Document:

EX-4.1

 EXHIBIT 4.1 

ASHLAND INC. 
 DEFERRED
COMPENSATION PLAN FOR EMPLOYEES (2005) 
 (Effective as of January 1, 2005) 

Whereas, the Ashland Inc. Deferred Compensation Plan for Employees (2005) (hereinafter the “Plan”) was approved by the Board of Directors of
Ashland Inc. (“Ashland”) on November 4, 2004 to be effective January 1, 2005; 
 Whereas, the Plan as approved and effective reserved the
right to amend it; 
 Whereas, the right to amend the Plan was exercised on April 21, 2005 by amending and restating the Plan effective January 1,
2005 and further amending the Plan on October 28, 2005 effective January 1, 2005; 
 Whereas, it is again desired to exercise the right to amend the
Plan and thereby institute the second amendment and restatement of the Plan; 
 Now, Therefore, effective January 1, 2005, except as otherwise
provided herein, the Plan is amended and restated as follows: 
  

	1.	PURPOSE 

 The Ashland Inc. Deferred Compensation Plan for Employees (2005) (the “Plan”)
is maintained primarily for the purpose of providing an opportunity to defer compensation for retirement or other future purposes to a select group of management or highly compensated employees (including former employees that met these criteria
when employed). The obligations of the Company hereunder constitute a mere promise to make the payments provided for in this Plan. No employee, his or her spouse or the estate of either of them shall have, by reason of this Plan, any right, title or
interest of any kind in or to any property of the Company. To the extent any Participant has a right to receive payments from the Company under this Plan, such right shall be no greater than the right of any unsecured general creditor of the
Company. 
 This Plan is a replacement of the prior Ashland Inc. Deferred Compensation Plan amended and restated as of April 1, 2003 (the “Former
Plan”). Compensation deferred under the Former Plan that was vested as of December 31, 2004 shall remain subject to all of the rules, terms and conditions in effect under the Former Plan as of December 31, 2004. For this purpose, the
Compensation deferred under the Former Plan shall include all income, gains and losses connected to such Compensation. 
 The rules, terms and conditions of
this Plan shall apply to Compensation deferred after December 31, 2004, including any Election to defer such Compensation made in 2004. For this purpose, the Compensation deferred after December 31, 2004 shall include all income, gains and losses
connected to such Compensation. Additionally, the rules, terms and conditions of this Plan shall apply to any Compensation that was deferred before January 1, 2005 and that was not vested at December 31, 2004. 

 

	2.	DEFINITIONS 

 The following definitions shall be applicable throughout the Plan: 

(a) “Accounting Date” means the Business Day on which a calculation concerning a Participant’s Compensation Account is performed, or as
otherwise defined by the Committee. 
 (b) “Beneficiary” means the person(s) designated by the Participant in accordance with Section 10, or if no
person(s) is/are so designated, the estate of a deceased Participant. 
 (c) “Board” means the Board of Directors of Ashland Inc. or its designee.

 (d) “Business Day” means a day on which the New York Stock Exchange is open for trading activity. 

(e) “Change in Control” shall be deemed to occur (1) upon approval of the shareholders of Ashland (or if such approval is not required, upon the
approval of the Board) of (A) any consolidation or merger of the Company (a “Business Combination”), other than a consolidation or merger of the Company into or with a direct or indirect wholly-owned subsidiary, in which the shareholders
of the Company own, directly or indirectly, less than 50% of the then outstanding shares of common stock of the Business Combination that are entitled to vote generally for the election of directors of the Business Combination or pursuant to which
shares of the Company’s Common Stock would be converted into cash, securities or other property, other than a merger of the Company in which the holders of the Company’s Common Stock immediately prior to the merger have substantially the
same proportionate ownership of common stock of the surviving corporation immediately after the merger, (B) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets
of Ashland, provided, however, that no sale, lease, exchange or other transfer of all or substantially all the assets of Ashland shall be deemed to occur unless assets constituting 80% of the total assets of Ashland are transferred pursuant to such
sale, lease exchange or other transfer, or (C) adoption of any plan or proposal for the liquidation or dissolution of Ashland, (2) when any person (as defined in Section 3(a)(9) or 13(d) of the Exchange Act), other than Ashland or any subsidiary or
employee benefit plan or trust maintained by Ashland, shall become the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 25% of Ashland’s Common Stock outstanding at the time, without the
approval of the Board, or (3) at any time during a period of two consecutive years, individuals who at the beginning of such period constituted the Board shall cease for any reason to constitute at least a majority thereof, unless the election or
the nomination for election by Ashland’s shareholders of each new director during such two-year period was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such two-year
period. 
 (f) “Code” means the Internal Revenue Code of 1986, as amended. 

(g) “Committee” means the Personnel and Compensation Committee of the Board or its designee. 

(h) “Common Stock” means the common stock, $.01 par value, of Ashland Inc. 

 (i) “Common Stock Fund” means that investment option, approved by the Committee, in which a
Participant’s Compensation Account may be deemed to be invested and may earn income based on a hypothetical investment in Common Stock. 
 (j)
“Company” means, on and after June 30, 2005, Ashland Inc., its divisions, subsidiaries and affiliates. 
 (k) “Compensation” means any
employee compensation determined by the Committee to be properly deferrable under the Plan. 
 (l) “Compensation Account(s)” means the Retirement
Account, the In-Service Account(s), the Excess Plan Account and/or the SERP Account. In-Service Accounts created on and after January 1, 2006, shall be referred to as Flexible Distribution Accounts. 

(m) “Corporate Human Resources” means the Corporate Human Resources Department of the Company. 

(n) “Credit Date” means the date Compensation otherwise would have been paid to the Participant. 

(o) “Deferred Compensation” means the Compensation the Participant elects to defer pursuant to the Plan. 

(p) “Disability” means that a Participant is either: 
  

	1.	Unable to engage in any substantial gainful activity because of a medically determinable physical or mental impairment that is expected to result in death or last for a continuous period of 12 or more months; or

  

	2.	Receiving income replacement benefits for a period of at least three months under an accident and health plan covering employees of the Company because of a medically determinable physical or mental impairment that is
expected to result in death or last for a continuous period of 12 or more months. 

 Corporate Human Resources or its delegate shall determine
whether a Participant has incurred a Disability. 
 (q) “Election” means a Participant’s delivery of a notice of election to defer payment of
all or a portion of his or her Compensation, Excess Payments or SERP Payments under the terms of the Plan. Such notice shall also include instructions specifying the time the deferred Compensation, Excess Payments or SERP Payments will be paid and
the form in which it will be paid. Such elections shall be irrevocable except as otherwise provided in the Plan or pursuant to Treasury guidance. Elections shall be made and delivered as prescribed by the Committee or the Company. 

(r) “Employee” means a full-time, regular salaried employee (which term shall be deemed to include officers) of the Company, its present and future
subsidiary corporations as defined in Section 424 of the Internal Revenue Code of 1986, as amended or its affiliates. 
 (s) “Excess Payments”
means payments made to a Participant pursuant to the Plan and the Excess Plan. These are amounts that a Participant deferred from the Excess Plan to this Plan which were transferred to this Plan at a time when the amounts were payable under the
Excess Plan and held in an Excess Plan Account for the Participant. 
 (t) “Excess Plan” means the Ashland Inc. Nonqualified Excess Benefit
Pension Plan, as it now exists or as it may hereafter be amended. 
 (u) “Fair Market Value” means the price of a share of Common Stock, as
reported on the Composite Tape for New York Stock Exchange issues on the date and at the time designated by the Company. 
 (v) “In-Service
Account” means the account(s) to which the Participant’s Deferred Compensation is credited and from which distributions are made. In-Service Accounts created on and after January 1, 2006, are referred to as Flexible Distribution Accounts.
References to Flexible Distribution Accounts shall include In-Service Accounts created before January 1, 2006. A Participant may not have more than five Flexible Distribution Accounts outstanding. 

