Document:

EXHIBIT 10.6

                            SEPARATION OF EMPLOYMENT
                                       AND
                            GENERAL RELEASE AGREEMENT

          This  Separation  of  Employment  and  General  Release Agreement (the
"Agreement")  is  made  and entered into as of the 14th day of January, 2003, by
and  between  Apollo   Gold   Corporation   ("Company")  and  Donald  S.  Robson
("Employee").  For  purposes  of  this  Agreement, Company and Employee shall be
collectively  referred  to  as  the  "parties"  or  individually  as  a "party".

                                    RECITALS

                  (A)   Company  employed  Employee in accordance with the terms
                        of  a  written  employment agreement dated April 1, 2002
                        (the  "Employment  Agreement")   and  Employee  accepted
                        employment  with  Company  and has voluntarily agreed to
                        resign  from  his  employment  but  remain as a Director
                        until  a  suitable replacement Director has been located
                        by  the  Company.

                  (B)   Company  and  Employee  wish to terminate the employment
                        relationship  on  a mutually agreeable basis and resolve
                        by this Agreement any potential clams which Employee may
                        have  against  Company  by  reason of the termination of
                        Employee's  employment.

                  (C)   The effective date of this Agreement will be on the date
                        the  Agreement  is   executed  by  Employee  ("Effective
                        Date").

          NOW,  THEREFORE, in consideration of the mutual agreements, conditions
and  covenants  herein  set  forth,  the  parties  hereto  agree  as  follows:

1.        TERMINATION  OF  EMPLOYMENT  POSITION
          -------------------------------------

          Upon  the  mutual  agreement of Company and Employee, Employee resigns
from  his employment effective as of October ____, 2002 (the "Separation Date").
From  and  after  the Separation Date, Employee will no longer perform duties or
hold  himself  out as or represent himself to be an employee of the Company. The
Employee  acknowledges  that  he  will  remain  as a Director of Company until a
suitable  replacement Director has been located by Company and agrees to execute
a  written  form  of  resignation  in  blank  for  this  purpose.

2.        PAYMENT  AND  BENEFITS
          ----------------------

          In  full  satisfaction  of  all  payments  and  other  obligations due
Employee  from  Company, including, without limitation, all obligations (if any)
for  salary,  bonus,  accrued  and  unused vacation pay and employee benefits of
every  kind  and  description and excepting any expenses due to be reimbursed by
Company  to  Employee, in place of and in addition to any severance pay Employee
would be entitled to under any existing Company severance policy, if any, and in
consideration  for  the  release  of Claims as set forth in Section 5.01 of this
Agreement,  Company  shall:

<PAGE>
          (i)  Pay  Employee  in  accordance  with Schedule "C" attached hereto.

          (ii) Employee  acknowledges  and  agrees that the performance criteria
               set  out in the attached Schedule "A", which is applicable to all
               eligible employees of Company, is currently being reviewed by the
               Board  of  Directors  of Company for the purpose of revising such
               performance  criteria  and accordingly is subject to amendment at
               the  discretion  of  the  Board  of  Directors  of  Company.

          (iii)  All  health,   dental,   medical  and  insurance  benefits  are
               discontinued  the  Effective  Date.

          (iv) Legal  expenses  up  to  a maximum of CN$2000 will be allowed and
               payable  to  Employee  with  proper  receipts  submitted.

          (v)  Employee  is to be reimbursed for all outstanding expense account
               amounts.

          All  payments  made hereunder shall be subject to all applicable taxes
and  withholdings  required  by  law.

3.        SURRENDER  OF  COMPANY  PROPERTY
          --------------------------------

          On or before the Effective Date, Employee shall deliver to Company, to
the  extent  not  already  delivered, all property of Company in his possession,
including,  without  limitation,  all Company files and documents in any form or
medium;  employee  lists and files; keys and card keys for Company's doors, file
cabinets  and other locks; all credit cards provided to him by Company; printer,
diskettes  and  other  equipment provided to him by Company except that Employee
shall  be  entitled to retain his Dell laptop computer; and all Company business
cards  and  letterhead  paper, envelopes, and labels.  Except as may be required
for  consulting  assignments,  Employee  further agrees that after the Effective
Date  he  will  (i)  not  remove  any property or documents from the premises of
Company,  other than his personal property or documents which do not include any
information relating to Company; and (ii) return promptly to Company any written
communications,  documents, or other property of any kind which were received by
him  after  the  Effective Date and which were sent to him in his capacity as an
employee  of  Company.

