Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Xten Networks, Inc. - Exhibit 4.3

 XTEN NETWORKS, INC. 

 2005 STOCK OPTION PLAN 

                        This
  2005 Stock Option Plan (the "Plan") provides for the grant of options to acquire
  shares of common stock, no par value (the "Common Stock"), of Xten Networks,
  Inc., a Nevada company (the "Company"). For the purposes of Eligible Employees
  (as defined below) who are subject to tax in the United States, stock options
  granted under this Plan that qualify under Section 422 of the United States
  Internal Revenue Code of 1986, as amended (the "Code"), are referred to in this
  Plan as "Incentive Stock Options". Incentive Stock Options and stock options
  that do not qualify under Section 422 of the Code ("Non-Qualified Stock Options")
  and stock options granted to non-United States residents under this Plan are
  referred to collectively as "Options". 

 1.                    
  PURPOSE

 1.1                  
   The purpose of this Plan is to retain the services of valued key employees
  and consultants of the Company and such other persons as the Plan Administrator
  shall select in accordance with Section 3 below, and to encourage such persons
  to acquire a greater proprietary interest in the Company, thereby strengthening
  their incentive to achieve the objectives of the shareholders of the Company,
  and to serve as an aid and inducement in the hiring of new employees and to
  provide an equity incentive to consultants and other persons selected by the
  Plan Administrator. 

 1.2                  
   This Plan shall at all times be subject to all legal requirements relating
  to the administration of stock option plans, if any, under applicable Canadian
  federal and provincial, and United States federal and state securities laws,
  the Code, the rules of any applicable stock exchange or stock quotation system,
  and the rules of any foreign jurisdiction applicable to Options granted to residents
  therein (collectively, the "Applicable Laws"). 

 2.                    
  ADMINISTRATION

 2.1                  
   This Plan shall be administered initially by the Board of Directors
  of the Company (the "Board"), except that the Board may, in its discretion,
  establish a committee composed of two (2) or more members of the Board to administer
  the Plan, which committee (the "Committee") may be an executive, compensation
  or other committee, including a separate committee especially created for this
  purpose. The Board or, if applicable, the Committee is referred to herein as
  the "Plan Administrator". 

 2.2                  
   If and so long as the Common Stock is registered under Section 12(b)
  or 12(g) of the United States Securities Exchange Act of 1934, as amended
  (the "Exchange Act"), the Board shall consider in selecting the Plan Administrator
  and the membership of any Committee, with respect to any persons subject or
  likely to become subject to Section 16 of the Exchange Act, the provisions regarding
  (a) "outside directors" as contemplated by Section 162(m) of the Code, and (b)
  "Non-Employee Directors" as contemplated by Rule 16b-3 under the Exchange Act.

 2.3                   
  The Committee shall have the powers and authority vested in the Board
  hereunder (including the power and authority to interpret any provision of the
  Plan or of any Option). The members of any such Committee shall serve at the
  pleasure of the Board. A majority of the members of the Committee shall constitute
  a quorum, and all actions of the Committee shall be taken by a 

 - 2 - 

 majority of the members present. Any action may be taken by
  a written instrument signed by all of the members of the Committee and any action
  so taken shall be fully effective as if it had been taken at a meeting. 

 2.4                  
   The Board may at any time amend, suspend or terminate the Plan, subject
  to such shareholder approval as may be required by Applicable Laws, including
  the rules of an applicable stock exchange or other national market system, provided
  that: 

	 	 (a)      	 no Options may be granted during any suspension
        of the Plan or after termination of the Plan; and 

	 
	 	 (b)      	 any amendment, suspension or termination of the
        Plan will not affect Options already granted, and such Options will remain
        in full force and affect as if the Plan had not been amended, suspended
        or terminated, unless mutually agreed otherwise between the Optionee (as
        defined below) and the Plan Administrator, which agreement will have to
        be in writing and signed by the Optionee and the Company. 

 2.5                   
  Subject to the provisions of this Plan, and with a view to effecting
  its purpose, the Plan Administrator shall have sole authority, in its absolute
  discretion, to: 

	 	 (a)      	 construe and interpret this Plan; 

	 
	 	 (b)      	 define the terms used in the Plan; 

	 
	 	 (c)      	 prescribe, amend and rescind the rules and regulations
        relating to this Plan; 

	 
	 	 (d)      	 correct any defect, supply any omission or reconcile
        any inconsistency in this Plan; 

	 
	 	 (e)      	 grant Options under this Plan; 

	 
	 	 (f)      	 determine the individuals to whom Options shall
        be granted under this Plan and whether the Option is an Incentive Stock
        Option or a Non-Qualified Stock Option, or otherwise; 

	 
	 	 (g)      	 determine the time or times at which Options shall
        be granted under this Plan; 

	 
	 	 (h)      	 determine the number of shares of Common Stock subject
        to each Option, the exercise price of each Option, the duration of each
        Option and the times at which each Option shall become exercisable; 

	 
	 	 (i)      	 determine all other terms and conditions of the
        Options; and 

	 
	 	 (j)      	 make all other determinations and interpretations
        necessary and advisable for the administration of the Plan. 

 2.6                   
  All decisions, determinations and interpretations made by the Plan Administrator
  shall be binding and conclusive on all participants in the Plan and on their
  legal representatives, heirs and beneficiaries, subject to any contrary determination
  by the Board. 

 - 3 - 

 3.                    
  ELIGIBILITY

 3.1                   
  Incentive Stock Options may be granted to any individual who, at the
  time the Option is granted, is an employee of the Company or any Related Company
  (as defined below) ("Eligible Employees") subject to tax in the United States.

 3.2                   
  Non-Qualified Stock Options may be granted to Eligible Employees, Consultants,
  and to such other persons who are not Eligible Employees as the Plan Administrator
  shall select, subject to any Applicable Laws.

 3.3                   
  Options may be granted in substitution for outstanding options of another
  company in connection with the merger, consolidation, acquisition of property
  or stock or other reorganization between such other company and the Company
  or any subsidiary of the Company. Options also may be granted in exchange for
  outstanding Options.

 3.4                   
  Unless otherwise approved by the Plan Administrator, no person shall
  be eligible to receive in any fiscal year Options to purchase more than 5% of
  the outstanding shares of Common Stock (subject to adjustment as set forth in
  Section 5.1(m) hereof). Any person to whom an Option is granted under this Plan
  is referred to as an "Optionee". Any person who is the owner of an Option is
  referred to as a "Holder". 

 3.5                   
  As used in this Plan, the term "Related Company" shall mean any company
  (other than the Company) that is a "Parent Company" of the Company or "Subsidiary
  Company" of the Company, as those terms are defined in Sections 424(e) and 424(f),
  respectively, of the Code (or any successor provisions) and the regulations
  thereunder (as amended from time to time). 

 4.                    
  STOCK

 4.1                   
  The Plan Administrator is authorized to grant Options to acquire up to
  a total of 6,000,000 shares of the Company's authorized but unissued, or reacquired,
  Common Stock. The number of shares with respect to which Options may be granted
  hereunder is subject to adjustment as set forth in Section 5.1(m) hereof. In
  the event that any outstanding Option expires or is terminated for any reason,
  the shares of Common Stock allocable to the unexercised portion of such Option
  may again be subject to an Option granted to the same Optionee or to a different
  person eligible under Section 3 of this Plan; provided however, that any cancelled
  Options will be counted against the maximum number of shares with respect to
  which Options may be granted to any particular person as set forth in Section
  3 hereof. 

