Document:

avino_ex410.htm

EXHIBIT 4.10

   

	
 
	
 
	
T 604.682.3701 Suite 900, 570 Granville Street ir@avino.com

F 604.682.3600 Vancouver, BC V6C 3P1 www.avino.com

    

	Date:	March 23, 2016
	
  
	
 

	
To: 
	
Intermark Capital Corp.

	
 
	
 

	
Re: 
	
Amendment to Consulting Agreement between Avino Silver & Gold Mines Ltd. (the “Company”) and Intermark Capital Corp. (the “Consultant”) dated January 1, 2016 (the “Contract”)

	
 
	
 

	
 

  

In accordance with Section 5.1(c) of the above referenced Contract, the Company hereby provides its written Notice to amend the Contract, effective March 23, 2016, by removing Section 5.1(c) in its entirety and replacing it with the following:

 

	
5.1
	
(c)
	
by the Consultant electing to give the Company notice, in the event that there occurs a Change of Control (as defined below) within six (6) months of the effective date of such Change of Control, and if the Consultant so elects to terminate this Agreement, then the Consultant will be immediately entitled to a termination payment equal to CDN$2 million.

	
 
	
 
	
  

	
 
	
 
	
For the purpose of this clause, a Change of Control shall be deemed to have occurred when:

  

	
 
	(i)	any person, entity or group becomes the beneficial owner of 20% or more of the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the election of directors, and such person, entity or group uses such effective voting control to change a majority of the Board of Directors of the Company, either all at once or through any series of elections and appointments when considered together; or
	
 
	
 
	
 

	
 
	(ii)	completion of the sale or other disposition by the Company of all or substantially all of the Company’s assets or a reorganization or merger or consolidation of the Company with any other entity or corporation, other than:
	
 
	
 
	
 

	
 
	(A)	a reorganization or merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent, either by remaining outstanding or by being converted into voting securities of another entity, more than 50.1% of the combined voting power of the voting securities of the Company or such other entity outstanding immediately after such reorganization or merger or consolidation; or
	
 
	
 
	
 

	
 
	(B)	a reorganization or merger or consolidation effected to implement a recapitalization or reincorporation of the Company (or similar transaction) that does not result in a material change in beneficial ownership of the voting securities of the Company or its successor.

 

	 
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In all other respects the Contract shall remain in full force and effect.

 

	
AVINO SILVER& GOLD MINES LTD.
	
 

	
  
	
 

	
 
	
 

	
Authorized Signatory
	
 

	
     
	
 

	
 
	
 

	
Authorized Signatory
	
 

	
 
	
 

	
 
	
 

	
Acknowledge and Agreed to this 23rd day of March, 2016. 
	
 

	
  
	
 

	
INTERMARK CAPITAL CORP.
	
 

	
 
	
 

	
 
	
 

 

	 
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In all other respects the Contract shall remain in full force and effect.
	
 

	
   
	
 

	
AVINO SILVER & GOLD MINES LTD.
	
 

	
 
	
 

	
 
	
 

	
Authorized Signatory
	
 

	
  
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
  
	
 

	
Acknowledge and Agreed to this 23rd day of March, 2016.
	
 

	
 
	
 

	
INTERMARK CAPITAL CORP.
	
 

	
   
	
 

	
 
	
 

	
Authorized Signatory
	
 

 

	 
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CONSULTING AGREEMENT

 

THIS AGREEMENT is dated for reference the 1st day of January, 2016 (the “Effective Date”).

 

BETWEEN:

 

AVJNO SILVER & GOLD MINES LTD., a company duly incorporated pursuant to the laws of the Province of British Columbia and having its head office at Suite 900 - 570 Granville Street, Vancouver, British Columbia V6C 3Pl

 

(the “Company”)

 

AND:

 

INTERMARK CAPITAL CORP.. a company duly incorporated pursuant to the laws of the Province of British Columbia and having an office at Suite 900-570 Granville Street, Vancouver, British Columbia V6C 3P1

 

(the “Consultant”)

 

WHEREAS:

 

	A.	The Company is a mining and exploration company, whose common shares are listed on the TSX Venture Exchange and NYSE MKT;
	
 
	
 

	B.	The Consultant provides management and financial consulting services to exploration and development companies, and the principal shareholder of the Consultant, David Wolfin (the “Principal”), has been the President and Chief Executive Officer and a director of the Company; and
	
 
	
 

	C.	The Company wishes to engage the management and financial services of the Consultant, and the Consultant wishes to be engaged by the Company, to perform the functions of a management consultant to the Company as set forth herein below.

 

NOW THEREFORE, in consideration of the premises and the covenants and agreements of the parties hereto as hereinafter set forth, and for other good and reliable consideration, the sufficiency of which is hereby acknowledged by the parties, the parties hereto covenant and agree as follows:

 

	1.

	ENGAGEMENT OF CONSULTANT
	
 
	
 

	1.1	The Company hereby appoints and engages the Consultant as a consultant with respect to the Services (as defined below) and the Consultant hereby accepts such appointment and engagement by the Company, all upon and subject to the terms and conditions of this Agreement.
	
