Document:

EX-10.2

 Exhibit 10.2  

EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS AGREEMENT made as of the 11th day of August     , 1998. 
 BETWEEN:

 ART D. MEYER, of the City of CALGARY, in the Province of Alberta (hereinafter called the “Executive”) 

and 
 IPL ENERGY
INC., a body corporate under the Canada Business Corporations Act, with offices in the City of Calgary in the Province of Alberta (hereinafter called the “Corporation”) 
 WHEREAS: 
 (a) The Executive is an executive of the Corporation and is considered by the Board of
Directors of the Corporation to be a valued employee of the Corporation and has acquired outstanding and special skills and abilities and an extensive background in and knowledge of the Corporation’s business and the industry in which it is
engaged; 
 (b) The Board of Directors recognizes that it is essential, in the best interests of the Corporation, that the Corporation retain
the continuing dedication of the Executive to his office and employment and that this can best be accomplished if the personal uncertainty facing the Executive in the event of a material change in the ownership or the Executive’s role within
the organization of the Corporation is alleviated; 
 (c) The Board of Directors further believes that the service of the Executive to the
Corporation requires that the Executive receive fair treatment, particularly in the event of a termination of employment or loss of office following a material change in the ownership or the Executive’s role within the organization of the
Corporation where the Executive does not receive an offer of employment within the Corporation, an affiliate, associate or successor of the Corporation comparable to or better than his present employment; 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants herein contained and in consideration of the
Executive remaining in office and in the employment of the Corporation at the present time and throughout the period of a material change of ownership or organization of the Corporation, it is hereby agreed as follows: 

 

	1.	Definitions 

 In this Agreement:

 (a) “affiliate” means: 
  

	 	(i)	one body corporate is an affiliate of another body corporate if one of them is the subsidiary of the other or both are subsidiaries of the same body corporate or each
of them is under the control of the same person; and 

  

	 	(ii)	two bodies corporate that are an affiliate of the same body corporate at the same time are affiliates of each other; 

(b) “associate” has the meaning ascribed to that term in the Canada Business Corporations Act; 

(c) “Compensation Committee” means the Committee of the Board of Directors of the Corporation from time to time appointed to fix
the remuneration of executives of the Corporation or, if such Committee has not been appointed, means the Board of Directors of the Corporation; 
 (d) “constructive dismissal” means, unless consented to by the Executive: 
  

	 	(i)	where the Executive ceases to be an officer of the Corporation, unless the Executive is appointed as an officer of a successor to a material portion of the assets of
the Corporation; 

  
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	 	(ii)	a material decrease in the title, position, responsibilities, powers or reporting relationships of the Executive; or 

 

	 	(iii)	a reduction in the annual salary (excluding bonuses) of the Executive; 

 (e) “control” means the beneficial ownership of the right, whether such ownership is direct or through affiliates or may be exercised pursuant to a right in contract and whether or not combined
with the beneficial ownership of securities of a corporation to which are attached more than fifty percent (50%) of the votes that may be cast to elect directors, to elect a majority of the board of directors of a corporation; 

(f) “person” shall have the meaning ascribed to it in the Canada Business Corporations Act; 

(g) “subsidiary” of a corporation means, at any time, a corporation of which the corporation has control at that time, whether
directly or indirectly through one or more subsidiaries; 
 (h) “supplementary undertakings” refers, for purposes of
Section 2.6(d) of this Agreement, to a commitment given by the Corporation in recognition of the fact that the retirement benefits under the registered pension plans of the Corporation and its affiliates are subject to a maximum pension
limitation as fixed from time to time under the Income Tax Act (Canada) and the rules and regulations promulgated by Revenue Canada, Taxation, from time to time thereunder. To the extent that this limitation applies with respect to the registered
pension plans of the Corporation or its affiliates, the Corporation has undertaken to pay a supplemental retirement allowance sufficient to provide the Executive with an annual pension equal to the annual pension to which the Executive would be
entitled under the registered pension plans of the Corporation and its affiliates if such limitation did not apply to such plans. 
  

	2.	Employment 

  

	2.1	Position. Duties and Responsibilities of Executive 

 The Executive shall have such responsibilities and powers as the Board of Directors or the bylaws of the Corporation or the Executive’s superiors may from time to time prescribe. The Executive shall
devote the whole of his time to the Executive’s duties hereunder and shall use his best efforts to promote the interests of the Corporation. 
  

	2.2	Term of Agreement 

 The
term of this Agreement shall commence on the date hereof, and shall continue in effect to and including the earlier of: 
  

	 	(i)	the date of voluntary retirement of the Executive in accordance with the retirement policies established for senior employees of the Corporation; or

  

	 	(ii)	the voluntary resignation of the Executive which is not a constructive dismissal. 

 

	2.3	Termination of Agreement upon Disability of Executive 

 If at the end of any month the Executive is and has been for a period of more than twelve (12) months unable to perform the duties specified pursuant to this Agreement in the normal and regular
manner due to mental or physical disability, this Agreement may be terminated by the Corporation on thirty (30) days’ written notice. Notwithstanding anything contained in this Section 2.3, the Executive shall be entitled to all
benefits provided under the disability and pension plans of the Corporation or its affiliates applicable to the Executive at the date of this Agreement. 
  

	2.4	Termination of Agreement upon Death of Executive 

 If the Executive dies, this Agreement shall be terminated immediately on the date of the Executive’s death. 

  
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	2.5	Termination of Agreement by the Corporation for Cause 

 The Corporation may terminate this Agreement at any time without notice in the event the Executive shall be convicted of a criminal act of dishonesty resulting or intending to result directly or
indirectly in gain or personal enrichment of the Executive at the expense of the Corporation, or for sufficient cause pursuant to written notice setting forth particulars of such cause. 

