Document:

Exhibit 10.1

 

 

PURCHASE AND SALE AGREEMENT

FOR THE

RUBY HILL ROYALTY 

 

 

 

 

 

AMONG

 

 

METALLIC
VENTURES (U.S.), INC.,

 

INTERNATIONAL
MINERALS CORPORATION,

 

 

AND

 

 

ROYAL
GOLD, INC.

 

 

May
23, 2012

 

 

    	 

    	 

    
 

PURCHASE AND SALE AGREEMENT

 

This Purchase
and Sale Agreement (“Agreement”) is made as of this 23rd day of May 2012 (“Agreement
Date”), by and among METALLIC VENTURES (U.S.), INC., a corporation organized under the laws of the State of Nevada
(“Seller”), international
Minerals Corporation, a corporation organized under the laws of the Yukon Territory (“International”),
and ROYAL GOLD, INC., a corporation organized under the laws of the State of Delaware (the “Purchaser”).

 

RECITALS

 

A.     By
Warranty Deed made effective as of June 29, 1994, from Ruby Hill Mining Company (“Ruby Hill”) to Homestake Mining
Company of California (“Homestake”) (“Royalty Agreement”), recorded on February 19, 1998
in the Official Records of Eureka County, Nevada, at Book 318, Page 96, File No. 169763, Ruby Hill: (i) granted,
conveyed and warranted to Homestake those lands situate in Eureka County, Nevada more particularly described in Exhibit A to the
Royalty Agreement, together with certain other real and personal property interests (collectively, the “Mining Property”);
and (ii) reserved to itself a production royalty of three percent of “Net Smelter Returns” (as that term is defined
in the Royalty Agreement) for all ores and minerals mined or otherwise recovered from the Mining Property and thereafter sold by
or for the account of Homestake, subject to the terms and conditions of the Royalty Agreement (“Royalty”).

 

B.     As
a result of certain transactions culminating with the Merger, Seller is the owner of an undivided 100% interest in and to the Royalty.

 

C.     Seller
is a wholly-owned subsidiary of Ecuadorian, and Ecuadorian is a wholly-owned subsidiary of International.

 

D.     Seller
has agreed to sell to Purchaser, and Purchaser has agreed to purchase from Seller, the Royalty on the terms and subject to the
conditions set forth in this Agreement.

 

AGREEMENTS

 

In consideration of
the premises and the mutual covenants, agreements, representations, warranties and payments contained in this Agreement, and intending
to be legally bound, Seller and Purchaser agree as follows:

 

Article 1

DEFINITIONS AND INTERPRETATION

 

		1.1.	Definitions

 

The following terms
shall have the respective meanings set out below, and grammatical variations of such terms shall have corresponding meanings:

 

(a)     “Affiliate”
of a Party means any entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such Party.

 

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(b)     “Agreement”
has the meaning set forth in the introductory paragraph to this Agreement and includes the Exhibits attached hereto.

 

(c)     “Agreement
Date” has the meaning set forth in the introductory paragraph to this Agreement.

 

(d)     “Assumed
Liabilities” has the meaning set forth in Section 5.1(a).

 

(e)     “Business
Day” means any day that is not a Saturday, Sunday or statutory holiday in Denver, Colorado.

 

(f)     “Closing”
means the completion of the purchase and sale of the Royalty pursuant to Article 4 hereof.

 

(g)     
“Dollars” or “$” means United States Dollars, the official currency of the United States
of America.

 

(h)     “Ecuadorian”
means Ecuadorian Minerals Corporation (U.S.), a corporation organized under the laws of the State of Nevada.

 

(i)     “Effective
Date” has the meaning set forth Section 6.1(a).

 

(j)     “Environmental
Laws” means all Laws relating to the environment and/or the protection thereof, including with respect to the following
substances and/or the transportation thereof:

 

		(i)	any substance the presence of which requires reporting, investigation, removal, preventative measures,
management or remediation under any Laws;

 

		(ii)	any substance that is defined as a pollutant, contaminant, dangerous substance, toxic substance,
hazardous or toxic chemical, hazardous waste or hazardous substance under any Laws;

 

		(iii)	any substance that is toxic, explosive, corrosive, flammable, ignitable, infectious, carcinogenic
or otherwise hazardous and is regulated by or forms the basis of liability under any Laws;

 

		(iv)	any substance the presence of which on a property causes or threatens to cause a nuisance upon
the property or to adjacent properties or poses or threatens to pose a hazard to health or safety of persons on or about a property;

 

		(v)	any substance that contains gasoline, diesel fuel or other petroleum hydrocarbons, including crude
oil and fractions thereof, natural gas, synthetic gas and any mixtures thereof;

 

		(vi)	any substance that contains asbestos and/or asbestos-containing materials;

 

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		(vii)	any substance that contains pcbs, or pcb-containing materials or fluids; or

 

		(viii)	any nuclear material.

 

(k)     “Governmental
Authority” means a federal, state, municipal or local government in the United States of America, or any subdivision
of any of the foregoing, including an entity, person, court, agency or other body or organization exercising executive, legislative,
judicial, regulatory or administrative functions of, or pertaining to, any such government or subdivision.

 

(l)     “Homestake”
has the meaning set forth in Recital A to this Agreement.

 

(m)     “Indemnitee”
has the meaning set forth in Section 5.5(a).

 

(n)     “Indemnitor”
has the meaning set forth in Section 5.5(a).

 

(o)     “International”
has the meaning set forth in the introductory paragraph to this Agreement.

 

(p)     “Knowledge”
of a Party means the actual knowledge of such Party, after reasonable inquiry, including due inquiry of all directors and officers
of such Party, and the direct reports of such officers.

 

(q)     “Laws”
means all laws, statutes, ordinances, regulations, rules and orders of any Governmental Authority applicable to a Party, this
Agreement or the Royalty, including labor, tax, and Environmental Laws.

 

(r)     “Merger”
means the merger of Ruby Hill with and into Seller, effective August 8, 2007, following which Seller was the surviving entity
and Seller’s articles of incorporation and bylaws continued as the organizational documents of Seller.

 

(s)     “Metallic
Acqusition Date” means February 26, 2010, the date on which International acquired all of the issued and outstanding
shares of Metallic Ventures Gold Inc. by way of statutory plan of arrangement.

 

(t)     “Mining
Property” has the meaning set forth in Recital A to this Agreement.

 

(u)     “Notices”
has the meaning set forth in Section 7.3.

 

(v)     “NNPM
Tax” means the Nevada Net Proceeds of Minerals Tax.

 

(w)     “Party”
means Seller, International or Purchaser, and “Parties” means Seller, International and Purchaser.

 

(x)     “Purchase
Price” has the meaning set forth in Section 2.2(a).

 

(y)     “Purchaser”
has the meaning set forth in the introductory paragraph to this Agreement.

 

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(z)     “Retained
Liabilities” has the meaning set forth in Section 5.1(b).

 

(aa)     “Royalty”
has the meaning set forth in Recital A to this Agreement.

 

(bb)     “Royalty
Agreement” has the meaning set forth in Recital A to this Agreement.

 

(cc)     “Ruby
Hill” has the meaning set forth in Recital A to this Agreement.

 

(dd)     “Ruby
Hill Mine” means the Mining Property and all of the open pit mining, beneficiation and related operations situated on
the Mining Property and certain surrounding lands in Eureka County, Nevada, owned and operated on the Agreement Date by Homestake.

