Document:

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EXHIBIT 10.1

                              AMENDMENT NO. 1 TO
                       PREFERRED SHARES RIGHTS AGREEMENT

     This Amendment No. 1 to Preferred Shares Rights Agreement (this
"Amendment") is between VidaMed, Inc., a Delaware corporation (the "Company"),
and American Securities Transfer & Trust, Inc. (the "Rights Agent"), effective
as of January 3, 2000.

     A.   The Company and the Rights Agent have entered into a Preferred Shares
Rights Agreement, dated as of January 27, 1997 (the "Rights Agreement").
Capitalized terms used and not otherwise defined herein will have the meaning
given in the Rights Agreement.

     B.   Section 27 of the Rights Agreement provides that, prior to the
Distribution Date, the Company may amend the Rights Agreement, including the
definition of an Acquiring Person as set forth in Section 1(a) thereof, and
that, upon any such amendment, the Rights Agent shall amend the Rights Agreement
as the Company directs.

     C.   The Company desires, and hereby directs the Rights Agent, to amend the
definition of an Acquiring Person, and the Rights Agent agrees to such
amendment, on the terms and conditions hereof.

     NOW, THEREFORE, the Company and the Rights Agent agree as follows:

1.   Representations and Warranties.  The Company represents and warrants to the
     ------------------------------
     Rights Agent that:

     (a)  to the best knowledge of the Company, the Distribution Date has not
     occurred prior to the effective date hereof; and

     (b)  this Amendment is authorized pursuant to the requirements of Section
     27 of the Rights Agreement.

2.   Amendment of Section 1(a).  Section 1(a) of the Rights Agreement is hereby
     -------------------------
     amended by deleting Section 1(a) in its entirety and substituting the
     following therefor:

          (a)  "Acquiring Person" shall mean any Person who or which, together
     with all Affiliates and Associates of such Person, shall be the Beneficial
     Owner of 20% or more of the Common Shares then outstanding (the "Acquiring
     Person Triggering Amount"), but shall not include the Company, any
     Subsidiary of the Company or any employee benefit plan of the Company or of
     any Subsidiary of the Company, or any entity holding Common Shares for or
     pursuant to the terms of any such plan.
<PAGE>

     Notwithstanding the foregoing, no Person shall be deemed to be an Acquiring
     Person as the result of an acquisition of Common Shares by the Company
     which, by reducing the number of shares outstanding, increases the
     proportionate number of shares beneficially owned by such Person to the
     Acquiring Person Triggering Amount; provided, however, that if a Person
     shall become the Beneficial Owner of the Acquiring Person Triggering Amount
     by reason of share purchases by the Company and shall, after such share
     purchases by the Company, become the Beneficial Owner of any additional
     Common Shares of the Company (other than pursuant to a dividend or
     distribution paid or made by the Company on the outstanding Common Shares
     in Common Shares or pursuant to a split or subdivision of the outstanding
     Common Shares), then such Person shall be deemed to be an Acquiring Person
     unless upon becoming the Beneficial Owner of such additional Common Shares
     of the Company such Person does not beneficially own the Acquiring Person
     Triggering Amount. Notwithstanding the foregoing, (i) if a majority of the
     Continuing Directors then in office determines in good faith that a Person
     who would otherwise be an "Acquiring Person," as defined pursuant to the
     provisions of this paragraph (a), has become such inadvertently (including,
     without limitation, because (A) such Person was unaware that it
     beneficially owned a percentage of the Common Shares that would otherwise
     cause such Person to be an "Acquiring Person," as defined pursuant to the
     provisions of this paragraph (a), or (B) such Person was aware of the
     extent of the Common Shares it beneficially owned but had no actual
     knowledge of the consequences of such beneficial ownership under this
     Agreement) and without any intention of changing or influencing control of
     the Company, and if such Person divested or divests as promptly as
     practicable a sufficient number of Common Shares so that such Person would
     no longer be an "Acquiring Person," as defined pursuant to the provisions
     of this paragraph (a), then such Person shall not be deemed to be or to
     have become an "Acquiring Person" for any purposes of this Agreement; and
     (ii) if, as of the date hereof, any Person is the Beneficial Owner of 20%
     or more of the Common Shares outstanding, such Person shall not be or
     become an "Acquiring Person," as defined pursuant to the provisions of this
     paragraph (a), unless and until such time as such Person shall become the
     Beneficial Owner of additional Common Shares (other than pursuant to a
     dividend or distribution paid or made by the Company on the outstanding
     Common Shares in Common Shares or pursuant to a split or subdivision of the
     outstanding Common Shares), unless, upon becoming the Beneficial Owner of
     such additional Common Shares, such Person is not then the Beneficial Owner
     of the Acquiring Person Trigger Amount. For purposes of this definition of
     "Acquiring Person", the Acquiring Person Trigger Amount for Medtronic Asset
     Management, Inc. or any of its Affiliates or Associates (collectively, the
     "Medtronic Group") shall be 25.0% or more of the Common Shares then
     outstanding (the "Medtronic Trigger Amount") which shall be applicable if
     any member of the Medtronic Group has, or, together with any Affiliates and
     Associates of Medtronic, shall be the Beneficial Owner of, such Medtronic
     Trigger Amount.

