Document:

Omnibus Share Compensation Plan

 Exhibit 4.1 

 
 

 
  
  

TEKMIRA 2011 OMNIBUS SHARE COMPENSATION PLAN 
 (as approved by the board of directors on May 10, 2011 and 
 approved
by the shareholders at the June 22, 2011 Annual and Special General Meeting) 
  

 

 TEKMIRA PHARMACEUTICALS CORPORATION 

TEKMIRA PHARMACEUTICALS CORPORATION 2011 OMNIBUS SHARE COMPENSATION PLAN 

(as approved by the board of directors on May 10, 2011 and 

approved by the shareholders at the June 22, 2011 Annual and Special General Meeting) 

 

	1.	PURPOSE OF THE PLAN 

 1.1 Purpose of
this Plan. The purpose of this Plan is to promote the interests of the Corporation by: 
  

	 	(a)	furnishing certain directors, officers, employees or consultants of the Corporation or an Affiliate or other persons as the Compensation Committee may approve with
greater incentive to further develop and promote the business and financial success of the Corporation; 

  

	 	(b)	furthering the identity of interests of persons to whom equity-based incentive awards may be granted with those of the shareholders of the Corporation generally through
share ownership in the Corporation; and 

  

	 	(c)	assisting the Corporation in attracting, retaining and motivating its directors, officers, employees and consultants. 

The Corporation believes that these purposes may best be effected by granting equity-based incentive awards to Eligible Participants. 

 

	2.	DEFINITIONS 

 2.1 Definitions. In
this Plan, unless there is something in the subject matter or context inconsistent therewith, capitalized words and terms will have the following meanings: 
  

	 	(a)	“Affiliate” means an affiliate company as defined in the Securities Act; 

 

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

 

	 	(c)	“Award” means an award of Deferred Stock Units, Options, Restricted Stock Units, or Tandem SARs; 

 

	 	(d)	“Award Agreement” means an agreement evidencing a Deferred Stock Unit, Option, Restricted Stock Unit or Tandem SAR, entered into by and between the
Corporation and an Eligible Person; 

  

	 	(e)	“Blackout Period” means an interval of time during which trading in securities of the Corporation by officers, directors and employees of the
Corporation is prohibited pursuant to the Corporation’s Insider Trading Policy; 

	 	(f)	“Board of Directors” means the board of directors of the Corporation as constituted from time to time; 

 

	 	(g)	“Change in Control” means: 

  

	 	(i)	any merger or consolidation in which voting securities of the Corporation possessing more than fifty percent (50%) of the total combined voting power of the
Corporation’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction and the composition of the Board of Directors following such transaction is
such that the directors of the Corporation prior to the transaction constitute less than fifty percent (50%) of the Board of Directors membership following the transaction; 

 

	 	(ii)	any acquisition, directly or indirectly, by a person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is
controlled by, or is under common control with, the Corporation) of beneficial ownership of voting securities of the Corporation possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding
securities; 

  

	 	(iii)	any acquisition, directly or indirectly, by a person or related group of persons of the right to appoint a majority of the directors of the Corporation or otherwise
directly or indirectly control the management, affairs and business of the Corporation; 

  

	 	(iv)	any sale, transfer or other disposition of all or substantially all of the assets of the Corporation; and 

 

	 	(v)	a complete liquidation or dissolution of the Corporation; 

 provided however, that a Change in Control shall not be deemed to have occurred if such Change in Control results solely from the issuance, in connection with a bona fide financing or series of
financings by the Corporation or any of its Affiliates, of voting securities of the Corporation or any of its Affiliates or any rights to acquire voting securities of the Corporation or any of its Affiliates which are convertible into voting
securities; 
  

	 	(h)	“Common Shares” means the common shares in the capital of the Corporation as constituted on the Effective Date, provided that if the rights of any
Participant are subsequently adjusted pursuant to Article 20 hereof, “Common Shares” thereafter means the shares or other securities or property which such Participant is entitled to purchase after giving effect to such adjustment;

  

	 	(i)	“Compensation Committee” has the meaning ascribed thereto in Section 5.1 of this Plan; 

  
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	 	(j)	“Consultant” means any individual, corporation or other person engaged to provide ongoing valuable services to the Corporation or an Affiliate;

  

	 	(k)	“Corporation” means Tekmira Pharmaceuticals Corporation and includes any successor corporation thereto; 

 

	 	(l)	“Deferred Stock Unit” means a right granted to an Eligible Person in accordance with Section 11 to receive, on a deferred payment basis, a cash
payment or Common Shares, or any combination thereof, as determined by the Compensation Committee and on the terms contained in this Plan; 

  

	 	(m)	“Effective Date” has the meaning ascribed thereto by Section 3.1 of this Plan; 

 

	 	(n)	“Eligible Person” means a director, officer, employee or Consultant of the Corporation or an Affiliate or a person otherwise approved by the
Compensation Committee; 

  

	 	(o)	“Exercise Price” means the price per Common Share at which a Participant may purchase Common Shares pursuant to an Option, provided that if such price
is adjusted pursuant to Section 20.1 hereof, “Exercise Price” thereafter means the price per Common Share at which such Participant may purchase Common Shares pursuant to such Option after giving effect to such adjustment;

  

	 	(p)	“Fair Market Value” as it relates to Common Shares means: 

 

	 	(i)	where the Common Shares are listed for trading on a Stock Exchange, the closing price of the Common Shares on such Stock Exchange as determined by the Compensation
Committee, for the Trading Session on the day prior to the relevant time as it relates to an Award; or 

  

	 	(ii)	where the Common Shares are not publicly traded, the value which is determined by the Compensation Committee to be the fair value of the Common Shares at the relevant
time as it relates to an Award, taking into consideration all factors that the Compensation Committee deems appropriate, including, without limitation, recent sale and offer prices of the Common Shares in private transactions negotiated at
arm’s length; 

  

	 	(q)	“Insider” means: 

  

	 	(i)	an insider as defined in the Securities Act; and 

  

	 	(ii)	an Associate or Affiliate of any person who is an insider; 

  

	 	(r)	“Key Employee” means an employee of the Corporation who at any time during the calendar year is an officer of the Corporation whose annual compensation
is equal to or greater than US$130,000, an employee whose share ownership in the Corporation is 5% or more, or an employee whose share ownership in the Corporation is 1% or more and whose annual compensation exceeds US$150,000, or as U.S. federal
tax law is amended in this regard from time to time; 

  
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	 	(s)	“Legal Representative” has the meaning ascribed thereto by Section 14.1 of this Plan; 

 

	 	(t)	“Merger and Acquisition Transaction” means: 

  

	 	(i)	any merger; 

  

	 	(ii)	any acquisition; 

  

	 	(iii)	any amalgamation; 

  

	 	(iv)	any offer for shares of the Corporation which if successful would entitle the offeror to acquire all of the voting securities of the Corporation; or

  

	 	(v)	any arrangement or other scheme of reorganization; 

 that results in a Change in Control; 
  

	 	(u)	“Non Blackout Trading Day” means a day on which (i) a Trading Session occurs, and (ii) no Blackout Period is in place;

  

	 	(v)	“Notice of Settlement” means a notice delivered to the Corporation in the form prescribed by the Corporation from time to time, or in absence of such
form, a written notice indicating the Participant’s desire to receive his or her Settlement Amount and delivered to the Corporation; 

  

	 	(w)	“Options” means stock options granted hereunder to purchase Common Shares from treasury pursuant to the terms and conditions hereof and as evidenced by
an Option Agreement and “Option” means any one of them; 

  

	 	(x)	“Option Agreement” means an agreement evidencing an Option, entered into by and between the Corporation and an Eligible Person;

  

	 	(y)	“Outstanding Common Shares” at the time of any share issuance or grant of Options means the number of Common Shares that are outstanding immediately
prior to the share issuance or grant of Options in question, on a non-diluted basis, or such other number as may be determined under the applicable rules and regulations of all regulatory authorities to which the Corporation is subject, including
the Stock Exchange; 

  

	 	(z)	“Participant” means a person to whom an Award has been granted under this Plan; 

 

	 	(aa)	“Plan” means the Tekmira 2011 Omnibus Share Compensation Plan, as the same may from time to time be supplemented or amended and in effect;

  
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	 	(bb)	“Restricted Stock Unit” means a right granted to an Eligible Person in accordance with Section 10 to receive a cash payment or Common Shares, or a
combination thereof, as determined by the Compensation Committee, equal in value to the Fair Market Value of the Common Shares on an applicable future settlement date as specified by the Compensation Committee, on the terms and conditions and
calculated in accordance with Section 10 hereof; 

  

	 	(cc)	“Settlement Amount” means an amount paid to the holder of Deferred Stock Units as determined pursuant to Section 11; 

 

	 	(dd)	“Securities Act” means the Securities Act, R.S.B.C. 1996, c.418, as amended from time to time; 

 

	 	(ee)	“Stock Exchange” means such stock exchange or other organized market on which the Common Shares are listed or posted for trading;

  

	 	(ff)	“Tandem SAR” means a right, granted in accordance with Section 9 in tandem with an Option, to receive upon the exercise thereof payment in cash,
Common Shares or any combination thereof, as determined by the Compensation Committee, an amount equal to the excess of the Fair Market Value of the Common Shares on the date of exercise of such Tandem SAR over the Option Exercise Price, on the
terms and conditions and calculated in accordance with Section 9 hereof; 

  

	 	(gg)	“Terminated Service” means that a Participant has, except as a result of death or disability, ceased to be a director, officer, employee or Consultant
of the Corporation, as the case may be; 

  

	 	(hh)	“Trading Session” means a trading session on a day which the applicable Stock Exchange is open for trading; 

 

	 	(ii)	“U.S. Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended from time to time; 

 

	 	(jj)	“U.S. Internal Revenue Code” means the Internal Revenue Code of 1986 of the United States, as amended from time to time; 

 

	 	(kk)	“U.S. Nonqualified Stock Option” means an Option to purchase Common Shares other than a U.S. Qualified Incentive Stock Option;

  

	 	(ll)	“U.S. Optionee” or “U.S. Person” means a Participant who is a citizen or a resident of the United States (including its territories,
possessions and all areas subject to the jurisdiction); and 

  

	 	(mm)	“U.S. Qualified Incentive Stock Option” means an Option to purchase Common Shares with the intention that it qualify as an “incentive stock
option” as that term is defined in Section 422 of the U.S. Internal Revenue Code, such intention being evidenced by the resolutions of the Compensation Committee at the time of grant. 

  
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	3.	EFFECTIVE DATE OF PLAN 

 3.1 Effective
Date of this Plan. The effective date (the “Effective Date”) of this Plan is June 22, 2011, the date on which this Plan was adopted by the shareholders of the Corporation. 

