Document:

Exhibit 10.5

 

	
 
    	
Grant No.:
    

 

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

 

PERFORMANCE SHARE AGREEMENT

 

Royal Gold, Inc., a Delaware corporation (the “Company”), hereby grants performance shares relating to shares of its common stock, $.01 par value (the “Stock”), to the individual named below as the Holder, subject to the vesting conditions set forth in the attachment.  Additional terms and conditions of the grant are set forth in this cover sheet, in the attachment and in the Royal Gold, Inc. 2004 Omnibus Long-Term Incentive Plan (the “Plan”).

 

Grant Date:

 

Name of Holder:

 

Holder’s Social Security Number:

 

Number of Performance Shares Covered by Grant:

 

This Performance Share grant is subject to all of the terms and conditions described in this Agreement and in the Plan, a copy of which is available for your review upon request to the Corporate Secretary.  You should carefully review the Plan, and the Plan will control in the event any provision of this Agreement should appear to be inconsistent with the terms of the Plan.

 

	
Grantee:
    	
 
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
Company:
    	
 
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
Title:
    	
President   and Chief Executive Officer
    

 

Attachment

 

This is not a stock certificate or a negotiable instrument.

 

 

	
Performance   Shares
    	
 
    	
 
    
	
Transferability
    	
 
    	
This   grant is an award of performance shares in the number of shares set forth on   the cover sheet, subject to the vesting conditions described below (the   “Performance Shares”). Your Performance Shares may not be transferred,   assigned, pledged or hypothecated, whether by operation of law or otherwise,   nor may the Performance Shares be made subject to execution, attachment or   similar process.
    
	
 
    	
 
    	
 
    
	
Vesting
    	
 
    	
The   Performance Shares shall vest as follows: One Hundred percent (100%) of the   Performance Shares granted hereunder shall vest upon achievement of an   increase in adjusted free cash flow per share (“AFCPS”) to   $          per basic   weighted average share outstanding (“WASO”). For the period ended   June 30,              the trailing twelve month AFCPS was   $          per WASO. This   increase to $          per   WASO represents a ten percent compounded annual growth rate (“CAGR”) over the   contractual term of the Performance Shares granted hereunder. Vesting may   occur upon achievement of twenty five percent increments of the target   increase in AFCPS, or upon achievement of trailing twelve month AFCPS of   $          per WASO for   twenty five percent (25%) vesting,   $          per WASO for   fifty percent (50%) vesting and   $          per WASO for   seventy five percent (75%) vesting.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
AFCPS   is defined as operating income plus production taxes, exploration expenses,   depreciation, depletion and amortization, non-cash charges, and any   impairment of mining assets, less non-controlling interests in operating   income of consolidated subsidiaries, and calculated quarterly on a trailing   twelve month basis.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WASO   is defined as the weighted average number of shares outstanding over the   previous twelve month period, which is reported each fiscal quarter as Basic   Weighted Average Shares Outstanding in our Consolidated Statements of   Operations and Comprehensive Income.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
No   additional Performance Shares will vest after your Service has terminated for   any reason.
    

 

2

 

	
 
    	
 
    	
All   Performance Shares that have not vested by the fifth anniversary of the Grant   Date will be forfeited.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   Compensation, Nominating and Governance Committee has the authority to   certify whether the vesting thresholds set forth above have been achieved   within the meaning of Treasury Regulations, Section 1.162-27(e)(5). Any   such determinations shall be made in the sole discretion of the Compensation,   Nominating and Governance Committee. The resulting aggregate number of vested   Performance Shares will be rounded down to the nearest whole number of   Performance Shares. You may not vest in more than the number of Performance   Shares covered by this grant.
    
