Document:

Exhibit 10.2

 

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of January 7,
2010 by and among GOLDEN MINERALS COMPANY, a Delaware corporation (the “Company”), and SENTIENT GLOBAL RESOURCES FUND
III, L.P., a Cayman Islands exempted limited partnership, and SGRF III PARALLEL
I, L.P., a Cayman Islands exempted limited partnership (the “Buyers”).

 

RECITALS

 

A.                                   In connection with the Common Stock Purchase Agreement by and between the
Company and Buyers of even date herewith (the “Purchase Agreement”), the Company has agreed, upon the terms
and subject to the conditions of the Purchase Agreement, to issue and sell to
Buyers and Buyers have agreed to purchase, shares of the Company’s authorized
but unissued Common Stock (the “Shares”).

 

B.                                     To induce Buyers to execute
and deliver the Purchase Agreement, the Company has agreed to provide certain
registration rights under the U.S. Securities Act of 1933, as amended, and the rules and
regulations thereunder, and applicable state securities laws.

 

NOW, THEREFORE, in consideration of the
recitals and the mutual promises, representations, warranties, and covenants
set forth in this Agreement and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

 

AGREEMENT

 

SECTION 1.         Definitions.

 

In addition to the terms that are defined elsewhere in this Agreement,
the following terms shall have the following meanings:

 

“Affiliate” with
respect to any specified person, has the meaning specified in Rule 144.

 

“Common Stock”
means the Company’s common stock, par value $0.01 per share.

 

“Deferral Notice” has the meaning
specified in Section 3(d) hereof.

 

“Deferral Period” has the meaning
specified in Section 3(d) hereof.

 

“Effectiveness Deadline Date” has the
meaning specified in Section 2(a) hereof.

 

“Effectiveness Period” means the period
commencing on the date the Registration Statement becomes effective and ending
on the date that all Registrable Securities have ceased to be Registrable
Securities.

 

 

“Exchange Act” means the United States
Securities Exchange Act of 1934, as amended, and the rules and regulations
of the SEC promulgated thereunder.

 

“Filing Deadline Date” has the meaning
specified in Section 2(a) hereof.

 

“Holder” means Buyers, any transferee
or assignee thereof to whom Buyers assign their rights under this Agreement and
who agrees to become bound by the provisions of this Agreement in accordance
with Section 8(a) and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights under this Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section 8(a).

 

“Initial Resale Registration Statement”
has the meaning specified in Section 2(a) hereof.

 

“Material Event” has the meaning
specified in Section 3(d) hereof.

 

“Notice and Questionnaire” means a
written notice delivered to the Company containing substantially the
information called for by the Selling Securityholder Notice and Questionnaire
attached as Annex A to this Agreement.

 

“Notice Holder” means on any date, any
Holder that has delivered a Notice and Questionnaire to the Company on or prior
to such date.

 

“Prospectus” means the prospectus included
in any Registration Statement (including, without limitation, a prospectus that
discloses information previously omitted from a prospectus filed as part of an
effective registration statement in reliance upon Rule 415 promulgated
under the Securities Act), as amended or supplemented by any amendment or
prospectus supplement, including post-effective amendments, and all materials
incorporated by reference or explicitly deemed to be incorporated by reference
in such Prospectus.

 

“Purchase Agreement” has the meaning set
forth in the Recitals.

 

“Registrable Securities” means the Shares
issued to Buyers under the Purchase Agreement (including the Initial Shares,
the Pre-IPO Shares, the Subsequent Offering Shares and the Subsequent
Over-Allotment Shares, as such terms are defined in the Purchase Agreement) and
any security issued with respect thereto upon any stock dividend, split, merger
or similar event until, in the case of any such security, the earlier of (i) the
sale of such security pursuant to Rule 144 under the Securities Act or
pursuant to an effective registration statement registering such security for
resale, or (ii) the first date on which the Registrable Securities may be
sold pursuant to Rule 144 without being subject to the volume restrictions
set forth in Rule 144(e).

 

“Registration Statement” means any
registration statement of the Company that covers any of the Registrable
Securities pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits, and all materials
incorporated by reference or explicitly deemed to be incorporated by reference
in such registration statement.

 

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“Resale Registration Statement” means the
Initial Resale Registration Statement and any Subsequent Resale Registration
Statements.

 

“Rule 144” means Rule 144 under
the Securities Act, as such Rule may be amended from time to time, or any
similar or successor rule or regulation hereafter adopted by the SEC
having substantially the same effect as such Rule.

 

“SEC” means the United States Securities
and Exchange Commission and any successor agency.

 

“Securities Act” means the United States
Securities Act of 1933, as amended, and the rules and regulations
promulgated by the SEC thereunder.

 

“Shares” has the meaning set forth in the
Recitals.

 

“Subsequent Resale Registration Statement”
has the meaning specified in Section 2(b) hereof.

 

SECTION 2.         Resale Registration.

 

(a)                                  The Company shall prepare and
file or cause to be prepared and filed with the SEC no later than May 31,
2010 (the “Filing Deadline Date”) a Registration
Statement (the “Initial Resale Registration Statement”)
registering the resale from time to time by Buyers of all of the Registrable
Securities. The Initial Resale Registration Statement shall be on Form S-3
or another appropriate form permitting registration of such Registrable
Securities for resale by Buyers in accordance with the methods of distribution
set forth in the Initial Resale Registration Statement. The Company shall use
its commercially reasonable efforts to promptly respond to comments from the
SEC regarding the Initial Resale Registration Statement, to cause the Initial
Resale Registration Statement to be declared effective under the Securities Act
no later than September 30, 2010 (the “Effectiveness Deadline
Date”), and to keep the Initial Resale Registration Statement (or
any Subsequent Resale Registration Statement) continuously effective under the
Securities Act until the expiration of the Effectiveness Period.

 

(b)                                 If the Initial Resale
Registration Statement or any Subsequent Resale Registration Statement ceases
to be effective for any reason at any time during the Effectiveness Period, the
Company shall use its commercially reasonable efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event
shall within thirty (30) days of such cessation of effectiveness amend the
Resale Registration Statement in a manner reasonably expected by the Company to
obtain the withdrawal of the order suspending the effectiveness thereof, or
file an additional Resale Registration Statement covering all of the securities
that as of the date of such filing are Registrable Securities (a “Subsequent Resale Registration Statement”). If a Subsequent
Resale Registration Statement is filed, the Company shall use commercially
reasonable efforts to cause the Subsequent Resale Registration Statement to
become effective as promptly as is reasonably practicable after such filing or,
if filed during a Deferral 

 

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Period, after the expiration of such Deferral Period,
and to keep such Registration Statement (or Subsequent Resale Registration
Statement) continuously effective until the end of the Effectiveness Period.

 

(c)                                  The Company shall supplement
and amend the Initial or any Subsequent Resale Registration Statement if
required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Resale Registration Statement,
if required by the Securities Act.

