Exhibit 10.8

 

	
Executive Officer
    	
Grant No. XX-   -PS-TSR-1
    


 

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

 

PERFORMANCE SHARE AGREEMENT

(Total Shareholder Return Vesting)

 

Royal Gold, Inc., a Delaware corporation (the “Company”), hereby grants performance shares relating to shares of its common stock, $.01 par value (the “Stock”), to the individual named below as the Holder, subject to the vesting conditions set forth in this cover page and the attachment (the “Agreement”).  Additional terms and conditions of the grant are set forth in this cover sheet, in the attachment and in the Royal Gold, Inc. 2004 Omnibus Long-Term Incentive Plan (the “Plan”).

 

Grant Date:

 

Name of Holder:

 

Holder’s Social Security Number:

 

Number of Performance Shares Covered by Grant:

 

	
Three-year   TSR Shares:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Target:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maximum:
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

	
One-year   TSR Shares:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Target:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maximum:
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

This Performance Share grant is subject to all of the terms and conditions described in this Agreement and in the Plan, a copy of which is available for your review upon request to the Secretary.  You should carefully review the Plan, and the Plan will control in the event any provision of this Agreement should appear to be inconsistent with the terms of the Plan.

 

	
Grantee:
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
Company:
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    


 

Attachment

 

This is not a stock certificate or a negotiable instrument.

 











 

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

 

PERFORMANCE SHARE AGREEMENT

 

	
Performance Shares — Number and Transferability
    	
 
    	
This grant is an award of performance shares in the   number of shares set forth on the cover sheet, subject to the vesting conditions   described below (the “Performance Shares”). The purchase price for the   Performance Shares is deemed paid by your services to the Company. The number   of Performance Shares, if any, that may be issued pursuant to the terms of   this Agreement shall be calculated based on the attainment of specified   performance goals, as set forth on the attached Exhibit A. The   maximum number of Performance Shares in which you may vest is the number of   shares covered by the award on the cover page, however you may vest in a   lesser number of Performance Shares (or no Performance Shares) if the   specified performance goals are not sufficiently attained. Your Performance   Shares may not be transferred, assigned, pledged or hypothecated, whether by   operation of law or otherwise, nor may the Performance Shares be made subject   to execution, attachment or similar process.
    
	
 
    	
 
    	
 
    
	
Vesting
    	
 
    	
You will vest in the number of Performance Shares,   if any, determined in accordance with the terms of Exhibit A   following the availability of financial data upon which vesting can be   calculated, but in no event later than       ;   provided that, except as otherwise set forth in this Agreement, you continue   in continuous Service from the Grant Date to    .
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Except as otherwise provided in this Agreement, no   additional Performance Shares will vest after your Service has terminated for   any reason.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
All Performance Shares that have not vested as a   result of performance or otherwise as a result of the provisions of this   Agreement on or prior to the end of fiscal year 2018 will be forfeited.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Compensation, Nominating and Governance   Committee (the “Committee”) has the authority to certify whether the vesting   thresholds set forth in Exhibit A have been achieved within the meaning   of Treasury Regulations, Section 1.162-27(e)(5). Any such determinations   shall be made in the sole discretion of the Committee. The resulting   aggregate number of vested Performance Shares will be rounded down to the nearest   whole number of Performance Shares. You may not vest in more than the maximum   number of Performance Shares set forth on the cover sheet.
    
	
 
    	
 
    	
 
    
	
Termination without Cause, Good Reason or   Non-Renewal of Employment Agreement; Change of Control
    	
 
    	
Notwithstanding the foregoing vesting rules, if   (i) the Company terminates your Service or your Employment Agreement   without “Cause” (as defined in your Employment Agreement) during the term of   your Employment Agreement, (ii) you terminate your Service or your Employment   Agreement for “Good Reason” (as defined in your Employment Agreement) during   the term of your Employment Agreement, or (iii) your Service is   terminated upon the Company’s election not to renew the term for one of the   four successive one-year renewal terms pursuant to Section 2 of your   Employment Agreement, and any such termination does not occur within the   period beginning ninety (90) days prior to and ending two (2) years   after the occurrence of a “Change of Control” (as defined in your Employment   Agreement), then, you will be eligible to vest in a prorated portion of the   Performance Shares to which you would be entitled based on the Company’s   performance through the last day of the Company’s fiscal year in which your   Service is terminated and determined in accordance with the Company’s   practices as in effect at such time. Once the Committee has determined the   degree to which the performance criteria through the last day of the   Company’s fiscal year in which your Service is terminated has been satisfied,   your prorated vesting portion will be determined by multiplying the number of   Performance Shares that would otherwise vest based on Company performance by   a fraction, where the numerator is the number of days you remained in Service   from the Grant Date through the date of your termination of Service and the   denominator is the number of days from the Grant Date to the date the
    