 

(ee)     “Seller”
has the meaning set forth in the introductory paragraph to this Agreement.

 

(ff)     “Taxes”
means value-added taxes, sales or commodity taxes, goods-and-services taxes, withholding taxes, stamp duties or similar taxes,
duties and any registration, transfer or other fees imposed or levied in accordance with applicable Law or by any Governmental
Authority, but excludes taxes on income or capital gains.

 

		1.2.	Rules of Construction

 

The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. All references herein to articles, sections and exhibits, unless
the context requires a different construction, shall be deemed to be references to the articles and sections of this Agreement
and the Exhibits attached hereto. Such Exhibits are incorporated herein and made a part hereof for all purposes. In this Agreement,
unless a clear contrary intention appears, the word “including” (and with correlative meaning “include”)
means including, without limiting the generality of any description preceding such term. Words, terms and phrases used, but not
specifically defined, in this Agreement shall have the meanings commonly ascribed to such words, terms or phrases. The headings
of the various articles and sections of this Agreement are for convenience only and shall not affect the meaning of the terms and
conditions of this Agreement. No provision of this Agreement shall be interpreted or construed against any Party solely because
that Party or its legal representative drafted such provision. In this Agreement, unless the context otherwise requires, words
importing the singular include the plural and vice versa, and words importing a gender include all genders.

 

Article 2

Purchase And Sale Of RoyaltY

 

		2.1.	Purchase and Sale

 

Upon the terms and
subject to the conditions of this Agreement, on the Agreement Date Seller shall sell, convey, assign, grant, transfer and deliver
to Purchaser, and Purchaser shall purchase and assume from Seller, the Royalty and all of Seller’s rights in and to the Royalty
Agreement. Such purchase and sale shall be effective as of the Effective Date.

 

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		2.2.	Purchase Price

 

(a)     Purchase
Price. The price to be paid by Purchaser to Seller on the Agreement Date for the Royalty shall be Thirty-Eight Million Dollars
($38,000,000.00) (the “Purchase Price”).

 

(b)     Payment.
Payment of the Purchase Price shall be made by wire transfer of immediately available funds to a bank account designated by Seller
and confirmed in writing to Purchaser on or prior to the Agreement Date.

 

Article 3

Representations, Warranties, Acknowledgements AND COVENANTS

 

		3.1.	Representations and Warranties of Seller, International
and Purchaser

 

As of the Agreement
Date, Seller and International (jointly and severally) represent and warrant to Purchaser, and Purchaser represents and warrants
to Seller and International, as follows, each acknowledging that the others will rely on such representations and warranties in
entering into this Agreement, and in concluding the purchase and sale contemplated by this Agreement:

 

(a)     Organization
and Power. It (i) is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction
of incorporation; (ii) is duly authorized to conduct business and is in good standing under the laws of each jurisdiction
where such qualification is required in connection with the performance or satisfaction of an obligation hereunder; (iii) has
the corporate power to execute and deliver this Agreement and to perform its obligations under this Agreement; and (iv) in
the case of Seller, it has the corporate power to own the Royalty.

 

(b)     Due
Authorization. It has been duly authorized by all requisite corporate action to execute, deliver and fully perform its obligations
hereunder. This Agreement and all other agreements, conveyances, transfers and other documents to be executed and delivered hereunder
have been duly and validly executed and constitute and will constitute the valid and binding obligations upon it, enforceable in
accordance with its terms.

 

(c)     No
Conflicts or Violations. Neither the entering into of this Agreement and all other agreements, conveyances, transfers and other
documents to be executed and delivered hereunder, nor the completion of the transactions contemplated hereby in accordance with
the terms hereof will conflict with or result in the violation or breach of any of the terms or provisions of its constating documents.
Neither the entering into of this Agreement and all such other agreements, conveyances, transfers and other documents, nor such
completion thereof will:

 

		(i)	result in the violation of any of the terms or provisions of any agreement, instrument or obligation
to which it is a party or by which it is bound, or in the case of Seller, by which Seller’s interest in the Royalty is bound
or affected;

 

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		(ii)	conflict with, or result in a breach of, or violate any Law; or

 

		(iii)	give to any other person, after the giving of notice or otherwise, any claim or cause of action,
or any right of termination, cancellation or acceleration in or with respect to any agreement or other instrument to which it is
a party or is subject, or from which it derives benefit.

 

(d)     Broker’s
Fees. It has no liability to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated
by this Agreement for which the other Party could become liable or obligated, or which could constitute a lien or encumbrance on
the Royalty.

 

(e)     Litigation.
There is no action, suit, prosecution, investigation or other similar proceeding of a material nature at law or in equity pending
or, to its Knowledge, threatened against it that affects the validity or enforceability of the Royalty or this Agreement, or which
seeks to prohibit, enjoin, or otherwise challenge the transactions contemplated by this Agreement.

 

		3.2.	Representations, Warranties and Covenants of International
and Seller

 

International and Seller
jointly and severally represent, warrant and covenant to Purchaser as follows, and acknowledge that Purchaser will rely on such
representations, warranties and covenants in entering into this Agreement, and in concluding the purchase and sale contemplated
by this Agreement:

 

(a)     Corporate
Structure. One hundred percent (100%) of the issued and outstanding capital stock of Seller is owned directly by Ecuadorian, and
one hundred percent (100%) of the issued and outstanding capital stock of Ecuadorian is owned directly by International.

 

(b)     Royalty
Agreement. The document attached hereto as Exhibit A is a true, correct, accurate and complete copy of the Royalty
Agreement. Since the Metallic Acquisition Date, the Royalty Agreement has not been altered, modified, supplemented or amended,
and is in full force and effect. No notice, consent, waiver, approval or authorization is required from any person or entity (whether
or not a party to the Royalty Agreement) or any Governmental Authority, as a result of the execution of this Agreement or the consummation
of the transactions contemplated herein. There are no existing material defaults under the Royalty Agreement by Seller or, to Seller’s
Knowledge, the counterparty thereto and, to Seller’s Knowledge, no event has occurred which (with notice, lapse of time or
both) would constitute a material breach or default thereunder by any party.

 

(c)     Ownership
of Royalty. Seller owns the undivided one hundred percent (100%) interest in and to the Royalty, including without limitation
all rights to receive payment of three percent of Net Smelter Returns (as such term is defined in the Royalty Agreement), subject
to the terms and conditions of, and payable pursuant to, the Royalty Agreement.

 

(d)     No
Encumbrances Against Royalty. Except for the NNPM Tax, Seller holds the Royalty free and clear of all liens, claims and encumbrances
of any type or nature whatsoever, and has not:

 

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		(i)	sold, assigned, conveyed or transferred the Royalty, any interest therein or any of its rights
with respect thereto;

 

		(ii)	granted or created, or consented to the grant or creation of, any liens, charges or encumbrances
on or in respect of the Royalty;

 

		(iii)	granted any options to purchase or rights of first refusal with respect to the Royalty; or

 

		(iv)	agreed to any oral or written modification or amendment of the Royalty Agreement, or waived any
of its rights thereunder.

 

(e)     No
Competing Agreements. Neither Seller nor any of its Affiliates are parties to or bound by any letter agreement, letter of intent,
contract, agreement or other understanding, whether written or oral, for the purchase and sale of, or option to purchase, or right
of first refusal in respect of, the Royalty; and neither Purchaser’s extension of any offer for the Royalty, nor the acceptance
thereof by Seller, nor the completion of the transactions contemplated herein, conflicts with or constitutes a breach of any letter
agreement, letter of intent, contract, agreement or other understanding, whether written or oral, to which Seller or any Affiliate
of Seller is a party or by which it is bound.