 5.                    
  TERMS AND CONDITIONS OF OPTIONS

 5.1                   
  Each Option granted under this Plan shall be evidenced by a written agreement
  approved by the Plan Administrator (the "Agreement"). Agreements may contain
  such provisions, not inconsistent with this Plan, as the Plan Administrator
  in its discretion may deem advisable. All Options also shall comply with the
  following requirements: 

	 	 (a)      	 Number of Shares and Type of Option 
	 
	 	 	 Each Agreement shall state the number of shares
        of Common Stock to which it pertains and, for Optionees subject to tax
        in the United States, whether the Option is intended to be an Incentive
        Stock Option or a Non-Qualified Stock Option, provided that: 

 - 4 - 

	 	 	 (i)     
      
	 in the absence of action to the contrary by the
        Plan Administrator in connection with the grant of an Option, all Options
        shall be Non-Qualified Stock Options; 

	 
	 	 	 (ii)      
	 the aggregate fair market value (determined at the
        Date of Grant, as defined below) of the stock with respect to which Incentive
        Stock Options are exercisable for the first time by an Optionee subject
        to tax in the United States during any calendar year (granted under this
        Plan and all other Incentive Stock Option plans of the Company, a Related
        Company or a predecessor company) shall not exceed U.S.$100,000, or
        such other limit as may be prescribed by the Code as it may be amended
        from time to time (the "Annual Limit"); and 

	 
	 	 	 (iii)      
	 any portion of an Option which exceeds the Annual
        Limit shall not be void but rather shall be a Non-Qualified Stock Option.
      

	 
	 	 (b)      
	 Date of Grant 

	 
	 	 	 Each Agreement shall state the date the
        Plan Administrator has deemed to be the effective date of the Option for
        purposes of this Plan (the "Date of Grant"). 

	 
	 	 (c)      
	 Option Price 

	 
	 	 	 Each Agreement shall state the price per
        share of Common Stock at which it is exercisable. The Plan Administrator
        shall act in good faith to establish the exercise price in accordance
        with Applicable Laws; provided that: 

	 
	 	 	 (i)      
	 the per share exercise price for an Incentive Stock
        Option or any Option granted to a "covered employee" as such term is defined
        for purposes of Section 162(m) of the Code ("Covered Employee") shall
        not be less than the fair market value per share of the Common Stock at
        the Date of Grant as determined by the Plan Administrator in good faith;
      

	 
	 	 	 (ii)      
	 with respect to Incentive Stock Options granted
        to greater-than-ten percent (>10%) shareholders of the Company (as
        determined with reference to Section 424(d) of the Code), the exercise
        price per share shall not be less than one hundred ten percent (110%)
        of the fair market value per share of the Common Stock at the Date of
        Grant as determined by the Plan Administrator in good faith; 

	 
	 	 	 (iii)      
	 Options granted in substitution for outstanding
        options of another company in connection with the merger, consolidation,
        acquisition of property or stock or other reorganization involving such
        other company and the Company or any subsidiary of the Company may be
        granted with an exercise price equal to the exercise price for the substituted
        option of the other company, subject to any adjustment consistent with
        the terms of the transaction pursuant to which the substitution is to
        occur; and 

 - 5 - 

	 	 	 (iv)     
      
	 with respect to Non-Qualified Stock Options, the
        exercise price per share shall be determined by the Plan Administrator
        at the time the Option is granted, but such price shall not be less than
        the closing trading price of the Common Stock on the OTCBB on the last
        trading day preceding the date on which the Option is granted (or if the
        Common Stock is not then listed and posted for trading on the OTCBB, on
        such other stock exchange on which the Common Shares are listed and posted
        for trading as may be selected by the Board of Directors). In the event
        that the Common Stock is not listed and posted for trading on any stock
        exchange or other quotation systems, the exercise price shall be the fair
        market value of the Common Stock as determined by the Plan Administrator.
      

	 
	 	 (d)      	 Duration of Options 

	 
	 	 	 At the time of the grant of the Option,
        the Plan Administrator shall designate, subject to paragraph 5.1(g) below,
        the expiration date of the Option, which date shall not be later than
        ten (10) years from the Date of Grant; provided, that the expiration
        date of any Incentive Stock Option granted to a greater-than-ten percent
        (>10%) shareholder of the Company (as determined with reference to
        Section 424(d) of the Code) shall not be later than five (5) years from
        the Date of Grant. In the absence of action to the contrary by the Plan
        Administrator in connection with the grant of a particular Option, and
        except in the case of Incentive Stock Options as described above, all
        Options granted under this Plan shall expire five (5) years from the Date
        of Grant. 

	 
	 	 (e)      	 Vesting Schedule 

	 
	 	 	 No Option shall be exercisable until it
        has vested. The vesting schedule for each Option shall be specified by
        the Plan Administrator at the time of grant of the Option prior to the
        provision of services with respect to which such Option is granted; provided
        that if no vesting schedule is specified at the time of grant, the
        Option shall vest as follows: 

	 
	 	 	 (i)      
	 on the first anniversary of the Date of Grant, the
        Option shall vest and shall become exercisable with respect to 25% of
        the Common Stock to which it pertains; 

	 
	 	 	 (ii)      
	 on the second anniversary of the Date of Grant,
        the Option shall vest and shall become exercisable with respect to an
        additional 25% of the Common Stock to which it pertains; 

	 
	 	 	 (iii)      
	 on the third anniversary of the Date of Grant, the
        Option shall vest and shall become exercisable with respect to an additional
        25% of the Common Stock to which it pertains; and 

	 
	 	 	 (iv)      
	 on the fourth anniversary of the Date of Grant,
        the Option shall vest and shall become exercisable with respect to balance
        of the Common Stock to which it pertains. 

	 
	 	 	 The Plan Administrator may specify a vesting
        schedule for all or any portion of an Option based on the achievement
        of performance objectives established in advance of 

 - 6 - 

	 	 	 the commencement by the Optionee of services
        related to the achievement of the performance objectives. Performance
        objectives shall be expressed in terms of one or more of the following:
        return on equity, return on assets, share price, market share, sales,
        earnings per share, costs, net earnings, net worth, inventories, cash
        and cash equivalents, gross margin or the Company's performance relative
        to its internal business plan, or such other terms as determined and directed
        by the Board. Performance objectives may be in respect of the performance
        of the Company as a whole (whether on a consolidated or unconsolidated
        basis), a Related Company, or a subdivision, operating unit, product or
        product line of either of the foregoing. Performance objectives may be
        absolute or relative and may be expressed in terms of a progression or
        a range. An Option that is exercisable (in full or in part) upon the achievement
        of one or more performance objectives may be exercised only following
        written notice to the Optionee and the Company by the Plan Administrator
        that the performance objective has been achieved. 

	 
	 	 (f)      
	 Acceleration of Vesting 

	 
	 	 	 The vesting of one or more outstanding
        Options may be accelerated by the Plan Administrator at such times and
        in such amounts as it shall determine in its sole discretion. The vesting
        of Options also shall be accelerated under the circumstances described
        in Section 5.1(m) below. 

