Document:

EXHIBIT 10.7  

        THIS
AGREEMENT MADE AS OF THE 20th day of December, 2002. 

BETWEEN:  

ALAIN BLACKBURN, of the City of Oakville, in the

Province of Ontario, 

(hereinafter
called the "Employee") 

OF THE FIRST PART

— and —

AGNICO-EAGLE MINES LIMITED, a corporation

Incorporated under the laws of the Province of Ontario, 

(hereinafter
called the "Corporation") 

OF THE SECOND PART

        WHEREAS the Employee is presently serving the Corporation in the capacity of Vice President, Exploration; 

        AND WHEREAS the parties wish to enter into this Agreement; 

 

        NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the mutual covenants and agreements herein contained and for other good
and valuable consideration, the receipt, adequacy and sufficiency whereof is hereby acknowledged, the parties agree as follows: 

1.     EMPLOYMENT  

        The Employee shall serve the Corporation as its Vice President, Exploration or in any other capacity bearing similar responsibilities, and he shall perform the
duties and exercise the powers as are usually performed and exercised by such an officer, subject always to the control and direction of the Chief Executive Officer and Chief Operating Officer of the
Corporation. 

2.     BEST EFFORTS  

        The Employee shall faithfully serve the Corporation during the continuance of this employment as described in paragraph 1 hereof and shall use his best
efforts and ability to promote the interests of the Corporation 

3.     PLACE OF EMPLOYMENT  

        The Employee shall be based in the City of Toronto, in the Province of Ontario, and unless agreed by the Employee the Corporation shall not transfer him to any
place outside the City of Toronto or its environs to perform his duties under the terms of the Agreement. 

4.     REMUNERATION  

	(a)
	In
consideration of the services to be rendered to the Corporation by the Employee pursuant to paragraph 1 hereof, the Corporation shall pay the Employee a salary of One
Hundred and Seventy Five Thousand ($175,000) per annum, payable in fifty-two (52) equal weekly installments in arrears. The annual salary shall be reviewed and adjusted on an annual
basis by the Chief Executive Officer, Chief Operating Officer and the Compensation Committee of the Board of Directors, but in no event shall such review and adjustment result in a reduction and/or
diminution of the stated remuneration. 

2

 

	(b)
	In
the event the Employee shall die at any time during the currency of his employment as described herein, the Corporation shall pay to his estate the equivalent of the Employee's
last three (3) months of salary, the payment of which sum shall operate as a full and complete release of any obligations which the Corporation may have to the Employee and to the Employee's
estate provided that at the time of death, the Corporation was current with all of its debts, duties and obligations to the Employee. In no event, however, shall the Corporation be liable to the
estate of the Employee beyond monies outstanding to him at his death, plus an additional three (3) months of salary.

	(c)
	The
Corporation, may at its discretion, pay to the Employee an annual bonus, the amount of which shall be determined by the Chief Executive Officer and Chief Operating Officer based
on the Employee's performance and the performance of the Corporation. 

5.     HEALTH AND WELFARE  

        The Employee shall be entitled to participate in such group benefit, share purchase and stock option plans as are available to the Corporation's executive
employees from time to time including, without limitation, dental, drug and medical plan, life, disability and accident insurance and pension plan. 

6.     AUTOMOBILE AND BUSINESS EXPENSES  

        The Employee shall be provided with an automobile allowance of One Thousand Dollars ($1,000) per month and shall further be reimbursed for all business expenses
actually and properly incurred by him in connection with his duties under paragraph 1 herein, upon furnishing to the Corporation statements and vouchers in respect of expenses so incurred, as
and when required to do so by the Corporation. 

7.     VACATION  

        During the employment of the Employee as described in paragraph 1 herein, the Employee shall from time to time be entitled to a vacation of five
(5) weeks in each calendar year, such vacation not to be cumulative. Such vacation shall be taken at such times as the Employee, in consultation with the Chief Operating Officer may determine,
having regard to the operations of the Corporation. 

8.     STOCK OPTION  

        The Employee shall be granted stock options from time to time as determined by the Compensation Committee of the Corporation which options will be in accordance
with the Corporation's Stock Option Plan. 

3

 

9.     TERMINATION  

	a)
	Termination for Cause

The
Corporation may terminate the Employee's employment for cause at any time in which case the Employee will not be entitled to any notice or severance payments or compensation. Cause to terminate
the Employee's employment shall mean: 

	(i)
	the
willful and continued failure by the Employee to substantially perform his duties, after demand for substantial performance as delivered by the Corporation that
specifically identifies the manner in which the Corporation believes the Employee has not substantially performed his duties;

	(ii)
	the
willful engaging by the Employee of misconduct which is materially injurious to the Corporation, monetarily or otherwise; or

	(iii)
	the
willful violation by the Employee of the provisions of this Agreement. 

