Document:

EXHIBIT 10.2

 

PLEDGE AGREEMENT

 

This PLEDGE AGREEMENT,
dated as of June 2, 2017 (as amended, restated, supplemented or otherwise modified from time to time in accordance with the provisions
hereof, this “Agreement”), is made and given by ROYAL GOLD, INC., a corporation organized and existing under
the laws of the State of Delaware, as pledgor, assignor and debtor (in such capacity and together with any successors in such capacity,
the “Pledgor”), in favor of THE BANK OF NOVA SCOTIA (“Bank of Nova Scotia”), as pledgee,
assignee, secured party and administrative agent (in such capacity and together with any successors in such capacity, the “Administrative
Agent”).

 

Recitals

 

A.           Pursuant
to that certain Revolving Facility Credit Agreement, dated as of June 2, 2017, by and among the Pledgor, RG MEXICO, INC., a corporation
organized and existing under the laws of the State of Delaware (“RG Mexico”), as a guarantor, those additional
guarantors from time to time party thereto, as guarantors (collectively, the “Additional Guarantors” and RG
Mexico and the Additional Guarantors being individually referred to herein as a “Guarantor” and collectively
referred to herein as the “Guarantors”), those banks and financial institutions identified as a “Lender”
on the signature pages thereto and such other banks or financial institutions as may from time to time become parties thereto as
lenders (individually, each a “Lender” and collectively, the “Lenders”), and The Bank of
Nova Scotia, as administrative agent for the Lenders (together with all amendments, restatements, amendments and restatements,
modifications, revisions, increases, supplements, extensions, continuations, replacements or refinancings from time to time in
accordance with the terms thereof, the “Credit Agreement”), the Lenders have agreed to make Loans (as defined
in the Credit Agreement) to the Pledgor on the terms and subject to the conditions set forth therein, which will be guaranteed
by the Guarantors.

 

B.           In order to induce the
Lenders to extend credit under the Credit Agreement, this Agreement is given by the Pledgor in favor of the Administrative Agent
for the ratable benefit of each Lender (and each other Person who was a Lender or an Affiliate of a Lender in connection with a
Hedging Agreement) to secure the payment and performance of the Loans and all other Obligations (as defined in the Credit Agreement)
under the Credit Agreement. It is a condition to the obligation of the Lenders to make Loans under the Credit Agreement that the
Pledgor execute and deliver this Agreement.

 

Agreement

 

NOW THEREFORE, in consideration
of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Pledgor and the Administrative Agent hereby agree as follows:

 

    	 	1	 

     

    

 

ARTICLE
I

 

ARTICLE
II

DEFINITIONS AND INTERPRETATION

 

SECTION 2.1. Definitions.

 

(a)          Unless
otherwise defined herein or in the Credit Agreement, capitalized terms used herein that are defined in the UCC shall have the meanings
assigned to them in the UCC.

 

(b)          Capitalized
terms used but not otherwise defined herein that are defined in the Credit Agreement shall have the meanings given to them in the
Credit Agreement.

 

(c)          The
following terms shall have the following meanings:

 

“Additional Guarantors”
shall have the meaning assigned such term in Recital A hereof.

 

“Administrative
Agent” shall have the meaning assigned to such term in the Preamble hereof.

 

“Agreement”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Credit Agreement”
shall have the meaning assigned to such term in Recital A hereof.

 

“Distribution”
shall mean: (i) the declaration, payment or setting aside for payment of any dividend or other distribution on or in respect of
any Shares in the capital of the applicable Issuer, other than a dividend declared, paid or set aside for payment by the applicable
Issuer which is payable in shares of the applicable Issuer; and (b) the redemption, retraction, purchase, retirement or other acquisition,
in whole or in part, of any Shares in the capital of the applicable Issuer or any securities, instruments or contractual rights
capable of being converted into, exchanged or exercised for Shares in the capital of the applicable Issuer, including, without
limitation, options, warrants, conversion or exchange privileges and similar rights.

 

“Excluded Securities”
shall mean, collectively: (i) the Shares of any Restricted Subsidiary, to the extent that the pledge of Shares of such Restricted
Subsidiary would be prohibited by applicable Requirements of Law, (ii) the Shares of any joint venture to the extent that the pledge
of Shares of such joint venture would be prohibited by such joint venture’s Organizational Documents and (iii) the Shares
of any Foreign Subsidiary or any Foreign Subsidiary Holding Company (including Shares of a Restricted Subsidiary that are held
directly or indirectly by a Foreign Subsidiary or a Foreign Subsidiary Holding Company) other than (A) 65% of the Voting Stock
of each Restricted Subsidiary owned by any pledgor (including any pledgor that is a first-tier Foreign Subsidiary or a first-tier
Foreign Subsidiary Holding Company) and (B) 100% of the Shares not constituting Voting Stock of any such Restricted Subsidiary
owned by such Pledgor.

 

“Guarantor”
or “Guarantors” shall have the meaning assigned such term in Recital A hereof.

 

    	 	2	 

     

    

 

“Issuer”
shall mean any issuer of Shares that are included in, part of or otherwise constitute Pledged Securities.

 

“Lender”
or “Lenders” shall have the meaning assigned such term in Recital A hereof.

 

“Organizational
Document” shall mean, with respect to any Person, the articles of incorporation, certificate of incorporation, bylaws,
articles of organization, articles of formation, formation certificate, operating agreement, limited liability company agreement,
partnership agreement, joint venture agreement or such other organizational or governing documents, instruments or agreements of
such Person.

 

“Pledge Amendment”
shall have the meaning assigned to such term in Section 5.1 hereof.

 

“Pledged Collateral”
shall have the meaning assigned to such term in Section 2.1 hereof.

 

“Pledged Securities”
shall mean, collectively: (i) all Shares owned by the Pledgor that are listed on Schedule I hereto (as such schedule may be
amended or supplemented from time to time), (ii) all options, warrants, rights, agreements and additional Shares of whatever
class of such Issuer acquired by the Pledgor (including by issuance) in respect of such Shares or any other Shares described in
(i) through (vii) of this definition of “Pledged Securities,” (iii) all rights, privileges, authority and powers
of the Pledgor relating to such Shares in such Issuer or under any Organizational Document of such Issuer or any other Shares described
in (i) through (vii) of this definition of “Pledged Securities,” (iv) all certificates, instruments and agreements
representing such Shares or any other Shares described in (i) through (vii) of this definition of “Pledged Securities,”
(v) Distributions, including all dividends, distributions or returns of capital with respect to such Shares or any other Shares
described in (i) through (vii) of this definition of “Pledged Securities,” (vi) all additional Shares arising
or resulting from a stock split, stock dividend, revision, reclassification, exchange or otherwise, with respect to such Shares
or any other Shares described in (i) through (vii) of this definition of “Pledged Securities,” and (vii) all Shares
issued in respect of the foregoing Shares upon any merger or consolidation of any Issuer, in the case of (i) through (vii) whether
now existing or hereafter acquired; provided that, in any case, the Pledged Securities shall not at any time include any
Excluded Securities.

 

“Pledgor”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Proceeds”
shall mean the following property: (i) whatever is acquired upon the sale, lease, license, exchange, or other disposition of the
Pledged Securities or any books and records relating thereto, (ii) whatever is collected on, or distributed on account of, the
Pledged Securities or any books and records relating thereto, (iii) rights arising out of the Pledged Securities and all books
and records relating thereto, (iv) to the extent of the value of the Pledged Securities and all books and records relating thereto,
claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage
to, the Pledged Securities or any books and records relating thereto or (v) to the extent of the value of the Pledged Securities
and all books and records relating thereto and to the extent payable to the Pledgor or the Administrative Agent, insurance payable
by reason of the loss or nonconformity of, defects or infringements of rights in, or damage to, the Pledged Securities or any books
and records relating thereto; provided that, in any case, the Proceeds shall not at any time include any Excluded Securities.

 

    	 	3	 

     

    

 

“UCC”
shall mean the Uniform Commercial Code as in effect from time to time in such United States jurisdiction that governs the perfection
or priority of the Administrative Agent’s Lien on or security interest in any item or portion of the Pledged Collateral.

 

ARTICLE
III

grant of security and obligations

 

SECTION 3.1. Grant of
Security Interest. As collateral security for the prompt and complete payment and performance in full of all the Obligations,
the Pledgor hereby pledges, assigns and grants to the Administrative Agent, for the ratable benefit of each Lender (and each other
Person who was a Lender or an Affiliate of a Lender in connection with a Hedging Agreement), a Lien on and continuing security
interest in and to all of the right, title and interest of the Pledgor in, to and under the following property, wherever located,
and whether now existing or hereafter arising or acquired from time to time (collectively, the “Pledged Collateral”):

 

(i)          all
Pledged Securities;

 

(ii)         all books and records relating to the Pledged Securities; and

 

(iii)        all
Proceeds of any of the foregoing clauses (i) and (ii) and all substitutions and replacements for, and profits and products of,
each of the foregoing, and any and all Proceeds of any insurance, indemnity, warranty or guaranty payable to the Pledgor from time
to time with respect to the foregoing Pledged Collateral. 

