Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Sonic Environmental Solutions Inc. - Exhibit

SONIC ENVIRONMENTAL SOLUTIONS INC. 
(the
“Company”) 

2005 SHARE OPTION PLAN 

Dated for Reference June 1, 2005 

ARTICLE 1 
PURPOSE AND INTERPRETATION 

Purpose 

1.1                     
The purpose of this Plan will be to advance the interests of the Company by
encouraging equity participation in the Company through the acquisition of
Common Shares of the Company. It is the intention of the Company that this Plan
will at all times be in compliance with the rules and policies of the TSX
Venture Exchange (or “TSX Venture”) (the “TSX Venture Policies”) and any
inconsistencies between this Plan and the TSX Venture Policies whether due to
inadvertence or changes in TSX Venture Policies will be resolved in favour of
the latter. 

Definitions 

1.2                      
In this Plan 

Affiliate means a company that
is a parent or subsidiary of the Company, or that is controlled by the same
entity as the Company; 

Associate has the meaning
assigned by the Securities Act; 

Board means the board of
directors of the Company or any committee thereof duly empowered or authorized
to grant options under this Plan; 

Change of Control includes
situations where after giving effect to the contemplated transaction and as a
result of such transaction:

(i)           
any one Person holds a sufficient number of voting shares of the Company or
resulting company to affect materially the control of the Company or resulting
company, or, 

(ii)           any
combination of Persons, acting in concert by virtue of an agreement,
arrangement, commitment or understanding, hold in total a sufficient number of
voting shares of the Company or its successor to affect materially the control
of the Company or its successor,

where such Person or combination of
Persons did not previously hold a sufficient number of voting shares to affect
materially control of the Company or its successor. In the 

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absence of evidence to the contrary,
any Person or combination of Persons acting in concert by virtue of an
agreement, arrangement, commitment or understanding, holding more than 20% of
the voting shares of the Company or its successor is deemed to materially affect
the control of the Company or its successor; 

Common Shares means common
shares without par value in the capital of the Company providing such class is
listed on the TSX Venture; 

Company means the Corporation
named at the top hereof and includes, unless the context otherwise requires, all
of its subsidiaries or affiliates and successors according to law; 

Consultant means a Person or
Consultant Company, other than an Employee, Officer or Director that:

(i)           
provides on an ongoing bona fide basis, consulting, technical, managerial or
like services to the Company or an Affiliate of the Company, other than services
provided in relation to a Distribution; 

(ii)           provides
the services under a written contract between the Company or an Affiliate and
the Person or the Consultant Company; 

(iii)          in
the reasonable opinion of the Company, spends or will spend a significant amount
of time and attention on the business and affairs of the Company or an Affiliate
of the Company; and 

(iv)          has a
relationship with the Company or an Affiliate that enables the Person or
Consultant Company to be knowledgeable about the business and affairs of the
Company; 

Consultant Company means for a
  Person consultant, a company or partnership of which the Person is an employee,
  shareholder or partner;

Directors means the directors of
the Company as may be elected from time to time; 

Discounted Market Price has the
meaning assigned by Policy 1.1 of the TSX Venture Policies; 

Disinterested Shareholder
Approval means approval by a majority of the votes cast by all the Company’s
shareholders at a duly constituted shareholders’ meeting, excluding votes
attached to shares beneficially owned by Service Providers or their Associates;

Distribution has the meaning
assigned by the Securities Act, and generally refers to a distribution of
securities by the Company from treasury; 

Effective Date for an Option
means the date of grant thereof by the Board; 

- 3 - 

Employee means:

(a)           
a Person who is considered an employee under the Income Tax Act (i.e. for whom
income tax, employment insurance and CPP deductions must be made at source);

(b)           
a Person who works full-time for the Company or its subsidiary providing
services normally provided by an employee and who is subject to the same control
and direction by the Company over the details and methods of work as an employee
of the Company, but for whom income tax deductions are not made at source; or

(c)           
a Person who works for the Company or its subsidiary on a continuing and regular
basis for a minimum amount of time per week providing services normally provided
by an employee and who is subject to the same control and direction by the
Company over the details and methods of work as an employee of the Company, but
for whom income tax deductions need not be made at source; 

Exercise Price means the amount
payable per Common Share on the exercise of an Option, as determined in
accordance with the terms hereof;

Expiry Date means the day on
which an Option lapses as specified in the Option Commitment therefor or in
accordance with the terms of this Plan; 

Insider means

(i)           
an insider as defined in the TSX Venture Policies or as defined in securities
legislation applicable to the Company; 

(ii)           an
Associate of any person who is an Insider by virtue of §(i) above; 

Investor Relations Activities
has the meaning assigned by Policy 1.1 of the TSX Venture Policies, and means
generally any activities or communications that can reasonably be seen to be
intended to or be primarily intended to promote the merits or awareness of or
the purchase or sale of securities of the Company; 

Listed Shares means the number
of issued and outstanding shares of the Company that have been accepted for
listing on the TSX Venture, but excluding dilutive securities not yet converted
into Listed Shares; 

Management Company Employee
means a Person employed by another Person or a corporation providing management
services to the Company which are required for the ongoing successful operation
of the business enterprise of the Company, but excluding a corporation or Person
engaged primarily in Investor Relations Activities; 

