Document:

Prepared by R.R. Donnelley Financial -- Share Pledge Agreement by 1328158 Ontario Inc.

 Exhibit 4.25 
  
 SHARE PLEDGE AGREEMENT 
  
 THIS SHARE PLEDGE AGREEMENT (together with all amendments,
modifications, supplements, restatements or replacements thereof from time to time, this “Pledge Agreement”), dated as of August 1, 2002, made by 1328158 Ontario Inc., a corporation existing under the laws of Ontario (the
“Pledgor”), in favour of CONGRESS FINANCIAL CORPORATION (CANADA) an Ontario corporation, as Collateral Agent (together with its successors and assigns, the “Collateral Agent”) on behalf of the Lender (as defined below) under the
Loan Agreement (as defined below). 
  
 WITNESSETH: 
  
 WHEREAS Lender has entered into certain financing arrangements pursuant to the Loan Agreement (as defined below) with Borrower pursuant to which Lender has made, and may
make, loans and provide other financial accommodations to Borrower; 
  
 AND WHEREAS Pledgor has guaranteed the
obligations of Borrower to Lender under the Loan Agreement, pursuant to a Guarantee (as defined below) executed by Pledgor and delivered to Collateral Agent, as security for the obligations of Borrower to Lender under the Loan Agreement;

  
 AND WHEREAS pursuant to the terms of the Loan Agreement, Borrower has agreed not to, and not to permit any
Obligor to, form or acquire any subsidiaries or to sell any of its assets to any other Person, without the prior written consent of Lender; 
  
 AND WHEREAS Pledgor is an Obligor, and Pledgor intends to create a new subsidiary under the laws of Hong Kong and to transfer the assets of Mad Catz (Asia) Limited to such new subsidiary (the
“Transaction”), subject to the consent of Lender; 
  
 AND WHEREAS Lender has agreed to consent to the
Transaction provided that Pledgor executes and delivers the Guarantee, in form satisfactory to Lender, and this Pledge Agreement to secure the Obligations of Pledgor to Lender under the Guarantee; 
  
 NOW THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree, as follows: 
  
 ARTICLE 1

  
 DEFINITIONS 
  
 SECTION 1.1  Certain Terms.    The following terms (whether or not underscored) when used in this Pledge Agreement, including its preamble and recitals, shall have
the following meanings (such definitions to be equally applicable to the singular and plural forms thereof): 
  
 “BIA” means the Bankruptcy and Insolvency Act (Canada). 
  
 “Borrower” shall mean Mad Catz, Inc., a Delaware corporation, and its successors and assigns. 

  
 “Business Day” shall mean a day (other than a Saturday,
Sunday or statutory holiday in Ontario, Illinois or New York) on which Collateral Agent’s Toronto office and banks in Chicago and New York City are open for business in the normal course. 
  

“CCAA” means the Companies’ Creditors Arrangement Act (Canada). 
  
 “Collateral” is defined in Section 2.1. 
  
 “Discharge Event” means the indefeasible payment in full of all Obligations. 
  
 “Distributions” means all stock dividends, liquidating dividends, shares of stock resulting from (or in connection with the exercise of) stock splits, reclassifications, warrants, options,
non-cash dividends, amalgamations, mergers, consolidations, and all other distributions (whether similar or dissimilar to the foregoing) on or with respect to any Pledged Shares or other shares of capital stock constituting Collateral, but shall not
include Dividends. 
  
 “Dividends” means cash dividends and cash distributions with respect
to any Pledged Shares made in the ordinary course of business and not a liquidating dividend. 
  
 “Event of Default” shall mean the occurrence or existence of any Event of Default under the Loan Agreement. 
  
 “Financing Agreements” shall mean, collectively, the Loan Agreement, this Pledge Agreement, the Guarantee and all notes, guarantees, security agreements and other agreements, documents and
instruments now or at any time hereafter executed and/or delivered by Borrower, Pledgor or any other Person in connection with the Loan Agreement, as the same now exist or may hereafter be amended, modified, supplements, extended, renewed, restated
or replaced. 
  
 “Guarantee” shall mean the guarantee dated as of the date hereof, pursuant
to which Pledgor guaranteed in favour of Lender all of the debts, liabilities and obligations of Borrower. 
  
 “Lender” shall mean Congress Financial Corporation (Central), an Illinois corporation, and its successors and assigns. 
  
 “Loan Agreement” shall mean the First Amended and Restated Loan Agreement dated September 5, 2001, between Lender, as lender and as US Collateral Agent (as defined therein), and Borrower,
together with all amendments, supplements, restatements and replacements thereof from time to time. 
  
 “Obligations” shall mean any and all obligations, liabilities and indebtedness of every kind, nature and description owing by Pledgor to Collateral Agent, Lender and/or any of their respective affiliates, including
principal, interest, charges, fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, whether arising under the Loan Agreement, this Pledge Agreement, any guarantee (including the Guarantee) or
otherwise, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of this Agreement or after the commencement of any proceeding with respect to Pledgor under the BIA, the CCAA or any
similar statute in any jurisdiction (including, the payment of interest and other amounts which would accrue and become due but for the commencement of such proceeding, whether or not such amounts are allowed or allowable in whole or in part in such
proceeding), whether direct or indirect, absolute or contingent, joint or
 
 

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several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured, and however acquired by Collateral Agent and/or Lender. 
  
 “Person” or “person” shall mean any individual, sole proprietorship, partnership, limited partnership,
corporation, limited liability company, business trust, unincorporated association, joint stock corporation, trust, joint venture or other entity or any government or any agency or instrumentality or political subdivision thereof.

  
 “Pledge Agreement” is defined in the preamble. 
  
 “Pledged Share Issuer” means each Person identified in Attachment 1 hereto as the issuer of the Pledged Shares
identified opposite the name of such Person, and each other Person whose capital stock is pledged or is required to be pledged from time to time by the Pledgor to the Collateral Agent as Collateral hereunder. 
  
 “Pledged Shares” means all of the shares in the capital stock of each Pledged Share Issuer which are now owned
or are hereafter acquired by the Pledgor including, without limitation, the shares described in Attachment 1 hereto and shall include for greater certainty, all other capital stock of any other Person acquired by the Pledgor from time to time.

  
 “Pledgor” is defined in the preamble. 
  
 “PPSA” means the Personal Property Security Act as in effect in the Province of Ontario. 

 
 “Subsidiary” means, with respect to any Person, any corporation of which not less than 50% of the
outstanding shares of any class caring voting rights exercisable for the time being are beneficially owned for the time being, directly or indirectly, by or for such Person, and includes any corporation in a similar relationship with a Subsidiary.