(w) “Participant” means an Employee selected by the Committee to participate in the Plan and who has elected to defer payment of all or a portion of
his or her Compensation under the Plan or who otherwise has a Compensation Account in the Plan. 
 (x) “Performance-Based Compensation” means
Compensation that meets requirements specified by the Secretary of the Treasury. Performance-Based Compensation will include the attributes that it is variable, contingent on the satisfaction of pre-established metrics and is not readily
ascertainable at the time of the Election to defer such compensation under Section 8(b). 
 (y) “Plan” means this Ashland Inc. Deferred
Compensation Plan for Employees (2005) as it now exists or as it may hereafter be amended. 
 (z) “Plan Year” means the calendar year. The first
Plan Year of the Plan is 2005. 
 (aa) “Retirement Account” means the account(s) to which the Participant’s Deferred Compensation is credited
and from which distributions are made. 
 (bb) “Secretary of the Treasury” or “Treasury” means the United States Department of Treasury.

 (cc) “Separation from Service” or “Termination” means a termination from employment resulting in a cessation of performing active
service for the Company (other than by reason of death or Disability). An Employee is considered to incur a Separation from Service on the date the Employee terminates employment with the Company or when it is reasonably anticipated that the

 
Employee’s services to the Company will permanently decrease to 20% or less of the average amount of services performed for the Company during the immediately preceding 36 month period (or
period of total employment if less than 36 months). Notwithstanding anything in the foregoing to the contrary, a Separation from Service does not occur as a result of military leave, sick leave or other bona fide leave of absence not exceeding six
months or the period during which the Employee retains a right to reemployment. 
 (dd) “SERP” means the Ashland Inc. Supplemental Early
Retirement Plan for Certain Employees, as it now exists or as it may hereafter be amended. 
 (ee) “SERP Payments” means payments made to a
Participant pursuant to the Plan and the SERP. These are amounts that a Participant deferred from the SERP to this Plan which were transferred to this Plan at a time when the amounts were payable under the SERP and held in a SERP Account for the
Participant. 
 (ff) “Specified Employee” means, for a particular Plan Year, any Employee who was at anytime during the 12 months ending on the
December 31 preceding the start of the particular Plan Year (the Specified Employee identification date) classified on the records of the Company as being in salary grade band 23 or higher. Such an Employee shall be classified as a Specified
Employee as of January 1 of the particular Plan Year (the Specified Employee effective date) and shall remain classified as such for the entirety of such Plan Year. Notwithstanding anything to the contrary, no more than 200 Employees may be
classified as Specified Employees for any Plan Year. Unless otherwise provided in the particular document, this definition of Specified Employee shall apply to all plans, programs, contracts, agreements and other arrangements maintained by the
Company that are subject to Code section 409A. 
 (gg) “Stock Unit(s)” means the share equivalents credited to the Common Stock Fund of a
Participant’s Compensation Account pursuant to Section 6. 
 (hh) “Unforeseeable Emergency” means a severe financial hardship of a
Participant because of 
  

	1.	An illness or accident of the Participant, the Participant’s spouse or dependent (as defined in Internal Revenue Code
 section 152(a)); 

 

	2.	A loss of the Participant’s property due to casualty; or 

  

	3.	Such other similar extraordinary unforeseeable circumstances because of events beyond the control of the Participant. 

The meaning of Unforeseeable Emergency shall be interpreted and applied in accordance with applicable guidance that may be issued by the Treasury. 

 

	3.	SHARES; ADJUSTMENTS IN EVENT OF CHANGES IN CAPITALIZATION 

 (a) Shares Authorized for
Issuance. There shall be reserved for issuance under the Plan 500,000 shares of Common Stock, subject to adjustment pursuant to subsection (c) below. 

(b) Units Authorized for Credit. The maximum number of Stock Units that may be credited to Participants’ Compensation Accounts under the Plan is
1,500,000, subject to adjustment pursuant to subsection (c) below. 
 (c) Adjustments in Certain Events. In the event of any change in the
outstanding Common Stock of the Company by reason of any stock split, share dividend, recapitalization, merger, consolidation, reorganization, combination, or exchange or reclassification of shares, split-up, split-off, spin-off, liquidation or
other similar change in capitalization, or any distribution to common shareholders other than ordinary cash dividends, the number or kind of shares or Stock Units that may be issued or credited under the Plan shall be automatically adjusted so that
the proportionate interest of the Participants shall be maintained as before the occurrence of such event. Such adjustment shall be conclusive and binding for all purposes of the Plan. 

 

	4.	ELIGIBILITY 

 The Committee shall have the authority to select from management and/or highly
compensated Employees those Employees who shall be eligible to participate in the Plan; provided, however, that employees and/or retirees who have elected to defer an amount into this Plan from another plan sponsored or maintained by the Company,
the terms of which allowed such employee or retiree to make such a deferral election into this Plan, shall be considered to be eligible to participate in this Plan. 
  

	5.	ADMINISTRATION 

 Full power and authority to construe, interpret and administer the Plan shall be
vested in the Company and the Committee or one or more of their delegates. This power and authority includes, but is not limited to, selecting Compensation eligible for deferral, establishing deferral terms and conditions and adopting modifications,
amendments and procedures as may be deemed necessary, appropriate or convenient by the Committee. This power and authority also includes, without limitation, the ability to construe and interpret provisions of the Plan, make determinations regarding
law and fact, reconcile any inconsistencies between provisions in the Plan or between provisions of the Plan and any other statement concerning the Plan, whether oral or written, supply any omissions to the Plan or any document associated with the
Plan, and to correct any defect in the Plan or in any document associated with the Plan. Decisions of the Company and the Committee (or their delegates) shall be final, conclusive and binding upon all parties. Day-to-day administration of the Plan
shall be the responsibility of Corporate Human Resources. The administration of and all interpretations under the Plan shall be made consistent with all applicable law. 
  

	6.	PARTICIPANT ACCOUNTS 

 Upon election to participate in the Plan, there shall be established a
Retirement Account and/or Flexible Distribution Account, as designated by the Participant, to which there shall be credited any Deferred Compensation, as of each Credit Date. If timely elected by a Participant, there shall also be established an
Excess Plan Account and/or a SERP Account to which there shall be 

 
credited any distribution from the Excess Plan and/or SERP, as applicable, at the time the Participant is eligible to receive a distribution from such plan and/or plans. Each such Compensation
Account shall be credited (or debited) on each Accounting Date with income (or loss) based upon a hypothetical investment in any one or more of the investment options available under the Plan, as prescribed by the Committee, for the particular
Compensation credited, which may include a Common Stock Fund, as elected by the Participant under the terms of Section 8. The crediting or debiting on each Accounting Date of income (or loss) shall be made for the respective amounts that were
subject to each Election under Section 8. All investments of a Participant’s Compensation Account, including, but not limited to Stock Units in which such Participant’s Compensation Account may be invested in the Common Stock Fund, shall
be on each relevant Accounting Date valued at fair market value. Additionally, all distributions, investments and investment exchanges allowed and made under the Plan shall be as of the relevant Accounting Date at fair market value. 

