Document:

GDLR Ex 10.1 10.27.17

		

			Exhibit 10.1

		

		
			option AGREEMENT
		

		
			Between
		

		
			Vista Gold Corp., Minera Gold Stake Holdings Corp., Minera Gold Stake, S.A. De C.V. and GRANGES INC.
		

		
			and
		

		
			MINERA ALAMOS INC. AND MINERA ALAMOS DE SONORA S.A. DE C.V. 
		

		
			 
		

		
			October 23, 2017
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			Table of Contents
		

		
			 - INTERPRETATION2
		

		
			Definitions2 
		

		
			Certain Additional Rules of Interpretation8 
		

		
			Appendices8 
		

		
			Meaning of “including”, etc.8 
		

		
			Governing Law8 
		

		
			Arbitration9 
		

		
			Severability9 
		

		
			 – REPRESENTATIONS OF THE PARTIES9 
		

		
			Representations and Warranties of Alamos9 
		

		
			Representations and Warranties of the Vista Companies10 
		

		
			Acknowledgements14 
		

		
			Survival14 
		

		
			 – GRANT OF OPTION AND EXERCISE REQUIREMENTS14 
		

		
			Grant of Option14 
		

		
			Commencement of the Option14 
		

		
			Maintenance of the Option (Option Payments)15 
		

		
			Purchase Price Payment15 
		

		
			Payments Non Refundable15 
		

		
			Holding Obligations15 
		

		
			Exercise of Option16 
		

		
			Closing Transaction Matters16 
		

		
			 -BACK-IN RIGHT17 
		

		
			Description and Exercise of Back-In Right17 
		

		
			Failure to Elect18 
		

		
			 - ROYALTY18 
		

		
			Royalties18 
		

		
			 – ADDITIONAL COVENANTS19 
		

		
			Covenants of Alamos During the Option Period19 
		

		
			Covenants of MGS During the Option Period20 
		

		
			Additional Covenants22 
		

		
			 – PROJECT MANAGEMENT PROGRAM, FUNDING AND MANAGEMENT DURING THE OPTION PERIOD23 
		

		
			Project Management Program and Funding of Alamos Mexico During the Option Period23 
		

		
			Rights of Operator24 
		

		
			Maintenance of Company Goodwill24 
		

		
			Access25 
		

		
			Reports and Inspection25 
		

		
			 – ACQUISITIONS IN AREA OF INTEREST25 
		

		
			Requirement following Acquisition25 
		

		
			Notice of Acquisition25 
		

		
			Election to Include26 
		

		
			Further Assurances26 
		

		
			Failure to Elect to Include26 
		

		
			Best Efforts26 
		

		
			Non-compliance27 
		

		
			Other Business Opportunities27 
		

		
			 – CONFIDENTIALITY AND PUBLIC ANNOUNCEMENTS27 
		

		
			General27 
		

		
			Exceptions27 
		

		
			Duration of Confidentiality28 
		

		
			 – INDEMNITY29 
		

		
			Indemnification of Vista29 
		

		
			Indemnification of Alamos29 
		

		
			 – COMPLIANCE WITH POLICY ON INTERNATIONAL BUSINESS CONDUCT30 
		

		
			Compliance30 
		

		
			 – TERMINATION30 
		

		
			Termination30 
		

		
			Right to Cure30 
		

		
			Maintenance Costs31 
		

		
			Delivery of Data31 
		

		
			Removal of Encumbrances31 
		

		
			Removal of Buildings and Environmental Matters31 
		

		
			 – GENERAL PROVISIONS32 
		

		
			Notices32 
		

		
			Assignment and Enurement33 
		

		
			Relationship of the Parties33 
		

		
			Waiver33 
		

		
			Amendments34 
		

		
			Force Majeure34 
		

		
			Further Assurances34 
		

		
			Survival of Terms and Conditions34 
		

		
			No Third Party Beneficiary34 
		

		
			Entire Agreement35 
		

		
			Counterparts35 
		

		
			Time of Essence35 
		

		
			
		

		
			Appendices
		

		
			Appendix A – Mining Concessions description including Underlying Royalties
		

		
			Appendix B – Exploration Agreement 
		

		
			Appendix C – Joint Venture Agreement 
		

		
			Appendix D – Underground Royalty Agreement
		

		
			Appendix E – Open-Pit Royalty Agreement 
		

		
			Appendix F – Maintenance Costs
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			-i-

		

		

			

		

			 

		

			 

		

			 

		

			 

 

		

		
			OPTION AGREEMENT
		

		
			This Option Agreement (this “Agreement”) is made this 23rd day of October, 2017 (the “Effective Date”), between:
		

		
			Vista Gold Corp., a corporation existing under the laws of the Province of British Columbia (“Vista”)
		

		
			and
		

		
			Minera Gold Stake, S.A. de C.V., a corporation existing under the laws of the United Mexican States (“MGS”)
		

		
			and
		

		
			Minera Gold Stake Holdings Corp., a corporation existing under the laws of British Columbia (“MGS Canada”)
		

		
			and
		

		
			Granges Inc., a corporation existing under the laws of British Columbia (“Granges”)
		

		
			and
		

		
			Minera Alamos Inc., a corporation existing under the laws of Ontario (“Alamos”)
		

		
			and
		

		
			Minera Alamos de Sonora S.A. de C.V., a corporation existing under the laws of the United Mexican States (“Alamos Mexico”)
		

		
			RECITALS:
		

			
	
			
				 A.
			

			
	
			
			Vista, MGS Canada and Granges together own 100% of the outstanding Common Shares of MGS;

			
	
			
				 B.
			

			
	
			
			MGS’ principal assets are the mining concessions integrating the Guadalupe de los Reyes project in Sinaloa, Mexico, as more particularly described on Appendix A; 

			
	
			
				 C.
			

			
	
			
			Vista, MGS Canada and Granges have agreed to grant Alamos an option to acquire, directly or indirectly, including through a subsidiary owned by Vista, 100% of the issued and outstanding Common Shares of MGS, on the terms and conditions set out in this Agreement; 

			
	
			
				 D.
			

			
	
			
			Subject to the terms and conditions contained herein, the Option can be exercised (in whole and not in part) by Alamos before the end of the Option Period by Alamos making the payments set out herein and fulfilling the Holding Obligations; and

		
			

		 

		

			

		

			 

		

			 1

 

		

			
	
			
				 E.
			

			
	
			
			The Parties are entering into this Agreement to document the rights and obligations that they are each hereby acquiring and/or assuming.

		
			NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the Parties hereby agree as follows:
		

			
	
			
				Article 1
			 - INTERPRETATION

			
	
			
				 Section 1.1
			

			
	
			
			Definitions

		
			In this Agreement, any capitalized terms used herein not otherwise defined with the first reference to such term or in the Appendices, shall have the following meanings:  
		

			
	
			
				 (a)
			

			
	
			
			“Affiliate” means any Person related to another Person in such a way that either one of such Persons directly or indirectly Controls, is Controlled by, or is under common Control with, the other and includes a partnership over which a Person exercises Control and a joint venture in which a Person holds at least a 50% voting and equity interest.

			
	
			
				 (b)
			

			
	
			
			“Agents” means consultants (including financial and legal advisors), servants, employees, agents, Affiliates, workmen, contractors and subcontractors.

			
	
			
				 (c)
			

			
	
			
			“Agreement” when referred to as “this Agreement”, means this Option Agreement, as it may be modified or amended from time to time, together with the Appendices attached hereto.

			
	
			
				 (d)
			

			
	
			
			“Alamos” means Minera Alamos Inc.

			
	
			
				 (e)
			

			
	
			
			“Alamos Companies” means Alamos and Alamos Mexico.

			
	
			
				 (f)
			

			
	
			
			“Alamos Mexico” means Minera Alamos de Sonora S.A. de C.V.

			
	
			
				 (g)
			

			
	
			
			“Applicable Laws” means any applicable law, statute, ordinance, decree, requirement, order, treaty, proclamation, convention, rule or regulation (or interpretation of any of the foregoing) of any Governmental Authority, any agreement (including any development agreement) with any Governmental Authority, and the terms of any governmental Authorization.

			
	
			
				 (h)
			

			
	
			
			“Area of Interest” means the area that is within two kilometres of the outer boundary of the mining concessions integrating the Project.

			
	
			
				 (i)
			

			
	
			
			“Authorizations” means any order, permit, approval, waiver, licence or similar authorization of any Governmental Authority having jurisdiction over MGS or the Project, including those necessary for carrying out exploration, appraisal of discovered deposits and production of mineral products therefrom, and any bond, deposit or other security required by any order, permit, approval, waiver, licence or similar authorization.

			
	
			
				 (j)
			

			
	
			
			“Board” means the board of directors of MGS, as from time to time elected or appointed in accordance with Applicable Laws, this Agreement and MGS’ bylaws. 

		
			

		 

		

			

		

			 

		

			 2

 

		

			
	
			
				 (k)
			

			
	
			
			“Business Days” means Monday to Friday of each week, local time, except such days designated as statutory holidays in Toronto, Vancouver, or Mexico City.

			
	
			
				 (l)
			

			
	
			
			“Claim” means any claim, demand, action, cause of action, damage, loss, cost, liability or expense, including reasonable legal fees.

			
	
			
				 (m)
			

			
	
			
			“Closing” means completion of the matters set out in ‎Section 3.8 and any ancillary matters.

			
	
			
				 (n)
			

			
	
			
			“Closing Date” means the date of Closing as contemplated by ‎Section 3.7.

			
	
			
				 (o)
			

			
	
			
			“Closing Transactions” has the meaning ascribed thereto in ‎Section 3.8.

			
	
			
				 (p)
			

			
	
			
			“Common Shares” means the 664,893 ordinary, nominative, non-par value voting shares, with a contribution value of $100 pesos Mexican currency per share, representing 100% of the outstanding capital stock of MGS and of which, as at the date of this Agreement, Vista owns 664,393 shares (99.9248%), MGS Canada owns 499 shares (0.0750%) and Granges owns 1 share (0.00015%). 

			
	
			
				 (q)
			

			
	
			
			“Confidential Information” means all Technical Information and any other information concerning any matters affecting or relating to the business, the Project, operations, programs, assets, results or prospects of MGS, including information regarding plans, budgets, processes, results of exploration, and other data, provided however, that Confidential Information, as used in this Agreement, shall not include any information, data, knowledge or know how that:

			
	
			
				 (i)
			

			
	
			
			is in the possession of Alamos or one of its Affiliates prior to its disclosure by the information provider;

			
	
			
				 (ii)
			

			
	
			
			is in the public domain prior to disclosure to Alamos;

			
	
			
				 (iii)
			

			
	
			
			lawfully enters the public domain after disclosure to Alamos through no violation of this Agreement by Alamos, its Affiliates or representatives;

			
	
			
				 (iv)
			

			
	
			
			is received by Alamos or its Affiliates from a third party that is not bound by an obligation of confidentiality; or

			
	
			
				 (v)
			

			
	
			
			is independently developed by Alamos or its Affiliates without the use of Confidential Information.

			
	
			
				 (r)
			

			
	
			
			“Control or Controlled” used as a verb means, when used with respect to an entity, the ability, directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity through: (i) the legal or beneficial ownership of voting securities or membership interests; (ii) the right to appoint managers, directors or corporate management; (iii) contract; (iv) an agreement; (v) a voting trust; or (vi) otherwise; and, when used with respect to a natural person, means the actual or legal ability to control the actions of another, through family relationship, agency, contract or 

		 

		

			

		

			 

		

			 3

 

	otherwise.  “Control” used as a noun means an interest which gives the holder the ability to exercise any of the foregoing powers.

			
	
			
				 (s)
			

			
	
			
			“Dollars” or “$” means currency of the United States of America, unless otherwise stated.

			
	
			
				 (t)
			

			
	
			
			“Effective Date” has the meaning ascribed thereto on page one of this Agreement.

			
	
			
				 (u)
			

			
	
			
			“Encumbrance” or “Encumbrances” means mortgages, deeds of trust, security interests, pledges, liens, royalties, overriding royalty interests, preferential purchase rights, or other encumbrances or burdens of any nature whatsoever whether imposed by contract or operation of Applicable Laws, but for greater certainty the term Encumbrance when used herein does not include the Back-In Right.

			
	
			
				 (v)
			

			
	
			
			“Environment” means the system of natural and artificial or man induced elements such as air (including air in buildings, natural or made-made structures below or above ground), water (including water under or within land or in drains and sewers and coastal and inland waters and water bodies or recipient bodies) and land (including soil whether at or below surface) wetland, sediment, soil or subsurface strata, and natural resources and the environment as defined in any Environmental Laws.

			
	
			
				 (w)
			

			
	
			
			“Environmental Laws” means all laws relating to the protection of the Environment, including air, soil, surface water, ground water, forest, flora, wildlife, or to public health and safety, and includes those Environmental Laws that regulate, ascribe, provide for or pertain to liabilities or obligations in relation to the existence, use, production, manufacture, processing, distribution, transport, handling, storage, removal, treatment, disposal, emission, discharge, migration, seepage, leakage, spillage or release of Hazardous Substances or the construction, alteration, use or operation, demolition or decommissioning of any facilities, mining projects, or other real or personal property.

			
	
			
				 (x)
			

			
	
			
			“Exercise Notice” has the meaning ascribed thereto in ‎Section 3.7.  

			
	
			
				 (y)
			

			
	
			
			“Exploration” means all activities related to ascertaining the existence, location, quantity, quality or commercial value of deposits of Ores and minerals on, in or under the mining lots covered by the mining concessions forming part of the Project.

			
	
			
				 (z)
			

			
	
			
			“Financial Statements” has the meaning ascribed thereto in ‎Section 2.2(p).

			
	
			
				 (aa)
			

			
	
			
			“Governmental Authority” means any federal, state or local government or authority, quasi government authority, fiscal or judicial body, government or self-regulatory organization, commission, board, tribunal, organization, or any regulatory, administrative or other agency, or any political or other subdivision, department, or branch of any of the foregoing.

			
	
			
				 (bb)
			

			
	
			
			“Granges” means Granges Inc. 

			
	
			
				 (cc)
			

			
	
			
			“Hazardous Substance” means any waste, substance or material whether in a solid, liquid or gaseous form or any constituent thereof that is of a corrosive, reactive, 

		 

		

			

		

			 

		

			 4

 

	explosive, toxic, flammable or biologically infectious nature, or is capable of causing harm to or has a deleterious effect on the Environment or human health or that has been mixed with substances or materials with such characteristics which causes or is capable of causing harm to or has a deleterious effect on the Environment or human health or any other substances currently regulated or defined as hazardous or harmful in any Environmental Laws.

			
	
			
				 (dd)
			

			
	
			
			“Knowledge”  means the actual knowledge of the current executive officers of Vista and/or MGS, as the case may be.

			
	
			
				 (ee)
			

			
	
			
			“Maintenance Costs” means the costs and expenses to undertake MGS’ obligations to maintain the mining concessions of the Project in good standing and current in the fulfillment of legal obligations pursuant to the Mexican laws and the standards established in this Agreement, including all necessary expenditures for Exploration and minimum annual expenditures as provided for in the Mexican Mining Law and its Regulations, duties on mining (a.k.a. mining taxes) as provided for in the Mexican Federal Law of Duties, holding costs, rentals, taxes, fees, requirements, reports, and any other legal obligations and related professional fees that must be paid or otherwise complied with in order to maintain the Project and to maintain title to the mining concessions of the Project in good standing.

			
	
			
				 (ff)
			

			
	
			
			“Material Adverse Effect” means, in respect of the Project, any change, effect, event, circumstance, fact or occurrence that individually or in the aggregate with other such changes, effects, events, circumstances, facts or occurrences, is or would reasonably be expected to be, material and adverse to the Project or to the business, financial condition, assets, liabilities or results of operation of MGS, except any change, effect, event, circumstance, fact or occurrence resulting from or relating to: (i) changes in general, economic or financial conditions; (ii) any natural disaster (provided that it does not have a materially disproportionate effect on the Project relative to other comparable projects); (iii) changes in Applicable Laws or accounting rules or principles; (iv) changes affecting the mining industry generally (provided that such changes do not have a materially disproportionate effect on the Project relative to other comparable projects); (v) any substantial change in the price of gold; or (vi) the commencement or continuation of any war, armed hostilities or acts of terrorism.

			
	
			
				 (gg)
			

			
	
			
			“Material Contract” means a contract that:

			
	
			
				 (i)
			

			
	
			
			involves or may result in the payment of money or money’s worth by or to MGS or a subsidiary in an amount in excess of $25,000; and

			
	
			
				 A.
			

			
	
			
			has an unexpired term of more than 1 year (including renewals);

			
	
			
				 B.
			

			
	
			
			cannot be terminated by MGS without penalty upon less than 60 days’ notice; or

			
	
			
				 C.
			

			
	
			
			the termination of which, or under which the loss of rights, would constitute a Material Adverse Effect.

		
			

		 

		

			

		

			 

		

			 5

 

		

			
	
			
				 (hh)
			

			
	
			
			“MGS” means Minera Gold Stake, S.A. De C.V.

			
	
			
				 (ii)
			

			
	
			
			“MGS Canada” means Minera Gold Stake Holdings Corp. 

			
	
			
				 (jj)
			

			
	
			
			“Mineral Rights” means mining concessions licences and permits and other rights, including: 

			
	
			
				 (i)
			

			
	
			
			any permit, claim, licence, lease, concession, tenement, easement or other form of title or tenure; and

			
	
			
				 (ii)
			

			
	
			
			any other right (including temporary occupancy rights and any other right to work upon lands),

		
			whether contractual, statutory or otherwise which:
		

			
	
			
				 A.
			

			
	
			
			is granted, conferred or recognized under Applicable Laws; and

			
	
			
				 B.
			

			
	
			
			which, among other things, allows or permits a Person to explore for, mine, extract, sell or otherwise dispose of, Ore.

			
	
			
				 (kk)
			

			
	
			
			“NI 43-101” means National Instrument 43-101 Standards of Disclosure for Mineral Projects.

			
	
			
				 (ll)
			

			
	
			
			“Open-Pit Royalty Agreement”  has the meaning ascribed thereto in ‎Article 5.

			
	
			
				 (mm)
			

			
	
			
			“Operator” means Alamos and/or Alamos Mexico, as the case may be.

			
	
			
				 (nn)
			

			
	
			
			“Option Payments” means Payment 1, Payment 2 and Payment 3.

			
	
			
				 (oo)
			

			
	
			
			“Option” means the sole and exclusive right to acquire, directly or indirectly, including through a subsidiary owned by Vista, 100% of the Common Shares and to require the completion of the Closing Transactions upon the due and valid exercise of the Option pursuant to the terms and conditions of this Agreement.

			
	
			
				 (pp)
			

			
	
			
			“Option Period” means subject to ‎Section 3.2 and ‎Section 13.6, the period commencing on the Effective Date and ending on the date which is the earlier of (i) the Closing Date; and (ii) the 48 month anniversary of the execution of this Agreement.

			
	
			
				 (qq)
			

			
	
			
			“Ore” means all materials containing a mineral or minerals that are classified and the subject matter of the Mexican Mining Law, of commercial economic value extracted or derived from the mining lots covered by the mining concessions forming part of the Project.

			
	
			
				 (rr)
			

			
	
			
			“Parties” means Vista, MGS Canada, MGS, Granges, Alamos, and Alamos Mexico and “Party” means any one of the Parties as the context requires.

			
	
			
				 (ss)
			

			
	
			
			“Payment 1” has the meaning ascribed thereto in ‎Section 3.3.

			
	
			
				 (tt)
			

			
	
			
			“Payment 2” has the meaning ascribed thereto in ‎Section 3.3.

		
			

		 

		

			

		

			 

		

			 6

 

		

			
	
			
				 (uu)
			

			
	
			
			“Payment 3” has the meaning ascribed thereto in ‎Section 3.3.

			
	
			
				 (vv)
			

			
	
			
			“Payments” means the Option Payments and the Purchase Price Payment.

			
	
			
				 (ww)
			

			
	
			
			“Pre-Transfer Reorganization” has the meaning ascribed thereto in ‎Section 2.3(c).

			
	
			
				 (xx)
			

			
	
			
			“Purchase Price Payment” has the meaning ascribed thereto in ‎Section 3.4.

			
	
			
				 (yy)
			

			
	
			
			“Person”  means and includes any individual, sole proprietorship, partnership, unincorporated association, unincorporated syndicate, unincorporated organization, trust, agrarian community, company, corporation or other body corporate, Governmental Authority and a natural person in his or her capacity as trustee, executor, administrator, or other legal representatives.

			
	
			
				 (zz)
			

			
	
			
			“Project” means the mining concessions pertaining to the Guadalupe de los Reyes project, as more particularly described in Appendix A and includes any renewal thereof and any other form of successor or substitute title therefore and any addition thereto, and also includes any other mineral properties, claims, interest or surface and easement rights acquired by MGS after the Effective Date pursuant to ‎Article 8.

			
	
			
				 (aaa)
			

			
	
			
			“Resource” means a concentration or occurrence of solid material of interest in or on the Earth’s crust in such form, grade or quality that there are reasonable prospects for eventual economic extraction and the location, quantity, grade or quality, continuity or other geological characteristics of a resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling located in or under the mining lots covered by the mining concessions forming part of the Project.

			
	
			
				 (bbb)
			

			
	
			
			“Taxes” means (i) any and all taxes, duties, fees, excises, premiums, assessments, imposts, levies, rates, withholdings, dues, contributions and other charges, collections or assessments of any kind whatsoever, imposed by any Governmental Authority; and (ii) all interest, penalties, fines, additions to tax or other additional amounts imposed by any Governmental Authority on or in respect of amounts of the type described in clause (i) above or this clause (ii).

			
	
			
				 (ccc)
			

			
	
			
			“Technical Information” means engineering studies and working papers, consultants reports and working papers, pre‐feasibility reports, feasibility reports, mine plans, surface and underground maps, assays, samples, cores, analyses, geologic and geophysical maps, engineering maps, photographs, drill logs, exploration reports, environmental studies, correspondence with Governmental Authorities, reserve studies and reports, metallurgical studies and reports and all other information and data existing in printed or electronic form concerning the condition, geology, mineral potential, physical characteristics, mineability or other technical matters related to the Project.

			
	
			
				 (ddd)
			

			
	
			
			“Temporary Occupancy Agreement” means that certain agreement dated June 13, 2016 among MGS and Ejido La Tasajera;

		
			

		 

		

			

		

			 

		

			 7

 

		

			
	
			
				 (eee)
			

			
	
			
			“Underground” means, when used in relation to a Resource, a Resource whereby material can only be extracted therefrom via a shaft, ramp or other form of opening that is not characterized as an open pit mining method.  

			
	
			
				 (fff)
			

			
	
			
			“Underground Royalty Agreement”  has the meaning ascribed thereto in ‎Article 5.

			
	
			
				 (ggg)
			

			
	
			
			“Vista” means Vista Gold Corp.

			
	
			
				 (hhh)
			

			
	
			
			“Vista MGS Shareholders” means Vista, MGS Canada and Granges and any other Person who becomes a shareholder of MGS before the Closing Date.

			
	
			
				 (iii)
			

			
	
			
			“Vista Companies” means Vista, MGS Canada, Granges and MGS.

			
	
			
				 (jjj)
			

			
	
			
			“Work” during the Option Period means the Exploration and/or development work performed exclusively on or directly in relation to the mining lots covered by the mining concessions forming part of the Project by the Alamos Companies, or by their Agents, in accordance with the terms of this Agreement.

			
	
			
				 Section 1.2
			

			
	
			
			Certain Additional Rules of Interpretation

		
			This Agreement is the result of negotiations among the Parties, and the terms and provisions hereof shall be construed in accordance with their usual and customary meanings.  The captions or headings of sections or subsections of this Agreement are for purposes of reference only and shall not limit or define the meaning of any provision of this Agreement.  The Parties hereby waive the application of any rule of law which otherwise would be applicable in connection with the construction of this Agreement, including any rule that ambiguous or conflicting terms or provisions should be construed against the Party who (or whose attorney) prepared the executed agreement or any earlier draft of the same.  The singular of any term includes the plural, and vice versa, and the use of words importing gender includes all genders.  If this Agreement is drawn up in both the English language and another language, the English language version shall govern to the extent of any divergence between the two.
		

			
	
			
				 Section 1.3
			

			
	
			
			Appendices

		
			All Appendices to this Agreement are incorporated herein by reference and form part of this Agreement.  
		

			
	
			
				 Section 1.4
			

			
	
			
			Meaning of “including”, etc.

		
			Wherever the term “including” is used, it shall be deemed to mean “including without limitation”, and wherever the phrase “shall include” is used, it shall mean “shall include without limitation”.  
		

			
	
			
				 Section 1.5
			

			
	
			
			Governing Law 

		
			This Agreement shall be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein, without reference to its principles of conflicts or choice of laws. 
		

		
			

		 

		

			

		

			 

		

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				 Section 1.6
			

			
	
			
			Arbitration

		
			Any dispute arising out of or in connection with this Agreement, or in respect of any legal relationship associated therewith or derived therefrom, shall be determined by arbitration administered by International Centre for Dispute Resolution Canada in accordance with Canadian Arbitration Rules (the “Rules”). The place of arbitration shall be Toronto, Ontario and the language of the arbitration shall be English. If the parties are unable to agree to a sole arbitrator within 30 days of the commencement of the arbitration, then there shall be three arbitrators: each party shall appoint one arbitrator and the two party-appointed arbitrators, in consultation with the parties, shall then appoint the third arbitrator as chairperson.  
		

		
			Any information disclosed during the course of the arbitration, including any arbitral award, shall be kept confidential by the Parties, except as disclosure is required by applicable securities laws or stock exchange requirements.  The Parties agree that the award of the arbitration tribunal pursuant to this ‎Section 1.6 shall be final and binding upon each of them and shall not be subject to appeal.
		

			
	
			
				 Section 1.7
			

			
	
			
			Severability

		
			Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under Applicable Laws.  The validity of remaining sections, provisions, terms and parts of this Agreement shall not be affected by a court, administrative board, or other proceeding of competent jurisdiction deciding that a provision, term or part of this Agreement is illegal, unenforceable, in conflict with any Applicable Laws or contrary to public policy.  In such event the Parties shall, by amendment of this Agreement, negotiate in good faith to replace such provision by a reasonable new provision or provisions which, as far as legally possible, shall have the same economic and legal effect on the Parties as did the subject provision.
		