 

(d)                                 Each Holder of Registrable
Securities agrees that if such Holder wishes to sell Registrable Securities
pursuant to a Resale Registration Statement and related Prospectus, it will do
so only in accordance with this Section 2(d), Section 3(d) and Section 4.
Each Holder of Registrable Securities wishing to sell Registrable Securities
pursuant to any Resale Registration Statement and related Prospectus agrees to
deliver a Notice and Questionnaire to the Company promptly upon becoming a
Holder and notify the Company of any change in such information at least five (5) business
days prior to the filing of the Initial Resale Registration Statement or
Subsequent Resale Registration Statement, as applicable. From and after the
date the Initial Resale Registration Statement is declared effective, the
Company shall, as promptly as is reasonably practicable after the date a fully
completed and legible Notice and Questionnaire is received by the Company, (i) if
required by applicable law, file with the SEC a post-effective amendment to the
Resale Registration Statement or prepare and, if required by applicable law,
file a supplement to the related Prospectus or a supplement or amendment to any
document incorporated therein by reference or file any other document required
by the SEC so that the Holder delivering such Notice and Questionnaire is named
as a selling security holder in the Resale Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of the Registrable Securities in accordance with
applicable law (other than laws not generally applicable to all Holders of
Registrable Securities wishing to sell Registrable Securities pursuant to the
Resale Registration Statement and related Prospectus) and using the manner of
sale specified in the Notice and Questionnaire, and, if the Company shall file
a post-effective amendment to the Resale Registration Statement, use
commercially reasonable efforts to cause such post-effective amendment to be
declared effective under the Securities Act as promptly as is reasonably
practicable; (ii) provide such Holder copies of any documents filed
pursuant to Section 2(d)(i); and (iii) notify such Holder as promptly
as is reasonably practicable after the effectiveness under the Securities Act
of any post-effective amendment filed pursuant to Section 2(d)(i);
provided, that if such Notice and Questionnaire is delivered during a Deferral
Period, the Company shall so inform the Holder delivering such Notice and
Questionnaire and shall take the actions set forth in clauses (i), (ii) and
(iii) above upon expiration of the Deferral Period in accordance with Section 3(d),
provided, further, that if under applicable law the Company has more than one
option as to the type or manner of making any such filing, the Company will
make the required filing or filings in the manner or of a type that is reasonably
expected to result in the earliest availability of the Prospectus for effecting
resales of 

 

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Registrable Securities. Notwithstanding anything
contained herein to the contrary, the Company shall be under no obligation to
name any Holder that is not a Notice Holder as a selling security holder in any
Registration Statement or related Prospectus; provided, however, that any
Holder that becomes a Notice Holder pursuant to the provisions of this Section 2(d) of
this Agreement (whether or not such Holder was a Notice Holder at the time the
Registration Statement was initially declared effective) shall be named as a
selling security holder in the Registration Statement or related Prospectus
subject to and in accordance with the requirements of this Section 2(d).

 

(e)                                  If a
Registration Statement covering all the Registrable Securities required to be
covered thereby and required to be filed by the Company pursuant to this
Agreement is (A) not filed with the SEC on or before the Filing Deadline
Date (a “Filing
Failure”) or (B) not declared effective by the SEC on or
before the Effectiveness Deadline Date (an “Effectiveness Failure”), then, as
liquidated damages to Buyers by reason of any such delay in or reduction of its
ability to sell the Shares (which remedy shall be the exclusive remedy for any
Filing Failure or Effectiveness Failure (each, a “Failure”)),
the Company shall pay to Buyers an amount equal to 1.0% of the aggregate
purchase price paid by Buyers for the Shares for every thirty (30) days
following the Filing Deadline Date that the Registration Statement is not filed
(in the case of a Filing Failure) and for every thirty (30) days following the
Effectiveness Deadline Date that the Registration Statement is not effective
(in the case of an Effectiveness Failure), as the case may be, on a per diem basis (the “Liquidated Damages”);
provided, however, that the maximum Liquidated Damages payable to
Buyers under this Section 2(e) shall not exceed 3.0% of the aggregate
purchase price of the Shares.  Liquidated
Damages, if any, shall be paid by the Company within ten (10) days
following the end of each thirty (30) day period (or shorter period, if
applicable) for which Liquidated Damages are payable.  The Company shall pay interest on Liquidated
Damages not paid when due at a rate of interest equal to fifteen percent
(15.0%) per annum.  In the event a
Registration Statement is filed but is withdrawn by the Company prior to being
declared effective by the SEC, then such Registration Statement will be deemed
to have not been filed for the purpose of this Section 2(e).

 

SECTION 3.         Registration Procedures.

 

In connection with the registration obligations of the Company under Section 2
hereof, the Company shall:

 

(a)                                  Prepare and file with the SEC
such amendments and post-effective amendments to each Registration Statement as
may be necessary to keep such Registration Statement continuously effective for
the applicable period specified in Section 2(a); cause the related
Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provisions
then in force) under the Securities Act; and use commercially reasonable
efforts to comply with the provisions of the Securities Act applicable 

 

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to it with respect to the disposition of all
securities covered by such Registration Statement during the Effectiveness
Period in accordance with the intended methods of disposition by the sellers
thereof set forth in such Registration Statement as so amended or such
Prospectus as so supplemented.

 

(b)                                 Submit to the SEC, within two (2) Business
Days after the Company learns that no review of a particular Registration
Statement will be made by the staff of the SEC or that the staff has no further
comments on a particular Registration Statement, as the case may be, a request
for acceleration of effectiveness of such Registration Statement to a time and
date not later than 48 hours after the submission of such request.

 

(c)                                  Use commercially reasonable
efforts to obtain the withdrawal of any order suspending the effectiveness of a
Registration Statement or the lifting of any suspension of the qualification
(or exemption from qualification) of any of the Registrable Securities for sale
in any jurisdiction in which they have been qualified for sale, in either case
at the earliest possible moment or, if any such order or suspension is made
effective during any Deferral Period, at the earliest possible moment after the
expiration of such Deferral Period.

 

(d)                                 Upon (A) the issuance by
the SEC of a stop order suspending the effectiveness of the Resale Registration
Statement or the initiation of proceedings with respect to the Resale
Registration Statement under Section 8(d) or 8(e) of the
Securities Act, (B) the occurrence of any event or the existence of any
fact (a “Material Event”) as a result of which
any Registration Statement shall contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, or any Prospectus
shall contain any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading (including, in any
such case, as a result of the non-availability of financial statements), or (C) the
occurrence or existence of any development, event, fact, situation or
circumstance relating to the Company that, in the discretion of the Company,
makes it appropriate to suspend the availability of the Resale Registration
Statement and the related Prospectus, (i) in the case of clause (B) above,
subject to the next sentence, as promptly as is reasonably practicable prepare
and file a post-effective amendment to such Registration Statement or a
supplement to the related Prospectus or any document incorporated therein by
reference or file any other required document that would be incorporated by
reference into such Registration Statement and Prospectus so that such
Registration Statement does not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and such Prospectus does not
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, as thereafter
delivered to the purchasers of the Registrable Securities being sold
thereunder, and, in the case of a post-effective amendment to a Registration
Statement, 

 

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subject to the next sentence, use commercially
reasonable efforts to cause it to be declared effective as promptly as is
reasonably practicable, and (ii) give notice (via facsimile, telephone or
electronic mail followed by a written notice by internationally recognized
overnight courier) to the Notice Holders that the availability of the Resale
Registration Statement is suspended (a “Deferral Notice”)
and, upon receipt of any Deferral Notice, each Notice Holder agrees not to sell
any Registrable Securities pursuant to the Registration Statement until such
Notice Holder’s receipt of copies of the supplemented or amended Prospectus
provided for in clause (i) above, or until it is advised in writing by the
Company that the Prospectus may be used, and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated
by reference in such Prospectus. The Company will use commercially reasonable
efforts to ensure that the use of the Prospectus may be resumed (x) in the
case of clause (A) above, as promptly as is reasonably practicable, (y) in
the case of clause (B) above, as soon as, in the sole reasonable judgment
of the Company, public disclosure of such Material Event would not be
prejudicial to or contrary to the interests of the Company or, if necessary to
avoid unreasonable burden or expense, as soon as reasonably practicable
thereafter and (z) in the case of clause (C) above, as soon as, in
the reasonable discretion of the Company, such suspension is no longer
appropriate. The period during which the availability of the Registration
Statement and any Prospectus is suspended (the “Deferral
Period”) is not to exceed (i) 20 consecutive days at any one
time; (ii) 30 days in the aggregate in any three-month period; or (iii) 60
days in the aggregate during any 12-month period, or as otherwise required by
applicable regulatory authority; provided that, the number of days the Company
is required to keep the Registration Statement effective shall be extended by
the number of days equal to the aggregate Deferral Period(s). The first day of
any Deferral Period must be at least two (2) trading days after the last
day of any prior Deferral Period.

