Document:

AMERICAN
        AXLE & MANUFACTURING, INC.

      SUPPLEMENTAL
        EXECUTIVE RETIREMENT PROGRAM

      

      

      AMENDED
        AND RESTATED PLAN DOCUMENT

      EFFECTIVE
        JANUARY 1, 2007

      

      TABLE
        OF CONTENTS

      

      

      Page

      

      ARTICLE
        I INTRODUCTION

      1.1 Purpose
        of Plan

      1.2 Purpose
        of Amendment

      1.3 Top
        Hat
        Pension Benefit Plan

      1.4 Funding

      1.5 Effective
        Date

      

      ARTICLE
        II DEFINITIONS

      2.1 Actuarial
        Equivalent Value.

      2.2 Average
        Monthly Base Salary

      2.3 Average
        Monthly Incentive Compensation

      2.4 Average
        Total Direct Compensation

      2.5 Base
        Salary

      2.6 Board
        of
        Directors

      2.7 Cash
        Balance Plan

      2.8 Code

      2.9 Compensation
        Committee

      2.10 Corporation

      2.11 Credited
        Service

      2.12 Disability
        or Disabled

      2.13 Employee

      2.14 Final
        Average Compensation

      2.15 Frozen
        Benefit

      2.16 Grandfathered
        Participant

      2.17 Health
        Care Program

      2.18 Joint
        and
        Survivor Annuity

      2.19 Management
        Benefits Committee

      2.20 Non-Grandfathered
        Participant

      2.21 Participant

      2.22 Salaried
        Savings Plan

      2.23 Salaried
        Retirement Plan

      2.24 Specified
        Employee

      2.25 Spouse

      

      ARTICLE
        III PARTICIPATION
        AND ELIGIBILITY

      3.1 Participation

      3.2 Eligibility
        for Retirement Benefits.

      3.3 Eligibility
        for Pre-Retirement Surviving Spouse Benefits

      3.4 Determination
        of Eligibility

      

      

      ARTICLE
        IV BENEFITS

      4.1 Current
        Benefit Formula

      4.2 Prior
        Benefit Formula.

      4.3 Time
        and
        Form of Payment of Benefits

      4.4 Pre-Retirement
        Surviving Spouse Benefit

      

      ARTICLE
        V ADMINISTRATION

      5.1 Management
        Benefits Committee

      5.2 Administrator

      5.3 Compensation

      5.4 Agent
        for
        Service of Process

      5.5 Indemnification

      

      ARTICLE
        VI CLAIMS
        PROCEDURE

      6.1 Filing
        of
        Claim

      6.2 Denial
        of
        Claim

      6.3 Appeal.

      6.4 Review
        of
        Appeal

      6.5 Decision
        on Appeal

      

      ARTICLE
        VII MISCELLANEOUS

      7.1 No
        Contract of Employment

      7.2 Non-Assignability
        of Benefits

      7.3 Withholding

      7.4 Amendment
        and Termination

      7.5 No
        Fiduciary Relationship Created

      7.6 Unsecured
        General Creditor Status of Employee

      7.7 Severability

      7.8 Governing
        Laws

      7.9 Binding
        Effect

      7.10 Number
        and Gender

      7.11 Headings

      7.12 Entire
        Agreement

      

      
        
          
            i

            

          

          
          

        

        
          1

          
            

          

        

        
          
          

          
          

        

      

      ARTICLE
        I

      INTRODUCTION

      

      

      American
        Axle & Manufacturing, Inc. (the "Corporation") previously adopted and
        maintains the AMERICAN AXLE & MANUFACTURING, INC. SUPPLEMENTAL EXECUTIVE
        RETIREMENT PROGRAM (the "Plan") for the purpose of providing supplemental
        retirement benefits to employees who are eligible under the terms and conditions
        of this Plan. The Plan is hereby amended and restated, effective January
        1,
        2007, as follows.

      

      
        	1.1     	
                Purpose
                  of Plan.

              

      

      

      The
        purpose of the Plan is to provide certain eligible employees of the Corporation
        a level of retirement benefits that result in total benefits which are
        competitive with benefits available to retiring executives of other major
        industrial companies. 

      

      
        	1.2   
                	
                Purpose
                  of Amendment.

              

      

       

      
        	   
	
                The
                  purpose of this Amendment is to, (i) freeze accrued benefits under
                  the
                  current Plan formula for all participants other than Grandfathered
                  Participants  as  of  December 31, 2006, and
                  (ii) to institute a new benefit formula for current, Non-Grandfathered,
                  participants and future participants, effective January 1,
                  2007.

              

      

      

      
        	
                1.3

              	
                "Top
                  Hat" Pension Benefit Plan.

              

      

      

      The
        Plan
        is an "employee pension benefit plan" within the meaning of ERISA. However,
        the
        Plan is unfunded and maintained for a select group of management or highly
        compensated employees and, therefore, it is intended that the Plan will be
        exempt from Parts 2, 3 and 4 of Title I of ERISA. The Plan is not intended
        to
        qualify under Code Section 401(a).

      

      
        	
                1.4

              	
                Funding.

              

      

      

      The
        Plan
        is unfunded. All benefits will be paid from the general assets of the
        Corporation, although assets may, but are not required to be placed in a
        grantor
        trust, of which the Corporation is the grantor, within the meaning of subpart
        E,
        Part I, subchapter 1, subtitle A of the Internal Revenue Code of 1986, as
        amended, and shall be construed accordingly. Participants have no ownership,
        either actual or beneficial, in the assets of the trust so the trust shall
        not
        affect the unfunded status of the Plan.

      

      
        	
                1.5

              	
                Effective
                  Date.

              

      

      

      The
        Plan
        is effective March 1, 1994. The amended and restated Plan is effective as
        of
        January 1, 2007.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      ARTICLE
        II

      DEFINITIONS

      

      For
        purposes of the Plan, the following words and phrases shall have the respective
        meanings set forth below, unless their context clearly requires a different
        meaning:

      

      
        	2.1   
	
                Actuarial
                  Equivalent Value.

              

      

      

      “Actuarial
        Equivalent Value” means:

      

      (a) In
        the
        case of a benefit payable pursuant to the Salaried Retirement Plan, a benefit
        of
        equal value when computed on the basis of the GAR Unisex mortality table
        and     
        interest rate assumption of 7.25%.

      

      (b) In
        the
        case of a benefit payable pursuant to the Cash Balance Plan, the hypothetical
        value of the Participant’s Cash Balance Account; and

      

      (c) In
        the
        case of a Frozen Benefit payable to a Non-Grandfathered Participant, pursuant
        to
        this Plan, a benefit of equal value when computed on the basis of GAR Unisex
        table and
        interest rate assumption of 7.25%.

      

      

      
        	
                2.2

              	
                Average
                  Monthly Base Salary.

              

      

      

      "Average
        Monthly Base Salary" means the monthly average of the Employee's Base Salary
        for
        the highest 60 of the 120 months immediately preceding the earlier of (i)
        his or
        her termination of employment, (ii) transfer to the hourly rolls, or (iii)
        in
        the case of a Non-Grandfathered Participant, December 31, 2006. For purposes
        of
        determining "Average Monthly Base Salary", the following provisions shall
        apply:

      

      
        	 	
                (a)

              	
                For
                  any month for which the Employee received Base Salary at less than
                  his or
                  her full monthly Base Salary rate, his or her full monthly Base
                  Salary
                  rate last received preceding such month shall be used for such
                  month.

              

      

      

      
        	 	
                (b)

              	
                For
                  any month during which an Employee was on the hourly payroll and
                  subsequent to which the Employee commenced service as a salaried
                  Employee,
                  his or her monthly Base Salary rate immediately following the commencement
                  of such service as a salaried Employee shall be used for such month.
                  

              

      

      

      
        	
                2.3

              	
                Average
                  Monthly Incentive
                  Compensation.

              

      

      

      
        	 	
                "Average
                  Monthly Incentive Compensation" means the amount determined by
                  dividing
                  the total of the highest five of the last ten years of bonus awards
                  by the
                  Corporation to an Employee immediately preceding the earlier of
                  (i) his or
                  her termination of employment, (ii) transfer to the hourly rolls,
                  or (iii)
                  in the case of a Non-Grandfathered Participant, December 31, 2006,
                  by 60.
                  The bonus amount is to be based on the total bonus amount on the
                  date of
                  the award, irrespective of whether any portion of such bonus is
                  deferred.
                  Bonus awards related to an Employee's year of retirement are not
                  taken
                  into account. If an Employee does not have five years of awards,
                  then a $0
                  award will be used for each year necessary to make a total of five
                  years.

              

      

      

      
        	2.4     	
                Average
                  Total Direct Compensation.

              

      

      

      "Average
        Total Direct Compensation" means the sum of Average Monthly Base Salary plus
        Average Monthly Incentive Compensation.

      

      
        	
                2.5

              	
                Base
                  Salary.

              

      

      

      "Base
        Salary" means the salary paid by the Corporation for a work week of not more
        than 40 hours, exclusive of any other compensation. 

      

      An
        Employee's Base Salary for purposes of determining benefits paid under this
        Plan
        shall include elective deferrals of Base Salary pursuant to (i) a cash or
        deferred arrangement under Code Section 401(k) as provided under the Salaried
        Savings Plan, (ii) an arrangement under Code Section 125 or 132(f)(4); and
        (iii)
        under the American Axle & Manufacturing Holdings, Inc. Executive Deferred
        Compensation Plan.

      

      
        	2.6   	
                Board
                  of Directors.

              

      

      

      "Board
        of
        Directors" means the Board of Directors of the Corporation.

      

      
        	2.7  
                	
                Cash
                  Balance Plan.

              

      

      

      "Cash
        Balance Plan" means the American Axle & Manufacturing, Inc. and Affiliated
        Corporation Salaried Cash Balance Pension Plan.

      

      
        	
                2.8

              	
                Code.

              

      

      

      "Code"
        means the Internal Revenue Code of 1986, as amended. Reference to a section
        of
        the Code shall include that section and any comparable section or sections
        of
        any future legislation that amends, supplements or supersedes that
        section.