 

	4.	COMMON SHARES SUBJECT TO PLAN 

 4.1
Common Shares Subject to this Plan. The aggregate number of Common Shares in respect of which Awards may be granted pursuant to this Plan shall not exceed 1,643,144. The number of Common Shares in respect of which Awards may be granted pursuant
to this Plan may be increased, decreased or fixed by the Board of Directors, as permitted under the applicable rules and regulations of all regulatory authorities to which the Corporation is subject, including the Stock Exchange. 

4.2 Computation of Available Shares. For the purposes of computing the number of Common Shares available for grant under this Plan, Common Shares
subject to any Award (or any portion thereof) that have expired or are forfeited, surrendered, cancelled or otherwise terminated prior to the issuance or transfer of such Common Shares and Common Shares subject to an Award (or any portion thereof)
that is settled in cash in lieu of settlement in Common Shares shall again be available for grant under this Plan. Notwithstanding the foregoing, any Common Shares subject to an Award that are withheld or otherwise not issued (upon either an
exercise of any Option or Tandem SAR or any settlement of any Award) in order to satisfy the Participant’s withholding obligations or in payment of any Option Exercise Price shall reduce the number of Common Shares available for grant under the
limitations set forth in this Article 4. 
 4.3 Reservation of Shares. The Board of Directors will reserve for allotment from time to
time out of the authorized but unissued Common Shares sufficient Common Shares to provide for issuance of all Common Shares which are issuable under all outstanding Awards. 
 4.4 No Fractional Shares. No fractional Common Shares may be purchased or issued under this Plan. 
 4.5 Settlement of Awards. Subject to the terms and limitations of the Plan, payments or transfers to be made upon the exercise settlement of an Award, other than an Option, may be made in such form
or forms as the Compensation Committee shall determine (including, without limitation, cash or Common Shares), and payment or transfers made in whole or in part in Common Shares may, in the discretion of the Compensation Committee, be issued from
treasury or purchased in the open market. 
  

	5.	ADMINISTRATION OF PLAN 

 5.1
Administration of Plan. The Board of Directors may at any time appoint a committee (the “Compensation Committee”) to, among other things, interpret, administer and implement this Plan on behalf of the Board of Directors in
accordance with such terms and conditions as the Board of Directors may prescribe, consistent with this Plan (provided that if at 

  
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any such time such a committee has not been appointed by the Board of Directors, this Plan will be administered by the Board of Directors, and in such event references herein to the Compensation
Committee shall be construed to be a reference to the Board of Directors). The Board of Directors will take such steps which in its opinion are required to ensure that the Compensation Committee has the necessary authority to fulfil its functions
under this Plan. 
 5.2 Award Agreements. Each Award will be evidenced by an Award Agreement which incorporates such terms and conditions
as the Compensation Committee in its discretion deems appropriate and consistent with the provisions of this Plan (and the execution and delivery by the Corporation of an Award Agreement with a Participant shall be conclusive evidence that such
Award Agreement incorporates terms and conditions approved by the Compensation Committee and is consistent with the provisions of this Plan). Each Award Agreement will be executed by the Participant to whom the Award is granted and on behalf of the
Corporation by any member of the Compensation Committee or any officer of the Corporation or such other person as the Compensation Committee may designate for such purpose. 
 5.3 Powers of Compensation Committee. The Compensation Committee is authorized, subject to the provisions of this Plan, to establish from time to time such rules and regulations, make such
determinations and to take such steps in connection with this Plan as in the opinion of the Compensation Committee are necessary or desirable for the proper administration of this Plan. For greater certainty, without limiting the generality of the
foregoing, the Compensation Committee will have the power, where consistent with the general purpose and intent of this Plan and subject to the specific provisions of this Plan and any approval of the Stock Exchange, if applicable: 

 

	 	(a)	to interpret and construe this Plan and any Award Agreement and to determine all questions arising out of this Plan and any Award Agreement, and any such
interpretation, construction or determination made by the Compensation Committee will be final, binding and conclusive for all purposes; 

  

	 	(b)	to determine to which Eligible Persons Awards are granted, and to grant, Awards; 

 

	 	(c)	to determine the number of Common Shares issuable pursuant to each Award; 

  

	 	(d)	to determine the Exercise Price for each Option; 

  

	 	(e)	to determine the time or times when Awards will be granted, vest and be exerciseable, as applicable; 

 

	 	(f)	to determine the vesting terms of Awards, which may be based upon the passage of time, continued employment or service, on the basis of corporate or personal
performance objectives, or any combination of the foregoing as determined by the Compensation Committee; 

  

	 	(g)	to determine any acceleration of vesting; 

  

	 	(h)	 to determine if the Common Shares that are subject to an Award will be subject to any restrictions or repurchase rights upon the exercise or settlement
of such 

  
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Award including, where applicable, the endorsement of a legend on any certificate representing Common Shares acquired on the exercise or settlement of any Award to the effect that such Common
Shares may not be offered, sold or delivered except in compliance with the applicable securities laws and regulations of Canada, the United States or any other country and if any rights or restrictions exist they will be described in the applicable
Award Agreement; 

  

	 	(i)	to determine the expiration date for each Award and to extend the period of time for which any Award is to remain exerciseable or may be settled in appropriate
circumstances, including, without limitation, in the event of the Participant’s cessation of employment or service, provided that such date may not be later than the earlier of (A) the latest date permitted under the applicable rules and
regulations of all regulatory authorities to which the Corporation is subject, including the Stock Exchange, and (B) in the case of an Option and, if applicable, Tandem SAR, the date which is the tenth anniversary of the date on which such
Option and, if applicable, Tandem SAR is granted; 

  

	 	(j)	to prescribe the form of the instruments relating to the grant, exercise, or settlement, as applicable, and other terms of Awards; 

 

	 	(k)	to enter into an Award Agreement evidencing each Award which will incorporate such terms as the Compensation Committee in its discretion deems consistent with this
Plan; 

  

	 	(l)	to take such steps and require such documentation from Eligible Persons which in its opinion are necessary or desirable to ensure compliance with the rules and
regulations of the Stock Exchange and all applicable laws; 

  

	 	(m)	to adopt such modifications, procedures and subplans as may be necessary or desirable to comply with the provisions of the laws of Canada, the United States and other
countries in which the Corporation or its Affiliates may operate to ensure the viability and maximization of the benefits from the Awards granted to Participants residing in such countries and to meet the objectives of this Plan; and

  

	 	(n)	to determine such other matters as provided for herein. 

  

	6.	GRANT OF OPTIONS 

 Subject
to the rules set out below, the Compensation Committee or the Board of Directors (or in the case of any proposed Participant who is a member of the Compensation Committee, the Board of Directors) may from time to time grant to any Eligible Person
one or more Options as the Compensation Committee or the Board of Directors deems appropriate. 
 6.1 Date Option Granted. The date on
which an Option will be deemed to have been granted under this Plan will be the date on which the Compensation Committee or the Board of Directors, as applicable, authorizes the grant of such Option or such other date as may be specified by the
Compensation Committee or the Board of Directors, as applicable, at the time of such authorization. 

  
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 6.2 Number of Common Shares/Maximum Grant. The number of Common Shares that may be purchased under
any Option will be determined by the Compensation Committee, provided that: 
  

	 	(a)	the number of Common Shares reserved for issuance to any one Participant pursuant to this Plan within any one year period shall not, in aggregate, exceed 5% of the
total number of Outstanding Common Shares on a non-diluted basis; and 

  

	 	(b)	the number of Common Shares: 

  

	 	(i)	issuable, at any time, to Participants that are Insiders; and 

  

	 	(ii)	issued to Participants that are Insiders within any one year period; 

 pursuant to this Plan, or when combined with all of the Corporation’s other security based share compensation arrangements shall not, in aggregate, exceed 10% of the total number of Outstanding
Common Shares on a non-diluted basis; 
 For the purposes of this Section 6.2, Common Shares issued pursuant to an
entitlement granted prior to the grantee becoming an Insider may be excluded in determining the number of Common Shares issuable to Insiders. A Participant who holds Options at the time of granting an Option, may hold more than one Option.

 6.3 Exercise Price. The Exercise Price per Common Share under each Option will be determined by the Compensation Committee, in its
sole discretion, but will in no event be less than the Fair Market Value of the date of the grant. 
  

	7.	U.S. QUALIFIED INCENTIVE STOCK OPTION PROVISIONS 

 To the extent required by Section 422 of the U.S. Internal Revenue Code, U.S. Qualified Incentive Stock Options shall be subject to the following additional terms and conditions and if there is any
conflict between the terms of this Article and other provisions under this Plan, the provisions under this Article shall prevail: 
 7.1
Eligible Employees. All classes of employees of the Corporation or one of its parent corporations or subsidiary corporations may be granted U.S. Qualified Incentive Stock Options. U.S. Qualified Incentive Stock Options shall only be granted to
U.S. Optionees who are, at the time of grant, officers, key employees or directors of the Corporation or one of its parent corporations or subsidiary corporations (provided, for purposes of this Article 7 only, such directors are then also officers
or key employees of the Corporation or one of its parent corporations or subsidiary corporations). For purposes of this Article 7, “parent corporation” and “subsidiary corporation” shall have the meanings attributed to those
terms for the purposes of Section 422 of the U.S. Internal Revenue Code. Any director of the Corporation who is a U.S. Optionee shall be ineligible to vote upon the granting of such Option; and for greater certainty, contractors of the
Corporation or subsidiary corporations may not be granted U.S. Qualified Incentive Stock Options. 

  
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 7.2 Dollar Limitation. To the extent the aggregate fair market value (determined as of the grant
date) of Common Shares with respect to which U.S. Qualified Incentive Stock Options are exercisable for the first time by a U.S. Optionee during any calendar year (under this Plan and all other stock option plans of the Corporation) exceeds U.S.
$100,000, such portion in excess of U.S. $100,000 shall be treated as a U.S. Nonqualified Stock Option. In the event the U.S. Optionee holds two or more such Options that become exercisable for the first time in the same calendar year, such
limitation shall be applied on the basis of the order in which such Options are granted. 
 7.3 10% Shareholders. If any U.S. Optionee to
whom an U.S. Qualified Incentive Stock Option is to be granted under this Plan at the time of the grant of such U.S. Qualified Incentive Stock Option is the owner of shares possessing more than ten percent (10%) of the total combined voting
power of all classes of shares of the Corporation, then the following special provisions shall be applicable to the U.S. Qualified Incentive Stock Option granted to such individual: 

 

	 	(i)	the Exercise Price (per Common Share) subject to such U.S. Qualified Incentive Stock Option shall not be less than one hundred ten percent (110%) of the fair
market value of one Common Share at the time of grant; and 

  

	 	(ii)	for the purposes of this Article 7 only, the option exercise period shall not exceed five (5) years from the date of grant. 

The determination of 10% ownership shall be made in accordance with Section 422 of the U.S. Internal Revenue Code. 

