Document:

Ireland, Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, (THE "ACT") OR ANY APPLICABLE STATE
SECURITIES LAWS. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THESE
SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR BY ANY STATE SECURITIES ADMINISTRATION OR REGULATORY AUTHORITY.

SUBSCRIPTION AGREEMENT 

THIS AGREEMENT is made effective as of the 25th day of
March, 2014. 

BETWEEN: 

  
    
      
        NANOMINERALS CORP., a Nevada corporation having
          its registered office at 3500 Lakeside Court, Ste. 206, Reno, NV 89509 

        (hereinafter called "Nanominerals") 

      

    

  

OF THE FIRST PART 

AND: 

  
    
      
        IRELAND INC., a Nevada corporation, having its
          corporate office at 2360 West Horizon Ridge Parkway, Suite 100, Henderson, NV
          89052 

        (hereinafter called the “Company") 

      

    

  

OF THE SECOND PART 

THE PARTIES HEREBY AGREE AS FOLLOWS: 

1.                   
 DEFINITIONS AND INTERPRETATION 

1.1.                   The
following terms will have the following meanings for all purposes of this
Agreement: 

	 	(a) 	
      “Aggregate Purchase Price” means the aggregate purchase
      price payable by Nanominerals to the Company in consideration for the
      purchase and sale of the Units, being $300,000 in the aggregate;

	 	 	 
	 	(b) 	
      “Agreement” means this Subscription Agreement, and all
      schedules and amendments to the Subscription Agreement;

	 	 	 
	 	(c) 	
      “Board” means the Company’s board of directors;

	 	 	 
	 	(d) 	
      “Closing Date” has the meaning set forth in Section 2.2
      of this Agreement;

	 	 	 
	 	(e) 	
      “Common Stock” means the common stock of the Company, par
      value $0.001 per share;

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

	 	 	 
	 	(g) 	
      “Offering” means the offering of the Securities by the
      Company;

	 	 	 
	 	(h) 	
      “Per Unit Purchase Price” means the greater of (i) $0.20
      per Unit, and (ii) the average closing price of the Common Stock over the
      ten (10) trading days immediately preceding the Closing Date;

	 	 	 
	 	(i) 	
      “SEC” means the United States Securities and Exchange
      Commission;

2

	 	(j) 	
      “Securities Act” means the United States Securities Act
      of 1933, as amended;

	 	 	 
	 	(k) 	
      “Securities” means, collectively, the Units, Unit Shares,
      Unit Warrants, Unit Warrant Shares and any other securities of the Company
      issuable pursuant to this Agreement;

	 	 	 
	 	(l) 	
      “Unit” means one (1) unit consisting of one (1) Unit
      Share and one (1) Unit Warrant;

	 	 	 
	 	(m) 	
      “Unit Share” means one (1) share of Common Stock and
      comprising a portion of a Unit;

	 	 	 
	 	(n) 	
      “Unit Warrant” means one (1) share purchase warrant
      entitling the holder thereof to purchase one (1) Unit Warrant Share at the
      Unit Warrant Exercise Price for the Unit Warrant Term, and comprising a
      portion of a Unit, and substantially in the form, and subject to the terms
      and conditions, attached as Schedule “A” to this Agreement;

	 	 	 
	 	(o) 	
      “Unit Warrant Exercise Price” means 200% of the Per Unit
      Purchase Price;

	 	 	 
	 	(p) 	
      “Unit Warrant Share” means one (1) share of Common Stock
      issuable upon exercise of the Unit Warrants; and

	 	 	 
	 	(q) 	
      “Unit Warrant Term” means the period beginning on the
      date the Unit Warrant is issued and ending at 5:00 PM Pacific Time on
      March 29, 2019.

1.2.                   All
dollar amounts referred to in this Agreement are in United States funds, unless
expressly stated otherwise. 

2.                   
 PURCHASE AND SALE OF UNITS 

2.1.                  
Subject to the terms and conditions of this Agreement, on the Closing Date, the
Company agrees to sell to Nanominerals, and Nanominerals agrees to purchase from
the Company, for the Aggregate Purchase Price, that number of Units that is
equal to the Aggregate Purchase Price divided by the Per Unit Purchase Price.

2.2.                   On
or before the Closing Date, Nanominerals will deliver to the Company, via check,
bank draft, cashier’s check or wire transfer or such other form of payment as
may be acceptable to the Company, in its sole discretion, immediately payable
funds equal to the Aggregate Purchase Price. Closing shall occur, and
Nanominerals shall be required to complete the purchase of the Units provided
for in Section 2.1, on the date that is the earlier of (i) 5 business days after
Nanominerals provides the Company with written notice that it intends to proceed
with the purchase and sale of the Units provided for in Section 2.1; and (ii)
August 15, 2014 (the “Closing Date”), at the offices of the Company or such
other location as the parties shall mutually agree.

2.3.                  
Nanominerals agrees that its subscription for the Securities pursuant to Section
2.1 is made for valuable consideration and may not be withdrawn, cancelled,
terminated or revoked by it without prior written consent of the Company.

2.4.                   Notwithstanding
any other provision of this Agreement, the purchase and sale of the Units
contemplated in this Agreement is conditional upon compliance with all
securities laws and other applicable laws of the jurisdiction in which
Nanominerals is resident, including, but not limited to, the availability of an
exemption from the registration requirements of the Securities Act and any
applicable state securities laws. Nanominerals will deliver to the Company all
other documentation, agreements, representations and requisite government forms
that the lawyers for the Company may deem necessary to ensure compliance with
all applicable securities laws and any other applicable laws. 

3

3.                    
RESTRICTED SECURITY AGREEMENTS OF NANOMINERALS 

3.1.                   Nanominerals
represents and warrants to the Company that it is an “affiliate” of the Company
as that term is defined in Rule 405 of the Securities Act, and that, as such, it
is able to fend for itself and is not in need of the protections afforded by the
registration and prospectus requirements of the Securities Act or any applicable
state securities laws.

3.2.                   Nanominerals
acknowledges that the Securities are and will be “restricted securities” within
the meaning of the Securities Act and will be issued to Nanominerals in
accordance with an exemption from the registration requirements of the
Securities Act provided by Section 4(2) of the Securities Act based on the
representations and warranties of Nanominerals in this Agreement.

3.3.                   Nanominerals
agrees not to reoffer, resell, transfer or otherwise dispose of the Securities
unless such reoffer, resale, transfer or disposition is made pursuant to an
effective registration statement under the Securities Act or pursuant to an
available exemption from the registration statement requirements of the
Securities Act and any applicable state securities laws. Nanominerals further
agrees that the Company may refuse to register any resale or transfer of the
Securities not made pursuant to an effective registration statement under the
Securities Act or pursuant to an available exemption from the registration
requirements of the Securities Act and any applicable state securities laws.

3.4.                  
Nanominerals acknowledges and agrees that all certificates representing the
Securities will be endorsed with a restrictive legend substantially similar to
the following or such similar or other legends as deemed advisable by the
lawyers for the Company to ensure compliance with the Securities Act and any
other applicable laws or regulations: 

  
    
      
        “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
          BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
          ACT”) OR ANY STATE SECURITIES LAWS, AND HAVE BEEN ISSUED IN RELIANCE UPON AN
          EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY
          APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE
          OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
          UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO
          AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
          AND ANY APPLICABLE STATE SECURITIES LAWS.” 

