Document:

B2Gold Corp. - Exhibit 4.1 - Filed by newsfilecorp.com

	B2GOLD CORP. 
	 
	PERFORMANCE SHARE UNIT PLAN 
	 

	1. 	
      GENERAL

	 	 
	1.1. 	
      Purpose

	 	 
		
      The B2Gold Corp. Performance Share Unit Plan has been
      established to provide a greater alignment of interests between Designated
      Participants and shareholders of the Company, and to provide a
      compensation mechanism for Designated Participants that appropriately
      reflects the responsibility, commitment and risk accompanying their
      management roles. The Plan is also intended to assist the Company to
      attract and retain Designated Participants with experience and ability,
      and to allow Designated Participants to participate in the success of the
      Company. This Plan is effective as of May 7, 2019 (the “Effective
      Date”).

	 	 
	2. 	
      INTERPRETATION

	 	 
	2.1. 	
      Definitions

	 	 
		
      In this Plan, the following terms shall have the
      following meanings:

	 	 
		
      “Additional Period” has the meaning ascribed
      thereto in Section 5.2.

	 	 
		
      “Affiliate” has the meaning ascribed thereto in
      the TSX Rules;

	 	 
		
      “Applicable Law” means any applicable provision of
      law, domestic or foreign, including, without limitation, applicable
      securities legislation, together with all regulations, rules, policy
      statements, rulings, notices, orders or other instruments promulgated
      thereunder, and the TSX Rules;

	 	 
		
      “Associate” has the meaning ascribed thereto in
      the TSX Rules;

	 	 
		
      “Acquirer” has the meaning ascribed thereto in
      Section 6.3(a);

	 	 
		
      “Beneficiary” means any person designated by a
      Designated Participant by written instrument filed with the Committee to
      receive any amount payable in respect of Performance Share Units in the
      event of the Designated Participant’s death or, failing any such effective
      designation, the Designated Participant’s estate;

	 	 
		
      “Blackout Period” means, in respect of a
      Designated Participant, an interval of time during which the Company has
      determined pursuant to applicable securities laws or any policy of the
      Company that no Designated Participant may trade any securities of the
      Company;

	 	 
		
      “Board” means the Board of Directors of the
      Company;

	 	 
		
      “Cause” means any act, omission or course of
      conduct recognized as cause for dismissal under Applicable Law, including,
      without limitation, embezzlement, theft, fraud, wilful failure to follow
      any lawful directive of the Company and wilful misconduct detrimental to
      the interests of the Company;

2

“Change of Control” means:

	 	(a) 	
      the acquisition, directly or indirectly, by any person or
      group of persons acting jointly or in concert, as such terms are defined
      in the Securities Act (British Columbia), of common shares of the
      Company which, when added to all other common shares of the Company at the
      time held directly or indirectly by such person or persons acting jointly
      or in concert, constitutes for the first time in the aggregate 20% or more
      of the outstanding common shares of the Company; or

	 	 	 
	 	(b) 	
      the removal, by extraordinary resolution of the
      shareholders of the Company, of more than 50% of the then incumbent
      members of the Board, or the election of a majority of the directors
      comprising the Board who were not nominated by the Company’s incumbent
      Board at the time immediately preceding such election; or

	 	 	 
	 	(c) 	
      consummation of a sale of all or substantially all of the
      assets of the Company; or

	 	 	 
	 	(d) 	
      the consummation of a reorganization, plan of
      arrangement, merger or other transaction which has substantially the same
      effect as (a) to (c) above;

“Change of Control Date”
means the date on which any Change of Control becomes effective;

“Committee” means Compensation
Committee of the Board, or such other committee or persons (including the Board)
as may be designated from time to time to administer the Plan;

“Common Share” means a common
share of the Company eligible to be voted at a meeting of shareholders of the
Company; 

“Company” means B2Gold Corp. and
its successors; 

“Control”, when applied to the
relationship between a Person and a company, means:

	 	(a) 	
      the beneficial ownership by that Person and its Related
      Entities at the relevant time of securities of that company to which are
      attached more than 50 per cent of the votes that may be cast to elect
      directors, otherwise than by way of security only; and

	 	 	 
	 	(b) 	
      the votes carried by such securities being entitled, if
      exercised, to elect a majority of the board of directors of the
      company;

“Designated Participant” means
an executive officer or employee of the Company or of a Related Entity of the
Company or a person designated by the Company who provides services to the
Company or a Related Entity of the Company, that is eligible to receive
Performance Share Units pursuant to Form S-8 (or any successor form) under the
U.S. Securities Act of 1933, as amended, to whom Performance Share Units are
granted pursuant to Section 4.1 and the Permitted Assigns of each such executive
officer, employee or person designated by the Company; 

“Disability” means any
disability with respect to a Designated Participant, which the Board, in its
sole and unfettered discretion, considers likely to prevent permanently the
Designated Participant from: 

3

	 	(a) 	
      being employed or engaged by the Company, its
      Subsidiaries or another employer, in a position the same as or similar to
      that in which he was last employed or engaged by the Company or its
      Subsidiaries;

	 	 	 
	 	(b) 	
      acting as a director or officer of the Company or its
      Subsidiaries; or

	 	 	 
	 	(c) 	
      engaging in any substantial gainful activity by reason of
      any medically determinable mental or physical
impairment;

“Good Reason” means “Good
Reason” or “Good Cause” as defined in the employment agreement, if any, between
the relevant Designated Participant and the Company or a Subsidiary of the
Company and, if there is no such definition or agreement, “Good Reason” will
arise within 12 months following a Change of Control where the Designated
Participant was induced by the actions of the employer to resign or terminate
his employment, other than on a purely voluntary basis, as a result of the
occurrence of one or more of the following events without the Designated
Participant’s written consent, provided that such resignation shall only be
designated as for “Good Reason” if the Designated Participant has provided 10
days’ written notice of such occurrence to the employer immediately upon
occurrence of such an event and the employer has not corrected such occurrence
within such 10-day period:

	 	(a) 	
      a materially adverse change in the Designated
      Participant’s position, duties, or responsibilities other than as a result
      of the Designated Participant’s physical or mental incapacity which
      impairs the Designated Participant’s ability to materially perform the
      Designated Participant’s duties or responsibilities as confirmed by a
      physician;

	 	 	 
	 	(b) 	
      a materially adverse change in the Designated
      Participant’s reporting relationship that is inconsistent with the
      Designated Participant’s title or position;

	 	 	 
	 	(c) 	
      a reduction by the employer of the base salary of the
      Designated Participant;

	 	 	 
	 	(d) 	
      a reduction by the employer in the aggregate level of
      benefits made available to the Designated Participant; or

	 	 	 
	 	(e) 	
      the relocation by the employer of the Designated
      Participant’s principal office to a location that is more than 50
      kilometres from the Designated Participant’s existing principal
    office;

“Grant Notice” means with
respect to particular Performance Share Units, a notice substantially in the
form of Schedule A and containing such other terms and conditions relating to
the grant of such Performance Share Units as the Committee may prescribe;

“Insider” means:

	 	(a) 	
      an “insider” as defined in the TSX Rules; and

	 	 	 
	 	(b) 	
      an Associate of any person who is an insider under
      subsection (a);

“Market Value” of a Common Share
on any date means the volume weighted average trading price of the Common Shares
on the TSX (or any other stock exchange on which the majority of the volume of
trading of the Common Shares has occurred over the relevant period) over the
five Trading Days immediately preceding such date; provided, however, if the
Common Shares are not listed and posted for trading on any stock exchange at the
time such calculation is to be made, the Market Value per Common Share shall
be the market value of a Common Share as determined by the Committee acting in
good faith, or in the absence of the Committee, by the Board acting in good
faith;

4

“NI 45-106” means National
Instrument 45-106 Prospectus and Registration Exemptions of the Canadian
Securities Administrators;

“Non-Employee Director” means
any director of the Company or any of its associated, affiliated, controlled or
subsidiary companies who does not have an employment or consulting agreement
with the Company or one of its associated, affiliated, controlled or subsidiary
companies;

“Performance Measures” means,
for a Performance Period, the performance measures that may, without
restriction, be taken into consideration in granting Performance Share Units
under this Plan and determining the Performance Percentage in respect of
Performance Share Units, which measures may include, without limitation, any one
or more of the following: (i) total shareholder return, absolute or relative;
(ii) the market price of the Common Shares from time to time; (iii) the
financial performance or results of the Company or any Related Entity, or a
business unit or division therefor; (iv) other operational or performance
criteria relating to the Company or any Related Entity or a business unit or
division thereof, including the achievement of corporate or personal objectives,
and/or the attainment of milestones relating to financial, operational,
strategic or other objectives of the Company; (v) activities related to growth
of the Company, any Related Entity or a business unit or division thereof; (vi)
health and safety performance of the Company, a Related Entity or a business
unit or division thereof; (vii) the execution of the Company’s strategic plan as
determined by the Board; (viii) other performance criteria and results relating
to the Designated Participants, the Company, a Related Entity or a business unit
or division thereof; and (ix) such additional or other measures as the Committee
or the Board, in their sole discretion, shall consider appropriate in the
circumstances; 

“Performance Percentage” means
the percentage determined by the Committee in accordance with Section 4.4;

“Performance Period” has the
meaning ascribed thereto in Section 4.2;

“Performance Share Unit” means a
unit credited by means of an entry on the books of the Company to a Designated
Participant pursuant to this Plan, representing the right to receive, subject to
and in accordance with the provisions of this Plan and the applicable Grant
Notice, such number of Common Shares determined in accordance with the
provisions of this Plan and the applicable Grant Notice;

“Performance Share Unit Account”
has the meaning ascribed thereto in Section 4.9;

“Permitted Assign” means
permitted assigns within the meaning ascribed thereto in Section 2.22 of NI
45-106, that are permitted under Form S-8 (or any successor form) under the U.S.
Securities Act of 1933, as amended;

“Person” includes an individual,
a corporation, a partnership, a trust, an unincorporated organization, the
government of a country or any political subdivision thereof, or any agency or
department of any such government;

“Plan” means this Performance
Share Unit Plan, including any schedules or appendices hereto, all as amended,
restated, supplemented or otherwise modified from time to time; 

5

		
      “Redemption Date” for a Vested Performance Share
      Unit means the date the Vested Performance Share Unit is redeemed, which
      date shall be as soon as practical following the Vesting Date and in no
      event shall it be later than 60 days following the Vesting Date;

	 	 
		
      “Related Entity” means, for the Company, a Person
      that controls or is controlled by the Company including, for greater
      certainty, its Subsidiaries, or that is controlled by the same Person that
      controls the Company;

	 	 
		
      “Retirement” means the retirement of the
      Designated Participant from employment with the Company or a Related
      Entity of the Company, and “retires” shall have a corresponding meaning.
      The determination of whether a Designated Participant has retired shall be
      at the sole discretion of the Committee;

	 	 
		
      “security based compensation arrangement” shall
      have the meaning ascribed to that term in the TSX Rules;

	 	 
		
      “Subsidiary” means any corporation or company of
      which outstanding securities to which are attached more than 50 per cent
      of the votes that may be cast to elect directors thereof are held
      (provided that such votes are sufficient to elect a majority of such
      directors), other than by way of security only, by or for the benefit of
      the Company and/or by or for the benefit of any other corporation or
      company in like relation to the Company, and includes any corporation or
      company in like relation to a Subsidiary;

	 	 
		
      “Trading Day” means any day on which the TSX (or
      any other stock exchange on which the majority of the volume of trading of
      Common Shares occurs on the relevant day) is open for the trading of the
      Common Shares;

	 	 
		
      “TSX” means the Toronto Stock Exchange;

	 	 
		
      “TSX Rules” means the applicable rules and
      regulations of the TSX;

	 	 
		
      “Vested Performance Share Units” has the meaning
      ascribed thereto in Section 5.1; and

	 	 
		
      “Vesting Date” has the meaning ascribed thereto in
      Section 5.1.