 

(f)     Information
and Data. Seller has made available at Seller’s Reno, Nevada, office, for examination and reproduction by Purchaser or
Purchaser’s authorized representatives at Purchaser’s expense, all material documents in Seller’s possession
relating to the Royalty. All such information shall be maintained as confidential by Purchaser in accordance with Section 7.2(a).

 

(g)     Compliance
with Laws. Neither Seller nor any of its Affiliates has received from any Governmental Authority or any third party notice
of any pending or threatened investigation or inquiry by any Governmental Authority relating to any actual or alleged violation
of any Law with respect to or affecting the Royalty.

 

		3.3.	Limitations of Representations and Warranties

 

Seller and International
make no and expressly disclaim any representation or warranty, express, implied or statutory as to (a) title, operating or production
status of the Mining Property, (b) the content, character, or nature of any descriptive materials, reports or any geological data
or interpretation relating to the Mining Property, or the quantity, quality, or recoverability of any minerals in or from the Mining
Property, (c) any estimates of the value of the Mining Property, the Royalty or any future payments or revenues from the Royalty,
and (d) any other materials or information that may have been made available or communicated to Purchaser or its affiliates, agents,
employees, consultants, representatives or advisors in connection with the transactions contemplated by this Agreement or any discussion
or presentation relating thereto. Seller makes this conveyance based upon the representation that Buyer has conducted due diligence
and has made an independent evaluation of the Royalty, its value and otherwise.

 

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		3.4.	Survival

 

All representations
and warranties made by a Party in this Agreement shall survive and continue in full force and effect for the benefit of the other
Party or Parties, as the case may be, for a period of sixty (60) months following the Closing. All covenants and agreements made
by a Party in this Agreement shall survive and continue in full force and effect for the benefit of the other Party or Parties,
as the case may be, after the Closing until such covenants and agreements have been performed to the reasonable satisfaction of
the Party or Parties to whom such performance is owed.

 

Article 4

Closing

 

		4.1.	Deliveries by Seller

 

On the Agreement Date, Seller
shall deliver or cause to be delivered to Purchaser:

 

(a)     an
Assignment in form and content substantially similar to the form attached hereto as Exhibit B, executed by Seller, sufficient
to vest in Purchaser all of Seller’s rights, title and interests in and to the Royalty free and clear of all liens, claims
and encumbrances;

 

(b)     certified
copies of the resolutions of Seller’s board of directors authorizing the execution, delivery and performance of this Agreement
and of all documents to be delivered by Seller under this Agreement, and the completion of the transactions contemplated hereby;

 

(c)     certified
copies of the resolutions of Ecuadorian, as sole shareholder of Seller, authorizing the execution, delivery and performance of
this Agreement and of all documents to be delivered by Seller under this Agreement, and the completion of the transactions contemplated
hereby;

 

(d)     certified
copies of the resolutions of International’s board of directors authorizing International’s execution, delivery and
performance of its obligations pursuant to this Agreement;

 

(e)     a
certificate of an officer of Seller, acting on behalf of Seller, dated as of the Agreement Date, certifying as to the accuracy
of Seller’s representations and warranties and the performance of its covenants to be performed at or before the Closing;

 

(f)     a
certificate of an officer of International, acting on behalf of International, dated as of the Agreement Date, certifying as to
the accuracy of International’s representations and warranties and the performance of its covenants to be performed at or
before the Closing;

 

(g)     a
Notice and Direction to Pay in form and content substantially similar to the form attached to this Agreement as Exhibit C,
executed by Seller;

 

(h)     a
State of Nevada Declaration of Value in form and content substantially similar to the form attached to this Agreement as Exhibit
D, executed by Seller; and

 

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(i)     a
Direction to Pay addressed to Purchaser in connection with payment of the Purchase Price hereunder.

 

		4.2.	Deliveries by Purchaser

 

At the Closing,
Purchaser shall deliver or cause to be delivered to Seller:

 

(a)     an
Assignment in form and content substantially similar to the form attached hereto as Exhibit B, executed by Purchaser;

 

(b)     certified
copies of the resolutions of Purchaser’s board of directors authorizing the execution, delivery and performance of this Agreement
and of all documents to be delivered by Purchaser under this Agreement, and the completion of the transactions contemplated hereby;

 

(c)     a
certificate of an officer of Purchaser, acting on behalf of Purchaser, dated as of the Agreement Date, certifying as to the accuracy
of Purchaser’s representations and warranties and the performance of its covenants to be performed at or before the Closing;

 

(d)     a
Notice and Direction to Pay in form and content substantially similar to the form attached to this Agreement as Exhibit C,
executed by Purchaser;

 

(e)     a
State of Nevada Declaration of Value in form and content substantially similar to the form attached to this Agreement as Exhibit
D, executed by Purchaser; and

 

(f)     the
Purchase Price to be paid to Seller in accordance with the wire transfer instructions provided to Purchaser pursuant to Section 2.2(b).

 

		4.3.	Simultaneous Transactions

 

All deliveries
contemplated by Sections 4.1 and 4.2 to be made on the Agreement Date in connection with the Closing shall be deemed to occur simultaneously,
and none shall be deemed completed until all are completed.

 

Article 5

Assumption AND RETENTION of Liabilities; Related Indemnities

 

		5.1.	Assumed and Retained Liabilities

 

(a)     From
and after the Agreement Date, Purchaser shall assume, pay and discharge as and when due and be responsible for all liabilities,
if any, arising out of the ownership by Purchaser of the Royalty after the Effective Date (collectively, the “Assumed
Liabilities”). Purchaser shall indemnify and save Seller harmless from all claims, demands, suits and actions in respect
of the Assumed Liabilities.

 

(b)     At
all times from and after the Effective Date, Seller shall retain, pay and discharge as and when due and be responsible for all
liabilities arising out of: (i) ownership of the Royalty by Seller or Seller’s predecessors in interest prior to the
Effective Date; and (ii) ownership of the Mining Property, including any fixtures and improvements situated thereon, by Seller
and Seller’s predecessors in interest, and the conduct by Seller and Seller’s predecessors in interest of any activity
or operation thereon (collectively, the “Retained Liabilities”). Seller shall indemnify and save Purchaser harmless
from all claims, demands, suits and actions in respect of the Retained Liabilities.

 

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		5.2.	Payment of Certain Taxes on Sale and Transfer

 

Seller shall be responsible
for and shall pay when due any and all income, value-added tax and capital gains tax payable in respect of the sale and transfer
of the Royalty to Purchaser. Purchaser shall be responsible for and shall pay when due any and all stamp duty and recording fees
payable in respect of the sale and transfer of the Royalty to Purchaser and the recording of the Assignment. Seller and Purchaser
shall use their commercially reasonable efforts in good faith to minimize or eliminate any such taxes. Each Party shall have the
right, at its cost and expense, to contest any Tax imposed upon it, and the other Party shall cooperate, to the extent reasonable,
with the contesting Party in any opposition, contest or challenge to any attempt by any Governmental Authority to impose any such
Tax. For the avoidance of doubt, the Parties agree that the Purchase Price includes value added tax. After the Closing, Purchaser
shall pay any and all Taxes based on or measured by income generated by the Royalty after the Effective Date.

