Document:

Exhibit 10.22

 

CONFIDENTIAL TREATMENT REQUESTED

 

INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND NOTED WITH “****”.

 

AN UNREDACTED VERSION OF THIS DOCUMENT HAS ALSO BEEN PROVIDED TO THE SECURITIES AND EXCHANGE COMMISSION.

 

AMENDMENT NO. 4 TO THE AGREEMENT CONCERNING CARDIOLITE® AND TECHNELITE® GENERATOR SUPPLY, PRICING AND REBATES

 

This Amendment No. 4 (“Amendment”) to the Agreement Concerning Cardiolite® and Technelite® Generator Supply, Pricing and Rebates dated as of February 1, 2008 (as amended, the “Agreement”) is made by and between Lantheus Medical Imaging, Inc., with its principal place of business at 331 Treble Cove Road, North Billerica, Massachusetts 01862 (“Medical Imaging”), and United Pharmacy Partners, Inc., with its principal place of business at 5400 Laurel Springs Parkway, Suite 405, Suwanee, GA 30024 (“UPPI”), and is effective as of March 1, 2011 (the “Amendment Effective Date”).

 

RECITALS

 

WHEREAS, Medical Imaging and UPPI are parties to the Agreement and desire to further amend the Agreement, as provided herein;

 

NOW, THEREFORE, in consideration of the premises and agreements set forth in this Amendment and intending to be legally bound, Medical Imaging and UPPI hereby agree as follows:

 

AMENDMENT

 

1.               Section I. - Section I. Defined Terms is amended by deleting such section in its entirety and replacing therewith the following:

 

“I.  Defined Terms

 

A.                      Capitalized terms not otherwise defined herein shall have the meanings specified in the Standard Cardiolite® Terms.

 

B.                        “Agreements” means collectively the Agreement, Committed Pharmacy Agreements, the Individual Pharmacy Agreements, and the Standard Cardiolite® Terms, as in effect from time to time.

 

C.                        “Committed Member” means a Member or Member Radiopharmacy Family which commits to purchase Committed Volumes pursuant to a Committed Pharmacy Agreement, as described in Exhibit 1.

 

D.                       “Committed Pharmacy Agreements” means the agreements for Committed

 

 

Volumes, as in effect from time to time, between Medical Imaging and a Member or Member Radiopharmacy Family.

 

E.                         “Committed Volumes” means the **** minimum volumes of **** mutually agreed to, and set forth in, a Committed Pharmacy Agreement between Medical Imaging and a Member or Member Radiopharmacy Family. Such **** minimum volumes shall be established for each Member or Member Radiopharmacy Family based on **** volumes for such Member or Member Radiopharmacy Family or volume estimates appropriate for the time frame in which such Member or Member Radiopharmacy Family is expected to be a Committed Member.

 

F.                         “Good Standing” means the status of having obtained and retained all federal, state and local licenses and other requirements necessary for the lawful conduct of business as a commercial radiopharmacy.

 

G.                        “Individual Pharmacy Agreements” means the Cardiolite® License and Supply Agreements between Medical Imaging and a Member or Member Radiopharmacy Family.

 

H.                       “Member” means a Member of UPPI in Good Standing.

 

I.                            “Member Radiopharmacy Family” means **** (****) or more commercially established radiopharmacies in Good Standing and which are directly or indirectly Controlled by or under common Control with the same Member.

 

J.                           “Quarter” means a calendar quarter.

 

K.                       “Technelite® Generator Purchase Price” means the purchase price for Technelite® Generators set forth in Exhibit 1, attached hereto, as such price may be modified from time to time.

 

L.                         “Technelite® Generators” means technetium Tc99m generators sold under the trademark Technelite®.

 

M.                    “Technelite® Generator Unshipped Curies” means the number of curies that are not shipped if a Technelite® Generator order, accepted by Medical Imaging, is not filled as ordered resulting in no shipment or a shipment of fewer curies than originally specified on the order.