	 
	 	 (g)      
	 Term of Option 

	 
	 	 	 (i)      
	 Options that have vested as specified
        by the Plan Administrator or in accordance with this Plan, shall terminate,
        to the extent not previously exercised, upon the occurrence of the first
        of the following events: 

	 
	 	 	 	 A.     
      
	 the expiration of the Option, as designated by the
        Plan Administrator in accordance with Section 5.1(d) above; 

	 
	 	 	 	 B.      
	 the date of an Optionee's termination of employment
        or contractual relationship with the Company or any Related Company for
        cause (as determined in the sole discretion of the Plan Administrator);
      

	 
	 	 	 	 C.      
	 the expiration of three (3) months from the date
        of an Optionee's termination of employment or contractual relationship
        with the Company or any Related Company for any reason whatsoever other
        than cause, death or Disability (as defined below); or 

	 
	 	 	 	 D.      
	 the expiration of one year (1) from termination
        of an Optionee's employment or contractual relationship by reason of death
        or Disability (as defined below). 

	 
	 	 	 (ii)      
	 Upon the death of an Optionee, any vested
        Options held by the Optionee shall be exercisable only by the person or
        persons to whom such Optionee's rights under such Option shall pass by
        the Optionee's will or by the laws of descent and distribution of the
        Optionee's domicile at the time of death and only until such Options terminate
        as provided above. 

 - 7 - 

	 	 	 (iii)   
          
	 For purposes of the Plan, unless otherwise defined
        in the Agreement, "Disability" shall mean medically determinable physical
        or mental impairment which has lasted or can be expected to last for a
        continuous period of not less than six (6) months or that can be expected
        to result in death. The Plan Administrator shall determine whether an
        Optionee has incurred a Disability on the basis of medical evidence acceptable
        to the Plan Administrator. Upon making a determination of Disability,
        the Plan Administrator shall, for purposes of the Plan, determine the
        date of an Optionee's termination of employment or contractual relationship.
      

	 
	 	 	 (iv)      
	 Unless accelerated in accordance with Section 5.1(f)
        above, unvested Options shall terminate immediately upon the Optionee
        resigning from or the Company terminating the Optionee’s employment
        or contractual relationship with the Company or any Related Company for
        any reason whatsoever, including death or Disability. 

	 
	 	 	 (v)      
	 For purposes of this Plan, transfer of employment
        between or among the Company and/or any Related Company shall not be deemed
        to constitute a termination of employment with the Company or any Related
        Company. For purposes of this subsection, employment shall be deemed to
        continue while the Optionee is on military leave, sick leave or other
        bona fide leave of absence (as determined by the Plan Administrator).
        The foregoing notwithstanding, employment shall not be deemed to continue
        beyond the first ninety (90) days of such leave, unless the Optionee's
        re-employment rights are guaranteed by statute or by contract. 

	 
	 	 (h)      	 Exercise of Options 

	 
	 	 	 (i)      
	 Options shall be exercisable, in full or in part,
        at any time after vesting, until termination. If less than all of the
        shares included in the vested portion of any Option are purchased, the
        remainder may be purchased at any subsequent time prior to the expiration
        of the Option term. No portion of any Option for less than fifty (50)
        shares (as adjusted pursuant to Section 5.1(m) below) may be exercised;
        provided, that if the vested portion of any Option is less than
        fifty (50) shares, it may be exercised with respect to all shares for
        which it is vested. Only whole shares may be issued pursuant to an Option,
        and to the extent that an Option covers less than one (1) share, it is
        unexercisable. 

	 
	 	 	 (ii)      
	 Options or portions thereof may be exercised by
        giving written notice to the Company, which notice shall specify the number
        of shares to be purchased, and be accompanied by payment in the amount
        of the aggregate exercise price for the Common Stock so purchased, which
        payment shall be in the form specified in Section 5.1(i) below. The Company
        shall not be obligated to issue, transfer or deliver a certificate of
        Common Stock to the Holder of any Option, until provision has been made
        by the Holder, to the satisfaction of the Company, for the payment of
        the aggregate exercise price for all shares for which the Option shall
        have been exercised and for satisfaction of any tax withholding obligations
        associated with such exercise. 

 - 8 - 

	 	 	 (iii)      
	 During the lifetime of an Optionee, Options
        are exercisable only by the Optionee or in the case of a Non-Qualified
        Stock Option, transferee who takes title to such Option in the manner
        permitted by subsection 5.1(k) hereof. 

	 
	 	 (i)      	 Payment upon Exercise of Option 

	 
	 	 	 Upon the exercise of any Option, the aggregate
        exercise price shall be paid to the Company in cash or by certified or
        cashier's check. In addition, if pre-approved in writing by the Plan Administrator
        who may arbitrarily withhold consent, the Holder may pay for all or any
        portion of the aggregate exercise price by complying with one or more
        of the following alternatives: 

	 
	 	 	 (i)      
	 by delivering to the Company shares of
        Common Stock previously held by such Holder, or by the Company withholding
        shares of Common Stock otherwise deliverable pursuant to exercise of the
        Option, which shares of Common Stock received or withheld shall have a
        fair market value at the date of exercise (as determined by the Plan Administrator)
        equal to the aggregate exercise price to be paid by the Optionee upon
        such exercise; or 

	 
	 	 	 (ii)      
	 by complying with any other payment mechanism
        approved by the Plan Administrator at the time of exercise. 

	 
	 	 (j)      	 No Rights as a Shareholder 

	 
	 	 	 A Holder shall have no rights as a shareholder
        with respect to any shares covered by an Option until such Holder becomes
        a record holder of such shares, irrespective of whether such Holder has
        given notice of exercise. Subject to the provisions of Section 5.1(m)
        hereof, no rights shall accrue to a Holder and no adjustments shall be
        made on account of dividends (ordinary or extraordinary, whether in cash,
        securities or other property) or distributions or other rights declared
        on, or created in, the Common Stock for which the record date is prior
        to the date the Holder becomes a record holder of the shares of Common
        Stock covered by the Option, irrespective of whether such Holder has given
        notice of exercise. 

	 
	 	 (k)      	 Transfer of Option 

	 
	 	 	 (i)      
	 Options granted under this Plan and the
        rights and privileges conferred by this Plan may not be transferred, assigned,
        pledged or hypothecated in any manner (whether by operation of law or
        otherwise) other than by will or by applicable laws of descent and distribution
        or pursuant to a qualified domestic relations order, and shall not be
        subject to execution, attachment or similar process; provided however
        that, subject to applicable laws: 

	 
	 	 	 	 A.     
      
	 for Incentive Stock Options, any Agreement may provide
        or be amended to provide that a Non-Qualified Stock Option to which it
        relates is transferable without payment of consideration to immediate
        family members of the Optionee or to trusts or partnerships or limited
        liability companies established exclusively 

 - 9 - 

	 	 	 	  	for the benefit of the Optionee and the Optionee's
        immediate family members; or 

	 
	 	 	 	 B.     
      
	 for Non-Qualified Stock Options, the Optionee's
        heirs or administrators may exercise any portion of the outstanding Options
        within one year of the Optionee's death. 

	 
	 	 	 (ii)      
	 Upon any attempt to transfer, assign,
        pledge, hypothecate or otherwise dispose of any Option or of any right
        or privilege conferred by this Plan contrary to the provisions hereof,
        or upon the sale, levy or any attachment or similar process upon the rights
        and privileges conferred by this Plan, such Option shall thereupon terminate
        and become null and void. 