7.4 Exercisability. To qualify for U.S. Qualified Incentive Stock Option tax treatment, an Option designated as a U.S. Qualified Incentive Stock
Option must be exercised within three months after termination of employment for reasons other than death, except that, in the case of termination of employment due to total disability, such Option must be exercised within one year after such
termination. Employment shall not be deemed to continue beyond the first 90 days of a leave of absence unless the U.S. Optionee’s reemployment rights are guaranteed by statute or contract. For purposes of this Section 7.4, “total
disability” shall mean a mental or physical impairment of the U.S. Optionee which is expected to result in death or which has lasted or is expected to last for a continuous period of 12 months or more and which causes the U.S. Optionee to be
unable, in the opinion of the Corporation and two independent physicians, to perform his or her duties for the Corporation and to be engaged in any substantial gainful activity. Total disability shall be deemed to have occurred on the first day
after the Corporation and the two independent physicians have furnished their opinion of total disability to the Compensation Committee. 

7.5 Taxation of U.S. Qualified Incentive Stock Options. In order to obtain certain tax benefits afforded to U.S. Qualified Incentive Stock Options
under Section 422 of the U.S. Internal Revenue Code, the U.S. Optionee must hold the Common Shares issued upon the exercise of a U.S. Qualified Incentive Stock Option for two years after the date of grant of the U.S. Qualified Incentive Stock
Option and one year from the date of exercise. A U.S. Optionee 

  
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may be subject to U.S. alternative minimum tax at the time of exercise of a U.S. Qualified Incentive Stock Option. The Compensation Committee may require a U.S. Optionee to give the Corporation
prompt notice of any disposition of shares acquired by the exercise of a U.S. Qualified Incentive Stock Option prior to the expiration of such holding periods. 
 7.6 Transferability. No U.S. Qualified Incentive Stock Option granted under this Plan may be assigned or transferred by the U.S. Optionee other than by will or by the laws of descent and
distribution, and during the U.S. Optionee’s lifetime, such U.S. Qualified Incentive Stock Option may be exercised only by the U.S. Optionee. 
 7.7 Compensation Committee Governance if U.S. Registrant. If and so long as the Common Shares are registered under Section 12(b) or 12(g) of the U.S. Securities Exchange Act, the Board of
Directors will consider in selecting the members of the Compensation Committee, with respect to any persons subject or likely to become subject to Section 16 of the U.S. Securities Exchange Act, the provisions regarding “nonemployee
directors” as contemplated by Rule 16b-3 under the U.S. Securities Exchange Act. 
 7.8 Exercise Price. Notwithstanding
Section 6.3, no U.S. Qualified Incentive Stock Option granted under the Plan shall have an Exercise Price less than the fair market value of the underlying Common Shares at the date of grant of such Option, as determined at such time in good
faith by the Board or Directors or the Compensation Committee, as the case may be. 
 7.9 Approval by Shareholders. No U.S. Qualified
Incentive Stock Option granted to a U.S. Optionee under this Plan shall become exercisable unless and until this Plan shall have been approved by the shareholders of the Corporation within 12 months of approval by the Board of Directors of the
Corporation. 
 7.10 Option Agreements. Each Option will be evidenced by an Option Agreement which incorporates such terms and conditions
as the Compensation Committee in its discretion deems appropriate and consistent with the provisions of this Plan (and the execution and delivery by the Corporation of an Option Agreement with a Participant shall be conclusive evidence that such
Option Agreement incorporates terms and conditions approved by the Compensation Committee and is consistent with the provisions of this Plan). Each Option Agreement will be executed by the Participant to whom the Option is granted and on behalf of
the Corporation by any member of the Compensation Committee or any officer of the Corporation or such other person as the Compensation Committee may designate for such purpose. Each Option Agreement will specify the reasons for the Corporation
granting Options to such Participant. 

  
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	8.	EXERCISE OF OPTIONS 

 8.1 Exercise of
Options. Subject to the terms and conditions of this Plan, the Compensation Committee may impose such limitations or conditions on the exercise or vesting of any Option as the Compensation Committee in its discretion deems appropriate, including
limiting the number of Common Shares for which any Option may be exercised during any period as may be specified by the Compensation Committee and which number of Common Shares for which such Option may be exercised in any period will be specified
in the Option Agreement with respect to such Option. Each Option Agreement will provide that the Option granted thereunder may be exercised only by notice signed by the Participant or the Legal Representative of the Participant and accompanied by
full payment for the Common Shares being purchased. Such consideration may be paid in any combination of the following: 
  

	 	(a)	cash, bank draft or certified cheque; or 

  

	 	(b)	such other consideration as the Compensation Committee may permit consistent with applicable laws. 

As soon as practicable after any exercise of an Option, a certificate or certificates representing the Common Shares in respect of which such Option is
exercised will be delivered by the Corporation to the Participant. 
 8.2 Conditions. Notwithstanding any of the provisions contained in
this Plan or in any Option Agreement, the Corporation’s obligation to issue Common Shares to a Participant pursuant to the exercise of an Option will be subject to, if applicable: 

 

	 	(a)	completion of such registration or other qualification of such Common Shares or obtaining approval of such governmental authority as the Corporation will determine to
be necessary or advisable in connection with the authorization, issuance or sale thereof; 

  

	 	(b)	the admission of such Common Shares to listing or quotation on the Stock Exchange; and 

 

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

  

	9.	GRANT OF TANDEM SARS 

 9.1 Grant of
Tandem SARs. The Compensation Committee or the Board of Directors, as applicable, may from time to time grant an Award of Tandem SARs to a Participant for each Option granted to such Participant on such terms and conditions, consistent with the
Plan, as the Compensation Committee or the Board of Directors, as applicable, shall determine. 
 9.2 Terms of Tandem SARs. Tandem SARs
may be granted at or after the grant date of the related grant of Options, and each Tandem SAR shall be subject to the same terms and conditions and denominated in the same currency as the Option to which it relates and the additional terms and
conditions set forth in this Article 9. 
 9.3 Exercise of Tandem SARs. The Participant shall have the right to elect to exercise either
an Option or the related Tandem SAR, if so granted. If the Participant elects to exercise a Tandem SAR, the related Option shall be cancelled. Tandem SARs may be exercised only if and to the extent the Options related thereto are then vested. Tandem
SARs shall be exercisable at the election of the Participant by delivering to the Corporation a notice specifying the number of Options in respect of which the Tandem SARs are exercised. The Participant shall

  
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not pay the Option Exercise Price attributable to the Option to which the Tandem SAR is related, but must pay or satisfy, in accordance with the terms of Article 17, any withholding amounts or
administrative costs with respect to such exercise. 
 9.4 Settlement of Tandem SARs. Upon exercise of a Tandem SAR, and subject to
payment or other satisfaction of all related withholding obligations in accordance with Article 17, such Tandem SAR shall be settled and the Participant shall be entitled to a cash payment, Common Shares or a combination thereof, at the discretion
of the Compensation Committee, and settlement: 
  

	 	(a)	made in Common Shares shall be equal to such number of Common Shares having an aggregate value equal to the excess of the Fair Market Value of a Common Share on the
date of exercise of the Tandem SAR over the Option Exercise Price for the corresponding Option, multiplied by the number of Tandem SARs exercised; 

  

	 	(b)	made by a cash payment shall be an aggregate amount equivalent to the value derived by 9.4(a); and 

 

	 	(c)	made by a combination of a cash payment and Common Shares shall be equivalent to the value derived by 9.4(a). 

 

	10.	GRANT OF RESTRICTED STOCK UNITS 

 10.1
Grant of Restricted Stock Units. Restricted Stock Units may be granted pursuant to the terms of the Plan from time to time by the Compensation Committee or the Board of Directors, as applicable. The date on which any Restricted Stock Unit
will be deemed to have been granted will be the date on which the Compensation Committee or the Board of Directors, as applicable, authorizes the grant of such Award. 
 10.2 Vesting Terms. Restricted Stock Units shall become vested at such times, in such instalments, and subject to such terms and conditions as may be determined by the Compensation Committee and
set forth in the applicable Award Agreement. 
 10.3 Settlement of Restricted Stock Units. Restricted Stock Units shall be settled upon,
or as soon as reasonably practicable following, the vesting thereof, subject to payment or other satisfaction of all related withholding obligations in accordance with Article 17 hereof and administrative costs. Settlement shall be made by a cash
payment, Common Shares, or a combination thereof, as determined by the Compensation Committee in its sole discretion, and settlement: 
  

	 	(a)	made in Common Shares shall be made by delivery of one Common Share for each such Restricted Stock Unit then being settled; 

 

	 	(b)	made by a cash payment shall be an aggregate amount equal to the product of the Fair Market Value of the Common Shares on the applicable settlement date as specified by
the Compensation Committee, multiplied by the number of Restricted Stock Units then being settled; and 

  
 13 

	 	(c)	made by a combination of a cash payment and Common Shares shall be equivalent to the value derived by 10.3(b). 

 

	11.	GRANT OF DEFERRED STOCK UNITS 

 11.1
Grant of Deferred Stock Units. Deferred Stock Units may be granted pursuant to the terms of the Plan from time to time by the Compensation Committee or the Board of Directors, as applicable. The date on which any Deferred Stock Unit will be
deemed to have been granted will be the date on which the Compensation Committee or the Board of Directors, as applicable, authorizes the grant of such Award. 
 11.2 Vesting Terms. Deferred Stock Units shall become vested at such times and subject to such terms and conditions as may be determined by the Compensation Committee and set forth in the
applicable Award Agreement. 
 11.3 Determination of Deferred Stock Units. Deferred Stock Units awarded pursuant to this Plan will be
credited to an account maintained for each Participant by the Corporation as and when awards are made. The number of Deferred Share Units to be credited to a Participant will be determined on the date on which the Compensation Committee or the Board
of Directors, as applicable, authorizes the grant of DSU award, on a one Deferred Share Unit per Share basis. 
 11.4 Settlement of Deferred
Stock Units. Deferred Stock Units shall be settled upon the Terminated Service of a Participant, pursuant to the terms and conditions of this Section 11.4, and subject to payment or other satisfaction of all related withholding obligations
in accordance with Article 17 hereof and administrative costs. Settlement Amounts in respect of Deferred Stock Units shall be settled by a cash payment, Common Shares or any combination thereof, as determined by the Compensation Committee in its
sole discretion, and settlement: 
  

	 	(a)	made in Common Shares shall be made by delivery of one Common Share for each such Deferred Stock Unit then being settled on the Filing Date; 

 

	 	(b)	made by a cash payment shall be an aggregate amount equivalent to the value derived by 11.4(a); and 

 

	 	(c)	made by a combination of a cash payment and Common Shares will be equivalent to the value derived by 11.4(a). 

11.5 Payment of Settlement Amount. 
  

	 	(a)	Non-U.S. Persons 

  

	 	(i)	a Participant who is not a U.S. Person and who has Terminated Service may receive their Settlement Amount by filing a Notice of Settlement on or before December 15
of the first calendar year commencing after the date of the Participant’s Terminated Service. If the Participant fails to file such notice on or before that December 15, the Participant will be deemed to have filed the Notice of Settlement
on that December 15. 