4.        CONFIDENTIALITY  OBLIGATIONS
          ----------------------------

4.01      Confidential Information  -  "Confidential   Information"   means  any
          -------------------------
          information  of a confidential or proprietary nature which (1) relates
          to  the business of Company or any persons or entities affiliated with
          Company;  (2)  has  been  created,  discovered  or  developed  by,  or
          otherwise  become  known  to  Company  or  any  affiliates of Company.
          Confidential  Information  includes,  but  is  not  limited  to, trade
          secrets,  processes,  formulas,  computer  programs,  data,  know-how,
          inventions,  improvements,  techniques,  marketing  and product plans,
          strategies,  forecasts,  employee  lists, customer lists and suppliers
          lists.

                                        2
<PAGE>
4.02      Nondisclosure - Employee acknowledges and agrees that he has had
          -------------
          access  to  or  has received any and all Confidential Information in a
          confidential  capacity  and  will  maintain  and  protect  the
          confidentiality   thereof   in   accordance  with  the  terms  of  the
          Confidentiality  Agreement  and  will  not  disclose  any Confidential
          Information except in accordance with the terms and conditions of such
          agreement.  Under  no  circumstances  and  at  no time shall Employee,
          directly  or  indirectly,  disclose,  divulge,  render  or  offer  any
          knowledge or information with respect to any Confidential Information,
          except  as  may  be  specifically  requested  by  Company  in  writing
          delivered  to  Employee.  All  Confidential  Information  received  by
          Employee  was  and shall be the sole and exclusive property of Company
          and  its  successors  and assigns. Employee hereby agrees to assign to
          Company and its successors and assigns, any rights or interests he may
          have  or  acquire  in  any  Confidential  Information. Employee hereby
          agrees to deliver promptly to Company all material, documents and data
          of  any  nature  containing  or  pertaining  to  any  Confidential
          Information.  Employee  further  agrees  not to duplicate or otherwise
          reproduce  the  Confidential  Information.

5.        RELEASE  AND  WAIVER
          --------------------

5.01      Release  and  Waiver  of  Claims
          --------------------------------

     (a)  See Schedule "B" attached.

6.        ADDITIONAL  AGREEMENT
          ---------------------

6.01      Confidentiality  of  the  Agreement  -  Company  and  Employee
          -----------------------------------
          acknowledge  and agree that the terms and provisions of this Agreement
          were  made  in  strictest  confidence  and  shall remain confidential,
          except  for  any disclosures to the accountants or attorneys of either
          party  or  which  may  be  required  by  applicable  law and except as
          otherwise  required  to  comply with the provisions of this Agreement,
          and  that  they  shall not disclose or cause or allow to be disclosed,
          privately  or  publicly,  any  of  the  terms  or  provisions  of this
          Agreement  to  any  other  person  or  entity.

6.02      Negative  Information;  Employment  Information  -  Employee  agrees
          -----------------------------------------------
          that he has not made, and agrees to refrain from making, any negative,
          detracting  or unfavorable statements concerning Company, its business
          or  business endeavors, its products or product history, or its former
          or  present  officers,  directors,  agents, distributors or employees,
          which may have the effect of diminishing the reputations of Company or
          Company's  former or present officers, directors, agents, distributors
          or  employees  or  of  its  business  or  business  endeavors.

6.03      Interference  with  the Agreement - Company  and  Employee  agree  not
          ---------------------------------
          to  take any action which would interfere with the performance of this
          Agreement  by  the  other party or which would adversely affect any of
          the  rights  provided  for  hereunder.

                                        3
<PAGE>
6.04      In  the  event of  breach  or  non-performance  by Company, the rights
          and  obligations  of  Employee  and  Company  shall  be  determined by
          reference  to  the  Employment  Agreement.

7.        NOTICES
          -------

7.01      Addresses  -  Any  and  all  notices  or  other  communications  which
          ---------
          either party shall be required or may elect to provide the other party
          pursuant  to  this  Agreement  shall be in writing unless otherwise so
          agreed.  Any  notice  or  communication  hereunder shall be personally
          delivered,  faxed  (receipt  confirmed)  or  sent  by  certified  or
          registered mail, postage prepaid, return receipt requested, or sent by
          overnight  courier service providing evidence of delivery to the other
          party  at  the  applicable  address  set  forth  below.

          If  to  Company:          Apollo  Gold  Corporation
                                    4601  DTC  Blvd.
                                    Suite  750
                                    Denver,  Colorado  80237
                                    U.S.A.
                                    Attention:     R.  David  Russell
                                                   President  and  C.E.O.