      

    

  

4.                    
REPRESENTATIONS AND WARRANTIES OF NANOMINERALS 

Nanominerals covenants, represents and warrants to the Company
as follows, and acknowledges that the Company is relying upon such covenants,
representations and warranties in connection with the sale of the Securities to
it: 

4.1.                  
Nanominerals acknowledges that an investment in the Company is highly
speculative, and involves a high degree of risk as the Company is in the early
stages of developing its business, and may require substantial funds in addition
to the proceeds of this private placement, and that only subscribers who can
afford the loss of their entire investment should consider investing in the
Company. Nanominerals is an investor in securities of businesses in the
development stage and acknowledges that Nanominerals is able to fend for itself,
can bear the economic risk of Nanominerals' investment, and has such knowledge
and experience in financial or business matters such that Nanominerals is
capable of evaluating the merits and risks of an investment in the Company’s
securities as contemplated in this Agreement.

4.2.                   As
an “affiliate” of the Company, Nanominerals has access to all information
regarding the Company and the Company’s business necessary to make a fully
informed decision regarding the purchase the Securities contemplated in this
Agreement. Notwithstanding the forgoing, Nanominerals has had full opportunity
to review the Company’s periodic filings with the SEC pursuant to the Exchange
Act, including, but not limited to, the Company’s annual reports, quarterly
reports, current reports and additional information regarding the business and financial condition of the Company.
Nanominerals has had full opportunity to ask questions and receive answers from
the Company regarding this information, and to review and discuss this
information with its legal and financial advisors. Nanominerals believes it has
received all the information it considers necessary or appropriate for deciding
whether to purchase the Securities and that Nanominerals has had full
opportunity to discuss this information with its legal and financial advisors
prior to executing this Agreement. 

4

4.3.                  Nanominerals
acknowledges that the offering of the Units by the Company has not been reviewed
by the SEC and that the Securities are being and will be, issued by the Company
pursuant to an exemption from registration under the Securities Act. 

4.4.                   Nanominerals
understands that the Securities will be characterized as "restricted securities"
under the Securities Act as they are being acquired from the Company in a
transaction not involving a public offering and that, under the Securities Act
and the regulations promulgated thereunder, such securities may be resold
without registration under the Securities Act only in certain limited
circumstances. Nanominerals represents that Nanominerals is familiar with SEC
Rule 144, as presently in effect, and understands the resale limitations imposed
thereby and by the Securities Act. 

4.5.                   The
Securities are being and will be acquired by Nanominerals for investment for its
own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that Nanominerals has no present intention
of selling, granting any participation in, or otherwise distributing the same.
Nanominerals does not have any contract, undertaking, agreement or arrangement
with any person to sell, transfer or grant participations to such person or to
any third person, with respect to any of the Securities. 

4.6.                  
Nanominerals is not aware of any advertisement or general solicitation regarding
the offer or sale of the Company’s securities. 

4.7.                   This
Agreement has been duly authorized, validly executed and delivered by
Nanominerals. 

5.                    
REPRESENTATIONS BY THE COMPANY 

5.1.                  
The Company represents and warrants to Nanominerals that: 

	 	(a) 	
      The Company is a corporation duly organized, existing and
      in good standing under the laws of the State of Nevada and has the
      corporate power to conduct the business which it conducts and proposes to
      conduct.

	 	 	 
	 	(b) 	
      The Unit Shares and the Unit Warrant Shares, when issued
      in accordance with the terms and conditions of this Agreement and of the
      Unit Warrants, will be duly and validly issued, fully paid and
      non-assessable shares of Common Stock in the capital of the
  Company.

6.                    
MISCELLANEOUS 

6.1.                   Any
notice or other communication given hereunder shall be deemed sufficient if in
writing and sent by registered or certified mail, return receipt requested,
addressed to the Company, at its corporate office at 2360 West Horizon Ridge
Parkway, Suite 100, Henderson, NV 89052, Attention: Douglas D.G. Birnie,
President and CEO, and to Nanominerals at its address indicated on the first
page of this Agreement. Notices shall be deemed to have been given on the date
of mailing, except notices of change of address, which shall be deemed to have
been given when received. 

6.2.                   The
parties agree to execute and deliver all such further documents, agreements and
instruments and take such other and further action as may be necessary or
appropriate to carry out the purposes and intent of this Agreement. 

6.3.                   Nanominerals
agrees that the representations, warranties and covenants of Nanominerals herein
will be true and correct both as of the date of this Agreement and at the
Closing Date, and such representations, warranties and covenants will survive the
completion of the issuance of the Securities. The representations, warranties
and covenants of Nanominerals herein are made with the intent that they be
relied upon by the Company in determining the eligibility of a purchaser of the
Company’s securities and Nanominerals agrees to indemnify the Company and its
respective trustees, affiliates, shareholders, directors, officers, partners,
employees, advisors and agents against all losses, claims, costs, expenses and
damages or liabilities which any of them may suffer or incur which are caused or
arise from a breach thereof. Nanominerals undertakes to immediately notify the
Company at 2360 West Horizon Ridge Parkway, Suite 100, Henderson, NV 89052 of
any change in any statement or other information relating to Nanominerals set
forth herein. 

5

6.4.                   The
obligations of the parties hereunder are subject to receipt of all applicable
regulatory approvals. 

6.5.                   Nanominerals
acknowledges and agrees that all costs incurred by Nanominerals (including any
fees and disbursements of any special counsel retained by Nanominerals) relating
to the sale of the Securities to Nanominerals shall be borne by Nanominerals.

6.6.                   Time
shall be of the essence hereof. 

6.7.                   This
Agreement represents the entire agreement of the parties hereto relating to the
subject matter hereof and there are no representations, covenants or other
agreements relating to the subject matter hereof except as stated or referred to
herein.

6.8.                   The
terms and provisions of this Agreement shall be binding upon and enure to the
benefit of Nanominerals and the Company and their respective heirs, executors,
administrators, successors and permitted assigns; provided that the rights and
obligations set out in this Agreement shall not be assignable by any party
without the prior written consent of the other party.

6.9.                   Nanominerals
acknowledges and agrees that O’Neill Law Corporation has acted solely for the
Company in connection with the preparation, negotiation and execution of this
Agreement, and that Nanominerals has been advised to obtain the advice of
independent legal counsel, and that it has had full opportunity to obtain the
advice of such independent legal counsel, prior to entering into this Agreement.

6.10.                   Neither
this Agreement nor any provision hereof shall be modified, changed, discharged
or terminated except by an instrument in writing signed by the party against
whom any waiver, change, discharge or termination is sought. 

6.11.                   The
invalidity, illegality or unenforceability of any provision of this Agreement
shall not affect the validity, legality or enforceability of any other provision
hereof. 

6.12.                   The
headings used in this Agreement have been inserted for convenience of reference
only and shall not affect the meaning or interpretation of this Agreement or any
provision hereof.

6.13.                   Notwithstanding
the place where this Agreement may be executed by any of the parties hereto, the
parties expressly agree that all the terms and provisions hereof shall be
construed in accordance with and governed by the laws of the State of Nevada.

-- THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK --

6

6.14.                   This
Agreement may be executed in one or more counterparts, all of which will be
considered one and the same agreement and will become effective when one or more
counterparts have been signed by each party and delivered to the other party, it
being understood that all parties need not sign the same counterpart. 

IN WITNESS WHEREOF, this Agreement is executed as of the
day and year first written above. 

NANOMINERALS CORP. 
by its authorized signatory: 

	/s/ Charles
      Ager 	 
	Signature of Authorized Signatory 	 
	  	 
	  	 
	Charles Ager 	 
	Name of Authorized Signatory 	 
	  	 
	  	 
	Chairman 	 
	Position of Authorized Signatory 	 
	  	 
	  	 
	  	 
	IRELAND INC. 	 
	by its authorized signatory: 	 
	  	 
	  	 
	/s/ Douglas
      D.G. Birnie 	 
	Douglas D.G. Birnie 	 
	President and Chief Executive Officer 	 

SCHEDULE A 

Form of Unit Warrant 

 

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE
SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE
SECURITIES LAWS, AND HAVE BEEN AND WILL BE ISSUED IN RELIANCE UPON AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE
STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD
OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

THIS WARRANT MAY ONLY BE EXERCISED BY A PERSON WHO QUALIFIES
AS AN “ACCREDITED INVESTOR” PURSUANT TO RULE 501 OF REGULATION D OF THE
SECURITIES ACT. 