			
	
			
				Article 2
			– REPRESENTATIONS OF THE PARTIES

			
	
			
				 Section 2.1
			

			
	
			
			Representations and Warranties of Alamos

		
			Each of the Alamos Companies represents and warrants to Vista on a joint and several basis, that as of the Effective Date and as of the Closing Date:
		

			
	
			
				 (a)
			

			
	
			
			Alamos is a corporation duly incorporated under the laws of Ontario on January 13, 1934 and Alamos Mexico is a corporation duly incorporated under the Mexican laws on August 20, 1996, both are in good standing in their jurisdiction of incorporation and they are qualified to do business and are in good standing in those jurisdictions necessary in order to carry out the purposes of this Agreement;

			
	
			
				 (b)
			

			
	
			
			Alamos Mexico is a wholly owned subsidiary of Alamos;

			
	
			
				 (c)
			

			
	
			
			they have the capacity to enter into and perform their obligations under this Agreement and all transactions contemplated herein, all corporate and other actions required to authorize them to enter into and perform Agreement have been properly taken and this Agreement is valid and binding upon them in accordance with its terms;

		
			

		 

		

			

		

			 

		

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				 (d)
			

			
	
			
			the execution and delivery of this Agreement will not conflict with, violate or result in the breach of their constating documents nor of any agreement to which the Alamos Companies are subject;

			
	
			
				 (e)
			

			
	
			
			no consent or approval of any third party or Governmental Authority is required for the execution, delivery or performance of this Agreement by the Alamos Companies or the transfer or acquisition of any interest in MGS;

			
	
			
				 (f)
			

			
	
			
			no Person has any agreement, right or option or anything capable of becoming an agreement, right or option for the payment or delivery of any consideration or commission in respect of the transactions contemplated herein; 

			
	
			
				 (g)
			

			
	
			
			Alamos is solvent and there are no claims, actions, suits, judgements, litigation or proceedings pending against or affecting the Alamos Companies which could affect the performance by the Alamos Companies of their obligations under this Agreement; and

			
	
			
				 (h)
			

			
	
			
			neither Alamos Mexico or, to the Knowledge of Alamos Mexico, any director, officer, agent, employee, affiliate or other person acting on behalf of Alamos Mexico is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”) or the Corruption of Foreign Public Officials Act (Canada), as amended (the “CFPOA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything off value to any “foreign official” (as such term is defined in the FCPA), or any “foreign public official” (as such term is defined in the CFPOA), or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA and the CFPOA, and Alamos Mexico and, to the Knowledge of Alamos Mexico, its affiliates have conducted their businesses in compliance with the FCPA and the CFPOA.

			
	
			
				 Section 2.2
			

			
	
			
			Representations and Warranties of the Vista Companies

		
			Each of the Vista MGS Shareholders represents and warrants to Alamos on a joint and several basis, unless otherwise noted, as of the Effective Date and as of the Closing Date that:
		

			
	
			
				 (a)
			

			
	
			
			unless changed in accordance with ‎Section 2.3(c), the Common Shares are the only issued and outstanding equity capital of MGS and the Vista MGS Shareholders beneficially own 100% of the Common Shares, free of any Encumbrances of any kind or nature, other than as described in this Agreement and will remain throughout the Option Period the beneficial owner, directly or indirectly, including through a subsidiary owned by Vista, of 100% of the Common Shares free of any Encumbrances of any kind or nature, other than as described in this Agreement. Other than this Agreement, there is no existing option, warrant, call, right or contract of any character to which the Vista MGS Shareholders (or any of them individually) are party requiring the sale, transfer or disposition in any manner of the Common Shares. The Vista MGS Shareholders are not 

		 

		

			

		

			 

		

			 10

 

	party to any voting trust or other contract with respect to the voting of the Common Shares;

			
	
			
				 (b)
			

			
	
			
			Vista beneficially owns 100% of the outstanding shares of MGS Canada and Granges and will remain throughout the Option Period the beneficial owner, directly or indirectly, including through a subsidiary owned by Vista, of 100% of the outstanding shares of MGS Canada and Granges;

			
	
			
				 (c)
			

			
	
			
			each of them is a corporation duly incorporated and in good standing in its jurisdiction of incorporation and it is qualified to do business and is in good standing in those jurisdictions necessary in order to carry out the purposes of this Agreement;

			
	
			
				 (d)
			

			
	
			
			each of them has the capacity to enter into and perform its obligations under this Agreement and all transactions contemplated herein, and that all corporate and other actions required to authorize it to enter into and perform this Agreement have been properly taken;

			
	
			
				 (e)
			

			
	
			
			the execution and delivery of this Agreement by each of them will not conflict with, violate or result in the breach of any of their constating documents nor of any agreement to which any of them are subject;

			
	
			
				 (f)
			

			
	
			
			there is no requirement to obtain any consent, approval or waiver of a party under any contract to which MGS is a party in order to execute and deliver this Agreement;

			
	
			
				 (g)
			

			
	
			
			this Agreement has been duly approved and delivered by each of them and by MGS and is valid and binding upon them in accordance with its terms;

			
	
			
				 (h)
			

			
	
			
			to the Knowledge of Vista and MGS, MGS has maintained a valid interest in the Project in good standing and all surface and underground (as applicable) rights have been maintained in material compliance with all Applicable Laws; 

			
	
			
				 (i)
			

			
	
			
			MGS is the legal, registered and beneficial owner of a 100% right, title and interest in and to the Project free and clear of all Encumbrances, except for those royalties set out in Appendix A hereto; 

			
	
			
				 (j)
			

			
	
			
			to the Knowledge of Vista and MGS, no Person other than Alamos has any agreement, option, right or privilege capable of becoming an agreement for the purchase of the Project or an interest therein;

			
	
			
				 (k)
			

			
	
			
			the Vista MGS Shareholders have the right to enter into this Agreement and to sell, transfer or dispose of all of their right, title and interest in and to the Common Shares and, indirectly, the Project in accordance with the terms of this Agreement;

			
	
			
				 (l)
			

			
	
			
			to the Knowledge of Vista and MGS, there is no adverse claim or challenge against or to the ownership of the Project;

			
	
			
				 (m)
			

			
	
			
			as at the date of this Agreement, to the Knowledge of Vista and MGS, the material Maintenance Costs include those set out in Appendix F;

		
			

		 

		

			

		

			 

		

			 11

 

		

			
	
			
				 (n)
			

			
	
			
			to the Knowledge of Vista and MGS, as of the Effective Date,  

			
	
			
				 (i)
			

			
	
			
			conditions on and relating to the Project and operations conducted thereon are and have been conducted in compliance with all Applicable Laws, including without limitation, Environmental Laws and MGS has not been notified in writing, by any Governmental Authority or other person, that it is or may be in violation of any Applicable Laws, including without limitation, Environmental Law; 

			
	
			
				 (ii)
			

			
	
			
			MGS has provided to Alamos copies of all material environmental audits and risk and site assessments in MGS’ possession, if any, relating to compliance with Environmental Laws, management of Hazardous Substances, or the environmental condition of properties presently or formerly owned, operated, or leased by MGS; and

			
	
			
				 (iii)
			

			
	
			
			there are no claims, actions, suits, judgements, litigation or proceedings pending against or affecting MGS or the Project that would have a Material Adverse Effect on the Project;

			
	
			
				 (o)
			

			
	
			
			to the Knowledge of Vista and MGS,

			
	
			
				 (i)
			

			
	
			
			other than in respect of Maintenance Costs to be paid by Alamos between the Effective Date and the Closing Date, MGS has paid all Taxes which are due and payable within the time required by Applicable Law, and has paid all assessments and reassessments it has received in respect of Taxes;

			
	
			
				 (ii)
			

			
	
			
			other than in respect of obligations to be assumed by Alamos pursuant to ‎Section 3.6(a) for the period between the Effective Date and the Closing Date, MGS has filed or caused to be filed, with the appropriate Governmental Authorities, within the times and in the manner prescribed by Applicable Law, all Tax returns which are required to be filed by or with respect to it; 

			
	
			
				 (iii)
			

			
	
			
			other than in respect of any Taxes forming part of the Maintenance Costs which are to be paid by Alamos, there are no outstanding agreements, arrangements, waivers or objections extending the statutory period or providing for an extension of time with respect to the assessment or reassessment of Taxes or the filing of any Tax return by, or any payment of Taxes by, MGS; and

			
	
			
				 (iv)
			

			
	
			
			other than the proceeding deriving from the application of the Refund (defined below), there are no claims, actions, suits, audits, proceedings, investigations or other actions pending or threatened against MGS in respect of Taxes;

			
	
			
				 (p)
			

			
	
			
			all Material Contracts to which MGS is a party or by which MGS is bound have been provided to Alamos. Except as disclosed in writing to Alamos prior to the date hereof, MGS is not in material default or breach of any Material Contract, and there exists no state of facts which, after notice or lapse of time or both, would constitute a material default or breach. To Vista’s Knowledge, no counterparty to any Material Contract is in material default of any of its obligations under any Material Contract, MGS is entitled to 

		 

		

			

		

			 

		

			 12

 

	all benefits under each Material Contract, and none of the Vista Companies have received any notice of termination of any Material Contract;

			
	
			
				 (q)
			

			
	
			
			MGS has delivered to Alamos audited annual financial statements of MGS for the financial years ended December 31, 2015 and 2016 and unaudited interim financial statements for the period ended June 30, 2017 (collectively, the “Financial Statements”);

			
	
			
				 (r)
			

			
	
			
			MGS has no debts outstanding or other obligations or liabilities, save and except as disclosed in the Financial Statements and as of the Closing Date MGS shall have no intercompany loans or other payables to Vista or its Affiliates;

			
	
			
				 (s)
			

			
	
			
			the Financial Statements fairly represent the financial condition of MGS as at their date and as of the Effective Date, there has been no material change to the financial condition of MGS since June 30, 2017;

			
	
			
				 (t)
			

			
	
			
			except as disclosed in writing to Alamos, MGS is not a party to any contract or arrangement (whether oral or written) with any employee, consultant, agent or representative of MGS, which contract or arrangement provides for any salary, commission, bonus or other form of compensation to be paid to an employee, consultant, agent or representative;

			
	
			
				 (u)
			

			
	
			
			neither Vista nor MGS is a party to or bound by any Agreement which would require MGS to Encumber the Project in the future; 

			
	
			
				 (v)
			

			
	
			
			no Person has any agreement, right or option or anything capable of becoming an agreement, right or option for the payment or delivery of any consideration or commission in respect of the transactions contemplated herein with Vista, except the net smelter return royalties described in Appendix A; and

			
	
			
				 (w)
			

			
	
			
			neither MGS or, to the Knowledge of MGS, any director, officer, agent, employee, affiliate or other person acting on behalf of MGS is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”) or the Corruption of Foreign Public Officials Act (Canada), as amended (the “CFPOA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything off value to any “foreign official” (as such term is defined in the FCPA), or any “foreign public official” (as such term is defined in the CFPOA), or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA and the CFPOA, and MGS and, to the Knowledge of MGS, its affiliates have conducted their businesses in compliance with the FCPA and the CFPOA.

		
			

		 

		

			

		

			 

		

			 13

 

		

			
	
			
				 Section 2.3
			

			
	
			
			Acknowledgements 

			
	
			
				 (a)
			

			
	
			
			The Parties acknowledge that MGS may be entitled to receive certain tax refunds in relation to the transfer by Vista of the Project to MGS in 2012 (the “Refund”). The Parties further agree that in the event that MGS collects the Refund during the term of this Agreement, the Refund will be distributed to certain of the Vista MGS Shareholders.

			
	
			
				 (b)
			

			
	
			
			For greater certainty, Alamos acknowledges and agrees that it shall not acquire any legal or beneficial interest in the Project until the Option has been exercised in accordance with the terms of this Agreement.

			
	
			
				 (c)
			

			
	
			
			Alamos agrees that, prior to the Closing Date, Vista may effect a reorganization of the ownership of MGS, including involving one or more of Vista’s subsidiaries (a “Pre-Transfer Reorganization”). Vista shall provide written notice to Alamos of any proposed Pre-Transfer Reorganization, which notice shall include the proposed details of any such Pre-Transfer Reorganization, at least 30 days prior to the Closing Date. Upon receipt of such notice, Vista and Alamos shall, or shall cause the Vista Companies and/or Alamos Mexico to, respectively, work co-operatively and do all such other acts and things as are reasonably necessary to give effect to such Pre-Transfer Reorganization.

			
	
			
				 Section 2.4
			

			
	
			
			Survival

		
			The representations, warranties and acknowledgements set forth in ‎Section 2.1,  ‎Section 2.2 and ‎Section 2.3 of this Agreement shall survive the execution of this Agreement and the exercise of the Option. 
		

			
	
			
				Article 3
			– GRANT OF OPTION AND EXERCISE REQUIREMENTS

			
	
			
				 Section 3.1
			

			
	
			
			Grant of Option

		
			Vista does hereby give and grant to Alamos an exclusive right and option, which may be exercised by Alamos in whole and not in part (together with at least one Alamos’ designee to acquire at least one Common Share of MGS), to acquire, directly or indirectly, including through a subsidiary owned by Vista, 100% of the issued and outstanding Common Shares of MGS which as at the date of this Agreement are held by Vista (99.9248%), MGS Canada (0.0750%) and Granges (0.00015%) free and clear of all Encumbrances by satisfying within the time limits therefore, the obligations set out in this Agreement, except for and subject to the Underground Royalty, the Open-Pit Royalty and the Back-In Right described in ‎Article 4.
		

			
	
			
				 Section 3.2
			

			
	
			
			Commencement of the Option

		
			The Option shall commence on the Effective Date, and shall terminate at the end of the Option Period, unless exercised or otherwise terminated in accordance with the terms of this Agreement.
		

		
			

		 

		

			

		

			 

		

			 14

 

		

			
	
			
				 Section 3.3
			

			
	
			
			Maintenance of the Option (Option Payments)

		
			In consideration for the grant of the Option, Alamos shall pay to Vista, on behalf of the Vista MGS Shareholders, by way of wire transfer of immediately available funds, the following cash payments (the “Option Payments”)  according to the following schedule:
		

			
					
						Option Payment timing

					
					
						Payment Amount

				
	
					
						Upon execution of this Agreement (“Payment 1”)

					$
1,500,000
				
	
					
						On or before the 12 month anniversary of the execution of this Agreement (“Payment 2”)

					$
1,500,000
				
	
					
						On or before the 24 month anniversary of the execution of this Agreement (“Payment 3”)

					$
1,500,000
				

		
			
All Option Payments shall be paid to Vista prior to the exercise of the Option.
		

			
	
			
				 Section 3.4
			

			
	
			
			Purchase Price Payment

		
			In order to exercise the Option and acquire the Common Shares, Alamos shall pay to, or as directed by, Vista, on behalf of the Vista MGS Shareholders, by way of wire transfer of immediately available funds the amount of $1,500,000 (the “Purchase Price Payment”) on or before the end of the Option Period.  Notwithstanding the foregoing, should Alamos announce a positive decision to take the Project into construction then, Alamos agrees to make the Purchase Price Payment within 30 days following the date of publication of such announcement via newswire which date shall be deemed to be the Closing Date.
		

			
	
			
				 Section 3.5
			

			
	
			
			Payments Non Refundable

		
			All Payments are non-refundable.
		

			
	
			
				 Section 3.6
			

			
	
			
			Holding Obligations 

			
	
			
				 (a)
			

			
	
			
			From and after the Effective Date the Alamos Companies shall have the following obligations:

			
	
			
				 (i)
			

			
	
			
			maintaining the mining concessions in good standing, in compliance with all Applicable Laws, including the timely filing of work assessment annual reports and of all other technical, accounting and statistics reports and in general the fulfillment of any other legal non-financial obligations, as provided for in the Mexican Mining Law, the regulations thereto and any other Applicable Laws for the duration of the Option Period;

			
	
			
				 (ii)
			

			
	
			
			to the extent same is transferred to the Alamos Companies or is controlled by the Alamos Companies after the date hereof, keeping all Technical Information and 

		 

		

			

		

			 

		

			 15

 

	data related to the Project in good order, including the payment of the cost of the storage of core presently stored in Hermosillo for the duration of the Option Period;

			
	
			
				 (iii)
			

			
	
			
			fulfilling all of the obligations of MGS with the Ejido La Tasajera deriving from the Temporary Occupancy Agreement or from any other agreement Alamos Mexico or MGS (with the consent and approval of Alamos) enters into with said Ejido La Tasajera and/or with any other surface owners to get access to the Project for the duration of the Option Period; 

			
	
			
				 (iv)
			

			
	
			
			paying 100% of the Maintenance Costs for the duration of the Option Period,

		
			(collectively, the “Holding Obligations”). 
		

		
			In order for the Alamos Companies to properly comply with the Holding Obligations, MGS and Alamos Mexico shall enter into the Exploration Agreement attached as Appendix B, concurrently with this Agreement, pursuant to which Alamos Mexico will be authorized under Mexican laws to conduct its Exploration works in the mining lots covered by the mining concessions forming part of the Project and to incur in any expenses or disbursements related thereto, and MGS and Alamos Mexico shall also enter into any other agreements and execute and deliver all documents and take all such actions as may be reasonably required in order for Alamos Mexico to cover the cost of the storage of core presently stored in Hermosillo and to fulfill all of the obligations with the Ejido La Tasajera.   
		

			
	
			
				 Section 3.7
			

			
	
			
			Exercise of Option

		
			Upon Alamos making the Option Payments and the Purchase Price Payment in accordance with ‎Section 3.3 and ‎Section 3.4,  and provided that the Holding Obligations have been met (or waived in writing prior to the end of the Option Period by Vista in its sole discretion) and that Alamos is not otherwise in default of any provision of this Agreement, during the Option Period, Alamos shall have the right to deliver written notice (the “Exercise Notice”) to Vista notifying Vista that Alamos has exercised the Option and require completion of the Closing Transactions.  The Exercise Notice will propose a date (the “Closing Date”) being a date within 10 days of delivery of the Exercise Notice. For greater certainty, the Closing Date, though not the delivery of the Exercise Notice, may fall outside of the Option Period.  Not more than five Business Days after receipt by Vista of the Exercise Notice, Vista shall respond either confirming the proposed date or providing a proposed alternative date which better suits Vista, which alternative Closing Date must be within 10 days following the Closing Date proposed by Alamos, which alternative date shall thereupon be deemed the Closing Date.  
		

		
			Upon delivery of the Exercise Notice, the Parties shall be obligated to complete the Closing Transactions in accordance with ‎Section 3.8.
		

			
	
			
				 Section 3.8
			

			
	
			
			Closing Transaction Matters

		
			On the Closing Date, and at 12:00 p.m. (Toronto time) at the offices of Gowling WLG (Canada) LLP,  First Canadian Place,  100 King Street West,  Toronto, Ontario, Canada, the 

		 

		

			

		

			 

		

			 16

 

Parties will meet to deliver the documents and consideration described below in order to effect the Closing and all tabled documents shall be deemed exchanged and released simultaneously upon agreement by the Parties that Closing has completed.  At a minimum, the Parties shall do the following:
		

			
	
			
				 (a)
			

			
	
			
			the Vista MGS Shareholders shall execute a resolution of the shareholders of MGS appointing such directors of MGS specified by Alamos so that Alamos’ nominees will then constitute the Board of MGS;

			
	
			
				 (b)
			

			
	
			
			to the extent requested by Alamos, MGS shall secure the resignation or other termination of any existing employees, at no cost to Alamos or MGS; 

			
	
			
				 (c)
			

			
	
			
			the Vista MGS Shareholders, as applicable, shall transfer, directly or indirectly, including through a subsidiary owned by Vista, 100% of the Common Shares to Alamos (together with at least one Alamos’ designee to acquire, directly or indirectly, at least one Common Share of MGS); 

			
	
			
				 (d)
			

			
	
			
			Alamos shall deliver an undertaking in a form and substance satisfactory to Vista that Alamos will deliver to Vista and will cause MGS to deliver to Vista the Underground Royalty Agreement executed by Alamos and MGS on the Business Day following the Closing Date in connection with ‎Section 5.1(a),

			
	
			
				 (e)
			

			
	
			
			Alamos shall deliver to Vista the Open-Pit Royalty Agreement signed by Alamos pursuant to ‎Section 5.1(c); and

			
	
			
				 (f)
			

			
	
			
			Vista shall deliver to Alamos the Open-Pit Royalty Agreement signed by Vista pursuant to ‎Section 5.1(c).

		
			(collectively, the “Closing Transactions”).
		

			
	
			
				Article 4
			 -BACK-IN RIGHT

			
	
			
				 Section 4.1
			

			
	
			
			Description and Exercise of Back-In Right 

			
	
			
				 (a)
			

			
	
			
			Upon the exercise of the Option in accordance with this Agreement, Vista will, upon the terms of this Article, retain a right to acquire a 49% non-carrying interest in all future Underground Resource(s) (the “Back-In Right”).  In the event that Alamos determines to pursue development of any Underground Resource(s) it will notify Vista and Vista shall, have a right to acquire a 49% non-carrying interest in all Underground Resource(s).   

			
	
			
				 (b)
			

			
	
			
			Alamos shall provide notice in writing to Vista (the “Back-In Right Notice”) promptly and in any event within 10 Business Days after its board makes a determination, in its sole discretion, having regard to all relevant information, acting reasonably, such Back-In Right Notice shall include  an internally prepared written technical and economic analysis supporting such decision that a reasonable mining company would consider sufficiently detailed to allow a reasonable mining company to make a decision to pursue development of any Underground Resource (the “Analysis”). Vista will have 30 days from the date of receipt of the Back-In Right Notice from Alamos to conduct due diligence reviews with 

		 

		

			

		

			 

		

			 17

 

	respect to the applicable Underground Resource(s) (the “Back-In Right Option Period”). 

			
	
			
				 (c)
			

			
	
			
			During the Back-In Right Option Period, Alamos shall, from time to time, deliver to Vista, at Vista’s expense, as soon as is reasonably practicable such information and documents, reports, maps and other information as Vista may reasonably request, including a copy of the Analysis and other materials relating to the Project provided to the Board of Directors of Alamos and/or Alamos Mexico in connection with their approval of the development determination referred to in Section 4.1(b) above, and shall co-operate in assisting Vista in completing such review. On or prior to the expiry of the Back-In Right Option Period, Vista may exercise its Back-In Right with respect to the Underground Resource(s) by delivering notice in writing to Alamos (the “Back-In Right Exercise Notice”). Upon exercise of the Back-In Right by Vista sending the Back-In Right Exercise Notice to Alamos, Vista (or a wholly-owned affiliate of Vista) and Alamos (or a wholly-owned affiliate of Alamos) shall negotiate in good faith and enter into a definitive agreement (a “Joint Venture Agreement”) for the purpose of conducting development or other related mining and ore processing work in respect of the Underground Resource for which the Back-In Right has been exercised.  The Joint Venture Agreement will include, at a minimum, the material terms set out in Appendix C. The Parties agree to promptly negotiate, execute and deliver all documents and take all such reasonable actions as may be reasonably required to effect the Back-In Right.

			
	
			
				 (d)
			

			
	
			
			The Back-In Right described in this ‎Article 4 shall survive the execution of this Agreement and the exercise of the Option. The Back-In-Right constitute an interest in the Project that runs with the Project and is enforceable against the Alamos Companies and will be enforceable against any third party acquiror, assignee or transferee of all, or any part of, the Project. 

			
	
			
				 Section 4.2
			

			
	
			
			Failure to Elect 

		
			If, Vista does not give the Back-In Right Exercise Notice during Back-In Right Option Period, Vista shall be deemed to have declined to exercise the Back-In Right in respect of the particular Underground Resource(s) which was the subject of the Back-In Right Notice.  However, the terms of this Article shall continue to apply with respect to any other future Underground Resource(s) that the Alamos Companies may determine to develop. 
		

			
	
			
				Article 5
			- ROYALTY

			
	
			
				 Section 5.1
			

			
	
			
			Royalties 

			
	
			
				 (a)
			

			
	
			
			On the Business Day following the Closing Date, Alamos shall cause MGS to grant and deliver to Vista an executed net smelter returns royalty agreement, substantially in the form set out in Appendix D  (the “Underground Royalty Agreement”), pursuant to which, Vista will retain and be granted a net smelter returns royalty (the “Underground Royalty”) on any current or future resource of the Project in accordance with and subject to the terms of the Underground Royalty Agreement that is brought into production via Underground mining methods.

		
			

		 

		

			

		

			 

		

			 18

 

		

			
	
			
				 (b)
			

			
	
			
			The Underground Royalty constitutes an interest in the Project that runs with the Project and is enforceable against MGS.  Vista may register the Underground Royalty Agreement against title of the mining concessions forming part of the Project or any part thereof as a burden that runs with the Project.

			
	
			
				 (c)
			

			
	
			
			Alamos shall grant and deliver to Vista an executed net smelter returns royalty agreement, substantially in the form set out in Appendix E  (the “Open-Pit Royalty Agreement”), pursuant to which, Vista will retain and be granted a net smelter returns royalty (the “Open-Pit Royalty”) on any current or future resource of the Project in accordance with and subject to the terms of the Open-Pit Royalty Agreement that is brought into production via open pit mining methods.    

			
	
			
				Article 6
			– ADDITIONAL COVENANTS

			
	
			
				 Section 6.1
			

			
	
			
			Covenants of Alamos During the Option Period

		
			During the term of this Agreement, the Alamos Companies shall:
		

			
	
			
				 (a)
			

			
	
			
			direct, manage and fund and as appropriate, conduct the program of work on the Project set out in ‎Section 7.1;

			
	
			
				 (b)
			

			
	
			
			pay the Maintenance Costs and take all steps and proceedings to maintain the Project in good standing;

			
	
			
				 (c)
			

			
	
			
			perform their duties and responsibilities and comply with their obligations under this Agreement;

			
	
			
				 (d)
			

			
	
			
			immediately notify Vista if:

			
	
			
				 (i)
			

			
	
			
			any representations or warranties contained in ‎Section 2.1 are not true and correct in any material respect during the term of the Option Period; or

			
	
			
				 (ii)
			

			
	
			
			any covenant of the Alamos Companies pursuant to this Agreement has not been complied with;

			
	
			
				 (e)
			

			
	
			
			not, by any action or inaction cause any Encumbrance to be placed upon or against the mining concessions forming part of the Project or any part thereof;

			
	
			
				 (f)
			

			
	
			
			conduct all of the operations on the Project in a good and workmanlike manner in accordance with generally accepted mining industry practice and in compliance with all Applicable Laws and in accordance with the terms and provisions of the mining concessions, leases, licenses, permits, contracts and other agreements pertaining to the Project, its assets and its operations and in accordance with the care and skill normally expected of a Canadian publicly listed entity conducting and managing Exploration, development and mining activities in Mexico;

		
			

		 

		

			

		

			 

		

			 19

 

		

			
	
			
				 (g)
			

			
	
			
			ensure that their employees, contractors and authorized agents and their Affiliates’ employees, contractors and authorized agents enter the Project at the Alamos Companies’ sole risk and expense;

			
	
			
				 (h)
			

			
	
			
			keep and maintain all required accounting and financial records for Alamos Mexico pursuant to International Financial Reporting Standards and in accordance with customary cost accounting practices in the mining industry; 

			
	
			
				 (i)
			

			
	
			
			obtain insurance, naming Vista and MGS as co-insured, which adequately covers all risks reasonably and prudently foreseeable in the operation and conduct of the Work; and

			
	
			
				 (j)
			

			
	
			
			keep Vista reasonably informed of all material facts, matters and things relating to the Project.