  
 SECTION 1.2  Loan Agreement Definitions:    Unless otherwise defined herein
or the context otherwise requires, terms used in this Pledge Agreement, including its preamble and recitals, have the meanings provided in the Loan Agreement. 
  
 SECTION 1.3  PPSA Definitions.    Unless otherwise defined herein or the context otherwise requires, terms for which meanings are provided in the PPSA are used in
this Pledge Agreement, including its preamble and recitals, with such meanings. 
  
 ARTICLE 2 
  
 PLEDGE 
  
 SECTION 2.1  Grant of Security Interest.    The Pledgor hereby pledges, hypothecates, assigns, charges, mortgages, delivers, and transfers to the Collateral Agent for its benefit and the benefit
of the Lender and hereby grants to the Collateral Agent for its benefit and the benefit of the Lender a continuing security interest in, all of the following property (collectively, the “Collateral”): 
  

	 	(a)
	 
	all issued and outstanding shares of capital stock of each Pledged Share Issuer identified in Attachment 1 hereto; 
 

  

	 	(b)
	 
	all other Pledged Shares issued from time to time; 
 

 

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	 	(c)
	 
	all Dividends, Distributions, interest, and other payments and rights with respect to any Pledged Shares; and 
 

  

	 	(d)
	 
	all proceeds of any of the foregoing. 
 

  
 SECTION 2.2  Security for Obligations.    This Pledge Agreement and the Collateral granted herewith secures the payment and performance in full of all Obligations.

  
 SECTION 2.3  Delivery of Collateral.    All certificates representing or
evidencing any Collateral, including all Pledged Shares, shall be delivered to and held by or on behalf of the Collateral Agent pursuant hereto, shall be in suitable form for transfer by delivery, and shall be accompanied by all necessary
instruments of transfer or assignment, duly executed in blank. All Pledged Shares may, at the option of the Collateral Agent, be registered in the name of the Collateral Agent or its nominee. 
  

SECTION 2.4  Dividends on Pledged Shares.    In the event that any Dividend is to be paid on any Pledged Share at a time when such
Dividend is permitted by the Loan Agreement and no Event of Default exists, such Dividend or payment may be paid directly to the Pledgor free and clear of the liens created by this Pledge Agreement. If any such Event of Default has occurred and is
continuing, then any such Dividend or payment shall be paid directly to the Collateral Agent. 
  
 SECTION
2.5  Continuing Security Interest.    This Pledge Agreement shall create a continuing security interest in the Collateral and shall 
  

	 	(a)
	 
	remain in full force and effect until the occurrence of a Discharge Event, 
 

  

	 	(b)
	 
	be binding upon the Pledgor and its successors and assigns, and 
 

  

	 	(c)
	 
	enure, together with the rights and remedies of the Collateral Agent and the Lender hereunder, to the benefit of the Collateral Agent and the Lender, and their
respective successors and assigns. 
 

  
 Without limiting the foregoing clause (c), the Collateral Agent and the Lender may
assign or otherwise transfer (in whole or in part) their rights hereunder to any other Person or entity subject to the terms and conditions of assignabilty as may be contained in the Loan Agreement, and such other Person or entity shall thereupon
become vested with all the rights and benefits in respect thereof granted to each party. Upon the occurrence of a Discharge Event, the security interest granted herein shall terminate and all rights to the Collateral shall revert to the Pledgor.
Upon any such termination, the Collateral Agent will, at the Pledgor’s sole expense, deliver to the Pledgor, without any representations, warranties or recourse of any kind whatsoever, all certificates and instruments representing or evidencing
all Pledged Shares, together with all other Collateral held by the Collateral Agent hereunder, and execute and deliver to the Pledgor such documents as the Pledgor shall reasonably request to evidence such termination. 
  
 ARTICEL 3 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 3.1  Warranties,
etc.    The Pledgor represents and warrants to the Collateral Agent and the Lender, as at the date of each pledge and delivery hereunder (including each pledge and
 
 

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delivery of Pledged Shares after the date hereof) by the Pledgor to the Collateral Agent of any Collateral, as set forth in this Article. 
  

SECTION 3.2  Ownership, No Liens, etc.    The Pledgor is the legal and beneficial owner of, and has good title to (and has full
right and authority to pledge and assign) such Collateral, free and clear of all liens, security interests, options, or other charges or encumbrances, except any lien or security interest granted pursuant hereto or otherwise granted in favour of the
Collateral Agent or permitted by the Loan Agreement. 
  
 SECTION 3.3  As to Pledged
Shares.    All Pledged Shares are duly authorized and validly issued, fully paid, and non-assessable, and constitute such percentage of all of the issued and outstanding shares of each such class of capital stock of each
Pledged Share Issuer as set forth on Attachment 1 attached hereto. There is no agreement, option or right pursuant to which the Pledgor may be required to sell or otherwise dispose of any of the Pledged Shares. The Pledged Shares identified on
Attachment 1 attached hereto represent all of the capital stock of every Person owned by Pledgor. 
  
 SECTION
3.4  Authorization, Approval, etc.    No authorization, approval, or other action by, and no notice to or filing with, any governmental authority, regulatory body or any other Person is required either

  
 (a) for the pledge by the Pledgor of any Collateral pursuant to this Pledge Agreement or for the
execution, delivery, and performance of this Pledge Agreement by the Pledgor (other than the authorization of the board of directors of each Pledged Share Issuer, which has been obtained), or 
  

(b) for the exercise by the Collateral Agent of the voting or other rights provided for in this Pledge Agreement, or the remedies in respect of the
Collateral pursuant to this Pledge Agreement except as may be required in connection with a disposition of the Collateral pledged hereunder by laws affecting the offering and sale of securities generally. 
  
 SECTION 3.5  Compliance with Laws.    The Pledgor is in material compliance with the requirements of
all applicable laws, rules, regulations and orders of every governmental authority, the non-compliance with which could reasonably be expected to materially adversely affect the business, properties, assets, operations or condition (financial or
otherwise) of the Pledgor and its Subsidiaries taken as a whole or the value of the Collateral or the worth of the Collateral as collateral security. 
  
 SECTION 3.6  Chief Executive Office.    The places of business and chief executive office of the Pledgor and the offices where the Pledgor keeps its records
concerning the Collateral are as set out in Attachment 2 hereof, and upon at least 20 days’ prior written notice to the Collateral Agent, at such other addresses so notified in writing to the Collateral Agent. 
  
