Document:

Exhibit 4.1

 

 

TIDAL ROYALTY CORP.

 

AMENDED AND RESTATED STOCK OPTION PLAN

 

July 15, 2017, amended and restated as of December 6, 2018

 

 

Table of Contents

 

	
ARTICLE I   — DEFINITIONS AND INTERPRETATION
    
	
 
    	
 
    	
 
    
	
1.1
    	
Definitions
    	
1
    
	
1.2
    	
Choice of Law
    	
2
    
	
1.3
    	
Headings
    	
2
    
	
 
    
	
ARTICLE II   — PURPOSE AND PARTICIPATION
    
	
 
    	
 
    	
 
    
	
2.1
    	
Purpose
    	
3
    
	
2.2
    	
Participation
    	
3
    
	
2.3
    	
Notification of Award
    	
3
    
	
2.4
    	
Copy of Plan
    	
3
    
	
2.5
    	
Limitation
    	
3
    
	
 
    
	
ARTICLE III   — TERMS AND CONDITIONS OF OPTIONS
    
	
 
    	
 
    	
 
    
	
3.1
    	
Board to Allot Shares
    	
4
    
	
3.2
    	
Number of Shares
    	
4
    
	
3.3
    	
Term of Option
    	
4
    
	
3.4
    	
Termination of Option
    	
4
    
	
3.5
    	
Exercise Price
    	
5
    
	
3.6
    	
Reduction in Exercise   Price
    	
5
    
	
3.7
    	
Assignment of Options
    	
5
    
	
3.8
    	
Adjustments
    	
5
    
	
3.9
    	
Vesting
    	
6
    
	
3.10
    	
Hold Periods
    	
6
    
	
 
    
	
ARTICLE IV   — EXERCISE OF OPTION
    
	
 
    
	
4.1
    	
Exercise of Option
    	
7
    
	
4.2
    	
Exercise Restrictions
    	
7
    
	
4.3
    	
Issue of Share   Certificates
    	
7
    
	
4.4
    	
Condition of Issue
    	
7
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE V   — ADMINISTRATION
    	
 
    
	
 
    	
 
    	
 
    
	
5.1
    	
Administration
    	
7
    
	
5.2
    	
Interpretation
    	
8
    
	
 
    
	
ARTICLE VI   — AMENDMENT AND TERMINATION
    
	
 
    
	
6.1
    	
Prospective Amendment
    	
8
    
	
6.2
    	
Retrospective Amendment
    	
8
    
	
6.3
    	
Termination
    	
8
    
	
6.4
    	
Agreement
    	
8
    
	
 
    
	
ARTICLE VII   — APPROVALS REQUIRED FOR PLAN
    
	
 
    
	
7.1
    	
Approvals Required for   Plan
    	
8
    
	
7.2
    	
Substantive Amendments   to Plan
    	
9
    

 

 

ARTICLE I
 DEFINITIONS AND INTERPRETATION

 

1.1          DEFINITIONS

 

As used herein, unless anything in the subject matter or context is inconsistent therewith, the following terms shall have the meanings set forth below:

 

“Administrator” means the person as may be designated as Administrator by the Board from time to time;

 

“Affiliate” means a corporation that is affiliated with the Company because (i) one of them is the subsidiary of the other; or (ii) each of them is controlled by the same individual or corporation;

 

“Applicable Laws” means all legal requirements relating to the administration of stock option plans, if any, under applicable corporate laws, any applicable state or provincial securities laws, the rules and regulations promulgated thereunder, and the requirements of the Exchange, and the laws of any foreign jurisdiction applicable to Options granted to residents therein;

 

“Award Date” means the date on which the Board grants a particular Option;

 

“Board” means the board of directors of the Company;

 

“Company” means Tidal Royalty Corp. or any “affiliate” thereof (as defined in the Securities Act);

 

“Consultant” means an individual or Consultant Company other than an Employee or a Director of the Company, that (i) provides ongoing consulting, technical, management or other services to the Company or to an Affiliate of the Company; (ii) provides the services under a written contract between the Company or the Affiliate and the individual or the Consultant Company; (iii) spends or will spend a significant amount of time and attention on the affairs and business of the Company or an Affiliate of the Company; and (iv) has a relationship with the Company or an Affiliate of the Company that enables the individual to be knowledgeable about the business and affairs of the Company;

 

“Consultant Company” means for an individual consultant, a company or partnership of which the individual is an employee, shareholder or partner;

 

“Director” means directors, senior officers and Management Company Employees of the Company;

 

“Earlier Termination Date” means the date determined in accordance with section 3.4 after which a particular Option cannot be exercised;

 

“Employee” means (i) an individual considered an employee of the Company or a subsidiary under the Income Tax Act (Canada) (i.e. for whom income tax and other deductions are made by the Company); (ii) an individual who works full-time for the Company or a subsidiary providing services normally provided by an employee but for whom income tax and other deductions are not made; (iii) an individual who works for the Company or a subsidiary on a continuing and regular basis for a minimum amount of time per week, but for whom income tax and other deductions are not made; and (iv) other persons who are providing, have provided, or have agreed to provide a service of value to the Company or a subsidiary;

 

“Exchange” means the CSE Exchange or successor stock exchange;

 

 

“Exercise Notice” means the notice respecting the exercise of an Option, in the form set out as Schedule “B” hereto, duly executed by the Option Holder;

 

“Exercise Period” means the period during which a particular Option may be exercised and is the period from and including the Award Date through to and including the Expiry Date;

 

“Exercise Price” means the price at which an Option may be exercised as determined in accordance with section 3.5;

 

“Expiry Date” means the date determined in accordance with section 3.3 after which a particular Option cannot be exercised;

 

“Investor Relations Activities” has the same meaning given to it under Policy 1.1 of the CSE Exchange Corporate Finance Manual and Policies;

 

“Management Company Employee” means an individual employed by a corporation providing management services to the Company which are required for the ongoing successful operation of the business enterprise of the Company, but excluding a person engaged in Investor Relations Activities;

 

“Option” means an option to acquire Shares awarded pursuant to the Plan;

 

“Option Certificate” means the certificate, substantially in the form set out as Schedule “A” hereto, evidencing an Option;

 

“Option Holder” means a person who holds an unexercised and unexpired Option or, where applicable, the Personal Representative of such person;

 

“Personal Representative” means (i) in the case of a deceased Option Holder, the executor or administrator of the deceased duly appointed by a court or public authority having jurisdiction to do so; and (ii) in the case of an Option Holder who for any reason is unable to manage his or her affairs, the person entitled by law to act on behalf of such Option Holder;

 

“Plan” means this amended and restated stock option plan;

 

“Securities Act” means the Securities Act (British Columbia); and

 

“Share” or “Shares” means, as the case may be, one or more common shares without par value in the capital of the Company.