 

	7.	EARLY WITHDRAWAL 

 (a) Unforeseeable Emergency. A
Participant or a Participant’s legal representative may submit an application for a distribution from either a Retirement Account or a Flexible Distribution Account because of an Unforeseeable Emergency. The amount of the distribution shall not
exceed the amount necessary to satisfy the needs of the Unforeseeable Emergency. Such distribution shall include an amount to pay taxes reasonably anticipated as a result of the distribution. The amount allowed as a distribution under this Section
7(a) shall take into account the extent to which the Unforeseeable Emergency may be relieved by reimbursement, insurance or liquidation of the Participant’s assets (but only to the extent such liquidation would itself not cause a severe
financial hardship). The distribution shall be made in a single sum and paid as soon as practicable after the application for the distribution on account of the Unforeseeable Emergency is approved. The provisions of this Section 7(a) shall be
interpreted and administered in accordance with applicable guidance that may be issued by the Treasury. 
 (b) Disability. A Participant or a
Participant’s legal representative may submit an application for a distribution from the Retirement Account and Flexible Distribution Account because of the Participant’s Disability. The distribution shall be made in a single sum and paid
as soon as practicable after the application for the distribution on account of the Participant’s Disability is approved. The provisions of this Section 7(b) shall be interpreted and administered in accordance with applicable guidance that may
be issued by the Treasury. If such guidance should allow an election of a period or form of distribution at the time of the application for a distribution on account of the Participant’s Disability then the Plan shall allow such elections. 

(c) Prohibition on Acceleration. Except as otherwise provided in the Plan and except as may be allowed in guidance from the Secretary of the Treasury,
distributions from a Participant’s Compensation Account(s) may not be made earlier than the time such amounts would otherwise be distributed pursuant to the terms of the Plan. 

 

	8.	DEFERRAL ELECTION 

 (a) General. The Company or the Committee shall determine the timing of
the filing of the appropriate Election forms. An effective Election may not be revoked or modified except as otherwise determined by the Company or the Committee or as stated herein. In addition to the provisions contained in this Plan, any
deferrals of SERP Payments or Excess Payments must be in accordance with the terms of the SERP or the Excess Plan. 
 (b) Permissible Deferral
Election. 
 (i) A Participant’s Election to defer Compensation may only be made in the taxable year before the Compensation is
earned, with two exceptions. The first exception applies to a Participant during his or her first year of eligibility to participate in the Plan. In that event such a Participant may, if so offered by the Company or the Committee, elect to defer
Compensation for services performed after the Election, provided that the Election is made within 30 days of the date the Participant becomes eligible to participate in the Plan. 

The second exception is with respect to an election to defer Performance-Based Compensation. If Performance-Based Compensation is based on
services of a Participant performed over a period of at least 12 months, then the Participant may make an Election to defer all or part of such Compensation not later than six months before the end of such service period. A Participant’s
Election under this Section 8(b) shall specify the amount or percentage of Compensation deferred and specify the time and form of distribution from among those described in Section 9 of the Plan. Each Election to defer Compensation is a separate
election regarding the time and form of distribution. 
 (ii) An Election to defer Excess Payments or SERP Payments to this Plan must be made
pursuant to the terms of the applicable plan. Such an Election must be made either in a taxable year before the Employee is eligible to participate in the applicable plan or within 30 days of the date the Employee first became eligible to
participate in the applicable plan. Failure to make an Election results in a default Election. If the Employee fails to make an Election under both the Excess Plan and the SERP, then the Employee’s benefit under both such plans will be
transferred at the time such Employee is eligible for a distribution under each such plan to an Excess Plan Account and a SERP Account, as applicable, and shall thereafter be distributed in three annual payments beginning with the January 1
after the Excess Account and/or SERP Account were established (33 1/3% in the first year, 50% of the remaining amount in the second year and the remaining amount in the third year). If the Employee makes an election under either the Excess Plan or
the SERP, but fails to make an election under the other plan, the plan payment for which no election was made shall be the same as the election the Employee made for the other plan. 

(c) Investment Alternatives - Existing Balances. A Participant may elect to change an existing selection as to the investment alternatives in effect
with respect to an existing Compensation Account (in increments prescribed by the Committee or the Company) as often, and with such restrictions, as determined by the Committee or by the Company. If a Participant fails to make an investment
selection for his or her Compensation Account, the Committee or the Company may prescribe a default selection or selections in any manner that appears reasonable in their discretion. 

(d) Change of Beneficiary. A Participant may, at any time, elect to change the designation of a Beneficiary in accordance with Section 10 of the Plan.

 (e) Transition Relief. The Company and the Committee, acting either singly or in concert, have the discretion to grant one or more Participants
the right to cancel any outstanding deferral election prior to December 31, 2005, pursuant to and in accordance with
 Q/A-20 of IRS Notice 2005-1, 2005-2 I.R.B. 274, the terms of which are incorporated herein by reference. 

	9.	DISTRIBUTION 

 (a) Retirement Account. In accordance with a Participant’s Election
under Section 8, but subject to Sections 7 and 11, amounts subject to such Election in the Retirement Account (determined in accordance with Section 6) shall be distributed - 
  

	1.	Upon a Participant’s Separation from Service as either a lump sum or in installments not exceeding 15 years; provided, however, that the distribution to a Participant who is a Specified Employee must not be made
before the earliest of the date that is six months after the Participant’s Separation from Service or the date of the Participant’s death; 

  

	2.	Upon a Participant’s death to the Participant’s Beneficiary as either a lump sum or in installments not exceeding 15 years from the date of the Participant’s death; or 

 

	3.	At a specified time or under a fixed schedule not exceeding 15 years from the Participant’s Separation from Service. 

(b) Flexible Distribution Account. In accordance with a Participant’s Election under Section 8, but subject to Sections 7 and 11, amounts subject
to such Election in the Flexible Distribution Account (determined in accordance with Section 6) shall be distributed - 
  

	1.	Upon a Participant’s death to the Participant’s Beneficiary as either a lump sum or in installments not exceeding 15 years; or 

 

	2.	At a specified time or under a fixed schedule not less than two years measured from the beginning of the Plan Year after the Plan Year in which the Election is made and not exceeding 15 years measured from the beginning
of the Plan Year after the Plan Year in which the Election is made. 

 (c) Excess Plan and SERP Accounts. In accordance with a
Participant’s Election under Section 8, but subject to Sections 7 and 11, amounts subject to such Election in either the Excess Plan Account or SERP Account, or both (determined in accordance with Section 6) shall be distributed - 

 

	1.	Upon a Participant’s Separation from Service and entitlement to a distribution under the Excess Plan and/or SERP, as applicable, as either a lump sum or in installments not exceeding 15 years from the date the
Participant was entitled to a distribution under the Excess Plan and/or SERP, as applicable; provided, however, that the distribution to a Participant who is a Specified Employee must not be made before the earliest of the date that is six months
after the Participant was entitled to a distribution under the Excess Plan and/or SERP, as applicable or the date of the Participant’s death; 

  

	2.	Upon a Participant’s death to the Participant’s Beneficiary as either a lump sum or in installments not exceeding 15 years from the date of the Participant’s death; or 

 

	3.	At a specified time or under a fixed schedule not exceeding 15 years from the date the Participant incurred a Separation from Service and was entitled to a distribution under the Excess Plan and/or SERP, as applicable.

 (d) Medium of Distribution and Default Method. In accordance with the Participant’s Election and within the guidelines
established by the Committee or the Company, a Participant’s Retirement Account, Flexible Distribution Account, Excess Plan Account and/or SERP Account shall be distributed in cash or shares of Common Stock (or a combination of both). To the
extent permissible under law, a Participant may make this Election at any time before a distribution is to be made. If no Election is made by a Participant as to the distribution or form of payment from one or more of his or her Compensation
Account(s), upon the earliest time that a distribution from such account is to be made pursuant to the terms of the Plan, such account shall be paid in cash or shares of Common Stock (or a combination of both) in (i) a lump sum in the case of the
Retirement Account or Flexible Distribution Account, or (ii) as prescribed under the default rules for the Excess Account and SERP Account in Section 8(b)(ii). 

