Document:

EXHIBIT 4.3

                           LIFE MEDICAL SCIENCES, INC.
                             STOCK OPTION AGREEMENT
                 UNDER THE 2001 NON-QUALIFIED STOCK OPTION PLAN

                          (NON-QUALIFIED STOCK OPTION)

          AGREEMENT  entered into as of the date set forth on the signature page
hereto  by and between Life Medical Sciences, Inc., a Delaware corporation, with
a  business  address of PO Box 219, Little Silver, New Jersey (together with its
subsidiaries,  if  any,  the  "Company"),  and  the undersigned (the "Grantee").

     WHEREAS,  the Company desires to grant to the Grantee a non-qualified stock
option  under  the  Company's  2001  Non-Qualified  Stock Option Plan (the "2001
Plan")  to  acquire  shares  of the Company's Common Stock, $.001 par value (the
"Shares");  and

     WHEREAS,  the  2001 Plan provides that each option is to be evidenced by an
option  agreement,  setting  forth  the  terms  and  conditions  of  the option.

     NOW THEREFORE, in consideration of the premises and of the mutual covenants
and  agreements  contained  herein,  the Company and the Grantee hereby agree as
follows:

     1.     Grant  of  Option.
            -----------------

     The  Company hereby grants to the Grantee a non-qualified stock option (the
"Option") under the 2001 Plan to purchase all or any part of an aggregate of the
number  of Shares set forth on the signature page to this Agreement on the terms
and  conditions  hereinafter  set  forth.  The Option shall NOT be treated as an
incentive  stock  option under Section 422 of the Internal Revenue Code of 1986,
as  amended  (the  "Code").

     2.     Purchase  Price.
            ---------------

     The  purchase price ("Purchase Price") for the Shares covered by the Option
shall  be  the  dollar  amount per share set forth on the signature page to this
Agreement.

<PAGE>
     3.     Time  of  Vesting  and  Exercise  of  Option.
            --------------------------------------------

          Subject  to  Section  4  hereof,  the  Option  shall  vest  and become
exercisable  on  the  dates  and  as to the installment amounts set forth on the
signature  page  to  this  Agreement.  To  the extent the Option (or any portion
thereof)  is  not exercised by the Grantee when it becomes exercisable, it shall
not  expire,  but  shall  be  carried  forward  and  shall  be exercisable, on a
cumulative  basis,  until  the Expiration Date (as hereinafter defined) or until
earlier  termination  as  hereinafter  provided.

     4.     Term;  Extent  of  Exercisability.
            ---------------------------------

     (a)  Term.

     (i)  The  Option shall expire as to each installment amount on the date set
          forth  next  to  each  such  amount  on  the  signature  page  to this
          Agreement  (the "Expiration Date"), subject to earlier termination as
          herein  provided.

     (ii) In  the  event  a Grantee's employment or service is terminated by the
          Company  for  any reason other than "disability", death or for "cause"
          (collectively,  a "Termination without cause"), any Option held by the
          Grantee  shall become one hundred percent vested and fully exercisable
          for  the  one  year period, except in the case of the first year of an
          Option's  term  in  which case the exercise period shall be two years,
          after  the  date  on  which  the  Grantee's  employment  or service is
          terminated  by the Company, but in any event no later than the date of
          expiration  of  the  Option  term.

     (iii) In the event the Grantee's employment or service is terminated by the
          Company for "cause", any Option held by the Grantee shall terminate as
          of  the  date the Grantee's employment or service is terminated by the
          Company  and  the  Grantee  shall  automatically  forfeit  all  shares
          underlying  any  exercised  portion of an Option for which the Company
          has  not  yet  delivered  the  share  certificates, upon refund by the
          Company  of  the  Exercise  Price paid by the Grantee for such shares.

     (iv) In  the event the Grantee's employment or service is terminated by the
          Company  on  account of Grantee's "disability", any Option held by the
          Grantee  shall become one hundred percent vested and fully exercisable
          by  the  Grantee  and shall terminate unless exercised within one year
          after  the  date  on  which  the  Grantee's  employment  or service is
          terminated  by the Company, but in any event no later than the date of
          expiration  of  the  Option  term.

                                      -2-
<PAGE>
     (v)  In  the  event  of  the  death  of the Grantee, any Option held by the
          Grantee  shall become one hundred percent vested and fully exercisable
          by  the Grantee and shall terminate unless exercised within then later
          to  occur of one year after the date on which the Grantee's employment
          or  service  is  terminated  by  the  Company  or six months after the
          probate  of  the Grantee's estate, but in any event, no later than the
          date  of  expiration  of  the  Option  term.

