Document:

Employment Agreement / Thomas J. Findley

  
 Exhibit 10.11

  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT made as of the 24th day of February, 2004 
  
 BETWEEN: 
  
 PERU COPPER INC., a corporation subsisting under the laws of Canada 
  
 (“Peru Copper” or the “Corporation”) 
  
 OF THE FIRST PART 
  
 - and - 
  
 THOMAS FINDLEY, of the City of Tucson, Arizona 
  
 (the “Executive”) 
  
 OF THE SECOND PART

  
 WHEREAS Peru Copper wishes to employ the Executive and the
Executive wishes to be employed by Peru Copper in connection with the continuing operation of the business carried on by Peru Copper (the “Business”) from Vancouver, British Columbia. 
  
 AND WHEREAS Peru Copper and the Executive wish to set out the terms of the
Executive’s employment. 
  
 NOW THEREFORE IN CONSIDERATION OF
the payment of the sum of $1.00, the covenants and agreements continued in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 DEFINITIONS 
  
 1. In this Agreement, in addition to those terms defined above and unless there is something in the subject matter inconsistent therewith,
the terms set forth below shall have the following corresponding meanings: 
  
 “Affiliate” means any Person which, directly or indirectly, controls or is controlled by or is under common control with a Party, and the term “Affiliated” has a corresponding meaning. For the purposes of this Agreement
“control” and “controlled” shall have the meanings ascribed thereto in the Canada Business Corporations Act. 
  
 “Agreement” means this agreement between the Parties. 
  

 “Associate” means associated corporations as such term is defined at Section 256 of the Income Tax Act
(Canada), and the term “Associated” has a corresponding meaning. 
  
 “Board” means the board of directors of Peru Copper from time to time. 
  
 “Change of Control” means the occurrence of any one or more of the following events: 
  

	 	(a)	a consolidation, merger, amalgamation, arrangement or other reorganization or acquisition involving the Corporation or any of its Affiliates and another corporation or other entity,
as a result of which the holders of Common Shares prior to the completion of the transaction hold less than 50% of the outstanding shares of the successor corporation after completion of the transaction; 

  

	 	(b)	the sale, lease, exchange or other disposition, in a single transaction or a series of related transactions, of assets, rights or properties of the Corporation and/or any of its
Subsidiaries which have an aggregate book value greater than 50% of the book value of the assets, rights and properties of the Corporation and its Subsidiaries on a consolidated basis to any other person or entity, other than a disposition to a
wholly-owned subsidiary of the Corporation in the course of a reorganization of the assets of the Corporation and its Subsidiaries; 

  

	 	(c)	a resolution is adopted to wind-up, dissolve or liquidate the Corporation; 

  

	 	(d)	any person, entity or group of persons or entities acting jointly or in concert (an “Acquiror”) acquires or acquires control (including, without limitation, the right to
vote or direct the voting) of Voting Securities of the Corporation which, when added to the Voting Securities owned of record or beneficially by the Acquiror or which the Acquiror has the right to vote or in respect of which the Acquiror has the
right to direct the voting, would entitle the Acquiror and/or associates and/or affiliates of the Acquiror (as such terms are defined in the Act) to cast or to direct the casting of 20% or more of the votes attached to all of the Corporation’s
outstanding Voting Securities which may be cast to elect directors of the Corporation or the successor corporation (regardless of whether a meeting has been called to elect directors), other than in the case of an acquisition of Voting Securities,
or control over Voting Securities, of the Corporation by J. David Lowell, Catherine McLeod-Seltzer, David E. De Witt and/or Luis J. Baertl; 

  

	 	(e)	as a result of or in connection with: (A) a contested election of directors; or (B) a consolidation, merger, amalgamation, arrangement or other reorganization or acquisitions
involving the Corporation or any of its affiliates and another corporation or other entity, the nominees named in the most recent Management Information Circular of the Corporation for election to the Board shall not constitute a majority of the
Board; or 

  

	 	(f)	the Board adopts a resolution to the effect that a Change of Control as defined herein has occurred or is imminent. 

  

 - 2 - 

 For the purposes of the foregoing, “Voting Securities” means Common Shares and any other shares
entitled to vote for the election of directors and shall include any security, whether or not issued by the Corporation, which are not shares entitled to vote for the election of directors but are convertible into or exchangeable for shares which
are entitled to vote for the election of directors including any options or rights to purchase such shares or securities. 
  
 “Common Shares” means the common shares in the capital of the Corporation. 
  
 “Employment” means the employment of the Executive in connection with the Business and in accordance with the terms and conditions
of this Agreement. 
  
 “Party” means a party to this Agreement, and
“Parties” has a similar extended meaning. 
  
 “Permanent
Disability” means any physical or mental incapacity, disease or affliction which: 
  

	 	(a)	prevents the Executive from performing substantially all his obligations as an executive officer of Peru Copper; and 

  

	 	(b)	has existed for a continuous period of one hundred and eighty (180) days in any period of three hundred and sixty five (365) consecutive days. 

  
 “Person” includes any individual, partnership, joint venture, trust, unincorporated
organization or any other association, corporation, or any government or any department or agency thereof. 
  
 “Plan” means the share option plan to be adopted by Peru Copper Inc., as may be amended from time to time. 
  
 “Securities Act” means the Securities Act (British Columbia). 
  
 “Subsidiary” means a body corporate which is a subsidiary of the Corporation as defined in the Canada Business Corporations Act. 
  
 AGREEMENT TO EMPLOY 
  
 2. Peru Copper agrees to employ the Executive in connection with the Business on the terms
and conditions set out herein and the Executive agrees to accept employment on such terms. 
  