  
 14 

	 	(ii)	subject to Article 18 herein, the Corporation shall make payment of the Settlement Amount as soon as reasonably possible following the Filing Date.

  

	 	(iii)	in the event of the death of a Participant who is not a U.S. Person, the Corporation will, subject to Article 18 herein, make payment of the Settlement Amount within
two months of the Participant’s death to or for the benefit of the legal representative of the deceased Participant. For the purposes of this subsection, the Filing Date shall be the date of the Participant’s death.

  

	 	(iv)	if a Participant who is not a U.S. Person dies after the Participant has Terminated Service but before filing a Notice of Settlement, Section 11.5(a)(iii) will
apply. 

  

	 	(b)	U.S. Persons 

  

	 	(i)	in the event that a Participant who is a U.S. Person and not a Key Employee has Terminated Service, the Corporation will, subject to Article 18 herein, make payment of
the Settlement Amount as soon as reasonably possible following such Participant’s Terminated Service. For the purposes of this subsection, the Filing Date shall be the date that such Participant Terminated Service. 

 

	 	(ii)	in the event that a Participant who is a U.S. Person and a Key Employee has Terminated Service, the Corporation will, subject to Article 18 herein, make payment of the
Settlement Amount as soon as is reasonably possible following the date that is 6 months after the date that such Participant Terminated Service. For the purposes of this subsection, the Filing Date shall be the date which is 6 months after the date
that such Participant Terminated Service. In the event of death of such a Participant during the 6 month period following the date the Participant Terminated Service, the rules under Section 11.5(b)(ii) shall then apply.

  

	 	(iii)	in the event of the death of a Participant who is a U.S. Person, the Corporation will, subject to Article 18 herein, make payment of the Settlement Amount within two
months of the Participant’s death to or for the benefit of the legal representative of the deceased Participant. For the purposes of this subsection, the Filing Date shall be the date of the Participant’s death. 

  
 15 

	12.	TERM OF AWARDS 

 12.1 Term of Options
and Tandem SARS. Unless otherwise determined by the Compensation Committee, each Option and Tandem SAR granted pursuant to this Plan will, subject to the provisions of this Plan, expire automatically on the earlier of: 

 

	 	(a)	the date determined by the Compensation Committee and specified in the Award Agreement pursuant to which such Option and, if applicable, Tandem SAR is granted, provided
that such date may not be, subject to Article 18 later than the earlier of (A) the date which is the tenth anniversary of the date on which such Option and, if applicable, Tandem SAR is granted, and (B) the latest date permitted under the
applicable rules and regulations of all regulatory authorities to which the Corporation is subject, including the Stock Exchange; 

  

	 	(b)	in the event the Participant ceases to be an Eligible Person for any reason, other than the death of the Participant or the termination of the Participant for cause,
such period of time after the date on which the Participant ceases to be an Eligible Person as may be specified by the Compensation Committee or as specified in an agreement among the Participant and the Corporation, and in the absence of such
specification or agreement, will be deemed to be the date that is three months following the Participant ceasing to be an Eligible Person 

  

	 	(c)	in the event of the termination of the Participant as a director, officer, employee or Consultant of the Corporation or an Affiliate for cause, the date of such
termination; 

  

	 	(d)	in the event of the death of a Participant prior to: (A) the Participant ceasing to be an Eligible Person; or (B) the date which is the number of days
specified by the Compensation Committee pursuant to subparagraph (b) above from the date on which the Participant ceased to be an Eligible Person; the date which is one year after the date of death of such Participant or such other date as may
be specified by the Compensation Committee and which period will be specified in the Award Agreement with the Participant with respect to such Option ; and 

 

	 	(e)	notwithstanding the foregoing provisions of subparagraphs (b), (c) and (d) of this Section 12.1, the Compensation Committee may, subject Article 19
and to regulatory approval, at any time prior to expiry of an Option extend the period of time within which an Option may be exercised by a Participant who has ceased to be an Eligible Person, but such an extension shall not be granted beyond the
original expiry date of the Option as provided for in subparagraph (a) above. 

 12.2 Options and Tandem SARs Cease to
Vest. Notwithstanding the foregoing, except as expressly permitted by the Compensation Committee, all Options will cease to vest as at the date upon which the Participant ceases to be an Eligible Person. 

12.3 Accelerated Vesting of Options and Tandem SARs on Death. In the event of the death of the Participant prior to the Participant ceasing to be
an Eligible Person, all Options and Tandem SARs of such Participant shall become immediately vested. 
 12.4 Term of Restricted Stock
Units. Unless otherwise determined by the Compensation Committee: 
  

	 	(a)	 in the event a Participant ceases to be an Eligible Person due to death or retirement, any then outstanding Restricted Stock Units that have not become

  
 16 

	 	
vested and settled prior to the Participant ceasing to be an Eligible Person shall immediately vest and be settled as soon as reasonably practicable after the date that such Participant ceases to
be an Eligible Person; 

  

	 	(b)	in the event a Participant ceases to be an Eligible Person due to resignation, any then outstanding Restricted Stock Units that have not become vested and settled prior
to the Participant ceasing to be an Eligible Person shall immediately be forfeited and cancelled; and 

  

	 	(c)	in the event a Participant ceases to be an Eligible Person due to disability or termination without cause, any then outstanding Restricted Stock Units that have not
become vested and settled prior to the Participant ceasing to be an Eligible Person shall vest and be settled at the discretion of the Compensation Committee. 

 12.5 Termination of a Participant for Cause. Notwithstanding any other provision hereof or in any Award Agreement, in the case of a Participant’s termination for cause, any and all then
outstanding Awards granted to the Participant, whether or not vested, shall be immediately forfeited and cancelled, without any consideration therefore, and any and all rights of such Participant with respect to and arising from this Plan shall
terminate, as of the commencement of the date that notice of such termination is given, without regard to any period of reasonable notice or any salary continuance, unless otherwise determined by the Compensation Committee. 

 

	13.	CHANGE IN STATUS 

 13.1 A change in the
status, office, position or duties of a Participant from the status, office, position or duties held by such Participant on the date on which the Award was granted to such Participant will not result in the termination of the Award granted to such
Participant provided that such Participant remains a director, officer, employee or Consultant of the Corporation or an Affiliate. 
  

	14.	NON-TRANSFERABILITY OF AWARDS 

 14.1 Each
Award Agreement will provide that the Award granted thereunder is not transferable or assignable and may be exercised or settled, as the case may be, only by the Participant or, in the event of the death of the Participant or the appointment of a
committee or duly appointed attorney of the Participant or of the estate of the Participant on the grounds that the Participant is incapable, by reason of physical or mental infirmity, of managing their affairs, the Participant’s legal
representative or such committee or attorney, as the case may be (the “Legal Representative”). 

  
 17 

	15.	REPRESENTATIONS AND COVENANTS OF PARTICIPANTS 

 15.1 Each Award Agreement will contain representations and covenants of the Participant that: 
  

	 	(a)	the Participant is a director, officer, employee, or Consultant of the Corporation or an Affiliate or a person otherwise approved as an “Eligible Person”
under this Plan by the Compensation Committee; 

  

	 	(b)	the Participant has not been induced to enter into such Award Agreement by the expectation of employment or continued employment with the Corporation or an Affiliate;

  

	 	(c)	the Participant is aware that the grant of the Award and the issuance by the Corporation of Common Shares thereunder are exempt from the obligation under applicable
securities laws to file a prospectus or other registration document qualifying the distribution of the Awards or the Common Shares to be distributed thereunder under any applicable securities laws; 

 

	 	(d)	upon each exercise or settlement of an Award, the Participant, or the Legal Representative of the Participant, as the case may be, will, if requested by the
Corporation, represent and agree in writing that the person is, or the Participant was, a director, officer, employee or Consultant of the Corporation or an Affiliate or a person otherwise approved as an “Eligible Person” under this Plan
by the Compensation Committee and has not been induced to purchase the Common Shares by expectation of employment or continued employment with the Corporation or an Affiliate, and that such person is not aware of any commission or other remuneration
having been paid or given to others in respect of the trade in the Common Shares; and 

  

	 	(e)	if the Participant or the Legal Representative of the Participant exercises or settles the Award, the Participant or the Legal Representative, as the case may be, will
prior to and upon any sale or disposition of any Common Shares received pursuant to the exercise or settlement of the Award, comply with all applicable securities laws and all applicable rules and regulations of all regulatory authorities to which
the Corporation is subject, including the Stock Exchange, and will not offer, sell or deliver any of such Common Shares, directly or indirectly, in the United States or to any citizen or resident of, or any Corporation, partnership or other entity
created or organized in or under the laws of, the United States, or any estate or trust the income of which is subject to United States federal income taxation regardless of its source, except in compliance with the securities laws of the United
States. 

  

	16.	PROVISIONS RELATED TO SHARE ISSUANCES 

16.1 Each Award Agreement will contain such provisions as in the opinion of the Compensation Committee are required to ensure that no Common Shares are
issued on the exercise or settlement of an Award unless the Compensation Committee is satisfied that the issuance of such Common Shares will be exempt from all registration or qualification requirements of applicable securities laws and will be
permitted under the applicable rules and regulations of all regulatory authorities to which the Corporation is subject, including the Stock Exchange. In particular, if required by any regulatory authority to which the Corporation is

  
 18 

 
subject, including the Stock Exchange, an Award Agreement may provide that shareholder approval to the grant of an Award must be obtained prior to the exercise or settlement of the Award or to
the amendment of the Award Agreement. 
  

	17.	WITHHOLDING TAX 

 17.1 The Participant
will be solely responsible for paying any applicable withholding taxes arising from the grant, vesting, exercise or settlement of any Award and payment is to be made in a manner satisfactory to the Corporation. Notwithstanding the foregoing, the
Corporation will have the right to withhold from any Award or any Common Shares issuable pursuant to an Award or from any cash amounts otherwise due or to become due from the Corporation to the Participant, an amount equal to any such taxes.

  

	18.	EXERCISE AND SETTLEMENT OF AWARDS DURING BLACKOUT PERIODS 

 18.1 Adjustment for Exercise of Awards during Blackout Periods. Where the expiry date of an Option or Tandem SAR occurs during a Blackout Period or within ten Non Blackout Trading Days following
the end of a Blackout Period, the expiry date for such Option or Tandem SAR shall be the date which is ten Non-Blackout Trading Days following the end of such Blackout Period. 
 18.2 Extension for Settlement during Blackout Periods. Where the date for the settlement of Restricted Stock Units or the payment of a Settlement Amount occurs during a Blackout Period, the
Corporation shall make such settlement or pay such Settlement Amount to the holder of such an Award within ten Non Blackout Trading Days following the end of such Blackout Period. 