 

	2.6	Termination of Employment by the Corporation or the Employee 

  

	 	(a)	Except where such termination is pursuant to Section 2.2(i) or 2.2(ii) due to the voluntary retirement or resignation of the Executive or pursuant to Sections 2.3,
2.4 or 2.5, or except where the Executive is offered a position by an affiliate, associate or successor of the Corporation which, if offered by the Corporation, would not constitute a constructive dismissal, the provisions of this Section 2.6
shall apply: 

  

	 	(i)	where the Corporation terminates the employment of the Executive for any reason; or 

 

	 	(ii)	where the Executive terminates his employment with the Corporation following constructive dismissal of the Executive. For this purpose the Executive may at any time
following the constructive dismissal of the Executive terminate his employment with the Corporation upon thirty (30) days’ prior written notice to the Corporation, 

 

	 	(b)	In the event of termination of employment as provided in Section 2.6(a), the 

 Executive shall be entitled to receive, and the Corporation shall pay to the Executive, a retiring allowance (the “Retiring Allowance”) computed as hereinafter provided, which shall include all
statutory entitlement under labour standards legislation and all common law entitlement to reasonable notice. The Retiring Allowance shall be that amount which is equal to two hundred percent (200%) of the sum of: 

 

	 	(A)	twelve (12) times the gross monthly salary paid to the Executive in the last full month of employment of; and 

 

	 	(B)	the gross amount of the last bonus paid, under an incentive bonus program of the Corporation or any of its affiliated corporations at the date of such payment, to

 the Executive immediately preceding the date of such termination of employment. The Corporation may deduct from
the Retiring Allowance as calculated hereby any amount required to be withheld and remitted to any governmental body or agency by applicable law or regulation. 
  

	(c)	In addition to the retiring allowance calculated in accordance with Section 2.6(b): 

 

	 	(i)	the Executive shall continue to receive health care, dental care, life insurance and accidental death and dismemberment coverage as well as provincial health care
premium subsidies (where applicable) during a period of two (2) years following the date of termination unless the Executive declines coverage based upon coverage through another employer; and 

 

	 	(ii)	the Executive shall also receive, within thirty (30) days of termination, a lump sum payment equivalent to the Corporation’s portion of contributions on
behalf of the Executive to the Corporation’s Employee Savings Plan for a two (2) year period based upon the base salary of the Executive as at the date of termination. 

(d) The Executive will also be entitled to receive on termination the normal and any supplemental pension benefits in effect on the date
of this Agreement according to the terms of the Corporation’s registered pension plans and supplementary undertakings, or the registered pension plans and supplementary undertakings of affiliates of the Corporation or according to similar
provisions of any successor plan, of which the Executive is a member at the date of termination (the “Plans”). The Executive’s total pension entitlement and retirement options will be determined on the basis that the Executive had two
(2) additional years of credited service and age under the Plans at his date of termination of employment (over and above his actual years of credited service as otherwise determined). In addition, such additional years of service shall be
included for the purpose of determining final or best average earnings assuming that the Executive’s monthly rate of salary at the date of 

  
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termination would have continued unchanged during the period of additional service. For plans that include performance bonuses in the definition of pensionable earnings, the average of the
highest three (3) actual bonuses paid in the five (5) years immediately prior to the date of termination shall be used for the purpose of determining final or best average earnings. Any portion of the total pension entitlement of the
Executive not eligible to be paid under provisions of the registered pension plans of the Corporation shall be payable as supplementary payments in accordance with the supplementary undertakings. 

(e) If, at the time of termination of employment as provided in Article 2.6(a), the Executive holds exercisable but unexercised options
for the purchase of shares under any of the Corporation’s or its affiliates’ stock option plans, the Executive shall be entitled to exercise all options so held in accordance with the terms of such plans. If the Executive holds options for
the purchase of shares under any of the Corporation’s or its affiliates’ stock option plans which are not exercisable at the date of termination of employment in circumstances where this Section 2.6(a) applies, the Corporation will
pay to the Executive a cash amount representing the excess, if any, of the fair market value of the shares on the date of termination of employment over the exercise price for such options. Fair market value on the date of termination of employment
shall mean the last Board lot sale price on the Toronto Stock Exchange on the last trading day prior to the day of termination. 
  

	3.	Integration 

 Except for
the Executive’s rights to continued participation in the Corporation’s employee benefit plans, including, without limitation, the Corporation’s or its affiliates’ stock option plans and savings plans and conditions of employment
generally available to other Executives of the Corporation or its affiliates, this Agreement contains the entire agreement between the Parties and supersedes all prior oral and written agreements, understandings, commitments and practices between
the Parties, including all prior employment agreements, whether or not fully performed by the Executive before the date of this Agreement. No amendments to this Agreement may be made except in writing signed by both Parties. 

 

	4.	Confidential Information 

In the event of termination of employment of the Executive, the Executive agrees to keep confidential all information of a confidential or
proprietary nature concerning the Corporation, its subsidiaries and affiliates and their respective operations, assets, finances, business and affairs and further agrees not to use such information for personal advantage, provided that nothing
herein shall prevent disclosure of information which is publicly available or which is required to be disclosed under appropriate statues, rules of law, or legal process. 

 

	5.	Severability 

 The
invalidity and unenforceability of any provision of this Agreement shall not effect the validity or enforceability of any other provisions of this Agreement, which shall remain in full force and effect 

 

	6.	Benefit of Agreement 

This Agreement shall enure to and be binding upon the Corporation and its successors and the Executive and his legal representatives but
otherwise it is not assignable. It shall be a condition of any transfer by the Corporation of the Executive to any affiliate or associate of the Corporation that, on request of the Executive, such affiliate or associate agree to observe all of the
covenants of and be bound by all obligations imposed on the Corporation under this Agreement. The failure to do so shall be deemed to constitute a constructive dismissal of the Executive for the purposes of Section 2.6. 