NEX means a separate board of
TSX Venture for companies previously listed on TSX Venture or the Toronto Stock
Exchange which have failed to maintain compliance with the ongoing financial
listing standards of those markets; 

- 4 - 

Officer means a duly appointed
senior officer of the Company; 

Option means the right to
purchase Common Shares granted hereunder to a Service Provider; 

Option Commitment means the
notice of grant of an Option delivered by the Company hereunder to a Service
Provider and substantially in the form of Schedule A hereto; 

Optioned Shares means Common
Shares that may be issued in the future to a Service Provider upon the exercise
of an Option; 

Optionee means the recipient of
an Option hereunder; 

Outstanding Shares means at the
relevant time, the number of outstanding Common Shares of the Company from time
to time; 

Participant means a Service
Provider that becomes an Optionee; 

Person means a company or an
individual; 

Plan means this Share Option
Plan, the terms of which are set out herein or as may be amended; 

Plan Shares means the total
number of Common Shares which may be reserved for issuance as Optioned Shares
under the Plan as provided in §2.2; 

Regulatory Approval means the
approval of the TSX Venture and any other securities regulatory authority that
may have lawful jurisdiction over the Plan and any Options issued hereunder;

Securities Act means the
Securities Act, R.S.B.C. 1996, c. 418, as amended from time to time; 

Service Provider means a Person
who is a bona fide Director, Officer, Employee, Management Company Employee or
Consultant, and also includes a company, of which 100% of the share capital is
beneficially owned by one or more Person Service Providers; 

Share Compensation Arrangement
means any Option under this Plan but also includes any other stock option, stock
option plan, employee stock purchase plan or any other compensation or incentive
mechanism involving the issuance or potential issuance of Common Shares to a
Service Provider; 

Shareholders Approval means
approval by a majority of the votes cast by eligible shareholders at a duly
constituted shareholders’ meeting; 

TSX Venture means the TSX
Venture Exchange and any successor thereto; and 

TSX Venture Policies means the
rules and policies of the TSX Venture as amended from time to time. 

- 5 - 

Other Words and Phrases 

1.3                      
Words and Phrases used in this Plan but which are not defined in the Plan, but
are defined in the TSX Venture Policies, will have the meaning assigned to them
in the TSX Venture Policies. 

Gender 

1.4                      
Words importing the masculine gender include the feminine or neuter, words in
the singular include the plural, words importing a corporate entity include
individuals, and vice versa. 

ARTICLE 2 
SHARE OPTION PLAN 

Establishment of Share Option Plan 

2.1                      
There is hereby established a Share Option Plan to recognize contributions made
by Service Providers and to create an incentive for their continuing assistance
to the Company and its Affiliates.

Maximum Plan Shares 

2.2                      
The maximum aggregate number of Plan Shares that may be reserved for issuance
under the Plan is 3,593,000 Common Shares, unless this Plan is amended
pursuant to the requirements of the TSX Venture Policies. 

Eligibility 

2.3                      
Options to purchase Common Shares may be granted hereunder to Service Providers
from time to time by the Board. Service Providers that are corporate entities
will be required to undertake in writing not to effect or permit any transfer of
ownership or option of any of its shares, nor issue more of its shares (so as to
indirectly transfer the benefits of an Option), as long as such Option remains
outstanding, unless the written permission of the TSX Venture and the Company is
obtained. 

Options Granted Under the Plan 

2.4                      
All Options granted under the Plan will be evidenced by an Option Commitment in
the form attached as Schedule A, showing the number of Optioned Shares, the term
of the Option, a reference to vesting terms, if any, and the Exercise Price.

2.5                      
Subject to specific variations approved by the Board, all terms and conditions
set out herein will be deemed to be incorporated into and form part of an Option
Commitment made hereunder. 

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Limitations on Issue 

2.6                      
Subject to §2.9, the following restrictions on issuances of Options are
applicable under the Plan: 

(a)           
no Service Provider can be granted an Option if that Option would result in the
total number of Options, together with all other Share Compensation Arrangements
granted to such Service Provider in the previous 12 months, exceeding 5% of the
Listed Shares (unless the Company is classified as a Tier 1 Company by the TSX
Venture and has obtained Disinterested Shareholder Approval under §2.9(a)(iii)
to do so); 

(b)           
no Options can be granted under the Plan if the Company is designated “Inactive”
(as defined in TSX Venture Policies) by the TSX Venture; 

(c)           
the aggregate number of Options granted to Service Providers conducting Investor
Relations Activities in any 12-month period must not exceed 2% of the Listed
Shares, calculated at the time of grant, without the prior consent of TSX
Venture; and 

(d)           
the aggregate number of options granted to any one Consultant in any 12-month
period must not exceed 2% of the Listed Shares, calculated at the time of grant,
without the prior consent of TSX Venture. 

Options Not Exercised 

2.7                      
In the event an Option granted under the Plan expires unexercised or is
terminated by reason of dismissal of the Optionee for cause or is otherwise
lawfully cancelled prior to exercise of the Option, the Optioned Shares that
were issuable thereunder will be returned to the Plan and will be eligible for
re-issue. 

