Document:

Untitled Page

		
			

				

				

				Exhibit 10.1

				

				

			

		

		
			ACQUISITION OF DAMAGE ASSESSMENT TECHNOLOGIES, INC 

						by

						MATERIAL TECHNOLOGIES, INC

					

					

					AGREEMENT AND PLAN OF ACQUISITION

					

					

				

		

		
			This Agreement and Plan of Acquisition (“Agreement”) is entered into by and between Damage Assessment Technologies, Inc, a Florida corporation (“DATI”), UTEK CORPORATION, a Delaware corporation (“UTEK”), and Material Technologies, Inc, a Delaware corporation (“MTNA”).

				

				WHEREAS, UTEK owns 100% of the issued and outstanding shares of common stock of DATI (“DATI Shares”);

				

				WHEREAS, before the Closing Date, DATI will acquire the license for the fields of use as described in the License Agreement which is attached hereto as part of Exhibit A and made a part of this Agreement  and the rights to develop and market a patented and proprietary technology for the fields of uses specified in the License Agreement (Technology);

				

				WHEREAS, the parties desire to provide for the terms and conditions upon which DATI will be acquired by MTNA in a stock‐for‐stock exchange (“Acquisition”) in accordance with the respective corporation laws of their state, upon consummation of which all DATI Shares will be owned by MTNA, and all issued and outstanding DATI Shares will be exchanged for the Common Stock of MTNA with terms and conditions as set forth more fully in this Agreement; and

				

				WHEREAS, for federal income tax purposes, it is intended that the Acquisition qualifies within the meaning of Section 368 (a)(1)(B) of the Internal Revenue Code of 1986, as amended (“Code”).

				

				NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are by this Agreement acknowledged, the parties agree as follows:

				

			

		

		
			ARTICLE 1

				THE STOCK-FOR-STOCK ACQUISITION

					

				

		

		
			1.01    The Acquisition

					

				          (a)       Acquisition Agreement.  Subject to the terms and conditions of this Agreement, at the Effective Date, as defined below, all DATI Shares shall be acquired from UTEK by MTNA in accordance with the respective corporation laws of their states and the provisions of this Agreement and the separate corporate existence of DATI, as a wholly-owned subsidiary of MTNA, shall continue after the closing.

				

				          (b)       Effective Date. The Acquisition shall become effective (“Effective Date”) upon the execution of this Agreement and closing of the transaction.

				

				

				

				

				

			

		

		
			Page 1 of 17

		

		
			

			

			

			

			

			

			

			

			1.02   The Consideration.

				

			          Exchange of Stock. At the Effective Date, by virtue of the Acquisition, all of the DATI Shares that are issued and outstanding at the Effective Date shall be exchanged for 7,500,000 unregistered shares of common stock of MTNA

			

			

			

		

		
				
						Shareholder

						
						Number of Common MTNA Shares

					
	
						UTEK Corporation

						
						7,125,000

					
	
						Aware Capital Consultants

						
						375,000

					

			

		

		
			1.03   Effect of Acquisition.

					

				          (a)       Rights in DATI Cease. At and after the Effective Date, the holder of each certificate of common stock of DATI shall cease to have any rights as a shareholder of DATI.

				

				          (b)       Closure of DATI Shares Records. From and after the Effective Date, the stock transfer books of DATI shall be closed, and there shall be no further registration of stock transfers on the records of DATI.

				

				1.04    Closing. Subject to the terms and conditions of this Agreement, the Closing of the Acquisition shall be the date of the last executed signature affixed to this Agreement, but in no event later than April 30, 2007.

				

			

		

		
			ARTICLE 2

					REPRESENTATIONS AND WARRANTIES

					

				

		

		
			2.01    Representations and Warranties of UTEK and DATI.  UTEK and DATI jointly and severally represent and warrant to MTNA that the facts set forth below are true and correct:

				

				          (a)       Organization. DATI and UTEK are corporations duly organized, validly existing and in good standing under the laws of their respective states of incorporation, and they have the requisite power and authority to conduct their business and consummate the transactions contemplated by this Agreement. True, correct and complete copies of the articles of incorporation, bylaws and all corporate minutes of DATI have been provided to MTNA and such documents are presently in effect and have not been amended or modified.

				

				          (b)       Authorization. The execution of this Agreement and the consummation of the Acquisition and the other transactions contemplated by this Agreement have been duly authorized by the board of directors and shareholder of DATI and the board of directors of UTEK; no other corporate action by the respective parties is necessary in order to execute, deliver, consummate and perform their respective obligations hereunder; and DATI and UTEK have all requisite corporate and other authority to execute and deliver this Agreement and consummate the transactions contemplated by this Agreement.

				

				          (c)       Capitalization.  The authorized capital of DATI consists of 1,000,000 shares of common stock with a par value $.01 per share. At the date of this Agreement, 1,000 DATI Shares are issued and outstanding as follows:

				

			

		

		
			

			

			

			

		

		
				
						
							Shareholder

						

						
						
							Number of DATI Shares

						

					
	
						
							UTEK Corporation

								Aware Capital Consultants

								Total

						

						
						
							950

								50

								1,000

						

					

		

		
			

			

			

			

		

		
			Page 2 of 17

		

		
			

			

			

			

			

				All issued and outstanding DATI Shares have been duly and validly issued and are fully paid and non‐assessable shares and have not been issued in violation of any preemptive or other rights of any other person or any applicable laws. DATI is not authorized to issue any preferred stock. All dividends on DATI Shares which have been declared prior to the date of this Agreement have been paid in full. There are no outstanding options, warrants, commitments, calls or other rights or Agreements requiring DATI to issue any DATI Shares or securities convertible, exercisable or exchangeable into DATI Shares to anyone for any reason whatsoever. None of the DATI Shares is subject to any charge, claim, condition, interest, lien, pledge, option, security interest or other encumbrance or restriction, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

			

			          (d)       Binding Effect. The execution, delivery, performance and consummation of this Agreement, the Acquisition and the transactions contemplated by this Agreement will not violate any obligation to which DATI or UTEK is a party and will not create a default under any such obligation or under any Agreement to which DATI or UTEK is a party.  This Agreement constitutes a legal, valid and binding obligation of DATI, enforceable in accordance with its terms, except as the enforcement may be limited by bankruptcy, insolvency, moratorium, or similar laws affecting creditor’s rights generally and by the availability of injunctive relief, specific performance or other equitable remedies.

			

			          (e)       Litigation Relating to this Agreement. There are no suits, actions or proceedings pending or, to the best of DATI’s and UTEK’s knowledge, information and belief, threatened, which seek to enjoin the Acquisition or the transactions contemplated by this Agreement or which, if adversely decided, would have a materially adverse effect on the business, results of operations, assets or prospects of DATI.

			

			          (f)       No Conflicting Agreements. Neither the execution and delivery of this Agreement nor the fulfillment of or compliance by DATI or UTEK with the terms or provisions of this Agreement nor all other documents or agreements contemplated by this Agreement and the consummation of the transaction contemplated by this Agreement will result in a breach of the terms, conditions or provisions of, or constitute a default under, or result in a violation of, DATI’s or UTEK’s articles of incorporation or bylaws, the Technology, the License Agreement, or any agreement, contract, instrument, order, judgment or decree to which DATI or UTEK is a party or by which DATI or UTEK or any of their respective assets is bound, or violate any provision of any applicable law, rule or regulation or any order, decree, writ or injunction of any court or government entity which materially affects their respective assets or businesses.

			

			          (g)       Consents. No consent from or approval of any court, governmental entity or any other person is necessary in connection with execution and delivery of this Agreement by DATI and UTEK or performance of the obligations of DATI and UTEK hereunder or under any other agreement to which DATI or UTEK is a party; and the consummation of the transactions contemplated by this Agreement will not require the approval of any entity or person in order to prevent the termination of the Technology, the License Agreement, or any other material right, privilege, license or agreement relating to DATI or its assets or business.

			

			          (h)       Title to Assets. DATI has or has agreed to enter into the agreements as listed on Exhibit A attached hereto. These agreements and the assets shown on the balance sheet of attached Exhibit B are the sole assets of DATI.  Except as set forth on Schedule 2.01(h),  DATI has good and marketable title to its assets, free and clear of all liens, claims, charges, mortgages, options, security agreements and other encumbrances of every kind or nature whatsoever.  On the Closing Date, DATI will have good and marketable title to its assets, free and clear of all liens, claims, charges, mortgages, options, security agreements and other encumbrances of every kind and nature whatsoever.

			

			          (i)       Intellectual Property

				

				

				

				

			

		
			Page 3 of 17

			

			

			

		

		
			

			

			

			

			

			
				
					     (1)  The University of South Carolina Research Foundation (“SCRF”) owns the Technology and has all right, power, authority and ownership and entitlement to file, prosecute and maintain in effect the Patent application with respect to the Inventions listed in Exhibit A hereto.

						

						     (2)  The License Agreement between SCRF and DATI covering the Inventions is legal, valid, binding and will be enforceable in accordance with its terms as contained in Exhibit A and DATI has full power and authority to assign all of its rights thereunder and no sublicenses thereunder have occurred or will occur prior to Closing.

						

						     (3)   Except as otherwise set forth in this Agreement, MTNA acknowledges and understands that DATI and UTEK make no representations and provide no assurances that the rights to the Technology and Intellectual Property contained in the License Agreement do not, and will not in the future, infringe or otherwise violate the rights of third parties; however, DATI and UTEK have no knowledge of pending or threatened claims by, or any basis for any claims by, any third parties alleging such infringement or other violation, and

						

						     (4)   Except as otherwise expressly set forth in this Agreement, DATI and UTEK make no representations and extend no warranties of any kind, either express or implied, including, but not limited to warranties of merchantability, fitness for a particular purpose, non-infringement and validity of the Intellectual Property.