      

      
        	
                2.9

              	
                Compensation
                  Committee.

              

      

      

      "Compensation
        Committee" means the Compensation Committee of the Board of Directors of
        the
        Corporation.

      

      
        	
                2.10

              	
                Corporation.

              

      

      

      "Corporation"
        means American Axle & Manufacturing, Inc.

      

      
        	
                2.11

              	
                Credited
                  Service.

              

      

      

      "Credited
        Service" shall have the same meaning as that term is defined in Section 6.2
        of
        the Salaried Retirement Plan and/or Section 6.1 of the Cash Balance Plan.
        Notwithstanding any provision of the Plan, the Salaried Retirement Plan or
        the
        Cash Balance Plan to the contrary, a Transitioned Employee (as defined in
        Section 1.35 of the Salaried Retirement Plan) shall receive credit for Credited
        Service with General Motors Corporation for purposes of determining such
        an
        Employee's eligibility for benefits under the Plan, but not for purposes
        of the
        amount of an Employee's benefit.

      

      Notwithstanding
        any provision of this Plan to the contrary, no Employee will be credited
        with
        any years of Credited Service for periods following a layoff or leave of
        absence
        which commenced prior to the date such Employee attains age 62.

      

      
        	
                2.12

              	
                Disability
                  or Disabled.

              

      

      

      "Disability"
        or "Disabled". An Employee shall be deemed to be suffering from a Disability
        only if he or she is, by reason of any medically determinable physical or
        mental
        impairment which can be expected to result in death or can be expected to
        last
        for a continuous period of not less than 12 months, receiving income replacement
        benefits for a period of not less than three months under the American Axle
        & Manufacturing, Inc. Disability Plan.

      

      
        	
                2.13

              	
                Employee.

              

      

      

      "Employee"
        means:

      

      
        	 	
                (a)

              	
                General
                  Definition.
                  “Employee” shall mean a regular employee of the Corporation compensated by
                  salary or by commission or partly by salary and partly by commission
                  who
                  is (i) working in the United States, or (ii) a citizen of or domiciled
                  in
                  the United States and who has been or may hereafter be hired in
                  the United
                  States by the Corporation and who is sent out of the United States
                  by the
                  Corporation to work in foreign operations, and whose services,
                  if
                  discontinued, would be discontinued by recalling said employee
                  to the
                  United States and terminating his or her services in the United
                  States and
                  (iii) a nonresident alien receiving income from the Corporation’s United
                  States payroll. 

              

      

      

      
        	 	
                (b)

              	
                Temporary,
                  Part-Time and Flexible Service Employees.
                  The term “Employee” shall not include employees who are classified by the
                  Corporation as (i) Temporary Employees, including per diem employees,
                  (ii)
                  Part-Time Employees, or (iii) Flexible Service
                  Employees.

              

      

      

      
        	 	
                (c)

              	
                Controlled
                  Group Employees.
                  The term “Employee” shall not include employees of affiliated employers;
                  provided, however, that service with any such entity shall, if
                  such an
                  individual later becomes an Employee, be counted under this Plan
                  for
                  eligibility purposes.

              

      

      

      
        	 	
                (d)

              	
                Leased
                  Employees.
                  The term “Employee” shall not include any Leased Employee (within the
                  meaning of Code Section 414(n)) or any individual classified as
                  a Leased
                  Employee by the Corporation. If a Leased Employee later becomes
                  an
                  Employee, service as a Leased Employee shall be counted under this
                  Plan
                  for eligibility purposes.

              

      

      

      
        	 	
                (e)

              	
                Union
                  Employees.
                  The term “Employee” shall not include employees represented by a labor
                  organization who are covered by a collective bargaining agreement
                  so long
                  as retirement benefits are the subject of good faith bargaining
                  and so
                  long as the collective bargaining agreement does not expressly
                  provide for
                  participation in this Plan. 

              

      

      

      
        	 	
                (f)

              	
                Directors.
                  The term “Employee” shall not include members of the Board of Directors of
                  American Axle & Manufacturing, Inc., or of any committee appointed by
                  any such Board of Directors, who are not regular employees of the
                  Corporation.

              

      

      

      
        	 	
                (g)

              	
                Independent
                  Contractors.
                  The term “Employee” shall not include an independent contractor or any
                  individual classified as an independent contractor by the Corporation
                  regardless of any later classification or reclassification of any
                  such
                  individual as a common law employee of the
                  Corporation.

              

      

       

      
        	2.14        	
                Final
                  Average Compensation

              

      

      

      “Final
        Average Compensation” means the annual average of the Employee’s Base Salary,
        plus bonuses, from the Corporation for the five consecutive calendar years
        that
        results in the highest such average for the Participant. If the Employee
        has
        less than 5 full calendar years of employment, only his or her full calendar
        years of employment shall be used to determine the Employee’s Final Average
        Compensation.

      

      
        	2.15        
                	
                Frozen
                  Benefit

              

      

      

      “Frozen
        Benefit” means, in the case of a Non-Grandfathered Participant, his or her
        accrued benefit under this Plan determined as of December 31, 2006.

      

      
        	2.16        
                	
                Grandfathered
                  Participant.

              

      

      

      The
        term
“Grandfathered Participant” means an individual who (i) is actively employed by
        the Corporation on December 31, 2006, (ii) is an active Participant in this
        Plan
        and in the Salaried Retirement Plan on December 31, 2006, and (iii) if he
        or she
        continues in the employ of the Corporation on a full-time basis, will be
        eligible for Early or Normal Retirement under the Salaried Retirement Plan
        on or
        before December 1, 2011.

      

      

      
        	
                2.17

              	
                Health
                  Care Program.

              

      

      

      "Health
        Care Program" means the American Axle & Manufacturing, Inc. Salaried Health
        Care Program.

      

      
        	
                2.18

              	
                Joint
                  and Survivor Annuity.

              

      

      

      "Joint
        and Survivor Annuity" means an immediate annuity which provides a reduced
        benefit for the life of the Employee with a survivor annuity for the life
        of the
        Employee's Spouse equal to 65% of the amount of the annuity which is payable
        during the life of the Employee. Such reduced benefit shall equal the benefit
        otherwise payable to an Employee under Article IV multiplied by 95%, if the
        age
        of the Employee and his or her Spouse is within five years of each other.
        If an
        Employee's Spouse is five or more years younger than the Employee, 95% is
        decreased by 1/2% for each full year over five years that the Spouse is younger
        than the Employee, and if such Spouse is five or more years older than the
        Employee, 95% shall be increased by 1/2%, but not to exceed 100%, for each
        full
        year over five years that the Spouse is older than the Employee.

      

      
        	
                2.19

              	
                Management
                  Benefits Committee.

              

      

      

      "Management
        Benefits Committee" means the committee appointed pursuant to Section
        5.1.

       

      
        	2.20        
                	
                Non-Grandfathered
                  Participant.

              

      

      

      The
        term
“Non-Grandfathered Participant” means any Participant in the Plan who is not a
        Grandfathered Participant.

      

      
        	2.21        
                	
                Participant.

              

      

      

      “Participant”
        means an Employee meeting the requirements of Article III.

      

      
        	2.22        
                	
                Salaried
                  Savings Plan.

              

 

      

      “Salaried
        Savings Plan” means the American Axle and Manufacturing, Inc. Salaried Savings
        Plan.

      

      
        	
                2.23

              	
                Salaried
                  Retirement Plan.

              

      

      

      "Salaried
        Retirement Plan" means the American Axle & Manufacturing, Inc. Retirement
        Program for Salaried Employees.

      

      
        	
                2.24

              	
                Specified
                  Employee.

              

      

      

      "Specified
        Employee" means a key employee as defined in Section 416(i) of the Code without
        regard to paragraph (5) thereof.

      

      
        	
                2.25

              	
                Spouse.

              

      

      

      "Spouse"
        means the legally married husband or wife of an Employee. The legality of
        the
        marriage shall be determined pursuant to the laws of the state in which the
        Employee is domiciled.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      ARTICLE
        III

      PARTICIPATION
        AND ELIGIBILITY

      

      
        	
                3.1

              	
                Participation.

              

      

      

      To
        be
        eligible for a benefit under this Plan as set forth in Article IV, an Employee
        must:

      

      
        	 	
                (1)

              	
                Be
                  Salary Band 16 or above and an active employee of the Corporation
                  or an
                  affiliated entity on his or her date of death, retirement or commencement
                  of his or her Disability.

              

      

      

      
        	 	
                (2)

              	
                Be
                  credited with 10 or more Years of Credited Service;
                  and

              

      

      

      
        	 	
                (3)

              	
                Have
                  attained age 55 at the time of his or her retirement or death or
                  commencement of his or her
                  Disability.

              

      

       

      An
        individual shall not be deemed to be actively employed if he or she is laid
        off
        or on a leave of absence.

      

      
        	3.2           
                	
                Eligibility
                  for Retirement Benefits.

              

      

      

      (a) Non-Grandfathered
        Participant. A
        Non-Grandfathered Participant shall, upon meeting the requirements set forth
        in
        Section 3.1, be eligible for the greater of:

      

      (1) his
        or
        her benefit determined pursuant to Section 4.1; or

       

      (2) his
        or
        her Frozen Basic Benefit determined pursuant to Section 4.2(a); or

       

      (3) if
        the
        Participant shall have attained age 62 at the time of his or her retirement
        or
        death or commencement of his or her Disability, his or her Frozen Alternative
        Benefit determined pursuant to Section 4.2(b).

      

      (b) Grandfathered
        Participant.
        A
        Grandfathered Participant shall (i) not be entitled to a benefit pursuant
        to
        Section 4.1, and (ii) not have his or her Basic or Alternative Benefit pursuant
        to Sections 4.2(a) and (b) frozen. A Grandfathered Participant shall, upon
        meeting the requirements of Section 3.1, be eligible for the greater
        of:

      

      (1) his
        or
        her Basic Benefit determined pursuant to Section 4.2(a);

      

      (2) if
        he or
        she shall have attained age 62 at the time of his or her retirement or death
        or
        commencement of his or her Disability, his or her Alternative
        Benefit     
        determined pursuant to Section 4.2(b); or

      

      (3) if
        he or
        she continues in the employ of the Corporation after December 1, 2011, the
        greater of his or her benefit under, (i) Section 3.2(b)(1) or (2) determined
        as
        of     December
        31, 2011, or (ii) Section 4.1 determined as of his or her termination of
        employment with the Corporation, but with his or her Frozen Benefit
        being determined
        as of December 31, 2011.