Powers of the Board 

2.8                      
The Board will be responsible for the general administration of the Plan and the
proper execution of its provisions, the interpretation of the Plan and the
determination of all questions arising hereunder. Without limiting the
generality of the foregoing, the Board has the power to 

(a)           
allot Common Shares for issuance in connection with the exercise of Options;

(b)           
grant Options hereunder; 

(c)           
subject to Regulatory Approval, amend, suspend, terminate or discontinue the
Plan, or revoke or alter any action taken in connection therewith, except that
no general amendment or suspension of the Plan will, without the written consent
of all Optionees, alter or impair any Option previously granted under the Plan
unless as a result of a change in TSX Venture Policies or the Company’s tier
classification thereunder; 

(d)           
delegate all or such portion of its powers hereunder as it may determine to one
or more committees of the Board, either indefinitely or for such period of time
as it may specify, and thereafter each such committee may exercise the powers
and discharge the 

- 7 - 

duties of the Board in respect of the
Plan so delegated to the same extent as the Board is hereby authorized so to do;
and 

(e)           
may in its sole discretion amend this Plan (except for previously granted and
outstanding Options) to reduce the benefits that may be granted to Service
Providers (before a particular Option is granted) subject to the other terms
hereof. 

Terms or Amendments Requiring Disinterested Shareholder
Approval 

2.9                      
The Company will be required to obtain Disinterested Shareholder Approval prior
to any of the following actions becoming effective: 

(a)           
the Plan, together with all of the Company’s previously established and
outstanding stock option plans or grants, could result at any time in: 

(i)           
the aggregate number of shares reserved for issuance under stock options granted
to Insiders exceeding 10% of the Listed Shares;

(ii)          
the number of Optioned Shares issued to Insiders within a one-year period
exceeding 10% of the Listed Shares; or,

(iii)          in the
case of a Tier l Company only, the issuance to any one Optionee, within a
12-month period, of a number of shares exceeding 5% of Listed Shares; or 

(b)           
any reduction in the Exercise Price of an Option previously granted to an
Insider. 

ARTICLE 3 
TERMS AND CONDITIONS OF OPTIONS 

Exercise Price 

3.1                      
The Exercise Price of an Option will be set by the Board at the time such Option
is allocated under the Plan, and cannot be less than the Discounted Market
Price. 

Term of Option 

3.2                      
An Option can be exercisable for a maximum of 10 years from the Effective Date
for a Tier 1 Company, or five years from the Effective Date for a Tier 2 or NEX
Company. 

Option Amendment 

3.3                      
Subject to §2.9(b), the Exercise Price of an Option may be amended only if at
least six (6) months have elapsed since the later of the date of commencement of
the term of the Option, the date the Company’s shares commenced trading on the
TSX Venture, or the date of the last amendment of the Exercise Price. 

3.4                      
An Option must be outstanding for at least one year before the Company may
extend its term, subject to the limits contained in §3.2. 

- 8 - 

3.5                      
Any proposed amendment to the terms of an Option must be approved by the TSX
Venture prior to the exercise of such Option. 

Vesting of Options 

3.6                      
Subject to §3.7, vesting of Options is otherwise at the discretion of the Board,
and will generally be subject to: 

(a)           
the Service Provider remaining employed by or continuing to provide services to
the Company or any of its subsidiaries and Affiliates as well as, at the
discretion of the Board, achieving certain milestones which may be defined by
the Board from time to time or receiving a satisfactory performance review by
the Company or its subsidiary or affiliate during the vesting period; or 

(b)           
remaining as a Director of the Company or any of its subsidiaries or Affiliates
during the vesting period. 

3.7                      
If the Company is a Tier 2 Company and the Plan Shares exceed 10% of the Listed
Shares, any Options granted under the Plan will vest in accordance with the
vesting schedule attached as Schedule B and may be exercised only after vesting.

Vesting of Options Granted for Investor Relations Activities

3.8                      
Subject to §3.7, Options granted to Consultants conducting Investor Relations
Activities will vest: 

(a)           
over a period of not less than 12 months as to 25% on the date that is three
months from the date of grant, and a further 25% on each successive date that is
three months from the date of the previous vesting; or 

(b)           
such longer vesting period as the Board may determine. 

Variation of Vesting Periods 

3.9                      
At the time an Option is granted which carries vesting provisions, the Board may
vary such vesting provisions provided in §3.7 and §3.8, subject to Regulatory
Approval. 

Optionee Ceasing to be Director, Employee or Service
Provider 

3.10                     No
Option may be exercised after the Service Provider has left the employ/office or
has been advised his services are no longer required or his service contract has
expired, except as follows: 

(a)           
in the case of the death of an Optionee, any vested Option held by him at the
date of death will become exercisable by the Optionee’s lawful personal
representatives, heirs or executors until the earlier of one year after the date
of death of such Optionee and the date of expiration of the term otherwise
applicable to such Option; 

- 9 - 

(b)           
in the case of a Tier 1 Company, Options granted to any Service Provider must
expire within 90 days after the date the Optionee ceases to be employed with or
provide services to the Company, but only to the extent that such Optionee was
vested in the Option at the date the Optionee ceased to be so employed or to
provide services to the Company;

(c)           
in the case of a Tier 2 or NEX Company, Options granted to a Service Provider
conducting Investor Relations Activities must expire within 30 days of the date
the Optionee ceases to conduct such activities, but only to the extent that such
Optionee was vested in the Option at the date the Optionee ceased to conduct
such activities,

(d)           
in the case of a Tier 2 or NEX Company, Options granted to an Optionee other
than one conducting Investor Relations Activities must expire within 90 days
after the Optionee ceases to be employed with or provide services to the
Company, but only to the extent that such Optionee was vested in the Option at
the date the Optionee ceased to be so employed or to provide services to the
Company; and 

(e)           
in the case of an Optionee being dismissed from employment or service for cause,
such Optionee’s Options, whether or not vested at the date of dismissal will
immediately terminate without right to exercise same. 

