Document:

Unassociated Document

    EXHIBIT
      4.1

     

    

       

      PLACER
        DOME INC.

      1987
        STOCK OPTION PLAN

      (as
        amended effective April 20, 1999, and as amended effective January 1, 2002,
        and
        as amended effective February 14, 2002, and as amended effective February
        19,
        2003 and ratified by the Shareholders on April 30, 2003, and as amended
        effective February 22, 2005, and as amended effective January 16,
        2006)

      

      
        	
                1.

              	
                Purpose

              

      

      

      The
        purpose of the 1987 Stock Option Plan, as amended, (the “Plan”) is to promote
        the profitability and growth of Placer Dome Inc. (the “Company”) by facilitating
        the efforts of the Company and its Subsidiary Companies to obtain and retain
        employees. The Plan provides an incentive for and encourages ownership of
        the
        Company’s shares by employees of the Company and its Subsidiary Companies so
        that they may increase their stake in the Company and benefit from increases
        in
        the value of the Company’s shares.

      

      
        	
                2.

              	
                Administration

              

      

      

      The
        unrelated directors of the Company’s Board of Directors (such directors being
        referred to herein as the “Board”) shall approve grants of options to purchase
        shares of the Company pursuant to the Plan (“Options”) and stock appreciation
        rights (as defined below) included in any Option. Subject to the foregoing,
        the
        Plan shall be administered by a committee (the “Committee”) of the Board
        appointed by the Board and consisting of three (3) or more unrelated directors
        and none of whom shall be employees of the Company or otherwise eligible
        to
        receive Options. The Committee may also make recommendations to the Board
        in
        respect of grants of Options and stock appreciation rights. Until otherwise
        determined by the Board, the Human Resources and Compensation Committee of
        the
        Board shall constitute the Committee.

      

      For
        the
        purposes of the preceding paragraph, “unrelated directors” shall have the
        meaning set forth in the rules and policies of the Toronto Stock Exchange
        (the
“TSE”).

      

      The
        Committee is authorized, subject to the provisions of the Plan, to adopt
        such
        rules and regulations which it deems consistent with the Plan’s provisions and,
        in its sole discretion, to designate Options as “incentive stock options” within
        the meaning of Section 422 of the United States Internal Revenue Code
        (“Incentive Stock Options”). The Committee’s determination and interpretations
        shall be final and conclusive.

      

      The
        Committee may authorize one or more employees of the Company to execute,
        deliver
        and receive documents on behalf of the Committee.

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      
        	
                3.

              	
                Eligibility

              

      

      

      Employees
        of the Company and its Subsidiary Companies shall be eligible to receive
        Options. The term “Employee” means an individual who is a full-time employee of
        the Company or a Subsidiary Company including an officer, whether or not
        a
        director, but does not include any director who is not a full-time employee
        of
        the Company or a Subsidiary Company. The term “Subsidiary Company”, for the
        purpose of the Plan, means any company that is a subsidiary of the Company
        within the meaning of the Securities
        Act
        (Ontario) (the “Act”).

      

      Nothing
        in the Plan or in any Option shall confer any right on any Employee to continue
        in the employ of the Company or any Subsidiary Company or shall interfere
        in any
        way with the right of the Company or Subsidiary Company to terminate at any
        time
        the employment of a person who is an optionee under an Option.

      

      4.     Shares
        Subject to the Plan 

      

      The
        shares to be optioned under the Plan shall be authorized but unissued Common
        Shares in the capital of the Company (“Shares”).

      

      The
        aggregate number of Shares for which Options may be granted shall not exceed
        thirty-two million (32,000,000) Shares, subject to adjustment under Section
        13
        below.

      

      The
        maximum number of Shares which may be reserved for issuance to any one Employee
        shall not exceed 5% of the Issuable Shares.