      

      
        	
                3.3

              	
                Eligibility
                  for Pre-Retirement Surviving Spouse
                  Benefits.

              

      

      

      The
        Spouse of an Employee who is eligible for a benefit who dies before benefit
        payments begin will be entitled to receive benefit payments in accordance
        with
        Section 4.3.

      

      
        	
                3.4

              	
                Determination
                  of Eligibility.

              

      

      

      The
        Management Benefits Committee shall determine each Employee's eligibility
        for
        benefits under this Plan.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      ARTICLE
        IV

      BENEFITS

      

      
        	4.1          
                	
                Current
                  Benefit Formula.

              

      

      

      In
        the
        case of a Non-Grandfathered Participant retiring on or after December 31,
        2006,
        he or she shall receive a benefit equal to 12.5% of his or her Final Average
        Compensation times the Participant’s years of Credited Service, less the sum
        of:

      

      (a) The
        lump
        sum Actuarial Equivalent Value of his or her benefits payable pursuant
        to:

      

      (1) the
        Salaried Retirement Plan; 

      

      (2) the
        Cash
        Balance Plan;

      

      (3) his
        or
        her Frozen Benefit under this Plan; and

      

         
        (b) the
        Participant’s AAM Retirement Contribution Account established pursuant to
        Section 3.2(b) of the Salaried Savings Plan.

      

      
        	4.2          
                	
                Prior
                  Benefit Formula.

              

      

      

      
        	 	
                (a)

              	
                Amount
                  of Basic Benefit.
                  The Basic Benefit shall, subject to Section 4.2(b), be a monthly
                  benefit
                  equal to 2% of a Participant’s Average Monthly Base Salary multiplied by
                  his or her years of Credited Service, less the sum
                  of:

              

      

      

      
        	 	
                (1)

              	
                All
                  monthly benefits payable to the eligible Employee under the Salaried
                  Retirement Plan and/or the Cash Balance Plan before reduction for
                  any
                  survivor option, plus

              

      

      

      
        	 	
                (2)

              	
                2%
                  of the eligible Employee's monthly age 65 primary Social Security
                  benefit
                  multiplied by his or her years of Credited
                  Service.

              

      

      

      For
        purposes of calculating Basic Benefits, the following shall apply:

      

      
        	 	
                (1)

              	
                The
                  monthly age 65 primary Social Security benefit will be determined
                  and
                  applied to the Basic Benefit formula at death or retirement, regardless
                  of
                  the Employee's age at death or retirement and regardless of the
                  Employee's
                  eligibility for Social Security
                  benefits.

              

      

      

      
        	 	
                (2)

              	
                The
                  monthly age 65 primary Social Security benefit will be determined
                  at death
                  or retirement using the maximum monthly Social Security benefit
                  amount
                  payable at age 65 in the year the Employee retires or dies.
                  

              

      

      

      
        	 	
                (b)

              	
                Rules
                  Applicable to Basic Benefits.

              

      

      

      
        	 	
                (1)

              	
                At
                  age 62 and one month, for those retiring prior to age 62 with a
                  Basic
                  Benefit, the Basic Benefit will be redetermined, taking into account
                  the
                  lower non-contributory basic benefit payable under the Salaried
                  Retirement
                  Plan when Temporary Benefits under the Salaried Retirement Plan
                  are
                  reduced or eliminated.

              

      

      

      
        	 	
                (2)

              	
                The
                  "Special" benefit (Part B Medicare reimbursement) paid under the
                  Health
                  Program will not be taken into account in determining any monthly
                  benefit
                  amount payable under Section
                  4.2(a).

              

      

      

      
        	 	
                (3)

              	
                Post-retirement
                  increases under the Salaried Retirement Plan or the Cash Balance
                  Plan will
                  not reduce any monthly benefit amount payable under this Section
                  4.2(a).

              

      

      

      
        	 	
                (4)

              	
                Any
                  benefits payable under this Section 4.2(b) to a retiree or eligible
                  surviving spouse will be offset by benefits payable under certain
                  other
                  Corporation-provided programs (e.g., Long-Term Disability
                  Benefits).

              

      

      

      
        	 	
                (5)

              	
                The
                  award or denial of a Social Security disability insurance benefit
                  that
                  affects the monthly amount of benefits payable under the Salaried
                  Retirement Plan will be taken into account in determining any monthly
                  benefit amount payable under this Section
                  4.2(a).

              

      

      

      
        	 	
                (c)

              	
                Amount
                  of Alternative Benefit.
                  The Alternative Benefit shall, subject to Section 4.2(d), be a
                  monthly
                  benefit equal to 1.5% of a Participant’s Average Total Direct
                  Compensation, multiplied by his or her years of Credited Service,
                  less the
                  sum of:

              

      

      

      
        	 	
                (1)

              	
                All
                  monthly benefits determined under the terms of the Salaried Retirement
                  Plan and/or the Cash Balance Plan before reduction for any survivor
                  option, plus

              

      

      

      
        	 	
                (2)

              	
                100%
                  of the monthly age 65 primary Social Security benefit,
                  plus

              

      

      

      
        	 	
                (3)

              	
                Any
                  benefits payable under certain other Corporation-provided programs
                  (e.g.,
                  Extended Disability Benefits).

              

      

      

      For
        purposes of calculating Alternative Benefits, the following shall
        apply:

      

      
        	 	
                (1)

              	
                Differing
                  time periods over the last 10 years of employment with the Corporation
                  may
                  be used for the blended calculation of Average Monthly Base Salary
                  and
                  Average Monthly Incentive
                  Compensation.

              

      

      

      
        	 	
                (2)

              	
                The
                  monthly age 65 primary Social Security benefit is the monthly age
                  65
                  primary Social Security benefit payable in the year of the Employee's
                  death or retirement, regardless of the Employee's age at such time
                  and
                  regardless of the Employee's eligibility for Social Security
                  benefits.

              

      

      

      
        	 	
                (3)

              	
                The
                  monthly age 65 primary Social Security benefit will not be redetermined
                  for any subsequent Social Security
                  increase.

              

      

      

      
        	 	
                (d)

              	
                Rules
                  Applicable to Alternative Benefits.

              

      

      

      
        	 	
                (1)

              	
                Post-retirement
                  increases under the Salaried Retirement Plan or the Cash Balance
                  Plan will
                  not reduce any monthly benefit amount payable under Section
                  4.2(c).

              

      

      

      
        	 	
                (2)

              	
                The
                  "Special" Medicare benefit payable under the Health Care Program
                  will not
                  be taken into account in determining any monthly benefit amount
                  payable
                  under Section 4.2(c).

              

      

      

      
        	 	
                (3)

              	
                Benefits
                  payable under Section 4.2(c) are not guaranteed and may be reduced
                  or
                  eliminated at any time, and from time to time, without prior notice
                  by the
                  Compensation Committee, the Management Benefits Committee and the
                  Board of
                  Directors.

              

      

      

      
        	 	
                (4)

              	
                Until
                  age 70, each of the conditions precedent requirements contained
                  in the
                  American Axle & Manufacturing, Inc. Executive Incentive Compensation
                  Program will be applied to the continued eligibility for payment
                  of an
                  Alternative Benefit. Therefore, receipt of Alternative Benefits
                  will cease
                  immediately, effective as of the month immediately following the
                  date of
                  initial violation, upon determination by the Corporation that a
                  retired
                  executive receiving an Alternative Benefit (i) did not refrain
                  from all
                  activity which is competitive with the Corporation, or (ii) acted
                  in a
                  manner inimical or contrary to the best interests of the Corporation.
                  Any
                  Alternative Benefits also may be suspended if the retired executive
                  does
                  not respond to an Annual Questionnaire regarding items (i) and
                  (ii).

              

      

      

      
        	
                4.3

              	
                Time
                  and Form of Payment of
                  Benefits.

              

      

      

      (a)          
        Non-Grandfathered Participants. Payments to Non-Grandfathered
        Participants pursuant to Section 4.1(a) shall commence six months after the
        date
        of the Participant’s separation from service and shall be payable in one lump
        sum payment. If the Participant dies prior to the receipt of all of his or
        her
        benefits pursuant to Section 4.1(a), the Spouse will receive a death benefit
        equal to the amount payable to the Participant. The death benefit shall be
        payable in one lump sum as soon as practicable after the death of the
        Participant. If a Participant is not survived by his Spouse his or her benefits
        will be forfeited. 

      

      (b)    Payment
        of Basic and Alternative Benefits. A
        Participant, whether a Grandfathered or Non-Grandfathered Participant, entitled
        to benefits pursuant to Section 4.2(a) or (c), shall have their benefits
        paid as
        follows:

      

      (1) Commencement
        of Benefits.
        Benefit
        payments shall commence as soon as practicable after an Employee separates
        from
        service with the Corporation; provided,      
        however, that the portion of a Specified Employee's benefit that was not
        vested
        within the meaning of Code Section 409A on December 31, 2004, may not
        be
        made
        before the date which is six months after the date of separation from
        service.

      

      (2) Single
        Life Annuity.
        Except
        as provided in Section 4.3(b)(3), an Employee entitled to a Basic Benefit
        or an
        Alternative Benefit will receive his or her benefit in the form
        of a
        single life annuity for the Employee's lifetime.

      

      (3) Automatic
        Survivor Benefit.
        

      

      (A) Basic
        Benefit.
        An
        Employee entitled to a Basic Benefit or Alternative Benefit who has a Spouse
        who
        is otherwise eligible for survivor benefits under the 
        Salaried
        Retirement Plan or the Cash Balance Plan, will receive his or her benefit
        determined in the form of a Joint and Survivor Annuity.