 

		5.3.	Indemnification by Purchaser

 

In accordance with
the procedures in Section 5.5, Purchaser shall indemnify Seller and its directors, officers, employees, agents, joint venture partners
and representatives against and agrees to hold Seller and its directors, officers, employees, agents, joint venture partners and
representatives harmless from any and all damages, claims, losses, liabilities, fines, penalties and expenses (including expenses
of investigation, attorneys’ fees in connection with any action, suit or proceeding brought against any of them, the cost
of all studies, surveys, clean-up and any other environmental expenses) incurred or suffered by Seller or its directors, officers,
employees, agents, joint venture partners, and representatives arising out of:

 

(a)     any
misrepresentation or breach of warranty by Purchaser of which Notice has been given by Seller under Section 5.5;

 

(b)     the
failure of Purchaser to perform any covenant or agreement made or to be performed by Purchaser pursuant to this Agreement; or

 

(c)     any
liabilities or obligations assumed by Purchaser pursuant to Sections 5.1(a) and 5.2.

 

		5.4.	Indemnification by International

 

In accordance with
the procedures in Section 5.5, International shall indemnify Purchaser and its directors, officers, employees, agents, joint
venture partners and representatives against and agrees to hold Purchaser and its directors, officers, employees, agents, joint
venture partners and representatives harmless from any and all damages, claims, losses, liabilities, fines, penalties and expenses
(including expenses of investigation, attorneys’ fees and expenses in connection with any action, suit or proceeding brought
against any of them, the cost of all studies, surveys, clean-up and any other environmental expenses) incurred or suffered by Purchaser
or its directors, officers, employees, agents, and representatives arising out of:

 

(a)     any
misrepresentation or breach of warranty by Seller or International of which Notice has been given by Purchaser under Section 5.5,
including without limitation the representations and warranties of Seller and International set forth in Section 3.2(a);

 

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(b)     the
failure of Seller or International to perform any covenant or agreement made or to be performed by Seller or International, respectively,
pursuant to this Agreement; or

 

(c)     any
liabilities or obligations assumed by Seller pursuant to Sections 5.1(b) and 5.2;

 

		5.5.	Claims of Indemnity

 

(a)     A
Party claiming indemnity under this Article 5 (the “Indemnitee”) shall give prompt Notice of any claim,
action, proceeding or circumstances that could reasonably give rise to such a claim to the Party which has agreed to indemnify
it (the “Indemnitor”). Failure to give such prompt Notice will not preclude the Indemnitee from pursuing the
claim unless and to the extent that the Indemnitor is materially prejudiced by such failure.

 

(b)     The
Indemnitor may, and will, if directed to do so by the Indemnitee, at its own expense and in the name of the Indemnitee or otherwise,
dispute any claim made, or any matter on which a claim could be made, by a third party in respect of which a Notice has been given
by the Indemnitee under Section 5.5(a) and may retain legal counsel acceptable to the Indemnitee, which acceptance shall not be
unreasonably withheld or delayed, to conduct any proceeding relating to such a claim. The Indemnitee may employ separate counsel
with respect to any such claims brought by a third party and participate in the defense thereof, provided, however, that
the fees and expenses of such counsel shall be the responsibility of the Indemnitee unless:

 

		(i)	the Indemnitor fails to assume the defense of such claim on behalf of the Indemnitee within five
days of receiving Notice of such claim; or

 

		(ii)	the employment of such counsel has been authorized by the Indemnitor;

 

in each of which
cases the Indemnitor shall not have the right to assume the defense of such suit on behalf of the Indemnitee but shall be liable
to pay the reasonable fees and expenses of counsel for the Indemnitee.

 

(c)     For
the purpose of confirming or disputing such a claim, the Indemnitee will provide full and complete disclosure to the Indemnitor
and complete access to and right of inspection by the representatives of the Indemnitor of all documents and records in the possession
or control of the Indemnitee relating to such claim. If any security is required to be provided for the purpose of defending or
contesting any such claim, including any appeal of any judgment, the Indemnitor shall provide such security and all monies or property
representing such security received by the Indemnitee as a result of a successful defense or contest will be held in trust by the
Indemnitee for the benefit of the Indemnitor and will be remitted to the Indemnitor on demand. Neither the Indemnitee nor the Indemnitor
shall settle, compromise or pay any claim for which indemnity is sought hereunder except with the prior written consent of the
other, such consent not to be unreasonably withheld or delayed, or in the case of the Indemnitee unless the Indemnitor fails to
dispute and defend such claim.

 

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Article 6

Post-Closing Matters

 

		6.1.	Royalty and NNPM Payments; Audits

 

(a)     Royalty
Payments. From and after the Closing, Purchaser shall be entitled to the full use and enjoyment of the Royalty, including all
payments of Royalty in respect of production from the Mining Property occurring on and after April 1, 2012 (“Effective
Date”). In the event that Seller shall receive any payment of Royalty to which Purchaser is entitled, Seller immediately
shall forward such payment to Purchaser. Notwithstanding the foregoing, Seller shall retain the right to make claims and demands
for Royalty in respect of production from the Mining Property prior to the Effective Date, that Seller alleges was not paid in
full or otherwise in accordance with the Royalty Agreement.

 

(b)     NNPM
Tax Adjustments. Seller shall be responsible for NNPM Tax attributable to time periods prior to the Effective Date and Purchaser
shall be responsible for NNPM Tax for time periods on and after the Effective Date. In the event the NNPM Tax estimated and paid
by Homestake to the State of Nevada exceeds the actual amount of NNPM Tax finally determined by Homestake to be owed for
all periods prior to the Effective Date, Seller shall be entitled to any such excess and Purchaser shall promptly pay, by wire
transfer of immediately available funds, such excess to Seller out of amounts received from, or credited to Purchaser’s account
by, Homestake. In the event the NNPM Tax estimated and paid by Homestake to the State of Nevada is less than the actual amount
of NNPM Tax finally determined by Homestake to be owed for all periods prior to the Effective Date, Seller shall, within
three (3) Business Days following confirmation of such amounts by Homestake, pay such amounts to Purchaser by wire transfer of
immediately available funds to an account designated in a Notice given to Seller by Purchaser.

 

(c)     Audit
Rights. Notwithstanding any other provisions contained herein, Seller may exercise the rights set forth in the Royalty Agreement
to review records and conduct audits of Royalty payments under the Royalty Agreement for periods prior to the Effective Date; provided
that after the third anniversary of the date on which the consolidated tax return of Ecuadorian for its fiscal 2011 tax year is
filed, Seller will only exercise such rights in the case of a tax audit or inquiry, or litigation. Seller must exercise such rights
by delivering to Purchaser a Notice of its intent to conduct such an audit. Upon receipt of such Notice, Purchaser shall use its
reasonable efforts to assist Seller with such review and audits and shall take such other actions as Seller reasonably may require
in the exercise of its rights hereunder.

 

		6.2.	Further Assurances; Recording

 

From and after the
Closing each of the Parties will execute such documents and instruments, and make any and all such filings or registrations with
Governmental Authorities and take such other actions as may on its part be required to complete the transfer of the Royalty to
Purchaser. After the Closing, Purchaser, at its cost and expense, shall record the Assignment and provide a copy thereof to Seller.

 

    	12

    	 

    
 

Article 7

MISCELlANEOUS

 

		7.1.	Expenses

 

The Parties shall each
bear all of their own costs and expenses, including consultants’ and attorneys’ fees, incurred in connection with the
negotiation of this Agreement and the consummation of the transactions contemplated hereby.