 ARTICLE 1 
  
 COVENANTS 
  
 SECTION 4.1  Protect Collateral; Further Assurances,
etc.    The Pledgor will not sell, assign, transfer, pledge, or encumber in any other manner the Collateral. The Pledgor will warrant and defend the right and security interest herein granted unto the Collateral Agent and the
Lender in
 
 

 5 

 
and to the Collateral (and all right, title, and interest represented by the Collateral) against the claims and demands of all Persons whomsoever. The Pledgor agrees that it will, from time to
time and upon acquisition of the capital stock of any Person, forthwith deliver to the Collateral Agent such capital stock and such capital stock shall, upon its acquisition, constitute Pledged Shares and shall form part of the Collateral. The
Pledgor agrees that at any time, and from time to time, at the expense of the Pledgor, the Pledgor will promptly execute and deliver all further instruments and take all further action reasonably requested by the Collateral Agent that may be
necessary in the opinion of the Collateral Agent in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect
to any Collateral. 
  
 SECTION 4.2  Stock Powers, etc.    The Pledgor agrees
that all Pledged Shares (and all other shares of capital stock constituting Collateral) delivered by the Pledgor pursuant to this Pledge Agreement will be accompanied by duly executed blank stock powers, or other equivalent instruments of transfer
acceptable to the Collateral Agent. The Pledgor will, from time to time upon the request of the Collateral Agent, promptly deliver to the Collateral Agent such stock powers, instruments, and similar documents, satisfactory in form and substance to
the Collateral Agent, with respect to the Collateral as the Collateral Agent may reasonably request and will, from time to time upon the request of the Collateral Agent after the occurrence of any Event of Default which is continuing, promptly
transfer any Pledged Shares or other shares of common stock constituting Collateral into the name of any nominee designated by the Collateral Agent. 
  
 SECTION 4.3  Continuous Pledge.    Subject to Section 2.4 and Section 2.5, the Pledgor will, at all times, keep pledged to the Collateral Agent pursuant hereto, and
shall deliver forthwith to the Collateral Agent, all Pledged Shares and all other shares of capital stock constituting Collateral, all Dividends and Distributions with respect thereto, and all other Collateral and other securities, proceeds, and
rights from time to time received by or distributable to the Pledgor in respect of any Collateral and will not permit any Pledged Share Issuer to issue any capital stock which shall not have been immediately duly pledged hereunder on a perfected
basis. 
  
 SECTION 4.4  Voting Rights; Dividends, etc.    The Pledgor agrees:

  

	 	(a)
	 
	while any Event of Default is continuing, promptly upon receipt thereof by the Pledgor and without any request therefor by the Collateral Agent, to deliver
(properly endorsed where required hereby or requested by the Collateral Agent) to the Collateral Agent all Dividends, Distributions, and all proceeds of the Collateral, all of which shall be held by the Collateral Agent as additional Collateral for
use in accordance with Section 6.3; and 
 

  

	 	(b)
	 
	while any Event of Default is continuing and the Collateral Agent has notified the Pledgor of the Collateral Agent’s intention to exercise its voting power
under this Section 4.4(b) 
 

  

	 	(i)
	 
	the Collateral Agent may exercise (to the exclusion of the Pledgor) the voting power and all other incidental rights of ownership with respect to any Pledged
Shares or other shares of capital stock constituting Collateral and the Pledgor hereby grants the Collateral Agent an irrevocable proxy, exercisable under such circumstances, to vote the Pledged Shares and such other Collateral; and 

 

 6 

  

	 	(ii)
	 
	promptly to deliver to the Collateral Agent such additional proxies and other documents reasonably requested by the Collateral Agent that may be necessary, in
the reasonable opinion of the Collateral Agent, to allow the Collateral Agent to exercise such voting power. 
 

  
 All Dividends, Distributions and proceeds which may at any time and from time to time be held by the Pledgor but which the Pledgor is then obligated to deliver to the Collateral Agent, shall, until delivery to the Collateral Agent,
be held by the Pledgor separate and apart from its other property in trust for the Collateral Agent. The Collateral Agent and the Lender agree that unless an Event of Default shall have occurred and the Collateral Agent shall have given the notice
referred to in Section 4.4(b), the Pledgor shall have the exclusive voting power with respect to any shares of capital stock (including any of the Pledged Shares) constituting Collateral; provided, however, that no vote shall be cast, or consent,
waiver, or ratification given, or action taken by the Pledgor that would impair any Collateral or be inconsistent with or violate any provision of this Pledge Agreement or the Loan Agreement. 
  

ARTICLE 5 
  
 THE COLLATERAL AGENT

  
 SECTION 5.1  Collateral Agent and the Lender Appointed
Attorneys-in-Fact.    The Pledgor hereby irrevocably appoints each of the Collateral Agent and the Lender the Pledgor’s attorney-in-fact with effect following the occurrence and during the continuance of an Event of
Default, with full authority in the place and stead of the Pledgor and in the name of the Pledgor or otherwise, from time to time in their respective discretion, to take any action and to execute any instrument which any of the Collateral Agent or
the Lender may reasonably deem necessary or advisable to accomplish the purposes of this Pledge Agreement, including without limitation: 
  

	 	(a)
	 
	to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of
the Collateral; 
 

  

	 	(b)
	 
	to receive, endorse, and collect any drafts or other instruments, documents and chattel paper, in connection with clause (a) above; and 

  

	 	(c)
	 
	to file any claims or take any action or institute any proceedings which the Collateral Agent or the Lender may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of the Collateral Agent and the Lender with respect to any of the Collateral. 
 

  
 The Pledgor hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this Section is (until termination of the security interest granted hereunder upon the payment and
satisfaction in full of all Obligations) irrevocable and coupled with an interest. 
  
 SECTION
5.2  Collateral Agent or any Lender May Perform.    If the Pledgor fails to perform any agreement contained herein, Collateral Agent or either Lender may itself perform, or cause performance of, such agreement,
and the expenses of Collateral Agent and the Lender incurred in connection therewith shall be payable by the Pledgor pursuant to Section 6.4. 
  
 SECTION 5.3  Collateral Agent Has No Duty.    The powers conferred on the Collateral Agent and the Lender hereunder are solely to protect their interest in the
Collateral and shall not impose any 
 

 7 

 
duty on them to exercise any such powers. Except for reasonable care of any Collateral in their possession and the accounting for moneys actually received by it hereunder, the Collateral Agent
and the Lender shall have no duty as to any Collateral or responsibility for 
  

	 	(a)
	 
	ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any pledged Collateral, whether or
not the Collateral Agent or the Lender has or is deemed to have knowledge of such matters, or 
 

  

	 	(b)
	 
	taking any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral. 
 