(e) Election to Delay the Time or Change the Form of Distribution. A Participant may make an Election to delay the time of a distribution or change the
form of a distribution, or may elect to do both, with respect to an amount that would be payable pursuant to an Election under paragraphs (a), (b) or (c) of this Section 9, except in the event of a distribution on account of the Participant’s
death, if all of the following requirements are met - 
  

	1.	Such an Election may not take effect until at least 12 months after it is made; 

  

	2.	Any delay to the distribution that would take effect because of the Election is at least to a date five years after the date the distribution otherwise would have begun; and 

 

	3.	In the case of a distribution that would be made under paragraphs (a)(3), (b)(2) or (c)(3) of this Section 9 such an Election may not be made less than 12 months before the date of the first scheduled payment.

 (f) Distribution Exceptions. Notwithstanding anything in the Plan to the contrary, the following shall apply to the distribution of
Contribution Accounts: 
  

	1.	Distribution pursuant to a domestic relations order as described in Section 12; 

  

	2.	Distribution of a Participant’s or Beneficiary’s Compensation Accounts shall be made in a single lump sum payment as soon as possible provided the distribution will be of the entirety of the Participant’s
or Beneficiary’s Compensation Accounts and the distribution does not exceed the adjusted Code section 402(g) limit; and 

  

	3.	Distribution or suspension of contributions may be made in the discretion of the Company for any other permitted purpose under Treas. Reg. section 1.409A-3(j)(4)(ii)-(xiv). 

 

	10.	BENEFICIARY DESIGNATION 

 A Participant may designate one or more persons (including a trust) to
whom or to which payments are to be made if the Participant dies before receiving distribution of all amounts due hereunder. A designation of Beneficiary will be effective only 

 
after the signed Election is filed with Corporate Human Resources while the Participant is alive and will cancel all designations of Beneficiary signed and filed earlier. If the Participant fails
to designate a Beneficiary as provided above or if all of a Participant’s Beneficiaries predecease him or her and he or she fails to designate a new Beneficiary, the remaining unpaid amounts shall be paid in one lump sum to the estate of such
Participant. If all Beneficiaries of the Participant die after the Participant but before complete payment of all amounts due hereunder, the remaining unpaid amounts shall be paid in one lump sum to the estate of the last to die of such
Beneficiaries. 
  

	11.	CHANGE IN CONTROL 

 In the event of a Change in Control, the Company shall reimburse a Participant
for the legal fees and expenses incurred if the Participant is required to seek to obtain or enforce any right to distribution. In the event that it is determined that such Participant is properly entitled to a cash or other distribution hereunder,
such Participant shall also be entitled to interest thereon payable in an amount equivalent to the Prime Rate of Interest quoted by Citibank, N.A. as its prime commercial lending rate on the subject date from the date such distribution should have
been made to and including the date it is made. Notwithstanding any provision of this Plan to the contrary, this Section 11 may not be amended after a Change in Control occurs without the written consent of a majority in number of Participants. 

 

	12.	INALIENABILITY OF BENEFITS 

 The interests of the Participants and their Beneficiaries under the
Plan may not in any way be voluntarily or involuntarily transferred, alienated or assigned, nor subject to attachment, execution, garnishment or other such equitable or legal process. A Participant or Beneficiary cannot waive the provisions of this
Section 12. Notwithstanding anything contained herein to the contrary, valid court ordered divisions of a Participant’s Compensation Account(s) pursuant to a domestic relations order may be recognized and distributions may be made pursuant to
such an order provided that such distributions are consistent with this Section 12. A domestic relations order intended to assign a benefit hereunder to a former spouse of a Participant must be delivered to the Company. The Company will review the
order to determine if it is qualified. Upon notification by the Company that the order is qualified, the spouse will be able to elect a distribution of the assigned benefit by the end of the fifth calendar year following the calendar year during
which the Company notifies the former spouse that the order is qualified. In all events, the entire assigned benefit must be distributed by the end of the fifth calendar year following the calendar year during which the Company notifies the former
spouse that the order is qualified. Notwithstanding anything in the Plan to the contrary, if an assigned benefit is equal to or less than the adjusted Code section 402(g) limit it shall be distributed to the former spouse as soon as administratively
possible. The Company may prescribe procedures that are consistent with this Section 12 and applicable law to implement benefit assignments pursuant to qualified orders. 
  

	13.	CLAIMS 

  

	(a)	Initial Claim - Notice of Denial. If any claim for benefits (within the meaning of section 503 of ERISA) is denied in whole or in part, the Company (which shall include the Company or its delegate throughout this
Section 13) will provide written notification of the denied claim to the Participant or beneficiary, as applicable, (hereinafter referred to as the claimant) in a reasonable period, but not later than 90 days after the claim is received. The 90-day
period can be extended under special circumstances. If special circumstances apply, the claimant will be notified before the end of the 90-day period after the claim was received. The notice will identify the special circumstances. It will also
specify the expected date of the decision. When special circumstances apply, the claimant must be notified of the decision not later than 180 days after the claim is received. 

The written decision will include: 

(i) The reasons for the denial. 

(ii) Reference to the Plan provisions on which the denial is based. The reference need not be to page numbers or to
section headings or titles. The reference only needs to sufficiently describe the provisions so that the provisions could be identified based on that description. 

(iii) A description of additional materials or information needed to process the claim. It will also explain why those
materials or information are needed. 
 (iv) A description of the procedure to appeal the denial, including the time
limits applicable to those procedures. It will also state that the claimant may file a civil action under section 502 of ERISA (ERISA - §29 U.S.C. 1132). The claimant must complete the Plan’s appeal procedure before filing a civil action
in court. 
 If the claimant does not receive notice of the decision on the claim within the prescribed time periods, the
claim is deemed denied. In that event the claimant may proceed with the appeal procedure described below. 
  

	(b)	Appeal of Denied Claim. The claimant may file a written appeal of a denied claim with the Company in such manner as determined from time to time. The Company is the named fiduciary under ERISA for purposes of the
appeal of the denied claim. The Company may delegate its authority to rule on appeals of denied claims and any person or persons or entity to which such authority is delegated may re-delegate that authority. The appeal must be sent at least 60 days
after the claimant received the denial of the initial claim. If the appeal is not sent within this time, then the right to appeal the denial is waived. 

The claimant may submit materials and other information relating to the claim. The Company will appropriately consider these materials and
other information, even if they were not part of the initial claim submission. The claimant will also be given reasonable and free access to or copies of documents, records and other information relevant to the claim. 

Written notification of the decision on the appeal will be delivered to the claimant in a reasonable period, but not later than 60 days after
the appeal is received. The 60-day period can be extended under special circumstances. If special circumstances apply, the claimant will be notified before the end of the 60-day period after the appeal was received. The notice will identify the
special circumstances. It will also specify the expected date of the decision. When special circumstances apply, the claimant must be notified of the decision not later than 120 days after the appeal is received. 

 Special rules apply if the Company designates a committee as the appropriate named fiduciary for
purposes of deciding appeals of denied claims. For the special rules to apply, the committee must meet regularly on at least a quarterly basis. 

When the special rules for committee meetings apply the decision on the appeal must be made not later than the date of the committee meeting
immediately following the receipt of the appeal. If the appeal is received within 30 days of the next following meeting, then the decision must not be made later than the date of the second committee meeting following the receipt of the appeal. 

