Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Response Biomedical Corp. - Exhibit 4.5

 CONSULTING AGREEMENT 

 THIS CONSULTING AGREEMENT made the 1st day of May, 2004 between
  RESPONSE BIOMEDICAL CORP. (“Response”) of 8081 Lougheed Highway,
  Burnaby, British Columbia, V5A 1W9 and Micron Engineering owned by Paul C. Harris,
  Ph.D (the “Consultant”) of 3022 184th Place SE, Bothell,
  Washington 98012; 

 This Agreement sets forth the terms upon which the Consultant
  is engaged by Response. The parties hereto agree as follows: 

	 1.0      	 NATURE OF ENGAGEMENT 

	 
	 1.1      	 Duties. The duties and responsibilities of
        the Consultant shall primarily include, but not be limited to, directing
        the development and commercialization of the RAMP technology. 

	 
	 	 The Consultant agrees to have Paul Harris spend
        as much time as is reasonably required, nominally twelve days per month,
        in Response’s facilities in Burnaby, B.C. or other designated locations,
        during the term of this Agreement. The Consultant may be required, from
        time to time, to participate in trade shows, fund-raising or partnering
        meetings off-site. 

	 
	 1.2      	 Title. Paul C. Harris, Ph.D will continue
        to have the title “Vice President, Research and Development”
        for the term of this Agreement and report to the Chief Executive Officer.
      

	 
	 1.3      	 Term. This Agreement shall be effective as
        of May 1, 2004 and shall expire on April 30, 2005. 

	 
	 2.0      	 CONSULTANT’S COMPENSATION 

	 
	 2.1      	 Fees. Response agrees to pay the Consultant
        a consulting fee of $117,000 U.S. per year based on an average of
        12 work days per month, payable in equal monthly instalments. 

	 
	 	 This amount may be pro-rated for different numbers
        of workdays by mutual agreement. 

	 
	 2.2      	 Expenses. Upon the submission of expense
        reports in such form as requested the Company, the Consultant shall be
        reimbursed for all reasonable and actual business expenses, including
        the cost of a cellular phone which will not exceed US$150 per month.
        The Company will also reimburse the Consultant for all reasonable and
        actual expenses related to travel while on Response business and lodging
        while in Vancouver. 

	 
	 2.3      	 Incentive Bonus Plan. The Consultant will
        be entitled to earn up to 20% of the annual salary through the Company’s
        milestone-based, incentive bonus plan (“Plan”) which is expected
        to receive prior approval by the Board of Directors and come into effect
        upon the Company securing sufficient financing to meet its forecasted
        funding requirements to reach positive net cash flow. The milestones that
        trigger bonuses under the Plan shall be mutually agreed to by the Consultant
        and the President and shall be approved by the Board of Directors or the
        Compensation Committee. 

 

	 2.4      	 Stock Options. The Consultant shall be granted
        stock options from time to time in accordance with the Company’s
        Stock Option Plan. 

	 
	 2.5      	 Other Benefits. In addition to any other
        compensation or benefits to be received by the Consultant pursuant to
        this Agreement, the Consultant shall be entitled to participate in all
        executive benefits which the Company may from time to time provide to
        its senior executives, including the granting of stock options as approved
        by the Board or Compensation Committee. 

	 
	 3.0      	 CHANGE OF CONTROL 

	 
	 3.1      	 In the event of a change of control of the Company,
        the Company shall continue to engage and the Consultant shall continue
        to serve the Company in the same capacity and have the same authority,
        responsibilities and status as he had as of the date immediately prior
        to the change of control. Following a change of control, the Consultant
        's services shall be performed at such location as may be mutually agreed
        upon between the Company and the Consultant. For the purposes of this
        Agreement, a “change of control” (the “Change of Control”)
        shall be deemed to have occurred when: 

	 
	 	 (a)      a person other
        than the current control person of the Company (as that term is defined
        in the Securities Act (British Columbia)) becomes a control person; or
      

	 
	 	 (b)      a majority of
        the directors elected at any annual or special general meeting of 

	 
	 	 shareholders of the Company are not individuals
        nominated by the Company's then- incumbent Board. 

	 
	 4.0      	 TERMINATION OF ENGAGEMENT 

	 
	 4.1      	 Termination. Either party may terminate the
        engagement with three months notice. In the event of the termination of
        the Consultant 's engagement pursuant to Section 3.0 of this Agreement,
        the Company shall pay to the Consultant within ten days of such termination
        a payment equal to fees paid to the Consultant during the previous 12
        months plus all expenses incurred by the Consultant up to the date of
        termination. 

	 
	 4.2      	 Conflict of Interest. This Agreement may
        be terminated if a conflict of interest arises as a result of the Consultant's
        direct or indirect association with a third party that competes, or may
        compete, with the Company. 