				

			

			

			

			          (j)       Liabilities of DATI. DATI has no assets (except as set forth in Section 2.01 (h)), no liabilities or obligations of any kind, character or description except those listed on the attached schedules and exhibits.

				

				          (k)       Financial Statements. The unaudited financial statements of DATI, including a balance sheet, attached as Exhibit B and made a part of this Agreement, are, in all respects, complete and correct and present fairly DATI’s financial position and the results of its operations on the dates and for the periods shown in this Agreement; provided, however, that interim financial statements are subject to customary year-end adjustments and accruals that, in the aggregate, will not have a material adverse effect on the overall financial condition or results of its operations. DATI has not engaged in any business not reflected in its financial statements. There have been no material adverse changes in the nature of its business, prospects, the value of assets or the financial condition since the date of its financial statements. There are no, and on the Closing Date there will be no, outstanding obligations or liabilities of DATI except as specifically set forth in the financial statements and the other attached schedules and exhibits.  There is no information known to DATI or UTEK that would prevent the financial statements of DATI from being audited in accordance with generally accepted accounting principles.

				

				          (l)       Taxes. All returns, reports, statements and other similar filings required to be filed by DATI with respect to any federal, state, local or foreign taxes, assessments, interests, penalties, deficiencies, fees and other governmental charges or impositions have been timely filed with the appropriate governmental agencies in all jurisdictions in which such tax returns and other related filings are required to be filed; all such tax returns properly reflect all liabilities of DATI for taxes for the periods, property or events covered by this Agreement; and all taxes, whether or not reflected on those tax returns, and all taxes claimed to be due from DATI by any taxing authority, have been properly paid, except to the extent reflected on DATI’s financial statements, where DATI has contested in good faith by appropriate proceedings and reserves have been established on its financial statements to the full extent if the contest is adversely decided against it. DATI has not received any notice of assessment or proposed assessment in connection with any tax returns, nor is DATI a party to or to the best of its knowledge, expected to become a party to any pending or threatened action or proceeding, assessment or collection of taxes. DATI has not extended or waived the application of any statute of limitations of any jurisdiction regarding the assessment or collection of any taxes. There are no tax liens (other than any lien which arises by operation of law for current taxes not yet due and payable) on any of its assets. There 

				

				

				

			

		

		
			Page 4 of 17

		

		
			

			

			

			

			

			is no basis for any additional assessment of taxes, interest or penalties. DATI has made all deposits required by law to be made with respect to employees’ withholding and other employment taxes, including without limitation the portion of such deposits relating to taxes imposed upon DATI. DATI is not and has never been a party to any tax-sharing agreements with any other person or entity.

			

			          (m)       Absence of Certain Changes or Events. From the date of the full execution of the Term Sheet until the Closing Date, DATI has not, and without the written consent of MTNA, it will not have:

			

			                    (1)       Sold, encumbered, assigned let lapsed or transferred any of its material assets, including without limitation the Intellectual Property, the License Agreement or any other material asset;

			

			                    (2)       Amended or terminated the License Agreement or other material agreement or done any act or omitted to do any act which would cause the breach of the License Agreement or any other material agreement;

			

			                    (3)       Suffered any damage, destruction or loss whether or not in control of DATI;

			

			                    (4)       Made any commitments or agreements for capital expenditures or otherwise;

			

			                    (5)       Entered into any transaction or made any commitment not disclosed to MTNA;

			

			                    (6)       Incurred any material obligation or liability for borrowed money;

			

			                    (7)       Done or omitted to do any act, or suffered any other event of any character, which is reasonable to expect, would adversely affect the future condition (financial or otherwise), assets or liabilities or business of DATI; or

			

			                    (8)       Taken any action, which could reasonably be foreseen to make any of the representations or warranties made by DATI or UTEK untrue as of the date of this Agreement or as of the Closing Date.

			

			          (n)       Material Agreements. Exhibit A attached contains a true and complete list of all contemplated and executed agreements between DATI and a third party. A complete and accurate copies of all material agreements, contracts and commitments of the following types, whether written or oral, to which it is a party or is bound (Contracts), has been provided to MTNA.  Such executed Contracts are, and such contemplated Contracts will be, at the Closing Date, in full force and effect without modifications or amendment and constitute the legally valid and binding obligations of DATI in accordance with their respective terms and will continue to be valid and enforceable following the Acquisition. DATI is not, and will not be at the Closing Date, in default of any of the Contracts. In addition:

			

			                    (1)       There are no outstanding unpaid promissory notes, mortgages, indentures, deed of trust, security agreements and other agreements and instruments relating to the borrowing of money by or any extension of credit to DATI; and

			

			                    (2)       There are no outstanding operating agreements, lease agreements or similar agreements by which DATI is bound; and

			

			                    (3)       The complete final draft of the License Agreement has been provided to MTNA; and

			

			

			

		

		
			Page 5 of 17

		

		
			

			

			

			

			

			                    (4)       Except as set forth in (3) above, there are no outstanding licenses to or from others of any Intellectual Property and trade names; and

			

			                    (5)       There are no outstanding agreements or commitments to sell, lease or otherwise dispose of any of DATI’s property; and

			

			                    (6)       There are no breaches or threatened breaches of any agreement to which DATI is a party.

			

			          (o)       Compliance with Laws. DATI is in compliance with all applicable laws, rules, regulations and orders promulgated by any federal, state or local government body or agency relating to its business and operations.

			

			          (p)       Litigation.  There is no suit, action or any arbitration, administrative, legal or other proceeding of any kind or character, or any governmental investigation pending or to the best knowledge of DATI or UTEK, threatened against DATI, the Technology, or License Agreement, affecting its assets or business (financial or otherwise), and neither DATI nor UTEK is in violation of or in default with respect to any judgment, order, decree or other finding of any court or government authority relating to the assets, business or properties of DATI or the transactions contemplated hereby. There are no pending or threatened actions or proceedings before any court, arbitrator or administrative agency, which would, if adversely determined, individually or in the aggregate, materially and adversely affect the assets or business of DATI or the transactions contemplated hereby.

			

			          (q)       Employees. DATI has no and never had any employees. DATI is not a party to or bound by any employment agreement or any collective bargaining agreement with respect to any employees. DATI is not in violation of any law, rule or regulation relating to employment of employees.

			

			          (r)       Material Events. Neither DATI nor UTEK has any knowledge of any existing or threatened occurrence, action or development that could cause a material adverse effect on DATI or its business, assets or condition (financial or otherwise) or prospects.

			

			          (s)       Employee Benefit Plans.  There are no and have never been any employee benefit plans, and there are no commitments to create any, including without limitation as such term is defined in the Employee Retirement Income Security Act of 1974, as amended, in effect, and there are no outstanding or un-funded liabilities nor will the execution of this Agreement and the actions contemplated in this Agreement result in any obligation or liability to any present or former employee.

			

			          (t)       Books and Records. The books and records of DATI are complete and accurate in all material respects, fairly present its business and operations, have been maintained in accordance with good business practices, and applicable legal requirements, and accurately reflect in all material respects its business, financial condition and liabilities.

			

			          (u)       Full Disclosure.   All representations or warranties of UTEK and DATI are true, correct and complete in all material respects to the best of UTEK’s and DATI’s knowledge on the date of this Agreement and shall be true, correct and complete in all material respects as of the Closing Date as if they were made on such date.  No statement made by them in this Agreement or in the exhibits and schedules to this Agreement or any document delivered by them or on their behalf pursuant to this Agreement contains an untrue statement of material fact or omits to state all material facts necessary to make the statements in this Agreement not misleading in any material respect in light of the circumstances in which they were made.

			
2.02    Representations and Warranties of MTNA.  MTNA represents and warrants to UTEK and DATI that the facts set forth below are true and correct.

			

			

			

		

		
			Page 6 of 17

		

		
			

			

			

			

			

			          (a)       Organization.  MTNA is a corporation duly organized, validly existing and in good standing under the laws of Delaware, is qualified to do business as a foreign corporation in other jurisdictions in which the conduct of its business or the ownership of its properties require such qualification, and have all requisite power and authority to conduct its business and operate its properties.

			

			          (b)       Authorization.  The execution of this Agreement and the consummation of the Acquisition and the other transactions contemplated by this Agreement have been duly authorized by the board of directors of MTNA; no other corporate action on MTNA’s part is necessary in order to execute, deliver, consummate and perform its obligations hereunder; and it has all requisite corporate and other authority to execute and deliver this Agreement and consummate the transactions contemplated by this Agreement.

			

			          (c)       Capitalization. The authorized capital of MTNA consists of 600,000,000 (Six Hundred Million) shares of common stock with a par value $0.001 per share (MTNA Common Shares) and on the Effective Date of the Acquisition 115,851,715 (One Hundred Fifteen Million, Eight Hundred, Fifty-One Thousand, Seven Hundred, Fifteen) MTNA Shares (including the 7,500,000 (Seven Million, Five Hundred Thousand) MTNA Common Shares issued at the closing of the Acquisition) will be issued and outstanding. All issued and outstanding MTNA Shares have been duly and validly issued and are fully paid and non-assessable shares and have not been issued in violation of any preemptive or other rights of any other person or any applicable laws.

			

			          (d)       Anti Dilution Adjustments. UTEK currently owns 6,368,804 common shares of MTNA and will be acquiring an additional 7,500,000 unregistered common shares of MTNA totaling 13,868,804 unregistered shares; and based on a total of 115,851,715  issued shares this total will represent a 12.0% ownership position in MTNA shares. For a period of twelve months from the Effective date of this Agreement, the aggregate number of shares of Stock that Utek has received shall be adjusted proportionately by the Board of Directors of MTNA for any increase in the number of outstanding shares of Stock resulting from the issuance of any additional equity securities by the Company to any of its current list of management and directors as of the Effective Date.

