Document:

avino_ex414.htm

EXHIBIT 4.14
  
  
  
 AVINO SILVER & GOLD MINES LTD.
  
 RESTRICTED SHARE UNIT PLAN
  
 April, 2018
  
 (Approved by the Board of Directors on April 19, 2018.)
 (Approved by the Shareholders on May 24, 2018.)
  
  	 
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 TABLE OF CONTENTS
  
  	 ARTICLE 1 PURPOSE
	  
	 3
	
					  

	 1.1
	 PURPOSE
	  
	 3
	
					  

	 ARTICLE 2 DEFINITIONS
		 3
	
					  

	 2.1
	 DEFINITIONS 
	  
	 3
	
	 2.2
	 INTERPRETATIONS 
	  
	 6
	
					  

	 ARTICLE 3 ADMINISTRATION
	  
	 7
	
					  

	 3.1
	 COMMITTEE 
	  
	 7
	
	 3.2
	 DELEGATION OF ADMINISTRATION
	  
	 7
	
	 3.3
	 LIMITATION OF LIABILITY
	  
	 7
	
	 3.4
	 FEES 
	  
	 7
	
					  

	 ARTICLE 4 RSU SHARES SUBJECT TO THE PLAN
	  
	 7
	
					  

	 ARTICLE 5 GRANTS
	  
	 8
	
					  

	 5.1
	 MAXIMUM NUMBER OF COMMON SHARES AND LIMITATIONS 
	  
	 8
	
	 5.2
	 TERMS OF GRANTS 
	  
	 8
	
	 5.3
	 BLACKOUT PERIODS 
	  
	 9
	
					  

	 ARTICLE 6 TERMS AND CONDITIONS OF RESTRICTED SHARE UNITS
	  
	 9
	
					  

	 6.1
	 RSU GRANT AGREEMENT 
	  
	 9
	
	 6.2
	 NUMBER OF RSUS AND ENTITLEMENT TO COMMON SHARES OR PAYMENT OF CASH 
	  
	 9
	
	 6.3
	 PERFORMANCE CRITERIA 
	  
	 9
	
	 6.4
	 VESTING AND SETTLEMENT OF RSUS
	  
	 9
	
	 6.5
	 RIGHTS IN THE EVENT OF DEATH, RETIREMENT OR TERMINATION OF EMPLOYMENT OR SERVICE. 
	  
	 10
	
	 6.6
	 AUTOMATIC TERMINATION OF RSUS
	  
	 11
	
	 6.7
	 RIGHTS IN THE EVENT OF A CHANGE IN CONTROL
	  
	 11
	
	 6.8
	 NON-TRANSFERABILITY 
	  
	 12
	
	 6.9
	 RSUS NOT COMMON SHARES 
	  
	 12
	
	 6.10 
	 RSU SHARES FULLY PAID
	  
	 12
	
					  

	 ARTICLE 7 EFFECTS OF ALTERATION OF SHARE CAPITAL
	  
	 12
	
					  

	 7.1
	 ADJUSTMENTS
	  
	 12
	
	 7.2
	 NO FRACTIONAL RSUS 
	  
	 12
	
					  

	 ARTICLE 8 AMENDMENT AND TERMINATION 
	  
	 13
	
					  

	 8.1 
	 GENERALLY 
	  
	 13
	
	 8.2 
	 AMENDMENTS WITHOUT SHAREHOLDER APPROVAL 
	  
	 14
	
	 8.3 
	 AMENDMENTS REQUIRING SHAREHOLDER APPROVAL 
	  
	 14
	
					  

	 ARTICLE 9 CERTAIN SECURITIES LAW MATTERS
	  
	 14
	
					  

	 9.1 
	 RESTRICTIVE LEGEND 
	  
	 14
	
	 9.2 
	 ADDITIONAL DISCLOSURE AND NOTICES TO SECURITIES REGULATORY AUTHORITIES AND EXCHANGES
	  
	 15
	
					  

	 ARTICLE 10 MISCELLANEOUS PROVISIONS
	  
	 15
	
					  

	 10.1
	 NO RIGHT TO CONTINUED EMPLOYMENT OR SERVICE 
	  
	 15
	
	 10.2
	 INCOME TAX WITHHOLDING COMPLIANCE 
	  
	 15
	
	 10.3
	 GOVERNING LAW 
	  
	 15
	
	 10.4
	 NON-EXCLUSIVITY 
	  
	 15
	
					  

	 ARTICLE 11 EFFECTIVE DATE AND TERM OF THE PLAN
	  
	 16
	

  
  	 
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 ARTICLE 1
 PURPOSE
  
  	1.1	Purpose

  
 The purpose of the Plan is to assist the Corporation and its Related Entities in attracting and retaining individuals with experience and exceptional skill, to allow selected executives, key employees, consultants and directors of the Corporation or a Related Entity to participate in the long term success of the Corporation or the Related Entity and to promote a greater alignment of interests between the participants designated under this Plan and the shareholders of the Corporation.
  
 ARTICLE 2
 DEFINITIONS
  
  	2.1	Definitions

  
 For purposes of the Plan, the terms contained in this Article 2 shall have the following meanings.
  
  	  
	(a)	“Administrator” means the person or persons appointed from time to time by the Corporation to administer this Plan.
	  
	  
	  

	  
	(b)	“Board” means the board of directors of the Corporation, as constituted from time to time.
	  
	  
	  

	  
	(c)	“business day” means a day, other than Saturday, Sunday or a day on which the principal commercial banking institutions in Vancouver, British Columbia are, or the Exchange is, closed.
	  
	  
	  

	  
	(d)	“Change in Control” means:

  
  	  
	  
	(i)	an acquisition of securities of the Corporation (including securities convertible into Common Shares and/or other securities of the Corporation (“Convertible Securities”)) as a result of which a person or group other than one or more present control persons (as defined in the Securities Act (British Columbia) in respect of the Corporation (an “Acquiror”) owns beneficially Common Shares or other securities of the Corporation and/or Convertible Securities such that, assuming the conversion of Convertible Securities owned beneficially by the Acquiror but not by any other holder of Convertible Securities, the Acquiror would own beneficially (A) not less than 20% of the Common Shares or (B) shares which would entitle the holders thereof to cast not less than 20% of the votes attaching to all shares in the capital of the Corporation which may be cast to elect directors of the Corporation;
	  
	  
	  
	  

	  
	  
	(ii)	an amalgamation, merger or other business combination of the Corporation with or into any one or more other corporations, other than: (A) an amalgamation, merger or other business combination of the Corporation with or into a Related Entity; or (B) an amalgamation, merger or other business combination of the Corporation unanimously recommended by the Board provided that the former holders of Common Shares receive, in the aggregate and in their capacities as such, shares of the amalgamated, merged or resulting entity having attached thereto not less than 20% of the votes attached to all shares of such amalgamated, merged or resulting entity;

  
  	 
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	(iii)	the election at a meeting of the Corporation’s shareholders of that number of persons which would represent a majority of the Board as Directors, who are not included in the slate for election as Directors proposed to the Corporation’s shareholders by management of the Corporation or a transaction or series of transactions as a result of which a majority of the Directors are removed from office at any annual or special meeting of shareholders, or a majority of the Directors resign from office over a period of 60 days or less, and the vacancies created thereby are filled by nominees proposed by any person other than Directors or management of the Corporation in place immediately prior to the removal or resignation of the Directors;
	  
	  
	  
	  

	  
	  
	(iv)	the completion of any transaction or the first of a series of transactions which would have the same or similar effect as any transaction or series of transactions referred to in subsections (i), (ii) or (iii) referred to above; or
	  
	  
	  
	  

	  
	  
	(v)	a determination by the Board that there has been a change, whether by way of a change in the holding of the Common Shares, in the ownership of the Corporation’s assets or by any other means, as a result of which any person or group of persons acting jointly or in concert is in a position to exercise effective control of the Corporation.

  
  	  
	(e)	“CIC Share” means the following with respect to each Covered RSU:

  
  	  
	  
	(i)	the sum of: (A) the number of Consideration Shares (as defined below), rounded to the nearest whole number, that is equal to the product of (x) one Common Share multiplied by (y) the number of Consideration Shares (as defined below) received by the shareholders of the Corporation in respect of one Common Share, if, in connection with the transaction constituting the Change in Control, the shareholders of the Corporation exchange their Common Shares for, or otherwise convert their Common Shares into, shares of equity securities of the acquiror (or its direct or indirect parent) (such shares of equity securities, the “Consideration Shares”); and (B) the amount, if any, that is equal to the product of (x) one Common Share multiplied by (y) any cash or other property, the fair market value of which shall be determined by the Board (as constituted immediately prior to the effective date of such Change in Control), received by the shareholders of the Corporation in respect of one Common Share, in connection with such transaction; and
	  
	  
	  
	  

	  
	  
	(ii)	in the case of all other transactions constituting the Change in Control, one Common Share, as adjusted pursuant to Article 7 hereof in connection with such transaction, if applicable; and, in each case, as further adjusted pursuant to Article 7, if applicable, in respect of covered events occurring after such Change in Control.