      

      (B) Alternative
        Benefit.
        An
        Employee who (i) has attained age 62 or such earlier age specified in a special
        separation program, (ii) has been credited with 10   
        or more
        years of Credited Service, and (iii) on the date Alternative Benefits begin,
        has
        a Spouse who is otherwise eligible for survivor benefits under
        the Salaried
        Retirement Plan or the Cash Balance Plan, will receive his or her benefit
        in the
        form of a Joint and Survivor Annuity.

      

      
        	
                4.4

              	
                Pre-Retirement
                  Surviving Spouse Benefit.

              

      

      

      (a) The
        pre-retirement surviving spouse benefit payable pursuant to Section 4.1 to
        an
        eligible Spouse shall be equal to the Participant’s benefit calculated pursuant
        to Section 4.1 and shall be payable in one lump sum payment as soon as
        administratively practicable following the Participant’s death.

      

      (b) Basic
        and
        Alternative Benefits.
        The
        pre-retirement surviving spouse benefit payable to the eligible spouse of
        a
        Grandfathered or Non-Grandfathered participant pursuant to Sections
        4.2(a) or (c) shall equal the amount that the Spouse would have been entitled
        to
        receive under the Joint and Survivor Annuity if the Employee had retired
        with
        an
        immediate Joint and Survivor Annuity on the day before his death. In the
        event
        that an Employee is eligible for both a Basic Benefit and an Alternative
        Benefit
        on his date of
        death,
        the Pre-Retirement Surviving Spouse Benefit will equal the Pre-Retirement
        Surviving Spouse Benefit based on the Employee's Basic Benefit or Alternative
        Benefit, whichever
        is greater.

      

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      ARTICLE
        V

      ADMINISTRATION

      

      
        	
                5.1

              	
                Management
                  Benefits Committee.

              

      

      

      The
        Compensation Committee shall appoint a Management Benefits Committee for
        the
        Plan.

      

      
        	 	
                (a)

              	
                Appointment
                  and Removal of Management Benefits Committee.
                  The Management Benefits Committee shall consist of three or more
                  individuals appointed by, and serving at the discretion of, the
                  Compensation Committee. A member of the Management Benefits Committee
                  may
                  (i) resign upon 30 days written notice to the Compensation Committee,
                  or
                  (ii) be removed from the Management Benefits Committee at any time
                  at the
                  discretion of the Compensation
                  Committee.

              

      

      

      
        	 	
                (b)

              	
                Decisions
                  by Management Benefits Committee.
                  The Management Benefits Committee shall act by majority vote either
                  at a
                  meeting of the Management Benefits Committee or by written consent.
                  Meetings may be attended
                  telephonically.

              

      

      

      
        	 	
                (c)

              	
                Authority.
                  The Management Benefits Committee shall have the following duties
                  and
                  authority under the Plan.

              

      

      

      
        	 	
                (1)

              	
                Compliance.
                  The Management Benefits Committee shall monitor the performance
                  of the
                  Plan to ensure that the Plan is administered in accordance with
                  its terms
                  and in compliance applicable law or
                  regulation.

              

      

      

      
        	 	
                (2)

              	
                Discretionary
                  Authority.
                  The Management Benefits Committee shall have full and exclusive
                  discretionary authority to determine all questions arising in the
                  administration, application and interpretation of the Plan including
                  the
                  authority to correct any defect or reconcile any inconsistency
                  or
                  ambiguity in the Plan and the authority to determine an Employee's
                  or
                  other individual’s eligibility to receive a benefit from the Plan and the
                  amount of that benefit. The Management Benefits Committee shall
                  determine
                  all Claims appeals as set forth in Section 6.5 of this Plan and
                  shall have
                  the authority to determine all questions of fact relating to such
                  an
                  appeal. Any determination by the Management Benefits Committee
                  pursuant to
                  this Section 5.1(c)(2) or the Claims Procedure shall be binding
                  and
                  conclusive on all parties.

              

      

      

      
        	 	
                (3)

              	
                Plan
                  Amendments.
                  The Management Benefits Committee shall have the authority to make
                  such
                  Plan amendments as are administrative in nature so long as such
                  amendments
                  do not have a material adverse financial impact on the Corporation.
                  

              

      

      

      
        	 	
                (4)

              	
                Adoption
                  of Plan.
                  The Management Benefits Committee may provide for the adoption
                  of the Plan
                  by an affiliated employer pursuant to such terms and conditions
                  as the
                  Management Benefits Committee, in its discretion, may determine.
                  The
                  Management Benefits Committee shall have the right to remove an
                  affiliated
                  employer as a Plan sponsor if, in its discretion, it deems such
                  removal to
                  be appropriate. 

              

      

      

      
        	5.2          
                	
                Administrator.
                  

              

      

      

      The
        Corporation shall be the Plan Administrator. The American Axle &
Manufacturing, Inc. Corporate Benefits Group shall act on its behalf and
        perform
        the duties of the Administrator as set forth herein. The Administrator shall
        administer the Plan in accordance with all applicable laws and regulations
        and,
        except as otherwise expressly provided to the contrary herein, shall have
        all
        powers and discretionary authority to carry out that obligation. Specifically,
        but not by way of limitation, the Administrator shall:

      

      
        	 	
                (a)

              	
                Procedures
                  and Forms.
                  Establish such administrative procedures and prepare, or cause
                  to be
                  prepared, such forms, as may be necessary or desirable for the
                  proper
                  administration of the Plan;

              

      

      

      
        	 	
                (b)

              	
                Advisors.
                  Retain the services of such consultants and advisors as may be
                  appropriate
                  to the administration of the Plan;

              

      

      

      
        	 	
                (c)

              	
                Claims.
                  Have the discretionary authority to determine all claims filed
                  pursuant to
                  Section 6.2 of this Plan and shall have the authority to determine
                  issues
                  of fact relating to such claim; 

              

      

      

      
        	 	
                (d)

              	
                Payment
                  of Benefits.
                  Direct, or establish procedures for, the payment of benefits from
                  the
                  Plan; and

              

      

      

      
        	 	
                (e)

              	
                Plan
                  Records.
                  Maintain, or cause to be maintained, all documents and records
                  necessary
                  or appropriate to the maintenance of the
                  Plan.

              

      

      

      
        	5.3          
                	
                Compensation.
                  

              

      

      

      Members
        of the Management Benefits Committee and the Plan Administrator shall serve
        without compensation from the Plan for their services as such.

      

      
        	5.4          
                	
                Agent
                  for Service of Process. 

              

      

      

      The
        Administrator shall be the agent for service of process on the Plan. If the
        Corporation is the Administrator, the agent for service of process on the
        Corporation shall be the agent for service of process on the Plan.

      

      

      
        	5.5          
                	
                Indemnification. 

              

      

      

      The
        Corporation shall indemnify each member of the Compensation Committee, the
        Management Benefits Committee, the Administrator and individuals employed
        by,
        and acting on behalf of, the Plan Administrator from and against any and
        all
        claims, losses, damages, expenses and liability arising from their acts or
        failure to act with regard to the Plan and their duties and obligations as
        set
        forth herein unless such acts or omissions are judicially determined to be
        the
        result of such individual’s gross negligence, willful misconduct or criminal
        act. 

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      ARTICLE
        VI

      CLAIMS
        PROCEDURE

      

      
        	6.1         
                	
                Filing
                  of Claim.

              

      

        
        The Plan Administrator shall provide written notice to any Participant or
        beneficiary who submits a claim for benefits within 90 days (45 days in case
        of
        a disability benefit) of the receipt of the claim, unless special circumstances
        (which, in the case of disability benefits, must be beyond the control of
        the
        Plan) require an extension. The extension shall not exceed 90 days (30 days
        in
        case of a disability benefit) beyond the initial 90-day (or 45-day) period.
        If
        an extension is necessary, the claimant shall receive a notice, before the
        initial 90-day (or 45-day) period expires, which explains why the extension
        is
        necessary and when a decision on the claim is expected. In the case of a
        disability benefit, if, prior to the end of the extended review period, the
        Plan
        Administrator determines that, due to matters outside the control of the
        Plan, a
        decision cannot be rendered within the extension period, the period for making
        a
        determination may be extended for an additional 30 days, provided the Plan
        Administrator notifies the claimant before the expiration of the first extension
        period of the circumstances requiring the extension and the date the Plan
        expects to render a decision. In the case of either the first or second
        extension of the review period, the notice to the claimant must explain the
        standards on which entitlement to the benefit is based, the unresolved issues
        that prevent a decision, and the additional information needed to resolve
        the
        issues. The claimant shall have 45 days within which to provide the specified
        information. 

      

      
        	6.2        
                	
                Denial
                  of Claim.
                  

              

      

      

      The
        Plan
        Administrator shall provide, in a written or electronic notice to all claimants
        who are denied a claim for benefits, the following information written in
        a
        manner calculated to be understood by the claimant:

       

      (a) the
        specific reason or reasons for denial;

      

      (b) specific
        reference to pertinent Plan provisions on which the denial is
        based;

      

      (c) a
        description of any additional material or information necessary for the claimant
        to perfect the claim and an explanation of why such material or information
        is
        necessary; 

      

      (d) an
        explanation of the Plan's claim review procedures and the time limits applicable
        to such procedures including a statement that the claimant is entitled to
        receive, upon request
        and free of charge, reasonable access to and copies of, all documents, records
        and other information relevant to the claimant’s claim for benefits;

      

      (e) a
        statement of the claimant’s right to bring a civil action under ERISA Section
        502(a) following an adverse benefit determination on review; and, if applicable
        in the case of a  disability
        benefit,

      

      (f) the
        specific rule, guideline, protocol or similar criterion (if any) that was
        relied
        on in making the benefit determination, or a statement that the rule, guideline,
        protocol or     
        other similar criterion was relied on and will be provided to the claimant
        free
        of charge upon request;

      

      (g) if
        a
        disability claim, the identity of the medical or vocational experts whose
        advice
        was obtained by the Plan Administrator in the process of deciding the claim,
        regardless

               of
        whether
        the advice was relied upon.