 
	
 

	2.	SERVICES OF CONSULTANT
	
 
	
 

	2.1	During the Term (as defined below), the Consultant shall provide to the Company advisory and consulting services as more particularly set forth in Schedule “A” or as the Company may request from time to time (collectively, the “Services”).

 

	 
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	2.2 	The Consultant shall at all times and in all respects do its utmost to enhance and develop the business interests and welfare of the Company.
	
 
	
 

	2.3 	The Consultant shall be subject to such supervision as may be imposed by the Company in its sole discretion, and the Consultant shall furnish regular reports and any other data and information relating to the Services as may, from time to time, be requested by the Company.
	
 
	
 

	2.4 	The Consultant shall provide its services to the Company.
	
 
	
 

	
3.
	
FEES

	
 
	
 

	
3.1
	
The Company will pay the Consultant basic remuneration for its services in the sum of $25,000 per month, based on 150 hours per month at an hourly rate of $166.66 (the “Consulting Fee”) commencing on the 1st day of January, 2016, and payable on the last day of each month thereafter up to and including the 31st day of December, 2018, together with any such increments thereto as the Compensation Committee of the Board of Directors of the Company may from time to time determine. In addition, the Company will pay to the Consultant all reasonable expenses of the Consultant as agreed to from time to time which are incurred by the Consultant in delivery of the Services, based on monthly invoices submitted to the Company, including copies of all paid receipts; plus harmonized sales taxes or goods and services taxes, as the case may be, in addition to the Consulting Fees, which taxes will be remitted by the Consultant to the Canada Revenue Agency.

	
 
	
 

	
4.
	
TERM AND RENEWAL

	
 
	
 

	
4.1
	
During the term of this Agreement, the Consultant shall provide its Services to the Company through its Principal, and the Consultant shall ensure that the Principal will be available to provide such Services to the Company in a timely manner.

	
 
	
 

	
4.2
	
The term of this Agreement is for a period of three (3) years (the “Term”) commencing on the Effective Date and, unless terminated earlier in accordance with the termination provisions of this Agreement, ending on December 31, 2018.

	
 
	
 

	
5.
	
TERMINATION

	
 
	
 

	
5.1
	
This Agreement can be terminated at any time prior to the expiry of the Term, as follows:

 

	
 
	(a)	by the Consultant electing to give the Company not less than 3 months prior notice of such termination;
	
 
	
 
	
 

	
 
	(b)	by the Company electing to give the Consultant 3 months prior notice of such termination along with a termination payment equal to the annual Consulting Fee; and
	
 
	
 
	
 

	
 
	(c)	by the Consultant electing to give the Company notice, in the event that there occurs a Change of Control (as defined below) within six (6) months of the effective date of such Change of Control, and if the Consultant so elects to terminate this Agreement, then the Consultant will be entitled to a termination payment equal to the annual Consulting Fee within thirty (30) days of the date of termination.
	
 
	
 
	
 

	
 
	
 
	
For the purpose of this clause, a Change of Control shall be deemed to have occurred when:

 
	 
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	(i)	any person, entity or group becomes the beneficial owner of 20% or more of the combined voting power of the company's then outstanding voting securities entitled to vote generally in the election of directors, and such person, entity or group uses such effective voting control to change a majority of the Board of Directors of the company, either all at once or through any series of elections and appointments when considered together; or
	
 
	
 
	
 

	
 
	(ii)	completion of the sale or other disposition by the Company of all or substantially all of the Company’s assets or a reorganization or merger or consolidation of the Company with any other entity or corporation, other than:
	
 
	
 
	
 

	
 
	(A)	a reorganization or merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent, either by remaining outstanding or by being converted into voting securities of another entity, more than 50.1% of the combined voting power of the voting securities of the Company or such other entity outstanding immediately after such reorganization or merger or consolidation; or
	
 
	
 
	
 

	
 
	(B)	a reorganization or merger or consolidation effected to implement a recapitalization or reincorporation of the Company (or similar transaction) that does not result in a material change in beneficial ownership of the voting securities of the Company or its successor.
	
 
	
 
	
 

	5.2	On any termination of this Agreement under Section 5.l(a), (b), or (c) all outstanding stock options granted to the Consultant shall be exercisable in accordance with the terms of the option agreements covering such grants. If there is any inconsistency between the terms of this Agreement and the terms of any stock option agreement governing the grant of any stock options to the Consultant or the Principal, then the terms of such stock option agreement shall prevail.
	
 
	
 

	5.3	This Agreement and the Term shall terminate automatically, without any prior notice or any payment to the Consultant, in the event that:
	
 
	
 

	
 
	(a)	the three year Term expires on December 31, 2018;
	
 
	
 
	
 

	
 
	(b)	the Consultant should no longer be able to provide the Services through the Principal for any reason;
	
 
	
 
	
 

	
 
	(c)	upon the death or permanent incapacity of the Principal; or
	
 
	
 
	
 

	
 
	(d)	The Consultant commits any material breach of this Agreement which breach is not remedied within 30 days after notice to the Consultant of such breach.