 

(e)                                  During the Effectiveness
Period (except during such periods that a Deferral Notice is outstanding and
has not been revoked), deliver to each Notice Holder in connection with any
sale of Registrable Securities pursuant to a Registration Statement, without
charge, as many copies of the Prospectus or Prospectuses relating to such
Registrable Securities and any amendment or supplement thereto as such Notice
Holder may reasonably request; and the Company hereby consents (except during
such periods that a Deferral Notice is outstanding and has not been revoked) to
the use of such Prospectus or each amendment or supplement thereto by each
Notice Holder in connection with any offering and sale of the Registrable
Securities covered by such Prospectus or any amendment or supplement thereto in
the manner set forth therein.

 

(f)                                    Subject to Section 3(d), prior
to any public offering of the Registrable Securities pursuant to the Resale
Registration Statement, use commercially reasonable efforts to register or
qualify or cooperate with the Notice Holders in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Notice 

 

7

 

Holder reasonably requests in writing (which request
may be included in the Notice and Questionnaire), it being agreed that no such
registration or qualification will be made unless so requested; prior to any
public offering of the Registrable Securities pursuant to the Resale
Registration Statement, use commercially reasonable efforts to keep each such
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period in connection with such Notice Holder’s offer and sale of
Registrable Securities pursuant to such registration or qualification (or
exemption therefrom) and do any and all other acts or things necessary to
enable the disposition in such jurisdictions of such Registrable Securities in
the manner set forth in the relevant Registration Statement and the related
Prospectus; provided, that the Company will not be required to (i) qualify
as a foreign corporation or as a dealer in securities in any jurisdiction where
it is not otherwise qualified or (ii) take any action that would subject
it to general service of process in suits or to taxation in any such
jurisdiction where it is not then so subject.

 

SECTION 4.         Holder’s Obligations.

 

Each Holder agrees, by acquisition of the Registrable Securities, that
no Holder of Registrable Securities shall be entitled to sell any of such
Registrable Securities pursuant to a Registration Statement or to receive a
Prospectus relating thereto, unless such Holder has furnished the Company with
a properly completed Notice and Questionnaire as required pursuant to this Section 4
(including the information required to be included in such Notice and
Questionnaire) and the information set forth in the next sentence. Each Holder
agrees to deliver a Notice and Questionnaire to the Company promptly upon
becoming a Holder and notify the Company of any change in such information at
least five (5) business days prior to the filing of the Initial Resale
Registration Statement or Subsequent Resale Registration Statement, as
applicable.  Each Notice Holder agrees
promptly to furnish to the Company in writing all information required to be
disclosed in order to make the information previously furnished to the Company
by such Notice Holder not misleading, any other information regarding such
Notice Holder and the distribution of such Registrable Securities as may be
required to be disclosed in the Registration Statement under applicable law or
pursuant to SEC comments and any information otherwise required by the Company
to comply with applicable law or regulations. Each Holder further agrees,
following termination of the Effectiveness Period, to notify the Company,
within ten (10) Business Days of a request, of the amount of Registrable
Securities sold pursuant to the Registration Statement and, in the absence of a
response, the Company may assume that all of the Holder’s Registrable
Securities were so sold.

 

SECTION 5.         Registration Expenses.

 

The Company shall bear all fees and expenses incurred in connection
with the performance by the Company of its obligations under Sections 2 and 3
of this Agreement whether or not any of the Registration Statements are
declared effective. Such fees and expenses shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses (x) with
respect to filings required to be made with the Toronto Stock Exchange and the
NYSE Amex (or such U.S. national securities exchange on which the Common Stock
is then listed) and (y) of compliance with U.S. federal and state
securities or “Blue Sky” laws to the extent such 

 

8

 

filings or compliance are required pursuant to this Agreement
(including, without limitation, reasonable fees and disbursements of the
counsel specified in the next sentence in connection with Blue Sky
qualifications of the Registrable Securities under the laws of such
jurisdictions as the Notice Holders of a majority of the Registrable Securities
being sold pursuant to a Registration Statement may designate)), (ii) printing
expenses, (iii) duplication expenses relating to copies of any
Registration Statement or Prospectus delivered to any Holders hereunder, and (iv) fees
and disbursements of counsel for the Company in connection with the Resale
Registration Statement, provided, however, that the Company shall not be
responsible for any brokers’ fees, commissions or discounts in connection with
the sale of Registrable Securities or the fees and expenses of legal counsel
for the Holders.

 

SECTION 6.         Information Requirements.

 

The Company covenants that, if at any time before the end of the
Effectiveness Period the Company is not subject to the reporting requirements
of the Exchange Act, it will cooperate with any Holder of Registrable
Securities and take such further reasonable action as any Holder of Registrable
Securities may reasonably request in writing (including, without limitation,
making such reasonable representations as any such Holder may reasonably
request), all to the extent required from time to time to enable such Holder to
sell Registrable Securities without registration under the Securities Act
within the limitations of Rule 144 under the Securities Act and
customarily taken in connection with sales pursuant to such exemptions. Upon
the written request of any Holder of Registrable Securities, the Company shall
deliver to such Holder a written statement as to whether it has complied with
the filing requirements of Rule 144.

 

SECTION 7.         Indemnification and Contribution.

 

(a)                                  The Company agrees to
indemnify and hold harmless each Holder of Registrable Securities covered by
the Resale Registration Statement, the directors, officers, employees,
Affiliates and agents of each such Holder and each person who controls any such
Holder within the meaning of either the Securities Act or the Exchange Act
against any and all losses, claims, damages or liabilities, joint or several,
to which they or any of them may become subject under the Securities Act, the
Exchange Act or other federal or state statutory law or regulation, at common
law or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact contained in the Resale
Registration Statement or in any amendment thereof, in each case at the time
such became effective under the Securities Act, or in any preliminary
Prospectus or the Prospectus, or in any amendment thereof or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein (in the case of any preliminary Prospectus or the
Prospectus, in the light of the circumstances under which they were made) not
misleading, and agrees to reimburse each such indemnified party, as incurred,
for any legal or other expenses reasonably incurred by it in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such loss, 

 

9

 

claim, damage or liability arises out of or is based
upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written
information furnished to the Company by or on behalf of the party claiming
indemnification specifically for inclusion therein. This indemnity shall be in
addition to any liability that the Company may otherwise have.