      

      
        	6.3        
                	
                Appeal.
                  

              

      

      

      A
        claimant whose claim has been denied may request a review of the denial by
        the
        Management Benefits Committee by making written application within 90 days
        (180
        days in case of a disability benefit) after the receipt of written notification
        of a denial of a claim. The claimant may submit written comments, documents,
        records and other information relating to the claim for benefits.

      

      
        	6.4        
                	
                Review
                  of Appeal.
                  

              

      

      

      The
        Management Benefits Committee’s decision on review shall take into account all
        comments, documents, records and other information submitted as part of the
        request for review, whether or not submitted as part of the initial benefit
        determination. In the case of a disability benefit, the review of a denied
        claim
        shall be conducted by a reviewer, which is neither the individual who made
        the
        adverse benefit determination nor a subordinate of that individual. The reviewer
        shall not give deference to the original adverse determination, and if the
        claim
        denial was based in whole or in part on a medical judgment, shall consult
        with a
        health care professional who has appropriate training and experience in the
        field of medicine involved in the medical judgment, but who was not consulted
        in
        connection with the original adverse claim determination, or a subordinate
        of
        that individual.

      

      
        	6.5        
                	
                Decision
                  on Appeal.
                  

              

      

      

      The
        decision on review shall be made within 60 days (45 days in case of a disability
        benefit) after the receipt of a request for review, unless special circumstances
        require an extension period. The extension shall not exceed 120 days (90
        days in
        case of a disability benefit) from the request for review. If circumstances
        require an extension, the claimant shall receive a notice before the initial
        60-day (or 45-day) period expires, which explains why the extension is necessary
        and when a decision on review is accepted. The decision on review shall be
        provided in a written or electronic notice, shall be written in a manner
        calculated to be understood by the claimant, and in the event of an adverse
        determination shall include:

      

      (a) the
        specific reason or reasons for the adverse determination;

      

      (b) specific
        references to pertinent Plan provisions on which the denial is
        based;

      

      (c) statement
        that the claimant is entitled to receive, upon request and free of charge,
        reasonable access to and copies of, all documents, records and other information
        relevant to
        the
        claimant’s claim for benefits; 

      

      (d) for
        disability benefits, if an internal rule, guideline, protocol, or other similar
        criterion was relied upon in making the adverse determination, either the
        specific rule, guideline, protocol,
        or other similar criterion or a statement that such rule, guideline, protocol
        or
        other similar criterion was relied upon in making the adverse determination
        and
        that a
        copy
        will be provided free of charge to the claimant upon request; and

      

      (e) a
        statement of the claimant’s right to bring an action under ERISA Section 502(a)
        and for disability claims, the following statement: “You and your Plan may have
        other     
        voluntary alternative dispute resolution options, such as mediation. One
        way to
        find out what may be available is to contact your local U.S. Department of
        Labor
        Office and your
        State insurance regulatory agency.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      ARTICLE
        VII

      MISCELLANEOUS

      

      
        	
                7.1

              	
                No
                  Contract of Employment.

              

      

      

      The
        adoption and maintenance of the Plan shall not be deemed to be a contract
        between the Corporation and any person or to be consideration for the employment
        of any person. Nothing herein contained shall be deemed to give any person
        the
        right to be retained in the employ of the Corporation or to restrict the
        right
        of the Corporation to discharge any person at any time nor shall the Plan
        be
        deemed to give the Corporation the right to require any person to remain
        in the
        employ of the Corporation or to restrict any person's right to terminate
        his or
        her employment at any time.

      

      
        	
                7.2

              	
                Non-Assignability
                  of Benefits.

              

      

      

      No
        Employee or other distributee of benefits under the Plan shall have any power
        or
        right to transfer, assign, anticipate, hypothecate or otherwise encumber
        any
        part or all of the amounts payable hereunder, which are expressly declared
        to be
        unassignable and non-transferable. Any such attempted assignment or transfer
        shall be void. No amount payable hereunder shall, prior to actual payment
        thereof, be subject to seizure by any creditor of any such Participant or
        beneficiary for the payment of any debt judgment or other obligation, by
        a
        proceeding at law or in equity, nor transferable by operation of law in the
        event of the bankruptcy, insolvency or death of such Participant or beneficiary
        hereunder.

      

      
        	
                7.3

              	
                Withholding.

              

      

      

      All
        deferrals and payments provided for hereunder shall be subject to applicable
        withholding and other deductions as shall be required under any applicable
        local, state or federal law.

      

      
        	
                7.4

              	
                Amendment
                  and Termination.

              

      

      

      
        	 	
                (a)

              	
                Board
                  of Directors.
                  The Board of Directors shall have the right to amend, in whole
                  or in part,
                  any or all of the provisions of the Plan or to terminate the Plan
                  at any
                  time and without the consent of any other party or
                  person.

              

      

      

      
        	 	
                (b)

              	
                Management
                  Benefits Committee.
                  The Management Benefits Committee shall have the right, at any
                  time,
                  without the consent of any other party or person, to modify or
                  amend any
                  or all of the provisions of the Plan, but only to the extent provided
                  in
                  Section 5.1(c).

              

      

      

      
        	 	
                (c)

              	
                Limitations.
                  Except as provided in Section 4.1(d)(3), no amendment or termination
                  of
                  this Plan shall impair the rights of an Employee to the extent
                  earned as
                  of the date of amendment or
                  termination.

              

      

      

      
        	
                7.5

              	
                No
                  Fiduciary Relationship
                  Created.

              

      

      

      Nothing
        contained in this Plan, and no action taken pursuant to its provisions by
        any
        party hereto, shall create, nor be construed to create, a fiduciary relationship
        between the Corporation, the Board of Directors, any officers of the
        Corporation, the Compensation Committee, the Management Benefits Committee
        and
        the Employee or any other person.

      

      
        	
                7.6

              	
                Unsecured
                  General Creditor Status of
                  Employee.

              

      

      

      
        	 	
                (a)

              	
                The
                  payments to a Participant, his or her Beneficiary or any other
                  distributee
                  hereunder shall be made from assets which shall continue, for all
                  purposes, to be a part of the general, unrestricted assets of the
                  Corporation; no person shall have nor acquire any interest in any
                  such
                  assets by virtue of the provisions of this
                  Plan.

              

      

      

      
        	 	
                (b)

              	
                The
                  Corporation's obligation hereunder shall be an unfunded and unsecured
                  promise to pay money in the future. To the extent that the Employee
                  or
                  other distributee acquires a right to receive payments from the
                  Corporation under the provisions hereof, such right shall be no
                  greater
                  than the right of any unsecured general creditor of the Corporation;
                  no
                  such person shall have nor require any legal or equitable right,
                  interest
                  or claim in or to any property or assets of the Corporation. 

              

      

      

      
        	
                7.7

              	
                Severability.

              

      

      

      If
        any
        provision of this Plan shall be held illegal or invalid for any reason, said
        illegality or invalidity shall not affect the remaining provisions hereof;
        instead, each provision shall be fully severable and the Plan shall be construed
        and enforced as if said illegal or invalid provision had never been included
        herein.

      

      
        	
                7.8

              	
                Governing
                  Laws.

              

      

      

      All
        provisions of the Plan shall be construed in accordance with the laws of
        Michigan except to the extent preempted by federal law.

      

      
        	
                7.9

              	
                Binding
                  Effect.

              

      

      

      This
        Plan
        shall be binding on each Participant and his or her heirs and legal
        representatives and on the Corporation and its successors and
        assigns.  

      

      
        	
                7.10
                  

              	
                Number
                  and Gender.

              

      

      

      Wherever
        appropriate herein, words used in the singular shall be considered to include
        the plural and words used in the plural shall be considered to include the
        singular. The masculine gender, where appearing in the Plan, shall be deemed
        to
        include the feminine gender.

      

      
        	
                7.11

              	
                Headings.

              

      

      

      The
        headings of Articles and Sections herein are included solely for convenience,
        and if there is any conflict between such headings and the text of the Plan,
        the
        text shall control.

      

      
        	
                7.12

              	
                Entire
                  Agreement.

              

      

      

      This
        document and any amendments contain all the terms and provisions of the Plan
        and
        shall constitute the entire Plan, any other alleged terms or provisions being
        of
        no effect.

      

      

      IN
        WITNESS WHEREOF, the
        Corporation has adopted this amended and restated Plan on the 22nd day of
        December  2006.

      

      

      

      AMERICAN
        AXLE & MANUFACTURING, INC.

      

      

      By: 
        /s/ John E. Jerge

      

      Its: 
        Vice President, Human Resources

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      BH522297v8Filed by Automated Filing Services Inc. (604) 609-0244 - Silverado Gold Mines Ltd. - Exhibit 4.1

EXHIBIT 4.1

SILVERADO GOLD MINES LTD.

2007 STOCK OPTION PLAN

As Adopted January 11, 2007

ARTICLE 1. THE PLAN

1.1 Title 

This plan is entitled the “2007 Stock Option Plan”
  (the "Plan") of Silverado Gold Mines Ltd., a British Columbia corporation (the
  "Company”).

1.2 Purpose

The purpose of the Plan is to enhance the long-term stockholder
  value of the Company by offering opportunities to directors, officers, employees
  and eligible consultants of the Company and any Related Company, as defined
  below, to acquire and maintain stock ownership in the Company in order to give
  these persons the opportunity to participate in the Company's growth and success,
  and to encourage them to remain in the service of the Company or a Related Company.

ARTICLE 2. DEFINITIONS 

The following terms will have the following meanings in the Plan:

"Board" means the Board of Directors of the Company.

"Cause," unless otherwise defined in the instrument
  evidencing the award or in an employment or services agreement between the Company
  or a Related Company and a Participant, means a material breach of the employment
  or services agreement, dishonesty, fraud, misconduct, unauthorized use or disclosure
  of confidential information or trade secrets, or conviction or confession of
  a crime punishable by law (except minor violations), in each case as determined
  by the Plan Administrator, and its determination shall be conclusive and binding.

"Code" means the Internal Revenue Code of 1986, as amended
  from time to time.

"Common Shares" means the common shares, no par value,
  of the Company.