	 
	 4.3      	 Exit Interview. In the event of termination
        of this Agreement by either party the Consultant will meet with the Company
        for an interview. At that time the Consultant shall deliver to the Company
        all documents in the Consultant's possession including all notes, graphs,
        publications, data and other materials obtained or produced by the Consultant
        during his engagement. 

 2

 

	 4.4      	 Continuing Obligations. The obligations
        as set out in Article 6 will survive the termination of engagement. 

	 
	 5.0      	 OWNERSHIP OF WORK PRODUCT 

	 
	 5.1      	 Any and all know-how, ideas, discoveries,
        inventions, improvements, formula, methods, processes, systems, plans
        and any other knowledge or information of a technical or scientific nature
        or of a business nature pertinent to the Company’s scientific or
        business interests whether protectable as industrial or intellectual property
        right or not, which the Consultant may conceive, develop or acquire either
        solely or jointly with any other party in furtherance of the engagement
        with the Company will be the sole and exclusive property of Response.
        Consultant agrees to assign all patents to the Company and to assist in
        their issuance in accordance with Response’s patent incentive policy.
        Consultant will be eligible for any patent incentive bonuses. This section
        will remain in effect for 5 years past the termination of this contract.
      

	 
	 6.0      	 CONFIDENTIALITY 

	 
	 6.1      	 The term “Confidential Information”
        means any and all information concerning any aspect of Response not generally
        known to persons other than those associated with Response including,
        but not limited to, clinical data, concepts, processes and techniques,
        trade secrets, business strategies and financial information. Response
        may disclose, in writing or orally, to the Consultant certain Confidential
        Information. These disclosures will be directed primarily to the subject
        of research and commercialization of quantitative lateral flow point-of-care
        testing systems for human, veterinary, food safety and environmental markets,
        but may also include proprietary and Confidential Information relating
        generally to development of RAMP. 

	 
	 6.2      	 The Consultant acknowledges and agrees
        that the Confidential Information is disclosed to the Consultant in the
        strictest confidence and any Confidential Information disclosed to the
        Consultant in any form whatsoever is and shall be considered confidential
        and proprietary information of Response. 

	 
	 6.2      	 Except as authorized by Response, the
        Consultant will not: 

	 
	 	 (a)     
      
	 duplicate, transfer or disclose nor allow any other
        person to duplicate, transfer or disclose any of the Confidential Information;
      

	 
	 	 (b)      
	 use the Confidential Information without the prior
        written consent of Response; or 

	 
	 	 (c)      
	 incorporate, in the whole or in part, within any
        domestic or foreign patent application any proprietary or Confidential
        Information disclosed by Response. 

	 
	 6.4      	 The Consultant will safeguard all Confidential
        Information at all times so that it is not exposed to or used by unauthorized
        person(s), and will exercise at least the same degree of care used to
        protect the Consultant’s own Confidential Information. 

	 
	 6.5      	 Any and all notes, diagrams, reports,
        notebook pages, memoranda, and like materials and chemical, and biological
        materials received from Response and any copies or excerpts thereof containing
        proprietary or Confidential Information will remain the property of Response
        and will, upon the request of Response, be promptly returned to Response.
      

 3

 

	 6.6      	 The restrictive obligations set forth
        above shall not apply to the disclosure or use of any information which:
      

	 
	 	 (a)     
      
	 is or later becomes publicly known under circumstances
        involving no breach of this Agreement by the Consultant; 

	 
	 	 (b)      
	 is already known to the Consultant at the time of
        receipt of the Confidential Information; or 

	 
	 	 (c)      
	 is lawfully made available to the Consultant by
        a third party. 

	 
	 6.7      	 No patent rights or licenses are granted
        by this Agreement. The disclosure of Confidential Information under this
        Agreement shall not result in any obligation for either party to grant
        any rights in its patent rights or Confidential Information, and no other
        obligations of any kind are assumed by or implied against either party,
        except for as stated in this Agreement. 

	 
	 6.8      	 The provisions of Section 6.0 shall survive
        the termination of this Agreement. 

	 
	 7.0      	 NOTICES 

	 
	 7.1      	 Any notice required to be given hereunder
        by either party shall be deemed to have been well and sufficiently given
        if mailed by prepaid registered mail to, or delivered by courier at, the
        address of the other party first written above, or at such other address
        as each party may from time to time direct by notice in writing. Such
        notice shall be deemed to have been received, if mailed, on the date stamped
        as the date of receipt and, if delivered, upon the date of delivery. If
        normal mail service is disrupted all notices will be delivered by courier.
      

	 
	 8.0      	 ENTIRE AGREEMENT 

	 
	 8.1      	 If any provision of this agreement is
        invalid or unenforceable, it shall be severed from the agreement and shall
        not affect the enforceability or validity of the remaining provisions
        of this agreement. 

	 
	 8.2      	 With the exception of the Confidentiality
        and Non-Disclosure Agreement previously entered into between the parties,
        this agreement sets forth the entire understanding between the parties
        and no modifications shall be binding unless executed in writing by the
        parties. 