			

			          (e)       Binding Effect. The execution, delivery, performance and consummation of the Acquisition and the transactions contemplated by this Agreement will not violate any obligation to which MTNA is a party and will not create a default hereunder, and this Agreement constitutes a legal, valid and binding obligation of MTNA, enforceable in accordance with its terms, except as the enforcement may be limited by bankruptcy, insolvency, moratorium, or similar laws affecting creditor’s rights generally and by the availability of injunctive relief, specific performance or other equitable remedies.

			

			          (f)       Litigation Relating to this Agreement. There are no suits, actions or proceedings pending or to its knowledge threatened which seek to enjoin the Acquisition or the transactions contemplated by this Agreement or which, if adversely decided, would have a materially adverse effect on its business, results of operations, assets, prospects or the results of its operations of MTNA.

			

			          (g)       No Conflicting Agreements. Neither the execution and delivery of this Agreement nor the fulfillment of or compliance by MTNA with the terms or provisions of this Agreement will result in a breach of the terms, conditions or provisions of, or constitute default under, or result in a violation of, the corporate charter or bylaws, or any agreement, contract, instrument, order, judgment or decree to which it is a party or by which it or any of its assets are bound, or violate any provision of any applicable law, rule or regulation or any order, decree, writ or injunction of any court or governmental entity which materially affects its assets or business.

			

			          (h)       Consents. Assuming the correctness of UTEK’s and DATI’s representations, no consent from or approval of any court, governmental entity or any other person is necessary in connection with its

			

			

			

		

		
			Page 7 of 17

		

		
			

			

			

			

			

				execution and delivery of this Agreement; and the consummation of the transactions contemplated by this Agreement will not require the approval of any entity or person in order to prevent the termination of any material right, privilege, license or agreement relating to MTNA or its assets or business.

			

			          (i)       Financial Statements. The unaudited financial statements of MTNA attached within the most recent Report on Form 10K as Exhibit C present fairly its financial position and the results of its operations on the dates and for the periods shown on such statements; provided, however, that interim financial statements are subject to customary year‐end adjustments and accruals that, in the aggregate, will not have a material adverse effect on the overall financial condition or results of its operations. MTNA has not engaged in any business not reflected in its financial statements. There have been no material adverse changes in the nature of its business, prospects, the value of assets or the financial condition since the date of its financial statements. There are no outstanding obligations or liabilities of MTNA except as specifically set forth in the MTNA financial statements.

			

			          (j)       Full Disclosure. All representations or warranties of MTNA are true, correct and complete in all material respects on the date of this Agreement and shall be true, correct and complete in all material respects as of the Closing Date as if they were made on such date. No statement made by it in this Agreement or in the exhibits to this Agreement or any document delivered by it or on its behalf pursuant to this Agreement contains an untrue statement of material fact or omits to state all material facts necessary to make the statements in this Agreement not misleading in any material respect in light of the circumstances in which they were made.

			
          (k)      Compliance with Laws. MTNA is in compliance with all applicable laws, rules, regulations and orders promulgated by any federal, state or local government body or agency relating to its business and operations.

			

			          (l)       Litigation.   There is no suit, action or any arbitration, administrative, legal or other proceeding of any kind or character, or any governmental investigation pending or, to the best knowledge of MTNA, threatened against MTNA materially affecting its assets or business (financial or otherwise), and MTNA is not in violation of or in default with respect to any judgment, order, decree or other finding of any court or government authority. There are no pending or, to the knowledge of MTNA, threatened actions or proceedings before any court, arbitrator or administrative agency, which would, if adversely determined, individually or in the aggregate, materially and adversely affect its assets or business. MTNA has no knowledge of any existing or threatened occurrence, action or development that could cause a material adverse affect on MTNA or its business, assets or condition (financial or otherwise) or prospects.

			

			          (m)       Development.  MTNA agrees and warrants that it has the expertise necessary to and has had the opportunity to independently evaluate the inventions of the Licensed Patents and develop same for the market. MTNA further agrees that it will provide UTEK with copies of progress reports made to the university as required under the subject license agreement on a quarterly basis.

			

			          (n)       Investment Company. MTNA is not an investment company, either registered or unregistered.

			

			2.03   Investment Representations of UTEK. UTEK represents and warrants to MTNA that:

			

			          (a)       General. It has such knowledge and experience in financial and business matters as to be capable of evaluating the risks and merits of an investment in MTNA Shares pursuant to the Acquisition. It is able to bear the economic risk of the investment in MTNA Shares, including the risk of a total loss of the investment in MTNA Shares. The acquisition of MTNA Shares is for its own account and is for investment and not with a view to any distribution of such shares. Except a permitted by law, it has no present intention of selling, transferring or otherwise disposing in any way of all or any portion of the

			

			

			

		

		
			Page 8 of 17

		

		
			

			

			

			

			

			shares at the present time. All information that it has supplied to MTNA is true and correct. It has conducted all investigations and due diligence concerning MTNA to evaluate the risks inherent in accepting and holding the shares which it deems appropriate, and it has found all such information obtained fully acceptable. It has had an opportunity to ask questions of the officers and directors of MTNA concerning MTNA Shares and the business and financial condition of and prospects for MTNA, and the officers and directors of MTNA have adequately answered all questions asked and made all relevant information available to them. UTEK is an “accredited investor,” as the term is defined in Regulation D, promulgated under the Securities Act of 1933, amended, and the rules and regulations there under.

			

			          (b)       Stock Transfer Restrictions.  UTEK acknowledges that the MTNA Shares will not be registered and UTEK will not be permitted to sell or otherwise transfer the MTNA Shares in any transaction in contravention of the following legend, which will be imprinted in substantially the following form on the stock certificate representing MTNA Shares:

			

				THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE ACT), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED PURSUANT TO THE PROVISION OF THE ACT AND THE LAWS OF SUCH STATES UNDER WHOSE LAWS A TRANSFER OF SECURITIES WOULD BE SUBJECT TO A REGISTRATION REQUIREMENT, UNLESS UTEK CORPORATION HAS OBTAINED AN OPINION OF COUNSEL STATING THAT SUCH DISPOSITION IS IN COMPLIANCE WITH AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION.

			

			          (c)       Legend.  Subject to Rule 144 restrictions, 24 months following the stock acquisition described herein, MTNA agrees to and shall direct its transfer agent to remove the above legend upon the issuance by UTEK's legal counsel that the above legend can be removed from UTEK's shares.  MTNAD agrees to and promptly shall provide any information requested by UTEK or UTEK's counsel and to make further direction to its transfer agent as necessary for such issuance of an opinion regarding removal of the legend or the sale of such restricted shares under Rule 144 or other available exemption from registration.

			

			          (d)       In the event that MTNA fails to direct its transfer agent to remove the legend within fifteen (15) days of request by UTEK, MTNA shall be liable to an additional fee of ten percent (10%) of the current value of the shares held by UTEK, as well as any and all attorney fees and costs that UTEK may incur as a result of MTNA failing to comply in this request.

			

		

		
			ARTICLE 3

					TRANSACTIONS PRIOR TO CLOSING

				

			

		

		
			3.01.   Corporate Approvals. Prior to Closing Date, each of the parties shall submit this Agreement to its board of directors and, if necessary, its respective shareholders and obtain approval of this Agreement. Copies of corporate actions taken shall be provided to each party.

				

				3.02    Access to Information. Each party agrees to permit, upon reasonable notice, the attorneys, accountants, and other representatives of the other parties reasonable access during normal business hours to its properties and its books and records to make reasonable investigations with respect to its affairs, and to make its officers and employees available to answer questions and provide additional information as reasonably requested.

				

				

				

			

		

		
			Page 9 of 17

		

		
			

			

			

			

			

			3.03    Expenses. Each party agrees to bear its own expenses in connection with the negotiation and consummation of the Acquisition and the transactions contemplated by this Agreement.

			

			3.04    Covenants. Except with the prior written approval of MTNA or of DATI or UTEK, as the case may be, each party agrees that it will:

			

			          (a)       Use its good faith efforts to obtain all requisite licenses, permits, consents, approvals and authorizations necessary in order to consummate the Acquisition; and

			

			          (b)       Notify the other parties upon the occurrence of any event which would have a materially adverse effect upon the Acquisition or the transactions contemplated by this Agreement or upon the business, assets or results of operations; and

			

			          (c)       Not modify its corporate structure, except, upon prior written notice to the other parties, as necessary or advisable in order to consummate the Acquisition and the transactions contemplated by this Agreement.

			

		

		
			ARTICLE 4

					CONDITIONS PRECEDENT

				

			

		

		
			The obligation of the parties to consummate the Acquisition and the transactions contemplated by this Agreement are subject to the following conditions that may be waived, to the extent permitted by law:

				

				4.01.   Each party must obtain the approval of its board of directors and such approval shall not have been rescinded or restricted.

				

				4.02.   Each party shall obtain all requisite licenses, permits, consents, authorizations and approvals required to complete the Acquisition and the transactions contemplated by this Agreement.

				

				4.03.   There shall be no claim or litigation instituted or threatened in writing by any person or government authority seeking to restrain or prohibit any of the contemplated transactions contemplated by this Agreement or challenge the right, title and interest of UTEK in the DATI Shares, DATI in the License Agreement, or the right of DATI or UTEK to consummate the Acquisition contemplated hereunder.

				

				4.04.   The representations and warranties of the parties shall be true and correct in all material respects at the Effective Date.

				

				4.05.   The Technology and Intellectual Property shall have been prosecuted in good faith with reasonable diligence.

				

				4.06.   The License Agreement shall have been executed and delivered by all parties thereto and,  to the best knowledge of UTEK and DATI, the License Agreement shall be valid and in full force and effect without any default under such agreement.