"Consultant Participant" means a Participant who is defined
  as a Consultant Participant in Article 5.

1

"Corporate Transaction," unless otherwise defined in the
  instrument evidencing the Option or in a written employment or services agreement
  between the Company or a Related Company and a Participant, means consummation
  of either: a) a merger or consolidation of the Company with or into any other
  corporation, entity or person, or b) a sale, lease, exchange or other transfer
  in one transaction or a series of related transactions of all or substantially
  all the Company's outstanding securities or all or substantially all the Company's
  assets; provided, however, that a Corporate Transaction shall not include a
  Related Party Transaction.

"Disability," unless otherwise defined by the Plan
  Administrator, means a mental or physical impairment of the Participant that
  is expected to result in death or that has lasted or is expected to last for
  a continuous period of 12 months or more and that causes the Participant to
  be unable, in the opinion of the Company, to perform his or her duties for the
  Company or a Related Company and to be engaged in any substantial gainful activity.

"Employment Termination Date" means, with respect to a
  Participant, the first day upon which the Participant no longer has an employment
  or service relationship with the Company or any Related Company.

"Exchange Act" means the Securities Exchange Act of 1934,
  as amended.

"Fair Market Value" means the per share value of the Common
  Shares determined as follows (a) if the Common Shares are listed on an established
  stock exchange or exchanges or the NASDAQ National Market, the closing price
  per share on the last trading day immediately preceding such date on the principal
  exchange on which it is traded or as reported by NASDAQ; (b) if the Common Shares
  are not then listed on an exchange or the NASDAQ National Market, but is quoted
  on the NASDAQ Small Cap Market, the NASDAQ electronic bulletin board, the OTC
  Bulletin Board, or the National Quotation Bureau pink sheets, the average of
  the closing bid and asked prices per share for the Common Shares as quoted by
  NASDAQ or the National Quotation Bureau, as the case may be, on the last trading
  day immediately preceding such date; or (c) if there is no such reported market
  for the Common Shares for the date in question, then an amount determined in
  good faith by the Plan Administrator.

"Grant Date" means the date on which the Plan Administrator
  completes the corporate action relating to the grant of an Option or such later
  date specified by the Plan Administrator, and on which all conditions precedent
  to the grant have been satisfied, provided that conditions to the exercisability
  or vesting of Options shall not defer the Grant Date.

"Incentive Stock Option" means an Option granted with
  the intention, as reflected in the instrument evidencing the Option, that it
  qualify as an "incentive stock option" as that term is defined in Section 422
  of the Code.

"Nonqualified Stock Option" means an Option other than
  an Incentive Stock Option.

"Option" means the right to purchase Common Shares granted
  under Article 7.

2

"Option Expiration Date" has the meaning set forth in
  Article 7.6.

"Option Term" has the meaning set forth in Article 7.3.

"Participant" means the person to whom an Option is granted
  and who meets the eligibility requirements imposed by Article 5, including Consultant
  Participants, as defined in Article 5. 

"Plan Administrator" has the meaning set forth in Article
  3.1. 

"Related Company" means any entity that, directly or indirectly,
  is in control of or is controlled by the Company. 

"Related Party Transaction" means (a) a merger or consolidation
  of the Company in which the holders of Common Shares immediately prior to the
  merger hold at least a majority of the Common Shares in the Successor Corporation
  immediately after the merger; (b) a sale, lease, exchange or other transaction
  in one transaction or a series of related transactions of all or substantially
  all the Company's assets to a wholly-owned subsidiary corporation; (c) a mere
  reincorporation of the Company; or (d) a transaction undertaken for the sole
  purpose of creating a holding company that will be owned in substantially the
  same proportion by the persons who held the Company's securities immediately
  before such transaction. 

"Retirement," unless otherwise defined by the Plan
  Administrator from time to time for purposes of the Plan, means retirement on
  or after the individual's normal retirement date under the Company's 401(k)
  plan or other similar successor plan applicable to salaried employees. 

"Securities Act" means the Securities Act of 1933, as
  amended. 

"Successor Corporation" has the meaning set forth in Article
  11.3.1. 

"Vesting Commencement Date" means the Grant Date or such
  other date selected by the Plan Administrator as the date from which the Option
  begins to vest for purposes of Article 7.4. 

ARTICLE 3. ADMINISTRATION 

3.1 Plan Administrator 

The Plan shall be administered by the Board or a committee appointed
  by, and consisting of one or more members of, the Board (the "Plan Administrator").
  If and so long as the Common Shares are registered under Section 12(b) or 12(g)
  of the Exchange Act, the Board shall consider in selecting the members of any
  committee acting as Plan Administrator, 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) "nonemployee directors" as contemplated by Rule 16b-3 under the Exchange
  Act. Committee members shall serve for such term as the

3

Board may determine, subject to removal by the Board at any time.
  At any time when no committee has been appointed to administer the Plan, then
  the Board will be the Plan Administrator.

3.2 Administration and Interpretation by Plan Administrator
  

Except for the terms and conditions explicitly set forth in the
  Plan, the Plan Administrator shall have exclusive authority, in its discretion,
  to determine all matters relating to Options under the Plan, including the selection
  of individuals to be granted Options, the type of Options, the number of Common
  Shares subject to an Option, all terms, conditions, restrictions and limitations,
  if any, of an Option and the terms of any instrument that evidences the Option.
  The Plan Administrator shall also have exclusive authority to interpret the
  Plan and the terms of any instrument evidencing the Option and may from time
  to time adopt and change rules and regulations of general application for the
  Plan's administration. The Plan Administrator's interpretation of the Plan and
  its rules and regulations, and all actions taken and determinations made by
  the Plan Administrator pursuant to the Plan, shall be conclusive and binding
  on all parties involved or affected. The Plan Administrator may delegate administrative
  duties to such of the Company's officers as it so determines. 

ARTICLE 4. STOCK SUBJECT TO THE PLAN 

4.1 Authorized Number of Shares 

Subject to adjustment from time to time as provided in Article
  11.1, the number of shares of Common Shares available for issuance under the
  Plan shall be 25,000,000 common shares, no par value.

4.2 Reuse of Shares 

Any Common Shares that have been made subject to an Option that
  cease to be subject to the Option (other than by reason of exercise or settlement
  of the Option to the extent it is exercised for or settled in shares) shall
  again be available for issuance in connection with future grants of Options
  under the Plan. In the event shares issued under the Plan are reacquired by
  the Company pursuant to any forfeiture provision or right of repurchase, such
  shares shall again be available for the purposes of the Plan; provided, however,
  that the maximum number of shares that may be issued upon the exercise of Incentive
  Stock Options shall equal the share number stated in Article 4.1, subject to
  adjustment from time to time as provided in Article 11.1; and provided, further,
  that for purposes of Article 4.3, any such shares shall be counted in accordance
  with the requirements of Section 162(m) of the Code. 

4.3 Limitations 

Subject to adjustment from time to time as provided in Article
  11.1, not more than an aggregate of 25,000,000 common shares shall be available
  for issuance pursuant to grants of Stock Options under the Plan.

4

ARTICLE 5. ELIGIBILITY 

An Option may be granted to any officer, director or employee
  of the Company or a Related Company that the Plan Administrator from time to
  time selects. An Option may also be granted to any consultant who provides services
  to the Company or any Related Company or to any employee of such consultant
  (a “Consultant Participant”), so long as such Consultant Participant
  (a) is a natural person or an alter ego entity of the natural person providing
  the services; (b) renders bona fide services to the Company that are not in
  connection with the offer and sale of the Company's securities in a capital-raising
  transaction; and (c) does not directly or indirectly promote or maintain a market
  for the Company's securities. 

ARTICLE 6. OPTIONS 

6.1 Form and Grant of Options 

The Plan Administrator shall have the authority, in its sole
  discretion, to determine the type or types of Options to be granted under the
  Plan. Options may be granted singly or in combination. 

6.2 Settlement of Options 

The Company may settle Options through the delivery of Common
  Shares, the granting of replacement Options or any combination thereof as the
  Plan Administrator shall determine. Any Option settlement, including payment
  deferrals, may be subject to such conditions, restrictions and contingencies
  as the Plan Administrator shall determine. The Plan Administrator may permit
  or require the deferral of any Option payment, subject to such rules and procedures
  as it may establish, which may include provisions for the payment or crediting
  of interest, or dividend equivalents, including converting such credits into
  deferred stock equivalents. 

ARTICLE 7. GRANTS OF OPTIONS

7.1 Grant of Options 

The Plan Administrator shall have the authority, in its sole
  discretion, to grant Options as Incentive Stock Options or as Nonqualified Stock
  Options, which shall be appropriately designated. 

7.2 Option Exercise Price 

The exercise price for shares purchased under an Option shall
  be as determined by the Plan Administrator, provided that:

(a) the exercise price for Options granted to Participants other
  than Consultant Participants but shall not be less than the minimum exercise
  price required by Article 8.3 with respect to Incentive Stock Options and shall
  not be less than 85% of Fair Market 

5

Value of the Common Shares on the Grant Date with respect to
  Nonqualified Stock Options;

(b) the exercise price for Options granted to Consultant Participants
  shall not be less than the lesser of 85% of Fair Market Value of the Common
  Shares on the Grant Date.

7.3 Term of Options 

Subject to earlier termination in accordance with the terms of
  the Plan and the instrument evidencing the Option, the maximum term of an Option
  (the "Option Term") shall be as established for that Option by the Plan Administrator
  or, if not so established, shall be ten years from the Grant Date. 

7.4 Exercise of Options 

The Plan Administrator shall establish and set forth in each
  instrument that evidences an Option the time at which, or the installments in
  which, the Option shall vest and become exercisable, any of which provisions
  may be waived or modified by the Plan Administrator at any time. 

The Plan Administrator, in its sole discretion, may adjust the
  vesting schedule of an Option held by a Participant who works less than "full-time"
  as that term is defined by the Plan Administrator or who takes a Company-approved
  leave of absence. 