			
	
			
				 Section 6.2
			

			
	
			
			Covenants of MGS During the Option Period

			
	
			
				 (a)
			

			
	
			
			Between the Effective Date and the Closing Date, MGS shall, to the extent such matters are within its control: 

			
	
			
				 (i)
			

			
	
			
			use commercially reasonable efforts to preserve MGS in good standing in its jurisdiction of incorporation and not, by any action or inaction cause any Encumbrance to be placed upon or against the mining concessions forming part of the Project or any part thereof, other than in connection with those set out in Appendix A;

			
	
			
				 (ii)
			

			
	
			
			use commercially reasonable efforts to preserve intact current business organization, keep available the services of current officers, employees, consultants, contractors and agents, and maintain the relations and goodwill with suppliers, customers, landlords, landowners, creditors, employees, consultants, contractors, agents, and others having business relationships with them;

			
	
			
				 (iii)
			

			
	
			
			use commercially reasonable efforts to preserve the goodwill of the business;

			
	
			
				 (iv)
			

			
	
			
			operate the business in accordance with usual business practices as a going concern with all due care and in compliance with all Applicable Laws and Authorizations;

			
	
			
				 (v)
			

			
	
			
			not undertake any action or fail to take any action that could reasonably result in MGS not being able to meet its obligations as set out in this Agreement;

			
	
			
				 (vi)
			

			
	
			
			transfer all Technical Information owned by MGS to Alamos; 

			
	
			
				 (vii)
			

			
	
			
			forward to Alamos on a timely basis all invoices, notices, statements and similar documents received by MGS and/or Vista relating to Work and/or Maintenance Costs required to be paid by Alamos;

			
	
			
				 (viii)
			

			
	
			
			work with the Alamos Companies in good faith and using their commercially reasonable efforts to secure, at the Alamos Companies’ expense, an extension of 

		 

		

			

		

			 

		

			 20

 

	the term of the Temporary Occupancy Agreement (at the appropriate time) for an additional two years such that it covers the entirety of the Option Period on financial terms substantially similar to those currently in existence and any other agreements in respect of or relating to the land as may be reasonably required to further explore and develop the Project in accordance with the terms of this Agreement, if any; and

			
	
			
				 (ix)
			

			
	
			
			keep Alamos reasonably informed of all material facts, matters and things relating to MGS and the businesses, property and assets, and provide Alamos with reasonably requested information regarding MGS and the businesses, property and assets, including in respect of the Pre-Transfer Reorganization.

			
	
			
				 (x)
			

			
	
			
			Between the Effective Date and the Closing Date, without the prior written consent of Alamos (such consent not to be unreasonably withheld or delayed),  MGS shall not:

			
	
			
				 (i)
			

			
	
			
			amend the terms of the Project or terminate or otherwise amend the Exploration Agreement;

			
	
			
				 (ii)
			

			
	
			
			make any capital expenditure in excess of $15,000 or undertake any other commitments other than in the ordinary course of business;

			
	
			
				 (iii)
			

			
	
			
			sell, transfer, lease, license or otherwise dispose of any of the Project or any interest therein whatsoever;

			
	
			
				 (iv)
			

			
	
			
			allow for any Encumbrance to be placed on the Project;

			
	
			
				 (v)
			

			
	
			
			grant any license, assignment or other right or interest in respect of Technical Information owned by MGS, other than as set out in this Agreement;

			
	
			
				 (vi)
			

			
	
			
			acquire any material asset;

			
	
			
				 (vii)
			

			
	
			
			other than in connection with 2.3(c), issue any new Common Shares or enter into any agreement in respect of any loans or borrowing;

			
	
			
				 (viii)
			

			
	
			
			enter into any new Material Contract, or amend, waive or terminate any provisions of any existing Material Contract, or enter into any other obligation which is not in the ordinary course of business;

			
	
			
				 (ix)
			

			
	
			
			enter into any abnormal or unusual transaction which relates to or adversely affects its business or could reasonably be expected to result in a Material Adverse Effect in respect of MGS;  

			
	
			
				 (x)
			

			
	
			
			other than in connection with ‎Section 3.8(b),  enter into any employment, consulting or similar contract or hire any new employee, consultant or contractor, amend any existing employment, consulting or similar contract, renew any existing employment, consulting or similar contract on materially different terms, or terminate any employment, consulting or similar contract;

		
			

		 

		

			

		

			 

		

			 21

 

		

			
	
			
				 (xi)
			

			
	
			
			other than in connection with a Pre-Transfer Reorganization, make any Tax election or, subject to ‎Section 7.3, settle or compromise any Tax liability, unless that election, settlement or compromise is required by Applicable Laws or is advisable in the best interest of MGS and is supported by a written opinion of competent legal counsel;

			
	
			
				 (xii)
			

			
	
			
			make any change in the accounting methods, principles or practices used at the Effective Date, save for any changes required by Applicable Laws or in connection with ‎Section 2.3(c);

			
	
			
				 (xiii)
			

			
	
			
			cancel any debt owed to MGS, or waive any claim or right in respect thereof;

			
	
			
				 (xiv)
			

			
	
			
			commence, settle, waive, compromise or discontinue any proceeding or other claim for damages;

			
	
			
				 (xv)
			

			
	
			
			amend or restate the constating documents of MGS;

			
	
			
				 (xvi)
			

			
	
			
			other than in connection with ‎Section 2.3(c),  increase, reduce or otherwise alter the share capital or grant any options, warrants or other similar rights for the issue of shares or other securities of MGS;

			
	
			
				 (xvii)
			

			
	
			
			other than in connection with ‎Section 2.3(c) or the Refund, declare or pay any dividend, make a distribution or revaluation of assets, buy back or make any offer to buy back shares, or make any other similar payment or distribution of cash or property to shareholders or other Affiliates, including by way of service or consulting fees or the repayment of principal or interest on intercompany indebtedness; or

			
	
			
				 (xviii)
			

			
	
			
			offer, agree or otherwise commit to do any of the foregoing.

			
	
			
				 Section 1.3
			

			
	
			
			Additional Covenants

			
	
			
				 (i)
			

			
	
			
			Each of the Parties shall from time to time give prompt notice to the other of any notice of default, lawsuit, proceeding, action or damages of which it becomes aware and which might affect the mining concessions forming part of the Project, the title of any Party to the Project or a Party’s ability to comply with its obligations under this Agreement;

			
	
			
				 (ii)
			

			
	
			
			Each of the Parties shall cooperate in structuring the transactions contemplated in this Agreement in a tax efficient manner including making such amendments to this Agreement as are appropriate to make the transactions more tax efficient, provided no such cooperation shall be required where such structuring shall have an adverse effect on the business, operations or financial condition of the Parties or on the economics of the transactions contemplated by this Agreement to either Party, or any adverse impact on its shareholders, as the case may be, or cause any breach of or default under this Agreement by a Party which the other Party has not agreed to waive in writing; and

		
			

		 

		

			

		

			 

		

			 22

 

		

			
	
			
				 (iii)
			

			
	
			
			The Parties shall not disclose Confidential Information to any third party (other than to its employees, consultants and Affiliates) unless (i) the information was known to the person to whom such information is being disclosed prior to the Effective Date or became known to such person thereafter without breach of this Agreement, (ii) the disclosure of such information is necessary or appropriate in making any filing or obtaining any consent or approval required for the consummation of the transactions contemplated hereby, (iii) the furnishing or use of such information is required by any Applicable Law or the request of any Governmental Authority, (iv) such information is disclosed to an Affiliate of Alamos or Vista or such Affiliates’ directors, officers, employees, representatives and agents who are bound by confidentiality obligations in respect of such information, or (v) such information is disclosed to Alamos, Vista, or their Affiliates’ auditors, legal counsel, lenders, brokers, underwriters, investment bankers and other professional advisers for whom such confidential information would be relevant (and the Party disclosing such Confidential Information shall ensure that any person to whom Confidential Information is disclosed under clause (iv) or (v) will not disclose such Confidential Information to any other person if such disclosure would be a breach of this Agreement had such disclosure been made directly by such party and will be liable to the other Parties hereunder for any disclosure by such person).

			
	
			
				Article 7
			– PROJECT MANAGEMENT PROGRAM, FUNDING AND MANAGEMENT DURING THE OPTION PERIOD

			
	
			
				 Section 7.1
			

			
	
			
			Project Management Program and Funding of Alamos Mexico During the Option Period 

		
			During the term of this Agreement, Alamos and/or Alamos Mexico, as the case may be, shall carry out a project management program on the Project for the benefit of MGS, which program will at a minimum include:
		

			
	
			
				 (a)
			

			
	
			
			using commercially reasonable efforts to obtain any Authorizations required to maintain the Project in good standing and to advance all current and future activities at the Project;

			
	
			
				 (b)
			

			
	
			
			maintaining and defending MGS’ assets, including its mining concessions, other interests in land and permits;

			
	
			
				 (c)
			

			
	
			
			maintaining all of MGS’ Technical Information in good order; and

			
	
			
				 (d)
			

			
	
			
			maintaining MGS’ community program and assume each and all of MGS’ obligations to the Ejido La Tasajera.

		
			The program management work program shall be conducted by Alamos and/or Alamos Mexico, as the case may be, in a good and workmanlike manner in accordance with generally accepted mining industry practice and in compliance with all Applicable Laws including the Mexican Mining Law and its Regulations, the labor laws and the Environmental Laws and in accordance with the terms and provisions related to the mining concessions, leases, licenses, permits, contracts and other agreements pertaining to the Project, and in accordance with the care 

		 

		

			

		

			 

		

			 23

 

and skill normally expected of a Canadian operated publicly traded entity conducting and managing Exploration, development and mining activities in Mexico.
		

		
			The Parties acknowledge that beyond the obligation to pay the Maintenance Costs and the costs and expenses associated with the work program set out in this ‎Section 7.1, the level of economic activity of Alamos Mexico and hence Alamos’s funding obligation is within the discretion of Alamos during the Option Period.
		

			
	
			
				 Section 7.2
			

			
	
			
			Rights of Operator

		
			Alamos shall act, or shall cause Alamos Mexico to act, as Operator of the Project during the Option Period, and as such, Alamos shall be, or shall cause Alamos Mexico to be, responsible in their sole discretion for carrying out and administering all Work, including the completion of all activities necessary to fulfill their obligations under this Agreement.  Subject to the provisions of any Applicable Laws, ‎Section 7.4 and to the requirement to obtain the necessary permits, licenses and Authorizations to perform the Work, Alamos and/or Alamos Mexico, as the case may be, as Operator, shall have the sole and exclusive right:
		

			
	
			
				 (a)
			

			
	
			
			to enter at its sole discretion and risk and pursuant to the Temporary Occupancy Agreement entered into with Ejido La Tasajera currently in place or pursuant to any other agreements Alamos Mexico enters into with said Ejido and/or with any other surface owners in, under or upon the mining lots covered by the mining concessions forming part of the Project;

			
	
			
				 (b)
			

			
	
			
			to have possession of the Project but not title to same;

			
	
			
				 (c)
			

			
	
			
			subject to ‎Section 12.6 to carry out such Work as Alamos and/or Alamos Mexico, as the case may be, in their sole discretion consider advisable including if the necessary Authorizations are obtained, bringing or erecting upon the Project machinery, equipment and ancillary facilities including, without limiting the generality of the foregoing, housing, utility services, roads, conveyors, plants, buildings, waste areas, tailing areas and disposal areas or systems; 

			
	
			
				 (d)
			

			
	
			
			to maintain, to the extent permissible under Applicable Laws, in the name of Alamos Mexico, all licenses, permits and Authorizations required to carry out the Work; and

			
	
			
				 (e)
			

			
	
			
			to remove Ore, minerals or metals from the Project in such reasonable quantities only for the purpose of obtaining assays or making other tests but not for commercial purposes.

			
	
			
				 Section 7.3
			

			
	
			
			Maintenance of Company Goodwill

		
			In addition to any other obligations set out in this ‎Article 7, Alamos shall, and shall cause Alamos Mexico to, during the Option Period, maintain and protect the reputation of MGS and shall conduct themselves and their operations with a view to enhancing the public image of MGS. Alamos will review, or will cause Alamos Mexico to review, the current community relations program and undertake programs to maintain the good reputation of MGS.  Nothing in this ‎Section 7.3 shall require that Alamos agree, or cause Alamos Mexico to agree, to fund any new financial initiative or allow MGS to assume any new obligation.
		

		
			

		 

		

			

		

			 

		

			 24

 

		

			
	
			
				 Section 7.4
			

			
	
			
			Access 

		
			During the Option Period, the Vista Companies and their respective employees and Agents shall have reasonable access to the Project and to all data, studies, maps, drill core and all other information generated by the Alamos Companies in respect of or derived from the Project, in all cases at their own risk and cost, provided that:
		

			
	
			
				 (a)
			

			
	
			
			Vista provides, or causes any other of the Vista Companies to provide, reasonable prior written notice to the Alamos Companies of (i) that part of the Project to which it requires access, (ii) the identity of the individuals to be provided access, and (iii) when it proposes to access the Project; and

			
	
			
				 (b)
			

			
	
			
			The Vista Companies do not interfere with the normal operations of the Alamos and/or Alamos Mexico, as the case may be, as Operator on the Project.  

			
	
			
				 Section 7.5
			

			
	
			
			Reports and Inspection

		
			As Operator, Alamos shall provide, or cause Alamos Mexico to provide to Vista (i) reports as of June 30 and December 31 of each calendar year indicating the status of all Work by the Alamos Companies during such period (each a “Semi-Annual Report”); and (ii) a copy of all factual geologic information and a summary of the results of all Work conducted on or with respect to the Project during the preceding calendar year, as well as all the documentation required to evidence that Work. Each Semi-Annual Report shall be delivered within 45 days of the end of the applicable time period.  The Alamos Companies and the Vista Companies shall each keep confidential all of such reports and information as provided by ‎Section 7.5.  Upon the exercise of the Option by Alamos, title to such reports and information shall be transferred by Vista to Alamos. Alamos Mexico shall be responsible for preparing and filing, in due course any materials that are required to be filed with the Governmental Authority or regulatory agency to maintaining the Project in good standing.  Such materials shall be filed by Alamos Mexico and Alamos shall provide Vista a copy of any filing submitted to a Governmental Authority or regulatory agency within 20 days following from the date of such filing.
		

			
	
			
				Article 8
			– ACQUISITIONS IN AREA OF INTEREST

			
	
			
				 Section 8.1
			

			
	
			
			Requirement following Acquisition

		
			Alamos hereby covenants and agrees with Vista that they will not acquire, nor will they permit any Affiliate or any of their directors, officers, or employees to acquire, whether directly or indirectly or pursuant to any third party agreement, any form of interest in property,  minerals or Mineral Rights located wholly or in part within the Area of Interest unless such acquisition is made subject to the terms of this Agreement and the acquiring party complies with the provisions of this Article.
		

			
	
			
				 Section 8.2
			

			
	
			
			Notice of Acquisition

		
			Forthwith upon completing any acquisition contemplated in ‎Section 8.1, Alamos shall give, or cause Alamos Mexico to give, notice thereof to Vista which notice shall be in writing, setting out the nature of the interest acquired, including all information known to the acquiring 

		 

		

			

		

			 

		

			 25

 

party about such interest, the costs of acquisition and all other pertinent details relating thereto.  Upon receipt of such notice, Vista shall have a period of 30 days to decide whether the interest acquired shall be made subject to the terms of this Agreement and made part of the Project to be acquired hereunder.  During such 30-day period, Alamos shall, or cause Alamos Mexico to, from time to time, deliver to Vista as soon as practicable such further information related to the acquisition and the interest acquired as Vista may reasonably request in order to permit Vista to make an informed decision with respect to the matters herein.
		

			
	
			
				 Section 8.3
			

			
	
			
			Election to Include

		
			If, within the 30-day period referred to in ‎Section 8.2, Vista gives notice to the Alamos Companies requiring that the acquired interest be made part of the Project to be acquired hereunder, then the acquired interest shall forthwith be transferred to MGS to hold title to the Project and the acquired interest shall thereafter form part of the Project under this Agreement.  The original costs of acquisition of the acquired interest shall be paid by Alamos.  When the acquired interest is transferred to MGS, MGS shall pay Alamos or its Affiliate, as applicable, a nominal purchase price for the acquired interest and such purchase price shall not exceed $1,000.  For greater certainty, notwithstanding that the properties or other interests to be added hereunder are to be acquired after the date hereof, such properties or other interests will, upon acquisition by MGS, be deemed to form part of the Project and will be transferred to the Alamos Companies upon exercise of the Option at no additional cost.
		

			
	
			
				 Section 8.4
			

			
	
			
			Further Assurances

		
			Each of the Parties hereto will execute and deliver or cause to be executed and delivered such further documents and instruments and give such further assurances as the other may reasonably require to evidence and give effect to any acquisition and/or transfer of an interest in a mining concession, property or minerals as hereinbefore provided in this Article.
		

			
	
			
				 Section 8.5
			

			
	
			
			Failure to Elect to Include

		
			If, within the 30-day period referred to in ‎Section 8.2, Vista does not give the notice referred to in ‎Section 8.3,  Vista shall be deemed to have consented to the acquisition by the acquiring party of the interest in the mining concession, property or minerals as referred to in the original notice from the Alamos Companies and such interest may thereafter be held or dealt with by the acquiring party free of the terms and conditions of this Agreement.  However, the terms of this Article shall continue to apply with respect to any future or other acquisition within the Area of Interest.
		

			
	
			
				 Section 8.6
			

			
	
			
			Best Efforts

		
			The Alamos Companies covenant and agree to use their best efforts to provide or cause to be provided, in any acquisition agreement related to the Area of Interest as hereinbefore contemplated, for appropriate perimeter clauses, royalty interests (as opposed to property interests) for any property vendor, appropriate processing facilities for Ores derived from the various properties in or partly within the Area of Interest and unencumbered rights to assign an interest in any such agreements and the properties related thereto pursuant to the provisions of this Agreement and as contemplated in this Article.
		

		
			

		 

		

			

		

			 

		

			 26

 

		

			
	
			
				 Section 8.7
			

			
	
			
			Non-compliance

		
			Non-compliance with the provisions of this Article by Alamos or by any of their Affiliates, shall be considered a default under this Agreement by Alamos in which case the provisions of ‎Section 12.1 shall apply.
		

			
	
			
				 Section 8.8
			

			
	
			
			Other Business Opportunities

		
			Except as may be expressly provided in this Agreement, each Party shall have the right to independently engage in and receive full benefits from its business activities.
		

			
	
			
				Article 9
			– CONFIDENTIALITY AND PUBLIC ANNOUNCEMENTS

			
	
			
				 Section 9.1
			

			
	
			
			General

		
			Subject to the exceptions in ‎Section 9.2, Confidential Information shall not be disclosed by Alamos or any of its Affiliates to any third party or to the public without the prior written consent of Vista.
		

			
	
			
				 Section 9.2
			

			
	
			
			Exceptions

			
	
			
				 (a)
			

			
	
			
			The restriction imposed by ‎Section 6.3(iii) and ‎Section 9.1 shall not apply to a disclosure of Confidential Information:

			
	
			
				 (i)
			

			
	
			
			in accordance with the requirements of any stock exchange or securities regulatory authority or commission having jurisdiction over a Party’s or any of its Affiliate’s securities;

			
	
			
				 (ii)
			

			
	
			
			to government agencies as required by the terms of mining concessions or any other Authorizations;

			
	
			
				 (iii)
			

			
	
			
			to employees or to an Affiliate, consultant, contractor or subcontractor of a Party that has a bona fide need to be informed;

			
	
			
				 (iv)
			

			
	
			
			to a Governmental Authority or to the public, which any of the Alamos Companies believes in good faith is required by Applicable Laws;

			
	
			
				 (v)
			

			
	
			
			to actual or potential lenders or underwriters who have a bona fide need to be informed;

			
	
			
				 (vi)
			

			
	
			
			to independent accountants or legal counsel engaged by Alamos for the purpose of enabling such accountants or legal counsel to give appropriate advice in respect of a financing or other matters arising under this Agreement; and

			
	
			
				 (vii)
			

			
	
			
			to any recognized merchant or investment banking firm engaged in giving advice to Alamos in connection with a financing or other matter arising under this Agreement.

		
			

		 

		

			

		

			 

		

			 27

 

		

			
	
			
				 (b)
			

			
	
			
			In any case to which the exceptions in ‎Section 9.2 are applicable, Alamos shall give notice to the Vista Companies, at least 7 days in advance of the making of such disclosure by Alamos or any of its Affiliates.  Such notice shall identify the Confidential Information to be disclosed and the recipient.  As to any disclosure, except disclosure required by Applicable Law, only such Confidential Information as such third party shall have a legitimate business need to know shall be disclosed.  Except with respect to disclosure required by Applicable Law, as to any disclosure to a third party, such third party shall first agree in writing to protect the Confidential Information from further disclosure to the same extent as Alamos is obligated under this ‎Article 9 and Alamos shall concurrently with the making of such disclosure, give notice to Vista that the required agreement in writing has been completed.  Notwithstanding the absence of a required written agreement, Alamos shall be responsible for assuring that no unauthorized disclosure of information to be kept confidential pursuant to ‎Section 9.1 is made by any Person receiving information.

			
	
			
				 (c)
			

			
	
			
			Notwithstanding the restrictions set out in ‎Section 6.3(iii) or this ‎Article 9, if Alamos is required under applicable securities laws or stock exchange requirements to publicly disclose Confidential Information in a press release or other continuous disclosure document, including an annual information form, information circular, MD&A, annual or interim financial statements, prospectus or material change report, Alamos shall notify Vista of such disclosure prior to issuing or filing such press release or continuous disclosure document.  If the press release or continuous disclosure document contains any of the Vista Companies’ names, the name of any of the Affiliates, officers, directors or employees of the Vista Companies, such press release or continuous disclosure document shall not be issued or filed without the prior consent of the Vista Companies, which consent shall not unreasonably be withheld (provided that consent will not be required in respect of any factual disclosure that corresponds in substance to disclosure previously consented to by the Vista Companies or disclosure already contained within a press release or continuous disclosure document issued or filed by the Vista Companies which, to the Knowledge of Alamos, after reasonable inquiry, remains factually accurate).  Failure to comment within 24 hours of receipt of notice of any proposed issuance or filing of a press release or continuous disclosure document containing any of the Vista Companies' names will be deemed to constitute consent.  However, such consent shall not be considered a representation, warranty or certification by the Vista Companies as to the accuracy of the information or data in such press release or continuous disclosure document, or a confirmation by the Vista Companies that the content of such press release or continuous disclosure document complies with applicable securities laws or stock exchange requirements.  Alamos will be responsible to provide its own Qualified Person (as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) for any technical information contained in any press release or other public disclosure document that is publicly disclosed or filed with regulatory authorities pursuant to this ‎Section 9.2.

			
	
			
				 Section 9.3
			

			
	
			
			Duration of Confidentiality

		
			The provisions of this ‎Article 9 shall apply during this Agreement and for 24 months following the termination of this Agreement.
		

		
			

		 

		

			

		

			 

		

			 28

 

		

			
	
			
				Article 10
			– INDEMNITY

			
	
			
				 Section 10.1
			

			
	
			
			Indemnification of Vista

		
			The Alamos Companies agree, to indemnify and hold Vista and its respective directors, officers, employees, Affiliates and Agents harmless from and against any losses, liabilities, damages, injuries, costs or expenses (including legal costs) incurred by such persons arising out of, resulting from or in any way connected with:
		

			
	
			
				 (a)
			

			
	
			
			the Alamos Companies or one of their Affiliate’s  or Agent’s operations conducted on the Project after the Effective Date, including any liabilities related or damages caused to the Environment due to breach of Environmental Laws or other Applicable Laws or otherwise, or reclaiming, Remediating or rehabilitating any of the Project in respect of any Work performed on the Project after the Effective Date; 

			
	
			
				 (b)
			

			
	
			
			any loss of life, injury to persons or property or damage to the Project or the Environment after the Effective Date;

			
	
			
				 (c)
			

			
	
			
			any misrepresentation or breach of representation, warranty, covenant, obligation or agreement of Alamos or Alamos Mexico under this Agreement; 

			
	
			
				 (d)
			

			
	
			
			any Claim against Vista or any of its Affiliates instituted after the Effective Date that is based on any act or omission of the Alamos Companies or their Affiliates or Agents in its operations or activities after the Effective Date; or

			
	
			
				 (e)
			

			
	
			
			any Claim derived from their respective employer-worker obligations, including contractors or subcontractors hired by the Alamos Companies or their Agents or Affiliates.

			
	
			
				 Section 10.2
			

			
	
			
			Indemnification of Alamos

		
			Vista agrees, to indemnify and hold Alamos and its respective directors, officers, employees, Affiliates and Agents harmless from and against any losses, liabilities, damages, injuries, costs or expenses (including legal costs) incurred by such Persons arising out of, resulting from or in any way connected with:
		

			
	
			
				 (a)
			

			
	
			
			any misrepresentation or breach of representation, warranty, covenant, obligation or agreement of Vista under this Agreement; or

			
	
			
				 (b)
			

			
	
			
			any Claim derived from MGS’s respective employer-worker obligations, including contractors or subcontractors hired by Vista or its Agents or Affiliates.

		
			

		 

		

			

		

			 

		

			 29

 

		

			
	
			
				Article 11
			– COMPLIANCE WITH POLICY ON INTERNATIONAL BUSINESS CONDUCT

			
	
			
				 Section 11.1
			

			
	
			
			Compliance

		
			The Parties acknowledge that applicable Mexican laws, the FCPA, and the CFPOA, as amended (the “Acts”) apply to the Vista Companies and the Alamos Companies and their respective Affiliates, as the case may be, and agree that during the term of this Agreement Alamos shall and shall cause Alamos Mexico to comply with all provisions of the Acts (whether or not technically or jurisdictionally applicable).
		

			
	
			
				Article 12
			– TERMINATION

			
	
			
				 Section 12.1
			

			
	
			
			Termination

		
			This Agreement may be terminated, subject to ‎Section 12.2:
		

			
	
			
				 (a)
			

			
	
			
			by Vista, if Alamos (i) fails to make Payment 1 when due; (ii) fails to make Payment 2 when due; or (iii) fails to comply with the Holding Obligations;

			
	
			
				 (b)
			

			
	
			
			by Vista, upon 30 days written notice, if  Alamos (i) fails to make Payment 3 when due; (ii) fails to make the Purchase Price Payment when due; (iii) fails to grant the Back-In Right in accordance with the terms of this Agreement; (iv) fails to grant the Royalty in accordance with the terms of this Agreement, (v) is not in material compliance with this Agreement, or (vi) has notified Vista that it does not intend to exercise the Option;

			
	
			
				 (c)
			

			
	
			
			by Alamos, upon 30 days written notice, if  Vista is not in material compliance with this Agreement;

			
	
			
				 (d)
			

			
	
			
			by Alamos upon 10-days written notice from Alamos to Vista that it does not intend to exercise the Option provided that Alamos is not in default of any of its obligations under this Agreement and has not already exercised the Option;

			
	
			
				 (e)
			

			
	
			
			if the Option is exercised, immediately following the Closing; or

			
	
			
				 (f)
			

			
	
			
			by mutual written agreement of the Parties.

		
			Upon termination of this Agreement in accordance with ‎Section 12.1(a) to ‎(c) or ‎(f),  ‎Article 9,  ‎Article 10 and ‎Article 12 shall survive. Upon termination of this Agreement in accordance with ‎Section 12.1(e),  ‎Article 4,  ‎Article 5 and ‎Article 9,  ‎Article 10,  ‎Article 12 and ‎Article 13 will survive.  
		

			
	
			
				 Section 12.2
			

			
	
			
			Right to Cure

		
			In the event that any Party is of the view that another is in breach of any representation made or given by such party or has not performed any obligation or covenant to be performed by it pursuant to this Agreement, or in the event that any Party determines that itself is in breach of any representation made or given by it or that it has not performed any obligation or covenant to 

		 

		

			

		

			 

		

			 30

 

be performed by it, such Party shall notify the other of the circumstances which it believes gives rise to the breach. The Party which is or is alleged to be in breach shall immediately seek to cure the breach (or else in the case of an allegation, give notice to the other Party that it disputes the allegation of breach). The Party in breach hereof shall have up to 30 calendar days during which it must either cure the breach, or, where it is not reasonably possible to fully cure the breach within such period, and the complaining party is not being materially adversely affected by the state of breach, demonstrate that it has diligently begun to cure the breach. Provided that the Party in breach continues to diligently pursue the complete remedying of the breach complained of in as short a time as is reasonably possible, then the other Party, unless it can demonstrate the breach is either not capable of remedy or that it has been or will be irreparably damaged by the breach, shall allow the Party in breach to cure the breach and the non-breaching Party shall not be entitled to terminate this Agreement on account of such breach.
		