 

1.2          CHOICE OF LAW

 

The Plan is established under, and the provisions of the Plan shall be interpreted and construed solely in accordance with, the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

 

1.3          HEADINGS

 

The headings used herein are for convenience only and are not to affect the interpretation of the Plan.

 

2

 

ARTICLE II
 PURPOSE AND PARTICIPATION

 

2.1          PURPOSE

 

The purpose of the Plan is to provide the Company with a share-related mechanism to attract, retain and motivate Directors, Employees and Consultants, to reward such of those persons by the grant of Options under the Plan by the Board from time to time for their contributions toward the long term goals of the Company and to enable and encourage such persons to acquire Shares as long term investments.

 

2.2          PARTICIPATION

 

The Board shall, from time to time, in its sole discretion determine those Directors, Employees and/or Consultants, if any, to whom Options are to be awarded.  If the Board elects to award an Option to a Director or Consultant, the Board shall, in its sole discretion but subject to section 3.2, determine the number of Shares to be acquired on the exercise of such Option.  If the Board elects to award an Option to an Employee, the number of Shares to be acquired on the exercise of such Option shall be determined by the Board in its sole discretion but subject to section 3.2, and in so doing the Board may take into account the following criteria:

 

(a)                                 the Employee’s remuneration as at the Award Date in relation to the total remuneration payable by the Company to all of its Employees as at the Award Date;

 

(b)                                 the length of time that the Employee has provided services to the Company; and

 

(c)                                  the nature and quality of work performed by the Employee.

 

In the case of Options awarded to Employees, Consultants or Management Company Employees, the Company will be deemed to have represented that the recipient is a bona fide Employee, Consultant or Management Company Employee.

 

2.3          NOTIFICATION OF AWARD

 

Following the approval by the Board of the awarding of an Option, the Option Holder shall be notified of the award and given an Option Certificate representing the Option so awarded.

 

2.4          COPY OF PLAN

 

Each Option Holder, concurrently with the notice of the award of the Option, shall be provided with a copy of the Plan.  A copy of any amendment to the Plan shall be promptly provided to each Option Holder.

 

2.5          LIMITATION

 

The Plan does not give any Option Holder the right to continue to be employed or engaged by the Company.

 

3

 

ARTICLE III
 TERMS AND CONDITIONS OF OPTIONS

 

3.1          BOARD TO ALLOT SHARES

 

The Shares to be issued to Option Holders upon the exercise of Options shall be allotted and authorized for issuance by the Board prior to the exercise thereof.

 

3.2          NUMBER OF SHARES

 

The maximum number of Shares reserved for issuance under the Plan at any one time shall not exceed at any time 10% of the then-issued and outstanding Shares.

 

The total number of Options awarded to any one individual in any 12 month period shall not exceed 5% of the issued and outstanding Shares as at the Award Date (unless the Company becomes a Tier 1 issuer of the Toronto Stock Exchange or Toronto Stock Exchange — Venture (a “Tier 1 Issuer”) and has obtained disinterested shareholder approval).

 

The total number of Options awarded to any one Consultant in a 12 month period shall not exceed 2% of the issued and outstanding Shares as at the Award Date.  The total number of Options awarded in any 12 month period to Employees performing investor relations activities for the Company shall not exceed 2% of the issued and outstanding Shares as at the Award Date.

 

3.3          TERM OF OPTION

 

Subject to section 3.4, the Expiry Date of an Option shall be the date so fixed by the Board at the time the particular Option is awarded, provided that such date shall not be later than:

 

(a)                                 in the case of an Option granted prior to the Shares being listed on the Exchange, the fifth anniversary of the date on which the Shares are listed on the Exchange; or

 

(b)                                 in the case of an Option granted after the Shares have been listed on the Exchange, the tenth anniversary of the Award Date of the Option.

 

3.4          TERMINATION OF OPTION

 

An Option Holder may exercise an Option in whole or in part at any time or from time to time during the Exercise Period provided that, with respect to the exercise of part of an Option, the Board may at any time and from time to time fix a minimum or maximum number of Shares in respect of which an Option Holder may exercise part of any Option held by such Option Holder.  Any Option or part thereof not exercised within the Exercise Period shall terminate and become void as of 5:00 p.m. (Vancouver time) on the first to occur of the Expiry Date or the Earlier Termination Date.  The Earlier Termination Date shall be the date established, if applicable, in subsections (a) or (b) below.

 

(a)           Death

 

In the event that the Option Holder should die while he or she is still (i) a Director, Consultant or Employee (other than a Consultant or an Employee performing Investor Relations Activities), the Expiry Date shall be 12 months from the date of death of the Option Holder; or (ii) a person performing Investor Relations Activities, the Expiry Date shall be 90 days from the date of death of the Option Holder.