To the extent an Option has vested and become exercisable, the
  Option may be exercised in whole or from time to time in part by delivery to
  the Company of a written stock option exercise agreement or notice, in a form
  and in accordance with procedures established by the Plan Administrator, setting
  forth the number of shares with respect to which the Option is being exercised,
  the restrictions imposed on the shares purchased under such exercise agreement,
  if any, and such representations and agreements as may be required by the Plan
  Administrator, accompanied by payment in full as described in Article 7.5. An
  Option may be exercised only for whole shares and may not be exercised for less
  than a reasonable number of shares at any one time, as determined by the Plan
  Administrator. 

7.5 Payment of Exercise Price 

The exercise price for shares purchased under an Option shall
  be paid in full to the Company by delivery of consideration equal to the product
  of the Option exercise price and the number of shares purchased. Such consideration
  must be in accordance with the requirements of the British Columbia Business
  Corporations Act and the Articles of Incorporation and Bylaws of the Company,
  must be paid before the Company will issue the shares being purchased and must
  be in a form or a combination of forms acceptable to the Plan Administrator
  for that purchase. 

7.6 Post-Termination Exercises 

6

The Plan Administrator shall establish and set forth in each
  instrument that evidences an Option whether the Option shall continue to be
  exercisable, and the terms and conditions of such exercise, if the Participant
  ceases to be employed by, or to provide services to, the Company or a Related
  Company, which provisions may be waived or modified by the Plan Administrator
  at any time. If not so established in the instrument evidencing the Option,
  the Option shall be exercisable according to the following terms and conditions,
  which may be waived or modified by the Plan Administrator at any time: 

	 	(a) 	 Except as otherwise set forth in this Article
        7.6, any portion of an Option that is not vested and exercisable on the
        Employment Termination Date shall expire on such date.

	 	 	 	 
	 	(b) 	 Any portion of an Option that is vested and
        exercisable on the Employment Termination Date shall expire on the earliest
        to occur of

	 	 	 	 
	 		(i) 	 if the Participant's Employment Termination Date occurs
        for reasons other than Cause, Retirement, Disability or death, the day
        which is three months after such Employment Termination Date;

	 	 	 	 
	 		(ii) 	 if the Participant's Employment Termination Date occurs
        by reason of Retirement, Disability or death, the one-year anniversary
        of such Employment Termination Date; and

	 	 	 	 
	 		(iii) 	 the last day of the Option Term (the "Option Expiration
        Date").

	 	 	 	 
	 		 Notwithstanding the foregoing, if the Participant
        dies after his or her Employment Termination Date but while an Option
        is otherwise exercisable, the portion of the Option that is vested and
        exercisable on such Employment Termination Date shall expire upon the
        earlier to occur of (y) the Option Expiration Date and (z) the one-year
        anniversary of the date of death, unless the Plan Administrator determines
        otherwise.

	 	 	 	 
	 		 Also notwithstanding the foregoing, in case
        of termination of the Participant's employment or service relationship
        for Cause, all Options granted to that Participant shall automatically
        expire upon first notification to the Participant of such termination,
        unless the Plan Administrator determines otherwise. If a Participant's
        employment or service relationship with the Company is suspended pending
        an investigation of whether the Participant shall be terminated for Cause,
        all the Participant's rights under any Option shall likewise be suspended
        during the period of investigation. If any facts that would constitute
        termination for Cause are discovered after the Participant's relationship
        with the Company or a Related Company has ended, any Option then held
        by the Participant may be immediately terminated by the Plan Administrator,
        in its sole discretion.

	 	 	 	 
	 	(c) 	 A Participant's transfer of employment or
        service relationship between or among the Company and any Related Company,
        or a change in status from an employee to a consultant, agent, advisor
        or independent contractor or a change in status from a consultant, agent,
        advisor or independent contractor to an employee, shall not be considered
        a termination of

7

	 		 employment or service relationship for purposes of this
        Article 7. Unless the Plan Administrator determines otherwise, a termination
        of employment or service relationship shall be deemed to occur if a Participant's
        employment or service relationship is with an entity that has ceased to
        be a Related Company.

	 	 	 
	 	(d) 	 The effect of a Company-approved leave of absence on
        the application of this Article 7 shall be determined by the Plan Administrator,
        in its sole discretion.

	 	 	 
	 	(e) 	 If a Participant's employment or service relationship
        with the Company or a Related Company terminates by reason of Disability
        or death, the Option shall become fully vested and exercisable for all
        the shares subject to the Option. Such Option shall remain exercisable
        for the time period set forth in this Article 7.6.

ARTICLE 8. INCENTIVE STOCK OPTION LIMITATIONS 

Notwithstanding any other provisions of the Plan, and to the
  extent required by Section 422 of the Code, Incentive Stock Options shall be
  subject to the following additional terms and conditions: 

8.1 Dollar Limitation 

To the extent the aggregate Fair Market Value (determined as
  of the Grant Date) of Common Shares with respect to which Incentive Stock Options
  are exercisable for the first time during any calendar year (under the Plan
  and all other stock option plans of the Company) exceeds $100,000, such portion
  in excess of $100,000 shall be treated as a Nonqualified Stock Option. In the
  event the Participant holds two or more such Options that become exercisable
  for the first time in the same calendar year, such limitation shall be applied
  on the basis of the order in which such Options are granted. 

8.2 Eligible Employees 

Individuals who are not employees of the Company or one of its
  parent corporations or subsidiary corporations may not be granted Incentive
  Stock Options. 

8.3 Exercise Price 

The exercise price of an Incentive Stock Option shall be at least
  100% of the Fair Market Value of the Common Shares on the Grant Date, and in
  the case of an Incentive Stock Option granted to a Participant who owns more
  than 10% of the total combined voting power of all classes of the stock of the
  Company or of its parent or subsidiary corporations (a "Ten Percent Stockholder"),
  shall not be less than 110% of the Fair Market Value of the Common Shares on
  the Grant Date. 

8

The determination of more than 10% ownership shall be made in
  accordance with Section 422 of the Code. 

8.4 Exercisability 

An Option designated as an Incentive Stock Option shall cease
  to qualify for favorable tax treatment as an Incentive Stock Option to the extent
  it is exercised (if permitted by the terms of the Option) (a) more than three
  months after the Employment Termination Date if termination was for reasons
  other than death or disability, (b) more than one year after the Employment
  Termination Date if termination was by reason of disability, or (c) after the
  Participant has been on leave of absence for more than 90 days, unless the Participant's
  reemployment rights are guaranteed by statute or contract. 

8.5 Taxation of Incentive Stock Options 

In order to obtain certain tax benefits afforded to Incentive
  Stock Options under Section 422 of the Code, the Participant must hold the shares
  acquired upon the exercise of an Incentive Stock Option for two years after
  the Grant Date and one year after the date of exercise. 

A Participant may be subject to the alternative minimum tax at
  the time of exercise of an Incentive Stock Option. The Participant shall give
  the Company prompt notice of any disposition of shares acquired on the exercise
  of an Incentive Stock Option prior to the expiration of such holding periods.

8.6 Code Definitions 

For the purposes of this Article 8, "parent corporation," "subsidiary
  corporation" and "disability" shall have the meanings attributed to those terms
  for purposes of Section 422 of the Code. 

ARTICLE 9. WITHHOLDING 

9.1 General 

The Company may require the Participant to pay to the Company
  the amount of any taxes that the Company is required by applicable federal,
  state, local or foreign law to withhold with respect to the grant, vesting or
  exercise of an Option. The Company shall not be required to issue any shares
  Common Shares under the Plan until such obligations are satisfied. 

9.2 Payment of Withholding Obligations in Cash or Shares 

The Plan Administrator may permit or require a Participant to
  satisfy all or part of his or her tax withholding obligations by (a) paying
  cash to the Company, (b) having the Company withhold from any cash amounts otherwise
  due or to become due from the Company to the Participant, (c) having the Company
  withhold a portion of any Common Shares that would otherwise be issued to the
  Participant having a value equal to the tax 

9

withholding obligations (up to the employer's minimum required
  tax withholding rate), or (d) surrendering any Common Shares that the Participant
  previously acquired having a value equal to the tax withholding obligations
  (up to the employer's minimum required tax withholding rate to the extent the
  Participant has held the surrendered shares for less than six months). 

ARTICLE 10. ASSIGNABILITY 

Neither an Option nor any interest therein may be assigned, pledged
  or transferred by the Participant or made subject to attachment or similar proceedings
  other than by will or by the applicable laws of descent and distribution, and,
  during the Participant's lifetime, such Options may be exercised only by the
  Participant. Notwithstanding the foregoing, and to the extent permitted by Section
  422 of the Code, the Plan Administrator, in its sole discretion, may permit
  a Participant to assign or transfer an Option or may permit a Participant to
  designate a beneficiary who may exercise the Option or receive payment under
  the Option after the Participant's death; provided, however, that any Option
  so assigned or transferred shall be subject to all the terms and conditions
  of the Plan and those contained in the instrument evidencing the Option. 

ARTICLE 11. ADJUSTMENTS 

11.1 Adjustment of Shares 

In the event, at any time or from time to time, a stock dividend,
  stock split, spin-off, combination or exchange of shares, recapitalization,
  merger, consolidation, distribution to stockholders other than a normal cash
  dividend, or other change in the Company's corporate or capital structure, including,
  without limitation, a Related Party Transaction, results in (a) the outstanding
  Common Shares, or any securities exchanged therefor or received in their place,
  being exchanged for a different number or kind of securities of the Company
  or of any other corporation or (b) new, different or additional securities of
  the Company or of any other corporation being received by the holders of Common
  Shares of the Company, then the Plan Administrator shall make proportional adjustments
  in (i) the maximum number and kind of securities subject to the Plan and issuable
  as Incentive Stock Options as set forth in Article 4 and the maximum number
  and kind of securities that may be made subject to Options and to Options to
  any individual as set forth in Article 4.3, and (ii) the number and kind of
  securities that are subject to any outstanding Award and the per share price
  of such securities, without any change in the aggregate price to be paid therefor.
  The determination by the Plan Administrator as to the terms of any of the foregoing
  adjustments shall be conclusive and binding. Notwithstanding the foregoing,
  a dissolution or liquidation of the Company or a Corporate Transaction shall
  not be governed by this Article 11.1 but shall be governed by Articles 11.2
  and 11.3, respectively. 