	
 
	
 

	6.	CONFIDENTIALITY
	
  
	
 

	6.1	The Consultant acknowledges and agrees that in the performance of its obligations under this Agreement, it may obtain knowledge of Confidential Information (as defined below) relating to the business or affairs of the Company or its affiliated companies (the “Affiliated Companies”). The Consultant and the Principal shall not, without the prior written consent of the Company, either during the Term or at any time thereafter:
	
 
	
 

	
 
	(a)	use or disclose any Confidential Information outside of the Company or the Affiliated Companies;

	 
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	(b)	except in undertaking the Services, remove or aid in the removal from the premises of the Company or any of the Affiliated Companies any Confidential Information or any property or material relating thereto; or
	
 
	
 
	
 

	
 
	(c)	use the Confidential Information for any purpose other than in performing the Services.
	
 
	
 
	
 

	6.2	The Consultant shall exercise a reasonable degree of care in safeguarding the aforementioned Confidential Information against loss, theft, or other inadvertent disclosure, and further agrees to take all reasonable steps necessary to ensure the maintenance of confidentiality.
	
 
	
 

	6.3 	Upon the termination of this Agreement, or upon the Company’s earlier request, the Consultant and the Principal shall promptly deliver to the Company all of the Confidential Information that the Consultant and the Principal may have in their possession or control.
	
 
	
 

	6.4 	In this Agreement, “Confidential Information” shall mean any information or knowledge including, without limitation, any document, materials, know how, discovery, strategy, method, idea, client list, marketing strategy or employee compensation, or copies or adaptations thereof, that relates to the business or affairs of the Company and / or the Affiliated Companies; and is private or confidential in that it is not generally known or available to the public. Without limiting the generality of the forgoing “Confidential Information” will include:
	
 
	
 

	
 
	(a)	information regarding the Company and the Affiliated Companies’ business operations, methods and practices, including marketing strategies, product pricing, margins and hourly rates for staff, costs and all information regarding the financial affairs of the Company and the Affiliated Companies;
	
 
	
 
	
 

	
 
	(b)	all information related to the mineral exploration interests of the Company and the Affiliated Companies including maps, data, records, reports, technical studies, drill hole logs, calculations, opinions, charts, drawings, sketches, plans, documents, summaries, memoranda, analysis and all geological or technical information;
	
 
	
 
	
 

	
 
	(c)	all information related to the properties, projects, facilities, equipment and other assets used in the business of the Company and the Affiliated Companies, and all information related to the exploration or development of (or potential exploration or development of) the Company and the Affiliated Companies’ properties or projects, including without limitation any properties or projects in respect of which the Company has made any application or is in any negotiations for the acquisition of an ownership, leasehold or other interest in;
	
 
	
 
	
 

	
 
	(d)	terms of the Company and the Affiliated Companies’ relationship with, its investors, (if not otherwise publically available), partners, clients, suppliers of products or services, and the Company and the Affiliated Companies’ referral sources;
	
 
	
 
	
 

	
 
	(e)	all information concerning exploration, financing or other business opportunities of the Company and the Affiliated Companies, including all projects, ventures or joint ventures considered by the Company and the Affiliated Companies, whether or not pursued; and
	
 
	
 
	
 

	
 
	(f)	all trade secrets or other confidential or proprietary information of the Company and the Affiliated Companies including, business plans, concepts, techniques, processes, designs, data, software programs, formulae, development or experimental work, work in process or other know-how.

 

	 
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	6.5	Confidential Information shall specifically not include anything that:
	
 
	
 

	
 
	(a)	is in or enters lawfully into the public domain other than as a result of a disclosure by the Consultant or the Principal;
	
 
	
 
	
 

	
 
	(b)	becomes available to the Consultant on a non-confidential basis from a source other than the Company or the affiliated Companies, or any of its representatives, and that source was not under any obligation of confidentiality; or
	
 
	
 
	
 

	
 
	(c)	the Consultant is required to disclose pursuant to an order of a court of competent jurisdiction or by the operation of law; provided that, the Consultant provides prompt prior written notice to the Company of such required disclosure and of the action which is proposed to be taken in response. In such an event, and only after the Consultant shall have made a reasonable effort to obtain a protective order or other reliable assurance affording such information confidential treatment, the Consultant shall furnish only that portion of the Confidential Information which it is required to disclose.

   

	7.	NON-SOLICITATION
	
 
	
 

	7.1 	The Consultant covenants, undertakes and agrees with the Company that during the Term and for a period of one year from the date of expiration or termination of this Agreement for any reason whatsoever, it shall not, on its own behalf or on behalf of any person, whether directly or indirectly, in any capacity whatsoever, offer employment to or solicit the employment of or otherwise entice away from the employment of the Company or any of the Affiliated Companies, any individual who is employed or engaged by the Company or any of the Affiliated Companies at the date of expiration or termination of this Agreement or who was employed or engaged by the Company or any of the Affiliated Companies, within the one year period immediately preceding the date of expiration or termination of this Agreement, as applicable.
	