 

ARTICLE
III

Perfection; Supplements; Further Assurances;

Use of Pledged Collateral

 

SECTION 3.1. Delivery
of Certificated Securities Collateral; Perfection. The Pledgor represents and warrants that: (a) all certificates, agreements
or instruments representing or evidencing the Pledged Securities in existence on the date hereof have been delivered to the Administrative
Agent in suitable form for transfer by delivery or accompanied by duly executed instruments of transfer or assignments in blank;
(b) all requisite taxes, fees and other amounts, including stock transfer tax stamps, imposed by applicable Governmental Authorities
in connection with this Agreement and the delivery of the certificates, agreements or instruments referred to in the foregoing
clause (a) have been paid in full; (c) all necessary and appropriate entries, notations, and written descriptions in the books,
records or share registry of the Pledgor and each Issuer of Pledged Securities, which are necessary or desirable to create, evidence,
or perfect the pledge of the Pledged Collateral pursuant hereto, have been made; and (d) the Administrative Agent has (or has made
arrangements for delivery of such Shares and will have, upon the delivery of the certificate representing such Shares) a valid
and perfected first priority security interest in the Pledged Collateral (subject to Permitted Liens). The Pledgor hereby agrees
that the certificates representing the Shares of RG Mexico and all certificates, agreements or instruments representing or evidencing
Pledged Securities acquired by the Pledgor after the date hereof shall promptly (but in any event within five (5) Banking Days
after receipt thereof by the Pledgor (or such longer period as the Administrative Agent may agree in its sole discretion)) be delivered
to and held by or on behalf of the Administrative Agent pursuant hereto, and the Pledgor shall forthwith take all other actions
necessary or advisable in the reasonable opinion of the Administrative Agent pursuant to applicable Requirements of Law to create,
evidence, and perfect the pledge of the Pledged Collateral. All certificated Pledged Securities shall be in suitable form for transfer
by delivery or shall be accompanied by duly executed instruments of transfer or assignments in blank, all in form and substance
reasonably satisfactory to the Administrative Agent. The Administrative Agent shall have the right, at any time upon the occurrence
and during the continuance of any Event of Default, to endorse, assign or otherwise transfer to or to register in the name of the
Administrative Agent or any of its nominees or endorse for negotiation any or all of the Pledged Securities, without any indication
that such Pledged Securities are subject to the security interest hereunder. In addition, upon the occurrence and during the continuance
of an Event of Default, the Administrative Agent shall have the right at any time to exchange certificates representing or evidencing
Pledged Securities for certificates of smaller or larger denominations.

 

    	 	4	 

     

    

 

SECTION 3.2. Financing
Statements and Other Filings; Maintenance of Perfected Security Interest. The Pledgor hereby irrevocably authorizes the Administrative
Agent at any time and from time to time to file any financing statements or other similar filings and amendments thereto covering
the Pledged Collateral that contain the information required, with respect to each applicable jurisdiction, whether pursuant Article 9
of the UCC or other applicable Requirements of Law, including (i) whether such Pledgor is an organization, the type of organization
and any organizational identification number issued to the Pledgor and the address of Pledgor, and (ii) any financing or continuation
statements or other documents or instruments, without the signature of the Pledgor where permitted by law. The Pledgor agrees to
provide all information described in the immediately preceding sentence to the Administrative Agent promptly upon request by the
Administrative Agent. The Pledgor agrees, at the sole cost and expense of the Pledgor, to take such actions as the Administrative
Agent may from time to time reasonably request to perfect the Administrative Agent’s security interest in the Pledged Securities
to the extent required hereunder. 

 

SECTION 3.3. Supplements;
Further Assurances. The Pledgor shall take such further actions, execute and/or deliver to the Administrative Agent such additional
financing statements, amendments, assignments, agreements, supplements, powers and instruments and make or cause to be made such
entries and notations in the books, records or share registry of the Pledgor or the respective Issuer of the Pledged Securities
as the Administrative Agent may in its reasonable judgment deem necessary or appropriate in order to create, perfect, preserve,
record and protect the pledge of and security interest in the Pledged Collateral as provided herein and the rights and interests
granted to the Administrative Agent hereunder, to carry into effect the purposes hereof or to assure and confirm the validity,
enforceability and priority of the Administrative Agent’s security interest in the Pledged Collateral or to permit the Administrative
Agent to exercise and enforce its rights, powers and remedies hereunder with respect to any Pledged Collateral, including the filing
of financing statements, amendments, continuation statements and other documents (including this Agreement) under the UCC or other
applicable Requirements of Law. Without limiting the generality of the foregoing, the Pledgor shall make, execute, endorse, acknowledge,
file or refile and/or deliver to the Administrative Agent from time to time upon reasonable request by the Administrative Agent
such schedules, descriptions and designations of the Pledged Collateral, additional security agreements, financing statements,
transfer endorsements, powers of attorney, certificates, notations in the books, records and shareholder registry documents of
the Issuer of the Pledged Securities, and other actions, assurances or instruments as the Administrative Agent shall reasonably
request. If an Event of Default has occurred and is continuing, the Administrative Agent may institute and maintain, in its own
name or in the name of the Pledgor, such suits and proceedings as the Administrative Agent may be advised by counsel shall be necessary
or expedient to prevent any impairment of the security interest in or the perfection thereof in the Pledged Collateral. All of
the foregoing shall be at the sole cost and expense of the Pledgor in accordance with Section 8.13 of this Agreement.

 

    	 	5	 

     

    

 

ARTICLE
IV

representations, warranties and covenants

 

The Pledgor hereby remakes
and restates its representations, warranties and covenants set forth in the Credit Agreement and incorporates them herein as if
set forth herein and further represents, warrants and covenants as follows:

 

SECTION 4.1. Title.

 

(a)          The
Pledgor has good title to the Pledged Securities, free from Liens other than the Permitted Liens. Further, none of the Pledged
Securities is subject to any voting agreement, shareholder agreement, voting trust, proxy or other agreement or arrangement with
respect to voting or decision-making or any option or agreement for the sale or transfer of such Pledged Securities.

 

(b)          The
Pledged Securities subject to this Agreement, as described on Schedule 1 hereto, constitute 100% of the Shares of RG Mexico and
65% of the Shares of RGLD Holdings. As of the Closing Date, the Shares set forth on Schedule I hereto constitute the only Shares
of any Restricted Subsidiary organized in the United States or any state thereof in which the Pledgor has any rights and are required
to be pledged pursuant to Section 2.1 hereof and the terms of the Credit Agreement.

 

SECTION 4.2. Validity
of Security Interest. The pledge of, security interest in and Lien on the Pledged Collateral granted to the Administrative
Agent for the benefit of the Lenders (and those Persons who were Lenders or Affiliates of a Lender in connection with a Hedging
Agreement) hereunder constitutes (a) a legal and valid security interest in all the Pledged Collateral to the extent required
hereunder, subject to the Permitted Liens, which secures the payment and performance of the Obligations, and (b) subject to
delivery to the Administrative Agent of the certificated Pledged Securities with all necessary indorsements as described in Section 3.1
hereof and the filings and other actions described herein, a perfected security interest in all the Pledged Collateral of the Pledgor
to the extent such security interest is required to be perfected in accordance with Article III hereof. The pledge, security interest
and Lien granted to the Administrative Agent for the benefit of the Lenders (and such other Persons) pursuant to this Agreement
in and on the Pledged Collateral will at all times constitute a perfected, continuing security interest therein, prior to all other
Liens on the Pledged Collateral, subject to the Permitted Liens.

 

    	 	6	 

     

    

 

SECTION 4.3. Defense
of Claims; Transferability of Pledged Collateral. The Pledgor shall, at its own cost and expense, defend title to the Pledged
Collateral pledged by it hereunder and the security interest therein and Lien thereon granted to the Administrative Agent and the
priority thereof against all claims and demands of all Persons at any time claiming any interest therein materially adverse to
the Administrative Agent or any Lender. There is no agreement, order, judgment or decree, and the Pledgor shall not enter into
any agreement or take any other action, that would restrict the transferability of any of the Pledged Collateral or otherwise impair
or conflict with the Pledgor’s obligations or the rights of the Administrative Agent hereunder.

 

SECTION 4.4. Other Financing
Statements; Control. The Pledgor has not filed, nor authorized any third party to file (nor will there be), any valid or effective
security agreement, pledge, financing statement or other similar filing or instrument covering or purporting to cover any interest
of any kind in the Pledged Collateral, except such as have been filed in favor of the Administrative Agent pursuant to this Agreement
and the other Credit Documents, or as permitted under the Credit Agreement or have been terminated. The Pledgor shall not execute,
authorize or permit to be filed in any public office any security agreement, pledge, financing statement (or similar statement,
instrument of registration or public notice under the law of any jurisdiction) relating to any Pledged Collateral, except in favor
of the Administrative Agent as provided for hereunder and under the other Credit Documents. The Pledgor shall not cause or permit
any Person other than the Administrative Agent or a Lender to have possession of or control over any part of the Pledged Collateral.

 

SECTION 4.5. Due Authorization
and Issuance. All of the Pledged Securities existing on the date hereof have been, and to the extent any Pledged Securities
are hereafter issued, such Pledged Securities will be, upon such issuance, duly authorized, validly issued and fully paid and non-assessable.
There is no amount or other obligation owing by the Pledgor to any Issuer of the Pledged Securities in exchange for or in connection
with the issuance of the Pledged Securities.

 

SECTION 4.6. Consents,
etc. During the occurrence and continuation of an Event of Default, in the event that the Administrative Agent desires to exercise
any remedies, voting or consensual rights or attorney-in-fact powers set forth in this Agreement and determines it necessary to
obtain any approvals or consents of any Official Body or any other person therefor, then, upon the reasonable request of the Administrative
Agent, the Pledgor agrees to use its best efforts to assist and aid the Administrative Agent to obtain as soon as practicable any
necessary approvals or consents for the exercise of any such remedies, rights and powers.

 

SECTION 4.7. Defaults,
etc. The Pledgor is not in default in the payment of any portion of any mandatory capital contribution, if any, required to
be made under any agreement to which the Pledgor is a party relating to the Pledged Securities pledged by it, and the Pledgor is
not in violation of any other provisions of any such agreement to which the Pledgor is a party, or otherwise in default or violation
thereunder. No Pledged Securities pledged by the Pledgor are subject to any defense, offset or counterclaim, nor have any of the
foregoing been asserted or alleged against the Pledgor by any person with respect thereto, and as of the date hereof, there are
no certificates, instruments, documents or other writings (other than the Organizational Documents and certificates representing
Pledged Securities that have been delivered to the Administrative Agent) which evidence any Pledged Securities of the Pledgor.

 

    	 	7	 

     

    

 

SECTION 4.8. Pledged
Collateral; Pledgor’s Name. All information set forth herein, including the schedules hereto, and all information contained
in any schedules and lists heretofore delivered to any Lender, in connection with this Agreement, in each case, relating to the
Pledged Collateral, is accurate and complete in all respects. The Pledgor’s full and complete legal name is accurately set
forth in the preamble hereto. The Pledgor shall not change the location of its principal place of business or chief executive office
without the prior written consent of the Administrative Agent, not to be unreasonably withheld.