3.   No Other Changes.  Except as specifically amended by this Amendment, all
     ----------------
     other provisions of the Rights Agreement shall remain in full force and
     effect.  This Amendment shall not constitute or operate as a waiver of, or
     estoppel with respect to, any provisions of the Rights Agreement by any
     party hereto.

4.   Counterparts.  This Amendment may be executed in one or more counterparts,
     ------------
     each of which shall be deemed an original, but all of which together shall
     constitute one and the same agreement.

     The Company and the Rights Agent have caused this Amendment to be duly
executed on their behalf by their respective duly authorized representatives as
of the date first written above.

                                      19
<PAGE>

VIDAMED, INC.                               AMERICAN SECURITIES TRANSFER &
                                            TRUST, INC.

By:  /s/ Randy D. Lindholm                  By:  /s/ Laura Sasneros
     -----------------------------------         -------------------------------
Its: President, Chief Executive Officer     Its: Vice President, Trust Officer
     -----------------------------------         -------------------------------

                                            AMERICAN SECURITIES TRANSFER &
                                            TRUST, INC.

                                            By:  Kellie Guinn
                                                 -------------------------------

                                      20<PAGE>   1

                                                                     EXHIBIT 4.6

                               MERIDIAN GOLD INC.

                            1999 SHARE INCENTIVE PLAN

1.       PURPOSE OF THE PLAN

The purpose of this Meridian Gold Inc.1999 Share Incentive Plan is to attract,
retain and motivate eligible employees (including prospective employees),
officers and directors of, and Consultants who may perform services for, the
Company and its subsidiaries, to compensate them for their contributions to the
Company's long-term growth and development, and to encourage them to acquire a
proprietary interest in the success of the Company.

2.       DEFINITIONS

Unless otherwise defined herein, the following terms used in this Plan have the
meaning given to them below:

         "ASSOCIATE" has the meaning given to it in the Securities Act
         (Ontario), as amended from time to time;

         "AWARD" means an award made pursuant to the Plan as provided in section
         4;

         "AWARD AGREEMENT" means a written document by which each Award is
         evidenced;

         "BOARD" and "BOARD OF DIRECTORS" mean the board of directors of the
         Company;

         "CERTIFICATE" means a share certificate (or other appropriate document
         or indicia of ownership) representing Common Shares of the Company;

         "CODE" means the United States Internal Revenue Code of 1986, as
         amended from time to time;

         "COMMITTEE" means the compensation committee appointed by the Board of
         Directors to administer this Plan. All references in this Plan to the
         Committee means the Board of Directors if no such compensation
         committee has been appointed;

         "COMMON SHARES" means the Common Shares of the Company or, in the event
         of an adjustment contemplated in Section 15, such other shares to which
         a Participant may be entitled as a result of such adjustment;

         "COMPANY" means Meridian Gold Inc., any successor of it, and where the
         context so requires, any subsidiary of Meridian Gold Inc.;

         "CONSULTANT" means an individual, other than an Employee or an Officer
         of the Company, that:

                  (i)      is engaged to provide ongoing consulting, technical,
                           management or other services on a bona fide basis to
                           the Company or to a subsidiary of the Company under a
                           written contract between the Company or the
                           subsidiary and the individual or a company or
                           partnership of which the individual consultant is an
                           employee or a shareholder or partner, and

                  (ii)     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 a
                           subsidiary of the Company;

          "CONSULTING CONTRACT" means a contract between a Consultant (or a
         company or partnership of which the individual consultant is an
         employee or a shareholder or partner) and the Company, governing the
         terms with respect to the provision of the Consultant's services to the
         Company;
<PAGE>   2