 

	19.	SUSPENSION, AMENDMENT OR TERMINATION OF PLAN 

 19.1 Suspension, Amendment or Termination of Plan. This Plan will terminate on the tenth anniversary of the Effective Date. The Compensation Committee will have the right at any time to suspend,
amend or terminate this Plan and, subject to Section 19.2, may: 
  

	 	(a)	with approval of shareholders of the Corporation by ordinary resolution make any amendment to any Award Agreement or the Plan; and 

 

	 	(b)	without approval of shareholders of the Corporation make the following amendments to any Award Agreement or the Plan: 

 

	 	(i)	amendments of a clerical nature, including but not limited to the correction of grammatical or typographical errors or clarification of terms; 

 

	 	(ii)	amendments to reflect any requirements of any regulatory authorities to which the Corporation is subject, including the Stock Exchange; 

 

	 	(iii)	subject to the terms and conditions of the Plan, amendments to vesting provisions of Award Agreements; 

  
 19 

	 	(iv)	extend the term of Options and Tandem SARs held by non-Insiders of the Corporation; 

 

	 	(v)	reduce the Exercise Price per Common Share under any Option held by non-Insiders of the Corporation or replace such Option with a lower Exercise Price per Common Share
under such replacement Option; and 

  

	 	(vi)	amendments which provide cashless exercise features to an Option that require the full deduction of the number of underlying Common Shares from the total number of
Common Shares subject to the Plan. 

 Notwithstanding the foregoing, all procedures and necessary approvals required under the
applicable rules and regulations of all regulatory authorities to which the Corporation is subject shall be complied with and obtained in connection with any such suspension, termination or amendment to the Plan or amendments to any Award Agreement.

 19.2 Limitations. In exercising its rights pursuant to Section 19.1, the Compensation Committee will not have the right to:

  

	 	(a)	without the prior approval of shareholders and except as permitted pursuant to Article 20, (i) extend the term of an Option or Tandem SAR held by an Insider of the
Corporation; or (ii) reduce the Exercise Price per Common Share under any Option held by an Insider of the Corporation; or (iii) cancel any Option held by an Insider and replace such Option within three months; 

 

	 	(b)	affect in a manner that is adverse or prejudicial to, or that impairs, the benefits and rights of any Participant under any Award previously granted under this Plan
(except as permitted pursuant to Article 20 and except for the purpose of complying with applicable securities laws or the bylaws, rules and regulations of any regulatory authority to which the Corporation is subject, including the Stock Exchange);

  

	 	(c)	decrease the number of Common Shares which may be purchased pursuant to any Option (except as permitted pursuant to Article 20) without the consent of such Participant;

  

	 	(d)	set the Exercise Price of any Option below the Fair Market Value of such Option on the date of grant; 

 

	 	(e)	increase the Exercise Price at which Common Shares may be purchased pursuant to any Option (except as permitted pursuant to Article 20) without the consent of such
Participant; 

  

	 	(f)	extend the term of any Option beyond a period of ten years or the latest date permitted under the applicable rules and regulations of all regulatory authorities to
which the Corporation is subject, including the Stock Exchange; 

  

	 	(g)	grant any Award if this Plan is suspended or has been terminated; or 

  
 20 

	 	(h)	change or adjust any outstanding U.S. Qualified Incentive Stock Option without the consent of the Participant if such change or adjustment would constitute a
“modification” that would cause such U.S. Qualified Incentive Stock Option to fail to continue to qualify as a U.S. Qualified Incentive Stock Option. 

 19.3 Powers of Compensation Committee Survive Termination. The full powers of the Compensation Committee as provided for in this Plan will survive the termination of this Plan until all Awards have
been exercised or settled in full or have otherwise expired. 
  

	20.	ADJUSTMENTS 

 20.1 Adjustments.
Appropriate adjustments in the number of Common Shares subject to this Plan, as regards Awards granted or to be granted, in the Option Exercise Price of an Option, in the number of Common Shares to be issued or cash payments to be made in
respect of the settlement of any Award, or any other matter of will be conclusively determined by the Compensation Committee to give effect to adjustments in the number of Common Shares resulting from subdivisions, consolidations, substitutions, or
reclassifications of the Common Shares, the payment of stock dividends by the Corporation (other than dividends in the ordinary course) or other relevant changes in the capital of the Corporation or from a proposed merger, amalgamation or other
corporate arrangement or reorganization involving the exchange or replacement of Common Shares of the Corporation for those in another corporation. Any dispute that arises at any time with respect to any such adjustment will be conclusively
determined by the Compensation Committee, and any such determination will be binding on the Corporation, the Participant and all other affected parties. 
 20.2 Merger and Acquisition Transaction. In the event of a Merger and Acquisition Transaction or proposed Merger and Acquisition Transaction, the Compensation Committee, at its option, may do any
of the following: 
  

	 	(a)	the Compensation Committee may, in a fair and equitable manner, determine the manner in which all unexercised Options or unsettled Awards granted under this Plan will
be treated including, without limitation, requiring the acceleration of the time for the exercise or settlement of Awards by the Participants, the time for the fulfilment of any conditions or restrictions on such exercise or settlement, and the time
for the expiry of such rights; or 

  

	 	(b)	the Compensation Committee or any corporation which is or would be the successor to the Corporation or which may issue securities in exchange for Common Shares upon the
Merger and Acquisition Transaction becoming effective may offer any Participant the opportunity to obtain a new or replacement awards over any securities into which the Common Shares are changed or are convertible or exchangeable, on a basis
proportionate to the number of Common Shares under Award, including Exercise Price, as applicable (and otherwise substantially upon the terms of the Award being replaced, or upon terms no less favourable to the Participant) including, without
limitation, the periods during which the Award may be exercised or settled and expiry dates of such Awards; and in such event, the Participant shall, if he accepts such offer, be deemed to have released his Award over the Common Shares and such
Award shall be deemed to have lapsed and be cancelled; or 

  
 21 

	 	(c)	the Compensation Committee may commute for or into any other security or any other property or cash, any Award that is still capable of being exercised or settled, upon
giving to the Participant to whom such Award has been granted at least 30 days written notice of its intention to commute such Award, and during such period of notice, the Award, to the extent it has not been exercised or settled, may be exercised
or settled by the Participant without regard to any vesting conditions attached thereto; and on the expiry of such period of notice, the unexercised or unsettled portion of the Award shall lapse and be cancelled. 

Section 20.1 and subsections (a), (b) and (c) of this Section 20.2 are intended to be permissive and may be utilized independently or
successively in combination or otherwise, and nothing therein contained shall be construed as limiting or affecting the ability of the Compensation Committee to deal with Awards in any other manner. All determinations by the Compensation Committee
under this Section will be final, binding and conclusive for all purposes. 
 20.3 Limitations. The grant of Awards under this Plan will
in no way affect the Corporation’s right to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, amalgamate, reorganize, consolidate, dissolve, liquidate or sell or transfer all or any part of its
business or assets or engage in any like transaction. 
 20.4 No Fractional Shares. No adjustment or substitution provided for in this
Article 20 will require the Corporation to issue a fractional share in respect of any Award and the total substitution or adjustment with respect to each Award will be limited accordingly. 

 

	21.	GENERAL 

 21.1 No Rights as
Shareholder. Nothing herein or otherwise shall be construed so as to confer on any Participant any rights as a shareholder of the Corporation with respect to any Common Shares reserved for the purpose of any Award. 

21.2 No Effect on Employment. Nothing in this Plan or any Award Agreement will confer upon any Participant any right to continue in the employ of
or under contract with the Corporation or an Affiliate or affect in any way the right of the Corporation or any such Affiliate to terminate his or her employment at any time or terminate his or her consulting contract; nor will anything in this Plan
or any Award Agreement be deemed or construed to constitute an agreement, or an expression of intent, on the part of the Corporation or any such Affiliate to extend the employment of any Participant beyond the time that he or she would normally be
retired pursuant to the provisions of any present or future retirement plan of the Corporation or an Affiliate or any present or future retirement policy of the Corporation or an Affiliate, or beyond the time at which he or she would otherwise be
retired pursuant to the provisions of any contract of employment with the Corporation or an Affiliate. Neither any period of notice nor any payment in lieu thereof upon termination of employment shall be considered as extending the period of
employment for the purposes of the Plan. 

  
 22 

 21.3 No Fettering of Directors’ Discretion. Nothing contained in this Plan will restrict or
limit or be deemed to restrict or limit the right or power of the Board of Directors in connection with any allotment and issuance of Common Shares which are not allotted and issued under this Plan including, without limitation, with respect to
other compensation arrangements. 
 21.4 Applicable Law. The Plan and any Award Agreement granted hereunder will be governed, construed
and administered in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein. 
 21.5
Interpretation. References herein to any gender include all genders and to the plural includes the singular and vice versa. The division of this Plan into Sections and Articles and the insertion of headings are for convenience of reference only
and will not affect the construction or interpretation of this Plan. 
 21.6 Reference. This Plan may be referred to as the “Tekmira
2011 Share Compensation Plan”. 

  
 23Tekmira Share Option Plan

 Exhibit 4.2 
 TEKMIRA PHARMACEUTICALS CORPORATION 
 SHARE OPTION PLAN 

ARTICLE 1 

PURPOSE AND INTERPRETATION 
 Purpose 
 1.1 The purpose of the plan will be to advance the interests of the Company by
encouraging equity participation in the Company through the acquisition of Common Shares of the Company. 
 Definitions 

1.2 In the Plan 

Associate has the meaning assigned by the Securities Act; 
 Blackout Period means the period during which the relevant Optionee is prohibited from exercising an Option due to trading restrictions imposed by the Company in accordance with its securities
trading policies governing trades by Directors, Officers and Employees in the Company’s securities; 
 Board means
the board of directors of the Company; 
 Change of Control means the acquisition by any person or by any person and its
joint actors (as such term is defined in the Securities Act), whether directly or indirectly, of voting securities (as such term is defined in the Securities Act) of the Company which, when added to all other voting securities of the Company at the
time held by such person and its joint actors, totals for the first time not less than 35% of the outstanding voting securities of the Company; 
 Code means the U.S. Internal Revenue Code of 1986, as amended; 
 Code
Stock Option means an Option to purchase Common Shares with the intention that such Option qualify as an “incentive stock option” as that term is defined in Section 422 of the Code; 

Common Shares means common shares without par value in the capital of the Company; 

Company means Tekmira Pharmaceuticals Corporation; 
 Director means a director of the Company or any of its subsidiaries; 

Employee means an individual who is an employee of the Company or of a subsidiary of the Company; 

 Expiry Date means the day on which an Option lapses as specified in the Option
Commitment therefor; 
 Insider means 
  

	 	(a)	an insider as defined in the Securities Act, other than a person who fits within that definition solely by virtue of being a director or senior officer of a subsidiary
of the Company, and 

  

	 	(b)	an Associate of any person who is an insider by virtue of §(a); 

 Officer means an individual who is an officer of the Company; 