	
 
    	
 
    	
 
    
	
Termination   without 
   Cause, Good Reason 
   or Non-Renewal of 
   Employment Agreement; 
   Change of Control
    	
 
    	
Notwithstanding   the foregoing vesting rules, if (i) the Company terminates your Service   or your Employment Agreement without “Cause” (as defined in your Employment   Agreement) during the term of your Employment Agreement, (ii) you   terminate your Service or your Employment Agreement for “Good Reason” (as   defined in your Employment Agreement) during the term of your Employment   Agreement, or (iii) your Service is terminated upon the Company’s   election not to renew the term for one of the four successive one-year renewal   terms pursuant to Section 2 of your Employment Agreement, and any such   termination does not occur within the period beginning ninety (90) days prior   to and ending two (2) years after the occurrence of a “Change of   Control” (as defined in your Employment Agreement), then, you will be vested   as of the date of your termination in all or a portion of the Performance   Shares to which you would be entitled based on the Company’s performance   through the last day of the Company’s fiscal quarter in which your Service is   terminated and determined in accordance with the Company’s practices as in   effect at such time. The resulting aggregate number of vested shares will be   rounded to the nearest whole number, and you cannot vest in more than the   number of shares covered by this grant.
    

 

3

 

	
 
    	
 
    	
If   (i) the Company terminates your Service or your Employment Agreement   without “Cause” (as defined in your Employment Agreement) during the term of   your Employment Agreement, (ii) you terminate your Service or your   Employment Agreement for “Good Reason” (as defined in your Employment   Agreement) during the term of your Employment Agreement, or (iii) your   Service is terminated upon the Company’s election not to renew the term for one   of the four successive one-year renewal terms pursuant to Section 2 of   your Employment Agreement, and any such termination occurs within the period   beginning ninety (90) days prior to and ending two (2) years after the   occurrence of a “Change of Control” (as defined in your Employment   Agreement), then, you will be one hundred percent (100%) vested in the   Performance Shares as of the date of your termination.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
As   used herein, the term “Employment Agreement” shall mean that certain   Employment Agreement between you and the Company dated             , as the same may   be amended after the date hereof.
    
	
 
    	
 
    	
 
    
	
Delivery   of Stock 
   Pursuant to Vested
   Performance Shares
    	
 
    	
A   certificate for all of the shares of Stock represented by the vested Performance   Shares (which shares of Stock will be rounded down to the nearest number of   whole shares) will be delivered to you on or immediately after you have   vested in such Performance Shares provided that, if vesting occurs during a   period in which you are (i) subject to a lock-up agreement restricting   your ability to sell shares of Stock in the open market, or   (ii) restricted from selling shares of Stock in the open market because   you are not then eligible to sell under the Company’s insider trading plan or   similar plan as then in effect (whether because a trading window is not open   or you are otherwise restricted from trading), vesting in such shares of   Stock will be delayed until the earlier of (A) the first date on which   you are no longer prohibited from selling shares of Stock due to a lock-up   agreement or insider trading or similar plan restriction applicable to you or   (B) either the date of your involuntary termination of your Service by   the Company or a Subsidiary, your death or your Disability (the earlier of   the dates in clause (A) and (B) shall be the “Deferred Vesting   Date”), and provided, further, that you have been continuously in Service to   the Company or a Subsidiary from the Grant Date until the Deferred Vesting   Date.
    

 

4

 

	
 
    	
 
    	
If   the Deferred Vesting Date is determined pursuant to clause (B) above,   you are prohibited from selling shares of Stock due to a lock-up agreement or   insider trading or similar plan restriction applicable to you on the Deferred   Vesting Date and you meet the continuous Service requirements, then, to the   extent legally permitted under the General Corporation Law of the State of   Delaware and other applicable law, you may elect to satisfy any obligations   to pay any Federal, state, or local taxes of any kind required by law to be   withheld with respect to the vesting of or other lapse of restrictions   applicable to such an Award, in whole or in part, (x) by causing the   Company or its Affiliate to withhold shares of Stock otherwise issuable to   you or (y) by delivering to the Company or its Affiliate shares of Stock   already owned by you. The shares of Stock so delivered or withheld shall have   an aggregate Fair Market Value equal to such withholding obligations. In no   case shall the shares withheld or delivered exceed the minimum required   Federal, state, and FICA statutory withholding rates. The Fair Market Value   of the shares of Stock used to satisfy such withholding obligation shall be   determined by the Company or its Affiliate as of the date that the amount of   tax to be withheld is to be determined. If you make an election pursuant to   the forgoing sentence, you may satisfy your withholding obligation only with   shares of Stock that are not subject to any repurchase, forfeiture,   unfulfilled vesting, or other similar requirements.
    