          If  to  Employee:         Donald  S.  Robson
                                    32  Eastbourne  Avenue
                                    Toronto,  Ontario
                                    M5P  2E9

7.02      Delivery  Standards - Delivery  or  service  of  any written notice or
          -------------------
          communication  shall  be  deemed completed (i) upon personal delivery,
          (ii)  if  faxed,  upon  electronic  acknowledgement  thereof, (iii) if
          mailed,  three  business days after deposit in the United States mail,
          postage  prepaid,  and  (iv)  if  by  overnight  courier  service, one
          business  day  after  deposit  with  the  courier  service.

7.03      Change  of  Address  -  Any  party  may  change  the  address to which
          -------------------
          notices  are  to  be addressed by giving the other party notice in the
          manner  provided  in  this  Section  7.

8.        MISCELLANEOUS
          -------------

8.01      Counterparts  -  This  Agreement  may  be  executed  in  one  or  more
          ------------
          counterparts,  each  of  which  shall  be deemed an original, and will
          become  effective  and binding upon the parties at such time as all of
          the signatories hereto have signed each counterpart of this Agreement.
          Each  of  the  parties  hereto  shall  sign  a  sufficient  number  of
          counterparts so that each party will receive a fully executed original
          of  this  Agreement.

                                        4
<PAGE>
8.02      Further  Assurances  -  The  parties  hereto  agree  to  execute  such
          -------------------
          other  documents  and  to  take such other action as may be reasonably
          necessary  to  further  the  purposes  of  this  Agreement.

8.03      Governing Law - This  Agreement  and  any  other documents referred to
          -------------
          herein  shall be governed by, and construed and enforced in accordance
          with, the laws of the Province of Ontario, without regard to conflicts
          of  laws  principles  thereof.

8.04      Benefit  and  Burden  -  This  Agreement  shall  be  binding upon, and
          --------------------
          inure  to the benefit of, the parties hereto and, as applicable, their
          respective  heirs,  executors,  administrators,  representatives,
          successors  and  assigns.

8.05      Waiver  and  Amendment  - No  breach  of  any  provision hereof can be
          ----------------------
          waived unless in writing. Waiver of any one breach shall not be deemed
          to  be a waiver of any other breach of the same or any other provision
          hereof.  This  Agreement  may  be  amended only by a written agreement
          executed  by  the  parties.

8.06      Captions  -  Paragraph  titles  or  captions  contained  in  this
          --------
          Agreement  are  used  for  convenience  of  reference only and are not
          intended to and shall not in any way enlarge, define, limit, extend or
          describe  the  rights  or  obligations  of  the  parties or affect the
          meaning  or  construction  of  this Agreement or any provision hereof.

8.07      Survival  of  Warranties  and  Representations  -  The  warranties and
          ----------------------------------------------
          representations  of  this  Agreement are deemed to survive the date of
          execution  hereof.

8.08      Severability - In  the  event  any  provision of this Agreement should
          ------------
          be  held  to  be  void,  voidable or unenforceable in any respect, the
          remaining  provisions  shall  remain  in  full  force  and  effect.

8.09      Entire  Agreement - All  agreements,  covenants,  representations  and
          -----------------
          warranties,  express  and  implied,  oral  and written, of the parties
          hereto  concerning  the  subject matter of this Agreement, or any part
          thereof,  are  contained  in  this  Agreement.

                                        5
<PAGE>
          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
respective  dates  set  forth  below.

                              APOLLO  GOLD  CORPORATION

                              By:     /s/
                                      -----------------------------------------
                                      Name:
                                      Title:

                              Date:
                                   --------------------------------------------

                              /s/  Donald S. Robson
                              -------------------------------------------------
                              DONALD  S.  ROBSON

                              Date:
                                   --------------------------------------------

                                        6
<PAGE>
                                  SCHEDULE "A"

                            [INTENTIONALLY DELETED]

                                        7
<PAGE>
                                  SCHEDULE "B"

