<SEC-DOCUMENT>0001173382-16-000043.txt : 20160627
<SEC-HEADER>0001173382-16-000043.hdr.sgml : 20160627
<ACCEPTANCE-DATETIME>20160627111653
ACCESSION NUMBER:		0001173382-16-000043
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160630
FILED AS OF DATE:		20160627
DATE AS OF CHANGE:		20160627

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAE INC
		CENTRAL INDEX KEY:			0001173382
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31402
		FILM NUMBER:		161732514

	BUSINESS ADDRESS:	
		STREET 1:		8585 COTE DE LIESSE
		CITY:			ST-LAURENT
		STATE:			A8
		ZIP:			H4T 1G6
		BUSINESS PHONE:		514-341-6780

	MAIL ADDRESS:	
		STREET 1:		8585 COTE DE LIESSE
		CITY:			ST-LAURENT
		STATE:			A8
		ZIP:			H4T 1G6
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>ksignedjune2716.htm
<DESCRIPTION>FORM 6-K AND 2016 STOCK OPTION PLAN
<TEXT>

<HTML>
<HEAD>
   <TITLE>ksignedjune2716.htm - Generated by SEC Publisher for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<a name="page_1"></a><a name="_bclPageBorder1"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p align=right style="line-height:12.0pt;margin:0in;margin-bottom:24.0pt;text-align:right;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style="margin-bottom:24.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Washington, DC&#160; 20549</font></b></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Form 6-K</font></b></p>

<p align=center style="line-height:12.0pt;margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Report of Foreign Issuer</font></p>

<p align=center style="line-height:12.0pt;margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Pursuant to Rule 13a-16 or 15d-16 of</font></p>

<p align=center style="line-height:12.0pt;margin:0in;margin-bottom:24.0pt;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">the Securities Exchange Act of 1934</font></p>

<p style="margin-bottom:.25in;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">For the month
of:&#160; June 2016&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Commission File
Number: 1-31402</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE INC.</font></b></p>

<p align=center style="line-height:12.0pt;margin:0in;margin-bottom:12.0pt;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">(Name of Registrant)</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=FR-CA style="font-size:12.0pt;">8585 Cote de Liesse</font></b></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=FR-CA style="font-size:12.0pt;">Saint-Laurent, Quebec</font></b></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">  <b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Canada H4T 1G6</font></b></p>

<p align=center style="line-height:12.0pt;margin:0in;margin-bottom:24.0pt;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">(Address of Principal Executive Offices)</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form
40-F:</font></p>

<p style="line-height:12.0pt;margin:0in;margin-bottom:24.0pt;text-indent:1.25in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Form 20-F&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Form 40-F </font><u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;&nbsp;X&nbsp;&nbsp;</font></u></p>

<p style="line-height:12.0pt;margin:0in;margin-bottom:24.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): </font><u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;&nbsp;X&nbsp;&nbsp;</font></u></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Indicate by check mark whether the
registrant by furnishing the information contained in this Form is also thereby
furnishing the information to the SEC pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934:</font></p>

<p style="line-height:12.0pt;margin:0in;margin-bottom:24.0pt;text-indent:115.5pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Yes </font><u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;&nbsp;&nbsp;&nbsp; </font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No
</font><u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;&nbsp;X&nbsp;&nbsp;</font></u></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">If &#8220;Yes&#8221; is marked, indicate the file
number assigned to the registrant in connection with Rule 12g3-2(b): N/A</font></p>









</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_2"></a><a name="_bclPageBorder2"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin-bottom:24.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">SIGNATURES</font></b></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:1.0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:30.0pt;text-indent:3.0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:14.0pt;">CAE Inc.</font></b></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Date: June 27, 2016&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; By:&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">/s/
Mark Hounsell&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></u></p>

<p style="line-height:12.0pt;margin:0in;margin-bottom:.0001pt;margin-left:256.5pt;text-indent:-40.5pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Name:&#160;&#160; Mark Hounsell</font></p>

<p style="line-height:12.0pt;margin:0in;margin-bottom:.0001pt;margin-left:256.5pt;text-indent:-40.5pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Title:&#160;&#160;&#160;&#160; General Counsel, Chief Compliance Officer
and Corporate Secretary</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>




</DIV>
</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>stockoptionplan2016-finaljun.htm
<DESCRIPTION>2016 STOCK OPTION PLAN
<TEXT>