      

      Notwithstanding
        any other provision of this Plan, (i) the maximum number of Shares reserved
        for
        issuance to insiders (as defined in the Act, but excluding any person within
        that definition solely by virtue of being a director or officer of a Subsidiary
        Company) of the Company and their associates (as defined in the Act) under
        the
        Plan shall not, when taken together with the number of Shares issued to such
        insiders and their associates under the Company’s other previously established
        or proposed share compensation arrangements, exceed 10% of the Issuable Shares;
        and (ii) the maximum number of Shares which may be issued to insiders of
        the
        Company under the Plan within any one-year period, when taken together with
        the
        number of Shares issued to such insiders under the Company’s other previously
        established or proposed share compensation arrangements, shall not exceed
        10% of
        the Issuable Shares for all such insiders in the aggregate and, in the case
        of
        any one insider and his or her associates, shall not exceed 5% of the Issuable
        Shares.

      

      The
        term
“Issuable Shares” means the number of Shares outstanding immediately prior to
        the share issuance in question, but excluding shares of any class of the
        Company
        issued under the Plan or 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      pursuant
        to share compensation arrangements of the Company over the one year period
        next
        preceding the date of share issuance in question.

      

      Shares
        subject to and not delivered under an Option which expires or terminates
        shall
        again be available for option under the Plan.

      

      Shares
        with respect to which Options have been surrendered pursuant to Section 7
        below
        shall not be available for future Options.

      

      5.   
            Granting
        and Term of Options

      

      The
        Board
        may from time to time at its discretion, subject to the provisions of the
        Plan,
        determine those eligible Employees to whom Options shall be granted, the
        number
        of Shares subject to such Options, and the dates on which such Options are
        to be
        granted, the Exercise Price and the dates prior to which Options may not
        be
        exercised. 

      

      Each
        Option, including any related stock appreciation rights referred to in Section
        7
        below, shall be evidenced by a written agreement between, and executed by,
        the
        Company and the Employee (sometimes called the “Optionee”) containing terms and
        conditions established by the Board with respect to such Option and any related
        stock appreciation rights and shall be consistent with the provisions of
        the
        Plan. Any Option designated as an Incentive Stock Option shall be clearly
        identified as such on the face of such written agreement.

      

      An
        Option
        may not be exercised or surrendered before the first anniversary of the date
        of
        grant unless the Board, in its sole discretion, otherwise determines, or
        after
        the expiration of ten years from the date of grant.

      

      The
        Exercise Price shall be paid in full by cheque or bank draft at the time
        of
        exercise of the Option and no Shares shall be delivered until full payment
        is
        made.

      

      An
        Optionee shall not be deemed the holder of any Shares subject to his or her
        Option until the Shares are delivered to him or her.

      

      
        	
                6.

              	
                Exercise
                  Price

              

      

      

      The
        price
        per Share at which Shares may be purchased upon the exercise of an Option
        (the
“Exercise Price”) shall be: 

       

      
        	(a)    	
                expressed
                  in Canadian dollars and shall be equal to the closing board lot
                  sale price
                  per share of Shares traded on the TSE on the trading day immediately
                  preceding the date on which such Option is granted, and in the
                  event there
                  was not a board lot sale on the TSE on such date, the Exercise
                  Price shall
                  be the last board lot sale price per share prior thereto,
                  or

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(b)    	
                expressed
                  in U.S. dollars and shall be equal to the closing board lot sale
                  price per
                  share of Shares traded on the New York Stock Exchange (the “NYSE”) on the
                  trading day immediately preceding the date on which such Option
                  is
                  granted, and in the event there was not a board lot sale on the
                  NYSE on
                  such date, the Exercise Price shall be the last board lot sale
                  price per
                  share prior thereto,

              

      

       

      as
        may be
        determined by the Board as at the date of each grant of an Option. If the
        Board
        does not make a determination as at the date of each grant of an Option,
        the
        Exercise Price shall be expressed in U.S. dollars in accordance with 6(b)
        above.

       

      7.      Stock
        Appreciation Rights

      

      At
        the
        sole discretion of the Board, stock appreciation rights (“SARs”) may be included
        in any Option, either at the time of grant or by amendment or supplemental
        grant. SARs shall entitle the holder thereof to surrender to the Company
        all or
        any part of such Option which he could then exercise and receive from the
        Company upon such surrender cash equal to the excess of the fair market value
        of
        one Share at the time of surrender over the Exercise Price multiplied by
        the
        number of Shares with respect to which the Option is surrendered. The fair
        market value of the Shares at the time of surrender shall be the average
        of the
        daily high and low board lot trading prices of the Shares on the TSE for
        the
        five (5) trading days immediately preceding the date upon which the Option
        is
        surrendered.