	 	 
	2.2. 	
      Number and Gender

	 	 
		
      This Plan shall be read with all changes in number and
      gender required by the context.

	 	 
	2.3. 	
      Severability

	 	 
		
      If any provision of the Plan is determined to be void or
      unenforceable in whole or in part, such determination shall not affect the
      validity or enforcement of any other provision or part of any provision
      thereof.

	 	 
	2.4. 	
      Headings, Sections, Schedules

	 	 
		
      Headings used in the Plan are for reference purposes only
      and do not limit or extend the meaning of the provisions of the Plan. A
      reference to a Section or Schedule shall, except where expressly stated
      otherwise, mean a Section or Schedule of the Plan, as
  applicable.

6

	2.5. 	
      References to Statutes, etc.

	 	 
		
      Any reference to a statute, regulation, rule, instrument
      or policy statement shall refer to such statute, regulation, rule,
      instrument or policy statement as it may be amended, replaced or re-
      enacted from time to time.

	 	 
	2.6. 	
      Currency

	 	 
		
      Unless the context otherwise requires or the Committee
      determines otherwise, all references in the Plan to currency shall be to
      lawful money of Canada.

	3. 	
      ADMINISTRATION

	 	 
	3.1. 	
      Administration of the Plan

	 	 
		
      Except for matters that are under the jurisdiction of the
      Board as specified under the Plan, and subject to Applicable Law, this
      Plan will be administered by the Committee and the Committee has sole and
      complete authority, in its discretion, to:

	 	(a) 	
      establish, amend and rescind such rules and regulations,
      and make such interpretations and determinations and take such other
      actions, as it deems necessary or desirable for the administration of the
      Plan;

	 	 	 
	 	(b) 	
      exercise rights reserved to the Company under the
      Plan;

	 	 	 
	 	(c) 	
      determine the Performance Period;

	 	 	 
	 	(d) 	
      determine the individual measures comprising the
      Performance Measures and the weighting of each such measure;

	 	 	 
	 	(e) 	
      determine the Performance Percentage to be applied at the
      time of vesting of a Performance Share Unit; and

	 	 	 
	 	(f) 	
      make all other determinations and take all other actions
      as it considers necessary or advisable for the implementation and
      administration of the Plan.

		
      Any interpretation and determination made, and other
      action taken, by the Committee shall be conclusive and binding on all
      parties concerned, including, without limitation, the Company and
      Designated Participants and, if applicable, their Beneficiaries and legal
      representatives.

	 	 
	3.2. 	
      Eligibility

	 	 
		
      Any individual who at the relevant time is a Designated
      Participant is eligible to participate in the Plan. The Company reserves
      the right to restrict the eligibility or otherwise limit the number of
      persons eligible for participation in the Plan at any time. Eligibility to
      participate does not confer upon any individual a right to receive an
      award of Performance Share Units pursuant to the Plan.

	 	 
	3.3. 	
      Taxes and Other Source Deductions

	 	 
		
      As a condition of and prior to participation in the Plan,
      each Designated Participant authorizes the Company to withhold from any
      amount otherwise payable to him or her any amounts required by any taxing
      authority to be withheld for taxes of any kind as a consequence of his or
      her participation in the Plan. The Company shall also have
      the right in its sole discretion to satisfy any such liability for
      withholding or other required deduction amounts by requiring the
      Designated Participant to complete a sale in respect of such number of
      Common Shares, which have been issued and would otherwise be delivered to
      the Designated Participant under the Plan, and any amount payable from
      such sale will first be paid to the Company to satisfy any liability for
      withholding. The Company may require a Designated Participant, as a
      condition of participation in the Plan, to pay or reimburse the Company
      for any cost incurred by the Company as a result of the participation by
  the Designated Participant in the Plan.

7

		
      Each Designated Participant or any Beneficiary, as the
      case may be, is solely responsible and liable for the satisfaction of all
      taxes and penalties that may be imposed on or for the account of such
      Designated Participant in connection with the Plan (including any taxes
      and penalties under any Applicable Law), and neither the Company nor any
      Affiliate shall have any obligation to indemnify or otherwise hold such
      Designated Participant or Beneficiary harmless from any or all of such
      taxes or penalties.

	 	 
	3.4. 	
      Exemption from Plan Participation

	 	 
		
      Notwithstanding any other provision of the Plan, if a
      Designated Participant is a resident in a jurisdiction in which an award
      of Performance Share Units under the Plan may be considered to be income
      that is subject to taxation at the time of such award, the Designated
      Participant may elect not to participate in the Plan by providing written
      notice to the Secretary of the Company by the end of the calendar year
      prior to the year in which the affected compensation will be
  earned.

	 	 
	3.5. 	
      Appointment of Beneficiaries

	 	 
		
      Subject to the requirements of Applicable Law, a
      Designated Participant may designate in writing a Beneficiary to receive
      any benefits that are payable under the Plan upon the death of such
      Designated Participant and, from time to time, change such designation in
      writing. Such designation or change shall be in such form, and executed
      and delivered in such manner, as the Committee may from time to time
      determine.

	 	 
	3.6. 	
      Total Common Shares Subject to Performance Share
      Units

	 	(a) 	
      The aggregate number of Common Shares that may be issued
      pursuant to the Plan shall be, subject to Sections 4.8 and 8, 10,000,000
      and no Performance Share Unit may be granted if such grant would have the
      effect of causing the total number of Common Shares potentially issuable
      in respect of Performance Share Units to exceed the above number of Common
      Shares reserved for issuance under the Plan.

	 	 	 
	 	(b) 	
      To the extent Performance Share Units are cancelled, the
      Common Shares subject to such Performance Share Units shall be added back
      to the number of Common Shares reserved for issuance under the Plan and
      such Common Shares will again become available for Performance Share Unit
      grants under the Plan.

	4. 	
      PERFORMANCE SHARE UNIT GRANTS

	 	 
	4.1. 	
      Grants of Performance Share Units

	 	 
		
      Subject to the provisions of the Plan and such other
      terms and conditions as the Committee or the Board may prescribe, the
      Committee may, from time to time, grant Performance Share Units
  to such Designated Participant as may be determined by the
      Committee in its sole discretion with effect from such dates as the
  Committee may specify.

8

	4.2. 	
      Performance Period

	 	 
		
      The Committee shall, in its sole discretion, determine
      the performance period applicable to each grant of Performance Share Units
      under Section 4.1 at the time of such grant (the “Performance
      Period”).

	 	 
	4.3. 	
      Determination of Performance Measures

	 	 
		
      The Committee shall, in its sole discretion, determine
      the Performance Measures applicable to each grant of Performance Share
      Units under Section 4.1 at the time of such grant and shall specify such
      Performance Measures in the Grant Notice relating to such grant. The
      Performance Measures applicable to a grant of Performance Share Units
      shall be set forth in the applicable Grant Notice.

	 	 
	4.4. 	
      Determination of Performance Percentage

	 	 
		
      Following the date the Performance Period, or the
      Additional Period if applicable, ends for a particular grant of
      Performance Share Units, the Committee will assess the performance of the
      Company for the applicable period based on the Performance Measures. Upon
      the assessment of all Performance Measures and considering the weighting
      of individual measures comprising the Performance Measures, as set out in
      the applicable Grant Notice, the Committee shall determine the applicable
      Performance Percentage, which shall be a percentage from 0 to 200. Upon
      the determination of the Performance Percentage, the number of Common
      Shares issuable for each Vested Performance Share Unit shall be determined
      by multiplying the number of Vested Performance Share Units by the
  applicable Performance Percentage.

	 	 
	4.5. 	
      Grant Notice

	 	 
		
      Each grant of Performance Share Units will be evidenced
      by a Grant Notice. The Grant Notice will be subject to the applicable
      provisions of this Plan and will contain such provisions as are required
      by this Plan and any other provisions that the Committee may direct. Any
      one officer of the Company is authorized and empowered to execute and
      deliver, for and on behalf of the Company, a Grant Notice to each
      Designated Participant.

	 	 
	4.6. 	
      No Certificates

	 	 
		
      No certificates shall be issued with respect to
      Performance Share Units.

	 	 
	4.7. 	
      Dividend Equivalent Performance Share
  Units

	 	 
		
      Whenever a dividend is paid on the Common Shares,
      additional Performance Share Units will be credited to a Designated
      Participant’s Performance Share Unit Account in accordance with this
      Section 4.7. The number of such additional Performance Share Units to be
      so credited will be calculated by dividing the dividend that would have
      been paid to such Designated Participant if the Performance Share Units
      recorded in the Designated Participant’s Performance Share Unit Account as
      at the record date for the dividend had been Common Shares, whether or not
      vested, by the Market Value on the Trading Day immediately preceding the
      date on which the Common Shares began to trade on an ex-dividend basis,
      rounded down to the next whole number of Performance Share Units. No
      fractional Performance Share Units will thereby be created.
  The foregoing does not obligate the Company to pay dividends
      on Common Shares and nothing in this Plan shall be interpreted as creating
  such an obligation.

9

	4.8. 	
      Maximum Securities

	 	 
		
      Notwithstanding Section 3.6:

	 	(a) 	
      the maximum number of Common Shares that may be issuable,
      at any time, under all security based compensation arrangements of the
      Company pursuant to which Common Shares may be issued including, without
      limitation, this Plan, shall not exceed 8.0% of the issued and outstanding
      Common Shares calculated on a non-diluted basis;

	 	 	 
	 	(b) 	
      the number of securities issuable to Insiders, at any
      time, under all security based compensation arrangements of the Company
      pursuant to which Common Shares may be issued including, without
      limitation, this Plan, shall not exceed 8.0% of the issued and outstanding
      Common Shares calculated on a non-diluted basis; and

	 	 	 
	 	(c) 	
      the number of securities issued to Insiders, within any
      one year period, under all security based compensation arrangements of the
      Company pursuant to which Common Shares may be issued including, without
      limitation, this Plan, shall not exceed 8.0% of the issued and outstanding
      Common Shares calculated on a non-diluted
basis.

	4.9. 	
      Performance Share Unit Account

	 	 
		
      An account, to be known as a “Performance Share Unit
      Account”, shall be maintained by the Company for each Designated
      Participant and shall be credited from time to time with such Performance
      Share Units as are granted to the Designated Participant and any dividend
      equivalent Performance Share Units credited in respect of such Performance
      Share Units.

	 	 
	4.10. 	
      Statement of Account

	 	 
		
      The Company shall mail to each Designated Participant to
      whom Performance Share Units have been granted, on an annual basis, a
      statement reflecting the status of the Performance Share Unit Account
      maintained for such Designated Participant.