 TERM 
  
 3. The term of this
Agreement and the Employment shall be for an indefinite period, provided that: 
  

	 	(a)	Peru Copper may terminate this Agreement and the Employment at any time as set out in paragraphs 10 and 11 hereof; 

  

	 	(b)	the Executive may terminate this Agreement and the Employment at any time as set out in paragraph 12 hereof; 

  

 - 3 - 

	 	(c)	the Executive may terminate this Agreement and the Employment upon the occurrence of a Change of Control as set out in paragraphs 13(a) and 13(b) hereof; and

  

	 	(d)	this Agreement and the Employment are automatically terminated when the Executive dies. 

  
 DUTIES AND RESPONSIBILITIES 
  
 4. The Executive shall serve as Chief Financial Officer of Peru Copper and shall perform such duties and assume such responsibilities consonant with his position as an
executive of Peru Copper and further will perform such reasonable additional duties and responsibilities as the Board may require and assign to him including serving as a director or officer of Peru Copper or such other affiliates and associates of
Peru Copper at no additional compensation. The Executive shall report to the President and Chief Executive Officer of Peru Copper and the Board. Peru Copper agrees that it shall not relocate the Executive outside of the City of Lima, Peru without
the consent of the Executive. 
  
 CONFLICT OF INTEREST/DUTY OF LOYALTY

  
 5. The Executive agrees to devote all of his working time during the
Employment to the Business and shall not engage or have an interest in any other enterprise, occupation or profession, directly or indirectly, or become a principal, agent, director or officer of another company, firm or person, as applicable, which
will or may interfere with or conflict with the Executive’s duties and responsibilities hereunder without the written approval, not to be unreasonably withheld, of the Board. Peru Copper is aware that the Executive is the owner of Silver Llama
Andean Designs LLC and Silver Llama Andean Exports EIRL and it agrees that the Executive may continue to operate such businesses provided that the Executive shall not devote significant time and attention to the affairs of Silver Llama Andean
Designs LLC and Silver Llama Andean Exports EBRL. 
  
 CONFIDENTIALITY

  
 6. The Executive agrees to keep the affairs of the Business,
financial and otherwise, strictly confidential and shall not disclose the same to any person, company or firm, directly or indirectly, during or after his Employment by Peru Copper except as reasonably necessary to carry out his Employment duties or
as otherwise authorized in writing by the Board. The Executive agrees not to use such information, directly or indirectly, for his own interests, or any interests other than those of the Business, whether or not those interests conflict with the
interests with the interests of the Business, during or after his employment by Peru Copper. 
  

 - 4 - 

 REMUNERATION 
  

	7.    (a)    	The Executive shall be remunerated as follows during the term of this Agreement: 

  

	 	(i)	initial base salary of US$94,000 per annum payable monthly less any amount paid to the Executive pursuant to any other employment or consulting agreement or arrangement between the
Executive and the Corporation or any of its Affiliate, and to be reviewed annually by the Board but in any event shall not be less than the previous year’s base salary; 

  

	 	(ii)	an additional 5% of the Executive’s base salary to cover Arizona taxes that may be incurred by the Executive in connection with the Business; 

  

	 	(iii)	such bonuses as may be determined by the Compensation Committee of the Board from time to time, in its sole discretion, subject to the Compensation Committee establishing
performance milestones; 

  

	 	(iv)	all benefits generally provided to employees of Peru Copper effective as of the date of this Agreement, or such other benefits that may be made available to other senior officers of
Peru Copper from time to time on terms determined by the Board, and those benefits detailed in Schedule “A” appended hereto; and 

  

	 	(v)	four (4) weeks’ vacation annually. 

  

	       (b)    	Subject to section 7(a)(ii) above, all payments required to be made under this Agreement are subject to statutory deductions, as applicable, including for income tax, Canada Pension
Plan and Employment Insurance coverage. 

  
 8. The Executive shall
be granted options to acquire 300,000 Common Shares at an exercise price of US$1.40, such options to be exercisable until the date which is 5 years following the date hereof. The options shall vest as to 20% on the date that is six months following
the date hereof and as to 20% on each of the dates that is 12 months, 18 months, 24 months and 30 months following the date hereof. The options shall be subject to the terms of the Plan. The Executive shall also be entitled to be granted options to
acquire Common Shares of the Corporation under the Plan in such amounts as are determined by the Compensation Committee of the Board from time to time. 
  
 REIMBURSEMENT OF EXPENSES 
  
 9. All the Executive’s reasonable expenses related to the Business (including all costs in connection with visa and work permits, as required) will be reimbursed
upon the submittal by the Executive of an expense report with appropriate supporting documentation to Peru Copper. 
  
 TERMINATION 
  
 10. This Agreement and the Employment may be terminated by Peru Copper summarily and without notice, or payment in lieu of notice, severance payments, benefits, damages or any sums whatsoever, in the event that there
is just cause for termination of the Executive’s Employment at 

  

 - 5 - 

 
common law. Notwithstanding the generality of the foregoing, just cause shall be deemed to exist in the event the Executive: 
  

	 	(a)	engages in conduct which is detrimental to the reputation of the Corporation or any of its Affiliates in any material respect; 

  

	 	(b)	has committed an act of fraud or material dishonesty in connection with his Employment or the Business; 

  

	 	(c)	is subject to a penalty or sanction imposed by a securities regulatory authority following the completion of a proceeding initiated by such authority; or 

 

	 	(d)	materially breaches his duties under this Agreement. 