                              RELEASE AND INDEMNITY
                              ---------------------

          IN  CONSIDERATION  for  the payment of the sum of Ten ($10.00) Dollars
included  in the other good and valuable consideration, the sufficiency of which
is  hereby  acknowledged,  DONALD  S.  ROBSON for himself, his heirs, executors,
administrators  and  assigns, hereby releases and forever discharges APOLLO GOLD
CORPORATION  and  all  of  its parents, subsidiaries, affiliates, unincorporated
divisions,  predecessors,  successors  and  assigns,  and  all of their past and
present officers, directors, representatives, agents, shareholders and employees
(collectively  the  "Releasees")  from  any  and  all claims, demands, causes of
action,  fees  and liabilities of any kind whatsoever, whether known or unknown,
which Donald Robson ever had, now has or may have hereafter against any of them,
arising  out  of  or  in  any  way  relating to the cessation of Donald Robson's
employment,  including but not limited to all claims that could have been raised
under the Employment Standards Act of 2000, as amended, the Human Rights Code of
Ontario, as amended, Workplace Safety and Insurance Act, Occupational Health and
Safety  Act,  including  but  not limited to any claim for commissions, vacation
pay,  health  benefits,  bonuses,  payment under any bonus or other compensation
plan  and  any  other  compensation  of any kind whatsoever under any federal or
provincial  law,  by statute, regulation, contract or tort law, or otherwise and
that  he has not been subjected to any unequal treatment contrary to the Ontario
Human  Rights  Code.

          AND  FOR  THE SAID CONSIDERATION I further agree not to make any claim
or demand or commence, maintain or prosecute any action, cause or proceeding for
damages,  compensation, loss or any relief whatsoever against the said Releasees
in  respect of any cause, matter or thing herein released.  I further agree that
this  Release shall operate conclusively as an estoppel in the event of any such
claim,  action  or  proceeding  and  may  be  pleaded  accordingly.

          AND  FOR  THIS  CONSIDERATION  I  further  agree to indemnify and save
harmless  the  Releasees from any and all claims or demands under the Income Tax
                                                                      ----------
Act  of Canada and/or the Income Tax Act of the Province of Ontario and/or under
---                       --------------
the Employment Insurance Act of Canada, in respect of any failure on the part of
    ------------------------
the Releasees to withhold income tax and/or any amounts previously paid to me by
Human  Resources  Development Canada on account of employment insurance benefits
received from the said consideration any interest or penalties relating to same,
and  further,  to indemnify the Releasees for any costs or expenses it may incur
in  defending  such  claims  or  demands.

          NOTWITHSTANDING  THE  FOREGOING,  this  Release shall not apply to and
shall  not release any actions, causes of action, claims and demands which I may
have  relating to the failure or the refusal of the Releasees to comply with the
terms  of  the  Separation of Employment and General Release Agreement as agreed
upon.

          AND  I  HEREBY  DECLARE  that  I  fully  understand  the terms of this
settlement  and  have  received  or  was  afforded  the  opportunity  to receive
independent legal advice prior to executing this document and that I voluntarily
accept  the  consideration  offered  for  the  purpose  of making full and final
compromise  and  settlement  of  all  claims  as  aforesaid.

                                        8
<PAGE>
          IT  IS  UNDERSTOOD AND AGREED that I hereby undertake and agree not to
disclose  the  facts of this settlement or agreement or the terms thereof to any
third  party  without  the written consent of the Releasees, except persons from
whom  I  receive professional advice, my immediate family or as required by law.

          THIS  RELEASE  AND  INDEMNITY shall be deemed to have been made in and
shall  be  construed  in  accordance  with  the laws of the Province of Ontario.

          THIS  RELEASE  AND  INDEMNITY  shall  inure  to  the benefit of and be
binding  upon  the  undersigned,  the  Releasees  and  their  respective  heirs,
executors,  administrators,  legal  personal  representatives,  successors  and
assigns.

          IT  IS  UNDERSTOOD  AND  AGREED  that  the  giving  of  the  aforesaid
consideration  is  deemed to be no admission whatsoever of liability on the part
of  the  Releasees.

          IN  WITNESS  WHEREOF  I  have  hereunto  set  my  hand  and  seal  at
____________  this  ____  day  of  __________,  2002.

SIGNED, SEALED AND DELIVERED             )
in the presence of                       )
                                         )
                                         )
                                         )
____________________________________     )  ____________________________________
Witness                                     DONALD  S.  ROBSON

                                        9
<PAGE>
<TABLE>
<CAPTION>
                                        SCHEDULE "C"

<S>                                  <C>     <C>          <C>          <C>
MR. DONALD S. ROBSON
(CANADIAN DOLLARS)

Monthly Salary                               $ 22,925.00
Severance 20 Month                           $458,500.00

***Vehicle Purchase Benefit**                $ 15,000.00
                                             -----------

Total Gross                                  $473,500.00

Taxable Income                               $473,500.00

Deductions
Canada Pension Plan                          $  1,801.80
Employment Insurance                         $    819.00
30% Withholding Tax                  30.00%  $142,050.00

