Document:

Exhibit 4.4

                                                                                                    EXHIBIT
      4.4

     

     

    

    TM
      BIOSCIENCE CORPORATION

    
 

     

    SHARE
      OPTION PLAN

     

    
 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TM
      BIOSCIENCE CORPORATION

     

    INCENTIVE
      SHARE OPTION PLAN

     

    The
      purpose of this Incentive Share Option Plan (the “Plan”)
      is to
      advance the interests of Tm Bioscience Corporation (the “Corporation”)
      by (i)
      providing Eligible Persons (as defined herein) with additional incentive; (ii)
      encouraging share ownership by Eligible Persons; (iii) increasing the
      proprietary interest of Eligible Persons in the success of the Corporation;
      (iv)
      encouraging Eligible Persons to remain with the Corporation or its Affiliates
      (as defined herein); and (v) attracting new employees, officers, directors
      and
      Consultants (as defined herein) to the Corporation or its
      Affiliates.

     

    ARTICLE
      1 GENERAL
      PROVISIONS

     

    1.1. Previously
      Issued and Outstanding Options Continued

     

    All
      options issued and outstanding under previous option agreements or previous
      option grants are hereby continued as if issued or granted under this Plan.
      

     

    1.2. Administration

     

    
      	 	
              (a)

            	
              This
                Plan will be administered by the Board or the compensation committee
                of
                the Board to which the Board may delegate authority to administer
                the
                Plan. In such event, all references to the term “Board” will be deemed to
                include references to such compensation
                committee.

            

    

     

    
      	 	
              (b)

            	
              Subject
                to the limitations of this Plan, the Board has the authority: (i)
                to grant
                Options to purchase Shares to Eligible Persons; (ii) to determine
                the
                terms, including the limitations, restrictions and conditions, if
                any,
                upon such grants; (iii) to interpret this Plan and to adopt, amend
                and
                rescind such administrative guidelines and other rules relating to
                this
                Plan as it may from time to time deem advisable, subject to required
                prior
                approval by any applicable Stock Exchange or Governmental Entity;
                and (iv)
                to make all other determinations and to take all other actions in
                connection with the implementation and administration of this Plan
                as it
                may deem necessary or advisable. The Board’s guidelines, rules,
                interpretations and determinations will be conclusive and binding
                upon all
                parties.

            

    

     

    1.3. Interpretation

     

    For
      the
      purposes of this Plan, the following terms will have the following meaning
      unless otherwise defined elsewhere in this Plan:

     

    
      	
            	(a)	
              “Affiliate”
                means any corporation that is an affiliate of the Corporation as
                defined
                under the Securities
                Act (Ontario);

            

    

     

    
      	
            	(b)	
              “Board”
                means the Board of Directors of the Corporation or the compensation
                committee thereof appointed in accordance with the
                Plan;

            

    

     

    
      	
            	(c)	
              “Change
                of Control”
                means: 

            

    

     

    
      	 	
              (i)

            	
              a
                reorganization, amalgamation, merger or other business combination
                (or a
                plan of arrangement in connection with any of the foregoing), other
                than
                solely involving the Corporation and any one or more of its Affiliates,
                with respect to which all or substantially all of the persons who
                were the
                beneficial owners of the Shares immediately prior to such reorganization,
                amalgamation, merger, business combination or plan of arrangement
                do not,
                following the completion of such reorganization, amalgamation, merger,
                business combination or plan of arrangement, beneficially own, directly
                or
                indirectly, more than fifty percent (50%)
                of the resulting voting shares on a fully-diluted
                basis;

            

    

     

    
      	 	
              (ii)

            	
              the
                sale to a person other than an Affiliate of the Corporation of all
                or
                substantially all of the Corporation’s assets;
                or

            

    

     

    
      	 	
              (iii)

            	
              a
                change in the composition of the Board, which occurs at a single
                meeting
                of the shareholders of the Corporation or upon the execution of a
                shareholders’ resolution, such that individuals who are members of the
                Board immediately prior to such meeting or resolution cease to constitute
                a majority of the Board, without the Board, as constituted immediately
                prior to such meeting or resolution, having approved of such
                change.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
            	
              (d)

            	
              “Consultant”
                means (i) an individual (including an individual whose services are
                contracted for through a corporation), (ii) a corporation (in either
                case,
                designated by the Board with whom the Corporation has a contract
                for
                substantial services), or (iii) a member of the Scientific Advisory
                Board;

            

    

     

    
      	
            	(e)	
              “Corporation”
                means Tm Bioscience Corporation or any successor
                thereof;

            

    

     

    
      	
            	(f)	
              “Date
                of Grant”
                means the date on which a particular Stock Option is granted by the
                Board;

            

    

     

    
      	
            	(g)	
              “Disability”
                means, with respect to a Participant, the determination by the Corporation
                that a Participant is eligible to receive, and the receipt by such
                Participant, of benefits under the Corporation’s long-term disability
                plan, as such plan may be amended from time to time;
                

            

    

     

    
      	
            	(h)	
              “Eligible
                Person”
                means, subject to all applicable law, any employee, officer, director
                or
                Consultant of (i) the Corporation or (ii) any Affiliate of the Corporation
                (and includes any such person who is on a leave of absence authorized
                by
                the Board or the board of directors of any Affiliate). Notwithstanding
                the
                foregoing, a Participant will cease to be an Eligible Person on earliest
                of: (a) the date of the Participant’s termination, retirement or cessation
                of employment with or engagement by the Corporation or any of its
                Affiliates; (b) the date of the Participant’s death; and (c) the date on
                which the Participant otherwise fails to meet the criteria set forth
                under
                the definition of an Eligible Person. For greater certainty, a Consultant
                will cease to be an Eligible Person if the services of any key individual
                referred to in the Consultant’s contract are no longer available to the
                Corporation as required by the
                contract.

            

    

     

    
      	
            	(i)	
              “Exercise
                Price”
                means with respect to a Stock Option (a) if, on the Date of Grant,
                the Shares are not listed on a Stock Exchange, such amount as the
                Board
                may determine as being the fair value of the Shares as at that date
                (using
                generally accepted valuation practices); and (b) if, on the Date of
                Grant, the Shares are listed on a Stock Exchange, the volume weighted
                average trading price of the Shares on such Stock Exchange for the
                five
                (5) trading days immediately preceding the day on which the Stock
                Option
                is granted (or, if no Shares have been traded on such immediately
                preceding trading day, the simple average of the daily high and low
                board
                lot trading prices of the Shares on the Stock Exchange for each trading
                day falling not more than twenty trading days prior to the day on
                which
                the Stock Option is granted), or such greater amount as the Board
                may
                designate; provided, however, that the Exercise Price of a Stock
                Option
                shall not be less than the minimum Exercise Price required by the
                applicable rules of the Stock
                Exchange;

            

    

     

    
      	
            	(j)	
              “Expiry
                Date”
                means the date after which a particular Stock Option can no longer
                be
                exercised, subject to amendment in accordance with the terms
                hereof;

            

    

     

    
      	
            	(k)	
              “Governmental
                Entity”
                means any applicable (a) multinational, federal, provincial, state,
                municipal, local or other governmental or public department, commission,
                board, bureau or agency, (b) any subdivision or authority of any
                of the
                foregoing, or (c) any quasi-governmental body exercising (with proper
                jurisdiction) any regulatory or taxing authority under or in respect
                of
                any of the above;

            

    

     

    
      	
            	(l)	
              “Involuntary
                Termination”
                means

            

    

     

    
      	 	
              (i)

            	
              in
                respect of any employee or officer of the Corporation or any of its
                Affiliates:

            

    

     

    
      	 	
              (A)

            	
              any
                express or implied termination by the Corporation or any of its Affiliates
                of a Participant’s employment which is not due to the termination of his
                or her employment for cause or on account of death or
                Disability;

            

    

     

    
      	 	
              (B)

            	
              the
                assignment to a Participant of duties materially inconsistent with
                his or
                her position, duties, responsibilities and status immediately prior
                to the
                Change of Control, or a change in his or her position, duties,
                responsibilities (including reporting responsibilities), titles or
                offices
                in effect immediately prior to the Change of Control, or any removal
                from
                or any failure to re-appoint him or her to any of such positions,
                duties
                or offices;