  
  	  
	(f)	“Committee” means the Compensation Committee of the Board or such other committee of the Board comprised of members of the Board as the Board shall from time to time appoint to administer the Plan.
	  
	  
	  

	  
	(g)	“Common Shares” means the common shares in the capital of the Corporation, or in the event of an adjustment contemplated by Article 7 hereof, such other shares or securities to which the Participant may be entitled under the Grant.
	  
	  
	  

	  
	(h)	“Consultant” means a consultant as such term is defined in National Instrument 45- 106 Prospectus and Registration Exemptions, Division 4.
	  
	  
	  

	  
	(i)	“Corporation” means Avino Silver & Gold Mines Ltd. and includes any successor corporation thereof.
	  
	  
	  

	  
	(j)	“Covered RSU” means, with respect to each Grant that is outstanding on the effective date of a Change in Control, the number of RSUs that would have been issued to a Participant on the applicable Release Date and settled in the form of RSU Shares (or cash equivalent, as applicable) had (A) the Participant continued in the employment or service of the Corporation until such Release Date and (B) subject to the sole discretion of the Board, all Performance Criteria, if any, applicable to such Grant (determined without regard to the occurrence of the Change in Control) been met during the applicable Performance Period, if any.
	  
	  
	  

	  
	(k)	“Designated Person” means a Director, Officer, Employee, or Consultant who is designated by the Committee as being eligible for participation in the Plan.
	  
	  
	  

	  
	(l)	“Director” means a non-executive director of the Corporation or a director of a Related Entity.
	  
	  
	  

	  
	(m)	“Effective Date” means, unless otherwise determined by the Board when confirming a Grant, the date determined by the Committee, in accordance with Article 5 hereof, as being the date on which such Grant shall take effect, provided that the Effective Date shall not be a date prior to the date on which the Board confirms the Grant and, unless otherwise determined, the Effective Date will be the date on which the Board confirms the Grant.

  
  	 
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	(n)	“Employee” means an individual (other than a Director or Officer) who:

  
  	  
	  
	(i)	works for the Corporation or a Related Entity on a continuing and regular basis for a minimum amount of time per week providing services specified by the Corporation or the Related Entity and is subject to the control and direction of the Corporation or the Related Entity regarding both the method of performing or executing the services and the result to be effected,
	  
	  
	  
	  

	  
	  
	(ii)	works full-time for the Corporation or a Related Entity providing services normally provided by an employee and who is subject to the same control and direction by the Corporation or the Related Entity over the details and method of work as an employee of the Corporation or the Related Entity, and for whom income tax deductions are made at source, or
	  
	  
	  
	  

	  
	  
	(iii)	works for the Corporation or a Related Entity on a continuing and regular basis for a minimum amount of time per week providing services normally provided by an employee and who is subject to the same control and direction by the Corporation or the Related Entity over the details and method of work as an employee of the Corporation or the Related Entity, but for whom income tax deductions are not made at source.

  
  	  
	(o)	“Exchange” means the Toronto Stock Exchange, NYSE MKT, or such other stock exchange on which such Common Shares are listed and posted for trading as may be selected for such purpose by the Board.
	  
	  
	  

	  
	(p)	“Grant” means an award of RSUs allocated to a Designated Person in respect of services rendered to the Corporation or Related Entity in the year of such Grant in accordance with Article 5 hereof.
	  
	  
	  

	  
	(q)	“Market Price” as at any date in respect of the Common Shares means the last closing price per Common Share on the TSX on the trading day immediately preceding the day on which the Corporation announces the grant of the RSU.
	  
	  
	  

	  
	(r)	the closing volume-weighted average price of the Common Shares on the Exchange for the five trading days immediately preceding such date, but if such Common Shares did not trade on such trading days, the Market Price shall be average of the bid and ask prices in respect of such Common Shares at the close of trading on such trading day.
	  
	  
	  

	  
	(s)	“Officer” means a chairman or vice-chairman of the Board, chief executive officer, chief operating officer, chief financial officer, president, vice president, secretary, assistant secretary, treasurer, assistant treasurer and a general manager of the Corporation or of a Related Entity and any person routinely performing corresponding functions with respect to the Corporation or a Related Entity.
	  
	  
	  

	  
	(t)	“Participant” means a Designated Person to whom a Grant has been made in accordance with Article 5 hereof.
	  
	  
	  

	  
	(u)	“Performance Criteria” means criteria established by the Committee in respect of each Grant, if any, which, without limitation, may include criteria based on the financial performance of the Corporation and/or any Related Entity thereof.

  
  	 
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	(v)	“Performance Period” means the period established by the Committee in respect of each Grant, if any, which period shall commence and end on the dates designated by the Committee.
	  
	  
	  

	  
	(w)	“Permanent Disability” means a mental or physical disability which has caused the substantial withdrawal of the Participant’s effective services to the Corporation or Related Entity, as the case may be, for six consecutive months or a cumulative period of twelve months over a period of thirty-six consecutive months, or such other permanent disability of a Participant and/or for such other period as determined by the Committee in its sole and absolute discretion.
	  
	  
	  

	  
	(x)	“Plan” means this Restricted Share Unit Plan as the same may be further amended from time to time.
	  
	  
	  

	  
	(y)	“Related Entity” means, with regard to the Corporation, a person that controls or is controlled by the Corporation or that is controlled by the same person that controls the Corporation.
	  
	  
	  

	  
	(z)	“Release Date” means in respect of each Grant, unless otherwise determined by the Committee, the tenth business day following the occurrence of the event giving rise to the issuance of the RSU Shares in accordance with the provisions of the Plan, or pursuant to the vesting provisions or Performance Period of the RSUs.
	  
	  
	  

	  
	(aa)	“Retirement” means withdrawal from the Participant’s occupation or office with the Corporation or a Related Entity with no intention to return to the workforce, provided that Retirement prior to the age of 60 shall be subject to the Board’s review and discretion.
	  
	  
	  

	  
	(cc)	“RSU” means a restricted share unit allocated to a Designated Person in accordance with Article 5 hereof which shall, upon issuance in accordance with and subject to the provisions of the Plan, entitle the holder thereof to receive one RSU Share.
	  
	  
	  

	  
	(dd)	“RSU Grant Agreement” means each agreement with a Participant containing the terms and conditions of each Grant, such agreement to be in form and substance similar to the form of Restricted Share Unit Grant Agreement contained in Schedule A hereof.
	  
	  
	  

	  
	(ee)	“RSU Shares” means the Common Shares delivered to Participants in accordance with the provisions of the Plan in settlement of RSUs issued under the Plan.
	  
	  
	  

	  
	(ff)	“TSX” means the Toronto Stock Exchange.
	  
	  
	  

	  
	(gg)	“U.S. Securities Act” has the meaning ascribed to it in Section 9.1 herein.

  
  	2.2	Interpretations

  
 Any reference to the outstanding Common Shares at any point in time shall be computed on a non- diluted basis.
  
  	 
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 ARTICLE 3
 ADMINISTRATION
  
  	3.1	Committee

  
 The Plan shall be administered by the Committee under the supervision of the Board.
  
 In addition to the other powers granted to the Committee under the Plan and subject to the terms of the Plan, the Committee shall have full and complete authority to interpret the Plan. The Committee may from time to time prescribe such rules and regulations and make all determinations necessary or desirable for the administration of the Plan. In particular, the Committee shall select the Designated Persons to whom it recommends Grants shall be made and shall determine the amounts and terms of the Grants (including the related Performance Criteria, if any, and the formula, if any, to be used to determine the number of RSUs to be issued based on the level of achievement of such Performance Criteria), and the extent to which the Performance Criteria to be achieved during the Performance Period, if any, has been achieved. Any such interpretation, rule, determination or other act of the Committee and/or the Administrator shall be conclusively binding upon all persons, including the Participants and their legal representatives and beneficiaries.
  
  	3.2	Delegation of Administration

  
 The Committee may, subject to the terms of the Plan, delegate to third parties, including the Administrator if one is appointed, the whole or any part of the administration of the Plan and shall determine the scope of such delegation. Any decision made by the Committee or the Administrator in carrying out its responsibilities with respect to the administration of the Plan shall be final and binding on the Participants.
  
  	3.3	Limitation of Liability

  
 No member of the Committee or the Board shall be liable for any action or determination made in good faith pursuant to the Plan. To the full extent permitted by law, the Corporation shall indemnify and save harmless each person made, or threatened to be made, a party to any action or proceeding by reason of the fact that such person is or was a member of the Committee or is or was a member of the Board and, as such, is or was required or entitled to take action pursuant to the terms of the Plan.
  