 

		7.2.	Confidentiality and Public Announcements

 

(a)     Each
Party shall maintain as confidential all non-public data and information provided to it prior to the Closing by any other Party
hereto or any of such providing Party’s Affiliates.

 

(b)     Except
as provided in Section 7.2(c) and 7.2(d), each Party shall treat the terms and conditions of this Agreement as confidential information
and will not disclose the same to any third party or the public without the prior written consent of the other Party, which consent
shall not be unreasonably withheld, conditioned or delayed.

 

(c)     The
consent required by Section 7.2(b) shall not apply to disclosure which the disclosing Party believes in good faith is required
by pertinent Laws or the applicable rules of any stock exchange. In any case to which this Section 7.2(c) is applicable, the disclosing
Party shall give Notice to the other Parties and, to the extent practical under the circumstances, an opportunity to review the
disclosure and provide comments in advance of its release.

 

(d)     The
Parties acknowledge that a Party may be required by Laws to (i) disclose the existence and the terms and conditions of this
Agreement; and/or (ii) file this Agreement with one or more Governmental Authorities, securities exchanges or commissions
as required by applicable Laws. A Party required to file this Agreement and/or undertake such disclosure may do so; provided,
however, that the disclosing or filing Party (iii) shall comply with all Laws applicable to such disclosure and/or filing;
and (iv) shall not attribute any statements regarding this Agreement to any other Party. Each Party shall provide drafts of
press releases relating to this Agreement or the transactions contemplated herein to the other Parties sufficiently in advance
of its release to permit such other Parties a reasonable opportunity to review and comment on the content thereof.

 

		7.3.	Notices

 

All notices, requests,
demands, claims, and other communications hereunder (“Notices”) must be in writing. Any Party may send any Notice
to the intended recipient at the address set forth below using recognized express courier, personal delivery, facsimile or email
transmittal. All Notices shall be effective and shall be deemed delivered if by personal delivery, courier, facsimile or email
transmission on the date of delivery if delivered during normal business hours on a Business Day, and, if not delivered during
normal business hours on a Business Day, on the next Business Day following delivery.

 

    	13

    	 

    
 

	If to Seller:	 	Metallic Ventures (U.S.) Inc.
 230 South Rock Boulevard, Suite 30
 Reno, Nevada 89502
 Attention: Kevin Keating - Manager Nevada Operations
 Fax: (775) 826-4314
 Email: kkeating@intlminerals.com
	Informational copy to:	 	International Minerals Corporation 

7950 E. Acoma Drive, Suite 211

Scottsdale, Arizona 85260

Attention: Steve Kay – President/CEO

Fax: (480) 483-9926

Email:  skay@intlminerals.com
	 	 	 
	If to International:	 	International Minerals Corporation 

7950 E. Acoma Drive, Suite 211

Scottsdale, Arizona 85260

Attention: Steve Kay – President/CEO

Fax: (480) 483-9926

Email:  skay@intlminerals.com
	 	 	 
	If to Purchaser:	 	Royal Gold, Inc.
 1660 Wynkoop Street, Suite 1000
 Denver, Colorado 80202
 Attention:  Vice President and General Counsel
 Fax: (303) 595-9385
 Email:  bkirchhoff@royalgold.com
	Informational copy to:	 	Royal Gold, Inc.
 1660 Wynkoop Street, Suite 1000
 Denver, Colorado 80202
 Attention:  President and Chief Executive Officer
 Fax: (303) 595-9385
 Email:  tjensen@royalgold.com

 

Any Party may change
the address to which Notices are to be delivered by Notice to the other Parties.

 

    	14

    	 

    
 

		7.4.	Entire Agreement

 

This Agreement, including
the Exhibits hereto, constitutes the entire agreement between the Parties in relation to the transactions herein contemplated and,
except as specifically set out herein or in any documents delivered at Closing pursuant hereto, supersedes every previous agreement,
communication, expectation, negotiation, representation or understanding, whether oral or written, express or implied, statutory
or otherwise, among the Parties with respect to the subject matter of this Agreement, including all drafts and versions of Purchaser’s
offer letter exchanged between Purchaser and Seller prior to the Agreement Date.

 

		7.5.	Amendments and Waivers

 

This Agreement may
not be amended except by written agreement signed by each Party. No waiver of any provision of this Agreement will be valid unless
it is in writing and signed by each Party. No such waiver by either Party of any default, misrepresentation, or breach of warranty
or covenant hereunder, whether intentional or not, will be deemed to extend to any prior or subsequent default, misrepresentation,
or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

		7.6.	Severability

 

Any provision of this
Agreement which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof.

 

		7.7.	Assignment

 

Neither Seller nor
International shall assign any right, benefit or interest in this Agreement to any Affiliate or third party without the prior written
consent of the Purchaser, and any purported assignment without such consent shall be void and of no effect. Purchaser may freely
assign its rights, benefits and interests in this Agreement to an Affiliate of Purchaser or to any third party.

 

		7.8.	Inurement

 

This Agreement shall
enure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns.

 

		7.9.	Conflict between Documents

 

Unless otherwise specifically
stated, the provisions of this Agreement shall govern and prevail in the event of any inconsistency or conflict between the terms
hereof and of any assignment, transfer or other document or instrument executed or delivered by either Party hereto in connection
with the transactions contemplated hereby.

 

		7.10.	Time

 

Time shall be of the essence
of this Agreement.

 

    	15

    	 

    
 

		7.11.	Governing Law

 

This Agreement will
be governed by and construed in accordance with the laws of the State of Nevada without giving effect to any choice or conflict
of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of Nevada.

 

		7.12.	Relationship of the Parties

 

Except as otherwise
provided herein, this Agreement is not intended to and shall not confer any rights, remedies, obligations, or liabilities, legal
or equitable, including any right of employment, on any person other than the Parties hereto and their respective successors, or
assigns, or otherwise constitute any person a third-person beneficiary under or by reason of this Agreement. Nothing in this Agreement,
expressed or implied, is intended to or shall constitute the Parties hereto partners or participants in a joint venture including,
but not limited to, a mining joint venture.

 

		7.13.	Execution

 

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

 

[Signatures appear on the following page.]

 

    	16

    	 

    
 

AS EVIDENCE OF THEIR
AGREEMENT the Parties have executed this Agreement as of the date first above written.

 

	 	SELLER:	 
	 	 	 	 	 
	 	 	METALLIC VENTURES (U.S.) INC.	 
	 	 	 	 	 
	 	 	By:	/s/Stephen Kay	 
	 	 	Name:	Stephen Kay	 
	 	 	Title:	President	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	INTERNATIONAL:	 
	 	 	 	 	 
	 	 	International Minerals Corporation	 
	 	 	 	 	 
	 	 	By:	/s/Scott Brunsdon	 
	 	 	Name:	Scott Brunsdon	 
	 	 	Title:	CFO	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	PURCHASER:	 
	 	 	 	 	 
	 	 	ROYAL GOLD, INC.	 
	 	 	 	 	 
	 	 	By:	/s/Tony A. Jensen	 
	 	 	Name:	Tony A. Jensen	 
	 	 	Title:	President and Chief Executive Officer	 

 

 

Purchase and Sale Agreement Signature Page

 

    	 

    	 

    
 

 

Exhibit A

to

Purchase and Sale Agreement

among

Metallic Ventures (U.S.) Inc.,

International Minerals Corporation

and

Royal Gold, Inc.