      

      In
        no
        event shall an SAR be exercisable at any time earlier or later or to a greater
        extent than the Option to which it relates.

      

      SARs
        under this Section may be exercised only by written notice to the Company,
        in a
        form satisfactory to the Company. 

      

      If
        any
        Option is surrendered in part under this Section, it shall remain in effect
        without change as to the number of Shares with respect to which it has not
        been
        surrendered. Any surrender shall not affect the right of an Employee to be
        granted further Options.

      

      The
        Company shall be entitled, in connection with the exercise or surrender of
        any
        Option, to withhold any required taxes and the Committee may require as a
        condition of the exercise of an Option or the surrender of an Option that
        the
        person seeking to exercise or surrender the Option pay to the Company in
        cash an
        amount sufficient to satisfy the Company’s obligation in the event that the
        amount withheld is not sufficient to satisfy the Company’s
        obligation.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      8.        
        Non-Assignability
        of Options

      

      Unless
        otherwise permitted by the Committee and the TSE, no Option, including any
        SAR
        referred to in Section 7 above, shall be exercisable during the Optionee’s
        lifetime, except by the Optionee or his or her legal personal representative
        or
        be assignable or transferrable otherwise than by will or by the laws governing
        the devolution of property in the event of death.

      

      
        	
                9.

              	
                Retirement

              

      

      

      If
        any
        Optionee (i) shall retire from the Company or Subsidiary Company, or (ii)
        terminates his or her employment with the consent of the board under
        circumstances equating retirement, or (iii) is a party to an employment
        agreement with the Company that specifies the circumstances that shall equate
        to
        retirement for the purposes of the Plan, and such circumstances in fact take
        place (collectively, “Retirement”), while holding an Option which has not been
        fully exercised or surrendered, such Option shall immediately vest and become
        exercisable and the Optionee may exercise such Option, or surrender the Option
        pursuant to Section 7 above, at any time during the unexpired term of the
        Option.

      

      10.     
         Disability

      

      If
        the
        employment of an Optionee with the Company or a Subsidiary Company shall
        be
        terminated due to permanent disability (“Disability”) in accordance with the
        then applicable disability policy or plan of the Company or Subsidiary Company,
        as applicable, while the Optionee is holding an Option which has not been
        fully
        exercised or surrendered, such Option shall immediately vest and become
        exercisable and the Optionee may exercise such Option, or surrender the Option
        pursuant to Section 7, at any time during the unexpired term of the
        Option.

      

      11.    
         Termination
        of Employment

      

      Upon
        termination of employment for any reason except death, Retirement or Disability,
        an Optionee may, at any time within ninety (90) days (or such longer period,
        not
        exceeding five (5) years as the Committee may allow) after the date of
        termination but not later than the date of expiration of the Option, exercise
        the Option, or surrender the Option pursuant to Section 7 above, to the extent
        he was entitled to do so on the date of termination. Any Option or portions
        of
        Options of terminated Employees not so exercised shall terminate, and shall
        again be available for future Options under the Plan. A change of employment
        shall not be considered a termination so long as the Optionee continues to
        be
        employed by the Company or a Subsidiary Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                12.

              	
                Death

              

      

      

      Notwithstanding
        any other provision of this Plan, if an Optionee who is employed by the Company
        or a Subsidiary Company or whose employment has been terminated by reason
        of
        Retirement or Disability shall die holding an Option which has not been fully
        exercised or surrendered, such Option shall immediately vest and become
        exercisable and the executors, administrators or legal personal representative
        of the Optionee may, at any time within sixty (60) days of the grant of letters
        probate of the will or letters of administration of the estate of the decedent
        or within one (1) year after the date of such death, whichever is the least
        time
        (but in no event later than the normal expiry date of the said Option under
        the
        provisions of Section 5 above), exercise such Option, or surrender the Option
        pursuant to Section 7 above.