 

SECTION 4.9. Permitted
Reorganization. Notwithstanding anything to the contrary in this Agreement or any other Credit Document, the Pledgor and its
Subsidiaries shall be permitted to effectuate the Permitted Reorganization; provided that, as a condition to the Permitted
Reorganization, the Pledgor shall have taken all necessary steps reasonably requested by the Administrative Agent to ensure the
continuing validity, perfection and priority of the security interest in the Pledged Collateral after giving effect to the Permitted
Reorganization.

 

ARTICLE
V

certain Provisions Concerning Securities Collateral

 

SECTION 5.1. Pledge
of Additional Securities Collateral. The Pledgor shall, upon obtaining any Pledged Securities, accept the same in trust for
the benefit of the Administrative Agent and promptly (but in any event within thirty (30) Banking Days after receipt thereof) deliver
to the Administrative Agent a pledge amendment, duly executed by the Pledgor, in substantially the form of Exhibit A
hereto (each, a “Pledge Amendment”), and the certificates and other documents required under Section 3.1
hereof in respect of the additional Pledged Securities which are to be pledged pursuant to this Agreement, and confirming the attachment
of the Lien hereby created on and in respect of such additional Pledged Securities. The Pledgor hereby authorizes the Administrative
Agent to attach each Pledge Amendment to this Agreement and agrees that all Pledged Securities listed on any Pledge Amendment delivered
to the Administrative Agent shall for all purposes hereunder be considered Pledged Collateral. The Pledgor and the Administrative
Agent agree that such additional Pledged Securities shall be, and shall be deemed to be, part of the Pledged Collateral and subject
to the terms of this Agreement whether or not a Pledge Amendment is signed and delivered or this Agreement is otherwise amended
to refer to such additional Pledged Securities.

 

SECTION 5.2. Voting
Rights; Distributions; etc.

 

(a)          So
long as no Event of Default shall have occurred and be continuing:

 

(i)          The
Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Securities or any
part thereof for any purpose not inconsistent with the terms or purposes hereof, the Credit Agreement or any other Credit Document;
provided, however, that the Pledgor shall not in any event exercise such rights in any manner which could reasonably
be expected to have a Material Adverse Effect.

 

    	 	8	 

     

    

 

(ii)         The
Pledgor shall be entitled to receive and retain, and to utilize free and clear of the Lien hereof, any and all Distributions in
respect of the Pledged Securities; provided, however, that any and all such Distributions consisting of rights or
interests in the form of securities of an Issuer shall, to the extent that such securities do not constitute Excluded Securities,
be forthwith delivered to the Administrative Agent to hold as Pledged Collateral and shall, if received by the Pledgor and to the
extent that such securities do not constitute Excluded Securities, be received in trust for the benefit of the Administrative Agent,
be segregated from the other property or funds of the Pledgor and be promptly (but in any event within five (5) Banking Days after
receipt thereof) delivered to the Administrative Agent as Pledged Collateral in the same form as so received (with any necessary
endorsement).

 

(b)          The
Administrative Agent shall be deemed without further action or formality to have granted to the Pledgor all necessary consents
relating to voting rights and shall, if necessary, upon written request of the Pledgor and at the sole cost and expense of the
Pledgor, from time to time execute and deliver (or cause to be executed and delivered) to the Pledgor all such instruments as the
Pledgor may reasonably request in order to permit the Pledgor to exercise the voting and other rights which it is entitled to exercise
pursuant to Section 5.2(a)(i) hereof and to receive the Distributions which it is authorized to receive and retain
pursuant to Section 5.2(a)(ii) hereof.

 

(c)          Upon
the occurrence and during the continuance of any Event of Default:

 

(i)          All
rights of the Pledgor to exercise the voting and other consensual rights it would otherwise be entitled to exercise pursuant to
Section 5.2(a)(i) hereof shall immediately cease, and all such rights shall thereupon become vested in the Administrative
Agent, which shall thereupon have the sole right to exercise such voting and other consensual rights.

 

(ii)         All
rights of the Pledgor to receive Distributions in respect of the Pledged Securities which it would otherwise be authorized to receive
and retain pursuant to Section 5.2(a)(ii) hereof shall immediately cease and all such rights shall thereupon become
vested in the Administrative Agent, which shall thereupon have the sole right to receive and hold as Pledged Collateral such Distributions.

 

(d)          The
Pledgor shall, at its sole cost and expense, from time to time execute and deliver to the Administrative Agent appropriate instruments
and documents as the Administrative Agent may request in order to permit the Administrative Agent to exercise the voting and other
rights which it may be entitled to exercise pursuant to Section 5.2(c)(i) hereof and to receive all Distributions which
it may be entitled to receive under Section 5.2(c)(ii) hereof.

 

(e)          All
Distributions in respect of the Pledged Securities which are received by the Pledgor contrary to the provisions of Section 5.2(c)(ii)
hereof shall be received in trust for the benefit of the Administrative Agent, shall be segregated from the other property and
funds of the Pledgor and shall immediately be paid over to the Administrative Agent as Pledged Collateral in the same form as so
received (with any necessary endorsement).

 

    	 	9	 

     

    

 

ARTICLE
VI

Transfers

 

SECTION 6.1. Transfers
of Pledged Collateral. The Pledgor shall not sell, convey, assign, transfer or otherwise dispose of, or grant any option with
respect to, any of the Pledged Collateral pledged by it hereunder, or agree to do or undertake any of the foregoing, or permit
or cause any Issuer or any other Person to do or undertake any of the foregoing, except in favor of the Administrative Agent as
provided for herein or as otherwise permitted pursuant to the Credit Agreement.

 

ARTICLE
VII

REMEDIES

 

SECTION 7.1. Remedies.
Upon the occurrence and during the continuance of any Event of Default, the Administrative Agent may from time to time exercise
in respect of the Pledged Collateral, in addition to the other rights and remedies provided for herein or otherwise available to
it, whether in law or in equity, the following remedies:

 

(a)          Demand,
sue for, collect or receive any money or property at any time payable or receivable in respect of the Pledged Collateral, including
instructing the obligor or obligors on any agreement, instrument or other obligation constituting part of the Pledged Collateral
to make any payment required by the terms of such agreement, instrument or other obligation directly to the Administrative Agent,
and in connection with any of the foregoing, compromise, settle, extend the time for payment and make other modifications with
respect thereto; provided, however, that, in the event that any such payments are made directly to the Pledgor, prior
to receipt by any such obligor, or in violation, of such instruction, the Pledgor shall receive all such amounts in trust for the
benefit of the Administrative Agent and shall segregate all amounts received from the other property or funds of the Pledgor and
shall promptly (but in no event later than one (1) Banking Day after receipt thereof) pay such amounts to the Administrative Agent;

 

(b)          Withdraw
all moneys, instruments, securities and other property in any bank, financial securities, deposit or other account of the Pledgor
constituting Pledged Collateral for application to the Obligations;

 

(c)          Retain
and apply the Distributions in respect of the Pledged Securities to the Obligations;

 

(d)          Exercise
any and all rights as beneficial and legal owner of the Pledged Collateral, including perfecting assignment of and exercising any
and all voting, consensual and other rights and powers with respect to any Pledged Collateral;

 

(e)          Retain
all or any portion of the Pledged Collateral in satisfaction of the Obligations, but only after providing any notices required
by the UCC or other Requirements of Law and otherwise complying with all applicable Requirements of Law. Unless and until the Administrative
Agent shall have provided such notices and complied with all applicable Requirements of Law in order to retain the Pledged Collateral
in satisfaction of the Obligations, the Administrative Agent shall not be deemed to have retained any Pledged Collateral in satisfaction
of any Obligations for any reason; and

 

    	 	10	 

     

    

 

(f)          Exercise
all the rights and remedies of a secured party on default under the UCC or other applicable Requirements of Law. The Administrative
Agent may also in its sole discretion sell or assign the Pledged Collateral or any part thereof in one or more parcels at public
or private sale, at any exchange, broker’s board or at any of the Administrative Agent’s offices or elsewhere, for
cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable.
To the extent permitted by applicable law, the Administrative Agent or any Lender or any of their respective Affiliates may be
the purchaser, assignee or recipient of the Pledged Collateral or any part thereof at any such sale and shall be entitled, for
the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Pledged Collateral
sold or assigned at such sale, to use and apply any of the Obligations owed to such Person as a credit on account of the purchase
price of the Pledged Collateral or any part thereof payable by such Person at such sale. Each purchaser, assignee or recipient
at any such sale shall acquire the property sold or assigned absolutely free from any claim or right on the part of the Pledgor,
and the Pledgor hereby waives, to the fullest extent permitted by law, all rights of redemption, stay and/or appraisal which it
now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. The Administrative
Agent shall not be obligated to make any sale of the Pledged Collateral or any part thereof regardless of notice of sale having
been given. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. The Pledgor
hereby waives, to the fullest extent permitted by law, any claims against the Administrative Agent arising by reason of the fact
that the price at which the Pledged Collateral or any part thereof may have been sold or assigned at such a private sale was less
than the price which might have been obtained at a public sale.

 

SECTION 7.2. Notice
of Sale. The Pledgor acknowledges and agrees that ten (10) Banking Days’ prior notice to the Pledgor of the time and
place of any public sale or of the time after which any private sale or other intended disposition is to take place shall be given
to the Pledgor and such notice shall be commercially reasonable notification of such matters.

 

SECTION 7.3. Waiver
of Notice and Claims. The Pledgor hereby waives, to the fullest extent permitted by applicable law, notice or judicial hearing
in connection with the Administrative Agent’s taking possession or the Administrative Agent’s disposition of the Pledged
Collateral or any part thereof, including any and all prior notice and hearing for any prejudgment remedy or remedies and any such
right which the Pledgor would otherwise have under law, and the Pledgor hereby further waives, to the fullest extent permitted
by applicable law: (i) all damages occasioned by such taking of possession, (ii) all other requirements as to the time,
place and terms of sale or other requirements with respect to the enforcement of the Administrative Agent’s rights hereunder
and (iii) all rights of redemption, appraisal, valuation, stay, extension or moratorium now or hereafter in force under any
applicable law. Any sale of or any other realization upon any Pledged Collateral shall operate to divest all right, title, interest,
claim and demand, either at law or in equity, of the Pledgor therein and thereto, and shall be a perpetual bar both at law and
in equity against the Pledgor and against any and all persons claiming or attempting to claim the Pledged Collateral so sold or
realized upon, or any part thereof, from, through or under the Pledgor.