            

    

     

    
      	 	
              (C)

            	
              any
                material reduction of the Participant’s total compensation including base
                salary and incentive compensation package, vacation entitlement or
                employee benefits, which shall exclude, for greater certainty, a
                reduction
                caused by the failure of the Corporation or its Affiliates or the
                employees to meet incentive compensation targets or goals, provided
                that
                such incentive compensation targets or goals are consistent with
                past
                incentive compensation targets or goals;

            

    

     

    
      	 	
              (D)

            	
              a
                material reduction in the employee's ability to earn incentive
                compensation, which shall exclude, for greater certainty, a reduction
                caused by the failure of the Corporation or its Affiliates or the
                employees to meet incentive compensation targets or goals, provided
                that
                such incentive compensation targets or goals are consistent with
                past
                incentive compensation targets or goals;
                or

            

    

     

    
      	 	
              (E)

            	
              any
                change in excess of 100 kilometres in the location at which the
                Participant predominantly performs his or her duties without his
                or her
                consent, except for required travel on business to an extent substantially
                consistent with his or her business obligations immediately prior
                to the
                Change of Control; and

            

    

     

    
      	 	
              (ii)

            	
              in
                respect of the Participant who, to the extent he or she is a director
                of
                the Corporation (and not an employee or officer of the Corporation
                or any
                of its Affiliates), ceases to be a director for any reason other
                than as a
                result of voluntary resignation, death or Disability, including,
                for
                greater certainty, ceasing to be a director as a result of resignation
                following a request therefor or following a material reduction in
                the
                director’s compensation, removal or failure to be elected or
                appointed.

            

    

    
       

      
        	
              	(m)	
                “Notice
                  of Grant”
                  means the notice of grant attached hereto as Schedule
                  “A”;

              

      

    

     

    
      	
            	(n)	
              “Participant”
                means an Eligible Person to whom a Stock Option has been
                granted;

            

    

     

    
      	
            	(o)	
              “Plan”
                means the Corporation’s incentive share option
                plan;

            

    

     

    
      	
            	(p)	
              “Reserved
                for Issuance”
                means Shares which may be issued upon the exercise of Stock
                Options;

            

    

     

    
      	
            	(q)	
              “Scientific
                Advisory Board”
                means the scientific advisory board of the Board in existence from
                time to
                time, each member of which is appointed by the Board;
                

            

    

     

    
      	
            	(r)	
              “Shares”
                means the common shares of the
                Corporation;

            

    

     

    
      	
            	(s)	
              “Stock
                Option”
                means an option to purchase Shares from treasury granted hereunder
                to a
                Participant;

            

    

     

    
      	
            	(t)	
              “Stock
                Exchange”
                means the Toronto Stock Exchange or such other stock exchange or
                over-the-counter quotation system on which the Shares are listed
                or quoted
                from time to time; 

            

    

     

    
      	
            	(u)	
              “Substitution
                Event”
                means (i) a Change of Control, or (ii) a merger, amalgamation,
                arrangement, business combination or other transaction pursuant to
                which
                the Shares of the Corporation are converted into, or exchanged for,
                other
                property, whether in the form of securities of another corporation,
                cash
                or otherwise;

            

    

     

    
      	
            	(v)	
              “Termination
                Date”
                means the date on which a Participant ceases to be an Eligible
                Person;

            

    

     

    
      	
            	(w)	
              “Transfer”
                includes any sale, exchange, assignment, gift, bequest, disposition,
                mortgage, charge, pledge, encumbrance, grant of security interest
                or other
                arrangement by which possession, legal title or beneficial ownership
                passes from one person to another, or to the same person in a different
                capacity, whether or not voluntary or not voluntary and whether or
                not for
                value, and any agreement to effect any of the foregoing;
                and

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
            	(x)	
              “Vesting
                Date”
                means the date or dates determined in accordance with Section 2(3)
                on and
                after which a particular Stock Option, or any part thereof, may be
                exercised, subject to amendment from time to time in accordance with
                the
                terms hereof.

            

    

     

    Words
      importing the singular number include the plural and vice versa and words
      importing the masculine gender include the feminine.

     

    This
      Plan
      is to be governed by and interpreted in accordance with the laws of the Province
      of Ontario.

     

    1.4. Shares
      Reserved

     

    (a) 
Subject
      to Section 1.4(b), the total number of Shares Reserved for Issuance under the
      Plan will be 13,600,000.

     

    (b) 
Effective
      upon the Toronto Stock Exchange amending its Company Manual to remove the
      requirement for stock option plans to specify a maximum number of securities
      issuable under such plans, Section 1.4(a) above shall be deleted and the total
      number of Shares Reserved for Issuance under the Plan shall be equal to 10%
      of
      the number of Shares outstanding from time to time.

     

    1.5 Nonqualified
      Plan

          
      

    For
      purposes of Section 422 of the United States Internal Revenue Code, this Plan
      will not be treated as an Incentive Stock Option Plan. 

     

    ARTICLE
      2 
      SHARE OPTION PLAN

     

    2.1. Application

     

    Grants
      of
      Stock Options to Eligible Persons shall be governed by this Article
      2.

     

    2.2. Grants

     

    
      	 	
              (a)

            	
              Subject
                to this Plan, the Board will have the authority to determine the
                limitations, restrictions and conditions, if any, in addition to
                those set
                out in this Plan, applicable to the exercise of a Stock Option, including,
                without limitation, the nature and duration of the restrictions,
                if any,
                to be imposed upon the sale or other disposition of Shares acquired
                upon
                exercise of the Stock Option. An Eligible Person may receive Stock
                Options
                on more than one occasion under this Plan and may receive separate
                Stock
                Options on any one occasion.

            

    

     

    
      	 	
              (b)

            	
              Subject
                to any required Stock Exchange or Governmental Entity approval, the
                aggregate number of Shares reserved for issuance to any one person
                pursuant to Stock Options granted under the Plan must not exceed
                5% of the
                Shares outstanding at the time of the
                grant.

            

    

     

    
      	 	
              (c)

            	
              Subject
                to any required Stock Exchange or Governmental Entity approval, the
                number
                of Shares reserved for issuance to insiders of the Corporation pursuant
                to
                Stock Options granted under the Plan must not exceed 10% of the Shares
                outstanding.

            

    

     

    
      	 	
              (d)

            	
              Subject
                to any required Stock Exchange or Governmental Entity approval, the
                Corporation shall not, pursuant to Stock Options granted under the
                Plan,
                issue to insiders of the Corporation, within a one-year period, a
                number
                of Shares exceeding 10% of the Shares
                outstanding.

            

    

     

    
      	 	
              (e)

            	
              Subject
                to any required Stock Exchange or Governmental Entity approval, the
                Corporation shall not, pursuant to Stock Options granted under the
                Plan,
                issue to any one insider of the Corporation, and such insider’s
                associates, within a one-year period, a number of Shares exceeding
                5% of
                the Shares outstanding.

            

    

     

    2.3. Expiry
      Date; Vesting of Options

     

    
      	 	
              (a)

            	
              Subject
                to Section 2.5 and any applicable rules of the Stock Exchange, and
                unless
                otherwise fixed by the Board at the time the particular Stock Option
                is
                granted and set forth in the Notice of Grant, the Expiry Date of
                a Stock
                Option will be the fifth (5th)
                anniversary of the Date of Grant. 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              Subject
                to Section 2.3(c), Stock Options will vest over a four (4) year period
                and
                may be exercised in whole or in part at any time from time to time
                as
                follows: 

            

    

     

    
      	
              PERIOD

               

            	
              NUMBER
                OF STOCK OPTIONS VESTED

               

            
	
              On
                the Date of Grant

               

            	
              20%

               

            
	
              On
                or after the first anniversary of Date of Grant

               

            	
              40%

               

            
	
              On
                or after the second anniversary of Date of Grant

               

            	
              60%

               

            
	
              On
                or after the third anniversary of Date of Grant

               

            	
              80%

               

            
	
              On
                or after the fourth anniversary of Date of Grant

               

            	
              100%

               

            

    

    
      	 	
              (c)

            	
              Stock
                Options that are granted to members of the Scientific Advisory Board
                who
                are appointed to a term of 24 months or less will vest in full on
                the date
                that such term is completed, and will not vest until the completion
                of
                such term. 