	 	 
	4.11. 	
      Cancellation of Performance Share Units that Fail to
      Vest or Are Redeemed

	 	 
		
      Performance Share Units that fail to vest in accordance
      with Sections 5 or 6.3 of the Plan, or that are redeemed in accordance
      with Section 6 of the Plan, shall be cancelled and shall cease to be
      recorded in the Performance Share Unit Account of the relevant Designated
      Participant as of the date on which such Performance Share Units fail to
      vest or are redeemed, as the case may be, and the Designated Participant
      will have no further right, title or interest in or to such Performance
      Share Units.

	5. 	
      VESTING OF PERFORMANCE SHARE UNITS

	 	 
	5.1. 	
      Vesting

	 	 
		
      Subject to Sections 5.2, 6.2 and 6.3, unless otherwise
      determined by the Committee, all Performance Share Units granted to the
      Designated Participant under Section 4.1 and credited to the Designated
      Participant under Section 4.7 shall vest on the date that the Board
      approves the Performance Percentage as determined by the Committee
      pursuant to Section 4.4, such date to be as soon as practical following the date on which the
      Performance Period for the applicable Performance Share Units ends (the
      “Vesting Date”). The Performance Share Units which have so vested
      will be referred to herein as “Vested Performance Share
Units”.

10

	5.2. 	
      Vesting on Death, Retirement, Disability or
      Termination without Cause

	 	 
		
      If a Designated Participant dies, retires, suffers a
      Disability, resigned for Good Reason or is terminated without Cause prior
      to a Vesting Date all of the Performance Share Units and any dividend
      equivalent Performance Share Units in respect of such Performance Share
      Units held by the Designated Participant shall remain outstanding for such
      period of time determined by the Committee, in its sole discretion (the
      “Additional Period”). For greater certainty the Committee can
      determine an Additional Period that is shorter than the original
      Performance Period. All outstanding Performance Share Units and any
      dividend equivalent Performance Share Units in respect of such Performance
      Share Units shall continue to be eligible to become vested in accordance
      with the terms of this Plan and achievement of Performance Measures as set
      forth in the Grant Notice during the Additional Period, as determined by
      the Committee in accordance with Section 4.4. All Performance Share Units
      and any dividend equivalent Performance Share Units in respect of such
      Performance Share Units that remain unvested at the end of the Additional
      Period and the Committee’s determination of the Performance Percentage
      pursuant to Section 4.4 shall expire and the Designated Participant shall
      have no further rights in respect of such Performance Share Units (and
      dividend equivalent Performance Share Units).

	 	 
	5.3. 	
      Acknowledgement of Grant

	 	 
		
      A Designated Participant shall deliver to the Company the
      completed Grant Notice acknowledging the grant of Performance Share Units
      within 90 days after the date on which the Designated Participant receives
      the Grant Notice from the Company. If the Grant Notice is not delivered by
      the Designated Participant within such period, the Committee reserves the
      right to revoke the grant of such Performance Share Units to the
      Designated Participant and the crediting of such Performance Share Units
      to the Designated Participant’s Performance Share Unit
  Account.

	6. 	
      REDEMPTION OF PERFORMANCE SHARE UNITS

	 	 
	6.1. 	
      Redemption of Vested Performance Share
  Units

	 	 
		
      Subject to the remaining provisions of this Section 6, on
      the Redemption Date for each Vested Performance Share Unit, the Company
      shall redeem all such Vested Performance Share Units by issuing a share
      certificate in the name of the Designated Participant evidencing the
      Common Shares issued from treasury to the Designated Participant in
      respect of the Vested Performance Share Units. The number of Common Shares
      issuable to a Designated Participant shall be determined by multiplying
      the number of Vested Performance Share Units by the applicable Performance
      Percentage.

	 	 
	6.2. 	
      Cessation of Employment

	 	 
		
      If the Designated Participant’s employment ceases prior
      to the Redemption Date because of termination for Cause or because of the
      resignation of the Designated Participant other than for Good Reason, all
      Performance Share Units (and any dividend equivalent Performance Share
      Units credited in respect thereof), whether or not vested, shall
      immediately expire and the Designated Participant shall have no further
      rights in respect of such Performance Share Units (and dividend equivalent
      Performance Share Units). For purposes of this Section 6.2, the date
    of cessation of a Designated Participant’s employment shall
      be the Designated Participant’s last day of active employment and shall
      not include any period of statutory, contractual or reasonable notice or
any period of deemed employment.

11

	6.3. 	
      Change of Control

	 	(a) 	
      In the event of a Change of Control where the Person that
      acquires Control (the “Acquirer”), an Affiliate thereof, or the
      successor of the Company, agrees to assume all of the obligations of the
      Company under the Plan and the Committee determines that such assumption
      is consistent with the objectives of the Plan and the Performance Measures
      are not adversely affected by such assumption, the Plan and all
      outstanding awards will continue on the same terms and conditions, except
      that, if applicable, Performance Share Units may be adjusted to a right to
      acquire shares of the Acquirer or its Affiliate.

	 	 	 
	 	(b) 	
      In the event of a Change of Control where the Acquirer or
      an Affiliate thereof or the successor to the Company does not agree to
      assume all of the obligations of the Company under the Plan, or the
      Committee determines that such assumption is not consistent with the
      objectives of the Plan or that the Performance Measures will be adversely
      affected by such assumption, all unvested Performance Share Units held by
      each Designated Participant shall immediately be deemed to be Vested
      Performance Share Units as of the effective date of the Change of Control,
      which, for the purposes of this Section 6.3(b), shall be deemed to be the
      Vesting Date. The Committee shall determine, in its sole discretion, the
      Performance Percentage to be applied to the Vested Performance Share Units
      based on factors determined by the Committee, including the objective
      measure of performance toward achievement of the Performance Measures and
      such other factors as the Committee determines appropriate in the
      circumstances. The Company shall, at its option, redeem all such Vested
      Performance Share Units by:

	 	(i) 	
      issuing Common Shares in the name of the Designated
      Participant in respect of the Vested Performance Share Units; or

	 	 	 
	 	(ii) 	
      paying to such Designated Participant a cash amount equal
      to the Market Value as of the effective date of the Change of Control of
      the Common Shares that would have been issued pursuant to Section
      6.3(b)(i).

		
      Notwithstanding the foregoing, the Committee may
      terminate all or part of the Plan if it determines that it is appropriate
      to do so upon a Change of Control and in the event of such termination,
      the Plan shall terminate on the Change of Control Date on such terms and
      conditions as the Committee may determine.

	 	 
	6.4. 	
      No Interest

	 	 
		
      For greater certainty, no interest shall be payable to
      Designated Participants in respect of any amount payable under the
      Plan.

	7. 	
      AMENDMENT OF THE PLAN

	 	 
	7.1. 	
      Amendment

	 	(a) 	
      Subject to Applicable Law and Sections 7.1(b) and 7.1(c)
      below, the Board may, without notice or shareholder approval, at any time
      or from time to time, amend, suspend or terminate the Plan for any purpose which, in the good
  faith opinion of the Board, may be expedient or desirable.

12

	 	(b) 	
      Notwithstanding Section 7.1(a), but subject to Section
      7.1(e), the Board shall not materially adversely alter or impair any
      rights of a Designated Participant or materially increase any obligations
      of a Designated Participant with respect to Performance Share Units
      previously awarded under the Plan without the consent of the Designated
      Participant.

	 	 	 
	 	(c) 	
      Notwithstanding Section 7.1(a), none of the following
      amendments shall be made to this Plan without approval by shareholders by
      ordinary resolution:

	 	(i) 	
      increasing the number of securities issuable under the
      Plan, other than in accordance with the terms of this Plan;

	 	 	 
	 	(ii) 	
      making a change to the class of Designated Participants
      that would have the potential of broadening or increasing participation by
      Insiders, or otherwise adding any Non-Employee Director of the Company to
      the class of Designated Participants;

	 	 	 
	 	(iii) 	
      amending Section 8.6 of the Plan;

	 	 	 
	 	(iv) 	
      permitting awards other than Performance Share Units to
      be made under this Plan; and

	 	 	 
	 	(v) 	
      deleting or reducing the amendments that require
      shareholders’ approval under this Section
7.1(c).

	 	(d) 	
      Without limiting the generality of the foregoing, the
      Board shall have the power and authority to approve amendments relating to
      the Plan, without obtaining shareholder approval, to the extent that such
      amendment:

	 	(i) 	
      is of a typographical, grammatical, clerical or
      administrative nature or is required to comply with applicable regulatory
      requirements, including the TSX Rules, in place from time to
  time;

	 	 	 
	 	(ii) 	
      is an amendment to the Plan respecting administration of
      the Plan and eligibility for participation under the Plan;

	 	 	 
	 	(iii) 	
      changes the terms and conditions on which Performance
      Share Units may be or have been granted pursuant to the Plan, including
      change to the vesting provisions of the Performance Share Units;

	 	 	 
	 	(iv) 	
      changes the termination provisions of a Performance Share
      Unit or the Plan; or

	 	 	 
	 	(v) 	
      is an amendment to the Plan of a “housekeeping
      nature”.

	 	(e) 	
      If the Board terminates or suspends the Plan, no new
      Performance Share Units (other than dividend equivalent Performance Share
      Units) will be credited to the Performance Share Unit Account of a
      Designated Participant. On termination of the Plan, the vesting of any and
      all Performance Share Units not then vested will be accelerated, the Board
      or Committee will determine, in its sole discretion, the Performance
      Percentage to be applied to the Vested Performance Share Units and, on a
      date or dates selected by the Board in its discretion, payment in the form
      of Common Shares will be made to the Designated Participant in respect of
  Performance Share Units.

13

	 	(f) 	
      The Board shall not require the consent of any affected
      Designated Participant in connection with the termination of the Plan in
      which the vesting of all Performance Share Units held by the Designated
      Participant are accelerated and payment is made to the Designated
      Participant in respect of all such Performance Share Units.

	 	 	 
	 	(g) 	
      The Plan will terminate on the date upon which no further
      Performance Share Units remain outstanding.

	8. 	
      GENERAL

	 	 
	8.1. 	
      Adjustments

	 	 
		
      In the event of any stock dividend, stock split,
      combination or exchange of shares, merger, amalgamation, arrangement or
      other scheme of reorganization, spin-off or other distribution of the
      Company’s assets to shareholders (other than the payment of cash dividends
      in the ordinary course), or any other change in the capital of the Company
      affecting Common Shares, such adjustments, if any, as the Committee in its
      discretion may deem appropriate to preserve proportionately the interests
      of Designated Participants under the Plan as a result of such change shall
      be made with respect to the number of Performance Share Units outstanding
      under the Plan.

	 	 
	8.2. 	
      Compliance with Laws and Company
  Policies

	 	(a) 	
      The terms of the Plan are subject to any Applicable Laws
      and governmental and regulatory requirements (including the TSX Rules),
      approvals and consents, and the provisions of any applicable policies of
      the Company that may be or become applicable. Without limiting the
      generality of the foregoing, the Company may, in its sole discretion,
      delay the crediting of Performance Share Units to the accounts of
      Designated Participants and/or the redemption of Performance Share Units
      if and to the extent it considers necessary or appropriate as a result of
      any Blackout Period.