 

	7.	Choice of Law 

 This
Agreement shall be governed and interpreted in accordance with the laws of the Province of Alberta, which Province shall be the sole and proper forum with respect to any suits brought with respect to this Agreement. 

  
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	8.	Copy of Agreement 

 The
Executive hereby acknowledges having received a copy of this Agreement duly signed by the Corporation. 
 IN WITNESS WHEREOF the
parties hereto have duly executed and delivered this Agreement. 
  

					
			
	/S/ ELEANOR COWLES	 		 	/S/ ART D. MEYER
	Witness	 		 	Executive 

  

			
	IPL ENERGY INC.
		
	Per: 	 	/S/ BRIAN F. MACNEILL
		 	President & Chief Executive Officer

  
 5EX-10.40

 Exhibit 10.40 

ENBRIDGE INC. 
 PERFORMANCE STOCK OPTION PLAN (2007), as amended and restated (2011) and as further amended (2012) 
  

	1.	PURPOSE 

 The
purpose of the Performance Stock Option Plan (2007), as amended and restated (the “Plan”) is to: 
  

	 	(a)	focus Participants on the attainment of the Corporation’s long-term strategy and share price appreciation; 

 

	 	(b)	assist in attracting, retaining, engaging and rewarding senior executives of the Corporation and its Subsidiaries; and 

 

	 	(c)	provide an opportunity for Participants to earn competitive total compensation based on achieving the performance goals set out in this Plan. 

 

	2.	DEFINED TERMS 

 In
this Plan (including any schedules to this Plan): 
  

	 	(a)	“affiliate” has the meaning ascribed to that term in the Securities Act (Alberta); 

 

	 	(b)	“associate” has the meaning ascribed to that term in the Securities Act (Alberta); 

 

	 	(c)	“Blackout Period” means a period of time imposed by the Corporation where Participants holding Options may not trade in securities of the Corporation;

  

	 	(d)	“Board” means the Board of Directors of the Corporation; 

  

	 	(e)	“CEO” means the Chief Executive Officer of the Corporation; 

 

	 	(f)	“Change of Control” means: 

  

	 	(i)	the sale to a person or acquisition by a person not affiliated with the Corporation or its Subsidiaries of assets of the Corporation or its Subsidiaries having a value
greater than 50% of the fair market value of the assets of the Corporation and its Subsidiaries determined on a consolidated basis prior to such sale whether such sale or acquisition occurs by way of reconstruction, reorganization, recapitalization,
consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise; 

  

	 	(ii)	any change in the holding, direct or indirect, of shares of the Corporation by a person not affiliated with the Corporation as a result of which such person, or a group
of persons, or persons acting in concert, or persons 

	 	associated or affiliated with any such person or group within the meaning of the Securities Act (Alberta), are in a position to exercise effective control of the
Corporation whether such change in the holding of such shares occurs by way of takeover bid, reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise; and for the purposes of
this Plan, a person or group of persons holding shares or other securities in excess of the number which, directly or following conversion thereof, would entitle the holders thereof to cast 20% or more of the votes attaching to all shares of the
Corporation which, directly or following conversion of the convertible securities forming part of the holdings of the person or group of persons noted above, may be cast to elect directors of the Corporation shall be deemed, other than a person
holding such shares or other securities in the ordinary course of business as an investment manager who is not using such holding to exercise effective control, to be in a position to exercise effective control of the Corporation;

	 	(iii)	any reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, merger, transfer, sale or other transaction involving the Corporation
where shareholders of the Corporation immediately prior to such reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, merger, transfer, sale or other transaction hold less than 50% of the shares of the
Corporation or of the continuing corporation following completion of such reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, transfer, sale or other transaction; 

 

	 	(iv)	the Corporation ceases to be a distributing corporation as that term is defined in the Canada Business Corporations Act; 

 

	 	(v)	any event or transaction which the Board, in its discretion, deems to be a Change of Control; or 

 

	 	(vi)	Incumbent Directors ceasing to be a majority of the Board; 

 provided that: 
  

	 	(i)	any transaction whereby shares held by shareholders of the Corporation are transferred or exchanged for units or securities of a trust, partnership or other entity
which trust, partnership or other entity continues to own directly or indirectly all of the shares of the Corporation previously owned by the shareholders of the Corporation and the former shareholders of the Corporation continue to be beneficial
holders of such units or securities in the same proportions following the transaction as they were beneficial holders of shares of the Corporation prior to the transaction will be deemed not to constitute a change of control; and

  

	 	(ii)	any change of control initiated or commenced by the Board (and whether or not such transaction was initiated or commenced by the Board shall be conclusively determined
by the Board) will not constitute a change of control for purposes of this Plan; 

  

	 	(g)	“Code” means the United States Internal Revenue Code of 1986, as amended; 

 

	 	(h)	“constructive dismissal” means, unless consented to by the Participant, any action that constitutes constructive dismissal of the Participant,
including without limiting the generality of the foregoing: 

  

	 	(i)	where the Participant ceases to be an officer of the Corporation, unless the Participant is appointed as an officer of a successor to a material portion of the assets
of the Corporation; 

  

	 	(ii)	a material decrease in the title, position, responsibilities, powers or reporting relationships of the Participant; 

 

	 	(iii)	a reduction in the base salary (excluding any annual incentive bonus) of the Participant; or 

 

	 	(iv)	any material reduction in the value of the Participant’s employee benefits, plans and programs (other than any annual incentive bonus); 

 

	 	(i)	“Corporation” means Enbridge Inc., and includes any successor entity thereto; 