				

				4.07.    MTNA shall have received, at or within 5 days before the Closing Date, each of the following:

				

				          (a)       the stock certificates representing the DATI Shares, duly endorsed (or accompanied by duly executed stock powers) by UTEK for cancellation;

				

				

				

			

		

		
			Page 10 of 17

		

		
			

			

			

			

			

			          (b)       all documentation relating to DATI’s business, all in form and substance satisfactory to MTNA;

			

			          (c)       such agreements, files and other data and documents pertaining to DATI’s business as MTNA may reasonably request;

			

			          (d)       copies of the general ledgers and books of account of DATI, and all federal, state and local income, franchise, property and other tax returns filed by DATI since the inception of DATI;

			

			          (e)       certificates of (i) the Secretary of State of the State of Florida as to the legal existence and good standing, as applicable (including tax), of DATI in Florida;

			

			          (f)       the original corporate minute books of DATI, including the articles of incorporation and bylaws of DATI, and all other documents filed in this Agreement;

			

			          (g)       all consents, assignments or related documents of conveyance to give MTNA the benefit of the transactions contemplated hereunder;

			

			          (h)       such documents as may be needed to accomplish the Closing under the corporate laws of the states of incorporation of MTNA and DATI, and

			

			          (i)       such other documents, instruments or certificates as MTNA, or its counsel may reasonably request.

			

			4.08.   MTNA shall have completed its due diligence investigation of DATI to MTNA’s satisfaction in its sole discretion.

			

			4.09.   MTNA shall receive the resignations of each director and officer of DATI effective the Closing Date.

			

		

		
			ARTICLE 5

					INDEMNIFICATION AND LIABILITY LIMITATION

					

				

		

		
			5.01.   Survival of Representations and Warranties.

					

				          (a)       The representations and warranties made by UTEK and DATI shall survive for a period of 1 year after the Closing Date, and thereafter all such representation and warranties shall be extinguished, except with respect to claims then pending for which specific notice has been given during such 1-year period.

				

				          (b)       The representations and warranties made by MTNA shall survive for a period of 1 year after the Closing Date, and thereafter all such representations and warranties shall be extinguished, except with respect to claims then pending for which specific notice has been given during such 1-year period.

				

				5.02    Limitations on Liability.  MTNA agrees that UTEK shall not be liable under this agreement to MTNA or their respective successor’s, assigns or affiliates except where damages result directly from the gross negligence or willful misconduct of UTEK or its employees.  In no event shall UTEK's liability exceed the total amount of the fees paid to UTEK under this agreement, nor shall UTEK be liable for incidental or consequential damages of any kind.  MTNA shall indemnify UTEK, and hold UTEK harmless against any and all claims by third parties for losses, damages or liabilities, including reasonable attorneys fees and expenses (“Losses”), arising in any manner out of or in connection with the rendering 

				

				

				

			

		

		
			Page 11 of 17

		

		
			

			

			

			

			

				of services by UTEK under this Agreement, unless it is finally judicially determined that such Losses resulted from the gross negligence or willful misconduct of UTEK. The terms of this paragraph shall survive the termination of this agreement and shall apply to any controlling person, director, officer, employee or affiliate of UTEK.

			

			5.03    Indemnification.  MTNA agrees to indemnify and hold harmless UTEK and its subsidiaries and affiliates and each of its and their officers, directors, principals, shareholders, agents, independent contactors and employees (collectively “Indemnified Persons”) from and against any and all claims, liabilities, damages, obligations, costs and expenses (including reasonable attorneys’ fees and expenses and costs of investigation) arising out of or relating to  matters  or arising from this Agreement, except to the extent that any such claim, liability, obligation, damage, cost or expense shall have been determined by final non-appealable order of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Indemnified Person or Persons in respect of whom such liability is asserted.

			

			          (a)       Limitation of Liability.  MTNA agrees that no Indemnified Person shall have any liability as a result of the execution and delivery of this Agreement, or other matters relating to or arising from this Agreement, other than liabilities that shall have been determined by final non-appealable order of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Indemnified Person or Persons in respect of whom such liability is asserted.  Without limiting the generality of the foregoing, in no event shall any Indemnified Person be liable for consequential, indirect or punitive damages, damages for lost profits or opportunities or other like damages or claims of any kind.  In no event shall UTEK's liability exceed the total amount of the fees paid to UTEK under this Agreement.

			

		

		
			ARTICLE 6

				REMEDIES

					

				

		

		
			6.01   Costs. If any legal action or any arbitration or other proceeding is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default, or misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief to which it or they may be entitled.

				

			

		

		
			ARTICLE 7

				ARBITRATION

					

				

		

		
			In the event a dispute arises with respect to the interpretation or effect of this Agreement or concerning the rights or obligations of the parties to this Agreement, the parties agree to negotiate in good faith with reasonable diligence in an effort to resolve the dispute in a mutually acceptable manner. Failing to reach a resolution of this Agreement, either party shall have the right to submit the dispute to be settled by arbitration under the Commercial Rules of Arbitration of the American Arbitration Association. The parties agree that, unless the parties mutually agree to the contrary such arbitration shall be conducted in Los Angeles, California.  The cost of arbitration shall be borne by the party against whom the award is rendered or, if in the interest of fairness, as allocated in accordance with the judgment of the arbitrators. All awards in arbitration made in good faith and not infected with fraud or other misconduct shall be final and binding.  The arbitrators shall be selected as follows: one by MTNA, one by UTEK and a third by the two selected arbitrators. The third arbitrator shall be the chairman of the panel.

				

				

				

			

		

		
			Page 12 of 17

		

		
			

			

			

			

			

		

		
			ARTICLE 8

				MISCELLANEOUS

					

				

		

		
			8.01.  No party may assign this Agreement or any right or obligation of it hereunder without the prior written consent of the other parties to this Agreement. No permitted assignment shall relieve a party of its obligations under this Agreement without the separate written consent of the other parties.

				

				8.02.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective permitted successors and assigns.

				

				8.03.  Each party agrees that it will comply with all applicable laws, rules and regulations in the execution and performance of its obligations under this Agreement.

				

				8.04.  This Agreement shall be governed by and construct in accordance with the laws of the State of Delaware without regard to principles of conflicts of law.

				

				8.05.  This document constitutes a complete and entire agreement among the parties with reference to the subject matters set forth in this Agreement. No statement or agreement, oral or written, made prior to or at the execution of this Agreement and no prior course of dealing or practice by either party shall vary or modify the terms set forth in this Agreement without the prior consent of the other parties to this Agreement. This Agreement may be amended only by a written document signed by the parties.

				

				8.06.  Notices or other communications required to be made in connection with this Agreement shall be sent by U.S. mail, certified, return receipt requested, personally delivered or sent by express delivery service and delivered to the parties at the addresses set forth below or at such other address as may be changed from time to time by giving written notice to the other parties.

				

				8.07.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

				

				8.08.  This Agreement may be executed in multiple counterparts, each of which shall constitute one and a single Agreement.

				

				8.09   Any facsimile signature of any part to this Agreement or to any other Agreement or document executed in connection of this Agreement should constitute a legal, valid and binding execution by such parties.

				

				

				

				

			

		

		
			(SIGNATURES ON THE FOLLOWING PAGE)

		

		

		
			

			

			

			

			

			

			
				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

			
				Page 13 of 17

			

			
				

				

				

				

				

				MATERIAL TECHNOLOGIES, iNC.                               DAMAGE ASSESSMENT TECHNOLOGIES, INC.

					

					

				By:__/s/ Robert M. Bernstein_________                                By:__/s/ Jennifer Willis_____________

				     Robert M. Bernstein,                                                               Jennifer Willis

				     Chief Executive Officer                                                            President

				

				     Address:                                                                                 Address:

				     11661 San Vicente Blvd, Suite 707                                         2109 E. Palm Avenue

				     Los Angeles, CA 90049                                                         Tampa, Florida 33605

				

					Date: __May 3, 2007_______________                                Date: ___May 3, 2007____________

				

				

				UTEK CORPORATION                                                      UTEK CORPORATION

					

					

				By:__/s/ Clifford M. Gross___________                                  By: __/s/ Douglas A. Schaedler______

				     Clifford M. Gross,                                                                     Douglas A. Schaedler

				     Chief Executive Officer                                                              Chief Compliance Officer

				

				

				      Address:                                                                                  Address:

				      2109 E. Palm Avenue                                                              2109 E. Palm Avenue

				      Tampa, Florida 33605                                                             Tampa, Florida 33605

				

					Date: ____May 3, 2007_____________                                 Date: ___May 3, 2007_____________

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

		

		
			
				Page 14 of 17

				

				

			

		

		
			

			

			

			

			

			

			

			

			

		

		
			EXHIBIT A

				Outstanding Agreements

				

				License Agreement from the University of South Carolina (USC)

		

		
			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

		

		
			Page 15 of 17

		

		
			

			

			

			

			

		

		
			EXHIBIT B

					

					DAMAGE ASSESSMENT TECHNOLOGIES, INC 

				Financial Statements as of

				______________________, 2007

			

			

			

			

			

			

		

		
			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

		

		
			Page 16 of 17

		

		
			

			

			

			

			

		

		
			EXHIBIT C

					

					Material Technologies, Inc.