	 
	 8.3      	 The validity, construction and performance
        of this agreement shall be governed by and be interpreted in accordance
        with the laws of the Province of British Columbia. 

 IN WITNESS WHEREOF this agreement has been executed by the
  parties hereto as of the day and year first above written. 

 4

 

	 RESPONSE BIOMEDICAL CORP.  	 	 CONSULTANT  
	  	 	 
	  	 	 
	  	 	 
	 /s/ William Radvak 	 	 /s/ Paul C. Harris
	 William J. Radvak  	 	 Paul C. Harris, Ph.D.  
	 President & CEO  	 	 Owner, Micron Engineering  

 5Filed by Automated Filing Services Inc. (604) 609-0244 - Response Biomedical Corp. - Exhibit 4.10

 RESPONSE BIOMEDICAL CORP. 

  1996 STOCK OPTION PLAN 

  Amended June 21, 1999, June 1, 2000, June 7, 2001, June 17, 2002, June 17,
  2003 and June 21, 2004 

	 1.      	 INTERPRETATION 

	 
	 1.1      	 Defined Terms – For
        the purposes of this Plan, the following terms shall have the following
        meanings: 

	 
	 	 (a)      
	 “Affiliate” means a
        Parent Corporation or a Subsidiary Corporation of a corporation; 

	 
	 	 (b)      
	 “Associate” means,
        where used to indicate a relationship with any Person, 

	 
	 	 	 (i)     
      
	 any relative, including the spouse of that Person
        or a relative of that Person’s spouse, where the relative has the
        same home as the Person, 

	 
	 	 	 (ii)      
	 any partner, other than a limited partner, of that
        Person, 

	 
	 	 	 (iii)      
	 any trust or estate in which such Person has a substantial
        beneficial interest or as to which such Person serves as trustee or in
        a similar capacity, or 

	 
	 	 	 (iv)      
	 any corporation of which such Person beneficially
        owns or controls, directly or indirectly, voting securities carrying more
        than 10 percent of the voting rights attached to all outstanding voting
        securities of the corporation; 

	 
	 	 (c)      
	 “Board” means the Board
        of Directors of Response Biomedical Corp.; 

	 
	 	 (d)      
	 “Committee” means a
        committee of the Board appointed in accordance with this Plan, or if no
        such committee is appointed, the Board itself; 

	 
	 	 (e)      
	 “Company” means Response
        Biomedical Corp.; 

	 
	 	 (f)      
	 “Date of Grant” means
        the date on which a grant of an Option is effective; 

	 
	 	 (g)      
	 “Disability” means
        a medically determinable physical or mental impairment expected to result
        in death or to last for a continuous period of not less than 12 months,
        and which causes an individual to be unable to engage in any substantial
        gainful activity; 

	 
	 	 (h)      
	 “Effective Date” means
        the effective date of this Plan, which is April 19, 1996; 

	 
	 	 (i)      
	 “Fair Market Value”
        means: 

	 
	 	 	 (i)      
	 where the Shares are listed for trading on a stock
        exchange or over the counter market, the average closing price of the
        Shares for the ten trading days immediately preceding the Date of Grant
        on the stock exchange or over the counter market which is the principal
        trading market for the Shares, as may be determined for such purpose by
        the Committee, or 

	 
	 	 	 (ii)      
	 where the Shares are not listed for trading on a
        stock exchange or over the counter market, the value which is determined
        by the Committee to be the fair value of the Shares, taking into consideration
        all factors that the Committee deems appropriate, 

 - 2 -

	 	 	 including, without limitation, recent
        sale and offer prices of the Shares in private transactions negotiated
        at arm’s length; 

	 
	 	 (j)      
	 “Guardian” means the
        guardian, if any, appointed for an Optionee; 

	 
	 	 (k)      
	 “Modification” means
        any change in the terms of an Option which gives the Optionee additional
        benefits under the Option, but such change shall not include a change
        in the terms of an Option: 

	 
	 	 	 (i)     
      
	 to make the Option not transferable other than by
        will or the laws of descent and distribution, 

	 
	 	 	 (ii)      
	 to make the Option exercisable only by the Optionee
        during his lifetime, 

	 
	 	 	 (iii)      
	 in the case of an Option not immediately exercisable
        in full, to accelerate the time within which the Option may be exercised,
        or 

	 
	 	 	 (iv)      
	 attributable to the issuance or assumption of an
        Option by reason of a corporate merger, consolidation, acquisition of
        property or stock, separation, reorganization or liquidation if the new
        option or assumption of the old Option does not give the Optionee additional
        benefits which he did not have under the old Option; 

	 
	 	 (l)      
	 “Option” means an option
        to purchase Shares granted pursuant to the terms of this Plan; 