 
 ARTICLE 6 
  
 REMEDIES 
  
 SECTION 6.1  Certain Remedies.    If any
Event of Default shall have occurred and is continuing: 
  

	 	(a)
	 
	The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of a secured party on default under the PPSA (whether or not the PPSA applies to the affected Collateral) and also may, without notice except as specified below, sell the Collateral or any part thereof in one or more parcels
at public or private sale, at any of the Collateral Agent’s or the Lender’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent or the Lender may deem commercially reasonable.
The Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten days’ prior notice to the Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute
reasonable notification subject to any prohibitions pursuant to applicable law (including the PPSA). The Collateral Agent and the Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The
Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice subject to any prohibitions pursuant to applicable law (including the PPSA), be
made at the time and place to which it was so adjourned. 
 

  

	 	(b)
	 
	The Collateral Agent may 
 

  

	 	(i)
	 
	transfer all or any part of the Collateral into the name of the Collateral Agent or the Lender or their nominee, with or without disclosing that such Collateral
is subject to the lien and security interest hereunder, 
 

  

	 	(ii)
	 
	notify the parties obligated on any of the Collateral to make payment to the Collateral Agent of any amount due or to become due thereunder, 

  

	 	(iii)
	 
	enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or compromise or extend or renew
for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto, 
 

 

 8 

  

	 	(iv)
	 
	endorse any checks, drafts, or other writings in the Pledgor’s name to allow collection of the Collateral, 
 

  

	 	(v)
	 
	take control of any proceeds of the Collateral, and 
 

  

	 	(vi)
	 
	execute (in the name, place and stead of the Pledgor) endorsements, assignments, stock powers and other instruments of conveyance or transfer with respect to
all or any of the Collateral. 
 

  
 SECTION 6.2  Compliance with
Restrictions.    The Pledgor agrees that in any sale of any of the Collateral pursuant to Section 6.1, the Collateral Agent is hereby authorized to comply with any limitation or restriction in connection with such sale as it
may be advised by counsel is necessary in order to avoid any violation of applicable law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and
purchasers have certain qualifications, and restrict such prospective bidders and purchasers to Persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of
such Collateral), or in order to obtain any required approval of the sale or of the purchaser by any governmental regulatory authority or official, and the Pledgor further agrees that such compliance shall not result in such sale being considered or
deemed not to have been made in a commercially reasonable manner, nor shall the Collateral Agent or the Lender be liable nor accountable to the Pledgor for any discount allowed by the reason of the fact that such Collateral is sold in compliance
with any such limitation or restriction. 
  
 SECTION 6.3  Application of
Proceeds.    All cash proceeds received by the Collateral Agent in respect of any sale of, collection from, or other realization upon, all or any part of the Collateral may, in the discretion of the Collateral Agent, be held
by the Collateral Agent as additional collateral security for, or then or at any time thereafter be applied in whole or in part by the Collateral Agent against, all or any part of the Obligations in such order as the Collateral Agent shall elect.
Any surplus of such cash or cash proceeds held by the Collateral Agent and remaining after payment and satisfaction in full of all the Obligations shall be paid over to the Pledgor or to whomsoever may be lawfully entitled to receive such surplus.

  
 SECTION 6.4  Indemnity and Expenses.    The Pledgor hereby indemnifies and
holds harmless Collateral Agent and the Lender from and against any and all claims, losses, and liabilities arising out of or resulting from this Pledge Agreement (including enforcement of this Pledge Agreement), except claims, losses, or
liabilities resulting from the Collateral Agent’s or the Lender’s gross negligence or wilful misconduct. Upon demand, the Pledgor will pay to the Collateral Agent the amount of any and all reasonable expenses, including, without
limitation, the reasonable fees and disbursements of its counsel and Lender’s counsel and which may be incurred in connection with: 
  

	 	(a)
	 
	the administration of this Pledge Agreement; 
 

  

	 	(b)
	 
	the custody, preservation, use, or operation of, or the sale of, collection from, or other realization upon, any of the Collateral; 

  

	 	(c)
	 
	the exercise or enforcement of any of the rights of the Collateral Agent and/or the Lender hereunder; 
 

  

	 	(d)
	 
	the failure by the Pledgor to perform or observe any of the provisions hereof; or 
 

 

 9 

  

	 	(e)
	 
	the advancing of any funds pursuant to Section 7.1 hereof. 
 

  
 ARTICLE 7 
  
 MISCELLANEOUS PROVISIONS 
  
 SECTION 7.1  Protection of Collateral.    The Collateral Agent and/or the Lender may from time to
time, at their option, perform any act which the Pledgor agrees hereunder to perform and which the Pledgor shall fail to perform after being requested in writing so to perform (it being understood that no such request need be given after the
occurrence of an Event of Default) and the Collateral Agent and/or the Lender may from time to time take any other action which it or they reasonably deem necessary for the maintenance, preservation or protection of any of the Collateral or of its
security interest therein. 
  
 SECTION 7.2  Notices.    All notices, requests
and demands hereunder shall be in writing and 
  

	 	(a)
	 
	made to Collateral Agent at 141 Adelaide Street West, Suite 1500, Toronto, Ontario, M5H 3L9 and to Pledgor at its chief executive office set forth below, or to
such other address as either party may designate by written notice to the other in accordance with this provision; and 
 

  

	 	(b)
	 
	deemed to have been given or made: if delivered in person, immediately upon delivery; if by facsimile transmission, immediately upon sending and upon
confirmation of receipt; if by nationally recognized overnight courier service with instructions to deliver the next Business Day, one (1) Business Day after sending; and if by registered mail, return receipt requested, five (5) days after mailing.

 

  
 SECTION 7.3  Governing Law, Entire Agreement, etc. Governing Law; Choice of
Forum; Service of Process; Jury Trial Waiver. 
  

	 	(a)
	 
	The validity, interpretation and enforcement of this Pledge Agreement and any dispute arising out of the relationship between the parties hereto, whether in
contract, tort, equity or otherwise, shall be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein. 
 