 

	 	(j)	“Director” means a director of the Corporation; 

  

	 	(k)	“Fair Market Value” means, as of a particular day, the weighted average of the board lot trading prices per Share on the Toronto Stock Exchange, or the
New York Stock Exchange, for the last five Trading Days immediately prior to such day; 

  

	 	(l)	“For Cause” includes “just cause” as defined in the common law and also includes any circumstance in which the Participant shall have been
convicted of a criminal act of dishonesty resulting or intending to result directly or indirectly in gain or personal enrichment of the Participant; 

  

	 	(m)	“Grant Date” has the meaning set forth in Section 7(c); 

 

	 	(n)	“Grant Price” has the meaning set forth in Section 7(c); 

 

	 	(o)	“HRC Committee” means the Human Resources & Compensation Committee of the Board, established and duly authorized to act in accordance with the
By-Laws of the Corporation; 

  
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	 	(p)	“Incumbent Director” means any member of the Board who was a member of the Board immediately prior to the occurrence of the transaction, elections or
appointments giving rise to a Change of Control and any successor to an Incumbent Director who was recommended for election at a meeting of shareholders of the Corporation, or elected or appointed to succeed any Incumbent Director, by the
affirmative vote of the Directors, which affirmative vote includes a majority of the Incumbent Directors then on the Board; 

  

	 	(q)	“Insider” means: 

  

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

  

	 	(ii)	an associate of any person who is an insider by virtue of (i) above; 

  

	 	(r)	“Notice Period” means the notice period for termination of employment agreed to between the Corporation (or its Subsidiary) and the Participant, or, in
the absence of any such agreement, the notice period required under applicable law; 

  

	 	(s)	“Option” means an Option to purchase Shares granted to the Participant in accordance with the terms and conditions of this Plan;

  

	 	(t)	“Participant” means any employee, including an officer, of the Corporation or a Subsidiary who has been designated by the HRC Committee to receive and
be granted Options in accordance with Section 5; 

  

	 	(u)	“Performance Vesting Requirements” has the meaning ascribed to that term in Section 7(b)(ii); 

 

	 	(v)	“Plan” means the Performance Stock Option Plan (2007) of the Corporation described in this document, and as the same may be duly amended or varied
from time to time in accordance with the provisions of this Plan; 

  

	 	(w)	“Pro-rated Option” means a grant of an Option where the number of Shares subject to the Option has been reduced in accordance with Section 8(b),
(d) or (e); 

  

	 	(x)	“Retirement Plan” means a pension plan of the Corporation established or in effect from time to time which applies when an employee retires from the
employment of the Corporation or any of its Subsidiaries; 

  

	 	(y)	“Retirement Proration Period” has the meaning ascribed to that term in Section 8(e). 

 

	 	(z)	“Share” means a common share in the capital of the Corporation; 

 

	 	(aa)	“Share Reserve” has the meaning ascribed to that term in Section 4; 

 

	 	(bb)	“Subsidiary” means: 

  

	 	(i)	any corporation that is a subsidiary (as such term is defined in the Canada Business Corporations Act) of the Corporation, as such provision is from time to time
amended, varied or re-enacted; 

  

	 	(ii)	any partnership or limited partnership that is controlled by the Corporation (the Corporation will be deemed to control a partnership or limited partnership if the
Corporation possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such partnership or limited partnership, whether through the ownership of voting securities, by contract or otherwise); and

  

	 	(iii)	subject to regulatory approval, any corporation, partnership, limited partnership, trust, limited liability company or other form of business entity that the HRC
Committee determines ought to be treated as a subsidiary for purposes of the Plan, provided that the HRC Committee shall have the sole discretion to determine that any such entity has ceased to be a subsidiary for purposes of the Plan;

  

	 	(cc)	“Term” has the meaning ascribed to that term in Section 7; 

 

	 	(dd)	“Time Vesting Period” means the aggregate number of months under the option grant that must pass before all vesting criteria based upon the passage of
time have been met; 

  
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	 	(ee)	“Time Vesting Requirements” has the meaning ascribed to that term in Section 7(b)(i); 

 

	 	(ff)	“Trading Day” means any day on which the Toronto Stock Exchange or the New York Stock Exchange, as the case may be, is open for trading; and

  

	 	(gg)	“United States Incentive Stock Option” has the meaning set forth in Section 9(a). 

 

	3.	GOVERNANCE 

  

	 	(a)	Subject to any determinations or approvals required to be made by the Board, the HRC Committee will administer the Plan in its sole discretion. The HRC Committee shall
have the full power and sole responsibility to interpret the provisions of the Plan and to make regulations and formulate administrative provisions for its implementation, and to make such changes in the regulations and administrative procedures as,
from time to time, the HRC Committee deems proper and in the best interests of the Corporation. Such regulations and provisions may include the delegation to any Director or Directors or any officer or officers of the Corporation or its Subsidiaries
of such administrative duties and powers of the HRC Committee as it may, in its sole discretion, deem fit. The determinations of the HRC Committee in the administration of the Plan shall be final and conclusive. 

 

	 	(b)	Prior to the CEO requesting any grants under the Plan, the CEO will recommend to the HRC Committee for its approval the performance measures and the levels of
achievement for 100% of the Options to vest and the level below which no Options will vest. The HRC Committee is authorized to approve, for each Option granted under the plan, the terms for vesting any Option granted under the Plan. The HRC
Committee shall also have the authority to approve any amendments to such performance measures and the expected levels of performance. 

  

	 	(c)	Subject to Section 13, the HRC Committee may waive any restrictions with respect to participation in the Plan or vesting with respect to any specific Participants
where, in the opinion of the HRC Committee, it is reasonable to do so and such waiver does not prejudice the rights of the Participant under the Plan. 

