Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 4.5    
    
    AGREEMENT    
  

THIS AGREEMENT made as at the 1st day of October, 2000 

BETWEEN: 

Dave Berenbaum, an individual residing at 3246 Regent Street, Richmond, B.C., V7E 2M9 

(hereinafter
referred to as the "Employee") 

OF
THE FIRST PART, 

AND: 

The Eyes Multimedia Productions Inc., a corporation incorporated under the laws of the Province of British Columbia and having its head office at #500,
56 East 2nd Avenue, Vancouver, B.C., V5T 1B1 

(hereinafter
referred to as the "Employer") 

OF
THE SECOND PART. 

        WHEREAS the Employee is presently employed, or is about to be employed, by the Employer in a position of confidence and trust and under
conditions where he has or may have access to technical, confidential and secret information regarding the existing or contemplated business of the Employer; 

        AND WHEREAS the Employee recognizes that as part of the duties of his employment, all ideas and suggestions of interest to the Employer,
conceived or made by him while he is employed by the Employer shall be made available to the Employer; 

        AND WHEREAS the Employer is associated as subsidiary, affiliate, associate or parent with corporations and unincorporated business
enterprises, the number of which varies from time to time but all of which during all pertinent times have common business interests either through ownership or agreement (hereinafter all of such
corporations and incorporated business enterprises are referred to collectively as the "Employer"); 

        AND WHEREAS the Employer is desirous of employing the Employee to provide the services outlined and described in Schedule "A" hereto in
connection with the business carried on by the Employer, consisting principally of the production and/or distribution of film and video programming and including certain other business activities
relating thereto (the "Business"); 

        AND WHEREAS during the course of the Employee's employment with the Employer, the Employee will be introduced to, have contact with, and
his services may be solicited by, one or more of the clients of the Employer; 

        AND WHEREAS the Employee may be trained by the Employer to perform services in connection with the Business and through such training the
Employee will acquire knowledge, experience and expertise, as well as detailed knowledge of the Employer's confidential customer and supplier lists and information, marketing techniques, price lists,
trade secrets and other property which is and shall be the property of the Employer, and the disclosure, loss or, unauthorized use of which would substantially harm the Business; 

        NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the respective covenants and agreements of the parties contained herein,
the sum of one dollar paid by each party 

 

hereto each of the other parties hereto and other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged by each of the parties hereto), it is agreed as follows: 

ARTICLE ONE—AGREEMENT  

	1.1
	Termination of Prior Agreements. This Employment Agreement, from and after the date hereof, supersedes and
takes the place of any other contracts of the same nature heretofore existing between the parties hereto. 

ARTICLE TWO—EMPLOYMENT  

	2.1
	Employment. Subject to the terms and conditions contained herein, the Employer agrees to employ the Employee
and the Employee agrees to be employed by the Employer in its Business and will have the title of "Vice-President of The Eyes Multimedia Productions Inc."

	2.2
	Conform with Directions and Policies. During his employment with the Employer, the Employee shall in all
respects conform to and comply with the directions and policies of the Employer communicated to the Employee, perform each of the duties assigned from time to time by the Employer to the best of his
skill and ability, faithfully and diligently serve the Employer, use his best efforts to promote the interests and reputation of the Employer and devote his full working time, attention and energies
to the Business of the Employer. Without restricting the generality of the foregoing, the Employee's duties and other conditions of employment shall initially be as set out in Schedule "A" attached
hereto.

	2.3
	Termination of Employment. The Employee's employment may be terminated:

	(a)
	by
the Employer,

	(i)
	for
just cause at any time by the Employer without notice and without any payment in lieu of notice. The effective date of termination may be the date
that such cause occurred. "Just Cause" includes, without limitation, any misconduct by the Employee, any willful breach or non-observance by him of any of the conditions or obligations of
this agreement, any neglect or refusal by him to carry out any of his duties hereunder, any negligent performance of such duties, any insubordinate or insulting behaviour towards the Employer, its
officers and clients;

	(ii)
	without
cause, upon giving the notice referred to in the Employment Standards Act (British Columbia)
and successors thereto; 

and
the Employee hereby waives any claim to further notice or compensation and the Employee agrees that the foregoing notice period(s) are deemed conclusively to be reasonable notice of termination. 

	(b)
	by
the Employee, upon the Employee giving the Employer one (1) month written notice. 

	2.8
	Employee not to Engage in Other Employment. The Employee agrees not to engage or be interested, directly or
indirectly, in any other business or employment during the term of this employment, except with the specific permission of the Employer, given in writing. 

ARTICLE THREE—REMUNERATION AND BENEFITS  

	3.1
	Remuneration. During the Employee's employment with the Employer the Employee shall be entitled to receive the
following remuneration:

	(a)
	a
salary of $60,000 per annum worked, payable semi-monthly;

	(b)
	such
remuneration as the Employee and the Employer may agree to in writing from time to time; 

2

 

	3.2
	No Right to Sue. The Employee shall have no further right to sue the Employer for damages or additional wages
or benefits other than as set out herein.