			
	
			
				 Section 12.3
			

			
	
			
			Maintenance Costs

		
			Upon termination of this Agreement,  Alamos shall ensure that it has funded all Maintenance Costs payable up to the date of termination of the this Agreement in accordance with the terms hereof.
		

			
	
			
				 Section 12.4
			

			
	
			
			Delivery of Data    

		
			Except in connection with a termination pursuant to ‎Section 12.1(e), upon the termination of this Agreement,  Alamos shall deliver, or cause Alamos Mexico to deliver, to Vista within 30 days of the date of termination of this Agreement, all originals of all Technical Information, Confidential Information and all other data, reports of information provided to the Alamos Companies by the Vista Companies as well as copies of all Technical Information produced by Alamos or its Agents and related to the Project.    
		

			
	
			
				 Section 12.5
			

			
	
			
			Removal of Encumbrances

		
			If, upon or following termination of this Agreement, an Encumbrance on the Project shall arise in connection with Work conducted by the Alamos Companies or their Agents and the Alamos Companies shall wish to contest such Encumbrance, Alamos shall post security sufficient to permit such lien to be discharged and shall forthwith take all such measures as are necessary in order to discharge such Encumbrance, provided that, upon such removal of any such Encumbrance, Alamos may proceed to contest, or may cause Alamos Mexico to proceed to contest, any such Encumbrance in good faith.
		

			
	
			
				 Section 12.6
			

			
	
			
			Removal of Buildings and Environmental Matters

		
			Upon termination of this Agreement:
		

			
	
			
				 (a)
			

			
	
			
			except for any works performed for security or stability purposes which may not be removed pursuant to the Mexican Mining Law, all buildings, plant, equipment, machinery, tools, appliances and supplies which may have been brought upon the Project by or on behalf of Alamos and/or Alamos Mexico, as may be the case, as Operator shall be removed by the Alamos Companies at any time not later than 30 days after 

		 

		

			

		

			 

		

			 31

 

	termination of this Agreement, unless other arrangements on terms satisfactory to Vista are made between Alamos and Vista; and

			
	
			
				 (b)
			

			
	
			
			Alamos shall perform, or cause Alamos Mexico to perform such rehabilitation, reclamation or pollution control on the Project as may be required as a result of the activities thereon by the Alamos Companies or their Agents to the standard required in accordance with Applicable Laws and regulatory requirements.

			
	
			
				Article 13
			 – GENERAL PROVISIONS

			
	
			
				 Section 13.1
			

			
	
			
			Notices

		
			All notices and other communications hereunder shall be in writing and in the English language, and (unless some other mode of giving the same is specified or accepted in writing by the recipient) shall be effective when personally delivered, including delivery by recognized express courier service such as Fedex or DHL, to the addressee Party’s principal address stated below, or delivered by email to the address stated below, provided that any notice received after normal business hours at the place of delivery shall not be effective until the next Business Day.  Until otherwise specified by notice, the addresses for any notices shall be (if delivered other than by email, an email copy is to be sent concurrently) as follows:
		

			
	
			
				 (i)
			

			
	
			
			to Alamos, at:

		
			55 York Street, Suite 402
		

		
			Toronto, Ontario
		

		
			M5J 1R7
		

		
			Attention: Darren Koningen
		

		
			Email: dkoningen@mineralalamos.com
		

		
			 
		

		
			with a copy (which does not constitute notice) to:
		

		
			Gowling WLG (Canada) LLP
		

		
			Suite 1600, 100 King Street West, 

Toronto, Ontario  M5X 1G5
		

		
			Attention: R. Ian Mitchell
		

		
			Email: ian.mitchell@gowlingwlg.com
		

			
	
			
				 (ii)
			

			
	
			
			to Vista:

		
			Vista Gold Corp.
		

		
			7961 Shaffer Parkway, Ste. 5
		

		
			Littleton, Colorado, 80127
		

		
			U.S.A
		

		
			 
		

		
			Attention: Frederick Earnest
		

		
			Email:fhearnest@vistagold.com
		

		
			

		 

		

			

		

			 

		

			 32

 

		

		
			with a copy (which does not constitute notice) to:
		

		
			Borden Ladner Gervais LLP
		

		
			1200 – 200 Burrard Street
		

		
			Vancouver, British Columbia
		

		
			V7X 1T2
		

		
			Attention: Melanie Bradley
		

		
			Email: mebradley@blg.com
		

		
			A Party may change its address for notice by notice to the other Party.
		

			
	
			
				 Section 13.2
			

			
	
			
			Assignment and Enurement

			
	
			
				 (a)
			

			
	
			
			This Agreement shall bind and enure to the benefit of the Parties and their respective successors and permitted assigns. Subject to receipt of the prior written consent of the other Parties (such consent not to be unreasonably withheld) a Party may assign its rights or obligations hereunder. In order for any assignment to be effective, the transferee corporation(s) must sign a counterpart of this Agreement acknowledging that it is legally bound by the terms and conditions hereof.

			
	
			
				 (b)
			

			
	
			
			 Subsequent to the exercise of the Option in accordance with this Agreement, Alamos agrees not to sell or transfer, directly or indirectly, and to cause MGS to not sell or transfer,  any or all of the Project unless such assignee or transferee shall have previously agreed in writing to assume all of Alamos’  and Alamos Mexico’s obligations and liabilities to Vista under this Agreement and under the agreements deriving therefrom which may yet remain in effect in respect of that portion of the mining concessions forming part of the Project transferred or sold to such assignee or transferee.

			
	
			
				 Section 13.3
			

			
	
			
			Relationship of the Parties

		
			The rights, privileges, duties, obligations and liabilities, as between Vista and Alamos shall be separate and not joint or collective and nothing herein contained shall be construed as creating a partnership, association, agency or, subject as herein specifically provided, a trust of any kind or as imposing upon either of Vista and Alamos any partnership duty, obligation or liability, including any fiduciary duty or obligation.  Except as expressly provided to the contrary herein, neither Vista nor Alamos are liable for the acts, covenants and agreements of the other.
		

			
	
			
				 Section 13.4
			

			
	
			
			Waiver

		
			Except as otherwise provided in this Agreement, failure on the part of any Party to exercise any right hereunder or to insist upon strict compliance by the other Parties with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such right, term, covenant or condition, or limit the Party’s right thereafter to enforce any provision or exercise any right, power or remedy.  No provision of this Agreement shall be construed to be a waiver by either Party of any rights or remedies such Party may have against any other Parties for failure to comply with the provisions of this Agreement and, except as expressly provided in this Agreement, no remedy or right herein conferred is intended to be exclusive of any other remedy 

		 

		

			

		

			 

		

			 33

 

or right, but every such remedy or right shall be cumulative and shall be in addition to every other remedy or right herein conferred or hereafter existing at law or in equity.
		

			
	
			
				 Section 13.5
			

			
	
			
			Amendments

		
			This Agreement may not be amended or modified except by a written instrument signed by all of the Parties.  
		

			
	
			
				 Section 13.6
			

			
	
			
			Force Majeure

		
			No Party will be liable for its failure to perform any of its obligations under this Agreement due to a cause beyond its control (except those caused by its own lack of funds) including, but not limited to: acts of God, fire, flood, explosion, strikes, lockouts or other industrial disturbances; laws, rules and regulations or orders of any duly constituted court or Governmental Authority; or non-availability of materials or transportation or protests or demonstrations by environmental lobbyists, First Nations or indigenous peoples’ groups (each an “Intervening Event”). All time limits imposed by this Agreement (other than for the payment of monies) will be extended by a period equivalent to the period of delay resulting from an Intervening Event described in this Article. A Party relying on the provisions of this Section will take all reasonable steps to eliminate any Intervening Event and, if possible, will perform its obligations under this Agreement as far as practical, but nothing herein will require such Party to settle or adjust any labour dispute or to question or to test the validity of any law, rule, regulation or order of any duly constituted court or Governmental Authority or to complete its obligations under this Agreement if an Intervening Event renders completion impossible. A Party relying on the provisions of this Article shall give notice to the other Party forthwith upon the occurrence of the Intervening Event and forthwith after the end of the period of delay when such Intervening Event has been eliminated or rectified.
		

			
	
			
				 Section 13.7
			

			
	
			
			Further Assurances

		
			Each Party shall take from time to time upon request of the other Parties, for no additional consideration, such actions and shall execute and acknowledge in form required by Applicable Laws for recording or registering with the proper Person and shall deliver to the requesting Party such notices, deeds or other instruments incorporating, referring to, or carrying out the provisions of this Agreement as the requesting Party may reasonably deem necessary in order to preserve or protect its interests under this Agreement or such additional instruments as may be reasonably necessary or convenient to implement and carry out the intent and purpose of this Agreement.
		

			
	
			
				 Section 13.8
			

			
	
			
			Survival of Terms and Conditions

		
			The provisions of this Agreement shall survive its termination to the full extent necessary for their enforcement and the protection of the Party in whose favour they run.
		

			
	
			
				 Section 13.9
			

			
	
			
			No Third Party Beneficiary

		
			No term or provision of this Agreement or the appendices hereto is intended to be, or shall be construed to be, for the benefit of any Person, including any investment banker, broker, 

		 

		

			

		

			 

		

			 34

 

agent or creditor, and no such other Person shall have any right of cause of action hereunder.  This provision shall not affect Vista’s right to assign its rights under this Agreement pursuant to ‎Section 13.9.
		

			
	
			
				 Section 13.10
			

			
	
			
			Entire Agreement

		
			This Agreement, together with the Exploration Agreement and, if applicable, the Royalty Agreement, constitute the entire agreement between the Parties pertaining to the subject matter of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties, and there are no representations or warranties between the Parties, express or implied in connection with the subject matter of this Agreement except as specifically set out in this Agreement.
		

			
	
			
				 Section 13.11
			

			
	
			
			Counterparts

		
			This Agreement may be executed and delivered in any number of counterparts, which may be executed and delivered by facsimile transmission or electronically in PDF or similar secure format, and it will not be necessary that the signatures of all Parties be contained on any counterpart.  Each counterpart will be deemed an original and all counterparts together will constitute one and the same document. 
		

			
	
			
				 Section 13.12
			

			
	
			
			Time of Essence

		
			Time is of the essence of this Agreement.
		

		
			
		

		
			

		 

		

			

		

			 

		

			 35

 

		

		
			 
		

		
			IN WITNESS WHEREOF, the Parties hereto have executed this Agreement in duplicate as of the date first above written, to be effective as of the Effective Date.
		

		
			 
		

			
					
						/s/

					
					
						 

					
					
						 

				
	
					
						 

					
					
						VISTA GOLD CORP.

				
	
					
						 

					
					
						By:

					
					
						/s/ Frederick H. Earnest

				
	
					
						 

					
					
						 

					
					
						Name: Frederick H. Earnest

					
						Title: President and CEO

				
	
					
						 

					
					
						MINERA GOLD STAKE HOLDINGS CORP.

				
	
					
						 

					
					
						By:

					
					
						/s/ Frederick H. Earnest

				
	
					
						 

					
					
						 

					
					
						Name: Frederick H. Earnest

					
						Title: Director

				
	
					
						 

					
					
						GRANGES INC.

				
	
					
						 

					
					
						By:

					
					
						/s/ Frederick H. Earnest

				
	
					
						 

					
					
						 

					
					
						Name: Frederick H. Earnest

					
						Title: Director

				
	
					
						 

					
					
						MINERA ALAMOS INC.

				
	
					
						 

					
					
						By:

					
					
						/s/ Chris Chadder

				
	
					
						 

					
					
						 

					
					
						Name: Chris Chadder

					
						Title: Chief Financial Officer

				
	
					
						 

					
					
						MINERA GOLD STAKE, S.A. DE C.V.

				
	
					
						 

					
					
						By:

					
					
						/s/ Frederick H. Earnest

				
	
					
						 

					
					
						 

					
					
						Name: Frederick H. Earnest

					
						Title: Director

				
	
					
						 

					
					
						MINERA ALAMOS DE SONORA S.A. DE C.V.

				
	
					
						 

					
					
						By:

					
					
						/s/ Federico Tiburcio Alvarez Gasca

				
	
					
						 

					
					
						 

					
					
						Name: Federico Tiburcio Alvarez Gasca

					
						Title: Attorney in Fact

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			

		

			 

		

			 36

 

		

		
			APPENDIX A
		

		
			Property Concessions Information and Maps
		

			
					
						Lot 

					
					
						Title 

					
					
						Titleholder  

					
					
						Area (Hectares)

					
					
						Expiration Date 

					
					
						Location

					
					
						Royalty

					
					
						Claim Group

				
	
					
						Los Reyes Dos

					
					
						214131

					
					
						MGS

					
					
						17.3662 Has.

					
					
						Aug. 9, 2051

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Tres

					
					
						214302

					
					
						MGS

					
					
						197.0000 Has.

					
					
						Sep. 5, 2051

					
					
						Tamazula, Durango

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Cuatro

					
					
						217757

					
					
						MGS

					
					
						11.1640 Has.

					
					
						Aug. 12, 2052

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Cinco

					
					
						216632

					
					
						MGS

					
					
						319.9852 Has.

					
					
						May 16, 2052

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Seis

					
					
						225122

					
					
						MGS

					
					
						427.6609 Has.

					
					
						July 21, 2055

					
					
						Cosalá, Sinaloa

					
					
						DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Siete

					
					
						225123

					
					
						MGS

					
					
						4.8206 Has.

					
					
						July 21, 2055

					
					
						Cosalá, Sinaloa

					
					
						 DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes 8

					
					
						226037

					
					
						MGS

					
					
						9.0000 Has.

					
					
						Nov. 14, 2055

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Fracc. Oeste

					
					
						210703

					
					
						MGS

					
					
						476.9373 Has.

					
					
						Nov. 17, 2049

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Fracc. Sur

					
					
						212758

					
					
						MGS

					
					
						589.0985 Has.

					
					
						Oct. 7, 2049

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Fracc. Norte

					
					
						212757

					
					
						MGS

					
					
						1,334.4710 Has.

					
					
						Oct. 7, 2049

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Norma

					
					
						177858

					
					
						MGS

					
					
						150.0000 Has.

					
					
						Apr. 28, 2036

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Nueva Esperanza

					
					
						184912

					
					
						MGS

					
					
						33.0000 Has.

					
					
						Dec. 5, 2039

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						San Miguel

					
					
						185761

					
					
						MGS

					
					
						11.7455 Has.

					
					
						Dec. 13, 2039

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						San Manuel

					
					
						188187

					
					
						MGS

					
					
						55.7681 Has.

					
					
						Nov. 21, 2040

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						El Padre Santo

					
					
						196148

					
					
						MGS

					
					
						50.0000 Has.

					
					
						July 15, 2043

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				

		 

		

			VAN01: 4766874: v22A-1

		

 

	
					
						

					
						El Faisán

					
					
						211471

					
					
						MGS

					
					
						2.6113 Has.

					
					
						May 30, 2050

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Santo Niño

					
					
						211513

					
					
						MGS

					
					
						44.0549 Has.

					
					
						May 30, 2050

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						San Pablo

					
					
						212752

					
					
						MGS

					
					
						11.1980 Has.

					
					
						Nov. 21, 2050

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						San Pedro

					
					
						212753

					
					
						MGS

					
					
						9.0000 Has.

					
					
						Nov. 21, 2050

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Patricia

					
					
						212775

					
					
						MGS

					
					
						26.2182 Has.

					
					
						Jan. 30, 2051

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Martha I

					
					
						213234

					
					
						MGS

					
					
						46.6801 Has.

					
					
						Apr. 9, 2051

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Elota

					
					
						237661

					
					
						MGS

					
					
						947.6449 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 1

					
					
						237662

					
					
						MGS

					
					
						905.5592 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 2

					
					
						237663

					
					
						MGS

					
					
						3.2803 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 3

					
					
						237664

					
					
						MGS

					
					
						2.7052 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 4

					
					
						237665

					
					
						MGS

					
					
						8.1142 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 5

					
					
						237666

					
					
						MGS

					
					
						4.1698 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 6

					
					
						237667

					
					
						MGS

					
					
						0.4779 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 7

					
					
						237668

					
					
						MGS

					
					
						0.1535 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 8

					
					
						237669

					
					
						MGS

					
					
						0.6546 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				

		 

		

			VAN01: 4766874: v22A-2

		

 

	
					
						

					
						Elota Fracción 9

					
					
						237670

					
					
						MGS

					
					
						0.9503 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Diez De Mayo

					
					
						223401

					
					
						MGS

					
					
						0.1842 Has.

					
					
						Dec. 10, 2054

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						Prolongacion Del Recuerdo

					
					
						210497

					
					
						MGS

					
					
						91.4591 Has.

					
					
						Oct. 7, 2049

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						Prolongacion Del Recuerdo Dos

					
					
						209397

					
					
						MGS

					
					
						26.6798

					
					
						Apr. 8, 2049

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						Arcelia Isabel

					
					
						193499

					
					
						MGS

					
					
						60.3723

					
					
						Dec. 18, 2041

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						Dolores

					
					
						180909

					
					
						MGS

					
					
						222.0385

					
					
						Aug. 5, 2037

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						La Victoria

					
					
						210803

					
					
						MGS

					
					
						199.8708

					
					
						Nov. 29, 2049

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Notes: Gaitan Group: Can purchase Gaitan 2% NSR for $1million USD before July 31, 2053.

					
					
						 

					
					
						 

					
					
						 

				
	
					
						San Miguel Group: Can Purchase San Miguel 2% NSR for $1million USD at any time.

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			VAN01: 4766874: v22A-3

		

 

		

		
			SCHEDULE “A” to APPENDIX A
		

		
			Map of the Project
		

		
			
		

		
			

		 

		

			VAN01: 4766874: v22A-4

		

 

		

		
			
		

		
			 
		

		
			 
		

		
			

		 

		

			VAN01: 4766874: v22A-5

		

 

		

		
			APPENDIX B
		

		

		 

		

			VAN01: 4766874: v22B-1

		

 

	
					
						

					
						CONTRATO DE EXPLORACIÓN QUE CELEBRAN, POR UNA PARTE, MINERA GOLD STAKE, S.A. DE C.V. (EN LO SUCESIVO IDENTIFICADA COMO “MGS”), REPRESENTADA EN ESTE ACTO POR ________________; Y, POR OTRA PARTE, MINERA ALAMOS DE SONORA S.A DE C.V. (EN LO SUCESIVO IDENTIFICADA COMO “ALAMOS”), REPRESENTADA EN ESTE ACTO POR FEDERICO TIBURCIO ALVAREZ GASCA, CONFORME A LAS SIGUIENTES DECLARACIONES Y CLÁUSULAS.

					
						 

					
						DECLARACIONES

					
						 

					
						I.Declara MGS, por conducto de su representante:

					
						 

					
						a)Que es una sociedad minera constituida, organizada y existente bajo las leyes de México, que está capacitada para realizar negocios en México, incluyendo pero no limitado a la adquisición, disposición, exploración, desarrollo y explotación de concesiones mineras; y se encuentra debidamente inscrita ante el Registro Público de Comercio de la Ciudad de México y ante el Registro Público de Minería. 

					
						 

					
						b)Que tiene todos los requisitos y la capacidad legal necesaria para celebrar este Contrato.

					
						 

					
						c)Que su representante legal está debidamente facultado para representarla y para obligarla en los términos del presente Contrato; mismas facultades que a la fecha de celebración de este Contrato no le han sido revocadas, limitadas ni modificadas en forma alguna.

					
						 

					
						d)Que es la legítima titular del 100% (cien por ciento) de los derechos derivados de las concesiones mineras que se describen en el Anexo “A” del presente Contrato (en lo sucesivo identificadas como las “CONCESIONES”).

					
						 

					
						e)Que las CONCESIONES se encuentran al corriente en el cumplimiento de las obligaciones que establecen la Ley Minera y su Reglamento, incluyendo pagos de derechos sobre minería y la presentación de los informes anuales de comprobación de obras y trabajos y demás informes procedentes; así como libres de todo gravamen, afectación o limitación de dominio de cualquier naturaleza, excepto por las regalías que se mencionan al final del Anexo “A” (las “Regalías Subyacentes”); asimismo, las CONCESIONES no están sujetas a contratos que se encuentren vigentes con terceros y que pudiesen afectar en cualquier forma la titularidad, uso y operación de las mismas, por todo lo cual puede disponer de las CONCESIONES para los fines de este Contrato.

					
						 

					
						f)Que desea celebrar este Contrato con ALAMOS, en los términos y condiciones que se establecen en el mismo.

					
						 

					
						II.Declara ALAMOS, por conducto de su representante:

					
						 

					
						a)Que es una sociedad minera constituida, organizada y existente bajo las leyes de México, que está capacitada para realizar negocios en México, incluyendo pero no limitado a la adquisición, disposición, exploración, desarrollo y explotación de concesiones mineras; y se encuentra debidamente inscrita ante el Registro Público de Comercio de su domicilio social y ante el Registro Público de Minería. 

					
						 

					
						b)Que tiene todos los requisitos y la capacidad legal necesaria para celebrar este Contrato.

					
						 

					
						c)Que su representante legal está debidamente facultado para representarla y para obligarla en los términos del presente Contrato; mismas facultades que a la fecha de celebración de este Contrato no le han sido revocadas, limitadas ni modificadas en forma alguna.

					
						 

					
						d)Que desea celebrar este Contrato con MGS, en los términos y condiciones que se establecen en este documento. 

					
						 

					
						III.  Declaran ambas partes, por conducto de sus representantes:

					
						 

					
						a)Que con esta misma fecha las empresas matrices de MGS y de ALAMOS, respectivamente, han celebrado un contrato en el extranjero, por virtud del cual la empresa matriz de ALAMOS tiene la opción para adquirir, directa o indirectamente, la totalidad de las acciones representativas del capital social de MGS, en la medida en que los resultados de la exploración que realice ALAMOS en las CONCESIONES conforme a este Contrato, sean satisfactorios a la sola discreción de ALAMOS.

					
						 

					
						En virtud de las declaraciones anteriores, las partes convienen en las siguientes:

					
						 

					
						CLÁUSULAS

					
						 

					
						PRIMERA.Derecho de exploración. MGS otorga en este acto a ALAMOS, y ésta adquiere, el derecho exclusivo de explorar los lotes mineros amparados por las CONCESIONES a partir de la fecha de firma del presente Contrato (la “Fecha de Firma”), conforme a los términos y condiciones aquí contenidos, y según sea aplicable de conformidad con la Ley Minera, su Reglamento y demás disposiciones legales aplicables.

					
						 

					
						Las partes se obligan a ratificar el presente Contrato dentro de los 15 (quince) días naturales siguientes a la Fecha de Firma ante el notario o corredor público que designen las partes.

					
						

					
						SEGUNDA.Vigencia.  El presente Contrato estará vigente durante un plazo de 48 (cuarenta y ocho) meses, contados a partir de la Fecha de Firma de este Contrato; lo anterior, sin perjuicio de que las partes llegasen a convenir por escrito en algún plazo distinto. 

					
						 

					
						TERCERA.Trabajos.  La evaluación y exploración que realice ALAMOS, ya sea directamente o por conducto de contratistas que presten servicios a ALAMOS, comprende todo tipo de trabajos mineros que permitan localizar, identificar y cuantificar las sustancias y recursos minerales existentes en los lotes mineros amparados por las CONCESIONES, consistentes en preparación de sitios de trabajo, investigaciones y reconocimientos geológicos, incluyendo exploraciones geológicas, trabajos topográficos, muestreos, toda clase de estudios técnicos, incluyendo geofísicos y geoquímicos, perforaciones de cualquier clase y obras mineras tales como tajos, socavones, frentes, cruceros, tiros y demás que se consideren convenientes; asimismo, la exploración que realice ALAMOS comprende todas aquellas actividades relacionadas y permitidas por las disposiciones legales aplicables en materia minera, en particular las señaladas en los artículos 28 y 29 de la Ley Minera que, en su momento, sirvan para comprobar las obras y trabajos mineros a que se refieren las disposiciones legales aplicables.

					
						 

					
						CUARTA.Obras y construcciones.  Sujeto a que ALAMOS obtenga los permisos o autorizaciones que se requieran por parte de los dueños de terrenos superficiales según corresponda (para efectos de lo cual MGS cooperará en la medida que sea razonablemente solicitado por ALAMOS), ALAMOS queda facultada, desde ahora, para ejecutar a su costa y riesgo, por sí o por medio de terceros, todas las obras y construir las estructuras, mejoras, adaptaciones, vías de acceso y demás, así como para instalar y emplear toda la maquinaria y equipo que se requiera para la evaluación y exploración, los que podrán ser retirados en cualquier momento durante la vigencia de este Contrato, y durante un plazo adicional de 30 (treinta) días contados a partir de la terminación de este Contrato, sean propiedad de ALAMOS, de sus contratistas o de terceros; lo anterior, siempre y cuando su retiro no ponga en peligro la seguridad y estabilidad de los trabajos realizados, en cuyo caso no podrán retirarse, de conformidad con lo previsto por la Ley Minera y su Reglamento.

					
						 

					
						QUINTA.Comprobación de trabajos.  Los trabajos de exploración que ALAMOS efectúe bajo los términos de este Contrato deberán ser por un monto suficiente para comprobar a su debido tiempo ante las autoridades mineras competentes, las obras y trabajos mineros que se efectúen cada año; para efectos de lo cual ALAMOS se obliga a realizar inversiones en la exploración de los lotes amparados por las CONCESIONES, por cuando menos los montos mínimos de inversión que sean aplicables a las CONCESIONES, conforme lo disponen la Ley Minera y su Reglamento.

					
						 

					
						Para efectos de los informes de comprobación de obras y trabajos mineros correspondientes al ejercicio 2017, ALAMOS se obliga a entregar a MGS, a más tardar el 30 de abril de 2018, los comprobantes que acrediten sus inversiones en la exploración de las CONCESIONES por un monto proporcional al período comprendido entre la Fecha de Firma y el 31 de diciembre de 2017, con el fin de que MGS presente dichos informes de comprobación del 2017 durante el mes de mayo de 2018. A partir del mes de mayo de 2019 y durante toda la vigencia de este Contrato, ALAMOS se encargará de preparar y presentar, en tiempo y forma, ante las autoridades mineras correspondientes, los informes anuales de comprobación de las obras y trabajos mineros correspondientes a las CONCESIONES.

					
						 

					
						Si este Contrato se diera por terminado anticipadamente, en los términos de la Cláusula Décima, incisos 10.A.1. o 10.A.2. siguientes, ALAMOS deberá proporcionar a MGS los elementos de prueba suficientes para poder comprobar los trabajos mineros que se debieron haber efectuado hasta la fecha de terminación, los cuales deberán ser cuando menos por la cantidad proporcional a los montos mínimos de inversión anual que para las CONCESIONES establezcan la Ley Minera y su Reglamento para el año en que sea efectiva dicha terminación anticipada de este Contrato; lo anterior, a fin de que MGS presente en su momento los informes de comprobación de obras y trabajos que correspondan.