IRELAND INC. 
A
NEVADA CORPORATION 

COMMON STOCK PURCHASE
WARRANT CERTIFICATE NUMBER 026717-00• 

«IssueDate» 

1.            
Issuance 

THIS IS TO CERTIFY THAT, for value received,
{WARRANTHOLDER NAME} of {Street, City, State, Zip} (the “Holder”), shall
have the right to purchase from IRELAND INC., a Nevada corporation (the
“Corporation”), {No. of Units} (No. of Units) fully paid and
non-assessable shares of the Corporation’s common stock (the “Common Stock”),
subject to further adjustment as set forth in Section 6 hereof, at any time
until 5:00 P.M., Pacific time, on the 29th day of March, 2019 (the
“Expiration Date”) at an exercise price of {EXERCISE PRICE} (the "Exercise
Price"). For purposes hereof, “Warrant Shares” means the number of shares of
Common Stock purchasable hereunder from time to time and at any time. 

2.           
 Exercise of Warrants 

This Warrant is exercisable in whole or in partial allotments
of no less than 1,000 shares at the Exercise Price per share payable hereunder,
payable in cash or by certified or official bank check. Upon surrender of this
Warrant Certificate with the annexed Notice of Exercise Form duly executed,
together with payment of the Exercise Price for the Warrant Shares purchased,
the Holder shall be entitled to receive a certificate or certificates for the
Warrant Shares so purchased. No fractional shares shall be issued in connection
with any exercise of this Warrant. In lieu of the issuance of any fractional
share, the Corporation shall round up or down the fractional amount to the
nearest whole number. 

3.           
 Reservation of Shares 

The Corporation hereby agrees that at all times during the term
of this Warrant there shall be reserved for issuance upon exercise of this
Warrant such number of shares of Common Stock as shall be required for issuance
upon exercise of this Warrant.

4.           
 Mutilation or Loss of Warrant 

Upon receipt by the Corporation of evidence satisfactory to it
of the loss, theft, destruction or mutilation of this Warrant, and (in the case
of loss, theft or destruction) receipt of reasonably satisfactory
indemnification, and (in the case of mutilation) upon surrender and cancellation
of this Warrant, the Corporation will execute and deliver a new Warrant of like
tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall
thereupon become void. 

	IRELAND INC. 	2 	 
	Common Stock Purchase 	  	 
	Warrant
      Certificate 026717-00• 	  	 

5.           
 Rights of the Holder 

The Holder shall not, by virtue hereof, be entitled to any
rights of a stockholder in the Corporation, either at law or equity, and the
rights of the Holder are limited to those expressed in this Warrant and are not
enforceable against the Corporation except to the extent set forth herein. 

6.            
Adjustment for Stock Dividends, Stock Splits, Reclassifications, Mergers,
Etc.

The Exercise Price and the number of shares which can be
purchased by the Holder upon the exercise of this Warrant shall be subject to
adjustment in the events and in the manner following: 

	 	(1) 	
      If and whenever the shares at any time outstanding shall
      be, subdivided into a greater or consolidated into a lesser, number of
      shares, the Exercise Price shall be decreased or increased proportionately
      as the case may be; and upon any such subdivision or consolidation, the
      number of shares which can be purchased upon the exercise of this warrant
      certificate shall be increased or decreased proportionately as the case
      may be.

	 	 	 
	 	(2) 	
      In case of any capital reorganization or of any
      reclassification of the capital of the Corporation or in case of the
      consolidation, merger or amalgamation of the Corporation with or into any
      other company, this Warrant shall after such capital reorganization,
      reclassification of capital, consolidation, merger or amalgamation confer
      the right to purchase the number of shares or other securities of the
      Corporation or of the Corporation resulting from such capital
      reorganization, reclassification, consolidation, merger or amalgamation,
      as the case may be, to which the Holder of the shares deliverable at the
      time of such capital reorganization, reclassification of capital,
      consolidation, merger or amalgamation, upon the exercise of this Warrant
      would have been entitled. On such capital reorganization,
      reclassification, consolidation, merger or amalgamation appropriate
      adjustments shall be made in the application of the provisions set forth
      herein with respect to the rights and interest thereafter of the Holder of
      this Warrant so that the provisions set forth herein shall thereafter be
      applicable as nearly as may reasonably be in relation to any shares or
      other securities thereafter deliverable on the exercise of this
      Warrant.

	 	 	 
	 	(3) 	
      The rights of the Holder evidenced hereby are to purchase
      shares prior to or on the date set out on the face of this Warrant. If
      there shall, prior to the exercise of any of the rights evidenced hereby,
      be any reorganization of the authorized capital of the Corporation by way
      of consolidation, merger, subdivision, amalgamation or otherwise, or the
      payment of any stock dividends, then there shall automatically be an
      adjustment in either or both of the number of shares which may be
      purchased pursuant hereto or the price at which such shares may be
      purchased so that the rights evidenced hereby shall thereafter as
      reasonably as possible be equivalent to those originally granted hereby.
      The Corporation shall have the sole and exclusive power to make such
      adjustments as it considers necessary and desirable.

	 	 	 
	 	(4) 	
      The adjustments provided for herein in the subscription
      rights represented by this Warrant are cumulative.

7.           
 Securities Matters 

This Warrant and the Warrant Shares have not been registered
under the Securities Act of 1933, as amended, (the “Securities Act”) and have
been issued to the Holder for investment purposes and not with a view to the
distribution of either the Warrant or the Warrant Shares. Each certificate for
the Warrant, the Warrant Shares and any other security issued or issuable upon
exercise of this Warrant shall contain a legend on the face thereof, in form and
substance satisfactory to counsel for the Corporation, setting forth the
restrictions on transfer contained in this Section. The Holder understands that
this Warrant and the Warrant Shares constitute “restricted securities” under
federal securities laws and acknowledges that Rule 144 of the Securities and
Exchange Commission is not now, and may not in the future be, available for
resale of this 

	IRELAND INC. 	3	 
	Common Stock Purchase 	 	 
	Warrant
      Certificate 026717-00• 	 	 

Warrant and/or the Warrant Shares. By acceptance of this
certificate, the Holder acknowledges and agrees that: 

	 	(1) 	
      The Holder is acquiring this Warrant and the Warrant
      Shares for its own account for investment, with no present intention of
      dividing its interest with others or of reselling or otherwise disposing
      of all or any portion of the same;

	 	 	 
	 	(2) 	
      The Holder does not intend any sale of this Warrant or
      the Warrant Shares either currently or after the passage of a fixed or
      determinable period of time or upon the occurrence or non- occurrence of
      any predetermined event or circumstance;

	 	 	 
	 	(3) 	
      The Holder has no present or contemplated agreement,
      undertaking, arrangement, obligation, indebtedness or commitment providing
      for or which is likely to compel a disposition of this Warrant or the
      Warrant Shares;

	 	 	 
	 	(4) 	
      The Holder is not aware of any circumstances presently in
      existence which are likely in the future to prompt a disposition of this
      Warrant or the Warrant Shares;

	 	 	 
	 	(5) 	
      This Warrant and the Warrant Shares were offered to the
      Holder in direct communication between the Holder and the Corporation and
      not through any advertisement of any kind; and

	 	 	 
	 	(6) 	
      The Holder has the financial means to bear the economic
      risk of the investment which it hereby agrees to
make.