<HTML>
<HEAD>
   <TITLE>stockoptionplan2016-finaljun.htm - Generated by SEC Publisher for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<a name="page_1"></a><a name="_bclPageBorder1"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE INC.</font></b></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">EMPLOYEE STOCK OPTION PLAN</font></b><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">(Amended and Restated as of </font></b><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">June
15, 2016</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">)</font></b></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE Inc., a corporation incorporated
under the laws of Canada, hereby adopts an Employee Stock Option Plan, as
amended, for key employees of CAE Inc. and its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">, as
follows:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article I</font><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;text-transform:uppercase;"><br>
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">PURPOSE</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">1.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Purpose.</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> The
purpose of the CAE Inc. Employee Stock Option Plan, as amended, is to provide
key employees of CAE Inc. and its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> with
an opportunity to purchase common shares of CAE Inc. and to benefit from the
appreciation thereof, thus providing an increased incentive for these employees
to contribute to the future success and prosperity of CAE Inc., enhancing the
value of the common shares for the benefit of the shareholders and increasing
the ability of CAE Inc. and its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> to attract and retain individuals of exceptional skill.</font></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article II</font><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-transform:uppercase;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">INTERPRETATION</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">2.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Definitions</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. In this Plan, unless the context otherwise
requires, the following words and expressions shall have the respective
meanings ascribed to them below:</font></h2>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Approval Date</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the later of the date of approval of the
Plan by the shareholders of the Corporation and by the applicable regulatory
authorities and stock exchanges, each as contemplated by Article </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">XI</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> hereof.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Base Price</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means, with respect to a Share subject to Option, the weighted
average price of the Shares on </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">the</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Toronto Stock Exchange (or such other stock exchange on
which the Shares are listed as the Board shall from time to time prescribe) on
the five trading days immediately preceding the day on which the Option is
granted (provided that if the date on which the Board resolves to grant an
Option falls within a Black Out Period or within five trading days following
the end of a Black Out Period, the date of grant shall be presumed to be the
sixth trading day following the end of such Black Out Period). If no Shares
have been traded on such exchange on any such day, the Base Price shall be
established on the same basis on the last five trading days for which a trade
was reported by such exchange.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Black Out Period</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;
means the period during which designated employees of the Corporation cannot
trade the Shares pursuant to the Corporation's policy respecting restrictions
on employee trading which is in effect at that time (which, for greater
certainty, does not include the period during which a cease trade order is in
effect to which the Corporation or in respect of an insider, that insider, is
subject).</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Board</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the board of directors of the
Corporation.</font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_2"></a><a name="_bclPageBorder2"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader2"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">2</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Business Day</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;
means each day other than a Saturday, Sunday or statutory holiday in Montreal,
Quebec, Canada.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font color=windowtext face="Times New Roman" lang=EN-CA style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Change
of Control</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font color=windowtext face="Times New Roman" lang=EN-CA style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">
means:</font></p>

<p style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font color=windowtext face="Times New Roman" lang=EN-CA style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any
event or circumstance where any Person, any joint actor thereof or any Person
acting jointly or in concert therewith, or any combination thereof, acquires
beneficial ownership or exercises control or direction, directly or indirectly
(whether through </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">a purchase, issuance or exchange
of Shares or other voting securities, reorganization, amalgamation, merger,
business combination, consolidation or other transaction or series of
transactions having similar effect (or a plan of arrangement in connection with
any of the foregoing)), other than solely involving the Corporation and any one
or more of its Subsidiaries, of a majority of the Shares or other voting
securities of the Corporation or of any successor or resulting corporation or
other Person; or </font></p>

<p style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the sale or other disposition to a Person other than a
Subsidiary of the Corporation of all or substantially all of the Corporation's assets.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Code</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the United States Internal Revenue Code of 1986, as amended,
and the rules and regulations promulgated thereunder.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Committee</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the Human Resources Committee of the Board or equivalent.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Corporation</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means CAE Inc.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Incentive Stock Option</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means an Option (i) which is intended to meet
the requirements of </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Section 422 of the Code, including</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">,
without limitation,</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> the requirement under the Code that </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">generally
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">such Option be issued at an Option Price which is not less than
the fair market value of a Share on the date of grant and (ii), in connection
with the exercise of which, an Optionee will not recognize income for United
States federal income tax purposes </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">and the Optionee will be entitled
to capital gain treatment </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">if the Shares acquired upon exercise of
such Option are held for two years from the date of the grant of the Option and
one year from the date of exercise thereof.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Non-qualified Stock Option</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means an Option which is not intended to meet the requirements of
Section 422 of the Code, and which does not entitle the Optionee to receive the
United States federal income tax treatment described in paragraph (ii) of the
definition of Incentive Stock Option contained herein.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Options</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means options granted under the terms of the Plan and includes both
Incentive Stock Options and Non-qualified Stock Options.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Option Price</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the purchase price of a Share under an Option.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Optionee</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> shall mean an employee of the Corporation or its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">
to whom an Option has been granted under the terms of the Plan.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Person</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot; means
an individual and includes, where the context so requires, partnership, limited
partnership, joint venture, syndicate, sole proprietorship, company or
corporation with or without </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">share capital,
unincorporated association, trust, trustee, executor, administrator or other
legal personal representative, regulatory body or agency, government or
governmental agency, authority or entity however designated or constituted.</font></p>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_3"></a><a name="_bclPageBorder3"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader3"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">3</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>