 

(b)                                 Each Holder of securities
covered by the Resale Registration Statement severally and not jointly agrees
to indemnify and hold harmless the Company, each of its directors, each of its
officers who signs the Resale Registration Statement and each person who
controls the Company within the meaning of either the Securities Act or the
Exchange Act, to the same extent as the foregoing indemnity from the Company to
each such Holder, but only with reference to information relating to such
Holder furnished to the Company by or on behalf of such Holder specifically for
inclusion in the documents referred to in the foregoing indemnity. This
indemnity agreement shall be acknowledged by each Notice Holder that is not the
Buyers in such Notice Holder’s Notice and Questionnaire and shall be in
addition to any liability that any such Notice Holder may otherwise have.

 

(c)                                  Promptly after receipt by an
indemnified party under this Section 7 of notice of the commencement of any
action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 7, notify the
indemnifying party in writing of the commencement thereof; but the failure so
to notify the indemnifying party (i) will not relieve it from liability
under paragraph (a) or (b) above unless such failure results in the
forfeiture by the indemnifying party of substantial rights and defenses or
otherwise materially prejudices the indemnifying party; and (ii) will not,
in any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled
to appoint counsel (including local counsel) of the indemnifying party’s choice
at the indemnifying party’s expense to represent the indemnified party in any
action for which indemnification is sought (in which case the indemnifying
party shall not thereafter be responsible for the fees and expenses of any
separate counsel, other than local counsel if not appointed by the indemnifying
party, retained by the indemnified party or parties except as set forth below);
provided, however, that such counsel shall be reasonably satisfactory to the
indemnified party. Notwithstanding the indemnifying party’s election to appoint
counsel (including one local counsel) to represent the indemnified party in an
action, the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of
counsel chosen by the indemnifying party to represent the indemnified party
would present such counsel with a conflict of interest; (ii) the actual or
potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties that are different from or additional to those
available to 

 

10

 

the indemnifying party; (iii) the indemnifying
party shall not have employed counsel reasonably satisfactory to the indemnified
party to represent the indemnified party within a reasonable time after notice
of the institution of such action; or (iv) the indemnifying party shall
authorize the indemnified party to employ separate counsel at the expense of
the indemnifying party. An indemnifying party will not, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding.

 

(d)                                 If the indemnification to
which an indemnified party is entitled under this Section 7 is for any
reason unavailable to or insufficient although applicable in accordance with
its terms to hold harmless an indemnified party in respect of any losses,
liabilities, claims, damages or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount of such losses,
liabilities, claims, damages and expenses incurred by such indemnified party,
as incurred, in such proportion as is appropriate to reflect the relative fault
of the indemnifying party or parties on the one hand and of the indemnified
party on the other hand in connection with the statements or omissions which
resulted in such losses, liabilities, claims, damages or expenses, as well as
any other relevant equitable considerations.

 

The relative fault of the Company on the one hand and the Holders of
the Registrable Securities on the other hand shall be determined by reference
to, among other things, whether any such untrue or alleged untrue statement of
a material fact or omission or alleged omission to state a material fact
relates to information supplied by the Company or by the Holder of the Registrable
Securities and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

 

The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 7(d) were determined by pro
rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Section 7(d).
The aggregate amount of losses, liabilities, claims, damages, and expenses
incurred by an indemnified party and referred to above in this Section 7(d) shall
be deemed to include any out-of-pocket legal or other expenses reasonably
incurred by such indemnified party in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue or alleged untrue statement or omission or alleged omission.

 

11

 

 

Notwithstanding the provisions of this Section 7,
no Holder of any Registrable Securities shall be required to indemnify or
contribute any amount in excess of the amount by which the proceeds received
from the sale of the Registrable Securities by such Holder of Registrable
Securities exceeds the amount of any damages that such Holder of Registrable
Securities has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.

 

No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

 

For purposes of this Section 7(d), each person,
if any, who controls Buyers or any Holder of Registrable Securities within the
meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act shall have the same rights to contribution as Buyers or such
Holder, and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act
shall have the same rights to contribution as the Company.

 

(e)                                  The
provisions of this Section 7 shall remain in full force and effect,
regardless of any investigation made by or on behalf of any Holder or the
Company or any of the indemnified persons referred to in this Section 7,
and shall survive the sale by a Holder of Registrable Securities covered by the
Resale Registration Statement.

 

SECTION 8.                         Miscellaneous

 

(a)                                  Successors and Assigns.  Neither this Agreement nor any of the rights, interests or obligations
hereunder shall be assigned by any of the parties hereto without the prior
written consent of the other parties. 
Subject to the preceding sentence, this Agreement shall be binding upon,
inure to the benefit of, and be enforceable by, the parties and their
respective permitted successors and assigns. 
If any permitted transferee of any Holder shall acquire Registrable Securities,
such Registrable Securities shall be subject to all of the terms of this
Agreement and by taking and holding such Registrable Securities such person
shall be conclusively deemed to have agreed to be bound by and to perform all
of the terms and provisions of this Agreement. 
Nothing in this Agreement is intended to confer upon any party other
than the parties hereto or their respective permitted successors and assigns
any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

 

(b)                                 Notices.  Unless
otherwise provided herein, any notice, request, waiver, instruction, consent or
document or other communication required or permitted to be given by this
Agreement shall be effective only if it is in writing and (i) delivered by
hand or sent by certified mail, return receipt requested, (ii) if sent by
a nationally-recognized overnight delivery service with delivery confirmed, or
(iii) if sent by facsimile (or other similar electronic means), with
receipt confirmed as follows:

 

12

 

	
  Company:

  	
  Golden
  Minerals Company

  
	
   

  	
  350
  Indiana Street, Suite 800

  
	
   

  	
  Golden,
  Colorado 80401

  
	
   

  	
  Attn:
  President

  
	
   

  	
  Fax:
  (303) 839-5907

  
	
   

  	
   

  
	
  with
  a copy to:

  	
  Davis
  Graham & Stubbs LLP

  
	
   

  	
  1550
  17th Street, Suite
  500

  
	
   

  	
  Denver,
  Colorado 80202

  
	
   

  	
  Attn:
  Deborah J. Friedman

  
	
   

  	
  Fax:
  (303) 892-7400

  
	
   

  	
   

  
	
  Buyers:

  	
  Sentient
  Global Resources Fund III, LP

  
	
   

  	
  SGRF
  III Parallel I, LP

  
	
   

  	
  Landmark
  Square, 1st Floor, 64
  Earth Close, West Bay Beach South

  
	
   

  	
  PO
  Box 10795

  
	
   

  	
  George
  Town, Grand Cayman KY1-1007

  
	
   

  	
  CAYMAN
  ISLANDS

  
	
   

  	
  Attention:
  Sue Bjuro — Office Manager

  
	
   

  	
   

  
	
  with
  a copy to:

  	
  Quinn
  & Brooks, LLP

  
	
   

  	
  c/o
  Gregory A. Smith

  
	
   

  	
  9800
  Mt. Pyramid Ct., Suite 400

  
	
   

  	
  Englewood,
  Colorado 80112

  

 

The parties shall promptly
notify each other of any change in their respective addresses or facsimile
numbers or of the individual or entity or office to receive notices, requests
or other communications under this Section 8(b).  All notices shall be deemed to have been
given (i) if personally delivered or sent by certified mail, as of the
date when so delivered, (ii) if sent by nationally-recognized overnight
delivery service, two days after mailing, or (iii) if sent by facsimile
(or other similar electronic means) as of the date sent, if during normal
business hours of the recipient, and otherwise on the next business day.