  

	 	(d)	Subject to Section 13, the HRC Committee may amend the Plan for any general administrative matters, correct, remedy or reconcile any errors, inconsistencies or
ambiguities, cashless exercise, vesting or termination provisions or any performance measures and recommend to the Board for its approval any other amendments. 

 

	 	(e)	Grants to Participants will be made in the sole discretion of the HRC Committee. 

 

	4.	SHARES AND SHARE RESERVE 

 The Shares subject to the Options and other provisions of the Plan shall be authorized and unissued common shares of the Corporation. The total number of Shares initially reserved to be issued under the
Plan and the Incentive Stock Option Plan (2007) (and its predecessors) shall not exceed in the aggregate 16,500,000 (the “Initial Share Reserve”), subject to the adjustment provisions set forth in Section 10. The total
number of Shares added to the Initial Share Reserve and reserved to be issued under the Plan (and its predecessors) and the Incentive Stock Option Plan (2007) shall not exceed in the aggregate 9,500,000 Shares (the “Additional Share
Reserve” and, together with the Initial Share Reserve, the “Share Reserve”), subject to the adjustment provisions set forth in Section 10. Shares subject to Options which are terminated, cancelled or expire prior to
exercise shall be available for the grant of further Options hereunder. In addition, the difference between (i) the number of Shares in respect of which an Option is being exercised and (ii) the number of Shares received under the Share
Settled Option (as provided in Section 7(e)) shall be deemed not to be issued under the Plan and shall be available for the grant of further Options hereunder. 
 Any changes to the Share Reserve, including the Additional Share Reserve, shall be recommended by the CEO to the HRC Committee for its review and recommendation to the Board. Any increase in the Share
Reserve, including the Additional Share Reserve, shall be subject to approval of the shareholders of the Corporation in accordance with the rules of the Toronto Stock Exchange. 

  
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	5.	PARTICIPATION AND GRANT OF OPTIONS 

  

	 	(a)	The CEO may from time to time recommend to the HRC Committee employees of the Corporation or its Subsidiaries, for participation in the Plan, the extent and terms of
their participation and the performance measures applicable thereto. The HRC Committee shall consider such recommendations and may approve such recommended employees for participation in the Plan, the extent and terms of their participation and the
performance measures applicable thereto, subject to the following: 

  

	 	(i)	the total number of Shares reserved for issuance to any one Participant pursuant to all security based compensation arrangements of the Corporation shall not exceed in
the aggregate 5% of the number of Shares outstanding at the time of reservation; 

  

	 	(ii)	the total number of Shares reserved for issuance to Insiders pursuant to all security based compensation arrangements of the Corporation shall not exceed 10% of the
number of Shares outstanding at the time of reservation; 

  

	 	(iii)	the total number of Shares issued to Insiders pursuant to all security based compensation arrangements of the Corporation within any one-year period shall not exceed
10% of the number of Shares outstanding at the time of issuance (excluding any other shares issued under all security based compensation arrangements of the Corporation during such one-year period); and 

 

	 	(iv)	the total number of Shares issued to any one Insider and such Insider’s associates (as defined in the Securities Act (Alberta)) pursuant to all security
based compensation arrangements of the Corporation within any one-year period shall not exceed 5% of the number of Shares outstanding at the time of issuance (excluding any other shares issued under all security based compensation arrangements of
the Corporation during such one-year period). 

 For the purposes of (ii), (iii) and (iv) above, any
entitlement to acquire Shares granted pursuant to the Plan prior to the Participant becoming an Insider are to be excluded from the calculation. 
  

	 	(b)	The CEO: 

  

	 	(i)	may issue inducement grants to any new employee of the Corporation or a Subsidiary, other than new employees that report directly to the CEO and may, with the approval
of the HRC Committee issue inducement grants to new employees that report directly to the CEO, provided that the number of Options comprising any such grant shall not exceed the lesser of: (i) the amount provided for in the policies of the HRC
Committee from time to time; and (ii) 2% of the number of outstanding Shares (on a non-dilutive basis) at the applicable date, and such inducement grant will be reported to the HRC Committee at the next committee meeting; and

  

	 	(ii)	shall recommend to the HRC Committee specific grants to Participants who report directly to the CEO and the total grants for all other levels of Participants.

  

	 	(c)	The HRC Committee shall: 

  

	 	(iii)	determine and recommend to the Board, for its approval, the grant date of Options; 

 

	 	(iv)	determine and recommend to the Board, for its approval, the grants to be made to the CEO; and 

 

	 	(v)	review and recommend to the Board, for its approval, any other grants made pursuant to the Plan. 

 

	 	(d)	Directors who are not full-time employees of the Corporation or a Subsidiary shall not be eligible to become Participants. 

 

	 	(e)	 A designated employee shall have the right not to participate in the Plan, and any decision not to participate shall not affect his or her employment
with the Corporation or a Subsidiary. Participation in the Plan does not confer upon the Participant any right to continued employment with the Corporation or a Subsidiary. 

  
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	6.	PERFORMANCE MEASURES 

 The CEO shall advise the Chair of the HRC Committee upon the Human Resources, Accounting and Finance Groups and the CEO jointly concurring that the performance measures for an Option grant have been
achieved, and the number of Options that have become exercisable as a result. 
  

	7.	OPTION TERMS 

  

	 	(a)	Term 

 The term
(“Term”) during which an Option shall be exercisable shall be fixed by the HRC Committee at the time of grant, but in no case shall a term exceed 10 years, and each Option shall be subject to earlier termination, as provided in
Section 8; provided that when the Term expires in a Blackout Period the Term shall be extended to a date that is five Trading Days after the end of the Blackout Period. 