	 	 	 
	 	(b) 	
      If the Committee determines that the listing,
      registration or qualification of the Common Shares subject to this Plan
      upon any securities exchange or under any provincial, state, federal or
      other Applicable Law, or the consent or approval of any governmental body
      or securities exchange or of the shareholders of the Company is necessary
      or desirable, as a condition of, or in connection with, the crediting of
      Performance Share Units or the issue of Common Shares hereunder, the
      Company shall be under no obligation to credit Performance Share Units or
      issue Common Shares hereunder unless and until such listing, registration,
      qualification, consent or approval shall have been affected or obtained
      free of any conditions not acceptable to the
Committee.

	8.3. 	
      Designated Participant’s Entitlement

	 	 
		
      Except as otherwise provided in this Plan, Performance
      Share Units previously granted under this Plan, whether or not then
      vested, are not affected by any change in the relationship between, or
      ownership of, the Company and a Related Entity. For greater certainty, all
      Performance Share Units remain valid in accordance with the terms and
      conditions of this Plan and are not affected by reason only that at any
      time, a Related Entity ceases to be a Related
Entity.

14

	8.4. 	
      Reorganization of the Corporation

	 	 
		
      The existence of any Performance Share Units shall not
      affect in any way the right or power of the Company or its shareholders to
      make or authorize any adjustment, recapitalization, reorganization or
      other change in the Company’s capital structure or its business, or to
      create or issue any bonds, debentures, shares or other securities of the
      Company or to amend or modify the rights and conditions attaching thereto
      or to effect the dissolution or liquidation of the Company, or any
      amalgamation, combination, merger or consolidation involving the Company
      or any sale or transfer of all or any part of its assets or business, or
      any other corporate act or proceeding, whether of a similar nature or
      otherwise.

	 	 
	8.5. 	
      Blackout Periods

	 	 
		
      If a Vested Performance Share Unit would otherwise be
      redeemed during a Blackout Period or within 2 business days after the date
      on which the Blackout Period ends, then, notwithstanding any other
      provision of the Plan, the Vested Performance Share Unit shall instead be
      redeemed on the date which is the 2nd business day after the
      date on which the Blackout Period ends.

	 	 
	8.6. 	
      Transferability of Performance Share
  Units

	 	 
		
      Rights with respect to Performance Share Units shall not
      be transferable or assignable other than by will or the laws of descent
      and distribution; provided, however, a Designated
      Participant may transfer or assign Performance Share Units to a Permitted
      Assign of such Designated Participant subject to the provisions of this
      Plan and the applicable Grant Notice.

	 	 
	8.7. 	
      Successors and Assigns

	 	 
		
      The Plan shall be binding on the Company and on
      Designated Participants and, if applicable, their Beneficiaries and legal
      representatives.

	 	 
	8.8. 	
      Unfunded and Unsecured Plan

	 	 
		
      The Plan is an unfunded obligation of the Company and the
      Company will not secure its obligations under the Plan. Neither the
      establishment of the Plan nor the grant of Performance Share Units (or any
      action taken in connection therewith) shall be deemed to create a trust.
      To the extent any individual holds any rights by virtue of a grant of
      Performance Share Units under the Plan, such rights shall be no greater
      than the rights of an unsecured creditor of the Company.

	 	 
	8.9. 	
      Market Fluctuations

	 	 
		
      No amount will be paid to, or in respect of, a Designated
      Participant under the Plan to compensate for a downward fluctuation on the
      price of Common Shares, nor will any other form of benefit be conferred
      upon, or in respect of, a Designated Participant for such purpose. The
      Company makes no representations or warranties to the Designated
      Participants with the respect to the Plan or the Common Shares whatsoever.
      In seeking the benefits of participation in the Plan, a Designated
      Participant agrees to accept all risks associate with a decline in the
      market price of Common Shares.

	 	 
	8.10. 	
      Participation is Voluntary; No Additional
      Rights

	 	 
		
      The Participation of any Designated Participant in the
      Plan is entirely voluntary and not obligatory and shall not be interpreted
      as conferring upon such Designated Participant any
rights or privileges other than those rights and privileges
      expressly provided in the Plan. Nothing in this Plan shall be construed to
      provide the Designated Participants with any rights whatsoever to
      participation or continue participation in this Plan or to compensation or
      damages in lieu of participation, whether upon termination of service as a
      Designated Participant or otherwise. Nothing contained in this Plan shall
      be deemed to give any person the right to the continuation of employment
      by the Company or a Related Entity of the Company or interfere in any way
      with the right of the Company or a Related Entity of the Company to
      terminate such employment at any time or to increase or decrease the
      compensation of such person. For greater certainty, a period of notice, if
      any, or payment in lieu thereof, upon termination of employment, wrongful
      or otherwise, shall not be considered as extending the period of
      employment for the purposes of the Plan. The Company does not assume
      responsibility for the personal income or other tax consequences for the
      Designated Participants and they are advised to consult with their own tax
  advisors.

15

	8.11. 	
      No Shareholder Rights

	 	 
		
      No Designated Participant has or is entitled to obtain,
      as a result of any entitlement to Performance Share Units hereunder, any
      entitlement to Common Shares or any voting rights, rights to receive any
      distribution or any other rights as a shareholder of the
Company.

	 	 
	8.12. 	
      Subject to Law

	 	 
		
      The Company’s granting of any Performance Share Units and
      its obligation to make any payments in respect thereof are subject to
      compliance with Applicable Law.

	 	 
	8.13. 	
      No Salary Deferral Arrangement

	 	 
		
      Notwithstanding any other provision of the Plan, it is
      intended that the Plan and Performance Share Units granted under the Plan
      not be considered “salary deferral arrangements” under the Income Tax
      Act (Canada) and the Plan shall be administered in accordance with
      such intention. Without limiting the generality of the foregoing, the
      Committee may make such amendments to the terms of outstanding Performance
      Share Units (including, without limitation, changing the Vesting Dates and
      Redemption Dates thereof) as may be necessary or desirable, in the sole
      discretion of the Committee, so that the Plan and Performance Share Units
      outstanding thereunder are not considered “salary deferral
      arrangements”.

	 	 
	8.14. 	
      Administration Costs

	 	 
		
      The Company will be responsible for all costs relating to
      the administration of the Plan.

	 	 
	8.15. 	
      Governing Law

	 	 
		
      The Plan shall be governed by and construed in accordance
      with the laws of the Province of British Columbia and the federal laws of
      Canada applicable therein.

	 	 
	8.16. 	
      Code Section 409A

	 	 
		
      It is intended that Performance Share Units awarded to
      Designated Participants whose compensatory income is subject to U.S.
      federal income taxation will be exempt from Section 409A of the U.S.
      Internal Revenue Code of 1986, as amended, under U.S. Treasury Regulation
      Section 1.409A-1(b)(4), and the Plan and applicable Grant Notices will be
      construed and administered accordingly. Nothing contained herein shall be
      construed as a guaranty by the Company of any particular tax effect to such a Designated
      Participant, and the Designated Participant remains solely liable for any
      taxes, penalties or interest arising as a result of the grant, vesting or
      redemption of Performance Share Units.

16

	8.17. 	
      Effective Date

	 	 
		
  The Plan is adopted with effect from May 7, 2019.

Schedule A
Form of Grant Notice and
Acknowledgement

B2Gold Corp. Performance Share Unit Plan

B2Gold Corp. (the “Company”) hereby grants the following
award to the Designated Participant named below in accordance with and subject
to the terms, conditions and restrictions of this Grant Notice and
Acknowledgement (the “Notice”), together with the provisions of the
B2Gold Corp. Performance Share Unit Plan, as amended (the “Plan”)
effective •, 2019:

Name and Address of Designated
Participant: ______________________________

Date of Grant:
__________________________________________________________

Total Number of Performance Share
Units_____________________________________

	1. 	
      The terms and conditions of the Plan are hereby
      incorporated by reference as terms and conditions of this Notice and all
      capitalized terms used herein, unless expressly defined in a different
      manner, have the meanings ascribed thereto in the Plan.

	 	 
	2. 	
      Subject to any acceleration in vesting and earlier
      termination of the Performance Period as provided in the Plan, the
      Performance Period for each Performance Share Unit is • months, commencing
      on • and ending on •.

	 	 
	3. 	
      The Performance Measures applicable to this grant of
      Performance Share Units are the following:

	 	a. 	
      [Committee to insert table for each grant showing the
      applicable performance measures and threshold, target and maximum
      performance levels]

	4. 	
      Subject to the terms of the Plan, the payment in respect
      of Performance Share Units held by the Designated Participant shall be
      satisfied by the issuance of Common Shares to the Designated Participant
      on the Redemption Date.

	 	 
	5. 	
      Nothing in the Plan or in this Notice will affect the
      right of the Company or any Related Entity to terminate the employment or
      term of service any employee at any time for any reason
  whatsoever.

	 	 
	6. 	
      Each notice relating to any award of Performance Share
      Units must be in writing and signed by the Designated Participant or its
      Beneficiary or legal representative. All notices to the Company must be
      delivered personally or by prepaid registered mail and must be addressed
      to the Secretary of the Company. All notices to the Designated Participant
      will be addressed to the principal address of the Designated Participant
      on file with the Company. Either the Company or the Designated Participant
      may designate a different address by written notice to the other. Any
      notice given by either the Designated Participant of the Company is not
      binding on the recipient thereof until received.

	 	 
	7. 	
      The undersigned acknowledges:

	 	(a) 	
      having received a copy of the Plan and acknowledges and
      agrees that the terms of the Plan govern the grant of Performance Share
      Units to and the rights of the undersigned hereunder and that such terms include rights of the
      Company to amend or terminate the Plan or any of its terms and to
  determine vesting and other matters at its discretion;

2

	 	(b) 	
      that the Company or Subsidiary of the Company that
      employs the undersigned may be required to withhold from the undersigned’s
      compensation and remit to the Canada Revenue Agency or the tax agency of
      the country in which the Designated Participant resides income taxes and
      other required source deductions in respect of the redemption of Vested
      Performance Share Units of the Designated Participant provided for in
      Section 3.3 of the Plan; and

	 	 	 
	 	(c) 	
      and agrees that the undersigned will, at all times, act
      in strict compliance with Applicable Law and all policies of the Company
      applicable to the undersigned in connection with the Plan. Such Applicable
      Law and policies shall include, without limitation, those governing
      “insiders” of “reporting issuers” as those terms are construed for the
      purposes of applicable securities laws.

DATED this _______ day of ____________________, 20_______. 

	 	B2GOLD CORP. 
	 	  
	 	  
	 	Per:       
      _____________________________________________________________
	 	Name: 
	 	Title: 

	  	) 	 
	  	) 	 
	  	) 	 
	  	) 	 
	Witness 	) 	[Name of Designated
      Participant]  
	  	)B2Gold Corp.: Exhibit 4.2 - Filed by newsfilecorp.com

B2GOLD CORP. 