					
						 

					
						SEXTA.Pago de derechos sobre minería.A partir del primer semestre de 2018 y durante toda la vigencia del presente Contrato, ALAMOS asume la responsabilidad de efectuar la totalidad de los pagos de derechos sobre minería que correspondan a las CONCESIONES.

					
						 

					
						En caso de que se adeuden derechos sobre minería de las CONCESIONES, anteriores al segundo semestre de 2017, MGS será responsable de pagarlos.

					
						 

					
						SÉPTIMA.Otras Obligaciones.  Durante la vigencia de este Contrato será responsabilidad de ALAMOS:

					
						 

			
				 a)
			

		El cumplimiento de todas las obligaciones previstas en la Ley Minera y su Reglamento para los titulares de concesiones mineras, incluyendo pero no limitado a la presentación de informes estadísticos, técnicos y contables y la presentación de cualesquiera otros informes y el cumplimiento de cualesquiera otras obligaciones relacionadas con las CONCESIONES, además de las señaladas en las cláusulas anteriores del presente Contrato, para mantener la vigencia de las CONCESIONES y evitar la cancelación de las mismas y la imposición de sanciones administrativas; 
					
						 

			
				 b)
			

		Mantener la información existente y la que por virtud de este Contrato se genere respecto de las CONCESIONES, en correcto orden, lo cual incluye sufragar el costo de almacenamiento de los núcleos de barrenación en el lugar en el que actualmente se encuentran almacenados; y 
					
						 

			
				 c)
			

		Cumplir con todas y cada una de las obligaciones que tiene MGS frente al Ejido La Tasajera, conforme al Contrato de Ocupación Temporal celebrado con dicho ejido y que se encuentra vigente, cuyos derechos y obligaciones de MGS asumirá ALAMOS durante la vigencia de este Contrato.
					
						 

					
						OCTAVA.Situación de las Concesiones.Durante la vigencia del presente Contrato, MGS se abstendrá de ceder o gravar las CONCESIONES, así como de desistirse de las mismas y de reducir la superficie de los lotes amparados por las mismas; lo anterior, excepto que para llevar a cabo cualquiera de dichas acciones MGS cuente con el consentimiento previo y por escrito de ALAMOS. 

					
						

					
						NOVENA. Suspensión del cumplimiento de obligaciones.  Las obligaciones de ALAMOS estipuladas en el presente Contrato, quedarán en suspenso en el supuesto de que a partir de la Fecha de Firma se presente caso fortuito o de fuerza mayor, incluyendo entre otros guerras, disturbios, huelgas y paros legales o ilegales, interrupción de acceso a los lotes mineros amparados por las CONCESIONES por causas naturales o del hombre y similares que estén fuera del control y no puedan evitarse por ALAMOS; lo anterior, en el entendido de que: (i) lo antes señalado no incluye la falta de fondos o cualquier otra cuestión financiera que llegue a afectar la situación económica de ALAMOS; y (ii) dichos acontecimientos serán considerados como caso fortuito o de fuerza mayor siempre y cuando por virtud de los mismos se impida la realización de los trabajos mineros previstos en este contrato y tales acontecimientos no se hubieran provocado por acción, omisión o negligencia imputable a ALAMOS.

					
						 

					
						En caso de que se presente algún acontecimiento que dé lugar al caso fortuito o fuerza mayor, ALAMOS deberá informarlo inmediatamente por escrito a MGS, informándole en esa misma comunicación de los detalles de dicho suceso y de las medidas que ALAMOS estuviere tomando al respecto.  

					
						 

					
						DÉCIMA.Formas de terminar el Contrato.   El presente Contrato se dará por terminado por las causas señaladas a continuación:

					
						 

					
						10.A.Terminación anticipada.  El presente Contrato se dará por terminado anticipadamente conforme a los siguientes incisos:

					
						 

					
						10.A.1.ALAMOS tendrá el derecho de dar por terminado el presente Contrato en cualquier momento, mediante simple aviso por escrito entregado a MGS con cuando menos 30 (treinta) días naturales de anticipación a la fecha efectiva de terminación. A partir de la fecha en que ALAMOS dé dicho aviso de terminación anticipada a MGS, cesará la obligación de ALAMOS de hacer inversiones en la exploración de las CONCESIONES, excepto por: (i) lo señalado en el último párrafo de la Cláusula Quinta de este Contrato; y (ii) los pagos de derechos sobre minería correspondientes al semestre completo que se encuentre corriendo  a la fecha en que surta efectos el aviso de terminación anticipada.

					
						 

					
						10.A.2.El presente Contrato se dará por terminado por MGS en caso de que el contrato celebrado en el extranjero entre las empresas matrices de MGS y ALAMOS y al que se hace referencia en la declaración III a) de este documento se diese por terminado conforme a las disposiciones del mismo; en el entendido que la terminación por esta causa no liberará a ALAMOS de su obligación de invertir en la exploración de los lotes mineros amparados por las CONCESIONES para el año en que sea efectiva dicha terminación anticipada, cuando menos la cantidad proporcional a los montos mínimos de inversión anual que para las CONCESIONES establezcan la Ley Minera y su Reglamento los cuales son obligatorios; ni liberará a ALAMOS de cualquier responsabilidad en que incurra respecto de las CONCESIONES, derivada de: (i) las actividades que ALAMOS y/o sus contratistas realicen y su desempeño, de conformidad con el presente Contrato; o (ii) cualquier otra causa atribuible a ALAMOS.

					
						 

					
						10.A.3.ALAMOS estará obligada a entregar a MGS, dentro de los 30 (treinta) días siguientes a la fecha de terminación anticipada (ya sea ésta conforme al inciso 10.A.1 o al inciso 10.A.2 anteriores), los originales de toda la información  técnica, información confidencial y cualquier otra información y reportes que hubiere recibido de MGS o de cualquier empresa afiliada de MGS, así como copias (incluyendo información electrónica) de todos los estudios técnicos que hubiere realizado ALAMOS directamente o por conducto de contratistas en los lotes mineros amparados por las CONCESIONES. ALAMOS no asumirá responsabilidad alguna en cuanto al contenido, interpretación y evaluación de los mencionados estudios técnicos que ésta o sus contratistas lleven a cabo en los lotes amparados por las CONCESIONES.

					
						 

					
						10.B.  Terminación natural.  El presente Contrato se dará por terminado por conclusión natural en caso de que la empresa matriz de ALAMOS adquiera directa o indirectamente la totalidad de las acciones representativas del capital social de MGS. 

					
						 

					
						DÉCIMA PRIMERA.  Derecho a ceder.  Ninguna de las partes tendrá el derecho de ceder sus derechos y obligaciones derivados del presente Contrato, salvo con el consentimiento previo y por escrito de la otra parte (mismo consentimiento que no podrá ser negado de manera irrazonable) y en el entendido de que, para que cualquier cesión de derechos y obligaciones sea válida, quien adquiera los mismos deberá reconocer previamente y por escrito que se encuentra subrogado legalmente en la totalidad de tales derechos y obligaciones que deriven de este Contrato.

					
						 

					
						DÉCIMA SEGUNDA. Gastos e impuestos. Cada parte será responsable de dar cumplimiento a las obligaciones fiscales que a cada una de ellas corresponda, en términos de las disposiciones legales aplicables. Los honorarios, gastos e impuestos que ocasione la ratificación ante notario o fedatario público del presente Contrato, así como los derechos de registro por su inscripción en el Registro Público de Minería serán por cuenta de ALAMOS. 

					
						 

					
						DÉCIMA TERCERA.   Inscripción. A partir de la fecha en que las partes ratifiquen este Contrato ante el notario público que elijan (“Fecha de Ratificación”), ALAMOS se obliga a solicitar la inscripción del mismo ante el Registro Público de Minería dentro de los 15 (quince) días hábiles siguientes a la Fecha de Ratificación conforme lo establece el Reglamento de la Ley Minera.  MGS y ALAMOS se obligan a proveer y/o firmar cualquier documento adicional que pueda ser necesario para obtener dicha inscripción y para dar pleno efecto a este Contrato.

					
						 

					
						 

					
						DÉCIMA CUARTA.  Avisos. Todo aviso que deban darse las partes conforme al presente Contrato se hará de manera indubitable y por escrito, entregado en los domicilios que las partes señalen para ello, o bien por medio de correo electrónico con confirmación de recibido o evidencia de su entrega.

					
						 

					
						Hasta que se dé aviso en contrario, las partes señalan los siguientes domicilios y direcciones de correo electrónico:

					
						 

					
						MGS

					
						7961 Shaffer Parkway, Ste. 5

					
						Littleton, Colorado, 80127

					
						U.S.A

					
						Attention: Frederick Earnest

					
						Email:fhearnest@vistagold.com

					
						 

					
						ALAMOS

					
						Avenida de la Voluntad 1100 Piso2

					
						Residencial del Humaya

					
						Culiacán, Sinaloa

					
						Mexico 80054

					
						At’n.: Federico Tiburcio Alvarez Gasca 

					
						Email: ______________________

					
						 

					
						Cualquier aviso, notificación o instrumento se considerará dado y entregado en la fecha que sea efectivamente recibido en el domicilio o en la dirección de correo electrónico del destinatario correspondiente; lo anterior, a menos que se reciba fuera del horario normal de trabajo en el lugar de su entrega, en cuyo caso se considerará dado y entregado al siguiente día hábil.

					
						 

					
						Cualquier cambio de domicilio, de dirección de correo electrónico o de representante se comunicará por escrito a la otra parte, entregado en forma indubitable. No obstante lo anterior, si cualquiera de las partes omite notificar a la otra de cualquier cambio de domicilio o de dirección de correo electrónico, se entenderá que las notificaciones efectuadas en el último domicilio señalado o en la última dirección de correo electrónico señalada, serán plenamente válidas y surtirán todos sus efectos.

					
						 

					
						DÉCIMA QUINTA. Ausencia de Lesión.  Las partes, no obstante la naturaleza de este documento, declaran expresamente que en las convenciones objeto del mismo no existe lesión y, aún cuando la hubiese, renuncian expresamente al derecho de pedir la nulidad relativa de que tratan los artículos 2228 y 2239 del Código Civil para el Distrito Federal y sus correlativos del Código Civil Federal y de todos los Estados de los Estados Unidos Mexicanos.

					
						 

					
						 

					
						 

					
						DÉCIMA SEXTA.  Controversias.  Este Contrato está sujeto a las leyes de México. Para toda controversia que surja entre las partes derivada o relacionada con el presente Contrato, las partes se someten a la legislación aplicable y a la jurisdicción de los tribunales federales competentes de la Ciudad de México y renuncian expresamente a cualquier otra jurisdicción  que pudiera corresponderles en razón de sus domicilios actuales o futuros o por cualquier otra causa.

					
						 

					
						DÉCIMA SÉPTIMA.    Acuerdo Total.  El presente Contrato constituye el acuerdo total entre MGS y ALAMOS, y sustituye y reemplaza cualesquiera negociaciones, declaraciones, acuerdos o entendimientos previos entre las partes, sean orales o escritos, en relación con el mismo objeto. 

					
						 

					
						Leído que fue por las partes este documento, lo ratifican en todos sus términos y firman para debida constancia el __ de octubre de 2017, en la Ciudad de México.

					
						 

					
						MGS

					
						Minera Gold Stake, S.A. de C.V.

					
						 

					
						 

					
						 

					
						________________________________

					
						[Nombre:]

					
						[Cargo:]

					
						 

					
						ALAMOS

					
						Minera Alamos de Sonora S.A. de C.V.

					
						 

					
						 

					
						________________________________

					
						Nombre: Federico Tiburcio Alvarez Gasca

					
						Cargo: Apoderado

					
						 

					
					
						 

					
					
						EXPLORATION AGREEMENT ENTERED INTO BY AND BETWEEN, AS A FIRST PARTY, MINERA GOLD STAKE, S.A. DE C.V. (HEREINAFTER “MGS”), REPRESENTED HEREIN BY _______________; AND AS A SECOND PARTY, MINERA ALAMOS DE SONORA S.A. DE C.V. (HEREINAFTER “ALAMOS”), REPRESENTED HEREIN BY FEDERICO TIBURCIO ALVAREZ GASCA, PURSUANT TO THE FOLLOWING RECITALS AND CLAUSES. 

					
						 

					
						 

					
						RECITALS

					
						 

					
						I.  MGS declares, through its legal representative:

					
						 

					
						a)   That it is a mining company duly incorporated, organized and existing under the laws of Mexico, with full capacity to do business in Mexico, including but not limited to the acquisition, disposal, exploration, development and exploitation of mining concessions and is duly recorded before the Public Registry of Commerce of Mexico City and before the Public Registry of Mining.

					
						 

					
						b)That it meets all the requirements and has sufficient legal capacity to enter into this Agreement.

					
						 

					
						c)That its legal representative is duly authorized to represent it and to bind it under the terms and conditions of this Agreement, which authority has not been revoked, limited or modified in any manner as of the date of execution of this Agreement.

					
						 

					
						d)That it is the legitimate owner of one hundred percent (100%) of the rights deriving from the mining concessions described in Exhibit “A” attached to this Agreement (hereinafter referred to as the “CONCESSIONS”).

					
						 

					
						e)That the CONCESSIONS are current in the fulfillment of the legal obligations set forth in the Mining Law and its Regulations, including the payment of duties on mining and the filing of the proof of assessment works’ annual reports and any other reports as it is applicable, as well as they are free from any lien, encumbrance, or limitation of domain of any nature, except for the royalties indicated at the end of Exhibit “A” (the “Underlying Royalties”); likewise the CONCESSIONS are not subject to any agreements with third parties which are in effect and that could affect the titleholding, use or operation of the same; given all of which MGS may dispose of the CONCESSIONS for the purposes of this Agreement.

					
						 

					
						 

					
						f)    That it wishes to enter into this Agreement with ALAMOS, in the terms and conditions set forth herein.

					
						 

					
						II.ALAMOS declares, through its legal representative:

					
						 

					
						a)That it is a mining company duly incorporated, organized and existing under the laws of Mexico, with full capacity to do business in Mexico, including but not limited to the acquisition, disposal, exploration, development and exploitation of mining concessions and is duly recorded before the Public Registry of Commerce of Mexico City and before the Public Registry of Mining. 

					
						 

					
						b)That it meets all the requirements and has sufficient legal capacity to enter into this Agreement.

					
						 

					
						c)That its legal representative is duly authorized to represent it and to bind it under the terms and conditions of this Agreement, which authority has not been revoked, limited or modified in any manner as of the date of execution of this Agreement.

					
						 

					
						d)    That it wishes to enter into this Agreement with MGS, in the terms and conditions set out herein.

					
						 

					
						III.Both parties declare, through their legal representatives:  

					
						 

					
						a)That on this same date the parent companies of both MGS and ALAMOS have entered abroad into an agreement by virtue of which the parent company of ALAMOS has an option to acquire, directly or indirectly, the totality of the shares representing the capital stock of MGS if the results of the exploration to be performed by ALAMOS in the CONCESSIONS pursuant to this Agreement are satisfactory to ALAMOS at its sole discretion.

					
						 

					
						 

					
						By virtue of the above declarations, the parties have agreed on the following:

					
						 

					
						CLAUSES

					
						 

					
						FIRST.  Exploration rights.  MGS hereby grants to ALAMOS, and the latter acquires, the exclusive right to explore the mining lots covered by the CONCESSIONS as from the date of execution of this agreement (the “Date of Execution”), under the terms and conditions herein contained, and as applicable according to the Mining Law, its Regulations and any other applicable legal provisions.

					
						 

					
						The parties shall ratify this Agreement, within 15 (fifteen) calendar days following the Date of Execution, before the notary public or public attestor to be designated by the parties therefor.

					
						 

					
						SECOND.Duration. This Agreement shall be in force during a term of 48 (forty eight) months starting on the Date of Execution of this Agreement; the foregoing without prejudice of any other term the parties could agree in the future in writing. 

					
						 

					
						THIRD.Works.   The evaluation and exploration to be performed by ALAMOS, either directly or by means of contractors providing services to ALAMOS, shall include any kinds of mining works aimed at locating, identifying and quantifying mineral substances and mineral resources existing in the mining lots covered by the CONCESSIONS, consisting of the preparation of work sites and investigations, geological surveys, including geological explorations, topographic works, samplings, any kind of technical studies such as geophysical and geochemical studies, any type of drilling and mining works such as pits, adits, dirfts, cross cuts, blasts and any other works that ALAMOS deems convenient; likewise the exploration to be carried out by ALAMOS shall be comprised of all related activities which are allowed by the mining legal provisions and particularly those contemplated in articles 28 and 29 of the Mining Law which are useful for the purposes of the proof of assessment works to be made in due course in the terms of the applicable legal provisions.

					
						 

					
						 

					
						FOURTH.  Works and constructions.  Subject to ALAMOS obtaining the permits or authorizations it may need from surface owners as it may be applicable (for which purposes MGS shall cooperate to the extent it is reasonably requested by ALAMOS),  ALAMOS shall be entitled to perform at its own risk and cost, either by itself or by means of third parties, any kinds of works and to construct any structures, improvements, adaptations, access roads, as well as to install and use any machinery and equipment it may need for the evaluation and exploration and which may be removed at any time during the life of this Agreement and during an additional term of 30 (thirty) days following the date of termination of this Agreement, whether those are property of ALAMOS, of its contractors or of third parties; the preceding only, if and when their removal does not put at risk the safety and stability of the works done, in which case they may not be removed pursuant to that set forth by the Mining Law and its Regulations.

					
						 

					
						 

					
						 

					
						FIFTH.    Assessment of works.  The exploration works that ALAMOS shall perform under the terms of this Agreement shall be enough to prove in due time to the competent mining authorities the minimum works and investments required every year, for which purposes ALAMOS will be obligated to make investments in the exploration of the mining lots covered by the CONCESSIONS at least for the minimum amounts of investment applicable to the CONCESSIONS, pursuant to the terms of the Mining Law and its Regulations.

					
						 

					
						 

					
						For the purposes of the proof of assessment works’ reports corresponding to the year 2017, ALAMOS is obligated to deliver to MGS not later than April 30, 2018, the documents evidencing its investments in the exploration of the CONCESSIONS for a proportionate amount considering the period comprised between the Date of Execution and December 31, 2017, in order for MGS to file during the month of May 2018 the aforesaid reports of 2017.  As from May, 2019 and during the life of this Agreement, ALAMOS shall duly prepare and timely file before the competent mining authorities the proof of assessment works’ annual reports corresponding to the CONCESSIONS.

					
						 

					
						 

					
						 

					
						Should this Agreement be early terminated, pursuant to the terms of Clause Tenth, sections 10.A.1. or 10.A.2. below, ALAMOS shall provide to MGS all the necessary elements of proof to confirm the performance of mining works that should have been completed prior to the early termination date of this Agreement, and which shall be at least for the proportionate amount to the minimum annual investment established for the CONCESSIONS by the Mining Law and its Regulations for the year the early termination is effective; the preceding in order for MGS to file in due course the respective assessment works reports as applicable.

					
						 

					
						 

					
						SIXTH.Duties on Mining.  As from the first semester of 2018 and during all the life of this Agreement, ALAMOS assumes the responsibility of making the payment of all duties on mining (a.k.a. mining duties or mining taxes) corresponding to the CONCESSIONS.

					
						 

					
						In the event that there are any duties on mining due on the CONCESSIONS for any period prior to the second semester of 2017, MGS shall be responsible to pay such. 

					
						 

					
						SEVENTH.Other Obligations.  As long as this Agreement is in effect ALAMOS will be responsible for:

					
						 

			
				 a)
			

		The fulfillment of all the obligations provided for in the Mining Law and its Regulations for holders of mining concessions, including but not limited to the filing of statistic, technical or accounting reports and the filing of any other reports or the fulfillment of any other obligations related to the CONCESSIONS, in addition to those mentioned in the previous clauses of this Agreement, to keep the CONCESSIONS in effect and in good standing and to avoid the cancellation of same and the imposition of administrative fines;
					
						 

					
						 

			
				 b)
			

		Keep the existing data and such data to be generated by virtue of this Agreement with respect to the CONCESSIONS in good order, including to bear the cost of the storage of drilling core at the place where this is presently stored; and
					
						 

					
						 

					
						 

			
				 c)
			

		Fulfill each and all of the obligations MGS has towards the Ejido La Tasajera pursuant to the Temporary Occupancy Agreement entered into with said ejido and currently in effect, and which rights and obligations of MGS shall be assumed by ALAMOS during the life of this Agreement.  
					
						 

					
						 

					
						EIGHTH.Situation of the Concessions.  As long as this Agreement is in force and effect, MGS shall abstain from assigning or placing a lien on the CONCESSIONS, as well as from dropping them or reducing the surface of the mining lots covered by them; the foregoing except that for any of said actions MGS has the prior written consent from ALAMOS.

					
						 

					
						 

					
						NINTH.Suspension of the performance of obligations.  ALAMOS ́s obligations provided for in this Agreement shall be suspended in case that as from the Date of Execution there is an event of force majeure or acts of God, including among others, wars, disturbance, strikes and legal or illegal work stoppages, interruption of access to the mining lots covered by the CONCESSIONS by natural or man-made causes and similar causes beyond the control of ALAMOS and unavoidable to it; the above in the understanding that: (i) the above shall not include the lack of funds or any other financial condition which could affect ALAMOS’s economic situation; and (ii) the aforesaid events shall be considered as force majeure or acts of God if and when by virtue of same the performance of the mining works contemplated herein is prevented and said events had not been caused by an action, omission or negligence attributable to ALAMOS.

					
						 

					
						 

					
						 

					
						In the event of force majeure or an act of God ALAMOS shall forthwith notify MGS in writing, advising it in such communication of the respective details of said event and of the measures ALAMOS is implementing in connection thereof.

					
						 

					
						 

					
						TENTH.Manners to terminate this Agreement.  This agreement shall terminate pursuant to the following:

					
						 

					
						 

					
						10.A.Advanced termination.  This Agreement shall be terminated in advance according to the following paragraphs:

					
						 

					
						10.A.1.   ALAMOS shall have the right to terminate this agreement at any time by giving written notice to MGS at least 30 (thirty) calendar days in advance of the effective termination date. From the date ALAMOS gives the advanced termination notice to MGS, ALAMOS shall be released from its obligation to make any further investments in the exploration of the CONCESSIONS, except for (i) that indicated in the last paragraph of Fifth Clause above; and (ii) the payment of duties on mining corresponding to the whole semester running at the time the termination notice is effective. 

					
						 

					
						 

					
						 

					
						 

					
						10.A.2. This agreement shall be terminated by MGS in case the agreement entered into abroad by and between the parent companies of MGS and ALAMOS and to which reference is made in recital III a) above is terminated pursuant to the provisions indicated therein; in the understanding that the termination for this reason will not relieve ALAMOS from its obligation of investing in the exploration of the mining lots covered by the CONCESSIONS for the year the advance termination is effective at least the proportionate amount to the minimum annual investment established for the CONCESSIONS by the Mining Law and its Regulations which are compulsory nor it will relieve ALAMOS from any liability ALAMOS incur regarding the CONCESSIONS resulting from (i) the activities Alamos and/or its contractors carried out and their performance, pursuant to the terms and conditions of this Agreement; or (ii) any other reason attributable to ALAMOS. 

					
						 

					
						10.A.3.   Within 30 (thirty) days following the advance termination date of this Agreement (either pursuant to section 10.A.1 or section 10.A.2 above), ALAMOS shall be obligated to furnish to MGS the originals of all the technical information confidential information and any other data, studies and reports that ALAMOS would have received from MGS or from any affiliate of MGS, as well as copies (including electronic data) of all the technical studies which ALAMOS may have performed in the mining lots covered by the CONCESSIONS either directly or through its contractors or agents. ALAMOS will not assume any responsibility in relation to the content, interpretation and evaluation of such technical studies that ALAMOS or its contractors or agents perform in the mining lots covered by the CONCESSIONS.

					
						 

					
						

					
						10.B.    Natural conclusion.  This agreement will terminate due to natural conclusion in case the parent company of ALAMOS acquires, directly or indirectly, the totality of the shares representing the capital stock of MGS.

					
						 

					
						 

					
						ELEVENTH.Right to assign this Agreement. The parties shall not be entitled to assign their rights and obligations arising from this Agreement, except with the previous written consent of the other party (which consent shall not be unreasonably withheld) and in the understanding that in order for any assignment of rights and obligations to be effective, the transferee must previously acknowledge in writing that it is legally bound and subrogated in the totality of said rights and obligations deriving from this Agreement.

					
						 

					
						 

					
						TWELFTH.Expenses and taxes. Each party shall be responsible for the fulfillment of the tax obligations corresponding to each one of them in the terms of the applicable legal provisions. The fees, expenses and taxes that may arise from the ratification of this agreement before a notary public or a public attestor, as well as the registration duties payable for its recording at the Public Registry of Mining shall be on the account of ALAMOS.

					
						 

					
						THIRTEENTH.Recording.  From the date the parties hereto ratify this Agreement before the notary public or public attestor to be elected by them (“Date of Ratification”), ALAMOS shall pursue the recording of the same before the Public Registry of Mining within the 15 (fifteen) working days following the Date of Ratification pursuant to that provided by the Regulations to the Mining Law. MGS and ALAMOS are further obligated to provide and/or to sign any additional document that may be necessary to obtain said registration and to give full effects to this agreement.

					
						 

					
						FOURTEENTH.   Notices.  All notices between the parties pursuant to this Agreement shall be given in an authentic manner in writing and delivered at the addresses indicated by the parties or by means of email with confirmation of receipt or proof of delivery.

					
						 

					
						 

					
						Until further notice, the parties hereby designate the following addresses and email addresses:

					
						 

					
						 

					
						MGS

					
						7961 Shaffer Parkway, Ste. 5

					
						Littleton, Colorado, 80127

					
						U.S.A

					
						Attention: Frederick Earnest

					
						Email:fhearnest@vistagold.com

					
						 

					
						ALAMOS

					
						Avenida de la Voluntad 1100 Piso2

					
						Residencial del Humaya

					
						Culiacán, Sinaloa

					
						Mexico 80054

					
						At’n.: Federico Tiburcio Alvarez Gasca 

					
						Email: ______________________

					
						 

					
						Any notice, notification or instrument shall be effective on the date it is actually received at the respective addressee’s address or email address; the above unless it is received after normal business hours at the place of delivery in which case it shall be effective the next business day.

					
						 

					
						 

					
						 

					
						Any change of address, of email address or of representative shall be informed in writing to the other party delivered in an authentic manner. Notwithstanding the foregoing, if any party fails to notify the other of any change of address or of email address it shall be understood that the notices delivered at the last address or the last email address designated by said party shall be valid and effective for all legal purposes.

					
						 

					
						 

					
						 

					
						FIFTEENTH. Absence on harm.  Notwithstanding the legal nature of this document the parties hereto declare that there is no harm in the provisions of this Agreement and even if there would be any they expressly waive the right to claim for the relative nullity indicated in articles 2228 and 2239 of the Civil Code for the Federal District and their correlative articles of the Federal Civil Code and of the civil codes of all the States of the United Mexican States.    

					
						 

					
						 

					
						 

					
						SIXTEENTH.  Controversies.  This Agreement is subject to the laws of Mexico. Any controversy between the parties arising out of or in connection with this Agreement shall be subject to the applicable legislation and submitted to the jurisdiction of the federal competent courts of Mexico City and the parties hereto expressly waive any other jurisdiction that may correspond to them by virtue of their current or future domiciles or for any other reason.