	3.3
	Adjustment of Remuneration. The Employer and the Employee may from time to time, by mutual written agreement,
adjust the amount of the salary referred to in Section 3.1 hereof without changing the interpretation of any of the other provisions of this Agreement.

	3.4
	Redefinition of Employment. The Employer and the Employee may from time to time by mutual written agreement
redefine the job title, description, place of employment, functions and/or responsibilities of the Employee without changing any of the rights or obligations of the parties hereto.

	3.5
	Reimbursement of Expenses. The Employee shall be reimbursed by the Employer for all business expenses actually
and properly incurred by the Employee in connection with his duties under this Agreement in accordance with the normal policy of the Employer. The reimbursement of expenses shall be subject to the
provision by the Employee to the Employer of receipts, statements and vouchers to the satisfaction of the Employer.

	3.6
	Benefits. The Employer shall, in its sole discretion, make available to the Employee the benefits it makes
available to other Employees from time to time. For greater certainty, such benefits shall include health care, life and disability insurance and sick leave, provided that such participation shall be
subject to the terms and limitations established from time by the Employer.

	3.7
	Bonus. In addition to the remuneration described in Paragraph 3.1 above, the Employee may be entitled to
receive bonuses in the form of participation in such profit sharing, stock purchase and stock option plans as may be instituted by the Employer from time to time. The Employee understands and agrees
that the amount of such bonus, entitlement to and payment of any bonuses is entirely within the sole and arbitrary discretion of the Employer. 

ARTICLE FOUR—VACATION  

	4.4
	Vacation Entitlement. The Employee shall be entitled to vacation period of three (3) weeks with pay, at
the end of each twelve-month period of employment of the Employee, to be taken as per company policy as communicated to the employee. 

ARTICLE FIVE—EMPLOYEE COVENANTS  

	5.1
	Covenants of the Employee. The Employee covenants both during and after employment with the Employer as
follows:

	(a)
	that,
except in fulfillment of his duties hereunder, he shall not enter into any contract on behalf of, or in the name of, the Employer, and shall not pledge the credit of the
Employer;

	(b)
	that
he shall not at any time be guilty of any act or conduct causing or calculated to cause damage or discredit to the reputation or business of the Employer;

	(c)
	that
as soon as notice of termination of employment has been given by either party and or his employment with the Employer shall terminate, whichever is the earlier, he shall deliver
up to the Employer all books, records, printouts, lists, notes and other documents or copies thereof relating to the business of the Employer which may be in his possession or directly or indirectly
under his control;

	(d)
	that
he shall not at any time during and/or after employment use for his own interest and shall not release directly or indirectly to anyone any information concerning the Employer's
business practices, operations, procedures, policies, budget, products, financial information, 

3

 

client
names, suppliers, etc., which the Employer shall deem confidential or against its business interests; and 

	(e)
	the
Employee further acknowledges that the information found in the Employer's books, records, printouts, lists, notes, or any other documents or copies thereof relating to the
business of the Employer is the exclusive property of the Employer and can only be used for the benefit of the Employer. 

ARTICLE SIX—INCAPACITY  

	6.1
	Incapacity of Employees. Notwithstanding any other provision in this Agreement, where during the term of this
Agreement the Employee by reason of his mental or physical condition (an "Incapacity") is unable, in the sole opinion of the Employer (acting reasonably), to perform his duties hereunder and such
Incapacity shall continue for a period of more than two (2), consecutive or non-consecutive months within a twelve (12) month period, the Employer shall hereafter have the right, on
not less than two (2) weeks' written notice to the Employee, to terminate this Agreement and the Employee's employment. In such case the Employee shall have no claim for wages or damages
against the Employer, except for the payment of his full salary to the date of termination. 

ARTICLE SEVEN—GENERAL CONTRACT PROVISIONS  

	7.1
	Governing Law. The terms of this Agreement are governed under the laws of the Province of British Columbia and
as such it is considered a contract of employment.

	7.2
	No Related Party Dealings. The Employee shall not be allowed to deal on behalf of the Employer with any company
in which he or his immediate family has an undisclosed financial interest.

	7.3
	Notice. Any notice to be given by either party hereunder may be validly given if sent by registered mail,
postage prepaid, addressed to the other at the respective addresses given below: 

	if to the Employer:	 	#500, 56 East 2nd Avenue

Vancouver, B.C. V5T 1B1
	

if to the Employee:	
 	

3246 Regent Street

Richmond, B.C. V6B 2S2

	7.4
	Language. The parties acknowledge that they have required this agreement to be drawn in the English language. 

        (Les
parties reconnaissent qu'ils ont exigé que la présente entente soit rédigée en langue anglaise). 

	7.5
	Survival. The representations, warranties and covenants of the Employee contained in this Agreement shall
survive any termination of the Employee's employment with the Employer.

	7.6
	Severability. If any covenant or provision contained herein is determined to be void, invalid or unenforceable
in whole or in part for any reason whatsoever, it shall not be deemed to affect or impair the validity or enforceability of any other covenant or provisions hereof, and such unenforceable covenant or
provisions or part thereof shall be treated as severable from the remainder of this Agreement.