 
	
 

	7.2	The Consultant acknowledges and agrees that the above restriction on non-solicitation is reasonable and necessary for the proper protection of the businesses, property and goodwill of the Company and the Affiliated Companies.
	
 
	
 

	8.	DISCLOSURE AND ASSIGNMENT OF PROJECTS AND WORKS
	
 
	
 

	8.1	The Consultant agrees that all discoveries, maps, technical studies, plans, spreadsheets, documents, inventions, copyright, software, improvements, know-how or other intellectual property, whether or not patentable or copyrightable, created by the Consultant during the Term of this Agreement pertaining to any service, matter, thing, process or method related to this Agreement (the “Works”) will be the sole and absolute property of the Company. The Consultant will keep and maintain adequate and current written records of all Works made, which records will be available at all times to the Company and will remain the sole property of the Company.
	
 
	
 

	8.2	The Consultant will assist the Company in obtaining and enforcing, for the Company’s own benefit, patents, copyrights and any other protections in any and all countries for any and all Works made by the Consultant (in whole or in part) the rights to which belong to or have been assigned to the Company. The Consultant agrees, upon request, to execute all applications, assignments, instruments and papers and perform all acts that the Company or its counsel may deem necessary or desirable to obtain any and all patents, copyrights or other protection in such Works and otherwise to protect the interests of the Company therein.

	 
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	9.	COMPLIANCE WITH LAWS
	
 
	
 

	9.1 	The Services undertaken by the Consultant under this Agreement shall be in full compliance with all applicable laws and consistent with a high degree of business ethics.
	
 
	
 

	10.	INDEMNIFICATTON
	
 
	
 

	10.1	The Consultant shall indemnify and save harmless the Company for any demonstrated losses, damages, costs or other amounts, including without limitation reasonable legal fees, suffered or incurred by the Company arising out of third party claims relating to the presence or activities of the Consultant or its representatives in performing the Services to the extent that such losses, damages, costs or other amounts are caused by:
	
 
	
 

	
 
	(a)	any breach of the Consultant’s obligation in Section 9 herein; and
	
 
	
 
	
 

	
 
	(b)	any negligence, wilful misconduct or fraud on the part of the Consultant in performing the Services.
	
 
	
 
	
 

	10.2	Subject to the Consultant’s obligation to indemnify the Company under this Section 10, and provided that the Consultant has not breached Section 9, the Company shall indemnify and save harmless the Consultant for any demonstrated losses, damages, costs or other amounts, including without limitation reasonable legal fees, suffered or incurred by the Consultant arising out of third party claims relating to the presence or activities of the Consultant and/or its representatives in performing the Services to the extent that such losses, damages, costs or other amounts are caused by the negligence, wilful misconduct or fraud on the part of the Company.
	
 
	
 

	10.3	Neither the Company nor the Consultant shall be liable for any consequential loss, including but not limited to, claims for loss of profit, revenue or capital, loss of use of utilities, equipment or facilities, down-time cost, service interruption, cost of money, injury or damage of any character whatsoever.
	
 
	
 

	11.	REMEDIES
	
 
	
 

	11.1	The Consultant acknowledges and agrees that any breach of this Agreement by it could cause irreparable damage to the Company and/or the Affiliated Companies and that in the event of a breach by the Consultant, the Company shall have in addition to any and all other remedies at law or in equity, the right to an injunction, specific performance or other equitable relief to prevent any violation by the Consultant of any of the provisions of this Agreement. In the event of any such dispute, the Consultant agrees that the Company shall be entitled, without showing actual damages, to a temporary or permanent it unction restraining conduct of the Consultant pending a determination of such dispute and that no bond or other security shall be required from the Company in connection therewith. The Consultant acknowledges and agrees that the remedies of the Company specified in this Agreement are in addition to and not in substitution for any other rights and remedies of the Company at law or in equity and that all such rights and remedies are cumulative and not alternative or exclusive of any other rights or remedies and that the Company may have recourse to any one or more of its available rights and remedies as it shall see fit.
	
 
	
 

	12.	RELATIONSHIP
	
 
	
 

	12.1	The Company and Consultant each acknowledge and agree that the only relationship of the Consultant to the Company created by this Agreement shall for all purposes be that of a contractor, and all persons employed or engaged by the Consultant, including David Wolfin in connection herewith shall for all purposes be considered to be employed or engaged, as applicable, by the Consultant and not by the Company. The Company shall have no obligation whatsoever to pay or compensate the Consultant and/or any representative of the Consultant including David Wolfin, for taxes of any kind whatsoever that arise out of or with respect to any Consulting Fee, or any other fee, remuneration or compensation provided to the Consultant under this Agreement.