All certificates representing the Warrant Shares will be
endorsed with a legend substantially as follows or such similar or other legends
as deemed advisable by the Corporation to ensure compliance with the Securities
Act and any other applicable laws or regulations: 

“THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS, AND HAVE BEEN
ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.”

In addition, the Holder will comply with all other applicable
securities legislation in addition to the Securities Act to which the Holder is
subject in selling or transferring any Warrants or Warrant Shares and the
Corporation may refuse to register any sale or transfer not in compliance with
such other securities legislation. 

THIS WARRANT MAY ONLY BE EXERCISED BY A PERSON WHO QUALIFIES
AS AN “ACCREDITED INVESTOR” PURSUANT TO RULE 501 OF REGULATION D OF THE
SECURITIES ACT. 

9.            
Payment of Taxes 

The Corporation shall not be required to pay any tax or other
charge imposed in connection with the exercise of this Warrant or a permissible
transfer involved in the issuance of any certificate for shares issuable under
this Warrant in the name other than that of the Holder, and in any such case,
the Corporation shall not be required to issue or deliver any stock certificate
until such tax or other charge has been paid or it has been established to the
Corporation’s satisfaction that no such tax or other charge is due. 

	IRELAND INC. 	4	 
	Common Stock Purchase 	 	 
	Warrant
      Certificate 026717-00• 	 	 

10.         
 Notices 

Any notice required or permitted hereunder shall be given in
writing and shall be deemed effectively given upon, (a) by personal delivery or
telecopy, or (ii) one business day after deposit with a nationally recognized
overnight delivery service such as Federal Express, with postage and fees
prepaid, addressed to each of the other parties thereunto entitled at the
following addresses, or at such other addresses as a party may designate by
written notice to each of the other parties hereto. 

	CORPORATION: 	IRELAND INC. 
	  	Attention: Douglas D.G. Birnie,
    
	  	Chief Executive Officer,
      President & Secretary 
	  	2360 West Horizon Ridge Parkway,
      Suite 100 
	  	Henderson, NV 89052 
	  	  
	  	Tel: (702) 932-0353 
	  	  
	with a copy to: 	NORTHWEST LAW GROUP 
	  	Attention: Christian I. Cu 
	  	#704, 595 Howe Street 
		P.O. Box 35
	  	Vancouver, BC V6C 2T5 
	  	  
	  	Fax: (604) 687-6650 
	  	  
	HOLDER: 	At the address set forth above.
    

11.          
Governing Law 

This Warrant shall be deemed to be a contract made under the
laws of the State of Nevada and for all purposes shall be governed by and
construed in accordance with the laws of the State of Nevada applicable to
contracts to be made and performed entirely within the State of Nevada. 

IN WITNESS WHEREOF, the Corporation has caused this
Warrant to be duly executed and delivered by its duly authorized officer. 

NOTICE OF EXERCISE FORM 

	TO: 	IRELAND INC. 
	  	A Nevada corporation (the
      “Corporation”) 

Dear Sirs: 

The undersigned (the “Subscriber”) hereby exercises the right
to purchase and hereby subscribes for

_________________________________________ 
(Insert No. of
Shares) 

shares (the “Warrant Shares”) of the common stock, par value
$0.001 per share (the “Common Stock”) of IRELAND INC. referred to in the
Common Stock Purchase Warrant Certificate «Warrant_Cert_No» surrendered
herewith according to the terms and conditions thereof and herewith makes
payment by cash, certified check or bank draft of the purchase price in full for
the Warrant Shares in accordance with the Warrant. 

Please issue a certificate for the shares being purchased as
follows in the name of the Subscriber: 

	NAME: 	 
		(Please Print)
	  	 
	ADDRESS: 	 
	 	 
	 	 
	 	 

The Subscriber represents and warrants to the Corporation that:

	(a) 	
      The Subscriber is an “accredited investor” as that term
      is defined in Rule 501 of Regulation D of the Securities Act of 1933 (the
      “Securities Act”)

	 	 
	(b) 	
      The Subscriber has not offered or sold the Warrant Shares
      within the meaning of the Securities Act;

	 	 
	(c) 	
      The Subscriber is acquiring the Warrant Shares for its
      own account for investment purposes, with no present intention of dividing
      its interest with others or of reselling or otherwise disposing of all or
      any portion of the same;

	 	 
	(d) 	
      The Subscriber does not intend any sale of the Warrant
      Shares either currently or after the passage of a fixed or determinable
      period of time or upon the occurrence or non-occurrence of any
      predetermined event or circumstance;

	 	 
	(e) 	
      The Subscriber has no present or contemplated agreement,
      undertaking, arrangement, obligation, indebtedness or commitment providing
      for or which is likely to compel a disposition of the Warrant
    Shares;

	 	 
	(f) 	
      The Subscriber is not aware of any circumstances
      presently in existence which are likely in the future to prompt a
      disposition of the Warrant Shares;

	 	 
	(g) 	
      The Warrant Shares were offered to the Subscriber in
      direct communication between the Subscriber and the Corporation and not
      through any advertisement of any kind;

	 	 
	(h) 	
      The Subscriber has the financial means to bear the
      economic risk of the investment which it hereby agrees to make;

	 	 
	(i) 	
      This subscription form will also confirm the Subscriber’s
      agreement as follows:

	 	(i) 	
      the Warrant Shares have not been registered under the
      Securities Act or applicable state “Blue Sky” laws and, therefore, the
      Warrant Shares may not be resold, transferred or hypothecated except
      pursuant to an effective registration statement under the Securities Act
      and any applicable state “Blue Sky” laws, or an opinion of counsel
      satisfactory to the Corporation to the effect that such registration is
      not necessary. The Corporation will refuse to register any sale or
      transfer of the Warrant Shares not made in compliance with the Securities
      Act or any other applicable securities laws.

	 	 	 
	 	(ii) 	
      Only the Corporation can take action to register the
      Warrant Shares under the Securities Act or applicable state securities law
      or to comply with the requirements for an exemption under the Securities
      Act or applicable state securities law.

	 	 	 
	 	(iii) 	
      The certificates representing the Warrant Shares will be
      endorsed with a legend substantially as follows or such similar or other
      legends as deemed advisable by the lawyers for the Corporation to ensure
      compliance with the Securities Act and any other applicable laws or
      regulations:

  
    
      
        
          
            “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
              BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
              ACT”) OR ANY STATE SECURITIES LAWS, AND HAVE BEEN ISSUED IN RELIANCE UPON AN
              EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY
              APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE
              OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
              UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO
              AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
              AND ANY APPLICABLE STATE SECURITIES LAWS.” 

          

        

      

    

  

Please deliver a warrant certificate in respect of the common
shares referred to in the warrant certificate surrendered herewith but not
presently subscribed for, to the Subscriber. 

DATED this ______day of ___________________________________,
_____. 

	 	Signature of Subscriber: 	 
	 	 	 
	 	 	 
	 	Name of Subscriber: 	 
	 	 	 
	 	 	 
	 	Address of Subscriber:Crailar Technologies Inc.: Exhibit 10.17 - Filed by newsfilecorp.com

Exhibit
10.17

 

2011 FIXED SHARE OPTION
PLAN

 

For: 

CRAILAR TECHNOLOGIES INC.

 

 

 

Crailar Technologies Inc.
Suite 305 –
4420 Chatterton Way, Victoria, British Columbia, Canada, V8X 5J2

__________

CRAILAR TECHNOLOGIES INC. 
(the
“Company”) 

2011 FIXED SHARE OPTION PLAN

Dated for reference effective on September 15, 2011

(amended as approved by the shareholder on November 6, 2013 and
accepted by the TSX 
Venture Exchange on January 21, 2014) 

ARTICLE 1 
PURPOSE AND INTERPRETATION

Purpose and Entire Plan 

1.1       The purpose of this
Plan is to advance the interests of the Company by encouraging equity
participation in the Company through the acquisition of Common Shares of the
Company. It is the intention of the Company that this Plan will at all times be
in compliance with the TSX Venture Policies (or, if applicable, the NEX
Policies) and any inconsistencies between this Plan and the TSX Venture
Policies) (or, if applicable, the NEX Policies) will be resolved in favour of
the latter. 