	7.7
	Entire Agreement. This Agreement and any schedules attached hereto constitutes the whole of the agreement
between the parties. There are no collateral representations, agreements or conditions not specifically set forth herein. The Employee acknowledges that any express representations not contained in
this Agreement, made negligently, innocently or otherwise to the Employee, by the officers, directors, employees or agents of the Employer, whether acting with actual or ostensible 

4

 

authority
or otherwise, and whether such representations are made prior to, on or subsequent to the date hereof, have been, are or shall be so made without responsibility on the part of the Employer,
its officers, directors, employees or agents, for any tortious liability, economic losses, non-pecuniary losses or other damages. The Employee also further acknowledges and agrees that any
representations that may by implication arise as a result of the past, present or future interactions of the Employer and the Employee, shall not attribute or import any tortious liability to the
Employer, its officers, directors, employees or agents. 

	7.8
	Amendments. No modification, amendment or variation hereof shall be of effect or binding upon the parties
hereto unless agreed to in writing by each of them and thereafter such modification, amendment or variation shall have the same effect as if it had originally formed part of this Agreement.

	8.0
	Employee's Acknowledgment. The Employee acknowledges that he has read and understands the foregoing and that
the Employer has advised him that this Agreement substantially alters and supersedes the Employee's rights at common law. The Employee specifically acknowledges that the Employer has advised him to
seek independent legal advice prior to executing this Agreement. 

        IN WITNESS WHEREOF the parties have duly executed this Employment Agreement this 1st day of October 2000 to have effect as and from
the date first above written. 

	 
	 	 
	 	 

	SIGNED, SEALED AND DELIVERED	 	)	 	 
	by Dave Berenbaum in the presence of:	 	)	 	 
	 	 	)	 	 
	
	 	)	 	/S/ DAVE BERENBAUM
	Name	 	)	 	

	 	 	)	 	Dave Berenbaum
	 	 	)	 	 
	
	 	)	 	 
	Address	 	)	 	 
	 	 	)	 	 
	
	 	)	 	 
	 	 	)	 	 
	
	 	)	 	 
	Occupation	 	)	 	 
	

THE COMMON SEAL OF The Eyes	
 	

)	
 	

 
	Multimedia Productions Inc. was hereunto	 	)	 	 
	affixed in the presence of:	 	)	 	 
	 	 	)	 	 
	/S/BLAIR REEKIE	 	)	 	 
	
	 	)	 	 
	Authorized Signatory	 	)	 	(C/S)
	 	 	)	 	 
	
	 	)	 	 
	Authorized Signatory	 	 	 	 

5

Schedule "A"

JOB DESCRIPTION

Vice President, The Eyes Multimedia Productions Inc.  

JOB SUMMARY  

        The Vice President is responsible for the day to day operations of the Company and assists the President in securing growth and increased profitability. 

RELATIONSHIPS  

	Reports to	 	Blair Reekie, President

REQUIREMENTS  

	Knowledge	 	Knowledge of post production, technologies, systems and processes

Knowledge of production post-production equipment

Knowledge of television and corporate video production

	Behaviors/Skills	 	Ability to supervise and motivate subordinates

Team player; ability to share information and develop capabilities with subordinates

Superior networking and business development skills

Strong leader and manager

Fiscally responsible

Effective negotiating skills

        DUTIES:

	•
	Manage
to Company's contract production operations.

	•
	Direct
and manage the Company's post production facilities.

	•
	Act
as Post Supervisor on projects as needed.

	•
	Other
management duties as they arise. 

Other Responsibilities  

	•
	Development
of staff to their full potential 

PRIMARY OBJECTIVES  

	•
	Solidify
The Eyes position both professionally and fiscally

	•
	Exploit
existing and develop new opportunities for The Eyes, et al 

 

LONG-TERM OBJECTIVES  

	•
	Establish
the company as a leader in the provision of production/post production services for television 

        This
job description was prepared October 1, 2000. The above job description may be amended periodically as determined necessary by management and though discussions with the
incumbent, to reflect the dynamic nature of the position. 

2

QuickLinks

EXHIBIT 4.5 AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.1    
  

PEACE ARCH ENTERTAINMENT GROUP INC.
  (formerly "Vidatron Entertainment Group Inc.")
 AMENDED SHARE OPTION PLAN

ARTICLE ONE

PURPOSE AND INTERPRETATION  

Section 1.01 Purpose. The purpose of this amended Plan is to advance the interests of the Corporation by encouraging
equity participation in the Corporation through the acquisition of shares of the Corporation by directors, officers and employees of the Corporation. This Plan is hereby being amended to
(i) take into account the reclassification of the capital stock and effective consolidation of the outstanding shares of the Corporation; (ii) increase the number of shares issuable upon
the exercise of options pursuant to this Plan and (iii) make certain additional changes. 

Section 1.02 Definitions. In the Plan, the following capitalized words and terms shall have the following meanings: 

	(a)
	"Act" means the Company Act (British Columbia) or its successor, as amended from time
to time.

	(b)
	"Affiliate" shall have the meaning ascribed thereto in the Securities Act.