  

	 	(b)
	 
	Pledgor irrevocably consents and submits to the non-exclusive jurisdiction of the Superior Court of Justice (of Ontario) and waives any objection based on venue
or forum non conveniens with respect to any action instituted therein arising under this Pledge Agreement or any of the other Financing Agreements or in any way connected or related or incidental to the dealings of Pledgor and Collateral Agent in
respect of this Pledge Agreement or the transactions related hereto, whether now existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agrees that any dispute with respect to any such matters shall be heard only in
the courts described above (except that Collateral Agent shall have the right to bring any action or proceeding against Pledgor or its property in the courts of any other jurisdiction which Collateral Agent deems necessary or appropriate in order to
realize on the Collateral or to otherwise enforce its rights against Pledgor or its property). 
 

  

	 	(c)
	 
	To the extent permitted by law, Pledgor hereby waives personal service of any and all process upon it and consents that all such service of process may be made

 

 

 10 

	 	
by registered mail (return receipt requested) directed to its address set forth on the signature pages hereof and service so made shall be deemed to be completed five (5) days after the same
shall have been so deposited in the Canadian mails, or, at Collateral Agent’s option, by service upon Pledgor in any other manner provided under the rules of any such courts. Within thirty (30) days after such service, Pledgor shall appear in
answer to such process, failing which Pledgor shall be deemed in default and judgment may be entered by Collateral Agent against Pledgor for the amount of the claim and other relief requested. 
 

  

	 	(d)
	 
	PLEDGOR AND COLLATERAL AGENT HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS PLEDGE AGREEMENT OR
ANY OF THE OTHER FINANCING AGREEMENTS OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF PLEDGOR AND COLLATERAL AGENT IN RESPECT OF THIS PLEDGE AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED
HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. PLEDGOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT PLEDGOR OR COLLATERAL AGENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS PLEDGE AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF PLEDGOR AND COLLATERAL AGENT TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

  

	 	(e)
	 
	Collateral Agent and the Lender shall not have any liability to Pledgor (whether in tort, contract, equity or otherwise) for losses suffered by Pledgor in
connection with, arising out of, or in any way related to the transactions or relationships contemplated by this Pledge Agreement, or any act, omission or event occurring in connection herewith, unless it is determined by a final and non-appealable
judgment or court order binding on Collateral Agent or the Lender that the losses were the result of acts or omissions of Collateral Agent or such Lender constituting gross negligence or willful misconduct. In any such litigation, the Collateral
Agent or the Lender shall be entitled to the benefit of the rebuttable presumption that it acted in good faith and with the exercise of ordinary care in the performance by it of the terms of this Pledge Agreement and the other Financing Agreements.

 

  

	 	(f)
	 
	Pledgor hereby expressly waives all rights of notice and hearing of any kind prior to the exercise of rights by Collateral Agent or the Lender from and after
the occurrence of an Event of Default to repossess the Collateral with judicial process or to replevy, attach or levy upon the Collateral or other security for the Obligations. Pledgor waives the posting of any bond otherwise required of Collateral
Agent or the Lender in connection with any judicial process or proceeding to obtain possession of, replevy, attach or levy upon the Collateral or other security for the Obligations, to enforce any judgment or other court order entered in favour of
Collateral Agent or the Lender or to enforce by specific 
 

 

 11 

	 	
performance, temporary restraining order, preliminary or permanent injunction, the Loan Agreement or any other Financing Agreement. 
 

  
 SECTION 7.4    Waiver of Notices.  Pledgor hereby expressly waives demand, presentment, protest and
notice of protest and notice of dishonour with respect to any and all instruments and commercial paper, included in or evidencing any of the Obligations or the Collateral, and any and all other demands and notices of any kind or nature whatsoever
with respect to the Obligations, the Collateral and this Pledge Agreement, except such as are expressly provided for herein. No notice to or demand on Pledgor which Collateral Agent may elect to give shall entitle Pledgor to any other or further
notice or demand in the same, similar or other circumstances. 
  
 SECTION 7.5    Amendments
and Waivers.  Neither this Pledge Agreement nor any provision hereof shall be amended, modified, waived or discharged orally or by course of conduct, but only by a written agreement signed by an authorized officer of Collateral Agent,
and as to amendments and modifications, as also signed by an authorized officer of Pledgor. Collateral Agent shall not, by any act, delay, omission or otherwise be deemed to have expressly or impliedly waived any of its rights, powers and/or
remedies unless such waiver shall be in writing and signed by an authorized officer of Collateral Agent. Any such waiver shall be enforceable only to the extent specifically set forth therein. A waiver by Collateral Agent of any right, power and/or
remedy on any one occasion shall not be construed as a bar to or waiver of any such right, power and/or remedy which Collateral Agent would otherwise have on any future occasion, whether similar in kind or otherwise. 
  
 SECTION 7.6    Waiver of Counterclaims.  Pledgor waives all rights to interpose any claims,
deductions, setoffs or counterclaims of any nature (other than compulsory counterclaims) in any action or proceeding with respect to this Pledge Agreement, the Obligations, the Collateral or any matter arising therefrom or relating hereto or
thereto. 
  
 SECTION 7.7    Indemnification.  Pledgor shall indemnify and hold
Collateral Agent, the Lender and their respective directors, agents, employees and counsel, harmless from and against any and all losses, claims, damages, liabilities, costs or expenses imposed on, incurred by or asserted against any of them in
connection with any litigation, investigation, claim or proceeding commenced or threatened related to the negotiation, preparation, execution, delivery, enforcement, performance or administration of this Pledge Agreement, any other Financing
Agreements, or any undertaking or proceeding related to any of the transactions contemplated hereby or any act, omission, event or transaction related or attendant thereto, including amounts paid in settlement, court costs, and the fees and expenses
of counsel. To the extent that the undertaking to indemnify, pay and hold harmless set forth in this Section may be unenforceable because it violates any law or public policy, Pledgor shall pay the maximum portion which it is permitted to pay under
applicable law to Collateral Agent or any Lender in satisfaction of indemnified matters under this Section. To the extent that the rights of indemnity pursuant hereto are in favour of any Person that is not a party hereto, such rights shall be held
in trust for and on behalf of such Person by the Collateral Agent. The foregoing indemnity shall survive the payment of the Obligations, the termination of this Pledge Agreement and the termination or non-renewal of the Loan Agreement. All of the
foregoing costs and expenses shall be part of the Obligations and secured by the Collateral. 
  