 

N.                       “**** Sestamibi Product” means ****.

 

O.                       “Uncommitted Member” means a Member or Member Radiopharmacy Family which does not commit to purchase minimum volumes of **** or fails to purchase such volumes on a **** basis, as described in Exhibit 1.

 

2

 

2.               Section II. A.  Section II. A, “Pricing”, is amended by deleting such section in its entirety and replacing therewith the following:

 

“II.       Sestamibi Product Supply and Pricing

 

A.         Pricing. Pursuant to Section 2.11 of the Standard Cardiolite® Terms, the Parties hereby agree that the current Exhibit I of the Standard Cardiolite® Terms is hereby amended as set forth in Exhibit 1 hereto.”

 

3.               Section II. B.  Section II. B, “Good Faith Negotiations”, is deleted in its entirety and replacing therewith “Reserved”.

 

4.               Section II. D.  Section II. D, “Administrative Fee”, is amended by deleting such section in its entirety and replacing therewith the following:

 

“D.                             Administrative Fee.  Commencing as of ****, Medical Imaging shall pay to UPPI an Administrative Fee in the amount of **** percent (****%) of the aggregate dollars billed in the immediately preceding **** for Sestamibi Product and Technelite® Generators by Medical Imaging to Members pursuant to this Agreement, provided that for the first payment hereunder the Administrative Fee will be payable only in connection with the aggregate dollars billed in **** pursuant to this Agreement.  The Administrative Fee will be paid no later than **** days after the close of any given **** during the Term of the Agreement.”

 

5.               Section III. B.  Section III. B, “Purchase Price”, is amended by deleting such section in its entirety and replacing therewith the following:

 

“B.                              Purchase Price.  The Parties agree that each Member shall pay to Medical Imaging the Technelite® Generator Purchase Price as set forth in Exhibit 1 for Technelite® Generators and agree to the terms set forth on Exhibit 1.  Such payment is due and payable as set forth in Medical Imaging’s invoices.  The Members will be responsible for any and all federal, state, county or municipal sales or use tax, healthcare tax, excise, customs charges, duties or similar charges, or any other tax assessment (other than that assessed against Medical Imaging’s income), license, fee or other charge lawfully assessed or charged on the sale, transportation, or other disposition of Technelite® Generators.”

 

3

 

6.  Section V.  Section V. (A) “Term; Termination” is amended by deleting such section in its entirety and replacing therewith the following:

 

“1.       The term of this Agreement (“Term”) shall commence on the Effective Date and shall expire upon the earlier of (i) December 31, 2012, or (ii) termination of the Agreement pursuant to Section V(A)(2) below.

 

2.         Medical Imaging may terminate this Agreement at any time upon not less than sixty (60) days’ written notice to UPPI, effective on such date as may be specified in such notice. All accrued but unpaid amounts due to Medical Imaging shall survive any expiration or termination of this Agreement.”

 

7.               Exhibit 1.  Exhibit 1 is amended by deleting such exhibit in its entirety and replacing therewith Exhibit 1 attached hereto.

 

8.               General.  Except as specifically modified hereby, the terms and provisions of the Agreement remain in full force and effect and otherwise unmodified.  This Amendment shall be effective from and after the Amendment Effective Date and is governed by and construed in accordance with the laws of the State of New York, without giving effect to the conflict of laws provisions thereof.  The Agreement, as amended hereby, constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes any and all prior or contemporaneous agreements between the parties relating to the subject matter hereof (whether written or oral).  This Amendment may be executed in one or more counterparts, and by the different parties in separate counterparts, each of which when executed is deemed to be an original but all of which when taken together shall constitute one and the same agreement.

 

[Signature page follows.]

 

4

 

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their duly authorized officers as of the date first set forth above.

 

 

	
UNITED   PHARMACY PARTNERS, INC.
    	