	 
	 	 (l)      	 Securities Regulation and Tax Withholding
      

	 
	 	 	 (i)      
	 Shares shall not be issued with respect
        to an Option unless the exercise of such Option and the issuance and delivery
        of such shares shall comply with all Applicable Laws. The inability of
        the Company to obtain from any regulatory body the authority deemed by
        the Company to be necessary for the lawful issuance and sale of any Options
        or shares under this Plan, or the unavailability of an exemption from
        registration for the issuance and sale of any shares under this Plan,
        shall relieve the Company of any liability with respect to the non-issuance
        or sale of such Options or shares. 

	 
	 	 	 (ii)      
	 As a condition to the exercise of an Option,
        the Plan Administrator may require the Holder to represent and warrant
        in writing at the time of such exercise that the shares are being purchased
        only for investment and without any then-present intention to sell or
        distribute such shares. At the option of the Plan Administrator, a stop-transfer
        order against such shares may be placed on the stock books and records
        of the Company, and a legend indicating that the stock may not be pledged,
        sold or otherwise transferred unless an opinion of counsel is provided
        stating that such transfer is not in violation of any applicable law or
        regulation, may be stamped on the certificates representing such shares
        in order to assure an exemption from registration. The Plan Administrator
        also may require such other documentation as may from time to time be
        necessary to comply with federal, provincial or state securities laws.
        THE COMPANY HAS NO OBLIGATION TO UNDERTAKE REGISTRATION OF OPTIONS OR
        THE SHARES OF STOCK ISSUABLE UPON THE EXERCISE OF OPTIONS. 

	 
	 	 	 (iii)      
	 The Holder shall pay to the Company by
        certified or cashier's check, promptly upon exercise of an Option or,
        if later, the date that the amount of such obligations becomes determinable,
        all applicable federal, state, provincial, local and foreign withholding
        taxes that the Plan Administrator, in its discretion, determines to result
        upon exercise of an Option or from a transfer or other disposition of
        shares of Common Stock acquired upon exercise of an Option or otherwise
        related to an Option or shares of Common Stock acquired in connection
        with an Option. Upon approval of the Plan 

 - 10 - 

	 	 	 	Administrator, a Holder
        may satisfy such obligation by complying with one or more of the following
        alternatives selected by the Plan Administrator: 

	 	 	 	 	 
	 	 	 	A.
	by delivering to the Company shares of Common Stock
        previously held by such Holder or by the Company withholding shares of
        Common Stock otherwise deliverable pursuant to the exercise of the Option,
        which shares of Common Stock received or withheld shall have a fair market
        value at the date of exercise (as determined by the Plan Administrator)
        equal to any withholding tax obligations arising as a result of such exercise,
        transfer or other disposition; or 

	 	 	 	 	 
	 	 	 	B. 
	by complying with any other payment mechanism approved
        by the Plan Administrator from time to time. 

	 	 	 (iv)     
      
	 The issuance, transfer or delivery of certificates
        of Common Stock pursuant to the exercise of Options may be delayed, at
        the discretion of the Plan Administrator, until the Plan Administrator
        is satisfied that the applicable requirements of the federal, provincial
        and state securities laws and the withholding provisions under Applicable
        Laws have been met and that the Holder has paid or otherwise satisfied
        any withholding tax obligation as described in paragraph 5.1(l)(iii) above.
      

	 
	 	 (m)      	 Stock Dividend or Reorganization 

	 
	 	 	 (i)      
	 If: (1) the Company shall at any time be involved
        in a transaction described in Section 424(a) of the Code (or any successor
        provision) or any "corporate transaction" described in the regulations
        thereunder; (2) the Company shall declare a dividend payable in, or shall
        subdivide, reclassify, reorganize, or combine, its Common Stock; or (3)
        any other event with substantially the same effect shall occur, the Plan
        Administrator shall, subject to applicable law, with respect to each outstanding
        Option, proportionately adjust the number of shares of Common Stock subject
        to such Option and/or the exercise price per share so as to preserve the
        rights of the Holder substantially proportionate to the rights of the
        Holder prior to such event, and to the extent that such action shall include
        an increase or decrease in the number of shares of Common Stock subject
        to outstanding Options, the number of shares available under Section 4
        of this Plan and the exercise price for such Options shall automatically
        be increased or decreased, as the case may be, proportionately, without
        further action on the part of the Plan Administrator, the Company, the
        Company's shareholders, or any Holder, so as to preserve the proportional
        rights of the Holder. 

	 
	 	 	 (ii)      
	 In the event that the presently authorized capital
        stock of the Company is changed into the same number of shares with a
        different par value, or without par value, the stock resulting from any
        such change shall be deemed to be Common Stock within the meaning of the
        Plan, and each Option shall apply to the same number of shares of such
        new stock as it applied to old shares immediately prior to such change.
      

 - 11 - 

	 	 	 (iii)      	 If the Company shall at any time declare an extraordinary
        dividend with respect to the Common Stock, whether payable in cash or
        other property, the Plan Administrator may, subject to applicable law,
        in the exercise of its sole discretion and with respect to each outstanding
        Option, proportionately adjust the number of shares of Common Stock subject
        to such Option and/or adjust the exercise price per share so as to preserve
        the rights of the Holder substantially proportionate to the rights of
        the Holder prior to such event, and to the extent that such action shall
        include an increase or decrease in the number of shares of Common Stock
        subject to outstanding Options, the number of shares available under Section
        4 of this Plan shall automatically be increased or decreased, as the case
        may be, proportionately, without further action on the part of the Plan
        Administrator, the Company, the Company's shareholders, or any Holder.
      

	 
	 	 	 (iv)      	 The foregoing adjustments in the shares subject
        to Options shall be made by the Plan Administrator, or by any successor
        administrator of this Plan, or by the applicable terms of any assumption
        or substitution document. 

	 
	 	 	 (v)      	 The grant of an Option shall not affect in any way
        the right or power of the Company to make adjustments, reclassifications,
        reorganizations or changes of its capital or business structure, to merge,
        consolidate or dissolve, to liquidate or to sell or transfer all or any
        part of its business or assets. 

 6.                    
  EFFECTIVE DATE; SHAREHOLDER APPROVAL

 6.1                  
   Incentive Stock Options may be granted by the Plan Administrator from
  time to time on or after the date on which this Plan is adopted (the "Effective
  Date") through the day immediately preceding the tenth anniversary of the Effective
  Date.

 6.2                   
  Non-Qualified Stock Options may be granted by the Plan Administrator
  on or after the Effective Date and until this Plan is terminated by the Board
  in its sole discretion.

 6.3                   
  Termination of this Plan shall not terminate any Option granted prior
  to such termination.

 6.4                   
  The approval of Disinterested Shareholders will be obtained for any reduction
  in the exercise price of Options if the Optionee is an Insider of the Company
  at the time of the proposed amendment. The terms "Disinterested Shareholder"
  and "Insider" shall have the meanings as defined for those terms in the Applicable
  Laws. 

 6.5                   
  Any Options granted by the Plan Administrator prior to the approval of
  this Plan by the shareholders of the Company shall be granted subject to ratification
  of this Plan by the shareholders of the Company within twelve (12) months before
  or after the Effective Date. If such shareholder ratification is sought and
  not obtained, all Options granted prior thereto and thereafter shall be considered
  Non-Qualified Stock Options and any Options granted to Covered Employees will
  not be eligible for the exclusion set forth in Section 162(m) of the Code with
  respect to the deductibility by the Company of certain compensation. In addition,
  any such Options will remain unvested unless and until shareholder approval
  is obtained. 