1.2       This Plan supersedes
and replaces each of the Company’s previously ratified stock option plans and
including, without limitation, the Company’s most recent and existing “2010
Fixed Share Option Plan”, dated as ratified by the Board of the Company on
September 22, 2010, except that any “Options” theretofore granted by the Company
under its 2010 Fixed Share Option Plan are necessarily brought forward by the
Company under this Plan without restriction by the terms and conditions of this
Plan going forward. 

Definitions 

1.3       In this Plan: 

	 	(a) 	
      “Affiliate” means a company that is a parent or
      subsidiary of the Company, or that is controlled by the same entity as the
      Company;

	 	 	 
	 	(b) 	
      “Associate” has the meaning set out in the
      Securities Act;

	 	 	 
	 	(c) 	
      “Black-out Period” means an interval of time
      during which the Company has determined that one or more Participants may
      not trade any securities of the Company because they may be in possession
      of undisclosed material information pertaining to the Company, or when in
      anticipation of the release of quarterly or annual financials, to avoid
      potential conflicts associated with a company’s insider-trading policy or
      applicable securities legislation, (which, for greater certainty, does not
      include the period during which a cease trade order is in effect to which
      the Company or in respect of an Insider, that Insider, is
  subject);

- 2 - 

	 	(d) 	
      “Board” means the board of directors of the
      Company or any committee thereof duly empowered or authorized to grant
      Options under this Plan;

	 	 	 	 
	 	(e) 	
      “Change of Control” includes situations where
      after giving effect to the contemplated transaction and as a result of
      such transaction:

	 	 	 	 
	 		(i) 	
      any one Person holds a sufficient number of voting shares
      of the Company or resulting company to affect materially the control of
      the Company or resulting company, or,

	 	 	 	 
	 		(ii) 	
      any combination of Persons, acting in concert by virtue
      of an agreement, arrangement, commitment or understanding, holds in total
      a sufficient number of voting shares of the Company or its successor to
      affect materially the control of the Company or its successor,

	 	 	 	 
	 			
      where such Person or combination of Persons did not
      previously hold a sufficient number of voting shares to affect materially
      control of the Company or its successor. In the absence of evidence to the
      contrary, any Person or combination of Persons acting in concert by virtue
      of an agreement, arrangement, commitment or understanding, holding more
      than 20% of the voting shares of the Company or resulting company is
      deemed to materially affect control of the Company or resulting
      company;

	 	 	 	 
	 	(f) 	
      “Common Shares” means common shares without par
      value in the capital of the Company providing such class is listed on the
      TSX Venture (or the NEX, as the case may be);

	 	 	 	 
	 	(g) 	
      “Company” means the company named at the top
      hereof and includes, unless the context otherwise requires, all of its
      Affiliates and successors according to law;

	 	 	 	 
	 	(h) 	
      “Consultant” means an individual or Consultant
      Company, other than an Employee, or a Director of the Company
  that:

	 	 	 	 
	 		(i) 	
      is engaged to provide on an ongoing bona fide basis,
      consulting, technical, management or other services to the Company or an
      Affiliate of the Company, other than services provided in relation to a
      Distribution;

	 	 	 	 
	 		(ii) 	
      provides the services under a written contract between
      the Company or an Affiliate and the individual or the Consultant
      Company;

	 	 	 	 
	 		(iii) 	
      in the reasonable opinion of the Company, spends or will
      spend a significant amount of time and attention on the affairs and
      business of the Company or an Affiliate of the Company; and

	 	 	 	 
	 		(iv) 	
      has a relationship with the Company or an Affiliate of
      the Company that enables the individual or Consultant Company to be knowledgeable
      about the business and affairs of the Company;

- 3 - 

	 	(i) 	
      “Consultant Company” means for an individual
      consultant, a company or partnership of which the individual is an
      employee, shareholder or partner;

	 	 	 	 
	 	(j) 	
      “Directors” means the directors of the Company as
      may be elected from time to time;

	 	 	 	 
	 	(k) 	
      “Discounted Market Price” has the meaning assigned
      by Policy 1.1 of the TSX Venture Policies;

	 	 	 	 
	 	(l) 	
      “Disinterested Shareholder Approval” means
      approval by a majority of the votes cast by all the Company’s shareholders
      at a duly constituted shareholders’ meeting, excluding votes attached to
      Common Shares beneficially owned by Insiders who are Service Providers or
      their Associates;

	 	 	 	 
	 	(m) 	
      “Distribution” has the meaning assigned by the
      Securities Act, and generally refers to a distribution of securities by
      the Company from treasury;

	 	 	 	 
	 	(n) 	
      “Effective Date” for an Option means the date of
      grant thereof by the Board;

	 	 	 	 
	 	(o) 	
      “Employee” means:

	 	 	 	 
	 		
      (i) 
	an individual who is considered an employee of the
      Company or its subsidiary under the Income Tax Act (i.e. for whom income
      tax, employment insurance and CPP deductions must be made at
source);
	 	 	 	 
	 		
      (ii) 
	an individual who works full-time for the Company or a subsidiary
      providing services normally provided by an employee and who is subject to
      the same control and direction by the Company over the details and methods
      of work as an employee of the Company, but for whom income tax deductions
      are not made at source; or
	 	 	 	 
	 	 	(iii) 	an individual who works for the Company or its subsidiary on a
      continuing and regular basis for a minimum amount of time per week
      providing services normally provided by an employee and who is subject to
      the same control and direction by the Company over the details and methods
      of work as an employee of the Company, but for whom income tax deductions
      need not be made at source;
	 			
       

	 	(p) 	
      “Exercise Price” means the amount payable per
      Common Share on the exercise of an Option, as determined in accordance
      with the terms hereof;

	 	 	 	 
	 	(q) 	
      “Expiry Date” means the day on which an Option
      lapses as specified in the Option Commitment therefore or in accordance
      with the terms of this Plan;

	 	 	 	 
	 	(r) 	
      “Insider” means an insider as defined in the TSX
      Venture Policies or as defined in securities legislation applicable to the
  Company;

- 4 - 

	 	(s) 	
      “Investor Relations Activities” has the meaning
      assigned by Policy 1.1 of the TSX Venture Policies;

	 	 	 
	 	(t) 	
      “Management Company Employee” means an individual
      employed by a Person providing management services to the Company which
      are required for the ongoing successful operation of the business
      enterprise of the Company, but excluding a Person engaged in Investor
      Relations Activities;

	 	 	 
	 	(u) 	
      “NEX” means a separate board of the TSX Venture
      for companies previously listed on the TSX Venture or the Toronto Stock
      Exchange which have failed to maintain compliance with the ongoing
      financial listing standards of those markets;

	 	 	 
	 	(v) 	
      “NEX Issuer” means a company listed on the
    NEX;

	 	 	 
	 	(w) 	
      “NEX Policies” means the rules and policies of the
      NEX as amended from time to time;

	 	 	 
	 	(x) 	
      “Officer” means a Board appointed officer of the
      Company;

	 	 	 
	 	(y) 	
      “Option” means the right to purchase Common Shares
      granted hereunder to a Service Provider;

	 	 	 
	 	(z) 	
      “Option Commitment” means the notice of grant of
      an Option delivered by the Company hereunder to a Service Provider and
      substantially in the form of Schedule A attached hereto;