 

    	 	11	 

     

    

 

SECTION 7.4. Certain
Sales of Pledged Collateral.

 

(a)          The
Pledgor recognizes that, by reason of certain prohibitions contained in law, rules, regulations or orders of any Official Body,
including all applicable federal, provincial or state securities laws, the Administrative Agent may be compelled, with respect
to any sale of all or any part of the Pledged Collateral, to limit purchasers to those who meet the requirements of such Official
Body. The Pledgor acknowledges that any such sales may be at prices and on terms less favorable to the Administrative Agent than
those obtainable through a public sale without such restrictions, and, notwithstanding such circumstances, agrees that any such
restricted sale shall not be deemed to have been made in other than a commercially reasonable manner by reason thereof and that,
except as may be required by applicable law, the Administrative Agent shall have no obligation to engage in public sales or to
delay the sale of any Pledged Securities for the period of time necessary to permit the issuer thereof to register it for a form
of public sale requiring registration under the United States Securities Act of 1933 or under applicable state securities laws,
even if such Issuer would agree to do so.

 

(b)          In
connection with the Administrative Agent’s sale of any or all of the Pledged Securities, upon written request, the Pledgor
shall from time to time furnish to the Administrative Agent all such information as the Administrative Agent may reasonably request
in order to determine the number of securities included in the Pledged Securities which may be sold by the Administrative Agent
as exempt transactions under applicable federal, provincial and state securities laws and the rules promulgated thereunder, as
the same are from time to time in effect.

 

SECTION 7.5. No Waiver;
Cumulative Remedies.

 

(a)          No
failure on the part of the Administrative Agent to exercise, no course of dealing with respect to, and no delay on the part of
the Administrative Agent in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single
or partial exercise of any such right, power, privilege or remedy hereunder preclude any other or further exercise thereof or the
exercise of any other right, power, privilege or remedy. All rights and remedies herein provided are cumulative and are not exclusive
of any rights or remedies provided by law or otherwise available.

 

(b)          In
the event that the Administrative Agent shall have instituted any proceeding to enforce any right, power, privilege or remedy under
this Agreement or any other Credit Document by foreclosure, sale, entry or otherwise, and such proceeding shall have been discontinued
or abandoned for any reason, then and in every such case, the Pledgor, the Administrative Agent and each Lender shall be restored
to their respective former positions and rights hereunder with respect to the Pledged Collateral, and all rights, remedies, privileges
and powers of the Administrative Agent and the Lenders shall continue as if no such proceeding had been instituted.

 

SECTION 7.6. Application
of Proceeds. The proceeds received by the Administrative Agent in respect of any sale of, collection from or other realization
upon all or any part of the Pledged Collateral pursuant to the exercise by the Administrative Agent of its remedies, including
the Proceeds of the sale of the Pledged Collateral or any part thereof, shall be applied, together with any other sums then held
by the Administrative Agent pursuant to this Agreement, in accordance with the Credit Agreement.

 

    	 	12	 

     

    

 

ARTICLE
VIII

miscellaneous

 

SECTION 8.1. Concerning
Administrative Agent.

 

(a)          The
Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral
in its possession if such Pledged Collateral is accorded treatment substantially equivalent to that which the Administrative Agent,
in its individual capacity, accords its own property consisting of similar instruments or interests, it being understood that Administrative
Agent shall not have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relating to any Pledged Securities, whether or not the Administrative Agent or any Lender has or is deemed
to have knowledge of such matters or (ii) taking any necessary steps to preserve rights against any Person with respect to
any Pledged Collateral.

 

(b)          The
Administrative Agent shall be entitled to rely upon any written notice, statement, certificate, order or other document or any
telephone message believed by it in good faith to be genuine and correct and to have been signed, sent or made by the proper person,
and, with respect to all matters pertaining to this Agreement and its duties hereunder, upon advice of counsel selected by it.

 

SECTION 8.2. Administrative
Agent May Perform; Administrative Agent Appointed Attorney-in-Fact.

 

(a)          If
the Pledgor shall fail to perform any covenants contained in this Agreement or any other Credit Document, the Administrative Agent
may (but shall not be obligated to) advance funds on behalf of the Pledgor in order to insure the Pledgor’s compliance with
any covenant in this Agreement or any other Credit Document; provided, however, that, the Administrative Agent shall in no event
be bound to inquire into the validity of any tax, Lien, imposition or other obligation which the Pledgor fails to pay or perform
as and when required hereby and which the Pledgor does not contest in accordance with the provisions of the Credit Agreement. Any
and all amounts so expended by the Administrative Agent shall be paid by the Pledgor and shall become part of the Obligations.
Neither the provisions of this Section 8.2 nor any action taken by the Administrative Agent pursuant to the provisions
of this Section 8.2 shall prevent any such failure to observe any covenant contained in this Agreement nor any breach
of representation or warranty from constituting an Event of Default.

 

(b)          The
Pledgor hereby appoints the Administrative Agent as its attorney-in-fact, with full power and authority in the place and stead
of the Pledgor and in the name of the Pledgor, or otherwise, from time to time during the continuation of an Event of Default,
in the Administrative Agent’s discretion, to take any action and to execute any instrument, document or agreement consistent
with the terms of the Credit Agreement and this Agreement, which the Administrative Agent may deem necessary or advisable to accomplish
the purposes hereof (but the Administrative Agent shall not be obligated to and shall have no liability to the Pledgor or any third
party for failure to so do or take action). The foregoing grant of authority is a power of attorney coupled with an interest and
such appointment shall be irrevocable for the term hereof. The Pledgor hereby ratifies all that such attorney shall lawfully do
or cause to be done by virtue hereof.

 

    	 	13	 

     

    

 

SECTION 8.3. Continuing
Security Interest; Assignment. This Agreement shall create a continuing security interest in the Pledged Collateral and shall
(i) be binding upon the Pledgor, its successors and assigns and (ii) inure, together with the rights and remedies of
the Administrative Agent hereunder, to the benefit of the Administrative Agent, its successors, transferees and assigns and each
of the Lenders, their successors and assigns. Without limiting the generality of the foregoing clause (ii), any Lender may
assign or otherwise transfer any indebtedness held by it secured by this Agreement to any other person, and such other person shall
thereupon become vested with all the benefits in respect thereof granted to such Lender, herein or otherwise, subject however,
to the provisions of the Credit Agreement. The Pledgor agrees that its obligations hereunder and the pledge and security interest
created hereunder shall continue to be effective or be reinstated, as applicable, if at any time payment, or any part thereof,
of all or any part of the Obligations is rescinded or must otherwise be restored by any Lender upon the bankruptcy or reorganization
of the Pledgor or otherwise.

 

SECTION 8.4. Termination;
Release. When (a) all of the principal, interest, fees and other amounts due and payable under the Credit Agreement and the
other Credit Documents have been irrevocably paid in full, (b) the Credit Documents have been terminated and discharged and (c)
there exists no commitment by Pledgor which could give rise to any Obligations (other than for contingent Obligations for which
no claim has been made), this Agreement shall terminate. Upon termination of this Agreement, the Pledged Collateral shall be released
from the Lien of this Agreement. Upon such release or any release of Pledged Collateral or any part thereof, the Administrative
Agent shall, promptly upon the request and at the sole cost and expense of the Pledgor, assign, transfer and deliver to the Pledgor,
against receipt and without recourse to or warranty by the Administrative Agent except as to the fact that the Administrative Agent
has not encumbered the released assets, such of the Pledged Collateral or any part thereof to be released (in the case of a release)
as may be in possession of the Administrative Agent and as shall not have been sold or otherwise applied pursuant to the terms
hereof, and, with respect to any other Pledged Collateral, proper documents and instruments acknowledging the termination hereof
or the release of such Pledged Collateral, as the case may be.

 

SECTION 8.5. Modification
in Writing. No amendment, modification, supplement, termination or waiver of or to any provision hereof, nor consent to any
departure by any Pledgor therefrom, shall be effective unless the same shall be made in accordance with the terms of the Credit
Agreement and unless in writing and signed by the Administrative Agent. Any amendment, modification or supplement of or to any
provision hereof, any waiver of any provision hereof and any consent to any departure by the Pledgor from the terms of any provision
hereof in each case shall be effective only in the specific instance and for the specific purpose for which made or given. Except
where notice is specifically required by this Agreement or the Credit Documents, no notice to or demand on the Pledgor in any case
shall entitle the Pledgor to any other or further notice or demand in similar or other circumstances.

 

    	 	14	 

     

    

 

SECTION 8.6. Notices.
Unless otherwise provided herein or in the Credit Agreement, any notice or other communication herein required or permitted to
be given shall be given in the manner and become effective as set forth in the Credit Agreement, as to the Pledgor, addressed to
it at its address set forth in the Credit Agreement and as to the Administrative Agent, addressed to it at the address set forth
in the Credit Agreement, or in each case at such other address as shall be designated by such party in a written notice to the
other party complying as to delivery with the terms of this Section 8.6.

 

SECTION 8.7. Choice
of Law; Forum Selection; Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York. The Pledgor hereby irrevocably submits to the exclusive jurisdiction of any state or federal court
sitting in New York, New York (and any appellate court thereof) over any legal action or proceeding with respect to this Agreement
and the Pledgor hereby irrevocably agrees that all claims in respect of any such proceeding may be heard and determined in such
state court, or, to the extent permitted by law, in such federal court. The Pledgor hereby irrevocably waives, to the fullest extent
it may effectively do so, the defense of an inconvenient forum or improper venue to the maintenance of any such proceeding. The
Pledgor irrevocably consents to the service of process out of any of the aforementioned courts in any such action or proceeding
as provided in Section 15.1 of the Credit Agreement. The Pledgor agrees that a final judgment in any such proceeding shall be conclusive
and may be executed upon and enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing
herein shall limit the right of the Administrative Agent or any Lender to serve legal process in any other manner permitted by
law or to commence legal proceedings or otherwise proceed against the Pledgor or its property in any other jurisdiction. The taking
of any proceedings in any one or more jurisdictions shall not preclude the taking of any proceedings in any other jurisdiction.