	(c)
	"Associate" shall have the meaning ascribed thereto in the Securities Act.

	(d)
	"Board of Directors" means the board of directors of the Corporation as constituted from time to time.

	(e)
	"Committee" means a committee appointed by the Board of Directors pursuant to Section 3.03 constituting no less than two members
of the Board of Directors.

	(f)
	"Corporation" means Peace Arch Entertainment Group Inc. (formerly Vidatron
Entertainment Group Inc.), a corporation incorporated under the Act, and its successors from time to time.

	(g)
	"Designated Affiliate" means the Affiliates of the Corporation designated by the Board of Directors for purposes of the Plan from time
to time.

	(h)
	"Exchange" means, at any time, The Toronto Stock Exchange or, if the Corporation's Shares are not then listed on such exchange, the
American Stock Exchange or such other stock exchange on which the Shares are listed, posted and called for trading.

	(i)
	"Exchange Act" means the U.S. Securities Exchange Act of 1934, as amended.

	(j)
	"Fair Market Value" when used with respect to the determination of the fair market value of the Shares means: (i) if Shares are
U.S. exchange-traded or traded on the NASDAQ small-cap market ("Small-Cap"), the closing sales or last sales price per share of the Shares; (ii) if Shares are regularly
traded in any over-the-counter market other than Small-Cap, the average of the bid and asked prices per share of the Shares; and (iii) if Shares are not
traded as described in (i) and (ii), the per share fair market value of the Shares as determined in good faith by the Board of Directors or Committee on such basis as the Board of Directors or
Committee in its sole discretion shall choose. The date of determination of Fair Market Value with respect to (i), (ii) or (iii) shall be the date of the grant of an option under this
Plan, or if no trading day, the last day prior to the grant on which there has been such trading.

	(k)
	"Holding Company" shall have the meaning specified in Section 2.02 hereof.

	(l)
	"Incentive Stock Option" means any option granted under the Plan intended to satisfy the requirements under I.R.C.
Section 422(b) as an incentive stock option which qualifies for special federal income tax treatment under I.R.C. Section 421 et seq.

	(m)
	"I.R.C." means the U.S. Internal Revenue Code of 1986, as it may be amended from time to time. 

 
	(n)
	"Income Tax Regulations" means the regulations promulgated by the United States Treasury Department under the I.R.C.

	(o)
	"Insider" shall have the meaning ascribed thereto in the Securities Act, other than a person who is an Insider solely by virtue of
being a director or senior officer of a subsidiary of the Corporation and any Associate of an Insider.

	(p)
	"Issuer Bid" shall have the meaning ascribed thereto in the Securities Act.

	(q)
	"Key Contributors" means a person who is an "employee" or "consultant" within the meaning of those words under the Securities Act
engaged by the Corporation to assist the Corporation in the conduct and growth of its business.

	(r)
	"Nonstatutory Stock Option" means any options granted under this Plan which do not qualify and are not intended to be treated as
Incentive Stock Options.

	(s)
	"Option Agreement" shall have the meaning specified in Section 2.11 hereof.

	(t)
	"Option Period" means the period of time an option may be exercised as specified in Subsection 2.07(a) hereof.

	(u)
	"Participant" means:

	(i)
	with
respect to the granting of Incentive Stock Options, any employee or employee/director of the Corporation or of an Affiliate of the Corporation;

	(ii)
	with
respect to the granting of Nonstatutory Stock Options, a participant under the Plan. 

	(v)
	"Plan" means the share option plan provided for herein.

	(w)
	"RRSP" shall have the meaning specified in Section 2.02 hereof.

	(x)
	"Restricted Shareholder" means a Participant granted an Incentive Stock Option who, at the time such option is granted, beneficially
owns shares possessing more than 10% of the total combined voting power of all classes of shares of the Corporation or any Affiliate of the Corporation, with stock ownership determined in accordance
with the attribution rules of I.R.C. Section 425(d).

	(y)
	"Rule 16b-3" means Rule 16b-3 promulgated by the Securities and Exchange Commission under the
Exchange Act as such rule may be amended from time to time.

	(z)
	"Securities Act" means the Securities Act (British Columbia) or its successor, as
amended from time to time and, for purposes of subsections 1.02(q) and 3.06(a) hereof, includes the Rules and/or Regulations promulgated under the Securities Act and the orders, published policy
statements and notices and interpretation notes of the British Columbia Securities Commission.

	(aa)
	"Share Compensation Arrangement" means a stock option, stock option plan, employee stock purchase plan or any other compensation or
incentive mechanism involving the issuance or potential issuance of securities of the Corporation to one or more of the following persons: (i) an employee or insider of the Corporation or of
any of its subsidiaries; and (ii) any other person or company engaged to provide ongoing management or consulting services for the Corporation or for any entity controlled by the Corporation,
including a share purchase from treasury which is financially assisted by the Corporation by way of a loan, guarantee or otherwise.