				

				FORM 10-K 

				

				ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

				SECURITIES EXCHANGE ACT OF 1934

				

				For the fiscal year ended December, 2006

			

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		
			Page 17 of 17exv4w1

 

Exhibit 4.1

2007 Performance Option Plan

1.   PURPOSE OF PLAN

			
	 		
    Potash Corporation of Saskatchewan Inc. (the
    “Corporation”) by resolution of its Board of Directors
    (the “Board”) has established, subject to shareholder
    approval at the Corporation’s 2007 Annual and Special
    Meeting of shareholders, this Potash Corporation of Saskatchewan
    Inc. 2007 Performance Option Plan (the “Plan”) to
    support the Corporation’s compensation philosophy of
    providing selected employees and officers with an opportunity
    to: promote the growth and profitability of the Corporation;
    align their interests with shareholders; and earn compensation
    commensurate with corporate performance. The Corporation
    believes this Plan will directly assist in supporting the
    Corporation’s compensation philosophy by providing
    participants with the opportunity through stock options, which
    will vest, if at all, based on corporate performance over a
    three-year period, to acquire Common Shares of the Corporation
    (“Common Shares”).

2.   DURATION OF THIS PLAN

			
	 		
    This Plan was adopted by the Board on February 20, 2007 to
    be effective as of January 1, 2007 (the “Effective
    Date”), subject to shareholder approval at the
    Corporation’s 2007 Annual and Special Meeting of
    shareholders, and shall remain in effect, unless sooner
    terminated as provided herein, until one (1) year from the
    Effective Date, at which time it will terminate. After this Plan
    is terminated, no stock options may be granted but stock options
    previously granted shall remain outstanding in accordance with
    their applicable terms and conditions and this Plan’s terms
    and conditions.

3.   ADMINISTRATION

			
	 		
    This Plan shall be administered by the Compensation Committee of
    the Board or any other committee designated by the Board to
    administer this Plan (the “Committee”). The Committee
    shall be responsible for administering this Plan, subject to
    this Section 3 and the other provisions of this Plan. The
    Committee may employ attorneys, consultants, accountants,
    agents, and other individuals, any of whom may be an employee,
    and the Committee, the Corporation, and its officers and
    directors shall be entitled to rely upon the advice, opinions,
    or valuations of any such individuals. All actions taken and all
    interpretations and determinations made by the Committee shall
    be made in the Committee’s sole discretion and shall be
    final and binding upon the participants, the Corporation, and
    all other interested individuals. To the extent applicable, the
    Plan shall be administered with respect to optionees subject to
    the laws of the U.S. so as to avoid the application of penalties
    pursuant to Section 409A of the Internal Revenue
    Code.

4.   AUTHORITY OF THE COMMITTEE

			
	 		
    The Committee shall have full and exclusive discretionary power
    to interpret the terms and the intent of this Plan and any Stock
    Option Award Agreement or other agreement or document ancillary
    to or in connection with this Plan, to determine eligibility for
    stock options and to adopt such rules, regulations, forms,
    instruments, and guidelines for administering this Plan as the
    Committee may deem necessary or proper. Such authority shall
    include adopting modifications and amendments to any Stock
    Option Award Agreement that are necessary to comply with the
    laws of the countries and other jurisdictions in which the
    Corporation and/or its subsidiaries operate.

5.   SHARES SUBJECT TO STOCK OPTIONS

			
	 		
    The aggregate number of Common Shares issuable after
    February 20, 2007 pursuant to stock options under this Plan
    may not exceed 1,000,000 Common Shares. The aggregate number of
    Common Shares in respect of which stock options have been
    granted to any one person pursuant to this Plan and which remain
    outstanding shall not at any time exceed 250,000. The authorized
    limits under this Plan shall be subject to adjustment under
    Sections 12 and 13.
	 
	 		
    If any stock option granted under this Plan, or any portion
    thereof, expires or terminates for any reason without having
    been exercised in full, the Common Shares with respect to which
    such option has not been exercised shall again be available for
    further stock options under this Plan; provided, however, that
    any stock option that is granted under this Plan that does not
    vest as a result of a failure to satisfy the Performance
    Measures, shall not be again available for grant under this Plan.

6.   GRANT OF STOCK OPTIONS

			
	 		
    From time to time the Board may designate individual officers
    and employees of the Corporation and its subsidiaries eligible
    to be granted options to purchase Common Shares and the number
    of Common Shares which each such person will be granted a stock
    option to purchase; provided that the aggregate number of Common
    Shares subject to such stock options may not exceed the number
    provided for in Section 5 of this Plan. Non-employee
    directors and other non-employee contractors and third party
    vendors are not eligible to participate in this Plan.

 

7.   OPTION PRICE

			
	 		
    The option price for any option granted under this Plan to any
    optionee shall be fixed by the Board when the option is granted
    and shall be not less than the fair market value of the Common
    Shares at such time which, for optionees resident in the United
    States and any other optionees designated by the Board, shall be
    deemed to be the closing price per Common Share on the New York
    Stock Exchange on the last trading day immediately preceding the
    day the option is granted and, for all other optionees, shall be
    deemed to be the closing price per Common Share on the Toronto
    Stock Exchange on the last trading day immediately preceding the
    day the option is granted; provided that, in either case, if the
    Common Shares did not trade on such exchange on such day the
    option price shall be the closing price per share on such
    exchange on the last day on which the Common Shares traded on
    such exchange prior to the day the option is granted.

8.   VESTING OF STOCK OPTIONS

			
	 		
    Subject to achievement of Performance Measures as certified and
    approved by the Audit Committee of the Board, stock options
    granted under this Plan will vest no later than thirty
    (30) days after the audited financial statements for the
    applicable Performance Period have been approved by the Board.

9.   PERFORMANCE MEASURES FOR VESTING OF STOCK
OPTIONS

			
	 	(a)	
    The Performance Measures which will be used to determine the
    degree to which stock options will vest over the three-year
    period beginning the first day of the fiscal year in which they
    are granted (the “Performance Period”) shall be cash
    flow return on investment (“CFROI”) and weighted
    average cost of debt and equity capital (“WACC”).

			
	 	(i)	
    CFROI is the ratio of after tax operating cash flow to average
    gross investment over the fiscal year, calculated as A divided
    by B, where (1) A equals operating income plus nonrecurring
    or unusual items plus accrued incentive awards plus depreciation
    and amortization less cash taxes, and (2) B equals the
    average of total assets plus accumulated depreciation plus
    accumulated amortization less cash and cash equivalents less non
    interest bearing current liabilities.
	 
	 	(ii)	
    WACC is the weighted average cost of debt and equity capital,
    calculated as [A times the product of B divided by C] plus
    [D times the product of E divided by C], where
    (1) A equals the after-tax market yield cost of debt,
    (2) B equals the market value of debt less cash and
    cash equivalents (3) C equals the market value of debt less
    cash and cash equivalents, plus the market value of equity,
    (4) D equals the cost of equity, and (5) E equals the
    market value of equity.

			
	 	(b)	
    In determining the number of stock options that will actually
    vest based on the degree to which the Performance Measures have
    been attained during the applicable Performance Period, the
    following chart shall be utilized which shows the three year
    average excess of CFROI being greater than WACC and the
    respective portion of the stock option that will vest:

	 	 	 	 	 	 	 
	Performance Measure	 	Vesting Scale
	 	 	 
	3 year average excess of	 	% of Stock Option
	CFROI > WACC	 	Grant Vesting
	 	 	 
	 	<0%	 	 	 	0%	 
	 	0.20%	 	 	 	30%	 
	 	1.20%	 	 	 	70%	 
	 	2.20%	 	 	 	90%	 
	 	2.50%	 	 	 	100%	 

			
	 	(c)	
    In assessing the portion of the stock options that shall vest in
    accordance with the above chart, the following shall be done:

			
	 	(i)	
    Each year, the CFROI and WACC will be calculated in accordance
    with the definitions herein, based on the audited financial
    statements and approved by the Audit Committee.
	 
	 	(ii)	
    In each Performance Period, the average of the three fiscal
    years shall be calculated by taking the simple average of the
    individual years’ results.
	 
	 	(iii)	
    The resulting three-year average will then be applied, using the
    scale above to determine the number of stock options, if any,
    that will vest as of the end of the Performance Period.
	 
	 	(iv)	
    For results falling between the reference points in the chart
    above, the level of vesting shall be mathematically interpolated
    between the reference points.

 

10. TERMS OF STOCK OPTIONS

			
	 		
    The period during which a stock option is exercisable may not
    exceed 10 years from the date the stock option is granted, and
    the Stock Option Award Agreement may contain provisions limiting
    the number of Common Shares with respect to which the stock
    option may be exercised in any one year. Each stock option
    agreement shall contain provisions to the effect that:

			
	 	(a)	
    if the employment of an optionee as an officer or employee of
    the Corporation or a subsidiary terminates, by reason of his or
    her death, or if an optionee who is a retiree pursuant to
    Section 10(b) dies, the legal personal representatives of
    the optionee will be entitled to exercise any unexercised vested
    options, including such stock options that may vest after the
    date of death, during the period ending at the end of the
    twelfth calendar month following the calendar month in which the
    optionee dies, failing which exercise the stock options
    terminate;
	 
	 	(b)	
    subject to the terms of Section 10(a) above, if the
    employment of an optionee as an officer or employee of the
    Corporation or a subsidiary terminates, by reason of retirement
    in accordance with the then prevailing retirement policy of the
    Corporation or subsidiary, the optionee will be entitled to
    exercise any unexercised vested stock options, including such
    stock options that may vest after the date of retirement, during
    the period ending at the end of the 36th month following
    the calendar month in which the optionee retires, failing which
    exercise the stock options terminate;
	 
	 	(c)	
    if the employment of an optionee as an officer or employee of
    the Corporation or a subsidiary terminates, for any reason other
    than as provided in Sections 10(a) or (b), the optionee
    will be entitled to exercise any unexercised vested stock
    options, to the extent exercisable at the date of such event,
    during the period ending at the end of the calendar month
    immediately following the calendar month in which the event
    occurs, failing which exercise the stock options terminate;
	 
	 	(d)	
    for greater certainty and for these purposes, an optionee’s
    employment with the Corporation or a subsidiary shall be
    considered to have terminated effective on the last day of the
    optionee’s actual and active employment with the
    Corporation or subsidiary whether such day is selected by
    agreement with the optionee or unilaterally by the Corporation
    or subsidiary and whether with or without advance notice to the
    optionee. For the avoidance of doubt, no period of notice that
    is given or ought to have been given under applicable law in
    respect of such termination of employment will be utilized in
    determining an optionee’s entitlement under the Plan. The
    employment of an optionee with the Corporation shall be deemed
    to have terminated for all purposes of the Plan if such person
    is employed by or provides services to a person that is a
    subsidiary of the Corporation and such person ceases to be a
    subsidiary of the Corporation, unless the Committee determines
    otherwise; and
	 
	 	(e)	
    each stock option is personal to the optionee and is not
    assignable, except (i) as provided in Section 10(a),
    and (ii) at the election of the Board, a stock option may
    be assignable to the spouse, children and grandchildren of the
    original optionee and to a trust, partnership or limited
    liability company, the entire beneficial interest of which is
    held by one or more of the foregoing.