            

    

     

    2.4. Exercise
      Price

     

    The
      exercise price for the Shares underlying a Stock Option will be the Exercise
      Price. 

     

    2.5. Termination,
      Retirement, Death, Departure

     

    Any
      Stock
      Option or part thereof not exercised within the Exercise Period will terminate
      and become null, void and of no effect as of the day immediately following
      the
      Expiry Date determined under Section 2.3(a) hereof, unless the Expiry Date
      is
      determined to be an earlier date as follows:

     

    
      	 	
              (a)

            	
              Death
                -
                The Expiry Date of a Stock Option held by a Participant that had
                vested
                immediately prior to his or her death will be the earlier of the
                expiry
                date shown on the relevant Notice of Grant and the date that is one
                hundred and eighty (180) days after the date of his or her death.
                Stock
                Options that are outstanding but unvested immediately prior to a
                Participant’s death will immediately terminate and become null, void and
                of no effect upon the death of the Participant.
                If
                a Participant dies, the legal representatives of the Participant
                may
                exercise the Participant’s Stock Options (which, by their terms, were
                exercisable on the date of death) prior to the Expiry Date.
                

            

    

     

    
      	 	
              (b)

            	
              Disability
                -
                In the event a Participant ceases to be an Eligible Person as a result
                of
                Disability, then the Expiry Date of a Stock Option that had vested
                on the
                date such Participant ceases to be an Eligible Person will be the
                earlier
                of the expiry date shown on the relevant Notice of Grant and the
                date
                ninety (90) days following the date such Participant ceases to be
                an
                Eligible Person. Stock Options that are outstanding but unvested
                on the
                date such Participant ceases to be an Eligible Person will immediately
                terminate and become null, void and of no
                effect.

            

    

     

    
      	 	
              (c)

            	
              Termination
                for Cause
                -
                If the employment of a Participant who is an employee is terminated
                for
                cause, all vested and unvested Stock Options held by such Participant
                will
                immediately terminate and become null, void and of no effect on the
                date
                on which the Corporation, or any of its Affiliates, gives a notice
                of
                termination for cause to such
                Participant.

            

    

     

    
      	 	
              (d)

            	
              Voluntary
                Resignation -
                In the event a Participant ceases to be an Eligible Person as a result
                of
                his or her voluntary resignation from any position or employment
                with the
                Corporation or its Affiliates, then the Expiry Date of a Stock Option
                that
                had vested on the date such Participant ceases to be an Eligible
                Person
                will be the earlier of the Expiry Date shown on the relevant Notice
                of
                Grant and the date ninety (90) days following the date such Participant
                ceases to be an Eligible Person. The Stock Options that are outstanding
                but unvested on the date such Participant ceases to be an Eligible
                Person
                will immediately terminate and become null, void and of no effect.
                

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (e)

            	
              Discretion
                of Board -
                Notwithstanding Section 2.5(a), (b), (c) and (d) above, but subject
                to
                applicable laws, rules and regulations of any applicable Stock Exchange
                or
                Governmental Entity, the Board may, by prior notice to any Participant
                or
                his or her legal representative, in its sole discretion, extend the
                Expiry
                Date of any Stock Options in whole or in part.

            

    

     

    2.6. Notice
      of Grant

     

    Each
      Stock Option must be confirmed, and will be governed, by a Notice of Grant
      in
      the form of Schedule “A” (as the same may be amended from time to time) signed
      by the Corporation and the Participant.

     

    2.7. Shareholder
      Approval

     

    Where
      required by the Stock Exchange or any Governmental Entity, shareholder approval
      to the grant of Stock Options shall be obtained prior to the exercise of Stock
      Options granted to insiders of the Corporation.

     

    
      	
              2.8.

            	
              Payment
                of Exercise Price; Exercise of Stock
                Options

            

    

     

    
      	 	
              (a)

            	
              Stock
                Options may only be exercised by the Participant or his or her legal
                representative. Participants may exercise their Stock Options, subject
                to
                the restrictions set out below, to acquire Shares by either electing
                (i)
                the full payment option by enclosing a bank draft or certified cheque
                in
                the amount of the aggregate Exercise Price payable to the Corporation
                in
                full payment for such Shares, or (ii) the cashless exercise option
                by
                which the Participant authorizes and directs (A) the Corporation
                to issue
                and deliver the Shares issuable on the exercise of the Participant’s Stock
                Options to an intermediary, and (B) the intermediary to sell all
                of the
                Shares issuable upon the exercise of such Participant’s Stock Options, to
                remit the net proceeds of such sale (after payment of brokerage
                commissions and other transfer costs) to pay the aggregate Exercise
                Price
                to the Corporation in full payment for such Shares, and to remit
                to the
                Participant the balance, if any, of the net proceeds of the sale
                of such
                Shares after the above payments. Stock Options may be exercised in
                whole
                or in part only in respect of a whole number of Shares at any time
                or from
                time to time during the Exercise Period by delivering to the Corporation
                a
                notice of option exercise (the “Exercise
                Notice”),
                substantially in the form attached hereto as Schedule “B” and, in the
                event the full payment option is selected by the Participant, a bank
                draft
                or certified cheque in an amount equal to the aggregate Exercise
                Price of
                the Shares to be purchased pursuant to the exercise of Stock Options.
                

            

    

     

    
      	 	
              (b)

            	
              Notwithstanding
                Section 2.8(a) hereof, but subject to Section 5.2, a Participant
                must
                exercise Stock Options entitling the Participant to acquire no less
                than
                five hundred (500) Shares on each date on which Stock Options are
                exercised by such Participant unless, on such date, the Participant
                holds
                Stock Options that, in the aggregate, entitle the Participant to
                acquire
                fewer than five hundred (500) Shares, in which case a Participant
                who
                chooses to exercise such Stock Options must exercise all of his or
                her
                Stock Options on such date.

            

    

     

    
      	 	
              (c)

            	
              As
                soon as practicable following the receipt of the Exercise Notice
                and, in
                the event the full payment option is selected by the Participant,
                a bank
                draft or certified cheque in accordance with Section 2.8(a), the
                Corporation will deliver to the Participant a certificate for the
                Shares
                so purchased. If the number of Shares so purchased is less than the
                number
                of Shares subject to the Stock Options, the Corporation will attach
                thereto a memorandum of the number of Shares in respect of which
                the Stock
                Options have been exercised and will return a written notice to the
                Participant concurrently with the delivery of the aforesaid Share
                certificate stating the number of Shares that remain to be purchased
                under
                the Stock Options.

            

    

     

    
      	 	
              (d)

            	
              The
                issue of Shares by the Corporation pursuant to the exercise of any
                Stock
                Option is subject to compliance with applicable laws, rules and
                regulations of all Governmental Entities applicable to the issuance
                and
                distribution of such Shares and to the requirements of any Stock
                Exchange
                on which the Shares may be listed or quoted, including any requirements
                with respect to the legending of certificates representing the Shares
                issued pursuant to the exercise of any Stock Option. The Participant
                agrees: (i) to comply with all such laws, rules, regulations and
                requirements, (ii) to furnish to the Corporation any information,
                report
                and/or undertakings required to comply with all such laws, rules,
                regulations and requirements, and (iii) to fully cooperate with the
                Corporation in complying with such laws, rules, regulations and
                requirements.

            

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (e)

            	
              Upon
                the exercise of Stock Options, Eligible Persons who are employed
                by the
                Corporation or an Affiliate shall have withheld at source all income,
                social security and other payroll taxes and withholdings required
                by law
                on the gain realized upon the
                exercise.