	
 
    	
 
    	
 
    
	
Forfeiture   of Unvested Performance Shares
    	
 
    	
In   the event that your Service terminates for any reason, except as provided   above in the section entitled “Termination without Cause, Good Reason or   Non-Renewal of Employment Agreement; Change of Control,” or in connection   with a Deferred Vesting Date, you will forfeit all of the Performance Shares   that have not yet vested.
    
	
 
    	
 
    	
 
    
	
Withholding   Taxes
    	
 
    	
You   agree, as a condition of this grant, that you will make acceptable   arrangements to pay any withholding or other taxes that may be due as a   result of vesting in Performance Shares or your acquisition of Stock under   this grant. In the event that the Company determines that any federal, state,   local or foreign tax or withholding payment is required relating to this   grant, the Company will have the right to: (i) require such payments   from you; (ii) withhold such amounts from other payments due to you from   the Company or any Affiliate; or (iii) cause an immediate forfeiture of   shares of Stock subject to the Performance Shares granted pursuant to this   Agreement in an amount equal to the withholding or other taxes due.
    

 

5

 

	
Retention   Rights
    	
 
    	
Neither   the Performance Shares nor this Agreement give you the right to be retained   by the Company (or any parent, Subsidiaries or Affiliates) in any capacity.   The Company (and any parent, Subsidiaries or Affiliates) reserve the right to   terminate your Service at any time and for any reason.
    
	
 
    	
 
    	
 
    
	
Shareholder   Rights
    	
 
    	
You,   or your estate or heirs, have no rights as a shareholder of the Company until   a certificate for shares of Stock relating to the vested Performance Shares   has been issued (or an appropriate book entry has been made). No adjustments   are made for dividends or other rights if the applicable record date occurs   before your stock certificate is issued (or an appropriate book entry has   been made), except as described in the Plan.
    
	
 
    	
 
    	
 
    
	
Forfeiture   of Rights
    	
 
    	
If   you should take actions in competition with the Company, the Company shall   have the right to cause a forfeiture of your rights, including, but not   limited to: (i) a forfeiture of any outstanding unvested Performance   Shares, and (ii) with respect to the period commencing twelve (12)   months prior to your termination of Service with the Company (A) a   forfeiture of any proceeds received upon a sale of shares acquired by you   upon vesting of Performance Shares or (B) a forfeiture of any shares of   Stock acquired by you upon vesting of the Performance Shares. Unless otherwise   specified in an employment or other agreement between the Company and you,   you take actions in competition with the Company if you directly or   indirectly, own, manage, operate, join or control, or participate in the   ownership, management, operation or control of, or are a proprietor,   director, officer, stockholder, member, partner or an employee or agent of,   or a consultant to any business, firm, corporation, partnership or other   entity that is in the business of creating, financing, acquiring, investing   in and managing precious metal royalties, precious metal streams and similar   interests. Under the prior sentence, ownership of less than 1% of the   securities of a public company shall not be treated as an action in   competition with the Company.
    
	
 
    	
 
    	
 
    
	
Adjustments
    	
 
    	
In   the event of a stock split, a stock dividend or a similar change in the   Stock, the number of Performance Shares covered by this grant shall be   adjusted (and rounded down to the nearest whole number) if required pursuant   to the Plan. Performance Shares shall be subject to the terms of the   agreement of merger, liquidation or reorganization in the event the Company   is subject to such corporate activity.
    

 

6

 

	
Applicable   Law
    	
 
    	
This   Agreement will be interpreted and enforced under the laws of the State of   Delaware, other than any conflicts or choice of law, rule or principle   that might otherwise refer construction or interpretation of this Agreement   to the substantive law of another jurisdiction.
    
	
 
    	
 
    	
 
    
	
Consent   to Electronic
    	
 
    	
 
    
	
Delivery
    	
 
    	
The   Company may choose to deliver certain statutory materials relating to the   Plan in electronic form. By accepting this grant you agree that the Company   may deliver the Plan prospectus and the Company’s annual report to you in an   electronic format. If at any time you would prefer to receive paper copies of   these documents, as you are entitled to, the Company would be pleased to   provide copies. Please contact the Secretary at (303) 573-1660 to request   paper copies of these documents.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The   Plan
    	
 
    	
The   text of the Plan is incorporated in this Agreement by reference. Certain   capitalized terms used in this Agreement are defined in the Plan, and have   the meaning set forth in the Plan.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
This   Agreement and the Plan constitute the entire understanding between you and   the Company regarding the Performance Shares. Any prior agreements,   commitments or negotiations concerning the Performance Shares are superseded.
    