 

SECTION 8.8. Waiver
of Jury Trial. The Pledgor and the Administrative Agent hereby irrevocably and unconditionally waive, to the extent permitted
by applicable law, trial by jury in any legal action or proceeding relating to this Agreement and for any counterclaim therein.

 

SECTION 8.9. Severability
of Provisions. Any provision hereof which is invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating the remaining provisions hereof
or affecting the validity, legality or enforceability of such provision in any other jurisdiction.

 

SECTION 8.10. Execution
in Counterparts. This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed
to be an original, but all such counterparts together shall constitute one and the same agreement. This Agreement may be validly
executed and delivered by facsimile or other electronic transmission (including e-mail), and a signature by facsimile, portable
document format (.pdf) or other electronic transmission shall be as effective and binding as an original signature.

 

SECTION 8.11. Banking
Days. In the event any time period or any date provided in this Agreement ends or falls on a day other than a Banking Day,
then such time period shall be deemed to end and such date shall be deemed to fall on the next succeeding Banking Day, and performance
herein may be made on such Banking Day, with the same force and effect as if made on such other day.

 

    	 	15	 

     

    

 

SECTION 8.12. No Release.
Nothing set forth in this Agreement or any other Credit Document, nor the exercise by the Administrative Agent of any of the rights
or remedies hereunder, shall relieve the Pledgor from the performance of any term, covenant, condition or agreement on the Pledgor’s
part to be performed or observed under or in respect of any of the Pledged Collateral or from any liability to any Person under
or in respect of any of the Pledged Collateral or shall impose any obligation on the Administrative Agent or any Lender to perform
or observe any such term, covenant, condition or agreement on the Pledgor’s part to be so performed or observed or shall
impose any liability (other than for gross negligence, bad faith or willful misconduct) on the Administrative Agent or any Lender
for any act or omission on the part of the Pledgor relating thereto or for any breach of any representation or warranty on the
part of the Pledgor contained in this Agreement, the Credit Agreement or the other Credit Documents, or under or in respect of
the Pledged Collateral or made in connection herewith or therewith. Anything herein to the contrary notwithstanding, neither the
Administrative Agent nor any Lender shall have any obligation or liability under any contracts, agreements and other documents
included in the Pledged Collateral by reason of this Agreement, nor shall the Administrative Agent or any Lender be obligated to
perform any of the obligations or duties of the Pledgor thereunder or to take any action to collect or enforce any such contract,
agreement or other document included in the Pledged Collateral hereunder. The obligations of the Pledgor contained in this Section 8.12
shall survive the termination hereof and the discharge of the Pledgor’s other obligations under this Agreement, the Credit
Agreement and the other Credit Documents.

 

SECTION 8.13. Indemnity
and Expenses. The Pledgor agrees to indemnify the Administrative Agent in its capacity hereunder from and against any and all
claims, demands, actions, causes of action, suits, losses, costs, charges, liabilities and damages, and expenses in connection
therewith incurred or suffered by, or asserted against, the Administrative Agent in any way relating to or arising out of the Pledged
Securities, this Agreement, or any documents contemplated by or referred to herein, the transactions contemplated hereby or any
action taken or omitted by the Administrative Agent under or in connection with any of the foregoing, or otherwise, unless arising
from the gross negligence, bad faith or willful misconduct of the Administrative Agent, subject to the limitations contained in
and without duplication of Sections 8.5 and 15.16 of the Credit Agreement.

 

SECTION 8.14. Survival.
All covenants, agreements, representations and warranties made hereunder or made in connection with the Credit Agreement and the
other Credit Documents shall survive the execution and delivery of this Agreement, and shall continue in full force and effect
until the security interest created herein is discharged.

 

SECTION 8.15. Acknowledgments. The
Pledgor hereby acknowledges that:

 

(a)          it
has been advised by its own legal counsel in the negotiation, preparation, execution and delivery of this Agreement and each other
Credit Document;

 

    	 	16	 

     

    

 

(b)          this
Agreement shall not be construed against any party or more favorably in favor of any party based upon which party drafted the same,
it being agreed and acknowledged that all parties contributed substantially to the negotiation and preparation of this Agreement;

 

(c)          neither
the Administrative Agent nor the Lenders have any fiduciary relationship with or duty to the Pledgor, and the relationship between
the Administrative Agent and Lenders, on the one hand, and the Pledgor, on the other hand, in connection herewith is solely that
of creditor and debtor; and

 

(d)          this
Agreement does not create a joint venture or partnership among the parties hereto, and no joint venture, partnership or other fiduciary
relationship exists, or shall be deemed to exist, among the Administrative Agent, the Lenders and the Pledgor.

 

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remainder of this page
intentionally blank

 

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    	 	17	 

     

    

 

IN WITNESS WHEREOF, the
Pledgor has caused this Agreement to be duly executed and delivered by its duly authorized officer as of the date first above written.

 

	 	ROYAL GOLD INC., as Pledgor
	 	 	 
	 	By:	/s/ Stefan Wenger
	 	 	Name:  Stefan Wenger
	 	 	Title:   Chief Financial Officer and Treasurer

 

    	 	18	 

     

    

 

	 	THE BANK OF NOVA SCOTIA, as Administrative Agent
	 	 	 
	 	By:	/s/ Clement Yu
	 	 	Name:  Clement Yu
	 	 	Title:  Director
	 	 	 
	 	By:	/s/ Ryan Moonilal
	 	 	Name:  Ryan Moonilal
	 	 	Title:  Analyst

 

    	 	19	 

     

    

 

SCHEDULE I

 

PLEDGED SECURITIES

 

	ISSUER	 	CLASS
 OF STOCK
 OR

INTERESTS	 	PAR
 VALUE	 	 	CERTIFICATE
 NO(S).	 	NUMBER OF

SHARES
 OR
 INTERESTS	 	 	PERCENTAGE OF

ALL ISSUED CAPITAL

OR OTHER SHARES OF

ISSUER	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RG Mexico, Inc.	 	Common	 	$	0.01	 	 	C-2	 	 	100	 	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RGLD Holdings LLC	 	Membership interests	 	 	N/A	 	 	N/A	 	 	N/A	 	 	 	65	%

 

    Schedule IEXHIBIT 10.3

 

PLEDGE AGREEMENT

 

THIS AGREEMENT is made as of June
2, 2017

 

BETWEEN:

 

ROYAL GOLD, INC., a corporation
incorporated under the laws of the State of Delaware (the "Pledgor")

 

- and -

 

THE BANK OF NOVA SCOTIA,
a Canadian chartered bank, in its capacity as administrative agent for and on behalf of the Beneficiaries (the "Secured
Party")

 

RECITALS:

 

WHEREAS the Pledgor
has agreed to grant a security interest in and pledge the Collateral in order to secure the performance of its Obligations to the
Beneficiaries.

 

AND WHEREAS the Beneficiaries
have appointed and authorized the Secured Party to act as their agent and attorney for the purpose of holding security granted
by the Pledgor.

 

NOW THEREFORE, in
consideration of the premises and the covenants and agreements herein contained and for other good and valuable consideration (the
receipt and sufficiency of which are hereby conclusively acknowledged), the parties hereto agree as follows:

 

Article 1
- INTERPRETATION

 

		1.01	Definitions

 

In this Agreement, unless
something in the subject matter or context is inconsistent therewith:

 

"Account Control Agreement"
means, with respect to a Securities Account, a securities account control agreement between the Pledgor, the Secured Party and
the Securities Intermediary which maintains such Securities Account on behalf of the Pledgor, as the same may be amended from time
to time.

 

"Agreement" means this
agreement, including its recitals and schedules, as amended, modified, supplemented or restated from time to time.

 

"Beneficiaries" means,
collectively, the Secured Party, the Lenders and Affiliates of the Lenders to whom any Obligation is owed pursuant to the terms
of the Credit Documents, Hedging Agreements with such Affiliates or any account (including cash management accounts) with such
Affiliates or any documents governing or relating to cash management services provided by such Affiliates, and "Beneficiary"
means any of them.

 

"Collateral" has the meaning
set out in Section 2.01.

 

     

     

    

 

"Credit Agreement" means
the credit agreement dated on or about the date hereof among, inter alios, the Pledgor, as borrower, the Secured Party,
as administrative agent and the Lenders relating to the establishment of certain credit facilities in favour of the Pledgor, as
the same may be amended, modified, supplemented or restated from time to time in accordance with the provisions thereof.

 

"Delivery" and the corresponding
term "Delivered" when used with respect to Collateral means:

 

		(a)	in the case of Collateral constituting Certificated Securities, transfer thereof to the Secured
Party or its nominee by physical delivery of the Security Certificates to the Secured Party or its nominee, such Collateral to
be endorsed for transfer or accompanied by stock powers of attorney duly executed in blank, all in form and content satisfactory
to the Secured Party;

 

		(b)	in the case of Collateral constituting Uncertificated Securities, (A) registration thereof
on the books and records of the issuer thereof in the name of the Secured Party or its nominee or (B) the execution and delivery
by the issuer thereof of an effective agreement (each, an "Issuer Control Agreement"), pursuant to which such issuer
agrees that it will comply with instructions originated by the Secured Party or its nominee without further consent of the Pledgor
or any other person;

 

		(c)	in the case of Collateral constituting Security Entitlements in respect of Financial Assets deposited
in or credited to a Securities Account, (A) completion of all actions necessary to constitute the Secured Party or its nominee
the entitlement holder with respect to each such Security Entitlement or (B) the execution and delivery by the relevant Securities
Intermediary of an effective Account Control Agreement pursuant to which such Securities Intermediary agrees to comply with entitlement
orders originated by the Secured Party or its nominee without further consent of the Pledgor or any other person; and

 

		(d)	in each case such additional or alternative procedures as may hereafter become reasonably appropriate
to grant control of, or otherwise perfect a security interest in, any Collateral in favour of the Secured Party or its nominee.