 

4

 

(b)                                 Ceasing to be a Director, Employee or Consultant

 

In the event that the Option Holder ceases to be a Director, Employee or Consultant other than by reason of death and ceases to be eligible through another capacity to hold an Option, the Expiry Date of the Option shall be the 30th day following the date the Option Holder ceases to be a Director, Employee or Consultant unless any of the following apply:

 

(i)            the Option Holder ceases to meet the qualifications for directors prescribed by the corporate legislation to which the Company is then subject and the Option Holder is not eligible through another capacity to hold an Option;

 

(ii)           the Option Holder ceases to be a director of the Company by reason of a special resolution to that effect having been passed by the members of the Company pursuant to  the corporate legislation to which the Company is then subject and the Option Holder is not eligible through another capacity to hold an Option;

 

(iii)          the Option Holder’s relationship with the Company or the Management Company is terminated for cause;  or

 

(iv)          an order of the British Columbia Securities Commission or other regulatory authority having jurisdiction is made prohibiting the Option Holder from holding an Option,

 

in which case the Earlier Termination Date shall be the date on which any of the above occurs.

 

3.5                               EXERCISE PRICE

 

The Exercise Price shall be that price per Share, as determined by the Board in its sole discretion, and announced as of the Award Date, at which an Option Holder may purchase a Share upon the exercise of an Option, and if the Shares are then listed on the Exchange, shall not be less than the closing price of the Shares on the Exchange on the day preceding the Award Date, less any discount permitted by the Exchange.

 

3.6                               REDUCTION IN EXERCISE PRICE

 

Disinterested shareholder approval will be obtained for any reduction in the exercise price of an Option if the Option Holder is an insider of the Company at the time of the proposed amendment.

 

3.7                               ASSIGNMENT OF OPTIONS

 

Options may not be assigned or transferred, provided however that the Personal Representative of an Option Holder may, to the extent permitted by section 4.1, exercise the Option within the Exercise Period.

 

3.8                               ADJUSTMENTS

 

If prior to the complete exercise of any Option the Shares are consolidated, subdivided, converted, exchanged or reclassified or in any way substituted for (collectively the “Event”), an Option, to the extent that it has not been exercised, shall be adjusted by the Board in accordance with such Event in the manner the Board deems appropriate.  No fractional Shares shall be issued upon the exercise of the Options and accordingly, if as a result of the Event an Option Holder would become entitled to a fractional share, such Option Holder shall have the right to purchase only the next lowest whole number of shares and no payment or other adjustment will be made with respect to the fractional interest so disregarded.

 

5

 

3.9                               VESTING

 

The following provisions regarding vesting shall apply to the Options:

 

(a)                               For so long as the Company is not classified as a Tier 1 Issuer or equivalent designation on the Exchange, all Options awarded pursuant to the Plan, except in exceptional circumstances as determined by the Board, must contain conditions relating to the vesting of the right to exercise an Option awarded to any Option Holder, which will provide that the right to purchase the Shares under the Option may not be exercised any earlier than six equal quarterly releases over a period of 18 months from the Award Date.

 

In the event that the classification of the Company on the Exchange is upgraded to that of a Tier 1 Issuer or equivalent designation, or the Shares are no longer listed on the Exchange, the Board may, in its sole discretion at the time the Option is awarded, but will not be required to, impose conditions relating to the vesting of the right to exercise an Option awarded to any Option Holder. The Board may (but will not be required to) accelerate or remove the vesting provisions applying to previously granted Options.

 

(b)                                 The Board may grant Options bearing vesting provisions less favourable than those specified in subsections 3.9(a).  Notwithstanding the provisions of subsections 3.9(a) and subject to Exchange acceptance, the Board may grant Options bearing vesting provisions more favourable than those specified in subsections 3.9(a).

 

(c)                                  Option Certificates will disclose vesting conditions which are as specified by the Board.

 

(d)                                 The vesting schedule in subsection 3.9(a) shall be automatically and immediately accelerated such that all remaining Options will then be available for exercise upon the occurrence of a take over bid which is a formal bid, as those terms are defined under the Securities Act.

 

3.10                        HOLD PERIODS

 

(a)                                 If required by Applicable Laws, any Options will be subject to a hold period expiring on the date that is four months and a day after the Date of Grant, and the Option Agreements and the certificates representing any Shares issued prior to the expiry of such hold period will bear a legend in substantially the following form:

 

“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE SECURITIES REPRESENTED HEREBY MUST NOT TRADE THE SECURITIES BEFORE [INSERT THE DATE THAT IS FOUR MONTHS AND ONE DAY AFTER THE DATE OF GRANT].”

 

(b)                                 In addition to any resale restrictions under any Applicable Laws, if the Option Price is set at a Discounted Market Price rather than the Market Price (as defined in Exchange Policies), the Option Agreements and the certificates representing any Shares realized on the exercise thereof will bear the following legend:

 

“WITHOUT COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL [INSERT THE DATE THAT IS FOUR MONTHS AND ONE DAY AFTER THE DATE OF GRANT].”

 

6

 

ARTICLE IV
 EXERCISE OF OPTION

 

4.1                               EXERCISE OF OPTION

 

An Option may be exercised only by the Option Holder or the Personal Representative of any Option Holder.  An Option Holder or the Personal Representative of any Option Holder may exercise an Option in whole or in part, subject to any applicable exercise restrictions, at any time or from time to time during the Exercise Period up to 5:00 p.m. (Vancouver time) on the Expiry Date by delivering to the Administrator an Exercise Notice, the applicable Option Certificate and a certified cheque or bank draft (or other payment method acceptable to the Company) payable to the Company in an amount equal to the aggregate Exercise Price of the Shares to be purchased pursuant to the exercise of the Option.

 

4.2                               EXERCISE RESTRICTIONS

 

The Board may, at the time an Option is awarded or upon renegotiation of the same, attach restrictions relating to the exercise of the Option in addition to the vesting provisions specified in section 3.9.  Any such restrictions shall be recorded on the applicable Option Certificate.

 

4.3                               ISSUE OF SHARE CERTIFICATES

 

As soon as practicable following the receipt of the Exercise Notice, the Administrator shall cause to be delivered to the Option Holder a certificate for the Shares so purchased bearing such legends denoting trading restrictions as may be required by applicable securities laws and/or the Exchange.  It is the Option Holder’s responsibility to comply with any such trading restrictions.  If the number of Shares so purchased is less than the number of Shares subject to the Option Certificate surrendered, the Administrator shall forward a new Option Certificate to the Option Holder concurrently with delivery of the aforesaid share certificate for the balance of the Shares available under the Option.