 

The Royalty Agreement

 

 

[See Attached]

 

 

    	A-1

    	 

    
 

 

Exhibit B

to

Purchase and Sale Agreement

among

Metallic Ventures (U.S.) Inc.,

International Minerals Corporation

and

Royal Gold, Inc.

 

Form of Assignment

 

 

    	B-1

    	 

    
 

FORM OF

ASSIGNMENT

 

 

THIS ASSIGNMENT (“Assignment”)
is made as of May 23, 2012 (the “Assignment Date”), by and between METALLIC VENTURES (U.S.) INC.,
a Nevada corporation having an office address of 230 South Rock Boulevard, Suite 30, Reno, Nevada 89502 (“Assignor”),
and ROYAL GOLD, INC., a Delaware corporation having an office at 1660 Wynkoop Street, Suite 1000, Denver, Colorado 80202
(“Assignee”). Assignor and Assignee are referred to individually herein as a Party” and collectively
as the “Parties.”

 

RECITALS

 

A.     By
Warranty Deed made effective as of June 29, 1994 from Ruby Hill Mining Company (“Ruby Hill”) to Homestake Mining
Company of California (“Homestake”) (the “Royalty Agreement”), recorded on February 19, 1998
in the Official Records of Eureka County, Nevada, at Book 318, Page 96, File No. 169763, Ruby Hill: (i) granted,
conveyed and warranted to Homestake those lands situate in Eureka County, Nevada more particularly described in Exhibit A to the
Royalty Agreement, together with certain other real and personal property interests (collectively, the “Mining Property”);
and (ii) reserved to itself a production royalty of three percent of “Net Smelter Returns” (as that term is defined
in the Royalty Agreement) for all ores and minerals mined or otherwise recovered from the Mining Property and thereafter sold by
or for the account of Homestake, subject to the terms and conditions of the Royalty Agreement (the “Royalty”).

 

B.     As
a result of certain transactions culminating with the merger of Ruby Hill with and into Seller on August 8, 2007, Seller is
the owner of an undivided 100% interest in and to the Royalty.

 

C.     Assignor,
Assignee and International Minerals Corporation entered into that certain Purchase and Sale Agreement dated May 23, 2012 (the
“Purchase and Sale Agreement”) pursuant to which Assignor agreed to sell, and Assignee agreed to purchase, all
of Assignor’s rights, title and interests in and to the Royalty.

 

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound,
the Parties agree as follows:

 

ASSIGNMENT

 

 

1.     Assignment
of Rights, Title and Interests. Effective as of April 1, 2012 (“Effective Date”), Assignor does hereby sell,
convey, assign, grant, transfer and deliver to Assignee, free and clear of all liens, claims and encumbrances of every type and
nature whatsoever, all of Assignor’s rights, title and interests in and to the Royalty and the Royalty Agreement. The lands
and interests in lands subject to the Royalty are described in Exhibit A attached to this Assignment and by this reference
incorporated herein.

 

    	B-2

    	 

    
 

2.     Assumed
and Retained Liabilities.

 

(a)     From
and after the Assignment Date, Assignee shall assume, pay and discharge as and when due and be responsible for all liabilities,
if any, arising out of the ownership by Assignee of the Royalty after the Effective Date (collectively, the “Assumed Liabilities”).

 

(b)     At
all times from and after the Effective Date, Assignor shall retain, pay and discharge as and when due and be responsible for all
liabilities arising out of: (i) ownership of the Royalty by Assignor or Assignor’s predecessors in interest prior to
the Effective Date; and (ii) ownership of the Mining Property, including any fixtures and improvements situated thereon, by
Assignor and Assignor’s predecessors in interest, and the conduct by Assignor and Assignor’s predecessors in interest
of any activity or operation thereon (collectively, the “Retained Liabilities”).

 

3.     Audit
Rights. Notwithstanding any other provisions contained herein, Assignor may exercise the rights set forth in the Royalty Agreement
to review records and conduct audits of Royalty payments under the Royalty Agreement for periods prior to the Effective Date. Assignor
must exercise such rights in accordance with the terms and conditions therefor set forth in the Purchase and Sale Agreement.

 

4.     Successors
and Assigns. This Assignment and all of the provisions hereof shall be binding upon and shall inure solely to the benefit of
the Parties and their respective successors and assigns.

 

5.     No
Third Party Beneficiaries. Nothing in this Assignment, express or implied, is intended or shall be construed to confer upon,
or give to, any person other than the Parties and their respective successors and assigns, any remedy or claim under or by reason
of this instrument or any agreements, terms, covenants or conditions hereof, and all the agreements, terms, covenants and conditions
contained in this Assignment shall be for the sole and exclusive benefit of the Parties and their respective successors and assigns.

 

6.     Titles
and Headings. The headings contained in this Assignment are solely for convenience of reference and shall not affect the meaning
or interpretation of this Assignment or of any term or provision hereof.

 

7.     Construction.
This Assignment is delivered pursuant to and is subject to the Purchase and Sale Agreement. Nothing herein shall itself change,
amend, extend or alter (nor shall it be deemed or construed as changing, amending, extending or altering) the terms or conditions
of the Purchase and Sale Agreement in any manner whatsoever, and such terms and conditions shall remain in full force and effect
in accordance with the terms of the Purchase and Sale Agreement. In the event of any conflict between the Purchase and Sale Agreement
and this Assignment, the terms of the Purchase and Sale Agreement shall govern, supersede and prevail.

 

8.     Amendment
and Waiver. This Assignment may be amended, or any provision of this Assignment may be waived, provided that any such
amendment or waiver will be binding upon: (i) Assignor only if such amendment or waiver is set forth in a writing executed
by Assignor; and (ii) Assignee only if such amendment or waiver is set forth in a writing executed by Assignee. No course
of dealing between or among the Parties will be deemed effective to modify, amend or discharge any part of this Assignment or any
rights or obligations of the Parties under or by reason of this Assignment.

 

    	B-3

    	 

    
 

9.     Notices.
All notices, requests, demands, claims, and other communications hereunder (“Notices”) must be in writing. Any
Party may send any Notice to the intended recipient at the address set forth below using recognized express courier, personal delivery,
facsimile or email transmittal. All Notices shall be effective and shall be deemed delivered if by personal delivery, courier,
facsimile or email transmission on the date of delivery if delivered during normal business hours on a Business Day, and, if not
delivered during normal business hours on a Business Day, on the next Business Day following delivery. For purposes of this Assignment,
the term “Business Day” means any day that is not a Saturday or Sunday or a statutory holiday in Denver, Colorado.

 

	If to Assignor:	 	Metallic Ventures (U.S.) Inc.
 230 South Rock Boulevard, Suite 30
 Reno, Nevada 89502
 Attention: Kevin Keating - Manager Nevada Operations
 Fax: (775) 826-4314
 Email: kkeating@intlminerals.com
	Informational copy to:	 	International Minerals Corporation 

7950 E. Acoma Drive, Suite 211

Scottsdale, Arizona 85260

Attention: Steve Kay – President/CEO

Fax: (480) 483-9926

Email: skay@intlminerals.com
	 	 	 
	If to Assignee:	 	Royal Gold, Inc.
 1660 Wynkoop Street, Suite 1000
 Denver, Colorado 80202
 Attention:  Vice President and General Counsel
 Fax:  (303) 595-9385
 Email:  bkirchhoff@royalgold.com
	Informational copy to:	 	Royal Gold, Inc.
 1660 Wynkoop Street, Suite 1000
 Denver, Colorado 80202
 Attention:  President and Chief Executive Officer
 Fax:  (303) 595-9385
 Email:  tjensen@royalgold.com

 

Either Party may change
the address to which Notices are to be delivered by Notice to the other Parties.