	 
	 	 (m)      
	 “Option Agreement”
        means a written agreement between the Company and an Optionee, specifying
        the terms of the Option being granted to the Optionee under the Plan;
      

	 
	 	 (n)      
	 “Option Price” means
        the price at which an Option is exercisable to purchase Shares; 

	 
	 	 (o)      
	 “Optionee” means a
        person to whom an Option has been granted; 

	 
	 	 (p)      
	 “Parent Corporation”
        means any corporation in an unbroken chain of corporations ending with
        the Company if, at the Date of Grant, each corporation, other than the
        Company, owns stock possessing 50 percent or more of the total combined
        voting power of all classes of stock in one of the other corporations
        in such chain; 

	 
	 	 (q)      
	 “Person” means a natural
        person, company, government, or political subdivision or agency of a government;
        and where two or more Persons act as a partnership, limited partnership,
        syndicate or other group for the purpose of acquiring, holding or disposing
        of securities of an issuer, such syndicate or group shall be deemed to
        be a Person; 

	 
	 	 (r)      
	 “Plan” means this stock
        option plan of the Company; 

	 
	 	 (s)      
	 “Shares” means the
        common shares without par value in the capital of the Company; 

	 
	 	 (t)      
	 “Subsidiary Corporation”
        means any corporation in an unbroken chain of corporations beginning with
        the Company if, at the Date of Grant, each of the corporations, other
        than the last corporation, owns stock possessing 50 percent or more of
        the total combined voting power of all classes of stock in one of the
        other corporations in such chain; 

	 
	 	 (u)      
	 “Term” means the period
        of time during which an Option is exercisable; and 

 - 3 -

	 	 (v)      
	 “Terminating Event”
        means: 

	 
	 	 	 (i)     
      
	 the dissolution or liquidation of the Company, 

	 
	 	 	 (ii)      
	 a merger or consolidation of the Company with one
        or more corporations as a result of which, immediately following such
        merger or consolidation, the shareholders of the Company as a group will
        hold less than a majority of the outstanding capital stock of the surviving
        corporation, 

	 
	 	 	 (iii)      
	 the sale or other disposition of all or substantially
        all of the assets of the Company, or 

	 
	 	 	 (iv)      
	 a material change in the capital structure of the
        Company that is deemed to be a Terminating Event by virtue of the last
        sentence of Section 10.1 of this Plan or by virtue of Section 10.4 of
        this Plan. 

	 
	 2.     
      
	 STATEMENT OF PURPOSE 

	 
	 2.1     
      
	 Principal Purposes –
        The principal purposes of the Plan are to provide the Company with the
        advantages of the incentive inherent in stock ownership on the part of
        employees, officers, directors, and consultants responsible for the continued
        success of the Company; to create in such individuals a proprietary interest
        in, and a greater concern for, the welfare and success of the Company;
        to encourage such individuals to remain with the Company; and to attract
        new employees, officers, directors and consultants to the Company. 

	 
	 2.2     
      
	 Benefit to Shareholders –
        The Plan is expected to benefit shareholders by enabling the Company to
        attract and retain personnel of the highest caliber by offering them an
        opportunity to share in any increase in value of the Shares resulting
        from their efforts. 

	 
	 3.     
      
	 ADMINISTRATION 

	 
	 3.1     
      
	 Board or Committee –
        The Plan shall be administered by the Board or by a committee of the Board
        appointed in accordance with Section 3.2 below. 

	 
	 3.2     
      
	 Appointment of Committee –
        The Board may at any time appoint a Committee, consisting of not less
        than two of its members, to administer the Plan on behalf of the Board
        in accordance with such terms and conditions as the Board may prescribe,
        consistent with this Plan. Once appointed, the Committee shall continue
        to serve until otherwise directed by the Board. From time to time, the
        Board may increase the size of the Committee and appoint additional members,
        remove members (with or without cause) and appoint new members in their
        place, fill vacancies however caused, or remove all members of the Committee
        and thereafter directly administer the Plan. 

	 
	 3.3     
      
	 Quorum and Voting –
        A majority of the members of the Committee shall constitute a quorum,
        and, subject to the limitations in this Section 3, all actions of the
        Committee shall require the affirmative vote of members who constitute
        a majority of such quorum. Members of the Committee may vote on any matters
        affecting the administration of the Plan or the grant of Options pursuant
        to the Plan, except that no such member shall act upon the granting of
        an Option to himself (but any such member may be counted in determining
        the existence of a quorum at any meeting of the Committee during which
        action is taken with respect to the granting of Options to him). 