 

	 	(b)	Exercise 

 An Option shall
vest and become exercisable in accordance with the terms set by the HRC Committee at the time of grant. The Option shall vest and become exercisable when: 
  

	 	(i)	the Time Vesting Period, if any, established by the HRC Committee for an Option grant has elapsed (the “Time Vesting Requirements”); and

  

	 	(ii)	the performance measures in Section 6 have been met or have been deemed to be met (the “Performance Vesting Requirements”);

 provided that the Time Vesting Requirements shall be deemed to be met in respect of any Pro-rated Option. A
Participant may exercise vested instalments of his or her Option in whole or in part at any time and from time to time during the Term. 
  

	 	(c)	Grant and Price 

 Subject
to the following sentence, the price (the “Grant Price”) at which Shares will be issued to a Participant pursuant to the Option shall be determined on the date (the “Grant Date”) that the Option is awarded and the
Grant Price shall not be less than 100% of the Fair Market Value determined as at the Grant Date. If an Option is awarded at a time when a Blackout Period is in effect, the Grant Price of the Option will be set on and the Grant Date will be the
sixth Trading Day following the termination of the Blackout Period; provided that where another Blackout Period commences within such six Trading Days, the determination of the Grant Price and the Grant Date will be further postponed and will be set
as provided above in this sentence (and so on from time to time). 
  

	 	(d)	Payment 

 Participants
shall be required to make payment in full for any Shares purchased upon the exercise, in whole or in part, of any Option granted under the Plan and no Shares shall be issued until full payment has been made. Payment must be in the currency of Canada
or the United States of America. 
  

	 	(e)	Share Settled Options 

 If
approved by the Board, in lieu of paying the Grant Price for Shares to be issued pursuant to such exercise, the Participant may elect to acquire the number of Shares determined by subtracting the Grant Price from the Then Fair Market Value of the
Shares on the date of exercise, multiplying the difference by the number of Shares in respect of which the Option was otherwise being exercised and then dividing that product by the Then Fair Market Value of the Shares. For this purpose, the
“Then Fair Market Value” means the price at which the Shares could be sold or are sold on the Toronto Stock Exchange or the New York Stock Exchange on the date of exercise of the Option. In such event, the number of Shares as so
determined (and not the number of Shares to be issued under the Option) will be deemed to be issued under the Plan. 

  
 6 

	 	(f)	Share Ownership Guidelines 

If on the exercise of any Options the number of Shares held by the Participant is less than the number of Shares to be held by him or her
pursuant to any share ownership guidelines of the Corporation in effect from time to time and applicable to such Participant, then the Participant shall be required to retain Shares acquired on exercise of Options (net of Shares that are required to
be sold by the Participant to meet any tax liabilities arising on exercise of the Options) to meet the requirements of such share ownership guidelines. 
  

	 	(g)	Transferability 

 Options
are not transferable or assignable other than by will or according to the laws of descent and distribution. 
  

	8.	TERMINATION 

  

	 	(a)	Voluntary Termination  

If a Participant voluntarily terminates his or her employment with the Corporation or a Subsidiary, all unexercised and vested Options
held by such Participant as at the last day of such Participant’s employment with the Corporation (or its Subsidiary) shall remain exercisable until the earlier of: (i) 30 days following the Participant’s last day of employment with
the Corporation (or its Subsidiary); and (ii) the expiry of the Term of the Options; following which all unexercised and vested Options shall be cancelled. 
 All unvested Options held by the Participant as at the last day of the Participant’s employment with the Corporation (or its Subsidiary) shall be cancelled on the Participant’s last day of
employment with the Corporation (or its Subsidiary). 
  

	 	(b)	Involuntary Termination Not For Cause 

 If the employment of a Participant is terminated by the Corporation or a Subsidiary other than For Cause, all unexercised and vested Options held by such Participant as at the Participant’s last day
of employment with the Corporation (or its Subsidiary) shall remain exercisable until the earlier of: (i) 30 days following the expiration of any Notice Period; and (ii) the expiry of the Term of the Options; following which all
unexercised and vested Options shall be cancelled. 
 A number of unvested Options held by the Participant on the last day of
employment with the Corporation (or its Subsidiary) shall continue to vest in accordance with the Plan. The number of unvested Options that shall continue to vest shall be prorated based upon the number of full calendar months of active employment
of the Participant in the Time Vesting Period. Such number of Pro- rated Options shall be calculated by multiplying the total number of unvested Options held by the Participant on the last day of employment by a fraction the numerator of which is
the number of full calendar months of active employment of the Participant in the Time Vesting Period (and for this purpose, the Notice Period shall be counted as active employment) and the denominator of which is the total number of months in the
Time Vesting Period. Subject to the Performance Vesting Requirements being satisfied, such number of Pro-rated Options shall be exercisable until the earlier of: (i) 30 days following the expiry of the Notice Period; and (ii) the expiry of
the Term of the Options; following which all unexercised and vested Options and all unvested Options shall be cancelled. 
 For
the purposes of this subsection 8(b), if a Participant’s employment terminates due to the constructive dismissal of the Participant, such termination shall be treated as an involuntary termination by the Corporation or a Subsidiary other than
For Cause. 
  

	 	(c)	Involuntary Termination For Cause 

 If the employment of a Participant is terminated by the Corporation or a Subsidiary For Cause, all Options held by such Participant as at the date of such termination, whether vested or unvested, shall be
cancelled on the Participant’s last day of active employment with the Corporation (or its Subsidiary). 

  
 7 

	 	(d)	Death 

 If the employment
of a Participant with the Corporation or a Subsidiary is terminated as a result of the death of such Participant, all unexercised and vested Options held by such Participant at the Participant’s date of death shall remain exercisable until the
earlier of: (i) 12 months following the date of such Participant’s death; and (ii) the expiry of the Term of the Options; following which all unexercised and vested Options shall be cancelled. 