	(bb)
	"Shares" means, with respect to options granted under the Plan prior to its amendment hereby and outstanding on the date of this
amendment, Class A Multiple Voting Shares and Class B Subordinate Voting Shares, and, with respect to options granted under the Plan after the date of this amendment, Class B
Subordinate Voting Shares only, all as constituted on the date of this amendment. 

2

 
	(cc)
	"Take-over Bid" shall have the meaning ascribed thereto in the Securities Act.

	(dd)
	"Vested Installment" means any vested installment of an option granted under the Plan. 

ARTICLE TWO

SHARE OPTION PLAN  

Section 2.01 The Plan. The Plan is hereby established for certain employees, senior officers, directors and Key
Contributors of the Corporation and Designated Affiliates. 

Section 2.02 Participants. Participants in the Plan shall be directors, senior officers, employees and Key Contributors
of the Corporation or any of its Designated Affiliates (including officers thereof, whether or not directors) who, by the nature of their positions or jobs are, in the opinion of the Board of
Directors, upon the recommendation of the President of the Corporation, in a position to contribute to the success of the Corporation. At the request of any Participant, options granted to such
Participant may be issued to and registered in the name of a personal holding company wholly-owned by such Participant ("Holding Company") or to a registered retirement savings plan established by
such Participant ("RRSP") and, in such event, the provisions of this Plan shall apply to such options mutatis mutandis as though they were issued to and registered in the name of the Participant. 

Section 2.03 Amount of Options. The determination regarding the aggregate number of Shares subject to options in favour of any Participant will
take into consideration the Participant's present and potential contribution to the success of the Corporation and shall be determined from time to time by the Board of Directors. The aggregate number
of Shares issuable upon the exercise of options pursuant to this Plan and any other Share Compensation Arrangements, subject to adjustment or increase of such number pursuant to Section 2.10
hereof, shall be 115,950 Class A Multiple Voting Shares and 650,000 Class B Subordinate Voting Shares. The maximum number of Shares reserved for issuance to any one Participant upon the
exercise of options shall not exceed 5% of the total combined number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares outstanding immediately prior to such
reservation for issuance. 

Section 2.04 Limits with respect to Insiders.

	(a)
	The
number of Shares issuable to Insiders pursuant to options granted under the Plan, together with Shares issuable to Insiders under any other Share Compensation Arrangement of the
Corporation, shall not:

	(i)
	exceed
10% of the combined number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares outstanding immediately prior to
the grant of any such option; or

	(ii)
	result
in the issuance to Insiders, within a one year period, of in excess of 10% of the combined number of Class A Multiple Voting Shares and
Class B Subordinate Voting Shares outstanding immediately prior to the grant of any such option. 

	(b)
	The
number of Shares issuable to any Insider and such Insider's Associates pursuant to options granted under the Plan, together with Shares issuable to such Insider or such Insider's
Associates under any other Share Compensation Arrangement of the Corporation shall not, within a one year period, exceed 5% of the combined number of Class A Multiple Voting Shares and
Class B Subordinate Voting Shares outstanding immediately prior to the grant of any such option.

	(c)
	Any
Shares issuable pursuant to an option granted to a Participant prior to the Participant becoming an Insider shall be excluded for the purposes of the limits set out in Subsections
2.04(a) and 2.04(b) hereof. 

3

 

Section 2.05 Price and Vesting.

	(a)
	The
exercise price per Share shall be determined by the Board of Directors at the time the option is granted, but such price shall not be less than the higher of (i) the Fair
Market Value of the Shares on the date the option is granted and, if the Participant is a Restricted Shareholder, shall not be less than 110% of the Fair Market Value of the Shares on the date the
option is granted, and (ii) the average of the daily high and low board lot trading prices of the Shares on the Exchange over the 10 day period immediately preceding the date of the
grant; and (iii) the closing price of the Shares on the Exchange on the last trading day preceding the date on which the grant of the option is approved by the Board of Directors (or if the
Shares are not then listed and posted for trading on the Exchange, on such exchange or quotation system upon which the Shares are listed and posted for trading as may be selected by the Board of
Directors) or, if the Shares did not trade on the Exchange on such last trading day, the average of the high and low prices in respect of the Shares on the Exchange for the previous five trading days.
In the event that the Shares are not listed and posted for trading on any stock
exchange or other quotation system, the exercise price shall be the fair market value of the Shares as determined by the Board of Directors in its sole discretion.

	(b)
	In
the event that the aggregate Fair Market Value (determined as of the date an option is granted) of the Shares with respect to which Incentive Stock Options are exercisable for the
first time by a Participant during any calendar year under the Plan exceeds $100,000(U.S.), options with respect to and to the extent of such excess shall be treated as Nonstatutory Stock Options.
This Section 2.05(b) shall be applied by taking options which are intended to be Incentive Stock Options into account in the order in which they were granted. 

Section 2.06 Lapsed Options. In the event that options granted under the Plan are surrendered, terminate or expire
without being exercised in whole or in part, the Shares reserved for issuance but not purchased under such lapsed options shall be available for subsequent options to be granted under the Plan. 

Section 2.07 Consideration, Option Period, Payment, Vesting and Taxes.