 - 12 - 

 7.                    
  NO OBLIGATIONS TO EXERCISE OPTION

 7.1                   
  The grant of an Option shall impose no obligation upon the Optionee to
  exercise such Option. 

 8.                    
  NO RIGHT TO OPTIONS OR TO EMPLOYMENT

 8.1                   
  Whether or not any Options are to be granted under this Plan shall be
  exclusively within the discretion of the Plan Administrator, and nothing contained
  in this Plan shall be construed as giving any person any right to participate
  under this Plan.

 8.2                   
  The grant of an Option shall in no way constitute any form of agreement
  or understanding binding on the Company or any Related Company, express or implied,
  that the Company or any Related Company will employ or contract with an Optionee
  for any length of time, nor shall it interfere in any way with the Company's
  or, where applicable, a Related Company's right to terminate Optionee's employment
  at any time, which right is hereby reserved. 

 9.                    
  APPLICATION OF FUNDS

 9.1                   
  The proceeds received by the Company from the sale of Common Stock issued
  upon the exercise of Options shall be used for general corporate purposes, unless
  otherwise directed by the Board. 

 10.                   INDEMNIFICATION
  OF PLAN ADMINISTRATOR

 10.1                  
  In addition to all other rights of indemnification they may have as members
  of the Board, members of the Plan Administrator shall be indemnified by the
  Company for all reasonable expenses and liabilities of any type or nature, including
  attorneys' fees, incurred in connection with any action, suit or proceeding
  to which they or any of them are a party by reason of, or in connection with,
  this Plan or any Option granted under this Plan, and against all amounts paid
  by them in settlement thereof (provided that such settlement is approved by
  independent legal counsel selected by the Company), except to the extent that
  such expenses relate to matters for which it is adjudged that such Plan Administrator
  member is liable for willful misconduct; provided, that within fifteen (15)
  days after the institution of any such action, suit or proceeding, the Plan
  Administrator member involved therein shall, in writing, notify the Company
  of such action, suit or proceeding, so that the Company may have the opportunity
  to make appropriate arrangements to prosecute or defend the same. 

 11.                   
  AMENDMENT OF PLAN

 11.1                   The
  Plan Administrator may, subject to Applicable Laws, at any time, modify, amend
  or terminate this Plan or modify or amend Options granted under this Plan, including,
  without limitation, such modifications or amendments as are necessary to maintain
  compliance with applicable statutes, rules or regulations; provided however
  that: 

	 	 (a)      	 no amendment with respect to an outstanding Option
        which has the effect of reducing the benefits afforded to the Holder thereof
        shall be made over the objection of such Holder; 

 - 13 - 

	 	 (b)      	 the events triggering acceleration of vesting of
        outstanding Options may be modified, expanded or eliminated without the
        consent of Holders; 

	 
	 	 (c)      	 the Plan Administrator may condition the effectiveness
        of any such amendment on the receipt of shareholder approval at such time
        and in such manner as the Plan Administrator may consider necessary for
        the Company to comply with or to avail the Company and/or the Optionees
        of the benefits of any securities, tax, market listing or other administrative
        or regulatory requirement; and 

	 
	 	 (d)      	 the Plan Administrator may not increase the number
        of shares available for issuance on the exercise of Incentive Stock Options
        without shareholder approval. 

 11.2                   Without
  limiting the generality of Section 11.1 hereof, the Plan Administrator may modify
  grants to persons who are eligible to receive Options under this Plan who are
  foreign nationals or employed outside Canada and the United States to recognize
  differences in local law, tax policy or custom. 

 Effective Date: March 4, 2005Filed by Automated Filing Services Inc. (604) 609-0244 - Xten Networks, Inc. - Exhibit 4.4

 

 THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN
  AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
  PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
  AMENDED (THE "1933 ACT").

 NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED
  UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED,
  MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS
  DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS
  OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
  UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
  NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE
  ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
  TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
  WITH THE 1933 ACT. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION
  S UNDER THE 1933 ACT.

 STOCK OPTION AND SUBSCRIPTION AGREEMENT 

 THIS STOCK OPTION AND SUBSCRIPTION AGREEMENT is entered into
  as of the ____ day of ____________ , 200__ (the "Date of Grant"). 

 BETWEEN: 

XTEN NETWORKS, INC. (the "Company"),
  who has a business address at 8th Floor, 100 West Pender Street, British Columbia,
  Canada, V6B 1R8 

 AND: 

u___________________________________,
  whose address is 

  __________________________________________ (the "Optionee"). 

 RECITALS 

 WHEREAS: 

 A.                        The
  Optionee is an employee of the Company’s subsidiary, Xten Networks R&D
  Inc.; 

 B.                        The
  Board of Directors of the Company (the “Board”) has approved and
  adopted the 2005 Stock Option Plan (the “Plan”), pursuant to which
  the Board is authorized to grant to employees and other selected persons stock
  options to purchase common shares of the Company; and 

 C.                        The
  Board has authorized the grant to the Optionee of stock options to purchase
  a total of ____________________ common shares of the Company. 

 NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration
  of other good and valuable consideration and the sum of One ($1.00) Dollar
  now paid by the Optionee to the Company (the 

 2 

 receipt and sufficiency whereof is hereby acknowledged), it
  is hereby agreed by and between the parties as follows:

 1.1                      
   In this Agreement, the following terms shall have the following meanings:

	 	 (a)      	 "Common Stock" means the shares of common
        stock of the Company; 

	 
	 	 (b)      	 "Exercise Payment" means the amount of money
        equal to the Exercise Price multiplied by the number of Optioned Shares
        specified in the Notice of Exercise; 

	 
	 	 (c)      	 "Exercise Price" means $_____ ; 

	 
	 	 (d)      	 "Expiry Date" means ___________________ .
      

	 
	 	 (e)      	 "Notice of Exercise" means a notice in writing
        addressed to the Company at its address first recited (or such other address
        of the Company as may from time to time be notified to the Optionee in
        writing), substantially in the form attached as Exhibit "A" hereto, which
        notice shall specify therein the number of Optioned Shares in respect
        of which the Options are being exercised; 

	 
	 	 (f)      	 "Options" means the irrevocable right and
        option to purchase, from time to time, all, or any part of the Optioned
        Shares granted to the Optionee by the Company pursuant to Section 1.3
        of this Agreement; 

	 
	 	 (g)      	 "Optioned Shares" means the shares of Common
        Stock, subject to the Options; 

	 
	 	 (h)      	 "Securities" means, collectively, the Options
        and the Optioned Shares; 

	 
	 	 (i)      	 "Shareholders" means holders of record of
        the shares of Common Stock; 

	 
	 	 (j)      	 "U.S. Person" shall have the meaning ascribed
        thereto in Regulation S under the 1933 Act, and for the purpose of the
        Agreement includes any person in the United States; and 

	 
	 	 (k)      	 "Vested Options" means the Options that have
        vested in accordance with Section 1.4 of this Agreement. 

 1.2                       
  Capitalized terms not otherwise defined herein shall have the meanings
  ascribed thereto in the Plan. 

 1.3                       
  The Company agrees to offer to the Optionee the option to purchase, upon
  the terms and conditions set forth herein and in the Plan, Options to purchase
  a total of ______________________ ( ___________ ) Optioned Shares at the Exercise
  Price. The Company and the Optionee have agreed that the grant of the Options
  pursuant to this Agreement will satisfy the Company’s obligation to grant
  stock options as set out in the Offer and the Optionee agrees to release the
  Company with respect to any claim with respect to the Company’s obligation
  to grant stock options as set out in the Offer. 

