer, assign, pledge, hypothecate or otherwise dispose of
      an Option contrary to the provisions of the Plan, or upon the levy of any
      attachment or similar process upon an Option, the Option shall, at the
      election of the Corporation, cease and terminate and be of no further
      force or effect whatsoever.

            

    

     

    
      	
              5.8

            	
              No
      Options shall be granted to an Optionee if such grant could result, at any
      time, in:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      number of Shares reserved for issuance pursuant to Options or other stock
      options granted to Insiders exceeding 10% of the issued and outstanding
      Shares;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      issuance to Insiders, within a one-year period, of a number of Shares
      exceeding 10% of the issued and outstanding Shares;
  or

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              the
      issuance to any one Insider and such Insider’s associates, within a
      one-year period, of a number of Shares exceeding 5% of the issued and
      outstanding Shares.

            

    

     

    For the
purposes of this Section 5.8, the phrase “issued and outstanding Shares”
excludes any Shares issued pursuant to the Plan or other stock options, stock
option plans, employee stock purchase plans or other compensation or incentive
mechanisms, over a preceding one-year period and “associate” means any person
associated with such Insider.

     

     

    6.            
 TERMINATION OF
EMPLOYMENT; DEATH

     

    
      	
              6.1

            	
              Subject
      to (i) the provisions of this Article 6, (ii) any express resolutions
      passed by the Committee or Board, or (iii) any provisions specifically
      included in employment agreements or other written arrangement with
      Eligible Persons, an Option and all rights to purchase Shares pursuant
      thereto shall expire and terminate immediately upon the Optionee who holds
      such Option ceasing to be an Eligible
Person.

            

    

     

    
      	
              6.2

            	
              If,
      before the expiry of an Option in accordance with the terms thereof, an
      Optionee shall cease to be an Eligible Person (an “Event of Termination”)
      for any reason other than termination for “cause” of his or her employment
      with the Corporation or any Subsidiary, or except as set out in Section
      6.7, then the Optionee may:

            

    

     

    
      	
               
      

            	
              (a)

            	
              exercise
      the Option to the extent that he or she was entitled to do so at the time
      of such Event of Termination, at any time up to and including, but not
      after, a date three (3) months following the date of such Event of
      Termination, or prior to the close of business on the expiration date of
      the Option, whichever is earlier;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              with
      the prior written consent of the Board or the Committee, which consent may
      be withheld in the Corporation’s sole discretion, exercise a further
      Option at any time up to and including, but not after, a date three (3)
      months following the date of such Event of Termination, or prior to the
      close of business on the expiration date of the Option, whichever is
      earlier, to purchase all or any of the Optioned Shares as the Board or the
      Committee may designate but not exceeding the number of Optioned Shares
      the Optionee would have otherwise been entitled to purchase pursuant to
      the Option had the Optionee’s status as an Eligible Person been maintained
      for the term of the Option.

            

    

     

    
      	
              6.3

            	
              If
      an Optionee dies before the expiry of an Option in accordance with the
      terms thereof, the Optionee’s legal representative(s) may, subject to the
      terms of the Option and the Plan:

            

    

     

    
      	
               
      

            	
              (a)

            	
              exercise
      the Option to the extent that the Optionee was entitled to do so at the
      date of his or her death at any time up to and including, but not after, a
      date one year following the date of death of the Optionee, or prior to the
      close of business on the expiration date of the Option, whichever is
      earlier; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              with
      the prior written consent of the Board or the Committee, exercise at any
      time up to and including, but not after, a date one year following the
      date of death of the Optionee, a further Option to purchase all or any of
      the Optioned Shares as the Board or the Committee may designate but not
      exceeding the number of Optioned

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Shares
      the Optionee would have otherwise been entitled to purchase had the
      Optionee survived.

            

    

     

    
      	
              6.4

            	
              For
      greater certainty, Options shall not be affected by any change of
      employment of the Optionee or by the Optionee ceasing to be a director of
      the Corporation provided that the Optionee continues to be an Eligible
      Person.

            

    

     

    
      	
              6.5

            	
              For
      the purposes of this Article 6, a determination by the Corporation that an
      Optionee was discharged for “cause” shall be binding on the Optionee;
      provided, however, that such determination shall not be conclusive of the
      Optionee’s potential entitlement to damages for the loss of the right to
      exercise an Option in the event that a court of competent jurisdiction
      ultimately determines that the discharge was without
    “cause”.

            

    

     

    
      	
              6.6

            	
              If
      the Optionee is an Employee Corporation, the references to the Optionee in
      this Article 6 shall be deemed to refer to the Eligible Individual
      associated with the Employee
Corporation.