     (vi) In  the  event  a  Grantee  terminates  his  or her employment with or
          services  to  the Company at his or her own volition, any Option which
          is  otherwise  exercisable  by  the  Grantee  shall  terminate  unless
          exercised  within  six months, except in the case of the first year of
          an  Option's term in which case the exercise period shall be one year,
          after  the  date  on which the Grantee's employment with or service to
          the  Company  is  terminated,  but  in no event later than the date of
          expiration  of  the Option term. Any of the Grantee's Options that are
          not  exercisable as of the date on which the Grantee's employment with
          or  service  to  the  Company is terminated shall terminate as of such
          date  unless  the  Committee  determines  otherwise.

     (vii)  Notwithstanding  the  provisions  of  Section 4(a)(ii) above, if the
          Grantee's  employment  or  service  is  terminated  by  the Company on
          account  of  a  "termination without cause" during the one year period
          following  a  Change  of  Control, as such term is defined in the 2001
          Plan,  any Option held by the Grantee shall become one hundred percent
          vested and fully exercisable for the two year period after the date on
          which  the  Grantee's  employment  or  service  is  terminated  by the
          Company,  but  in  no  event  later than the date of expiration of the
          Option  term.

     (viii)  For  purposes  of  this  Section  4(a):

     (A)  The  term  "Company"  shall  mean  the  Company  and  its  parent  and
          subsidiary  corporations,  or  any  successor  thereto.

     (B)  The  term "disability" shall mean a Grantee's becoming disabled within
          the  meaning  of  section  22(e)(3)  of  the  Code.

     (C)  The  term  "termination  for  cause"  shall mean, except to the extent
          specified  otherwise  by the Committee that the Grantee has materially
          breached  his  or her employment or service contract with the Company,
          or  has  been  engaged  in fraud, embezzlement, theft, commission of a
          felony  in  the  course  of  his or her employment or service which is
          injurious  to  the  Company,  or  has  disclosed  trade  secrets  or

                                      -3-
<PAGE>
          confidential  information  of  the  Company to persons not entitled to
          receive  such  information.  If  this  clause  (C)  conflicts with the
          definition  of  "Cause"  or  "termination  for  cause" (or any similar
          definition)  in an employment or service agreement between the Company
          and  the  Grantee,  the  terms  of the employment or service agreement
          shall  govern.

     5.     Manner  of  Exercise  of  Option.
            --------------------------------

          (a)     To  the  extent  that  the  right  to  exercise the Option has
accrued  and  is  in  effect,  the Option may be exercised in full or in part by
giving  written  notice  to the Company stating the number of Shares as to which
the  Option  is  being  exercised  and  accompanied by payment in full for such
Shares.  No  partial  exercise  may be made for less than one hundred (100) full
Shares  of  Common  Stock. Payment shall be made in accordance with the terms of
the  2001  Plan.  Upon  such  exercise,  delivery  of a certificate for paid-up,
non-assessable  Shares  shall  be made at the principal office of the Company to
the  person  exercising the Option, not less than fifteen (15) and not more than
forty-five  (45)  days  from  the  date of receipt of the notice by the Company.

          (b)     The  Company  shall at all times during the term of the Option
reserve  and keep available such number of Shares of its Common Stock as will be
sufficient  to  satisfy  the  requirements  of  the  Option.

     6.     Non-Transferability.
            -------------------

          Except  as  provided  below, only the Grantee or his or her authorized
representative  may exercise rights under an Option.  A Grantee may not transfer
options  except (i) by will, (ii) by the laws of descent and distribution, (iii)
to the Company (as contemplated by Rule 16b-3 of the Exchange Act, (iv) pursuant
to  a  domestic  relations  order  (as  defined under the Code or Title I of the
Employee  Retirement Income Security Act of 1974, as amended, or the regulations
thereunder),  or  (v)  as  otherwise permitted by the Committee.  When a Grantee
dies,  the  personal  representative  or other person entitled to succeed to the
rights  of  the  Grantee  ("Successor  Grantee")  may  exercise  such rights.  A
Successor  Grantee  must furnish proof satisfactory to the Company of his or her
right  to  receive  the  Option under the Grantee's will or under the applicable
laws  of  descent  and  distribution.

     7.     Representation  Letter  and  Investment  Legend.
            -----------------------------------------------

          In the event that for any reason the Shares to be issued upon exercise
of  the  Option  shall not be effectively registered under the Securities Act of
1933  ("  1933 Act"), upon any date on which the Option is exercised in whole or
in part, the person exercising the Option shall give a written representation to
the Company in the form attached hereto as Exhibit 1 and the Company shall place
an  "investment  legend",  so-called,  as  described  in  Exhibit  1,  upon  any
certificate  for  the  Shares  issued  by  reason  of  such  exercise.

                                      -4-
<PAGE>
     8.     Adjustments  on  Changes  in  Capitalization.
            --------------------------------------------

          Adjustments on changes in capitalization and the like shall be made in
accordance  with  the  2001  Plan,  as  in  effect  on  the date of this Option.