  
 11. Subject to paragraph 3: 
  

	 	(a)	This Agreement and the Employment may be terminated on notice by Peru Copper to the Executive without cause, whether or not a Change of Control has occurred, upon payment to the
Executive at termination of 36 months’ base salary plus accrued but unused vacation and provision of the benefits described under subparagraph 7(a)(iii) (except for insured or other benefits which cannot be extended to a person not actively
employed by Peru Copper) for the earlier of 36 months or until the Executive obtains comparable benefits from another source. Any stock options granted by Peru Copper, which are vested on the date of termination, shall remain exercisable until the
earlier of (i) the termination date of such option or (ii) the date which is 36 months from such termination, notwithstanding the provisions of any agreement or Plan. Any stock options granted by Peru Copper, which are not vested on the date of
termination shall vest on such date and such stock options shall remain exercisable until the earlier of (i) the termination date of such option or (ii) the date which is 36 months from such termination, notwithstanding the provisions of any
agreement or Plan. 

  

	 	(b)	The parties agree that any payment to the Executive pursuant to paragraph 1l(a) is not intended and will not be of the nature of a penalty and shall be considered by the parties as
liquidated damages. 

  

	 	(c)	The parties further agree that, notwithstanding anything to the contrary contained in this Agreement, the Executive shall not be required or called upon to mitigate in any manner
whatsoever such liquidated damages. 

  

	 	(d)	The Executive may, at his option, require Peru Copper to pay all or a part of the compensation set out in 1l(a) above into a retirement compensation arrangement or comparable
retirement fund, provided that such request shall be permissible under applicable laws and shall be at no expense to Peru Copper. 

  
 12. Subject to Section 13, this Agreement and the Employment may be terminated on notice by the Executive to Peru Copper by giving 90 days’ written notice. Upon
termination by the Executive, any options held by the Executive, which have vested as of the date of such 

  

 - 6 - 

 
termination, shall remain exercisable for a period of 30 days after the termination date, or such longer period as the Board may determine. Any unvested
options held by the Executive as at the date of termination shall be cancelled, unless the Board determines otherwise. 
  
 CHANGE OF CONTROL 
  

					
	13.	 	(a)	 	If at any time during the term of this Agreement there is a Change of Control of Peru Copper, then the Executive shall have one hundred and twenty (120) days from the date of such Change of
Control to elect in writing whether or not he wishes to terminate this Agreement and the Employment, after which time he shall be deemed to have elected not to do so. If the Executive elects to terminate this Agreement and the Employment under this
paragraph, then he shall give written notice of his election to the Corporation and this Agreement and the Employment shall terminate 30 days from the day of such notice. The Executive shall then be entitled to receive from Peru Copper the
compensation set out in paragraph 11(a) above.
			
	 	 	(b)	 	If at any time during the term of this Agreement there is a Change of Control and within six (6) months of such Change of Control there is a material decrease in any of the duties, powers,
rights, discretion, salary or benefits of the Executive as they exist immediately prior to the Change of Control, the Executive may elect to terminate this Agreement and his Employment and shall then be entitled to receive from Peru Copper the
compensation set out in paragraph 11(a) above.

  
 DISABILITY 

 

					
	14.	 	(a)	 	If the Executive suffers a Permanent Disability, Peru Copper may replace the Executive either on a temporary or permanent basis without terminating the Employment of the Executive. The
Executive will be entitled to such disability and other benefits as may be provided for pursuant to the applicable benefit plans or programs.
			
	 	 	(b)	 	If the Executive recovers from the Permanent Disability, Peru Copper may offer to the Executive the position that the Executive formerly occupied prior to the Executive’s Permanent
Disability or other comparable other executive position. If no comparable position is offered by Peru Copper to the Executive, the Executive shall be entitled to the compensation set out in paragraph 11(a).
			
	 	 	(c)	 	Notwithstanding the foregoing, in the event the Executive continues to suffer from a Permanent Disability for in excess of 24 months, Peru Copper may, at its option, terminate the
Executive’s employment, provided that:

  

	 	(i)	such termination does not and will not prejudice the Executive’s eligibility for disability and other group insured benefits; and 

  

	 	(ii)	Peru Copper provides the Executive forthwith the compensation set out in paragraph 11 (a). 

  

 - 7 - 

 SEVERABILITY 
  
 15. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision, and any invalid provision
will be severable from this Agreement. 
  
 GOVERNING LAW 

 
 16. This Agreement is governed by and is to be considered, interpreted and enforced in
accordance with the laws of British Columbia. 
  
 HEIRS/SUCCESSORS BOUND

  
 17. This Agreement inures to the benefit of and is binding upon the
parties and their respective heirs, administrators, executors, successors and assigns as appropriate. 
  
 ASSIGNMENT 
  
 18. This Agreement
is not assignable by either party without the consent in writing of the other party, which consent may be unreasonably withheld, provided that Peru Copper shall be entitled to assign this Agreement, without the Executive’s consent to an
Affiliate of Peru Copper provided the Affiliate offers comparable employment and there is not material prejudice, including diminution of responsibilities, to the Executive by reason of such assignment 
  
 ENTIRE AGREEMENT 
  
 19. As of its date execution, this Agreement supersedes all prior agreements, whether written or oral, express or implied, between the
parties, and constitutes the entire agreement between the parties. The parties agree that there are no other collateral agreements or understandings between them except as set out in this Agreement. 
  
 AMENDMENT 
  
 20. This Agreement may be amended only in writing signed by the parties and witnessed. 
  
 HEADINGS 
  
 21. All headings in this Agreement are for convenience only and shall not be used for the interpretation of this Agreement. 
  