A number of unvested Options held by the Participant on the date of death of the Participant shall vest and be exercisable on the
assumption that the Performance Vesting Requirements have been met. The number of unvested Options that shall vest on the date of the Participant’s death shall be prorated based upon the number of full calendar months of active employment of
the Participant in the Time Vesting Period. Such number of Pro-rated Options shall be calculated by multiplying the total number of unvested Options held by the Participant on the last day of employment by a fraction the numerator of which is the
number of full calendar months of active employment of the Participant in the Time Vesting Period and the denominator of which is the total number of months in the Time Vesting Period. Such number of Pro-rated Options shall be fully vested and be
exercisable until the earlier of: (i) 12 months following the date of such Participant’s death; and (ii) the expiry of the Term of the Options; following which all vested and unexercised Options shall be cancelled. 

 

	 	(e)	Retirement  

 If a
Participant has attained the age of 55 and retires from his or her employment with the Corporation or a Subsidiary pursuant to a Retirement Plan and he or she is eligible for benefits under a Retirement Plan, the number of Options in a grant of
Options shall be prorated based upon the number of full calendar months of active employment of the Participant in the period commencing January 1 of the year in which the Grant Date occurred and ending December 31 of the year prior to the
year in which the Time Vesting Period ends (such period, the “Retirement Proration Period”). Such number of Pro-rated Options shall be calculated by multiplying total number of Options granted to the Participant by a fraction the
numerator of which is the number of full calendar months of active employment of the Participant in the Retirement Proration Period and the denominator of which is the total number of months in the Retirement Proration Period. Subject to the
Performance Vesting Requirements being satisfied, such number of Pro-rated Options shall be exercisable until the later of: (i) three years following the date of such Participant’s retirement and (ii) 30 days after the end of the
period in which the Performance Vesting Requirements are permitted to be calculated under the grant of the Options; provided that if such later date shall occur after the expiry of the Term, such Pro-rated Options shall only be exercisable until the
expiry of the Term; following which all unexercised and vested Options and all unvested Options shall be cancelled. 
  

	 	(f)	Disability 

 If the
employment of a Participant with the Corporation (or a Subsidiary) is terminated as a result of the “disability” of such Participant, all Options held by such Participant on the last day of the Participant’s employment with the
Corporation (or its Subsidiary) shall continue in accordance with the terms of such Options as if the Participant continued to be actively employed by the Corporation (or its Subsidiary). 

For purposes of the foregoing, a Participant shall be considered to be suffering from a “disability” if he or she is eligible
for benefits under a Corporation sponsored long term disability benefits plan. 
  

	 	(g)	Leaves of Absence 

 If a
Participant is on a parental or other leave of absence approved by the Corporation or a Subsidiary for a period of greater than three months, all unexercised and vested Options held by such Participant as at the Participant’s last day of active
employment prior to such parental or other leave shall continue to be exercisable in accordance with the terms of such Options, following which all unexercised and vested Options held by such Participant shall be cancelled. All unvested Options held
by such 

  
 8 

 
Participant as at the Participant’s last day of active employment prior to such parental or other leave shall continue to vest during such Participant’s leave, provided that if the
Participant does not return to active employment by the end of the leave, all vested and unvested Options as at the end of the leave of absence shall be treated in accordance with the second paragraph of subsection 8(a) on the assumption that the
Participant’s last day of employment is the end of the leave of absence. Unless otherwise determined by the HRC Committee, no additional Option grants shall be made to any Participant during such Participant’s leave of absence. 

 

	 	(h)	Secondments 

 If a
Participant is seconded to an entity other than a Subsidiary, the HRC Committee (in the case of Participants that are Corporate Leadership Team members) and the CEO (in the case of all other Participants) shall determine the manner in which all
Options, vested and unvested, held by the Participant as at the date of the secondment shall be treated under the Plan. 
  

	 	(i)	Change of Control 

 In the
event of a Change of Control, all unvested Options held by a Participant shall vest on a date, as determined by the HRC Committee, that is not more than 30 days and not less than five days prior to the date of the Change of Control and the
performance measures shall be deemed to be met. In connection with any Change of Control, the HRC Committee will allow, where necessary in the circumstances, for the conditional vesting and exercise of Options and where such conditions are not met
and the Change of Control does not occur the Options shall continue as if no vesting or exercise had occurred. 
  

	 	(j)	No Future Grants; No Cash Payment 

 Upon the occurrence of any of the foregoing events listed under subsections 8(a) to (f) in respect of a Participant, such Participant shall not be entitled to receive any further Option grants or the
value of any grants foregone as a consequence of any such event and, except as set forth herein, shall not be entitled to receive any cash payment for the value of any unexercised Options, vested or unvested, held by the Participant as at the date
of occurrence of such event. 
  

	9.	TERMS AND CONDITIONS OF UNITED STATES INCENTIVE STOCK OPTIONS 

 

	 	(a)	Designated employees of any Subsidiary located in the United States of America may be granted “incentive stock options” within the meaning of Section 422
of the Code (“United States Incentive Stock Options”). The maximum number of Shares that may be issued under the Plan as United States Incentive Stock Options shall not be greater than 2,000,000 Shares. An Option that is a United
States Incentive Stock Option will be designated as such in the applicable Option agreement and no Option that is not so designated will be treated as a United States Incentive Stock Option under the Plan. 

 

	 	(b)	No United States Incentive Stock Options shall be granted to any Participant if, as a result of such grant, the aggregate Fair Market Value (as of the time the Option
is proposed to be granted) of the Shares covered by all the United States Incentive Stock Options granted under this Plan, and any other plan of the Corporation or any Subsidiary, to the Participant, which are or will become exercisable for the
first time by the Participant in a single calendar year, exceeds US $100,000 or such amount as shall be specified in Section 422 of the Code. 