     9.     No  Special  Employment  Rights.
            -------------------------------

          The  provisions  of this Section 9 are applicable only to Grantees who
are  employees  of  the  Company.  Nothing  contained  in  this Option shall be
construed or deemed by any person under any circumstances to bind the Company to
continue  the  employment of the Grantee for the period within which this Option
may  be  exercised.  However, during the period of the Grantee's employment, the
Grantee  shall  render diligently and faithfully the services which are assigned
to  the  Grantee from time to time by the Board of Directors or by the executive
officers  of  the Company and shall at no time take any action which directly or
indirectly  would  be  inconsistent  with  the  best  interests of the Company.

     10.     Rights  as  a  Stockholder.
             --------------------------

          The  Grantee shall have no rights as a stockholder with respect to any
Shares  which  may  be  purchased  by exercise of this Option unless and until a
certificate  or  certificates  representing  such  Shares  are  duly  issued and
delivered  to  the  Grantee.

     11.     Withholding  Taxes.
             ------------------

          Whenever  Shares  are  to  be issued upon exercise of this Option, the
Company  shall  have the right to require the Grantee to remit to the Company an
amount  sufficient  to  satisfy  all  Federal,  state  and local withholding tax
requirements  prior  to  the delivery of any certificate or certificates for the
Shares.  The Company may agree to permit the Grantee to authorize the Company to
withhold Shares of Common Stock purchased upon exercise of the Option to satisfy
the  above-mentioned  withholding  requirement;  provided,  however,  no  such
agreement  may  be  made  by an Grantee who is an officer or director within the
meaning of Section 16 of the Securities Exchange Act of 1934, as amended, except
pursuant  to a standing election to so withhold Shares of Common Stock purchased
upon  exercise  of the Option, such election to be made in the form set forth in
Exhibit  2  hereto  and  to  be  made not less than six (6) months prior to such
exercise.  Such election may be revoked only upon providing six (6) months prior
written  notice  to  the  Company.

                                      -5-
<PAGE>

IN  WITNESS  WHEREOF, the Company has caused this Agreement to be executed, and
the  Grantee  has  hereunto  set  his or her hand, all as of the ________, 2002.

                                             LIFE  MEDICAL  SCIENCES,  INC.

                                             By: ______________________________
                                             Title: Chairman, President and CEO

                                             GRANTEE

                                             Print  Name: ___________________
                                             Sign  Name:  ___________________
                                             Address:________________________
                                             ________________________________
                                             Social  Security  Number:
                                             _____________________

                               OPTION INFORMATION
                              -------------------

Total  Number  of  Shares  Underlying  Option:
Purchase  Price  Per  Share:

                          VESTING & EXPIRATION SCHEDULE
                          -----------------------------

VESTING  DATE     NUMBER  OF  SHARES          EXPIRATION  DATE
-------------     ------------------          ----------------

                                      -6-
<PAGE>
                                    EXHIBIT 1
                            TO STOCK OPTION AGREEMENT
                            -------------------------

Gentlemen:

     In  connection  with  the exercise by me of an option to purchase shares of
Common Stock, $.001 par value, of Life Medical Sciences, Inc. (the "Company"), I
hereby  acknowledge  that  I  have  been  informed  as  follows:

     1.     The  shares  of  Common  Stock  of  the  Company  to be issued to me
pursuant  to the exercise of said option (the "Shares") have not been registered
under  the  Securities  Act  of  1933,  as  amended  (the "Securities Act") and,
accordingly,  must  be  held  indefinitely  unless  the  Shares are subsequently
registered  under the Securities Act, or an exemption from such registration is
available.

     2.     Routine sales of securities made in reliance upon Rule 144 under the
Securities  Act  can be made only after the holding period provided by that Rule
has  been  satisfied,  and,  in  any  sale to which that Rule is not applicable,
registration  or  compliance with some other exemption under the Securities Act
will  be  required.

     3.     The  availability  of  Rule  144  is dependent upon adequate current
public information with respect to the Company being available and, at the time
that  I  may desire to make a sale pursuant to the Rule, the Company may neither
wish  nor  be  able  to  comply  with  such  requirement.

     In  consideration  of  the issuance of certificates for the Shares to me, I
hereby  represent  and warrant that I am acquiring the Shares for my own account
for  investment,  and that I will not sell, pledge or transfer the Shares in the
absence  of  an  effective  registration statement covering the same, except as
permitted by the provisions of Rule 144, if applicable, or some other applicable
exemption under the Securities Act. In view of this representation and warranty,
I  agree  that  there  may  be  affixed to the certificates for the Shares to be
issued  to  me, and to all certificates issued hereafter representing the Shares
(until  in the opinion of counsel, which opinion must be reasonably satisfactory
in  form  and substance to counsel for the Company, it is no longer necessary or
required)  a  legend  as  follows:

          "The  securities  represented  by  this  certificate  have  not  been
          registered  under  the  Securities  Act  of 1933, as amended, and were
          acquired  by  the  registered  holder pursuant to a representation and
          warranty  that  such  holder  was  acquiring  the  Shares for his own
          account  and  for  investment,  with  no  intention  of  transfer  or
          disposition  of the same in violation of the registration requirements
          of that Act. These securities may not be sold, pledged, or transferred
          in  the absence of an effective registration statement under such Act,
          or  an opinion of counsel, which opinion is reasonably satisfactory to
          counsel  to  the  Company,  to  the  effect  that  registration is not
          required  under  such  Act."