			
	 		
    Nothing contained in Sections 10(a), (b) or
    (c) shall extend the period during which a stock option may
    be exercised beyond its stipulated expiration date or the date
    on which it is otherwise terminated in accordance with the
    provisions of this Plan.
	 
	 		
    If a stock option is assigned pursuant to
    Section 10(e)(ii), the references in Sections 10(a),
    (b) and (c) to the termination of employment or death
    of an optionee shall not relate to the assignee of a stock
    option but shall relate to the original optionee. In the event
    of such assignment, legal personal representatives of the
    original optionee shall not be entitled to exercise the assigned
    stock option, but the assignee of the stock option or the legal
    personal representatives of the assignee may exercise the stock
    option during the applicable specified period.

11. EXERCISE OF STOCK OPTIONS

			
	 		
    Subject to the provisions of this Plan, a vested stock option
    may be exercised from time to time by delivering to the
    Corporation at its registered office a written notice of
    exercise specifying the number of Common Shares with respect to
    which the stock option is being exercised and accompanied by
    payment in cash or certified cheque in full of the purchase
    price of the Common Shares then being purchased.

12. ADJUSTMENTS

			
	 		
    Appropriate adjustments to the authorized limits set forth in
    Section 5, in the number, class and/or type of Common
    Shares optioned and in the option price per share, both as to
    stock options granted or to be granted, shall be made by the
    Board to give effect to adjustments in the number of Common
    Shares which result from subdivisions, consolidations or
    reclassifications of the Common Shares, the payment of share
    dividends by the Corporation, the reconstruction, reorganization
    or recapitalization of the Corporation or other relevant changes
    in the capital of the Corporation.

 

13. MERGERS

			
	 		
    If the Corporation proposes to amalgamate or merge with another
    body corporate, the Corporation shall give written notice
    thereof to optionees in sufficient time to enable them to
    exercise outstanding vested stock options, to the extent they
    are otherwise exercisable by their terms, prior to the effective
    date of such amalgamation or merger if they so elect. The
    Corporation shall use its best efforts to provide for the
    reservation and issuance by the amalgamated or continuing
    corporation of an appropriate number of Common Shares, with
    appropriate adjustments, so as to give effect to the continuance
    of the stock options to the extent reasonably practicable. In
    the event that the Board determines in good faith that such
    continuance is not in the circumstances practicable, it may upon
    30 days’ notice to optionees terminate the stock
    options.

14. CHANGE OF CONTROL

			
	 		
    If a “change of control” of the Corporation occurs,
    each then outstanding stock option granted under this Plan may
    be exercised, in whole or in part, even if such option is not
    otherwise exercisable by its terms. For purposes of this Plan, a
    change of control of the Corporation shall be deemed to have
    occurred if any of the following occur, unless the Board adopts
    a plan after the Effective Date of this Plan that has a
    different definition (in which case such definition shall be
    applied), or the Committee decides to modify or amend the
    following definition through an amendment of this Plan:

			
	 	(a)	
    within any period of two consecutive years, individuals who at
    the beginning of such period constituted the Board and any new
    directors whose appointment by the Board or nomination for
    election by shareholders of the Corporation was approved by a
    vote of at least a majority of the directors then still in
    office who either were directors at the beginning of the period
    or whose appointment or nomination for election was previously
    so approved, cease for any reason to constitute a majority of
    the Board;
	 
	 	(b)	
    there occurs an amalgamation, merger, consolidation, wind-up,
    reorganization or restructuring of the Corporation with or into
    any other entity, or a similar event or series of such events,
    other than any such event or series of events which results in
    securities of the surviving or consolidated corporation
    representing 50% or more of the combined voting power of the
    surviving or consolidated corporation’s then outstanding
    securities entitled to vote in the election of directors of the
    surviving or consolidated corporation being beneficially owned,
    directly or indirectly, by the persons who were the holders of
    the Corporation’s outstanding securities entitled to vote
    in the election of directors of the Corporation prior to such
    event or series of events in substantially the same proportions
    as their ownership immediately prior to such event of the
    Corporation’s then outstanding securities entitled to vote
    in the election of directors of the Corporation;
	 
	 	(c)	
    50% or more of the fixed assets (based on book value as shown on
    the most recent available audited annual or unaudited quarterly
    consolidated financial statements) of the Corporation are sold
    or otherwise disposed of (by liquidation, dissolution, dividend
    or otherwise) in one transaction or series of transactions
    within any twelve month period;
	 
	 	(d)	
    any party, including persons acting jointly or in concert with
    that party, becomes (through a take-over bid or otherwise) the
    beneficial owner, directly or indirectly, of securities of the
    Corporation representing 20% or more of the combined voting
    power of the Corporation’s then outstanding securities
    entitled to vote in the election of directors of the
    Corporation, unless in any particular situation the Board
    determines in advance of such event that such event shall not
    constitute a change of control; or
	 
	 	(e)	
    the Board approves and/or recommends that shareholders accept,
    approve or adopt any transaction that would constitute a change
    of control under clause (b), (c) or (d) above and
    determines that the change of control resulting from such
    transaction will be deemed to have occurred as of a specified
    date earlier than the date under (b), (c) or (d), as
    applicable.

15. AMENDMENT OR DISCONTINUANCE OF THIS PLAN

			
	 		
    The Board may amend or discontinue the Plan at any time, without
    obtaining the approval of shareholders of the Corporation unless
    required by the relevant rules of the Toronto Stock Exchange,
    provided that, subject to Sections 12, 13,
    and 14, no such amendment may increase the aggregate
    maximum number of Common Shares that may be subject to stock
    options under this Plan, change the manner of determining the
    minimum option price, extend the option period under any option
    beyond 10 years, expand the assignment provisions of the
    Plan, permit non-employee directors to participate in the Plan
    or, without the consent of the holder of the option, alter or
    impair any option previously granted to an optionee under this
    Plan; and, provided further, for greater certainty, that,
    without the prior approval of the Corporation’s
    shareholders, stock options issued under this Plan shall not be
    repriced, replaced, or regranted through cancellation, or by
    lowering the option price of a previously granted stock option.
    Pre-clearance of the Toronto Stock Exchange of amendments to the
    Plan will be required to the extent provided under the relevant
    rules of the Toronto Stock Exchange.

 

16. EVIDENCE OF STOCK OPTIONS

			
	 		
    Each stock option granted under this Plan shall be evidenced by
    a written stock option agreement between the Corporation and the
    optionee which shall give effect to the provisions of this Plan
    and include such other terms as the Committee shall determine
    (“Stock Option Award Agreement”).

17. WITHHOLDING

			
	 		
    To the extent that the Corporation is required to withhold
    federal, provincial, state, local or foreign taxes in connection
    with any payment made or benefit realized by an optionee or
    other person hereunder, and the amounts available to the
    Corporation for such withholding are insufficient, it shall be a
    condition to the receipt of such payment or the realization of
    such benefit that the optionee or such other person make
    arrangements satisfactory to the Corporation for payment of the
    balance of such taxes required to be withheld, which
    arrangements (in the discretion of the Board) may include
    relinquishment of a portion of such benefit. Participants shall
    also make such arrangements in connection with the disposition
    of Common Shares acquired upon the exercise of option rights
    with respect to this Plan.

 

	 	 	 	 
	 		 	Potash Corporation of Saskatchewan Inc.

This certificate evidences and confirms the grant
to _______________________________ (the “Optionee”)
of options to purchase the number of Common Shares of the Corporation specified under Paragraph (1)
on the terms and subject to the conditions of the Potash Corporation of Saskatchewan Inc. 2007
Performance Option Plan (the “2007 Plan”) and the terms and conditions set forth below. In the
event of any inconsistency between the terms of the 2007 Plan and those set forth below, the terms
of the 2007 Plan shall control. Capitalized terms used below that are not defined in this
certificate shall have the meanings specified in the 2007 Plan.

	 	1.	 	Number of Shares: The Optionee is hereby granted options under the 2007 Plan to
Purchase _________________________ Common Shares.
	 
	 	2.	 	Option Exercise Price: The exercise price for each Common Share is
$____________________.
	 
	 	3.	 	Time and Conditions to Vesting: The options will become vested following the end of
the Performance Period January 1, 2007 through December 31, 2009 if, and to the extent,
the applicable Performance Measures for the Performance Period are achieved. Subject to
applicable conditions under the 2007 Plan with respect to continued employment during the
Performance Period and achievement of the minimum Performance Measures, the date for
vesting will be determined but will not be later than 30 days after the audited financial
statements of the Corporation for the 2009 fiscal year of the Corporation have been
approved by the Board. Upon vesting, the Optionee will have the right to purchase a
number of Common Shares covered by the option equal to the percentage determined in
accordance with the performance matrix and vesting scale provided under the 2007 Plan.
	 