<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Plan</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the CAE Inc. Employee Stock Option Plan, as amended and as
the same may from time to time be amended</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;"> and restated</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Shares</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the common shares in the capital of the Corporation or, in
the event of any reclassification of such common shares, the shares in the
capital of the Corporation resulting from such reclassification.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Subsidiary</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> has the meaning ascribed thereto in </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">National Instrument 45-106 &#8211; </font><i><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Prospectus and Registration Exemptions</font></i><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">,
as amended or replaced from time to time</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><b><font face="Times New Roman" lang=EN-CA style="font-size:12.0pt;text-autospace:ideograph-numeric ideograph-other;">&#8220;Retirement Eligibility Date&#8221;</font></b><b><font face="Times New Roman" lang=EN-CA style="font-size:11.0pt;text-autospace:ideograph-numeric ideograph-other;"> </font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-autospace:ideograph-numeric ideograph-other;">means
the date at which the Optionee has reached the age of 55 with at least 5 years
of service.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Termination Date</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot; or &quot;</font><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Expiry
Date</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">means,
with respect to any Option, such date as is fixed by the Committee at the time
of the grant of the Option but is not later than the day preceding the tenth
anniversary of the date on which the Option is granted.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">United States</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the United States of America, its territories and
possessions, any State of the United States and the District of Columbia.</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">U.S. Securities Act</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> means the United States Securities Act of 1933,
as amended, and the rules and regulations promulgated thereunder.</font></p>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">2.02</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Gender, etc.</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> The masculine gender shall include the feminine
and neuter genders and vice versa and the singular shall include the plural and
vice versa.</font></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article III</font><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-transform:uppercase;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">ADMINISTRATION</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">3.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Administration</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Except as otherwise provided in the Plan and
subject to Section 6.10, the Committee shall administer the Plan and shall have
full power to grant Options, construe and interpret the Plan, establish, amend
and rescind rules and regulations for its administration and perform all other
acts relating to the Plan, including the delegation of administrative
responsibilities, that it believes reasonable and proper.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">3.02</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Granting of Options</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Subject to the terms and conditions of the
Plan, the Committee shall, in its discretion, determine which employees of the
Corporation or its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> shall be granted Options, the number of Shares subject to option
under any such Options, the dates after which Options may be exercised (which
shall not be earlier than the Approval Date nor later than the Termination
Date) in whole or in part, the Option Price, any restrictions imposed on Shares
received upon the exercise of Options, the terms and conditions of the Options
and, in respect of Options granted to United States </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Persons</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">,
whether the Options shall be Incentive Stock Options.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;">&nbsp;</h2>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_4"></a><a name="_bclPageBorder4"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader4"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">4</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">3.03</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Determinations Final and Conclusive</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Any decision or determination made or action taken by the
Committee or the Board arising out of or in connection with the interpretation
and administration of the Plan including the granting of Options, shall be
final and conclusive.</font></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article IV</font><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-transform:uppercase;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">SHARES SUBJECT TO PLAN</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">4.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Number of Shares</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. As at June 15, 2016, the total number of
Shares available for grants of Options under the Plan shall be 16,381,839 subject
to adjustment in accordance with Article VIII. The Shares which may be issued
and sold upon the exercise of Options granted pursuant to the Plan will be
authorized but unissued Shares. The aggregate number of Shares so reserved for
issuance to any one </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> shall not exceed 5% of the issued and outstanding Shares (on </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">a</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> non-diluted basis) from time to time. The number of
securities issuable to insiders of the Corporation at any time under all
security-based compensation arrangements cannot exceed 10% of the Corporation&#8217;s
issued and outstanding securities. The number of securities issued to insiders
of the Corporation within any one year period under all security-based
compensation arrangements cannot exceed 10% of the Corporation&#8217;s issued and
outstanding securities.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">4.02</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Lapsed Options</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Subject to Section 6.06(5), if Options or any
part thereof are surrendered, terminate or expire without having been exercised
in full, new Options may be granted covering the Shares not purchased under
such lapsed Options, but Options once issued cannot be rescinded by mutual
consent or agreement for the purpose of making optioned Shares available for
reallocation pursuant to a new Option in favour of the same Optionee at a lower
Option Price under the Plan. </font></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article V</font><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-transform:uppercase;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">ELIGIBILITY</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">5.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Eligibility</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Options may be granted to selected key employees
of the Corporation &#160;or its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">, provided that Incentive Stock Options shall only be granted to
employees of a </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiary</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> of the Corporation if such </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiary</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">
constitutes a </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">subsidiary</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">
of the Corporation within the meaning ascribed to such term in </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Section
424 of </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">the Code.&#160; For greater
certainty, non-employee directors of the Corporation shall not be eligible
participants under the Plan.</font></h2>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article VI</font><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-transform:uppercase;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">TERMS OF OPTIONS</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Option Agreement</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. All Options shall be evidenced by written
agreements executed by the Corporation and the Optionee. Such Options shall be
subject to the applicable provisions of the Plan, and shall contain such
provisions as are required by the Plan and such other terms and conditions as
may be prescribed by the Committee (which terms and conditions need not be the
same in each case and may be changed from time to time). All agreements
evidencing Options shall specify the total number of Shares subject to each
grant, the Option Price and the Termination Date. Each agreement evidencing an
Option granted to a United States </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> shall </font></h2>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_5"></a><a name="_bclPageBorder5"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader5"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">5</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">specify whether
the Option evidenced thereby is an Incentive Stock Option or a Non-qualified
Stock Option.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.02</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Option Price</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. The Option Price per Share shall not be less
than the Base Price calculated in accordance with the Plan on the date of the
grant or less than that permitted by applicable laws or regulations or the
rules, regulations, by-laws or policies of regulatory authorities having
jurisdiction or the stock exchanges on which any securities of the Corporation
are listed.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.03</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Period of Exercise</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">.</font></h2>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(1)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">Subject to the provisions of
the Plan, the Committee shall determine the date after which Options may be
exercised in whole or in part.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(2)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">Except as set forth in
Section 6.05, no Option may be exercised unless the Optionee is at the time of