  	 3.4
	 Fees

  
 Except as Participants may otherwise be advised by prior written notice of at least 30 days, all costs of the Plan, including any administration fees, shall be paid by the Corporation; provided, however, the Corporation’s responsibility for administration fees does not include tax consequences to the Participant of his/her receipt of RSUs or RSU Shares, which shall be the exclusive responsibility of the Participant.
  
 ARTICLE 4
 RSU SHARES SUBJECT TO THE PLAN
  
 The Corporation shall not be required to issue and/or cause to be delivered Common Shares or issue and/or cause to be delivered certificates evidencing Common Shares to be delivered pursuant to the Plan unless and until such issuance and delivery is in compliance with all applicable laws, regulations, rules, orders of governmental or regulatory authorities and the requirements of the Exchange. The Corporation shall not in any event be obligated to take any action to comply with any such laws, regulations, rules, orders or requirements. Subject to the foregoing, the Board may authorize from time to time the issuance by the Corporation of Common Shares from treasury.
  
  	 
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 ARTICLE 5
 GRANTS
  
  	5.1	Maximum Number of Common Shares and Limitations

  
 The maximum number of RSU Shares issuable under the Plan shall not, together with all other security-based compensation arrangements of the Corporation, exceed 10% of the issued and outstanding Common Shares as at the date of such Grant on a non-diluted basis.
  
 Notwithstanding anything else contained herein, the number of Common Shares of the Corporation which are (i) issuable at any time, and (ii) issued within any one year period, to all insiders (as such term is defined in the TSX’s Company Manual) of the Corporation pursuant to the terms of the Plan and under any other security-based compensation arrangement, shall not exceed 10% of the Corporation’s total issued and outstanding Common Shares on a non-diluted basis.
  
  	5.2	Terms of Grants

  
 Subject to the provisions of the Plan, the Committee shall, in its sole discretion and from time to time, determine the Designated Persons to whom it recommends that Grants be made based on their current and potential contribution to the success of the Corporation. At such time, the Committee shall also:
  
  	  
	(a)	determine, in connection with each Grant, the Effective Date thereof and the number of RSUs to be allocated, subject to blackout periods pursuant to Section 5.3 herein.
	  
	  
	  

	  
	(b)	determine, in connection with each Grant, the vesting dates and the Performance Period, if any, applicable thereto;
	  
	  
	  

	  
	(c)	determine, in connection with each Grant, the Performance Criteria, if any, to be achieved during the Performance Period in order for RSU Shares to be issued to the Participant; and
	  
	  
	  

	  
	(d)	determine the other terms and conditions (which need not be identical and which, without limitation, may include conditions on the allocation, issuance and/or settlement of RSUs, and non-competition provisions) of all RSUs covered by any Grant.

  
 Notwithstanding any provisions of this Section 5.2, any Grant and any determination made by the Committee in connection with any such Grant as provided shall be subject to confirmation by the Board, and both the Corporation and the Participant are responsible for ensuring and confirming that the Participant is a bona fide Designated Person.
  
  	 
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  	5.3	Blackout Periods

  
 The Corporation may from time to time self-impose trading blackouts during which some or all Directors, Officers, Employees, and Consultants may not trade in the securities of the Corporation. In the event that a trading blackout is imposed by management or the Board, in accordance with any insider trading policy that the Corporation may adopt from time to time, Participants subject to the blackouts are prohibited from buying, selling or otherwise trading in securities of the Corporation until such time as notice is formally given by the Corporation that trading may resume.
  
 If the date of vesting of any Grant, falls within such a blackout period, it shall be automatically extended to the date which is ten business days following the end of such blackout period.
  
 ARTICLE 6
 TERMS AND CONDITIONS OF RESTRICTED SHARE UNITS
  
  	6.1	RSU Grant Agreement

  
 Each Grant shall be evidenced by an RSU Grant Agreement containing the terms and conditions required under the Plan and such other terms and conditions not inconsistent herewith as the Committee may deem appropriate. The Corporation shall deliver a copy of the Plan and the respective RSU Grant Agreement to each Participant who receives any Grant under the Plan before, or as soon as practicable after, the time of such Grant. Certificates need not be issued with respect to RSUs covered by a Grant or RSUs when issued. The Corporation or the Administrator shall maintain records showing the number of RSUs allocated to each Participant under the Plan. The RSU Grant Agreement may deal with some or all of the matters set forth in the remainder of this Article 6.
  
  	6.2	Number of RSUs and Entitlement to Common Shares

  
 Each RSU Grant Agreement shall state the number of RSUs allocated to the Participant and state that each such RSU shall upon vesting, subject to and in accordance with the terms of the Plan, entitle the Participant to receive one RSU Share, subject to the provisions of Section 10.2 with respect to withholding taxes, pension plan contributions, employment insurance premiums or other deductions. 
  
  	6.3	Performance Criteria

  
 Each RSU Grant Agreement shall describe the Performance Criteria, if any, for the Performance Period, if any, established by the Committee that must be achieved for RSU Shares to be issued to the Participant.
  
  	6.4	Vesting and Settlement of RSUs

  
  	  
	(a)	Subject to any employee benefit or other share compensation plan approved by the Board, the Committee shall prescribe the terms and conditions of vesting of each Grant and the vesting period.

  
 Provided that the Participant is continuously employed with, or providing services to, the Corporation from the Effective Date of such Grant to the Release Date, the Participant shall be entitled to receive on the applicable Release Date, in full settlement of the RSUs that have vested, a number of RSU Shares equal to such number of RSUs vested, all in accordance with Section 6.2 herein and subject to the provisions of Section 10.2 with respect to withholding taxes, pension plans contributions, employment insurance premiums or other deductions. A notice shall be given to the Corporation shall be in writing, signed by the Participant and delivered to the head business office of the Corporation, substantially in the form of Schedule B hereto.
  
  	 
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  	6.5	Rights in the Event of Death, Retirement or Termination of Employment or Service

  
 Unless otherwise determined by the Committee:
  
  	  
	 Death

	  
	  
	  

	  
	(a)	Subject to Section 6.5(b), in the event of the death of a Participant while in the employment or service of the Corporation, the deceased Participant’s estate shall receive, with respect to each Grant then outstanding to such Participant for which RSU Shares have not otherwise been issued prior to the date of death, an RSU settlement in the form of RSU Shares on the next Release Date on which all or a portion of the RSU Shares would otherwise be issued, if at all, in accordance with the Plan had the Participant not died and continued in the employment or service of the Corporation or the Related Entity, as applicable, until such Release Date.
	  
	  
	  

	  
	(b)	If Performance Criteria are attached to any deceased Participant’s RSU, in the event of death of a Participant following the end of the Performance Period, if any, but prior to a Release Date, the Committee shall determine in its sole discretion the number of RSU Shares to be delivered to the Participant’s estate with respect to such RSUs.
	  
	  
	  

	  
		Any remaining RSUs for which settlement has not been made as aforesaid, shall be forfeited and shall terminate.
	  
	  
	  

	  
	 Termination Without Cause, Retirement or Permanent Disability

  
  	  
	(c)	In the event of termination without cause, Retirement or Permanent Disability of a Participant, with respect to each Grant then outstanding to such Participant for which RSU Shares have not been issued prior to the date of termination without cause, Retirement or Permanent Disability, the RSU Shares covered by any such Grant shall be issued to the Participant in accordance with and subject to the Plan, on a pro rata basis to reflect the proportion of the Performance Period of the Grant worked by the Participant prior to such termination without just cause, Retirement or Permanent Disability.
	  
	  
	  

	  
		Any remaining RSUs for which settlement has not been made as aforesaid, shall be forfeited and shall terminate.
	  
	  
	  

	  
		For purposes of this provision, the date of termination without cause, Retirement or permanent Disability shall be the last day on which the Participant provides services to the Corporation or Related Entity, as the case may be, at its premises, and not the last day of any notice period or upon which the Corporation or Related Entity pays wages or salaries in lieu of notice of termination, statutory, contractual or otherwise.

  
  	 
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	 Voluntary Resignation or Termination for Cause

	  
	  
	  

	  
	(d)	In the event a Participant’s voluntary resignation (other than due to Retirement) or termination of employment or service for cause and unless otherwise provided in an employment or other service contract between the Participant and the Corporation or a Related Entity, the RSUs covered by each Grant then outstanding to such Participant for which RSU Shares have not been issued prior to such voluntary resignation or termination shall be forfeited and all such Grants shall expire in their entirety. Any such voluntary resignation or termination of employment or service for cause shall not entitle a Participant to any compensation for loss of any benefit under the Plan.
	  