 

4.4                               CONDITION OF ISSUE

 

The issue of Shares by the Company pursuant to the exercise of an Option is subject to this Plan and compliance with the laws, rules and regulations of all regulatory bodies applicable to the issuance and distribution of such Shares and to the listing requirements of any stock exchange or exchanges on which the Shares may be listed.  The Option Holder agrees to comply with all such laws, rules and regulations and agrees to furnish to the Company any information, report and/or undertakings required to comply with and to fully cooperate with the Company in complying with such laws, rules and regulations.

 

ARTICLE V
 ADMINISTRATION

 

5.1                            ADMINISTRATION

 

The Plan shall be administered by the Administrator on the instructions of the Board or such committee of the Board authorized to act in respect of matters relating to the Plan.  The Board or such committee may make, amend and repeal at any time and from time to time such regulations not inconsistent with the Plan as it may deem necessary or advisable for the proper administration and operation of the Plan and such regulations shall form part of the Plan.  The Board may delegate to the Administrator or any other person such administrative duties and powers as it may see fit.

 

7

 

5.2                               INTERPRETATION

 

The interpretation by the Board or its authorized committee of any of the provisions of the Plan and any determination by it pursuant thereto shall be final and conclusive and shall not be subject to any dispute by any Option Holder.  No member of the Board or any person acting pursuant to authority delegated by the Board hereunder shall be liable for any action or determination in connection with the Plan made or taken in good faith and each member of the Board and each such person shall be entitled to indemnification with respect to any such action or determination in the manner provided for by the Company.

 

ARTICLE VI
 AMENDMENT AND TERMINATION

 

6.1                               PROSPECTIVE AMENDMENT

 

Subject to applicable regulatory approval, the Board may from time to time amend the Plan and the terms and conditions of any Option thereafter to be awarded and, without limiting the generality of the foregoing, may make such amendment for the purpose of meeting any changes in any relevant law, rule or regulation applicable to the Plan, any Option or the Shares, or for any other purpose which may be permitted by all relevant laws, rules and regulations, provided always that any such amendment shall not alter the terms or conditions of any Option or impair any right of any Option Holder pursuant to any Option awarded prior to such amendment.

 

6.2                               RETROSPECTIVE AMENDMENT

 

Subject to applicable regulatory approval, the Board may from time to time retrospectively amend the Plan and may also, with the consent of the affected Option Holders, retrospectively amend the terms and conditions of any Options which have been previously awarded.

 

6.3                               TERMINATION

 

The Board may terminate the Plan at any time provided that such termination shall not alter the terms or conditions of any Option or impair any right of any Option Holder pursuant to any Option awarded prior to the date of such termination and notwithstanding such termination the Company, such Options and such Option Holders shall continue to be governed by the provisions of the Plan.

 

6.4                               AGREEMENT

 

The Company and every person to whom an Option is awarded hereunder shall be bound by and subject to the terms and conditions of the Plan.

 

ARTICLE VII
 APPROVALS REQUIRED FOR PLAN

 

7.1                               APPROVALS REQUIRED FOR PLAN

 

The Plan is subject to shareholder and regulatory approvals if required.

 

8

 

7.2                               SUBSTANTIVE AMENDMENTS TO PLAN

 

For as long as the Company is listed on the Exchange, any substantive amendments to the Plan shall be subject to the Company first obtaining the necessary approvals of:

 

(a)                                 the shareholders of the Company; and

 

(b)                                 the Exchange.

 

9

 

Schedule A

 

TIDAL ROYALTY CORP.

 

STOCK OPTION PLAN

OPTION CERTIFICATE

 

[If the Option is granted at a discount to the Market Price, insert the following hold period legend:  Without compliance with all applicable securities legislation, the securities issued upon the exercise of the Option granted herein may not be sold, transferred, hypothecated or otherwise traded on or through the facilities of a Canadian Stock Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until (four months and one day after the date of grant).]

 

[If the Option is granted to an Insider, insert the following hold period legend: Unless permitted under securities legislation, the holder of the securities represented hereby must not trade the securities before (four months and one day after the date of grant)].

 

This certificate is issued pursuant to the provisions of the TIDAL ROYALTY CORP. (the “Company”) Stock Option Plan (the “Plan”) and evidences that                    is the holder of an option (the “Option”) to purchase up to           common shares (the “Shares”) in the capital stock of the Company at a purchase price of $     per Share.  Subject to the provisions of the Plan:

 

(a)                                 the Award Date of this Option is                      , and

 

(b)                                 the Expiry Date of this Option is                      .

 

Applicable Vesting or Other Restrictions

 

The Options will vest to the Optionee, and be eligible to be exercised on the basis of not more than one-sixth of the number of Options granted every three months following the Award Date (expiring 18 months from the Award Date).

 

This Option may be exercised in accordance with its terms at any time and from time to time from and including the Award Date through to and including up to 5:00 p.m. (Vancouver time) on the Expiry Date, by delivering to the Administrator of the Plan an Exercise Notice, in the form provided in the Plan, together with this certificate and a certified cheque or bank draft payable to the Company in an amount equal to the aggregate of the Exercise Price of the Shares in respect of which this Option is being exercised.

 

This certificate and the Option evidenced hereby is not assignable, transferable or negotiable and is subject to the detailed terms and conditions contained in the Plan.  This certificate is issued for convenience only and in the case of any dispute with regard to any matter in respect hereof, the provisions of the Plan and the records of the Company shall prevail.

 

TIDAL ROYALTY CORP.
  by its authorized signatory:

 

	
 
    	
 
    
	
NAME, TITLE
    	
 
    

 

 

Schedule B

 

EXERCISE NOTICE

 

To:                             The Administrator, Stock Option Plan
  TIDAL ROYALTY CORP.