The period for making the decision on the appeal can be extended under special circumstances. If special circumstances apply, the claimant will
be notified by the committee or its delegate before the end of the otherwise applicable period within which to make a decision. The notice will identify the special circumstances. It will also specify the expected date of the decision. When special
circumstances apply, the claimant must be notified of the decision not later than the date of the third committee meeting after the appeal is received. 

In any event, the claimant will be provided written notice of the decision within a reasonable period after the meeting at which the decision
is made. The notification will not be later than 5 days after the meeting at which the decision is made. 
 Whether the decision on the
appeal is made by a committee or not, a denial of the appeal will include: 
  

	 	(i)	The reasons for the denial. 

  

	 	(ii)	Reference to the Plan provisions on which the denial is based. The reference need not be to page numbers or to section headings or titles. The reference only needs to sufficiently describe the provisions so that the
provisions could be identified based on that description. 

  

	 	(iii)	A statement that the claimant may receive free of charge reasonable access to or copies of documents, records and other information relevant to the claim. 

 

	 	(iv)	A description of any voluntary procedure for an additional appeal, if there is such a procedure. It will also state that the claimant may file a civil action under section 502 of ERISA (ERISA - §29 U.S.C. 1132).

 If the claimant does not receive notice of the decision on the appeal within the prescribed time periods, the appeal is
deemed denied. In that event the claimant may file a civil action in court. The decision regarding a denied claim is final and binding on all those who are affected by the decision. No additional appeals regarding that claim are allowed. 

 

	14.	GOVERNING LAW 

 The provisions of this plan shall be interpreted and construed in accordance with
the laws of the Commonwealth of Kentucky, except to the extent preempted by Federal law. 
  

	15.	AMENDMENTS 

 The Committee may amend, alter or terminate this Plan at any time without the prior
approval of the Board; provided, however, that the Committee may not, without approval by the Board: 
 (a) increase the number of securities that may be
issued under the Plan (except as provided in Section 3(c)); 
 (b) materially modify the requirements as to eligibility for participation in the Plan; or

 (c) otherwise materially increase the benefits accruing to Participants under the Plan. 

 

	16.	COMPLIANCE WITH RULE 16b-3 

 It is the intention of the Company that the Plan comply in all
respects with Rule 16b-3 promulgated under Section 16(b) of the Exchange Act and that Plan Participants remain non-employee directors (“Non-Employee Directors”) for purposes of administering other employee benefit plans of the Company and
having such other plans be exempt from Section 16(b) of the Exchange Act. Therefore, if any Plan provision is found not to be in compliance with Rule 16b-3 or if any Plan provision would disqualify Plan participants from remaining Non-Employee
Directors, that provision shall be deemed amended so that the Plan does so comply and the Plan participants remain Non-Employee Directors, to the extent permitted by law and deemed advisable by the Committee, and in all events the Plan shall be
construed in favor of its meeting the requirements of Rule 16b-3. 
  

	17.	COMPLIANCE WITH 409A 

 It is the intention of the Company and the Committee that the Plan be
administered in compliance with Code section 409A and the applicable guidance issued thereunder by the Secretary of the Treasury. Any provision that is found to be inconsistent with Code section 409A or the applicable guidance issued thereunder by
the Secretary of the Treasury shall be reformed and applied by the Company in a manner consistent with applicable law, as determined by the Company. 
  

	18.	EFFECTIVE DATE 

 The Plan was approved and originally became effective as of January 1, 2005.Eurasian Minerals Inc. - Exhibit 4.1 - Filed by newsfilecorp.com

 

EURASIAN MINERALS INC. 

STOCK OPTION PLAN 

PART 1 
DEFINITIONS 

1.01    Definitions In this Plan the
following words and phrases shall have the following meanings, namely: 

	 	(a) 	
      “Blackout Period” means a period during which
      there is a prohibition on trading in the Company’s securities imposed by
      the Company on Insiders, Employees and non-arm’s length
  Consultants.

	 	 	 
	 	(b) 	
      “Board” means the board of directors of the
      Company or, if the Board so elects, a committee of directors (which may
      consist of only one director) appointed by the Board to administer this
      Plan.

	 	 	 
	 	(c) 	
      “Company” means Eurasian Minerals Inc.

	 	 	 
	 	(d) 	
      “Consultant” means an individual
  who:

(i)        is engaged to
provide, on an ongoing bona fide basis, consulting, technical, management
or other services to the Company or a subsidiary of the Company other than in
relation to a distribution of the Company’s securities, 

(ii)        provides the
services under a written contract between the Consultant (or an entity through
which the Consultant provides the services) and the Company or subsidiary, 

(iii)      in
the Board’s reasonable opinion, spends or will spend a significant amount of
time and attention on the business and affairs of the Company or subsidiary of
the Company, and 

(iv)      has
a relationship with the Company or subsidiary of the Company that enables the
individual to be knowledgeable about the business and affairs of the Company or
subsidiary. 

	 	(e) 	
      “Director” means a director of the Company or any
      of its subsidiaries.

	 	 	 
	 	(f) 	
      “Disinterested Shareholder” means a holder of
      Shares that is not an Insider nor an associate (as defined in the
      Securities Act (British Columbia)) of an
Insider.

Dated:         July 3,
2008 

Last Amended: September 20, 2016 

- 2 - 

	 	(g) 	
      “Employee” means an individual in the employment
      of the Company or any of its subsidiaries or of a company providing
      management or administrative services to the Company.

	 	 	 
	 	(h) 	
      “Exchange” means the TSX Venture
  Exchange.

	 	 	 
	 	(i) 	
      “Insider” means a Director or Officer or a
      director or officer of a subsidiary of the Company.

	 	 	 
	 	(j) 	
      “Market Price” means the price at which the last
      recorded sale of a board lot of Shares took place on the Exchange during
      the trading day immediately preceding the date of granting the Option and,
      if there was no such sale, the closing price on the preceding trading day
      during which there was such a sale.

	 	 	 
	 	(k) 	
      “Officer” means the chair or any vice-chair of the
      Board, the chief executive officer, chief financial officer, chief
      operating officer, president, vice-president, secretary, assistant
      secretary, treasurer or assistant treasurer of the Company or any of its
      subsidiaries or an individual designated as an officer by a resolution of
      the Board or the constating documents of the Company.

	 	 	 
	 	(l) 	
      “Option” means an option to purchase Shares
      granted to an Optionee under this Plan.

	 	 	 
	 	(m) 	
      “Optionee” means a Director, Officer, Employee or
      Consultant granted an Option.

	 	 	 
	 	(n) 	
      “Plan” means this stock option plan, as amended,
      supplemented or restated.

	 	 	 
	 	(o) 	
      “Promoter” means a promoter as defined in the
      Securities Act (British Columbia)

	 	 	 
	 	(p) 	
      “Shares” means common shares of the
  Company.

	 	 	 
	 	(q) 	
      “Significant Shareholder” means a person holding
      more than 10% of the outstanding Shares and who has elected or appointed
      or has the right to elect or appoint one or more Directors or
    Officers.

PART 2 
PURPOSE OF PLAN 

2.01        Purpose
The purpose of this Plan is to attract and retain Employees, Consultants,
Officers and Directors to the Company and to motivate them to advance the
interests of the Company by affording them with the opportunity to acquire an
equity interest in the Company by being granted Options. 

- 3 - 

PART 3 
GRANTING OF OPTIONS 

3.01       
Administration This Plan shall be administered by the Board. 

3.02        Grant by
Resolution The Board may determine by resolution those Employees,
Consultants, Officers and Directors to whom Options should be granted and grant
to them such Options as the Board determines to be appropriate. Such grant shall
be deemed to be a representation by the Company that the Optionee is a Director,
Officer, Employee or Consultant. 