	(a)
	The
period during which options may be exercised shall be determined by the Board of Directors, in its discretion, to a maximum of ten years from the date the option is granted (the
"Option Period"), except as the same may be reduced with respect to any option as provided in Sections 2.08 and 2.09 hereof respecting termination of employment or death of the Participant and except
that no Participant who is a Restricted Shareholder may be granted an Incentive Stock Option which is exercisable after the expiration of five years after the date of the grant of the option.

	(b)
	Subject
to any other provision of this Plan, an option may be exercised from time to time during the Option Period by delivery to the Corporation at its registered office of a written
notice of exercise addressed to the Secretary of the Corporation specifying the number of Shares with respect to which the option is being exercised and accompanied by payment in full of the exercise
price therefor. Certificates for such Shares shall be issued and delivered to the Participant as soon as practicable following receipt of such notice and payment.

	(c)
	Except
as set forth in Sections 2.08 and 2.09 hereof, no option may be exercised unless the Participant is, at the time of such exercise, a director, senior officer or Key Contributor
of or in the employ of the Corporation or any of its Designated Affiliates and shall have been continuously a director or senior officer or Key Contributor or so employed since the grant of his or her
option. Absence on leave with the approval of the Corporation or a Designated Affiliate shall not be considered an interruption of employment for purposes of the Plan. 

4

 
	(d)
	The
exercise of any option will be contingent upon receipt by the Corporation of cash payment of the full exercise price of the Shares which are the subject of the exercised option.
No Participant or his or her legal representatives, legatees or distributees will be, or will be deemed to be, a holder of any Shares with respect to which he or she was granted an option under the
Plan, unless and until certificates for such Shares are issued to him or her under the terms of the Plan.

	(e)
	Notwithstanding
any other provision of this Plan or in any option granted to a Participant, the grant of any option, and the Corporation's obligation to issue Shares to a Participant
pursuant to the exercise of an option, shall be subject to:

	(i)
	completion
of such registration or other qualification of such Shares or obtaining approval of such regulatory authorities as the Corporation shall
determine to be necessary or advisable in connection with the authorization, issuance or sale thereof; and

	(ii)
	the
listing of such Shares on the Exchange or on such other exchange or stock quotation system, as the case may be, on which the Shares are listed and
posted for trading; and

	(iii)
	the
receipt from the Participant of such representations, warranties, agreements and undertakings, including as to future dealings in such Shares, as
the Corporation or its counsel determines to be necessary or advisable in order to ensure compliance with all applicable securities laws including but not limited to a representation that the option
and/or Shares are being acquired only for investment and without any present intention to sell or distribute such option and/or Shares, if such a representation is required under the 1933 Act or any
other applicable law, rule or regulation. 

In
furtherance of the foregoing, no Shares shall be issued or delivered upon exercise of an option unless and until there shall have been compliance with all applicable requirements of the Securities
Act of 1933, as amended, (the "1933 Act"), all applicable listing requirements of any market or securities exchange on which Shares are then listed, and any other requirement of law or of any
regulatory body having jurisdiction over such issuance and delivery. The inability of the Corporation to obtain any required permits, authorizations, or approvals necessary for the lawful issuance and
sale of any Shares hereunder on the terms deemed reasonable by the Board of Directors shall relieve the Corporation, the Board of Directors and any Committee of any liability in respect of the
non-issuance or sale of such Shares as to which such requisite permits, authorization, or approvals shall not have been obtained. 

	(f)
	A
Participant may, rather than exercise options which he or she is entitled to exercise under Subsection 2.07(b), elect in lieu of receiving the Shares to which such Participant would
have been entitled on exercise of such options ("Designated Shares"), receive instead the number of Shares, disregarding fractions which, when multiplied by the fair value per share (which shall be
the weighted
average trading price of the Shares on the Exchange (or if the Shares are not listed and posted for trading on the Exchange, on such other stock exchange or quotation system on which the Shares are
listed and posted for trading as selected by the Board of Directors) during the five (5) days preceding the date of determination) of the Designated Shares, is equal to the product of the
number of Designated Shares times the difference between the fair value and the exercise price per share of the Designated Shares.

	(g)
	If
there is a Take-over Bid or Issuer Bid made for all or any of the issued and outstanding Shares, then the Board of Directors may, by resolution, permit all options
outstanding under the Plan to become immediately exercisable in order to permit Shares issuable under such options to be tendered to such bid. 

5

 
	(h)
	Subject
to the limitations set forth herein and/or in any applicable Option Agreement entered into hereunder, options granted under the Plan shall vest and be exercisable in
accordance with the rules set forth in this subsection 2.07(h):

	(i)
	Subject
to the other provisions of this subsection 2.07(h), options shall vest and become exercisable at such times and in such installments as the
Board of Directors shall provide in each individual Option Agreement. Notwithstanding the foregoing, the Board of Directors may in its sole discretion accelerate the time at which an option or
installment thereof may be exercised. Unless otherwise provided in this subsection 2.07(h) or in the Option Agreement pursuant to which an option is granted, an option may be exercised when Vested
Installments vest as provided in such Option Agreement and at any time thereafter until the end of the Option Period.