					
						 

					
						 

					
						SEVENTEENTH. Complete agreement. This agreement constitutes the complete agreement among MGS and ALAMOS and, therefore, it substitutes and replaces any previous negotiations, agreements or understandings among the parties hereto, whether oral or written, in respect to the same subject matter. 

					
						 

					
						Having read this document, the parties hereto ratify the same in its entirety and execute the same on the ___ day of October, 2017 in Mexico City.

					
						 

					
						MGS

					
						Minera Gold Stake, S.A. de C.V.

					
						 

					
						 

					
						 

					
						________________________________

					
						[Name:]

					
						[Position:]

					
						 

					
						ALAMOS

					
						Minera Alamos de Sonora S.A. de C.V.

					
						 

					
						 

					
						________________________________

					
						Name: Federico Tiburcio Alvarez Gasca

					
						Position: Attorney in Fact

					
						 

					
						 

				

		 

		

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			Anexo “A”  /  EXHIBIT “a”
		

		
			CONCESIONES  /  CONCESSIONS
		

			
					
						Lote / Lot 

					
					
						Título / Title 

					
					
						Titular / Titleholder  

					
					
						Área (hectáreas)   Area (Hectares)

					
					
						Fecha de Vencimiento / Expiration Date 

					
					
						Ubicación / Location

					
					
						Regalías / Royalty

					
					
						Grupo / Claim Group

				
	
					
						Los Reyes Dos

					
					
						214131

					
					
						MGS

					
					
						17.3662 Has.

					
					
						Aug. 9, 2051

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Tres

					
					
						214302

					
					
						MGS

					
					
						197.0000 Has.

					
					
						Sep. 5, 2051

					
					
						Tamazula, Durango

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Cuatro

					
					
						217757

					
					
						MGS

					
					
						11.1640 Has.

					
					
						Aug. 12, 2052

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Cinco

					
					
						216632

					
					
						MGS

					
					
						319.9852 Has.

					
					
						May 16, 2052

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Seis

					
					
						225122

					
					
						MGS

					
					
						427.6609 Has.

					
					
						July 21, 2055

					
					
						Cosalá, Sinaloa

					
					
						DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Siete

					
					
						225123

					
					
						MGS

					
					
						4.8206 Has.

					
					
						July 21, 2055

					
					
						Cosalá, Sinaloa

					
					
						 DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes 8

					
					
						226037

					
					
						MGS

					
					
						9.0000 Has.

					
					
						Nov. 14, 2055

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Fracc. Oeste

					
					
						210703

					
					
						MGS

					
					
						476.9373 Has.

					
					
						Nov. 17, 2049

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Fracc. Sur

					
					
						212758

					
					
						MGS

					
					
						589.0985 Has.

					
					
						Oct. 7, 2049

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Los Reyes Fracc. Norte

					
					
						212757

					
					
						MGS

					
					
						1,334.4710 Has.

					
					
						Oct. 7, 2049

					
					
						Cosalá, Sinaloa

					
					
						CTSL 3%, DMSL 1%

					
					
						San Luis

				
	
					
						Norma

					
					
						177858

					
					
						MGS

					
					
						150.0000 Has.

					
					
						Apr. 28, 2036

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Nueva Esperanza

					
					
						184912

					
					
						MGS

					
					
						33.0000 Has.

					
					
						Dec. 5, 2039

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						San Miguel

					
					
						185761

					
					
						MGS

					
					
						11.7455 Has.

					
					
						Dec. 13, 2039

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				

		 

		

			VAN01: 4766874: v22B-1

		

 

	
					
						

					
						San Manuel

					
					
						188187

					
					
						MGS

					
					
						55.7681 Has.

					
					
						Nov. 21, 2040

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						El Padre Santo

					
					
						196148

					
					
						MGS

					
					
						50.0000 Has.

					
					
						July 15, 2043

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						El Faisán

					
					
						211471

					
					
						MGS

					
					
						2.6113 Has.

					
					
						May 30, 2050

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Santo Niño

					
					
						211513

					
					
						MGS

					
					
						44.0549 Has.

					
					
						May 30, 2050

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						San Pablo

					
					
						212752

					
					
						MGS

					
					
						11.1980 Has.

					
					
						Nov. 21, 2050

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						San Pedro

					
					
						212753

					
					
						MGS

					
					
						9.0000 Has.

					
					
						Nov. 21, 2050

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Patricia

					
					
						212775

					
					
						MGS

					
					
						26.2182 Has.

					
					
						Jan. 30, 2051

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Martha I

					
					
						213234

					
					
						MGS

					
					
						46.6801 Has.

					
					
						Apr. 9, 2051

					
					
						Cosalá, Sinaloa

					
					
						SMG 2%; DMSL 1%

					
					
						San Miguel

				
	
					
						Elota

					
					
						237661

					
					
						MGS

					
					
						947.6449 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 1

					
					
						237662

					
					
						MGS

					
					
						905.5592 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 2

					
					
						237663

					
					
						MGS

					
					
						3.2803 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 3

					
					
						237664

					
					
						MGS

					
					
						2.7052 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 4

					
					
						237665

					
					
						MGS

					
					
						8.1142 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 5

					
					
						237666

					
					
						MGS

					
					
						4.1698 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				

		 

		

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						Elota Fracción 6

					
					
						237667

					
					
						MGS

					
					
						0.4779 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 7

					
					
						237668

					
					
						MGS

					
					
						0.1535 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 8

					
					
						237669

					
					
						MGS

					
					
						0.6546 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Elota Fracción 9

					
					
						237670

					
					
						MGS

					
					
						0.9503 Has.

					
					
						Apr. 19, 2061

					
					
						Cosalá, Sinaloa Tamazula, Durango

					
					
						NIL

					
					
						 

				
	
					
						Diez De Mayo

					
					
						223401

					
					
						MGS

					
					
						0.1842 Has.

					
					
						Dec. 10, 2054

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						Prolongacion Del Recuerdo

					
					
						210497

					
					
						MGS

					
					
						91.4591 Has.

					
					
						Oct. 7, 2049

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						Prolongacion Del Recuerdo Dos

					
					
						209397

					
					
						MGS

					
					
						26.6798

					
					
						Apr. 8, 2049

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						Arcelia Isabel

					
					
						193499

					
					
						MGS

					
					
						60.3723

					
					
						Dec. 18, 2041

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						Dolores

					
					
						180909

					
					
						MGS

					
					
						222.0385

					
					
						Aug. 5, 2037

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						La Victoria

					
					
						210803

					
					
						MGS

					
					
						199.8708

					
					
						Nov. 29, 2049

					
					
						Cosalá, Sinaloa

					
					
						3% DMSL; 2% Gaitan

					
					
						Gaitan

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Notas: Grupo Gaitán: Se puede comprar la regalía 2% NSR de Gaitán por $1 millón dls. E.U.A. antes del 31 de julio de 2053.  / Notes: Gaitan Group: Can purchase Gaitan 2% NSR for $1million USD before July 31, 2053.

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Grupo San Miguel: Se puede comprar la regalía 2% NSR de San Miguel por $1 millón dls. E.U.A. en cualquier momento.  / San Miguel Group: Can Purchase San Miguel 2% NSR for $1million USD at any time.

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

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			APPENDIX C
		

		
			Joint Venture Terms
		

			
					
						Defined Terms

					
					
						The words and terms as defined in the Agreement to which this Appendix  “C” is attached shall have the same meaning for the purposes of this Appendix “C” unless otherwise specifically indicated.

				
	
					
						Structure

					
					
						The structure of the joint venture (the “Joint Venture”)  will be definitely settled by the Parties taking into consideration advice from the respective Parties’ tax and legal advisors.  The Parties will cooperate to implement a joint venture structure that maximizes efficiency, and is consistent with industry standards, so long as the structure does not adversely impact either Party.    

				
	
					
						Interest

					
					
						Upon formation of the Joint Venture, Alamos (or its designate, subject to the Vista’s consent (not to be unreasonably withheld)) will have and hold a 51% participating interest in the Joint Venture and Vista (or its designate, subject to the Alamos’ consent (not to be unreasonably withheld)) will have and hold a 49% participating interest in the Joint Venture (each being the respective Party's “Interest”).

				
	
					
						Initial Capital Contribution

					
					
						At the commencement of the Joint Venture, Alamos shall be deemed to have made an initial capital contribution of $__________ [such amount shall be equal to Alamos’ prior exploration and development costs in connection with the Underground Resources] and Vista shall be deemed to have made an initial capital contribution in the amount of $__________ [such amount shall be determined in accordance with the following formula:

					
						 

					
						 

					
						A = (49 * B)

					
						           51

					
						Where:

					
						B  is Alamos’ prior exploration and development costs in connection with the Underground Resources]

				
	
					
						Costs and Share of Minerals

					
					
						Each Party will contribute to all costs attributable to the development and mining of the Underground Resources through a formal cash call process to be established, and take its share of production, if any, from the Underground Resources in proportion to its Interest from time to time.

				

		 

		

			VAN01: 4766874: v22C-1

		

 

	
					
						

					
						Management Committee

					
					
						All strategic planning and operations on and in connection with the Underground Resources shall be managed by a committee (the “Management Committee”) consisting of two (2) representative of each of the Parties. The Management Committee will decide every question, other than those matters included under the heading “Matters to be Decided” which may only be decided with the consent of each Party holding greater than a 20% Interest, submitted to it by simple majority with the representative or representatives of each Party being entitled to cast collectively that number of votes which is equal to the percentage Interest of the party they represent.  Quorum shall be one representative from each Party. No business other than the election of a chairman, if any, and the adjournment or termination of the meeting will be transacted at any meeting unless a quorum is present.  If within 30 minutes from the time appointed for a meeting, a quorum is not present, then the meeting will, at the election of those representatives who are present:

			
				(i)
			

		be dissolved; or

			
				(ii)
			

		be adjourned to the same place but on a date and at a time to be fixed by the chairman of the meeting before the adjournment, which will be not less than seven days following the date for which the meeting was called.
					
						Notice of the adjourned meeting will be given to the representatives of all Parties forthwith after the adjournment of the meeting.  If at the adjourned meeting, a quorum is not present within 30 minutes from the time appointed, then the representative or representatives present and entitled to attend and vote at the meeting, will constitute a quorum.  

				
	
					
						Disputes

					
					
						Any controversy or claim arising out of or relating to the Joint Venture Agreement, shall be determined by arbitration administered by ICDR Canada in accordance with its Canadian Arbitration Rules. The number of arbitrators shall be one (1) and the place of arbitration shall be Toronto,  Ontario. The language of the arbitration shall be English.    

				
	
					
						Governing Law

					
					
						The Joint Venture Agreement shall be governed by the laws of the Province of Ontario and the Federal Laws of Canada applicable therein.

				
	
					
						Operator

					
					
						Alamos shall be the initial operator (the “Operator”) and shall remain the Operator until removed by the Management Committee who shall then be entitled to appoint a new Operator or removed in accordance with the terms of the Joint Venture Agreement.  The Operator shall be entitled to charge for management fees (on a cost recovery basis) in accordance with standard industry practice.

				

		 

		

			VAN01: 4766874: v22C-2

		

 

	
					
						

					
						Election to Contribute

					
					
						A Party shall elect whether or not to contribute to each Program (as defined below) and budget. If a Party elects not to contribute to a budget, its Interest shall be reduced, such that a Party’s Interest at any time shall be calculated by dividing the subject Party’s deemed initial capital contribution and actual expenditures by the deemed initial capital contribution and actual expenditures of all of the Parties, and multiplying the resulting fraction by 100. 

				
	
					
						Default

					
					
						If a Party elects to contribute to a Program and budget and then fails to pay an invoice in a timely manner, that Party (the “Defaulting Party”) shall be deemed to have elected not to contribute to the budget. The non-Defaulting Party shall be entitled to complete the original Program or a revised Program and the Defaulting Party’s Interest shall be reduced by twice the amount of the reduction calculated under Election to Contribute. 

				
	
					
						Effect of Election Not to Contribute

					
					
						If at any time a Party’s Interest is reduced to below ten percent (10%), it shall be deemed to have assigned and conveyed its Interest to the other Party(ies) and will cease to be a party to the Joint Venture Agreement. In the event that either Party's Interest is conveyed in accordance with this section, such Party shall be granted a Royalty substantially on the terms of the Underground Royalty included in Appendix D of the Option Agreement, including, without limitation the requirement to provide security.

				

		 

		

			VAN01: 4766874: v22C-3

		

 

	
					
						

					
						Matters to be Decided

					
					
						The Operator shall not take any of the following actions without obtaining the prior written consent of each Party holding greater than a 20% Interest: 

			
				 a)
			

		termination of the Joint Venture;

			
				 b)
			

		annual operating plans and Programs that are materially inconsistent with the strategy as set out by the Management Committee; 

			
				 c)
			

		abandon, sell or otherwise dispose of any asset of the Joint Venture having a net book value greater than $100,000 or, if related to normal business operations, a net book value greater than $500,000;

			
				 d)
			

		any suspension or termination of mining operations;

			
				 e)
			

		other than those reductions in response to unanticipated or uncontrollable events which may include (but not limited to) environmental matters, change in commodity price, safety matters, plant and equipment failure, or other uncontrollable events that dictate the need for such reduction, any reduction in excess of 20% of the anticipated monthly mining or milling rates from those established in an operating plan or Program;

			
				 f)
			

		create, or permit to remain, any material liens, upon any asset of the Joint Venture, except for any liens which are customary in the circumstances of a mining operation;

			
				 g)
			

		abandon, sell or otherwise dispose of the Project, or any part thereof;

			
				 h)
			

		acquisition of assets, capital assets or mine developments in an amount in excess of $500,000;

			
				 i)
			

		settle any suit, claim or demand with respect to the Joint Venture involving an amount in excess of $500,000; or

			
				 j)
			

		enter into or amend any material contract with persons who are not at arm’s length to the Operator or either Party in an amount in excess of $100,000.
				
	
					
						Title

					
					
						Subject to agreement by the Parties at the time of the formation of the Joint Venture, it is expected that title to the Underground Resources shall be held by the Operator or by a nominee company at option of the Operator.

				
	
					
						Access

					
					
						The Operator shall permit the Parties, at their own expense, reasonable access to the results of all work done on the Project by the Joint Venture. The results of all Joint Venture work shall be held in strict confidence by the Parties except as required for continuous disclosure purposes under applicable securities laws.

				

		 

		

			VAN01: 4766874: v22C-4

		

 

	
					
						

					
						Area of Interest

					
					
						The area of interest (“Area of Interest”) shall be deemed to comprise that area which is included within two (2) kilometres of the outermost boundary of the mineral properties which constitute the Project as at the commencement of the Joint Venture.  Any acquisition within the Area of Interest by the Parties or their affiliates or other connected Parties, shall be made subject to the terms of the Joint Venture Agreement.  Provision with respect to the notice, election and procedure will be included in the Joint Venture.

				
	
					
						Operator’s Indemnity

					
					
						The Operator shall indemnify and save each of the Parties harmless from and against any loss, liability, claim, demand, damage and expense in connection with loss of life, personal injury or damage to the property (including, without limiting the generality of the foregoing, legal fees) arising out of any acts or omissions of the Operator caused by the gross negligence, willful misconduct or fraud of the Operator or the gross negligence, willful misconduct or fraud of the Operator’s officers, employees or agents.

					
						 

					
						Each Party will indemnify and save the Operator, in its capacity as such, harmless from and against any loss, liability, claim, demand, damage and expense in connection with loss of life, personal injury or damage to property (including, without limiting the generality of the foregoing, legal fees) arising out of any acts or omissions of the Operator or its officers, employees or agents that occurred in the course of performing the Operator’s duties, responsibilities and obligations under the Joint Venture Agreement, except to the extent caused by its own gross negligence, willful misconduct or fraud or the gross negligence, willful misconduct of fraud of its officers, employees or agents.    

				
	
					
						General Indemnity

					
					
						Each Party (an “Indemnifying Party”) shall indemnify and save each other Party (each, an “Indemnified Party”) harmless from against any loss, liability, claim, demand, damage and expense in connection with loss of life, personal injury or damage to property (including without limiting the generality of the foregoing, legal fees) howsoever cause, arising out of or relating to an advice or information provided to such Indemnified Party by such Indemnifying Party pursuant to this Agreement or otherwise in connection with any activities conducted pursuant hereto, provided that such losses are caused by the gross negligence, willful misconduct or fraud of such Indemnifying Party or as a consequence of a breach by the Indemnifying Party of its obligations under the Joint Venture Agreement. 

				
	
					
						Insurance

					
					
						The Management Committee shall cause the Operator to place and maintain with a reputable insurer or insurers such insurance, naming Vista, Alamos and the Operator as insureds.

				

		 

		

			VAN01: 4766874: v22C-5

		

 

	
					
						

					
						Relationship

					
					
						The rights, duties, obligations and liabilities of the Parties shall be several and not joint nor joint and several, it being the express purpose and intention of the Parties that their respective Interests shall be held as tenants in common.

				
	
					
						Right of First Offer

					
					
						If any Party intends to sell, transfer, assign or dispose of all or a portion of its Interest (in this section called the “Disposing Party”) other than to an Affiliate (provided the Disposing Party guarantees the obligations of the Affiliate under the Joint Venture Agreement) it will, prior to selling or disposing of the Interest, first offer to sell the Interest to the other Party (in this Section called the “Remaining Party”) for such consideration and upon such other terms and conditions as the Disposing Party deems fit.  The Remaining Party shall be entitled to elect, upon notice to the Disposing Party, within 30 days of its offer, to purchase the Interest to be disposed of, in which case the closing of the sale and purchase shall take place at a mutually agreeable time and place within 10 business days after all conditions to such sale have been satisfied or waived.  If, within 30 days of the Disposing Party’s offer to sell, the Remaining Party does not elect to purchase the Interest upon those terms and conditions the Disposing Party will be free to dispose of that Interest to a third party at any time within six months of the Remaining Party’s election but only for consideration substantially similar to or greater than the consideration stated in the Disposing Party’s offer to sell to the Remaining Party, and upon no more favourable terms and conditions as the offer to sell to the Remaining Party, provided, however, that the sale of the Interest to the third party shall be subject to the third party entering into an agreement with the Remaining Party whereby it agrees to be bound by the provisions of this Agreement.  Any Interest not disposed of by the Disposing Party as aforesaid will remain subject to the provisions of this subsection.

				

		 

		

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						Operator’s Duties

					
					
						Subject to the approval of each Program by the Management Committee, the powers and obligations of the Operator shall include the following:

			
				 a)
			

		to manage the Joint Venture and cause all mining operations to be performed in a good and workmanlike manner;

			
				 b)
			

		to keep the Project in good standing and to pay all applicable fees or charges;

			
				 c)
			

		to provide all supplies and services required for a Program;

			
				 d)
			

		to maintain and keep the assets of the Joint Venture in good operator condition;

			
				 e)
			

		to comply with all applicable laws;

			
				 f)
			

		to require the Operator’s contractors and subcontractors to take out and maintain Project and liability insurance;

			
				 g)
			

		to advise the non-Operator of any accident or occurrence resulting in any material damage or material harm or injury to any individual;

			
				 h)
			

		to keep adequate data, information and records of the Operator’s management of the Joint Venture and to keep suitable accounts which reflect all financial aspects of the Joint Venture and four times per year to make such available to the non- Operator, at the place designated by the Operator, within five (5) days of receipt of a written request for disclosure by the non-Operator;

			
				 i)
			

		to provide the non-Operator with monthly reports on activities on the Underground Resources during periods of active field work or when mine operations are active, quarterly reports and a detailed annual report on the Operator’s management of the Joint Venture, including an accounting of all expenditures made by the Operator under the current or previous Program; and
					
						 

			
				 j)
			

		to have all powers necessary to carry out, or cause to be carried out, all of the Operator’s obligations set out in the Joint Venture Agreement and to otherwise carry out, or cause to be carried out, all Programs approved by the Management Committee.
				

		 

		

			VAN01: 4766874: v22C-7

		

 

	
					
						

					
						Programs

					
					
						The Operator shall prepare a program (a “Program”) and submit such Program budget to the Management Committee for approval on the date which is the earlier of (i) the date which is ninety  (90) days following the formation of the Joint Venture, (ii) the date which is sixty (60) days following the completion of the immediately prior Program; and (iii) the date which is forty-five (45) days prior to the date of the annual meeting of the Management Committee each calendar year. The Management Committee must approve each Program prior to implementation. Each Program must contain:

			
				 a)
			

		a reasonably detailed outline of all development and/or mining activities which the Operator is to carry out on the Underground Resources and the time frame for each of the major elements of the Program;  

			
				 b)
			

		a reasonably itemized budget, broken down by month, of the projected capital and operating expenditures under the Program; and

			
				 c)
			

		the estimated amount and date of each payment that the non-Operator would have to make to the Operator.
				

		
			 
		

		
			
		

		
			

		 

		

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			APPENDIX F
		

		
			Maintenance Costs
		

		
			
		

		 

		

			VAN01: 4766874: v22F-1exhibit101changeinctrlse

  Exhibit 10.1  ATHENAHEALTH, INC.  CHANGE IN CONTROL SEVERANCE PLAN FOR CERTAIN U.S. OFFICERS AND EXECUTIVES  Effective October 23, 2017  

 

TABLE OF CONTENTS  Page   i   ARTICLE I BACKGROUND, PURPOSE AND TERM OF PLAN .................................. 1 Section 1.01 Purpose of the Plan ........................................................................ 1 Section 1.02 Term of the Plan............................................................................. 1 Section 1.03 Adoption of the Plan ...................................................................... 1 ARTICLE II DEFINITIONS ................................................................................................. 2 Section 2.01 “Annual Bonus” ............................................................................. 2 Section 2.02 “Base Salary” ................................................................................. 2 Section 2.03 “Board” .......................................................................................... 2 Section 2.04 “Cause” .......................................................................................... 2 Section 2.05 “Change in Control” ...................................................................... 2 Section 2.06 “Change in Control Termination” .................................................. 3 Section 2.07 “COBRA” ...................................................................................... 3 Section 2.08 “Code”............................................................................................ 3 Section 2.09 “Committee” .................................................................................. 3 Section 2.10 “Company” .................................................................................... 3 Section 2.11 “Effective Date” ............................................................................. 4 Section 2.12 “Eligible Employee” ...................................................................... 4 Section 2.13 “Employee” .................................................................................... 4 Section 2.14 “Employer” .................................................................................... 4 Section 2.15 “ERISA” ........................................................................................ 4 Section 2.16 “Exchange Act” ............................................................................. 4 Section 2.17 “Executive Severance Plan” .......................................................... 4 Section 2.18 “Good Reason Resignation” .......................................................... 4 Section 2.19 “Involuntary Termination” ............................................................. 5 Section 2.20 “Key Employee” ............................................................................ 5 Section 2.21 “Participant” ................................................................................... 5 Section 2.22 “Permanent Disability” .................................................................. 5 Section 2.23 “Plan” ............................................................................................. 5 Section 2.24 “Plan Administrator” ..................................................................... 5 Section 2.25 “Postponement Period” .................................................................. 5 Section 2.26 “Release”........................................................................................ 5 Section 2.27 “Separation from Service Date” ..................................................... 6 Section 2.28 “Service” ........................................................................................ 6 Section 2.29 “Severance Benefit” ....................................................................... 6 Section 2.30 “Severance Period” ........................................................................ 6 Section 2.31 “Subsidiary” ................................................................................... 6 Section 2.32 “Successor” .................................................................................... 6 Section 2.33 “Voluntary Resignation” ................................................................ 6 ARTICLE III PARTICIPATION AND ELIGIBILITY FOR BENEFITS ............................. 7 Section 3.01 Participation ................................................................................... 7 Section 3.02 Conditions ...................................................................................... 7 

 

TABLE OF CONTENTS (continued) Page   ii   ARTICLE IV DETERMINATION OF SEVERANCE BENEFITS ...................................... 9 Section 4.01 Amount of Severance Benefits Upon Involuntary Termination and Good Reason Resignation .................................. 9 Section 4.02 Voluntary Resignation; Termination for Death or Permanent Disability .................................................................... 10 Section 4.03 Termination for Cause ................................................................. 10 Section 4.04 Reduction of Severance Benefits ................................................. 11 Section 4.05 Clawback Rights .......................................................................... 11 ARTICLE V METHOD, DURATION AND LIMITATION OF SEVERANCE BENEFIT PAYMENTS................................................................................. 12 Section 5.01 Method of Payment ...................................................................... 12 Section 5.02 Other Arrangements ..................................................................... 12 Section 5.03 Code Section 409A ...................................................................... 13 Section 5.04 Termination of Eligibility for Benefits ........................................ 13 Section 5.05 Limitation on Benefits ................................................................. 14 ARTICLE VI CONFIDENTIALITY AND COVENANTS NOT TO COMPETE AND NOT TO SOLICIT ............................................................................... 15 Section 6.01 Confidential Information ............................................................. 15 Section 6.02 Noncompetition............................................................................ 15 Section 6.03 Nonsolicitation ............................................................................. 16 Section 6.04 Nondisparagement ....................................................................... 16 Section 6.05 Reasonableness ............................................................................ 16 Section 6.06 Equitable Relief ........................................................................... 16 Section 6.07 Survival of Provisions .................................................................. 17 Section 6.08 Required Disclosures ................................................................... 17 ARTICLE VII THE PLAN ADMINISTRATOR .................................................................. 18 Section 7.01 Authority and Duties .................................................................... 18 Section 7.02 Compensation of the Plan Administrator ..................................... 18 Section 7.03 Records, Reporting and Disclosure.............................................. 18 ARTICLE VIII AMENDMENT, TERMINATION AND DURATION ................................ 19 Section 8.01 Amendment, Suspension and Termination .................................. 19 Section 8.02 Duration ....................................................................................... 19 ARTICLE IX DUTIES OF THE COMPANY AND THE COMMITTEE .......................... 20 Section 9.01 Records ........................................................................................ 20 Section 9.02 Payment........................................................................................ 20 Section 9.03 Discretion ..................................................................................... 20 ARTICLE X CLAIMS PROCEDURES ............................................................................. 21 

 

TABLE OF CONTENTS (continued) Page   iii   Section 10.01 Claim ............................................................................................ 21 Section 10.02 Initial Claim ................................................................................. 21 Section 10.03 Appeals of Denied Administrative Claims .................................. 21 Section 10.04 Limitations Period ........................................................................ 22 Section 10.05 Appointment of the Named Appeals Fiduciary ........................... 23 Section 10.06 Arbitration; Expenses................................................................... 23 ARTICLE XI MISCELLANEOUS ...................................................................................... 24 Section 11.01 Nonalienation of Benefits ............................................................ 24 Section 11.02 Notices ......................................................................................... 24 Section 11.03 Successors .................................................................................... 24 Section 11.04 Other Payments ............................................................................ 24 Section 11.05 No Mitigation ............................................................................... 24 Section 11.06 No Contract of Employment ........................................................ 24 Section 11.07 Severability of Provisions ............................................................ 24 Section 11.08 Heirs, Assigns, and Personal Representatives ............................. 25 Section 11.09 Headings and Captions ................................................................ 25 Section 11.10 Gender and Number ..................................................................... 25 Section 11.11 Unfunded Plan ............................................................................. 25 Section 11.12 Payments to Incompetent Persons ............................................... 25 Section 11.13 Lost Payees .................................................................................. 25 Section 11.14 ERISA Matters ............................................................................. 25 Section 11.15 Controlling Law ........................................................................... 25 Schedule A SEVERANCE PERIOD............................................................................... A-1 

 

  1   ARTICLE I  BACKGROUND, PURPOSE AND TERM OF PLAN Section 1.01 Purpose of the Plan.  The purpose of the Plan is to provide Eligible Employees with certain compensation and benefits as set forth in the Plan in the event an Eligible Employee’s employment with the Company or a Subsidiary is terminated due to a Change in Control Termination.  The Plan is not intended to be an “employee pension benefit plan” or “pension plan” within the meaning of Section 3(2) of ERISA.  Rather, this Plan is intended to be a “welfare benefit plan” within the meaning of Section 3(1) of ERISA and to meet the descriptive requirements of a plan constituting a “severance pay plan” within the meaning of regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations, section 2510.3-2(b).  Accordingly, no employee shall have a vested right to benefits paid by the Plan.  Section 1.02 Term of the Plan.  The Plan shall generally be effective as of the Effective Date.  The Plan is intended to supersede, and not to duplicate, the provisions of the athenahealth, Inc. Severance Plan for U.S. Officers and Executives (“Executive Severance Plan”) in any case in which an Eligible Employee would otherwise be entitled to severance or related benefits under both this Plan and the Executive Severance Plan arising out of the Eligible Employee’s Change in Control Termination.  Moreover, this Plan is intended to supersede any portion of any other plan, program, arrangement or agreement that provides an Eligible Employee with severance or related benefits in the case of the Eligible Employee’s Change in Control Termination.  The Plan shall continue until terminated pursuant to Article VIII of the Plan. Section 1.03 Adoption of the Plan.  The Plan was adopted by the Board of Directors of athenahealth, Inc. on October 23, 2017. 