 

The undersigned hereby irrevocably gives notice, pursuant to the TIDAL ROYALTY CORP. (the “Company”) Stock Option Plan (the “Plan”), of the exercise of the Option to acquire and hereby subscribes for (cross out inapplicable item):

 

(a)                                 all of the Shares; or

 

(b)                                                          of the Shares, which are the subject of the Option Certificate attached hereto.

 

Calculation of total Exercise Price:

 

	
(i)
    	
number of Shares to be acquired on exercise:
    	
                                   Shares
    
	
 
    	
 
    	
 
    
	
(ii)
    	
times the Exercise Price per Share:
    	
$                                 
    
	
 
    	
 
    
	
TOTAL EXERCISE PRICE, enclosed herewith:
    	
$                                 
    

 

The undersigned tenders herewith a certified cheque or bank draft (circle one) in the amount of $                payable to the Company in an amount equal to the total Exercise Price of the aforesaid Shares, as calculated above, and directs the Company to issue the share certificate evidencing said Shares in the name of the undersigned to be mailed to the undersigned at the following address:

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

DATED the        day of                      , 200   .

 

	
 
    	
 
    	
 
    
	
Signature of Witness
    	
 
    	
Signature of Option Holder
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Witness (please print)
    	
 
    	
Name of Option Holder (please print)Exhibit 10.1

MANAGEMENT   CONSULTING AGREEMENT BETWEEN: Executive Management Solutions Limited, a   limited liability company incorporated under the laws of British Columbia and   having its head office in North Vancouver, BC, Canada (“EMSL") AND:   Tidal Royalty Corp., a company incorporated under the laws of British   Columbia as Treminco Resources Ltd. on March 12, 1980. The name was changed   to Elkhorn Gold Mining Corporation on February 8, 1999 and to Tulloch   Resources Ltd. on October 12, 2011 and to Tidal Royalty Corp. on July 18,   2017. ("Company") AND: THEO VAN DER LINDE, of North Vancouver,   British Columbia, Canada (“TVL”) WHEREAS: A. The Company anticipates making   investments involving conventional equity, debt and other forms of   investments in private and public companies and anticipates seeking   investment opportunities in the US; B. The Company wishes to engage EMSL to   provide the services of TVL as CFO of the Company. C. The Company and EMSL   desire that the terms of the engagement be formally embodied in this   Agreement; THEREFORE in consideration of the recitals, the following   covenants and the payment of one dollar made by each of the parties to each   of the others, the receipt and sufficiency of which are acknowledged by each   party, the parties agree on the following terms: 

    

 

- 2 - 1.   ENGAGEMENT AND DURATION 1.1 Engagement The Company hereby engages EMSL to   provide the services of TVL as CFO of the Company and EMSL accepts such   engagement on the terms and conditions set forth in this Agreement. 1.2 Term   This Agreement shall commence on July 20, 2017 and shall continue   indefinitely unless and until terminated by either party in accordance with   this Agreement. 2. DUTIES 2.1 Performance of Duties EMSL shall cause TVL to   provide officer services to the Company as its CFO and such other services   and duties as may reasonably be assigned to the TVL from time to time by the   chief executive officer of the Company ("CEO"). EMSL shall cause   TVL, in exercising the powers and performing the functions of CFO: (a) to act   honestly and in good faith and in the best interests of the Company; (b) to   exercise the care, diligence and skill of a reasonably prudent person; (c) to   devote the time necessary to discharge the responsibilities assigned to the   CFO and to perform faithfully and efficiently such responsibilities; (d) to   protect the interests of the Company and its business to the best of his   ability and judgment and in a manner consistent with standards prevailing in   similar businesses in Canada and the United States; and (e) to comply   promptly and faithfully with the reasonable and lawful instructions,   directions, requests, rules, policies and regulations of the CEO and the   Company. (f) TVL may provide management services to other persons or   companies (private or public) provided that such outside activities do not   interfere with the performance of TVL's services pursuant to this Agreement.   Notwithstanding the above, TVL agrees to spend as much time reasonably   expected to fulfill his duties in line with expansion of the activities of   the Company. 

    

 

- 3 - 2.2   Principal Place of Work EMSL shall cause TVL to perform the principal duties   of CFO from Vancouver, British Columbia or at such other location as shall be   approved by the CEO. EMSL acknowledges that such duties and responsibilities   may involve a reasonable amount of traveling. 2.3 Reporting In the provision   of the services of CFO to the Company, EMSL agrees that TVL shall report to   the CEO and the Board. TVL shall provide individual subject, daily, weekly   and/or monthly confidential reports to the CEO, as requested in writing. 2.4   Personal Nature The obligations and rights of EMSL are based upon the   provision of the services of TVL and his singular skills, qualifications and   experience and EMSL shall not assign any person other than TVL to exercise   the powers and perform the functions of CFO of the Company. 2.5 Right to Use   Name and Likeness During the term of this Agreement, EMSL hereby grants to   the Company the right to use TVL's name, likeness and/or biography in   connection with the services provided by EMSL under this Agreement and in   connection with the advertising or exploitation of any project with respect   to which EMSL provides services for the Company. 3. FEES, COMPENSATION AND   BENEFITS 3.1 Fees The Company shall pay to EMSL for the services provided   under this Agreement an annual fee of CAD$72,000. Such fees shall be invoiced   to the Company by EMSL monthly and the Company shall pay such invoices, plus   applicable sales taxes, on receipt. EMSL shall be responsible for remitting   all taxes (including income taxes) arising pursuant to this Agreement. It is   the intent of the parties that the fee payable to EMSL not be subject to   increased tax due to taxation applied by multiple jurisdictions. The parties   agree that if such is the case and relief is not available through applicable   tax treaties, the fee will be adjusted to negate the impact of such double   taxation. 3.2 Reimbursement of Expenses The Company shall reimburse EMSL for   all reasonable expenses incurred by TVL in the provision of the services   under this Agreement. Such expenses shall be invoiced by EMSL to the Company   monthly with reasonable supporting documents and the Company shall pay such   invoices on receipt. TVL shall obtain prior approval for individual expenses   over CAD$5,000. 