	 
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	12.2	The Consultant shall fully indemnify and hold harmless the Company from and against all assessments, claims, liabilities, costs, expenses and damages that the Company and /or any of the Affiliated Companies may suffer or incur with respect to any such taxes or benefits. For greater clarity, the Consultant is solely responsible for the deduction and remissions of income tax, pension and employment insurance in respect of any employees retained by the Consultant to perform the services under this Agreement. Furthermore, if these amounts are not remitted, the Consultant will, in addition to any other provision under this Agreement, indemnify and hold harmless the Company, its subsidiaries, affiliates and their respective directors and officers from and against any claim for taxes, penalties and for withholding of funds by the applicable tax, worker’s compensation, employment standards and insurance agencies or any other government agency with respect to any amount found to be payable by the Company to such agency or commission in respect of the Consultant’s provision of services under this Agreement, including any legal fees incurred by the Company in defending such claims.
	
 
	
 

	13.	SURVIVAL OF TERMS
	
 
	
 

	13.1	Sections 6 through 12, inclusive, and this Section 13, shall survive and remain in force notwithstanding the expiration or other termination of this Agreement for any reason whatsoever. Any expiration or termination of this Agreement shall be without prejudice to any rights and obligations of the parties hereto arising or existing up to the effective date of such expiration or termination, or any remedies of the parties with respect thereto.
	
 
	
 

	14.	LIMITED AUTHORITY AS AGENT
	
 
	
 

	14.1	Unless otherwise agreed to in writing by the parties, the Consultant may not act as an agent of the Company; however, this does not and is not intended to restrict the powers of the Principal to act as President and Chief Executive Officer of the Company in any way. Without limiting the generality of the foregoing, the Consultant shall not commit or be entitled to commit the Company to any obligation whatsoever nor shall the Consultant incur or be entitled to incur any debt or liability whatsoever on behalf of the Company, except as otherwise agreed to by the Company.
	
 
	
 

	15.	NO ASSIGNMENT
	
 
	
 

	15.1	Neither this Agreement nor any of the rights of any of the parties under this Agreement shall be assigned without the written consent of all the parties.
	
 
	
 

	16.	SUCCESSORS AND ASSIGNS
	
 
	
 

	16.1	The Agreement shall enure to the benefit of and be binding upon the parties and their respective heirs, executors, administrators, successors and permitted assigns, as the case may be.

 

	 
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	17.	WAIVER
	
 
	
 

	17.1	Any waiver of any breach or default under this Agreement shall only be effective if in writing signed by the party against whom the waiver is sought to be enforced, and no waiver shall be implied by indulgence, delay or other act, omission or conduct. Any waiver shall only apply to the specific matter waived and only in the specific instance in which it is waived.
	
 
	
 

	18.	GOVERNING LAWS
	
 
	
 

	18.1	Unless otherwise agreed to in writing by the parties, the Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein, and the parties hereto submit and attorn to the jurisdiction of the courts of the Province of British Columbia.
	
 
	
 

	19.	FURTHER ASSURANCES
	
 
	
 

	19.1	Each of the parties shall, on request by the other party, execute and deliver or cause to be executed and delivered all such further documents and instruments and do all such further acts and things as the other party may reasonably require to evidence, carry out and give full effect to the terms, conditions, intent and meaning of this Agreement and to ensure the completion of the transactions contemplated hereby.
	
 
	
 

	20.	NOTICES
	
 
	
 

	20.1	All notices required or permitted under this Agreement shall be in writing and shall be given by delivering such notice or mailing such notice by pre-paid registered mail, by facsimile transmission or electronic mail to the addresses provided under the names of each party on the first page to this Agreement. Any such notice or other communication shall, if delivered, be deemed to have been given or made and received on the date delivered (or the next business day if the day of delivery is not a business day), and if mailed, shall be deemed to have been given or made and received on the fifth business day following the day on which it was so mailed and if faxed (with confirmation received) shall be deemed to have been given or made and received on the day on which it was so faxed (or the next business day if the day of sending is not a business day). The parties may give from time to time written notice of change of address in the manner aforesaid.
	
 
	
 

	21.	CONSTRUCTION
	
 
	
 

	21.1	In this Agreement, unless otherwise indicated:
	
 
	
 

	
 
	(a)	“Agreement” means this Consulting Agreement;
	
 
	
 
	
 

	
 
	(b)	the words “include”, “including” or “in particular”, when following any general term or statement, shall not be construed as limiting the general term or statement to the specific items or matters set forth or to similar items or matters, but rather as permitting the general term or statement to refer to all other items or matters that could reasonably fall within the broadest possible scope of the general term or statement;
	
 
	
 
	
 

	
 
	(c)	“herein”, “hereby”, “hereunder”, “hereof’, “hereto” and words of similar import, refer to this Agreement as a whole and not to any particular Section of this Agreement.
	