	  
	  

	  
		For the purposes of the foregoing paragraph, the date of voluntary resignation or termination shall be the last day upon which the Participant provides services to the Corporation or Related Entity, as the case may be, at its premises and not the last day of any notice period or upon which the Corporation or Related Entity pays wages or salaries in lieu of notice of termination, statutory, contractual or otherwise.

  
  	6.6	Automatic Termination of RSUs

  
 Subject to Section 6.5, RSUs granted pursuant to the Plan shall terminate automatically on the earlier of:
  
  	  
	(a)	the date on which such RSUs are issued in the form of RSU Shares, in respect of all of the RSUs granted thereunder; and
	  
	  
	  

	  
	(b)	the expiry date of such RSUs as determined by the Committee or by law.

  
  	6.7	Rights in the Event of a Change in Control

  
 Subject to approval by the TSX, if required, in the event of the occurrence of a Change in Control, and unless otherwise determined by the Committee, or otherwise addressed in the Participant’s employment or service contract or share compensation plan approved by the Board (which shall have controlling effect), with respect to each Grant outstanding on the effective date of such Change in Control,
  
  	  
	(a)	Subject to the sole discretion of the Board, all Covered RSUs shall vest as of the effective date of such Change in Control. The Board shall give each Participant as much notice as possible of the acceleration of the vesting of the RSUs under this section, except that not less than 5 business days and not more than 35 days’ notice is required; and
	  
	  
	  

	  
	(b)	each Participant shall, on the Release Date which would have applied had the Change in Control not occurred, be entitled to receive from the Corporation, in full settlement of an RSU covered by such Grant, one of the following, at the sole discretion of the Committee, for each Covered RSU:

  
  	  
	  
	(i)	one CIC Share; or

  
  	 
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	(ii)	the number of Consideration Shares rounded to the nearest whole number, that is equal to the sum of:

  
  	  
	  
	(A)	the number of Consideration Shares received by the shareholders of the Corporation in respect of one Common Share; and
	  
	  
	  
	  

	  
	  
	(B)	the number of Consideration Shares that the Board determines represents the fair market value of any cash or other property received by the shareholders of the Corporation in respect of one Common Share;
	  
	  
	  
	  

	  
	 provided that such Participant is continuously employed by or providing services to the Corporation from the Effective Date of such Grant to the effective date of such Change in Control.

  
  	6.8	Non-Transferability

  
 The rights or interests of a Participant under the Plan shall not be assignable or transferable, otherwise than by will or the laws governing the devolution of property in the event of death and such rights or interests shall not be encumbered.
  
  	6.9	RSUs Not Common Shares

  
 Under no circumstances shall a Grant of an RSU be considered a Common Share, nor shall a Grant of an RSU entitle any Participant to the exercise of voting rights, the receipt of dividends or the exercise of any other rights attaching to ownership of a Common Share, until delivery of an RSU Share in settlement of such RSU in accordance with the terms of the Plan. Notwithstanding the foregoing, the Committee may determine the extent to which a Participant may be entitled to exercise any voting rights, receive dividends or exercise any other rights attaching to ownership of such Common Shares.
  
  	6.10	RSU Shares Fully Paid

  
 RSU Shares, if issued by the Corporation to settle RSUs under the Plan, shall be considered fully paid in consideration of past service that is no less in value than the fair equivalent of the money the Corporation would have received if the RSU Shares had been issued for money.
  
 ARTICLE 7
 EFFECTS OF ALTERATION OF SHARE CAPITAL
  
  	7.1	Adjustments

  
 Subject to approval by the TSX, if required, in the event that:
  
  	  
	(a)	a dividend shall be declared upon the Common Shares payable in Common Shares of the Corporation;

  
  	 
	- 12 -
	 
 
	 

  
  	  
	(b)	the outstanding Common Shares shall be changed into or exchanged for a different number or kind of shares or other securities of the Corporation or of another corporation, whether through an arrangement, plan of arrangement, amalgamation or other similar statutory procedure, or a share recapitalization, subdivision or consolidation;
	  
	  
	  

	  
	(c)	there shall be any change, other than those specified in subparagraphs (a) and (b) of this Section, in the number or kind of outstanding Common Shares or of any shares or other securities into which such Common Shares shall have been changed or for which they shall have been exchanged; or
	  
	  
	  

	  
	(d)	there shall be a distribution of assets or shares to shareholders of the Corporation out of the ordinary course of business,

  
 then, if the Board shall in its sole discretion determine that such change equitably requires an adjustment in the number of RSUs with respect to which Grants may be made pursuant to the Plan but not yet covered by Grants, of the RSUs then covered by Grants, of the RSUs generally available for Grants under the Plan and of the RSUs available for Grants under the Plan in any calendar year, such adjustment shall be made by the Board and shall be effective and binding for all purposes.
  
  	7.2	No Fractional RSUs

  
 No adjustment provided for in this Section shall entitle a Participant to be allocated a fractional RSU, or receive a fractional RSU Share or any payment in lieu thereof, and the total adjustment with respect to each RSU shall be limited accordingly.
  
 ARTICLE 8
 AMENDMENT AND TERMINATION
  
  	8.1	Generally

  
 The Board may from time to time amend, suspend or terminate the Plan in whole or in part. The Committee may from time to time amend the terms of Grants made under the Plan, subject to confirmation by the Board and the obtaining of any required regulatory, shareholder, or other approvals and, if any such amendment will materially adversely affect the rights of a Participant with respect to a Grant, the obtaining of the written consent of such Participant to such amendment. Notwithstanding the foregoing, (i) the obtaining of the written consent of any Participant to an amendment which materially adversely affects the rights of such Participant with respect to a Grant shall not be required if such amendment is required to comply with applicable laws, regulations, rules, orders of governmental or regulatory authorities or the Exchange and (ii) no amendment may be made to Section 6.7 of the Plan or to the defined terms referred to in Section 6.7 on or after the effective date of such Change in Control.
  
  	 
	- 13 -
	 
 
	 

  
  	8.2	Amendments without Shareholder Approval

  
 Without limiting the generality of the foregoing, the Board may make the following amendments to the Plan or awards thereunder, without obtaining shareholder approval:
  
  	  
	(a)	amendments to the terms and conditions of the Plan or awards thereunder necessary to ensure that the Plan or awards thereunder complies with the applicable laws, regulations, rules, orders of governmental or regulatory authorities or the requirements of the Exchange in place from time to time;
	  
	  
	  

	  
	(b)	amendments to the provisions of the Plan or awards thereunder respecting administration of the Plan and eligibility for participation under the Plan;
	  
	  
	  

	  
	(c)	amendments to the provisions of the Plan or awards thereunder respecting the terms and conditions on which Grants may be made pursuant to the Plan, including the provisions relating to the Effective Date, Performance Criteria, vesting and Performance Period;
	  
	  
	  

	  
	(d)	amendments to the Plan or awards that are of a “housekeeping” nature; and
	  
	  
	  

	  
	(e)	and any other amendments, fundamental or otherwise, not requiring shareholder approval under applicable laws or applicable policies of the Exchange.

  
  	8.3	Amendments Requiring Shareholder Approval

  
 Without limiting the generality of the foregoing, the Board may not, without the approval of the Corporation’s shareholders, make the following amendments to the Plan:
  
  	  
	(a)	any extension of the termination or expiry of a Grant benefiting an Insider of the Corporation;
	  
	  
	  

	  
	(b)	any amendment to remove or to increase the Insider participation limits described in Section 5.1;
	  
	  
	  

	  
	(c)	an increase to the maximum number of RSU Shares issuable as a fixed percentage of the Corporation’s outstanding capital represented by the Common Shares; and
	  
	  
	  

	  
	(d)	amendments to an amending provision within the Plan.

  
 ARTICLE 9
 CERTAIN SECURITIES LAW MATTERS
  
  	9.1	Restrictive Legends

  
 If applicable, all certificates or other documents representing securities pursuant to the Plan issued to a “U.S. person” as defined in Rule 902(k) of Regulation S promulgated under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) will bear the applicable restrictive legend referring to the U.S. Securities Act, which will state, without limitation, that such securities have not been registered under the Securities Act and will set forth or refer to the applicable restrictions on transferability and sale thereof.
  
 Certificates representing any securities issued pursuant to the Plan may bear such additional restrictive legends as the Board or Committee may in their sole discretion determine are required to comply with applicable securities laws or stock exchange requirements.
  
  	 
	- 14 -
	 
 
	 

  
  	9.2	Additional Disclosure and Notices to Securities Regulatory Authorities and Exchanges

  
 Subject to Article 4 hereof, the Corporation shall also deliver to each Participant any additional disclosure, as necessary, to comply with the requirements of applicable securities laws. The Corporation shall also give notice, as may be necessary, to all applicable securities regulatory authorities and other regulatory bodies and all applicable stock exchanges and other trading facilities, upon which the Common Shares are listed or traded, of the adoption of the Plan and the issuance of any Grants or the entering into of any agreements respecting same.
  