Notwithstanding
the foregoing, the Employee shall not be deemed to have been terminated for cause unless there shall have been delivered to the Employee a copy of a notice of termination from the
Corporation after reasonable written notice to the Employee and an opportunity for the Employee, together with counsel for the Employee, to be heard before the Board of Directors of the Corporation,
accompanied by a resolution duly adopted by the Board of Directors of the Corporation then in office, who find that in the good faith opinion of such directors, the Employee was guilty of conduct set
forth above and shall set forth in particular detail the facts and circumstances claimed to provide a basis for termination of employment under the provisions so indicated. 

	b)
	Termination Due to Disability

At
its discretion, the Corporation may terminate the Employee's employment at any time because of his Permanent Disability. For the purpose of this Agreement, "Permanent Disability" means any illness
or injury, mental or physical disability or incapacity, as determined by a legally qualified medical practitioner selected by the Employee and the Corporation, which (i) prevents the Employee
from performing his duties under paragraph 1 hereof to a substantial degree and (ii) has existed for a period or periods aggregating one hundred and eighty-three (183) days in any
period of three hundred and sixty-five (365) days. In such case, in addition to any disability benefits received by the Employee following the termination of his employment, the
Employee shall be paid a severance payment equal to his annual salary at the time of termination, payable in lump sum within ten (10) business days following the date of the termination of the
Employee's employment. In addition, the then current group insurance benefits shall be continued for the duration of the disability provided the employee is in receipt of long term disability benefits
under the Agnico-Eagle Group program. This shall operate as complete and total release of any obligations which the Corporation may have with respect to this Agreement. 

4

 

	c)
	Termination Without Cause

Upon
the termination of the Employee by the Corporation other than for cause, death or disability, or upon resignation by the Employee for Good Reason as defined herein, the Employee will be entitled
to receive a severance payment equal to Two and a One-Half (21/2) times his annual salary at the date of termination, plus an amount equal to Two and a One-Half
(21/2) times Employee's annual bonus, based on the bonus paid to the Employee in the last fiscal year preceding termination. Such amounts will be payable in a lump sum within
ten(10) business days following the date of the termination of the Employee's employment or, if the Employee so chooses, over a one year period in equal monthly installments, provided such
choice is made and communicated to the Corporation within five(5) business days following the date of termination. In addition, the Employee will also be entitled to receive a continuation of
benefits if permissible by the courier pursuant to the terms of the applicable benefit plans, and monthly car allowance, for up to one year or until such earlier date on which the Employee commences
new employment or, if so requested by the Employee, the Employee can elect to receive an amount equal to the Corporation's cost in providing such benefits. 

The
amounts payable by the Corporation to the Employee pursuant to paragraph 9(c) shall not be reduced by any amounts earned by the Employee after the date of termination of his
employment. 

For
the purposes of this Agreement "Good Reason" shall mean, without the Employee's express written consent, any of the following: 

	(i)
	the
assignment of the Employee of any duties inconsistent with the Employee's status as Vice President, Exploration of the Corporation, or the Employee's removal from
such position, or a substantial alteration in the nature or status of the Employee's responsibilities;

	(ii)
	a
reduction by the Corporation in the Employee's base salary in effect on the date hereof as the same be increased from time to time or a failure by the Corporation to
increase the Employee's salary at a rate commensurate with that of the other key executives of the Corporation;

	(iii)
	the
relocation of the office of the Corporation where the Employee is employed, to a location more than fifty (50) miles away; 

5

 

	(iv)
	the
failure by the Corporation to continue to provide the Employee with benefits at least as favourable as those presently enjoyed by the Employee under any of the
Corporation's life insurance, medical, health and accident, disability, dental, drug, deferred compensation, pension, or savings plans, if any, in which the Employee is participating, or the failure
by the Corporation to provide the Employee with the number of paid vacation days to which the Employee is entitled on the basis of years of service in accordance with the Corporation's normal vacation
policy;

	(v)
	the
change of control of the Corporation which shall be deemed to have occurred if:

	(1)
	any
person or entity acquires, or a combination of persons or entities acquire, either directly or indirectly, more than fifty percent (50%) of the voting securities of the
Corporation, whether through the acquisition of previously issued and outstanding voting securities, or voting securities that have not been previously issued, or any combination thereof, or any other
transaction having a similar effect;

	(2)
	the
corporation amalgamates, consolidates or merges with any other corporation unless amalgamation, consolidation or merger is with a subsidiary, affiliate or any other corporation in
which the Corporation holds at least forty percent (40%) of the voting securities;

	(3)
	the
Corporation sells, leases or otherwise disposes of substantially all of its assets unless such sale, lease or disposition is to a subsidiary, affiliate or any other corporation in
which the Corporation holds at least forty percent (40%) of the voting securities; or

	(4)
	the
Corporation enters into a transaction or arrangement which would have the same effects as the transaction referred to in
subsections (v)(1), (2) or (3) hereof. 