	(iii)
	All
installments of an option granted under the Plan shall expire and terminate at the end of the Option Period. 

	(i)
	In
the Board of Directors' discretion, the Board of Directors may, with a Participant's consent, substitute Nonstatutory Stock Options for outstanding Incentive Stock Options, and any
such substitution shall not constitute a new option grant for the purposes of this Plan, and shall not require a revaluation of the option exercise price for the substituted option. Any such
substitution may be implemented by an amendment to the applicable Option Agreement or in such other manner as the Board of Directors in its discretion may determine.

	(j)
	The
Board of Directors shall make such provisions and take such steps as it deems necessary or appropriate for the withholding of any federal, state, provincial, local and other tax
required by law to be withheld with respect to the grant or exercise of an option under the Plan, including, without limitation, the deduction of the amount of any such withholding tax from any
compensation or other
amounts payable to a Participant by the Corporation or any Affiliate of the Corporation or requiring a Participant (or the Participant's beneficiary or legal representative) as a condition of granting
or exercising an option to pay to the Corporation or any such Affiliate of the Corporation any amount required to be withheld, or to execute such other documents as the Board of Directors deems
necessary or desirable in connection with the satisfaction of any applicable withholding obligation. In the discretion of the Board of Directors, upon exercise of a Nonstatutory Stock Option, the
Participant may request the Corporation to withhold from the Shares to be issued upon such exercise that number of Shares (based on the Fair Market Value of the Shares as of the day immediately
preceding the day notice of exercise is received by the Corporation) that would satisfy any tax withholding requirement; provided, however, that any such withholding shall conform to any restrictions
as to timing or otherwise under Rule 16b-3.

	(k)
	Each
Option Agreement and each certificate representing Shares acquired upon exercise of an option shall be endorsed with all legends, if any, required by applicable federal, state
and provincial securities laws to be placed on the Option Agreement and/or the certificate. The determination of which legends, if any, shall be placed upon Option Agreements and/or the Shares shall
be made by the Board of Directors in its sole discretion and such decision shall be final and binding. 

Section 2.08 Termination of Employment. If a Participant shall: 

	(a)
	cease
to be a director, senior officer or Key Contributor of the Corporation or any of its Designated Affiliates (and is not or does not continue to be an employee thereof); or

	(b)
	cease
to be employed by the Corporation or any of its Designated Affiliates (and is not or does not continue to be a director or senior officer thereof) for any reason (other than
death) or shall receive notice from the Corporation or any of its Designated Affiliates of the termination of his or her employment; 

6

 

(collectively,
"Termination") he or she or it may, but only within 60 days next succeeding such Termination, exercise his or her or its options to the extent that he or she or it was entitled
to exercise such options at the date of such Termination, including the rights under Subsection 2.07(f); provided that in no event shall such right extend beyond the Option Period. This section is
subject to any agreement with any director or senior officer of the Corporation or any of its Designated Affiliates with respect to the rights of such director or senior officer upon Termination or
change in control of the Corporation. 

Section 2.09 Death of Participant. In the event of the death of a Participant who is a director, senior officer or Key
Contributor of the Corporation or any of its Designated Affiliates or who is an employee
having been continuously in the employ of the Corporation or any of its Designated Affiliates for one year from and after the date of the granting of his or her option, the option theretofore granted
to him or her shall be exercisable within the six months next succeeding such death (including the rights under Subsection 2.07(f)) and then only: 

	(a)
	by
the person or persons to whom the Participant's rights under the option shall pass by the Participant's will or the laws of descent and distribution; and

	(b)
	to
the extent that he or she was entitled to exercise the option at the date of his or her death, provided that in no event shall such right extend beyond the Option Period. 

Section 2.10 Adjustment in Shares Subject to the Plan. In the event that: 

	(a)
	there
is any change in the Shares of the Corporation through subdivisions or consolidations of the share capital of the Corporation, or otherwise;

	(b)
	the
Corporation declares a dividend on Shares payable in Shares or securities convertible into or exchangeable for Shares; or

	(c)
	the
Corporation issues Shares, or securities convertible into or exchangeable for Shares, in respect of, in lieu of, or in exchange for, existing Shares, 

the
number of Shares available for option, the Shares subject to any option, and the option price thereof, shall be adjusted appropriately by the Board of Directors in its sole discretion and such
adjustment shall be effective and binding for all purposes of the Plan. 

Section 2.11 Effecting Grants. Subject to Section 3.04, the grant of options under the Plan shall be effected by
the execution and delivery of a stock option agreement (an "Option Agreement") in such form which is consistent with the provisions of the Plan as may be approved by the Board of Directors. 

Section 2.12 Record Keeping. The Corporation shall maintain a register in which shall be recorded: 

	(a)
	the
name and address of each Participant in the Plan; and

	(b)
	the
number of options granted to a Participant and the number of options outstanding. 