INCENTIVE STOCK OPTION PLAN
(AMENDED) 

	1. 	
      Name and Purpose of the Plan

	 	 
	1.1 	
      The stock option plan constituted hereby for certain
      directors, officers and Service Providers (as defined below) of B2Gold
      Corp. (the “Company”) and its subsidiaries shall be known as the Stock
      Option Plan (Amended and Restated) (the “Plan”). This Plan, effective May
      8, 2018 (the “Effective Date”), amends the Amended and Restated
      Stock Option Plan adopted on May 7, 2015.

	 	 
	1.2 	
      The purpose of the Plan is to provide Eligible Persons
      with an opportunity to purchase Common Shares and to benefit from the
      appreciation in the value thereof. This will provide an increased
      incentive for the Eligible Persons to contribute to the future success and
      prosperity of the Company, thus enhancing the value of the Common Shares
      for the benefit of all the shareholders and increasing the ability of the
      Company and its associated, affiliated, controlled and subsidiary
      companies to attract and retain individuals of exceptional
skill.

	 	 
	2. 	
      Interpretation

	 	 
	2.1 	
      Where used herein, the following terms shall have the
      following meanings, respectively:

	 	(a) 	
      “Associate” means an associate as defined in the
      Securities Act;

	 	 	 
	 	(b) 	
      “Blackout Period” has the meaning ascribed to such term
      in Section 19;

	 	 	 
	 	(c) 	
      “Board” or “Board of Directors” means the board of
      directors of the Company, as such may be constituted from time to
    time;

	 	 	 
	 	(d) 	
      “Cause” means any act, omission or course of conduct
      recognized as cause for dismissal under any applicable law, and shall
      include, without limitation, embezzlement, theft, fraud, wilful failure to
      follow any lawful directive of the Company and wilful misconduct
      detrimental to the interests of the Company;

	 	 	 
	 	(e) 	
      “Change of Control” means:

	 	(i) 	
      the acquisition, directly or indirectly, by any person or
      group of persons acting jointly or in concert, as such terms are defined
      in the Securities Act (British Columbia), of Common Shares which,
      when added to all other Common Shares at the time held directly or
      indirectly by such person or persons acting jointly or in concert,
      constitutes for the first time in the aggregate 20% or more of the total
      issued and outstanding Common Shares; or

	 	 	 
	 	(ii) 	
      the removal, by extraordinary resolution of the
      shareholders of the Company, of more than 50% of the then incumbent
      members of the Board, or the election of a majority of the directors
      comprising the Board who were not nominated by the Company’s incumbent
      Board at the time immediately preceding such election;
or

	 	(iii) 	
      the consummation of a sale of all or substantially all of
      the assets of the Company; or

	 	 	 
	 	(iv) 	
      the consummation of a reorganization, plan of
      arrangement, merger or other transaction which has substantially the same
      effect as (i) to (iii) above.

	 	(f) 	
      “Code” means the U.S. Internal Revenue Code of 1986, as
      amended;

	 	 	 
	 	(g) 	
      “Common Shares” means the common shares of the Company
      or, in the event of an adjustment contemplated by Section 10 hereof, such
      other shares to which a Participant may be entitled upon the exercise of
      an Option as a result of such adjustment;

	 	 	 
	 	(h) 	
      “Company” means B2Gold Corp., and includes any successor
      company thereof;

	 	 	 
	 	(i) 	
      “Disability” means, with respect to any U.S. Participant,
      that such U.S. Participant is unable to engage in any substantial gainful
      activity by reason of any medically determinable physical or mental
      impairment that can be expected to result in death or that has lasted, or
      can be expected to last, for a continuous period of not less than twelve
      (12) months. The preceding definition of the term “Disability” is intended
      to comply with, and will be interpreted consistently with, sections
      22(e)(3) and 422(c)(6) of the Code;

	 	 	 
	 	(j) 	
      “Eligible Person” means, subject to all applicable laws,
      any director (provided that in respect of Options granted after the
      Effective Date only directors that are not Non- Employee Directors shall
      be Eligible Persons), officer, employee or Service Provider of the Company
      or any of its associated, affiliated, controlled and subsidiary companies
      that is eligible to receive an Option pursuant to Form S-8 (or any
      successor form) under the U.S. Securities Act of 1933, as
  amended;

	 	 	 
	 	(k) 	
      “Employee” means a person who is an employee of the
      Company (or any Parent or Subsidiary) for purposes of section 422 of the
      Code;

	 	 	 
	 	(l) 	
      “Exchange” means the Toronto Stock Exchange or, if the
      Common Shares are not then listed and posted for trading on the Toronto
      Stock Exchange, on such stock exchange in Canada on which such shares are
      listed and posted for trading as may be selected for such purpose by the
      Board;

	 	 	 
	 	(m) 	
      “Fair Market Value” as of any date, means, with respect
      to any property (including, without limitation, any Common Share), the
      fair market value, as of such date, of such property, determined by such
      methods or procedures as are established from time to time by the Board.
      Unless otherwise determined by the Board, the fair market value of a
      Common Share as of a given date will be the closing sale price of the
      Common Shares on the Exchange (or, if such Common Shares are not then
      listed and posted for trading on the Exchange, on such stock exchange on
      which such Common Shares are listed and posted for trading as may be
      selected for such purpose by the Board) on the trading day immediately
      preceding such date;

	 	 	 
	 	(n) 	
      “Grant Date” means, with respect to any Option, the date
      on which the Board makes the determination to grant such Option or any
      later date specified by the Board;

	 	 	 
	 	(o) 	
      “Good Reason” means “Good Reason”, or an analogous term,
      as defined in the employment, engagement or consulting agreement, if any,
      between the relevant Participant and the Company, or any of its associated,
affiliated, controlled or subsidiary companies, and, if there is no such
definition or agreement, “Good Reason” will arise within 12 months following a
Change of Control where the Participant was induced by the actions of the
employer to resign or terminate his or her employment, other than on a purely
voluntary basis, as a result of the occurrence of one or more of the following
events without the Participant’s written consent, provided that such resignation
shall only be designated as for “Good Reason” if the Participant has provided 10
days’ written notice of such occurrence to the employer immediately upon
occurrence of such an event and the employer has not corrected such occurrence
within such 10-day period: 

2

	 	(i) 	
      a materially adverse change in the Participant’s
      position, duties, or responsibilities other than as a result of the
      Participant’s physical or mental incapacity which impairs the
      Participant’s ability to materially perform the Participant’s duties or
      responsibilities as confirmed by a physician who has examined such
      Participant;

	 	 	 
	 	(ii) 	
      a materially adverse change in the Participant’s
      reporting relationship that is inconsistent with the Participant’s title
      or position;

	 	 	 
	 	(iii) 	
      a reduction by the employer of the base salary of the
      Participant;

	 	 	 
	 	(iv) 	
      a reduction by the employer in the aggregate level of
      benefits made available to the Participant; or

	 	 	 
	 	(v) 	
      the relocation by the employer of the Participant’s
      principal office to a location that is more than 50 kilometres from the
      Participant’s existing principal office;

	 	(p) 	
      “Incentive Stock Option” means an Option granted to a
      U.S. Participant that is intended to qualify as an “incentive stock
      option” pursuant to Section 422 of the Code;

	 	 	 
	 	(q) 	
      “Insider” means:

	 	(i) 	
      an insider as defined 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 company; and

	 	 	 
	 	(ii) 	
      an Associate of any person who is an insider under
      paragraph (i) of this definition;

	 	(r) 	
      “Market Price” of Common Shares at any Grant Date means
      the closing price per Common Share on the Exchange for the last day Common
      Shares were traded prior to the Grant Date;

	 	 	 
	 	(s) 	
      “Non-Employee Director” means any director of the Company
      or any of its associated, affiliated, controlled or subsidiary companies
      who does not have an employment or consulting agreement with the Company
      or one of its associated, affiliated, controlled or subsidiary
      companies;

	 	 	 
	 	(t) 	
      “Nonqualified Stock Option” means an Option that is not
      an Incentive Stock Option;

	 	 	 
	 	(u) 	
      “Option” means an option to purchase Common Shares
      granted by the Board to a Participant, subject to the provisions contained
      herein;

3

	 	(v) 	
      “Option Price” means the price per share at which Common
      Shares may be purchased under the Option, as the same may be adjusted in
      accordance with Sections 4 and 10 hereof;

	 	 	 
	 	(w) 	
      “Parent” means any corporation (other than the Company)
      in an unbroken chain of corporations ending with the Company, if each
      corporation in such chain (other than the Company) owns stock possessing
      fifty percent (50%) or more of the total combined voting power of all
      classes of stock in one of the other corporations in such chain. The
      preceding definition of the term “Parent” is intended to comply with, and
      will be interpreted consistently with, section 424(e) of the
  Code;

	 	 	 
	 	(x) 	
      “Participant” means an Eligible Person to whom Options
      are granted by the Board pursuant to the Plan and which Options or a
      portion thereof remain unexercised;

	 	 	 
	 	(y) 	
      “Plan” means this Stock Option Plan of the Company, as
      the same may be amended or varied from time to time;

	 	 	 
	 	(z) 	
      “Securities Act” means the Securities Act
      (Ontario), as amended or replaced from time to time;

	 	 	 
	 	(aa) 	
      “Service Provider” means:

	 	(i) 	
      an employee (including full-time and part-time employees)
      of the Company or any of its subsidiary company’s;

	 	 	 
	 	(ii) 	
      any other individual, corporation, partnership or other
      entity engaged on a bona fide basis to provide ongoing management
      or consulting services to the Company, to a subsidiary company controlled
      company for an initial, renewable or extended period of twelve months or
      more; and

	 	 	 
	 	(iii) 	
      any individual who is providing ongoing management or
      consulting services to the Company, to a subsidiary company or controlled
      company indirectly through a corporation, partnership or other entity that
      is a Service Provider under section (ii) of this
  definition;

	 	(bb) 	
      “Subsidiary” means any corporation (other than the
      Company) in an unbroken chain of corporations beginning with the Company,
      if each corporation (other than the last corporation) in such chain owns
      stock possessing fifty percent (50%) or more of the total combined voting
      power of all classes of stock in one of the other corporations in such
      chain. The preceding definition of the term “Subsidiary” is intended to
      comply with, and will be interpreted consistently with, Section 424(f) of
      the Code;

	 	 	 
	 	(cc) 	
      “U.S. Participant” means a Participant who is a citizen
      of the United States or a resident of the United States, as defined in
      Section 7701(a)(30)(A) and Section 7701(b)(1)of the Code; and

	 	 	 
	 	(dd) 	
      “10% Shareholder” means any U.S. Participant who owns,
      taking into account the constructive ownership rules set forth in Section
      424(d) of the Code, more than ten percent (10%) of the total combined
      voting power of all classes of stock of the Company (or of any Parent or
      Subsidiary).

4

	2.2 	
      For the purposes of the Plan, associated companies,
      affiliated companies, controlled companies and subsidiary companies have
      the meanings set forth under Section 1 of the Securities
  Act.

	 	 
	2.3 	
      Effective as of the Effective Date, Non-Employee
      Directors shall not be eligible to receive Options under the
  Plan.

	 	 
	3. 	
      Shares Subject to Plan and Granting of
    Options

	 	 
	3.1 	
      The Board of Directors may, from time to time, in its
      discretion grant Options to Eligible Persons subject to the conditions
      contained herein and such additional conditions as may be determined by
      the Board from time to time.