Total Deductions                             $144,670.80

Net Pay Before Car Purchase                  $313,829.20

Purchase of Car                              $ 15,000.00
Net Pay                                      $298,829.20

Remittance to the Receiver General             Employee     Employer
Canada Pension Plan                          $  1,801.80  $  1,801.80  $  3,603.60
Employment Insurance                         $    819.00  $  1,146.60  $  1,965.60
Withholding Tax                        0.3   $142,050.00               $142,050.00

Total                                        $144,670.80  $  2,948.40  $147,619.20

Total Monies Paid
Net Pay to Donald S. Robson                  $298,829.20

Receiver General of Canada                   $147,619.20
</TABLE>

                                       10
<PAGE>Exhibit 10.7

                             APOLLO GOLD CORPORATION

                 PLAN OF ARRANGEMENT STOCK OPTION INCENTIVE PLAN

          WHEREAS  pursuant  to  an  arrangement  agreement  (the  "ARRANGEMENT
AGREEMENT") made as of the 25th day of June, 2002 (the "EFFECTIVE DATE") between
International  Pursuit  Corporation  ("PURSUIT")  and  Nevoro  Gold  Corporation
("NEVORO"),  Pursuit and Nevoro agreed to amalgamate and merge the operations of
Pursuit  and  Nevoro  to  form  Apollo  Gold Corporation (the "COMPANY"), on and
subject  to  the terms the conditions contained in the Arrangement Agreement and
the  plan  of  arrangement  (the  "PLAN  OF  ARRANGEMENT")  attached  thereto;

          AND  WHEREAS  pursuant  to  the  terms of the Plan of Arrangement, the
Company  was  authorized  ,  on  the  Effective  Date,  as  soon  as  reasonable
practicable  after  the  completion  of  the  steps  necessary  to  effect  the
Arrangement, to establish an incentive stock option plan and to grant to the key
employees,  officers and directors of the Company (as determined by the board of
directors  of  the  Company)  options  (the "ARRANGEMENT OPTIONS") to acquire an
aggregate  of  2,780,412  Common  Shares  of the Company at an exercise price of
US$0.80 per share, vesting as to an aggregate of 695,103 Common Shares every six
months  for  a  period  of  24  months  following  the  Effective  Date;

          AND  WHEREAS  pursuant  to  a letter (the "TSX APPROVAL LETTER") dated
July 31, 2002, the Toronto Stock Exchange ("TSX") gave its final approval to the
creation  and  granting  of  the  Arrangement  Options;

          AND  WHEREAS  the Company wishes to create this incentive stock option
plan  for  the  purposes of granting the Arrangement Options to senior officers,
directors  and key employees of the Company and its subsidiaries and affiliates,
as  well as any other person or company engaged to provide ongoing management or
consulting  services  to  the  Company  or  to  its  subsidiaries and affiliates
(collectively,  the  "SERVICE  PROVIDERS"),  as follows (which plan is hereafter
referred  to  as  the  "PLAN"):

1.   DEFINITIONS

          As used herein, the following terms shall have the following meanings:

     (a)  "AFFILIATE"  shall  have  the  meaning  ascribed  to  that term in the
          Securities  Act  (Ontario);

     (b)  "ASSOCIATE"  shall  have  the  meaning  ascribed  to  that term in the
          Securities  Act  (Ontario);

     (c)  "COMMON  SHARES" means the common shares in the capital of the Company
          as  such  shares are subdivided, consolidated, reclassified or changed
          from  time  to  time;

<PAGE>
                                      - 2 -

     (d)  "EFFECTIVE DATE" means June 25, 2002;

     (e)  "INSIDER"  means:

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

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

     (f)  "OUTSTANDING  ISSUE"  means  the  number  of  Common  Shares  that are
          outstanding  on  a  non-diluted  basis;

     (g)  "RESERVED FOR ISSUANCE" means shares which may be issued in the future
          upon  the  exercise  of  Arrangement  Options which have been granted;

     (h)  "SHARE  COMPENSATION  ARRANGEMENTS" means a stock option, stock option
          plan,  employee  stock  purchase  plan  or  any  other compensation or
          incentive  mechanism  involving  the issuance or potential issuance of
          shares  to  one  or  more Service Providers including a share purchase
          from treasury which is financially assisted by the Company by way of a
          loan,  guarantee  or  otherwise;  and

     (i)  "SUBSIDIARY"  shall  have  the  meaning  ascribed  to that term in the
          Securities  Act  (Ontario").