Non Assignable 

3.11                    
Subject to §3.10(a), all Options will be exercisable only by the Optionee to
whom they are granted and will not be assignable or transferable. 

Adjustment of the Number of Optioned Shares 

3.12                     The
number of Common Shares subject to an Option will be subject to adjustment in
the events and in the manner following: 

(a)           
in the event of a subdivision of Common Shares as constituted on the date
hereof, at any time while an Option is in effect, into a greater number of
Common Shares, the Company will thereafter deliver at the time of purchase of
Optioned Shares hereunder, in addition to the number of Optioned Shares in
respect of which the right to purchase is then being exercised, such additional
number of Common Shares as result from the subdivision without an Optionee
making any additional payment or giving any other consideration therefor; 

(b)           
in the event of a consolidation of the Common Shares as constituted on the date
hereof, at any time while an Option is in effect, into a lesser number of Common
Shares, the Company will thereafter deliver and an Optionee will accept, at the
time of purchase of Optioned Shares hereunder, in lieu of the number of Optioned
Shares in respect of which the right to purchase is then being exercised, the
lesser number of Common Shares as result from the consolidation; 

(c)           
in the event of any change of the Common Shares as constituted on the date
hereof, at any time while an Option is in effect, the Company will thereafter
deliver at the time of purchase of Optioned Shares hereunder the number of
shares of the appropriate 

- 10 - 

class resulting from the said change as
an Optionee would have been entitled to receive in respect of the number of
Common Shares so purchased had the right to purchase been exercised before such
change; 

(d)           
in the event of a capital reorganization, reclassification or change of
outstanding equity shares (other than a change in the par value thereof) of the
Company, a consolidation, merger or amalgamation of the Company with or into any
other company or a sale of the property of the Company as or substantially as an
entirety at any time while an Option is in effect, an Optionee will thereafter
have the right to purchase and receive, in lieu of the Optioned Shares
immediately theretofore purchasable and receivable upon the exercise of the
Option, the kind and amount of shares and other securities and property
receivable upon such capital reorganization, reclassification, change,
consolidation, merger, amalgamation or sale which the holder of a number of
Common Shares equal to the number of Optioned Shares immediately theretofore
purchasable and receivable upon the exercise of the Option would have received
as a result thereof. The subdivision or consolidation of Common Shares at any
time outstanding (whether with or without par value) will not be deemed to be a
capital reorganization or a reclassification of the capital of the Company for
the purposes of this §3.12(d); 

(e)           
an adjustment will take effect at the time of the event giving rise to the
adjustment, and the adjustments provided for in this Section are cumulative;

(f)           
the Company will not be required to issue fractional shares in satisfaction of
its obligations hereunder. Any fractional interest in a Common Share that would,
except for the provisions of this §3.12(f), be deliverable upon the exercise of
an Option will be cancelled and not be deliverable by the Company; and 

(g)           
if any questions arise at any time with respect to the Exercise Price or number
of Optioned Shares deliverable upon exercise of an Option in any of the events
set out in this §3.12, such questions will be conclusively determined by the
Company’s auditors, or, if they decline to so act, any other firm of Chartered
Accountants, in Vancouver, British Columbia (or in the city of the Company’s
principal executive office) that the Company may designate and who will have
access to all appropriate records and such determination will be binding upon
the Company and all Optionees. 

ARTICLE 4 
COMMITMENT AND EXERCISE PROCEDURES

Option Commitment 

4.1                      
Upon grant of an Option hereunder, an authorized officer of the Company will
deliver to the Optionee an Option Commitment detailing the terms of such Options
and upon such delivery the Optionee will be subject to the Plan and have the
right to purchase the Optioned Shares at the Exercise Price set out therein
subject to the terms and conditions hereof. 

- 11 - 

Manner of Exercise 

4.2                      
An Optionee who wishes to exercise his Option may do so by delivering 

(a)           
a written notice to the Company specifying the number of Optioned Shares being
acquired pursuant to the Option; and 

(b)           
cash or a certified cheque payable to the Company for the aggregate Exercise
Price for the Optioned Shares being acquired. 

Delivery of Certificate and Hold Periods 

4.3                      
As soon as practicable after receipt of the notice of exercise described in §4.2
and payment in full for the Optioned Shares being acquired, the Company will
direct its transfer agent to issue a certificate to the Optionee for the
appropriate number of Optioned Shares. Such certificate issued will bear a
legend stipulating any resale restrictions required under applicable securities
laws. Further, if the Company is a Tier 2 or NEX Company, or the Exercise Price
is set below the then current market price of the Common Shares on the TSX
Venture, the certificate will also bear a legend stipulating that the Optioned
Shares are subject to a four-month TSX Venture hold period commencing the date
of the Option Commitment. 