	
 
    	
 
    	
 
    
	
Stock   Ownership
    	
 
    	
 
    
	
Requirements
    	
 
    	
You   are required to continue to hold an aggregate of fifty percent (50%) of the   shares of Stock acquired by you pursuant to this Performance Share grant   together with all other shares of Stock acquired by you pursuant to any other   performance share grant made under the Plan (such 50% to be determined after   reducing the shares of Stock covered by this grant and all other performance   share grants made to you under the Plan by the number shares of Stock equal   in value to the amount required to be withheld to pay taxes in connection   with this grant and such other performance share grants) until the number of   shares of Stock owned by you equals or exceeds                       .   If the number of shares of Stock owned by you exceeds           , you may dispose of the   shares of Stock acquired pursuant to this Performance Share grant as long as   you continue to own at least              shares of Stock   after the disposition.
    

 

By signing the cover sheet of this Agreement, you acknowledge that you have received, read and understand the Plan and this Agreement, and agree to abide by and be bound by their terms and conditions.

 

7Exhibit 10.6

 

Grant No.:

 

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

 

STOCK APPRECIATION RIGHTS AGREEMENT- STOCK SETTLED

 

Royal Gold, Inc., a Delaware corporation (the “Company”), hereby grants stock appreciation rights (“SARs”) relating to its common stock, $.01 par value per share, (the “Stock”) to the Grantee named below subject to the restrictions and vesting conditions set forth in the attachment.  The terms and conditions of the SARs are set forth in this cover sheet, in the attachment, and in the Company’s 2004 Omnibus Long-Term Incentive Plan (the “Plan”).

 

Grant Date:

 

Name of Grantee:

 

Grantee’s Social Security Number:

 

Number of Shares of Stock Subject to the SARs:

 

SAR Grant Price per Share:    (At least 100% of Fair Market Value on the Grant Date)

 

Vesting Start Date:

 

By signing this cover sheet, you agree to all of the terms and conditions described in the attached Agreement and in the Plan, a copy of which is also available upon request to the Corporate Secretary.  You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this Agreement should appear to be inconsistent.

 

	
Grantee:
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
Company:
    	
 
    	
 
    
	
 
    	
(Signature)
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
President   and Chief Executive Officer
    	
 
    

 

Attachment

 

This is not a stock certificate or a negotiable instrument.

 

 

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

 

STOCK APPRECIATION RIGHTS AGREEMENT

 

	
Stock   Appreciation Rights
    	
 
    	
This   grant is an award of stock appreciation rights (“SARs”) exercisable for the   number of shares set forth on the cover sheet, subject to the vesting   conditions described below.
    
	
 
    	
 
    	
 
    
	
Vesting
    	
 
    	
The   SARs are only exercisable before they expire and then only with respect to   the vested portion of the SARs.    Subject to the preceding sentence, you may exercise the SARs, in whole   or in part, for a whole number of vested shares not less than 100 shares,   unless the number of shares purchased is the total number available for   purchase under the SARs, by following the procedures set forth in the Plan   and below in this Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Your   right to exercise the SARs vests as to one-third (1/3) of the total number of   shares of Stock subject to the SARs, as shown on the cover sheet, on the   first, second and third anniversaries of the Vesting Start Date (“Anniversary   Date”), provided you then continue in Service.  The resulting aggregate number of vested   SARs will be rounded to the nearest whole number, and you cannot vest in more   than the number of SARs shown on the cover sheet.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
No   additional SARs will vest after your Service has terminated for any reason.
    
	
 
    	
 
    	
 
    
	
Termination   after Long-Term Service
    	
 
    	
Notwithstanding   the foregoing vesting rules, if you incur a termination of Service by the   Company other than for “Cause” (as defined in the Employment Agreement), at   any time after you have provided fifteen (15) years of Service to the   Company, you shall be one hundred percent (100%) vested in the SARs as of the   date of such termination of Service.
    