 RECOURSE ON BREACH 
  
 22. The Executive acknowledge that damages would be an insufficient remedy for a breach of
this Agreement and agrees that Peru Copper may apply for and obtain any relief available to it in a court of law or equity, including injunctive relief, to restrain breach or threat of breach of this Agreement or to enforce the covenants contained
herein in addition to rights Peru Copper 

  

 - 8 - 

 
may have to damages arising from said breach or threat of breach. The Executive hereby waives any defences he may or can have to strict enforcement of this
Agreement by Peru Copper. 
  
 CONFIDENTIALITY OF AGREEMENT

  
 23. The parties agree that this Agreement is confidential and shall
remain so. The parties agree that this Agreement or the contents hereof shall not be divulged by any party without the consent in writing of the other party, with the exception of disclosure to personal advisors, disclosure that may be required by
the laws of any jurisdiction in which the Business is conducted or may be conducted in future and disclosure pursuant to applicable securities laws and the rules and policies of any stock exchange on which Peru Copper securities are traded.

  
 INDEPENDENT LEGAL ADVICE 
  
 24. The Executive agrees that he has had independent legal advice or the opportunity to
receive same in connection with the execution of this Agreement and has read this Agreement in its entirety, understands its contents and is signing this Agreement freely and voluntarily, without duress or undue influence from any party. 

 
 NOTICE 
  
 25. Any notice required or permitted to be made or given under this Agreement to either party shall be in writing and shall be sufficiently
given if delivered personally, or if sent by prepaid registered mail to the intended recipient of such notice at: 
  

	 	(a)	in the case of Peru Copper, to: 

  
 Peru Copper Inc. 
 777 Dunsmuir Street 
 Suite 1600 
 Vancouver, British Columbia V7Y 1K4 
  
 Attention: Chairman of the Audit Committee 
  
 with a copy (which shall not constitute notice hereunder) to: 
  
 Cassels Brock & Blackwell LLP 
 2100 Scotia Plaza 
 40 King Street West 
 Toronto, Ontario M5H 3C2 
  
 Attention: Paul M. Stein 
  

	 	(b)	in the case of the Executive, to: 

  
 Thomas Findley 
 1110 Moonlit Place 
 Tucson, Arizona 85737 
  

 - 9 - 

 or at such other address as the party to whom such writing is to be given shall provide in writing to the party giving
the said notice. Any notice delivered to the party to whom it is addressed shall be deemed to have been given and received on the day it is so delivered or, if such day is not a business day, then on the next business day following any such day. Any
notice mailed shall be deemed to have been given and received on the fifth business day following the date of mailing. 
  
 SURVIVAL 
  
 26. Paragraphs 6, 22 and 23 shall survive the termination of this Agreement and the Employment and shall continue in full force and effect according to their terms. 
  
 IN WITNESS WHEREOF the parties hereto have executed these presents under
their respective seals and hands of their proper offices authorized in that behalf, as applicable. 
  

											
	 The Corporate Seal of PERU COPPER INC. was hereunto affixed in the presence
 of:
	 	 )
 )
 )
	 	 	 	 
	

	 	 )
 )
	 	 	 	 
	 Authorized Signatory
	 	 )
	 	 	 	 
	 	 	 )
 )
	 	 	 	 c/s

	 Authorized Signatory
	 	 )
	 	 	 	 
				
	 SIGNED in the presence of:
	 	 )
	 	 	 	 
	 	 	 )
	 	 	 	 
	

	 	 )
 )
	 	 	 	

	 Witness
	 	 Elsa Rosario Aguirre
	 	 )
	 	 	 	THOMAS FINDLEY

  

 - 10 - 

  
 SCHEDULE A

  
 Benefits effective as at the date of this Agreement. 
  
 Transportation 
  
 Peru Copper will provide the Executive with transportation on business days in connection with work related travel while in Peru.

  
 Travel 
  
 Peru Copper will provide the Executive with three (3) round-trip economy fare airline
tickets per calendar year in connection with personal trips between Tucson, Arizona and Lima, Peru. 
  
 Professional Associations 
  
 Peru
Copper shall pay, or reimburse the Executive, for fees to maintain the Executive’s memberships in applicable professional associations approved by the Board or the Compensation Committee of the Board from time to time.Stock Option Plan

 Exhibit 10.12 
  
 PERU COPPER INC. 
  
 SHARE OPTION PLAN 
  
 ARTICLE 1 
  
 GENERAL 
  

	1.1	Purpose 

  
 The purpose of this Plan is to advance the interests of the Corporation by (i) providing Eligible Persons with additional incentive; (ii) encouraging
stock ownership by Eligible Persons; (iii) increasing the proprietary interest of Eligible Persons in the success of the Corporation; (iv) encouraging Eligible Persons to remain with the Corporation or its Affiliates; and (v) attracting new
employees, officers, directors and Consultants to the Corporation or its Affiliates. 
  

	1.2	Administration 

  

	 	(a)	This Plan will be administered by the Board provided that the Board may delegate the administration of all or any part this Plan to the Compensation Committee of the Board other
than the powers of the Board under Sections 3.1, 3.3 and 3.5 of this Plan. If the Board has delegated the administration of all or part of this Plan to the Compensation Committee, references to the term “Board” will be deemed to be
references to the Compensation Committee as the context requires. 

  

	 	(b)	Subject to the limitations of this Plan, the Board has the authority: (i) to grant Options to purchase Shares to Eligible Persons; (ii) to determine the terms, including the
limitations, restrictions and conditions, if any, upon such grants; (iii) to interpret this Plan and to adopt, amend and rescind such administrative guidelines and other rules and Regulations relating to this Plan as it may from time to time deem
advisable, subject to required prior approval by any applicable regulatory authority; and (iv) to make all other determinations and to take all other actions in connection with the implementation and administration of this Plan as it may deem
necessary or advisable. The Board’s guidelines, rules, Regulations, interpretations and determinations will be conclusive and binding upon all parties. 