            

    

     

    
      	
              6.7

            	
              Notwithstanding
      the provisions of this Article 6:

            

    

     

    
      	
               
      

            	
              (a)

            	
              all
      vested Options held by an officer of the Corporation, as designated by the
      Board of the Corporation (a “Designated Officer”), provided such person
      has been a Designated Officer for at least one year, will expire on the
      expiration date identified at the time of grant of the Option and all
      unvested Options will expire upon the date of termination whether as a
      result of resignation or termination by the Corporation without
      cause;

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      vested Options held by a director on the Board of the Corporation,
      provided such person has been a director for at least one year, whether as
      a result of appointment or election to the Board, will expire on the
      expiration date identified at the time of grant of the Option and all
      unvested Options will expire on the date of termination whether as a
      result of resignation or failure to be re-elected to the Board;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              nothing
      in this Section 6.7 will be construed as extending an Option beyond the
      expiration date identified at the time of grant of the Option and in
      accordance with the Plan.

            

    

     

     

    7.            
EXERCISE OF
OPTIONS

     

    
      	
              7.1

            	
              Subject
      to the provisions of the Plan, an Option may be exercised from time to
      time by delivery to the Corporation at its registered office of a written
      notice of exercise addressed to the Secretary of the Corporation
      specifying the number of Shares with respect to which the Option is being
      exercised and accompanied by payment in full, by cash or cheque, of the
      Option Price of the Shares then being purchased. Certificates for such
      Shares shall be issued and delivered to the Optionee within a reasonable
      time following the receipt of such notice and
  payment.

            

    

     

    
      	
              7.2

            	
              Notwithstanding
      any of the provisions contained in the Plan or in any Option, the
      Corporation’s obligation to issue Shares to an Optionee pursuant to the
      exercise of any Option shall be subject
to:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                 
      

              	
                (a)

              	
                      
                  completion
      of such registration or other qualification of such Shares or obtaining
      approval of such governmental or regulatory authority as the Corporation
      shall determine to be necessary or advisable in connection with the
      authorization, issuance or sale
  thereof;

                

              

      

       

    

    
      	
               
      

            	
              (b)

            	
              the
      administration of such Shares to listing on any stock exchange on which
      the Shares may then be listed;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      receipt from the Optionee of such representations, warranties, agreements
      and undertakings, as the Corporation determines to be necessary or
      advisable in order to safeguard against the violation of the securities
      laws of any jurisdiction; and

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      satisfaction of any conditions on exercise prescribed pursuant to Section
      3.3 hereof,

            

    

     

    in this
connection the Corporation shall, to the extent necessary, take all commercially
reasonable steps to obtain such approvals, registrations, and qualifications as
may be necessary for the issuance of such Shares in compliance with applicable
securities laws and for the listing of such Shares on any stock exchange on
which the Share are then listed.

     

    
      	
              7.3

            	
              Options
      shall be evidenced by a share option agreement, instrument or certificate
      in such form not inconsistent with this Plan as the Committee may from
      time to time determine as provided for under Subsection 3.2(g), provided
      that the substance of Article 5 be included
  therein.

            

    

     

     

    8.            
CERTAIN
ADJUSTMENTS

     

    
      	
              8.1

            	
              In
      the event of any subdivision or redivision of the Shares into a greater
      number of Shares at any time after the grant of an Option to any Optionee
      and prior to the expiration of the term of such Option, the Corporation
      shall deliver to such Optionee at the time of any subsequent exercise of
      his or her Option in accordance with the terms hereof, in lieu of the
      number of shares to which he or she was theretofore entitled upon such
      exercise, but for the same aggregate consideration payable therefor, such
      number of Shares as such Optionee would have held as a result of such
      subdivision or redivision if, on the record date thereof, the Optionee had
      been the registered holder of the number of Shares to which he or she was
      theretofore entitled upon such
exercise.

            

    

     

    
      	
              8.2

            	
              In
      the event of any consolidation of the Shares into a lesser number of
      Shares at any time after the grant of an Option to any Optionee and prior
      to the expiration of the term of such Option, the Corporation shall
      deliver to such Optionee at the time of any subsequent exercise of his or
      her Option in accordance with the terms hereof, in lieu of the number of
      Shares to which he or she was theretofore entitled upon such exercise, but
      for the same aggregate consideration payable therefor, such number of
      Shares as such Optionee would have held as a result of such consolidation
      if, on the record date thereof, the Optionee had been the registered
      holder of the number of Shares to which he or she was theretofore entitled
      upon such exercise.