        In
the event of termination of the Employee without cause or resignation by the Employee for Good Reason then, in addition to the severance payment as provided in
paragraph 9(c) hereof, the Employee shall be entitled to employment search assistance to secure other comparable employment for a period not to exceed one (1) year or until such
comparable employment is found, whichever is the sooner, with the fees for such assistance paid by the Corporation. 

6

 

        If
the Employee dies prior to the receiving all or any amount or amounts payable under paragraph 9(c), the Corporation covenants and agrees that it will pay the said amount
or amounts owing to his estate. 

	d)
	Resignation by Employee

In
the event of the Employee's resignation other than for Good Reason, he will be entitled only to the applicable remuneration and benefits provided for in this Agreement to the effective date of the
said resignation. 

10.   NOTICES  

        Any notice in writing required or permitted to be given to the Employee hereunder shall be sufficiently given if delivered to the Employee personally or mailed by
registered mail, postage, prepaid, addressed: 

Mr. Alain
Blackburn

1147 Pilgrims Way

Oakville, Ontario

L6M 1H3 

        Any
notice in writing required or permitted to be given to the Corporation hereunder shall be given by registered mail, postage, prepaid, addressed to the Corporation at: 

Agnico-Eagle
Mines Limited

145 King Street East, Suite 500

Toronto, ON M5C 2Y7 

Attention:
Chief Executive Officer and Chief Operating Officer 

        Any
notice mailed as aforesaid shall be deemed to have been received on the fourth business day following the date of mailing. 

        Any
such address for the giving of notices hereunder may be changed by notice in writing as provided herein. 

11.   GOVERNING LAW  

        This Agreement shall be deemed to have been made in and shall be construed in accordance with the laws of the Province of Ontario and the courts of Ontario shall
have exclusive jurisdiction in connection therewith. 

7

 

12.   ENTIRE AGREEMENT  

        This Agreement constitutes the entire agreement operative between the parties in connection with the Employee's employment and supersedes all prior agreements and
understandings. No modification or amendment will be effective unless it is in writing and signed by the parties hereto. 

13.   SUCCESSORS AND ASSIGNS  

        This Agreement shall ensure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and
assigns. 

        IN WITNESS WHEREOF the parties have executed this Agreement. 

	

SIGNED, SEALED AND DELIVERED

in the presence of:	
 	

)

)

)

)

)	
 	

/s/ ALAIN BLACKBURN
ALAIN BLACKBURN
	

 	
 	

 	
 	
AGNICO-EAGLE MINES LIMITED
	

 	
 	

 	
 	
Per:	
 	

/s/ SEAN BOYD

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EXHIBIT 10.8  

 
 

RETIREMENT COMPENSATION ARRANGEMENT PLAN
  
    FOR SEAN BOYD    
    

THIS AGREEMENT is made as of the 1st day of July, 1997, 

BETWEEN:  

AGNICO-EAGLE MINES LIMITED, a company incorporated under the laws of the Province of Ontario and having its head office in the city of Toronto, Ontario, 

(the "Company")

— and —

SEAN BOYD, an executive employee of the Company residing in Newmarket, Ontario, 

(the "Executive").

WHEREAS in order to retain the valuable services of the Executive and to induce the Executive to continue in employment with the Company, the Company
wishes to provide and secure excess pension benefits to the Executive (to the extent not already provided under the Company's registered pension plan) under this Retirement Compensation
Arrangement Plan for Sean Boyd (the "RCA Plan"). 

AND WHEREAS the intent of this Agreement is that if the Executive faithfully, honestly and diligently serves the Company, devotes his full time, labour,
skill and attention to such employment, uses his best efforts to promote the interest and welfare of the Company, the Company shall provide him with excess pension benefits. 

NOW THEREFORE in consideration of these premises and the mutual covenants herein contained and in consideration of the services to be performed by the
Executive as hereinafter mentioned, the Executive and the Company shall covenant and agree as follows: 

1

 
SECTION 1  

INTERPRETATION  

1.1   Definitions  

Unless
a different meaning is expressly required by the context, in this Agreement, terms have the meanings ascribed to them below. 

	•
	"Actuary" shall mean Buck Consultants Limited or such other person or firm from time to time retained by the Company
(or, following an event pursuant to Section 2.5 if it is necessary, the Trustee) to provide actuarial services as may be required from time to time for the purposes of the Trust Fund or
the Plan, who is (or, in the case of a firm, one of whose employees or members is) a Fellow of the Canadian Institute of Actuaries.