         "DATE OF GRANT" means the date a Participant is granted an Option;

         "DIRECTOR" means a person occupying the position of director on the
         Board of Directors;

         "DISABILITY" for purposes of this Plan means permanent and total
         disability as determined in the sole discretion of the Committee;

         "EMPLOYEE" means a full time permanent or contract employee of the
         Company or a subsidiary of the Company;

         "EXCHANGE ACT" means the United States Securities Exchange Act of 1934,
         as amended from time to time;

         "EXERCISE DATE" means the date the Company receives from a Participant
         a completed notice of exercise contemplated by Section 8(d), together
         with payment for the Option Shares being purchased;

         "FAIR MARKET VALUE" means, with respect to a Common Share on any day,
         the weighted average trading price of the Common Shares on the TSE for
         the previous five days prior to the date in question, provided that, if
         no sales of Common Shares were made on said exchange on such dates, the
         weighted average trading price of the Common Shares as reported for the
         five most recent preceding days on which sales of Common Shares were
         made on said exchange;

         "INCENTIVE STOCK OPTION" has the meaning given to it in Section 8(e);

         "INSIDER" means:

                  (i)      an insider of the Company as defined in the
                           Securities Act (Ontario), as amended from time to
                           time, other than a person who falls within such
                           definition solely by virtue of being a director or
                           senior officer of a subsidiary of the Company; and

                   (ii)    an Associate of any person who is an insider by
                           virtue of clause (i) of this definition;

         "MARKET PRICE" has the meaning given to it in the Regulation to the
         Securities Act (Ontario), as amended from time to time;

         "NYSE" means the New York Stock Exchange;

         "OFFICER" means an officer as defined by the Securities Act (Ontario),
         as amended from time to time, of the Company or its subsidiaries;

         "OPTION" means a non-assignable, non-transferable right to purchase
         Common Shares granted pursuant to this Plan;

         "OPTION PERIOD" means the period set forth in Section 8(a) during which
         a Participant may purchase Option Shares (provided, however, that the
         Option Period may not exceed ten years from the relevant Date of
         Grant);

         "OPTION PRICE" means the price per share at which a Participant may
         purchase Option Shares as fixed by the Committee;

         "OPTION SHARES" means the Common Shares which a Participant is entitled
         to purchase pursuant to Options granted pursuant to this Plan;

         "PARTICIPANTS" means Directors, Officers, Employees, and Consultants;

         "PLAN" means this 1999 Share Incentive Plan, as amended from time to
         time;

<PAGE>   3

         "POLICY" means the Revised Policy of the Toronto Stock Exchange on
         Listed Company Share Incentive Arrangements;

         "RESTRICTED OFFICERS" means the Chief Executive Officer of the Company
         and the four highest compensated officers (other than the Chief
         Executive Officer) as defined in (United States) Treasury Regulation
         1.162-27(c)(2); and

         "TSE" means The Toronto Stock Exchange.

3.       ELIGIBILITY

Participation in this Plan shall be limited to Participants who are designated
from time to time by the Committee. Participation shall be voluntary and the
extent to which any Participant shall be entitled to participate in this Plan
shall be determined by the Committee.

4.       TYPES OF AWARDS UNDER PLAN

Awards under the Plan may be made in the form of (a) Options, (b) share
appreciation rights, (c) restricted shares, (d) restricted share units, (e)
performance shares and share units, and (f) other equity-based or equity-related
awards that the Committee determines to be consistent with the purpose of the
Plan and the interests of the Company.

5.       NUMBER OF COMMON SHARES AVAILABLE FOR AWARDS

         (a)      The aggregate number of Common Shares which may be reserved
                  for issuance pursuant to Options and share appreciation rights
                  granted under this Plan shall not exceed (i) 5,200,000 Common
                  Shares, minus (ii) the number of Common Shares which may be
                  issued on the exercise of options granted under the Company's
                  1996 Stock Option Plan.

         (b)      Of the 5,200,000 Common Shares referred to in Section 5(a),
                  the aggregate number which may be reserved for issuance
                  pursuant to Incentive Stock Options shall not exceed 2,000,000
                  Common Shares.

         (c)      The aggregate number of Common Shares which may be reserved
                  for issuance pursuant to Awards other than Options and share
                  appreciation rights granted under this Plan shall not exceed
                  1,000,000 Common Shares.