3.03        No
Grants if Listed on NEX The Board shall not grant any Options if the Shares
are listed on the NEX Board of the Exchange or the Company has been given notice
that its listing will or might be transferred to NEX.

3.04        Terms of
Option The Board shall determine and specify in its resolution the number of
Shares that should be placed under Option to each such Employee, Consultant,
Officer or Director, the price per Share to be paid for such Shares upon the
exercise of each such Option, and the period during which such Option may be
exercised. 

3.05        Written
Agreement Every Option shall be evidenced by a written agreement between the
Company and the Optionee substantially in the form attached to this Plan. If
there is any inconsistency between the terms of the agreement and this Plan the
terms of this Plan shall govern. 

3.06        Limitation on
Grants to Consultants. Notwithstanding any other provision of this Plan,
Options may only be granted to Consultants and Employees that are employees of a
company providing management or administrative services to the Company (a
“Consultant Employee”) under this Plan if: 

	 	(a) 	
      the Consultant or Consultant Employee is a natural
      person;

	 	 	 
	 	(b) 	
      the Consultant or Consultant Employee provides bona fide
      services to the Company; and

	 	 	 
	 	(c) 	
      the services provided by the Consultant or Consultant
      Employee (i) are not in connection with the offer or sale of securities in
      capital raising transactions, and (ii) do not directly or indirectly
      promote or maintain a market for the Company’s
  securities.

3.07        Confirmation
of Status The Company and the Optionee are responsible for ensuring and
confirming, for Options granted to Employees and Consultants, that the Optionee
is a bona fide Employee or Consultant, as applicable. 

PART 4 
CONDITIONS GOVERNING THE GRANTING &
EXERCISING OF OPTIONS 

4.01        Agreements
to specify Exercise Period and Price, Vesting and Number of Shares In
granting an Option, the Board must specify a particular time period or periods
during which the Option may be exercised, the exercise price required to
purchase the Shares subject to the Option and any vesting terms and conditions
of the Option, including the number of Shares in respect of which the Option may
be exercised during each such time period. 

- 4 - 

4.02        Minimum
Exercise Price of Options The exercise price of an Option shall not be less
than the Market Price at the time of granting the Option. If the Optionee is
subject to the tax laws of the United States of America and owns (as determined
in accordance with such laws) greater than 10% of the Shares at the time of
granting of the Option the exercise price shall be at least 110% of the Market
Price. No Options shall be granted which are exercisable at a price of less than
C$ 0.05 per Share. 

4.03        Number
of Shares subject to Option The number of Shares reserved for issuance to an
Optionee pursuant to an Option, together with all other stock options granted to
the Optionee in the previous 12 months, shall not exceed, at the time of
granting of the Option: 

	 	(a) 	
      5% of the outstanding Shares, unless the Company has
      obtained Disinterested Shareholder approval;

	 	 	 
	 	(b) 	
      2% of the outstanding Shares, if the Optionee is a
      Consultant; or

	 	 	 
	 	(c) 	
      2% of the outstanding Shares (including all other Shares
      reserved for issuance to all Optionees providing investor relations
      services to the Company), if the Optionee is engaged in providing investor
      relations services to the Company.

4.04        Vesting of
Options Subject to further vesting requirements required by the Board on
granting of an Option, all Options shall vest and be exercisable on the
following terms: 

	 	(a) 	
      If Optionee is Providing Investor Relations Services:
      If the Optionee’s role and duties primarily consist of providing
      investor relations services to the Company, any Option granted to the
      Optionee must vest in stages over at least 12 months with no more than one
      quarter of the Option vesting in any three month period.

	 	 	 
	 	(b) 	
      If there is a Change of Control: If a Change of
      Control is agreed to by the Company or events which might lead to a Change
      of Control are commenced by third parties, all Options, subject to the
      Exchange’s approval (if required), shall vest immediately and be fully
      exercisable notwithstanding the terms thereof. For the purposes hereof
      “Change of Control” shall mean:

(i)        any transaction or
series of related transactions as a result of which any person, entity or group
acquires ownership, after the date of an Option, of at least 20% of the Shares
and they or their representatives become a majority of the Board or assume
control or direction over the management or day-to-day operations of the
Company; or 

(ii)       an amalgamation,
merger, arrangement, business combination, consolidation or other reorganization
of the Company with another entity or the sale or disposition of all or
substantially all of the assets of the Company, as a result of either of which
the Company ceases to exist, be publicly traded or the management of
the Company or Board do not comprise a majority of the management or a majority
of the board of directors, respectively, of the resulting entity, 

- 5 - 

and to permit Optionees to participate
in any of the foregoing, the Board may make appropriate provision for the
exercise of Options conditional upon the Shares so issued being taken-up and
paid for pursuant to any of the foregoing.

4.05        Exercise
of Options if Specified Value Exceeds US$ 100,000 If the Optionee is subject
to the tax laws of the United States of America that part of any Option
entitling the Optionee to purchase Shares having a value of US$ 100,000 or less
shall be treated as an ‘Incentive Stock Option’ under United States Internal
Revenue Code (so that the Optionee may defer the payment of tax on such
Shares until the year in which such Shares are disposed of by the Optionee). For
the purposes hereof value is determined by multiplying the number of shares
which are subject to the Option times the Market Price (at the time of granting
of the Option). That part of any Option on Shares having a value in excess of
US$ 100,000 shall be treated as a non-qualifying stock option for the purposes
of the Code and shall not entitle the Optionee to such tax deferral. 

4.06        Expiry of
Options Each Option shall expire not later than 10 years from the day on
which the Option is granted. 

4.07        Expiry of
Options during or immediately after Blackout Periods If an Option expires
during a Blackout Period then, notwithstanding section 4.06 or the terms of the
Option, the term of the Option shall be extended and the Option shall expire 10
trading days after the termination of the Blackout Period.

4.08        Death or
Disability of Optionee If an Optionee dies or suffers a Disability prior to
the expiry of an Option, the Optionee’s legal representatives, before the
earlier of the expiry date of the Option and the first anniversary of the
Optionee’s death or Disability, may exercise that portion of an Option which has
vested as at the date of death or Disability. For the purposes hereof
“Disability” shall mean any inability of the Optionee arising due to
medical reasons which the Board considers likely to permanently prevent or
substantially impair Optionee being an Employee, Consultant, Officer or
Director.

4.09        Cessation as
an Optionee (Involuntary or not on request) If an Optionee ceases to be a
Director, Officer, Consultant or Employee through:

	 	(a) 	
      removal as a Director;

	 	 	 
	 	(b) 	
      dismissal or termination as an Officer, Consultant or
      Employee (whether or not ‘for cause’); or

	 	 	 
	 	(c) 	
      resignation where such resignation is not made at the
      request of the Board or for the benefit of any Director or
  Officer,

then, notwithstanding the Optionee continuing to fall within
another of such categories, any Option shall terminate immediately on such
removal, dismissal, termination or resignation or such later date not exceeding the first anniversary of such
cessation as may be reasonably determined by the Board and, unless extended,
shall not be exercisable by the Optionee.