	•
	"Basic Pension Benefit" shall mean the normal form of pension benefit payable at the Executive's Normal Retirement Date under
the Basic Pension Plan and funded by the Company, and shall include the amount of any portion of the pension benefit earned by the Executive which has been assigned to or is required to be held for
the benefit of the Spouse or former Spouse of the Executive.

	•
	"Basic Pension Plan" shall mean the Agnico-Eagle Mines Limited Employees Pension Plan, as amended by the Company from time to
time, and shall include any successor or substitute plan or plans of the Company.

	•
	"Change of Control" shall mean a change of control of the Company which shall be deemed to have occurred at such time as
(i) any Person or group of Related Persons becomes the beneficial owner, directly or indirectly, of 25% or more of the Voting Shares of the Company (including voting shares issuable upon
conversion of any other outstanding securities of the Company) or (ii) Directors who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Board.

	•
	"Company" shall mean Agnico-Eagle Mines Limited and any subsidiary, associated, predecessor and successor companies as may be
designated from time to time.

	•
	"Contributions" shall mean, as the context permits, the amounts required (i) to purchase a Letter of Credit to cover
the Company's liability for Excess Benefits for each Year during the term of this RCA Plan, and (ii) to pay the refundable tax exigible under the Income Tax Act. Fifty percent of the
Contributions for any Year shall suffice, and shall be applied by the RCA Trustee to purchase the Letter of Credit for the following year; and 50% of such Contributions shall represent the "refundable
tax" required to be withheld and remitted to the Receiver General of Canada pursuant to the Income Tax Act. 

2

 

	•
	"Effective Date" shall mean July 1, 1997.

	•
	"Early Retirement Date", for purposes of this RCA Plan, shall mean, at the Executive's option, the first day of any month
coincident with or next following the Executive's fifty-fifth birthday, but not after his sixtieth birthday.

	•
	"Earnings" shall have the same meaning as defined in the Basic Pension Plan. Specifically, Earnings shall mean all basic
remuneration paid by the Company to the Executive for work done or services performed but not including the value of any benefits, bonuses, overtime pay, automobile allowances, entertainment
allowances or other like allowances or unusual payments, all as determined by the Company. Earnings shall also include Prescribed Compensation for purposes of determining the Executive's pension
adjustment as defined in the Regulations under the Income Tax Act (Canada).

	•
	"Excess Benefits" shall mean the projected annual pension benefit, in the same normal form as in the Basic Pension Plan,
payable on or after the Executive's Normal Retirement Date, as calculated and certified by the Actuary, which shall be determined as the excess of (a) over (b), where:

	(a)
	is
2% of the Final Average Earnings multiplied by the Executive's continuous service with the Company projected to Normal Retirement Date (in completed years and months); and

	(b)
	is
the annual amount of actual pension benefit payable under the Basic Pension Plan and funded by the Company.

	•
	"Executive" shall mean Sean Boyd.

	•
	"Final Average Earnings" shall mean the annual average of the last three consecutive calendar years Earnings of the Executive
prior to the Executive's Normal Retirement Date, projected at the rate of three percent per annum, compounded annually, to the Executive's Normal Retirement Date.

	•
	"Income Tax Act" shall mean the Income Tax Act (Canada) and the
regulations thereunder, as amended from time to time.

	•
	"Incumbent Board" shall mean those persons who are Directors of the Company at the Effective Date of this RCA Plan, and shall
include any person who becomes a Director subsequent to the date hereof and whose election, or nomination for election, by the Company's shareholders, was approved by the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination). 

3

 

	•
	"Letter of Credit" shall mean, as the context permits, the initial letter of credit or whatever succeeding renewal or
replacement letter of credit is in force and effect at the relevant time. Each and every letter of credit shall:

	(a)
	be
purchased from a Schedule I Bank under the Bank Act (Canada);

	(b)
	be
irrevocable and standby;

	(c)
	name
the RCA Trustee as the beneficiary permitted to draw down (an amount up to the face amount) on the letter of credit following an event pursuant to Section 2.5;

	(d)
	with
the exception of the initial letter of credit, be for a term of one year, expiring on June 30; and

	(e)
	have
a face amount equal to 110% of the Company's liability for Excess Benefits in respect of the Executive, as certified by the Actuary.

	•
	"Normal Retirement Date", for purposes of this RCA Plan, shall mean the first day of the month coincident with or next
following the Executive's sixtieth birthday or such later date as is mutually agreed to by the Company and the Executive.

	•
	"Person" shall mean an individual, partnership, association, body corporate, trustee, executor, administrator or legal
representative, other than the Company or a wholly-owned subsidiary of the Company.