ARTICLE THREE

GENERAL  

Section 3.01 Transferability. The benefits, rights and options accruing to any Participant in accordance with the terms
and conditions of the Plan shall not be transferable by the Participant except (i) from the Participant to his or her Holding Company or RRSP or from a Holding Company or RRSP to the
Participant and, in either such event, the provisions of this Plan shall apply mutatis mutandis as though they were originally issued to and registered in the name of the Participant, or
(ii) as otherwise specifically provided herein. During the lifetime of a Participant, all benefits, rights and options shall only be exercised by the Participant or by his or her guardian or
legal representative. 

7

 

Section 3.02 Employment. Nothing contained in the Plan or an Option Agreement shall confer upon any Participant any right
with respect to employment or continuance of employment with the Corporation or any Affiliate, or interfere in any way with the right of the Corporation or any Affiliate to terminate the Participant's
employment at any time. Participation in the Plan by a Participant shall be voluntary. 

Section 3.03 Delegation to Committee.

	(a)
	The
Board of Directors in its sole discretion may from time to time appoint a Committee of no less than two members of the Board of Directors to administer the Plan and, subject to,
and to the extend required by, applicable law including the I.R.C. and Rule 16b-3, to exercise all of the powers, authority and discretion of the Board of Directors under this Plan.
The Board of Directors may from time to time remove members from, or add members to, the Committee, and vacancies on the Committee shall be filled by the Board of Directors. The Board of Directors may
abolish the Committee at any time or revest in the Board of Directors the administration of the Plan.

	(b)
	The
Committee shall report to the Board of Directors the names of Participants granted options under this Plan, the number of Shares covered by each such option and the terms and
conditions of each such option. 

Section 3.04 Administration of the Plan. The Plan shall be administered by the Board of Directors of the Corporation. The
Board of Directors shall be authorized to interpret and construe the Plan and may, from time to time, establish, amend or rescind rules and regulations required for carrying out the purposes,
provisions and administration of the Plan and determine the Participants to be granted options, the number of Shares covered thereby, the exercise price therefor and the time or times when they may be
exercised. Any such interpretation or construction of the Plan shall be final and conclusive. All administrative costs of the Plan shall be paid by the Corporation. The senior officers of the
Corporation are hereby authorized and directed to do all things and execute and deliver all instruments, undertakings and applications and writings as they, in their absolute discretion, consider
necessary for the implementation of the Plan and of the rules and regulations established for administering the Plan. 

Section 3.05 Amendment, Modification or Termination of the Plan. Subject to Section 3.03, the Board of Directors
reserves the right to amend, modify or terminate the Plan at any time if and when it is advisable in the absolute discretion of the Board of Directors. However, any amendment of the Plan which would: 

	(a)
	materially
increase the benefits under the Plan;

	(b)
	materially
increase the number of Shares which may be issued under the Plan;

	(c)
	materially
modify the requirements as to the eligibility for participation in the Plan; or

	(d)
	otherwise
require shareholder approval to comply with Rule 16b-3, the I.R.C. or any other applicable law, rule or regulation; 

shall
be effective only upon the approval of the shareholders of the Corporation. Any material amendment to any provision of the Plan shall be subject to any necessary approvals by the Exchange, other
quotation system or any stock exchange or securities regulatory body having jurisdiction over the securities of the Corporation. 

Section 3.06 Compliance with Applicable Regulations and Laws. Notwithstanding anything in this Plan to the contrary, to
the extent necessary or desirable to comply with Rule 16b-3, the I.R.C., or any other applicable law, rule or regulation, including without limitation, the Securities Act, the Plan
shall be administered in accordance with the requirements imposed by such laws, rules or regulations. 

8

 

Section 3.07 Consolidation, Merger, etc. If there is a consolidation, merger or statutory amalgamation or arrangement of
the Corporation with or into another corporation, a separation of the business of the Corporation into two or more entities or a transfer of all or substantially all of the assets of the Corporation
to another entity, upon the exercise of an option under the Plan, the holder thereof shall be entitled to receive the securities, property or cash which the holder would have received upon such
consolidation, merger, amalgamation, arrangement, separation or transfer if the holder had exercised the option immediately prior to such event, unless the directors of the Corporation otherwise
determine the basis upon which such option shall be exercisable. 

Section 3.08 Information. During the period that options are outstanding, the Corporation will provide Participants with
copies of all reports, proxy statements and other communications distributed to its shareholders generally. 

Section 3.09 No Representation or Warranty. The Corporation makes no representation or warranty as to the future market
value of any Shares issued in accordance with the provisions of the Plan. 

Section 3.10 Interpretation. This Plan shall be governed by and construed in accordance with the laws of the Province of
British Columbia and each Participant and the Corporation irrevocably attorn to the exclusive jurisdiction of the Courts of such Province. 

Section 3.11 Approval and Effective Date. This Amended Plan adopted by the Board of Directors as of July 14, 1999,
shall be effective as of the date it is approved by the shareholders of the Corporation and any securities regulatory body or stock exchange having jurisdiction over the securities of the Corporation. 

Original
Plan dated 17th July 1997. 

Amended
Plan dated July 14, 1999. 

Second
Amended Plan dated February 22, 2001 

9

QuickLinks

EXHIBIT 10.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]