  

	1.3	Interpretation 

  
 For the purposes of this Plan, the following terms will have the following meanings unless otherwise defined elsewhere in this Plan: 
  

	 	A.	“Affiliate” means any corporation that is an affiliate of the Corporation as defined in the Securities Act (Ontario); 

  

	 	B.	“Affiliated Entity” means a person or corporation which is an affiliated entity of the Corporation as defined in Rule 45-105 to the Securities Act (Ontario);

  

	 	C.	 “Associate”, where used to indicate a relationship with any person or company, means: (i) any company of which such person or company beneficially
owns, directly or indirectly, voting securities carrying more than 10 per cent of the voting rights attached to all voting securities of the company for the time being outstanding; (ii) any partner of that person or company; (iii) any trust or
estate in which such person or company has a substantial beneficial interest or as to which such person or company serves as trustee or in a similar capacity; (iv) any relative of that person who resides in the same home as that person; (v) any
person who resides in the same home as that person and to whom that person is married, or any person of the opposite sex or the same sex who resides in the same home as that person and with whom that person is living in a conjugal relationship
outside 

  

	 	 
marriage; or (vi) any relative of a person mentioned in clause (v) who has the same home as that person; 

  

	 	D.	“Board” means the Board of Directors of the Corporation or a committee thereof appointed in accordance with the Plan; 

  

	 	E.	“Change of Control” means the occurrence of any one or more of the following events: 

  

	 	(i)	a consolidation, merger, amalgamation, arrangement or other reorganization or acquisition involving the Corporation or any of its Affiliates and another corporation or other entity,
as a result of which the holders of Shares prior to the completion of the transaction hold less than 50% of the outstanding shares of the successor corporation after completion of the transaction; 

  

	 	(ii)	the sale, lease, exchange or other disposition, in a single transaction or a series of related transactions, of assets, rights or properties of the Corporation and/or any of its
Subsidiaries which have an aggregate book value greater than 50% of the book value of the assets, rights and properties of the Corporation and its Subsidiaries on a consolidated basis to any other person or entity, other than a disposition to a
wholly-owned subsidiary of the Corporation in the course of a reorganization of the assets of the Corporation and its subsidiaries; 

  

	 	(iii)	a resolution is adopted to wind-up, dissolve or liquidate the Corporation; 

  

	 	(iv)	any person, entity or group of persons or entities acting jointly or in concert (an “Acquiror”) acquires or acquires control (including, without limitation, the right to
vote or direct the voting) of Voting Securities of the Corporation which, when added to the Voting Securities owned of record or beneficially by the Acquiror or which the Acquiror has the right to vote or in respect of which the Acquiror has the
right to direct the voting, would entitle the Acquiror and/or associates and/or affiliates of the Acquiror (as such terms are defined in the Act) to cast or to direct the casting of 20% or more of the votes attached to all of the Corporation’s
outstanding Voting Securities which may be cast to elect directors of the Corporation or the successor corporation (regardless of whether a meeting has been called to elect directors), other than in the case of an acquisition of Voting Securities,
or control over Voting Securities, of the Corporation by J. David Lowell, Catherine McLeod-Seltzer, David E. De Witt and/or Luis J, Baertl; 

  

	 	(v)	as a result of or in connection with: (A) a contested election of directors, or; (B) a consolidation, merger, amalgamation, arrangement or other reorganization or acquisitions
involving the Corporation or any of its affiliates and another corporation or other entity, the nominees named in the most recent Management Information Circular of the Corporation for election to the Board shall not constitute a majority of the
Board; or 

  

	 	(vi)	the Board adopts a resolution to the effect that a Change of Control as defined herein has occurred or is imminent. 

  
 For the purposes of the foregoing, “Voting Securities” means
Shares and any other shares entitled to vote for the election of directors and shall include any security, whether or not issued by the Corporation, which are not shares entitled to vote for the election of directors but are convertible into or
exchangeable for shares which are entitled to vote for the election of directors including any options or rights to purchase such shares or securities; 
  

	 	F.	 “Consultants” means individuals, other than employees and officers and directors of the Corporation or an Affiliated Entity that (i) are engaged to
provide on a bona fide basis 

  

 - 2 - 

	 	 
consulting, technical, management or other services to the Corporation or any Affiliated Entity under a written contract between the Corporation or the
Affiliated Entity and the individual or a company of which the individual consultant is an employee or shareholder or a partnership of which the individual consultant is an employee or partner and (ii) in the reasonable opinion of the Corporation,
spend or will spend a significant amount of time and attention on the affairs and business of the Corporation or an Affiliated Entity; 

  

	 	G.	“Corporation” means Peru Copper Inc. and includes any successor corporation thereto; 

  

	 	H.	“Eligible Person” means, subject to the Regulations and to all applicable law, any employee, officer, director, or Consultant of (i) the Corporation or (ii) any
Affiliated Entity (and includes any such person who is on a leave of absence authorized by the Board or the Board of Directors of any Affiliated Entity); 

  

	 	I.	“Holding Company” means a holding company wholly owned and controlled by an Eligible Person; 

  

	 	J.	“Insider” means: (i) an insider as defined in the Securities Act (Ontario) other than a person who is an Insider solely by virtue of being a director or
senior officer of a Subsidiary of the Corporation; and (ii) an Associate of any person who is an insider by virtue of (i); 

  