 SECTION
7.8    Judgment Currency.  To the extent permitted by applicable law, the obligations of Pledgor in respect of any amount due under this Pledge Agreement and other Financing Agreements to which Pledgor is a party
shall, notwithstanding any payment in any other
 
 

 12 

 
currency (the “Other Currency”) (whether pursuant to a judgment or otherwise), be discharged only to the extent of the amount in the currency in which it is due (the “Agreed
Currency”) that the Lender may, in accordance with normal banking procedures, purchase with the sum paid in the Other Currency (after any premium and costs of exchange) on the Business Day immediately after the day on which the Lender receives
the payment. If the amount in the Agreed Currency that may be so purchased for any reason falls short of the amount originally due, Pledgor shall pay all additional amounts, in the Agreed Currency, as may be necessary to compensate for the
shortfall. Any obligation of Pledgor not discharged by that payment shall, to the extent permitted by applicable law, be due as a separate and independent obligation and, until discharged as provided in this Section, shall continue in full force and
effect. 
  
 SECTION 7.9  Partial Invalidity.    If any provision of this Pledge
Agreement is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Pledge Agreement as a whole, but this Pledge Agreement shall be construed as though it did not contain the particular provision held to
be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by applicable law. 
  
 SECTION 7.10  Successors.    This Pledge Agreement, the other Financing Agreements and any other document referred to herein or therein
shall be binding upon Pledgor and its successors and assigns and inure to the benefit of and be enforceable by Collateral Agent and its successors and assigns, except that Pledgor may not assign its rights under this Pledge Agreement, the other
Financing Agreements and any other document referred to herein or therein to which it is a party without the prior written consent of Collateral Agent. 
  
 SECTION 7.11  Entire Agreement.    This Pledge Agreement, the other Financing Agreements, any supplements hereto or thereto, and any instruments or documents
delivered or to be delivered in connection herewith or therewith represents the entire agreement and understanding concerning the subject matter hereof and thereof between the parties hereto, and supersede all other prior agreements, understandings,
negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written. 
  
 SECTION 7.12  Attachment.    The security interest created hereby is intended to attach when this Pledge Agreement is executed by
Pledgor and delivered to Collateral Agent. 
  
 SECTION 7.13  Headings.    The
division of this agreement into Sections and the insertion of headings are for convenience only and shall not affect the construction or interpretation of this Pledge Agreement. 
  
 SECTION 7.14  Acknowledgement.    Pledgor acknowledges receipt of a copy of this Pledge Agreement. 
  
 SECTION 7.15  Facsimile.    This Pledge Agreement may be executed and delivered by facsimile
transmission and Lender and Collateral Agent may rely on all such facsimile signatures as though such facsimile signatures were original signatures. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

 

 13 

  
 
	 1328158 ONTARIO INC.
 
	 
	 Per:
 	 	 /s/    MORRIS PERLIS
        
 

	  	 	 Name: Morris Perlis
 Title: Chief Financial
  
 Address:
                141 Adelaide Street West
                                  Toronto, Ontario
                                  M5H 3L4
  
 Facsimile No.: (416) 368-7779
 Attention: President
 

 
 

 14 

  
 ATTACHMENT 1 to 
 Pledge Agreement 
  
 Item A.    Pledged Shares 
  
 
	 Pledged Share Issuer
 
	    	 Common Shares
 

	  	    	 No. of Shares
 Outstanding
 
	    	 No. of Shares
 Pledged
 
	    	 % of Outstanding
 Shares
Pledged
 

	 MAD CATZ INTERACTIVE ASIA LTD.
 	    	 ·
 	    	 ·
 	    	 99
 

 

  
 ATTACHMENT 2 to 
 Pledge Agreement 
  
 Chief Executive Office, etc. 
  
 141 Adelaide Street West 
 Toronto, Ontario 
 M5H 3L4 
 

 16Prepared by R.R. Donnelley Financial -- Amended and Restated Incentive Stock Option Plan

  
 Exhibit 4.26 
  
 GTR GROUP PNC 
 (FORMERLY GAMES TRADER INC.) 
  
 AMENDED AND RESTATED INCENTIVE STOCK OPTION PLAN 
  
  
 ARTICLE I—PURPOSE OF THE PLAN 
  
 1.1  The purpose of the Plan is to provide officers, directors and employees of the Company or its Subsidiaries and any other persons providing ongoing management or consulting services to
tie Company or its Subsidiaries with the opportunity to acquire a proprietary interest in the Company and thereby participate in the growth and development of the Company and its Subsidiaries. 
  

 
 ARTICLE II—DEFINITIONS 
  
 2.1  Where used herein, the following terms shall have the following meanings, respectively: 
  
 (a)  “Act” means the Securities Act (Ontario) as the same may be amended, re-enacted or replaced from time to time;

  
 (b)  “Associate” shall have tie meaning given to it under the Act;

  
 (c)  “Board of Directors” means the Board of Directors of the Company;

  
 (d)  “Company” means GTR Group Inc. (formerly Games Trader Inc.) and
includes any successor corporation thereto; 
  
 (e)  “Compensation
Committee” shall mean the compensation committee of the Board of Directors as the same may be constituted from time to tie by the Board of Directors and any committee in succession to the compensation committee; 
  
 (f)  “Consultant” shall have the meaning given to it under Rule 45-503 of tie Act;

  
 (g)  “Holder” means a person to whom an Option has been granted under
the Plan; 
  
 (h)  “Insider” means: 
  
 (i)  an insider as defined in the Act, other than a person who falls within that definition solely by virtue of
being a director or senior officer (as such term is defined in tie Act) of a Subsidiary; and 
  
 (ii)  an Associate of any person who is an insider by virtue of (i) above; 
  
 (i)  “Option” means an option to purchase Shares granted pursuant to the Plan; 
  
 (j)  “Outstanding Issue” means at any rime the number
of Shares of the Company then issued and outstanding less the number of Shares issued pursuant to Share Compensation Arrangements within the previous 12 months; 

  
 (k)  “Plan” shall mean this GTR Group
Inc.—Amended and Restated Incentive Stock Option Plan adopted by the Board of Directors on the 26th day of May, 2000, as from time to time amended or supplemented as herein provided; 
  
 (l)  “Shares” means common shares in the capital of the Company; 
  
 (m)  “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 Ioan, guaranty or
otherwise; 
  
 (n)  “Subsidiary” means, in respect of the Company, any
corporation that is a “subsidiary”, as that term is defined in the Canada Business Corporation Act, of the Company; and 
  
 (o)  “U.S. Optionee” means any Holder who is a citizen or resident of the United States (including its territories, possessions and all areas subject to its jurisdiction).

  
  
 ARTICLE III—OPTIONS 
  
 3.1  Shares Available.    The Board of Directors may at any time and from time to time, in accordance
with this Plan, reserve and grant Options to purchase such number of treasury Shares which is not in excess of 6,000,000 Shares (subject to adjustment of such number pursuant to Article 5 hereof), or such greater number of Shares as shall have been
duly approved by the Board of Directors and, if required by the rules and policies of The Toronto Stock Exchange or any other Stock Exchange on which the Shares may then be listed, by the shareholders of the Company. 
  