 1.4                      
   The Options may be exercised after vesting and only in accordance with
  the following schedule: 

(a)        
  on the first anniversary of the Date of Grant, the Options shall vest with respect
  to one-fourth (25%) of the Options; and 

 3 

(b)        
  commencing on the date which is thirteen (13) months after the Date of Grant,
  the Options shall vest with respect to one-thirty-sixth (1/36) of the remaining
  three-fourths (75%) of the Options every month until the Options are fully vested.

 1.5                      
   The Options shall, at 5:00 p.m. (Vancouver time) on the Expiry Date,
  forthwith expire and be of no further force or effect whatsoever. 

 1.6                       
  Vested Options shall terminate, to the extent not previously exercised,
  upon the occurrence of the first of the following events: 

(a)         Five
  (5) years from the Date of Grant. 

(b)         The
  date of an Optionee's termination of employment or contractual relationship
  with the Company or any Related Corporation (as defined in the Plan) for cause
  (as determined in the sole discretion of the Plan Administrator, acting reasonably)
  or the date of resignation by an Optionee from the Optionee’s employment
  or contractual relationship with the Company or any Related Company. 

(c)        
  The expiration of one (1) year from the date of the death of the Optionee, or
  the expiration of one (1) year from termination of an Optionee's employment
  or contractual relationship by reason of Disability (as defined in Section 5(g)
  of the Plan). 

(d)        
  The expiration of three (3) months from the date of an Optionee's termination
  of employment or contractual relationship with the Company or any Related Corporation
  for any reason whatsoever other than cause, death or Disability. 

 Each unvested Option granted pursuant hereto shall terminate
  immediately upon termination of or resignation from the Optionee's employment
  or contractual relationship with the Company for any reason whatsoever, including
  Disability, unless vesting is accelerated in accordance with Section 5.1(f)
  of the Plan. 

 1.7                      
   Subject to compliance with any applicable securities laws, the Options
  shall be exercisable, in full or in part, at any time after vesting, until termination;
  provided, however, that any Optionee who is subject to the reporting
  and liability provisions of Section 16 of the Securities Exchange Act
  of 1934 with respect to the Common Stock shall be precluded from selling, transferring
  or otherwise disposing of any Common Stock underlying any Options during the
  six (6) months immediately following the grant of that Option. If less than
  all of the shares included in the vested portion of any Options are purchased,
  the remainder may be purchased at any subsequent time prior to the Expiry Date.
  No portion of any Options for less than fifty (50) shares (as adjusted pursuant
  to Section 5.1(m) of the Plan) may be exercised; provided, that if the vested
  portion of any Options is less than fifty (50) shares, it may be exercised with
  respect to all shares for which it is vested. Only whole shares may be issued
  pursuant to the exercise of any Options, and to the extent that any Options
  covers less than one (1) share, it is unexercisable. 

 Each exercise of the Options shall be by means of delivery
  of a Notice of Exercise (which may be in the form attached hereto as Exhibit
  A) to the Secretary of the Company at its principal executive office, specifying
  the number of shares of Common Stock to be purchased and accompanied by payment
  in cash by certified check or cashier's check in the amount of the full exercise
  price for the Common Stock to be purchased. In addition to payment in cash by
  certified check or cashier's check, an Optionee or transferee of the Options
  may pay for all or any portion of the aggregate exercise price by complying
  with one or more of the following alternatives: 

 4 

(a)        
  by delivering a properly executed Notice of Exercise together with irrevocable
  instructions to a broker promptly to sell or margin a sufficient portion of
  the Common Stock and deliver directly to the Company the amount of sale or margin
  loan proceeds to pay the exercise price; or

(b)        
  by complying with any other payment mechanism approved by the Plan Administrator
  at the time of exercise. 

 It is a condition precedent to the issuance of Optioned Shares
  that the Optionee execute and/or deliver to the Company all documents and withholding
  taxes required in accordance with Section 5.1 of the Plan. 

 1.8                      
   Nothing in this Agreement shall obligate the Optionee to purchase any
  Optioned Shares except those Optioned Shares in respect of which the Optionee
  shall have exercised the Options in the manner provided in this Agreement. 

 1.9                      
   The terms of the Options are subject to the provisions of the Plan,
  as the same may from time to time be amended, and any inconsistencies between
  this Agreement and the Plan, as the same may be from time to time amended, shall
  be governed by the provisions of the Plan, a copy of which has been delivered
  to the Optionee, and which is available for inspection at the principal offices
  of the Company. 

 2.                      
     Acknowledgements of the Optionee 

2.1                       
  The Optionee acknowledges and agrees that: 

	 	 (a)      	 none of the Options or the Optioned Shares have
        been registered under the 1933 Act or under any state securities or "blue
        sky" laws of any state of the United States, and, unless so registered,
        may not be offered or sold in the United States or, directly or indirectly,
        to U.S. Persons, except in accordance with the provisions of Regulation
        S, pursuant to an effective registration statement under the 1933 Act,
        or pursuant to an exemption from, or in a transaction not subject to,
        the registration requirements of the 1933 Act and in each case only in
        accordance with applicable state securities laws; 

	 
	 	 (b)      	 the Company has not undertaken, and will have no
        obligation, to register any of the Securities under the 1933 Act; 

	 
	 	 (c)      	 the Optionee has received and carefully read this
        Agreement and the public information which has been filed with the Securities
        and Exchange Commission (the "SEC") in compliance or intended compliance
        with applicable securities legislation (collectively, the "Company Information");
      

	 
	 	 (d)      	 the decision to execute this Agreement and acquire
        the Securities hereunder has not been based upon any oral or written representation
        as to fact or otherwise made by or on behalf of the Company, and such
        decision is based entirely upon a review of the Company Information (the
        receipt of which is hereby acknowledged); 

	 
	 	 (e)      	 no securities commission or similar regulatory authority
        has reviewed or passed on the merits of the Securities; 

	 
	 	 (f)      	 there is no government or other insurance covering
        the Securities; 

	 
	 	 (g)      	 there are risks associated with an investment in
        the Securities; 

 5 

	 	 (h)      	 the Company has advised the Optionee that the Company
        is relying on an exemption from the requirements to provide the Optionee
        with a prospectus and to sell the Securities through a person registered
        to sell securities under the Securities Act (British Columbia)
        (the "B.C. Act") and, as a consequence of acquiring the Securities pursuant
        to this exemption, certain protections, rights and remedies provided by
        the B.C. Act, including statutory rights of rescission or damages, will
        not be available to the Optionee; 

	 
	 	 (i)      	 the Optionee has not acquired the Securities as
        a result of, and will not itself engage in, any "directed selling efforts"
        (as defined in Regulation S under the 1933 Act) in the United States in
        respect of the Securities which would include any activities undertaken
        for the purpose of, or that could reasonably be expected to have the effect
        of, conditioning the market in the United States for the resale of the
        Securities; provided, however, that the Optionee may sell or otherwise
        dispose of the Securities pursuant to registration thereof under the 1933
        Act and any applicable state and provincial securities laws or under an
        exemption from such registration requirements; 

	 
	 	 (j)      	 the Optionee and the Optionee's advisor(s) (if applicable)
        have had a reasonable opportunity to ask questions of and receive answers
        from the Company in connection with the distribution of the Securities
        hereunder, and to obtain additional information, to the extent possessed
        or obtainable without unreasonable effort or expense, necessary to verify
        the accuracy of the information about the Company; 