 ARTICLE 10
 MISCELLANEOUS PROVISIONS
  
  	10.1	No Right to Continued Employment or Service

  
 Participation in the Plan by a Designated Person is voluntary. No Director, Officer, Employee or Consultant shall have any claim or right to receive Grants under the Plan. The Grant and issuance of RSUs under the Plan (i) shall not be construed as giving a Participant any right to continue in the employment or service of the Corporation or a Related Entity or to be re-elected as a Director or to receive any additional Grants, or (ii) affect the right of the Corporation or a Related Entity to terminate the employment or service of any Participant. Unless the Committee determines otherwise, no notice of termination or payment in lieu thereof shall extend the period of employment or service for purposes of the Plan.
  
  	10.2	Income Tax Withholding Compliance

  
 Prior to the delivery of any RSU Shares under this Plan, the Corporation or the Administrator shall have the power and the right to deduct or withhold, or to require a Participant to remit to the Corporation, an amount sufficient to satisfy any federal, provincial, local and foreign taxes, pension plan contributions, employment insurance premiums and any other required deductions (collectively referred to herein as “withholding taxes”) that the Corporation determines is required to be withheld to comply with applicable laws. The Corporation shall make any withholdings or deductions in respect of withholding taxes as required by law or the interpretation or administration thereof. The Corporation or the Administrator shall be entitled to make arrangements to sell a sufficient number of RSU Shares to be issued pursuant to the Plan to fund the payment and remittance of withholding taxes that are required to be deducted or withheld and any associated costs (including brokerage fees). The Corporation or the Administrator shall also have the right to withhold the delivery of any RSUs and RSU Shares to a Participant hereunder unless and until such Participant pays to the Corporation a sum sufficient to indemnify the Corporation for any liability to withhold tax in respect of the amounts included in the income of such Participant as a result of the settlement of RSUs under the Plan, to the extent that such tax is not otherwise being withheld from payments to such Participant by the Corporation or the Administrator. The Participant may also make other arrangements acceptable to the Corporation to fund the required tax remittance.
  
  	10.3	Governing Law

  
 The Plan, the issuance and settlements of RSUs hereunder, and the issue and delivery of Common Shares hereunder upon settlement shall be, as applicable, governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein.
  
  	10.4	Non-Exclusivity

  
 Nothing contained herein shall prevent the Corporation from adopting such other share incentive or compensation arrangements as it shall deem advisable.
  
  	 
	- 15 -
	 
 
	 

  
 ARTICLE 11
 EFFECTIVE DATE AND TERM OF THE PLAN
  
 This Plan shall be effective only upon the approval of the shareholders of the Corporation. Any subsequent amendments to the Plan shall become effective upon their adoption by the Board, subject to the approval of the Corporation’s shareholders, if required. The Plan shall terminate on such date as may be determined by the Board pursuant to Article 8 hereof, and no Grants may become effective under the Plan after the date of termination, but such termination shall not affect any Grants that became effective pursuant to the Plan prior to such termination.
  
  	 
	- 16 -
	 
 
	 

  
 SCHEDULE A
  
 AVINO SILVER & GOLD MINES LTD.
  
 RESTRICTED SHARE UNIT GRANT AGREEMENT
  
 This RESTRICTED SHARE UNIT GRANT AGREEMENT is made as of the day of ____________, 20_____ between AVINO SILVER & GOLD MINES LTD. (the “Corporation”) and the undersigned (the “Participant”), being a director, officer, employee or consultant of the Corporation or a related entity designated pursuant to the terms of the Restricted Share Unit Plan of the Corporation, as may be amended from time to time (the “Plan”).
  
 In consideration of the grant of Restricted Share Units (“RSUs”) made to the Participant pursuant to the Plan (the receipt and sufficiency of which are hereby acknowledged), the Participant hereby agrees and confirms that:
  
  	1.	The Participant has received a copy of the Plan and has read, understands and agrees to be bound by the provisions of the Plan. The Participant acknowledges, among other things, that the Plan contains provisions relating to termination and restricting transfer.
	  
	  

	2.	The Participant accepts and consents to and shall be deemed conclusively to have accepted and consented to, and agreed to be bound by, the provisions and all terms of the Plan and all bona fide actions or decisions made by the Board, the Committee, or any person to whom the Committee may delegate administrative duties and powers in relation to the Plan, which terms and consent shall also apply to and be binding on the legal representatives, beneficiaries and successors of the undersigned.
	  
	  

	3.	On _____________, 20_____, the Participant was granted __________ RSUs to receive one RSU Share of the Corporation for each RSU subject to the provisions of the Plan, which grant is evidenced by this Agreement. The RSUs shall be subject to the following terms:
		[Describe performance or other criteria and (vesting) release dates of the RSU Shares.]
	  
	  

	4.	This Agreement shall be considered as part of and an amendment to the employment or service agreement between the Participant, and the Corporation and the Participant hereby agrees that the Participant will not make any claim under that employment or service agreement for any rights or entitlement under the Plan or damages in lieu thereof except as expressly provided in the Plan.
	  
	  

	5.	Participants who are “insiders” of the Corporation are required to file an insider report under Canadian securities laws in respect of the grant of RSUs and upon future conversion of these RSUs into RSU Shares and any subsequent sales of such RSU Shares.
	  
	  

	6.	In the event of any inconsistency between the terms of this Agreement and the Plan, the terms of this Agreement shall prevail to the extent that it is not inconsistent with the requirements of the TSX.

  
  	 
	A-i
	 
 
	 

  
 This Agreement shall be determined in accordance with the laws of British Columbia and the laws of Canada applicable therein.
  
 Words used herein which are defined in the Plan shall have the respective meanings ascribed to them in the Plan.
  
 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first above written.
  
  	 	  
	 AVINO SILVER & GOLD MINES LTD.
	
	 	  
	 	 	 
		  
	By:		
	  
	  
	  
	Name:	 
	 	  
	 	Title:	 
	 	  
	 	(Authorized Signing Officer)	 
	  
	  
	  
	  
	  

	 Accepted:                        , 20 ______________
	  
	  
	  
	  

	  
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 [Name]
	  
	  
	  
	  

  
  	 
	A-ii
	 
 
	 

  
 SCHEDULE B
  
 AVINO SILVER & GOLD MINES LTD.
  
 RESTRICTED SHARE UNIT NOTICE FORM
  
  	TO: 	Avino Silver & Gold Mines Ltd. (the “Company”) 

  
 This constitutes notice under my Restricted Share Unit Grant Agreement to receive RSU Shares in settlement of RSUs issued to me under the Plan. 
  
 Number of RSU Shares: ________________________
  
 The common shares are to be issued as follows:
  
 	 Name:
	
	 	  

	 Address in full:

	  
	  

	  
	  

	 	
	  
	  

		

  
 I agree to provide for the payment by me to the Company (in the manner designated by the Company) of the Company’s withholdings obligation, if any, relating to the issuance of the RSU common shares.
  
 DATED this _____ day of _______________, 20____.
  
 	  
	  

	 (Signature) 
	  

	  
	  

	  
	  

	 (Print full name)avino_ex415.htm

EXHIBIT 4.15
  
  
 PRIVATE 
  
 AVINO SILVER & GOLD MINES LTD.
  
 STOCK OPTION PLAN
  
 (Approved by the Board of Directors on April 19, 2018.)
 (Approved by the Shareholders on May 24, 2018.)
  
 	1.	PURPOSE OF THE PLAN

  
 The Company hereby establishes a stock option plan for directors, senior officers, Employees, Consultants, Consultant Company or Management Company Employees (as such terms are defined below) of the Company and its subsidiaries, or an Eligible Charitable Organization (collectively “Eligible Persons”), to be known as the “Stock Option Plan” (the “Plan”). The purpose of the Plan is to give to Eligible Persons, as additional compensation, the opportunity to participate in the success of the Company by granting to such individuals options, exercisable over periods of up to ten years, as determined by the board of directors of the Company, to buy shares of the Company at a price equal to the Market Price prevailing on the date the option is granted as permitted by the policies of the Exchanges and approved by the Board.
  
 	2.	DEFINITIONS

  
 In this Plan, the following terms shall have the following meanings:
  
  	2.1 	“Associate” means an “Associate” as defined in the TSX Policies.
	  
	  

	2.2 	“Board” means the Board of Directors of the Company.
	  
	  

	2.3 	“Change of Control” means the acquisition by any person or by any person and all Joint Actors, whether directly or indirectly, of voting securities (as defined in the Securities Act) of the Company, which, when added to all other voting securities of the Company at the time held by such person or by such person and a Joint Actor, totals for the first time not less than fifty percent (50%) of the outstanding voting securities of the Company or the votes attached to those securities are sufficient, if exercised, to elect a majority of the Board of Directors of the Company.
	  