 

"Excluded Securities"
means those Voting Securities representing in excess of 65% of the total combined voting power of each class of Voting Securities
at such time.

 

"Issuer Control Agreement"
has the meaning set out in clause (b) of the definition of "Delivery".

 

"Pledged Shares" has the
meaning set out in clause (a) of the definition of "Stock".

 

"Pledged ULC Securities"
means the Pledged Shares which are shares in the capital of a ULC.

 

"PPSA" means the Personal
Property Security Act (Alberta), including the regulations thereunder, as now enacted or as the same may from time to time
be amended, re-enacted or replaced.

 

"Stock" means

 

		(e)	all Securities of RGLD Gold (Canada) ULC described in Schedule A other than any Excluded Securities,
as such Schedule may be amended, supplemented or modified from time to time (collectively, the "Pledged Shares")
owned by the Pledgor, all Security Certificates, if any, and other instruments evidencing or representing such Pledged Shares,
and all dividends, interest, distributions, cash, instruments and other property, income, profits and proceeds from time to time
received or receivable upon or otherwise distributed or distributable in respect of or in exchange for any and all of the Pledged
Shares;

 

    - 2 -

     

    

 

		(f)	all additional or substitute shares of capital stock or other equity interests of any class of
RGLD Gold (Canada) ULC from time to time issued to or otherwise acquired by the Pledgor in any manner in respect of Pledged Shares,
the Security Certificates, if any, and other instruments representing such additional or substitute shares, and all dividends,
interests, distributions, cash, instruments and other property, income, profits and proceeds from time to time received or receivable
upon or otherwise distributed or distributable in respect of or in exchange for any or all of such additional or substitute shares;
and

 

		(g)	to the extent not otherwise included in the foregoing, all Proceeds thereof.

 

"ULC" means any unlimited
company, unlimited liability company or unlimited liability corporation or any similar entity existing under the laws of any province
or territory of Canada (including, without limitation, the Companies Act (Nova Scotia), the Business Corporations Act
(Alberta) and the Business Corporations Act (British Columbia)) and any successor to any such entity.

 

"Voting Securities" means,
at any time, Securities or Securities Entitlements of RGLD Gold (Canada) ULC entitled, at such time, to vote for the election of
directors of RGLD Gold (Canada) ULC.

 

The terms "Certificated
Security", "Financial Asset", "Proceeds", "Securities Account", "Securities Intermediary",
"Security", "Security Certificate", "Security Entitlement", and "Uncertificated Security"
and whenever used herein have the meanings given to those terms in the PPSA.

 

		1.02	Definitions used in the Credit Agreement

 

Capitalized terms used
herein without express definition shall, unless something in the subject matter or context is inconsistent therewith, have the
same meanings as are ascribed to such terms in the Credit Agreement.

 

		1.03	Headings

 

The division of this
Agreement into Articles and Sections and the insertion of headings are for convenience of reference only and do not affect the
construction or interpretation of this Agreement. The terms "hereof", "hereunder" and similar expressions refer
to this Agreement and not to any particular Article, Section or other portion hereof. Unless something in the subject matter or
context is inconsistent therewith, references herein to Articles, Sections and Schedules are to Articles and Sections of and Schedules
to this Agreement.

 

		1.04	Extended Meanings

 

In this Agreement words
importing the singular number only include the plural and vice versa, words importing any gender include all genders and
words importing persons include individuals, corporations, limited and unlimited liability companies, general and limited partnerships,
associations, trusts, unincorporated organizations, joint ventures and governmental authorities. The term "including"
means "including without limiting the generality of the foregoing".

 

    - 3 -

     

    

 

		1.05	Statutory References

 

In this Agreement, unless
something in the subject matter or context is inconsistent therewith or unless otherwise herein provided, a reference to any statute
is to that statute as now enacted or as the same may from time to time be amended, re-enacted or replaced and includes any regulation
made thereunder.

 

		1.06	Schedules

 

The following are the
Schedules to this Agreement:

 

Schedule A –
List of Stock

 

Article 2
- GRANT OF SECURITY INTEREST AND PLEDGE

 

		2.01	Grant and Pledge of Collateral

 

As general and continuing
collateral security for the payment and performance of the Obligations, the Pledgor hereby grants to the Secured Party for the
benefit of the Beneficiaries a security interest in, and pledges to the Secured Party for the benefit of the Beneficiaries the
right, title and interest of the Pledgor in and to, the following, whether now owned or existing or hereafter from time to time
acquired, by way of amalgamation or otherwise, in each case relating solely to the Pledged Shares (collectively, the "Collateral"):

 

		(a)	all Securities Accounts in the name of the Pledgor to the extent holding any Pledged Shares, including
any Pledged Shares deposited in or credited to such Securities Accounts, including all Financial Assets, all Security Entitlements
related to such Financial Assets, and all certificates and other instruments from time to time representing or evidencing the same,
and all dividends, interest, distributions, cash and other property from time to time received or receivable upon or otherwise
distributed or distributable in respect of or in exchange for any or all of the foregoing, in each case relating solely to the
Pledged Shares;

 

		(b)	all Stock relating solely to the Pledged Shares;

 

		(c)	all Financial Assets relating solely to the Pledged Shares;

 

		(d)	all Security Entitlements relating solely to the Pledged Shares;

 

		(e)	all other property that may at any time be received or receivable or otherwise distributed or distributable
to or for the account of the Pledgor in respect of, in substitution for, in addition to or in exchange for, any of the foregoing;
and

 

		(f)	all Proceeds in respect of the foregoing and all rights and interest of the Pledgor in respect
thereof or evidenced thereby, including all money received or receivable from time to time by the Pledgor in connection with the
sale of any of the foregoing.

 

    - 4 -

     

    

 

		2.02	Security Interest Absolute

 

The Lien granted hereby
and all rights of the Secured Party hereunder and all obligations of the Pledgor hereunder are unconditional and absolute and independent
and separate from any other security for the Obligations, whether executed by the Pledgor or any other person.

 

		2.03	Continuing Liability of the Pledgor

 

This Agreement and the
Lien granted hereby is granted as collateral security only and will not subject the Secured Party to, or transfer or in any way
affect or modify, any obligation or liability of the Pledgor with respect to any of the Collateral or any transaction in connection
therewith.

 

		2.04	Delivery of Collateral

 

Subject to section 2.05,
all Collateral must be Delivered immediately to the Secured Party or its nominee, including all security certificates, instruments
or other documents representing or evidencing the Collateral, which shall be endorsed for transfer in blank by the Pledgor and
accompanied by stock powers of attorney duly executed in blank or other transfer documents, all as satisfactory to the Secured
Party, acting reasonably. The Secured Party may, at its option, cause all or any of the Collateral to be registered in the name
of the Secured Party or its nominee.

 

		2.05	Subsequently Acquired Collateral

 

To the extent the Pledgor
acquires, by way of amalgamation or otherwise, any additional Collateral at any time or from time to time after the date hereof,
such Collateral will automatically (and without any further action being required to be taken by the Secured Party) be subject
to the Lien and pledge created hereby. The Pledgor will take, or cause to be taken, as promptly as practicable and, in any event
within 10 days after it obtains such additional Collateral, all steps and actions as the Secured Party, acting reasonably, deems
necessary to ensure that the additional Collateral is Delivered to the Secured Party.

 

		2.06	Attachment

 

The Pledgor acknowledges
that the Lien hereby created attaches upon the execution of this Agreement (or in the case of any after-acquired property, upon
the date of acquisition by the Pledgor of any rights therein), that value has been given by the Beneficiaries and that the Pledgor
has, or in the case of after-acquired property will have, rights in the Collateral or the power to transfer rights in the Collateral
to the Secured Party.

 

Article 3
- REPRESENTATIONS,

WARRANTIES AND COVENANTS

 

		3.01	Representations and Warranties of the Pledgor

 

The Pledgor represents
and warrants to the Secured Party that:

 

		(a)	no Collateral is in the possession or control of any person asserting a claim thereto or Lien therein,
except that the Secured Party or its nominee or a Securities Intermediary acting on its behalf may have possession or control of
the Collateral;

 

    - 5 -

     

    

 

		(b)	no effective financing statement or other instrument similar in effect covering all or any part
of the Collateral and made, consented to or known by the Pledgor is on file in any recording office, except such as may have been
filed in favour of the Secured Party relating to this Agreement or except such as has been agreed to in writing by the Secured
Party or as has been released and is being discharged pursuant to agreements executed and delivered as of even date herewith;

 

		(c)	all Collateral consisting of Pledged Shares has been duly authorized and validly issued, is outstanding
as fully paid and non-assessable and, except for the Excluded Securities or as set forth on Schedule A, constitutes all of
the issued and outstanding shares of capital stock or other equity interests of the Pledgor in RGLD Gold (Canada) ULC;

 

		(d)	except to the extent previously disclosed to the Secured Party in writing, there is no existing
agreement, option, right or privilege capable of becoming an agreement or option pursuant to which the Pledgor could be required
to sell or otherwise dispose of any of the Collateral;

 

		(e)	this Agreement creates a valid security interest in all of the Collateral securing the payment
of all the Obligations; the security certificates pledged by the Pledgor hereunder are, and any securities pledged in substitution
therefor or in addition thereto will be, duly and validly pledged hereunder in accordance with applicable Requirements of Law;
and

 

		(f)	the Pledgor has the right to pledge the Collateral as herein provided.

 

The representations and
warranties set out in this Agreement shall survive the execution and delivery of this Agreement notwithstanding any investigations
or examinations which may be made by any of the Beneficiaries or their legal counsel. Such representations and warranties shall
survive until this Agreement has been terminated and discharged in accordance with the Credit Agreement.