- 6 - 

4.10        Cessation as an
Optionee (Voluntary and on request) If an Optionee ceases to be any of a
Director, Officer, Consultant or Employee for any reason except as provided in
sections 4.08 or 4.09, any Option shall be exercisable to the extent that it has
vested and was exercisable as at the date of such cessation, unless further
vesting is permitted by the Board, and must terminate on the earlier of the
expiry date of the Option and: 

	 	(a) 	
      the 90th day after the Optionee ceased to be
      any of a Director, Officer, Consultant or Employee, or such later date not
      exceeding the first anniversary of such cessation as may be reasonably
      determined by the Board; or

	 	 	 
	 	(b) 	
      the earlier of the 90th day and the third
      month after the Optionee ceased to be an Employee or Officer, if the
      Optionee is subject to the tax laws of the United States of
  America.

4.11        No Assignment of
Options No Option or any right thereunder or in respect thereof shall be
transferable or assignable otherwise than by will or pursuant to the laws of
succession.

4.12        Exchange Hold
Period on Options Granted to Insiders, Promoters and Significant
Shareholders All Shares issued upon the exercise of an Option granted to
an Insider, Promoter or Significant Shareholder shall be subject to a four month
hold period from the time the Option was granted and, in accordance with the
Exchange’s policies, the certificates representing such Shares shall be legended
with the Exchange’s prescribed Exchange Hold Period legend.

4.13        Notice of Exercise
of an Option Options shall be exercised only in accordance with the terms
and conditions of the agreements under which they are respectively granted and
shall be exercisable only by notice in writing to the Company. 

4.14        Payment on
Exercise of an Option Options may be exercised in whole or in part at any
time prior to their lapse or termination. Shares purchased by an Optionee on
exercise of an Option shall be fully paid for by certified cheque, bank draft or
wire transfer at the time of their purchase. 

4.15        Conditions to
Issuance of Shares The Board may require, as a condition of the issuance of
Shares or delivery of certificates representing such Shares upon the exercise of
any Option and to ensure compliance with any applicable laws, regulations,
rules, orders and requirements that the Optionee or the Optionee’s heirs,
executors or other legal representatives, as applicable, make such covenants,
agreements and representations as the Board deems necessary or desirable. 

4.16        Withholding
or Deduction of Taxes The Company may deduct, withhold or require an
Optionee, as a condition of exercise of an Option, to withhold, pay, remit or
reimburse any taxes or similar charges, which are required to be paid, remitted
or withheld in connection with the exercise of any Option.

- 7 - 

PART 5 

      RESERVATION OF SHARES FOR OPTIONS

5.01        Sufficient
Authorized Shares to be Reserved Whenever the constating documents of the
Company limit the number of authorized Shares, a sufficient number of Shares
shall be reserved by the Board to satisfy the exercise of Options. Shares that
were the subject of Options that have lapsed or terminated shall thereupon no
longer be in reserve and may once again be subject to an Option. 

5.02        Maximum
Number of Shares to be Reserved Under Plan The aggregate number of Shares
which may be subject to issuance pursuant to Options and any stock options
granted under any other previous or current stock option plan or security
compensation arrangement shall be 10% of the outstanding Shares. 

5.03        Maximum
Number of Shares Reserved for Insiders All Options, together with all of the
Company’s other previously granted stock options, stock option plans, employee
stock purchase plans or any other compensation or incentive mechanisms involving
the issuance or potential issuance of Shares, shall not result, at the time of
granting, in: 

	 	(a) 	
      the number of Shares reserved for issuance pursuant to
      Options granted to Insiders exceeding 10% of the Shares outstanding;
    or

	 	 	 
	 	(b) 	
      the issuance to Insiders, within a 12 month period, of
      Shares totalling in excess of 10% of the Shares
  outstanding,

unless the Disinterested Shareholders have approved thereof.

PART 6 
CAPITAL REORGANIZATIONS 

6.01        Share
Consolidation or Subdivision If the Shares are at any time subdivided or
consolidated, the number of Shares reserved for Options shall be similarly
increased or decreased and the price payable for any Shares that are then
subject to issuance shall be decreased or increased proportionately, as the case
may require, so that upon exercising each Option the same proportionate
shareholdings at the same aggregate purchase price shall be acquired after such
subdivision or consolidation as would have been acquired before. 

6.02        Stock
Dividend If the Shares are at any time changed as a result of the
declaration of a stock dividend thereon, the number of Shares reserved for
Options and the price payable for any Shares that are then subject to issuance
may be adjusted by the Board to such extent as they deem proper in their
absolute discretion. 

6.03        No Fractional
Shares No adjustment made pursuant to this Part shall require the Company to
issue a fraction of a Share and any fractions of a Share shall be rounded up or
down to the nearest whole number, with one-half of a Share being rounded up to
one Share.

6.04        No Adjustment
for Cash Dividends or Rights Offerings No adjustment shall be made to any
Option pursuant to this Part in respect of the payment of any cash dividend or
the distribution to the shareholders of the Company of any rights
to acquire Shares or other securities of the Company. 

- 8 - 

PART 7 
EXCHANGE’S RULES & POLICIES GOVERN
& APPLICABLE LAW

7.01        Exchange’s
Rules and Policies Apply This Plan and the granting and exercise of any
Options are also subject to such other terms and conditions as are set out in
the rules and policies on stock options of the Exchange and any securities
commission having authority and such rules and policies shall be deemed to be
incorporated into and become a part of this Plan. If there is an inconsistency
between the provisions of such rules and policies and of this Plan, the
provisions of such rules and policies shall govern. 

7.02        Compliance
With Applicable Laws Notwithstanding anything herein to the contrary, the
Company shall not be obliged to cause any Shares to be issued or certificates
evidencing Shares to be delivered pursuant to this Plan, where issuance and
delivery is not, or would result in the Company not, being in compliance with
all applicable laws, regulations, rules, orders of governmental or regulatory
authorities and the requirements of the Exchange. If any provision of this Plan,
any Option or any agreement entered into pursuant to this Plan contravenes any
applicable law, rule, regulation or order, or any policy, bylaw or regulation of
the Exchange or any regulatory body having authority over the Company or this
Plan, such provision shall be deemed to be amended to the extent required to
bring such provision into compliance therewith, but the Company shall not be
responsible to pay and shall not incur any penalty, liability or further
obligation in connection therewith. 

7.03        No Obligation
to File Prospectus The Company shall not be liable to compensate any
Optionee and in no event shall it be obliged to take any action, including the
filing of any prospectus, registration statement or similar document, in order
to permit the issuance and delivery of any Shares upon the exercise of any
Option in order to comply with any applicable laws, regulations, rules, orders
or requirements of any securities regulatory authority. 

7.04        Governing Law
This Plan shall be governed by, and construed in accordance with, the laws
of the province of British Columbia. 

PART 8 
AMENDMENT OF PLAN & OPTIONS

8.01        Board
May Amend Plan or Options The Board may amend or terminate this Plan or any
Options but no such amendment or termination, except with the written consent of
the Optionees concerned or unless required to make this Plan or the Options
comply with the rules and policies of the Exchange, shall affect the terms and
conditions of Options which have not then been exercised or terminated. 

8.02        Shareholder
Approval Approval of Disinterested Shareholders for an amendment to this
Plan or any Option shall be required in respect of Options granted to Insiders
involving a reduction of the exercise price, including a reduction effected
by cancelling an existing Option and granting a new Option exercisable at a
lower price within the subsequent 12 month period. 

- 9 - 

Approval by all holders of Shares, whether the holders are
Disinterested Shareholders or not, is required for: 

	 	(a) 	
      an increase in the number of Shares, or percentage of the
      outstanding Shares, reserved for issuance under this Plan;

	 	 	 
	 	(b) 	
      a change from a fixed number to a fixed percentage of the
      outstanding Shares, or from a fixed percentage to a fixed number, in the
      number of Shares reserved for issuance under this Plan;

	 	 	 
	 	(c) 	
      any change in those persons who may be
  Optionees;

	 	 	 
	 	(d) 	
      any change in the method by which the exercise price of
      an Option is determined;

	 	 	 
	 	(e) 	
      an extension of the exercise period (unless the extension
      arises from a Blackout Period) or an amendment to the expiry and
      termination provisions; or

	 	 	 
	 	(f) 	
      an amendment to Part 8 [Amendment of Plan &
      Options] of this Plan.