	 	K.	“Option” means a right granted to an Eligible Person to purchase Shares pursuant to the terms of this Plan; 

  

	 	L.	“Participant” means an Eligible Person to whom or to whose RRSP or to whose Holding Company an Option has been granted; 

  

	 	M.	“Plan” means the Peru Copper Inc. Share Option Plan, as same may be amended from time to time; 

  

	 	N.	“Regulations” means the regulations made pursuant to this Plan, as same may be amended from time to time; 

  

	 	O.	“Retirement” in respect of a Participant means the Participant ceasing to be an employee, officer, director or Consultant of the Corporation or an Affiliated Entity
after attaining a stipulated age in accordance with the Corporation’s normal retirement policy or earlier with the Corporation’s consent; 

  

	 	P.	“Retirement Date” means the date that a Participant ceases to be an employee, officer, director or Consultant of the Corporation or an Affiliated Entity due to the
Retirement of the Participant; 

  

	 	Q.	“RRSP” means a registered retirement savings plan; 

  

	 	R.	“Shares” means the common shares in the capital of the Corporation; 

  

	 	S.	“Subsidiary means a corporation which is a subsidiary of the Corporation as defined under the Securities Act (Ontario); 

  

	 	T.	 “Termination” means: (i) in the case of an employee, the termination of the employment of the employee with or without cause by the Corporation or
an Affiliated Entity or cessation of employment of the employee with the Corporation or an Affiliated Entity as a result of resignation or otherwise other than the Retirement of the employee; (ii) in the case of an officer or director, the removal
of or failure to re-elect or re-appoint the individual as an officer or director of the Corporation or an Affiliated Entity (other than 

  

 - 3 - 

	 	 
through the Retirement of an officer); and (iii) in the case of a Consultant, the termination of the services of a Consultant by the Corporation or an
Affiliated Entity (other than through the Retirement of a Consultant); 

  

	 	U.	“Termination Date” means the date on which a Participant ceases to be an Eligible Person due to the Termination of the Participant; 

  

	 	V.	“Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of security interest or other
arrangement by which possession, legal title or beneficial ownership passes from one person to another, or to the same person in a different capacity, whether or not voluntary and whether or not for value, and any agreement to effect any of the
foregoing; and 

  

	 	W.	“TSX” means the Toronto Stock Exchange. 

  
 Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine. 
  
 This Plan is to be governed by and interpreted in accordance with the laws of
the Province of Ontario. 
  

	1.4	Shares Reserved under the Share Option Plan 

  

	 	(a)	Options may be granted in respect of authorized and unissued Shares provided that, subject to increase by the Board, the receipt of the approval of the TSX, and/or such other
exchange, upon which the Shares may then be listed and posted for trading, if necessary, and the approval of shareholders of the Corporation, the maximum aggregate number of Shares reserved by the Corporation for issuance and which may be purchased
upon the exercise of all Options granted under this Plan shall not exceed 8,955,357 Shares. Any Shares subject to an Option which has been granted under the Plan and which has been subsequently cancelled or terminated in accordance with the terms of
the Plan, without having been exercised, will again be available under the Plan. 

  

	 	(b)	The aggregate number of Shares reserved for issuance pursuant to Options granted to Insiders shall not exceed 10% of the total number of Shares then outstanding. The aggregate
number of Shares issued to Insiders pursuant to the exercise of Options, within a one-year period, shall not exceed 10% of the total number of Shares then outstanding. The aggregate number of Shares issued to any one Insider and such Insider’s
Associates pursuant to the exercise of Options, within a one-year period, shall not exceed 5% of the total number of Shares then outstanding. The aggregate number of Shares reserved for issuance to any one person pursuant to the grant of Options
shall not exceed 5% of the total number of Shares then outstanding. For purposes of this Section 1.4, the number of Shares then outstanding shall mean the number of Shares outstanding on a non-diluted basis immediately prior to the proposed grant of
applicable Options or the exercise of the applicable Options. 

  
 ARTICLE 2 
  
 OPTION
GRANTS AND TERMS OF OPTIONS 
  

	2.1	Grants 

  
 Subject to this Plan, the Board will have the authority to determine the limitations, restrictions and conditions, if any, in addition to those set out in
this Plan, applicable to the exercise of an Option, including, without limitation, the nature and duration of the restrictions, if any, to be imposed upon the sale or other disposition of Shares acquired upon exercise of the Option, and the nature
of the events, if any, and the duration of the period in which any Participant’s rights in respect of Shares acquired upon exercise 

  

 - 4 - 

 
of an Option may be forfeited. An Eligible Person, an Eligible Person’s RRSP and an Eligible Person’s Holding Company may receive Options on more
than one occasion under this Plan and may receive separate Options on any one occasion. 
  

	2.2	Exercise of Options 

  

	 	(a)	Options granted must be exercised no later than 10 years after the date of grant or such lesser period as the applicable grant or Regulations may require. 

 

	 	(b)	The Board may determine when any Option will become exercisable and may determine that the Option will be exercisable in installments or pursuant to a vesting schedule.

  

	 	(c)	No fractional Shares may be issued. 

  

	 	(d)	A minimum of 100 Shares must be purchased by a Participant upon exercise of Options at any one time, except where the remainder of Shares available for purchase pursuant to Options
granted to such Participant totals less than 100. 

  

	2.3	Option Price 

  
 The Board will establish the exercise price of an Option at the time each Option is granted provided that such price shall not be less than the closing
price of the Shares on the TSX {or, if such Shares are not then listed and posted for trading on the TSX, on such other stock exchange on which the Shares are listed and posted for trading as may be selected by the Board) on the last business day
immediately preceding the date of grant of such Option. If there is no trading on that date, the exercise price shall not be less than the weighted average of the bid and ask prices on the five consecutive trading days preceding the date of the
grant. 
  