    

 

- 4 - 3.3 Time   Required The Company and EMSL agree that TVL shall devote such time as TVL   and the CEO determine jointly is required for TVL to provide the services   contemplated under this Agreement. 3.4 Other Compensation (To be determined   at later date) In addition to the fees set out in section 3.1, EMSL shall or,   with EMSL’s consent, TVL shall be entitled to the following compensation: (a)   options to acquire common shares of the Company to be exercisable in   accordance with a vesting formula based on performance goals to be agreed   upon by TVL and the CEO on or before May 1, 2016; and Other monetary   incentive programs that may be established by the Company from time to time,   at the discretion of the board of directors upon recommendation of the   compensation committee of the board of directors. The amount of the   remuneration to be paid pursuant to section 3.1 shall be reviewed annually by   the Company in consultation with TVL and may be changed by mutual agreement   between the parties based upon the recommendations of the compensation   committee of the Board of Directors, on reviewing changes in the cost of the   services performed hereunder and the performance of the parties. The Company   may provide benefit coverage, or the cost of such coverage, to TVL in   accordance with the policies and procedures of the Company in effect from   time to time (b) (c) (d) 3.5 Equipment The Company shall provide EMSL with   such equipment and/or supplies as is necessary for performance by TVL of the   duties of CFO , for use in carrying out Company business. 3.6 Benefits The   Company shall supply Directors and Officers Insurance, renewed each year.   Also see 3.4 (d) above. 4. CONFIDENTIALITY AND NON-DISCLOSURE 4.1 "Confidential   Information" The term "Confidential Information" means any and   all information concerning any aspect of the Company not publicly disclosed,   which EMSL or TVL may receive or develop as a result of the engagement of   EMSL under this Agreement, and including all technical data, concepts,   reports, programs, processes, technical information, trade secrets, systems,   business strategies, financial information and other information unique to   the Company. All Confidential Information, including notes, diagrams, maps,   reports, notebook pages, memoranda, sample materials and any excerpts thereof   that include Confidential Information are the property of the Company or   parties for whom the Company acts as agent or who are customers of the   Company, as the case may be, and are strictly confidential to the Company   and/or such parties. EMSL shall not make, shall use its best efforts to   prevent and shall ensure that TVL does not make and uses his best efforts to   prevent any unauthorized disclosure or use of such Confidential Information. 

    

 

- 5 - 4.2   Equitable Remedies EMSL acknowledges that any unauthorized disclosure or use   of such Confidential Information may result in material damages to the   Company and that the Company shall be entitled to seek injunctive relief or   any other legal or equitable remedy to prohibit, prevent or enjoin   unauthorized disclosure or use of Confidential Information by EMSL or TVL.   EMSL acknowledges and agrees that any unauthorized disclosure or use of   Confidential Information will cause irreparable harm to the Company that   could not be adequately compensated by damages. 4.3 Use of Confidential   Information Except as authorized by the Company, EMSL will not and will   ensure that TVL will not: (a) duplicate, transfer or disclose nor allow any   other person to duplicate, transfer or disclose any of the Company's   Confidential Information; or (b) use the Company's Confidential Information   without the prior written consent of the Company. 4.4 Protection of   Confidential Information EMSL will safeguard and will cause TVL to safeguard   all Confidential Information at all times so that it is not exposed to or   used by unauthorized persons, and will exercise at least the same degree of   care used to protect EMSL’s own Confidential Information. 4.5 Exception The   restrictive obligations set forth above shall not apply to the disclosure or   use of any information which: (a) is or later becomes publicly known under   circumstances involving no breach of this Agreement; (b) is already known to   EMSL or to TVL at the time of receipt of the Confidential Information; (c) is   lawfully made available to EMSL or to TVL by a third party; (d) is disclosed   by EMSL or TVL pursuant to a requirement of a governmental department or   agency or disclosure is otherwise required by operation of law, provided that   EMSL gives notice and causes TVL to give notice in writing to the Company of   the required disclosure immediately upon becoming advised of such required   disclosure and provided also that EMSL delays and causes TVL to delay such   disclosure so long as it is reasonably possible in order to permit the   Company to appeal or otherwise oppose such required disclosure and provides   the Company with such assistance as the Company may reasonably require in   connection with such appeal or other opposition; (e) is disclosed to a third   party under an approved confidentiality agreement; or 

    

 

- 6 - (f) is   disclosed in the course of EMSL’s provision of the services under this   Agreement. 4.6 New Discoveries EMSL will disclose and will cause TVL to   disclose to the Company forthwith any inventions, discoveries or improvements   in systems, methods and processes made by EMSL or TVL, as the case may be,   during the provision of the services under this Agreement and any mineral   discoveries and opportunities to acquire mineral assets or interests therein   which come to EMSL or to TVL and they shall belong to and be the absolute   property of the Company. 4.7 Corporate Disclosure Policy and Code of Ethics   EMSL confirms that it has received a copy of the Company's current corporate   disclosure policy and Code of Business Conduct and Ethics, which it has   reviewed and understood, and EMSL shall comply with and shall cause TVL to   comply with these policies as the same may be amended from time to time by   the Board of Directors of the Company. 4.8 Survival The provisions of this   Article 4 shall survive the termination of this Agreement. 5. TERMINATION 5.1   Change of Control and Good Reason For the purposes of this Agreement: (a) a   "change of control" ("Change of Control") shall be deemed   to have occurred when: (i) at least 50% in fair-market value of all the   assets of the Company are sold to an arm's length third party; or (ii) there   is a direct or indirect acquisition by a person or group of persons acting   jointly or in concert of voting shares of the Company that when taken   together with any voting shares owned directly or indirectly by such person   or group of persons at the time of the acquisition, constitutes 25% or more   of the outstanding voting shares of the Company; (iii) a majority of the   ten-incumbent Board of Directors’ nominees for election to the Board of   Directors of the Company are not elected at any annual or special meeting of   shareholders of the Company. 