 - 4 -

	 3.4      	 Powers of Committee –
        Any Committee appointed under Section 3.2 above shall have the authority
        to do the following: 

	 
	 	 (a)      
	 administer the Plan in accordance with
        its express terms; 

	 
	 	 (b)      
	 determine all questions arising in connection
        with the administration, interpretation, and application of the Plan,
        including all questions relating to the value of the Shares; 

	 
	 	 (c)      
	 correct and defect, supply any information,
        or reconcile any inconsistency in the Plan in such manner and to such
        extent as shall be deemed necessary or advisable to carry out the purposes
        of the Plan; 

	 
	 	 (d)      
	 prescribe, amend, and rescind rules and
        regulations relating to the administration of the Plan; 

	 
	 	 (e)      
	 determine the duration and purposes of
        leaves of absence from employment which may be granted to Optionees without
        constituting a termination of employment for purposes of the Plan; 

	 
	 	 (f)      
	 do the following with respect to the granting
        of Options: 

	 
	 	 	 (i)      
	 determine the employees, officers, directors,
        or consultants to whom Options shall be granted, based on the eligibility
        criteria set out in this Plan, 

	 
	 	 	 (ii)      
	 determine the terms and provisions of
        the Option Agreement to be entered into with any Optionee (which need
        not be identical with the terms of any other Option Agreement), 

	 
	 	 	 (iii)      
	 amend the terms and provisions of Option
        Agreements, provided the Committee obtains: 

	 
	 	 	 	 A.     
      
	 the consent of the Optionee, and 

	 
	 	 	 	 B.      
	 the approval of any stock exchange on which the
        Company is listed, 

	 
	 	 	 (iv)      
	 determine when Options shall be granted,
        and 

	 
	 	 	 (v)      
	 determine the number of Shares subject
        to each Option; and 

	 
	 	 (g)      
	 make all other determinations necessary
        or advisable for administration of the Plan. 

	 
	 3.5      	 Obtain Regulatory Approvals –
        In administering this Plan, the Committee will obtain any regulatory approvals
        which may be required pursuant to applicable securities laws or the rules
        of any stock exchange or over the counter market on which the Shares are
        listed. 

	 
	 3.6      	 Administration by Committee –
        All determinations made by the Committee in good faith on matters referred
        to in Section 3.4 shall be final, conclusive, and binding upon all Persons.
        The Committee shall have all powers necessary or appropriate to accomplish
        its duties under this Plan. 

	 
	 	 In addition, the Committee’s administration
        of the Plan shall in all respects be consistent with the policies and
        rules of any stock exchange or over the counter market on which the Shares
        are listed. 

 - 5 -

	 4.      	 ELIGIBILITY 

	 
	 4.1      	 Eligibility – Options
        may be granted to any employee, officer, director or consultant of the
        Company or of an Affiliate of the Company. 

	 
	 4.2      	 No Violation of Securities Laws
        – No Option shall be granted to any Optionee unless the
        Committee has determined that the grant of such Option and the exercise
        thereof by the Optionee will not violate the securities law of the jurisdiction
        where the Optionee resides. 

	 
	 5.      	 SHARES SUBJECT TO THE PLAN
      

	 
	 5.1      	 Number of Shares –
        The Committee, from time to time, may grant Options to purchase an aggregate
        of up to 11,500,000 Shares, subject to regulatory approval of the Plan,
        to be made available from authorized, but unissued or reacquired, Shares.
        In calculating the foregoing 11,500,000 Shares, the Committee shall include
        all Shares subject to options outstanding prior to the Effective Date
        of the Plan. The maximum number of 11,500,000 Shares shall be adjusted,
        where necessary, to take account of the events referred to in Section
        10 hereof. 

	 
	 5.2      	 Number of Shares Subject to Plan
        upon Exercise – Upon exercise of an Option, the number of
        Shares thereafter available under the Plan shall remain at 11,500,000.
      

	 
	 5.3.      	 Expiry of Option –
        If an Option expires or terminates for any reason without having been
        exercised in full, the unpurchased Shares subject thereto shall again
        be available for the purposes of the Plan. 

	 
	 5.4      	 Reservation of Shares –
        The Company will at all times reserve and keep available such number of
        Shares as shall be sufficient to satisfy the requirements of the Plan.
      

	 
	 6.      	 OPTION TERMS 

	 
	 6.1      	 Option Agreement –
        With respect to each Option to be granted to an Optionee, the Committee
        shall specify the following terms in the Option Agreement between the
        Company and the Optionee: 

	 
	 	 (a)     
      
	 the number of Shares subject to purchase pursuant
        to such Option, provided that the number of Shares reserved for issuance
        to any one person pursuant to Options does not exceed 5% of the then outstanding
        Shares; 

	 
	 	 (b)      
	 the Date of Grant; 

	 
	 	 (c)      
	 the Term, provided that the Term shall in no event
        be more than ten years following the Date of Grant; 

	 
	 	 (d)      
	 the Option Price, provided that the Option Price
        shall not be less than the Fair Market Value; 

	 
	 	 (e)      
	 any vesting schedule upon which the exercise of
        an Option is contingent, provided that each Option must be subject to
        a vesting schedule pursuant to which not more than 25% of the initial
        aggregate number of Shares which may be purchased under the Option may
        vest in any six month period, on a cumulative basis; 

	 
	 	 (f)      
	 the aggregate number of Options granted to consultants
        must not exceed 2% of the outstanding listed Shares of the Company at
        the Date of Grant; and 

 - 6 -

	 	 (g)     
      
	 such other terms and conditions as the Committee
        deems advisable and are consistent with the purposes of this Plan. 