      

      If
        an
        Optionee whose employment has been terminated for a reason other than Retirement
        or Disability shall die holding an Option which has not been fully exercised
        or
        surrendered, his or her executors, administrators or legal personal
        representative may, to the extent that the Option was exercisable on the
        date of
        death, exercise the Option, or surrender the Option pursuant to Section 7
        above
        at any time within sixty (60) days of the grant of letters probate of the
        will
        or letters of administration of the estate of the decedent or within one
        (1)
        year after the date of such death, whichever is the least time (but in no
        event
        later than the normal expiry date of the said Option under the provisions
        of
        Section 5 above).

      

      
        	
                13.

              	
                Changes
                  in Shares

              

      

      

      
        	 	
                (a)

              	
                In
                  the event of a subdivision, consolidation or reclassification of
                  outstanding Shares or other capital adjustment, or the payment
                  of a stock
                  dividend thereon, the number of Shares reserved or authorized to
                  be
                  reserved under the Plan, the number of Shares receivable on the
                  exercise
                  of an Option and the Exercise Price therefor shall be increased
                  or reduced
                  proportionately and such other adjustments shall be made as may
                  be deemed
                  necessary or equitable by the
                  Committee.

              

      

      

      
        	 	
                (b)

              	
                If
                  the Company amalgamates, consolidates or merges with or into another
                  body
                  corporate, whether by way of amalgamation, statutory arrangement
                  or
                  otherwise (the right to do so being hereby expressly reserved),
                  any Share
                  receivable on the exercise of Option shall be converted into the
                  securities, property or cash which the Employee would have received
                  upon
                  such amalgamation, consolidation or merger if the Employee had
                  exercised
                  his or her Option immediately prior to the effective date of such
                  amalgamation, consolidation or merger and the Exercise Price shall
                  be
                  adjusted appropriately by the Committee and such adjustment shall
                  be
                  binding for all purposes of the
                  Plan.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	 	
                (c)

              	
                In
                  the event of a change in the designation of the Company’s currently
                  authorized Shares, the shares resulting from any such change shall
                  be
                  deemed to be Shares within the meaning of the
                  Plan.

              

      

      

      
        	 	
                (d)

              	
                In
                  the event of any other change affecting the Shares, such adjustment,
                  if
                  any, shall be made as may be deemed equitable by the Committee
                  to properly
                  reflect such event.

              

      

      

      No
        adjustment provided in this Section 13 shall require the Company to issue
        a
        fractional Share and the total adjustment with respect to each Option shall
        be
        limited accordingly. Any adjustment made pursuant to this Section 13 with
        respect to the terms of an Option shall require a similar modification with
        respect to the terms of any SAR to which such Option relates.

      

      
        	
                14.

              	
                Amendment
                  or Termination

              

      

      

      The
        Board
        may, subject to regulatory approval, from time to time amend, suspend or
        terminate the Plan in whole or in part; provided, however, that the Board
        may
        not, without approval of the holders of a majority of the Shares present
        and
        voting in person or by proxy at a meeting of shareholders of the Company
        duly
        called for such purpose:

      

      
        	 	
                (a)

              	
                withdraw
                  the administration of the Plan and/or any Option granted hereunder
                  from a
                  committee consisting of three or more outside directors, a majority
                  of
                  whom are unrelated directors as that term is defined by the rules
                  and
                  policies of the TSE;

              

      

      

      
        	 	
                (b)

              	
                increase
                  the number of Shares available for Options under the
                  Plan;

              

      

      

      
        	 	
                (c)

              	
                reduce
                  the exercise price of any Option to a price that is less than the
                  Exercise
                  Price or otherwise materially increase the benefits accruing to
                  Employees
                  under the Plan; or

              

      

      

      
        	 	
                (d)

              	
                modify
                  the requirements as to eligibility for participation in the
                  Plan.

              

      

      

      No
        action
        by the Board to terminate the Plan pursuant to this Section 14 shall affect
        the
        grant of Options which became effective pursuant to the Plan prior to such
        action.

      

      The
        Committee may amend, modify or terminate any outstanding Option or SAR,
        including, but not limited to, substituting another award of the same or
        of a
        different type or changing the date of exercise; provided, however, that
        the
        Employee’s consent to such action shall be required unless the Committee
        determines that the action, when taken with any related action, would not
        materially and adversely affect the Employee.