 3.2  Time of Issuance of Options.    The Board of Directors, on the recommendation of the
Compensation Committee may from time to time grant Options pursuant to this Plan. Subject to the provisions of section 3.4, nothing herein shall be construed to prohibit the granting of Options at different times to the same person. 

 
 3.3  Persons Eligible.    Persons eligible to receive Options shall be such bona
fide officers, directors and employees of the Company and/or its Subsidiaries or other persons or companies engaged to provide ongoing management or consulting services to the Company or its Subsidiaries, which, in the view of the
Compensation Committee of the Board of Directors, demonstrate the potential; of becoming key personnel of, or performing valuable services for, the Company and its Subsidiaries, or persons to whom the Options are granted as an inducement of
employment, as the Board of Directors, in its sole discretion, on the recommendations of the Compensation Committee, may determine. Notwithstanding anything to the contrary contained in the Plan, no Options may be granted to Insiders if such
Options, together with any previously granted by the Company could result in: 
  
 (a)  the
number of Shares reserved for issuance pursuant to the Plan or any other stock option plan to Insiders collectively exceeding 10% of the Outstanding Issue; or 
 

 2 

  
 (b)  the issuance to Insiders pursuant to the Share
Compensation Arrangements, collectively within the 12 months immediately preceding or 12 months immediately following the date of grant of such Options, of a number of Shares exceeding 10% of the outstanding Issue; or 
  
 (c) the issuance to any one Insider and such Insider’s Associates pursuant to the Share Compensation Arrangements
within the 12 months immediately preceding or 12 months immediately following the date of grant of such Options, of a number of Shares exceeding 5% of the Outstanding Issue. 
  
 3.4  Number of Shares to be Optioned.    The number of Shares to be optioned to any person shall be determined, in its sole discretion,
by the Board of Directors, on the recommendation of the Compensation Committee, provided that the number of Shares reserved for issuance at any time to any one person pursuant to Share Compensation Arrangements shall not exceed 5% of the number of
Shares of the Company then issued and outstanding. 
  
 3.5  Option
Certificates.    An Option Certificate, in the form approved by the Board of Directors and signed by such officer(s) of the Company as the Board of Directors may from time to time determine, shall be issued to each Holder.
The Option Certificate shall set out the option price and the terms and the conditions on which the Option may be exercised in accordance with the provisions of the Plan. 
  
 3.6  Assignability of Options.    Options and all rights thereunder shall be non-assignable and non-transferable by the Holder,
provided that the personal representatives of a deceased Holder may exercise the rights enjoyed under any such Option at the time of his death subject, however, to the terms, conditions and limitations herein provided, In addition, no Option granted
hereunder shall be pledged, hypothecated, charged, transferred, assigned or otherwise encumbered or disposed of on pain of nullity. 
  
 3.7  Option Price.    The price as which Shares may be purchased under any Option granted pursuant to this Plan shall be determined by the Board of Directors, on recommendation of the
Compensation Committee, but shall in no circumstances be less than: 
  
 (i)  if the Shares
are listed on The Toronto Stock Exchange, the closing price of the Share on The Toronto Stock Exchange on the last trading day prior to the grant of such Option and, if there is no such closing price, then the price at which Shares may be purchased
under any Option granted pursuant to the Plan shall be not less than the simple average of the closing bid and ask prices on The Toronto Stock Exchange on the last trading day prior to the grant of such Option; 
  
 (ii)  if the Shares are not listed on The Toronto Stock Exchange, the closing price of the Shares on such stock
exchange or over the counter market as the Company may be listed or quoted from time to time on the last trading day prior to the grant of such Option and, if there is no such closing price, then the price at which Shares may be purchased under any
Option granted pursuant to the Plan shall be not less than the simple average of the quoted closing bid and ask prices on such stock exchange or over the counter market on the last trading day prior to the grant of such Option; or 

 3 

  
 ARTICLE V—U.S. OPTION HOLDER 
  
 5.1  Any Option granted under this Plan to a U.S. Optionee shall be an incentive stock option within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended, of the United States (the “Code”). No provision of this Plan, as it may be applied to a U.S. Optionee, shall be construed so as to be inconsistent with any provision of Section 422 of the
Code. Notwithstanding anything in this Plan contained to the contrary, the following provisions shall apply to each U.S. Optionee: 
  
 (a)  Options shall only be granted to U.S. Optionees who are, at the time of grant, officers, key employees or directors of the Company or a Subsidiary. Any director of the Company who
is a U.S. Optionee shall be ineligible to vote upon the granting of such Option; 
  
 (b)  the aggregate fair market value (determined as of the time the Option is granted) of the Shares exercisable for the first time by a U.S. Optionee during any calendar year under this Plan and all other stock option
plans, within the meaning of Section 422 of the Code, of the Company or a Subsidiary shall nor exceed U.S. $100,000; 
  
 (c)  the purchase price for Shares under each Option granted to a U.S. Optionee pursuant to this Plan shall be as determined in Section 3.7 and, in any event, shall be not less than the fair market value of such
Shares at the time the Option is granted, as determined in good faith by the directors at such time; 
  
 (d)  if any U.S. Optionee to whom an Option is to be granted under the Plan at the time of the grant of such Option is the owner of shares possessing more than 10% of the total combined voting power of all classes of shares
of the Company, then the following special provisions shall be applicable to the Option granted to such individual: 
  
 (i)  the purchase price per Share subject to such Option shall not be less than 110% of the fair market value of one Share at the time of grant; and 
  
 (ii)  for the purposes of Article 5 only, the Option exercise period shall not exceed 5 years from the date of grant, 
  
 (e)  no Option may be granted hereunder to a U.S. Optionee following the expiry of 10 years after the date on
which this Plan is adopted by the Board or the date the Plan is approved by the shareholders of the Company, whichever is earlier; and 
  
 (f)  no Option granted to a U.S. Optionee under the Plan shall become exercisable unless and until the Plan shall have been approved by the shareholders of the Company. 