  

	 	(c)	The exercise price of a United States Incentive Stock Option shall not be less than 100% of the Grant Price as at the Grant Date. 

 

	 	(d)	 No United States Incentive Stock Option may be granted under the Plan to any individual who, at the time the option is granted, owns stock possessing
more than 10% of the total combined voting power of all classes of stock of his or her employer corporation or of its parent or subsidiary corporations (as such ownership may be determined for purposes of Section 422(b)(6) of the Code), unless
(i) at the 

  
 9 

	 	
time such United States Incentive Stock Option is granted, the Grant Price is at least 110% of the Fair Market Value of the Shares subject thereto and (ii) the United States Incentive Stock
Option by its terms is not exercisable after the expiration of five years from the date granted. 

  

	 	(e)	Notwithstanding the provisions of this Section 7, exercise periods for United States Incentive Stock Options on the happening of an event described in Sections
7(b), (d), (e) and (f) shall be as set forth in the applicable Option agreement. 

  

	 	(f)	United States Incentive Stock Options shall otherwise be subject to the terms and conditions as set forth in this Plan. 

 

	10.	ADJUSTMENTS 

  

	 	(a)	In the event that the number of outstanding Shares is increased or decreased, or changed into, or exchanged for a different number or kind of shares or other securities
of the Corporation or another corporation, whether through a stock dividend, stock split, consolidation, recapitalization, amalgamation, reorganization, arrangement or other transaction effected without receipt of consideration, the HRC Committee or
the Board may make appropriate adjustment in the number or kind of shares or securities available for Options pursuant to the Plan and, as regards Options previously granted or to be granted pursuant to the Plan, in the number and kind of shares or
securities and the purchase price thereof and the manner in which installments of the Options vest and become exercisable. 

  

	 	(b)	The appropriate adjustments in the number of Shares under Option, the Grant Price per share and the period during which each Option may be exercised may be made by the
Board in its discretion and in order to give effect to the adjustments in the number of shares of the Corporation resulting from the implementation and operation of the Shareholder Rights Plan Agreement dated as of November 9, 1995 between the
Corporation and CIBC Mellon Trust Company, as amended, restated or revised from time to time. 

  

	11.	EFFECT OF REORGANIZATION 

 In the event of any take-over bid or any proposal, offer or agreement for a merger, consolidation, amalgamation, arrangement, recapitalization, liquidation, dissolution or similar transaction or other
business combination that is not a Change of Control in which the Corporation is not the surviving or continuing corporation (a “Reorganization”), all Options granted hereunder and outstanding on the date of such Reorganization,
shall be assumed by the surviving or continuing corporation, provided that the HRC Committee or the Board may make appropriate adjustment in the manner in which installments of the Options become exercisable prior to such assumption. If, in the
event of any such Reorganization, provision for such assumption satisfactory to the HRC Committee or the Board is not made by the surviving or continuing corporation, each Participant shall have distributed to him or her within 30 days after the
Reorganization in full satisfaction in the case of an unexpired Option, or part thereof, whether or not exercisable, cash representing the excess, if any, of the Fair Market Value of the Shares determined as at the third Trading Day immediately
preceding the closing date of such Reorganization over the exercise price of such Option (less applicable tax withholdings). 
  

	12.	TAXES AND REPORTING 

Notwithstanding anything else contained herein, each Participant shall be responsible for the payment of all applicable taxes, including,
but not limited to, income taxes payable in connection with the exercise of any Options under the Plan and the Corporation, its employees and agents shall bear no liability in connection with the payment of such taxes.

  
 10 

	13.	AMENDMENT OF THE PLAN 

 The HRC Committee may at any time recommend to the Board for its approval the revision, suspension or discontinuance of this Plan in whole or in part. The Board may also at any time amend, revise or
repeal any terms of this Plan and any Option granted under this Plan (any such change, an “amendment”) without obtaining approval of the shareholders. Notwithstanding the foregoing, the Corporation will obtain the approval of the
shareholders of the Corporation for an amendment relating to: 
  

	 	(a)	the maximum number of shares reserved for issuance under the Plan; 

  

	 	(b)	a reduction in the Grant Price for any Options; 

  

	 	(c)	the cancellation of any Options and the reissue of or replacement of such Options with Options having a lower Grant Price; 

 

	 	(d)	an extension to the term of any Option; 

  

	 	(e)	any change allowing other than full-time employees of the Corporation or a Subsidiary to become Participants in the Plan; 

 

	 	(f)	any change whereby Options would become transferable or assignable other than by will or according to the laws of descent and distribution; or 

 

	 	(g)	any amendment to this Section 13. 

  

	14.	CONFLICT WITH WRITTEN EMPLOYMENT AGREEMENT 

 In the event of a conflict between the terms of this Plan and the terms of any written employment agreement between a Participant and the Corporation, the terms of the written employment agreement shall
prevail. 
  

	15.	EFFECTIVE DATE 

The Plan shall take effect on January 1, 2007, provided that any Options issued under this Plan may not be exercised until this Plan
has been approved by the shareholders of the Corporation in accordance with the rules of the Toronto Stock Exchange); provided further that any Options issued under this Plan pursuant to the Additional Share Reserve may not be exercised until the
shareholders of the Corporation approve the provisions of Section 4 providing for the Additional Share Reserve. On the effective date, the application of the Incentive Stock Option Plan (2002) (the “Prior Plan”) to
performance Options shall be discontinued, except with respect to unexercised performance Options outstanding under the Prior Plan. 

  
 11

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