	 	 
	3.2 	
      The maximum number of Common Shares that may be issuable
      pursuant to Options granted under the Plan, which Options are outstanding
      but unexercised and whether or not they are vested, and all of the
      Company’s other previously established and outstanding or proposed share
      compensation arrangements pursuant to which Common Shares may be issuable,
      shall be a number equal to 8.0% of the number issued and outstanding
      Common Shares on a non-diluted basis at any time.

	 	 
	3.3 	
      The Common Shares in respect of which Options are
      terminated, cancelled or expired unexercised shall be available for
      subsequent Options pursuant to Section 21. No fractional Common Shares may
      be purchased or issued hereunder.

	 	 
	3.4 	
      Any grant of Options under the Plan shall be subject to
      the following restrictions, unless approved by a majority of the
      disinterested shareholders of the Company:

	 	(a) 	
      the aggregate number of Common Shares issuable pursuant
      to Options granted to Insiders, at any time, pursuant to the Plan and all
      of the Company’s other previously established and outstanding or proposed
      share compensation arrangements pursuant to which Common Shares may be
      issuable may not exceed 8.0% of the issued and outstanding Common Shares
      (on a non-diluted basis) at the time of grant;

	 	 	 
	 	(b) 	
      the aggregate number of Common Shares issued to Insiders
      pursuant to the Plan and all of the Company’s other previously established
      and outstanding or proposed share compensation arrangements pursuant to
      which Common Shares may be issuable within any one-year period may not
      exceed 8.0% of the issued and outstanding Common Shares (on a non-diluted
      basis) at the time of grant; and

	 	 	 
	 	(c) 	
      the aggregate number of Common Shares issuable to any one
      individual Participant pursuant to the Plan and all of the Company’s other
      previously established and outstanding or proposed share compensation
      arrangements pursuant to which Common Shares may be issuable within any
      one-year period may not exceed 5% of the outstanding Common Shares (on a
      non-diluted basis) at the time of the grant.

The aforementioned limits of Common Shares reserved for
issuance may be formulated on a diluted basis with the consent of the Exchange.

	4. 	
      Purchase Price

	 	 
	4.1 	
      The Option Price of any Option granted shall be fixed by
      the Board of Directors but shall not be less than the Market Price on the
      Grant Date or such other minimum price as the Exchange
  may require. Notwithstanding any other term in this Plan to the
contrary, the Option Price of any Option granted to a U.S. Participant shall not
be less than 100% of the Fair Market Value of a Common Share on the applicable
Grant Date. 

5

	5. 	
      Option Term

	 	 
	5.1 	
      Common Shares subject to each Option shall become
      purchasable in whole or in part at such time or times as may be determined
      by the Board of Directors, provided that:

	 	(a) 	
      Common Shares subject to each Option granted to the Chief
      Executive Officer of the Company on or after the Effective Date shall vest
      and become purchasable in equal increments on the first, second, third,
      fourth and fifth anniversaries of the Grant Date; and

	 	 	 
	 	(b) 	
      except as may otherwise be provided in the agreement
      entered into under Section 12.1 with respect to an Incentive Stock Option
      granted to a U.S. Participant and subject to the applicable rules and
      regulations of all regulatory authorities to which the Company is subject
      from time to time, including the Exchange, the following provisions shall
      apply in respect of Options granted on or after the Effective
  Date:

	 	(i) 	
      in the event of a Change of Control other than as
      contemplated in Section 11 in which the person, or any associated,
      affiliated, controlled or subsidiary company thereof, that acquires
      control of the Company (the “Acquiror”), or the successor of the
      Company, agrees to assume all of the obligations of the Company under the
      Plan and the successor board of directors (or such other committee or
      persons as may be designated to administer the Plan as a result of such
      Change of Control) determines that such assumption is consistent with the
      objectives of the Plan, the Plan and all outstanding Options will continue
      on the same terms and conditions, except that, if applicable, the terms
      and conditions of Options may be adjusted to reflect references to a right
      to acquire shares of the Acquiror in the manner contemplated in Section
      10;

	 	 	 
	 	(ii) 	
      in the event of a Change of Control in which this Plan is
      continued pursuant to Section 5.1(b)(i) and the employment or engagement
      of a Participant thereafter terminates for any reason other than
      resignation without Good Reason or termination for Cause, Options held by
      such Participant shall immediately vest and become purchasable on the date
      of such termination; and

	 	 	 
	 	(iii) 	
      in the event of a Change of Control other than as
      contemplated in Section 11 in which the Acquiror or the successor to the
      Company does not agree to assume all of the obligations of the Company
      under this Plan, or the successor board of directors (or such other
      committee or persons as may be designated to administer the Plan as a
      result of such Change of Control) determines that such assumption is not
      consistent with the objectives of this Plan, Options held by each
      Participant shall immediately vest and become purchasable so as to permit
      the Participant to participate as a holder of Common Shares in the
      transaction to complete the Change of Control.

	5.2 	
      Subject to Sections 16 and 19, each Option shall not be
      exercisable after the expiration of ten (10) years from the date of the
      granting of the Option and may expire on such earlier date or dates as may
      be fixed by the Board of Directors. Any Common Shares not purchased prior
      to the expiration of an Option granted hereunder may thereafter be
reallocated in accordance with the provisions of the Plan. 

6

	6. 	
      Non-Transferable

	 	 
	6.1 	
      Options granted to Participants under the Plan shall be
      non-transferable and non-assignable by the Participant to whom it was
      granted, other than by will or the laws of descent and distribution and,
      shall be exercisable during the Participant’s lifetime only by the
      Participant, provided that, subject to the prior approval of the Board and
      the Exchange, an Option may be assigned to a corporation controlled by the
      Participant and 100% beneficially owned by the Participant, which control
      and ownership shall continue for so long as any part of the Option remains
      unexercised.

	 	 
		
      However, see Section 16 for applicable restrictions on
      transferability for Incentive Stock Options granted to U.S.
      Participants.

	 	 
	7. 	
      Employees and Service Providers

	 	 
	7.1 	
      The Company represents and warrants that, with respect to
      the grant of Options under the Plan to Employees or Service Providers,
      each such Eligible Person is a bona fide Employee or Service Provider of
      the Company, as applicable.

	 	 
	7.2 	
      The Plan does not confer upon a Participant any right
      with respect to continuation of employment by the Company or any of its
      associated, affiliated, controlled or subsidiary companies.

	 	 
	8. 	
      Effect of Termination of Employment or
  Death

	 	 
	8.1 	
      In the event of death of a Participant, any Option held
      by such Participant at the date of death shall become exercisable in whole
      or in part, only if and to the extent that the Participant was entitled to
      exercise the Option at the date of the Participant’s death, by the
      person(s) to whom the Participant’s rights under the Option shall pass by
      the Participant’s will or the laws of descent and distribution and Options
      shall be exercisable for a period of one (1) year after the date of death
      or prior to the expiration of the Option period in respect thereof,
      whichever is sooner.

	 	 
	8.2 	
      If a Participant ceases to be employed or retained by the
      Company or its associated, affiliated, controlled or subsidiary companies,
      as the case may be, for cause or if a Participant is removed from office
      as a director or becomes disqualified from being a director by law, any
      Option or the unexercised portion thereof granted to such Participant
      shall terminate forthwith. If a Participant ceases to be employed or
      retained by the Company or its associated, affiliated, controlled or
      subsidiary companies, as the case may be, other than by reason of death or
      termination for cause, or if a Participant ceases to be a director other
      than by reason of death, removal or disqualification, any Option or
      unexercised portion thereof held by such Participant at the effective date
      thereof and to the extent exercisable at such date may be exercised in
      whole or in part for a period that is the earlier of: (i) ninety (90) days
      after the Participant ceases active employment with the Company; (ii)
      ninety (90) days after the date of delivery of written notice of
      retirement, resignation or termination; (iii) the expiration date fixed by
      the Board; or (iv) the date the Option expires in accordance with its
      terms.

7

	9. 	
      No Rights As Shareholder

	 	 
	9.1 	
      No Participant shall have any of the rights as a
      shareholder of the Company in respect of the Common Shares subject to an
      Option until such Common Shares have been paid for in full and
    issued.

	 	 
	10. 	
      Adjustment to Shares

	 	 
	10.1 	
      Following the date an Option is granted, the exercise
      price for and the number of Common Shares which are subject to an Option
      will be adjusted, with respect to the then unexercised portion thereof, by
      the Board from time to time (on the basis of such advice as the Board
      considers appropriate, including, if considered appropriate by the Board,
      a certificate of the auditor of the Company) in the events and in
      accordance with the provisions set out in this Section 10, with the intent
      that the rights of Participants under their Options are, to the extent
      possible, preserved notwithstanding the occurrence of such events. Any
      dispute that arises at any time with respect to any adjustment pursuant to
      such provisions will be conclusively determined by the Board, and any such
      determination will be binding on the Company, the Participant and all
      other affected parties.

	 	 
	10.2 	
      The number of Common Shares to be issued on the exercise
      of an Option shall be adjusted from time to time to account for each
      dividend of Common Shares (other than a dividend in lieu of cash dividends
      paid in the ordinary course), so that upon exercise of the Option for a
      Common Share the Participant shall receive, in addition to such Common
      Share, an additional number of Common Shares (“Additional Shares”), at no
      further cost, to adjust for each such dividend of Common Shares. The
      adjustment shall take into account every dividend of Common Shares which
      occurs between the date of the grant of the Option and the date of
      exercise of the Option for such Common Share. If there has been more than
      one such dividend, the adjustment shall also take into account that the
      dividends which are later in time would have been distributed not only on
      the Common Share had it been outstanding, but also on all Additional
      Shares which would have been outstanding as a result of previous
      dividends.

	 	 
	10.3 	
      If the outstanding Common Shares are changed into or
      exchanged for a different number of shares or into or for other securities
      of the Company or securities of another company or entity, whether through
      an arrangement, amalgamation or other similar procedure or otherwise, or a
      share recapitalization, subdivision or consolidation, then on each
      exercise of the Option which occurs following such events, for each Common
      Share for which the Option is exercised, the Participant shall instead
      receive the number and kind of shares or other securities of the Company
      or other company into which such Common Share would have been changed or
      for which such Common Share would have been exchanged if it had been
      outstanding on the date of such event.

	 	 
	10.4 	
      If the outstanding Common Shares are changed into or
      exchanged for a different number of shares or into or for other securities
      of the Company or securities of another company or entity, in a manner
      other than as specified in Section 10.3, then the Board, in its sole
      discretion, may make such adjustment to the securities to be issued
      pursuant to any exercise of the Option and the exercise price to be paid
      for each such security following such event as the Board in its sole and
      absolute discretion determines to be equitable to give effect to the
      adjustment described in Section 10.1, and such adjustments shall be
      effective and binding upon the Company and the Participant for all
      purposes.

	 	 
	10.5 	
      If the Company distributes, by way of a dividend or
      otherwise, to all or substantially all holders of Common Shares, property,
      evidences of indebtedness or shares or other securities of
  the Company (other than Common Shares) or rights, options or
warrants to acquire Common Shares or securities convertible into or exchangeable
for Common Shares or other securities or property of the Company, other than as
a dividend in the ordinary course, then, if the Board, in its sole discretion,
determines that such action equitably requires an adjustment in the exercise
price under any outstanding Option or in the number(s) of Common Shares subject
to any such Option, or both, such adjustment may be made by the Board and shall
be effective and binding on the Company and the Participant for all purposes.