 











 

	
 
    	
 
    	
performance criteria were satisfied. The resulting   aggregate number of vested shares will be rounded down to the nearest whole   number, and you cannot vest in more than the maximum number of shares set   forth on the cover sheet.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If (i) the Company terminates your Service or   your Employment Agreement without “Cause” (as defined in your Employment Agreement)   during the term of your Employment Agreement, (ii) you terminate your   Service or your Employment Agreement for “Good Reason” (as defined in your   Employment Agreement) during the term of your Employment Agreement, or   (iii) your Service is terminated upon the Company’s election not to   renew the term for one of the four successive one-year renewal terms pursuant   to Section 2 of your Employment Agreement, and any such termination   occurs within the period beginning ninety (90) days prior to and ending two   (2) years after the occurrence of a “Change of Control” (as defined in   your Employment Agreement), then, you will be one hundred percent (100%)   vested in the maximum number of Performance Shares set forth on the cover   sheet as of the date of your termination.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
As used herein, the term “Employment Agreement”   shall mean that certain Employment Agreement between you and the Company   dated                  ,   as the same may be amended after the date hereof.
    
	
 
    	
 
    	
 
    
	
Delivery of Stock Pursuant to Vested Performance   Shares
    	
 
    	
Unless an earlier delivery date is specified below,   a certificate for all of the shares of Stock represented by the vested   Performance Shares (which shares of Stock will be rounded down to the nearest   number of whole shares) will be delivered to you as soon as practicable   following the end of fiscal year      , but in   no event later than      , provided that, if   such date occurs during a period in which you are (i) subject to a   lock-up agreement restricting your ability to sell shares of Stock in the   open market, or (ii) restricted from selling shares of Stock in the open   market because you are not then eligible to sell under the Company’s insider   trading plan or similar plan as then in effect (whether because a trading   window is not open or you are otherwise restricted from trading), vesting in   such shares of Stock will be delayed until the earlier of (A) the first   date on which you are no longer prohibited from selling shares of Stock due   to a lock-up agreement or insider trading or similar plan restriction   applicable to you or (B) either the date of your involuntary termination   of your Service by the Company or a Subsidiary, your death or your Disability   (the earlier of the dates in clause (A) and (B) shall be the   “Deferred Vesting Date”), and provided, further, that you have been   continuously in Service to the Company or a Subsidiary from the Grant Date   until the Deferred Vesting Date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If the Deferred Vesting Date is determined pursuant   to clause (B) above, you are prohibited from selling shares of Stock due   to a lock-up agreement or insider trading or similar plan restriction   applicable to you on the Deferred Vesting Date and you meet the continuous   Service requirements, then, to the extent legally permitted under the General   Corporation Law of the State of Delaware and other applicable law, you may   elect to satisfy any obligations to pay any Federal, state, or local taxes of   any kind required by law to be withheld with respect to the vesting of or   other lapse of restrictions applicable to such an Award, in whole or in part,   (x) by causing the Company or its Affiliate to withhold shares of Stock   otherwise issuable to you or (y) by delivering to the Company or its   Affiliate shares of Stock already owned by you. The shares of Stock so delivered   or withheld shall have an aggregate Fair Market Value equal to such   withholding obligations. In no case shall the shares withheld or delivered   exceed the minimum required Federal, state, and FICA statutory withholding   rates. The Fair Market Value of the shares of Stock used to satisfy such   withholding obligation shall be determined by the Company or its Affiliate as   of the date that the amount of tax to be withheld is to be determined. If you   make an election pursuant to this paragraph, you may satisfy your withholding   obligation only with shares of Stock that are not subject to any repurchase,   forfeiture, unfulfilled vesting, or other similar requirements.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding the foregoing, if you are terminated   under circumstances entitling you to vest in Performance Shares even though   you do not remain in Service through June
    


 

2











 

	
 
    	
 
    	
30,   , a certificate for all of the   shares of Stock represented by the vested Performance Shares (which shares of   Stock will be rounded down to the nearest number of whole shares) will be   delivered to you as soon as practicable following the end of each applicable   fiscal year, but in no event later than September 30 of each applicable   fiscal year.
    
	
 
    	
 
    	
 
    
	
Forfeiture of Unvested Performance Shares
    	
 
    	
In the event that your Service terminates for any   reason, except as provided above in the section entitled “Termination without   Cause, Good Reason or Non-Renewal of Employment Agreement; Change of Control,”   or in connection with a Deferred Vesting Date, you will forfeit all of the   Performance Shares that have not yet vested.
    