	 
	 6.2      	 No Grant After Ten Years From Effective
        Date – No Option shall be granted under the Plan later than
        ten years from the Effective Date of the Plan. Except as expressly provided
        herein, nothing contained in this Plan shall require that the terms and
        conditions of Options granted under the Plan be uniform. 

	 
	 7.      	 EXERCISE OF OPTION 

	 
	 7.1      	 Method of Exercise –
        Subject to any limitations or conditions imposed upon an Optionee pursuant
        to the Option Agreement or Section 6 above, an Optionee may exercise an
        Option by giving written notice thereof to the Company at its principal
        place of business. 

	 
	 7.2      	 Payment of Option Price –
        The notice described in Section 7.1 shall be accompanied by full payment
        of the aggregate Option Price to the extent the Option is so exercised,
        and full payment of any amounts the Company determines must be withheld
        for tax purposes from the Optionee pursuant to the Option Agreement. Such
        payment shall be in lawful money (Canadian funds) by cheque. 

	 
	 7.3      	 Issuance of Stock Certificate –
        As soon as practicable after exercise of an Option in accordance with
        Sections 7.1 and 7.2 above, the Company shall issue a stock certificate
        evidencing the Shares with respect to which the Option has been exercised.
        Until the issuance of such stock certificate, no right to vote or receive
        dividends or any other rights as a shareholder shall exist with respect
        to such Shares, notwithstanding the exercise of the Option. No adjustment
        will be made for a dividend or other right for which the record date is
        prior to the date the stock certificate is issued, except as provided
        in Section 10 below. 

	 
	 8.      	 TRANSFERABILITY OF OPTIONS
      

	 
	 8.1      	 Non-Transferable –
        Except as provided otherwise in this Section 8, Options are non-assignable
        and non-transferable. 

	 
	 8.2      	 Death of Optionee –
        If the employment of an Optionee as an employee or consultant of the Company
        or an Affiliate of the Company, or the position of an Optionee as a director
        or officer of the Company or an Affiliate of the Company, terminates as
        a result of his or her death, any Options held by such Optionee shall
        pass to the legal heirs or personal representative of the Optionee, and
        shall be exercisable by the such person for a period of 12 months following
        such death. 

	 
	 8.3      	 Disability of Optionee –
        If the employment of an Optionee as an employee or consultant of the Company
        or an Affiliate of the Company, or the position of an Optionee as a director
        or officer of the Company or an Affiliate of the Company, is terminated
        by the Company or its Affiliate by reason of such Optionee’s Disability,
        any Option held by such Optionee that could have been exercised immediately
        prior to such termination of service shall be exercisable by such Optionee,
        or by his Guardian, for a period of 12 months following the termination
        of service of such Optionee. 

	 
	 8.4      	 Disability and Death of Optionee
        – If an Optionee who has ceased to be employed by the Company
        or an Affiliate of the Company by reason of such Optionee’s Disability
        dies within six months after the termination of such employment, any Option
        held by such Optionee that could have been exercised immediately prior
        to his or her death shall pass to the legal heir or personal representative
      

 - 7 -

	 	 of such Optionee, and shall be exercisable
        by the such person for a period of 12 months following the death of such
        Optionee. 

	 
	 8.5     
      
	 Vesting – Options
        held by a legal heir or personal representative or exercisable by a Guardian
        shall, during the period prior to their termination, continue to vest
        in accordance with any vesting schedule to which such Options are subject.
      

	 
	 8.6     
      
	 Deemed Non-Interruption of Employment
        – Employment shall be deemed to continue intact during any
        sick leave or other bona fide leave of absence if the period of such leave
        does not exceed 90 days or, if longer, for so long as the Optionee’s
        right to reemployment with the Company or an Affiliate of the Company
        is guaranteed either by statute or by contract. If the period of such
        leave exceeds 90 days and the Optionee’s reemployment is not so
        guaranteed, then his or her employment shall be deemed to have terminated
        on the ninety-first day of such leave. 

	 
	 9.     
      