ARTICLE 5 
GENERAL 

Employment and Services 

5.1                      
Nothing contained in the Plan will confer upon or imply in favour of any
Optionee any right with respect to office, employment or provision of services
with the Company, or interfere in any way with the right of the Company to
lawfully terminate the Optionee’s office, employment or service at any time
pursuant to the arrangements pertaining to same. Participation in the Plan by an
Optionee will be voluntary. 

No Representation or Warranty 

5.2                      
The Company makes no representation or warranty as to the future market value of
Common Shares issued in accordance with the provisions of the Plan or to the
effect of the Income Tax Act (Canada) or any other taxing statute
governing the Options or the Common shares issuable thereunder or the tax
consequences to a Service Provider. Compliance with applicable securities laws
as to the disclosure and resale obligations of each Participant is the
responsibility of such Participant and not the Company. 

Interpretation 

5.3                      
The Plan will be governed and construed in accordance with the laws of the
Province of British Columbia. 

- 12 - 

Amendment of the Plan 

5.4                      
The Board reserves the right, in its absolute discretion, to at any time amend,
modify or terminate the Plan with respect to all Common Shares in respect of
Options which have not yet been granted hereunder. Any amendment to any
provision of the Plan will be subject to any necessary Regulatory Approvals
unless the effect of such amendment is intended to reduce (but not to increase)
the benefits of this Plan to Service Providers. 

SCHEDULE A 

SHARE OPTION PLAN 

OPTION COMMITMENT 

Notice is hereby given that, effective this ________ day of
________________, __________ (the “Effective Date”) SONIC ENVIRONMENTAL
SOLUTIONS INC. (the “Company”) has granted to
_________________________________ (the “Service Provider”) , an Option to
acquire ______________ Common Shares (“Optioned Shares”) up to 5:00 p.m.
Vancouver Time on the ______ day of ______________, ________(the “Expiry Date”)
at a Exercise Price of Cdn$_________ per share. 

At the date of grant of the Option, the Company is classified
as a Tier ____ company under TSX Venture Policies. 

Optioned Shares will vest and may be exercised as follows: 

____________ In accordance with the vesting provisions
set out in Schedule B of the Plan 

or 

____________ As follows:

The grant of the Option evidenced hereby is made subject to the
terms and conditions of the Company’s Share Option Plan, the terms and
conditions of which are hereby incorporated herein. 

To exercise your Option, deliver a written notice specifying
the number of Optioned Shares you wish to acquire, together with cash or a
certified cheque payable to the Company for the aggregate Exercise Price, to the
Company. A certificate for the Optioned Shares so acquired will be issued by the
transfer agent as soon as practicable thereafter and will bear a minimum four
month non-transferability legend from the date of this Option Commitment. [A
Tier 1 Company may grant stock options without a hold period, provided the
exercise price of the options is set at or above the market price of the
Company’s shares rather than below.] 

The Company and the Service Provider represent that the Service
Provider under the terms and conditions of the Plan is a bona fide [EMPLOYEE/
CONSULTANT/MANAGEMENT COMPANY EMPLOYEE]

__________________________________
of the Company, entitled to receive
Options under TSX Venture Exchange Policies. 

The Service Provider also acknowledges and consents to the
collection and use of Personal Information (as defined in the Policies of the
TSX Venture Exchange) by both the Company and the TSX Venture (or the NEX, as
the case may be) as more particularly set out in the Acknowledgement - Personal
Information in use by the TSX Venture (or the NEX, as the case may be) on the
date of this Share Option Plan. 

	SONIC ENVIRONMENTAL SOLUTIONS INC. 	 
	 	 
	 	 
	Authorized Signatory 	 
	 	 
	 	 
	(u SIGNATURE OF
      OPTIONEE) 	 

SCHEDULE B 

SHARE OPTION PLAN 

VESTING SCHEDULE 

	1. 	
      Options granted pursuant to the Plan to Directors,
      Officers and all Employees and Consultants employed or retained by the
      Company for a period of more than six months at the time the Option is
      granted will vest as follows:

	 	 	 
		(a) 	
      1/3 of the total number of Options granted will vest six
      months after the date of grant;

	 	 	 
		(b) 	
      a further 1/3 of the total number of Options granted will
      vest one year after the date of grant; and

	 	 	 
		(c) 	
      the remaining 1/3 of the total number of Options granted
      will vest eighteen months after the date of grant.

	 	 	 
	2. 	
      Options granted pursuant to the Plan to an Employee or a
      Consultant who has been employed or retained by the Company for a period
      of less than six months at the time the Option is granted will vest as
      follows:

	 	 	 
		(a) 	
      1/3 of the total number of Options granted will vest one
      year after the date of grant;

	 	 	 
		(b) 	
      a further 1/3 of the total number of Options granted will
      vest eighteen months after the date of grant; and

	 	 	 
		(c) 	
      the remaining 1/3 of the total number of Options granted
      will vest two years after the date of grant.

	 	 	 
	3. 	
      Options granted to Consultants retained by the Company
      pursuant to a short term contract or for a specific project with a finite
      term, will be subject to such vesting provisions determined by the Board
      of Directors of the Company at the time the Option Commitment is made,
      subject to Regulatory Approval.