            

    

     

    2.9. Amendment
      of Option Terms

     

    The
      Board
      may, subject to any necessary regulatory approval, at its discretion from time
      to time, amend the Plan and the terms and conditions of any Stock Option
      thereafter to be granted and, without limiting the generality of the foregoing,
      may make such amendment for the purpose of complying with any changes in any
      relevant law, rule, regulation, regulatory requirement or requirement of the
      Stock Exchange, or for any other purpose which may be permitted by law, provided
      always that any such amendment will not alter the terms or conditions of, or
      impair any right of any Participant pursuant to any Stock Option awarded prior
      to such amendment without the consent of such Participant, unless such amendment
      or alteration is required by any applicable Stock Exchange or Governmental
      Entity. 

     

    2.10. Assignment
      of Stock Options

     

    Stock
      Options (and any rights thereunder) will not be assignable or transferable.
      

     

    ARTICLE
      3 ASSUMPTION
      OR SUBSTITUTION OF STOCK OPTIONS

     

    3.1. Substitution
      

     

    
      	 	
              (a)
                

            	
              In
                the event of a Substitution Event, then, unless Article 4 applies,
                any
                surviving or acquiring corporation will assume any Stock Option
                outstanding under the Plan on the same terms and conditions as the
                Plan or
                will substitute or replace similar stock options (including an award
                to
                acquire the same consideration paid to the securityholders in the
                transaction effecting the Substitution Event) for those Stock Options
                outstanding under the Plan on the same terms and conditions as the
                Plan,
                in each case at an exercise price for such replaced, substituted
                or
                replacement option at such amount as the Board may determine (usually
                generally accepted valuation practices) as being the fair value for
                the
                underlying shares as at the date of such Substitution
                Event.

            

    

     

    
      	 	
              (b)

            	
              In
                the event any surviving or acquiring corporation neglects or refuses
                (as
                evidenced in a press release or in the applicable merger agreement
                or
                similar definitive transaction document) to assume such Stock Options
                or
                to substitute or replace similar stock options for those outstanding
                Stock
                Options under the Plan, then with respect to any Stock Options held
                by
                Participants, the vesting of such Stock Options (and, if applicable,
                the
                time during which such Stock Options may be exercised) will be immediately
                accelerated so that such Stock Options will be fully vested. In addition,
                in such event, outstanding Stock Options will terminate if not exercised
                (if applicable) at or prior to such Substitution
                Event.

            

    

     

    
      	 	
              (c)

            	
              No
                fractional Shares or other security will be issued upon the exercise
                of
                any Stock Option and, accordingly, if as a result of a Substitution
                Event,
                a Participant would become entitled to a fractional Share or other
                security, such Participant will have the right to acquire only the
                next
                lowest whole number of Shares or other security and no payment or
                other
                adjustment will be made with respect to the fractional interest so
                disregarded; provided, however, that a cash payment equal to the
                value of
                all fractional interests disregarded pursuant to this Section 3.1(c)
                shall
                be made to a Participant if the number of Stock Options so disregarded
                exceeds five percent (5%) of the total number of Stock Options exercised
                by such Participant.

            

    

     

    
      	 	
              (d)

            	
              Notwithstanding
                any other provision of this Plan, in the event of a potential Substitution
                Event, the Board may, in its discretion: (i) terminate, conditionally
                or
                otherwise and on such terms as it sees fit, the Stock Options not
                exercised following successful completion of such Substitution Event;
                and
                (ii) accelerate the Vesting Date or otherwise modify the terms of
                the
                Stock Options to assist the Participants to obtain the advantage
                of
                holding Shares during the Substitution Event. If the Substitution
                Event
                referred to in this Article 3 is not completed during the time specified
                therein (as the same may be extended), the Stock Options which vested
                pursuant to this Article 3 must be returned by the Participant to
                the
                Corporation and will be reinstated as unvested Stock Options and
                the
                original terms applicable to such Stock Options will apply. If any
                of the
                Stock Options that vested pursuant to this Article 3 were exercised,
                such
                Shares must be returned to the Corporation for cancellation. The
                determination of the Board in respect of any such Substitution Event
                will
                for the purposes of this Plan be conclusive and
                binding.

            

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (e)

            	
              Upon
                the announcement or contemplation of any other event properly
                characterized as a Substitution Event, the Board will have the discretion,
                without the necessity or requirement for the agreement of any Participant,
                to accelerate the Vesting Dates of all Stock Options, as it will
                see fit.
                The Board will promptly notify each Participant in writing of any
                acceleration of the Vesting Dates.

            

    

     

    ARTICLE
      4 TAKE-OVER BIDS

     

    4.1. Take-over
      Bids

     

    
      	 	
              (a)

            	
              In
                the event of a potential change of control following a take-over
                bid (as
                defined herein), then the Corporation will, immediately upon receipt
                of
                the notice of the offer, notify each Participant of the offer, with
                full
                particulars thereof. In the event of a potential change of control
                following a take-over bid, the Board may, in its discretion, accelerate
                the Vesting Date of all of a Participant’s unvested Stock Options, such
                that all of a Participant’s Stock Options will immediately vest at such
                time and the Vesting Date in connection with such Stock Options will
                be
                adjusted accordingly. In such event, all Stock Options so vested
                will be
                exercisable until their respective Expiry Dates so as to permit the
                Participant to tender the Shares received upon such exercise pursuant
                to
                the bid or offer. For purposes of this Article 4, a “potential change of
                control following a take-over bid” will be deemed to occur upon a formal
                bid or tender offer for Shares being made (other than by the Corporation
                or Affiliate of the Corporation, or an employee benefit plan established
                or maintained by the Corporation or an Affiliate) as a result of
                which the
                offeror and its affiliates would, if successful, beneficially own,
                directly or indirectly, fifty percent (50%) or more of the Shares
                then
                outstanding. 

            

    

     

    
      	 	
              (b)

            	
              Notwithstanding
                any other provisions of this Plan, in the event of a potential change
                of
                control following a take-over bid, the Board will have the power,
                if
                determined appropriate (i) to terminate, conditionally or otherwise
                and on
                such terms as it sees fit, the Stock Options not exercised following
                successful completion of such event, and/or (ii) to modify the terms
                of
                the Stock Options to assist the Participants to tender their securities
                into the take-over bid. For greater certainty, in the event that
                the
                acquiring entity acquires one hundred percent (100%) of the outstanding
                Shares following the take-over bid, the Board will have the power,
                if
                determined appropriate, to terminate
                the Stock Options not exercised upon the expiry of the time period
                for
                tendering to
                the acquiring entity for purchase.

            

    

     

    
      	 	
              (c)

            	
              If
                the take-over bid referred to in Section 4.1(a) is not completed
                within
                the time specified therein (as the same may be extended), the Stock
                Options that vested pursuant to Section 4.1(a) (if any) must be returned
                by the Participant to the Corporation and will be reinstated as unvested
                Stock Options and the original terms applicable to such Stock Options
                will
                apply. If any of the Stock Options that vested pursuant to this Section
                4.1(a) (if any) were exercised, such Shares must be returned to the
                Corporation for cancellation.

            

    

     

    ARTICLE
      5 MISCELLANEOUS
      

     

    5.1. Involuntary
      Termination

     

    In
      the
      event of a Substitution Event or a change of control (as defined below) and
      upon
      an Involuntary Termination of the Participant at any time within the ninety
      day
      (90) day period prior to or the one hundred and eighty (180) day period
      following the date of completion of the transaction effecting such Substitution
      Event or change of control, all of a Participant’s unvested Stock Options will
      immediately vest, and the Vesting Date in connection with such Stock Options
      will be adjusted accordingly. For
      the
      purposes of this section 5.1, a “change of control” will be deemed to occur upon
      a formal bid or tender offer for Shares being made (other than by the
      Corporation or an Affiliate of the Corporation or an employee benefit plan
      established or maintained by the Corporation or an Affiliate) as a result of
      which the offeror and its affiliates acquires beneficial ownership (directly
      or
      indirectly) of fifty percent (50%) or more of the Shares then outstanding,
      or
      upon any issuance of Shares by the Corporation (whether by way of public
      offering or private placement) that results in a single shareholder acquiring
      beneficial ownership (directly or indirectly) of fifty percent (50%) or more
      of
      the Shares outstanding after such issuance (provided that such shareholder
      did
      not, at the time of such issuance, have beneficial ownership, direct or
      indirect, of fifty percent (50%) or more of the Shares). 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    5.2 Capital
      Adjustments

     

    If
      there
      is any change in the outstanding Shares by reason of a stock dividend or split,
      recapitalization, consolidation, combination or exchange of shares, or other
      fundamental corporate change, the Board will make, subject to any prior approval
      required of the Stock Exchange or other applicable Governmental Entities, if
      any, an appropriate substitution or adjustment to the Shares or other securities
      of the Corporation, including in (i) the number or kind of shares or other
      securities reserved for issuance pursuant to this Plan; and (ii) the exercise
      price of those unexercised Stock Options; provided, however, that no
      substitution or adjustment will obligate the Corporation to issue or sell
      fractional shares. 