	 	 	 
	 	(aa) 	
      “Optioned Shares” means Common Shares that may be
      issued in the future to a Service Provider upon the exercise of an
      Option;

	 	 	 
	 	(bb) 	
      “Optionee” means the recipient of an Option
      hereunder;

	 	 	 
	 	(cc) 	
      “Outstanding Shares” means at the relevant time,
      the number of issued and outstanding Common Shares of the Company from
      time to time;

	 	 	 
	 	(dd) 	
      “Participant” means a Service Provider that
      becomes an Optionee;

	 	 	 
	 	(ee) 	
      “Person includes a company, any unincorporated
      entity, or an individual;

	 	 	 
	 	(ff) 	
      “Plan” means this “2011 Fixed Share Option Plan”,
      the terms of which are set out herein or as may be amended;

	 	 	 
	 	(gg) 	
      “Plan Shares” means the total number of Common
      Shares which may be reserved for issuance as Optioned Shares under the
      Plan as provided in §2.2;

- 5 - 

	 	
      (hh) 
	
      “Regulatory Approval” means the approval of the
      TSX Venture and any other securities regulatory authority that has lawful
      jurisdiction over the Plan and any Options issued hereunder; 

	 	  	  
	 	
      (ii) 
	
      “Securities Act” means the Securities Act,
      R.S.B.C. 1996, c. 418, or any successor legislation; 

	 	  	  
	 	
      (jj) 
	
      “Service Provider” means a Person who is a bona
      fide Director, Officer, Employee, Management Company Employee, Consultant
      or Company Consultant, and also includes a company, 100% of the share
      capital of which is beneficially owned by one or more Service Providers;
      

	 	  	  
	 	
      (kk) 
	
      “Share Compensation Arrangement” means any Option
      under this Plan but also includes any other stock option, stock option
      plan, employee stock purchase plan or any other compensation or incentive
      mechanism involving the issuance or potential issuance of Common Shares to
      a Service Provider; 

	 	  	  
	 	
      (ll) 
	
      “Shareholder Approval” means approval by a
      majority of the votes cast by eligible shareholders of the Company at a
      duly constituted shareholders’ meeting; 

	 	  	  
	 	
      (mm) 
	
      “Take Over Bid” means a take over bid as defined
      in subsection 92(1) of the Securities Act or the analogous provisions of
      securities legislation applicable to the Company; 

	 	  	  
	 	(kk) 	“Termination Date” has the meaning
      ascribed thereto in §3.10; 
	 	  	  
	 	(nn) 	“TSX Venture” means the TSX Venture
      Exchange and any successor thereto; and 
	 	  	  
	 	
      (oo) 
	
      “TSX Venture Policies” means the rules and
      policies of the TSX Venture as amended from time to time.
  

Other Words and Phrases 

1.4       Words and phrases used
in this Plan but which are not defined in the Plan, but are defined in the TSX
Venture Policies (and, if applicable, the NEX Policies), will have the meaning
assigned to them in the TSX Venture Policies (and, if applicable, the NEX
Policies). 

Gender 

1.5       Words importing the
masculine gender include the feminine or neuter, words in the singular include
the plural, words importing a corporate entity include individuals, and vice
versa. 

- 6 - 

ARTICLE 2 
SHARE OPTION PLAN 

Establishment of the Share Option Plan 

2.1       The Plan is hereby
established to recognize contributions made by Service Providers and to create
an incentive for their continuing assistance to the Company and its
Affiliates.

Maximum Plan Shares 

2.2       The maximum aggregate
number of Plan Shares that may be reserved for issuance under the Plan at any
point in time is 8,894,539 Shares (which represents 20% of the Company’s
issued and outstanding Common Shares on the effective date of this Plan), less
any Common Shares reserved for issuance under share options granted under Share
Compensation Arrangements other than this Plan, unless this Plan is amended
pursuant to the requirements of the TSX Venture Policies and, if applicable, the
NEX Policies. 

Eligibility 

2.3       Options to purchase
Common Shares may be granted hereunder to Service Providers from time to time by
the Board. Service Providers that are not individuals will be required to
undertake in writing not to effect or permit any transfer of ownership or option
of any of its securities, or to issue more of its securities (so as to
indirectly transfer the benefits of an Option), as long as such Option remains
outstanding, unless the written permission of the TSX Venture and the Company is
obtained. 

Options Granted Under the Plan 

2.4       All Options granted
under the Plan will be evidenced by an Option Commitment in the form attached as
Schedule A, showing the number of Optioned Shares, the term of the Option, a
reference to vesting terms, if any, and the Exercise Price. 

2.5       Subject to specific
variations approved by the Board, all terms and conditions set out herein will
be deemed to be incorporated into and form part of an Option Commitment made
hereunder. 

Limitations on Issue 

2.6       Subject to §2.10, the
following restrictions on issuances of Options are applicable under the Plan:

	 	(a) 	
      no Service Provider can be granted an Option if that
      Option would result in the total number of Options, together with all
      other Share Compensation Arrangements granted to such Service Provider in
      the previous 12 months, exceeding 5% of the Outstanding Shares unless the
      Company has obtained Disinterested Shareholder Approval to do
  so;

- 7 - 

	 	(b) 	
      the aggregate number of Options granted to Service
      Providers conducting Investor Relations Activities in any 12-month period
      cannot exceed 2% of the Outstanding Shares, calculated at the time of
      grant; and

	 	 	 
	 	(c) 	
      the aggregate number of Options granted to any one
      Consultant in any 12-month period cannot exceed 2% of the Outstanding
      Shares, calculated at the time of grant.

Options Not Exercised 

2.7       In the event an Option
granted under the Plan expires unexercised or is terminated by reason of
dismissal of the Optionee for cause or is otherwise lawfully cancelled prior to
exercise of the Option, the Optioned Shares that were issuable thereunder will
be returned to the Plan and will be eligible for re-issuance. 

Powers of the Board 

2.8       The Board will be
responsible for the general administration of the Plan and the proper execution
of its provisions, the interpretation of the Plan and the determination of all
questions arising hereunder. Without limiting the generality of the foregoing,
the Board has the power to 

	 	(a) 	
      allot Common Shares for issuance in connection with the
      exercise of Options;

	 	 	 
	 	(b) 	
      grant Options hereunder;

	 	 	 
	 	(c) 	
      subject to any necessary Regulatory Approval, amend,
      suspend, terminate or discontinue the Plan, or revoke or alter any action
      taken in connection therewith, except that no general amendment or
      suspension of the Plan will, without the prior written consent of all
      Optionees, alter or impair any Option previously granted under the Plan
      unless the alteration or impairment occurred as a result of a change in
      the TSX Venture Policies or the Company’s tier classification thereunder;
      and

	 	 	 
	 	(d) 	
      delegate all or such portion of its powers hereunder as
      it may determine to one or more committees of the Board, either
      indefinitely or for such period of time as it may specify, and thereafter
      each such committee may exercise the powers and discharge the duties of
      the Board in respect of the Plan so delegated to the same extent as the
      Board is hereby authorized so to do.

Amendment of the Plan by the Board of Directors

2.9       Subject to the
requirements of the TSX Venture Policies and the prior receipt of any necessary
Regulatory Approval, the Board may in its absolute discretion, amend or modify
the Plan or any Option granted as follows: 

	 	(a) 	
      it may make amendments which are of a typographical,
      grammatical or clerical nature only;

- 8 - 

	 	(b) 	
      it may change the vesting provisions of an Option granted
      hereunder;

	 	 	 
	 	(c) 	
      it may change the termination provision of an Option
      granted hereunder which does not entail an extension beyond the original
      Expiry Date of such Option;

	 	 	 
	 	(d) 	
      it may make amendments necessary as a result in changes
      in securities laws applicable to the Company;

	 	 	 
	 	(e) 	
      if the Company becomes listed or quoted on a stock
      exchange or stock market senior to the TSX Venture, it may make such
      amendments as may be required by the policies of such senior stock
      exchange or stock market; and

	 	 	 
	 	(f) 	
      amend this Plan (except for previously granted and
      outstanding Options) to reduce the benefits that may be granted to Service
      Providers (before a particular Option is granted) subject to the other
      terms hereof.