                                      -7-
<PAGE>
     I  further  agree that the Company may place a stop transfer order with its
transfer  agent,  prohibiting  the transfer of the Shares, so long as the legend
remains  on  the  certificates  representing  the  Shares.

                                          Very  truly  yours,

Dated:  _____________

                                      -8-
<PAGE>

                                    EXHIBIT 2
                            TO STOCK OPTION AGREEMENT
                          ----------------------------

Gentlemen:

     The  undersigned  Grantee  hereby  elects  and  agrees  that,  whenever the
undersigned  exercises  a  stock  option (including any options which now or may
hereafter  be  granted),  Life  Medical  Sciences,  Inc.  (the  "Company") shall
withhold  from that exercise such number of Shares equal in value to the federal
and  state  withholding  taxes  due  upon such exercise. The undersigned further
acknowledges  and  agrees  that this election may not be revoked without six (6)
months'  prior  written  notice  to  the  Company.

                                            GRANTEE:

                                             ______________________
                                                 (Signature)

                                             _______________________
                                                 (Print  Name)

                                      -9-exv4w4

 

Exhibit 4.4

CP SHIPS LIMITED

U.S. EMPLOYEE STOCK PURCHASE PLAN

 

CP SHIPS LIMITED

U.S. EMPLOYEE STOCK PURCHASE PLAN

     1.     Purpose. The purpose of the CP Ships Limited U.S. Employee Stock
Purchase Plan (the “Plan”) is to provide certain employees of certain
Affiliates of CP Ships Limited, a New Brunswick corporation (the
“Corporation”), added incentive to continue in their employment with such
Affiliates and to encourage increased efforts to promote the best interests of
the Corporation and its Affiliates by permitting eligible employees to purchase
shares of common stock of the Corporation (“Common Stock”) at below-market
prices. The Corporation intends to use reasonable efforts to have the Plan
qualify as an “employee stock purchase plan” under section 423 of the Internal
Revenue Code of 1986, as amended (the “Code”). However, the Corporation does
not undertake or represent that the Plan complies or will continue to comply
with section 423 of the Code.

     2.     Definitions.

     For the purposes of the Plan, the following terms shall have the following
meanings:

     (a)     “Affiliate” shall mean any subsidiary corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the
Corporation if each of the corporations other than the last corporation in the
unbroken chain owns stock possessing 50 percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain, as described in section 424(f) of the Code.

     (b)     “Board” shall mean the board of directors of the Corporation.

     (c)     “Change in Control” shall mean:

		
	 	      (i)     the initial acquisition by any person, or any persons acting
jointly or in concert (as determined by the Securities
Act (Ontario)),
whether directly or indirectly, of voting securities of the Corporation
which, together with all other voting securities of the Corporation held
by such persons, constitutes, in the aggregate, more than 20% of all
outstanding voting securities of the Corporation;
	 
	 	     (ii)     an amalgamation, arrangement or other form of business
combination of the Corporation with another corporation which 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)     a sale, disposition, lease or exchange to or with another
person or persons (other than a corporation that is a subsidiary of the
Corporation as defined in the Securities Act (Ontario)) of property of
the Corporation representing 50% or more of the net book value of the
assets of the Corporation, determined as of the date of the most recently
published audited annual or unaudited quarterly interim financial
statements of the Corporation; or

1

 

		
	 	     (iv)     a change in the composition of the Board over any twelve month
period such that more than 50% of the persons who were directors of the
Corporation at the beginning of the period are no longer directors at the
end of the period, unless such change is a consequence of normal
attrition.

     (d)     “Committee” shall mean the Compensation Committee of the Board or any
other committee appointed by the Board consisting of two or more members of the
Board.

     (e)     “Corporation” shall mean CP Ships Limited, and any successor
corporation thereto;

     (f)     “Date of Termination” shall mean the actual date of termination of
employment of an employee or the actual date on which a participant ceases to
be an Eligible Employee, and shall exclude any date with respect to which an
individual is in receipt of or is eligible to receive any statutory,
contractual or common law notice or compensation in lieu thereof or severance
or damage payments following the actual date of employment termination;

     (g)     “Designated Affiliate” shall mean Lykes Lines Limited, LLC, Canada
Maritime Agencies LTD, Cast NA (Agencies) Ltd, Cast NA Trucking Ltd, and any
other Affiliate which has been designated by the Committee as eligible to
participate in the Plan with respect to its eligible employees.

     (h)     “Exercise Date” shall mean the last day of an Offering Period on which
The Toronto Stock Exchange is open for business.