	
 
    	
 
    	
 
    
	
Termination   without Cause, Good Reason or Non-Renewal of Employment Agreement
    	
 
    	
Notwithstanding   the foregoing vesting rules, if (i) the Company terminates your Service   or your Employment Agreement without “Cause”    (as defined in your Employment Agreement) during the term of your   Employment Agreement, (ii) you terminate your Service or your Employment   Agreement for “Good Reason” (as defined in your Employment Agreement) during   the term of your Employment Agreement, or (iii) your Service is   terminated upon the Company’s election not to renew the term for one of the   four
    

 

2

 

	
 
    	
 
    	
successive   one-year renewal terms pursuant to Section 2 of your Employment   Agreement, then, after the Company’s receipt of the Severance and Release Documents   (as defined in your Employment Agreement) you shall be 100% vested in the   SARs as of the date of the Company’s receipt of such Severance and Release   Documents.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
As   used herein, the term “Employment Agreement” shall mean that certain Employment   Agreement between you and the Company dated            , as the same may be   amended after the date hereof.
    
	
 
    	
 
    	
 
    
	
Term
    	
 
    	
Your   SARs will expire in any event at the close of business at Company   headquarters on the day of the 10th anniversary of the Grant Date, as shown   on the cover sheet.  Your SARs will   expire earlier if your Service terminates, as described below.
    
	
 
    	
 
    	
 
    
	
Regular   Termination
    	
 
    	
If   your Service terminates for any reason, other than death, Disability or   Cause, then your unvested SARs will expire immediately and your vested SARs   will expire at the close of business at Company headquarters on the 90th day   after your termination date.
    
	
 
    	
 
    	
 
    
	
Termination   for Cause
    	
 
    	
If   your Service is terminated for Cause, then you shall immediately forfeit all   rights to your SARs and the SARs shall immediately expire.
    
	
 
    	
 
    	
 
    
	
Death
    	
 
    	
If   your Service terminates because of your death, then your unvested SARs will   expire immediately and your vested SARs will expire at the close of business   at Company headquarters on the date twelve (12) months after the date of   death.  During that twelve month   period, your estate or heirs may exercise the vested portion of your SARs.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In   addition, if you die during the 90-day period described in connection with a   regular termination (i.e., a termination of your Service not on account of   your death, Disability or Cause), and a vested portion of your SARs has not   yet been exercised, then your SARs will instead expire on the date twelve   (12) months after your termination date.    In such a case, during the period following your death up to the date   twelve (12) months after your termination date, your estate or heirs may   exercise the vested portion of your SARs.
    
	
 
    	
 
    	
 
    
	
Disability
    	
 
    	
If   your Service terminates because of your Disability, then your unvested SARs   will expire immediately and your vested SARs will
    

 

3

 

	
 
    	
 
    	
expire   at the close of business at Company headquarters on the date twelve (12)   months after your termination date.
    
	
 
    	
 
    	
 
    
	
Extension   of Expiration Date
    	
 
    	
Notwithstanding   the foregoing, if (i) you are terminated pursuant to Sections 5(a), (c),   (d) or (e) of your Employment Agreement, and (ii) you are   precluded from selling in the open market any shares of Stock underlying the   SARs for any portion of the period of time between the date of termination of   your Service and the expiration date of the SARs set forth in the section   entitled “Regular Termination,” “Death” or “Disability” above, as applicable,   by reason of any lock-up agreement restricting your ability to sell such   Stock in the open market or under the Company’s insider trading or similar   plan as then in effect (whether because a trading window is not open or you   are otherwise restricted from trading), then the expiration date for the SARs   shall be extended for a period of time equal to the number of days that you   were precluded from selling such Stock during the exercise period, provided,   however, that the expiration date shall not be extended pursuant to this   section beyond the tenth (10th) anniversary of the Grant Date.
    