            

    

     

    
      	
              8.3

            	
              Subject
      to the provisions of Article 9, if at any time after the grant of any
      Option to an Optionee and prior to the expiration of the term of such
      Option, the Shares shall be reclassified, reorganized or otherwise
      changed, otherwise than as specified in
Sections

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              8.1
      and 8.2 or the Corporation shall consolidate, merge or amalgamate with or
      into another corporation (the corporation resulting or continuing from
      such consolidation, merger or amalgamation being herein called the
      “Successor Corporation”) or, the Corporation shall pay a stock dividend
      (other than any dividends in the ordinary course), the Optionee shall be
      entitled to receive upon the subsequent exercise of his or her Option in
      accordance with the terms hereof and shall accept in lieu of the number of
      Shares to which he or she was theretofore entitled upon such exercise but
      for the same aggregate consideration payable therefor, the aggregate the
      number of shares of the appropriate class and/or other securities of the
      Corporation or the Successor Corporation (as the case may be) that the
      Optionee would have been entitled to receive as a result of such
      reclassification, reorganization or other change or as a result of such
      consolidation, merger, amalgamation, or stock dividend, if on the record
      date of such reclassification, reorganization, other change or stock
      dividend, or the record date of such consolidation, merger or amalgamation
      or dividend payment, as the case may be, he or she had been the registered
      holder of the number of Shares to which he or she was theretofore entitled
      upon such exercise.

            

    

     

    
      	
              8.4

            	
              Notwithstanding
      any other provision herein, in the event of a Change of Control
      all  Options, whether vested or unvested, will become fully
      vested and exercisable immediately prior to the date of a Change of
      Control without notice to
Optionees.

            

    

     

    
      	
              8.5

            	
              In
      the event the Corporation should declare and pay a special cash dividend
      or other distribution out of the ordinary course, a special dividend in
      specie on the Shares, or a stock dividend other than in the ordinary
      course, the Option Price of all Options outstanding on the record date of
      such dividend or other distribution shall be reduced by an amount equal to
      the cash payment or other distribution or the fair market value of the
      dividend in specie or stock dividend or other distribution, as determined
      by the Committee in its sole
discretion.

            

    

     

     

    9.            
AMENDMENT OR
DISCONTINUANCE OF THE PLAN

     

    
      	
              9.1

            	
              Subject
      to applicable regulatory requirements and except as provided herein, the
      Board may, in its sole and absolute discretion and without shareholder
      approval, amend, suspend, terminate or discontinue the Plan and may amend
      the terms and conditions of Options granted pursuant to the Plan.
      Provided, however, that if the Board wishes to increase the maximum
      percentage in Section 4.1 hereof or extend the Option period or reduce the
      Option Price of Options granted to Insiders of the Corporation pursuant to
      the Plan, shareholder approval will be
required.

            

    

     

    
      	
              9.2

            	
              Without
      limiting the generality of the foregoing, the Board may make the following
      amendments to the Plan, without obtaining shareholder
      approval:

            

    

     

    
      	
               
      

            	
              (a)

            	
              amendments
      to the terms and conditions of the Plan necessary to ensure that the Plan
      complies with the applicable regulatory requirements, including the rules
      of the TSX, in place from time to
time;

            

    

     

    
      	
               
      

            	
              (b)

            	
              amendments
      to the provisions of the Plan respecting administration of the Plan and
      eligibility for participation under the
Plan;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              amendments
      to the provisions of the Plan respecting the terms and conditions on which
      options may be granted pursuant to the Plan, including the provisions
      relating to the option price, the option period and the vesting schedule;
      and

            

    

     

    
      	
               
      

            	
              (d)

            	
              amendments
      to the Plan that are of a “housekeeping”
nature.

            

    

     

    
      	
              9.3

            	
              Without
      limiting the generality of the foregoing, the Board may amend the Option
      Price, the option period, the vesting schedule and the termination
      provisions of Options granted pursuant to the Plan, without shareholder
      approval. Provided, however, that. if the Board proposes to reduce the
      Option Price or extend the option period of options granted to Insiders of
      the Corporation pursuant to the Plan, such amendments will require
      shareholder approval.

            

    

     

     

    10.           MISCELLANEOUS
PROVISIONS

     

    
      	
              10.1

            	
              An
      Optionee shall not have any rights as a shareholder of the Corporation
      with respect to any of the Shares covered by such Option until the date of
      issuance of a certificate for Shares upon the exercise of such Option, in
      full or in part, and then only with respect to the Shares represented by
      such certificate or certificates. Without in any way limiting the
      generality of the foregoing, no adjustment shall be made for dividends or
      other rights for which the record date is prior to the date such share
      certificate is issued.