	  

	2.4 	“Company” means Avino Silver & Gold Mines Ltd. and its successors.
	  
	  

	2.5 	“Consultant” means a “Consultant” as defined in the TSX Policies.
	  
	  

	2.6 	“Consultant Company” means a “Consultant Company” as defined in the TSX Policies.

  
  	 
	1
	 
 
	 

  
  	2.7 	“Disability” means any disability with respect to an Optionee which the Board, in its sole and unfettered discretion, considers likely to prevent permanently the Optionee from:

  
  	  
	(a)	being employed or engaged by the Company, its subsidiaries or another employer, in a position the same as or similar to that in which he was last employed or engaged by the Company or its subsidiaries; or
	  
	  
	  

	  
	(b)	acting as a director or officer of the Company or its subsidiaries.

    
  	2.8 	“Option Price” means, the Option Price granted pursuant to the Company’s stock option plan must be at no less than the closing price prior to the date of grant.
	  
	  

	2.9 	“Eligible Charitable Organization” means an “Eligible Charitable Organization” as defined in the TSX Policies.
	  
	  

	2.10 	“Eligible Persons” has the meaning given to that term in section 1 hereof.
	  
	  

	2.11 	“Employee” means an “Employee” as defined in the TSX Policies.
	  
	  

	2.12 	“Exchanges” means the Toronto Stock Exchange and, if applicable, any other stock exchange on which the Shares are listed.
	  
	  

	2.13 	“Expiry Date” means the date set by the Board under subsection 3.1 of the Plan, as the last date on which an Option may be exercised.
	  
	  

	2.14 	“Grant Date” means the date specified in the Option Agreement as the date on which an Option is granted.
	  
	  

	2.15 	“Insider” means an “Insider” as defined in the British Columbia Securities Act.
	  
	  

	2.16 	“Joint Actor” means a person acting “jointly or in concert with” another person as that phrase is interpreted in Multi-lateral Instrument 62-104, Take-Over Bids and Issuer Bids.
	  
	  

	2.17 	“Management Company Employee” means a “Management Company Employee” as defined in the TSX Policies.
	  
	  

	2.18 	“Market Price” of Shares at any Grant Date means the last closing price per Share on the Toronto Stock Exchange on the trading day immediately preceding the day on which the Company announces the grant of the option. or, if the grant is not announced, on the Grant Date, or if the Shares are not listed on any stock exchange, “Market Price” of Shares means the price per Share on the over-the-counter market determined by dividing the aggregate sale price of the Shares sold by the total number of such Shares so sold on the applicable market for the last day prior to the Grant Date.
	  
	  

	2.19 	“Option” means an option to purchase Shares granted pursuant to this Plan.
	  
	  

	2.20 	“Option Agreement” means an agreement, in the form attached hereto as Schedule “A”, whereby the Company grants to an Optionee an Option.
	  
	  

	2.21 	“Optionee” means each of Eligible Persons granted an Option pursuant to this Plan and their heirs, executors and administrators.

  
  	 
	2
	 
 
	 

  
  	2.22 	“Option Price” means the price per Share specified in an Option Agreement, adjusted from time to time in accordance with the provisions of section 5.
	  
	  

	2.23 	“Option Shares” means the aggregate number of Shares which an Optionee may purchase under an Option.
	  
	  

	2.24 	“Plan” means this Stock Option Plan.
	  
	  

	2.25 	“Securities Act” means the Securities Act, R.S.B.C. 1996, c.418, as amended, as at the date hereof.
	  
	  

	2.26 	“Shares” means the common shares in the capital of the Company as constituted on the Grant Date provided that, in the event of any adjustment pursuant to section 5, “Shares” shall thereafter mean the shares or other property resulting from the events giving rise to the adjustment.
	  
	  

	2.27 	“TSX Policies” means the policies included in the Toronto Stock Exchange Company Manual.
	  
	  

	2.28 	“Unissued Option Shares” means the number of Shares, at a particular time, which have been reserved for issuance upon the exercise of an Option but which have not been issued, as adjusted from time to time in accordance with the provisions of section 5, such adjustments to be cumulative.
	  
	  

	2.29 	“Vested” means that an Option has become exercisable in respect of a number of Option Shares by the Optionee pursuant to the terms of the Option Agreement.
	  
	  

	 3.
	 GRANT OF OPTIONS

	  
	  

	 3.1
	 Option Terms

  
 The Board may from time to time authorize the issue of Options to Eligible Persons of the Company and its subsidiaries. The Option Price under each Option shall be not less than the Market Price on the Grant Date. The Expiry Date for each Option shall be set by the Board at the time of issue of the Option subject to section 3.4, and shall not be more than ten years after the Grant Date. Options shall not be assignable (or transferable) by the Optionee.
  
 	3.2 	Limits on Shares Issuable on Exercise of Options

  
 The maximum number of Shares issuable under the Plan shall not, together with all other security-based compensation arrangements of the Company, exceed 10% of the issued and outstanding Shares as at the date of such Grant Date on a non-diluted basis.
  
 Notwithstanding anything else contained herein, the number of Shares of the Company which are (i) issuable at any time, and (ii) issued within any one year period, to all insiders (as such term is defined in the TSX’s Company Manual) of the Company pursuant to the terms of the Plan and under any other security-based compensation arrangement, shall not exceed 10% of the Company’s total issued and outstanding common shares on a non-diluted basis.
  
  	 
	3
	 
 
	 

  
 	3.3 	Option Agreements

  
 Each Option shall be confirmed by the execution of an Option Agreement. Each Optionee shall have the option to purchase from the Company the Option Shares at the time and in the manner set out in the Plan and in the Option Agreement applicable to that Optionee. For stock options to Employees, Consultants, Consultant Company or Management Company Employees, the Company is representing herein and in the applicable Option Agreement that the Optionee is a bona fide Employee, Consultant, Consultant Company or Management Company Employee, as the case may be, of the Company or its subsidiary. The execution of an Option Agreement shall constitute conclusive evidence that it has been completed in compliance with this Plan.
  
 	3.4 	Blackout Periods

  
 The Company may from time to time self-impose trading blackouts during which some or all Directors, Officers, Employees, Consultants, Consultant Companies or Management Company Employees may not trade in the securities of the Company. In the event that a trading blackout is imposed by management or the Board, in accordance with any insider trading policy that the Company may adopt from time to time, participants subject to the blackouts are prohibited from buying, selling or otherwise trading in securities of the Company until such time as notice is formally given by the Company that trading may resume.
  
 If the Expiry Date of any Option falls within such a blackout period, it shall be automatically extended to the date which is ten business days following the end of such blackout period. For greater certainty, the expiry date of an Option shall not be extended in the event a cease trade order is issued by a securities regulatory authority against the Company or the holder of an Option.
  
  	4.	EXERCISE OF OPTION
	  
	  

	4.1 	When Options May be Exercised

 
 Subject to subsections 4.3 and 4.4, an Option shall be granted as fully Vested on the Grant Date, and may be exercised to purchase any number of Shares up to the number of Unissued Option Shares at any time after the Grant Date, provided that this Plan has been previously approved by the shareholders of the Company, up to 4:00 p.m. local time on the Expiry Date and shall not be exercisable thereafter.
  
 	4.2 	Manner of Exercise

  
 The Option shall be exercisable by delivering to the Company a notice specifying the number of Shares in respect of which the Option is exercised together with payment in full of the Option Price for each such Share, substantially in the form of Schedule “B”. Upon notice and payment there will be binding contract for the issue of the Shares in respect of which the Option is exercised, upon and subject to the provisions of the Plan. Delivery of the Optionee’s cheque payable to the Company in the amount of the Option Price shall constitute payment of the Option Price unless the cheque is not honoured upon presentation in which case the Option shall not have been validly exercised. 
  
  	 
	4
	 
 
	 

  
 	4.3 	Vesting of Option Shares

  
 An Option granted hereunder shall be subject to a vesting schedule imposed by the Board as a condition of the grant on the Grant Date, subject to a minimum of one-third of the number of Shares which may be issuable pursuant to an Option being Vested on each of the first, second and third anniversaries of the Grant Date.
  
 	4.4 	Termination of Employment

  
 If an Optionee ceases to be an Eligible Person, his or her Option shall be exercisable as follows:
  
  	  
	(a)	Death or Disability
	  
	  
	  

	  
	  
	 If the Optionee ceases to be an Eligible Person, due to his or her death or Disability or, in the case of an Optionee that is a company, the death or Disability of the person who provides management or consulting services to the Company or to any entity controlled by the Company, the Option then held by the Optionee shall be exercisable to acquire Vested Unissued Option Shares at any time up to but not after the earlier of:

  
  	  
	(i)	365 days after the date of death or Disability; and
	  
	  
	  

	  
	(ii)	the Expiry Date.