such exercise an employee of the Corporation or one of its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> and shall have served
continuously in such capacity since the date of the grant of his Option.
Absence on leave, having approval of the Corporation or one of its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">,
shall not be considered an interruption of service for any purpose of the Plan.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(3)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">No Incentive Stock Option may be exercised
after the tenth anniversary of the date of grant.</font></h3>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.04</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Nontransferability and Non-Hedging of
Options</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Each Option shall, during the Optionee</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:line-through;">&#8217;</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">'</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">s
lifetime, be exercisable only by the Optionee, and neither it nor any right
hereunder shall be transferable or assignable otherwise than by will or the
laws of descent and distribution or be subject to attachment, execution or
other similar process. In the event of any attempt by the Optionee to alienate,
assign, pledge, hypothecate, grant a security interest in or otherwise dispose
of an Option or of any right hereunder, except as provided for herein, or in
the event of any levy or any attachment, execution or similar process upon the
rights or interest hereby conferred, the Corporation may terminate the Option
by notice to the Optionee and the Option shall thereupon become null</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">,
void</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> and </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">of no effect</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Similarly, any Option held by
an Optionee and any underlying Share shall not be the object of any
monetization or other hedging procedure to reduce the exposure related to their
holding by the Optionee.</font></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.05</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Effect of Death, Retirement, </font></b><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Termination,
Departure</font></b></h2>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(1)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">If an Optionee shall die while an employee of
the Corporation or one of its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">, any
Option held by him may be exercised, to the extent that the Optionee was
entitled to do so at the time of his death, by the </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">
to whom the Optionee</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">'</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">s rights under the Option shall pass by
the Optionee</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">'</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">s will or the applicable laws of descent
and distribution. Any </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> to whom an
Optionee</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">'</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">s rights under
an Option have passed by will or by applicable laws of descent or distribution</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">:</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> (i) shall be entitled to exercise the Option only during
the period expiring on the day that is earlier of (x) six months following the
date </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">of death and (y) the Termination Date of the Option; and (ii) shall
be subject to all terms and conditions of the Plan and the Option applicable to
the Optionee.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;">&nbsp;</h3>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_6"></a><a name="_bclPageBorder6"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader6"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(2)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">If an Optionee has reached his Retirement
Eligibility Date and ceases to be an employee of the Corporation or one of its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">,
unvested Options held by such Optionee shall, subject to all terms and conditions
of the Plan and the Option applicable to the Optionee, continue to vest
following the Optionee's retirement date. Such an Optionee shall be entitled,
subject to all terms and conditions of the Plan and the Option applicable to
the Optionee</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">:</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> (a)</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;"> to</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> exercise any
vested Options held by him as of the retirement date until the Termination Date
for each such Option; and (b) </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">to </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">exercise any
Options vesting after the retirement date (&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Post Retirement Vesting
Options</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">&quot;) only during the </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">30&#8209;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">day period
following the vesting date of the Post Retirement Vesting Options, after which </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">30&#8209;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">day
period any such Post Retirement Vesting Options which remain unexercised shall
expire.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(3)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">If an Optionee ceases to serve the Corporation
as an employee of the Corporation or one of its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">
otherwise than by reason of death</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">,</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> retirement, </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">voluntary
resignation or having been dismissed from such position without cause, each
unvested</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> Option held by the Optionee together with all rights
hereunder or thereunder, shall terminate </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">and become null, void and of no
effect </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">on the date on which such Optionee ceases to serve the
Corporation in such capacity.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(4)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">If an Optionee ceases to serve the Corporation
as an employee of the Corporation or one of its Subsidiaries otherwise then by
reason of death, retirement or having been dismissed from such position for
cause, such Optionee shall have the right for a period of 30 days (or until the
normal Expiry Date of the Option rights of such Optionee if earlier) from the
date of ceasing to be an employee of the Corporation or one of its Subsidiaries
to exercise his Option under the Plan to the extent that the Optionee was
entitled to exercise it on the date of ceasing to be an employee of the
Corporation or one of its Subsidiaries. Subject to Section 6.06(4), upon the
expiration of such 30&#8209;day period, each Option held by the Optionee
together with all rights hereunder or thereunder, shall terminate and become
null, void and of no effect on the date on which such Optionee ceases to serve
the Corporation in such capacity.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(5)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">The Committee may, with respect to any Option,
in its discretion, waive, amend or vary the requirements of Section 6.03(2) or
this Section 6.05, subject to section 6.10(3)(f).</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(6)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Notwithstanding any provision in this Section
6.05 to the contrary, any Incentive Stock Options must be exercised within
three months of employee's termination for any reason other than by death or
disability.</font></h3>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.06</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Manner of Exercise and Payments</font></b><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">.</font></b></h2>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(1)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">An Option, or part thereof, shall be exercised
by delivery of a notice of exercise to the Corporation</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">'s
external service provider</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> and payment, in cash or by cheque, bank
draft or money order, of the full purchase price of the Shares then being
purchased pursuant to the Option</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;"> unless a cashless exercise
option is indicated in the notice</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. An Optionee may exercise an
Option with respect to less than the full number of Shares for which the Option
may then be exercised, but an Optionee must exercise the Option in full Shares.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;">&nbsp;</h3>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_7"></a><a name="_bclPageBorder7"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader7"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">7</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(2)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">An Optionee shall be
entitled to the rights appertaining to share ownership only with respect to
Shares that have been fully paid for and issued to him.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(3)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">To validly exercise an Option, the Optionee must
forward </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">notice and</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> payment </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">(unless
a cashless exercise is chosen) </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">for the exercise of the Option</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">
with sufficient time</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> before 4:00 p.m. (Eastern Time &#8211; Canada) on
the </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Expiry Date for the external service provider to receive and process it.
If the Expiry Date is not a Business Day</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">, the effective exercise
date is the preceding </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Business Day and notice</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> and payment</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">
(unless a cashless exercise is chosen)</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> must be received </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">on
that date, as aforesaid.</font></h3>