            

    

     

    
      	
              10.2

            	
              Nothing
      in the Plan or any Option shall confer upon an Optionee any right to
      continue or be re-elected as a director of the Corporation or any right to
      continue in the employ of the Corporation or any Subsidiary, or affect in
      any way the right of the Corporation or any Subsidiary to terminate his or
      her employment at any time; nor shall anything in the Plan or any Option
      be deemed or construed to constitute an agreement, or an expression of
      intent, on the part of the Corporation or any Subsidiary to extend the
      employment of any Optionee beyond the time which he or she would be
      normally be retired pursuant to the provisions of any present or future
      retirement plan of the Corporation or any Subsidiary or any present or
      future retirement policy of the Corporation or any Subsidiary, or beyond
      the time at which he or she would otherwise be retired pursuant to the
      provisions of any contract of employment with the Corporation or any
      Subsidiary.

            

    

     

    
      	
              10.3

            	
              Notwithstanding
      Section 5.8 hereof, Options may be transferred or assigned between an
      Eligible Individual and the related Employee Corporation provided the
      assignor delivers notice to the Corporation prior to the
      assignment.

            

    

     

    
      	
              10.4

            	
              The
      Plan and all matters to which reference is made herein shall be governed
      by and interpreted in accordance with the laws of the Province of Ontario
      and the laws of Canada applicable
therein.

            

    

     

     

    11.           SHAREHOLDER AND REGULATORY
APPROVAL

     

    
      	
              11.1

            	
              The
      Plan shall be subject to acceptance by the TSX and any other relevant
      regulatory authority. Any Options granted prior to such acceptance shall
      be conditional upon such acceptance being given and no such Options may be
      exercised unless and until such acceptance are
  given.Northport Network Systems, Inc.: Exhibit 10.1- Filed by newsfilecorp.com

Share Transfer Agreement Amendment
 

Transferor: 
Mr. Yu Jianhua, born on March 4, 1956,
Han Nationality, 
ID Card No.: 210202195603046418, 
Position: Shareholder
of Dalian Riyueming Hotels Co., Ltd., and director of the company 
Address:
1-5-1, No.64 Sanhuan Street, Xigang District, Dalian 

Transferee: 
Dalian Northport Information Industry
Development Co., Ltd. 
Address: Room 512, A, 1 Huoiju Road, Qixianling
Industrial Base, High-Tech Zone, Dalian 
Legal Representative: Zhao
Yan(Collectively, the Transferor and Transferee are called “the 
Parties”)

On June 18, 2010 the Parties entered into a Share Transfer
Agreement on the basis of amiable negotiation and principles of voluntary
participation. According to Economic Agreement Law of People’s Republic of China
and the relevant regulations, the Parties agreed to execute the agreement
subject to the terms and conditions stipulated below. 

A. Description of the Share Transfer Agreement Transaction

Dalian Riyueming Hotels Co., Ltd. (“Riyueming”) operated by
Transferor, is a non-governmental limited liability corporation, which owns and
manages five business hotels named Riyueming which are all in good running
condition. It has a stable business income and professional management team and
has an established trade name in the industry. Transferor holds a 50% equity
share of Riyurming. 

Transferee, Dalian Northport Information Industry Development
Co., Ltd. is a wholly-owned subsidiary of Northport Network Systems Inc., a
public corporation in the U.S.A. The parent corporation is registered in
Washington State U.S.A., and has its headquarters located in Seattle, and has
had its common shares traded on the OTCBB since Jan.16, 2008 with trading symbol
of NNWS. 

Under terms of the Share Transfer Agreement, the Transferor
agreed to transfer 35% of the equity in Riyueming to the Transferee in exchange
for shares of the Transferee’s parent US company. 

As a result of ongoing discussions and negotiations, the
Parties have agreed to cancel the original Share Transfer Agreement. Accordingly
the transaction is terminated effective August 5, 2010 and deemed to not have
occurred. 

B. Settlement of Disputes 

Any dispute arising from the execution of this Agreement
Amendment shall be settled through friendly consultations by the parties. In the
case where no settlement through consultation can be reached or one party is not willing to
enter into consultation, the dispute shall be submitted to a local court. 

C. Matter not Covered 

Any matters not covered in this Agreement Amendment shall be
solved by signing a supplementary agreement. The supplementary agreement will
prevail in case differences are found between this Agreement and the
supplementary agreement. 

D. This Agreement Amendment shall become effective upon
signing and stamping by the both parties. 

E. This Agreement Amendment is made in quintuplicate.
Two copies are held by Transferor and three copies are held by Transferee. All
the copies are of the same legal effect. 

Transferor: 

/s/ Yu
Jianhua                                                                  

Signed personally: 

Transferee: 

Dalian Northport Information Industry Development Co., Ltd.

/s/ Zhao
Yan                                                                      

Signed by legal representative: 

Signed on this 5th day of August,
2010

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]