     

    5.3. Non-Exclusivity

     

    Nothing
      contained herein will prevent the Board from adopting other or additional
      compensation arrangements for the benefit of any Eligible Person or Participant,
      subject to any required Stock Exchange, regulatory or shareholder
      approval.

     

    5.4. Termination

     

    
      	 	
              (a)

            	
              The
                Board may amend, suspend or terminate this Plan or any portion thereof
                at
                any time in accordance with applicable legislation, and subject to
                any
                required regulatory or shareholder approval. Subject to Articles
                3 and 4
                hereof, no amendment, suspension or termination will alter or impair
                any
                Stock Options under the Plan, or any rights pursuant thereto, granted
                previously to any Participant without the consent of that
                Participant.

            

    

     

    
      	 	
              (b)

            	
              If
                this Plan is terminated, the provisions of this Plan and any
                administrative guidelines, and other rules adopted by the Board and
                in
                force at the time of this Plan, will continue in effect as long as
                any
                Stock Options under the Plan or any rights pursuant thereto remain
                outstanding. However, notwithstanding the termination of the Plan,
                the
                Board may make any amendments to the Plan or Stock Options it would
                be
                entitled to make if the Plan were still in
                effect.

            

    

     

    5.5. Compliance
      with Legislation

     

    The
      Board
      may postpone or adjust any Stock Option or the issue of any Shares pursuant
      to
      this Plan as the Board in its discretion may deem necessary in order to permit
      the Corporation to effect or maintain qualification of this Plan or the Shares
      issuable pursuant thereto under the securities laws of any applicable
      jurisdiction, or to determine that the Shares and this Plan are exempt from
      such
      registration. The Corporation is not obligated by any provision of this Plan
      or
      any grant hereunder to sell or issue shares in violation of any applicable
      law.
      In addition, if the Shares are listed on a Stock Exchange, the Corporation
      will
      have no obligation to issue any Shares pursuant to this Plan unless the Shares
      have been duly listed, upon official notice of issuance, on the Stock Exchange
      on which the Shares are listed for trading.

     

    5.6. Effective
      Date

     

    This
      Plan
      will become effective upon the approval of the Plan by the Board.

     

    5.7 Discretionary
      Share Withholding. 

     

    The
      Board, in its sole discretion, may provide that, when taxes are to be withheld
      in connection with the exercise of a Stock Option, the Eligible Person may
      elect
      to make payment for the withholding of federal, provincial/state and local
      taxes, including Social Security and Medicare taxes (for Eligible Persons
      resident in the United States) or Canada Pension Plan contributions and
      Employment Insurance premiums (for Eligible Persons resident in Canada), by
      any
      or all of the following methods:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (i) delivering
      part or all of the payment in cash;

     

    
      	 	
              (ii)

            	
              delivering
                part or all of the payment in previously-owned Shares, which shall
                be
                valued at their fair market value on the date the taxes are required
                to be
                withheld; or

            

    

     

    
      	 	
              (iii)

            	
              requesting
                the Corporation to withhold from those Shares that would otherwise
                be
                received upon exercise of the Stock Option, a number of Shares having
                a
                fair market value on the date the taxes are required to be withheld
                equal
                to the amount to be withheld.

            

    

     

    Any
      fractional share amount and any additional withholding not paid by the
      withholding or surrender of Shares must be paid in cash. If no timely election
      is made, cash must be delivered to satisfy all withholding
      requirements.

     

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “A”

     

    NOTICE
      OF GRANT OF STOCK OPTIONS

     

    TM
      BIOSCIENCE CORPORATION

    

    Telephone:
      (416)
      593-4323

    Facsimile:
      (416)
      593-1066

    [Date]

     

    [Name
      & Address]

     

    Dear
      [Name]:

     

    This
      is
      to advise you that in recognition of your contribution to our business, you
      have
      been selected to participate in the Incentive Share Option Plan (the “Plan”) of
      Tm Bioscience Corporation (the “Corporation”). On                    
      you were
      granted a stock option to acquire ______ common shares of the Corporation at
      a
      price of $______ per common share.

     

    Your
      stock option is subject to the provisions of the Plan, a copy of which is
      attached to this notice. The stock option granted to you by the Corporation
      will
      be vested in accordance the Plan and as follows:

     

    
      	
              PERIOD

               

            	
              NUMBER
                OF STOCK OPTIONS VESTED

               

            
	
              On
                the Date of Grant

               

            	
              20%

               

            
	
              On
                or after the first anniversary of Date of Grant

               

            	
              40%

               

            
	
              On
                or after the second anniversary of Date of Grant

               

            	
              60%

               

            
	
              On
                or after the third anniversary of Date of Grant

               

            	
              80%

               

            
	
              On
                or after the fourth anniversary of Date of Grant

               

            	
              100%

               

            

    

    

     

    The
      Expiry Date of your stock option is ____________________.

     

    The
      grant
      of options described above is strictly confidential and the information
      concerning the number or price of common shares granted under this option should
      not be disclosed to anyone.

     

    Yours
      sincerely,

     

    l

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “B”

     

    NOTICE
      OF OPTION EXERCISE 

    

     

    TM
      BIOSCIENCE CORPORATION

     

    INCENTIVE
      SHARE OPTION PLAN

     

    

     

    To:
       Chief
      Financial Officer, Tm Bioscience Corporation (The “Corporation”)

     

    Please
      be
      advised that in connection with stock options granted to me under the
      Corporation’s Incentive Share Option Plan pursuant to the Notice of Grant of
      Stock Options dated _____________ (the “Stock
      Options”),
      the
      undersigned hereby wishes to exercise his or her option to purchase
      _____________ common shares (the “Option Shares”) in the capital of the
      Corporation at a price of $___________ per share, for a total payment of
      $_____________ (the “Exercise Payment”). I
      hereby
      agree to assist the Corporation in the filing of, and will file on a timely
      basis, all reports that I may be required to file under applicable securities
      laws. I understand that the fair market value assigned to my Stock Options
      for
      income tax purposes will be the closing price of the common shares of the
      Corporation on the TSX (or such other stock exchange or over the counter
      quotation system on which the common shares may be listed or quoted from time
      to
      time) on the date of this exercise. I further understand that this request
      to
      exercise my Stock Options is irrevocable.

     

    I
      elect (please check one option):

     

    
      	
              □

            	
              Full
                payment exercise
                -
                complete Part 1 of this notice in duplicate, sign and return one
                original
                copy to the Corporation’s Chief Financial Officer.
                

            

    

     

     

    
      	
              □

            	
              Cashless
                exercise
                -
                complete Part 2 of this notice in triplicate, sign and return one
                original
                copy to the Corporation’s Chief Financial Officer, one copy by fax and
                original by courier to:

            

    

     

    RBC
      Dominion Securities Inc.     

    Attention:
      Janet Cottrelle     

    Royal
      Bank Plaza, South Tower     

    Suite
      3900, P.O. Box 88     

    Toronto,
      ON M5J 2J2

    Fax:
      (416) 842-2222      

    Tel.:
      (416) 842-2380 OR 1-800-561-6431 

     

    Retain
      one copy of this Notice of Option Exercise for your
      records.