8

	10.6 	
      No adjustment or substitution provided for in this
      Section 10 shall require the Company to issue a fractional share in
      respect of any Option. Fractional shares shall be eliminated.

	 	 
	10.7 	
      The grant or existence of an Option shall not in any way
      limit or restrict the right or power of the Company to effect adjustments,
      reclassifications, reorganizations, arrangements or changes of its capital
      or business structure, or to amalgamate, merge, consolidate, dissolve or
      liquidate, or to sell or transfer all or any part of its business or
      assets.

	 	 
	10.8 	
      Any adjustment with respect to the exercise price for and
      number of Common Shares subject to an Option granted to a U.S. Participant
      pursuant to this Section 10 will be made so as to comply with, and not
      create any adverse consequences under, Sections 424 and 409A of the
      Code.

	 	 
	11. 	
      Effect of Take-Over Bid

	 	 
	11.1 	
      If a bona fide offer (the “Offer”) for Common Shares is
      made to a Participant or to shareholders generally or to a class of
      shareholders which includes Participants, which Offer, if accepted in
      whole or in part, would result in the offeror acquiring control of more
      than 20% of the voting rights attached to all the outstanding voting
      securities of the Company, then the Company shall, immediately upon
      receipt of notice of the Offer, notify each Participant currently holding
      an Option of the Offer, with full particulars thereof; whereupon such
      Option may be exercised in whole or in part by the Participant so as to
      permit the Participant to tender the Common Shares received upon such
      exercise (the “Optioned Shares”) pursuant to the Offer.

	 	 
	11.2 	
      Any such notice of exercise may be made conditional upon
      the effectiveness or completion of such Offer so that
if:

	 	(a) 	
      the Offer is not completed within the time specified
      therein; or

	 	 	 
	 	(b) 	
      the Participant does not tender the Optioned Shares
      pursuant to the Offer; or

	 	 	 
	 	(c) 	
      all of the Optioned Shares tendered by the Participant
      pursuant to the Offer are not taken up and paid for by the offeror in
      respect thereof;

then the Optioned Shares to have been received or, in the case
of clause (c) above, the Optioned Shares that are not taken up and paid for,
shall be returned to the Company and reinstated as authorized but unissued
Common Shares and the terms of the Option set forth in the Plan shall again
apply to the Option. If any Optioned Shares are returned to the Company under
this Section 11.2, the Company shall refund the exercise price to the
Participant for such Optioned Shares. In no event shall the Participant be
entitled to sell the Optioned Shares otherwise than pursuant to the Offer. 

9

	12. 	
      Written Agreement

	 	 
	12.1 	
      A written agreement shall be entered into between the
      Company and each Participant, which agreement shall set out the Option
      Price and the terms and conditions of and on which the Option may be
      exercised, all in accordance with the provisions of the Plan. The
      agreement shall be in such form as the Board may from time to time approve
      and may contain such terms as may be considered necessary in order that
      the Option will comply with any provisions respecting stock options in the
      income tax or other laws in force in any country or jurisdiction or which
      the person to whom the Option is granted may from time to time be a
      resident or citizen.

	 	 
	13. 	
      Amendment of the Plan

	 	 
	13.1 	
      The Board may from time to time, subject to applicable
      law and to the prior approval, if required, of the Exchange or any other
      regulatory body having authority over the Company, the Plan or the
      shareholders of the Company, suspend, terminate, or discontinue the Plan
      at any time except with respect to any Option then outstanding under the
      Plan.

	 	 
	13.2 	
      The Board may amend or revise the terms of the Plan or of
      any Option granted under the Plan and/or the option agreement relating
      thereto at any time without the consent of the Participants provided that
      such amendment shall:

	 	(a) 	
      not adversely alter or impair any Option previously
      granted except as permitted by the adjustment provisions of Section
    10;

	 	 	 
	 	(b) 	
      be subject to any regulatory approvals including, where
      required, the approval of the Exchange; and

	 	 	 
	 	(c) 	
      be subject to shareholder approval, where required, by
      law or the requirements of the Exchange, provided that shareholder
      approval shall not be required for the following amendments and the Board
      may make any changes, which may include but are not limited
  to:

	 	(i) 	
      amendments of a typographical, grammatical, clerical or
      administrative nature or which are required to comply with regulatory
      requirements;

	 	 	 
	 	(ii) 	
      a change to the vesting provision of the Plan or any
      Options;

	 	 	 
	 	(iii) 	
      a change to the termination provision of any Option that
      does not entail an extension beyond the original expiration date (as such
      date may be extended by virtue of Section 19 for a Blackout Period);
      and

	 	 	 
	 	(iv) 	
      a change to the Eligible Persons of the
  Plan.

	13.3 	
      Notwithstanding this Section 13, the Board shall not be
      permitted to amend the Option Price except as set out in Section 10 of the
      Plan. If the Plan is terminated, the provisions of the Plan and any
      administrative guidelines and other rules and regulations adopted by the
      Board and in force on the date of termination will continue in effect as
      long as any Option or any rights pursuant thereto remain outstanding and,
      notwithstanding the termination of the Plan, the Board shall remain able
      to make such amendments to the Plan or the Options as they would have been
      entitled to make if the Plan were still in effect.

10

	13.4 	
      The Board, absent prior approval of the shareholders of
      the Company and of the Exchange or any other regulatory body having
      authority over the Company, will not be entitled
to:

	 	(a) 	
      increase the maximum percentage of Shares issuable by the
      Company pursuant to the Plan;

	 	 	 
	 	(b) 	
      amend an Option grant to effectively reduce the Exercise
      Price or extend the Expiry Date;

	 	 	 
	 	(c) 	
      make a change to the class of Eligible Persons which
      would have the potential of broadening or increasing participation by
      Insiders, or otherwise adding any Non- Employee Director to the class of
      Eligible Persons;

	 	 	 
	 	(d) 	
      add any form of financial assistance;

	 	 	 
	 	(e) 	
      amend the Plan in order to permit Options to be
      transferable or assignable other than as provided for in Section 6.1;
      or

	 	 	 
	 	(f) 	
      amend this Section 13.4.

	13.5 	
      Notwithstanding any provision in the Plan to the
      contrary, any revision to the terms of an Option granted to a U.S.
      Participant shall be made only if it complies with, and does not create
      adverse tax consequences under, Sections 424 and/or 409A of the Code, as
      applicable.

	 	 
	14. 	
      Administration of the Plan

	 	 
	14.1 	
      Within the foregoing limitations and subject to Section
      14.3, the Plan shall be administered by the Board of Directors. The
      Company shall effect the grant of Options under the Plan, in accordance
      with determinations made by the Board of Directors, pursuant to the
      provisions of the Plan, as to those individuals eligible to be
      Participants and the number of Common Shares which shall be the subject of
      each Option, by the execution and delivery of a stock option agreement in
      such form which is consistent with the provisions of the Plan as may be
      approved by the Board.

	 	 
	14.2 	
      All decisions and interpretations of the Board of
      Directors respecting the Plan or Options granted thereunder shall be
      conclusive and binding on the Company and the Participants and their
      respective legal personal representatives and beneficiaries and on all
      directors, officers, employees and Service Providers of the Company who
      are eligible under the provisions of the Plan to participate therein. No
      member of the Board shall be liable for any action taken or for any
      determination made in good faith in the administration, interpretation,
      construction or application of the Plan.

	 	 
	14.3 	
      All of the powers exercisable hereunder by the Board of
      Directors may, to the extent permitted by applicable law and authorized by
      resolution of the Board of Directors, be exercised by a duly appointed
      committee of the Board of Directors (in which case, all references to the
      Board of Directors will be deemed to be references to such
    committee).

	 	 
	15. 	
      Effective Date and Necessary Approvals

	 	 
	15.1 	
      No Options granted pursuant to the Plan or any amendment
      may be exercised by the Participants until the shareholders of the Company
      have approved the Plan or any amendment by the affirmative vote of a
      majority of the voting Common Shares of the Company at a general meeting
      of shareholders.

11

	15.2 	
      The obligations of the Company to sell and deliver the
      Common Shares on the exercise of the Options is subject to the approval of
      any securities regulatory authority or Exchange, which may be required in
      connection with the authorization, issuance or sale of such Common Shares
      by the Company.

	 	 
	16. 	
      U.S. Provisions

	 	 
	16.1 	
      Common Shares shall not be issued with respect to an
      Option unless the exercise of such Option and the issuance and delivery of
      such Common Shares shall comply with all relevant provisions of law,
      including, without limitation, any applicable state securities laws, the
      United States Securities Act of 1933, as amended (the “1933 Act”),
      the rules and regulations thereunder and the requirements of any stock
      exchange or automated inter-dealer quotation system of a registered
      national securities association upon which such Common Shares may then be
      listed, and such issuance shall be further subject to the approval of
      counsel for the Company with respect to such compliance, including the
      availability of an exemption from registration for the issuance and sale
      of such Common Shares. The inability of the Company to obtain from any
      regulatory body the authority deemed by the Company to be necessary for
      the lawful issuance and sale of any Common Shares under the Plan, or the
      unavailability of an exemption from registration for the issuance and sale
      of any Common Shares under the Plan, shall relieve the Company of any
      liability with respect to the non-issuance or sale of such Common
      Shares.

	 	 
	16.2 	
      If the Common Shares issuable upon exercise of the
      Options have not been registered under the 1933 Act, as a condition to the
      exercise of an Option, the Company may require the Participant to
      represent and warrant in writing at the time of such exercise that the
      Common Shares are being purchased only for investment and without any then
      present intention to sell or distribute such Common Shares. At the option
      of the Company, a stop-transfer order against such Common Shares may be
      placed on the shareholder register and records of the Company, and a
      legend indicating that the Common Share(s) may not be pledged, sold or
      otherwise transferred unless an opinion of counsel is provided stating
      that such transfer is not in violation of any applicable law or
      regulation, may be stamped on the certificates representing such Common
      Shares in order to assure an exemption from registration. The Company also
      may require such other documentation as may from time to time be necessary
      to comply with federal and state securities laws. The Company has no
      obligation to undertake registration of Options or the Common Shares of
      stock issuable upon the exercise of Options.

	 	 
	16.3 	
      Incentive Stock Options

	 	(a) 	
      Maximum Number of Shares for Incentive Stock Options.
      Notwithstanding any other provision of this Plan to the contrary, the
      aggregate number of Common Shares available for Incentive Stock Options is
      13,000,000, subject to adjustment pursuant to Section 10 of this Plan and
      subject to the provisions of Sections 422 and 424 of the Code.

	 	 	 
	 	(b) 	
      Designation of Options. Each option agreement with
      respect to an Option granted to a U.S. Participant shall specify whether
      the related Option is an Incentive Stock Option or a Nonqualified Stock
      Option. If no such specification is made in the option agreement, the
      related Option will be a Nonqualified Stock Option.