	 TERMINATION OF OPTIONS 

	 
	 9.1     
      
	 Termination of Options –
        To the extent not earlier exercised or terminated in accordance with section
        8 above, an Option shall terminate at the earliest of the following dates:
      

	 
	 	 (a)
	 the termination date specified for such Option in
        the Option Agreement; 

	 
	 	 (b)
	 where the Optionee’s position as an employee,
        consultant, director or officer of the Company or an Affiliate of the
        Company is terminated for just cause, the date of such termination for
        just cause; 

	 
	 	 (c) 
	where the Optionee’s position as an employee,
        consultant, director or officer of the Company or an Affiliate of the
        Company terminates for a reason other than the Optionee’s disability,
        death, or termination for just cause, 30 days after such date of termination,
        or upon the Optionee making written application to the Committee and receiving
        the written consent of the Committee, which consent may be given, at the
        discretion of the Committee, up to 90 days after such date of termination;
      

	 
	 	 (d)
	 the date of any sale, transfer, assignment or hypothecation,
        or any attempted sale, transfer, assignment or hypothecation, of such
        Option in violation of Section 8.1 above; and 

	 
	 	 (e) 
	the date specified in Section 10.2 below for such
        termination in the event of a Terminating Event. 

	 
	 10.     
      
	 ADJUSTMENTS TO OPTIONS 

	 
	 10.1     
      
	 Alteration in Capital Structure
        – If there is a material alteration in the capital structure
        of the Company resulting from a recapitalization, stock split, reverse
        stock split, stock dividend, or otherwise, the Committee shall make such
        adjustments to this Plan and to the Options then outstanding under this
        Plan as the Committee determines to be appropriate and equitable under
        the circumstances, so that the proportionate interest of each holder of
        any such Option shall, to the extent practicable, be maintained as before
        the occurrence of such event. Such adjustments may include, without limitation
        (a) a change in the number or kind of shares of stock of the Company covered
        by such Options, and (b) a change in the Option Price payable per share;
        provided, however, that the aggregate Option Price applicable to the unexercised
        portion of existing Options shall not be altered, it being intended that
        any adjustments made with respect to such Options shall apply only to
        the 

 - 8 -

	 	 price per share and the number of shares subject
        thereto. For purposes of this Section 10.1, neither (i) the issuance of
        additional shares of stock of the Company in exchange for adequate consideration
        (including services), nor (ii) the conversion of outstanding securities
        of the Company into Shares shall be deemed to be material alterations
        of the capital structure of the Company. If the Committee determines that
        the nature of a material alteration in the capital structure of the Company
        is such that it is not practical or feasible to make appropriate adjustments
        to this Plan or to the Options granted hereunder, such event shall be
        deemed a Terminating Event for the purposes of this Plan. 

	 
	 10.2      	 Terminating Events – Subject
        to Section 10.3, all Options granted under the Plan shall terminate upon
        the occurrence of a Terminating Event. 

	 
	 10.3      	 Notice of Terminating Event –
        The Committee shall give notice to Optionees not less than thirty days
        prior to the consummation of a Terminating Event. Upon the giving of such
        notice, all Options granted under the Plan shall become immediately exercisable,
        notwithstanding any contingent vesting provision to which such Options
        may have otherwise been subject. 

	 
	 10.4      	 Corporate Reorganization – In
        the event of a reorganization as defined in this Section 10.4 in which
        the Company is not the surviving or acquiring corporation, or in which
        the Company is or becomes a wholly-owned subsidiary of another corporation
        after the effective date of the reorganization, then unless provision
        is made by the acquiring corporation for the assumption of each Option
        granted under this Plan, or the substitution of an option therefor, such
        that no Modification of any such Option occurs, all Options granted under
        this Plan shall terminate and such event shall be deemed a Terminating
        Event. For purposes of this Section 10.4, reorganization shall mean any
        statutory merger, statutory consolidation, sale of all or substantially
        all of the assets of the Company, or sale, pursuant to an agreement with
        the Company, of securities of the Company pursuant to which the Company
        is or becomes a wholly-owned subsidiary of another corporation after the
        effective date of the reorganization. 

	 
	 10.5      	 Acceleration of Date of Exercise –
        The Committee shall have the right to accelerate the date of exercise
        of any instalment of any Option. 

	 
	 10.6      	 Determinations to be Made By Committee –
        Adjustments and determinations under this Section 10 shall be made by
        the Committee, whose decisions as to what adjustments or determination
        shall be made, and the extent thereof, shall be final, binding, and conclusive.
      

	 
	 11.      	 TERMINATION AND AMENDMENT OF PLAN
      

	 
	 11.1      	 Termination of Plan – Unless
        earlier terminated as provided in Section 10 above or in Section 11.2
        below, the Plan shall terminate on, and no Option shall be granted under
        the Plan, after ten years has passed from the Effective Date of the Plan.
      