 

(c)                                  Amendments and Waivers.  The provisions
of this Agreement, including the provisions of this sentence, may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, without the written consent of the
Company and the Holders of a majority of the then outstanding Registrable
Securities. Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders of Registrable Securities whose securities are being sold
pursuant to a Registration Statement and that does not directly or indirectly
affect the rights of other Holders of Registrable Securities may be given by
Holders of at least a majority of the Registrable Securities being sold by such
Holders pursuant to such Registration Statement; provided, that the 

 

13

 

provisions of this sentence may not be amended, modified, or
supplemented except in accordance with the provisions of the immediately
preceding sentence. Each Holder of Registrable Securities outstanding at the
time of any such amendment, modification, supplement, waiver or consent or
thereafter shall be bound by any such amendment, modification, supplement,
waiver or consent effected pursuant to this Section 8(c), whether or not
any notice, writing or marking indicating such amendment, modification,
supplement, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

 

(d)                                 Severability.  Any term or provision of
this Agreement that is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable in any situation in any
jurisdiction shall not affect the validity or enforceability of the remaining
terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.  If the final judgment of a court of competent
jurisdiction or other authority declares that any term or provision hereof is
invalid, void or unenforceable, the parties agree that the court making such
determination shall have the power to reduce the scope, duration, area or
applicability of the term or provision, to delete specific words or phrases, or
to replace any invalid, void or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision.

 

(e)                                  Governing Law.  This
Agreement shall be governed by and construed in accordance with the internal
laws (as opposed to the conflicts of law provisions) of the State of Colorado.

 

(f)                                    Submission to Jurisdiction.  The parties hereby submit to the
non-exclusive jurisdiction of any court of the State of Colorado or the United
States District Court for the District of Colorado for the purpose of any suit,
action, or other proceeding arising out of this Agreement, and waive any and
all objections to jurisdiction that they may have under the laws of the State
of Colorado or the United States and any claim or objection that any such court
is an inconvenient forum.

 

(g)                                 Entire Agreement.  This Agreement constitutes
the full and entire understanding and agreement between the parties with regard
to the subjects hereof and thereof.

 

(h)                                 Counterparts.  This Agreement may be
executed in two or more counterparts (including by facsimile or similar means
of electronic communication), each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

 

(i)                                     Specific Performance.  Buyers and the Company each agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed by them in accordance with the terms hereof and
that each party shall be entitled to specific performance of the terms hereof,
in addition to 

 

14

 

any other remedy at law or
equity.  Each party hereto expressly
waives any requirement that any other party hereto obtain any bond or provide
any indemnity in connection with any action seeking injunctive relief or
specific enforcement of the provisions of the Agreement.

 

(j)                                     Expenses.  All
reasonable, documented out-of-pocket costs and expenses incurred by the parties
in connection with the negotiation, preparation, execution and delivery of this
Agreement, including the fees, expenses and disbursements of legal counsel and
accountants, shall be paid by the Company. 
Except as otherwise set forth in this Agreement, costs and expenses
incurred by the parties in connection with the performance of its obligations
under this Agreement shall be paid by the party incurring such expenses.  The prevailing party in any litigation or
other proceeding to collect Liquidated Damages pursuant to this Agreement shall
be entitled to collect from the non-prevailing party all reasonable costs and
fees associated with such litigation or proceeding, including reasonable
attorneys’ fees.

 

(k)                                  Approval of Holders.  Whenever the
consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
its Affiliates (other than Buyers or subsequent Holders of Registrable
Securities if such subsequent Holders are deemed to be such Affiliates solely
by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

 

(l)                                     Termination.  This
Agreement and the obligations of the parties hereunder shall terminate upon the
earlier to occur of (i) the expiration of the Effectiveness Period or
(ii) such time as there shall be no Registrable Securities.

 

* * * * *

 

15

 

IN
WITNESS WHEREOF, the parties have executed this REGISTRATION RIGHTS AGREEMENT as of the date first written
above.

 

 

	
  GOLDEN MINERALS COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Robert P. Vogels

  	
   

  
	
  Name: Robert P. Vogels

  	
   

  
	
  Title: Sr. VP & CFO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SENTIENT GLOBAL RESOURCES FUND
  III, LP

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Sentient GP III, L.P.,
  General Partner

  	
   

  
	
   

  	
  By:

  	
  Sentient Executive GP III,
  Limited, General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gregory Link

  	
   

  
	
  Name:

  	
  Gregory Link

  	
   

  
	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SGRF III PARALLEL I, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Sentient GP III, L.P.,
  General Partner

  	
   

  
	
   

  	
  By:

  	
  Sentient Executive GP III,
  Limited, General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gregory Link

  	
   

  
	
  Name:

  	
  Gregory Link

  	
   

  
	
  Title:

  	
  Director

  	
   

  

 

 

ANNEX A

 

FORM OF SELLING SECURITYHOLDER NOTICE AND
QUESTIONNAIRE.

 

The
undersigned beneficial owner (the “Selling Securityholder”) of Registrable
Securities hereby gives notice to the Company of its intention to sell or
otherwise dispose of Registrable Securities beneficially owned by it and listed
below in Item 3 (unless otherwise specified under such Item 3) pursuant to the
Resale Registration Statement. The undersigned, by signing and returning this
Notice and Questionnaire, understands that it will be bound by the terms and
conditions of this Notice and Questionnaire and the Registration Rights
Agreement.

 

Pursuant
to the Registration Rights Agreement, the undersigned has agreed to indemnify
and hold harmless the Company’s directors and officers and each person, if any,
who controls the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), from and against certain losses arising in connection
with statements concerning the undersigned made in the Company’s Resale
Registration Statement or the related prospectus in reliance upon the
information provided in this Notice and Questionnaire.

 

If
the Selling Securityholder transfers all or any portion of the Registrable
Securities listed in Item 3 below after the date on which such information is
provided to the Company, the Selling Securityholder agrees to notify the
transferee(s) at the time of the transfer of its rights and obligations under
the registration Rights Agreement and that the transferee must complete this
Notice and Questionnaire in order to avail itself of the rights under the
Registration Rights Agreement.

 

[CONTINUED NEXT PAGE]

 

 

QUESTIONNAIRE

 

Please
respond to every item, even if your response is “none.” If you need more space
for any response, please attach additional sheets of paper. Please be sure to
indicate your name and the number of the item being responded to on each such
additional sheet of paper, and to sign each such additional sheet of paper
before attaching it to this Questionnaire. Please note that you may be asked to
answer additional questions depending on your responses to the following
questions.

 

COMPLETED QUESTIONNAIRES SHOULD BE
RETURNED TO

GOLDEN MINERALS COMPANY AS FOLLOWS:

 

ONE (1) COPY BY FACSIMILE TO
FAX: (303) 839-5907

 

WITH THE ORIGINAL COPY TO FOLLOW TO:

 

GOLDEN MINERALS COMPANY

 

 

ATTENTION: CHIEF FINANCIAL OFFICER

 

The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate and complete:

 

1.                                       Your Identity and Background as the Beneficial Owner
of The Registrable Securities.

 

(a)                                  Your full legal name:

 

 

(b)                                 Your business address (including street address) (or residence if no business
address), telephone number and facsimile number:

 

Address:

 

 

Telephone No.:

 

Fax No.:

 

(c)                                  Are you a broker-dealer registered pursuant to Section 15 of the
Exchange Act?

 

o  Yes.

 

o  No.

 

 

(d)                                 If your response to Item 1(c) above is no, are you an “affiliate”
of a broker-dealer registered pursuant to Section 15 of the Exchange Act?