 
    	
LANTHEUS MEDICAL   IMAGING, INC.
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Perry Polsinelli
    	
 
    	
By:   
    	
/s/   Donald R. Kiepert, Jr.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:   
    	
Perry   Polsinelli
    	
 
    	
Name:   
    	
Donald   R. Kiepert, Jr.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:   
    	
President/CEO
    	
 
    	
Title:   
    	
President &   CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:   
    	
March 8,   2011
    	
 
    	
Date:   
    	
March 9,   2011
    

 

5

 

Exhibit 1

 

NOTICE OF INCENTIVE PROGRAMS AND PRICING
 FOR SESTAMIBI PRODUCT AND TECHNELITE® GENERATORS

 

Lantheus Medical Imaging, Inc. (“Medical Imaging”) is pleased to make the following Program for Sestamibi Product and Technelite® Generators available to all Members (each, a “Member”) of United Pharmacy Partners, Inc. (“UPPI”).  All capitalized terms used but not otherwise defined herein will have the meanings set forth in Schedule A.  The terms of this notice are confidential and are subject to the confidentiality provisions of Section 5.11 of your Standard Cardiolite® Terms.

 

I  Committed Members

 

	
A.
    	
 
    	
From   **** through ****, each Committed Member shall pay Medical Imaging **** of   $**** for Cardiolite®.
    
	
 
    	
 
    	
 
    
	
B.
    	
 
    	
From   **** through ****, each Committed Member shall pay Medical Imaging **** of   $**** for Cardiolite®.
    
	
 
    	
 
    	
 
    
	
C.
    	
 
    	
From   **** through ****, each Committed Member shall pay Medical Imaging **** of   $**** for **** Sestamibi Product.
    
	
 
    	
 
    	
 
    
	
D.
    	
 
    	
From   **** through ****, each Committed Member shall pay Medical Imaging **** of   $**** for **** Sestamibi Product.
    
	
 
    	
 
    	
 
    
	
E.
    	
 
    	
TechneLite®   Generator Purchase Price for Committed Members effective as of **** will be   as detailed in the pricing schedule attached hereto as Exhibit A1.   Subject to the terms hereof, price increases on **** will be limited to no   more than ****% for Committed Members.
    
	
 
    	
 
    	
 
    
	
F.
    	
 
    	
Pricing   for Committed Members includes **** (****) vial sets per TechneLite®   Generator. Medical Imaging will also use commercially reasonable efforts to   provide a **** for Committed Members.
    
	
 
    	
 
    	
 
    
	
G.
    	
 
    	
If   a Committed Member fails to satisfy the Committed Volumes for any **** during   the Term of the Agreement, Medical Imaging shall have the right to move such   Member to the Uncommitted Member pricing effective as of **** following the   end of such ****. In calculating the **** purchases of TechneLite®   Generators, Medical Imaging will take into consideration the total number of   curies purchased plus the number of Technelite® Generator Unshipped Curies.   The start date for Committed Member pricing and measuring Committed Volumes   will be set forth in the Committed Pharmacy Agreement for each Committed   Member and shall be consistent with the orders for such Committed Volumes. In   no event will the Committed Member pricing be available prior to the   effective date of the Committed Pharmacy Agreement for such Committed Member.   Should an existing Member or new Member wish to become a Committed Member   after the Effective Date, Medical Imaging will establish a Committed Volume   based on **** volumes for such Member or volume estimates 
    

 

6

 

	
 
    	
 
    	
appropriate   for the time frame in which such Member is expected to be a Committed Member   for purposes of negotiating a Committed Pharmacy Agreement with such Member.
    
	
 
    	
 
    	
 
    
	
H.
    	
 
    	
If   at any time the aggregate Committed Volumes of the Committed Members is less   than **** of **** per **** or **** **** of **** per ****, the parties shall   negotiate in good faith modifications to the Agreements.
    
	
 
    	
 
    	
 
    
	
I.
    	