	
 
    	
 
    	
 
    
	
Leaves   of Absence
    	
 
    	
For   purposes of this award of SARs, your Service does not terminate when you go   on a bona fide employee leave of absence   that was approved by the Company in writing, if the terms of the leave   provide for continued Service crediting, or when continued Service crediting   is required by applicable law.    However, your Service will be treated as terminating 90 days after you   went on employee leave, unless your right to return to active work is   guaranteed by law or by a contract.    Your Service terminates in any event when the approved leave ends   unless you immediately return to active employee work.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   Company determines, in its sole discretion, which leaves count for this   purpose, and when your Service terminates for all purposes under the Plan.
    
	
 
    	
 
    	
 
    
	
Notice   of Exercise
    	
 
    	
When   you wish to exercise this award of SARs, you must notify the Company by   filing the proper “Notice of Exercise” form at the address given on the   form.  Your notice must specify how   many SARs you wish to exercise (in a parcel of at least 100 SARs   generally).  Your notice must also   specify how the shares of Stock received on the exercise of your SARs should   be registered (in your name only or in your and your spouse’s names as joint   tenants with right of survivorship).    The notice will be effective when it is received by the Company.
    

 

4

 

	
 
    	
 
    	
If   someone else wants to exercise the SARs after your death, that person must   prove to the Company’s satisfaction that he or she is entitled to do so.
    
	
 
    	
 
    	
 
    
	
Payment   for SARs
    	
 
    	
Upon   your exercise of the SARs, the Company shall pay you in shares of Stock an   amount equal to the positive difference (if any) between the Fair Market   Value of a share of Stock on the exercise date and the SAR Grant Price,   multiplied by the number of SARs being exercised.  Any fractional shares of Stock shall be   paid to you in cash.
    
	
 
    	
 
    	
 
    
	
Withholding   Taxes
    	
 
    	
You   will not be allowed to exercise the SARs unless you make acceptable arrangements   to pay any withholding or other taxes that may be due as a result of the   exercise of the SARs.  In the event   that the Company determines that any federal, state, local or foreign tax or   withholding payment is required relating to the exercise or sale of shares   arising from this grant, the Company shall have the right to:  (i) require such payments from you;   (ii) withhold such amounts from other payments due to you from the   Company or any Affiliate; or (iii) cause an immediate forfeiture of   shares of Stock subject to the exercised SARs pursuant to this Agreement in   an amount equal to the withholding or other taxes due.
    
	
 
    	
 
    	
 
    
	
Transfer   of SARs
    	
 
    	
During   your lifetime, only you (or, in the event of your legal incapacity or   incompetency, your guardian or legal representative) may exercise the   SARs.  You cannot transfer or assign   the SARs.  For instance, you may not   sell the SARs or use them as security for a loan.  If you attempt to do any of these things,   the SARs will immediately become invalid.    You may, however, dispose of the SARs in your will or the SARs may be   transferred upon your death by the laws of descent and distribution.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Regardless   of any marital property settlement agreement, the Company is not obligated to   honor a notice of exercise from your spouse, nor is the Company obligated to   recognize your spouse’s interest in your SARs in any other way.
    
	
 
    	
 
    	
 
    
	
Retention   Rights
    	
 
    	
Neither   your SARs nor this Agreement give you the right to be retained by the Company   (or any parent, Subsidiaries or Affiliates) in any capacity.  The Company (and any parent, Subsidiaries   or Affiliates) reserve the right to terminate your Service at any time and   for any reason.
    

 

5

 

	
Shareholder   Rights
    	
 
    	
You,   or your estate or heirs, have no rights as a shareholder of the Company until   a certificate for shares of Stock received pursuant to the exercise of your   SARs has been issued (or an appropriate book entry has been made).  No adjustments are made for dividends or   other rights if the applicable record date occurs before your stock   certificate is issued (or an appropriate book entry has been made), except as   described in the Plan.
    