     (i)     “Fair Market Value” of a share of common Stock on a given day shall
mean the last sale price of a share of Common Stock as reported on The Toronto
Stock Exchange on the date as of which such value is being determined, or if
there shall be no reported transactions for such date, on the next preceding
date for which transactions are reported.

     (j)     “Insiders” shall have the meaning attributable to such term in section
627 of The Toronto Stock Exchange company manual.

     (k)     An “Offering Period” shall mean the period beginning on the first day
of each calendar month in which the Plan is in effect and ends on the last day
of such calendar month on which The Toronto Stock Exchange is open for
business.

     (l)     “Purchase Price” of a share of common stock shall mean 85% of the Fair
Market Value of a share of Common Stock on the day preceding the Exercise Date
within an Offering Period. If such price contains a fraction of one tenth of
one cent, the Purchase Price shall be increased to the next higher tenth of one
cent.

     3.     Eligibility.

     (a)     Eligible Employee. For any Offering Period participation in the Plan
shall be open to each employee of the Designated Affiliates, provided that to
be eligible such employee (i) must have at least three continuous months of
employment with the Corporation or an Affiliate and (ii) must customarily work
for at least 20 hours per week as of the first day of any

2

 

 such Offering Period and at least five months in any calendar year. No
right to purchase shares of Common Stock hereunder shall accrue under the Plan
in favor of any person who is not an Eligible Employee as of the first day of
the relevant Offering Period. For purposes of the Plan, the term “employee”
shall not include any individual who performs services for a Designated
Affiliate pursuant to an agreement (written or oral) that classifies such
individual’s relationship with such Designated Affiliate as other than a common
law employee of the Designated Affiliate, regardless of whether such individual
is at any time determined to be a common law employee of the Designated
Affiliate.

     (b)     Limitations. Notwithstanding anything contained in the Plan to the
contrary, no Eligible Employee shall acquire a right to purchase shares of
Common Stock hereunder to the extent that (v) immediately after receiving such
right, such employee owns 5% or more of the total combined voting power or
value of all classes of stock of the Corporation or any Affiliate (including
any stock attributable to such employee under section 424(d) of the Code), or
(w) it would permit such employee to purchase, as of the first day of an
Offering Period, shares of Common Stock (under the Plan and any other plan of
the Corporation or any of its Affiliates described in section 423 of the Code)
at a rate that exceeds $25,000 of Fair Market Value of the Common Stock as of
the beginning of an Offering Period for each calendar year, determined under
section 423(b)(8) of the Code; and (x) a majority of shares of Common Stock
issued under the Plan shall be issued to persons who are not Insiders of the
Corporation, (y) in any one-year period, the number of shares of Common Stock
issued under the Plan, together with shares of Common Stock issued or issuable
under all other compensation plans adopted by the Corporation, shall not exceed
10% of the shares of Corporation’s outstanding Common Stock (determined on the
basis of the number of shares of Common Stock outstanding immediately prior to
the issuance of shares of Common Stock under the Plan and excluding shares of
Common Stock issued pursuant to all of the Corporation’s compensation plans
over the preceding one-year period), and (z) in any one-year period, the number
of shares of Common Stock issued under the Plan to Insiders of the Corporation,
together with shares of Common Stock issued or issuable to Insiders of the
Corporation under all other compensation plans adopted by the Corporation,
shall not exceed either 10% with respect to all Insiders of the Corporation in
the aggregate or 5% with respect to any one Insider of the Corporation’s
outstanding Common Stock (such percentages shall be determined on the basis of
the number of shares of Common Stock outstanding immediately prior to the
issuance of shares of Common Stock under the Plan and shall exclude shares
issued pursuant to all of the Corporation’s compensation plans over the
preceding one-year period).

     (c)     Rights and Privileges. All Eligible Employees who participate in the
Plan shall have the same rights and privileges under the Plan except for
differences which may be mandated by local law and which are consistent with
section 423(b)(5) of the Code.

     4.     Effective Date of Plan. The Plan shall become effective on April 1,
2002. The Plan shall cease to be effective unless, within 12 months before or
after the date of its adoption by the Board, it has been adopted by the
shareholders of the Corporation at a duly called meeting of such shareholders.

     5.     Participation During an Offering Period. Each participant shall be
granted a separate right to purchase shares of Common Stock for each Offering
Period in which such

3

 

 participant participates in the Plan. The right shall be granted on the
first day of the Offering Period and shall be exercised automatically on the
Exercise Date for such Offering Period.

     6.     Basis of Participation.

     (a)     Enrollment; Payroll Deduction. Subject to compliance with applicable
rules prescribed by the Committee, each Eligible Employee shall be entitled to
enroll in the Plan as of the first day of any Offering Period which begins on
or after such employee has become an Eligible Employee.