2.   PURPOSE  OF  THE  PLAN

          The  purpose  of  the  Plan  is to develop the interest of certain key
Service Providers in the growth and development of the Company by providing them
with the opportunity, through the granting of Arrangement Options, to acquire an
increased  proprietary  interest  in  the  Company.

3.   IMPLEMENTATION

          The  Plan  will be implemented in accordance with the terms hereof and
will  be structured to comply with the rules of the TSX, as amended from time to
time  (the  "TSX  RULES").

4.   ADMINISTRATION

          The Plan will be administered by the board of directors of the Company
(the  "BOARD")  or,  in the Board's discretion, by a committee (the "COMMITTEE")
appointed  by  the  Board  and  consisting of not less than three members of the
Board.  Subject  to  the  provisions  of the Plan, the Board or the Committee is
authorized,  in  its sole discretion, to make such determinations under and such
interpretations of and take such steps and actions in connection with the proper
administration  of  the  Plan  and  such  rules  and  regulations concerning the
granting  of  the  Arrangement  Options  pursuant  to  the  Plan  as it may deem
necessary  or  advisable.  No  member  of  the Board or of the Committee will be

<PAGE>
                                      - 3 -

liable  for any action or determination taken or made in good faith with respect
to  the  Plan  or  any  Arrangement  Options granted under it. Any determination
approved  by  a majority of the Board or of the Committee will be deemed to be a
determination  of that matter by the Board or the Committee, as the case may be.
Members  of  the Board or the Committee may be granted Arrangement Options under
the  Plan.

5.   NUMBER  OF  SHARES  DEDICATED  TO  THE  PLAN

          The  Company  shall reserve, set aside and make available to the Board
or  Committee for the granting of Arrangement Options to eligible grantees up to
an aggregate of 2,780,412 Common Shares, subject to adjustment from time to time
provided  that  such  adjustment  receives the necessary approvals in accordance
with  the TSX Rules. All Arrangement Options granted under the Plan will conform
to  all  applicable provisions prescribed by the Plan and to such specific terms
and conditions as may be determined by the Board or the Committee at the time of
making  each grant, provided that such terms and conditions are not inconsistent
with  the  provisions  hereof.  Common Shares reserved for issuance for which an
Arrangement  Option  is  granted  under  the Plan but not exercised prior to the
termination  of such Arrangement Option, whether through surrender, termination,
lapse  or  otherwise,  shall  be  available  for  Arrangement Options thereafter
granted  by  the Board or the Committee under the Plan. All Common Shares issued
pursuant to the exercise of the Arrangement Options granted under the Plan shall
be  issued  as  fully-paid  and  non-assessable  shares.

6.   ELIGIBILITY

          The  persons  who  will  be eligible to be granted Arrangement Options
pursuant  to  the  Plan  ("PARTICIPANTS")  will be such Service Providers as the
Board or the Committee shall determine. In determining Arrangement Options to be
granted  to  Participants  under  the Plan, the Board or Committee will give due
consideration  to  the  value  of each such Service Provider's past, present and
potential  contribution  to  the  Company's  success  or  to  the success of any
affiliate  or  subsidiary  of  the  Company.

7.   GRANTING  OF  ARRANGEMENT  OPTIONS

     (a)  Subject  to  the  provisions  herein  set  forth  and  after review of
          recommendations  from  management  for the granting of the Arrangement
          Options,  the Board or Committee shall, in its sole discretion, select
          those  Participants  to  whom  such Arrangement Options under the Plan
          shall  be  granted (an "OPTIONEE"), fix the number of Common Shares to
          be  granted  to  each  and the terms and conditions, within the limits
          prescribed  in  paragraph  8,  attaching  to  each Arrangement Option.

     (b)  Subject  to  the provisions contained herein, the following additional
          provisions  shall  be  applicable  to  the Arrangement Options granted
          under  the  Plan:

          (i)  a  majority  of the Common Shares reserved for issuance under the
               Plan  will  or  may  be  issuable to Insiders of the Company; and

<PAGE>
                                      - 4 -

          (ii) the number of Common Shares Reserved for Issuance pursuant to the
               Plan,  together  with  all  of  the  Company's  other  previously
               established  or  proposed  Share Compensation Arrangements, could
               result,  at  any time in the number of Common Shares Reserved for
               Issuance  under  the Plan exceeding 10% of the Outstanding Issue.