     

    Part
      1: For full payment exercise:

     

    Please
      find enclosed a bank draft or certified cheque in the amount of
      $____________________, representing the aggregate Exercise Payment payable
      to
      the Corporation in full payment for the Option Shares.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    The
      Option Shares issued on the exercise of my Stock Options specified above are
      to
      be registered as follows:

    

    
      	
              
                

              

              (Print
                Registree’s Name)

               

            	 	 
	
              
                

              

              (Address)

               

            	 	 
	
               

               

            	 	 
	
              (Telephone
                Number)

               

            	 	 
	
              (Facsimile
                Number)

               

            	 	
              (Optionee’s
                Signature)

               

            
	
              (E-Mail
                Address)

               

            	 	
              (Date)

               

            

    

    

     

    Part
      2: For cashless exercise:

     

    I
      wish to
      use the services of RBC Dominion Securities Inc. to sell all of the Option
      Shares issuable upon exercise by me of my Stock Options specified above, and
      to
      use the proceeds thereof to pay the Exercise Payment. I therefore irrevocably
      authorize and direct the Corporation to: 

     

    
      	
              1.

            	
              Issue
                the Option Shares covered by my Stock Options as specified in the
                accompanying Notice of Option Exercise to RBC Dominion Securities
                Inc. on
                my behalf and to deliver the Option Shares to RBC Dominion Securities
                Inc.; and

            

    

     

    
      	
              2.

            	
              In
                the event that the net proceeds of the sale of my Option Shares (after
                payment of all commissions and other transfer costs) are less than
                the
                full Exercise Payment, to withhold and deduct from any amounts payable
                to
                me by the Corporation, including my wages or salary, the amount of
                such
                shortfall, and to apply such shortfall in full or partial payment
                of the
                Exercise Payment, and this shall be your good and sufficient authority
                for
                so doing. 

            

    

     

    I
      further
      irrevocably authorize and direct RBC Dominion Securities Inc. to:

     

    
      	
              1.

            	
              Immediately
                sell on my behalf all of my Option Shares specified above and to
                immediately remit to the Corporation out of the net proceeds of such
                sale
                (after payment of all commissions and other transfer costs) an amount
                equal to the lesser of: (i) $ _________ ,
                being the Exercise Payment, payable to the Corporation in full payment
                for
                the Option Shares; and (ii) the net proceeds of such sale; and
                

            

    

     

    
      	
              2.

            	
              Remit
                to me the balance, if any, of the net proceeds of the sale of my
                Option
                Shares (after the above payment), and this shall be your good and
                sufficient authority for so doing. 

            

    

     

    I
      understand, acknowledge and agree that:

     

    
      	
              1.

            	
              These
                cashless exercise mechanics have been developed for my convenience,
                and
                therefore I will indemnify and hold harmless the Corporation and
                RBC
                Dominion Securities Inc. from any losses, liabilities, claims, damages,
                costs, charges or expenses which either the Corporation or RBC Dominion
                Securities Inc., as the case may be, may incur arising directly or
                indirectly by reason of the cashless exercise of my Stock Options.
                

            

    

     

    
      	
              2.

            	
              The
                Corporation will issue the Option Shares (in registered form or book-entry
                form) in the name of RBC Dominion Securities Inc. (or its nominee)
                as
                agent acting on my behalf.

            

    

     

    
      	
              3.

            	
              In
                the event that the net proceeds of the sale of my Option Shares (after
                payment of all commissions and other transfer costs) are less than
                the
                full Exercise Payment, I will immediately upon demand deliver to
                the
                Corporation, by certified cheque or bank draft, the amount of such
                shortfall, and the Corporation is authorized to deduct from any amounts
                payable to me by the Corporation, including my wages or salary, the
                amount
                of such shortfall, and to apply such shortfall in full or partial
                payment
                of the Exercise Payment. 

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              4.

            	
              For
                the purpose of facilitating this cashless exercise of my Stock Options
                and
                payment of the Exercise Payment, I hereby constitute and appoint
                the
                Corporation as my true and lawful attorney with full power of substitution
                in my name and on my behalf, with no restriction or limitation in
                that
                regard, and declare that such power of attorney may be exercised
                during
                any subsequent legal incapacity on my part, to execute and deliver
                all
                such agreements and documents and take such other actions as may
                be
                necessary to give effect to the cashless exercise of my Stock Options
                and
                the payment by me to the Corporation of the full Exercise Payment.
                

            

    

     

    
      	
              
                

              

              (Printed
                Name*)

               

            	 	 
	
              (Address)

               

            	 	 
	 	 	
              (Optionee’s
                Signature)

               

            
	
              (S.I.N.)

               

            	 	
              (Date)

               

            

    

    

     

    *print
      your name exactly as it appears on the Notice of Grant of Stock
      Options

     

    

    
      
        
        

      

      
        14Exhibit 4.5

                                                                                                EXHIBIT
    4.5
    TM
      BIOSCIENCE CORPORATION

     

    DEFERRED
      SHARE UNIT PLAN

     

    FOR

     

    NON-EMPLOYEE
      DIRECTORS AND SAB MEMBERS

     

     

     

    

     

    Adopted
      June 2 with effect from January 1 ,
      2004

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      TM
        BIOSCIENCE CORPORATION

       

      DEFERRED
        SHARE UNIT PLAN

       

      FOR
        NON-EMPLOYEE DIRECTORS AND SAB MEMBERS

       

    

    
      	
              1.

            	
              Purpose.
                The
                DSU Plan is intended to enhance the Company's ability to attract
                and
                retain qualified, high calibre and talented individuals to serve
                as
                members of the Board and the SAB and to promote a greater alignment
                of
                interests between non-employee members of the Board and the SAB and
                the
                shareholders of the Company. 

            

    

     

    
      	
              2.

            	
              Definitions.
                As used in this DSU Plan, the following terms have the following
                meanings:
                

            

    

     

    “Attendance
      Compensation”
means
      all cash compensation which, but for this DSU Plan, would be payable by the
      Company to an Eligible Participant in respect of his or her attendance at
      meetings of the Board or a committee thereof or the SAB, as applicable.

     

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

     

    “Committee”
means
      the Human Resources and Compensation Committee of the Board or such other
      committee of the Board as may from time to time be appointed to be responsible
      for matters relating to directors' compensation and the compensation of SAB
      members. 

     

    “Common
      Share”
means
      a
      common share in the capital of the Company as constituted at the date hereof
      or
      any shares or other securities into which such common shares may have been
      changed, reclassified, subdivided, consolidated or converted. 

     

    “Company”
means
      Tm Bioscience Corporation or a successor. 

     

    “Consultant”
has
      the
      meaning ascribed to such term under Multilateral Instrument 45-105 -
Trades
      to Employees, Senior Officers, Directors and Consultants,
      as such
      instrument may be amended, supplemented or replaced from time to time.

     

    “Deferred
      Share Unit”
means
      a
      bookkeeping entry, equivalent in value to one (1) Common Share, credited to
      the
      account of an Eligible Participant in accordance with the provisions hereof.
      

     

    “DSU
      Plan”
means
      the Tm Bioscience Corporation Deferred Share Unit Plan for Non-Employee
      Directors and SAB Members, as the same may be from time to time amended.

     

    “Effective
      Date”
shall
      mean the effective date of the DSU Plan set out in Section 3. 

     

    “Election
      Date”
means
      the date on which an Eligible Participant delivers an election to the Chief
      Financial Officer of the Company pursuant to Section 7 in a form prescribed
      by
      the Committee. 

     

    “Eligible
      Participant”
means:
      (i) any member of the Board who is neither an employee nor a fulltime officer
      of
      the Company or any subsidiary of the Company on the applicable Election Date,
      or
      (ii) any member of the SAB who is neither an employee, director nor a fulltime
      officer of the Company or any subsidiary of the Company on the applicable
      Election Date and who is a consultant of the Company. 