 

o  Yes.

 

o  No.

 

For the purposes of this Item 1(d), an “affiliate” of a registered
broker-dealer shall include any company that directly, or indirectly through
one or more intermediaries, controls, or is controlled by, or is under common
control with, such broker-dealer, and does not include any individuals employed
by such broker-dealer or its affiliates.

 

(e)                                  Full legal name of person or entity in whose name you hold the
Registrable Securities—(i.e. name of your broker, if applicable, through which
your Registered Securities are held):

 

Record Stockholder:

 

Name of broker:

 

Contact person:

 

Telephone No.:

 

2.                                       Your Relationship With Golden Minerals Company

 

(a)                                  Have you or any of your affiliates, officers, directors or principal
equity holders (owners of 5% or more of the equity securities of the
undersigned) held any position or office or have you had any other material
relationship with Golden Minerals Company (or its predecessors or affiliates)
within the past three years?

 

o  Yes.

 

o  No.

 

(b)                                 If your response to Item 2(a) above is yes, please state the nature
and duration of your relationship with Golden Minerals Company:

 

3.                                       Your Interest in the Registrable Securities.

 

(a)                                  State the number of such Registrable Securities beneficially owned by
you.

 

 

(b)                                 Other than as set forth in your response to Item 3(a) above, do you
beneficially own any other securities of Golden Minerals Company?

 

o  Yes.

 

o  No.

 

 

(c)                                  If your answer to Item 3(b) above is yes, state the type, the aggregate
amount and CUSIP No. (if applicable) of such other securities of Golden
Minerals Company beneficially owned by you:

 

Type:

 

Aggregate amount:

 

CUSIP No.:

 

(d)                                 Did you acquire the securities listed in Item 3(a) above in the
ordinary course of business?

 

o  Yes.

 

o  No.

 

(e)                                  At the time of your purchase of the securities listed in Item
3(a) above, did you have any agreements or understandings, directly or
indirectly, with any person to distribute the securities?

 

o  Yes.

 

o  No.

 

(f)                                    If your response to Item 3(e) above is yes, please describe such
agreements or understandings:

 

4.                                       Nature of Your Beneficial Ownership.

 

(a)                                  If the name of the beneficial owner of the Registrable Securities set
forth in your response to Item 1(a) above is that of a limited partnership
or corporation, state the names of the general partners of such limited
partnership or the officers and directors of such corporation:

 

 

(b)                                 With respect to each general partner listed in Item 4(a) above who
is not a natural person, and is not publicly held, name each shareholder (or
holder of partnership interests, if applicable) of such general partner. If any
of these named shareholders are not natural persons or publicly held entities,
please provide the same information. This process should be repeated until you
reach natural persons or a publicly held entity.

 

 

 

(c)                                  Name your controlling shareholder(s) or other person or entity who
has the ability to exercise control over you (the “Controlling Entity”). If the
Controlling Entity is not a natural person and is not a publicly held entity,
name each shareholder of such Controlling Entity. If any of these named
shareholders are not natural persons or publicly held entities, please provide
the same information. This process should be repeated until you reach natural
persons or a publicly held entity.

 

(A)(i)      Full legal name of Controlling Entity(ies) or natural
person(s) with who have sole or shared voting or dispositive power over
the Registrable Securities:

 

Business address (including street address) (or residence if no business
address), telephone number and facsimile number of such person(s):

 

Address:

 

Telephone:

 

Fax:

 

Name of Shareholder:

 

 

(B)(i)      Full legal name of Controlling Entity(ies):

 

 

Business address (including street address) (or residence if no business
address), telephone number and facsimile number of such person(s):

 

Address:

 

Telephone:

 

Fax:

 

Name of Shareholders:

 

 

If you need more space for this response, please attach additional
sheets of paper. Please be sure to indicate your name and the number of the
item being responded to on each such additional sheet of paper, and to sign
each such additional sheet of 

 

 

paper before attaching it to this Questionnaire. Please note that you
may be asked to answer additional questions depending on your responses to the
following questions.

 

5.                                       Plan of Distribution.

 

The undersigned (including
its donees or pledgees) intends to distribute the Registrable Securities listed
above in Item 3 pursuant to the Resale Registration Statement only as follows
(if at all): Such Registrable Securities may be sold from time to time directly
by the undersigned or, alternatively, through underwriters, broker-dealers or
agents. If the Registrable Securities are sold through underwriters,
broker-dealers or agents, the Selling Securityholder will be responsible for
underwriting discounts or commissions or agents’ commissions. Such Registrable
Securities may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at varying prices determined at
the time of sale or at negotiated prices. Such sales may be effected in
transactions (which may involve block transactions) (i) on any national
securities exchange or quotation service on which the Registrable Securities
may be listed or quoted at the time of sale, (ii) in the over-the-counter
market, or (iii) in transactions otherwise than on such exchanges or services
or in the over-the-counter market.

 

DATED
this       day of                     ,           .

 

 

	
   

  	
   

  
	
   

  	
  Signature
  of Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print
  name)Exhibit 10.1

 

SCHEDULE TO

THE VIRGIN MEDIA INC. (fka NTL
INCORPORATED) 2006 STOCK INCENTIVE PLAN

 

OPERATION OF THE PLAN IN RELATION
TO A COMPANY SHARE OPTION PLAN FOR UNITED KINGDOM EMPLOYEES

 

(Approved by HM Revenue &
Customs under Schedule 4, Income Tax (Earnings and Pensions) Act 2003 on 8
January, 2010 under HM Revenue & Customs reference: X105457)

 

1.                In this Schedule,
“Plan” refers to the Virgin Media
Inc. 2006 Stock Incentive Plan and unless otherwise stated therein, words and
expressions defined in the Plan shall have the same meaning when used in this
Schedule.  The provisions of the Plan
relating to Options shall apply to the provisions of this Schedule except where
expressly varied herein.  References to
Sections in this Schedule are to Sections of the Plan.

 

2.                Options granted
by Virgin Media Inc. (the “Corporation”) pursuant to this Schedule will be
granted pursuant to an approved share option scheme within the provisions of
Chapter 8, Part 7 of Schedule 4 to the United Kingdom Income Tax (Earnings
and Pensions) Act 2003 (“ITEPA 2003”).

 

3.                Only Options may
be granted pursuant to this Schedule and not any other form of incentive.  An Option granted under this Schedule shall
not be granted to an individual in conjunction with any other form of Award
under the Plan.

 

4.                Section 2 (Definitions) shall be amended in relation
to Options granted pursuant to this Schedule, so that:

 

(i)   Control shall
mean the definition of control within Section 995 of the Income Tax Act
2007;

 

(ii)  Fair Market Value shall
mean the average of the highest and lowest share price on which transactions in
the Company’s stock are reported on the NASDAQ Global Select Market (or such
other market that the Company designates as its primary trading market) on the
date of the grant, or if trading does not take place on such a date, the
immediately preceding date, or such other basis for determining Fair Market
Value as may be authorized to the Company by HMRC from time to time;

 

(iii)   HMRC shall mean
Her Majesty’s Revenue & Customs;

 

(iv)   Participating Corporation
shall mean the Corporation and any Subsidiary Corporation that the Board has
determined shall be a constituent company for the purposes of granting Options
pursuant to this Schedule (as defined in paragraph 3(3) of Schedule 4 to
ITEPA), provided that,

 

 

on any company ceasing to be
a Subsidiary Corporation it shall forthwith cease to be a Participating
Corporation;

 

(v) Redundancy
shall mean redundancy as defined in the Employment Rights Act 1996 or the
Employment Rights (Northern Ireland) Order 1996;

 

(vi)   Retirement shall
mean retirement on or after reaching the age 65, which
shall be the specified age for the purposes of paragraph 35A of Schedule 4 to
ITEPA 2003;

 

(vii)   Shares shall mean
fully paid ordinary shares of Common Stock, which comply with the conditions of
Part 4 of Schedule 4 to ITEPA 2003;

 

(viii)   Subsidiary Corporation
shall mean any company of which the Corporation has Control.