 

		3.02	Covenants of the Pledgor

 

The Pledgor covenants
with the Secured Party that the Pledgor will:

 

		(a)	ensure that the representations and warranties set forth in section 3.01 will be true and correct
at all times; and

 

		(b)	provide to the Secured Party, promptly upon request, all information and evidence the Secured Party
may reasonably request concerning the Collateral to enable the Secured Party to enforce the provisions hereof.

 

Article 4
- DEALING WITH COLLATERAL

 

		4.01	Rights and Duties of the Secured Party

 

(1)          The Secured
Party may perform any of its rights and duties hereunder by or through agents and is entitled to retain counsel and to act in reliance
upon the advice of such counsel concerning all matters pertaining to its rights and duties hereunder.

 

    - 6 -

     

    

 

(2)          In the holding
of the Collateral, the Secured Party and any nominee on its behalf is only bound to exercise the same degree of care as it would
exercise with respect to similar property of its own of similar value held in the same place. The Secured Party and any nominee
on its behalf will be deemed to have exercised reasonable care with respect to the custody and preservation of the Collateral if
it takes such action for that purpose as the Pledgor reasonably requests in writing, but failure of the Secured Party or its nominee
to comply with any such request will not of itself be deemed a failure to exercise reasonable care.

 

(3)          The powers conferred
on the Secured Party hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise
any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received
by it hereunder, the Secured Party shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve
rights against prior parties or any other rights pertaining to any Collateral and no such duties shall be implied as arising hereunder.

 

		4.02	Voting Rights

 

(1)          Subject to the
provisions of Section 4.02(2), the Pledgor is entitled to exercise, either directly or, if the Collateral is registered in the
name of the Secured Party or its nominee, by power of attorney or proxy, all the rights and powers of a holder of such Collateral,
including the right to vote from time to time exercisable in respect of the Collateral and to give proxies, consents, ratifications
and waivers in respect thereof. If the Collateral has been registered in the name of the Secured Party or its nominee, the Secured
Party will execute and deliver (or cause to be executed and delivered) to the Pledgor such proxies, directions and other instruments
as the Pledgor may request for the purpose of giving effect to the foregoing. No such action may be taken if it would (i) violate
or be inconsistent with the Credit Agreement or this Agreement or any other Credit Document, (ii) have the effect of materially
reducing the value of the Collateral as security for the Obligations in a manner prohibited by the Credit Documents, or (iii) impose
any restriction on the transferability of any of the Collateral.

 

(2)          Upon the occurrence
and during the continuance of an Event of Default, the Secured Party may give the Pledgor a notice prohibiting the Pledgor from
exercising the rights and powers of a holder of the Collateral, including the right to vote the Collateral, at which time all such
rights of the Pledgor will cease immediately and the Secured Party will have the right to exercise the rights and powers related
to such Collateral, including the right to vote.

 

		4.03	Dividends and Interest Payments

 

(1)          Subject to the
provisions of Section 4.03(2), the Pledgor is entitled to receive all dividend payments or other distributions or interest payments
in respect of the Collateral. If the Collateral has been registered in the name of the Secured Party or its nominee, the Secured
Party will execute and deliver (or cause to be executed and delivered) to the Pledgor all directions and other instruments as the
Pledgor may request for the purpose of enabling the Pledgor to receive the dividends payments or other distributions or interest
payments that the Pledgor is authorized to receive pursuant to this Section 4.03(1).

 

(2)          Upon the occurrence
and during the continuance of an Event of Default, all rights of the Pledgor pursuant to Section 4.03(1) will cease, and all
such rights will thereupon become vested in the Secured Party, and the Secured Party will have the sole and exclusive right and
authority to receive and retain all payments that the Pledgor would otherwise be authorized to retain pursuant to Section 4.03(1).
All money and other property received by the Secured Party pursuant to the provisions of this Section 4.03(2) may be applied
on account of the Obligations or may be retained by the Secured Party as additional Collateral hereunder and be applied in accordance
with the provisions of this Agreement. All payments which are received by the Pledgor contrary to the provisions of this Section
4.03(2) will be held by the Pledgor in trust for the benefit of the Secured Party and the other Beneficiaries, will be segregated
from other property or funds of the Pledgor and will be forthwith Delivered to the Secured Party or its nominee to be applied on
account of the Obligations or to hold as Collateral, as the Secured Party may see fit.

 

    - 7 -

     

    

 

Article 5
- REMEDIES

 

		5.01	Remedies

 

(1)          Upon and after
the occurrence and during the continuance of an Event of Default that has not been either cured or waived in accordance with the
provisions of the Credit Agreement, any or all security granted hereby will, at the option of the Secured Party, become immediately
enforceable; and in addition to any right or remedy provided by applicable Requirements of Law or any other agreement (including
the right to give entitlement orders, instructions or a notice of exclusive control to a Securities Intermediary subject to an
Account Control Agreement or an issuer subject to an Issuer Control Agreement), the Secured Party will have the rights and remedies
set out below, all of which rights and remedies will be enforceable successively, concurrently or both:

 

		(a)	transfer any part of the Collateral into the name of the Secured Party or its nominee if it has
not already done so in accordance with Section 2.04;

 

		(b)	take such steps as it considers desirable to maintain, preserve or protect the Collateral;

 

		(c)	exercise any and all rights and remedies of the Pledgor under or in connection with the Collateral,
including voting any of the Collateral (whether or not registered in the name of the Secured Party or its nominee) and give or
withhold all consents, waivers and ratifications in respect thereof;

 

		(d)	exercise all rights of conversion, exchange or subscription, or any other rights, privileges or
options pertaining to any of the Collateral, including the right to exchange at its discretion any of the Collateral upon the amalgamation,
arrangement, merger, consolidation or other reorganization of the issuer of the Collateral, all without liability except to account
for property actually received by the Secured Party;

 

		(e)	from time to time realize upon, collect, sell, transfer, assign, give options to purchase or otherwise
dispose of and deliver any Collateral in such manner as may seem advisable to the Secured Party. For such purposes each requirement
relating thereto and prescribed by applicable Requirements of Law or otherwise is hereby waived by the Pledgor to the extent permitted
by applicable Requirements of Law and in any offer or sale of any of the Collateral the Secured Party is authorized to comply with
any limitation or restriction in connection with such offer or sale as the Secured Party may be advised by counsel is necessary
in order to avoid any violation of applicable Requirements of Law, or in order to obtain any required approval of the sale or of
the purchase by any governmental or regulatory authority or other Official Body. Such compliance will not result in such sale being
considered or deemed not to have been made in a commercially reasonable manner nor will the Secured Party be liable or accountable
to the Pledgor for any discount allowed by reason of the fact that such Collateral is sold in compliance with any such limitation
or restriction;

 

    - 8 -

     

    

 

		(f)	purchase any of the Collateral, whether in connection with a sale made under the power of sale
herein contained or pursuant to judicial proceedings or otherwise;

 

		(g)	accept the Collateral in satisfaction of the Obligations upon notice to the Pledgor of its intention
to do so in the manner required by Requirements of Law; and

 

		(h)	discharge any claim, Lien, encumbrance or any rights of others that may exist or be threatened
against the Collateral, and in every such case the amounts so paid together with all reasonable costs, charges and expenses incurred
in connection therewith shall be added to the Obligations hereby secured.

 

(2)          The Secured
Party may (a) grant extensions of time, (b) take and perfect or abstain from taking and perfecting security, (c) give
up securities, (d) accept compositions or compromises, (e) grant releases and discharges, and (f) release any part
of the Collateral or otherwise deal with the Pledgor, debtors of the Pledgor, sureties and others and with the Collateral and other
security as the Secured Party sees fit without prejudice to the liability of the Pledgor to the Secured Party or the other Beneficiaries
or their rights hereunder.

 

(3)          The Beneficiaries
will not be liable or responsible for any failure to seize, collect, realize, or obtain payment with respect to the Collateral
and are not bound to institute proceedings or to take other steps for the purpose of seizing, collecting, realizing or obtaining
possession or payment with respect to the Collateral or for the purpose of preserving any rights of the Secured Party, the Pledgor
or any other person, in respect of the Collateral.

 

(4)          The Secured
Party may apply any proceeds of realization of the Collateral to payment of expenses in connection with the preservation and realization
of the Collateral as above described and the Secured Party shall apply any balance of such proceeds as provided for in the Credit
Agreement. If there is any surplus remaining, the Secured Party may pay it to any person having a claim thereto in priority to
the Pledgor of whom the Secured Party has knowledge and any balance remaining must be paid to the Pledgor. If the disposition of
the Collateral fails to satisfy the Obligations and the aforesaid expenses, the Pledgor will be liable to pay any deficiency to
the Secured Party and the other Beneficiaries forthwith on demand.

 

		5.02	Payment of Expenses

 

The Secured Party may
charge on its own behalf and also pay to others all reasonable out-of-pocket expenses of the Secured Party and others, including
the fees and disbursements of any Securities Intermediary, experts or advisers (including lawyers on a solicitor and client basis)
retained by the Secured Party, incurred in connection with realizing, collecting, selling, transferring, delivering or obtaining
payment for the Collateral, or in connection with the administration or any amendment of this Agreement or incidental to the care,
safekeeping or otherwise of any Collateral and in every such case the amounts so paid together with all costs, charges and expenses
incurred in connection therewith, including interest thereon at a rate per annum equal to the rate of interest payable on Base
Rate Loans outstanding pursuant to the Credit Facility plus 2.0% per annum, shall be added to and form part of the Obligations
not otherwise taken into account. The Secured Party may deduct the amount of such expenses from any proceeds of disposition of
the Collateral.

 

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Article 6
- GENERAL

 

		6.01	Benefit of the Agreement

 

This Agreement will enure
to the benefit of and be binding upon the respective successors and permitted assigns of the parties.

 

		6.02	Conflict of Terms; Entire Agreement

 

This Agreement has been
entered into pursuant to the provisions of the Credit Agreement and is subject to all the terms and conditions thereof and, if
there is any conflict or inconsistency between the provisions of this Agreement and the provisions of the Credit Agreement, the
rights and obligations of the parties shall be governed by the provisions of the Credit Agreement. This Agreement together with
the Credit Agreement and all other Credit Documents constitute the entire agreement between the Pledgor and the Secured Party with
respect to the subject matter hereof. There are no representations, warranties, terms, conditions, undertakings or collateral agreements,
express, implied or statutory, between the Secured Party and the Pledgor except as expressly set forth therein and herein.