	 	4.	 	Once vested, the options will continue to be exercisable until the expiry date for the
options of _______________.
	 
	 	5.	 	Notwithstanding the provisions of paragraph 4 above, this option will terminate as
provided in paragraph 10 of the 2007 Plan in the event that the actual and active
employment of the Optionee ceases. The option is personal to the Optionee and is not
assignable, except in accordance with the conditions attached hereto as Appendix I.
	 
	 	6.	 	Notice of exercise of the option is to be given in accordance with paragraph 11 of the
2007 Plan.
	 
	 	7.	 	Adjustments to the option may be made as provided in paragraph 12 of the 2007 Plan,
the provisions of paragraph 13 of the 2007 Plan shall apply in the event of a proposed
amalgamation or merger of the Corporation, and the provisions of paragraph 14 of the 2007
Plan will apply in the event of a “change of control” of the Corporation as defined in
that paragraph.
	 
	 	8.	 	This grant of option is subject to receipt of any necessary regulatory approvals and
shall be governed by the laws of Saskatchewan.

	 	 	 	 	 
	 	 	 	Potash Corporation of Saskatchewan Inc.

	Date:  	 	 	By:  	 
	 	 	 	 	 
	 	 	 	 	President and Chief Executive Officer
	 	 	 	 	 

 

Potash Corporation of Saskatchewan Inc.

2007 Performance Option Plan

1.     PURPOSE OF PLAN.   Potash Corporation of Saskatchewan
Inc. (the “Corporation”) by resolution of its Board of Directors (the “Board”) has established,
subject to shareholder approval at the Corporation’s 2007 Annual and Special Meeting of
shareholders, this Potash Corporation of Saskatchewan Inc. 2007 Performance Option Plan (the
“Plan”) to support the Corporation’s compensation philosophy of providing selected employees and
officers with an opportunity to: promote the growth and profitability of the Corporation; align
their interests with shareholders; and earn compensation commensurate with corporate performance.
The Corporation believes this Plan will directly assist in supporting the Corporation’s
compensation philosophy by providing participants with the opportunity through stock options, which
will vest, if at all, based on corporate performance over a three-year period, to acquire Common
Shares of the Corporation (“Common Shares”).

2.     DURATION OF THIS PLAN. This Plan was adopted by the Board on February 20, 2007 to be effective
as of January 1, 2007 (the “Effective Date”), subject to shareholder approval at the Corporation’s
2007 Annual and Special Meeting of shareholders, and shall remain in effect, unless sooner
terminated as provided herein, until one (1) year from the Effective Date, at which time it will
terminate. After this Plan is terminated, no stock options may be granted but stock options
previously granted shall remain outstanding in accordance with their applicable terms and
conditions and this Plan’s terms and conditions.

3.     ADMINISTRATION. This Plan shall be administered by the Compensation Committee of the Board or
any other committee designated by the Board to administer this Plan (the “Committee”). The
Committee shall be responsible for administering this Plan, subject to this Section 3 and the other
provisions of this Plan. The Committee may employ attorneys, consultants, accountants, agents, and
other individuals, any of whom may be an employee, and the Committee, the Corporation, and its
officers and directors shall be entitled to rely upon the advice, opinions, or valuations of any
such individuals. All actions taken and all interpretations and determinations made by the
Committee shall be made in the Committee’s sole discretion and shall be final and binding upon the
participants, the Corporation, and all other interested individuals. To the extent applicable, the
Plan shall be administered with respect to optionees subject to the laws of the U.S. so as to avoid
the application of penalties pursuant to Section 409A of the Internal Revenue Code.

4.     AUTHORITY OF THE COMMITTEE. The Committee shall have full and exclusive discretionary power to
interpret the terms and the intent of this Plan and any Stock Option Award Agreement or other
agreement or document ancillary to or in connection with this Plan, to determine eligibility for
stock options and to adopt such rules, regulations, forms, instruments, and guidelines for
administering this Plan as the Committee may deem necessary or proper. Such authority shall include
adopting modifications and amendments to any Stock Option Award Agreement that are necessary to
comply with the laws of the countries and other jurisdictions in which the Corporation and/or its
subsidiaries operate.

5.     SHARES SUBJECT TO STOCK OPTIONS. The aggregate number of Common Shares issuable after February
20, 2007 pursuant to stock options under this Plan may not exceed 1,000,000 Common Shares. The
aggregate number of Common Shares in respect of which stock options have been granted to any one
person pursuant to this Plan and which remain outstanding shall not at any time exceed 250,000. The
authorized limits under this Plan shall be subject to adjustment under Sections 12 and 13.
If any stock option granted under this Plan, or any portion thereof, expires or terminates for any
reason without having been exercised in full, the Common Shares with respect to which such option
has not been exercised shall again be available for further stock options under this Plan;
provided, however, that any stock option that is granted under this Plan that does not vest as a
result of a failure to satisfy the Performance Measures, shall not be again available for grant
under this Plan.

6.     GRANT OF STOCK OPTIONS. From time to time the Board may designate individual officers and
employees of the Corporation and its subsidiaries eligible to be granted options to purchase Common
Shares and the number of Common Shares which each such person will be granted a stock option to
purchase; provided that the aggregate number of Common Shares subject to such stock options may not
exceed the number provided for in Section 5 of this Plan. Non-employee directors and other
non-employee contractors and third party vendors are not eligible to participate in this Plan.

7.     OPTION PRICE. The option price for any option granted under this Plan to any optionee shall be
fixed by the Board when the option is granted and shall be not less than the fair market value of
the Common Shares at such time which, for optionees resident in the United States and any other
optionees designated by the Board, shall be deemed to be the closing price per Common Share on the
New York Stock Exchange on the last trading day immediately preceding the day the option is granted
and, for all other optionees, shall be deemed to be the closing price per Common Share on the
Toronto Stock Exchange on the last trading day immediately preceding the day the option is granted;
provided that, in either case, if the Common Shares did not trade on such exchange on such day the
option price shall be the closing price per share on such exchange on the last day on which the
Common Shares traded on such exchange prior to the day the option is granted.

8.     VESTING OF STOCK OPTIONS. Subject to achievement of Performance Measures as certified and
approved by the Audit Committee of the Board, stock options granted under this Plan will vest no
later than thirty (30) days after the audited financial statements for the applicable Performance
Period have been approved by the Board.

9.     PERFORMANCE MEASURES FOR VESTING OF STOCK OPTIONS.

	(a)	 	The Performance Measures which will be used to determine the degree to which stock options
will vest over the three-year period beginning the first day of the fiscal year in which they
are granted (the “Performance Period”) shall be cash flow return on investment (“CFROI”) and
weighted average cost of debt and equity capital (“WACC”).

	 	(i)	 	CFROI is the ratio of after tax operating cash flow to average gross investment over the
fiscal year, calculated as A divided by B, where (1) A equals operating income plus
nonrecurring or unusual items plus accrued incentive awards plus depreciation and
amortization less cash taxes, and (2) B equals the average of total assets plus accumulated
depreciation plus accumulated amortization less cash and cash equivalents less non interest
bearing current liabilities.
	 
	 	(ii)	 	WACC is the weighted average cost of debt and equity capital, calculated as [A times the
product of B divided by C] plus [D times the product of E divided by C], where (1) A equals
the after-tax market yield cost of debt, (2) B equals the market value of debt less cash and
cash equivalents (3) C equals the market value of debt less cash and cash equivalents, plus
the market value of equity, (4) D equals the cost of equity, and (5) E equals the market
value of equity.

	(b)	 	In determining the number of stock options that will actually vest based on the degree to
which the Performance Measures have been attained during the applicable Performance Period,
the following chart shall be utilized which shows the three year average excess of CFROI being
greater than WACC and the respective portion of the stock option that will vest:

	 	 	 	 	 	 	 
	Performance Measure	 	Vesting Scale
	3 year average excess of	 	% of Stock Option
	CFROI > WACC	 	Grant Vesting	 
	 	<0%	 	 	 	0%	 
	 	0.20%	 	 	 	30%	 
	 	1.20%	 	 	 	70%	 
	 	2.20%	 	 	 	90%	 
	 	2.50%	 	 	 	100%	 

	(c)	 	In assessing the portion of the stock options that shall vest in accordance with the above
chart, the following shall be done:

	 	(i)	 	Each year, the CFROI and WACC will be calculated in accordance with the definitions
herein, based on the audited financial statements and approved by the Audit Committee.
	 
	 	(ii)	 	In each Performance Period, the average of the three fiscal years shall be calculated by
taking the simple average of the individual years’ results.
	 
	 	(iii)	 	The resulting three-year average will then be applied, using the scale above to
determine the number of stock options, if any, that will vest as of the end of the
Performance Period.
	 
	 	(iv)	 	For results falling between the reference points in the chart above, the level of vesting
shall be mathematically interpolated between the reference points.

