Many listed issuers have adopted trading policies whereby they are under self imposed black out periods from time to time, during which officers, directors and employees cannot exercise options or trade in securities of the issuer.

TSX will accept plans providing an expiration date that is “conditional” upon expiration of an award during a black out period. Arrangements may provide that the expiration of the term of an option may be the later of a fixed expiration date (as provided in the plan or the agreement), or a date shortly after the fixed expiration date should such date fall within, or immediately after, a black out period. Where an award expires immediately after the black out period ends, the extension should be reduced by the number of days between the expiration date and the end of the black out period. For example, options set to expire two days after a listed issuer has lifted its trading restrictions, would expire eight days after the end of the trading restriction where the plan provides for a 10-day extension.

TSX will accept black out expiration periods if:

1. the conditional expiry date is only available when the black out period is self imposed by the listed issuer (i.e. it should not be available if the listed issuer or its insiders are subject to a cease trade order);

2. the extension of the term upon the end of black out period is reasonable (i.e. five to ten business days), clearly defined in the plan and not subject to board discretion; and

3. the conditional expiry date is available to all eligible participants under the plan, under the same terms and conditions.