	2.4	Grant to Participant’s RRSP or Holding Company 

  
 Upon written notice from an Eligible Person, any Option that might otherwise be granted to that Eligible Person, will be granted, in whole or in part, to
an RRSP or a Holding Company established by and for the sole benefit of the Eligible Person. 
  

	2.5	Termination, Retirement or Death 

  

	 	(a)	 In the event of the Termination or Retirement of a Participant, each Option held by the Participant; the Participant’s RRSP or the Participant’s Holding
Company will cease to be exercisable within a period of 30 days after the Termination Date or Retirement Date, as the case may be, or such longer period as determined by the Board. For greater certainty, such determination of a longer period may be
made at any time subsequent to the date of grant of the Options, provided that no Option shall remain outstanding for any period which exceeds the earlier of: (i) the expiry date of such Option; and (ii) 12 months following the Termination Date or
Retirement Date, as the case may be, of a non-executive director of the Corporation or an Affiliate, or 36 months following the Termination Date or Retirement Date, as the case may be, in the case of all other Participants. The Board may delegate
authority to the Chief Executive Officer and/or the Chief Financial Officer of the Corporation to make any determination with respect to the expiry or termination date of Options held by any departing Participant, other than a departing
non-executive director. If any portion of an Option has not vested on the Termination Date or Retirement Date, as the case may be, the Participant, the Participant’s RRSP or the Participant’s Holding Company may not, after the Termination
Date or Retirement Date, as the case may be, exercise such portion of the Option which has not vested, provided that the Board may determine at any time, including for greater certainty at any time subsequent to the date of grant of the Option, that
such portion of the Option vests automatically or pursuant to a vesting schedule determined by the Board. The Board may delegate authority to the Chief Executive Officer and/or the Chief 

  

 - 5 - 

	 	 
Financial Officer to make any determination with respect to vesting of Options or any portion thereof held by any departing Participant. Without limitation,
and for greater certainty only, this subsection (a) will apply regardless of whether the Participant was dismissed with or without cause and regardless of whether the Participant received compensation in respect of dismissal or was entitled to a
period of notice of termination which would otherwise have permitted a greater portion of the Option to vest. 

  

	 	(b)	If a Participant dies, the legal representatives of the Participant may exercise the Options held by the Participant, the Participant’s RRSP and/or the Participant’s
Holding Company, as the case may be, within a period after the date of the Participant’s death as determined by the Board, for greater certainty such determination may be made at any time subsequent to the date of grant of the Options, provided
that no Option shall remain outstanding for any period which exceeds the earlier of (i) the expiry date of such Option; and (ii) 12 months following the date of death of the Participant, but only to the extent the Options were by their terms
exercisable on the date of death. The Board may determine at any time, including for greater certainty at any time subsequent to the date of grant of the Options, that such portion of the Option vests automatically or pursuant to a vesting schedule
determined by the Board. The Board may delegate authority to the Chief Executive Officer and/or the Chief Financial Officer to make any determination with respect to the expiry or termination date of Options or vesting of Options or any portion
thereof held by any deceased Participant. If the legal representative of a Participant who has died exercises the Option of the Participant or the Participant’s RRSP and/or the Participant’s Holding Company, as the case may be, in
accordance with the terms of this Plan, the Corporation will have no obligation to issue the Shares until evidence satisfactory to the Corporation has been provided by the legal representative that the legal representative is entitled to act on
behalf of the Participant, the Participant’s RRSP and/or the Participant’s Holding Company to purchase the Shares under this Plan. 

  

	2.6	Option Agreements 

  
 Each Option must be confirmed, and will be governed, by an agreement (an “Option Agreement”) in the form of Schedule “A” (as the same
may be amended from time to time by the Regulations) signed by the Corporation and the Participant or an RRSP of which the Participant is an annuitant or the Participant’s Holding Company. 
  

	2.7	Payment of Option Price 

  
 The exercise price of each Share purchased under an Option must be paid in full by bank draft, cheque or in such other manner as may be acceptable to the
Chief Financial Officer at the time of exercise, and upon receipt of payment in full, but subject to the terms of this Plan, the number of Shares in respect of which the Option is exercised will be duly issued as fully paid and non-assessable. Share
certificates representing the number of Shares in respect of which the Option has been exercised will be issued only upon payment in full of the relevant exercise price to the Corporation. 
  

	2.8	Acceleration on Change of Control 

  
 In the event of a Change of Control, all Options outstanding shall be immediately exercisable, notwithstanding any determination of the Board pursuant to
Section 2.2 hereof, if applicable. 
  

	2.9	Amendment of Option Terms 

  
 Subject to the prior approval of any applicable regulatory authorities (as required) and the consent of the Participant affected thereby, the Board may
amend or modify any outstanding Option in any manner to the extent that the Board would have had the authority to initially grant the Option as so modified or amended, including without limitation, to change the date or dates as of which, or the
price at which, an Option becomes exercisable. 
  