     

    “Fair
      Market Value”
of
      a
      Common Share on a particular date means the volume weighted average trading
      price per share of the Common Shares on the Toronto Stock Exchange (or such
      other stock exchange or over the counter quotation system on which the Common
      Shares are listed or quoted from time to time) for the five (5) trading days
      on
      which the Common Shares traded on such exchange immediately prior to such
      particular date. 

     

    “Reference
      Date”
shall
      be, unless otherwise determined by the Committee, the last business day of
      March, June, September and December. 

     

    “Retainer
      Compensation”
means
      all cash compensation other than Attendance Compensation which, but for this
      DSU
      Plan, would be payable by the Company to an Eligible Participant in respect
      of
      his or her services as a director or a member of the SAB, as applicable,
      including, without limitation, his or her annual retainer for serving as a
      member of the Board or a committee thereof or the SAB, as applicable, and for
      acting as chair of a Board committee or as Chair of the Board.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

      TM
        BIOSCIENCE CORPORATION

       

      DEFERRED
        SHARE UNIT PLAN

       

      FOR
        NON-EMPLOYEE DIRECTORS AND SAB MEMBERS

       

    

    “SAB”
means
      the Scientific Advisory Board of the Company. 

     

    “Settlement
      Date”
      has the
      meaning specified in Section 11. 

     

    “Termination
      Date”
means
      the date on which for any reason an Eligible Participant is no longer either
      a
      director of the Company or a member of the SAB. 

     

    
      	
              3.

            	
              Effective
                Date.
                The DSU Plan shall be effective on June 2, 2004 and will apply to
                the
                Retainer Compensation and Attendance Compensation, retroactively
                to
                January 1, 2004, as to availability, but not as to Fair Market
                Value.

            

    

     

    
      	
              4.

            	
              Participation
                in the DSU Plan.
                All Eligible Participants may participate in the DSU Plan from the
                Effective Date, or, for Eligible Participants elected or appointed
                to the
                Board or the SAB, as applicable, after the Effective Date, from the
                date
                of his or her election or appointment.

            

    

     

    
      	
              5.

            	
              Administration.
                The DSU Plan shall be administered by the Committee. The Committee
                is
                authorized to interpret, construe and administer the DSU Plan, to
                establish, amend and rescind any rules and regulations relating to
                the DSU
                Plan, and to make any other determinations and perform all other
                acts that
                it deems necessary or desirable for the administration of the DSU
                Plan.
                The Committee may correct any defect or supply any omission or reconcile
                any inconsistency in the DSU Plan in the manner and to the extent
                the
                Committee deems necessary or desirable. Any decision of the Committee
                in
                the interpretation, construction and administration of the DSU Plan,
                or
                any action, all as described herein shall lie within its sole and
                absolute
                discretion and shall be final, conclusive and binding on all parties
                concerned for all purposes. Notwithstanding the foregoing, all actions
                of
                the Committee shall be such that the DSU Plan continuously meets
                the
                conditions of paragraph 6801(d) of the Regulations under the Income
                Tax Act
                (Canada) and any applicable provincial tax laws and regulations,
                or any
                successor provisions thereto and shall be subject to all requisite
                stock
                exchange, regulatory and/or shareholder approval from time to time.
                Neither the Committee or any member thereof, nor any officer or employee
                of the Company, shall be liable for any act, omission, interpretation,
                construction or determination made in good faith in connection with
                the
                DSU Plan, and the members of the Committee and the officers and employees
                of the Company shall be entitled to indemnification by the Company
                in
                respect of any claim, loss, damage or expense (including legal fees
                and
                disbursements) arising therefrom to the fullest extent permitted
                by law.
                The expenses of administering the DSU Plan shall be borne by the
                Company.
                

            

    

     

    
      	
              6.

            	
              Deferral
                of All or a Portion of compensation.
                Each Eligible Participant may elect to receive either 50% or 100%
                of his
                or her Retainer Compensation and Attendance Compensation which is
                payable
                thereafter in respect of the related calendar year in the form of
                Deferred
                Share Units. 

            

    

     

    
      	
              7.

            	
              Method
                of Electing.
                All Eligible Participants must complete and deliver to the Chief
                Financial
                Officer of the Company an annual written election, substantially
                in the
                form provided in Schedule “A”, designating the portion of his or her
                Retainer Compensation and Attendance Compensation that is to be paid
                in
                Deferred Share Units as follows: 

            

    

     

    
      	 	
              (i)

            	
              for
                Eligible Participants in office on the Effective Date, the election
                in
                respect of the first calendar year of the DSU Plan shall be delivered
                within 30 days after the Effective Date;

            

    

     

    
      	 	
              (ii)

            	
              for
                Eligible Participants not in office on the Effective Date, the election
                in
                respect of the first calendar year of the DSU Plan shall be delivered
                within 30 days after the Eligible Participant is elected or appointed
                as a
                director of the Company or as a member of the SAB, as applicable;
                and
                

            

    

     

    
      	 	
              (iii)

            	
              in
                respect of each subsequent calendar year, the election shall be delivered
                at least 30 days prior to the commencement of that year (unless an
                Eligible Participant takes office during that year, in which case
                the
                election shall be made within 30 days after the Eligible Participant
                is
                elected or appointed as a director or as a member of the SAB, as
                applicable). 

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

      TM
        BIOSCIENCE CORPORATION

       

      DEFERRED
        SHARE UNIT PLAN

       

      FOR
        NON-EMPLOYEE DIRECTORS AND SAB MEMBERS

       

    

    An
      election made in accordance with the foregoing shall be effective for the year
      or balance thereof in respect of which it is made. An election may, subject
      to
      Section 6, be revoked or changed only with respect to the period in the year
      for
      which Deferred Share Units have not yet been credited. If no election is made,
      the Eligible Participant shall be deemed to have elected to be paid his or
      her
      Retainer Compensation and Attendance Compensation entirely in DSU. 

     

    
      	
              8.

            	
              Credit
                of Deferred Share Units.
                Deferred Share Units will be credited as of each Reference Date to
                an
                account maintained for each Eligible Participant participating in
                the DSU
                Plan in the records of the Company. The number of Deferred Share
                Units
                (including fractional Deferred Share Units) to be credited to the
                account
                of an Eligible Participant as of each Reference Date shall be determined
                by dividing: 

            

    

     

    
      	 	
              (i)

            	
              the
                portion of the Retainer Compensation and Attendance Compensation
                payable
                to the Eligible Participant in respect of the calendar quarter ending
                on
                the Reference Date which is to be paid in Deferred Share Units,
                

            

    

     

    by

     

    
      	 	
              (ii)

            	
              the
                Fair Market Value of one (1) Common Share on the applicable Reference
                Date. 

            

    

     

    
      	
              9.

            	
              Dividend
                Equivalents.
                The account maintained pursuant to Section 8 for each Eligible Participant
                shall from time to time be credited with additional Deferred Share
                Units
                (including fractional Deferred Share Units), the number of which
                shall be
                determined by dividing: 

            

    

     

    
      	 	
              (i)

            	
              the
                product obtained by multiplying the amount of each dividend declared
                and
                paid by the Company on its Common Shares on a per share basis (excluding
                stock dividends, but including dividends which may be paid in cash
                or in
                shares at the option of the shareholder) by the number of Deferred
                Share
                Units recorded in the Eligible Participant’s account on the record date
                for payment of any such dividend, 

            

    

     

    by
      

     

    
      	 	
              (ii)

            	
              the
                Fair Market Va1ue of one (1) Common Share on the dividend payment
                date for
                such dividend. 

            

    

     

    
      	
              10.

            	
              Adjustments
                and Reorganizations.
                In the event of any stock dividend (other than a dividend which may
                be
                paid in cash or in shares at the option of the shareholder), stock
                split,
                combination or exchange of shares, merger, consolidation,
                recapitalization, amalgamation, plan of arrangement, reorganization,
                spin-off or other distribution (other than normal cash dividends)
                of
                Company assets to shareholders or any other change affecting the
                Common
                Shares, such adjustments, as are required to reflect such change,
                shall be
                made with respect to the number of Deferred Share Units outstanding
                under
                the DSU Plan. 

            

    

     

    
      	
              11.