    

 

- 7 - (b)   "Good Reason" shall include, without limitation, the occurrence of   any of the following without TVL’s written consent (except in connection with   the termination of the employment of the Employee for just cause or   disability pursuant to section 5.3): (i) a change (other than those that are   clearly consistent with a promotion) in TVL's position or duties,   responsibilities (including, without limitation, to whom TVL reports and who   reports to TVL), title or office in effect immediately prior to the Change of   Control, which includes any removal of TVL from or any failure to re-elect or   re-appoint TVL to any such positions or offices; or (ii) a reduction by the   Company or any of its subsidiaries of TVL's salary, benefits or any other   form of remuneration or any change in the basis upon which TVL's salary,   benefits or any other form of remuneration payable by the Company or its   subsidiaries is determined or any failure by the Company to increase TVL's   salary, benefits or any other forms of remuneration payable by the Company or   its subsidiaries in a manner consistent (both as to frequency and percentage   increase) with practices in effect immediately prior to the Change of Control   or with practices implemented subsequent to the Change of Control with   respect to the senior Employee of the Company and its subsidiaries, whichever   is more favourable to TVL; or (iii) any failure by the Company or its   subsidiaries to continue in effect any benefit, bonus, profit sharing,   incentive, remuneration or compensation plan, stock ownership or purchase   plan, pension plan or retirement plan in which TVL is participating or   entitled to participate immediately prior to the Change of Control, or the   Company or its subsidiaries taking any action or failing to take any action   that would adversely affect TVL's participation in or reduce his rights or   benefits under or pursuant to any such plan, or the Company or its   subsidiaries failing to increase or improve such rights or benefits on a   basis consistent with practices in effect immediately prior to the Change of   Control or with practices implemented subsequent to the Change of Control   with respect to the senior Employees of the Company and its subsidiaries,   whichever is more favourable to TVL; or (iv) the Company or its subsidiaries   relocating TVL to any place other than the location at which he reported for   work on a regular basis immediately prior to the Change of Control or a place   within 100 kilometers of that location; or (v) any breach by the Company of   any provision of this Agreement; or (vi) the good faith determination by TVL   that, as a result of the Change of Control or any action or event thereafter,   TVL's status or responsibility in the Company or its subsidiaries have been   diminished or TVL is being effectively prevented from carrying out his duties   and responsibilities as they existed immediately prior to the Change of   Control; or (vii) the failure by the Company to obtain, in a form   satisfactory to TVL, an effective assumption of its obligations hereunder by   any successor to the Company, including a successor to a material portion of   its business. 5.2 TVL’s Right to Terminate (a) TVL may terminate this   Agreement on three months’ notice to the Company; 

    

 

- 8 - (b) at   any time for Good Reason and at any time after 90 days following the date on   which there is a Change of Control and within 180 days of the date on which   there is a Change of Control by providing one month’s notice in writing to   the Company which notice may be provided by TVL at any time between the 91st   and the 180th day following the date on which there is a Change of Control.   The Company may waive the notice requirements set out in paragraphs (a) and   (b) above in whole or in part and if it does so, EMSL’s entitlement to   remuneration and benefits as set out in sections 5.4 and 5.5 as applicable   will apply as of the date the Company waives such notice. 5.3 Company's Right   to Terminate The Company may terminate this Agreement: (a) at any time   without notice in any of the following events: (i) theft, dishonesty or fraud   by TVL with respect to the business of the Company; or (ii) the conviction of   TVL for a criminal offence that gives rise or is likely to give rise to the   Company's stock becoming ineligible for listing on any stock exchange or   market or the Company's stock being subject to a cease-trade order by a   Canadian or US securities regulatory authority; or (iii) any and all other   omissions, commissions or other conduct by TVL which would constitute just   cause at law for the Company to terminate TVL if TVL were an employee of the Company;   (b) on three months’ notice and pay to EMSL, and vesting of all common stock,   options and cash bonus as provided for in 3.4. 5.4 Compensation Due to EMSL   on Termination Upon termination of this Agreement, the Company shall pay to   EMSL, within 30 days of the termination, the fees and other remuneration, if   any, to which EMSL is entitled to as of the date of termination. Other   remuneration in the event of termination under 5.1, and 5.3 (b) above shall   include the equivalent of 2 times EMSL’s prorated annual fee as well as   vesting of all common stock and options provided for in 3.4. EMSL shall   submit its final invoice for expenses together with supporting documentation   within 15 days of termination and the parties shall, in good faith, complete   a reconciliation to reflect the expense advance made by the Company to EMSL   pursuant to section 3.2. In the event, an amount is owing by EMSL to the   Company after completion of this reconciliation, this remaining balance owing   may be deducted by the Company from any other amounts owing by the Company to   EMSL failing which EMSL shall pay such remaining balance to the Company. 

    

 

- 9 - 5.5   Resignations Upon termination of this Agreement for whatever reason EMSL   shall cause TVL to forthwith execute and deliver to the Company his written   resignation from any and all offices of the Company and its affiliates, with   corresponding claim for compensation. 5.6 Payments in Full Settlement EMSL   acknowledges and agrees that the payments pursuant to this Article 5 shall be   in full satisfaction of all claims, losses, costs, damages or expenses in   connection with the termination of this Agreement. Except as provided in this   Article, EMSL shall not be entitled to any further termination payments,   damages or compensation whatsoever in connection with this Agreement. As a   condition precedent to any payment pursuant to this Article, EMSL agrees to deliver   to the Company, prior to any such payment, a full and final release by EMSL   and TVL from all actions and claims in connection with this Agreement or any   losses, costs, damages or expenses resulting therefrom in favour of the   Company, its affiliates, subsidiaries, directors, officers, employees and   agents in a form satisfactory to the Company and the Employee. 5.7 Delivery   of Records Upon the termination of this Agreement, EMSL will deliver and will   cause TVL to deliver to the Company all books, records, lists, brochures and   other property belonging to the Company or developed in connection with the   business of the Company, and will execute and cause TVL to execute such   transfer documentation as is necessary to transfer such property or   intellectual property to the Company. 6. NOTICES 6.1 Delivery of Notice Any   notice relating to this Agreement or required or permitted to be given in   accordance with this Agreement shall be in writing and shall be personally   delivered or mailed by registered mail, postage prepaid as follows: (a) if to   the Company: Tidal Royalty Corp. 2900 – 595 Burrard Street, P.O. Box 49130,   Vancouver, British Columbia V7X 1J5 