	 	 	 
	 	(c) 	
      Special Requirements for Incentive Stock Options.
      In addition to the other terms and conditions of this Plan (and
      notwithstanding any other term or condition of this Plan to the contrary,
      except Section 17, which shall take precedence over this Section 16.3(c)
      in the event of any conflict between such Sections), the following
limitations and requirements will apply to an Incentive Stock Option: 

12

	 	(i) 	
      An Incentive Stock Option may be granted only to an
      Employee.

	 	 	 
	 	(ii) 	
      The aggregate Fair Market Value of the Common Shares
      (determined as of the applicable Grant Date) with respect to which
      Incentive Stock Options are exercisable for the first time by any U.S.
      Participant during any calendar year (pursuant to this Plan and all other
      plans of the Company and of any Parent or Subsidiary) will not exceed one
      hundred thousand United States dollars (U.S.$100,000) or any other
      limitation subsequently set forth in Section 422(d) of the Code.

	 	 	 
	 	(iii) 	
      The exercise price per Common Share payable upon exercise
      of an Incentive Stock Option will be not less than one hundred percent
      (100%) of the Fair Market Value of a Common Share on the applicable Grant
      Date; provided, however, that the exercise price per Common Share
      payable upon exercise of an Incentive Stock Option granted to a U.S.
      Participant who is a 10% Shareholder on the applicable Grant Date will be
      not less than one hundred ten percent (110%) of the Fair Market Value of a
      Common Share on the applicable Grant Date.

	 	 	 
	 	(iv) 	
      No Incentive Stock Option may be granted more than ten
      (10) years after the earlier of (i) the date on which this Plan is adopted
      by the Board or (ii) the date on which this Plan is approved by the
      shareholders of the Company.

	 	 	 
	 	(v) 	
      An Incentive Stock Option will terminate and no longer be
      exercisable no later than ten (10) years after the applicable Grant Date;
      provided, however, that an Incentive Stock Option granted to a U.S.
      Participant who is a 10% Shareholder on the applicable Grant Date will
      terminate and no longer be exercisable no later than five (5) years after
      the applicable Grant Date.

	 	 	 
	 	(vi) 	
      If a U.S. Participant who has been granted an Incentive
      Stock Option ceases to be an Employee, the Option Agreement with respect
      to such Incentive Stock Option may provide that it is exercisable as
      follows:

	 	(1) 	
      If a U.S. Participant who has been granted an Incentive
      Stock Option ceases to be an Employee due to the death of such U.S.
      Participant, such Incentive Stock Option may be exercised (to the extent
      such Incentive Stock Option was exercisable on the date of death) by the
      estate of such U. S. Participant, or by any person to whom such Incentive
      Stock Option was transferred in accordance with Section (c)(viii) below,
      for a period of one (1) year after the date of death (but in no event
      beyond the term of such Incentive Stock Option).

	 	 	
       

	 	(2) 	
      If a U.S. Participant who has been granted an Incentive
      Stock Option ceases to be an Employee due to the Disability of such U.S.
      Participant, such Incentive Stock Option may be exercised (to the extent
      such Incentive Stock Option was exercisable on the date of Disability) by
      such U. S. Participant for a period of ninety (90) days after the date
      of Disability (but in no event beyond the term of such Incentive
Stock Option). 

13

	 	(3) 	
      If a U.S. Participant who has been granted an Incentive
      Stock Option ceases to be an Employee due to termination for cause, such
      Incentive Stock Option will terminate and become null and void.

	 	 	 
	 	(4) 	
      If a U.S. Participant who has been granted an Incentive
      Stock Option ceases to be an Employee for any reason other than the death
      or Disability of such U.S. Participant or termination for cause, such
      Incentive Stock Option may be exercised (to the extent such Incentive
      Stock Option was exercisable on the date of termination) by such U.S.
      Participant for a period ninety (90) days after the date of termination
      (but in no event beyond the term of such Incentive Stock
Option).

	 	 	 
	 	(5) 	
      For purposes of this Section (c)(vi) and any option
      agreement relating to an Incentive Stock Option issued to a U.S.
      Participant, the employment of a U.S. Participant who has been granted and
      Incentive Stock Option will not be considered interrupted or terminated
      upon (a) sick leave, military leave or any other leave of absence approved
      by the Board that does not exceed ninety (90) days in the aggregate;
      provided, however, that if reemployment upon the expiration of any
      such leave is guaranteed by contract or applicable law, such ninety (90)
      day limitation will not apply, or (b) a transfer from one office of the
      Company (or of any Parent or Subsidiary) to another office of the Company
      (or of any Parent or Subsidiary) or a transfer between the Company and any
      Parent or Subsidiary.

	 	(vii) 	
      An Incentive Stock Option granted to a U.S. Participant
      may be exercised during such U.S. Participant’s lifetime only by such U.S.
      Participant.

	 	 	 
	 	(viii) 	
      An Incentive Stock Option granted to a U.S. Participant
      may not be transferred, assigned, pledged, hypothecated or otherwise
      disposed of by such U.S. Participant, except by will or by the laws of
      descent and distribution.

	 	 	 
	 	(ix) 	
      In the event that this Plan is not approved by the
      shareholders of the Company within twelve (12) months before or after the
      date on which this Plan is adopted by the Board, any Incentive Stock
      Option granted under this Plan will automatically be deemed to be a
      Nonqualified Stock Option.

	17. 	
      Options to California Residents

	 	 
	17.1 	
      Notwithstanding any other provision of this Plan or any
      option agreement, if the Company grants an Option to a Participant that is
      a resident of the State of California and such Option grant is not exempt
      from qualification under the California securities laws other than
      pursuant to Section 25102(o) of the California Corporations Code, or any
      successor thereto, the following provisions shall
apply:

	 	(a) 	
      If such a Participant’s employment is terminated other
      than for cause (as defined by applicable law, the terms of the Plan, the
      terms of the award agreement or the terms of a contract of employment),
      such Option shall continue to be exercisable, to the extent
  that the Participant is entitled to exercise on the date employment
terminates, until a date not earlier than the earliest to occur of (i) the
Option expiration date or (ii)(x) at least six (6) months from the date of
termination if termination was caused by death or Disability, or (y) at least
thirty (30) days from the date of termination if termination was caused by other
than death or Disability; 

14

	 	(b) 	
      Each Option shall not be exercisable after the expiration
      of ten (10) years from the date of the granting of the Option;
  and

	 	 	 
	 	(c) 	
      No Option shall be granted to such a Participant after
      ten years from the earlier of the date of adoption of the Plan by the
      Board or the date of shareholder approval or any earlier date of
      discontinuation or termination established pursuant to Section
  13.

	18. 	
      Withholding 

	 	
       

	18.1 	
      As a condition of and prior to participation in the Plan,
      each Participant authorizes the Company to withhold from any amount
      otherwise payable to him or her any amounts required by any taxing
      authority to be withheld for taxes of any kind as a consequence of his or
      her participation in the Plan. The Company shall also have the right in
      its discretion to satisfy any such liability for withholding or other
      required deduction amounts by retaining or acquiring any Option Shares, or
      retaining any amount payable, which would otherwise be issued or
      delivered, provided or paid to a Participant under the Plan. The Company
      may require a Participant, as a condition to exercise of an Option to pay
      or reimburse the Company for any such withholding or other required
      deduction amounts related to the exercise of Options. 

	 	
       

	19. 	
      Extension of Expiry Date of Options Expiring During a
      Trading Ban 

	 	
       

	19.1 	
      If the term of an Option held by a Participant expires
      during a restricted trading period imposed by the Company pursuant to
      which the Company’s management and directors are prohibited from trading
      in the Company’s securities (the “Blackout Period”), or within ten (10)
      business days after the last day of a Blackout Period, then the term of
      such Option or unexercised portion thereof shall be extended and shall
      expire on the tenth (10th) business day following the last day
      of the Blackout Period. 

	 	
       

	19.2 	
      Notwithstanding the foregoing, if at the time the
      Participant ceases to be a director, officer, employee or Service Provider
      due to early retirement, voluntary resignation or termination by the
      Company for reasons other than Cause, there is a Blackout Period, or if at
      any time during the ninety (90) day period set out in Section 8.2, there
      is a Blackout Period, then in calculating the time that the Option then
      held by the Participant shall be exercisable to acquire any Common Shares
      that have vested, the portion of such ninety (90) day period that remains
      upon commencement of a Blackout Period shall be in addition to any such
      blackout period. 

	 	
       

	20. 	
      Government/Exchange Requirements 

	 	
       

	20.1 	
      The Company’s obligation to issue and deliver Common
      Shares under any Option is subject to: 

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

15

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

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

The Company shall take all reasonable steps to obtain such
approvals and registrations as may be necessary for the issuance of such Common
Shares in compliance with applicable securities laws and for the listing of such
Common Shares on any stock exchange on which such Common Shares are then listed.

	21. 	
      Common Shares not Acquired

	 	 
	21.1 	
      Any Common Shares not acquired by a Participant under an
      Option, which have been cancelled or expired in accordance with their
      terms, may be made the subject of a further Option grant pursuant to the
      provisions of the Plan.

	 	 
	22. 	
      Exchange Rules

	 	 
	22.1 	
      All Options granted pursuant to the Plan will be subject
      to the rules and policies of the Exchange and any other regulatory body
      having jurisdiction over the Company.

	 	 
	23. 	
      No Representation or Warranty

	 	 
	23.1 	
      The Company makes no representation or warranty as to the
      future market value of any Common Shares issued in accordance with the
      provisions of the Plan.

	 	 
	24. 	
      General Provisions

	 	 
	24.1 	
      Nothing contained in the Plan shall prevent the Company
      or any of its affiliates from adopting or continuing in effect other
      compensation arrangements (subject to shareholder approval if such
      approval is required by the Exchange) and such arrangements may be either
      generally applicable or applicable only in specific cases.

	 	 
	24.2 	
      The validity, construction and effect of the Plan, the
      grants of Options, the issue of Common Shares, any rules and regulations
      relating to the Plan any written agreement, and all determinations made
      and actions taken pursuant to the Plan, shall be governed by and
      determined in accordance with the laws of the Province of British
      Columbia.

	 	 
	24.3 	
      If any provision of the Plan or any written agreement is
      or becomes or is deemed to be invalid, illegal or unenforceable in any
      jurisdiction or as to any person or Option, or would disqualify the Plan
      or any Option under any law deemed applicable by the Board, such provision
      shall be construed or deemed amended to conform to the applicable laws, or
      if it cannot be construed or deemed amended without, in the determination
      of the Board, materially altering the intent of the Plan or the Option,
      such provision shall be stricken as to such jurisdiction, person, or
      Option and the remainder of the Plan and any such written agreement shall
      remain in full force and effect.

16

	24.4 	
      Neither the Plan nor any Option shall create or be
      construed to create a trust or separate fund of any kind or a fiduciary
      relationship between the Company or any of its affiliates and a
      Participant or any other person.

	 	 
	24.5 	
      Headings are given to the sections of the Plan solely as
      a convenience to facilitate reference. Such headings shall not be deemed
      in any way material or relevant to the construction or interpretation of
      the Plan or any provision thereof.

	 	 
	25. 	
      Effective Date

	 	 
	25.1 	
      The Plan shall become effective upon being adopted by the
      Board.

17

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