         (d)      The aggregate number of Common Shares which may be reserved
                  for issuance pursuant to Awards granted under this Plan to all
                  of the Directors as a group shall not exceed 100,000 during
                  any one-year period.

         (e)      If, for any reason, any Common Shares subject to issuance
                  under this Plan or the Company's 1996 Stock Option Plan are
                  not issued for reasons including, but not limited to,
                  expiration or cancellation as provided for herein, such Common
                  Shares shall again become available for grant under this Plan.

         (f)      The following restrictions shall also apply to this Plan,
                  together with all other plans or stock option agreements of
                  the Company:

                  (i)      the aggregate number of Common Shares reserved for
                           issuance pursuant to Awards that provide for an
                           option to purchase Common Shares from treasury
                           granted to Insiders shall not exceed 10% of the
                           Outstanding Issue;

                  (ii)     Insiders shall not be issued, within any one-year
                           period, a number of Common Shares pursuant to Awards
                           which exceeds 10% of the Outstanding Issue

<PAGE>   4

                  (iii)    no Insider together with such Insider's Associates
                           shall be issued, within any one year period, a number
                           of Common Shares pursuant to Awards which exceeds 5%
                           of the Outstanding Issue; and

                  (iv)     the number of Common Shares reserved for issuance
                           pursuant to Awards that provide for an option to
                           purchase Common Shares from treasury to any one
                           Participant shall not exceed 5% of the Outstanding
                           Issue.

For purposes of this section, the term "Outstanding Issue" shall have the
meaning ascribed to it in the Policy. In addition, for purposes of clauses (ii)
and (iii) above, "Outstanding Issue" shall be determined on the basis of the
number of shares that are outstanding immediately prior to the share issuance in
question, excluding shares issued pursuant to share compensation arrangements
over the preceding one-year period.

6.     AGREEMENTS EVIDENCING AWARDS

Each Award granted under the Plan (except an Award of unrestricted Common
Shares) shall be evidenced by a written document which shall contain such
provisions and conditions as the Committee in its discretion deems appropriate.
The Committee may grant Awards in tandem with or, subject to pre-clearance with
the TSE, in substitution for any other Award or Awards granted under this Plan
or any award granted under any other plan of the Company. By accepting an Award
pursuant to the Plan, a Participant thereby agrees that the Award shall be
subject to all of the terms and conditions of the Plan and the applicable Award
Agreement.

7.     NO RIGHTS AS A SHAREHOLDER

No Participant shall have any of the rights of a shareholder of the Company with
respect to shares subject to such Award until the issuance of a Certificate for
such shares. Except as otherwise provided in Section 15, no adjustments shall be
made for dividends, distributions or other rights (whether ordinary or
extraordinary, and whether in cash, securities or other property) for which the
record date is prior to the date such Certificate is issued.

8.     OPTIONS, PRICE, VESTING, PAYMENT, TERMINATION AND INCENTIVE STOCK OPTIONS

         (a)      The Committee shall advise each Participant of the number of
                  Option Shares that such Participant is entitled to purchase,
                  the Option Price, the Option Period (which may not exceed ten
                  years from the relevant Date of Grant) and the vesting
                  schedule.

         (b)      The Committee shall fix the Option Price in its discretion,
                  provided that

                  (i)      the Option Price shall be fixed by the Committee in
                           Canadian or U.S. dollars;

                  (ii)     if the Option Price is fixed in Canadian dollars, it
                           shall be no less than the closing price of the Common
                           Shares on the TSE on the trading day prior to the
                           Date of Grant;

                  (iii)    if the Option Price is fixed in U.S. dollars, it
                           shall be no less than the closing price of the Common
                           Shares on the NYSE on the trading day prior to the
                           Date of Grant;

                  (iv)     if the Common Shares are not listed on the TSE or the
                           NYSE, the Option Price shall be determined based upon
                           the trading prices of the Common Shares on any stock
                           exchange in Canada or the United States on which the
                           Common Shares are then listed; and

                  (v)      if the Common Shares are not listed on any stock
                           exchange in Canada or the United States, the Option
                           Price shall be determined by the Committee in its
                           sole discretion.

         (c)      At the time of grant, the Committee may determine when an
                  Option will become exercisable and may determine that the
                  Option shall be exercisable in instalments on such terms as to
                  vesting or otherwise as the Committee deems advisable. Unless
                  otherwise provided by the Committee, Options will vest, as to
                  one third of the Options granted, on each of the first, second
                  and third anniversaries of the Date of Grant,
<PAGE>   5

                  provided that the Participant is an Employee, Officer,
                  Director or Consultant at the time of vesting.