<h3 style="margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(4)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Should the Expiry Date for an Option,
including the expiration of an Option pursuant to Section 6.05(4), fall within
a Black Out Period or within nine Business Days following the expiration of a
Black Out Period, such Expiry Date shall be automatically extended without any
further act or formality to that date which is the tenth Business Day after the
end of the Black Out Period, such tenth Business Day to be considered the Expiry
Date for such Option for all purposes under the Plan. Notwithstanding Section
6.10, the ten Business Day period referred to in this Section 6.06(4) may not
be extended by the Committee or the Board. Notwithstanding the preceding
provision, the Expiry Date for an Incentive Stock Option may not be extended
beyond the tenth anniversary of the grant.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:12.0pt;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(5)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">With the prior written consent of the
Committee (which may be withheld for any reason), an Optionee may elect to
surrender his or her Options in whole or in part and, in lieu of receiving the
Shares to which the surrendered Options relate, receive cash equal to the fair
market value of such Shares, less the aggregate of: (i) the aggregate Option
Prices for the Shares to which the surrendered Options relate, and (ii) any
amount withheld on account of income taxes, which withheld amount will be
remitted by the Corporation to the appropriate authority. The Options
surrendered pursuant to this Section 6.06(5) will not be available for future
grants. The fair market value of a Share shall be the closing price of a Share
on the Toronto Stock Exchange on the trading day on which the election
described above is made under this Section.</font></h3>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.07</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Withholding Taxes</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. The Corporation may, in its discretion,
require an Optionee to pay to the Corporation or its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> the amount, or make such
other arrangements (including the withholding of Shares which would otherwise
be delivered upon exercise), at the time of the exercise in whole or in part of
any Option or thereafter, that the Corporation deems necessary to satisfy any
obligation of the Corporation or its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> to
withhold federal, provincial, state or local income or other taxes incurred by
reason of the exercise.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">6.08</font></b><b><font color=windowtext face="times new roman" lang=EN-US style="font-size:7.0pt;letter-spacing:0pt;text-decoration:none;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Change of Control</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">. If a Change of Control occurs, then, subject to Section 7.02 with
respect to Options governed thereby, all Options regardless of when they were
granted shall be fully vested and an Optionee shall be entitled to exercise any
or all of his or her Options. Any such Options may be exercised or dealt with
in accordance with such terms and conditions established by the Board,
including to permit Optionees to tender or otherwise deal with the Shares
issuable upon exercise of their Options, subject in all circumstances to the
Change of Control. The Board may determine that any Options remaining
outstanding after the Change of Control shall be cancelled and become null,
void and of no effect automatically either upon the effectiveness thereof or
within a period of up to 30 days.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;text-indent:0in;">&nbsp;</h2>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_8"></a><a name="_bclPageBorder8"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader8"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">8</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.09</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" style="font-size:12.0pt;">Clawback Provisions. </font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">In the event of
financial misstatement as a result of omission, fraudulent or intentional
misconduct, the Board at their discretion may clawback all or a portion of the
incentive compensation paid or awarded to the Optionee by the Corporation,
which was directly based on financial results that were subsequently affected
by a restatement</font><font face="Times New Roman" style="font-size:11.0pt;font-weight:normal;">.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">6.10</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Amendments.</font></b></h2>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(1)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">The Committee may at any
time and from time to time after the grant of an Option, </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">without</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> the consent of </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">any</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">
Optionee, amend</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">, suspend or terminate the Plan, subject to:</font></h3>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">(a)</font><font color=windowtext face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">not adversely altering or
impairing any Option previously granted to an Optionee under the Plan without
the Optionee's consent;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(b)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">compliance</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> with
applicable laws</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">,</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> rules, regulations, by-laws </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">and</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">
policies of</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">, and receipt of any required approvals from, any
applicable stock exchange or</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> regulatory authorities having
jurisdiction</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">; and</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(c)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">subject to Section 6.10(3), receipt of any
required shareholder approval.</font></h4>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(2)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">The Committee shall have the authority to
amend, suspend or terminate the Plan or any Option without obtaining
shareholder approval in order to:</font></h3>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(a)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">(i) amend any terms relating to the granting
or exercise of Options, including the terms relating to the eligibility for </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(other than for non-executive directors of the
Corporation)</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;"> and limitations or conditions on participation in the Plan, the amount and payment of the Option Price (other than a reduction
thereof) or the vesting, exercise, expiry (other than an extension of the
Termination Date except as contemplated in Section 6.06(4)), assignment (other
than for financing or derivative-type transaction purposes) and adjustment of
Options, or (ii) add or amend any terms relating to any cashless exercise
features;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(b)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">amend the Plan to permit the granting of
deferred or restricted share units under the Plan or to add or amend any other
provisions which result in participants receiving securities of the Corporation while no cash consideration is received by the Corporation;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(c)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">make changes that are necessary or desirable
to comply with applicable laws, rules or regulations of any regulatory
authorities having jurisdiction or any applicable stock exchange;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(d)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">correct or rectify any ambiguity, defective
provision, error or omission in the Plan or in any Option or make amendments of
a &quot;housekeeping&quot; nature;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(e)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">amend any terms relating to the administration
of the Plan, subject to section 6.10(3); and </font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;">&nbsp;</h4>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_9"></a><a name="_bclPageBorder9"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader9"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">9</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(f)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">make any other amendment that does not require
shareholder approval by virtue of the Plan, applicable laws or relevant stock
exchange or regulatory requirements;</font></h4>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">provided such amendment, suspension or termination (i) does not adversely
alter or impair any previously granted Option without the Optionee's consent
and (ii) is made in compliance with applicable laws, rules, regulations,
by-laws and policies of, and receipt of any required approvals from, any
applicable stock exchange or regulatory authorities having jurisdiction.</font></p>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">(3)</font><font color=windowtext face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Notwithstanding the foregoing, shareholder
approval shall be required to make the following amendments:</font></h3>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(a)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">increase the maximum number of Shares issuable
under the Plan, except in the case of an adjustment pursuant to Article VIII
hereof;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(b)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">increase the number of Shares that may be issued
to insiders or to any one Optionee under the Plan, in both cases except in the
case of an adjustment pursuant to to Article VIII hereof;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(c)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">allow non-employee directors of the Corporation
to be eligible for awards of Options under the Plan;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(d)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">permit any Option granted under the Plan to be
transferable or assignable other than by will or pursuant to succession laws
(estate settlements);</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(e)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">reduce the exercise price of an Option after the
Option has been granted to an Optionee or cancel any Option and substitute such
Option by a new Option with a reduced exercise price granted to the same Optionee,
except in the case of an adjustment pursuant to to Article VIII hereof;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(f)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">extend the term of an Option beyond the original
expiry date, </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">except in case of an extension due to a Black Out Period as
contemplated in</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> section 6.06(4) hereof; </font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(g)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">add cashless exercise feature payable in cash or
Shares, which does not provide for a full deduction of the number of underlying
Shares from the Plan reserve;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(h)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">add any form of financial assistance and any
amendment to a financial assistance provisions in the Plan which is more
favourable to Optionees; and</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:70.9pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-35.45pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(i)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">amend any provisionsto the amendment provisions
of the Plan.</font></h4>