 
    	
If   at any time the aggregate purchases made by Committed Members in a **** are   more than **** of **** or **** **** of ****, the parties shall negotiate in   good faith modifications to the Agreements.
    

 

II  Uncommitted Members

 

	
A.
    	
 
    	
Current   pricing for each Uncommitted Member will **** until ****.
    
	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Each   Uncommitted Member shall pay Medical Imaging a **** of $**** for Cardiolite®   effective ****.
    
	
 
    	
 
    	
 
    
	
C.
    	
 
    	
TechneLite®   Generator Purchase Price for Uncommitted Members effective **** will be as   detailed in the pricing schedule attached hereto as Exhibit A2. Medical   Imaging reserves the right to change such pricing for Uncommitted Members upon   **** (****) days prior written notice.
    

 

III  Other Terms

 

	
A.
    	
 
    	
The   terms of the existing Exhibit I of the Standard Cardiolite® Terms are   being modified as set forth herein. All references to Exhibit I to the   Standard Cardiolite® Terms will be understood to reference and incorporate   the terms contained herein. For purposes of clarity, the Parties acknowledge   and agree that all related rebate or incentive programs are no longer   applicable.
    
	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Each   Member shall, during the Term, pay an amount to Medical Imaging equal to the   then-effective price for Sestamibi Product and the then-effective Technelite®   Generator Purchase Price for purchases of Technelite® Generators delivered   and invoiced to it by Medical Imaging. In the event that Medical Imaging is required   to make a substitution on an accepted order for Technelite® Generators and   such substitution would result in the shipment of one or more Technelite®   Generators with fewer curies than originally ordered by such Member, then   Medical Imaging will make an appropriate adjustment to the order for such   Technelite® Generators to reflect the actual number of curies shipped.
    
	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Members   will be required to provide Medical Imaging with the Required Monthly Vial   and Unit Dose Report for **** (as described in   Section 2.07(b)(i) of the Standard Cardiolite® Terms and   Conditions).
    

 

7

 

	
D.
    	
 
    	
Any   and all terms and conditions, if any, contained within the Standard   Cardiolite® Terms that are inconsistent with this notice are hereby deemed to   be amended and modified to be consistent with and governed by the provisions   hereof.
    
	
 
    	
 
    	
 
    
	
E.
    	
 
    	
Notwithstanding   any other provision herein to the contrary, Medical Imaging may increase the   Technelite® Generator purchase prices to reflect any material change in costs   of molybdenum. A change in such costs is considered material if the increase   in the cost of molybdenum over any **** (****) day period (a “Moly Cost   Increase Period”) is more than **** percent (****%). In the event of such a   material increase, Medical Imaging shall be entitled to increase the   Technelite® Generator purchase prices to reflect the incremental increase in   such costs over **** percent (****%) starting as of when such costs are   actually incurred by Medical Imaging, provided that Medical Imaging provides   UPPI **** (****) days written notice and reasonable documentation supporting   such change in costs. Medical Imaging shall not implement the type of price   increase detailed in this paragraph more than **** per calendar year.
    
	
 
    	
 
    	
 
    
	
F.
    	
 
    	
Each   Member hereby represents and warrants that it will properly store, use and   dispose of all materials provided by Medical Imaging in accordance with any   instructions set forth on the applicable product labels, the rules and   regulations promulgated by the U.S. Nuclear Regulatory Commission and all   other applicable local, state and federal government regulations.
    
	
 
    	
 
    	
 
    
	
G.
    	
 
    	
Notwithstanding   anything in Agreements to the contrary, the Agreement may be freely assigned   by Medical Imaging.
    
	
 
    	
 
    	
 
    
	
H.
    	