Option means the right to purchase Common Shares granted hereunder to a Service Provider; 

Option Commitment means the notice of grant of an Option delivered by the Company hereunder to a Service Provider and substantially
in the form of Schedule “B” or “C” hereto; 
 Option Effective Date for an Option means the date of
grant thereof; 
 Optioned Shares means Common Shares subject to an Option; 

Optionee means an individual to whom an Option is granted by the Company under the Plan; 

Outstanding Issue means the number of Common Shares outstanding on a non-diluted basis, excluding shares issued pursuant to share
compensation arrangements over the preceding one-year period; 
 Plan means the Share Option Plan, the terms of which are
set out herein; 
 Regulatory Approval means the approval of the Toronto Stock Exchange and any other securities
regulatory agency that may have jurisdiction in the circumstances; 
 Reserved for Issuance refers to Common Shares that
may be issued in the future upon the exercise of stock options which have been granted; 
 Retired means 

 

	 	(a)	with respect to an Officer or Employee, the retirement of the Officer or Employee within the meaning of the Canada Pension Plan, after attainment of age 65, and

  

	 	(b)	with respect to a Director, cessation of office as a Director, other than by reason of death, after attainment of age 70; 

  
 - 2 -

 Securities Act means the Securities Act, R.S.B.C. 1996, c. 418, as amended from time
to time; 
 Service Provider means 
  

	 	(a)	an employee, officer, or director of the Company or of any of its subsidiaries, and 

 

	 	(b)	subject to compliance with applicable securities laws, any other person or company engaged to provide directly or indirectly ongoing management consulting and other
research or collaboration services to the Company or any of its subsidiaries; 

 Share Compensation
Arrangement means the Plan described herein and any other stock option, stock option plan, employee stock purchase plan or any other compensation or incentive mechanism involving the issuance or potential issuance of shares to one or more
Service Providers, including a share purchase from treasury which is financially assisted by the Company by way of a loan, guaranty or otherwise; 
 Subscription Price means the amount payable per Common Share on the exercise of an Option, as determined in accordance with §3.1; 

Subsidiary means subsidiary as determined under the Business Corporations Act (British Columbia); 

Take Over Bid has the meaning assigned to that term in the Securities Act but excludes an exempt take over bid as determined under
the Securities Act. 
 ARTICLE 2 
 SHARE OPTION PLAN 
 Establishment of Share Option Plan 

2.1 There is hereby established a Share Option Plan to recognize contributions made by Service Providers and to create an incentive for their continuing
relationship with the Company and its subsidiaries. Those share options or other share compensation granted by the Company prior to the adoption of this Plan are not included hereunder or affected hereby. 

Eligibility 
 2.2 Options may be granted
hereunder to all Service Providers. 
 Incorporation of Terms of Share Option Plan 

2.3 Subject to specific variations approved by the Board, all terms and conditions set out herein will be incorporated into and form part of an Option
granted hereunder. 

  
 - 3 -

 Maximum Shares Reserved 
 2.4 The maximum aggregate number of Common Shares that are Reserved for Issuance under the Plan is 1,369,255 Common Shares. 
 2.5 In no event may the number of Common Shares Reserved for Issuance to any one person pursuant to an Option exceed 5% of the Outstanding Issue. 
 2.6 The maximum aggregate number of Common Shares that, under all Share Compensation Arrangements, 
  

	 	(a)	may be Reserved for Issuance to Insiders of the Company, may not exceed 10% of the Outstanding Issue at that time, 

 

	 	(b)	may be issued to Insiders within a one-year period, may not exceed 10% of the Outstanding Issue at that time, 

 

	 	(c)	may be issued to any one Insider and his or her Associates within a one-year period, may not exceed 5% of the Outstanding Issue, and 

 

	 	(d)	may be Reserved for Issuance to non-employee Directors, may not exceed 2% of the Outstanding Issue at that time. 

2.7 For the purposes of §2.6, 
  

	 	(a)	Common Shares issuable to an Insider pursuant to a stock option or other entitlement that was granted before the person became an Insider will be excluded in
determining the number of Common Shares issuable to Insiders, and 

  

	 	(b)	Common Shares issuable to a Director pursuant to a stock option or other entitlement that was granted 

 

	 	(i)	before the person became a Director, or 

  

	 	(ii)	while the Director was also an Officer, 

 will be excluded in determining the number of Common Shares issuable to Directors. 
 Shares Not
Acquired 
 2.8 Any Common Shares not acquired under an Option granted under the Plan which has expired or been cancelled or terminated may
be made the subject of a further Option pursuant to the provisions of the Plan. 
 Powers of the Board 

2.9 The Board will be responsible for the general administration of the Plan and the proper execution of its provisions, the interpretation of the Plan
and the determination of all questions arising hereunder. Without limiting the generality of the foregoing, the Board has the power to 

  
 - 4 -

	 	(a)	allot Common Shares for issuance in connection with Options granted under the Plan, 

 

	 	(b)	grant Options hereunder, 

  

	 	(c)	subject to §§4.5, 4.6 and 4.7 and subject to Regulatory Approval or any shareholder approval required under law, amend, suspend, terminate or discontinue the
Plan, or revoke or alter any action taken in connection therewith, except that no amendment or suspension of the Plan will, without the written consent of the affected Optionees, alter or impair any Option granted under the Plan, and

  

	 	(d)	delegate all or such portion of its powers hereunder as it may determine to one or more committees of the Board, either indefinitely or for such period of time as it
may specify, and thereafter each such committee may exercise the powers and discharge the duties of the Board in respect of the Plan so delegated to the same extent as the Board is hereby authorized so to do. 

Adjustments 
 2.10 The number of Common
Shares subject to an Option will be subject to adjustment in the events and in the manner following: 
  

	 	(a)	in the event that the Board determines that any dividend or other distribution (whether in the form of cash, Common Shares, other securities or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, combination, issuance of warrants or other rights to purchase Common Shares or other securities of the Company to all holders of common shares pro rata
whether as a dividend or otherwise or other similar corporate transaction or event affects the Common Shares such that an adjustment is determined by the Board to be appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the Board will, in such manner as it may deem equitable, adjust any or all of: 

  

	 	(i)	the number and type of Common Shares (or other securities or other property) that thereafter may be made the subject of Options, 

 

	 	(ii)	the number and type of Common Shares (or other securities or other property) subject to outstanding Options, and 

 

	 	(iii)	the purchase or exercise price with respect to any Option; 

 provided, however, that the number of Common Shares covered by any Option or to which such Option relates will always be a whole number, 

  
 - 5 -

	 	(b)	an adjustment will take effect at the time of the event giving rise to the adjustment, and the adjustments provided for in this Section are cumulative,

  

	 	(c)	the Company will not be required to issue fractional shares in satisfaction of its obligations hereunder. Any fractional interest in a Common Share that would, except
for the provisions of this §2.10(c), be deliverable upon the exercise of an Option will be cancelled and not be deliverable by the Company, and 

  

	 	(d)	if any questions arise at any time with respect to the Option price or number of Common Shares deliverable upon exercise of an Option in any of the events set out in
this §2.10(d), such questions will be conclusively determined by the Company’s Auditors, or, if they decline to so act, any other firm of Chartered Accountants, in Vancouver, British Columbia that the Company may designate and who will
have access to all appropriate records and such determination will be binding upon the Company and all Optionees. 

ARTICLE 3 

SHARE OPTIONS 

Subscription Price 
 3.1 The Subscription
Price per Optioned Share will be the greater of: 
  

	 	(a)	the closing price for the Common Shares on the Toronto Stock Exchange on the last trading day before the date of grant of the Option; 

 

	 	(b)	if the Board determines that the Subscription Price determined in §(a) is not a representative price, the weighted average of the trading prices for the Common
Shares on the five trading days before the date of grant of the Option; 

  

	 	(c)	if not listed on the Toronto Stock Exchange then as calculated in §(a) and §(b) above by reference to the price on any other stock exchange on which the
Common Shares are listed (if more than one, then using the exchange on which a majority of Common Shares are traded); or 

  

	 	(d)	if the Common Shares are not listed on a stock exchange then the price determined by the directors using good faith discretion. 

Term of Option 
 3.2 Except as described
in this §3.2, the term of an Option will be such period after the Option Effective Date of the Option, not exceeding 10 years, as the Board determines at the time of granting of the Option. If the Expiry Date for an Option occurs during a
Blackout Period applicable to the relevant Optionee, or within five business days after the expiry of a Blackout Period applicable to the relevant Optionee, then the Expiry Date for that Option will be the date that is the tenth business day after
the expiry date of the Blackout Period. 

  
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 Vesting of Option Rights 
 3.3 Options granted at a particular time may be exercised only 
  

	 	(a)	after the Option Commitment is received by the Optionee from the Chief Financial Officer of the Company, and 

 

	 	(b)	so that the total number of such Options that are and have been exercised does not at any time exceed that proportion of the number of Options so granted that

 (i) the number of calendar months that have elapsed after the end of the month in which such Options were
granted 
 is of 
 (ii) 48. 
 Variation of Vesting Periods 

3.4 If the Board determines with respect to an Optionee that it is desirable to grant to the Optionee an Option for which the vesting of rights should be
other than as provided in §3.3 or that it is desirable to alter the vesting periods of any particular Option, it may fix the vesting of that Option before or after its grant in such manner as it determines in its discretion. 

3.5 In the event of a Change of Control or Take Over Bid, in its discretion the Board may provide in the case of a particular Optionee that the Options
held by that Optionee may be exercised by the Optionee in full or in part at any time before the applicable vesting period for those Options. 

Limitation on Right to Exercise 
 3.6 No
Option may be exercised after the Optionee, if a Director has ceased to be a Director or if an Employee or other Service Provider has left the employ or service of the Company, except as follows: 

 

	 	(a)	in the case of death of an Optionee, all unvested rights of the Optionee under the Option will be deemed to have become fully vested immediately before the time of such
Optionee’s death, and the personal representatives of the Optionee will be entitled to exercise the Option at any time by the earlier of (i) the Expiry Date of the Option, and (ii) the first anniversary of the date on which the
Optionee died; 

  

	 	(b)	in the case of an Optionee retiring, all unvested option rights will be deemed to have become fully vested immediately before the time that the Optionee Retired, and
the Options held by the Optionee will be exercisable by the earlier of (i) the Expiry Date of the Options, or (ii) the first anniversary of the date on which the Optionee Retired; 

  
 - 7 -

	 	(c)	in the case of an Optionee becoming unable to work due to illness, injury or disability whether or not such Optionee is entitled to or in receipt of disability
benefits, all option rights will vest, and the Options held by the Optionee will be exercisable, on the same terms as if the Optionee had continued to be a Service Provider; 

 

	 	(d)	in the case of an Optionee resigning his office, or terminating his employment or service, or being dismissed without cause, the option rights that have accrued to such
Optionee up to the time of termination will be exercisable within the 30 days after the date of termination; and 

  

	 	(e)	in the case of an Optionee being dismissed from office, employment or service for cause, the Option and all option rights that had accrued to the Optionee to the date
of termination will immediately terminate; 

 but provided that in no event may the term of the Option exceed 10 years.
Notwithstanding the provisions of §(d), in its discretion and subject to the receipt of any required Regulatory Approval, the Board may extend the time period for exercise of an Option in the circumstances set out in §(d) and may also
permit the option to be exercised in respect of any Options that vest during any agreed upon severance period. 
 Non-Assignable

 3.7 Subject to §3.6(a) or as permitted by applicable regulatory authorities in connection with a transfer to a registered retirement
savings plan or registered retirement income fund established by or for the Optionee or under which the Optionee is the beneficiary, an Option may be exercisable only by the Optionee to whom it is granted and will not be assignable. 