	•
	"Qualifying Bank" shall mean a Schedule I Bank under the Bank Act
(Canada).

	•
	"RCA Plan" shall mean this Retirement Compensation Arrangement Plan, as the same may be amended from time to time.

	•
	"RCA Trust" shall mean the Retirement Compensation Arrangement Plan Trust.

	•
	"RCA Trust Agreement" shall mean the agreement establishing the RCA Trust, as the same may be amended from time to time. 

4

 

	•
	"RCA Trustee" shall mean the trust company or any successor RCA Trustee appointed pursuant to the RCA Trust Agreement.

	•
	"Related Persons" shall have the same meaning as defined in the Income Tax Act.

	•
	"Renewal Date" shall mean the date that is one month before the date on which the Letter of Credit or any replacement thereof
is due to expire.

	•
	"Spouse" shall have the same meaning as defined in the Basic Pension Plan.

	•
	"Voting Shares" shall mean the issued and outstanding shares of any class or classes of shares of the Company which carry
voting rights in all circumstances.

	•
	"Year" shall mean a twelve month period commencing on the first day of July and ending on the 30th day of June. 

Words
importing the singular shall include the plural and vice versa and words importing the masculine gender shall extend to and include the feminine gender and/or body corporate, unless the context
in which a particular word is used clearly requires otherwise. 

All
other words and expressions in this Agreement that are defined for purposes of the Basic Pension Plan shall be given an interpretation that is consistent with the meaning ascribed to them in the
Basic Pension Plan. 

1.2   Governing Law  

This
Agreement shall be governed by and interpreted in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein and the courts of the Province of Ontario shall be
the sole and proper forum with respect to any suits brought with respect to this Agreement. 

1.3   Records  

Wherever
the records of the Company are used for the purposes of this Agreement, such records shall be conclusive of the facts for which they are recommended. 

1.4   Prior Agreements  

This
Agreement supersedes and replaces all prior agreements, whether oral or written, of the parties hereto in connection with the subject matter hereof and the Executive hereby agrees that such
agreements are hereby cancelled and of no further effect. 

5

 

1.5   Interpretation of Agreement  

The
Executive acknowledges that questions requiring the interpretation of this Agreement may arise from time to time, and the Executive agrees that the Company, in consultation with the Actuary, shall
have the right to interpret and perform this Agreement in a manner consistent with the efficient administration of this and similar agreements in effect from time to time with executives of the
Company, and such interpretation or performance, fairly and reasonably done, shall be final and conclusive as between the parties. 

1.6   Effect of Agreement  

Nothing
herein shall constitute an agreement or undertaking by the Executive to remain in the employ of the Company for any specific period of time, nor an agreement or undertaking by the Company to
employ the Executive for any specific period of time. 

6

 
SECTION 2  

CREATION AND PURPOSE OF THE RCA PLAN  

2.1   Purpose of the RCA Plan  

The
purpose of the RCA Plan is to: 

	(a)
	provide
the Executive with Excess Benefits on retirement, termination by the Company without cause, disability or death prior to retirement in a manner that, as closely as possible on
an after-tax basis, the Executive will receive Excess Benefits as if such Excess Benefits were provided directly from the registered Basic Pension Plan; and

	(b)
	provide
security for payment by the Company of Excess Benefits. 

At
any given time, the main asset of the RCA Trust shall be the current Letter of Credit. 

2.2   Funding the RCA Trust  

In
conjunction with the execution of the RCA Trust Agreement, the Company shall make a Contribution to enable the RCA Trustee to purchase the initial Letter of Credit; and thereafter, on or before
each Renewal Date, the Company shall make a Contribution to enable the RCA Trustee to purchase a renewal or replacement Letter of Credit. 

2.3   Letter of Credit  

In
conjunction with the execution and delivery of the RCA Trust Agreement, the RCA Trustee shall purchase the initial Letter of Credit in an amount sufficient to cover 110% of the Company's liability
for Excess Benefits for the remainder of the Year to June 30, 1998. Prior to the Renewal Date of the initial Letter of Credit, and thereafter prior to the Renewal Date of each succeeding Letter
of Credit, the RCA Trustee shall purchase a renewal or replacement Letter of Credit in an amount sufficient to cover 110% of the Company's liability for Excess Benefits for the following Year. The
Actuary shall make the actuarial determination of the Company's liability for Excess Benefits for the remainder of the Year to June 30, 1998 and for any and all Years thereafter, such
determination to be made at least 60 days prior to the Renewal Date. 

7

 

2.4   Purchase of Letters of Credit  

If
and provided that it has funds to do so, on or before each Renewal Date the RCA Trustee shall pay to the Qualifying Bank which has agreed to issue the Letter of Credit for the next year the premium
for such Letter of Credit; such premium to be paid from monies then held in the RCA Trust and/or Contributions made by the Company. 