<p style="margin-bottom:12.0pt;margin-left:35.45pt;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><font color=windowtext face="times new roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">In making any
amendment as described above</font><font color=windowtext face="times new roman" lang=EN-CA style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">, the Corporation shall not contravene any requirements,
norms, laws and regulations of the Toronto Stock Exchange or of any regulatory
authorities.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-GB style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;">&nbsp;</h1>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_10"></a><a name="_bclPageBorder10"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader10"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">10</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article VII</font><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-transform:uppercase;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">OPTIONS GRANTED TO PERSONS
RESIDENT IN THE UNITED STATES</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">7.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Special Rules
Applicable to Options Granted to Persons Resident in the United States</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. The provisions of this Article VII shall apply
to Option grants made to each employee of the Corporation or its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> who is resident in the United
States unless the Committee, in its discretion, determines otherwise.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">7.02</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Restriction on Exercise</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:line-through;">.</font></h2>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(1)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">Anything in this Plan to the contrary
notwithstanding, an Option shall not be exercisable, no transfer of Shares
shall be made to any Optionee, and any attempt to exercise an Option or to
transfer any such Shares shall be void and of no effect, unless and until;</font></h3>

<h4 style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(a)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">a registration statement under the U.S.
Securities Act has been duly filed and declared effective pertaining to the
Shares subject to such Option and the Shares subject to such Option have been
duly qualified under applicable United States federal or state securities or
blue sky laws; or</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(b)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">the Committee, in its sole discretion,
determines, or the Optionee, upon the request of the Committee, provides an
opinion of counsel satisfactory to the Committee, that such registration or
qualification is not required as a result of the availability of an exemption
from registration or qualification under such laws.</font></h4>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(2)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">Without limiting the generality of </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Section</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">
7.02(1) or </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">9.01,</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> if at any
time the Committee shall determine, in its sole discretion, that the listing,
registration or qualification of the Shares under any United States federal or
state law or on any stock exchange or the consent and approval of any
governmental regulatory body is necessary or desirable as a condition of, or in
connection with, delivery or purchase of such Shares pursuant to the exercise
of an Option, such Option shall not be exercised in whole or in part unless and
until such listing, registration, qualification, consent or approval shall have
been effected or obtained free of any conditions not acceptable to the
Committee.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(3)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">Each certificate for Shares
acquired upon the exercise of an Option by an employee who is resident in the
United States shall bear the legend set out in Attachment</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;"> 1,</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">which legend
may be removed in connection with a sale of such Shares that meets the
requirements of Section 7.03; provided, however, that such legend shall be
placed on any certificates for Shares returned to the Optionee as a result of
the failure to complete any such sale.</font></h3>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">7.03</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Restrictions on
Resale</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Unless the Committee
determines otherwise, in its sole discretion, employees of the Corporation or</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> its </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiaries</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> who are resident in the United
States shall covenant and agree that resales of the Shares acquired upon the
exercise of an Option shall be subject to the following restrictions:</font></h2>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(a)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">the Shares shall at no time be offered by the
Optionee to any </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> in the United States;</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;">&nbsp;</h4>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_11"></a><a name="_bclPageBorder11"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader11"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">11</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(b)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">the sale of the Shares may be made by the
Optionee or a </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> acting on his behalf only (A)
through the trading facilities of The Toronto Stock Exchange, provided that
neither the Optionee nor any </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> acting on
his behalf knows that a sale or other transaction involving the Shares has been
pre-arranged with a buyer in the United States or (B) to a buyer who, at the
time the buy order is originated, is either outside the United States or whom
the Optionee and any </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> acting on his behalf reasonably
believes to be outside the United States; and</font></h4>