 
    	
In   accordance with Section 5.04 of the Standard Cardiolite® Terms, each   Member shall report all AEs, Product Quality Complaints and Special   Situations to Medical Imaging within 24 hours of the date that Member first   becomes aware of an AE, Product Quality Complaint or Special Situation   associated with a Sestamibi Product, TechneLite® Generator or any other   product of Medical Imaging that is reported to Member or of which Member or   any of its agents, including local radiopharmacists, are otherwise made aware.   In addition, Member shall provide Medical Imaging with immediate (or as soon   as practicable) notification of any fatal or life-threatening Serious AE.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   report for AEs and Special Situations should contain as much information as   is available concerning such event to permit Medical Imaging to file a   MedWatch Form 3500A report that satisfies regulatory guidelines for   content and timeliness. The reports for Product Quality Complaints shall   include the following information: name and contact information of reporter;   product/material name or description; lot number; number of defective units;   number of complaint samples available for return; indication of whether a   patient was dosed; and description of the complaint condition.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Member   shall insure prompt follow-up as necessary to provide Medical Imaging with   reasonably complete information known or otherwise available to Member with   respect to any Serious AE, AEs, Product Quality Complaints or Special   Situations. If follow-up information is received after reporting a Serious   AE, AE, Product Quality Complaint or Special Situation, Member also must   report such information.
    

 

8

 

	
 
    	
 
    	
All   reports and any related communications made hereunder shall be made as   follows (or to such other address, contact person, telephone number,   facsimile number or e mail address as may be specified by Medical Imaging):
    

 

	
United States 

Phone: 1-800-343-7851 

 

·      Press Option 2 for Adverse Events or Special   Situations 

 

·      Press Option 3 for Product Quality Complaints 

 

Fax: 1-866-880-9343
    	
 
    	
Outside US/Canada  

Phone: 978-667-9531 

 

·      Press Option 2 for Adverse Events or Special   Situations 

 

·      Press Option 3 for Product Quality Complaints 

 

Fax: 734-929-6688
    
	
 
    	
 
    	
 
    
	
E-Mail: lantheussafety@i3drugsafety.com
    

 

i3 Drug Safety is the pharmacovigilance partner of Lantheus Medical Imaging.

 

	
 
    	
 
    	
“AE”   means any untoward medical occurrence in a patient or clinical investigation   subject, which results in any unfavorable and unintended sign, symptom, or   disease temporally associated with the use of a medicinal product, whether or   not considered, related to the medicinal product.  All noxious and unintended responses to a   medicinal product related to any dose should be considered adverse drug   reactions.  Responses to a medicinal   product means that a causal relationship between the product and AE is at   least a reasonable possibility (i.e., the relationship cannot be ruled out or   cannot be determined).  The failure of   a Sestamibi Product to localize as expected shall not be deemed an adverse   experience, whereas a significant failure of expected pharmacologic action   would be considered an adverse event.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Product   Quality Complaint” means an oral or written report, originating from an   external or internal source, stating that a product marketed by Medical   Imaging is not meeting the customer’s expectations in relation to identity,   quality, effectiveness or performance of the product.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Serious   AE” means any untoward medical occurrence that at any dose:  results in death; is life-threatening   (defined as an event in which the subject or patient was at risk of death at   the time of the event; it does not refer to an event which hypothetically   might have caused death if it were more severe); requires inpatient   hospitalization or causes prolongation of existing hospitalizations; results   in persistent or significant disability/incapacity; results in a congenital   anomaly/birth defect; is an important medical event (defined as a medical   event(s) that may not be immediately life-threatening or result in death   or hospitalization, but based upon appropriate medical and scientific   judgment, may jeopardize the patient/subject or may require intervention,   e.g., medical surgical, to prevent one of the other serious outcomes listed   in the definition above).  Examples of   such events include, but are not limited to, intensive treatment in an   emergency room or at home for allergic bronchospasm; blood dyscrasias or   convulsions that do not result in hospitalization.  For reporting purposes, Medical Imaging   also considers the occurrences of cancer, pregnancy, or overdose(accidental   or intentional and regardless of adverse outcome) as events that must be   expeditiously reported as important medical events.
    