         (d)      A Participant may from time to time and at any time during the
                  Option Period, elect to purchase all or a portion of the
                  Option Shares which such Participant is then entitled to
                  purchase by delivering to the Company at its registered
                  office, a notice in writing which shall specify the number of
                  Option Shares that the Participant desires to purchase and
                  shall be accompanied by payment in full of the purchase price
                  for such Option Shares. Payment may be made by cash, certified
                  cheque, bank draft or money order, payable to the order of the
                  Company, or if permitted by the Committee, by means of
                  tendering Common Shares valued at the Market Price or as
                  otherwise required by applicable law, or surrendering another
                  Award, subject to pre-clearance with the TSE, or any
                  combination thereof. The Committee shall determine acceptable
                  methods to exercise an Option as it deems appropriate.

         (e)      An Option may be in the form of an incentive stock option
                  ("Incentive Stock Option"), which, in addition to being
                  subject to the applicable terms, conditions, and limitations
                  established by the Committee with respect to Options, complies
                  with section 421 and 422 of the Code, and which is so
                  designated in the applicable Award Agreement. No Incentive
                  Stock Option shall be granted more than ten years after the
                  date of this Plan. Incentive Stock Options may be granted only
                  to Participants who are Employees.

         (f)      If, for any reason, a Participant's employment with the
                  Company and any of its subsidiaries is terminated for any
                  reason whatsoever, whether for or without cause and whether
                  with or without reasonable notice, or a Participant who is a
                  Director or Consultant ceases to be a Director or a
                  Consultant, as the case may be, and such termination of
                  employment, Board position or Consulting Contract is due to:

                  (i)      (A) normal retirement under the Company's then
                           existing policies; (B) early retirement at the
                           request of the Company; (C) death; or (D) Disability,
                           then there shall be immediate vesting upon the
                           effective date such employment is terminated or a
                           Participant who is a Director or Consultant ceases to
                           be a Director or Consultant, as the case may be (and
                           not at the date any period of reasonable notice would
                           expire in the case of termination by the Company)(the
                           "Termination Date") of the Awards that would
                           otherwise have vested in the 12 month period
                           following the Termination Date, and all Awards that
                           would have vested after such 12 month period
                           following the Termination Date shall expire. All
                           Awards that have vested in such Participant shall be
                           exercisable during the period which is the shorter
                           of: (x) the remainder of the applicable Option Period
                           (or other applicable exercise period); and (y) 180
                           days after the Termination Date, after which period,
                           such Awards may no longer be exercised; or

                  (ii)     any reason other than those specified in item (i) (A)
                           to (D), inclusive, then the Awards that have vested
                           (but not yet expired) before the Termination Date
                           shall be exercisable during the period which is the
                           shorter of: (x) the remainder of the applicable
                           Option Period (or other applicable exercise period),
                           and (y) 90 days after the Termination Date, after
                           which period, the Awards may no longer be exercised.
                           Any Awards that have not vested before the
                           Termination Date shall expire on the Termination
                           Date.

9.       SHARE APPRECIATION RIGHTS

The Committee may grant share appreciation rights in such amounts and subject to
such terms and conditions as the Committee shall determine in its discretion.
The grantee of a share appreciation right shall have the right, subject to the
terms of the Plan and the applicable Award Agreement, to receive from the
Company an amount equal to (a) the excess of the Fair Market Value of a Common
Share on the date of exercise of the share appreciation right, over (b)

<PAGE>   6

the exercise price of such right as set forth in the Award Agreement, multiplied
by (c) the number of Common Shares with respect to which the share appreciation
right is exercised. Payment upon exercise of a share appreciation right may be
in cash, Common Shares (valued at Fair Market Value), or any combination
thereof, all as the Committee shall determine in its discretion.

10.      RESTRICTED SHARES

         (a)      The Committee may grant restricted shares to Participants in
                  such amounts and subject to such terms and conditions as the
                  Committee shall determine in its discretion.