  
  	  
	(b)	Termination For Cause
	  
	  
	  

	  
	  
	 If the Optionee, or in the case of a Management Company Employee or a Consultant Company, the Optionee’s employer, ceases to be an Eligible Person as a result of termination for cause, as that term is interpreted by the courts of the jurisdiction in which the Optionee, or, in the case of a Management Company Employee or a Consultant Company, of the Optionee’s employer, is employed or engaged; any outstanding Option held by such Optionee on the date of such termination shall be cancelled as of that date.

	  
	  
	  

	  
	 (c)
	 Early Retirement, Voluntary Resignation or Termination Other than For Cause

	  
	  
	  

	  
	  
	 If the Optionee or, in the case of a Management Company Employee or a Consultant Company, the Optionee’s employer, ceases to be an Eligible Person due to his or her retirement at the request of his or her employer earlier than the normal retirement date under the Company’s retirement policy then in force, or due to his or her termination by the Company other than for cause, or due to his or her voluntary resignation, the Option then held by the Optionee shall be exercisable to acquire Vested Unissued Option Shares at any time up to but not after the earlier of the Expiry Date and the date which is 90 days after the Optionee or, in the case of a Management Company Employee or a Consultant Company, the Optionee’s employer, ceases to be an Eligible Person.

  
  	 
	5
	 
 
	 

  
 	4.5 	Effect of a Take-Over Bid

  
 If a bona fide offer (an “Offer”) for Shares is made to the Optionee or to shareholders of the Company generally or to a class of shareholders which includes the Optionee, which Offer, if accepted in whole or in part, would result in the offeror becoming a control person of the Company, within the meaning of subsection 1(1) of the Securities Act, the Company shall, immediately upon receipt of notice of the Offer, notify each Optionee of full particulars of the Offer, whereupon the Option Shares subject to such Option may be exercised in whole or in part by the Optionee so as to permit the Optionee to tender the Option Shares received upon such exercise, pursuant to the Offer. However, if:
  
  	  
	(a)	the Offer is not completed within the time specified therein; or
	  
	  
	  

	  
	(b)	all of the Option Shares tendered by the Optionee pursuant to the Offer are not taken up or paid for by the offeror in respect thereof,

  
 then the Option Shares received upon such exercise, or in the case of clause (b) above, the Option Shares that are not taken up and paid for, may be returned by the Optionee to the Company and reinstated as authorized but unissued Shares and with respect to such returned Option Shares, the Option shall be reinstated as if it had not been exercised. If any Option Shares are returned to the Company under this subsection 4.5, the Company shall immediately refund the exercise price to the Optionee for such Option Shares.
  
 	4.6 	Acceleration of Expiry Date

  
 If at any time when an Option granted under the Plan remains unexercised with respect to any Unissued Option Shares, an Offer is made by an offeror, the Directors may, upon notifying each Optionee of full particulars of the Offer, declare all Option Shares issuable upon the exercise of Options granted under the Plan, are Vested (subject to the proviso below), and declare that the Expiry Date for the exercise of all unexercised Options granted under the Plan is accelerated so that all Options will either be exercised or will expire prior to the date upon which Shares must be tendered pursuant to the Offer. The Directors shall give each Optionee as much notice as possible of the acceleration of the Options under this section, except that not less than 5 business days and not more than 35 days notice is required.
  
 	4.7 	Effect of a Change of Control

  
 If a Change of Control occurs, all Option Shares subject to each outstanding Option may be exercised in whole or in part by the Optionee.
  
 	4.8 	Exclusion From Severance Allowance, Retirement Allowance or Termination Settlement

  
 If the Optionee, or, in the case of a Management Company Employee or a Consultant Company, the Optionee’s employer, retires, resigns or is terminated from employment or engagement with the Company or any subsidiary of the Company, the loss or limitation, if any, by the cancellation of the right to purchase Option Shares under the Option Agreement shall not give rise to any right to damages and shall not be included in the calculation of nor form any part of any severance allowance, retiring allowance or termination settlement of any kind whatsoever in respect of such Optionee.
  
  	 
	6
	 
 
	 

  
 	4.9 	Shares Not Acquired or Exercised

  
 Any Unissued Option Shares not acquired by an Optionee under an Option which has expired, and any Option Shares acquired by an Optionee under an Option when exercised, may be made the subject of a further Option granted pursuant to the provisions of the Plan.
  
  	5.	ADJUSTMENT OF OPTION PRICE AND NUMBER OF OPTION SHARES
	  
	  

	5.1 	Share Reorganization

 
 Whenever the Company issues Shares to all or substantially all holders of Shares by way of a stock dividend or other distribution, or subdivides all outstanding Shares into a greater number of Shares, or combines or consolidates all outstanding Shares into a lesser number of Shares (each of such events being herein called a “Share Reorganization”) then effective immediately after the record date for such dividend or other distribution or the effective date of such subdivision, combination or consolidation, for each Option:
  
  	  
	(a)	the Option Price will be adjusted to a price per Share which is the product of:

  
  	  
	(i)	the Option Price in effect immediately before that effective date or record date; and
	  
	  
	  

	  
	(ii)	a fraction, the numerator of which is the total number of Shares outstanding on that effective date or record date before giving effect to the Share Reorganization, and the denominator of which is the total number of Shares that are or would be outstanding immediately after such effective date or record date after giving effect to the Share Reorganization; and

  
  	  
	(b)	the number of Unissued Option Shares will be adjusted by multiplying (i) the number of Unissued Option Shares immediately before such effective date or record date by (ii) a fraction which is the reciprocal of the fraction described in subparagraph (a)(ii).

  
 	5.2 	Special Distribution

  
 Subject to the prior approval of the Exchanges, whenever the Company issues by way of a dividend or otherwise distributes to all or substantially all holders of Shares:
  
  	  
	(a)	shares of the Company, other than the Shares;
	  
	  
	  

	  
	(b)	evidences of indebtedness;
	  
	  
	  

	  
	(c)	any cash or other assets, excluding cash dividends (other than cash dividends which the Board of Directors of the Company has determined to be outside the normal course); or
	  
	  
	  

	  
	(d)	rights, options or warrants,

  
  	 
	7
	 
 
	 

  
 then to the extent that such dividend or distribution does not constitute a Share Reorganization (any of such non-excluded events being herein called a “Special Distribution”), and effective immediately after the record date at which holders of Shares are determined for purposes of the Special Distribution, for each Option the Option Price will be reduced, and the number of Unissued Option Shares will be correspondingly increased, by such amount, if any, as is determined by the Board in its sole and unfettered discretion to be appropriate in order to properly reflect any diminution in value of the Option Shares as a result of such Special Distribution.
  
 	5.3 	Corporate Organization

  
 Whenever there is:
   
  	  
	(a)	a reclassification of outstanding Shares, a change of Shares into other shares or securities, or any other capital reorganization of the Company, other than as described in subsections 5.1 or 5.2;
	  
	  
	  

	  
	(b)	a consolidation, merger or amalgamation of the Company with or into another corporation resulting in a reclassification of outstanding Shares into other shares or securities or a change of Shares into other shares or securities; or
	  
	  
	  

	  
	(c)	a transaction whereby all or substantially all of the Company’s undertaking and assets become the property of another corporation,

  
 (any such event being herein called a “Corporate Reorganization”) the Optionee will have an option to purchase (at the times, for the consideration, and subject to the terms and conditions set out in the Plan) and will accept on the exercise of such option, in lieu of the Unissued Option Shares which he would otherwise have been entitled to purchase, the kind and amount of shares or other securities or property that he would have been entitled to receive as a result of the Corporate Reorganization if, on the effective date thereof, he had been the holder of all Unissued Option Shares or if appropriate, as otherwise determined by the Directors.
  
 	5.4 	Determination of Option Price and Number of Unissued Option Shares

  
 If any questions arise at any time with respect to the Option Price or number of Unissued Option Shares deliverable upon exercise of an Option following a Share Reorganization, Special Distribution or Corporate Reorganization, such questions shall be conclusively determined by the Company’s auditor, or, if they decline to so act, any other firm of Chartered Accountants in Vancouver, British Columbia, that the Directors may designate and who will have access to all appropriate records and such determination will be binding upon the Company and all Optionees.
  
 	5.5 	Regulatory Approval

  
 Any adjustment to the Option Price or the number of Unissued Option Shares purchasable under the Plan pursuant to the operation of any one of subsection 5.1, 5.2 or 5.3 is subject to the approval of the Exchanges where required pursuant to their policies and any other governmental authority having jurisdiction.
  
  	 
	8
	 
 
	 

  
  	6.	MISCELLANEOUS
	  
	  

	6.1 	Right to Employment

 
 Neither this Plan nor any of the provisions hereof shall confer upon any Optionee any right with respect to employment or continued employment with the Company or any subsidiary of the Company or interfere in any way with the right of the Company or any subsidiary of the Company to terminate such employment.
  