Eligible Employees 
 3.8 Individuals who
are not Employees of the Company or one of its subsidiary corporations may not be granted Code Stock Options. For purposes of this §3.8, “subsidiary corporation” will have the meaning attributed to that term for purposes of
Section 422 of the Code. 
 Option Commitment 
 3.9 Upon grant of an Option hereunder, the Chief Financial Officer of the Company will deliver to the Service Provider an Option Commitment detailing the terms of his Option and upon such delivery the
Service Provider will be an Optionee in the Plan and have the right to purchase the Optioned Shares at the Subscription Price set out therein. 

Manner of Exercise 
 3.10 An Optionee who
wishes to exercise his Option may do so by delivering 
  

	 	(a)	a written notice to the Company specifying the number of Optioned Shares being acquired pursuant to the Option, and 

 

	 	(b)	cash or a certified cheque payable to the Company for the aggregate Subscription Price for the Optioned Shares being acquired. 

  
 - 8 -

 Delivery of Certificate 
 3.11 Not later than five days after receipt of the notice of exercise and payment in full for the Optioned Shares being acquired, the Company will direct its transfer agent to issue a certificate to the
Optionee for the appropriate number of Optioned Shares. 
 ARTICLE 4 

GENERAL 

Transferability 
 4.1 The benefits,
rights and options accruing to any Optionee under the Plan will not be transferable by an Optionee other than in the manner provided for in the Plan. During the lifetime of an Optionee, all benefits, rights and options may only be exercised by the
Optionee or by his guardian or legal representative. 
 Employment and Services 
 4.2 Nothing contained in the Plan will confer upon any Optionee any right with respect to employment or provision of services with the Company or a Subsidiary, or interfere in any way with the right of
the Company or a Subsidiary to terminate the Optionee’s employment or service at any time. Participation in the Plan by an Optionee will be voluntary. 
 No Representation or Warranty 
 4.3 The Company makes no representation or warranty as to
the future market value of Common Shares issued in accordance with the provisions of the Plan. 
 Interpretation 

4.4 The Plan will be governed and construed in accordance with the laws of the Province of British Columbia. 

Amendment of the Plan 
 4.5 Subject to
any specific limitations contained in the Plan, the Board reserves the right, in its absolute discretion, to at any time amend, modify or terminate the Plan. 
 4.6 Notwithstanding §4.5, the Board may not, without approval of the holders of a majority of the issued and outstanding equity securities of the Company present and voting in person or by proxy at a
meeting of holders of such securities, amend the Plan or an Option to: 
  

	 	(a)	increase the number of Common Shares reserved for issuance under the Plan; 

  
 - 9 -

	 	(b)	make any amendment that would reduce the Subscription Price of an outstanding Option (including a cancellation and reissue of an Option at a reduced Subscription
Price); 

  

	 	(c)	amend or delete §3.2 to extend the term of any Option beyond the Expiry Date of the Option or, except as already contemplated under §3.2, allow for the Expiry
Date of an Option to be greater than 10 years; 

  

	 	(d)	permit assignments, or exercises other than by the Optionee, of Options beyond that contemplated by §3.6, except for an amendment that would permit the assignment
of an Option for estate planning or estate settlement purposes; 

  

	 	(e)	amend the Plan to provide for other types of compensation through equity issuance, unless the change to the Plan or an Option results from the application of
§2.10; and 

  

	 	(f)	amend or delete §2.6(d). 

 4.7 Without
limiting the generality of §4.5, the Board may make the following amendments to the Plan without obtaining shareholder approval: 
  

	 	(a)	amendments to the terms and conditions of the Plan necessary to ensure that the Plan complies with the applicable regulatory requirements, including without limitation
the rules of the Toronto Stock Exchange or any national securities exchange or system on which the Common Shares are then listed or reported, or by any regulatory body having jurisdiction with respect thereto; 

 

	 	(b)	making adjustments to outstanding Options in the event of certain corporate transactions; 

 

	 	(c)	the addition of a cashless exercise feature, payable in cash or securities, whether or not such feature provides for a full deduction of the number of underlying
securities from the Plan reserve; 

  

	 	(d)	a change to the termination provisions of a security or the Plan which does not entail an extension beyond the original Expiry Date; 

 

	 	(e)	amendments to the provisions of the Plan respecting administration of the Plan and eligibility for participation under the Plan; 

 

	 	(f)	amendments to the provisions of the Plan respecting the terms and conditions on which options may be granted pursuant to the Plan, including the provisions relating to
the Subscription Price, the option period, and the vesting schedule; and 

  

	 	(g)	amendments to the Plan that are of a “housekeeping nature”. 

 4.8 In addition, in connection with Code Stock Options granted under the Plan, the Board will obtain shareholder approval of a Plan amendment to the extent required by Section

  
 - 10 -

 
422 of the Code, and any change or adjustment to an outstanding Code Stock Option will not, without the consent of the Optionee, be made in such a manner so as to constitute a
“modification” that would cause such Incentive Stock Option to fail to qualify as an Incentive Stock Option. 
 No Shareholder
Rights 
 4.9 Neither an Optionee nor the Optionee’s legal representative will be, or have any of the rights and privileges of, a
shareholder of the Company with respect to any Common Shares issuable to such Optionee upon the exercise or payment of any Option, in whole or in part, unless and until such Common Shares have been issued in the name of such Optionee or such
Optionee’s legal representative without restrictions thereto. 
 No Rights to Options 

4.10 No Service Provider, Optionee or other Person will have any claim to be granted any Option under the Plan, and there is no obligation for uniformity
of treatment of Service Providers, Optionees or holders or beneficiaries of Options under the Plan. The terms and conditions of Options need not be the same with respect to any Optionee or with respect to different Optionees. 

Compliance with Rules and Laws 
 4.11 The
Company will not be required to issue any Common Shares under the Plan unless such issuance is in compliance with all applicable laws, regulations, rules, orders of governmental or regulatory authorities and the requirements of any stock exchange
upon which Common Shares of the Company are listed. The Company will not in any event be obligated to take any action to comply with any such laws, regulations, rules, orders or requirements. 
 Adoption and Amendment of Plan 
 4.12 This Plan was adopted on April 18, 2007 and
amended on June 20, 2007, May 28, 2008 and May 12, 2009. 
 ARTICLE 5 

RESIDENTS OF CALIFORNIA 

5.1 Persons who are residents of the State of California will be subject to the additional terms and conditions set forth on Schedule “A” to
the Plan. 

  
 - 11 -

 SCHEDULE “A” 

PROVISIONS APPLICABLE TO RESIDENTS OF CALIFORNIA 
 This schedule “A” will have application only to optionees who are residents of the State of California on the date of grant of a stock option and only so long as the holder of such stock option
remains a resident of the State of California. Notwithstanding any provision contained in the Plan to the contrary, the following terms and conditions will apply to any options granted under the Plan to residents of California, to the extent
stated above and required by applicable law: (Scheme D) 
 1. Stock options will have an exercise price which is not less than 100%
of the fair value of the stock at the time the option is granted, as determined by the Board, except that the exercise price will be 110% of the fair value in the case of any person who owns stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or its parent or subsidiary corporations. 
 2. To the extent required by applicable law,
options will become exercisable at the rate of at least 20% per year over five years from the date the option is granted. However, in the case of an option granted to officers, directors or consultants of the Company of its parent or subsidiary
corporations, the option may become fully exercisable, subject to reasonable restrictions such as continued employment, at any time or during any period established by the Company. 
 3. Unless employment is terminated for cause as defined by applicable law, the terms of the Plan or option grant or contract of employment, the right to exercise an option in the event of termination of
employment, to the extent that the optionee is otherwise entitled to exercise on the date employment terminates, will be: 
  

	 	(a)	six months from the date of termination if termination was caused by death or disability; and 

 

	 	(b)	at least 30 days from the date of termination if termination was caused by other than death or disability; 

but in no event will be later than six months from the date of termination as provided in §3.4 of the Plan. 

4. No option will be granted to a resident of California more than ten years after the earlier of the date of adoption of the Plan and the date the plan
is approved by the shareholders. 
 5. Shareholder will approve the Plan within 12 months before or after the date the Plan is adopted. Any
option exercised before shareholder approval is obtained must be rescinded if shareholder approval is not obtained within 12 months before or after the Plan is adopted. Such shares will not be counted in determining whether such approval is
obtained. 

 6. The Company will provide annual financial statements of the Company is each California resident holding
an outstanding option under the Plan as required by Section 260.140.46 of Title 10, California Code of Regulations. 

  
 - 2 -

 SCHEDULE “B” 

SHARE OPTION PLAN 
 OPTION COMMITMENT 
 Notice is hereby given that, effective this
             day of                     , 20    
(the “Effective Date”) Tekmira Pharmaceuticals Corporation (the “Company”) has granted to             , an Option to acquire
             Common Shares (“Optioned Shares”) up to 5:00 p.m. Vancouver Time on the              day of
            , 20     (the “Expiry Date”) at a Subscription Price of
Cdn. $             per share. 
 Optioned Shares may be acquired as
follows: 
  

			
	—	  	IN ACCORDANCE WITH THE VESTING PROVISIONS SET OUT IN THE PLAN
		
	or	  	
		
	—	  	AS FOLLOWS

 The grant of the Option evidenced hereby is made subject to the terms and conditions of the Company’s Share Option
Plan, the terms and conditions of which are hereby incorporated herein. 
 To exercise your Option, deliver a written notice specifying the
number of Optioned Shares you wish to acquire, together with cash or a certified cheque payable to the Company for the aggregate Subscription Price, to the Company. A certificate for the Optioned Shares so acquired will be issued by the transfer
agent as soon as practicable thereafter. 
 TEKMIRA PHARMACEUTICALS CORPORATION 

 

	
	  

	Chief Financial Officer

 SCHEDULE “C” 

SHARE OPTION PLAN 
 OPTION COMMITMENT 
 CODE STOCK OPTIONS 

Notice is hereby given that, effective this              day of
                    , 20     (the “Effective Date”) Tekmira Pharmaceuticals Corporation (the
“Company”) has granted to             , a Code Stock Option to acquire             Common Shares
(“Optioned Shares”) up to 5:00 p.m. Vancouver Time on the              day of
                , 20     (the “Expiry Date”) at a Subscription Price of
Cdn. $              per share. 
 The grant of the Option evidenced
hereby is made subject to the terms and conditions of the Company’s Share Option Plan (the “Plan”), the terms and conditions of which are hereby incorporated herein. If the Plan has not been or is not approved by the shareholders of
the Company within 12 months before or after the adoption of the Plan, this Option will be invalid as a Code Stock Option. 
  