8.   TERMS  AND  CONDITIONS  OF  THE  ARRANGEMENT  OPTIONS

          The  terms and conditions of each Arrangement Option granted under the
Plan shall be set forth in an Option Agreement between the Company and Optionee.
Such  Option  Agreement  shall  include  the  following  terms  and  conditions:

     (a)  NUMBER  OF  COMMON  SHARES  - The Board or the Committee shall, in its
          sole  discretion,  but  subject  to  the  TSX Rules, fix the aggregate
          number  of  Common  Shares  which  are  the subject of the Arrangement
          Option.

     (b)  ARRANGEMENT  OPTION  PRICE  - Pursuant to the TSX Approval letter, the
          Board  or  the  Committee  shall  fix the Arrangement Option price per
          Common  Share  at  U.S.$0.80  per  share.

     (c)  PAYMENT  -  The  full  purchase  price for the Common Shares purchased
          under  the  Arrangement  Option  shall  be  paid  for in cash upon the
          exercise  thereof.  An Optionee who is not already a shareholder shall
          have  none  of the rights of a shareholder of the Company until Common
          Shares issuable pursuant to this Arrangement Option are issued to him.

     (d)  TERM  OF ARRANGEMENT OPTION - The Board or the Committee shall fix the
          term  of  the  Arrangement  Option  at  five  years  from the date the
          Effective  Date,  subject  to  subparagraphs  (e), (f) and (g) of this
          paragraph  8.

     (e)  DEATH OF OPTIONEE - In the event of the death of the Optionee while in
          the  employment of the Company or an affiliate of the Company prior to
          the  end  of  the term of the Arrangement Option, the Optionee's legal
          representative  may:

          (i)  exercise  the  Arrangement Option to the extent that the Optionee
               was  entitled to do so at the date of his death at any time up to
               and  including, but not after, a date one year following the date
               of  death  of  the Optionee, or prior to the close of business on
               the  day  of  the  expiry  of the term of the Arrangement Option,
               whichever  is  earlier;  and

          (ii) with  the  prior  written  consent of the Board or the Committee,
               exercise  the  Arrangement  Option  to purchase all or any of the
               optioned  shares  as the Board or the Committee may designate but
               not  exceeding  the  number  of optioned shares that the Optionee
               would  have  been  entitled  to  otherwise  had  he survived. The
               Arrangement  Option  may  be  exercised  at  any  time  up to and
               including,  but  not after, the date one year following the death

<PAGE>
                                      - 5 -

               of the Optionee or prior to the closing of business on the day of
               the  expiry  of  the term of the Arrangement Option, whichever is
               earlier.

     (f)  RESIGNATION  OR  DISCHARGE FOR CAUSE OF OPTIONEE - In the event of the
          resignation  of  the  Optionee  as  an  employee  of the Company or an
          affiliate of the Company, or the discharge for "cause" of the Optionee
          as  an  employee  of  the  Company or a subsidiary or affiliate of the
          Company during the duration of the Arrangement Option, the Arrangement
          Option  shall in all respects cease and terminate. For the purposes of
          the  Plan,  the  determination  by  the  Company that the Optionee was
          discharged  for  "cause"  shall  be  binding  on  the  Optionee.

     (g)  OTHER  TERMINATION  OF  OPTIONEE  - In the event of the termination of
          employment  of  the  Optionee  with  the  Company  or  a subsidiary or
          affiliate  of the Company, other than as referred to in paragraphs (e)
          and  (f)  above,  the  Optionee  may:

          (i)  exercise  the  Arrangement  Option  to  the  extent  that  he was
               entitled  to do so at the time of such termination of employment,
               at  any  time  up  to and including, but not after, the effective
               date  of  such termination of employment or prior to the close of
               business  on the day of the expiry of the term of the Arrangement
               Option,  whichever  is  earlier;  and

          (ii) with  the  prior  written  consent of the Board or the Committee,
               which  consent  may be withheld in the Company's sole discretion,
               exercise  the  Arrangement  Option  to purchase all or any of the
               optioned  shares  as the Board or the Committee may designate but
               not  exceeding  the  number of optioned shares that he would have
               been entitled to otherwise had his employment with the Company or
               a  subsidiary or affiliate of the Company been maintained for the
               term  of  the  Arrangement  Option. The Arrangement Option may be
               exercised  at any time up to and including, but not after, a date
               three  (3)  months  following the date of the said termination of
               employment,  or  prior  to the close of business on the expiry of
               the  term  of  the  Arrangement  Option,  whichever  is  earlier.

     (h)  NON-TRANSFERABILITY  OF  ARRANGEMENT  OPTION - The Arrangement Options
          granted  under  the  Plan may not be assigned, encumbered or otherwise
          disposed  of  by  the  Optionee,  provided  that  nothing herein shall
          operate  to restrict the transfer of any Common Shares issued pursuant
          to  the  exercise of a particular Arrangement Option granted under the
          Plan.