 

5.                Any discretion
afforded on the Board and/or the Committee in relation to subsisting Options granted
pursuant to this Schedule, pursuant to Section 3 (Administration) of the Plan or otherwise,
will be exercised in a fair and reasonable manner.

 

6.                Options granted
pursuant to this Schedule may only be granted to employees (including directors
who are employees) of a Participating Corporation who are not excluded by
paragraph 9 of Schedule 4 to ITEPA 2003 (known as the no material interest
requirement) and the definition of “Eligible
Individuals” in Section 4 of the Plan (Eligibility) shall be construed
accordingly.  In order to be eligible to
be granted an Option pursuant to this Schedule, employees who are also
directors of a Participating Corporation, must work (in their capacity as
director of that Participating Corporation) for at least 25 hours per week
excluding meal breaks.

 

7.                The vesting
and/or performance conditions attaching to an Option granted under this
Schedule shall be determined at the time of grant and may not be determined
following the grant of an Option.  Any performance
condition which is imposed on any Option granted under this Schedule must be
objective in nature.  Such a condition
may only be varied if events occur which cause the Committee to reasonably
believe that the original condition is no longer a fair measure of
performance.  In such circumstances the
Committee may waive the performance condition or may impose a different
objective performance condition which, in the fair and reasonable opinion of
the Committee, is no more difficult to meet than the original condition was
considered to be when it was first set.

 

8.                No Option may be
granted pursuant to this Schedule to any Participant which would result in the
aggregate Option Price of Shares comprised in outstanding Options granted to
him or her under this Schedule together with the aggregate Option Price of
Shares in subsisting options granted to him or her under any other share option
scheme (not being a savings-related share option scheme), approved under
Schedule 4 to ITEPA 2003 and established by the Corporation 

 

 

or any associated company
(within the meaning of Section 416 of the Income and Corporation Taxes Act
1988) exceeding £30,000 (converting, for this purpose, the Option Price into GB
Pounds Sterling using the USD/GBP exchange rate at 16.00 Eastern Time as
published in the Wall Street Journal on the date of grant of such options).

 

9.                The Option Price
payable on the exercise of each Option granted under this Schedule shall
(unless the Board or the Compensation Committee determines otherwise) be
denominated in US Dollars.    In the event that a Participant wishes to pay
the Option Price in GB Pounds Sterling, the US Dollar Exercise Price shall be
converted into GB Pounds Sterling using the USD/GBP exchange rate at 16.00
Eastern Time as published in the Wall Street Journal on the date of exercise of
the relevant Option.

 

10.              No Option granted
under this Schedule may be exercised by any Participant at any time when he or
she is precluded by paragraph 9 of Schedule 4 to ITEPA 2003 from participating
in the Plan pursuant to this Schedule.

 

11.              Section 6 (Terms and Conditions of Options) shall be
amended in relation to Options granted pursuant to this Schedule as follows:

 

(i)  Section 6(b) (Type of Option) shall be amended and
replaced with the following:  “Each
Agreement evidencing the grant of an Option under this Schedule may specifically
identify the Option as an Incentive Stock Option or a Nonqualified Stock Option
where applicable”.

 

(ii)  Section 6(c) (Option Price) shall be amended so that the
words “an Option granted under the Schedule” shall replace the words “Incentive
Stock Option”.

 

(iii)  Section 6(d) (Medium and Time of Payment)  shall be amended so that the second
sentence shall be replaced with the following: “Payment of the Option Price
shall be made in such manner as the Committee may provide in the Agreement
evidencing the grant of the Option, which shall include cash, cheque and/or
such cashless exercise procedure approved by the Committee (and, to the extent
applicable, HMRC) including an undertaking to pay the Option Price using the
sale proceeds of the Shares issuable on exercise or withholding the Option
Price (with the Participant’s consent) from salary”.

 

(iv)  Section 6(e) (Term and Exercise of Options)  shall be amended such that the words “however,
that the Committee shall have the authority to accelerate the exercisability of
any outstanding Option at such time and under such circumstances as it, in its
sole discretion, deems appropriate; provided, further” are deleted.  Section 6(e) shall include the
following:  “In order for there to be no charge to income tax and National
Insurance contributions in the UK on the exercise of an Option granted pursuant
to this Schedule, an Option must be exercised between the third and tenth
anniversaries of the date the Option was granted or otherwise in accordance

 

 

with section 524 of ITEPA
2003”.  Section 6(e) shall also
include the following:  “Should an Option
be exercised in a valid manner, Shares shall be allotted or transferred to a
Participant within 30 calendar days of such exercise”.

 

(v)  Section 6(g) (Termination) shall be amended such that the
words “(or such longer period of up to twelve (12) months as the Committee may
determine and notify to the Participant in writing)” are inserted after the
words “within three (3) months after such termination”.  The section shall otherwise take effect in
the event that a Participant ceases to be an employee of a Participating
Corporation (and the entire clause shall be construed accordingly).  Furthermore, in the last sentence of Section 6(g) the
words “...or thereafter” shall not apply.

 

(vi)  Section 6(h) (Death, Disability or Retirement of Participant)
shall take effect in the event that a Participant ceases to be an employee of a
Participating Corporation by reason of death, Disability or Retirement and the
entire clause shall be construed accordingly. 
In addition, Section 6(h) shall be amended so that the words “(as
determined by the Committee in its sole discretion)” are deleted and the words “Personal
Representatives” shall replace the words “...estate or by a person who acquired
the right to exercise such Option by bequest or inheritance or otherwise by
reason of the death or Disability of the Participant or by a transferee”.

 

Section 6(h) shall
also take effect in the event that a Participant ceases to be an employee of a
Participating Corporation by reason of Redundancy.

 

(vii)  Section 6(i) (Non transferability of Options)  shall be amended so that the words “Personal
Representatives” shall replace the words “... guardian or legal representative”
and that the subsequent words shall be deleted.

 

(viii) Section 6(j)(2) (Effect of Certain Changes)  shall be deleted in its entirety.

 

(ix) (a) a
new Section 6(l) (Exchange of
Approved Options) shall be inserted into the Plan for the purposes
of granting Options under this Schedule only and it shall read as follows:

 

“If any company
(hereafter “the Acquiring Company”) obtains Control of the Corporation as a
result of either:-

 

(i)         a general offer to
acquire the whole of the share capital (other than shares which the Acquiring
Company already holds) which is made on a condition such that if it is
satisfied the person making the offer will have Control of the Corporation; or

 

(ii)        a general offer
to acquire all the shares in the Corporation of the same class as the Stock
(other than Stock which the Acquiring Company already holds); or

 

 

(iii)       becomes bound or
entitled to acquire shares in the Corporation under Sections 979 to 982 of the
Companies Act 2006 or (where relevant) legislation that HM Revenue &
Customs agrees is the overseas equivalent thereof; or

 

(iv)       obtains Control
of the Corporation in pursuance of a compromise or arrangement sanctioned by
the Court under Section 899 of the Companies Act 2006 or (where relevant)
legislation that HM Revenue & Customs agrees is the overseas
equivalent thereof,

 

a Participant may, by
agreement with the Acquiring Company, within the periods set out in (b) below
(and where more than one of such periods shall apply to the same circumstances,
within such one of the said periods as the Acquiring Company shall stipulate)
release (the “Release”) his
Options (the “Old Options”) in
consideration of the grant to him of equivalent rights over shares in the
Acquiring Company or in another company within paragraph 27(2) of Schedule
4 to ITEPA (the “New Options”).