11.2 Dissolution or Liquidation 

To the extent not previously exercised or settled, and unless
  otherwise determined by the Plan Administrator in its sole discretion, Options
  shall terminate immediately prior to the 

10

dissolution or liquidation of the Company. To the extent a forfeiture
  provision or repurchase right applicable to an Option has not been waived by
  the Plan Administrator, the Option shall be forfeited immediately prior to the
  consummation of the dissolution or liquidation. 

11.3 Corporate Transaction Options 

(a)      In the event of a Corporate
  Transaction, except as otherwise provided in the instrument evidencing an Option
  (or in a written employment or services agreement between a Participant and
  the Company or Related Company) and except as provided in subsection (b) below,
  each outstanding Option shall be assumed or an equivalent option or right substituted
  by the surviving corporation, the successor corporation or its parent corporation,
  as applicable (the "Successor Corporation").

(b)      If, in connection with a Corporate
  Transaction, the Successor Corporation refuses to assume or substitute for an
  Option, then each such outstanding Option shall become fully vested and exercisable
  with respect to 100% of the unvested portion of the Option. In such case, the
  Plan Administrator shall notify the Participant in writing or electronically
  that the unvested portion of the Option specified above shall be fully vested
  and exercisable for a specified time period. At the expiration of the time period,
  the Option shall terminate, provided that the Corporate Transaction has occurred.

(c)      For the purposes of this Article
  11.3, the Option shall be considered assumed or substituted for if following
  the Corporate Transaction the option or right confers the right to purchase
  or receive, for each share of Common Shares subject to the Option immediately
  prior to the Corporate Transaction, the consideration (whether stock, cash,
  or other securities or property) received in the Corporate Transaction by holders
  of Common Shares for each share held on the effective date of the transaction
  (and if holders were offered a choice of consideration, the type of consideration
  chosen by the holders of a majority of the outstanding shares); provided, however,
  that if such consideration received in the Corporate Transaction is not solely
  Common Shares of the Successor Corporation, the Plan Administrator may, with
  the consent of the Successor Corporation, provide for the consideration to be
  received upon the exercise of the Option, for each share of Common Shares subject
  thereto, to be solely Common Shares of the Successor Corporation substantially
  equal in fair market value to the per share consideration received by holders
  of Common Shares in the Corporate Transaction. The determination of such substantial
  equality of value of consideration shall be made by the Plan Administrator and
  its determination shall be conclusive and binding.

(d)      All Options shall terminate
  and cease to remain outstanding immediately following the Corporate Transaction,
  except to the extent assumed by the Successor Corporation. 

11.4 Further Adjustment of Options 

Subject to Articles 11.2 and 11.3, the Plan Administrator shall
  have the discretion, exercisable at any time before a sale, merger, consolidation,
  reorganization, liquidation or change of control of the Company, as defined
  by the Plan Administrator, to take such 

11

further action as it determines to be necessary or advisable,
  and fair and equitable to the Participants, with respect to Options. Such authorized
  action may include (but shall not be limited to) establishing, amending or waiving
  the type, terms, conditions or duration of, or restrictions on, Options so as
  to provide for earlier, later, extended or additional time for exercise, lifting
  restrictions and other modifications, and the Plan Administrator may take such
  actions with respect to all Participants, to certain categories of Participants
  or only to individual Participants. The Plan Administrator may take such action
  before or after granting Options to which the action relates and before or after
  any public announcement with respect to such sale, merger, consolidation, reorganization,
  liquidation or change of control that is the reason for such action. 

11.5 Limitations 

The grant of Options shall in no way affect the Company's right
  to adjust, reclassify, reorganize or otherwise change its capital or business
  structure or to merge, consolidate, dissolve, liquidate or sell or transfer
  all or any part of its business or assets. 

11.6 Fractional Shares 

In the event of any adjustment in the number of shares covered
  by any Option, each such Option shall cover only the number of full shares resulting
  from such adjustment. 

ARTICLE 12. AMENDMENT AND TERMINATION 

12.1 Amendment or Termination of Plan 

The Board may suspend, amend or terminate the Plan or any portion
  of the Plan at any time and in such respects as it shall deem advisable; provided,
  however, that to the extent required for compliance with Section 422 of the
  Code or any applicable law or regulation, stockholder approval shall be required
  for any amendment that would (a) increase the total number of shares available
  for issuance under the Plan, (b) modify the class of employees eligible to receive
  Options, or (c) otherwise require stockholder approval under any applicable
  law or regulation. Any amendment made to the Plan that would constitute a "modification"
  to Incentive Stock Options outstanding on the date of such amendment shall not,
  without the consent of the Participant, be applicable to such outstanding Incentive
  Stock Options but shall have prospective effect only. 

12.2 Term of Plan 

Unless sooner terminated as provided herein, the Plan shall terminate
  ten years after the earlier of the Plan's adoption by the Board and approval
  by the stockholders. 

12.3 Consent of Participant 

The suspension, amendment or termination of the Plan or a portion
  thereof or the amendment of an outstanding Option shall not, without the Participant's
  consent, materially adversely affect any rights under any Option theretofore
  granted to the Participant under the Plan. Any change or adjustment to an outstanding
  Incentive Stock 

12

Option shall not, without the consent of the Participant, be
  made in a manner so as to constitute a "modification" that would cause such
  Incentive Stock Option to fail to continue to qualify as an Incentive Stock
  Option. Notwithstanding the foregoing, any adjustments made pursuant to Article
  12 shall not be subject to these restrictions. 

ARTICLE 13. GENERAL 

13.1 Evidence of Options 

Options granted under the Plan shall be evidenced by a written
  instrument that shall contain such terms, conditions, limitations and restrictions
  as the Plan Administrator shall deem advisable and that are not inconsistent
  with the Plan. 

13.2 No Individual Rights 

Nothing in the Plan or any Option granted under the Plan shall
  be deemed to constitute an employment contract or confer or be deemed to confer
  on any Participant any right to continue in the employ of, or to continue any
  other relationship with, the Company or any Related Company or limit in any
  way the right of the Company or any Related Company to terminate a Participant's
  employment or other relationship at any time, with or without Cause. 

13.3 Issuance of Shares 

Notwithstanding any other provision of the Plan, the Company
  shall have no obligation to issue or deliver any Common Shares under the Plan
  or make any other distribution of benefits under the Plan unless, in the opinion
  of the Company's counsel, such issuance, delivery or distribution would comply
  with all applicable laws (including, without limitation, the requirements of
  the Securities Act), and the applicable requirements of any securities exchange
  or similar entity. 

The Company shall be under no obligation to any Participant to
  register for offering or resale or to qualify for exemption under the Securities
  Act, or to register or qualify under state securities laws, any Common Shares,
  security or interest in a security paid or issued under, or created by, the
  Plan, or to continue in effect any such registrations or qualifications if made.
  The Company may issue certificates for shares with such legends and subject
  to such restrictions on transfer and stop-transfer instructions as counsel for
  the Company deems necessary or desirable for compliance by the Company with
  federal and state securities laws. 

To the extent the Plan or any instrument evidencing an Option
  provides for issuance of stock certificates to reflect the issuance of Common
  Shares, the issuance may be effected on a noncertificated basis, to the extent
  not prohibited by applicable law or the applicable rules of any stock exchange.

13.4 No Rights as a Stockholder 

13

No Option or Stock Option denominated in units shall entitle
  the Participant to any cash dividend, voting or other right of a stockholder
  unless and until the date of issuance under the Plan of the shares that are
  the subject of such Option. 

13.5 Compliance With Laws and Regulations 

Notwithstanding anything in the Plan to the contrary, the Plan
  Administrator, in its sole discretion, may bifurcate the Plan so as to restrict,
  limit or condition the use of any provision of the Plan to Participants who
  are officers or directors subject to Section 16 of the Exchange Act without
  so restricting, limiting or conditioning the Plan with respect to other Participants.
  Additionally, in interpreting and applying the provisions of the Plan, any Option
  granted as an Incentive Stock Option pursuant to the Plan shall, to the extent
  permitted by law, be construed as an "incentive stock option" within the meaning
  of Section 422 of the Code. 

13.6 Participants in Other Countries 

The Plan Administrator shall have the authority to adopt such
  modifications, procedures and subplans as may be necessary or desirable to comply
  with provisions of the laws of other countries in which the Company or any Related
  Company may operate to assure the viability of the benefits from Options granted
  to Participants employed in such countries and to meet the objectives of the
  Plan. 

13.7 No Trust or Fund 

The Plan is intended to constitute an "unfunded" plan. Nothing
  contained herein shall require the Company to segregate any monies or other
  property, or Common Shares, or to create any trusts, or to make any special
  deposits for any immediate or deferred amounts payable to any Participant, and
  no Participant shall have any rights that are greater than those of a general
  unsecured creditor of the Company. 

13.8 Severability 

If any provision of the Plan or any Option is determined to be
  invalid, illegal or unenforceable in any jurisdiction, or as to any person,
  or would disqualify the Plan or any Option under any law deemed applicable by
  the Plan Administrator, such provision shall be construed or deemed amended
  to conform to applicable laws, or, if it cannot be so construed or deemed amended
  without, in the Plan Administrator's determination, materially altering the
  intent of the Plan or the Option, such provision shall be stricken as to such
  jurisdiction, person or Option, and the remainder of the Plan and any such Option
  shall remain in full force and effect. 

13.9 Choice of Law 

The Plan and all determinations made and actions taken pursuant
  heretoshall be governed by the laws of the Province of British Columbia without
  giving effect to principles of conflicts of law. 

14

ARTICLE 14. EFFECTIVE DATE 

The effective date is January 11, 2007, being the date on which
  the Plan was adopted by the Board. If the stockholders of the Company do not
  approve the Plan within 12 months after the Board's adoption of the Plan, any
  Incentive Stock Options granted under the Plan will be treated as Nonqualified
  Stock Options. 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]