 

  2   ARTICLE II  DEFINITIONS Section 2.01 “Annual Bonus” shall mean 100% of Participant’s target annual bonus. Section 2.02 “Base Salary” shall mean the annual base salary in effect as of a Participant’s Separation from Service Date (disregarding any reduction in Base Salary that is the basis for a Good Reason Resignation). Section 2.03 “Board” shall mean the Board of Directors of the Company, or any Successor thereto, or a committee thereof specifically designated for purposes of making determinations hereunder. Section 2.04 “Cause” shall mean (i) the Participant’s repeated failure to comply with the lawful directives of the Company or any supervisory personnel of the Company with authority to direct the Participant or other continued failure by the Participant to substantially perform his or her employment duties; (ii) any criminal act or act of dishonesty, fraud or willful misconduct by the Participant that has or is likely to have a material adverse effect on the property, operations, business or reputation of the Company, or any Subsidiary or affiliate of the Company; (iii) the material breach by the Participant of any legal duty the Participant owes to, or the terms of any covenant or other agreement that the Participant has with, the Company, or any Subsidiary or affiliate of the Company (including, without limitation, any confidentiality, noncompetition, nonsolicitation, or nondisparagement  agreement included in the Participant’s employment agreement or in the Plan); or (iv) the revocation, suspension, or other loss by the Participant of any license, registration, certification or other authorization required by law, contract, or policy of the Company or any Subsidiary or affiliate of the Company for the Participant to perform the material duties and responsibilities of the Participant’s job; or (v) acts by the Participant of willful malfeasance or gross negligence in a matter of material importance to the Company or any of its Subsidiaries or affiliates; in each case, with respect to (i) through (v), as determined in good faith by the Plan Administrator (or its designee), in its sole discretion. Section 2.05 “Change in Control” shall mean any of the following events: (a) any “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act), excluding for this purpose, (i) the Company or any Subsidiary (wherever incorporated) of the Company or (ii) any employee benefit plan of the Company or any such Subsidiary (or any person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan that acquires beneficial ownership of voting securities of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly of securities of the Company representing more than 30 percent of the combined voting power of the Company’s then-outstanding securities; provided, however, that no Change in Control will be deemed to have occurred as a result of a change in ownership percentage resulting solely from an acquisition of securities by the Company; (b) persons who, as of the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason (including, without limitation, as a result of a tender 

 

  3   offer, proxy contest, merger or similar transaction) to constitute at least a majority thereof, provided that any person becoming a Director of the Company subsequent to the Effective Date shall be considered an Incumbent Director if such person’s election or nomination for election was approved by a vote of at least 50 percent of the Incumbent Directors, but, provided further, that any such person whose initial assumption of office is in connection with an actual or threatened proxy contest relating to the election of members of the Board or other actual or threatened solicitation of proxies or consents by or on behalf of a “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act) other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened contest or solicitation, shall not be considered an Incumbent Director; (c) consummation of a reorganization, merger or consolidation or sale or other disposition of at least 80 percent of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of outstanding voting securities of the Company immediately prior to such Business Combination beneficially own directly or indirectly more than 50 percent of the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the company resulting from such Business Combination including, without limitation, a company which, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more Subsidiaries (wherever incorporated) of the Company in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the outstanding voting securities of the Company; or (d) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. Section 2.06 “Change in Control Termination” shall mean a Participant’s Involuntary Termination or Good Reason Resignation that occurs during the period beginning 3 months prior to the date of a Change in Control (provided that the Involuntary Termination or Good Reason Resignation is at the request of a third party who has taken steps calculated to effect a Change in Control or otherwise arose in connection with a Change in Control) and ending 12 months after the date of such Change in Control. Section 2.07 “COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and the regulations promulgated thereunder. Section 2.08 “Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. Section 2.09 “Committee” shall mean the Compensation Committee of the Board or such other committee appointed by the Board to assist the Company in making determinations required under the Plan in accordance with its terms.  The Committee may delegate its authority under the Plan to an individual or another committee. Section 2.10 “Company” shall mean athenahealth, Inc.  Unless it is otherwise clear from the context, “Company” shall generally include participating Subsidiaries. 

 

  4   Section 2.11 “Effective Date” shall mean October 23, 2017. Section 2.12 “Eligible Employee” shall mean an Employee employed in the United States who is (as of the Change in Control) a Vice President, a Senior Vice President, an Executive Vice President, a President, the Chief Financial Officer, or the Chief Executive Officer, and who is not covered under any other severance plan or program sponsored by the Company or a Subsidiary (other than the Executive Severance Plan).  If there is any question as to whether an Employee is deemed to be an Eligible Employee for purposes of the Plan, the Plan Administrator shall make the determination. Section 2.13 “Employee” shall mean an individual employed by the Company or a Subsidiary as a common law employee on the United States payroll of the Company or a Subsidiary, and shall not include any person working for the Company or any Subsidiary through a temporary service or on a leased basis or who is hired by the Company or any Subsidiary as an independent contractor or consultant, or otherwise as a person who is not an employee for purposes of withholding United States federal income or employment taxes, as evidenced by payroll records or a written agreement with the individual, regardless of any contrary governmental or judicial determination or holding relating to such status or tax withholding. Section 2.14 “Employer” shall mean the Company or any Subsidiary with respect to which this Plan has been adopted. Section 2.15 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder. Section 2.16 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder. Section 2.17 “Executive Severance Plan” shall mean the athenahealth, Inc. Severance Plan for U.S. Officers and Executives, which plan is superseded by this Plan in the event of any Participant’s Change in Control Termination. Section 2.18 “Good Reason Resignation” shall mean the occurrence, without the Participant’s consent, of any of the following events: (a) a material reduction in the Participant’s rate of annual base salary, unless there is an across-the-board reduction applicable to similarly- situated executives, as determined by the Plan Administrator in its sole discretion, (b) an action by the Company resulting in a material diminution in the Participant’s duties or responsibilities as an executive of the Company, (c) a change in the geographic location of the Participant’s principal place of employment to a location more than 50 miles beyond the primary place where the Participant performs services, or (d) a material breach by the Company of any applicable written employment agreement with the Participant; provided, however, that the occurrence of any of the circumstances described in this sentence may only constitute Good Reason if (i) the Participant provides notice to the Company specifying in reasonable detail the events or conditions that give Good Reason and the Participant provides such notice within 30 days after such events or conditions arise, (ii) the Company fails to cure such events or conditions within 30 days of receipt of such written notice, and (iii) the Participant terminates employment within 30 days following the end of the cure period.   

 

  5   Section 2.19 “Involuntary Termination” shall mean the date that a Participant separates from service with the Company and its Subsidiaries within the meaning of Code Section 409A and shall not include a separation from service for Cause, Permanent Disability or death, as provided under and subject to the conditions of Article III. Section 2.20 “Key Employee” shall mean an Eligible Employee who, at any time during the 12-month period ending on the identification date, is a “specified employee” under Code Section 409A, as determined by the Committee or its delegate.  The determination of Key Employees, including the number and identities of persons considered specified employees and the identification dates, shall be made by the Committee or its delegate in accordance with the provisions of Code Section 409A and the regulations promulgated thereunder. Section 2.21 “Participant” shall mean any Eligible Employee who meets the requirements of Article III and thereby becomes eligible for Severance Benefits. Section 2.22 “Permanent Disability” shall  mean a condition entitling a Participant to long-term disability benefits under the Company’s long-term disability plan, or, if the Company has no long-term disability plan, shall mean a Participant’s inability to perform, with or without reasonable accommodation, his or her duties under his or her employment agreement due to a mental or physical condition that can be expected to result in death or that can be expected to last (or has already lasted) for a continuous period of 90 days or more, or for an aggregate of 180 days in any 365-consecutive-day period, as determined by the Plan Administrator in its good- faith discretion. Section 2.23 “Plan” means the athenahealth, Inc. Change in Control Severance Plan for Certain U.S. Officers and Executives as set forth herein, and as the same may from time to time be amended. Section 2.24 “Plan Administrator” shall mean the individual(s) appointed by the Committee to administer the terms of the Plan as set forth herein, and if no individual is appointed by the Committee to serve as the Plan Administrator for the Plan, the Plan Administrator shall be the Committee (or the equivalent); provided, however, that the Committee shall be the Plan Administrator with respect to any Eligible Employee who is an executive officer or who otherwise falls within the Committee’s purview.  Notwithstanding the preceding sentence, in the event the Plan Administrator is entitled to Severance Benefits under the Plan, the Committee or its delegate shall act as the Plan Administrator for purposes of administering the terms of the Plan with respect to the Plan Administrator.  The Plan Administrator may delegate all or any portion of its authority under the Plan to any other person(s). Section 2.25 “Postponement Period” shall mean, for a Key Employee, the period of six (6) months after the Key Employee’s Separation from Service Date (or such other period as may be required by Code Section 409A) during which deferred compensation may not be paid to the Key Employee under Code Section 409A. Section 2.26 “Release” shall mean the Separation of Employment Agreement and General Release, as provided by the Company, or such other agreement between the Company 

 

  6   and Participant under which the Participant releases potential claims against the Company in exchange for Severance Benefits. Section 2.27 “Separation from Service Date” shall mean the date on which the active employment of a Participant by the Company or a Subsidiary is severed by reason of an Involuntary Termination or a Good Reason Resignation within the meaning of Code Section 409A and the regulations promulgated thereunder. Section 2.28 “Service” shall mean the total number of years and completed months that a Participant was an Employee of the Company.  Service with any predecessor employer or with a Subsidiary prior to the Subsidiary’s becoming part of the Company shall be recognized only to the extent specified in the merger or acquisition documentation relating to the Subsidiary.  Periods of authorized leave of absence, such as military leave, will be included in Service only to the extent required by applicable law.  Any period of employment with the Company, a Subsidiary, or a predecessor employer for which an Eligible Employee previously received severance benefits shall be excluded from Service. Section 2.29 “Severance Benefit” shall mean the benefits set forth on Schedule A and other benefits that a Participant is eligible to receive pursuant to Article IV of the Plan. Section 2.30 “Severance Period” shall mean the period during which a Participant is entitled to receive Severance Benefits under this Plan, as set forth in Schedule A. Section 2.31 “Subsidiary” shall mean (i) a subsidiary company (wherever incorporated), (ii) any separately organized business unit, whether or not incorporated, of the Company, (iii) any employer that is required to be aggregated with the Company pursuant to Code Section 414 and regulations promulgated thereunder, and (iv) any service recipient or employer that is within a controlled group of corporations as defined in Code Section 1563(a)(1), (2) and (3) where the phrase “at least 50%” is substituted in each place that “at least 80%” appears and any service recipient or employer within trades or businesses under common control as defined in Code Section 414(c) and Treasury Regulations Section 1.414(c)-2 where the phrase “at least 50%” is substituted in each place that “at least 80%” appears; provided, however, that when the relevant determination is to be based upon legitimate business criteria (as described in Treasury Regulations Section 1.409A-1(b)(5)(iii)(E) and 1.409A-1(h)(3)), the phrase that “at least 20%” shall be substituted in each place “at least 80%” appears as described above with respect to both a controlled group of corporations and trades or businesses under common control. Section 2.32 “Successor” shall mean any other corporation or unincorporated entity or group of corporations or unincorporated entities which acquires ownership, directly or indirectly, through merger, consolidation, purchase or otherwise, of all or substantially all of the assets of the Company. Section 2.33 “Voluntary Resignation” shall mean any retirement or termination of employment that is not initiated by the Company or any Subsidiary other than a Good Reason Resignation. 

 

  7   ARTICLE III  PARTICIPATION AND ELIGIBILITY FOR BENEFITS Section 3.01 Participation.  Each Eligible Employee in the Plan who incurs a Change in Control Termination and who satisfies all of the conditions of Section 3.02 shall be eligible to receive the Severance Benefits described in the Plan.  An Eligible Employee shall not be eligible to receive any other severance benefits from the Company or a Subsidiary on account of a Change in Control Termination, unless otherwise provided in the Plan. Section 3.02 Conditions. (a) Eligibility for any Severance Benefits is expressly conditioned on the occurrence of the following within 60 days following a Participant’s Separation from Service Date:  (i) execution by the Participant of a Release in the form provided by the Company, and the expiration, without revocation by the Participant, of any revocation period provided in such Release; (ii) compliance by the Participant with all the terms and conditions of such Release; (iii) the Participant’s written representation regarding and agreement to the confidentiality, non- competition, nonsolicitation, and nondisparagement provisions in Article VI during and after the Participant’s employment with the Company; and (iv) to the extent permitted in Section 4.04 of the Plan, execution of a written agreement that authorizes the deduction of amounts owed to the Company prior to the payment of any Severance Benefit (or in accordance with any other schedule as the Committee may, in its sole discretion, determine to be appropriate).  If the Committee determines, in its sole discretion, that the Participant has not fully complied with any of the terms of the agreement and/or Release, the Committee may deny Severance Benefits not yet in pay status or discontinue the payment of the Participant’s Severance Benefits and may require the Participant, by providing written notice of such repayment obligation to the Participant, to repay any portion of the Severance Benefits already received under the Plan.  If the Committee notifies a Participant that repayment of all or any portion of the Severance Benefits received under the Plan is required, such amounts shall be repaid within 30 calendar days after the date the written notice is sent.  Any remedy under this Section 3.02(a) shall be in addition to, and not in place of, any other remedy, including injunctive relief, that the Company may have. (b) An Eligible Employee will not be eligible to receive Severance Benefits under any of the following circumstances:   (i) The Eligible Employee’s Voluntary Resignation;   (ii) The Eligible Employee resigns employment (other than a Good Reason Resignation) before the job-end date specified by the Employer or while the Employer still desires the Eligible Employee’s services;   (iii) The Eligible Employee’s employment is terminated for Cause;   (iv) The Eligible Employee voluntarily retires (other than a Good Reason Resignation);   

 

  8   (v) The Eligible Employee’s employment is terminated due to the Eligible Employee’s death or Permanent Disability;   (vi) The Eligible Employee does not return to work within six (6) months of the onset of an approved leave of absence, other than a personal, educational or military leave and/or as otherwise required by applicable statute; (vii) The Eligible Employee does not return to work within three (3) months of the onset of a personal or educational leave of absence;   (viii) The Eligible Employee does not satisfy the conditions for Severance Benefits in Section 3.02(a); (ix) The Eligible Employee continues in employment with the Company or a Subsidiary for more than 90 days following the occurrence of an event or events that would permit a Good Reason Resignation; or   (x) The Eligible Employee’s employment with the Employer terminates as a result of a Change in Control and the Eligible Employee accepts employment, or has the opportunity to continue employment, with a Successor (other than under terms and conditions which would permit a Good Reason Resignation).  The payment of Severance Benefits in the circumstances described in this subsection (x) would result in a windfall to the Eligible Employee, which is not the intention of the Plan. (c) Notwithstanding any other provision of the Plan, the Plan Administrator has the sole discretion to determine an Eligible Employee’s eligibility to receive Severance Benefits.   (d) An Eligible Employee returning from approved military leave during the period beginning 60 days before a Change in Control and ending two years after a Change in Control will be eligible for Severance Benefits if (i) he or she is eligible for reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act; (ii) his or her premilitary-leave job is eliminated; and (iii) the Employer’s circumstances are changed so as to make reemployment in another position impossible or unreasonable, or reemployment would create an undue hardship for the Employer.  If the Eligible Employee returning from military leave qualifies for Severance Benefits, his or her Severance Benefits will be calculated as if he or she had remained continuously employed from the date he or she began his or her military leave.  The Eligible Employee must also satisfy any other relevant conditions for payment set forth in this Article III, including execution of a Release. 

 

  9   ARTICLE IV  DETERMINATION OF SEVERANCE BENEFITS Section 4.01 Amount of Severance Benefits Upon Involuntary Termination and Good Reason Resignation. The Severance Benefits to be provided to an Eligible Employee who incurs a Change in Control Termination and is determined to be eligible for Severance Benefits as set forth in Schedule A to the Plan include the following: (a) Base Salary and Annual Bonus.  Base Salary and Annual Bonus shall be provided for the Severance Period applicable to the Participant as set forth Schedule A to the Plan and shall be paid in accordance with Section 5.01 of the Plan.   (b) Medical and Dental Benefits.  The Participant shall be eligible to continue the medical and dental coverage in effect on the date of his or her termination and, where applicable shall be able to continue medical and dental coverage for his or her spouse/domestic partner and dependents, as such coverage may be changed from time to time for Employees of the Company generally.  For the duration of the Severance Period (the “Coverage Period”), the premium for such coverage shall be the amount charged to Employees generally for similar coverage, except that the amounts will be made on an after-tax basis and the difference between the Employee rate and the full COBRA rate shall be imputed as income to the Participant (“COBRA Subsidy”).  Thereafter, the full COBRA rates shall apply.  Such contributions shall be made within the period that other employees are required to pay for coverage, except that the Participant shall be permitted to pay premiums on a monthly basis, if desired.  The Participant’s failure to pay the applicable contributions by the due date (plus any grace period) shall result in the cessation of the applicable medical and dental coverage in accordance with generally applicable COBRA provisions.  In the event that the Severance Period exceeds 18 months, the Participant will receive a cash lump-sum payment from the Company equal to the projected value of the COBRA Subsidy for the medical and dental benefit coverage for the period between the end of the Coverage Period and the remainder of the Severance Period.  Such payment shall be made within 60 days following the end of the Coverage Period.  Notwithstanding any other provision of this Plan to the contrary, in the event that the Participant becomes eligible for medical or dental benefits through another employer during the Severance Period, the Participant shall cease receiving the COBRA Subsidy, but shall be eligible to continue to receive COBRA coverage at full COBRA rates for the remainder of the applicable COBRA period.  Within 30 days of the Participant becoming eligible for other medical or dental benefits, the Participant shall provide the Company written notice of such other medical and dental benefits.  The COBRA continuation coverage period under section 4980B of the Code shall run concurrently with the Severance Period, and all generally applicable COBRA provisions shall apply.   (c) Stock Options.  All stock options held by the Participant as of his or her Separation from Service Date which are not already vested and exercisable as of such date shall become vested and exercisable on the Separation from Service Date.  All outstanding stock options held by Participant that are vested and exercisable as of the Separation from Service Date and all stock options held by the Participant that become vested and exercisable under the preceding sentence shall be exercisable for the greater of (i) the period set forth in the Participant’s option agreement covering such options, or (ii) twelve (12) months from the 

 

  10   Separation from Service Date.  In no event, however, shall an option be exercisable beyond its original expiration date.  This Plan hereby supersedes the vesting provisions applicable to any stock options held by the Participant for any Sale Event in the award agreements applicable to the option under the athenahealth, Inc. 2007 Stock and Incentive Plan (“Equity Plan”) such that vesting and exercisability under the terms of this Plan shall apply to such options and in no event will any Participant in this Plan vest in such options upon a Sale Event as defined in the Equity Plan.   (d) Restricted Stock and Performance Stock Units.  All unvested restricted stock, restricted stock units, and performance stock held by the Participant as of his or her Separation from Service Date which are subject solely to time-vesting requirements shall accelerate and become immediately vested as of the Separation from Service Date.  All unvested restricted stock and performance stock units held by the Participant as of his or her Separation from Service Date which are subject in whole or part to performance-based vesting provisions shall accelerate and become vested if as though the target requirements have been or will be attained, or would have been attained during the Severance Period in the ordinary course but for the Change in Control and the Participant’s Change in Control Termination.  This Plan hereby supersedes the vesting provisions applicable to any restricted stock and performance stock units held by the Participant for any Sale Event in the award agreements applicable to the restricted stock and performance stock units under the athenahealth, Inc. 2007 Stock and Incentive Plan (“Equity Plan”) such that vesting and exercisability under the terms of this Plan shall apply to such restricted stock and performance stock units and in no event will any Participant in this Plan vest in such options upon a Sale Event as defined in the Equity Plan.   (e) Outplacement Services.  The Company shall pay the cost of outplacement services up to $10,000 for the Participant at the outplacement agency that the Company regularly uses for such purpose or, provided the Plan Administrator provides prior approval, at an outpatient agency selected by the Participant; provided, however, that the period of outplacement shall not exceed three (3) months after the Participant’s Separation from Service Date or, if earlier, the date of the Participant’s death. Section 4.02 Voluntary Resignation; Termination for Death or Permanent Disability.  If an Eligible Employee’s employment terminates on account of the Eligible Employee’s (i) Voluntary Resignation, (ii) death, or (iii) Permanent Disability, then the Eligible Employee shall not be entitled to receive Severance Benefits under this Plan and shall be entitled only to those benefits (if any) as may be available under the Company’s then-existing benefit plans and policies at the time of such termination. Section 4.03 Termination for Cause.  If any Eligible Employee’s employment terminates on account of termination by the Company for Cause, the Eligible Employee shall not be entitled to receive Severance Benefits under this Plan and shall be entitled only to those benefits that are required to be provided to the Eligible Employee by applicable law.  Notwithstanding any other provision of the Plan to the contrary, if the Committee or the Plan Administrator determines that an Eligible Employee has engaged in conduct that constitutes Cause at any time prior to the Eligible Employee’s Separation from Service Date, any Severance Benefit payable to the Eligible Employee under Section 4.01 of the Plan shall immediately cease, and the Eligible Employee shall be required to return any Severance Benefits paid to the Eligible 

 

  11   Employee prior to such determination.  The Company may withhold paying Severance Benefits under the Plan pending resolution of an inquiry that could lead to a finding resulting in Cause.    Section 4.04 Reduction of Severance Benefits.  With respect to amounts paid under the Plan that are not subject to Code Section 409A and the regulations promulgated thereunder, the Plan Administrator reserves the right to make reductions in accordance with applicable law for any monies owed to the Company by an Eligible Employee or the value of Company property that the Eligible Employee has retained in his or her possession.  With respect to amounts paid under the Plan that are subject to Code Section 409A and the regulations promulgated thereunder, the Plan Administrator reserves the right to make reductions in accordance with applicable law for any monies owed to the Company by the Eligible Employee or the value of the Company property that the Eligible Employee has retained in his or her possession; provided, however, that such reductions cannot exceed $5,000 in the aggregate in any Company fiscal year. Section 4.05 Clawback Rights. (a) If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any Participant who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 shall forfeit any remaining Severance Benefit and shall reimburse the Company for the amount of any Severance Benefit received by such individual under the Plan during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission, as the case may be, of the financial document embodying such financial reporting requirement.  (b) To the extent required by Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and/or the rules and regulations of any securities exchange or inter-dealer quotation service on which the Company Stock is listed or quoted, or if so required pursuant to a written policy adopted by the Company, Severance Benefits shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements in accordance with such act, rules and regulations, and policy. (c) Notwithstanding anything to the contrary, the Plan Administrator may cause Severance Benefits to be forfeited if the Participant has engaged in or engages in activity that is in conflict with or adverse to the interests of the Company while Employed by, or providing services to, the Company or any Subsidiary, including fraud or conduct contributing to any financial restatements or irregularities.  (d) In addition to the requirements set forth in this Section, all Severance Benefits under the Plan shall be subject to any other applicable clawback or recoupment policies and any other policies implemented by the Company, the Board or a committee of the Board, as in effect from time to time.  