 
	
 
	
 

	
 
	(d)	a reference to a statute means that statute, as amended and in effect as of the date hereof, and includes each and every regulation and rule made thereunder and in effect as of the date hereof, and includes all amendments thereof given effect from time to time;

	 
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	(e)	a reference to a Section means, unless the context otherwise requires, that specific Section in Agreement;
	
 
	
 
	
 

	
 
	(f)	a reference to a “consent”, “notice” or “agreement” means a consent, notice or agreement, as the case may be, by an authorized representative of the party or parties thereto;
	
 
	
 
	
 

	
 
	(g)	where a word, term or phrase is defined herein, its derivatives or other grammatical forms have a corresponding meaning;
	
 
	
 
	
 

	
 
	(h)	all words, other than defined terms, used in this Agreement, regardless of the number and gender in which they are used, shall be deemed and construed to include the singular or the plural and the masculine, feminine or body corporate, as the context may require;
	
 
	
 
	
 

	
 
	(i)	time is of the essence;
	
 
	
 
	
 

	
 
	U)	in the event that any date on which any action is required to be taken hereunder by any of the parties hereto is not a business day, such action shall be required to be taken on the next succeeding day which is a business day;
	
 
	
 
	
 

	
 
	(k)	references to a “party” or “parties” are references to a party or parties to this Agreement;
	
 
	
 
	
 

	
 
	(I)	the headings in this Agreement form no part of this Agreement and shall be deemed to have been inserted for convenience only;
	
 
	
 
	
 

	
 
	(m)	unless otherwise agreed to in writing by the parties, all dollar amount referred to herein are expressed in Canadian dollars; and
	
 
	
 
	
 

	
 
	(n)	the Effective Date of this Agreement shall be January 1, 2016, despite the actual date of execution of this Agreement.
	
 
	
 
	
 

	22.	SEVERABILITY
	
 
	
 

	22.1	If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, illegal or unenforceable, then to the fullest extent permitted by law:
	
 
	
 

	
 
	(a)	all other provisions of this Agreement shall remain in full force and effect in such jurisdiction and shall be liberally construed in order to carry out the intentions of the parties as nearly as may be possible; and
	
 
	
 
	
 

	
 
	(b)	such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction.
	
 
	
 
	
 

	23.	COUNTERPARTS AND FACSIMILE
	
 
	
 

	23.1	This Agreement may be executed in one or more counterparts and delivered by facsimile, each of which when so executed shall constitute an original and all of which together shall constitute one and the same agreement.

 

	 
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	24.	INDEPENDENT LEGAL ADVICE
	
 
	
 

	24.1	The Company has recommended to the Consultant that it obtain independent legal advice prior to signing this Agreement. The Consultant acknowledges that it has received independent legal advice or have waived the opportunity to do so and have elected to proceed without benefit of same.

 
IN WITNESS WHEREOF this Agreement has been executed as of the Effective Date.

 

	
AVINO SILVER & GOLD MINES LTD.
	
 

	
 
	
 

	
Per:
	
 

	
 
	
 

	
  
	
 

	
  
	
 

	
 
	
 

	
INTERMARK CAPITAL CORP.
	
 

	
 
	
 

	
Per:
	
 

	
 
	
 

	
  
	
 

 

	 
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THIS IS SCHEDULE “A” TO THE CONSULTING AGREEMENT

BETWEEN AVINO SILVER & GOLD MINES LTD. AND INTERMARK CAPITAL CORP.

 

Description of Consulting Service:

 

The Consultant shall provide management and financial consulting services, including the supervision of the senior management, all staff, and all field personnel of the Company, whether employees or consultants, strategic planning and property acquisitions, strategic financial planning and annual budget reviews, as well as the implementation and monitoring of the Company’s compliance with continuous reporting requirements, internal controls over accounting systems and financial reporting to the Company.

 

Duties and Responsibilities:

 

The Executive shall serve the Company as an executive officer in the position of President and Chief Executive Officer.

 

The Executive shall report to the Board and shall undertake and perform the following duties and responsibilities:

 

	
 
	·	actively engage with the Board to ensure that the initiatives of the management team are aligned with the strategic direction and objectives for the Company that have been established by the Board;
	
 
	
 
	
 

	
 
	·	provide overall direction for the Company in order for it to implement agreed strategies in order to meet Company goals and objectives;
	
 
	
 
	
 

	
 
	·	provide shareholder and investor communication and manage key investment banking and institutional relationships;
	
 
	
 
	
 

	
 
	·	make decisions in line with organizational goals, leading to desired results, and will be responsible and accountable for results;
	
 
	
 
	
 

	
 
	·	create and sustain the organizational culture and environment needed to achieve objectives and results and recruit and retain a high performance operating team;
	
 
	
 
	
 

	
 
	·	oversee the implementation and monitoring of internal controls, reporting compliance obligations, sign off on CEO Certificates for the interim and annual financial statements and setting environmental protection policies; and
	
 
	
 
	
 

	
 
	·	such other duties and responsibilities as may be assigned or vested in him by the Board from time to time and which are consistent with the duties and responsibilities of a President and Chief Executive Officer.