 

    	B-4

    	 

    

10.     Governing
Law. This Assignment will be governed by and construed in accordance with the laws of the State of Nevada without giving effect
to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than
the State of Nevada.

 

AS EVIDENCE OF THEIR
AGREEMENT the Parties have executed this Assignment as of the date first above written.

 

	 	ASSIGNOR:
	 	 	 	 	 
	 	 	METALLIC VENTURES (U.S.) INC..
	 	 	 	 	 
	 	 	By:	 	 
	 	 	Name:	Stephen Kay
	 	 	Title:	President
	 	 	 	 	 
	 	 	 	 	 
	 	ASSIGNEE:
	 	 	 	 	 
	 	 	ROYAL GOLD, INC.
	 	 	 	 	 
	 	 	By: :	 	 
	 	 	Name:	Tony A. Jensen
	 	 	Title:	President and Chief Executive Officer

 

 

ASSIGNOR ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)
	 	) ss.
	COUNTY OF MARICOPA	)

 

The foregoing instrument
was acknowledged before me this ___ day of May, 2012, by Stephen Kay, as President of Metallic Ventures (U.S.) Inc., a Nevada
corporation.

 

Witness my hand and
official seal.

 

	 	 
	 	Notary Public

 

My commission expires:
_________________

 

 

ASSIGNEE ACKNOWLEDGMENT

 

	STATE OF COLORADO	)
	 	) ss.
	CITY AND COUNTY OF DENVER	)

 

    	B-5

    	 

    
 

The foregoing instrument
was acknowledged before me this   day of May, 2012, by Tony A. Jensen, as President and Chief Executive Officer of
Royal Gold, Inc., a Delaware corporation.

 

Witness my hand and
official seal.

 

	 	 
	 	Notary Public

 

My commission expires: _________________

 

 

    	B-6

    	 

    
 

Exhibit A

To

Assignment

 

 

[See Attached]

 

 

    	B-7

    	 

    
 

Exhibit C

to

Purchase and Sale Agreement

among

Metallic Ventures (U.S.) Inc.,

International Minerals Corporation

and

Royal Gold, Inc.

 

Form of Notice and Direction to Pay

 

 

    	C-1

    	 

    
 

 

FORM OF

NOTICE AND DIRECTION TO PAY

 

 

		TO:	Homestake Mining Company of California

 

		RE:	Warranty Deed made effective as of June 29, 1994 from Ruby Hill Mining Company to Homestake
Mining Company of California, recorded on February 19, 1998 in the Official Records of Eureka County, Nevada, at Book 318,
Page 96, File No. 169763 (the “Royalty Agreement”)

 

 

Notice is hereby given that Royal Gold,
Inc. (“Royal Gold”) acquired all of the rights, title and interests of Metallic Ventures (U.S.) Inc. (“Metallic
Ventures”) in and to the Royalty Agreement effective as of April 1, 2012, subject to the reservation by Metallic Ventures
of certain audit rights provided under the Royalty Agreement with respect to periods prior to April 1, 2012.

 

By letter dated March 21, 2007 from Ruby
Hill Mining Company, you were directed to pay to Metallic Ventures all amounts due and owing to Ruby Hill Mining Company pursuant
to the Royalty Agreement until such time as Metallic Ventures otherwise directs in writing.

 

By this Notice and Direction to pay, you
are hereby irrevocably and unconditionally authorized and directed, from and after the date hereof until such time as Royal Gold
otherwise directs in writing, to pay to Royal Gold, as payee, pursuant to the Royalty Agreement, including all Net Smelter Returns
payments payable thereunder, as follows:

 

[Insert RGLD payment instructions]

 

This shall be your sufficient authority
for paying in accordance with the foregoing instructions.

 

 

DATED as of the ____ day of May, 2012.

 

 

	Metallic Ventures (U.S.) Inc.	Royal Gold, Inc.
	 	 
	 	 
	By: ______________________________________________	By: _______________________________________________
	 	 
	Name: ____________________________________________	Name: _____________________________________________
	 	 
	Title: _____________________________________________	Title: ______________________________________________

 

    	C-2

    	 

    
 

 

Exhibit D

to

Purchase and Sale Agreement

among

Metallic Ventures (U.S.) Inc.,

International Minerals Corporation

and

Royal Gold, Inc.

 

State of Nevada Declaration of Value

 

 

    	D-1Exhibit 10.6

 

 

 

	 	 
	Mr. Brian S. Block	May 4, 2012
	EVP & Chief Financial Officer	 
	American Realty Capital Trust IV, Inc.	 
	405 Park Ave - 15th Floor	 
	New York, NY 10022	 

 

Re: Engagement Letter for Duff & Phelps’ Professional
Services

 

Dear Mr. Block

 

This Letter of Engagement confirms that we, Duff & Phelps,
LLC (“D&P”), have been retained by you, American Realty Capital Trust IV, Inc. (the “Company”) to provide
the services (the “Services”) set out below in connection with the valuation of real property (hereafter referred to
as the “Subject Properties”) on a quarterly basis (the “Valuation Dates”) commencing the first quarter
following the Company’s acquisition of at least $1.2 billion in total portfolio assets. Collectively, this arrangement is
referenced to as our “Engagement.” The Subject Properties are future acquisitions of net leased real estate located
across the United States and Europe.

 

It is understood that the purpose of the Services will be to
estimate the “as is” market value of the leased fee interest of the real property. The intended use by the Company
for the valuation is to provide a basis for valuation of net asset value as described in the Company’s registration statement
on Form S-11, as amended from time to time (the “Registration Statement”). We understand that the Services will be
to estimate the Fair Market Value of the real estate properties in a newly created fund.

 

Valuation Approaches/Premises

 

We will utilize standard and accepted appraisal methodology
in arriving at our opinions of value. This would include the cost, sales comparison and income approaches to value. All inquiries,
visits to or contact with any persons or facilities of the Company regarding the Services shall be conducted by D&P in a manner
that will assure the confidentiality of the purpose of the Services to be provided. D&P recognizes and agrees that maintaining
the confidentiality of this project is of importance to Company.

 

It is likely that the most appropriate approach to value the
subject properties will be the Income Capitalization approach to value. The Income Capitalization approach simulates the reasoning
of an investor who views the cash flows that would result from the anticipated revenue and expense on a property throughout its
lifetime. The net income figure developed in our analysis is the balance of potential income remaining after vacancy and collection
allowances and operating expenses. This net income is then capitalized at an appropriate rate to derive an estimate of value using
the Direct Capitalization method or discounted in a Discounted Cash Flow methodology. We may use the Sales Comparison and Cost
Approach methodologies as appropriate as well.

 

	 	 	 	 	 
	Duff & Phelps. LLC	 	T +1 312 697 4600	 	www.duffandphelps com
	311 South Wacker Drive	 	F +1 312 697 0112	 	 
	Suite 4200	 	 	 	 
	Chicago, IL 60606	 	 	 	 

 

	 

 

     

     

    

 

	 

Procedures

 

	 	•	We will complete a desktop valuation of a sampling (25 percent) of the owned property contained within the fund as of the end of each quarter (March 31, June 30, September 31, December 31) updating the values previously concluded upon for the assets which have been held since our previous valuation. We will rely upon the contractual rental stream provided for these assets on an individual or master lease level to provide our value conclusion.