Terms or Amendments Requiring Disinterested Shareholder
Approval 

2.10       The Company shall
obtain Disinterested Shareholder Approval prior to any of the following actions
becoming effective: 

	 	(a) 	
      the Plan, together with all of the Company’s other Share
      Compensation Arrangements, could result at any time in:

	 	 	 	 
	 		(i) 	
      the aggregate number of Common Shares reserved for
      issuance under Options granted to Insiders exceeding 10% of the
      Outstanding Shares (in the event that this Plan is amended to reserve for
      issuance more than 10% of the Outstanding Shares);

	 	 	 	 
	 		(ii) 	
      the number of Optioned Shares issued to Insiders within a
      one-year period exceeding 10% of the Outstanding Shares (in the event that
      this Plan is amended to reserve for issuance more than 10% of the
      Outstanding Shares); or,

	 	 	 	 
	 		(iii) 	
      the issuance to any one Optionee, within a 12-month
      period, of a number of Common Shares exceeding 5% of Outstanding Shares;
      or

	 	 	 	 
	 	(b) 	
      any reduction in the Exercise Price of an Option
      previously granted to an Insider.

Options Granted Under the Company’s Previous Share Option
Plans 

2.11       Any option granted
pursuant to a stock option plan previously adopted by the Board which is
outstanding at the time this Plan comes into effect shall be deemed to have been
issued under this Plan and shall, as of the date this Plan comes into effect, be
governed by the terms hereof. 

- 9 - 

ARTICLE 3 
TERMS AND CONDITIONS OF
OPTIONS 

Exercise Price 

3.1       The Exercise Price of
an Option will be set by the Board on the Effective Date of the Option and
cannot be less than the Discounted Market Price. 

Term of Option 

3.2       An Option can be
exercisable for a maximum of 10 years from the Effective Date. 

Option Amendment 

3.3       Subject to §2.10(b),
the Exercise Price of an Option may be amended only if at least six (6) months
have elapsed since the later of the Effective Date, the date the Common Shares
commenced trading on the TSX Venture, and the date of the last amendment of the
Exercise Price. 

3.4       An Option must be
outstanding for at least one year before the Company may extend its term,
subject to the limits contained in §3.2. 

3.5       Any proposed amendment
to the terms of an Option must be approved by the TSX Venture prior to the
exercise of such Option. 

Vesting of Options 

3.6       Subject to §3.7,
vesting of Options shall be at the discretion of the Board, and will generally
be subject to: 

	 	(a) 	
      the Service Provider remaining employed by or continuing
      to provide services to the Company or any of its Affiliates as well as, at
      the discretion of the Board, achieving certain milestones which may be
      defined by the Board from time to time or receiving a satisfactory
      performance review by the Company or any of its Affiliates during the
      vesting period; or

	 	 	 
	 	(b) 	
      the Service Provider remaining as a Director of the
      Company or any of its Affiliates during the vesting
  period.

Vesting of Options Granted to Consultants Conducting
Investor Relations Activities 

3.7       Notwithstanding §3.6,
Options granted to Consultants conducting Investor Relations Activities will
vest: 

	 	(a) 	
      over a period of not less than 12 months as to 25% on the
      date that is three months from the date of grant, and a further 25% on
      each successive date that is three months from the date of the previous vesting; or

- 10 - 

		(b) 	
      such longer vesting period as the Board may
    determine.

Effect of Take Over Bid 

3.8       If a Take Over Bid is
made to the shareholders, all options issued to directors, officers, employees
and consultants that are not yet fully vested will immediately become fully
vested, unless such options are subject to vesting restrictions in accordance
with TSX Venture policies. 

3.9       If a Take Over Bid is
made to the shareholders generally then the Company shall, immediately upon
receipt of notice of the Take Over Bid, notify each Optionee currently holding
an Option of the Take Over Bid, with full particulars thereof whereupon such
Option may, subject to receipt of Regulatory Approval and notwithstanding §3.6,
§3.7 and §3.7 be immediately exercised in whole or in part by the Optionee. 

Extension of Options Expiring During Blackout
Period 

3.10       Should the Expiry Date
for an Option fall within a Blackout Period, or within nine (9) Business Days
following the expiration of a Blackout Period, such Expiry Date shall be
automatically extended without any further act or formality to that day which is
the tenth (10th) Business Day after the end of the Blackout Period,
such tenth Business Day to be considered the Expiry Date for such Option for all
purposes under the Plan. Notwithstanding §2.8, the tenth Business Day period
referred to in this §3.10 may not be extended by the Board. 

Optionee Ceasing to be Director, Employee or Service
Provider 

3.11       No Option may be
exercised after the earlier of the date the Service Provider has left his
employ/office and the date that the Service Provider has been advised by the
Company that his services are no longer required or his service contract has
expired (the “Termination Date”), except as follows: 

	 	(a) 	
      in the case of the death of an Optionee, any vested
      Option held by him at the date of death will become exercisable by the
      Optionee’s lawful personal representatives, heirs or executors until the
      earlier of one year after the date of death of such Optionee and the date
      of expiration of the term otherwise applicable to such Option;

	 	 	 
	 	(b) 	
      Options granted to a Service Provider conducting Investor
      Relations Activities will expire 90 days after the Termination Date, but
      only to the extent that such Option has vested as at the Termination
      Date;

	 	 	 
	 	(c) 	
      any Option granted to an Optionee other than one
      conducting Investor Relations Activities will expire one year after the
      Termination Date, but only to the extent that such Option has vested as at
      the Termination Date; and

	 	 	 
	 	(d) 	
      in the case of an Optionee being dismissed from
      employment or service for cause, such Optionee’s Options, whether or not vested at the date of
dismissal will immediately terminate without right to exercise same. 

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Non Assignable 

3.12       Subject to §3.11, all
Options will be exercisable only by the Optionee to whom they are granted and
will not be assignable or transferable. 

Adjustment of the Number of Optioned Shares 

3.13       The number of Common
Shares subject to an Option will be subject to adjustment in the events and in
the manner following 

	 	(a) 	
      in the event of a subdivision of Common Shares as
      constituted on the date hereof, at any time while an Option is in effect,
      into a greater number of Common Shares, the Company will thereafter
      deliver at the time of purchase of Optioned Shares hereunder, in addition
      to the number of Optioned Shares in respect of which the right to purchase
      is then being exercised, such additional number of Common Shares as result
      from the subdivision without an Optionee making any additional payment or
      giving any other consideration therefore;

	 	 	 
	 	(b) 	
      in the event of a consolidation of the Common Shares as
      constituted on the date hereof, at any time while an Option is in effect,
      into a lesser number of Common Shares, the Company will thereafter deliver
      and an Optionee will accept, at the time of purchase of Optioned Shares
      hereunder, in lieu of the number of Optioned Shares in respect of which
      the right to purchase is then being exercised, the lesser number of Common
      Shares as result from the consolidation;

	 	 	 
	 	(c) 	
      in the event of any change of the Common Shares as
      constituted on the date hereof, at any time while an Option is in effect,
      the Company will thereafter deliver at the time of purchase of Optioned
      Shares hereunder the number of shares of the appropriate class resulting
      from the said change as an Optionee would have been entitled to receive in
      respect of the number of Common Shares so purchased had the right to
      purchase been exercised before such change;

	 	 	 
	 	(d) 	
      in the event of a capital reorganization,
      reclassification or change of outstanding equity shares (other than a
      change in the par value thereof) of the Company, a consolidation, merger
      or amalgamation of the Company with or into any other company or a sale of
      the property of the Company as or substantially as an entirety at any time
      while an Option is in effect, an Optionee will thereafter have the right
      to purchase and receive, in lieu of the Optioned Shares immediately
      theretofore purchasable and receivable upon the exercise of the Option,
      the kind and amount of shares and other securities and property receivable
      upon such capital reorganization, reclassification, change, consolidation,
      merger, amalgamation or sale which the holder of a number of Common Shares
      equal to the number of Optioned Shares immediately theretofore purchasable
      and receivable upon the exercise of the Option would have received as a
      result thereof.