	 	 	 
	4. 	
      Options granted to Service Providers involved in Investor
      Relations Activities shall vest in accordance with Section 3.80 of the
      Plan.Filed by Automated Filing Services Inc. (604) 609-0244 - Sonic Environmental Solutions Inc. - Exhibit

 

EXECUTIVE EMPLOYMENT AGREEMENT 

THIS AGREEMENT made as of this the 21st day
of December, 2005. 

BETWEEN: 

  
    
      
        Mr. Alan Cash, an environmental treatment and
          management professional located at 5033 Seachase Street, San Diego,
          California, 92130. 

        (hereinafter referred to as the “Executive ”)
        

      

    

  

AND: 

  
    
      
        Sonic Environmental Solutions (USA), Inc., a
          company incorporated under the laws of California

        (hereinafter referred to as the “Employer”)
        

      

    

  

WHEREAS: 

	(A) 	
      The Employer and its parent company Sonic Environmental
      Solutions Inc. (“Sonic”) are engaged in the business of developing and
      marketing environmental and sonoprocess technology and services;
  and

	 	 
	(B) 	
      The Executive is experienced and knowledgeable in
      providing and marketing environmental treatment and management services;
      and

	 	 
	(C) 	
      The Employer and the Executive have mutually agreed that
      the Executive shall be employed under the terms of this
  Agreement;

NOW THEREFORE, in consideration of the mutual promises
and covenants as hereinafter set forth, the parties hereto agree as follows:

1.             
CONTRACT, TERMS AND DUTIES 

1.1          
Contract. The Employer hereby agrees to employ the Executive and the
Executive hereby accepts and undertakes to be employed by the Employer upon and
subject to the terms and conditions of this Agreement. 

1.2          
Term. The term for the provision of services by the Executive to the
Employer will be for a five year period commencing on December 21, 2005 (the
“Term”).

1.3          
Title. The Executive will be employed as President of the Employer.

	Sonic 	Executive 
	 	 

	Page 1 of 8 	September 7th ,
      2005 

1.4          
Reporting. The Executive will report directly to the board of directors of
the Employer (the “Board”) and will ensure that all relevant matters to the
Employer or Sonic that are known or become known by the Executive are brought to
the attention of the Board forthwith. 

1.5          
General Duties. The Executive will provide such executive management
services as may be required by the Employer or Sonic as part of the executive
management team of the Employer consistent with services customarily performed
by a corporate division president, focussing in particular on directing the
marketing and commercialization of ash and soil treatment remediation processes
and other applications. The Executive will also assist in directing the
corporate operations of the Employer and Sonic. Executive will be based in San
Diego, but acknowledges that, in the course of performing his duties as
specified above, his position will involve significant travel. 

1.6          
General Diligence. During the Term of this Agreement, the Executive
will devote himself full-time to his employment duties and will: 

	 	(a) 	
      diligently provide and perform the services arising under
      this Agreement; and

	 	 	 
	 	(b) 	
      provide the services at the specific times and days as
      reasonably directed by the Employer, Sonic or the Board, excepting
      holidays, absence due to sickness and other authorized absences as set out
      in this Agreement.

1.7          
General Representation and Consent. The Executive represents to the
Employer that this Agreement does not conflict with any agreement to which the
Executive is subject. The Executive is not under any obligation or restriction
due to any former contractor, employer or other person with respect to his
know-how, business and customer contacts and like matters. The Executive will
accurately complete any necessary personal information form required by a stock
exchange or other regulatory authority, and consents to the Employer and its
agents completing any background or reference checks it deems necessary or
desirable.

2.             
COMPENSATION 

2.1          
Payment. the Employer will pay the Executive an annual salary of
US$120,000 paid semi-monthly in arrears (the “Base Salary”). In addition, the
Executive will be eligible to receive a bonus, to be awarded in the discretion
of the Board.

2.2          
  Annual Vacation. The Executive shall earn 3 weeks (or 15 days) of annual
  paid vacation for each year of employment to be taken at mutually agreeable
  times. Vacation may be taken in advance of earned entitlement. The maximum earned
  unused vacation pay benefits that may be accumulated is 26 days. If the Executive’s
  earned but unused vacation pay reaches this maximum “cap,” he will
  not earn or accrue any additional vacation benefits. Once the Executive then
  uses enough vacation pay to fall below the maximum, he will resume earning vacation
  benefits from that date forward. 

  	Sonic 	Executive 
	 	 

	Page 2 of 8 	September 7th , 2005
      

2.3          
Other Benefits. In addition to other compensation set out in this
Agreement, the Executive will be able to participate in such extended health,
medical, dental, disability insurance or other benefit plans as are established
by the Employer, or in lieu of this, an equivalent amount will be paid monthly
towards private coverage. 

2.4          
Car Allowance. The Executive will be granted US$400 per month towards
the lease of a suitable vehicle to be used primarily for company business. 

2.5          
Expenses. The Employer will provide reasonable expense advances upon
request and will reimburse reasonable out-of-pocket business expenses incurred
by the Executive upon presentation of appropriate vouchers and receipts. 