      

      

      

      15.              Incentive
        Stock Options

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      This
        Section sets forth the special provisions that govern Incentive Stock Options
        granted under this Plan. Any Incentive Stock Option granted under this Plan
        may,
        if expressly stated in the agreement pertaining to such Option, include an
        SAR.

      

      
        	 	
                (a)

              	
                No
                  option granted after April 15, 2006 under the Plan shall be designated
                  as
                  an Incentive Stock Option;

              

      

      

      
        	 	
                (b)

              	
                The
                  aggregate fair market value (determined at the time the Incentive
                  Stock
                  Option is granted) of the Shares with respect to which Incentive
                  Stock
                  Options are exercisable for the first time by any Employee during
                  any
                  calendar year (under all incentive stock option plans of the Company
                  and
                  its parent and Subsidiary Companies) shall not exceed U.S.$100,000
                  or such
                  other limit as may from time to time be prescribed by the United
                  States
                  Internal Revenue Code of 1986, as amended (the “Code”);
                  and

              

      

      

      
        	 	
                (c)

              	
                The
                  agreement evidencing the Incentive Stock Options covered by a grant
                  of
                  Options shall contain such limitations and restrictions as are
                  necessary
                  in order that the Incentive Stock Options qualify as such under
                  Section
                  422 of the Code and may contain such other terms not inconsistent
                  with the
                  terms and conditions contained in this Section 15 or with the provisions
                  of Section 422 of the Code, as the Committee may determine.
                  

              

      

      

      
        	
                16.

              	
                Interpretation

              

      

      

      The
        Plan
        shall be construed according to the laws of the Province of British
        Columbia.

      

      17.             
        Provisions
        Relating to the Barrick Offer

       

      Optionees
        shall hereby have the right to effect a cashless exercise and exchange of
        the
        Options for the sole purpose of tendering to the revised takeover bid made
        by
        Barrick Gold Corporation (“Barrick”) dated January 5, 2006 (the “Barrick Offer”)
        all Shares issued in connection with such cashless exercise and exchange
        on the
        following basis:

       

      
        	 	
                (a)

              	
                All
                  of the Options outstanding under the Plan shall forthwith be deemed
                  to be
                  fully vested and exercisable, conditional upon Barrick taking up
                  and
                  paying for Shares under the Barrick
                  Offer.

              

      

       

      
        	 	
                (b)

              	
                Upon
                  execution of an Agreement to Tender in the form attached hereto
                  as
                  Schedule A and Barrick taking up and paying for any Shares under
                  the
                  Barrick Offer, the Optionee shall be deemed to have exercised and
                  exchanged his or her outstanding Options for a number of Shares
                  equal to
                  the number of Shares subject to each such Option multiplied by
                  a fraction,
                  of which the numerator is the amount by which the Consideration
                  exceeds
                  the exercise price per Share  

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	 	under such Option and the denominator is the
                Consideration, with the aggregate such resulting number of Shares
                to be
                rounded down to the nearest whole number.

      

       

      
        	 	
                (c)
                  

              	
                For
                  the purposes of the calculation in (a), the “Consideration” means the
                  closing price of the Shares on the New York Stock Exchange on the
                  trading
                  day immediately prior to the first day on which Barrick takes up
                  and pays
                  for any Shares under the Barrick Offer.

              

      

       

      
        	 	
                (d)

              	
                All
                  of the Shares resulting from the exercise and exchange of Options
                  pursuant
                  to this Section will be tendered to the Barrick Offer in the manner
                  set
                  forth in the Agreement to Tender attached hereto as Schedule
                  A.

              

      

       

      
        	 	
                (e)

              	
                All
                  of the Options exercised and exchanged in this manner will be deemed
                  to be
                  terminated following such exercise and exchange and of no further
                  force or
                  effect. 