         (b)      Promptly after a Participant accepts a restricted share Award,
                  the Company shall issue in the Participant's name a
                  Certificate for the Common Shares covered by the Award. Upon
                  the issuance of such Certificate, the Participant shall have
                  the rights of a shareholder with respect to the restricted
                  shares, subject to any restrictions and conditions as the
                  Committee in its discretion may include in the applicable
                  Award Agreement. Unless the Committee shall otherwise
                  determine, any Certificate issued evidencing shares of
                  restricted shares shall remain in the possession of the
                  Company or its designated agent until such shares are free of
                  any restrictions specified in the applicable Award Agreement.

         (c)      Restricted shares may not be sold, exchanged, transferred,
                  assigned, pledged, hypothecated or otherwise disposed of
                  (including through the use of any cash-settled instrument)
                  except as specifically provided in the applicable Award
                  Agreement. The Committee at the time of grant shall specify
                  the date or dates (which may depend upon or be related to the
                  attainment of performance goals and other conditions) on which
                  the nontransferability of the restricted shares shall lapse.

11.      RESTRICTED SHARE UNITS

The Committee may grant Awards of restricted share units to Participants in such
amounts and subject to such terms and conditions as the Committee shall
determine in its discretion. A Participant who is granted a restricted share
unit will have only the rights of a general unsecured creditor of the Company
until payment of Common Shares, cash or other securities or property is made as
specified in the applicable Award Agreement. On the payment date, the
Participant of each restricted share unit not previously forfeited under the
terms of the applicable Award Agreement shall receive Common Shares, cash,
securities or other property equal in value to the Common Shares or a
combination thereof, as specified by the Committee.

12.      PERFORMANCE SHARES AND SHARE UNITS

The Committee may grant Awards of performance shares to Participants in the form
of actual Common Shares or share units having a value equal to an identical
number of Common Shares in such amounts and subject to such terms and conditions
as the Committee shall determine in its discretion. A Participant who is granted
a performance share unit will have only the rights of a general unsecured
creditor of the Company until payment of Common Shares, cash or other securities
or property is made as specified in the applicable Award Agreement. In the event
that a Certificate is issued in respect of performance shares, such Certificate
shall be registered in the name of the Participant but shall be held by the
Company or its designated agent until the time the performance shares are
earned. The Committee shall determine in its sole discretion whether performance
shares and performance share units shall be paid in Common Shares, cash,
securities or other property, or a combination thereof.

13.      OTHER STOCK-BASED AWARDS

The Committee may grant other types of equity-based or equity-related Awards to
Participants (including the grant of unrestricted Common Shares) in such amounts
and subject to such terms and conditions as the Committee shall in its
discretion determine. Such Awards may entail the transfer of actual Common
Shares to Participants, or payment in cash or otherwise of amounts based on the
value of Common Shares, and may include, without limitation, Awards designed to
comply with or take advantage of the applicable local laws of foreign
jurisdictions.

<PAGE>   7

14.      WITHHOLDING OF TAX

If the Company determines that under the requirements of applicable taxation
laws it is obliged to withhold for remittance to a taxing authority any amount
as a condition of the issuance of any Common Shares pursuant to any Awards, the
Company may, prior to and as a condition of issuing the Common Shares, require
the Participant to pay to the Company, in addition to and in the same manner as
the purchase price for the Common Shares, such amount as the Company is obliged
to remit to such taxing authority in respect of the issuance of the Common
Shares. Any such additional payment shall, in any event, be due no later than
the date as of which any amount with respect to the issuance of the Common Share
exercise must be remitted by the Company to such taxing authority. Payment may
be in cash or, with the prior approval of and upon conditions established by the
Committee, by withholding or tendering of Common Shares, valued at the closing
trading price of the Common Shares on the TSE for the previous day prior to the
date in question.

15.      ADJUSTMENT IN SHARES

The number of Common Shares subject to this Plan, the number of Common Shares
available under Awards granted, the Option Price, and the exercise price for
share appreciation rights and other stock-based Awards shall be adjusted from
time to time, in such manner and by such procedure deemed appropriate by the
Committee, to reflect adjustments in the number of Common Shares arising as a
result of subdivision, stock dividends, consolidations or reclassification of
the Common Shares or other relevant changes in the authorized or issued capital
of the Company. No fractional Common Shares shall be issued on the exercise of
an Award. Accordingly, if, as a result of any adjustment under this Section, a
Participant would become entitled to a fractional Common Share, the Participant
shall have the right to acquire only the adjusted number of full Common Shares
and no payment or other adjustment will be made with respect to the fractional
Common Shares so disregarded.