<h4 style="margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(c)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">at the time of any sale described in Section
7.03(</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">b</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">) above, no </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">directed
selling efforts</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">, within the meaning of Rule 902(b)
of Regulation S under the U.S. Securities Act, have been made or are being made
by the Optionee, any affiliate, or any </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> acting on
their behalf.</font></h4>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">7.04</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Restrictions Binding on Other Persons</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. The covenants and restrictions set forth in this Article VII shall
be binding on any </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Person</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> who (i) in
accordance with the provisions of Section 6.05 acquires any rights of the
Optionee with respect to the Option or (ii) as a result of the death of the
Optionee or by gift acquires any of the Shares acquired upon exercise of the
Option.</font></h2>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article VIII</font><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-transform:uppercase;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">ADJUSTMENTS</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">8.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Subdivisions</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. In the event of any subdivision of the Shares,
at any time prior to termination of the Plan, into a greater number of Shares,
the total number of Shares available for the grant of Options under the Plan
after such subdivision shall be increased to such greater number of Shares as
equals the number of Shares that would have been received on such subdivision,
were all of the Shares allotted to the Plan and available for the grant of Options
immediately prior to such subdivision issued as fully-paid and non-assessable
Shares before such subdivision.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">8.02</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Consolidations</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. In the event of any consolidation of the
Shares, at any time prior to termination of the Plan, the total number of
Shares available for the grant of Options under the Plan after such
consolidation shall be decreased to such lesser number of Shares as equals the
number of Shares that would have been received on such consolidation, were all
of the Shares allotted to the Plan and available for the grant of Options
immediately prior to such consolidation issued and outstanding as fully-paid
and non-assessable Shares before such consolidation.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">8.03</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Reclassifications</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. In the event of any reclassification of the
Shares, at any time prior to termination of the Plan, the number of shares of
each class of shares in the capital of the Corporation available for the grant
of Options under the Plan after such reclassification shall be amended to the
number of shares of each such class as equals the number of shares of each
class that would have been received on such reclassification, were all of the
Shares allotted to the Plan and available for the grant of Options immediately
prior to such reclassification issued and outstanding as fully-paid and non-assessable
Shares prior to such reclassification.</font></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;">&nbsp;</h2>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_12"></a><a name="_bclPageBorder12"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader12"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">12</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">8.04</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Other</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> Adjustment to Outstanding Options</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:line-through;">.</font></h2>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(1)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">If the Corporation shall declare a dividend
payable in Shares, or any other event shall occur which in the judgment of the
Committee necessitates action by way of adjusting the terms of the outstanding
Options, the Committee may take any such action as in its judgment shall be
necessary to preserve the Optionee</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">'</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">s rights
substantially proportionate to the rights existing prior to such event
(including adjusting the number of Shares subject to Options or the Option
Price thereof).</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:line-through;"> </font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(2)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">If at any time the Corporation issues rights to
its shareholders to subscribe for Shares, each Optionee may, if the Committee
so decides in its discretion, be granted a further option, exercisable during
the time within which such rights may be exercised, to purchase, at the same
price as the Shares subject to such rights, a number of Shares equal to those
for which rights would have been issued to the Optionee on the Shares that are
subject to his Option if such Shares had previously been purchased by the
Optionee and retained by him.</font></h3>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">8.05</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Conclusive Judgment</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">, </font><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">etc</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">.</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> The judgment of the
Committee with respect to any matters referred to in this </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Article
VIII</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> shall be conclusive and binding upon each Optionee. Any
exercise by the Committee of its authority under this </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Article
VIII</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> is subject to the approval of the Board if required by
applicable laws and regulations or the rules, regulations, by-laws or policies
of any regulatory authority or stock exchange having jurisdiction.</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">
Any adjustment to the number of Shares that are subject to outstanding Options
pursuant to Article VIII shall not affect the number of
Shares that remain available for the grant of Options under Article IV at the
time of such adjustment.</font></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article IX</font><b><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-transform:uppercase;"><br>
</font></u></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">GOVERNMENT APPROVALS</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">9.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Necessary Approvals</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. The obligation of the Corporation to issue,
transfer and deliver Shares on the exercise of Options under the Plan is
subject to the approval of any regulatory </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">authority</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> or stock exchanges on which the
Shares are listed for trading which may be required in connection with the
authorization, issuance, transfer or delivery of such Shares by the
Corporation. If any Shares cannot be issued to any Optionee for any reason
including the failure to obtain such approval, then the obligation of the
Corporation to issue such Shares shall terminate and any Option Price paid to
the Corporation shall be returned to the Optionee.</font></h2>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article X</font><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;text-transform:uppercase;"><br>
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">MISCELLANEOUS PROVISIONS</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">10.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">No Rights to Employment</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Nothing
contained in the Plan or in any agreement evidencing Options granted under the
Plan shall confer upon any Optionee any right with respect to continuance of
employment by Corporation or any </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiary</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> thereof
or interfere in any way with the right of the Corporation or any </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Subsidiary</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">
to terminate the employment of any Optionee.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;">&nbsp;</h2>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_13"></a><a name="_bclPageBorder13"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader13"></a><DIV>