	 
	 11.2      	 Power of Committee to Terminate or Amend Plan
        – Subject to the approval of any stock exchange on which
        the Company is listed, the Committee may terminate, suspend or amend the
        terms of the Plan; provided, however, that, except as provided in Section
        10 above, the Committee may not do any of the following without obtaining,
        within 12 months either before or after the Committee’s adoption
        of a resolution authorizing such action, approval by the affirmative votes
        of the holders of a majority of the voting securities of the Company present,
        or represented, and entitled to vote at a meeting duly held in accordance
        with the applicable corporate laws, or by the written consent of the holders
        of a majority of the securities of the Company entitled to vote: 

	 	(a)	 increase the aggregate number of Shares which may
        be issued under the Plan; 

 - 9 -

	 	(b)	 materially modify the requirements as to eligibility for participation
      in the Plan; or 
	 	 	 
	 	(c)	materially increase the benefits accruing to participants under the Plan;
    

	 	 however, the Committee may amend the terms of the
        Plan to comply with the requirements of any applicable regulatory authority,
        without obtaining the approval of its shareholders. 

	 
	 11.3      	 No Grant During Suspension of Plan –
        No Option may be granted during any suspension, or after termination,
        of the Plan. Amendment, suspension, or termination of the Plan shall not,
        without the consent of the Optionee, alter or impair any rights or obligations
        under any Option previously granted. 

	 
	 12.      	 CONDITIONS PRECEDENT TO ISSUANCE OF SHARES
      

	 
	 12.1      	 Compliance with Laws – Shares
        shall not be issued pursuant to the exercise of any Option unless the
        exercise of such Option and the issuance and delivery of such Shares comply
        with all relevant provisions of law and the requirements of any stock
        exchange or over the counter market upon which the Shares may then be
        listed or otherwise traded. 

	 
	 12.2      	 Regulatory Approval to Issuance of Shares
        – The Company’s inability to obtain authority from
        any regulatory body having jurisdiction, which authority is deemed by
        the Company’s counsel to be necessary to the lawful issuance and
        sale of any Shares hereunder, shall relieve the Company of any liability
        with respect to the failure to issue or sell such Shares. 

	 
	 13.      	 USE OF PROCEEDS 

	 
	 13.1      	 Use of Proceeds – Proceeds from
        the sale of Shares pursuant to the Options granted and exercised under
        the Plan shall constitute general funds of the Company and shall be used
        for general corporate purposes. 

	 
	 14.      	 NOTICES 

	 
	 14.1      	 Notices – All notices, requests,
        demands and other communications required or permitted to be given under
        this Plan and the Options granted under this Plan shall be in writing
        and shall be either served personally on the party to whom notice is to
        be given, in which case notice shall be deemed to have been duly given
        on the date of such service; telefaxed, in which case notice shall be
        deemed to have been duly given on the date the telefax is sent; or mailed
        to the party to whom notice is to be given, by first class mail, registered
        or certified, return receipt requested, postage prepaid, and addressed
        to the party at his or its most recent known address, in which case such
        notice shall be deemed to have been duly given on the tenth postal delivery
        day following the date of such mailing. 

	 
	 15.      	 MISCELLANEOUS PROVISIONS 

	 
	 15.1      	 No Obligation to Exercise –
        Optionees shall be under no obligation to exercise Options granted under
        this Plan. 

 - 10 -

	 15.2      	 No Obligation to Retain Optionee
        – Nothing contained in this Plan shall obligate the Company
        or an Affiliate of the Company to retain an Optionee as an employee, officer,
        director, or consultant for any period, nor shall this Plan interfere
        in any way with the right of the Company or Affiliates of the Company
        to reduce such Optionee’s compensation. 

	 
	 15.3      	 Binding Agreement –
        The provisions of this Plan and each Option Agreement with an Optionee
        shall be binding upon such Optionee and the Qualified Successor or Guardian
        of such Optionee. 

	 
	 15.4      	 Use of Terms – Where
        the context so requires, references herein to the singular shall include
        the plural, and vice versa, and references to a particular gender shall
        include either or both genders. 

	 
	 15.5      	 Headings – The headings
        used in this Plan are for convenience of reference only and shall not
        in any way affect or be used in interpreting any of the provisions of
        this Plan. 

	 
	 16.      	 SHAREHOLDER APPROVAL TO PLAN
      

	 
	 16.1      	 Shareholder Approval to Plan –
        This Plan must be approved by a majority of the votes cast at a meeting
        of the shareholders of the Company, other than votes attaching to securities
        beneficially owned by: 

	 
	 	 (a)     
      
	 insiders of the Company, meaning directors, officers
        or greater than 10 percent shareholders; and 

	 
	 	 (b)      
	 Associates of persons referred to in (a). 

	 
	 17.      	 EFFECTIVE DATE OF PLAN 

	 
	 17.1      	 Effective Date of Plan –
        This Plan was approved and adopted by the Board of Directors on April
        19, 1996 and will be submitted to the shareholders of the Company for
        approval at the Company’s next annual general meeting and to the
        Vancouver Stock Exchange. The Effective Date of the Plan is April 19,
        1996, provided that any Options granted pursuant to the Plan prior to
        the date on which shareholder approval and regulatory approval to the
        Plan is given may not be exercised until the Plan and any such Options
        receive shareholder and regulatory approval.

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