2.5   Demand on Letter of Credit  

Upon
the following events occurring, the RCA Trustee shall (i) present the Letter of Credit (together with such other documentation as may be required pursuant to the terms of the Letter of
Credit) to the Qualifying Bank for payment; and (ii) upon receipt of payment from the Qualifying Bank, and in consultation with the Actuary, immediately purchase an annuity contract (that would
qualify as a prescribed annuity contract within the meaning of the Income Tax Act in the hands of the Executive) to provide for payment of the Excess Benefits to the Executive and shall assign
such annuity contract to the Executive: 

	(a)
	the
Company fails to cause the Actuary to prepare and deliver to the Trustee a report at least 60 days prior to the expiration of the then current Letter of Credit setting out
the estimated actuarial present value of the accrued liabilities in respect of the Executive's benefits under this RCA Plan and the future administrative costs of this RCA Plan and the RCA Trust;

	(b)
	the
Company fails to either

	(i)
	cause
an existing Letter of Credit to be renewed or replaced in accordance with the RCA Trust Agreement at least 15 days prior to the expiration of the Letter of
Credit, or

	(ii)
	deposit
with the RCA Trustee an amount in cash or kind equal to 110% of the accrued liabilities in respect of the Executive's benefits under the RCA Plan as certified
by the Actuary;

	(c)
	the
Company fails to contribute to the RCA Trust an amount sufficient, after the payment of applicable taxes, to permit the RCA Trustee to obtain the replacement of the then current
Letter of Credit;

	(d)
	the
Company fails to make a payment to the RCA Trustee of all expenses incurred under section 4.07 of the RCA Trust Agreement after 30 days following delivery to the
Company by the RCA Trustee of a written notice from the RCA Trustee that such payment is overdue; 

8

 

	(e)
	the
Executive has informed the Trustee (and the Trustee acting reasonably, has confirmed such information to its own satisfaction) or the Trustee otherwise has knowledge, in
each case, that

	(i)
	the
Executive has retired from the Company at his Early Retirement Date, or

	(ii)
	the
Executive has retired from the Company on or after his Normal Retirement Date, or

	(iii)
	the
Executive has been terminated by the Company without cause, or

	(iv)
	the
Executive has been laid-off by the Company; or

	(f)
	the
Executive has informed the Trustee (and the Trustee, relying on sources generally available to the public and acting reasonably, has confirmed such information to its own
satisfaction) or the Trustee otherwise has knowledge, in each case, that

	(i)
	the
Company is insolvent within the meaning of the Canada Business Corporations Act,

	(ii)
	the
Company has commenced a proceeding, (including, without limitation, the filing of a petition or an assignment or a proposal or a notice of intention to make a
proposal) under the Companies' Creditors Arrangement Act (Canada),

	(iii)
	the
Company has suffered the appointment of any receiver or trustee, or

	(iv)
	there
has been a Change of Control of the Company. 

Fifty
percent of the payment from the Letter of Credit shall be applied by the RCA Trustee to purchase the annuity contract noted above; and 50% of such payment from the Letter of Credit shall
represent the "refundable tax" required to be withheld and remitted to the Receiver General of Canada pursuant to the Income Tax Act. 

2.6   RCA Plan Entitlement  

The
Executive acknowledges that the RCA Trustee may be obliged to reclaim part or all of the "refundable tax" in order to make any required disbursements to the Executive or any other person entitled
to a benefit from this RCA Plan. The Executive acknowledges that the full amount of the interim or final disbursement may be delayed until such time as the RCA Trustee has received the "refundable
tax" from the government of Canada, provided that the RCA Trustee may, with the consent of the Company, borrow all or such portion of the amount of the "refundable tax" in order to complete the
required disbursement or to accelerate the payment of it and the Company agrees to pay the cost of such borrowing. 

9

   SECTION 3  

OTHER BENEFITS  

3.1   Disability Benefit  

If
the Executive is eligible to receive payment of disability benefits under a long term disability plan covering employees of the Company, notwithstanding any termination of the Executive's
employment with the Company as a result of his disability, the Executive shall be deemed to continue to accrue further service for the purpose of this RCA Plan until the Executive ceases to be
eligible to receive payment of such long term disability benefits, at which time, if the Executive does not return to work, the Executive shall be entitled to the Excess Benefits assuming the
Executive had retired on the day that the Executive ceases to be eligible to receive payment of such long term disability benefits, without any further projection for continuous service or Earnings
(and for purposes of calculating the benefit payable, "Earnings" during a period of such disability shall be as set out in the Basic Pension Plan). 