3.             
EXCLUSIVITY OF SERVICES 

3.1          
Exclusivity. The Executive will devote such time, attention, energies
and best efforts to the Employer as may be reasonably required and will serve at
all times with loyalty, honesty and in the best interests of the Employer, and
will not, without the written consent of the Board, during the Term, engage in
other business activities (whether or not such business activity is pursued for
gain, profit, or other pecuniary advantage) which unreasonably interferes with
the provision of services to Sonic or the Employer by the Executive hereunder.
Executive shall be allowed to pursue hobbies that may have business
applications, including the development of an asphalt mine and a nutritional
additive, so long as he complies with the foregoing obligation and does not
conduct such activities during regular business hours. 

4.             
TERMINATION 

4.1          
  Termination by the Employer for Cause. The Board may, at any time,
  without advance notice to the Executive , or payment of any compensation in
  lieu of notice, forthwith terminate the services of the Executive for cause.
  The term “cause” means (i) a wilful or persistent breach of this Agreement
  by the Executive, failure to obey the reasonable and lawful direction of the
  Board or habitual neglect of a material term of employment duties, and such
  failure by the Executive is not cured within thirty days following written notice
  by the Employer; (ii) the existence of factors such as malfeasance or gross
  negligence entitling the Employer to terminate; (iii) material breach of Part
  12 of the Merger Agreement (the “Merger Agreement”) dated September
  26, 2005 among, inter alia, Employer, Sonic and the Executive; (iv) an act of
  dishonesty, fraud, misrepresentation or other act of moral turpitude that either
  resulted or was intended to result in personal gain or enrichment to Executive
  at the expense of Employer or Sonic, or which has or will prevent the effective
  performance of his duties; (v) the Executive is guilty of, or pleads guilty
  or “no contest” to a felony; or (vi) the Executive commits conduct,
  including with respect to non-company matters, which materially adversely affects
  the Employer’s or Sonic’s business, reputation, character, or standing,
  to the extent consistent with law. 

  	Sonic 	Executive 
	 	 

	Page 3 of 8 	September 7th , 2005
      

4.2          
Termination by Executive for Good Reason. Executive’s employment
pursuant to this Agreement shall be deemed terminated by the Executive for “Good
Reason” if the Executive voluntarily terminates his employment as a result of
any of the following: 

	 	(a) 	
      without the Executive’s prior written consent, a
      reduction in the then-current Base Salary;

	 	 	 
	 	(b) 	
      without the Executive’s prior written consent, a
      relocation of the Executive’s place of employment from San Diego County,
      California;

	 	 	 
	 	(c) 	
      resignation as a result of unlawful discrimination, as
      evidenced by a final court order; or

	 	 	 
	 	(d) 	
      the Employer’s material breach of any provision of this
      Agreement that Employer fails to cure within 30 days following notice of
      non-compliance.

4.3          
Termination by the Employer without cause. The Board may at any time, upon
two (2) months advance notice to the Executive, forthwith terminate the services
of the Executive other than for cause.

4.4          
Effect on Merger Agreement. Termination of the Executive without cause by
the Board shall not relieve Sonic of any of its obligations under the Merger
Agreement. 

4.5          
Payments Upon Termination. If, during the Term, the Board terminates the
Executive without cause or the Executive resigns for Good Reason, the Executive
shall be entitled to the following compensation: (i) the portion of the
then-current Base Salary which has accrued through the effective date of
termination, (ii) any payments for unused vacation and reimbursement expenses,
which are due, accrued or payable at the effective date of Executive’s
termination including any notice period, and (iii) if termination occurs within
the first thirty-four months of this Agreement, a severance payment in an amount
equal to the cumulative amount of the then-current Base Salary that would have
been paid to the Executive had he remained employed by the Employer for
thirty-six months, and if terminated thereafter, an amount equal to two months’
salary, such amount to also constitute payment in lieu of any notice period to
which Executive would otherwise be entitled. All severance payments required to
be made by the Employer to the Executive pursuant to this Section shall be paid
on a regular payroll date in accordance with Company’s normal payroll procedures
and policies. If the Company terminates the Executive’s employment for cause or
pursuant to Section 4.1, or if the Executive resigns without Good Reason,
then the Executive shall be entitled only to the compensation set forth in
clauses (i) and (ii) above.

4.6          
  Resignation. On termination hereof, the Executive shall resign from any
  office or directorship of the Employer, Sonic or any affiliate forthwith. 

  	Sonic 	Executive 
	 	 

	Page 4 of 8 	September 7th , 2005
      

5.             
CONFIDENTIAL INFORMATION AND WORK PRODUCT 

5.1          
  Confidentiality. The Executive will not, during the Term or at any
  time after the termination of Executive’s services by the Board, use for
  himself or others, divulge or convey to others, or aid or abet others to divulge
  or convey to others, any information, knowledge, data or property relating to
  the business of the Employer or Sonic, or any of their affiliates, including
  information relating to employees, customers or suppliers, and intellectual
  property in any way obtained by him during his association with the Employer
  or Sonic or in any way obtained by other employees of the Employer or Sonic,
  unless (i) such information, knowledge, data or property is properly in the
  public domain other than through a breach of this Agreement; (ii) the Executive
  has received prior authorization by the Board and Sonic or such use divulgence
  or conveyance is reasonably necessary in the course of Executive’s duties;
  or (iii) required by law. 