	
 
    	
 
    	
 
    
	
Withholding Taxes
    	
 
    	
You agree, as a condition of this grant, that you   will make acceptable arrangements to pay any withholding or other taxes that   may be due as a result of vesting in Performance Shares or your acquisition   of Stock under this grant. In the event that the Company determines that any   federal, state, local or foreign tax or withholding payment is required   relating to this grant, the Company will have the right to: (i) require   such payments from you; (ii) withhold such amounts from other payments   due to you from the Company or any Affiliate; or (iii) cause an   immediate forfeiture of shares of Stock subject to the Performance Shares   granted pursuant to this Agreement in an amount equal to the withholding or   other taxes due.
    
	
 
    	
 
    	
 
    
	
Retention Rights
    	
 
    	
Neither the Performance Shares nor this Agreement   give you the right to be retained by the Company (or any parent, Subsidiaries   or Affiliates) in any capacity. The Company (and any parent, Subsidiaries or   Affiliates) reserve the right to terminate your Service at any time and for   any reason.
    
	
 
    	
 
    	
 
    
	
Forfeiture of Rights
    	
 
    	
If you should take actions in competition with the   Company, the Company shall have the right to cause a forfeiture of your   rights, including, but not limited to: (i) a forfeiture of any   outstanding unvested Performance Shares, and (ii) with respect to the   period commencing twelve (12) months prior to your termination of Service   with the Company (A) a forfeiture of any proceeds received upon a sale   of shares acquired by you upon vesting of Performance Shares or (B) a   forfeiture of any shares of Stock acquired by you upon vesting of the   Performance Shares. Unless otherwise specified in an employment or other   agreement between the Company and you, you take actions in competition with   the Company if you directly or indirectly, own, manage, operate, join or   control, or participate in the ownership, management, operation or control   of, or are a proprietor, director, officer, stockholder, member, partner or   an employee or agent of, or a consultant to any business, firm, corporation,   partnership or other entity that is in the business of creating, financing,   acquiring, investing in and managing precious metal royalties, precious metal   streams and similar interests. Under the prior sentence, ownership of less   than 1% of the securities of a public company shall not be treated as an   action in competition with the Company.
    
	
 
    	
 
    	
 
    
	
Shareholder Rights
    	
 
    	
You, or your estate or heirs, have no rights as a   shareholder of the Company until a certificate for shares of Stock relating   to the vested Performance Shares has been issued (or an appropriate book   entry has been made). No adjustments are made for dividends or other rights   if the applicable record date occurs before your stock certificate is issued   (or an appropriate book entry has been made), except as described in the   Plan.
    
	
 
    	
 
    	
 
    
	
Adjustments
    	
 
    	
In the event of a stock split, a stock dividend or a   similar change in the Stock, the number of Performance Shares covered by this   grant shall be adjusted (and rounded down to the nearest whole number) if   required pursuant to the Plan. Performance Shares shall be subject to the   terms of the agreement of merger, liquidation or reorganization in the event   the Company is subject to such corporate activity.
    
	
 
    	
 
    	
 
    
	
Applicable Law
    	
 
    	
This Agreement will be interpreted and enforced   under the laws of the State of Delaware, other than any conflicts or choice   of law, rule or principle that might otherwise refer
    


 

3











 

	
 
    	
 
    	
construction or interpretation of this Agreement to   the substantive law of another jurisdiction.
    
	
 
    	
 
    	
 
    
	
Section 409A
    	
 
    	
It is intended that this Agreement comply with   Section 409A of the Internal Revenue Code (“Section 409A”) to the   extent subject thereto, and, accordingly, to the maximum extent permitted,   the Agreement will be interpreted and administered to be in compliance with   Section 409A. To the extent that the Company determines that you would   be subject to the additional taxes or penalties imposed on certain   nonqualified deferred compensation plans pursuant to Section 409A as a   result of any provision of this Agreement, such provision shall be deemed   amended to the minimum extent necessary to avoid application of such   additional taxes or penalties. The nature of any such amendment shall be   determined by the Company. Notwithstanding anything to the contrary in this   Agreement or the Plan, to the extent required to avoid accelerated taxation   and penalties under Section 409A, amounts that would otherwise be   payable and benefits that would otherwise be provided pursuant to this   Agreement during the six-month period immediately following your “separation   from service” (as defined for purposes of Section 409A, a “Separation   from Service”) will instead be paid on the first payroll date after the   six-month anniversary of your Separation from Service (or your death, if   earlier). Notwithstanding anything to the contrary in this Agreement, for   purposes of any provision of this Agreement providing for the settlement of   any shares of Stock upon or following a termination of employment or a   termination of Service that are considered “deferred compensation” under   Section 409A, references to your “termination of employment” or   “termination of Service” (and corollary terms) with the Company shall be   construed to refer to your Separation from Service. Each installment of   Performance Shares that vests under this Agreement (if there is more than one   installment) will be considered one of a series of separate payments for   purposes of Section 409A.
    