    

 

- 10 - (b) if   to EMSL : Executive Management Solutions Limited 973 Essex Road North Vancouver,   BC V7R 1 W1 Attention: CFO theo@pashleth.com +1 778 834 6272 (c) if to TVL:   Theo van der Linde 973 Essex Road North Vancouver, BC V7R 1 W1 6.2 Time of   Delivery Any notice shall be deemed to have been received if delivered, when   delivered, and if mailed, on the fifth day (excluding Saturdays, Sundays and   holidays) after the mailing thereof. If normal mail service is interrupted by   strike, slowdown, force majeure or other cause, a notice sent by registered   mail will not be deemed to be received until actually received and the party   sending the notice shall utilize any other services which have not been so   interrupted or shall deliver such notice in order to ensure prompt receipt   thereof. 6.3 Change of Address Each party to this Agreement may change its address   for the purpose of this Part 6 by giving written notice of such change in the   manner provided for in paragraph 6.1. 7. GUARANTEE 7.1 Guarantee by TVL Each   of the covenants herein made in favour of or for the benefit of the Company   by EMSL is hereby guaranteed by TVL and he joins in the execution of this   Agreement solely for the purpose of guaranteeing the obligations of EMSL   hereunder. 

    

 

- 11 - 8.   GENERAL 8.1 Applicable Law This Agreement shall be governed by and construed   in accordance with the laws of the province of Nova Scotia and the federal   laws of Canada applicable therein, which shall be deemed to be the proper law   hereof. The parties hereto hereby submit to the jurisdiction of the courts of   Nova Scotia. All obligations of the parties under this Agreement are subject   to receipt of all necessary approvals of the applicable securities regulatory   authorities. 8.2 Severability If any provision of this Agreement for any   reason be declared invalid, such declaration shall not affect the validity of   any remaining portion of the Agreement, which remaining portion shall remain   in full force and effect as if this Agreement had been executed with the   invalid portion thereof eliminated, and it is hereby declared the intention   of the parties that they would have executed the remaining portions of this   Agreement without including therein any such part, parts or portion which   may, for any reason, be hereafter declared invalid. 8.3 Entire Agreement This   Agreement constitutes the entire agreement between the parties hereto and   there are no representations or warranties, express or implied, statutory or   otherwise other than set forth in this Agreement and there are no agreements   collateral hereto other than as are expressly set forth or referred to   herein. This Agreement cannot be amended or supplemented except by a written   agreement executed by all parties hereto. The parties acknowledge that this   Agreement has been negotiated in good faith. In the event any   misunderstanding, dispute or difference arises among them in respect of any   matter connected with this Agreement or in the event circumstances change   affecting the terms of this Agreement, the parties agree to negotiate in good   faith to resolve such matter and any such resolutions shall be reflected by   written agreement executed by all parties hereto. 8.4 Non-Assignability This   Agreement shall not be assigned by any party to this Agreement without the   prior written consent of the other parties to this Agreement. Notwithstanding   the foregoing, it is understood that the fees and benefits under this   Agreement may be shared by the Company and its subsidiaries from time to   time, as they may agree. Notwithstanding any such sharing, each of the   covenants herein made in favour of or for the benefit of EMSL shall be   guaranteed by the Company and any such sharing shall not relieve or reduce   the liability and obligations of the Company hereunder. 8.5 Burden and   Benefit This Agreement shall enure to the benefit of and be binding upon the   parties hereto and their respective heirs, executors, administrators,   successors and permitted assigns. 

    

 

- 12 - 8.6 Time   Time is of the essence of this Agreement. 8.7 Counterparts This Agreement may   be executed in counterparts and by facsimile or electronic signature and such   counterparts together shall constitute one and the same instrument. 8.8   Waiver No consent or waiver, express or implied, by any party to this   Agreement of any breach or default by any other party in the performance of   its obligations under this Agreement or of any of the terms, covenants or   conditions of this Agreement shall be deemed or construed to be a consent or   waiver of any subsequent or continuing breach or default in such party's   performance or in the terms, covenants and conditions of this Agreement. The   failure of any party to this Agreement to assert any claim in a timely   fashion for any of its rights or remedies under this Agreement shall not be   construed as a waiver of any such claim and shall not serve to modify, alter   or restrict any such party's right to assert such claim at any time   thereafter. 8.9 Indemnity EMSL shall indemnify and hold harmless the Company,   its officers, directors and employees from any and all claims, demands,   suits, actions, proceedings, loss, cost, and damages, including any   reasonable attorneys’ fees and/or litigation expenses, caused by any wilful   misconduct or negligence of EMSL, its agents, representatives, or   subcontractors, in connection with the performance of this Agreement. The   Company shall indemnify and hold harmless EMSL, its officers, directors and   employees from any and all claims, demands, suits, actions, proceedings,   loss, cost, and damages, including any reasonable attorneys’ fees and/or   litigation expenses, caused by any wilful misconduct or negligence of the   Company, its agents, representatives, or subcontractors, in connection with   the performance of this Agreement. 

    

 

- 13 - IN   WITNESS WHEREOF the parties have duly executed this Agreement as of the 20th   day of July 2017. TIDAL ROYALTY CORP. Per: STUART WOOLDRIDGE CHIEF EXECUTIVE   OFFICER Executive Management Solutions Limited Per: THEO VAN DER LINDE   President Theo van der Linde Per: THEO VAN DER LINDE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}]]