 

  12   ARTICLE V  METHOD, DURATION AND LIMITATION OF SEVERANCE BENEFIT PAYMENTS Section 5.01 Method of Payment.  Subject to Section 5.03, the cash Severance Benefits to which a Participant is entitled, as determined pursuant to Section 4.01, shall be paid in equal pro rata installments in accordance with the Company’s normal payroll practices over the Severance Period beginning within 60 days following the Participant’s Separation from Service Date (the “Payment Date”), subject to the fulfillment of all conditions for payment set forth in Section 3.02 and subject to the expiration, without the Participant having revoked the Release, of any revocation period specified in the Release, and provided that the COBRA coverage under Section 4.01(b) shall be provided or paid in accordance with the provisions of that Section.  Any Severance Benefits that have accrued but have not been paid on the Payment Date shall be paid in a single lump-sum payment on the Payment Date or, if the Payment Date has already occurred, such amount shall be paid on the next regularly-scheduled installment payment.  In no event will interest be credited on the unpaid balance for which a Participant may become eligible.  Payment shall be made by mailing to the last address provided by the Participant to the Company or by such other reasonable method as determined by the Plan Administrator.  All payments of Severance Benefits are subject to applicable federal, state and local taxes and withholdings.  In the event of a Participant’s death prior to the completion of all payments to which the Participant is entitled, the remaining payments shall be paid to the Participant’s estate in a single lump-sum payment within 60 days following the date of the Participant’s death. Section 5.02 Other Arrangements.  The Severance Benefits under this Plan are not additive or cumulative to severance or termination benefits that a Participant might also be entitled to receive under the terms of a written employment agreement, a severance agreement or any other arrangement with the Employer, including, without limitation, the Executive Severance Plan.  As a condition of participating in the Plan, each Eligible Employee must expressly agree that this Plan supersedes all prior plans or agreements and sets forth the entire Severance Benefit the Eligible Employee is entitled to while an Eligible Employee in the Plan for a termination that is covered by this Plan.  The provisions of this Plan may provide for payments to the Eligible Employee under certain compensation or bonus plans under circumstances where such plans would not provide for payment thereof.  It is the specific intention of the Company that the provisions of this Plan shall supersede any provisions to the contrary in such plans, to the extent permitted by applicable law, and such plans shall be deemed to be have been amended to correspond with this Plan without further action by the Company or the Board. All Severance Benefit payments to be made hereunder shall be reduced by such amounts as may be required under all applicable federal, state, local or other laws or regulations to be withheld or paid over with respect to such payment.  In addition, all payments made pursuant to this Plan are not intended to be in addition to pay in lieu of notice under the Worker Adjustment and Retraining Notification Act, Labor Code Sections 1400 et seq., or any other applicable federal, state or local law or regulation.  Should benefits under any such law or regulation become payable, payment under this Plan will be reduced accordingly, or, alternatively, payments previously made under this Plan will be treated as having been paid to satisfy such other benefit obligations (other than state unemployment compensation if eligible; benefits under this Plan are intended to supplement any benefits available under a state unemployment compensation program).  For the sake of 

 

  13   clarity, a notice period provided to Participants during which they remain on the Company’s payroll (i.e., the time between the notification date and the termination date) is not considered pay in lieu of notice for purposes of determining benefits under the Plan.  No Participant shall be entitled to duplicate benefits pursuant to this Plan and any other plan. Section 5.03 Code Section 409A.   (a) Notwithstanding any provision of the Plan to the contrary, if required by Code Section 409A and if a Participant is a Key Employee, no Benefits shall be paid to the Participant during the Postponement Period.  If a Participant is a Key Employee and payment of Benefits is required to be delayed for the Postponement Period under Code Section 409A, the accumulated amounts withheld on account of Code Section 409A shall be paid in a lump-sum payment within 30 days after the end of the Postponement Period.  If the Participant dies during the Postponement Period prior to the payment of Benefits, the amounts withheld on account of Code Section 409A shall be paid to the Participant’s estate within 60 days after the Participant’s death. (b) This Plan is intended to meet the requirements of the “short-term deferral” exception, the “separation pay” exception and other exceptions under Code Section 409A and the regulations promulgated thereunder. Notwithstanding anything in this Plan to the contrary, if required by Code Section 409A, payments may only be made under this Plan upon an event and in a manner permitted by Code Section 409A, to the extent applicable.  For purposes of Code Section 409A, each individual payment that constitutes part of the Severance Benefits shall be treated as a separate payment from any other such payment.  All reimbursements and in-kind benefits provided under the Plan shall be made or provided in accordance with the requirements of Code Section 409A including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the period specified in the Plan, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement, or in-kind benefits, is not subject to liquidation or exchange for another benefit. Section 5.04 Termination of Eligibility for Benefits.   (a) All Eligible Employees shall cease to be eligible to participate in the Plan, and all Severance Benefit payments payable to a Participant shall cease, upon the occurrence of the earlier of: (i) The date the Eligible Employee is rehired by the Employer or continues employment with a Successor as described in Section 3.02(b)(x) (other than under terms and conditions which would permit a Good Reason Resignation); (ii) Subject to Article VIII, termination or modification of the Plan; or (iii) Completion of payment of the Severance Benefits to the Participant. 

 

  14   (b) Notwithstanding any other provision of the Plan to the contrary, the Company shall have the right to cease all Severance Benefit payments (except as otherwise required by law) and to recover payments previously made to the Participant should the Participant at any time breach the Participant’s undertakings under the terms of the Plan, the employment agreement, the Release and the confidentiality, non-competition, non-solicitation and non-disparagement representations and covenants, as set forth in Article VI, that the Participant executed to obtain the Severance Benefits under the Plan. Section 5.05 Limitation on Benefits.   (a) Anything in this Plan to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company or its Subsidiaries to or for the benefit of a Participant (whether paid or provided pursuant to the terms of this Plan or otherwise) (a “Payment”) would be nondeductible by the Company for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of the benefits provided to the Participant pursuant to the rights granted under this Plan (such benefits are hereinafter referred to as “Plan Payments”) shall be reduced to the Reduced Amount.  The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Plan Payments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code.  For purposes of this Section 5.05, present value shall be determined in accordance with Section 280G(d)(4) of the Code. (b) All determinations required to be made under this Section 5.05 shall be made by an independent public accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations to both the Company and the Participant within 15 business days of the Separation from Service Date or such earlier time as is requested by the Company.  Any such determination by the Accounting Firm shall be binding upon the Company and the Participant.  Within 5 business days of the determination by the Accounting Firm as to the Reduced Amount, the Company shall provide to the Participant such Severance Benefits as are then due to the Participant in accordance with the rights afforded under this Plan.  If Plan Payments are to be reduced, the Participant shall determine which Plan Payments shall be reduced to comply with this Section 5.05. (c) Notwithstanding the foregoing or any other provision of this Plan to the contrary, the limitation set forth in this Section 5.05 shall not apply in the event that the Accounting Firm determines that the benefits to the Participant under the Plan on an after-tax basis (i.e., after federal, state and local income and excise taxes) if such limitation is not applied would exceed the after-tax benefits to the Participant if such limitation is applied. 

 

  15   ARTICLE VI  CONFIDENTIALITY AND COVENANTS NOT TO COMPETE AND NOT TO SOLICIT Section 6.01 Confidential Information.  Each Eligible Employee will represent that during his or her employment with the Company he or she has not, and will agree that he or she shall not, directly or indirectly, use, make available, sell, disclose or otherwise communicate to any person, other than in the course of the Eligible Employee’s assigned duties and for the benefit of the Company, either during the period of the Eligible Employee’s employment or at any time thereafter, any “Confidential Information.”  “Confidential Information” means all non- public, confidential, or proprietary information of Company that is disclosed by Company or its officers, directors, employees, agents, subcontractors, attorneys, accountants, auditors, consultants, or other representatives to the Eligible Employee or the Eligible Employee’s representatives that (a) the Eligible Employee knows is confidential to the Company or (b) is of such a nature that someone familiar with Company’s line of business would reasonably understand is confidential to it. Without limitation, Confidential Information includes commercially valuable, proprietary, and confidential business information with respect to Company’s business, finances, employees, clients, client’s patients, products, services, software, or network, including, without limitation, oral information and tangible and intangible property that may contain or relate to source code and object code, data and data structures, hardware and software designs and specifications, web site designs and applications, network topology, functionality specifications, security measures, trade secrets, know-how, business plans, financial plans, capital structure, employee information, and client information.  Confidential Information also includes any information received by the Company from a third party with the understanding that the Company would keep the information confidential.  The foregoing shall not apply to information that (i) was known to the public prior to its disclosure to the Eligible Employee; (ii) becomes known to the public subsequent to disclosure to the Eligible Employee through no wrongful act of the Eligible Employee or any representative of the Eligible Employee; or (iii) the Eligible Employee is required to disclose by applicable law, regulation or legal process (provided that the Eligible Employee provides the Company with prior notice of the contemplated disclosure and reasonably cooperates with the Company at its expense in seeking a protective order or other appropriate protection of such information).  Notwithstanding clauses (i) and (ii) of the preceding sentence, the Eligible Employee’s obligation to maintain such disclosed information in confidence shall not terminate where only portions of the information are in the public domain.  Section 6.02 Noncompetition.  Each Eligible Employee acknowledges that he or she performs or has performed services of a unique nature for the Company that are irreplaceable, and that his or her performance of such services for a competing business will result in irreparable harm to the Company.  Accordingly, the Eligible Employee will represent that during the Eligible Employee’s employment with the Company or Subsidiary he or she has not, and for the one (1) year period thereafter, the Eligible Employee will agree that the Eligible Employee will not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation) or render services to any person, firm, corporation or other entity, in whatever form, engaged in any business of the same type as any business in which the Company or any of its Subsidiaries or affiliates is engaged on the date of termination or in which they have proposed, on or prior to 

 

  16   such date, to be engaged in on or after such date and in which the Eligible Employee has been involved to any extent (other than de minimis) at any time during the one (1) year period ending with the date of termination, in any locale of any country in which the Company or any of its Subsidiaries conducts business.  This Section 6.02 shall not prevent the Eligible Employee from owning not more than 1% of the total shares of all classes of stock outstanding of any publicly held entity engaged in such business, nor will it restrict the Eligible Employee from rendering services to charitable organizations, as such term is defined in section 501(c) of the Code. Section 6.03 Nonsolicitation.  The Eligible Employee will represent that during his or her employment with the Company or a Subsidiary he or she has not, and will agree that for the one (1) year period thereafter, he or she will not, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, hire any employee of the Company or any Subsidiary or knowingly solicit, aid or induce (i) any employee of the Company or any Subsidiary, as defined by the Company, to leave such employment in order to accept employment with or render services to or with any other person, firm, corporation or other entity unaffiliated with the Company or knowingly take any action to materially assist or aid any other person, firm, corporation or other entity in identifying or hiring any such employee, or (ii) any customer of the Company or any Subsidiary to purchase goods or services then sold by the Company or any Subsidiary from another person, firm, corporation or other entity or assist or aid any other person or entity in identifying or soliciting any such customer. Section 6.04 Nondisparagement.  The Eligible Employee will represent that during his or her employment with the Company or a Subsidiary he or she has not, and will agree that at all times thereafter he or she will not make any statements that disparage the Company or a Subsidiary, or its respective affiliates, employees, officers, directors, products or services.  Notwithstanding the foregoing, statements made in the course of sworn testimony in administrative, judicial or arbitral proceedings (including, without limitation, depositions in connection with such proceedings) shall not be subject to this Section 6.04. Section 6.05 Reasonableness.  In the event the provisions required by this Article VI shall ever be deemed to exceed the time, scope or geographic limitations permitted by applicable laws, then such provisions shall be reformed to the maximum time, scope or geographic limitations, as the case may be, permitted by applicable laws. Section 6.06 Equitable Relief. (a) By participating in the Plan, each Eligible Employee acknowledges that the restrictions contained in this Article VI are reasonable and necessary to protect the legitimate interests of the Company, and its Subsidiaries and affiliates, that the Company would not have established this Plan in the absence of such restrictions, and that any violation of any provision of the agreement required by this Article VI will result in irreparable injury to the Company.  By agreeing to participate in the Plan, the Eligible Employee represents that his or her experience and capabilities are such that the restrictions contained in this Article VI will not prevent the Eligible Employee from obtaining employment or otherwise earning a living at the same general level of economic benefit as is currently the case.  The Eligible Employee further represents and acknowledges that (i) he or she has been advised by the Company to consult his or her own legal 

 

  17   counsel in respect of this Plan, and (ii) he or she has had a full opportunity, prior to agreeing to participate in this Plan, to review thoroughly this Plan with his or her counsel. (b) The Eligible Employee agrees that the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, as well as an equitable accounting of all earnings, profits and other benefits arising from any violation of the agreement required by this Article VI, which rights shall be cumulative and in addition to any other rights or remedies to which the Company may be entitled.  In the event that any of the provisions of the agreement required by this Article VI should ever be adjudicated to exceed the time, geographic, service, or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, service, or other limitations permitted by applicable law. (c) The Eligible Employee shall irrevocably and unconditionally (i) agrees that any suit, action or other legal proceeding arising out of the agreement required by this Article VI, including, without limitation, any action commenced by the Company for preliminary and permanent injunctive relief or other equitable relief, may be brought in the United States District Court for the District of Massachusetts, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Massachusetts, (ii) consents to the nonexclusive jurisdiction of any such court in any such suit, action or proceeding, and (iii) waives any objection which the Eligible Employee may have to the laying of venue of any such suit, action or proceeding in any such court.  The Eligible Employee shall also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers in a manner permitted by the notice provisions of Section 11.02. Section 6.07 Survival of Provisions.  The obligations contained in this Article VI shall survive the termination of an Eligible Employee’s employment with the Company or a Subsidiary and shall be fully enforceable thereafter. Section 6.08 Required Disclosures.  Nothing in this Plan restricts or prohibits Eligible Employees from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or filing a claim or assisting with an investigation directly with a self- regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission, Congress, and any agency Inspector General, or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation.  Eligible Employees do not need the prior authorization of the Company to engage in conduct protected by this  Section 6.08, and Eligible Employees do not need to notify the Company that they have engaged in such conduct.  Further, this Plan provides notice to Eligible Employees that federal law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to an individual who discloses a trade secret to his or her attorney, a court, or a government official in certain, confidential circumstances that are set forth at 18 U.S.C. § 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law. 

 

  18   ARTICLE VII  THE PLAN ADMINISTRATOR Section 7.01 Authority and Duties.  It shall be the duty of the Plan Administrator, on the basis of information supplied to it by the Company and the Committee, to properly administer the Plan.  The Plan Administrator shall have the full power, authority and discretion to construe, interpret and administer the Plan; to make factual determinations, to correct deficiencies therein; and to supply omissions.  All decisions, actions and interpretations of the Plan Administrator shall be final, binding and conclusive upon the parties, subject only to determinations by the Named Appeals Fiduciary (as defined in Section 10.05) with respect to denied claims for Severance Benefits.  The Plan Administrator may adopt such rules and regulations and may make such decisions as it deems necessary or desirable for the proper administration of the Plan. Section 7.02 Compensation of the Plan Administrator.  The Plan Administrator shall receive no compensation for services as such.  However, all reasonable expenses of the Plan Administrator shall be paid or reimbursed by the Company upon proper documentation.  The Plan Administrator shall be indemnified by the Company against personal liability for actions taken in good faith in the discharge of the Plan Administrator’s duties. Section 7.03 Records, Reporting and Disclosure.  The Plan Administrator shall keep a copy of all records relating to the payment of Severance Benefits to Participants and former Participants and all other records necessary for the proper operation of the Plan.  All Plan records shall be made available to the Committee, the Company and each Participant for examination during business hours except that a Participant shall examine only such records as pertain exclusively to the examining Participant and to the Plan.  The Plan Administrator shall prepare and shall file as required by law or regulation all reports, forms, documents and other items required by ERISA, the Code, and every other relevant statute, each as amended, and all regulations thereunder (except that the Company, as payor of the Severance Benefits, shall prepare and distribute to the proper recipients all forms relating to withholding of income or wage taxes, Social Security taxes, and other amounts that may be similarly reportable). 

 

  19   ARTICLE VIII  AMENDMENT, TERMINATION AND DURATION Section 8.01 Amendment, Suspension and Termination.  Except as otherwise provided in this Section 8.01, the Board or its delegate shall have the right, at any time and from time to time, to amend, suspend or terminate the Plan in whole or in part, for any reason or without reason, and without either the consent of or the prior notification to any Participant, by a formal written action.  No such amendment shall give the Company the right to recover any amount paid to a Participant prior to the date of such amendment or to cause the cessation of Severance Benefits already approved for a Participant who has executed and not timely revoked a Release as required under Section 3.02.  Any amendment or termination of the Plan must comply with all applicable legal requirements including, without limitation, compliance with Code Section 409A and the regulations and rulings promulgated thereunder; securities, tax, or other laws; and rules, regulations or regulatory interpretation thereof applicable to the Plan.  Notwithstanding the foregoing, this Plan may not be terminated, suspended or amended in any material respect during the period beginning 90 days prior to a Change in Control and ending two years after a Change in Control. Section 8.02 Duration.  Unless terminated sooner by the Board or its delegate, the Plan shall continue in full force and effect until termination of the Plan pursuant to Section 8.01; provided, however, that after the termination of the Plan, if any Participant terminated employment on account of an Involuntary Termination prior to the termination of the Plan and is still receiving Severance Benefits under the Plan, the Plan shall remain in effect until all of the obligations of the Company are satisfied with respect to such Participant. 

 

  20   ARTICLE IX  DUTIES OF THE COMPANY AND THE COMMITTEE Section 9.01 Records.  The Company or a Subsidiary thereof shall supply to the Committee all records and information necessary to the performance of the Committee’s duties. Section 9.02 Payment. Payments of Severance Benefits to Participants shall be made in such amount as determined by the Committee under Article IV, from the Company’s general assets or from a supplemental unemployment benefits trust, in accordance with the terms of the Plan, as directed by the Committee. Section 9.03 Discretion.  Any decisions, actions or interpretations to be made under the Plan by the Board, the Committee and the Plan Administrator, acting on behalf of either, shall be made in each of their respective sole discretion, and not in any fiduciary capacity, and need not be uniformly applied to similarly situated individuals and such decisions, actions or interpretations shall be final, binding and conclusive upon all parties.  As a condition of participating in the Plan, the Eligible Employee acknowledges that all decisions and determinations of the Board, the Committee and the Plan Administrator shall be final and binding on the Eligible Employee and his or her beneficiaries and any other person having or claiming an interest under the Plan on his or her behalf. 

 

  21   ARTICLE X  CLAIMS PROCEDURES Section 10.01 Claim.  Each Participant under this Plan may contest only the administration of the Severance Benefits awarded by completing and filing with the Plan Administrator a written request for review in the manner specified by the Plan Administrator.  No appeal is permissible as to an Eligible Employee’s eligibility for or amount of the Severance Benefit, which are decisions made solely within the discretion of the Company and the Committee acting on behalf of the Company.  No person may bring an action for any alleged wrongful denial of Plan benefits in a court of law unless the claims procedures described in this Article X are exhausted and a final determination is made by the Plan Administrator and/or the Named Appeals Fiduciary.  If an Eligible Employee or Participant or other interested person challenges a decision by the Plan Administrator and/or Named Appeals Fiduciary, a review by the court of law will be limited to the facts, evidence and issues presented to the Plan Administrator during the claims procedure set forth in this Article X.  Facts and evidence that become known to the terminated Eligible Employee or Participant or other interested person after having exhausted the claims procedure must be brought to the attention of the Plan Administrator for reconsideration of the claims administrator.  Issues not raised with the Plan Administrator and/or Named Appeals Fiduciary will be deemed waived. Section 10.02 Initial Claim.  Before the date on which payment of a Severance Benefit commences, each such application must be supported by such information as the Plan Administrator deems relevant and appropriate.  In the event that any claim relating to the administration of Severance Benefits is denied in whole or in part, the terminated Participant or his or her beneficiary (“claimant”) whose claim has been so denied shall be notified of such denial in writing by the Plan Administrator within 90 days after the receipt of the claim for benefits.  This period may be extended an additional 90 days if the Plan Administrator determines such extension is necessary and the Plan Administrator provides notice of extension to the claimant prior to the end of the initial 90 day period.  The notice advising of the denial shall (i) specify the reason or reasons for denial, (ii) make specific reference to the Plan provisions on which the determination was based, (iii) describe any additional material or information necessary for the claimant to perfect the claim (explaining why such material or information is needed), and (iv) describe the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.   Section 10.03 Appeals of Denied Administrative Claims.  All appeals shall be made by the following procedure: (a) A claimant whose claim has been denied shall file with the Plan Administrator a notice of appeal of the denial.  Such notice shall be filed within sixty (60) calendar days after notification by the Plan Administrator of the denial of a claim, shall be made in writing, and shall set forth all of the facts upon which the appeal is based.  Appeals not timely filed shall be barred. 

 

  22   (b) The Named Appeals Fiduciary shall consider the merits of the claimant’s written presentations, the merits of any facts or evidence in support of the denial of benefits, and such other facts and circumstances as the Named Appeals Fiduciary shall deem relevant. (c) The Named Appeals Fiduciary shall render a determination upon the appealed claim which determination shall be accompanied by a written statement as to the reasons therefor.  The determination shall be made to the claimant within 60 days after the claimant’s request for review, unless the Named Appeals Fiduciary determines that special circumstances require an extension of time for processing the claim.  In such case, the Named Appeals Fiduciary shall notify the claimant of the need for an extension of time to render its decision prior to the end of the initial 60 day period, and the Named Appeals Fiduciary shall have an additional 60 day period to make its determination.  The determination so rendered shall be binding upon all parties.  If the determination is adverse to the claimant, the notice shall (i) provide the reason or reasons for denial, (ii) make specific reference to the Plan provisions on which the determination was based, (iii) include a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits, and (iv) state that the claimant has the right to bring an action under Section 502(a) of ERISA. Section 10.04 Limitations Period.  A claim or action (i) to recover benefits allegedly due under the Plan or by reason of any law; (ii) to enforce rights under the Plan; (iii) to clarify rights to future benefits under the Plan; or (iv) that relates to the Plan and seeks a remedy, ruling or judgment of any kind against the Plan or a Plan fiduciary or party in interest (collectively, a “Judicial Claim”) may not be commenced in any court or forum until after the terminated employee has exhausted the Plan’s claims and appeals procedures (an “Administrative Claim”).  A terminated employee must raise all arguments and produce all evidence the terminated employee believes supports the claim or action in the Administrative Claim and shall be deemed to have waived every argument and the right to produce any evidence not submitted to the Plan Administrator as part of the Administrative Claim.  Any Judicial Claim must be commenced in the appropriate court or forum no later than 12 months from the earliest of (1) the date the first benefit payment was made or allegedly due; (2) the date the Plan Administrator or its delegate first denied the terminated employee’s request; or (3) the first date the terminated employee knew or should have known the principal facts on which such claim or action is based; provided, however, that, if the terminated employee commences an Administrative Claim before the expiration of such 12-month period, the period for commencing a Judicial Claim shall expire on the later of the end of the 12-month period and the date that is 3 months after the final denial of the terminated employee’s Administrative Claim, such that the terminated employee has exhausted the Plan’s claims and appeals procedures.  Any claim or action that is commenced, filed or raised, whether a Judicial Claim or an Administrative Claim, after expiration of such 12- month limitations period (or, if applicable, expiration of the 3-month limitations period following exhaustion of the Plan’s claims and appeals procedures) shall be time-barred.  Filing or commencing a Judicial Claim before the terminated employee exhausts the Administrative Claim requirements shall not toll the 12-month limitations period (or, if applicable, the t3-month limitations period). 

 

  23   Section 10.05 Appointment of the Named Appeals Fiduciary.  The Named Appeals Fiduciary shall be the person or persons named as such by the Board or Committee, or, if no such person or persons are named, then the person or persons named by the Plan Administrator as the Named Appeals Fiduciary.  Named Appeals Fiduciaries may at any time be removed by the Board or Committee, and any Named Appeals Fiduciary named by the Plan Administrator may be removed by the Plan Administrator.  All such removals may be with or without cause and shall be effective on the date stated in the notice of removal.  The Named Appeals Fiduciary shall be a “Named Fiduciary” within the meaning of ERISA, and, unless appointed to other fiduciary responsibilities, shall have no authority, responsibility, or liability with respect to any matter other than the proper discharge of the functions of the Named Appeals Fiduciary as set forth herein. Section 10.06 Arbitration; Expenses.  In the event of any dispute under the provisions of this Plan, other than a dispute in which the primary relief sought is an equitable remedy such as an injunction, the parties shall have the dispute, controversy or claim settled by arbitration in Massachusetts (or such other location as may be mutually agreed upon by the Employer and the Participant) in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association, before a panel of three arbitrators, two of whom shall be selected by the Company and the Participant, respectively, and the third of whom shall be selected by the other two arbitrators.  Any award entered by the arbitrators shall be final, binding and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction.  This arbitration provision shall be specifically enforceable.  The arbitrators shall have no authority to modify any provision of this Plan or to award a remedy for a dispute involving this Plan other than a benefit specifically provided under or by virtue of the Plan.  Each party will pay the fees for his, her or its own attorneys, subject to any remedies to which the party may later be entitled under applicable law.  However, in all cases where required by law, the Company will pay the arbitrator's and arbitration fees.  If under applicable law the Company is not required to pay all of the arbitrator's and/or arbitration fees, such fee(s) will be apportioned between the parties by the arbitrator in accordance with said applicable law, and any disputes in that regard will be resolved by the arbitrator. 

 

  24   ARTICLE XI  MISCELLANEOUS Section 11.01 Nonalienation of Benefits.  None of the payments, benefits or rights of any Participant shall be subject to any claim of any creditor of any Participant, and, in particular, to the fullest extent permitted by law, all such payments, benefits and rights shall be free from attachment, garnishment (if permitted under applicable law), trustee’s process, or any other legal or equitable process available to any creditor of such Participant.  No Participant shall have the right to alienate, anticipate, commute, plead, encumber or assign any of the benefits or payments that he or she may expect to receive, contingently or otherwise, under this Plan, except for the designation of a beneficiary as set forth in Section 5.01. Section 11.02 Notices.  All notices and other communications required hereunder shall be in writing and shall be delivered personally or mailed by registered or certified mail, return receipt requested, or by overnight express courier service.  In the case of a Participant, mailed notices shall be addressed to him or her at the home address which he or she most recently communicated to the Company in writing.  In the case of the Company, mailed notices shall be addressed to the Plan Administrator. Section 11.03 Successors.  Any Successor shall assume the obligations under this Plan and expressly agree to perform the obligations under this Plan. Section 11.04 Other Payments.  Except as otherwise provided in this Plan, no Participant shall be entitled to any cash payments or other severance benefits under any of the Company’s then-current severance pay policies for a termination that is covered by this Plan for the Participant, including, without limitation, the Executive Severance Plan. Section 11.05 No Mitigation.  Except as otherwise provided in Section 4.01(b) and Section 4.04, Participants shall not be required to mitigate the amount of any Severance Benefit provided for in this Plan by seeking other employment or otherwise, nor shall the amount of any Severance Benefit provided for herein be reduced by any compensation earned by other employment or otherwise, except if a  Participant is reemployed by Company, in which case Severance Benefits shall cease. Section 11.06 No Contract of Employment.  Neither the establishment of the Plan, nor any modification thereof, nor the creation of any fund, trust or account, nor the payment of any benefits shall be construed as giving any Eligible Employee or any person whomsoever the right to be retained in the service of the Company, and all Eligible Employees shall remain subject to discharge to the same extent as if the Plan had never been adopted. Section 11.07 Severability of Provisions.  If any provision of this Plan shall be held invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been included. 

 

  25   Section 11.08 Heirs, Assigns, and Personal Representatives.  This Plan shall be binding upon the heirs, executors, administrators, successors and assigns of the parties, including each Participant, present and future. Section 11.09 Headings and Captions.  The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be employed in the construction of the Plan. Section 11.10 Gender and Number.  Where the context admits, words in any gender shall include any other gender, and, except where otherwise clearly indicated by context, the singular shall include the plural, and vice versa. Section 11.11 Unfunded Plan.  The Plan shall not be funded.  No Participant shall have any right to, or interest in, any assets of the Company that may be applied by the Company to the payment of Severance Benefits. Section 11.12 Payments to Incompetent Persons.  Any benefit payable to or for the benefit of a minor, incompetent person or other person incapable of receipting therefor shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Company, the Committee and all other parties with respect thereto. Section 11.13 Lost Payees.  A benefit shall be deemed forfeited if the Committee is unable to locate a Participant to whom a Severance Benefit is due.  Such Severance Benefit shall be reinstated if application is made by the Participant for the forfeited Severance Benefit while this Plan is in operation. Section 11.14 ERISA Matters.  The Plan is an “employee benefit plan” as defined by ERISA which constitutes an unfunded plan maintained primarily to provide deferred compensation for a select group of management or highly compensated employees and, therefore, is exempt from many ERISA requirements.   Section 11.15 Controlling Law.  This Plan shall be construed and enforced according to the laws of Massachusetts to the extent not superseded by Federal law. 

 

  A-1   Schedule A SEVERANCE PERIOD  Title (as of the Change in Control Date) (Current Annual Base Salary + Annual Bonus Target) x Rate Below Benefits Continuation Chief Executive Officer 2x (24 months) 18 months Presidents, Executive Vice Presidents, and Senior Vice Presidents 1x (12 months) 12 months Vice Presidents .75x (9 months) 9 months  Each Eligible Employee so designated by Title on this Schedule A who has a Change in Control Termination and satisfies the requirements of Section 3.02 of the Plan shall receive the Severance Benefits set forth on this Schedule A, in Article IV and in the Plan generally.

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