<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">- </font></u><font style="display:none;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"></font></u></font></font></u><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">13</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><u><font color=blue style="text-underline:double;"><u><font color=blue face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;"> -</font></u></font></u></p>


</DIV>
<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">10.02</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">No Representation or Warranty</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. The Corporation makes no representation or warranty as to the
future market value of any Shares issued in accordance with the provisions of
the Plan.</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;"> Also, there may be no market to sell such Shares and
there is no guarantee that any such market or other form of liquidity for the
Shares will exist in the future.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">10.03</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Use of Proceeds</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Payments received from Optionees upon the exercise of
Options shall be used for the general corporate purposes of the Corporation.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">10.04</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Plan Expenses</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. Any expenses of administering the Plan shall be borne by
the Corporation.</font></h2>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">10.05</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Interpretation</font></b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">. The Plan will be governed by and construed in accordance
with the laws of the Province of </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">Qu&#233;bec</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> and the laws of Canada applicable therein.</font></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;text-indent:0in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;text-transform:none;">Article XI</font><b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;text-transform:uppercase;"><br>
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;text-transform:uppercase;">EFFECTIVE DATE</font></b></h1>

<h2 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">11.01</font></b><b><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Effective Date.</font></b></h2>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(1)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">The Plan became effective on March 7, 1991.
This Amended and Restated CAE Inc. Employee
Stock Option Plan will</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> become effective when it is adopted by the Board</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">
and</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> approved by the shareholders of the Corporation, by a
majority of the votes cast on the question, at the next annual meeting of
shareholders of the Corporation or any adjournment thereof </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">and
when</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;"> the necessary regulatory and stock exchange approvals are </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">obtained.</font></h3>

<h3 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">(2)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">No Incentive Stock Option may be granted after
the tenth anniversary of the earlier of (a) the date the Plan is adopted (or
the date any amendment is adopted to increase the aggregate number of Shares
issuable under the Plan or to change the employees eligible to receive Options,
which amendment is described and considered a new plan under Proposed Treas.
Reg. &#167;1.422-2(b)(</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">2</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">)(</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:0pt;text-decoration:none;">iii</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;font-weight:normal;">) of the U.S.
Department of Treasury) by the Board, or (b) the date such Plan (or such
amendment) is approved by the shareholders.</font></h3>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">ORIGINALLY adopted by the Board of
Directors of CAE Inc. on May 9, 1990 and amended February 4, 1994, June 17,
1998, May 9, </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">2001,</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> May 11, </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">2004,
May 28, 2007, June 28, 2007, February 14, 2008, June 18, 2008, August 13, 2008,
November 9, 2010, May 28, 2012, and June 15, 2016.</font></p>









</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_14"></a><a name="_bclPageBorder14"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">ATTACHMENT
1</font></b></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE INC. EMPLOYEE STOCK
OPTION PLAN</font></b></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">LEGEND</font></b></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Each certificate for
Shares acquired upon the exercise of an Option by a United States resident
shall bear the following legend:</font></p>

<p style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The Securities evidenced by this certificate have not been
registered under the United States Securities Act of 1933, as amended (the </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Act</font></b><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">). These
securities may not be sold to a United States </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">Person</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> (within the meaning of Regulation S
under the Act), except in compliance with the registration requirements of the
Act or an exemption therefrom. These Securities are subject to manner of sale
restrictions which are set forth in the Issuer&#8217;s Employee Stock Option Plan,
the relevant provisions of which are available for inspection during business
hours at the Issuer</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">'</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">s principal business office.</font></p>

<p style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The
securities represented by this certificate are listed on </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">the</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> Toronto Stock Exchange and the New York Stock Exchange;
however the said securities cannot be traded through the facilities of such
Exchanges since they are not freely transferable, and consequently any
certificate representing such securities is not </font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">good
delivery</font><font color=windowtext face="Times New Roman" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-decoration:none;">&quot;</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> in
settlement of transactions on such Exchanges.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>




</DIV>
</BODY>

</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