	 
	 	 (k)      	 the books and records of the Company were available
        upon reasonable notice for inspection, subject to certain confidentiality
        restrictions, by the Optionee during reasonable business hours at its
        principal place of business, and all documents, records and books in connection
        with the distribution of the Securities hereunder have been made available
        for inspection by the Optionee, the Optionee's attorney and/or advisor(s)
        (if applicable); 

	 
	 	 (l)      	 the Company is entitled to rely on the representations
        and warranties and the statements and answers of the Optionee contained
        in this Agreement; 

	 
	 	 (m)      	 the Optionee will indemnify and hold harmless the
        Company and, where applicable, its directors, officers, employees, agents,
        advisors and shareholders, from and against any and all loss, liability,
        claim, damage and expense whatsoever (including, but not limited to, any
        and all fees, costs and expenses whatsoever reasonably incurred in investigating,
        preparing or defending against any claim, lawsuit, administrative proceeding
        or investigation whether commenced or threatened) arising out of or based
        upon any representation or warranty of the Optionee contained herein or
        in any document furnished by the Optionee to the Company in connection
        herewith being untrue in any material respect or any breach or failure
        by the Optionee to comply with any covenant or agreement made by the Optionee
        to the Company in connection therewith; 

	 
	 	 (n)      	 none of the Securities are listed on any stock exchange
        or automated dealer quotation system and no representation has been made
        to the Optionee that any of the Securities will become listed on any stock
        exchange or automated dealer quotation system; except that currently certain
        market makers make market in the common shares of the Company on the OTC
        Bulletin Board service of the National Association of Securities Dealers,
        Inc.; 

 6 

	 	 (o)      	 in addition to resale restrictions imposed
        under U.S. securities laws, there are additional restrictions on the Optionee's
        ability to resell the Securities under the B.C. Act and Multilateral Instrument
        45-102 adopted by the British Columbia Securities Commission; 

	 
	 	 (p)      	 the Company will refuse to register any
        transfer of the Securities not made in accordance with the provisions
        of Regulation S, pursuant to an effective registration statement under
        the 1933 Act or pursuant to an available exemption from the registration
        requirements of the 1933 Act and in accordance with applicable state and
        provincial securities laws; 

	 
	 	 (q)      	 the statutory and regulatory basis for
        the exemption claimed for the offer of the Securities, although in technical
        compliance with Regulation S, would not be available if the offering is
        part of a plan or scheme to evade the registration provisions of the 1933
        Act or any applicable state and provincial securities laws; 

	 
	 	 (r)      	 the Optionee has been advised to consult
        the Optionee's own legal, tax and other advisors with respect to the merits
        and risks of an investment in the Securities and with respect to applicable
        resale restrictions, and it is solely responsible (and the Company is
        not in any way responsible) for compliance with: 

	 
	 	 	 (i)     
      
	 any applicable laws of the jurisdiction in which
        the Optionee is resident in connection with the distribution of the Securities
        hereunder, and 

	 
	 	 	 (ii)      
	 applicable resale restrictions; and 

	 
	 	 (s)      	 this Agreement is not enforceable by the
        Optionee unless it has been accepted by the Company. 

 3.                      
     Representations, Warranties and Covenants of the Optionee

 3.1                       
  The Optionee hereby represents and warrants to and covenants with the
  Company (which representations, warranties and covenants shall survive the closing)
  that: 

	 	 (a)      	 the Optionee is an employee of the Company; 

	 
	 	 (b)      	 the Optionee has the legal capacity and competence
        to enter into and execute this Agreement and to take all actions required
        pursuant hereto; 

	 
	 	 (c)      	 the Optionee has received and carefully read this
        Agreement; 

	 
	 	 (d)      	 the Optionee has duly executed and delivered this
        Agreement and it constitutes a valid and binding agreement of the Optionee
        enforceable against the Optionee in accordance with its terms; 

	 
	 	 (e)      	 the Optionee is not acquiring the Securities for
        the account or benefit of, directly or indirectly, any U.S. Person; 

	 
	 	 (f)      	 the Optionee is not a U.S. Person; 

	 
	 	 (g)      	 the Optionee is resident in the jurisdiction set
        out on page 1 of this Agreement; 

 7 

	 	 (h)      	 the acquisition of the Securities by the Optionee
        as contemplated in this Agreement complies with or is exempt from the
        applicable securities legislation of the jurisdiction of residence of
        the Optionee; 

	 
	 	 (i)      	 the Optionee is acquiring the Securities for investment
        only and not with a view to resale or distribution and, in particular,
        it has no intention to distribute either directly or indirectly any of
        the Securities in the United States or to U.S. Persons; 

	 
	 	 (j)      	 the Optionee is outside the United States when receiving
        and executing this Agreement and is acquiring the Securities as principal
        for the Optionee's own account, for investment purposes only, and not
        with a view to, or for, resale, distribution or fractionalisation thereof,
        in whole or in part, and no other person has a direct or indirect beneficial
        interest in such Securities; 

	 
	 	 (k)      	 the Optionee is not an underwriter of, or dealer
        in, the common shares of the Company, nor is the Optionee participating,
        pursuant to a contractual agreement or otherwise, in the distribution
        of the Securities; 

	 
	 	 (l)      	 the Optionee (i) has adequate net worth and means
        of providing for his/her/its current financial needs and possible personal
        contingencies, (ii) has no need for liquidity in this investment, and
        (iii) is able to bear the economic risks of an investment in the Securities
        for an indefinite period of time, and can afford the complete loss of
        such investment; 

	 
	 	 (m)      	 the Optionee is aware that an investment in the
        Company is speculative and involves certain risks, including the possible
        loss of the investment, and the Optionee has carefully read and considered
        the matters set forth under the caption "Risk Factors" appearing in the
        Company's various disclosure documents, filed with the SEC; 

	 
	 	 (n)      	 the Optionee has the requisite knowledge and experience
        in financial and business matters as to be capable of evaluating the merits
        and risks of the investment in the Securities and the Company; 

	 
	 	 (o)      	 the Optionee understands and agrees that the Company
        and others will rely upon the truth and accuracy of the acknowledgements,
        representations and agreements contained in this Agreement, and agrees
        that if any of such acknowledgements, representations and agreements are
        no longer accurate or have been breached, the Optionee shall promptly
        notify the Company; 

	 
	 	 (p)      	 the Optionee acknowledges that the Optionee has
        not acquired the Securities as a result of, and will not itself engage
        in, any "directed selling efforts" (as defined in Regulation S under the
        1933 Act) in the United States in respect of the Securities which would
        include any activities undertaken for the purpose of, or that could reasonably
        be expected to have the effect of, conditioning the market in the United
        States for the resale of the Securities; provided, however, that the Optionee
        may sell or otherwise dispose of the Securities pursuant to registration
        of the Securities pursuant to the 1933 Act and any applicable state and
        provincial securities laws or under an exemption from such registration
        requirements and as otherwise provided herein; 

	 
	 	 (q)      	 the Optionee has made an independent examination
        and investigation of an investment in the Securities and the Company and
        has depended on the advice of its legal and financial 

 8 

	 	 	 advisors and agrees that the Company will
        not be responsible in anyway whatsoever for the Optionee's decision to
        invest in the Securities and the Company; 