			
	 Vesting:
	  	Optioned Shares may be acquired as follows:
		
	 —
	  	IN ACCORDANCE WITH THE VESTING PROVISIONS SET OUT IN THE PLAN
		
	 or
	  	
		
	 —
	  	AS FOLLOWS

 Term 

The term of this Option is              years from the date of grant, unless sooner
terminated. 
 ISO Qualification 

To the extent that the aggregate Subscription Price of the shares with respect to which this Option is exercisable for the first time by you during any
calendar year (under this Option and all other Code Stock Options you hold) exceeds $100,000, the excess portion will be treated as an Option which does not qualify as a Code Stock Option unless the Internal Revenue Service changes the rules and
regulations governing the $100,000 limit for incentive stock options. In the event the Optionee holds two or more such Options that become exercisable for the first time in the same calendar year, such limitation will be applied on the basis of the
order in which such Options are granted. 

 Termination 
 Unless otherwise determined by the Board in its discretion, this Option will terminate immediately upon termination for cause or 30 days after cessation of employment with the Company or a related
corporation, but in each case not later than the remaining term of this Option. Unless the Board determines otherwise, this Option will also terminate upon the earlier of 6 months after death or the expiration of the remaining term of this Option.
However, to qualify for the beneficial tax treatment given Code Stock Options, this Option must in all cases be exercised within three months after termination of employment for reasons other than death or total disability and one year after
termination of employment due to total disability and before the expiration date by the personal representatives, heirs or legatees of the deceased Optionee in the case of termination due to death. 

Employment will be deemed to not continue beyond the first 90 days of a leave of absence unless the Optionee’s re-employment rights are guaranteed
by statute or contract. For purposes of this section, “total disability” means a mental or physical impairment of the Optionee that is expected to result in death or that has lasted or is expected to last for a continuous period of 12
months or more and that causes the Optionee to be unable, in the Company’s opinion, to perform his or her duties for the company and to be engaged in any substantial gainful activity. Total disability will be deemed to have occurred on the
first day after the Company and two independent physicians have furnished their opinion of total disability to the Board. 
 Exercise

 During your lifetime only you can exercise this Option. The Plan also provides for exercise of this Option by the personal representative
of your estate or the beneficiary thereof following your death. 
 10% Shareholders 

If an individual owns more than 10% of the total voting power of all classes of the Company’s stock, the exercise price per share of a Code Stock
Option will not be less than 110% of the Subscription Price of the Common Shares on the Effective Date and the Option term will not exceed five years. The determination of 10% ownership will be made in accordance with Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”). 
 Payment for Shares 

This Option may be exercised by the delivery of cash or a certified cheque payable to the Company for the aggregate Subscription Price for the shares
being acquired. 
 Withholding Taxes 
 As a condition to the exercise of any portion of this Option which does not qualify as a Code Stock Option, you may be requested to make such arrangements as the Company may require for the satisfaction
of any federal, state or local withholding tax obligations that may arise in connection with such exercise. The Company will have the right to retain without notice sufficient shares of stock to satisfy the withholding obligation by electing to have
the Company or related corporation withhold from the shares to be issued upon exercise that number of shares having a fair market value equal to the amount required to be withheld. 

  
 - 2 -

 Transfer of Option 
 This Option is not transferable except by will or by the applicable laws of descent and distribution. 
 Holding Periods 
 If an individual subject to Section 16 of the Securities Exchange Act
of 1934 (the “Exchange Act”) sells Optioned Shares obtained upon the exercise of a Code Stock Option within 6 months after the Effective Date, such sale may result in short swing profit recovery under Section 16(b) of the Exchange
Act. 
 In order to obtain certain tax benefits afforded to Code Stock Options under Section 422 of the Code, as amended, you must hold the
shares issued upon the exercise of a Code Stock Option for two years after the date of grant of this Option and one year from the date of exercise. You may be subject to the alternative minimum tax at the time of exercise. The Board may require an
Optionee to give the Company prompt notice of any disposition of shares acquired by the exercise of a Code Stock Option prior to the expiration of such holding periods. 
 You should obtain tax advice when exercising any Option and prior to the disposition of the shares issued upon the exercise of any Option. 
 Registration 
 If you are a resident of the United States, the Optioned Shares issued upon
the exercise of this Option will be acquired in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Act”), pursuant to Section 3(b) and Rule 701 thereof, and you hereby
represent that: 
  

	 	(a)	you believe, either alone or with the assistance of professional advisors, that you have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of the purchase of the Optioned Shares; 

  

	 	(b)	you possess sufficient financial resources to be able to bear the risk of investment in the Optioned Shares; 

 

	 	(c)	you will be acquiring the Optioned Shares for investment purposes only and without a current intention of reselling or redistributing the same upon the occurrence or
non-occurrence of a predetermined event and understand that the Optioned Shares have not been, and may never be, registered under the Act and, therefore, cannot be sold unless subsequently registered under the Act or an exemption from registration
is available; 

  

	 	(d)	you have spoken or met with, or been given reasonable opportunity to speak with or meet with, representatives of the Company for the purpose of asking questions of, and
receiving answers and information from, such representatives concerning your investment in the Optioned Shares; and 

  
 - 3 -

	 	(e)	you understand that the Company will rely upon the representations set forth herein to claim exempt status under the Act. 

To exercise your Option, deliver a written notice specifying the number of Optioned Shares you wish to acquire, together with cash or a certified cheque
payable to the Company for the aggregate Subscription Price, to the Company. A certificate for the Optioned Shares so acquired will be issued by the transfer agent as soon as practicable thereafter. 

Please execute the Acceptance and Acknowledgement set forth below on the enclosed copy of this Option Commitment and return it to the undersigned.

  
 - 4 -

 ACCEPTANCE AND ACKNOWLEDGEMENT 

I, a resident of the State of             , accept the code stock option described
above and in Tekmira Pharmaceuticals Corporation’s Share Option Plan (the “Plan”), and acknowledge receipt of a copy of this Option Commitment and a copy of the Plan. I have read and understand the Plan. 

 

									
	Dated:	 	  
	 		 	  

		 		 		 	(Name)
		 		 		 	Address	 	  

	  
	 		 	  

	Taxpayer I.D. Number	 		 	  

 By his or her signature below, the spouse of the Optionee, if such Optionee is legally married as of the date of his or
her execution of this Agreement, acknowledges that he or she has read this Option Commitment and the Plan and is familiar with the terms and provisions thereof, and agrees to be bound by all the terms and conditions of this Option Commitment and the
Plan. 
  

									
	 Date:
	 	  
	 		 	
				
		 		 		 	  

		 		 	 Spouse’s Signature

			
		 		 	  

		 		 	 Printed Name

 By his or her signature below, the Optionee represents that he or she is not legally married as of the date of execution
of this Option Commitment. 
  

									
	Date:	 	  
	 		 	
				
		 		 		 	  

		 		 	 Optionee’s Signature

 NOTICE OF EXERCISE OF CODE STOCK OPTION 

To:
                             
 I, a resident of the State of              hereby exercise my Code Stock Option granted by Tekmira Pharmaceuticals Corporation (the
“Company”) on             , 20    , subject to all the terms and provisions thereof and of the Share Option Plan (the “Plan”), referred
to therein and notify the Company of my desire to purchase              shares of Common Shares of the Company (the “Securities”) at the subscription price of
Cdn. $             per share which were offered to me pursuant to said Option. 
 I hereby represent and warrant that: 
 (Scheme D) 

 

	 	(a)	I have been furnished with a copy of the Plan and all information which I deem necessary to evaluate the merits and risks of the purchase of the Securities;

  

	 	(b)	I have had the opportunity to ask questions and receive answers concerning the information received about the Securities and the Company; and 

 

	 	(c)	I have been given the opportunity to obtain any additional information I deem necessary to verify the accuracy of any information obtained concerning the Securities and
the Company. 

 I am aware that the Securities have not been registered under the Federal Securities Act of 1933 (the
“Act”) or any state securities laws, pursuant to exemptions(s) from registration. I understand that the reliance by the Company on such exemption(s) is predicated in part upon the truth and accuracy of the statements by me in this Notice
of Exercise. 
 I hereby represent and warrant that I am purchasing the Securities for my own personal account for investment and not with a
view to the sale or distribution of all or any part of the Securities. 
 I understand that because the Securities have not been registered
under the Act, I must continue to bear the economic risk of the investment of an indefinite time and the Securities cannot be sold unless the Securities are subsequently registered or an exemption from registration is available. 

I agree that I will in no event sell or distribute all or any part of the Securities unless: 

 

	 	(d)	there is an effective registration statement under the Act and applicable state securities laws covering any such transaction involving the Securities; or

  

	 	(e)	the Company receives an opinion of my legal counsel (concurred in by legal counsel for the Company) stating that such transaction is exempt from registration or the
Company otherwise satisfies itself that such transaction is exempt from registration. 

 I consent to the placing of a legend on my certificate(s) for the Securities stating that the Securities
have not been registered and setting forth the restriction on transfer contemplated hereby and to the placing of a stop transfer order on the books of the Company and with any transfer agents against the Securities until the Securities may be
legally resold or distributed. 
 I understand that at the present time Rule 144 of the Securities and Exchange Commission (the “SEC”)
may not be relied on for the resale or distribution of the Securities by me. I understand that the Company has no obligation to me to register the Securities with the SEC and has not represented to me that it will register the Securities.

 I am advised, prior to my purchase of the Securities, that neither the offering of the Securities nor any offering materials have been
reviewed by any administrator under the Act or any other applicable Securities Act (the “Acts”) and that the Securities have not been registered under any of the Acts and therefore cannot be resold unless they are registered under the Acts
or unless an exemption from such registration is available. 
  

							
	  
	 		 	  

	Name	 		 	Date
			
	  
	 		 	
	Address	 		 	
			
	  
	 		 	
	Taxpayer I.D. Number	 		 	

  
 - 2 -

 RECEIPT 
                              hereby acknowledges receipt
from                          in payment for
            shares of Common Shares of Tekmira Pharmaceuticals Corporation, a              corporation of
                         in the form of cash. 

 

	 	 ̈	Cash 

  

	 	 ̈	Certified Cheque 

  

									
	Date:	 	  
	 		 	  

 

									
	FMV on such date:	 	 	 		 	For:	 	 
		 		 		 		 	

  
 - 3 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]