 

9

 

	
 
    	
 
    	
“Special   Situation” means any outcomes of pregnancies of patients exposed to   product, AE during breastfeeding, data on use of product in children, lack of   efficacy (effect), transmission of an infectious disease with product,   overdose, misuse, or abuse, medication errors or AE in compassionate   use/named patient use. For reporting purposes, Medical Imaging considers   Special Situations to be AEs that must be reported within 24 hours.
    
	
 
    	
 
    	
 
    
	
I.
    	
 
    	
Except   as set forth above, notwithstanding anything in the Individual Pharmacy   Agreements to the contrary, upon any amendment, modification or supplement to   the Standard Cardiolite® Terms, Medical Imaging shall be required at any time   to provide written notice thereof solely to UPPI at the following address:
    

 

United Pharmacy Partners, Inc.

5400 Laurel Springs Parkway, Suite 405

Suwanee, GA 30024

Attn: Perry Polsinelli, President & CEO

 

	
 
    	
 
    	
All   notices to be provided to Medical Imaging hereunder shall be delivered to:
    

 

Lantheus Medical Imaging, Inc.

331 Treble Cove Road,

North Billerica, Massachusetts

Attn: Robert A. Spurr, Vice President, Sales & Marketing

 

10

 

Schedule A

 

Defined Terms

 

A.      Capitalized terms not otherwise defined herein shall have the meanings specified in the Standard Cardiolite® Terms.

 

B.       “Agreements” means collectively the Agreement, Committed Pharmacy Agreements, the Individual Pharmacy Agreements, and the Standard Cardiolite® Terms, as in effect from time to time.

 

C.       “Committed Member” means a Member or Member Radiopharmacy Family which commits to purchase Committed Volumes pursuant to a Committed Pharmacy Agreement, as described in Exhibit 1.

 

D.       “Committed Pharmacy Agreements” means the agreements for Committed Volumes, as in effect from time to time, between Medical Imaging and a Member or Member Radiopharmacy Family.

 

E.       “Committed Volumes” means the **** minimum volumes of **** mutually agreed to, and set forth in, a Committed Pharmacy Agreement between Medical Imaging and a Member or Member Radiopharmacy Family. Such **** minimum volumes shall be established for each Member or Member Radiopharmacy Family based on **** volumes for such Member or Member Radiopharmacy Family or volume estimates appropriate for the time frame in which such Member or Member Radiopharmacy Family is expected to be a Committed Member.

 

F.       “Good Standing” means the status of having obtained and retained all federal, state and local licenses and other requirements necessary for the lawful conduct of business as a commercial radiopharmacy.

 

G.       “Individual Pharmacy Agreements” means the Cardiolite® License and Supply Agreements between Medical Imaging and a Member or Member Radiopharmacy Family.

 

H.       “Member” means a Member of UPPI in Good Standing.

 

I.        “Member Radiopharmacy Family” means **** (****) or more commercially established radiopharmacies in Good Standing and which are directly or indirectly Controlled by or under common Control with the same Member.

 

J.        “Quarter” means a calendar quarter.

 

11

 

K.       “Technelite® Generator Purchase Price” means the purchase price for Technelite® Generators set forth in Exhibit 1, attached hereto, as such price may be modified from time to time.

 

L.       “Technelite® Generators” means technetium Tc99m generators sold under the trademark Technelite®.

 

M.      “Technelite® Generator Unshipped Curies” means the number of curies that are not shipped if a Technelite® Generator order, accepted by Medical Imaging, is not filled as ordered resulting in no shipment or a shipment of fewer curies than originally specified on the order.

 

N.       “**** Sestamibi Product” means ****.

 

O.       “Uncommitted Member” means a Member or Member Radiopharmacy Family which does not commit to purchase minimum volumes of **** or fails to purchase such volumes on a **** basis, as described in Exhibit 1.