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      The subdivision or consolidation of Common Shares at any
      time outstanding (whether with or without par value) will not be deemed to
      be a capital reorganization or a reclassification of the capital of the
      Company for the purposes of this §3.13;

	 	 	 
	 	(e) 	
      an adjustment will take effect at the time of the event
      giving rise to the adjustment, and the adjustments provided for in this
      section are cumulative;

	 	 	 
	 	(f) 	
      the Company will not be required to issue fractional
      shares in satisfaction of its obligations hereunder. Any fractional
      interest in a Common Share that would, except for the provisions of this
      §3.13, be deliverable upon the exercise of an Option will be cancelled and
      not be deliverable by the Company; and

	 	 	 
	 	(g) 	
      if any questions arise at any time with respect to the
      Exercise Price or number of Optioned Shares deliverable upon exercise of
      an Option in any of the events set out in this §3.13, such questions will
      be conclusively determined by the Company’s auditors, or, if they decline
      to so act, any other firm of Chartered Accountants, in Vancouver, British
      Columbia (or in the city of the Company’s principal executive office) that
      the Company may designate and who will be granted access to all
      appropriate records. Such determination will be binding upon the Company
      and all Optionees.

ARTICLE 4 
COMMITMENT AND EXERCISE
PROCEDURES 

Option Commitment 

4.1       Upon grant of an Option
hereunder, an authorized officer of the Company will deliver to the Optionee an
Option Commitment detailing the terms of such Options and upon such delivery the
Optionee will be subject to the Plan and have the right to purchase the Optioned
Shares at the Exercise Price set out therein subject to the terms and conditions
hereof. 

Manner of Exercise 

4.2       An Optionee who wishes
to exercise his Option may do so by delivering 

	 	(a) 	
      a written notice to the Company specifying the number of
      Optioned Shares being acquired pursuant to the Option; and

	 	 	 
	 	(b) 	
      a certified cheque, wire transfer or bank draft payable
      to the Company for the aggregate Exercise Price by the Optioned Shares
      being acquired.

Tax Withholding and Procedures 

4.3       Notwithstanding
anything else contained in this Plan, the Company may, from time to time,
implement such procedures and conditions as it determines appropriate with
respect to the withholding and remittance of taxes imposed under applicable law,
or the funding of related amounts for which liability may arise under such
applicable law. Without limiting the generality of the foregoing, an Optionee who wishes to exercise an Option
must, in addition to following the procedures set out elsewhere in this Plan,
and as a condition of exercise: 

- 13 - 

	 	(a) 	
      deliver a certified cheque, wire transfer or bank draft
      payable to the Company for the amount determined by the Company to be the
      appropriate amount on account of such taxes or related amounts;
  or

	 	 	 
	 	(b) 	
      otherwise ensure, in a manner acceptable to the Company
      (if at all) in its sole and unfettered discretion, that the amount will be
      securely funded;

and must in all other respects follow any related procedures
and conditions imposed by the Company. 

Delivery of Certificate and Hold Periods 

4.4       As soon as practicable
after receipt of the notice of exercise described in §4.2 and payment in full
for the Optioned Shares being acquired, the Company will direct its transfer
agent to issue a certificate to the Optionee for the appropriate number of
Optioned Shares. Such certificate issued will bear a legend stipulating any
resale restrictions required under applicable securities laws. Further, if the
Exercise Price is set below than the then current market price of the Common
Shares on the TSX Venture, the certificate will also bear a legend stipulating
that the Optioned Shares are subject to a four-month TSX Venture hold period
commencing the date of the grant of the Option. 

ARTICLE 5 
GENERAL 

Employment and Services 

5.1       Nothing contained in
the Plan will confer upon or imply in favour of any Optionee any right with
respect to office, employment or provision of services with the Company, or
interfere in any way with the right of the Company to lawfully terminate the
Optionee’s office, employment or service at any time pursuant to the
arrangements pertaining to same. Participation in the Plan by an Optionee is
voluntary. 

No Representation or Warranty 

5.2       The Company makes no
representation or warranty as to the future market value of Common Shares issued
in accordance with the provisions of the Plan or to the effect of the Income
Tax Act (Canada) or any other taxing statute governing the Options or the
Common Shares issuable thereunder or the tax consequences to a Service Provider.
Compliance with applicable securities laws as to the disclosure and resale
obligations of each Participant is the responsibility of each Participant and
not the Company. 

- 14 - 

Interpretation 

5.3       The Plan will be
governed and construed in accordance with the laws of the Province of British
Columbia. 

Effective Date of Plan 

5.4      The Plan will become
effective from and after September 15, 2011.

__________ 

 

 

 

- 15 - 

Schedule A

SHARE OPTION PLAN

OPTION COMMITMENT 

Notice is hereby given that, effective this ________day of
________________, ________(the “Effective Date”), CRAILAR TECHNOLOGIES
INC. (the “Company”) has granted to
___________________________________________(the “Optionee”) an Option to
acquire ______________Common Shares (collectively, the “Optioned Shares”)
up to 5:00 p.m. Vancouver Time on the ________day of ________________,
________(the “Expiry Date”) at an Exercise Price of US$ ________(CDN$
____________) per Optioned Share. 

At the date of grant of the Option the Company is classified as
[a Tier ____ Issuer under TSX Venture Policies] [an NEX Issuer]. 

Optioned Shares will vest and may be exercised as follows:

[INSERT VESTING SCHEDULE] 

The grant of the Option evidenced hereby is made subject to the
terms and conditions of the Plan, which are hereby incorporated herein and forms
part hereof. 

To exercise your Option, deliver a written notice specifying
the number of Optioned Shares you wish to acquire, together with a certified
cheque, wire transfer or bank draft payable to the Company for the aggregate
Exercise Price. A certificate for the Optioned Shares so acquired will be issued
by the transfer agent as soon as practicable thereafter and will bear a minimum
four month non-transferability legend from the date of this Option Commitment,
the text of which is as follows. [The Company may grant stock options without a
hold period, provided the exercise price of the options is set at or above the
market price of the Company’s shares rather than below.]. 

	
      “WITHOUT PRIOR WRITTEN APPROVAL OF THE TSX
      VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES
      LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE 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 12:00 A.M. (MIDNIGHT) ON [insert
      date 4 months from the date of grant].”.

The Company and the Optionee represent that the Optionee under
the terms and conditions of the Plan is a bona fide Service Provider (as defined
in the Plan), entitled to receive Options under TSX Venture Policies. 

- 16 - 

The Optionee also acknowledges and consents to the collection
and use of Personal Information (as defined in the Policies of the TSX Venture
Exchange) by both the Company and the TSX Venture (or the NEX, as the case may
be) as more particularly set out in the Acknowledgement – Personal Information
in use by the TSX Venture (or the NEX, as the case may be) on the date of this
Share Option Plan. 

CRAILAR TECHNOLOGIES INC. 

_________________________________
Authorized Signatory 

_________________________________
(SIGNATURE OF
OPTIONEE) 

__________

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