            	
              Termination
                of Service.
                At any time after the Termination Date of an Eligible Participant
                to whom
                Deferred Share Units have been granted under the DSU Plan, but no
                later
                than the last business day in December of the first calendar year
                commencing after that Termination Date, on a day (the "Settlement
                Date")
                within such period to be determined by the Eligible Participant or
                his or
                her representative upon at least 10 days prior written notice to
                the
                Company, the Company shall pay to the Eligible Participant a lump
                sum cash
                payment, net of any applicable withholdings, equal to the number
                of
                Deferred Share Units credited to his or her account as of that date
                multiplied by the Fair Market Value of one (1) Common Share on the
                Settlement Date. Alternatively, at his or her sole discretion and
                subject
                to Section 12, the Eligible Participant may request to receive Common
                Shares of the Company, less any applicable withholdings, equal to
                the
                whole number of Deferred Share Units credited to his or her account
                as of
                that date, plus a cash settlement of any fraction of a unit. An Eligible
                Participant shall not be entitled to require payment of any amount
                on
                account of Deferred Share Units credited to such Eligible Participant's
                account prior to his or her Termination Date.

            

    

     

    
      	
              12.

            	
              Shares.
                The Company, in its sole discretion, shall, subject to applicable
                laws and
                any necessary regulatory approvals, including the approval of the
                Toronto
                Stock Exchange, as required, pay out any Common Shares required under
                Section 11 from its treasury or as purchased on the open market,
                or a
                combination of both. The total number of Common Shares reserved for
                issuance to Eligible Participants under this DSU Plan shall not exceed
                500,000 Common Shares. Notwithstanding the foregoing: (i) the number
                of
                Common Shares reserved for issuance to Eligible Participants under
                this
                DSU Plan, together with all Common Shares reserved for issuance under
                all
                of the Company’s other share compensation plans, shall not exceed 10% of
                the total number of outstanding Common Shares of the Company at any
                time,
                and (ii) the number of Common Shares reserved for issuance to any
                one
                Eligible Participant under this DSU Plan shall not, together with
                all
                other Common Shares reserved for issuance to such Eligible Participant
                pursuant to all other share compensation plans of the Company, exceed
                2%
                of the total number of outstanding Common Shares of the Company at
                any
                time.

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

      TM
        BIOSCIENCE CORPORATION

       

      DEFERRED
        SHARE UNIT PLAN

       

      FOR
        NON-EMPLOYEE DIRECTORS AND SAB MEMBERS

       

    

    
      	
              13.

            	
              Transferability
                of Deferred Share Units.
                The rights and interests of an Eligible Participant in respect of
                the
                Deferred Share Units held in such Eligible Participant‘s account shall not
                be transferable or assignable other than by the will or the laws
                of
                succession to the legal representative of the Eligible Participant or,
                subject to applicable law, to a dependant or relation (as that term
                is
                used in paragraph 6801(d) of the Regulations under the Income
                Tax Act
                (Canada)), including without limitation a spouse, of the Eligible
                Participant. 

            

    

     

    
      	
              14.

            	
              No
                Right to Service.
                Neither participation in the DSU Plan nor any action under the DSU
                Plan
                shall be construed to give any Eligible Participant a right to be
                retained
                as a director of the Company or as a member of the SAB, as applicable.
                

            

    

     

    
      	
              15.

            	
              Unfunded
                DSU Plan.
                The DSU Plan shall be unfunded. The Company's obligation hereunder
                shall
                constitute a general, unsecured obligation, payable solely out of
                its
                general assets, and no Eligible Participant or other person shall
                have any
                right to any specific assets of the Company. The Company shall not
                segregate any assets for the purpose of funding its obligations with
                respect to Deferred Share Units credited hereunder. Neither the Company
                nor the Committee shall be deemed to be a trustee of any amounts
                to be
                distributed or paid pursuant to the DSU Plan. No liability or obligation
                of the Company pursuant to the DSU Plan shall be deemed to be secured
                by
                any pledge of, or encumbrance on, any property of the Company or
                any
                affiliate of the Company. 

            

    

     

    
      	
              16.

            	
              No
                Rights to Shares.
                Under no circumstances shall Deferred Share Units entitle an Eligible
                Participant to exercise any voting rights or other rights attaching
                to the
                ownership of Common Shares. 

            

    

     

    
      	
              17.

            	
              Successors
                and Assigns.
                The DSU Plan shall be binding on all successors and assigns of the
                Company
                and an Eligible Participant, including without limitation, the estate
                of
                such    Eligible Participant and the executor, 
                liquidator, administrator or trustee of such estate, or any receiver
                or
                trustee in bankruptcy or representative of the  Eligible
                Participant ‘s creditors. 

            

    

     

    
      	
              18.

            	
              DSU
                Plan Amendment.
                The Board may, in its sole discretion and without the consent of
                any
                Eligible Participant (acting in his or her capacity as a participant
                in
                the DSU Plan) amend the DSU Plan at any time; provided, however,
                that no
                amendment shall reduce the number of Deferred Share Units credited
                to any
                Eligible Participant prior to such amendment. No amendment shall
                be
                effective until all applicable approvals, if any, of regulatory
                authorities and stock exchanges have been obtained.
                

            

    

     

    
      	
              19.

            	
              DSU
                Plan Termination.
                The Board may, in its sole discretion and without the consent of
                any
                Eligible Participant (acting in his or her capacity as a participant
                in
                the DSU Plan), terminate the DSU Plan at any time by giving written
                notice
                thereof to each Eligible Participant who is a participant hereunder.
                Following termination of the DSU Plan, additional Deferred Share
                Units
                shall not be credited to the accounts of Eligible Participant except
                pursuant to Section 9 hereof. Notwithstanding termination of the
                DSU Plan,
                all amounts distributable under the DSU Plan shall be paid to the
                persons
                entitled thereto on the date on which distributions would have been
                made
                had the DSU Plan not been terminated.

            

    

     

    
      	
              20.

            	
              Governing
                Law.
                The validity, construction and effect of the DSU Plan and any actions
                taken or relating to the DSU Plan shall be governed by the laws of
                the
                Province of Ontario and the laws of Canada applicable therein.
                

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
      “A”

     

    ANNUAL
      WRITTEN ELECTION 

     

    TM
      BIOSCIENCE CORPORATION

     

    DEFERRED
      SHARE UNIT PLAN FOR 

     

    NON-EMPLOYEE
      DIRECTORS AND MEMBERS OF THE SAB

     

    Tm
      Bioscience Corporation

    493
      University Avenue

    Suite
      1710

    Toronto,
      Ontario M5G 1Y8

     

    

     

    Attention:
      Chief
      Financial Officer

     

    Dear
      Sirs
      / Mesdames:

     

    Reference
      is made to the Deferred Share Unit Plan (the “DSU
      Plan”)
      of Tm
      Bioscience Corporation (the “Corporation”)
      adopted
      June 2, 2004 with effect from January 1, 2004.

     

    Please
      be
      advised that in connection with my director/SAB compensation for the
[fiscal
      year]
      fiscal
      year of the Corporation, the undersigned hereby irrevocably elects that
      $___________ of such annual compensation be paid in Deferred Share Units under
      the DSU Plan.

     

    I
      hereby
      agree to assist the Corporation in the filing of, and will timely file, all
      reports that I may be required to file under applicable securities
      laws. 

     

    In
      the
      event the undersigned determines, in his or her sole discretion, to receive
      common shares in the capital of the Corporation rather than a lump sum cash
      payment under the DSU Plan, such common shares are to be issued in the following
      registration:

    

    
      	
              
                

              

              (Print
                Director’s Name)

               

            	 	
              
                

              

              (Director’s
                Signature)

               

            
	
              
                

              

              (Address)

               

            	 	
              
                

              

              (Telephone
                Number)

               

            
	
              
 	 	
              
                

              

              (Facsimile
                Number)

               

            
	 	 	
              
                

              

              (E-Mail
                Address)

               

            

    

    

    

    Dated
      at
      __________________, this _______day of _______________, ________.

            (City)         (Day)         (Month)     (Year)

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