              

      

       

      In
        the
        event that Barrick takes up and pays for any Shares under the Barrick Offer
        in
        compliance with the provisions of Section 2.1 of the Support Agreement, all
        outstanding Options not exercised and exchanged of as described in this Section
        or otherwise exercised shall be automatically changed into fully vested options
        to acquire Barrick Common Shares (on a tax-deferred basis for purposes of
        the
Income
        Tax Act (Canada))
        on the basis of each such Option becoming an option to acquire 0.8287 of
        a
        Barrick Common Share for each Share subject to such Option, with the resulting
        total number of Barrick Common Shares rounded down to the nearest whole number,
        with an exercise price per Barrick Common Share equal to the exercise price
        per
        Share of that Option immediately prior to the time the Option became an option
        to acquire Barrick Common Shares divided by 0.8287, with the resulting exercise
        price per Barrick Common Share rounded up to the nearest whole cent; such
        Options shall, other than with respect to the accelerated vesting of such
        Options, otherwise continue to be governed by the terms of this Plan and
        the
        relevant option agreement relating to their issuance.

       

      
        	
                18.

              	
                Liability

              

      

      

      No
        member
        of the Committee or any director or officer or Employee of the Company shall
        be
        personally liable for any act taken or omitted in good faith in connection
        with
        the Plan.Unassociated Document

    EXHIBIT
      4.2

     

     

    

      PLACER
        DOME INC.

       

      1993
        NON-EMPLOYEE DIRECTORS' STOCK OPTION PLAN

      (as
        amended February 14, 2002, and as amended effective January 16,
        2006)

      

      

      

      1.     
            Purpose

      

      The
        purpose of the 1993 Non-employee Directors' Stock Option Plan (the "Plan")
        is to
        attract and retain, as directors of the Corporation, qualified individuals
        who
        are not employees of the Corporation and provide an inducement for them to
        make
        a maximum contribution to the Corporation's success.

      

      

      2.               Administration

      

      The
        Plan
        shall be administered by the Human Resources and Compensation Committee (the
        "Committee") of the Corporation's Board of Directors (the "Board") unless
        otherwise determined by the Board.

      

      The
        Committee is authorized, subject to the provisions of the Plan, to adopt
        such
        rules and regulations which it deems consistent with the Plan's provisions.
        The
        Committee's determinations and interpretations shall be final and
        conclusive.

      

      The
        Committee may authorize one or more employees of the Corporation to execute,
        deliver and receive documents on behalf of the Committee.

      

      

      3.                Eligibility

      

      Non-employee
        Directors shall be eligible to receive options to purchase common shares
        of the
        Corporation pursuant to the Plan ("Options"). The term "Non-employee Director",
        for the purposes of the Plan, shall mean each member of the Board who is
        not an
        employee of the Corporation, or any of its Subsidiaries. The term
        "Subsidiaries", for the purposes of the Plan, shall mean any corporations
        that
        are at least 50% owned, directly or indirectly, by the Corporation.

      

      

      4.               Shares
        Subject to Option

      

      The
        shares to be optioned under the Plan shall be authorized but unissued common
        shares in the capital of the Corporation ("Shares").

      

      The
        aggregate number of Shares for which Options may be granted shall not exceed
        Seven Hundred and Fifty Thousand (750,000) Shares, subject to adjustment
        under
        Section 12 below.

      

      Shares
        subject to but not acquired pursuant to an Option which expires or terminates
        shall again be available for option under the Plan.

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.               Granting
        of Options

      

      Upon
        the
        Plan being approved by the shareholders of the Corporation, effective as
        of the
        date of said approval (the "Approval Date") and without the requirement of
        further action by the Board, each Non-employee Director, other than the
        non-executive Chairman of the Corporation ("the Chairman"), shall be granted
        an
        Option to purchase Ten Thousand (10,000) Shares and the Chairman shall be
        granted an Option to purchase Fifty Thousand (50,000) Shares. Each Non-employee
        Director who is elected subsequent to the Approval Date shall be granted,
        effective as of the date of such election and without the requirement of
        further
        action by the Board, an option to purchase Ten Thousand (10,000) Shares.
        Effective as of the date of each annual meeting of the shareholders of the
        Corporation held after the Approval Date (or, in the case of Non-employee
        Directors elected subsequent to the Approval Date, the date of their initial
        grant under the Plan), there shall be granted to each Non-employee Director
        (other than the Chairman) an Option to purchase Five Thousand (5,000) Shares
        and
        the Chairman shall be granted an Option to purchase Ten Thousand (10,000)
        Shares.