 	6.2 	Necessary Approvals

  
 The Plan shall be effective only upon the approval of the shareholders of the Company given by way of an ordinary resolution. Any Options granted under this Plan prior to such approval shall only be exercised upon the receipt of such approval. Disinterested shareholder approval (as required by the Exchanges) will be obtained for any reduction in the exercise price of any Option granted under this Plan if the Optionee is an Insider of the Company at the time of the proposed amendment. The obligation of the Company to sell and deliver Shares in accordance with the Plan is subject to the compliance with the policies of the Exchanges and applicable securities rules or regulations of any governmental authority having jurisdiction. If any Shares cannot be issued to any Optionee for any reason, including, without limitation, the failure to comply with such policies, rules or regulations or to obtain such shareholder approval, then the obligation of the Company to issue such Shares shall terminate and any Option Price paid by an Optionee to the Company shall be immediately refunded to the Optionee by the Company.
  
 	6.3 	Administration of the Plan

  
 The Directors shall, without limitation, have full and final authority in their discretion, but subject to the express provisions of the Plan, to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan and to make all other determinations deemed necessary or advisable in respect of the Plan. Except as set forth in subsection 5.4, the interpretation and construction of any provision of the Plan by the Directors shall be final and conclusive. Administration of the Plan shall be the responsibility of the appropriate officers of the Company and all costs in respect thereof shall be paid by the Company.
  
 	6.4 	Income Taxes

  
 As a condition of and prior to participation of the Plan any Optionee shall on request authorize the Company in writing to withhold from any remuneration otherwise payable to him or her any amounts required by any taxing authority to be withheld for taxes of any kind as a consequence of his or her participation in the Plan.
  
 	6.5 	Amendments to the Plan

  
 The Directors may from time to time, subject to applicable law and to the prior approval, if required, of the Exchanges or any other regulatory body having authority over the Company or the Plan, suspend, terminate or discontinue the Plan at any time, or amend or revise the terms of the Plan or of any Option granted under the Plan and the Option Agreement relating thereto, provided that no such amendment, revision, suspension, termination or discontinuance shall in any manner adversely affect any option previously granted to an Optionee under the Plan without the consent of that Optionee. 
  
  	 
	9
	 
 
	 

  
 	6.6 	Amendments without Shareholder Approval

  
 Without limiting the generality of the foregoing, the Board may make the following amendments to the Plan or awards thereunder, without obtaining shareholder approval:
  
  	  
	(a)	amendments to the terms and conditions of the Plan or awards thereunder necessary to ensure that the Plan or awards thereunder complies with the applicable laws, regulations, rules, orders of governmental or regulatory authorities or the requirements of the Exchanges in place from time to time;
	  
	  
	  

	  
	(b)	amendments to the provisions of the Plan or awards thereunder respecting administration of the Plan and eligibility for participation under the Plan;
	  
	  
	  

	  
	(c)	amendments to the provisions of the Plan or awards thereunder respecting the terms and conditions on which grants may be made pursuant to the Plan, including the provisions relating to the vesting and Expiry Date.;
	  
	  
	  

	  
	(d)	amendments to the Plan or awards thereunder that are of a “housekeeping” nature; and
	  
	  
	  

	  
	(e)	and any other amendments, fundamental or otherwise, not requiring shareholder approval under applicable laws or applicable policies of the Exchanges.

  
 	6.7 	Amendments Requiring Shareholder Approval

  
 Without limiting the generality of the foregoing, the Board may not, without the approval of the Company’s shareholders, make the following amendments to the Plan:
  
  	  
	(a)	a reduction in the Option Price benefiting an Insider of the Company;
	  
	  
	  

	  
	(b)	an extension of the Expiry Date benefiting an Insider of the Company;
	  
	  
	  

	  
	(c)	any amendment to remove or to increase the Insider participation limits described in section 3.2;
	  
	  
	  

	  
	(d)	an increase to the maximum number of Shares issuable as a fixed percentage of the Company’s outstanding capital represented by such Shares; and
	  
	  
	  

	  
	(e)	amendments to an amending provision within the Plan.

  
 	6.8 	Form of Notice

  
 A notice given to the Company shall be in writing, signed by the Optionee and delivered to the head business office of the Company, substantially in the form of Schedule “B”.
  
  	 
	10
	 
 
	 

  
 	6.9 	No Representation or Warranty

  
 The Company makes no representation or warranty as to the future market value of any Shares issued in accordance with the provisions of the Plan.
  
 	6.10 	Compliance with Applicable Law

  
 If any provision of the Plan or any Option Agreement contravenes any law or any order, policy, by-law or regulation of any regulatory body or Exchanges having authority over the Company or the Plan, then such provision shall be deemed to be amended to the extent required to bring such provision into compliance therewith.
  
 	6.11 	No Assignment

  
 No Optionee may assign any of his or her rights under the Plan or any Option granted thereunder.
  
 	6.12 	Rights of Optionees

  
 An Optionee shall have no rights whatsoever as a shareholder of the Company in respect of any of the Unissued Option Shares (including, without limitation, voting rights or any right to receive dividends, warrants or rights under any rights offering).
  
 	6.13 	Conflict

  
 In the event of any conflict between the provisions of this Plan and an Option Agreement, the provisions of this Plan shall govern.
  
 	6.14 	Governing Law

  
 The Plan and each Option Agreement issued pursuant to the Plan shall be governed by the laws of the Province of British Columbia.
  
 	6.15 	Time of Essence

  
 Time is of the essence of this Plan and of each Option Agreement. No extension of time will be deemed to be or to operate as a waiver of the essentiality of time.
  
 	6.16 	Entire Agreement

  
 This Plan and the Option Agreement sets out the entire agreement between the Company and the Optionees relative to the subject matter hereof and supersedes all prior agreements, undertakings and understandings, whether oral or written.
  
  	 
	11
	 
 
	 

  
 SCHEDULE “A”
 AVINO SILVER & GOLD MINES LTD.
 STOCK OPTION PLAN
  
 OPTION AGREEMENT
  
 This Option Agreement is entered into between Avino Silver & Gold Ltd. (the “Company”) and the Optionee named below pursuant to the Company Stock Option Plan (the “Plan”), a copy of which is attached hereto, and confirms that:
  
  	1.	on n, 201n (the “Grant Date”);
	  
	  

	2.	n (the “Optionee”);
	  
	  

	3.	was granted the option (the “Option”) to purchase n common shares (the “Option Shares”) of the Company;
	  
	  

	4.	for the price (the “Option Price”) of $n per share;
	  
	  

	5.	which shall be exercisable as fully vested from the Grant Date [NTD: unless vesting schedule required by board];
	  
	  

	6.	When the Option is exercised and prior to the delivery of the Option Shares, the Company will forthwith calculate all applicable Canadian government withholdings and taxes of the Optionee in connection with the exercise, and the Optionee agrees to pay to the Company such withholdings and taxes, which will then be remitted by the Company to Canada Revenue Agency and any applicable Provincial taxing authority, and reflected on any annual statement of remuneration issued by the Company to the Optionee;
	  
	  

	7.	terminating on the n, 201n (the “Expiry Date”);

  
 all on the terms and subject to the conditions set out in the Plan. For greater certainty, once Option Shares have been granted, they continue to be exercisable until the termination or cancellation thereof as provided in this Option Agreement and the Plan.
  
 By signing this Option Agreement, the Optionee acknowledges that the Optionee has read and understands the Plan and agrees to the terms and conditions of the Plan and this Option Agreement.
  
 IN WITNESS WHEREOF the parties hereto have executed this Option Agreement as of the n day of n, 201n.
  
  	 	 	 	AVINO SILVER & GOLD MINES LTD.	 
	  
	  
	  
	 Per:
	  

		 	 		 
	OPTIONEE	 	 	Authorized Signatory	 

  
  	 
	 
	 
 
	 

  
 SCHEDULE “B”
 AVINO SILVER & GOLD MINES LTD.
 STOCK OPTION PLAN
  
 NOTICE OF EXERCISE
  
 TO: AVINO SILVER & GOLD MINES LTD. (the “Company”) 
  
 This constitutes notice under my stock option agreement that I elect to purchase the number of common shares of the Company for the price set forth below. 
  
 Number of common shares as to which option is exercised: ________________________
  
 Total exercise price: ________________________
  
 The common shares are to be issued as follows:
  
 	 Name:
	
		  

	 Address in full:
	
		
		

  
 By this exercise, I agree to provide for the payment by me to the Company (in the manner designated by the Company) of the Company’s withholdings obligation, if any, relating to the exercise of this option.
  
 DATED this _____ day of _______________, 20____.
  
 	  
	  

	 (Signature of Optionee)
	  

	  
	  

	 (Print full name)

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