3.2   Early Retirement Benefit  

If
the Executive retires on his Early Retirement Date but prior to his Normal Retirement Date, the Executive shall be entitled to the Excess Benefits commencing on his Early Retirement Date, without
any further projection for continuous service or Earnings. 

3.3   Death Before Normal Retirement Date  

If
the Executive dies before his Normal Retirement Date, the Executive's Spouse, or if there is no Spouse, the Executive's designated beneficiary or estate shall be entitled to a lump sum payment
equal to the liability for the Excess Benefits, as determined by the Actuary. 

3.4   Death After Normal Retirement Date  

If
the Executive dies after his Normal Retirement Date, a death benefit shall be paid in accordance with the form of benefit elected or deemed to be elected by the Executive for the payment of the
Excess Benefits. 

3.5   Benefit Conditional on Long Service  

The
Executive shall not be entitled to any benefit hereunder whatsoever in the event that the Executive's employment with the Company should cease as a result of: 

10

 

	(a)
	termination
by the Company for cause prior to the Executive's fifty-fifth birthday; or

	(b)
	voluntary
termination other than retirement on the Executive's Early Retirement Date or retirement on or after the Executive's Normal Retirement Date. 

No
benefit shall be paid or payable under this Agreement if the Executive is in breach of any covenant contained in Section 4. 

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SECTION 4  

OBLIGATIONS OF THE EXECUTIVE  

4.1   Employment Obligations  

As
long as employment with the Company continues, the Executive agrees to faithfully, honestly and diligently serve the Company and to devote his full time, labour, skill and attention to such
employment and to use his best efforts to promote the interests and welfare of the Company. The Executive shall exercise and carry out all such powers and duties and shall observe all such directions
as the board of directors of the Company or the executive officers of the Company from time to time confer or impose upon the Executive. 

4.2   Confidentiality and Theft  

If
at any time, the Executive uses or discloses trade secrets or information that is proprietary and confidential to the Company, embezzles or steals cash or other property of the Company, the Company
shall have no further obligation to make the payments otherwise required under this Agreement and all rights of the Executive or any person entitled to a payment hereunder shall immediately cease and
terminate. Notwithstanding the foregoing, nothing herein shall prevent disclosure of information which is publicly available or which is required to be disclosed under appropriate statues, rules of
law or legal process. 

4.3   Breach of Executive's Covenant  

Notwithstanding
anything herein contained to the contrary, all obligations of the Company under this Agreement are expressly made conditional upon the due observance and performance by the Executive
of all the covenants contained in this Section 4. If the Executive fails to fulfil and carry out any such covenants, all liability and obligations of the Company and all the Executive's rights
and entitlements hereunder shall immediately cease and terminate and this Agreement shall thereafter be of no further effect. 

12

 
SECTION 5  

GENERAL  

5.1   Amendment  

	(a)
	Notwithstanding
anything to the contrary herein, the Company, with the consent of the Executive, reserves the right to amend this RCA Plan in whole or in part, at any time. In
particular, it is recognized that certain provisions of this RCA Plan are not meant to operate in connection with or correspond to provisions of the Basic Pension Plan. Therefore, without restricting
the generality of the foregoing, in the event of future amendment to the Basic Pension Plan, the Company, on written notice to the Executive, reserves the right to make consequential amendments to
this RCA Plan. Any amendment to this RCA Plan shall be communicated in writing by the Company to the Executive;

	(b)
	The
Company, on written notice to the Executive, may amend this RCA Plan as a result of a change in income tax or other applicable legislation, or interpretation thereof, and such
amendment may take effect as of the same effective date as the change in legislation, or interpretation thereof;

	(c)
	Subject
to paragraph (b) of this Section 5.1, no amendment to this RCA Plan by the Company pursuant to this Section 5.1, can have the effect of impairing
the provision of security for payment by the Company of the Excess Benefits, 

5.2   Termination  

This
RCA Plan may, with the consultation of the Executive, be terminated at any time by the Company, subject to the Company maintaining arrangements to adequately secure the Excess Benefits, whether
by a Letter of Credit or otherwise, which such arrangements are acceptable to the Executive, acting reasonably. 

Upon
the termination of this RCA Plan and the purchase of an annuity contract to provide for the Excess Benefits or the payment of any benefits provided in Section 3, the RCA Trustee shall
wind-up and terminate the RCA Trust as follows: 

	(a)
	provide
for a final accounting for the purposes of the termination of the RCA Trust;

	(b)
	file
final information and tax returns under the Income Tax Act and obtain any necessary clearance certificates and any balance of "refundable tax" owing to the RCA Trust;

	(c)
	pay
all proper amounts payable out of the RCA Trust; and 

13

 

	(d)
	distribute
the balance, if any, remaining in the RCA Trust in accordance with the RCA Trust Agreement. 