      

      Each
        Option shall be evidenced in a written agreement between, and executed by,
        the
        Corporation and the grantee of the Option (the "Optionee") containing the
        terms
        and conditions of such Option which shall be consistent with the provisions
        of
        the Plan.

      

      

      6.              Option
        Price

      

      The
        price
        per Share at which Shares may be purchased upon the exercise of an Option
        (the
“Option Price”) shall be: 

       

      
        	(a)    	
                expressed
                  in Canadian dollars and shall be equal to the closing board lot
                  sale price
                  per share of Shares traded on the Toronto Stock Exchange (the “TSE”) on
                  the trading day immediately preceding the date on which such Option
                  is
                  granted, and in the event there was not a board lot sale on the
                  TSE on
                  such date, the Option Price shall be the last board lot sale price
                  per
                  share prior thereto, or

              

      

       

      
        	(b)    	
                expressed
                  in U.S. dollars and shall be equal to the closing board lot sale
                  price per
                  share of Shares traded on the New York Stock Exchange (the “NYSE”) on the
                  trading day immediately preceding the date on which such Option
                  is
                  granted, and in the event there was not a board lot sale on the
                  NYSE on
                  such date, the Option Price shall be the last board lot sale price
                  per
                  share prior thereto,

              

      

       

      as
        may be
        determined by the Committee as at the date of each grant of an Option. If
        the
        Committee does not make a determination as at the date of each grant of an
        Option, the Option Price shall be expressed in U.S. dollars in accordance
        with
        6.(b) above.

      

      

      7.               
        Terms
        of Options

      

      An
        Option
        may not be exercised before the first anniversary of the date of grant or
        after
        the expiration of ten years from the date of grant.

      

      The
        Option Price shall be paid in full at the time of exercise of the Option,
        and no
        Shares shall be delivered until full payment is made.

      

      An
        Optionee shall not be deemed the holder of any Shares subject to his Option
        until the Shares are 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                        delivered
        to him.

      
8.              
        Transferability
        of Options

      

      An
        Option
        may not be transferred. During the lifetime of an Optionee, the Option may
        be
        exercised only by the Optionee or his legal personal
        representatives.

      

      

      9.               Cessation
        of Service

      

      An
        Optionee who ceases to be a director of the Corporation for any reason except
        death, retirement or disability shall be entitled, at any time prior to the
        earlier of the expiration of the Option and the expiration of ninety (90)
        days
        from the date he ceases to be a director, to exercise the Option to the extent
        he was entitled to do so on the date he ceased to be a director of the
        Corporation. Shares which are the subject matter of Options, but which are
        not
        purchased thereunder prior to the expiration or termination of such Option
        shall
        not be counted in determining the aggregate number of Shares issuable under
        the
        Plan.

      

      

      10.             Death

      

      Notwithstanding
        any other provision of the Plan, if any Optionee shall die holding an Option
        which has not been fully exercised, his executors, administrators or legal
        personal representatives may, at any time prior to the earliest of (i) the
        expiration of sixty (60) days from the date of grant of letters probate of
        the
        will of the Optionee or letters of administration of the Optionee's estate,
        (ii)
        the expiration of one year from the date of such death, or (iii) the normal
        expiry date of the said Option under the provisions of Section 7 above, exercise
        the Option with respect to the entire unexercised portion thereof without
        regard
        to the number of Shares as to which the decedent could have exercised the
        said
        Option immediately before death. 

      

      

      11.            
        Retirement,
        Disability

      

           
Notwithstanding
        any other provision of
        this Plan, if any Optionee shall cease to be a Director by virtue of retirement
        or disability (retirement or disability to be determined by the Committee),
        while holding an Option which has not been fully exercised, such Optionee
        may,
        at any time prior to the earlier of the expiration of ten years from the
        date of
        grant of the Option and five years from the date of retirement or disability,
        exercise the Option.