	
 
    	
 
    	
 
    
	
Forfeiture   of Rights
    	
 
    	
If   you should take actions in competition with the Company, the Company shall   have the right to cause a forfeiture of your rights, including, but not   limited to, the right to cause: (i) a forfeiture of any outstanding   SARs, and (ii) with respect to the period commencing twelve (12) months   prior to your termination of Service with the Company and ending twelve (12)   months following such termination of Service (A) a forfeiture of any   gain recognized by you upon the exercise of SARs or (B) a forfeiture of   any Stock acquired by you upon the exercise of SARs. Unless otherwise   specified in an employment or other agreement between the Company and you,   you take actions in competition with the Company if you directly or   indirectly, own, manage, operate, join or control, or participate in the   ownership, management, operation or control of, or are a proprietor,   director, officer, stockholder, member, partner or an employee or agent of,   or a consultant to any business, firm, corporation, partnership or other   entity that is in the business of creating, financing, acquiring, investing   in and managing precious metal royalties, precious metal streams and similar   interests.  Under the prior sentence,   ownership of less than 1% of the securities of a public company shall not be   treated as an action in competition with the Company.
    
	
 
    	
 
    	
 
    
	
Adjustments
    	
 
    	
In   the event of a stock split, a stock dividend or a similar change in the   Stock, the number of shares covered by the SARs and the SAR Grant Price per   share shall be adjusted (and rounded down to the nearest whole number) if   required pursuant to the Plan. Your SARs shall be subject to the terms of the   agreement of merger, liquidation or reorganization in the event the Company   is subject to such corporate activity.
    
	
 
    	
 
    	
 
    
	
Applicable   Law
    	
 
    	
This   Agreement will be interpreted and enforced under the laws of the State of   Delaware, other than any conflicts or choice of law rule or principle   that might otherwise refer construction or interpretation of this Agreement   to the substantive law of another jurisdiction.
    

 

6

 

	
The   Plan
    	
 
    	
The   text of the Plan is incorporated in this Agreement by reference.  Certain capitalized terms used in this   Agreement are defined in the Plan, and have the meaning set forth in the   Plan.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
This   Agreement and the Plan constitute the entire understanding between you and   the Company regarding the SARs.  Any   prior agreements, commitments or negotiations concerning the SARs are   superseded.
    
	
 
    	
 
    	
 
    
	
Other   Agreements
    	
 
    	
You   agree, as a condition of the grant of the SARs, that in connection with the   exercise of the SARs, you will execute such document(s) as necessary to   become a party to any shareholder agreement or voting trust as the Company   may require.
    
	
 
    	
 
    	
 
    
	
Data   Privacy
    	
 
    	
In   order to administer the Plan, the Company may process personal data about   you.  Such data includes but is not   limited to the information provided in this Agreement and any changes   thereto, other appropriate personal and financial data about you such as home   address and business address and other contact information, payroll   information and any other information that might be deemed appropriate by the   Company to facilitate the administration of the Plan.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By   accepting the SARs, you give explicit consent to the Company to process any   such personal data.  You also give   explicit consent to the Company to transfer any such personal data outside   the country in which you work or are employed, including, with respect to   non-U.S. resident Grantees, to the United States, to transferees who shall   include the Company and other persons who are designated by the Company to   administer the Plan.
    
	
 
    	
 
    	
 
    
	
Consent   to Electronic Delivery
    	
 
    	
The   Company may choose to deliver certain statutory materials relating to the   Plan in electronic form.  By accepting   the SARs you agree that the Company may deliver the Plan prospectus and the   Company’s annual report to you in an electronic format.  If at any time you would prefer to receive   paper copies of these documents, as you are entitled to, the Company would be   pleased to provide copies.  Please   contact the Secretary at (303) 573-1660 to request paper copies of these   documents.
    
	
 
    	
 
    	
 
    
	
Stock   Ownership Requirements
    	
 
    	
You   are required to continue to hold an aggregate of fifty percent (50%) of the   shares of Stock acquired by you pursuant to the SARs together with all other   shares of Stock acquired by you pursuant to any other stock appreciation   rights grant made under the Plan
    

 

7

 

	
 
    	
 
    	
(such   50% to be determined after reducing the shares of Stock covered by this grant   and all other stock appreciation rights grants made to you under the Plan by   the number shares of Stock equal in value to the amount required to be   withheld to pay taxes in connection with the exercise of the SARs and such   other stock appreciation rights grants) until the number of shares of Stock   owned by you equals or exceeds               .  If the number of shares of Stock owned by   you exceeds             ,   you may dispose of the shares of Stock acquired pursuant to the SARs as long   as you continue to own at least                shares of Stock after the disposition.
    