 

The Executive agrees, during the continuance of his employment, to devote sufficient working time, services, skill and ability to such employment and to serve at all times with loyalty and honesty in the best interests of the Company. The Executive acknowledges that the position of President and CEO will involve significant travel for business development and for investor relations.

  

  

	- 14 -avino_ex413.htm

  EXHIBIT 4.13

 

 

AVINO SILVER & GOLD MINES LTD.

 

 

 

RESTRICTED SHARE UNIT 
PLAN

 

 

 

April, 2016

 

(Approved by the Board of Directors on April 15, 2016.)
(Approved by the Shareholders on May 27, 2016.)

 

	 
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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 
	
 
	
7
	
 

		
 
	
 
	
 
	
 

	
ARTICLE 3 ADMINISTRATION
	
 
	
 8
	
 

		
 
	
 
	
 
	
 

	
3.1
	
COMMITTEE 
	
 
	
8
	
 

	
3.2
	
DELEGATION OF ADMINISTRATION 
	
 
	
8
	
 

	
3.3
	
LIMITATION OF LIABILITY
	
 
	
8
	
 

	
3.4
	
FEES
	
 
	
8
	
 

		
 
	
 
	
 
	
 

	
ARTICLE 4 RSU SHARES SUBJECT TO THE PLAN 
	
 
	
8
	
 

		
 
	
 
	
 
	
 

	
ARTICLE 5 GRANTS
	
 
	
9
	
 

		
 
	
 
	
 
	
 

	
5.1
	
MAXIMUM NUMBER OF COMMON SHARES AND LIMITATIONS 
	
 
	
9
	
 

	
5.2
	
TERMS OF GRANTS
	
 
	
9
	
 

	
5.3
	
BLACKOUT PERIODS 
	
 
	
10
	
 

		
 
	
 
	
 
	
 

	
ARTICLE 6 TERMS AND CONDITIONS OF RESTRICTED SHARE UNITS 
	
 
	
10
	
 

		
 
	
 
	
 
	
 

	
6.1
	
RSU GRANT AGREEMENT 
	
 
	
10
	
 

	
6.2
	
NUMBER OF RSUS AND ENTITLEMENT TO COMMON SHARES OR PAYMENT OF CASH
	
 
	
10
	
 

	
6.3
	
PERFORMANCE CRITERIA 
	
 
	
10
	
 

	
6.4
	
VESTING AND SETTLEMENT OF RSUS 
	
 
	
10
	
 

	
6.5
	
RIGHTS IN THE EVENT OF DEATH, RETIREMENT OR TERMINATION OF EMPLOYMENT OR SERVICE
	
 
	
11
	
 

	
6.6
	
AUTOMATIC TERMINATION OF RSUS 
	
 
	
12
	
 

	
6.7
	
RIGHTS IN THE EVENT OF A CHANGE IN CONTROL
	
 
	
12
	
 

	
6.8
	
NON-TRANSFERABILITY 
	
 
	
13
	
 

	
6.9
	
RSUS NOT COMMON SHARES
	
 
	
13
	
 

	
6.10
	
RSU SHARES FULLY PAID 
	
 
	
13
	
 

		
 
	
 
	
 
	
 

	
ARTICLE 7 EFFECTS OF ALTERATION OF SHARE CAPITAL
	
 
	
14
	
 

		
 
	
 
	
 
	
 

	
7.1
	
ADJUSTMENTS
	
 
	
14
	
 

	
7.2
	
NO FRACTIONAL RSUS 
	
 
	
14
	
 

		
 
	
 
	
 
	
 

	
ARTICLE 8 AMENDMENT AND TERMINATION
	
 
	
14
	
 

		
 
	
 
	
 
	
 

	
8.1
	
GENERALLY 
	
 
	
14
	
 

	
8.2
	
AMENDMENTS WITHOUT SHAREHOLDER APPROVAL 
	
 
	
15
	
 

	
8.3
	
AMENDMENTS REQUIRING SHAREHOLDER APPROVAL 
	
 
	
15
	
 

		
 
	
 
	
 
	
 

	
ARTICLE 9 CERTAIN SECURITIES LAW MATTERS 
	
 
	
15
	
 

		
 
	
 
	
 
	
 

	
9.1
	
RESTRICTIVE LEGEND 
	
 
	
15
	
 

	
9.2
	
ADDITIONAL DISCLOSURE AND NOTICES TO SECURITIES REGULATORY AUTHORITIES AND EXCHANGES
	
 
	
16
	
 

	
 
	
 
	
 
	
 
	
 

	
ARTICLE 10 MISCELLANEOUS PROVISIONS 
	
 
	
16
	
 

	
 
	
 
	
 
	
 
	
 

	
10.1
	
NO RIGHT TO CONTINUED EMPLOYMENT OR SERVICE
	
 
	
16
	
 

	
10.2 
	
INCOME TAX WITHHOLDING COMPLIANCE
	
 
	
17
	
 

	
10.3 
	
GOVERNING LAW 
	
 
	
17
	
 

	
10.4 
	
NON-EXCLUSIVITY 
	
 
	
17
	
 

	
 
	
 
	
 
	
 
	
 

	
ARTICLE 11 EFFECTIVE DATE AND TERM OF THE PLAN 
	
 
	
17
	
 

 
	
 

	
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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.