 - 6 - 

 ARTICLE 3 
  

MISCELLANEOUS 
  

	3.1	Right to Terminate Options on Sale of Corporation 

  
 NOTWITHSTANDING ANY OTHER PROVISION OF THIS PLAN, IF THE BOARD AT ANY TIME BY RESOLUTION DECLARES IT ADVISABLE TO DO SO IN CONNECTION WITH ANY PROPOSED
SALE OR CONVEYANCE OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY AND ASSETS OF THE CORPORATION OR ANY PROPOSED MERGER, CONSOLIDATION, AMALGAMATION OR OFFER TO ACQUIRE ALL OF THE OUTSTANDING SHARES (COLLECTIVELY, THE “PROPOSED TRANSACTION”),
THE CORPORATION MAY GIVE WRITTEN NOTICE TO ALL PARTICIPANTS ADVISING THAT THEIR RESPECTIVE OPTIONS, INCLUDING OPTIONS HELD BY THEIR RRSP’S AND/OR HOLDING COMPANIES, MAY BE EXERCISED ONLY WITHIN 30 DAYS AFTER THE DATE OF THE NOTICE AND NOT
THEREAFTER, AND THAT ALL RIGHTS OF THE PARTICIPANTS, THEIR RRSP’S AND/OR HOLDING COMPANIES UNDER ANY OPTIONS NOT EXERCISED WILL TERMINATE AT THE EXPIRATION OF THE 30-DAY PERIOD, PROVIDED THAT THE PROPOSED TRANSACTION IS COMPLETED WITHIN 180
DAYS AFTER THE DATE OF THE NOTICE. IF THE PROPOSED TRANSACTION IS NOT COMPLETED WITHIN THE 180-DAY PERIOD, NO RIGHT UNDER ANY OPTION WILL BE AFFECTED BY THE NOTICE, EXCEPT THAT THE OPTION MAY NOT BE EXERCISED BETWEEN THE DATE OF EXPIRATION OF THE
30-DAY PERIOD AND THE DAY AFTER THE EXPIRATION OF THE 180-DAY PERIOD. 
  

	3.2	Prohibition on Transfer of Options 

  
 OPTIONS ARE PERSONAL TO EACH PARTICIPANT. NO PARTICIPANT OR RRSP OR HOLDING COMPANY OF A PARTICIPANT MAY DEAL WITH ANY OPTIONS OR ANY INTEREST IN THEM OR
TRANSFER ANY OPTIONS NOW OR HEREAFTER HELD BY THE ELIGIBLE PERSON OR RRSP OR HOLDING COMPANY. IF A PARTICIPANT’S HOLDING COMPANY CEASES TO BE WHOLLY OWNED AND CONTROLLED BY THE PARTICIPANT, SUCH HOLDING COMPANY WILL BE DEEMED TO HAVE
TRANSFERRED ANY OPTIONS HELD BY IT TO THE PARTICIPANT. A PURPORTED TRANSFER OF ANY OPTIONS IN VIOLATION OF THE PLAN WILL NOT BE VALID AND THE CORPORATION WILL NOT ISSUE ANY SHARE UPON THE ATTEMPTED EXERCISE OF IMPROPERLY TRANSFERRED OPTIONS.

  

	3.3	Capital Adjustments 

  
 If there is any change in the outstanding Shares by reason of a stock dividend or split, recapitalization, consolidation, combination or exchange of
Shares, or other fundamental corporate change, the Board will make, subject to any prior approval required by relevant stock exchanges or other applicable regulatory authorities, if any, an appropriate substitution or adjustment in (i) the exercise
price of any unexercised Options under this Plan; (ii) the number or kind of Shares or other securities reserved for issuance pursuant to this Plan; and (iii) the number and kind of Shares subject to unexercised Options theretofore granted under
this Plan; provided, however, that no substitution or adjustment will obligate the Corporation to issue or sell fractional Shares. In the event of the reorganization of the Corporation or the amalgamation or consolidation of the Corporation with
another corporation, the Board may make such provision for the protection of the rights of Eligible Persons, Participants, their RRSP’s and their Holding Companies as the Board in its discretion deems appropriate. The determination of the
Board, as to any adjustment or as to there being no need for adjustment, will be final and binding on all parties. 
  

 - 7 - 

	3.4	Non-Exclusivity 

  
 Nothing contained herein will prevent the Board from adopting other or additional compensation arrangements for the benefit of any Eligible Person or
Participant, subject to any required regulatory or shareholder approval. 
  

	3.5	Amendment and Termination 

  

	 	(a)	The Board may amend, suspend or terminate this Plan or any portion thereof at any time in accordance with applicable legislation, and subject to any required regulatory or
shareholder approval. Subject to Section 3.1, no amendment, suspension or termination will alter or impair any Options under this Plan, or any rights pursuant thereto, granted previously to any Participant, the Participant’s RRSP or the
Participant’s Holding Company without the consent of that Participant. 

  

	 	(b)	If this Plan is terminated, the provisions of this Plan and any administrative guidelines, and other rules and Regulations adopted by the Board and in force at the time of this
Plan, will continue in effect as long as any Options under this Plan or any rights pursuant thereto remain outstanding. However, notwithstanding the termination of this Plan, the Board may make any amendments to the Plan or the Options it would be
entitled to make if this Plan were still in effect. 

  

	3.6	Compliance with Legislation 

  
 The Board may postpone or adjust any exercise of any Option or the issue of any Shares pursuant to this Plan as the Board in its discretion may deem
necessary in order to permit the Corporation to effect or maintain registration of this Plan or the Shares issuable pursuant thereto under the securities laws of any applicable jurisdiction, or to determine that the Shares and this Plan are exempt
from such registration. The Corporation is not obligated by any provision of this Plan or any grant hereunder to sell or issue Shares in violation of any applicable law. In addition, if the Shares are listed on a stock exchange, the Corporation will
have no obligation to issue any Shares pursuant to this Plan unless the Shares have been duly listed, upon official notice of issuance, on a stock exchange on which the Shares are listed for trading. 
  

	3.7	Effective Date 

  
 This Plan shall be effective on the 24th day of February, 2004. 
  

 - 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]