 
 ARTICLE VI—ADJUSTMENTS 
  
 6.1  Adjustment of Optioned Share.    If, prior to the complete exercise of any Option, there shall be declared and paid a stock dividend upon the Shares of the
Company or if such Shares shall be consolidated or subdivided or converted, exchanged or reclassified, or in any way substituted for, including without limitation, pursuant to an amalgamation, arrangement or merger, then the Option, to the extent
that it has not been exercised, shall entitle the Holder upon the future exercise of the Option to such number and kind of securities or other property, subject to the terms 
 

 4 

 of the Option, to which the Holder would have been entitled had the Holder actually owned the Shares subject to the unexercised portion of the
Option at the time of the occurrence of such stock dividend, consolidation, conversion, subdivision, exchange, reclassification or substitution, and the aggregate purchase price upon the future exercise of the Option shall be the same as if
originally optioned Shares of the Company were being purchased hereunder. If any such event should occur, the number of Shares reserved for issuance pursuant to the Plan shall be similarly adjusted. 
  
 ARTICLE VII—CHANGE OF CONTROL 
  
 7.1  If a bona fide offer (the “Offer’) for voting or equity shares is made to shareholders of the Company generally, or to a class of shareholders of the Company which, if
Options were exercised, would include Holders, and which Offer, if accepted in whole or in part, would result in the offeror exercising control over the Company within the meaning of subsection l(3) of the Act then, notwithstanding section 3.8 but
subject to the other provisions hereof: 
  
 (a)  The Board of Directors may give its
express consent to the exercise of any Options which are outstanding although not yet exercisable at the time of the Offer in the manner hereinafter provided, 
  
 (b)  If the Board of Directors has so consented to the exercise of any Options outstanding at the time of the Offer, the Company shall,
immediately after such consent has been given, notify each Holder currently holding an Option of the Offer, with full particulars thereof, together with a notice stating that, in order to permit the Holder to participate in the Offer, the Holder
may, during the period that the Offer is open for acceptance (or, if no such period is specified, the period of 30 days following the date of such notice), exercise all or any potion of any such Option held by the Holder. 
  
 (c)  In the event that the Holder so exercises any such Option, such exercise shall be in accordance with
Article 4 hereof, provided that, if necessary in order to permit the Holder to participate in the Offer, such Option shall be deemed to have been exercised and the issuance of Shares received upon such exercise (the “Optioned Shares”)
shall be deemed to have occurred, effective as of the first day prior to the date on which the Offer was made. 
  
 (d)  If, upon the expiry of the applicable period referred to in subsection (b) above, the Offer is completed, and: 
  
 (i)  the Holder has not exercised the entire or any portion of such Option then, as of and from the expiry of such period, the Holder’s right to purchase the Shares covered by such
Option shall not be exercisable, and shall expire and be null and void; and 
  
 (ii)  the
Holder has exercised the entire or any portion of such Option, but has not tendered the Shares received in connection with such exercise to the Offer, then, as and from the expiry of such period, the Company may require the Holder to sell to the
Company such Optioned Shares for a purchase price of $.001 per Optioned Share. 
 

 5 

  
 (e)  If: 
  
 (i)  the Offer is not completed (within the time specified therein, if applicable); 
  
 or 
  
 (ii)  all of the Optioned Shares tendered by the Holder pursuant to the Offer are not taken up and paid for by the offeror in respect thereof; 
  
 then the Optioned Shares or, in the case of paragraph (ii) above, the portion thereof that are not taken up and paid for by such offeror,
shall be returned by the Holder to the Company for cancellation and the terms of the Option as set forth herein shall again apply to such Option, or the remaining portion thereof, as the case may be. 
  
 (f)  If any Optioned Shares are returned to the Company pursuant to subsection (e) above, the Company shall
refund the option price to the Holder in respect of such Optioned Shares. 
  
 (g)  In no
event shall the Holder be entitled to sell the Optioned Shares otherwise than pursuant to the Offer, except as provided in paragraph (d)(ii) above. 
  
 ARTICLE VIII—FRACTIONAL SHARES 
  
 8.1  No
fractional shares may be purchased or issued under the Plan. If, as a result of any adjustment pursuant to Article 6 hereof, a Holder would become entitled to a fractional Share, he or she shall have the right to purchase only the next lower whole
number of Shares and no payment or other adjustment will be made with respect to the fractional interest so disregarded. 
  
 ARTICLE IX—LIMITATIONS 
  
 9.1  The Company’s obligations to issue Shares
in accordance with the terms of this Plan is subject to compliance with the laws, rules, and regulations of all public agencies and authorities applicable to the issuance and distribution of such Shares and to the listing of such Shares on any Stock
Exchange on which the Shares of the Company may be listed. Each Holder agrees to comply with all such laws, rules and regulations and agrees to furnish to the Company all information and such undertakings as may be required to permit compliance with
such laws, rules and regulations. 
  
 ARTICLE X—AMENDMENT OR DISCONTINUANCE OF THE PLAN 
  
 10.1  The Board of Directors may discontinue the Plan at any time, provided that such discontinuance may not alter or impair any
Option previously granted to a Holder under the Plan. Subject to any necessary approval of The Toronto Stock Exchange or any other Stock Exchange on which the Shares may be listed, the Board of Directors may from time to time amend the Plan and the
terms and the conditions of any Options thereafter to be granted and the Board of Directors, with the consent of the affected Holder of an Option, may from time to time amend the Plan and the terms and conditions of any Options which have been
theretofore granted. 
 

 6 

  
 ARTICLE XI—MISCELLANEOUS PROVISIONS 
  
 11.1  Rights of Holders.    The Holder of an Option shall not have any rights as a shareholder of the
Company with respect to any Shares covered by such Option until such Holder shall have exercised such Option in accordance with the terms of the Plan (including tendering payment in full of the aggregate exercise price in respect of which the Option
is being exercised). 
  
 11.2  No Additional Rights Conferred.    Nothing in the
Plan nor any Option shall confer upon any Holder any right to continue as an employee, officer or director of the Company or any Subsidiary or a consultant to the Company or a Subsidiary or affect in any manner the right of the Company or any
Subsidiary to terminate a Holder’s employment or consulting contract at any time. 
  
 11.3  Approved Leave of Absence.    In the event a Holder shall go on an approved leave of absence, the Board of Directors may make such provision respecting continuance of the Option as the Board
of Directors may deem equitable, except that in no event shall any Option be exercisable after the date specified in it for expiration. In making such equitable provisions for a Holder on leave of absence, the relationship between such person and
the Company shall be treated as continuing for the purpose of this Plan. 
  
 Adopted by the Board of
Directors of GTR GROUP INC. 
  
 
	 
	 By:
 	 	 /s/    GEOFREY
MYERS        
 

	  	 	 Geofrey Myers  
 Secretary
 

 
 

 7

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