     To enroll in the Plan, an Eligible Employee shall make a request to the
Corporation or its designated agent, at the time and in the manner prescribed
by the Committee, specifying the amount of payroll deduction to be applied to
the compensation paid to the employee by the employee’s employer while the
employee is a participant in the Plan. The amount of each payroll deduction
specified in such request for each such payroll period shall be a whole
percentage of a participant’s compensation, unless otherwise determined by the
Committee to be a whole dollar amount, in either case not to exceed 10% (or
such higher percentage not exceeding 15% as may be determined by the Committee)
of the participant’s compensation (before withholding or other deductions) paid
to him or her during the Offering Period by the Corporation or any of the
Designated Affiliates. Subject to compliance with applicable rules prescribed
by the Committee, the request shall become effective on the first day of the
Offering Period following the day the Corporation or its designated agent
receives such request.

     Payroll deductions (and any other amount paid under the Plan) shall be
made for each participant in accordance with such participant’s request until
such participant’s participation in the Plan terminates, such participant makes
a new request that changes the amount of payroll deductions, the participant
elects to suspend his or her participation in the Plan, or the Plan terminates,
all as hereinafter provided.

     A participant may change the amount of his or her payroll deduction
effective as of the first day of any Offering Period by so directing the
Corporation or its designated agent at the time and in the manner specified by
the Committee. The Committee may establish rules limiting the frequency with
which participants may change, discontinue and resume payroll deductions under
the Plan and may impose a waiting period on participants wishing to resume
payroll deductions following discontinuance. The Committee also may change the
rules regarding discontinuance of participation or changes in participation in
the Plan. Except to the extent otherwise determined by the Committee, a
participant may not change the amount of his or her payroll deduction effective
as of any date other than the first day of a Offering Period, except that a
participant may elect to suspend his or her participation in the Plan as
provided in Section 8.

     Payroll deductions for each participant shall be credited to a purchase
account established and maintained on behalf of the participant on the books of
the participant’s employer or such employer’s designated agent (a “Purchase
Account”). Unless otherwise specified by the Committee, payroll deductions
shall be credited to a participant’s Purchase Account in local currency. On
each Exercise Date, the amount in each participant’s Purchase Account will be
converted into Canadian dollars and will be applied to purchase on The Toronto
Stock Exchange

4

 

 the number of shares of Common Stock determined by dividing such converted
amount by the Purchase Price for the Offering Period ending on such Exercise
Date. No interest shall accrue at any time for any amount credited to a
Purchase Account of a participant except where otherwise required by local law
as determined by the Committee.

     (b)     Methods of Participation. The Committee may, in its discretion,
establish additional procedures whereby Eligible Employees may participate in
the Plan by means other than payroll deduction, including, but not limited to,
delivery of funds by participants in a lump sum or automatic charges to
participants’ bank accounts. Any method of participating shall be subject to
such rules and conditions as the Committee may establish. The Committee may at
any time amend, suspend or terminate any participation procedures established
pursuant to this paragraph without prior notice to any participant or Eligible
Employee.

     7.     Purchase Accounts and Certificates. The Common Stock purchased on an
Exercise Date by a participant shall be posted to such participant’s Purchase
Account as soon as practicable after, and credited to such participant’s
Purchase Account as of, such Exercise Date. Except as provided in Sections 8
and 9, a participant will be issued his or her shares when his or her
participation in the Plan is terminated or the Plan is terminated.

     Participants may obtain information regarding their Purchase Accounts by
contacting the administrator of the Plan or its duly designated delegate at any
time. In addition, information regarding the entries made to each
participant’s Purchase Account, the number of Common Shares purchased and the
applicable Purchase Price shall be made available, either in writing or
electronically, to each participant on a quarterly basis. In the event that
the maximum number of shares of Common Stock are purchased by the participant
for the Offering Period and cash representing a fractional share remains
credited to the participant’s Purchase Account, such cash shall be held in the
participant’s Purchase Account to purchase shares of Common Stock at the end of
the immediately following Offering Period or subsequent Offering Period. Cash
in excess of a fractional share shall be delivered to the participant as soon
as practicable after the end of an Offering Period. For purposes of the
preceding sentence, the maximum number of shares of Common Stock that may be
purchased by a participant for a Offering Period shall be determined under
Section 3.

     The Committee may permit or require that shares be deposited directly with
a broker designated by the Committee (or a broker selected by the Committee) or
to a designated agent of the Corporation, and the Committee may utilize
electronic or automated methods of share transfer. The Committee may require
that shares be retained with such broker or agent for a designated period of
time (and may restrict dispositions during that period) or may establish other
procedures to permit tracking of disqualifying dispositions of such shares or
to restrict transfer of such shares. The Corporation shall retain the amount
of payroll deductions used to purchase shares of Common Stock as full payment
for the shares of Common Stock and the shares of Common Stock shall then be
fully paid and non-assessable. Dividends (including stock dividends and
dividends in kind) or other distributions in respect of Common Stock purchased
pursuant to the Plan, less any applicable withholding taxes, shall be credited
to each participant’s Purchase Account as of the dividend payment date or
distribution date, as the case may be. The Committee may require that shares
purchased under the Plan shall automatically participate in a dividend
reinvestment plan or program maintained by the Corporation.