16.      REQUIRED CONSENTS

         (a)      If the Committee shall at any time determine that any consent
                  (as hereinafter defined) is necessary or desirable as a
                  condition of, or in connection with, the granting of any
                  Award, the issuance of Common Shares or the delivery of any
                  cash, securities or other property under the Plan, or the
                  taking of any other action thereunder (each such action being
                  hereinafter referred to as a "plan action"), then such plan
                  action shall not be taken, in whole or in part, unless and
                  until such consent shall have been effected or obtained to the
                  full satisfaction of the Committee.

         (b)      The term "consent" as used herein with respect to any plan
                  action includes (i) any and all listings, registrations or
                  qualifications in respect thereof upon any stock exchange or
                  under any applicable law, rule or regulation, (ii) any and all
                  written agreements and representations by the grantee with
                  respect to the disposition of shares, or with respect to any
                  other matter, which the Committee shall deem necessary or
                  desirable to comply with the terms of any such listing,
                  registration or qualification or to obtain an exemption from
                  the requirement that any such listing, qualification or
                  registration be made and (iii) any and all other consents,
                  clearances and approvals in respect of a plan action by any
                  governmental or other regulatory body or any stock exchange or
                  self-regulatory agency having jurisdiction.

17.      TRANSFER AND ASSIGNMENT

Except to the extent otherwise provided in the applicable Award Agreement, no
Award or right granted to any person under the Plan shall be sold, exchanged,
transferred, assigned, pledged, hypothecated or otherwise disposed of (including
through the use of any cash-settled instrument) other than by will or by the
laws of descent and distribution, and all such Awards and rights shall be
exercisable during the life of the grantee only by the grantee or the grantee's
legal representative. Notwithstanding the immediately preceding sentence, the
Committee may permit, under such terms and conditions that it deems appropriate
in its sole discretion, a grantee to transfer any Award (other than Options) to
any person or entity that the Committee so determines.

18.      EMPLOYMENT AND BOARD POSITION NON-CONTRACTUAL

The granting of an Award to a Participant under this Plan does not confer upon
the Participant any right to continue as an Employee, Officer, Consultant or as
a Director, as the case may be, nor does it interfere in any way with the

<PAGE>   8

right of the Participant or the Company to terminate the Participant's
employment or a Consultant Contract at any time, or the shareholders' right to
elect or remove Directors.

19.      CODE SECTION 162(m) PROVISIONS APPLICABLE TO RESTRICTED OFFICERS

Awards under this Plan to Restricted Officers are intended to come within the
exception to the nondeductibility of compensation exceeding $1,000,000 for
qualified performance-based compensation under Treasury Regulation 1.162-27(e),
unless otherwise provided in the Award Agreement. Any ambiguities or
inconsistencies in the construction of this Plan shall be interpreted to give
effect to this intention, and if any provision of the Plan is found not to be in
compliance with such Regulation, such provision shall be null and void to the
extent required to permit the Award to be considered qualified performance-based
compensation. Therefore, notwithstanding anything in this Plan to the contrary,
the requirements of Treasury Regulation Section 1.162-27(e) for qualified
performance-based compensation further limits Awards intended to meet the
requirements of Code Section 162(m).

20.      ADMINISTRATION OF PLAN

         (a)      This Plan shall be administered by the Committee. The
                  Committee shall have the power and authority to exercise all
                  of the powers granted to it under the Plan, construe,
                  interpret and implement the Plan and any Award Agreements,
                  prescribe, amend and rescind rules and regulations relating to
                  the Plan, including rules governing its own operations, make
                  all determinations necessary or advisable in administering the
                  Plan, correct any defect, supply any omission and reconcile
                  any inconsistency in the Plan, amend the Plan to reflect
                  changes in applicable law, subject to pre-clearance with the
                  TSE, unless otherwise provided in any Award Agreement with
                  respect to a particular Award, and subject to pre-clearance
                  with the TSE, amend the Award Agreement in any respect,
                  including, without limitation, to accelerate the time or times
                  at which the Award becomes unrestricted or may be exercised,
                  waive or amend any goals, restrictions or conditions set forth
                  in the Award Agreement, or impose new goals, restrictions and
                  conditions, or reflect a change in the grantee's circumstances
                  (eg., a change to part-time employment status), provided such
                  amendment is not adverse to the Participant holding such
                  Award, or consented to by such Participant, determine whether,
                  to what extent and under what circumstances Awards may be
                  settled or exercised in cash, Common Shares, other securities,
                  other Awards (subject to pre-clearance with the TSE) or other
                  property, or cancelled, forfeited or suspended, Common Shares,
                  other securities, other Awards or other property and other
                  amounts payable with respect to an Award shall be deferred
                  either automatically or at the election of the holder thereof
                  or of the Committee, and Awards shall be settled by the
                  Company or any of its subsidiaries.