     (i)  EXERCISE  OF  ARRANGEMENT  OPTION  -  Subject to the provisions of the
          Plan,  an Arrangement Option granted under the Plan shall be exercised
          from  time  to  time by the Optionee, or in the event of death, by his
          legal  representatives,  by  giving notice in writing addressed to the
          Company at its registered office, to the attention of the Secretary of
          the  Company,  specifying  the number of optioned shares in respect of
          which  such  notice  is  being given, together with payment by cash or
          certified  cheque  in  full of the purchase price for the shares being
          purchased.

<PAGE>
                                      - 6 -

9.   ADJUSTMENTS  IN  EVENT  OF  CHANGE  IN  STRUCTURE  OF  CAPITAL

          Appropriate adjustments in the number of Common Shares optioned and in
the option price per Common Share, relating to Arrangement Options granted or to
be granted, shall be made by the Board or the Committee, in its sole discretion,
to  give  effect  to  adjustments  in the number of Common Shares of the Company
resulting,  subsequent  to  the  approval of the Plan by the shareholders of the
Company  from any subdivisions, consolidations or reclassification of the Common
Shares of the Company, or other relevant changes in the capital structure of the
Company,  or the payment of stock dividends other than in the ordinary course of
business  by  the  Company.

10.  AMENDMENT  OR  DISCONTINUANCE  OF  PLAN

          The  Board may amend the Plan at any time subject to prior approval of
the  TSX  and  compliance  with  the  applicable  TSX  Rules.

11.  MISCELLANEOUS

     (a)  NO RIGHTS AS A SHAREHOLDER
          --------------------------

          Nothing  contained  in  the Plan nor in any Arrangement Option granted
hereunder  shall  be  deemed to give any Optionee any interest or title in or to
any  Common  Shares of the Company or any rights as a shareholder of the Company
or  any other legal or equitable right against the Company whatsoever other than
as set forth in the Plan and pursuant to the exercise of any Arrangement Option.

     (b)  EMPLOYMENT
          ----------

          Nothing  contained  in  the Plan shall confer upon any Participant any
right  with  respect to employment or continuance of employment with the Company
or  any  affiliate, or interfere in any way with the right of the Company or any
affiliate thereof to terminate such employment at any time. Participation in the
Plan  by  a  Participant  is  voluntary.

     (c)  RECORD KEEPING
          --------------

          The  Company  shall  maintain  a  register in which shall be recorded:

          (i)  the name and address of each Participant; and

          (ii) the number of Arrangement Options granted to a Participant and
               the number of Arrangement Options outstanding.

     (d)  ADMINISTRATION OF THE PLAN
          --------------------------

          The  Board  or  the Committee is authorized to interpret the Plan from
time  to time and to adopt, amend and rescind rules and regulations for carrying
out  such  Plan  provided,  however, that no amendment shall be made to the Plan
without  the  prior  approval of the TSX. The interpretation and construction of

<PAGE>
                                      - 7 -

any  provision  of  the  Plan  by  the Board or the Committee shall be final and
conclusive.  Administration  of  the  Plan  shall  be  the responsibility of the
appropriate  officers  of  the Company and all costs in respect thereof shall be
paid  by  the  Company.

     (e)  INCOME TAXES
          ------------

          As a condition of and prior to participation in the Plan a Participant
shall  authorize  the  Company in written form to withhold from any remuneration
otherwise  payable  to  such  Participant  any  amounts  required  by any taxing
authority  to  be  withheld  for  taxes  of  any  kind  as a consequence of such
participation  in  the  Plan.

     (f)  NO REPRESENTATION OR WARRANTY
          -----------------------------

          The  Company  makes  no  representation  or  warranty as to the future
market  value  of  any Common Shares issued in accordance with the provisions of
the  Plan.

     (g)  INTERPRETATION
          --------------

          The Plan will be governed by and construed in accordance with the laws
of  the  Province  of  Ontario.

     (h)  COMPLIANCE WITH APPLICABLE LAW, ETC.
          -----------------------------------

          If any provision of the Plan or any agreement entered into pursuant to
the  Plan  contravenes any law or any order, policy, by-law or regulation of any
regulatory  body or stock exchange having authority over the Company or the Plan
then  such  provision  shall  be  deemed to be amended to the extent required to
bring  such  provision  into  compliance  therewith.

<PAGE>

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