5

 

     8.     Suspension or Termination of Participation. A participant may elect at
any time, in the manner prescribed by the Committee, to suspend his or her
participation in the Plan, provided that such election is received by the
Corporation or its designated agent prior to the date specified by the
Committee for suspension of participation during the Offering Period for which
such suspension is to be effective. Upon any suspension of participation, the
participant’s payroll deductions shall cease and the cash credited to such
participant’s Purchase Account on the date of such suspension shall be
delivered as soon as practicable to such participant. A participant who
elects to suspend participation in the Plan shall be permitted to resume
participation in the Plan by making a new request at the time and in the manner
described in Section 6 hereof.

     If the participant dies, terminates employment with a Designated Affiliate
for any reason, or otherwise ceases to be an Eligible Employee, such
participant’s participation in the Plan shall immediately terminate. The cash
credited to such participant’s Purchase Account on his or her Date of
Termination shall be delivered as soon as practicable to such participant or
his or her beneficiary or legal representative, as the case may be, without
interest (except where required by local law), and the cash equivalent for any
fractional share held, and, upon the election of the participant or his or her
beneficiary or legal representative, either certificate(s) for the number of
full shares of Common Stock held for his or her benefit or the fair market
value of such shares shall be delivered to such participant, beneficiary or
legal representative. The cash equivalent for any fractional share held for
the benefit of a participant shall be determined by multiplying the fractional
share by the fair market value of a share of Common Stock on the day
immediately preceding the participant’s Date of Termination. Whether a
termination of employment has occurred shall be determined by the Committee.
The Committee also may establish rules regarding when leaves of absence or
change of employment status will be considered to be a termination of
employment, and the Committee may establish termination of employment
procedures for the Plan which are independent of similar rules established
under other benefit plans of the Corporation and its Affiliates.

     9.     Termination or Amendment of the Plan. The Plan shall terminate on
April 1, 2012, unless earlier terminated by action of the Board or the
Committee, in which case notice of such termination shall be given to all
participants, but any failure to give such notice shall not impair the
effectiveness of the termination. Such termination shall not impair any rights
that under the Plan shall have vested on or prior to the date of such
termination. If at any time the number of shares of Common Stock remaining
available for purchase under the Plan is less than the number of shares of
Common Stock that could be purchased by the Purchase Accounts at such time,
then the Board or Committee may determine an equitable basis of apportioning
available shares of Common Stock among all participants.

     The Board or the Committee may amend the Plan from time to time in any
respect for any reason; provided, however, that no such amendment shall (a)
materially adversely affect any of the terms and conditions under which shares
of Common Stock may be purchased under the Plan during the Offering Period in
which such amendment is to be effected, (b) increase the maximum number of
shares of Common Stock which may be purchased under the Plan, (c) decrease the
Purchase Price of the Common Stock for any Offering Period below the lesser of
85% of the fair market value thereof on the first day of the Offering Period
and 85% of such fair

6

 

 market value on the last day of such Offering Period or (d) adversely
affect the qualification of the Plan under section 423 of the Code, and
provided further, that no such amendment shall be of any effect unless the
prior approval of The Toronto Stock Exchange shall have been obtained.

     Upon termination of the Plan, the number of full shares of Common Stock
held for each participant’s benefit shall be issued as soon as practicable to
such participant and the cash equivalent of any fractional share so held, and
the cash, if any, credited to such participant’s Purchase Account, shall be
distributed (without interest, except where required by local law) as soon as
practicable to such participant.

     10.     Change in Control. In order to maintain the participants’ rights in
the event of any Change in Control of the Company, upon such Change in Control
the current Offering Period shall thereupon end, and the cash credited to all
participants’ Purchase Accounts shall be applied to purchase shares pursuant to
Sections 7 and 8, and the Plan shall immediately thereafter terminate.

     11.     Non-Transferability. Rights acquired under the Plan are not
transferable by a participant otherwise than by will or the laws of descent and
distribution, and must be exercisable during his or her lifetime only by the
participant. If a participant in any manner attempts to transfer, assign or
otherwise encumber his or her rights or interest under the Plan, such act shall
be treated as an election by the participant to discontinue participation in
the Plan pursuant to Section 8.

     12.     Shareholder’s Rights. No Eligible Employee or participant shall by
reason of the Plan have any rights of a shareholder of the Corporation until he
or she shall acquire Common Stock as herein provided. Except as otherwise
provided herein, a participant shall have all the rights of a shareholder upon
the acquisition of shares of Common Stock under the Plan; provided, however,
that such a participant may vote such shares only by providing voting
instructions to the Committee or its designated agent.