 

	 
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	(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 TSX Venture 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)	“Exchange Hold Period” means a four month resale restriction imposed by TSXV.
	
 
	
 
	
 

	
 
	(q)	“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.
	
 
	
 
	
 

	
 
	(r)	“Investor Relations Activities” has the meaning set forth in section 1 of Policy 1.1 of the TSXV’s Corporate Finance Manual, as amended from time to time.
	
 
	
 
	
 

	
 
	(s)	“Market Price” as at any date in respect of the Common Shares means 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.
	
 
	
 
	
 

	
 
	(t)	“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.
	
 
	
 
	
 

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

	
 
	(v)	“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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	(w)	“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.
	
 
	
 
	
 

	
 
	(x)	“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.
	
 
	
 
	
 

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

	
 
	(z)	“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.
	
 
	
 
	
 

	
 
	(aa)	“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.
	
 
	
 
	
 

	
 
	(bb)	“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)	“TSXV” means the TSX Venture Exchange; and
	
 
	
 
	
 

	
 
	(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 number of RSU Shares issuable under the Plan shall not exceed 870,560 Common Shares, provided that at no time may the combined with the number of Common Shares issuable hereunder, 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.

 

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 any insider (as such term is defined in the TSXV’s Corporate Finance Manual) of the Corporation pursuant to the terms of the Plan and under any other security-based compensation arrangement, shall not exceed 5% of the Corporation’s total issued and outstanding Common Shares.

 

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 any person performing Investor Relations Activities or a Designated Person performing any other consulting activities for the Corporation pursuant to the terms of the Plan and under any other security-based compensation arrangement, shall not exceed 2% of the Corporation’s total issued and outstanding Common Shares.

 

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 Effective Date of any Grant, or 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 for any person performing Investor Relations Activities for the Corporation such vesting period must vest in stages over a period of not less than 12 months with no more than 1⁄4 of the RSUs vesting in any three month period. The Corporation must publicly announce by press release at the time of the Grant, any RSUs granted to Designated Persons who undertake Investor Relations Activities. 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.

 

	 
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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

 

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; PROVIDED THAT where a Grant was made to a person providing Investor Relations Activities, the Board’s declaration that such RSU Shares be vested, is subject to prior approval of the Exchange. 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.

 

	 
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ARTICLE 7

EFFECTS OF ALTERATION OF SHARE CAPITAL

 

7.1 Adjustments

 

In the event that:

 

	
 
	(a)	a dividend shall be declared upon the Common Shares payable in Common Shares of the Corporation;
	
 
	
 
	
 

	
 
	(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.

 

	 
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8.2 Amendments without Shareholder Approval

 

Without limiting the generality of the foregoing, the Board may make the following amendments to the Plan, without obtaining shareholder approval:

 

	
 
	(a)	amendments to the terms and conditions of the Plan necessary to ensure that the Plan 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 respecting administration of the Plan and eligibility for participation under the Plan;
	
 
	
 
	
 

	
 
	(c)	amendments to the provisions of the Plan 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 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)	an increase to the Plan maximum or the number of Common Shares issuable under the Plan;
	
 
	
 
	
 

	
 
	(b)	amendment provisions granting additional powers to the Board to amend the Plan or entitlements thereunder;
	
 
	
 
	
 

	
 
	(c)	extension of the termination or expiry of a Grant or the removal or increase of insider participation limits described in Section 5.1; and
	
 
	
 
	
 

	
 
	(d)	a change to the definition of “Designated Person” or “Director”.

 

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.

 

	 
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If the Grant is made to a director, officer, promoter or other insider of the Corporation, and unless the Grant is qualified by prospectus, or issued under a securities take-over bid, rights offering, amalgamation, or other statutory procedure, then the RSU Grant Agreement will bear an Exchange Hold Period, and the following legend will be inserted onto the first page of the RSU Grant Agreement:

 

Without prior written approval of the TSX Venture Exchange and compliance with all applicable securities legislation, the securities represented by this agreement and any securities issued upon exercise thereof may not be sold, transferred, hypothecated or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until n, 20n [i.e., four months and one day after the date of grant].

 

In addition to the foregoing restrictive legends, 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.

 

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.

 

	 
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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.

 

ARTICLE 11

EFFECTIVE DATE AND TERM OF THE PLAN

 

This Plan is effective April 15, 2016. 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.

 

	 
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SCHEDULE A

 

AVINO SILVER & GOLD MINES LTD.

 

Without prior written approval of the TSX Venture Exchange and compliance with all applicable securities legislation, the securities represented by this agreement and any securities issued upon exercise thereof may not be sold, transferred, hypothecated or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until n, 20n [four months and one day after the date of Grant].

 

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.

 

	 
	
A-i

	

 
	 

 

	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 Venture Exchange.

 

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

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