 

(b)       The periods referred to in (a) above
are as follows:-

 

(i)         in a case falling
within (a)(i) or (ii), the period of six months beginning with the time when
the Acquiring Company has obtained Control of the Corporation and any condition
subject to which the offer is made is satisfied or waived;

 

(ii)        in a case falling
within (a)(iii), the period during which the Acquiring Company remains bound or
entitled as mentioned in (a)(iii); and

 

(iii)       in a case falling
within (a)(iv), the period of six months beginning with the time when the court
sanctions the compromise or arrangement.

 

(c)        The
grant of New Options may only take place on the following conditions:-

 

(i)         the shares over
which the New Options are granted (the “New
Shares”) comply with the provisions relating to scheme shares
contained in paragraphs 16 to 20 of Schedule 4 to ITEPA;

 

(ii)        the total market
value immediately before the Release of the Shares which were subject to the
Old Options, is equal to the total market value immediately after the grant of
the New Shares in respect of which the New Options are granted to the
Participant;

 

(iii)       (the total amount
payable by the Participant for the acquisition of New Shares on complete
exercise of the New Options is equal to the total amount that would have been
payable for the acquisition of Shares on complete exercise of the Old Options;
and

 

 

(iv)       the New Options
are otherwise identical in terms to the Old Options.

 

(d)           The New Options
shall, for all other purposes of the Plan, be treated as having been acquired
at the same time as the Old Options were or were treated as acquired and “date of grant” shall be construed
accordingly except that the management board shall, in its discretion (but
subject to paragraph 9 of the Schedule) decide, as to whether any objective
condition shall continue to apply to the New Options.

 

(e)           Where the
Participant releases his Options under this paragraph (ix), the New Options       granted to him on that Release shall not
lapse, nor shall the be entitled to exercise the New Options early, solely by
virtue of the circumstances which entitled the Participant to effect the
Release.

 

(f)            Where any New
Options are granted pursuant to this paragraph 17 the provisions of the Plan
and the Schedule shall be read and construed as if:-

 

(i)                  references to ‘Shares’
were references to the New Shares;

 

(ii)                 references to ‘Participant’
were references to the persons to whom such rights are granted; and

 

(iii)                references to ‘share
capital’ were references to the share capital of such Acquiring Company.

 

For the avoidance
of doubt, the provisions of the Plan and the Schedule shall continue to apply
in all other respects.

 

12.              Section 9 (Effect of Certain Changes) shall be amended
so that any adjustments made by the Committee shall be subject to:

 

(i) 
paragraph 22(3) of Schedule 4 to ITEPA 2003;

 

(ii)  the
prior approval of HMRC; and

 

(iii) the
shares continuing to satisfy the conditions specified in Part 4 of
Schedule 4 to ITEPA 2003.

 

13.              Section 11 (Agreement by Participant Regarding Withholding Taxes)
shall be deleted under this Schedule and substituted with the following wording
in relation to Options granted pursuant to this Schedule:

 

 

“(1)           In any case where
any person (corporation or otherwise) (the “Relevant
Person”) is obliged to account or could suffer a disadvantage should
it not account:

 

(a)               for any tax (or
similar liability) in any jurisdiction; and/or

 

(b)              for any social
security contributions (or similar liability) in any jurisdiction (including,
any secondary Class 1 National Insurance contributions that a Participant
has agreed to pay or assumed the liability to pay pursuant to clause 13 (2) below),

 

by virtue of the Option
(whether pursuant to its exercise or the acquisition of Shares pursuant to its
exercise) (together, the “Tax Liability”)
the Relevant Person may recover the Tax Liability from the Participant in such
manner as the Committee shall think fit (so far as is permitted by law) and
(without prejudice to the generality of the foregoing) exercise of an Option
shall be conditional upon the Participant either:

 

(i)               making a payment
to the Relevant Person, of an amount equal to the Tax Liability (or an estimate
thereof); or

 

(ii)              entering into
arrangements with the Relevant Person, to secure that such a payment is
made.  Such arrangements to include, but
not be limited to, the Corporation selling a sufficient number of Shares
acquired on the exercise of an Option on the Participant’s behalf and retaining
an amount equal to the Tax Liability due from the proceeds or the Participant
undertaking to sell a sufficient number of Shares acquired on the exercise of
an Option and remitting to the Relevant Person the proceeds thereof.

 

(2)         Unless the Committee (in its absolute
discretion) determines otherwise, the exercise of Options granted under this
Schedule is conditional upon the Participant entering into a binding agreement
or election form acceptable to the Committee (and in the case of an election,
in a form also approved by HMRC), pursuant to which the Participant agrees to
pay or assumes liability for the whole of the secondary Class 1 National
Insurance contributions arising in respect of the Option.”

 

14.              Section 12 (Rights as an Employee) shall be deleted in
its entirety in relation to Options granted pursuant to this Schedule and
replaced with the following: “By participating in the Plan, a Participant
accepts that the rights and obligations under the Plan do not form part of the
Participant’s terms and conditions of employment with the Corporation or any
Subsidiary Corporation and the rights and obligations which the Participant and
the Corporation or any  Subsidiary
Corporation owe to each other in relation to the Participant’s employment will
not be 

 

 

affected by participation in
the Plan.  In particular (but without
limiting the generality of the foregoing) any Participant whose employment
contract is terminated for whatever reason (including, for the avoidance of
doubt, where the contract is terminated by the Corporation or any Subsidiary
Corporation in breach of contract) shall not be entitled to any compensation
for loss of any right or benefit or prospective right or benefit under this
Plan which he might otherwise have enjoyed or for the lapse of any right to an
Option whether such compensation is claimed by way of damages for wrongful
dismissal or other breach of contract or by way of compensation for loss of
office or otherwise howsoever and by participating in the Plan, the Participant
irrevocably waives any such right.  This
exclusion applies equally (and without limitation) to any loss arising from the
way in which discretion is (or is not) exercised under any Section of the
Plan (and, to the extent applicable the Schedule) in particular Section 6(h))
and/or any provision contained in the relevant Agreement, even if the exercise
(or non-exercise) of such discretion is, or appears to be, irrational or
perverse and/or breaches, or is claimed to breach, any implied term of the
Plan, the Agreement or any other contract between the Participant and his
employer.”.

 

15.              Any Options will
not count as pay or remuneration when calculating salary related benefits
(including pension).

 

16.              Section 15 (Amendment and Termination) shall apply with
the additional requirement that no amendment to a key feature  of the Plan (to the extent that it relates
to Options granted under this Schedule) and/or this Schedule shall have effect
until approved by HMRC.  For the purposes
of this clause, “a key feature” is
a provision of the Plan and/or the Schedule which is necessary to meet the
requirements of this Schedule as provided for in paragraph 30(4) of Schedule 4, ITEPA 2003.

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