 

		6.03	Termination of Pledge

 

This Agreement and the
Lien created hereunder will terminate when the Collateral is no longer subject to the Lien in accordance with the Credit Agreement.
Upon such termination, any Collateral then in the custody of the Secured Party or its nominee must be re-delivered to the Pledgor
as soon as practicable.

 

		6.04	Amendments and Waivers

 

No amendment to this
Agreement will be valid or binding unless set forth in writing and duly executed by all of the parties. No waiver of any breach
of any provision of this Agreement will be effective or binding unless made in writing and signed by the party purporting to give
the same and, unless otherwise provided in the written waiver, will be limited to the specific breach waived.

 

		6.05	Assignment

 

The rights of the Secured
Party under this Agreement may be assigned by the Secured Party in accordance with the terms of the Credit Agreement. The Pledgor
may not assign its obligations under this Agreement.

 

		6.06	Severability

 

If any provision of this
Agreement is determined to be invalid or unenforceable in whole or in part, such invalidity or unenforceability will attach only
to such provision or part thereof and the remaining part of such provision and all other provisions hereof will continue in full
force and effect.

 

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		6.07	Notices

 

Any demand, notice or
other communication to be given in connection with this Agreement shall be given as set out in the Credit Agreement.

 

		6.08	Additional Continuing Security

 

This Agreement and the
Lien, assignment and mortgage and charge granted hereby are in addition to and not in substitution for any other security now or
hereafter held by the Secured Party and this Agreement is a continuing agreement and security that will remain in full force and
effect until discharged by the Secured Party.

 

		6.09	ULC Limitation

 

Notwithstanding any provisions
to the contrary contained in this Agreement, the Credit Agreement or any other Credit Document, the Pledgor is as of the date of
this Agreement the sole registered and beneficial owner of all Pledged ULC Securities more particularly described in Schedule
A to this Agreement and will remain so until such time as such Pledged ULC Securities are fully and effectively transferred into
the name of the Secured Party or any other person on the books and records of the ULC which is the issuer thereof. Nothing in this
Agreement, the Credit Agreement or any other Credit Document is intended to or shall constitute the Secured Party, any other
Beneficiary or any person other than the Pledgor (and RGLD Holdings LLC) as a member or shareholder of any ULC until such time
as written notice is given to the Pledgor and all further steps are taken so as to register the Secured Party or other person as
holder of the Pledged ULC Securities issued by such ULC. The granting of the pledge and Lien pursuant to Section 2.01 is not intended
to make the Secured Party or any other Beneficiary a successor to the Pledgor as a member or shareholder of any ULC, and neither
the Secured Party, any other Beneficiary nor any of their successors or assigns hereunder are intended to be deemed to become a
member or shareholder of any ULC by accepting this Agreement or exercising any right granted herein unless and until such time,
if any, when the Secured Party or any successor or assign expressly becomes a registered member or shareholder of any ULC. The
Pledgor shall be entitled to receive and retain for its own account any dividends or other distributions if any, in respect of
the Collateral, and shall have the right to vote such Pledged ULC Securities and to control the direction, management and policies
of the ULC issuing such Pledged ULC Securities to the same extent as the Pledgor would if such Pledged ULC Securities were not
pledged to the Secured Party or to any other person pursuant hereto. To the extent any provision hereof would have the effect of
constituting the Secured Party or any other Beneficiary to be a member or shareholder of any ULC prior to such time, such provision
shall be severed herefrom and ineffective with respect to the relevant Pledged ULC Securities without otherwise invalidating or
rendering unenforceable this Agreement or invalidating or rendering unenforceable such provision insofar as it relates to the Collateral
other than Pledged ULC Securities. Notwithstanding anything herein to the contrary (except to the extent, if any, that the Secured
Party or any of its successors or assigns hereafter expressly becomes a registered member or shareholder of any ULC), neither the
Secured Party nor any of its successors or assigns are intended to be deemed to have assumed or otherwise become liable for any
debts or obligations of any ULC. Except upon the exercise by the Secured Party or other persons of rights to sell or otherwise
dispose of Pledged ULC Securities or other remedies in accordance with this Agreement, the Pledgor shall not cause or permit, or
enable any ULC in which it holds Pledged ULC Securities to cause or permit, the Secured Party, any other Beneficiary or any of
their successors or assigns to: (a) be registered as member or shareholder of such ULC; (b) have any notation entered in its favour
in the share register of such ULC; (c) be held out as member or shareholder of such ULC; (d) receive, directly or indirectly, any
dividends, property or other distributions from such ULC by reason of the Secured Party or other person holding a Lien in the Pledged
ULC Securities; or (e) act as a member or shareholder of such ULC, or exercise any rights of a member or shareholder of such ULC,
including the right to attend a meeting of such ULC or vote the shares of such ULC.

 

    - 11 -

     

    

 

		6.10	Remedies Cumulative

 

The rights and remedies
of the Secured Party hereunder are cumulative and are in addition to and not in substitution for any other security now or hereafter
held by the Secured Party or any other rights or remedies available at law or in equity or otherwise. No single or partial exercise
by the Secured Party of any right or remedy precludes or otherwise affects the exercise of any other right or remedy to which the
Secured Party may be entitled.

 

		6.11	Continued Perfection

 

The Pledgor agrees that
it will not take any actions or fail to perform any of its duties or obligations under this Agreement so that after giving effect
to such action or inaction the Secured Party will cease to have, or with the passage of time cease to have, a perfected security
interest in any of the Collateral. The Pledgor hereby further authorizes the Secured Party to file one or more financing statements
or financing change statements, and amendments thereto, relative to all or any part of the Collateral (without the signature of
the Pledgor where required by applicable Requirements of Law).

 

		6.12	Further Assurances

 

The Pledgor must at its
expense from time to time do, execute and deliver, or cause to be done, executed and delivered, all such financing statements,
further assignments, documents, agreements, acts, matters and things as may be reasonably requested by the Secured Party for the
purpose of giving effect to this Agreement or for the purpose of establishing compliance with the representations, warranties and
covenants herein contained.

 

		6.13	Power of Attorney

 

The Pledgor hereby irrevocably
constitutes and appoints the Secured Party and any officer or agent thereof the true and lawful attorney of the Pledgor upon the
occurrence of an Event of Default which is continuing, with full power of substitution, to do, make and execute all such statements,
assignments, documents, agreements, acts, matters or things with the right to use the name of the Pledgor whenever and wherever
the officer or agent may deem necessary or expedient and from time to time to exercise all rights and powers and to perform all
acts of ownership in respect to the Collateral in accordance with this Agreement, such power being coupled with an interest.

 

		6.14	Discharge

 

The Pledgor will not
be discharged from any of the Obligations or from this Agreement except in accordance with the Credit Agreement.

 

		6.15	Governing Law

 

This Agreement is governed
by and will be construed in accordance with the laws of the Province of Alberta and the laws of Canada applicable therein.

 

    - 12 -

     

    

 

		6.16	Attornment

 

For the purpose of all
legal proceedings this Agreement will be deemed to have been performed in the Province of Alberta and the courts of the Province
of Alberta will have non-exclusive jurisdiction to entertain any action arising under this Agreement. The Pledgor hereby attorns
to the non-exclusive jurisdiction of the courts of the Province of Alberta. Notwithstanding the foregoing, nothing herein shall
be construed nor operate to limit the right of the Pledgor, the Secured Party or any other Beneficiary to commence any action or
proceeding relating hereto in any other jurisdiction, nor to limit the right of the courts of any other jurisdiction to take jurisdiction
over any action, proceeding or matter relating hereto.

 

		6.17	Counterparts

 

This Agreement may be
executed in any number of counterparts, each of which will be deemed to be an original and all of which taken together will be
deemed to constitute one and the same instrument.

 

		6.18	No Release

 

The loss, injury or destruction
of any of the Collateral shall not operate in any manner to release or discharge the Pledgor from any of its Obligations.

 

		6.19	No Obligation to Act

 

Notwithstanding any provision
of this Agreement or any other Credit Document or the operation, application or effect hereof, the Secured Party, the other Beneficiaries,
or any representative or agent acting for or on behalf of the foregoing, shall not have any obligation whatsoever to exercise or
refrain from exercising any right, power, privilege or interest hereunder or to receive or claim any benefit hereunder.

 

		6.20	Waiver of Financing Statement, etc.

 

The Pledgor hereby waives
the right to receive from the Secured Party or the other Beneficiaries a copy of any financing statement, financing change statement
or other statement or document filed or registered at any time in respect of this Agreement or any verification statement or other
statement or document issued by any registry that confirms or evidences registration of or relates to this Agreement.

 

		6.21	Electronic Execution

 

Any party may deliver
an executed signature page to this Agreement by electronic transmission and such delivery will be as effective as delivery of a
manually executed copy of the Agreement by such party.

 

		6.22	Executed Copy

 

The Pledgor acknowledges receipt
of a fully executed copy of this Agreement.

 

Signature page follows

 

    - 13 -

     

    

 

IN WITNESS WHEREOF the parties hereto have executed
this Agreement.

 

	 	ROYAL GOLD, INC., a Delaware corporation
	 	 	 
	 	Per:	/s/ Stefan Wenger
	 	 	Name:  Stefan Wenger
	 	 	Title:  Chief Financial Officer and Treasurer
	 	 	 
	 	THE BANK OF NOVA SCOTIA, as Secured Party
	 	 	 
	 	Per:	/s/ Clement Yu
	 	 	Name:  Clement Yu
	 	 	Title:  Director

 

     

     

    

 

Schedule A

 

List of Stock

 

	Pledged Share Issuer	 	Number and Class of

Pledged Shares	 	Percent of Pledged Shares

Owned by Pledgor
	RGLD Gold (Canada) ULC	 	86,801 common shares under certificate C-3	 	100%

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