	
 
    	
 
    	
 
    
	
Consent to Electronic Delivery
    	
 
    	
The Company may choose to deliver certain statutory   materials relating to the Plan in electronic form. By accepting this grant   you agree that the Company may deliver the Plan prospectus and the Company’s   annual report to you in an electronic format. If at any time you would prefer   to receive paper copies of these documents, as you are entitled to, the   Company would be pleased to provide copies. Please contact the Secretary at   (303) 573-1660 to request paper copies of these documents.
    
	
 
    	
 
    	
 
    
	
The Plan
    	
 
    	
The text of the Plan is incorporated in this   Agreement by reference. Certain capitalized terms used in this Agreement are   defined in the Plan, and have the meaning set forth in the Plan.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
This Agreement and the Plan constitute the entire   understanding between you and the Company regarding the Performance Shares.   Any prior agreements, commitments or negotiations concerning the Performance   Shares are superseded.
    
	
 
    	
 
    	
 
    
	
Stock Ownership Requirements
    	
 
    	
You are required to continue to hold an aggregate of   fifty percent (50%) of the (50%) of the shares of Stock acquired by you   pursuant to this Performance Share grant together with all other shares of   Stock acquired by you pursuant to any other performance share grant made   under the Plan (such 50% to be determined after reducing the shares of Stock   covered by this grant and all other performance share grants made to you   under the Plan by the number of shares of Stock equal in value to the amount   required to be withheld to pay taxes in connection with this grant and such   other performance share grants) until the number of shares of Stock owned by   you equals or exceeds XX. If the number of shares of Stock owned by you   exceeds XX, you may dispose of the shares of Stock acquired pursuant to this   Performance Share grant as long as you continue to own at least XX shares of   Stock after the disposition.
    


 

By signing the cover sheet of this Agreement, you acknowledge that you have received, read and understand the Plan and this Agreement, and agree to abide by and be bound by their terms and conditions.

 

4











 

Grant No:  KA-15-PS-TSR-1

 

Exhibit A

 

One-half of the Performance Shares covered by this Agreement are eligible to vest based on the degree to which a specified three-year TSR metric is attained (“Three-year TSR Shares”), and one-half of the Performance Shares covered by this Agreement are eligible to vest based on the degree to which a specified one-year TSR metric is attained (“One-year TSR Shares”), in each case by linear interpolation between the measurement points set forth below. You cannot vest in more than the maximum number of shares set forth on the cover sheet.

 

For purposes of this Agreement, “TSR” shall mean the percentage change (positive or negative) in the closing price of the Stock from the commencement of the applicable fiscal year to the last day of the applicable performance period, determined by dividing (i) the difference obtained by subtracting (A) the closing price of the Stock at the commencement of the applicable fiscal year, from (B) the closing price of the Stock on the last day of the applicable performance period, plus all dividends paid on a share of Stock during the applicable period, by (ii) the closing price of the Stock at the commencement of the applicable fiscal year.

 

For purposes of this Agreement, “Constituents” shall mean the constituents of the Market Vectors Gold Miners ETF (GDX) on the relevant measurement date.

 

Three-year TSR Shares

 

·      No Three-year TSR Shares shall be eligible to vest unless the Company’s three-year TSR for the period commencing July 1,      , ranks at or above the threshold       th percent rank of the TSRs of the Constituents on June 30,      ;

 

·      Without duplication of awards associated with attainment of greater TSR percent rank, an amount of Performance Shares equal to the target number of Three-year TSR Shares shall be eligible to vest if the Company’s three-year TSR for the period commencing July 1,      , ranks at the target     th percent rank of the TSRs of the Constituents on June 30,      ; and

 

·      An amount of Performance Shares equal to the maximum number of Three-year TSR Shares shall be eligible to vest if the Company’s three-year TSR for the period commencing July 1,      ranks at the maximum      th percent rank of the TSRs of the Constituents on June 30,      .

 

One-year TSR Shares

 

·      No One-year TSR Shares shall be eligible to vest unless the Company’s one-year TSR ranks at or above the threshold      th percent rank of the TSRs of the Constituents for the periods ending on the following dates: June 30,      , June 30,      , or June 30,      ;

 

·      Without duplication of awards associated with attainment of greater TSR percent rank an amount of Performance Shares equal to one-third of the target number of One-year TSR Shares shall be eligible to vest if the Company’s one-year TSR ranks at the target     th percent rank of the TSRs of the Constituents for any of the periods ending on the following dates: June 30,      , June 30,      , or June 30,      ; and

 

·      An amount of Performance Shares equal to one-third of the maximum number of One-year TSR Shares shall be eligible to vest if the Company’s one-year TSR ranks at the maximum      th percent rank of the TSRs of the Constituents for any of the periods ending on the following dates: June 30,      , June 30,       , or June 30,      .