	 
	 	 (r)      
	 the Optionee understands and agrees that
        none of the Options or the Optioned Securities have been or will be registered
        under the 1933 Act, or under any state securities or “blue sky”
        laws of any state of the United States, and, unless so registered, may
        not be offered or sold except in accordance with the provisions of Regulation
        S, pursuant to an effective registration statement under the 1933 Act,
        or pursuant to an exemption from, or in a transaction not subject to,
        the registration requirements of the 1933 Act and in each case only in
        accordance with applicable state securities laws; 

	 
	 	 (s)      
	 it understands and agrees that the Company
        will refuse to register any transfer of the Optioned Securities not made
        in accordance with the provisions of Regulation S, pursuant to an effective
        registration statement under the 1933 Act or pursuant to an available
        exemption from, or in a transaction not subject to, the registration requirements
        of the 1933 Act; 

	 
	 	 (t)      
	 the Optionee is not aware of any advertisement
        of any of the Securities and is not acquiring the Securities as a result
        of any form of general solicitation or general advertising including advertisements,
        articles, notices or other communications published in any newspaper,
        magazine or similar media or broadcast over radio or television, or any
        seminar or meeting whose attendees have been invited by general solicitation
        or general advertising; 

	 
	 	 (u)      
	 no person has made to the Optionee any
        written or oral representations: 

	 
	 	 	 (i)     
      
	 that any person will resell or repurchase any of
        the Securities; 

	 
	 	 	 (ii)      
	 that any person will refund the purchase price of
        any of the Securities; or 

	 
	 	 	 (iii)      
	 as to the future price or value of any of the Securities.
      

 4.                      
     Acknowledgement and Waiver 

 4.1                       
  The Optionee has acknowledged that the decision to purchase the Securities
  was solely made on the basis of publicly available information contained in
  the Company Information. The Optionee hereby waives, to the fullest extent permitted
  by law, any rights of withdrawal, rescission or compensation for damages to
  which the Optionee might be entitled in connection with the distribution of
  any of the Securities. 

 5.                      
     Legending of Subject Securities 

 5.1                      
  The Optionee hereby acknowledges that that upon the issuance thereof,
  and until such time as the same is no longer required under the applicable securities
  laws and regulations, the certificates representing any of the Securities will
  bear a legend in substantially the following form: 

  
     THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED
      IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED
      HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT
      OF 1933, AS AMENDED (THE "1933 ACT"). NONE OF THE SECURITIES 

  

 9 

  
     REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933
      ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT
      BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED
      HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION
      S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
      NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH
      CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION,
      HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS
      IN COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND "U.S. PERSON" ARE AS
      DEFINED BY REGULATION S UNDER THE 1933 ACT. 

  

 5.2                     
  The Optionee hereby acknowledges and agrees to the Company making a notation
  on its records or giving instructions to the registrar and transfer agent of
  the Company in order to implement the restrictions on transfer set forth and
  described in this Agreement. 

 6.                   
     Costs 

 6.1                    
   The Optionee acknowledges and agrees that all costs and expenses incurred
  by the Optionee (including any fees and disbursements of any special counsel
  retained by the Optionee) relating to the acquisition of the Securities shall
  be borne by the Optionee. 

 7.                      
   Governing Law 

 7.1                    
   This Agreement is governed by the laws of the Province of British Columbia
  and the federal laws of Canada applicable therein. The Optionee irrevocably
  attorns to the jurisdiction of the courts of the Province of British Columbia.

 8.                      
   Survival 

 8.1                     
  This Agreement, including without limitation the representations, warranties
  and covenants contained herein, shall survive and continue in full force and
  effect and be binding upon the parties hereto notwithstanding the completion
  of the purchase of the shares underlying the Options by the Optionee pursuant
  hereto. 

 9.                      
   Assignment 

 9.1                    
   This Agreement is not transferable or assignable. 

 10.                      Counterparts
  and Electronic Means 

 10.1                     This
  Agreement may be executed in several counterparts, each of which will be deemed
  to be an original and all of which will together constitute one and the same
  instrument. Delivery of an executed copy of this Agreement by electronic facsimile
  transmission or other means of electronic communication capable of producing
  a printed copy will be deemed to be execution and delivery of this Agreement
  as of the date first above written. 

 10 

 11.                     Severability

 11.1                  
  The invalidity or unenforceability of any particular provision of this Agreement
  shall not affect or limit the validity or enforceability of the remaining provisions
  of this Agreement. 

 12.                     Entire
  Agreement 

 12.                     
  Except as expressly provided in this Agreement and in the agreements, instruments
  and other documents contemplated or provided for herein, this Agreement is the
  only agreement between the Optionee and the Company with respect to the Options,
  and this Agreement and the Plan supersede all prior and contemporaneous oral
  and written statements and representations and contain the entire agreement
  between the parties with respect to the Options. 

 13.                     Effectiveness

 13.1                   
  This Agreement shall be deemed to be effective following the delivery by the
  Optionee to the Company of two fully executed copies of this Agreement. 

 IN WITNESS WHEREOF the parties hereto have duly executed
  this Agreement as of the date first above written. 

 XTEN NETWORKS, INC.
  

	By:	 	 
	 	Authorized Signatory 
      	 

	 SIGNED, SEALED and
      DELIVERED by  	 )  	  
	 ______________________________ in
      the  	 )  	  
	 presence of: 
      	 )  	  
	  	 )  	  
	  	 )  	  
	
      Signature  	 )  	  
	  	 )  	
      [print name]  
	
      Print Name  	 )  	  
	  	 )  	  
	
      Address  	 )  	  
	  	 )  	  
	 
    	 )  	  
	  	 )  	  
	
      Occupation  	  	  

 EXHIBIT A

	 TO:  	 Xten Networks Inc.  
	  	 188-4664 Lougheed Highway  
	  	 Burnaby, British Columbia  
	  	 Canada V5C 5T5  

 Notice of Exercise

                          This
  Notice of Election to Exercise shall constitute proper notice pursuant to Section
  5.1(h) of Xten Network, Inc.'s (the "Company") 2005 Stock Option Plan (the "Plan")
  and Section 1.6 of that certain Stock Option Agreement (the "Agreement") dated
  as of ___________________ , between the Company and the undersigned. The undersigned
  hereby elects to exercise Optionee's option to purchase ____________________
  shares of the common stock of the Company at a price of $ ______ per share,
  for aggregate consideration of $ ____________ , on the terms and conditions
  set forth in the Agreement and the Plan. Such aggregate consideration, in the
  form specified in Section 1.6 of the Agreement, accompanies this notice. 

 The Optionee hereby directs the Company to issue, register
  and deliver the certificates representing the shares as follows: 

	 Registration Information: 
      	 	 Delivery Instructions: 
      
	 	 	 
	 	 	 
	 Name to appear on
      certificates  	 	 Name  
	 	 	 
	 	 	 
	 Address  	 	 Address  
	 	 	 
	 	 	 
	  	 	 
	 	 	 
	  	 	 Telephone Number  

DATED at ____________________________________ , the _______
  day of ______________ , _______ . 

	 	 	 
	 	 	(Name
      of Optionee – Please type or print) 
	 	 	 
	 	 	 
	 	 	(Signature
      and, if applicable, Office)
	 	 	 
	 	 	 
	 	 	(Address
      of Optionee)
	 	 	 
	 	 	 
	 	 	(City,
      State, and Zip Code of Optionee) 
	 	 	 
	 	 	 
	 	 	(Fax
      Number)

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