         (b)      Any determination by the Committee shall be final and
                  conclusive on all persons affected thereby unless otherwise
                  determined by the Board of Directors.

         (c)      The day-to-day administration of this Plan may be delegated to
                  such officers and employees of the Company or any subsidiary
                  of the Company as the Committee shall determine.

         (d)      To the extent required for transactions under the Plan to
                  qualify for the exemptions available under Rule 16b-3
                  promulgated under the Exchange Act, all actions relating to
                  Awards to persons subject to Section 16 of the Exchange Act
                  shall be taken by the Board or a committee or subcommittee of
                  the Board composed of two or more members, each of whom is a
                  "non-employee director" within the meaning of Exchange Act
                  Rule 16b-3. To the extent required for compensation realized
                  from Awards under the Plan to be deductible by the Company
                  pursuant to Section 162(m) of the Code, such Awards may be
                  granted by a committee or subcommittee of the Board composed
                  of two or more members, each of whom is an "outside director"
                  within the meaning of Code Section 162(m).

<PAGE>   9
21.      NOTICES

All written notices to be given by the Participant to the Company may be
delivered personally or by registered mail, postage prepaid, addressed as
follows:

         Meridian Gold Inc.
         Suite 200
         9670 Gateway Drive
         Reno, NV     89511-8997

         Attention:  Chief Financial Officer

Any notice given by the Participant pursuant to the terms of the Option shall
not be effective until actually received by the Company at the above address.
Any notice to be given to the Participant shall be sufficiently given if
delivered personally or by postage prepaid mail to the last address of the
Participant on the records of the Company and shall be effective seven days
after mailing.

22.      CORPORATE ACTION

Nothing contained in this Plan or any Award granted shall be construed so as to
prevent the Company or any subsidiary of the Company from taking corporate
action which is deemed by the Company or the subsidiary to be appropriate or in
its best interest, whether or not such action would have an adverse effect on
this Plan or on any Award granted.

23.      AMENDMENTS

The Board of Directors shall have the right, in its sole discretion, to alter,
amend or discontinue this Plan from time to time and at any time. No such
amendment or discontinuation may, without the consent of a Participant, alter or
impair such Participant's rights or increase such Participant's obligations with
respect to an Award previously granted. Any amendment to this Plan is subject to
the prior approval of applicable securities regulatory authorities and may
require the approval of the Company's shareholders.

24.      GOVERNING LAW

This Plan is established under the laws of Ontario and the rights of all parties
and the construction and effect of each provision of this Plan shall be
according to the laws of Ontario and the laws of Canada applicable in Ontario.

25.      GOVERNMENT REGULATION

The Company's obligation to issue and deliver Common Shares under any Award is
subject to:

         (a)      the satisfaction of all requirements under applicable
                  securities law in respect thereof and obtaining all regulatory
                  approvals as the Company shall determine to be necessary or
                  advisable in connection with the authorization, issuance or
                  sale thereof;

         (b)      the admission of such Common Shares to listing on any stock
                  exchange in Canada or the United States on which Common Shares
                  may then be listed; and

         (c)      the receipt from the Participant of such representations,
                  agreements and undertakings as to future dealings in such
                  Common Shares as the Company determines to be necessary or
                  advisable in order to safeguard against the violation of the
                  securities laws of any jurisdiction.

In this connection, the Company shall take all reasonable steps to obtain such
approvals and registrations as may be necessary for the issuance of such Common
Shares in compliance with applicable securities laws and for the listing of such
Common Shares on a stock exchange in Canada or the United States on which the
Common Shares are then listed.

26.      APPROVALS

This Plan shall be subject to shareholder approval and acceptance by the TSE in
compliance with all conditions imposed by the TSE. Any Awards granted prior to
such acceptance shall be conditional upon such acceptance being

<PAGE>   10

given and any conditions complied with and no Options may be exercised unless
such acceptance is given and such conditions are complied with.

DATED:  March 5, 1999.

                                                        MERIDIAN GOLD INC.

                                                        /s/ David S. Robertson
                                                        ------------------------
                                                        David S. Robertson
                                                        Chairman

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