 

12

 

Exhibit A1

 

TechneLite® Generator Pricing for Committed Members as of ****

 

****

 

TechneLite® Generators manufactured on Sunday are denoted with a “-U” above.

 

13

 

Exhibit A2

 

TechneLite® Generator Pricing for Uncommitted Members as of ****

 

****

 

TechneLite® Generators manufactured on Sunday are denoted with a “-U” above.

 

14Royal Mines and Minerals Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE "ACT"), AND ARE BEING OFFERED AND SOLD IN
RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT. SUCH
SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED
UNLESS THEY ARE REGISTERED UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE
EXEMPT FROM SUCH REGISTRATION. THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR BY ANY STATE SECURITIES
ADMINISTRATION OR REGULATORY AUTHORITY.

COMPENSATION STOCK AWARD AGREEMENT OF
ROYAL MINES AND
MINERALS CORP. 
a Nevada corporation

THIS AGREEMENT is made between ROYAL MINES AND
MINERALS CORP., a Nevada corporation (hereinafter referred to as the
“Company”) and «NAME», «Position» of the Company (hereinafter referred to
as the “Grantee”), and dated effective as of the «IssueDay» day of «IssueMonth»,
«IssueYear».

In exchange for the mutual covenants and agreements contained
herein, the parties hereto agree as follows:

1. Stock Award Information. Provided that the Grantee
executes and returns this Agreement to the Company on or before April 1, 2011,
the Company hereby agrees to grant to the Grantee the number of shares of the
Company’s common stock (the “Stock Award”) set forth below as fully vested
compensation stock awards, having a deemed fair value per share as determined by
the Company’s Board of Directors as set out below:

	(a) 	Number of Shares: 	«SHARES» («NUMBEROFSHARES») 
	 	 	 
	(b) 	Deemed Fair Value on Grant Date: 	«DEEMEDPRICE» per share 

2. Employment or Consulting Services. The Grantee
acknowledges and agrees that the Stock Award has been granted by the Company in
consideration for services previously provided by the Grantee to the Company as
an officer, director or consultant of the Company, and that the Grantee was an
officer, director or consultant of the Company at the time the Stock Award was
offered to the Grantee.

3. Tax Consequences. The Grantee acknowledges and
understands that the Grantee may recognize income for federal, state and local
income tax purposes as a result of the Stock Award and that it is the sole
responsibility of the Grantee to obtain tax advice with respect to the specific
tax consequences of receiving the Stock Award, and that the Grantee has had full
opportunity to obtain such advice prior to entering into this Agreement. The
Grantee agrees that the Company may deduct from payments of any kind otherwise
due to the Grantee amounts required by any applicable federal, state or local
tax laws to be withheld in respect of the Stock Award.

4. Agreements, Representations and Warranties of the
Grantee.

The Grantee covenants, represents and warrants to the Company
as follows, and acknowledges that the Company is relying upon such covenants,
representations and warranties in connection with the grant of the Stock Awards
to such Grantee:

	(a) 	
      The Grantee represents and warrants to the Company that
      the Grantee is (i) a director or executive officer of the Company or (ii)
      a close, personal friend, relative or business associate, of a director or
      executive officer of the Company and as such has had an opportunity to ask
      questions and receive answers from the Company regarding the terms and
      conditions of the offer of the Stock Awards and the business, properties,
      prospects and financial condition of the Company. The Grantee has had full
      opportunity to discuss this information with the Grantee’s legal and
      financial advisers prior to execution of this
Agreement.

2

	(b) 	
      The Grantee acknowledges that the Stock Awards are
      “restricted securities” within the meaning of the Securities Act and will
      be issued to the Grantee pursuant to an exemption from registration
      provided by Section 4(2) of the Securities Act.