No approval by any holders of Shares is required for: 

	 	(a) 	
      an amendment to comply with applicable law or rules of
      the Exchange or of a ‘housekeeping’ nature required to correct
      typographical and similar errors;

	 	 	 
	 	(b) 	
      a change to the vesting provisions;

	 	 	 
	 	(c) 	
      a change to the termination provisions, other than an
      extension of an Option to a new expiry date that falls outside the maximum
      term currently permitted by this Plan when the Option was first
      granted;

	 	 	 
	 	(d) 	
      a reduction of the exercise price of an Option, including
      a reduction effected by cancelling an existing Option and granting a new
      Option exercisable at a lower price, or an extension of the exercise
      period, if the Optionee is not an Insider.

8.03        Exchange
Approval Required Any amendment to this Plan or Options shall not become
effective until such amendments have been accepted for filing by the Exchange.

- 10 - 

PART 9
PLAN DOES NOT AFFECT OTHER COMPENSATION
PLANS 

9.01        Other Plans
Not Affected This Plan shall not in any way affect the policies or decisions
of the Board in relation to the remuneration of Directors, Officers, Consultants
and Employees. 

PART 10 
OPTIONEE’S RIGHTS AS A
SHAREHOLDER 

10.01      No Rights Until Option
Exercised An Optionee shall be entitled to the rights pertaining to share
ownership, such as to dividends, only with respect to Shares that have been
fully paid for and issued to the Optionee upon exercise of an Option. 

PART 11 
EFFECTIVE DATE & EXPIRY OF
PLAN 

11.01      Effective Date This
Plan shall become effective upon the later of the acceptance for filing of this
Plan by the Exchange and the approval of this Plan at a meeting of the holders
of Shares. Options may be granted, but not exercised, prior to the receipt of
such approvals. Thereafter, this Plan shall be approved by the holders of the
Shares annually. If such annual approvals are not obtained, Options may no
longer be granted and any Options granted subject to such approvals shall not be
exercisable. 

11.02      Termination This
Plan shall terminate upon a resolution to that effect being passed by the Board.
Any Options shall continue to be exercisable according to their terms after the
termination of this Plan. 

DATED:                          
July 3, 2008 

LAST
AMENDED:        September 20, 2016 

SCHEDULE 

 

	•  [Date of grant (news release)] 
	  
	  
	• [Optionee’s name & address] 
	•  Street 
	•  [city, province] 
	•  [postal code] 

Dear Optionee: 

Re:   Grant of Stock Option to you by the
Company 

Eurasian Minerals Inc. (the “Company”) hereby offers you
a non-assignable option to purchase common shares in the capital of the Company
pursuant to the Company’s Stock Option Plan (the “Plan”), a copy of which
is enclosed with this Agreement. You and the Company confirm that you are a
bona fide Director, Officer, Employee or Consultant, as defined in the
Plan. 

Your stock option is subject to the terms and conditions of the
Plan, which are deemed to be incorporated in this Agreement, and to the
following specific provisions: 

	Number of Shares: 	• 
	 	 
	Exercise Price: 	C$ •  per share 

Expiry Time: 4:00 p.m. (Vancouver time) on •

	Vesting: 	>  Option 1 - [ Immediately 
	  	>  Option 2 - [ 25% on •  and 25%
      each three [ six ] months thereafter 
		>  Option 3 - if milestones or other periods for vesting are
      desired [• % on•  and • %
      on • 

[NTD: insert following Hold Period if
option is granted to Insider, Promoter or Significant Shareholder or is
exercisable at less than Market Price at the time of granting]

	
      Hold Period: 
	
      Without prior written approval of the TSX Venture
      Exchange and compliance with all applicable securities legislation,
      the securities issuable upon the exercise of the stock option
      granted by this Agreement may not be sold, transferred,
      hypothecated or otherwise traded on or through the facilities of
      the TSX Venture Exchange or otherwise in Canada or to or for the
      benefit of a Canadian resident until after the four month
anniversary of the date of this Agreement. Any shares issued to you upon the
exercise of your stock option within this four month period will be endorsed
with a legend to that effect. 

- 2 - 

Subject to first vesting, your stock option may be exercised in
whole or in part at any time before the Expiry Time by notice in writing to the
Company. Such notice shall specify the number of shares with respect to which
you are exercising your stock option and must be accompanied by a cheque in
favour of the Company payable in Canadian funds in full payment of the Exercise
Price for the number of shares then being purchased. 

There may be restrictions imposed under securities legislation
of Canada and your country of residence on your ability to sell shares acquired
on exercise of this stock option. If you are in doubt about the applicable
requirements, you should consult a lawyer.

If you are, or become, a resident of the United States of
America, you hereby represent and warrant to, and covenant with, the Company
(and it is a condition of exercising your stock option and the Company may
require you to execute an instrument in a form acceptable to it confirming the
following) that you:

	 	(a) 	
      will acquire any shares upon the exercise of your option
      as an investment and not with a view to distribution;

	 	 	 
	 	(b) 	
      undertake not to offer or sell or otherwise dispose of
      the shares unless the shares are subsequently registered under the
      Securities Act of 1933 (United States), as amended, or an exemption
      from registration is available;

	 	 	 
	 	(c) 	
      consent to the placing of a restrictive legend on any
      share certificates issued to you should such be necessary in order to
      comply with securities laws applicable to you or the Company;
and

	 	 	 
	 	(d) 	
      acknowledge that securities laws applicable to you or the
      Company may require you to hold any shares issued to you for a certain
      period prior to resale thereof.

You acknowledge and consent to the Company:

	 	(a) 	
      collecting your personal information for the purposes of
      this Agreement;

	 	 	 
	 	(b) 	
      retaining the personal information for as long as
      permitted or required by applicable law or business practices;
  and

	 	 	 
	 	(c) 	
      providing to various governmental and regulatory
      authorities, as may be required by applicable securities laws, stock
      exchange rules, and the rules of the Investment Industry Regulatory
      Organization of Canada (IIROC) or to give effect to this agreement any
      personal information provided by you.

If you are resident in Ontario, you acknowledge you have been
notified by the Company:

- 3 - 

	 	(a) 	
      of the delivery to the Ontario Securities Commission (the
      “OSC”) of your personal information;

	 	 	 
	 	(b) 	
      that your personal information is being collected
      indirectly by the OSC under the authority granted to it in the securities
      legislation;

	 	 	 
	 	(c) 	
      your personal information is being collected for the
      purposes of the administration and enforcement of the securities
      legislation of Ontario; and

	 	 	 
	 	(d) 	
      the contact information of the public official in Ontario
      who can answer questions about the OSC’s indirect collection of personal
      information is

Administrative Support
Clerk
Ontario Securities Commission 
Suite 1903, Box 55, 20 Queen Street
West 
Toronto, Ontario M5H 3S8 
Telephone 416-593-3684, Facsimile
416-593-8252 

If you choose to accept this stock option, please sign in the
space provided below. 

EURASIAN MINERALS INC. 

 

	Per: 	  	 
	 	Authorized Signatory 	 

 

I hereby ACCEPT the above stock option
and
AGREE to the terms and conditions described above,
including the terms
and conditions of the Plan. 

	 	 
	Optionee’s Signature

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