     13.     Administration of the Plan. The Plan shall be administered by the
Committee. In addition to the power to amend or terminate the Plan pursuant to
Section 9, the Committee shall have full power and authority to: (i) interpret
and administer the Plan and any instrument or agreement entered into under the
Plan; (ii) establish such rules and regulations and appoint such agents as it
shall deem appropriate for the proper administration of the Plan; (iii)
designate which Affiliates will participate in the Plan; and (iv) make any
other determination and take any other action that the Committee deems
necessary or desirable for administration of the Plan, including by way of
illustration the delegation of any of its power and authority to one or more
individuals. Decisions of the Committee shall be final, conclusive and binding
upon all persons, including the Corporation or its Affiliates, any participant
and any other employee of the Corporation or its Affiliates. A majority of the
members of the Committee may determine its actions and fix the time and place
of its meetings. The Committee may delegate to one or more individuals the
day-to-day administration of the Plan. The Corporation and the Designated
Affiliates shall pay all expenses incurred in the administration of the Plan,
as determined by the Corporation. No Board or Committee member shall be liable
for any action or determination made in good faith with respect to the Plan or
any option granted thereunder.

7

 

     Except as otherwise provided in Section 3 above, the Plan shall be
administered so as to ensure that all participants have the same rights and
privileges in accordance with section 423(b)(5) of the Code.

     14.     Maximum Number of Shares; Adjustments. Subject to adjustment as
hereinafter set forth, the maximum number of shares of Common Stock that may be
purchased under the Plan is 927,000 shares and the maximum number of such
shares which may be issued by the Corporation from its Treasury is 927,000, in
each case as adjusted for stock dividends, stock splits or other similar
corporate changes, subject to any regulatory approval. Common Stock sold
hereunder may be purchased for participants in the open market (on an exchange
or in negotiated transactions) or may be previously acquired treasury shares,
authorized and unissued shares, or any combination thereof. If the Corporation
shall, at any time prior to, on or after the effective date of the Plan, change
its issued Common Stock into an increased number of shares, with or without par
value, through a stock dividend or a stock split, or into a decreased number of
shares, with or without par value, through a combination of shares, then,
effective with the record date for such change, the maximum number of shares of
Common Stock which thereafter may be purchased under the Plan and the maximum
number of shares which thereafter may be purchased during any Offering Period
shall be the maximum number of share which, immediately prior to such record
date, remained available for purchase under the Plan and under any Offering
Period proportionately increased, in case of such stock dividend or stock
split, or proportionately decreased in case of such combination of shares. In
the event of such an occurrence, the Purchase Price shall be similarly
adjusted.

     15.     Miscellaneous. Except as otherwise expressly provided herein, (i) any
request, election or notice under the Plan from an Eligible Employee or
participant shall be transmitted or delivered to the Corporation or its
designated agent and, subject to any limitations specified in the Plan, shall
be effective when received by the Corporation or its designated agent and (ii)
any request, notice or other communication from the Corporation or its
designated agent that is transmitted or delivered to Eligible Employees or
participants shall be effective when so transmitted or delivered. The Plan,
and the Corporation’s obligation to sell and deliver shares of Common Stock
hereunder, shall be subject to all applicable U.S. federal and state laws and
foreign laws, and all rules and regulations thereunder, and to such approval by
any regulatory or governmental agency as may, in the opinion of counsel for the
Corporation, be required.

     16.     Committee Rules for Foreign Jurisdictions. The Committee may adopt
rules or procedures relating to the operation and administration of the Plan to
accommodate the specific requirements of local laws and procedures. Without
limiting the generality of the foregoing, the Committee is specifically
authorized to adopt rules and procedures regarding handling of payroll
deductions, conversion of local currency, payroll tax, withholding procedures
and handling of stock certificates which vary with local requirements.

     17.     No Enlargement of Employee Rights. Nothing contained in the Plan
shall be deemed to give any Eligible Employee the right to be retained in the
employ of the Corporation or any Affiliate or to interfere with the right of
the Corporation or any Affiliate to discharge any Eligible Employee at any
time.

8

 

     18.     Limit of the Corporation’s Liability. The Corporation shall use its
best judgment in selecting the trustee, broker or agent from time to time under
the Plan but neither the Corporation nor any of its directors or officers shall
be under any liability or obligation with respect to any loss or diminution in
the value of the assets held under the Plan by reason of any negligent or
willful act or default on such part of such trustee, broker or agent.

     19.     Market Conditions. Any and all risks resulting from any market
fluctuations or conditions of any nature and affecting the price of shares of
Common Stock are assumed by the participant.

     20.     Schedules. Any schedule(s) attached hereto shall form an integral
part of the Plan. When the Committee designates an Affiliate as eligible to
participate in the Plan, the Committee may amend the schedule(s) as required to
address such eligibility requirements or to address any limitations and
distinctions as may be mandated by local law.

     21.     Governing Law. The Plan, any related agreements (such as an
enrollment form), and all determinations made and actions taken pursuant
thereto, to the extent not otherwise governed by the Code or the law of the
United States, shall be governed by the laws of the state of Delaware and
construed in accordance therewith without giving effect to principles of
conflicts of law.

9

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