      

      12.             Changes
        in Share Capital

      

      If
        the
        outstanding Shares of the Corporation should be changed in number or in class
        by
        subdivision, consolidation, reorganization, reclassification or other like
        transaction (excluding the payment of stock dividends), the number and class
        of
        share and the option price per share with respect to unexercised Options
        theretofore granted, in any case in which an adjustment in the opinion of
        the
        Board would be proper, shall be adjusted so as appropriately to reflect such
        change. 

      
 

      13.            
        Amendment
        or Discontinuance

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        Board
        may alter, suspend or discontinue the Plan, but may not, without the approval
        of
        the shareholders of the Corporation, make any alteration which would (a)
        increase the aggregate number of Shares subject to Option under the Plan
        or
        eligible for issuance to any person, except as provided in Section 12, (b)
        decrease the Option Price except as provided in Section 12, or (c) change
        the
        requirements as to the class of persons eligible to receive Options under
        the
        Plan. Notwithstanding the foregoing, the terms of an existing Option may
        not be
        altered, suspended or discontinued without the consent in writing of the
        Optionee. All amendments to the Plan shall be subject to regulatory approval.
        

      

      

      14.             Interpretation

      

      The
        Plan
        shall be construed according to the laws of the Province of British
        Columbia.

      

      

      15.            
        Liability

      

      No
        member
        of the Committee or any director or officer or employee of the Corporation
        shall
        be personally liable for any act taken or omitted in good faith in connection
        with the Plan.

      

      16.             Provisions
        Relating to the Barrick Offer

       

      Optionees
        shall hereby have the right to effect a cashless exercise and exchange of
        the
        Options for the sole purpose of tendering to the revised takeover bid made
        by
        Barrick Gold Corporation (“Barrick”) dated January 5, 2006 (the “Barrick Offer”)
        all Shares issued in connection with such cashless exercise and exchange
        on the
        following basis:

       

      
        	 	
                (a)

              	
                Upon
                  execution of an Agreement to Tender in the form attached hereto
                  as
                  Schedule A and Barrick taking up and paying for any Shares under
                  the
                  Barrick Offer, the Optionee shall be deemed to have exercised and
                  exchanged his or her outstanding Options for a number of Shares
                  equal to
                  the number of Shares subject to each such Option multiplied by
                  a fraction,
                  of which the numerator is the amount by which the Consideration
                  exceeds
                  the exercise price per Share under such Option and the denominator
                  is the
                  Consideration, with the aggregate such resulting number of Shares
                  to be
                  rounded down to the nearest whole number.

              

      

       

      
        	 	
                (b)
                  

              	
                For
                  the purposes of the calculation in (a), the “Consideration” means the
                  closing price of the Shares on the New York Stock Exchange on the
                  trading
                  day immediately prior to the first day on which Barrick takes up
                  and pays
                  for any Shares under the Barrick Offer.

              

      

       

      
        	 	
                (c)

              	
                All
                  of the Shares resulting from the exercise and exchange of Options
                  pursuant
                  to this Section will be tendered to the Barrick Offer in the manner
                  set
                  forth in the Agreement to Tender attached hereto as Schedule
                  A.

              

      

       

      
        	 	
                (d)

              	
                All
                  of the Options exercised and exchanged in this manner will be deemed
                  to be
                  terminated following such exercise and exchange and of no further
                  force or
                  effect. 

              

      

       

      In
        the
        event that Barrick takes up and pays for any Shares under the Barrick Offer
        in
        compliance with the provisions of Section 2.1 of the Support Agreement, all
        outstanding Options not exercised and exchanged as described in this Section
        or
        otherwise exercised shall be automatically changed into options to acquire
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Barrick
        Common Shares (on a tax-deferred basis for purposes of the Income
        Tax Act (Canada))
        on the basis of each such Option becoming an option to acquire 0.8287 of
        a
        Barrick Common Share for each Share subject to such Option, with the resulting
        total number of Barrick Common Shares rounded down to the nearest whole number,
        with an exercise price per Barrick Common Share equal to the exercise price
        per
        Share of that Option immediately prior to the time the Option became an option
        to acquire Barrick Common Shares divided by 0.8287, with the resulting exercise
        price per Barrick Common Share rounded up to the nearest whole cent; such
        Options shall otherwise continue to be governed by the terms of this Plan
        and
        the relevant option agreement relating to their issuance.”

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