  	Sonic 	Executive 
	 	 

	Page 5 of 8 	September 7th , 2005
      

5.2          
Work Product. Except as expressly provided herein, all intellectual property
and work product conceived or developed by the Executive related to all
environmental technologies and sonic energy technology and related products,
processes and services (collectively, "Core Business"), such other business
areas as Sonic or Employer may become engaged after the date hereof and
inventions that Executive develops or conceives of as a consequence of
performing work for the Employer (together with the Core Business, the
"Business") enures to the Employer and Sonic absolutely unless specifically
agreed otherwise in advance. For greater certainty, this agreement shall not
apply to any invention that the Executive develops or developed, unless (1) the
invention relates to the Core Business or was developed or conceived by the
Executive as a consequence of performance of his duties; or (2) the invention
relates to part of the Business other than the Core Business and at the time of
conception or reduction to practice of that invention the subject matter of the
invention formed part of the Business. Executive will also be entitled to
exclude from the application of this Section any invention developed prior to
the date of this Agreement (although such inventions may be assigned pursuant to
the provisions of the Merger Agreement) and any invention that Executive
develops during the term of this Agreement with the knowledge of Employer and in
which Employer provides its written confirmation that Employer will have no
interest in the invention. Executive will notify the Board prior to applying for
or obtaining registration of any intellectual property that does not enure to
the benefit of the Employer. For the avoidance of doubt, Employer acknowledges
that the mere presence of intellectual property or work product at Employer's
workplace and limited consequential work on an invention by Executive would not
necessarily constitute an invention that has been developed or conceived as a
consequence of performing work for the Employer while the Executive acknowledges
that development by the Executive of intellectual property or work product that
does not enure to the benefit of the Employer or Sonic on the Employer's time
and using Employer's equipment, supplies, facilities or trade secret information
is prohibited and may constitute a breach of this Agreement. Nevertheless, the
parties acknowledge that any such intellectual property or work product will not
enure to the benefit of the Employer, unless such intellectual property or work
product relate to the Business. The Executive further agrees to execute without
delay or request for further consideration any necessary patent assignments,
conveyance or other documents and assurances as may be necessary to transfer all
rights to intellectual property enuring to the Employer or Sonic to same. In the
event of the termination of the Executive for any reason hereunder, the
Executive shall promptly turn over to Sonic all of the foregoing intellectual
property and work product which is evidenced by any physical documentation
(whether written, digital, magnetic, electronic or otherwise) or any other of
Sonic's assets or property in his possession or under his control. The Executive
acknowledges that this provision shall constitute sufficient and appropriate
written notification that this Agreement does not apply to an invention that
qualifies fully under the provisions of Labor Code section 2870. 

6.             
SURVIVAL OF COVENANTS 

6.1          
  Except as otherwise specifically provided herein and notwithstanding the termination
  of the services of the Executive or termination of this Agreement, the covenants,
  representations and warranties contained in Section 1.7 hereof will survive
  such termination and will continue in force and effect for the benefit of Employer
  for a time period unlimited in duration. 

  	Sonic 	Executive 
	 	 

	Page 6 of 8 	September 7th , 2005
      

7.             
ENTIRE AGREEMENT 

7.1          
This Agreement, the Merger Agreement and the agreement and documents
contemplated in the Merger Agreement, constitute the entire agreement between
the parties pertaining to the subject matter of this Agreement and supersede all
prior agreements, understandings, negotiations and discussions, whether oral or
written of the parties and there are no warranties, representations or other
agreements between the parties in connection with the subject matter of this
Agreement except as specifically set forth in this Agreement. 

8.             
SUCCESSORS AND ASSIGNS 

8.1          
This Agreement will enure to the benefit of, and be binding upon, the
parties hereto and their legal representatives, successors and permitted assigns
except that no claims may be asserted by the legal representatives, successors
and assignees of the Executive in respect of compensation or other benefits for
periods following the death or total incapacity of the Executive other than
those provided for in this Agreement. 

9.             
NOTICES 

9.1          
Any notice required or permitted to be given under this Agreement will
be deemed to have been duly given only if such notice is in writing and is
delivered. 

10.          
GOVERNING LAW 

10.1        
This Agreement will be governed exclusively by and construed and enforced in
accordance with the laws prevailing in the state of California, and the rights
and remedies of the parties will be determined in accordance with those laws.

11.          
SEVERABILITY 

11.1         If
  any provision of this Agreement is at any time unenforceable or invalid for
  any reason it will be severable from the remainder of this Agreement and, in
  its application at that time, this Agreement will be construed as though such
  provision was not contained herein and the remainder will continue in full force
  and effect and be construed as if this Agreement had been executed without the
  invalid or unenforceable provision. 

  	Sonic 	Executive 
	 	 

	Page 7 of 8 	September 7th , 2005
      

12.          
INDEPENDENT LEGAL ADVICE 

12.1        
The parties hereto acknowledge that they each received, or waived their right to
receive, independent legal advice in relation to the terms and conditions of
this Agreement. 

IN WITNESS WHEREOF the parties hereto have duly executed
and delivered this Agreement as of the day and year first above written.

For the Employer 

SONIC ENVIRONMENTAL SOLUTIONS (USA), INC. 

 

	Per: 	“Ed Farrauto” 	 
	  	Ed Farrauto 	 

 

For the Executive 

 

	Per: 	“Alan Cash” 	 
	  	Mr. Alan Cash 	 

 

  	Sonic 	Executive 
	 	 

	Page 8 of 8 	September 7th , 2005

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