For
greater certainty, after all of the obligations of the RCA Trust have been satisfied, the RCA Trustee shall remit to the Company for its absolute use and benefit, the balance of the RCA Trust. 

5.3   Information to be Provided Before Benefits Paid  

Payment
of the Excess Benefits or other benefits from this RCA Plan shall not be made until the person entitled to the payment delivers to the RCA Trustee reasonable proof or evidence of the facts
necessary to calculate the Excess Benefits or other benefits. 

5.4   Interest Not Transferable or Assignable  

Except
with respect to withholding tax or as otherwise required by Section 5.6 of this Agreement, all benefits and entitlements provided hereunder are for the use and benefit of the Executive
and are not capable of being assigned, sold, transferred, pledged, hypothecated, given as security or otherwise alienated or encumbered during the lifetime of the Executive, and shall not be subject
to attachment, garnishment, set-off, deduction, execution or seizure by or on behalf of the creditors of the person entitled to payment hereunder. For greater certainty, the Company shall
not, as a result of this Agreement, be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person entitled to a payment hereunder. 

5.5   Incompetence  

If,
in the opinion of the Company, any person receiving or entitled to receive a benefit under this Agreement is, as a result of physical or mental infirmity, incapable of managing his affairs, and no
guardian, committee or other representative of the estate of such a person has been duly appointed by a court of competent jurisdiction, the Company may, on the advice of competent legal counsel,
authorize any payment to which the person is entitled, to be made to his Spouse, child or other person on his behalf or to a court of competent jurisdiction and such payment shall be a complete
discharge of the obligation under this Agreement to make such payment. The reasonable expenses incurred by the Company in order to effect payment shall be paid by the Company. 

14

 

5.6   Payments Subject to Tax Withholding, Set-Offs, Etc.  

The
Company may require a retention by way of deduction or set-off out of any amount that may be or is payable under this Agreement: 

	(a)
	if
the person entitled to payment, or the Executive, is indebted to the Company at the time payment is made;

	(b)
	a
statute so provides; or

	(c)
	a
court order so requires. 

The
amount to be set-off or deducted shall not exceed the amount of the indebtedness plus interest or the amount specified in the statute or court order. 

5.7   Severability  

If
any provision of this RCA Plan is ever held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of this RCA Plan, and this RCA Plan shall be
construed and enforced as if such illegal or invalid provision had never formed part hereof. 

5.8   No Enlargement of Employment Right  

Nothing
in this Agreement shall be construed to give to the Executive or to any person claiming through the Executive any right, title or interest in or to any assets, profits, earnings, or property
of the Company except as specifically provided herein. This Agreement does not enlarge any rights which the Executive may have as an employee apart from this Agreement. If this Agreement is terminated
in whole or in part, or any provision of benefits under this Agreement is merged or consolidated with the provision of benefits under any other agreement, or if the employment of the Executive is
terminated or if his employment status changes, the Executive shall have only such rights as are specifically defined and provided for in this Agreement, subject to any statutory requirements which
may apply to this Agreement at any time. 

5.9   Termination of Employment  

The
Executive agrees that nothing herein contained shall prevent the Company from terminating the Executive's employment with the Company at any time with or without cause. 

15

 

5.10 Notice  

Any
notice or other communication required or permitted hereunder shall be in writing and shall be effectively given if delivered personally, sent by registered mail, postage prepaid, or by facsimile
or other means of electronic communication (if, in the case of the Executive, a facsimile number has been provided) addressed: 

	(i)
	If
to the Executive, to: 

Mr. Sean Boyd

1 Blue Ridge Trail

R.R. #3

Newmarket, Ontario

L3Y 4W3

	(ii)
	If
to the Company, to: 

Agnico-Eagle Mines Limited

401 Bay Street, Suite 2302

Toronto, Ontario

M5H 2Y4

Attention: Mr. Barry Landen, Vice-President and Corporate Secretary

Facsimile: (416) 367-4681

5.11 Binding Effect  

Subject
to the foregoing, this Agreement shall enure to the benefit of and be binding upon both the Executive, his heirs and legal personal representatives and the Company, its successors and assigns. 

*
* * * * * 

IN WITNESS WHEREOF the parties have duly executed and delivered this Agreement this 10th day of December, 1997 with effect as of the Effective Date. 

	 	 	AGNICO-EAGLE MINES LIMITED
	
 	
 	

By:	
 	

                

	
 	
 	

 	
 	

	

        
Witness	
 	

/s/ SEAN BOYD
Sean Boyd

16

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RETIREMENT COMPENSATION ARRANGEMENT PLAN FOR SEAN BOYD

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