10.   TERMS OF STOCK OPTIONS.   The period during which a stock option is exercisable may not exceed
10 years from the date the stock option is granted, and the Stock Option Award Agreement may
contain provisions limiting the number of Common Shares with respect to which the stock option may
be exercised in any one year. Each stock option agreement shall contain provisions to the effect
that:

	(a)	 	if the employment of an optionee as an officer or employee of the Corporation or a subsidiary
terminates, by reason of his or her death, or if an optionee who is a retiree pursuant to
Section 10(b) dies, the legal personal representatives of the optionee will be entitled to
exercise any unexercised vested options, including such stock options that may vest after the
date of death, during the period ending at the end of the twelfth calendar month following the
calendar month in which the optionee dies, failing which exercise the stock options terminate;

	(b)	 	subject to the terms of Section 10(a) above, if the employment of an optionee as an officer
or employee of the Corporation or a subsidiary terminates, by reason of retirement in
accordance with the then prevailing retirement policy of the Corporation or subsidiary, the
optionee will be entitled to exercise any unexercised vested stock options, including such
stock options that may vest after the date of retirement, during the period ending at the end
of the 36(th) month following the calendar month in which the optionee retires, failing which
exercise the stock options terminate;
	 
	(c)	 	if the employment of an optionee as an officer or employee of the Corporation or a subsidiary
terminates, for any reason other than as provided in Sections 10(a) or (b), the optionee will
be entitled to exercise any unexercised vested stock options, to the extent exercisable at the
date of such event, during the period ending at the end of the calendar month immediately
following the calendar month in which the event occurs, failing which exercise the stock
options terminate;
	 
	(d)	 	for greater certainty and for these purposes, an optionee’s employment with the Corporation
or a subsidiary shall be considered to have terminated effective on the last day of the
optionee’s actual and active employment with the Corporation or subsidiary whether such day is
selected by agreement with the optionee or unilaterally by the Corporation or subsidiary and
whether with or without advance notice to the optionee. For the avoidance of doubt, no period
of notice that is given or ought to have been given under applicable law in respect of such
termination of employment will be utilized in determining an optionee’s entitlement under the
Plan. The employment of an optionee with the Corporation shall be deemed to have terminated
for all purposes of the Plan if such person is employed by or provides services to a person
that is a subsidiary of the Corporation and such person ceases to be a subsidiary of the
Corporation, unless the Committee determines otherwise; and
	 
	(e)	 	each stock option is personal to the optionee and is not assignable, except (i) as provided
in Section 10(a), and (ii) at the election of the Board, a stock option may be assignable to
the spouse, children and grandchildren of the original optionee and to a trust, partnership or
limited liability company, the entire beneficial interest of which is held by one or more of
the foregoing.
	 
	 	 	Nothing contained in Sections 10(a), (b) or (c) shall extend the period during which a stock
option may be exercised beyond its stipulated expiration date or the date on which it is
otherwise terminated in accordance with the provisions of this Plan.
	 
	 	 	If a stock option is assigned pursuant to Section 10(e)(ii), the references in Sections
10(a), (b) and (c) to the termination of employment or death of an optionee shall not relate
to the assignee of a stock option but shall relate to the original optionee. In the event of
such assignment, legal personal representatives of the original optionee shall not be
entitled to exercise the assigned stock option, but the assignee of the stock option or the
legal personal representatives of the assignee may exercise the stock option during the
applicable specified period.

11.   EXERCISE OF STOCK OPTIONS.   Subject to the provisions of this Plan, a vested stock option may
be exercised from time to time by delivering to the Corporation at its registered office a written
notice of exercise specifying the number of Common Shares with respect to which the stock option is
being exercised and accompanied by payment in cash or certified cheque in full of the purchase
price of the Common Shares then being purchased.

12.   ADJUSTMENTS.   Appropriate adjustments to the authorized limits set forth in Section 5, in the
number, class and/or type of Common Shares optioned and in the option price per share, both as to
stock options granted or to be granted, shall be made by the Board to give effect to adjustments in
the number of Common Shares which result from subdivisions, consolidations or reclassifications of
the Common Shares, the payment of share dividends by the Corporation, the reconstruction,
reorganization or recapitalization of the Corporation or other relevant changes in the capital of
the Corporation.

13.   MERGERS.   If the Corporation proposes to amalgamate or merge with another body corporate, the
Corporation shall give written notice thereof to optionees in sufficient time to enable them to
exercise outstanding vested stock options, to the extent they are otherwise exercisable by their
terms, prior to the effective date of such amalgamation or merger if they so elect. The Corporation
shall use its best efforts to provide for the reservation and issuance by the amalgamated or
continuing corporation of an appropriate number of Common Shares, with appropriate adjustments, so
as to give effect to the continuance of the stock options to the extent reasonably practicable. In
the event that the Board determines in good faith that such continuance is not in the circumstances
practicable, it may upon 30 days’ notice to optionees terminate the stock options.

14.   CHANGE OF CONTROL.   If a “change of control” of the Corporation occurs, each then outstanding
stock option granted under this Plan may be exercised, in whole or in part, even if such option is
not otherwise exercisable by its terms. For purposes of this Plan, a change of control of the
Corporation shall be deemed to have occurred if any of the following occur, unless the Board adopts
a plan after the Effective Date of this Plan that has a different definition (in which case such
definition shall be applied), or the Committee decides to modify or amend the following definition
through an amendment of this Plan:

	(a)	 	within any period of two consecutive years, individuals who at the beginning of such period
constituted the Board and any new directors whose appointment by the Board or nomination for
election by shareholders of the Corporation was approved by a vote of at least a majority of
the directors then still in office who either were directors at the beginning of the period or
whose appointment or nomination for election was previously so approved, cease for any reason
to constitute a majority of the Board;
	 
	(b)	 	there occurs an amalgamation, merger, consolidation, wind-up, reorganization or restructuring
of the Corporation with or into any other entity, or a similar event or series of such events,
other than any such event or series of events which results in securities of the surviving or
consolidated corporation representing 50% or more of the combined voting power of the
surviving or consolidated corporation’s then outstanding securities entitled to vote in the
election of directors of the surviving or consolidated corporation being beneficially owned,
directly or indirectly, by the persons who were the holders of the Corporation’s outstanding
securities entitled to vote in the election of directors of the Corporation prior to such
event or series of events in substantially the same proportions as their ownership immediately
prior to such event of the Corporation’s then outstanding securities entitled to vote in the
election of directors of the Corporation;
	 
	(c)	 	50% or more of the fixed assets (based on book value as shown on the most recent available
audited annual or unaudited quarterly consolidated financial statements) of the Corporation
are sold or otherwise disposed of (by liquidation, dissolution, dividend or otherwise) in one
transaction or series of transactions within any twelve month period;
	 
	(d)	 	any party, including persons acting jointly or in concert with that party, becomes (through a
take-over bid or otherwise) the beneficial owner, directly or indirectly, of securities of the
Corporation representing 20% or more of the combined voting power of the Corporation’s then
outstanding securities entitled to vote in the election of directors of the Corporation,
unless in any particular situation the Board determines in advance of such event that such
event shall not constitute a change of control; or
	 
	(e)	 	the Board approves and/or recommends that shareholders accept, approve or adopt any
transaction that would constitute a change of control under clause (b), (c) or (d) above and
determines that the change of control resulting from such transaction will be deemed to have
occurred as of a specified date earlier than the date under (b), (c) or (d), as applicable.

15.   AMENDMENT OR DISCONTINUANCE OF THIS PLAN.   The Board may amend or discontinue the Plan at any
time, without obtaining the approval of shareholders of the Corporation unless required by the
relevant rules of the Toronto Stock Exchange, provided that, subject to Sections 12, 13, and 14, no
such amendment may increase the aggregate maximum number of Common Shares that may be subject to
stock options under this Plan, change the manner of determining the minimum option price, extend
the option period under any option beyond 10 years, expand the assignment provisions of the Plan,
permit non-employee directors to participate in the Plan or, without the consent of the holder of
the option, alter or impair any option previously granted to an optionee under this Plan; and,
provided further, for greater certainty, that, without the prior approval of the Corporation’s
shareholders, stock options issued under this Plan shall not be repriced, replaced, or regranted
through cancellation, or by lowering the option price of a previously granted stock option.
Pre-clearance of the Toronto Stock Exchange of amendments to the Plan will be required to the
extent provided under the relevant rules of the Toronto Stock Exchange.

16.   EVIDENCE OF STOCK OPTIONS.   Each stock option granted under this Plan shall be evidenced by a
written stock option agreement between the Corporation and the optionee which shall give effect to
the provisions of this Plan and include such other terms as the Committee shall determine (“Stock
Option Award Agreement”).

17.   WITHHOLDING.   To the extent that the Corporation is required to withhold federal, provincial,
state, local or foreign taxes in connection with any payment made or benefit realized by an
optionee or other person hereunder, and the amounts available to the Corporation for such
withholding are insufficient, it shall be a condition to the receipt of such payment or the
realization of such benefit that the optionee or such other person make arrangements satisfactory
to the Corporation for payment of the balance of such taxes required to be withheld, which
arrangements (in the discretion of the Board) may include relinquishment of a portion of such
benefit. Participants shall also make such arrangements in connection with the disposition of
Common Shares acquired upon the exercise of option rights with respect to this Plan.

 

APPENDIX I

This option may be assigned, in whole or in part, only if the following conditions are
satisfied:

	 	1.	 	No consideration may be paid in connection with the assignment.
	 
	 	2.	 	An assignment may be made only to one or more persons or entities included in
the following: the original Optionee’s spouse, children and grandchildren and a
trust, partnership or limited liability company, the entire beneficial interest of
which is held by one or more of the foregoing.
	 
	 	3.	 	Prior to any such assignment,

	 	(a)	 	the assignor shall advise the Corporation, in a writing
delivered to Potash Corporation of Saskatchewan Inc., 122 1st
Avenue South, Saskatoon, Saskatchewan, Canada S7K 7G3, Attention: General
Counsel, of all pertinent information concerning the proposed assignment,
including the date of the assignment, the number of shares involved, the
relationship of the assignee to the original Optionee and the address and
telephone number of the assignee; and
	 
	 	(b)	 	the assignee shall agree in a writing so delivered to advise
the Corporation in writing of any change in the name, address or telephone
number of the assignee.

The decision to assign all or part of this option involves complex tax and financial
considerations. An Optionee should consult the Optionee’s own tax and financial advisors before
such assignment.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]