	
 
    	
 
    	
 
    
	
Market   Stand-off Agreement
    	
 
    	
In   connection with any underwritten public offering by the Company of its equity   securities pursuant to an effective registration statement filed under the   Securities Act, you agree not to sell, make any short sale of, loan,   hypothecate, pledge, grant any option for the purchase of, or otherwise   dispose or transfer for value or agree to engage in any of the foregoing   transactions with respect to any shares of Stock without the prior written   consent of the Company or its underwriters, for such period of time after the   effective date of such registration statement as may be requested by the   Company or the underwriters (not to exceed 180 days in length).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By   signing the cover sheet of this Agreement, you acknowledge that you have   received, read and understand the Plan and this Agreement, and agree to abide   by and be bound by their terms and conditions.
    

 

8

 

NOTICE OF EXERCISE

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

STOCK APPRECIATION RIGHTS

 

Royal Gold, Inc.

1660 Wynkoop Street, Suite 1000

Denver, CO  80202

 

Attention:  Corporate Secretary

 

1.                                      Exercise of Stock Appreciation Rights.  Effective as of today,                                ,          (the “Exercise Date”), the undersigned (“Purchaser”) hereby elects to exercise stock appreciation rights (“SARs”) relating to                              shares of Royal Gold, Inc. (the “Company”), from grant number                          under and pursuant to the 2004 Omnibus Long-Term Incentive Plan (the “Plan”) and the SAR agreement dated                          (the “SAR Agreement”).  The exercise price for the SARs is                per share.

 

2.                                      Share Registration.  The shares issuable pursuant to my exercise of the SARs (the “Shares”) are to be registered (Check one only):

 

o                                                in Purchaser’s name, or

 

o                                                in Purchaser’s name and the name of Purchaser’s spouse, as joint tenants with right of survivorship

 

Purchaser’s spouse’s name:

 

Spouse’s Social Security No.:           -        -

 

3.                                      Share Delivery.  If the Shares are to be delivered to Purchaser’s account at a brokerage firm, then please provide the following information (the Shares will not be delivered in “street name” under any circumstances).  If you leave this area blank, the Shares will be delivered in certificate form to Purchaser’s address on record:

 

	
Broker   name :                                               
    	
Broker   address :
    

 

Contact name :

 

Contact number : (        )         -

 

DTC number :

 

4.                                      Representations of Purchaser.  Purchaser acknowledges that Purchaser has received, read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

 

 

5.                                      Rights as Shareholder. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares, notwithstanding the exercise of the SARs.  The Shares so acquired shall be issued to the Purchaser as soon as practicable after exercise of the SARs.  No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in the Plan.

 

6.                                      Market Stand-off Agreement.  In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act, Purchaser agrees not to sell, make any short sale of, loan, hypothecate, pledge, grant any SARs for the purchase of, or otherwise dispose or transfer for value or agree to engage in any of the foregoing transactions with respect to any shares of Stock without the prior written consent of the Company or its underwriters, for such period of time after the effective date of such registration statement as may be requested by the Company or the underwriters (not to exceed 180 days in length).

 

7.                                      Stock Ownership Requirements.  You are required to continue to hold fifty percent (50%) of the Shares acquired pursuant to the SAR Agreement (such 50% to be determined after reducing the Shares covered by the SAR Agreement by the number of shares of Stock equal in value to the amount required to be withheld to pay taxes in connection with the purchase under this Notice) until the number of Shares owned by you equals or exceeds                 .

 

8.                                      Stop-Transfer Notices.  Purchaser agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

9.                                      Tax Consultation. Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares.  Purchaser represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice.

 

10.                               Entire Agreement; Governing Law.  The Plan and the SAR Agreement are incorporated herein by reference.  This Agreement, the Plan and the SAR Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser.

 

2

 

	
Agreed   and Accepted:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

Purchaser’s Signature

 

Purchaser’s Social Security No.:          -      -

 

Purchaser’s Address:

 

 

	
Company’s   Use:
    	
 
    	
 
    
	
 
    	
 
    	
Vesting   Requirement Verified  o
    
	
Date   Received
    	
 
    	
 
    
	
 
    	
 
    	
Holding   Requirement Verified  o
    
	
Official’s   Initials
    	
 
    	
 
    

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]