	 	 
	(c) 	
      The Stock Awards will be acquired by the Grantee for
      investment for the Grantee's own account, not as a nominee or agent, and
      not with a view to the resale or distribution of any part thereof, and
      that the Grantee has no present intention of selling, granting any
      participation in, or otherwise distributing the same. The Grantee does not
      have any contract, undertaking, agreement or arrangement with any person
      to sell, transfer or grant participations to such person or to any third
      person, with respect to any of the Stock Awards.

	 	 
	(d) 	
      The Grantee agrees to resell the Stock Awards only in
      accordance with the provisions of the Securities Act, pursuant to an
      effective registration under the Securities Act or pursuant to an
      available exemption from the registration requirements of the Securities
      Act, and further agrees that the Company will refuse to register any
      transfer or resale of the Stock Awards not made in accordance with the
      provisions of the Securities Act, pursuant to an effective registration
      under the Securities Act or pursuant to an available exemption from the
      registration requirements of the Securities Act.

	 	 
	(e) 	
      The Grantee acknowledges and agrees that all certificates
      representing the Stock Awards will be endorsed with a restrictive legend
      substantially similar to the following in accordance with the Securities
      Act:

	 	 
		
      “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE
      BEEN OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION
      REQUIREMENTS OF THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR
      RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE
      APPLICABLE PROVISIONS OF THE ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
      FROM THE REGISTRATION REQUIREMENTS OF THE ACT.”

	 	 
	(f) 	
      The Grantee acknowledges that an investment in the
      Company is highly speculative, and involves a high degree of risk as the
      Company is in the early stages of developing its business and that only
      investors who can afford the loss of their entire investment should
      consider investing in the Company. The Grantee is an investor in
      securities of businesses in the development stage and acknowledges that
      the Grantee is able to fend for himself/herself/itself, can bear the
      economic risk of the Grantee's investment, and has such knowledge and
      experience in financial or business matters such that the Grantee is
      capable of evaluating the merits and risks of an investment in the
      Company’s securities as contemplated in this Agreement.

	 	 
	(g) 	
      The Grantee acknowledges that the offering of the Stock
      Awards by the Company has not been reviewed by the SEC or any other
      regulatory authorities and that the Stock Awards are being issued by the
      Company pursuant to an exemption from registration under the Securities
      Act.

3

	(h) 	
      The Stock Awards will be acquired by the Grantee for
      investment for the Grantee's own account, not as a nominee or agent, and
      not with a view to the resale or distribution of any part thereof, and
      that the Grantee has no present intention of selling, granting any
      participation in, or otherwise distributing the same. The Grantee does not
      have any contract, undertaking, agreement or arrangement with any person
      to sell, transfer or grant participations to such person or to any third
      person, with respect to any of the Stock Awards.

	 	 
	(i) 	
      The Grantee is not aware of any advertisement or general
      solicitation regarding the offer or sale of the Company’s
    securities.

5. General Provisions.

	(a) 	
      This Agreement shall be construed and administered in
      accordance with the laws of the State of Nevada.

	 	 
	(b) 	
      The provisions of this Agreement shall be binding upon,
      and shall inure to the benefit of, the parties hereto and their respective
      heirs, successors and assignees.

	 	 
	(c) 	
      The provisions of this Agreement may be waived, altered,
      amended or repealed, in whole or in part, only on the written consent of
      all parties hereto.

	 	 
	(d) 	
      This Agreement may be executed in one or more
      counterparts, which shall together constitute a valid and binding
      agreement.

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement effective as of the date first written above. 

ROYAL MINES AND MINERALS CORP. 
by its authorized
signatory:

	Jason S. Mitchell 	 
	Chief Financial Officer and Treasurer 	 

GRANTEE:

	Signature of Grantee 	 
	  	 
	«NAME» 	 
	Name of Grantee 	 
	  	 
	«ADDRESS» 	 
	Address 	 
	  	 
	«NUMBEROFSHARES» 	 
	NUMBER OF SHARES OF COMMON STOCK

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