 

	 	•	We will incorporate any additional assets which have been acquired since this time period into our overall analysis and will complete desktop valuations on these assets using the same methodology.

 

	 	•	We will provide a brief discussion of notable economic and market dynamics which have affected capitalization rates and will complete an analysis of current capitalization rates to be applied to the properties on an individual or master lease level for our Direct Capitalization or Discounted Cash Flow approach.

 

Form of Report and Timetable

 

At the conclusion of our analysis, we will provide you with
a narrative report (the “Report”) with supporting exhibits containing calculations leading to our value conclusions.
The report will be prepared in accordance with the Code of Professional Ethics and Standards of Professional Practice set for the
by the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Foundation.

 

We are ready to begin our work immediately upon our receipt
of this signed Engagement and upon receipt of information provided in conjunction with an agreed upon timetable considering the
various valuation dates. Once you have read the draft Report, we will issue our final Report bearing the firm’s signature.

 

We will work with the Company to arrive at a workable timetable
for delivery of the valuation conclusions and quarterly Report.

 

Staffing and Fees

 

Ross Prindle, CRE, MAI will be the Managing
Director in charge of the Services on behalf of D&P. Ross is the Managing Director in charge of the global Real Estate Services
Group at Duff & Phelps. Ross will call upon additional experienced staff when required.

 

Our fees for the Services to be provided
reflect the complexity of the Engagement, the time scale for its completion, the caliber of staff engaged, and the value of the
Services provided. Our estimated fees will depend on the product type but will generally be in the range of $1,500 to $7,500 for
the first time with annual update fees being approximately 75 percent (75%) of the initial fee for the first appraisal. This fee
range is intended to serve as a guide as the actual properties have not been acquired as of the writing of this engagement letter.
These fees do not include valuation of debt, contingent consideration or partial interest valuations. These are also associated
with single tenant assets only. These fees consider the valuation of these assets on a desktop basis and assume that information
on the properties themselves will be provided by the Company that will be sufficient enough to complete the desktop valuations.

 

	 

 

     

     

    

 

	 

 

Expenses are not included in the fees and
any expenses associated with necessary property inspections and/or meetings with the Company will be billed in addition to these
fees,

 

Acknowledgement and Acceptance

 

In accordance with D&P policy, it is
necessary that we receive an executed copy of this Engagement Letter and the attached Terms and Conditions (to which this Engagement
is subject) prior to commencement of the Services. If the scope and terms of the Engagement Letter and the attached Terms and Conditions
are acceptable, please acknowledge your acceptance by signing the confirmation below and returning this Letter to us at the above
address and emailing ross.prindle@duffandphelps.com or by fax at 312-265-3581.

 

Please do not hesitate to contact me if you have any questions
or amendments.

 

Yours sincerely,

 

	/s/ Ross Prindle	 
	 	 
	Duff & Phelps, LLC	 
	 	 	 
	By: 	Ross Prindle, MAI, CRE	 
	 	Managing Director	 

 

Confirmation of Terms of Engagement

 

Having read this Engagement Letter from
Duff & Phelps, LLC and the attached Terms and Conditions, the Company acknowledges acceptance of and agree to engage Duff &
Phelps, LLC in accordance with the terms and provisions of this Engagement Letter and the attached Terms and Conditions.

 

	Brian S. Block, EVP & CFO 	 	Date:	MAY 9, 2012

 

	Signed:	Brian S Block	 
	On behalf of:	American Realty Capital Trust IV, Inc.	 

 

	 

 

     

     

    

 

	 

 

Attachment to the Engagement Letter

 

Terms and Conditions

 

The following are the Terms and Conditions
on which Duff & Phelps will provide the Services set forth in the attached Engagement Letter. Together, the Terms and Conditions
and the Engagement Letter are referred to as the “ Contract ,” which forms the entire agreement between Duff
& Phelps and the Company relating to the Services.

  

 

Fees

 

	 	1.	Duff & Phelps’ invoices are payable upon receipt. If we do not receive payment of any invoice within forty-five (45) days of the invoice date, we shall be entitled, without prejudice to any other rights that we may have, to suspend provision of the Services until all sums due are paid in full. Under no circumstances can Duff & Phelps issue its final Report with any billings that remain outstanding.

 

	 	2.	If any amounts payable hereunder are not paid within thirty (30) days when due, such amounts shall accrue interest at a rate equal to the lesser of two percent (2%) per month or the highest interest rate allowed under the law of New York. In the event that we are required to initiate a lawsuit or hire attorneys to collect any past due amounts, in addition to any other rights and remedies available to us, Duff & Phelps shall be entitled to reimbursement of its attorneys fees and other costs of collection.

 

	 	3.	Other than as set forth in the Company’s Registration Statement we have no responsibility to update any opinion, report, analysis or any other document relating to this Engagement for any events or circumstances occurring subsequent to the date of such opinion, report, analysis or other document. Any such subsequent consultations or work shall be subject to arrangements at Duff & Phelps’ then standard fees plus expenses.

 

	 	4.	Either party may request changes to the Services. We shall work with you to consider and, if appropriate, to vary any aspect of the Engagement, subject to payment of reasonable additional fees and a reasonable additional period to provide any additional services. Any variation to this Contract, including any variation to fees, services, or time for performance of the Services, shall be set forth in a separate engagement letter executed by both parties which shall form part of this Contract.

 

	 	5.	Duff & Phelps’ performance of the Services is dependent upon you providing us with accurate and timely information and assistance as we may reasonably require from time to time. You shall use reasonable skill, care and attention to ensure that all information we may reasonably require is provided on a timely basis and is accurate and complete. You shall notify us if you subsequently learn that the information provided is inaccurate or otherwise should not be relied upon. The inability to supply Duff & Phelps with the agreed upon information in a useable form within the amount of time reasonably required by Duff & Phelps may increase fees and delay completion. Additionally, in the event unforeseen complications are encountered which would significantly increase fees; we would discuss these with you and await your approval before proceeding,

 

	 

 

     

     

    

 

	 

 

Termination

 

	 	6.	The initial term of this Contract shall be for one year, which shall be deemed to be automatically renewed unless either Duff & Phelps or the Company provides prior written notice of no less than ninety (90) days of such party’s election to terminate this Contract. In addition, either party may terminate this Contract in the event that the other party has breached any material provision of this Contract and such breach has not been cured within ten (10) days after receipt of written notice from the then non-breaching party.

 

	 	7.	Upon termination of this Contract, each party shall, upon written request from the other, return to the other all property and documentation of the other that is in its possession, except that we shall be entitled to retain one copy of such documents in order to maintain a professional record of Duff & Phelps’ involvement in the Engagement, subject to Duff & Phelps’ continuing confidentiality obligations hereunder.

 

	 	8.	The provisions included within “Fees”, “Preservation of Confidential Information” and “Other Terms and Provisions” shall survive the termination or expiration of this Contract.

 

Valuation Work Products and Report

 

	 	9.	You acknowledge that Duff & Phelps will use and rely upon the financial and other information, including prospective financial information, provided by the Company. Duff & Phelps’ conclusion is dependent on such information being complete and accurate in all material respects. We assume no responsibility and make no representations as to the accuracy and completeness of such provided information. In addition, we will not independently verify any information that we obtain from public or other sources. There will usually be differences between estimated and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. You acknowledge that no reliance shall be placed on draft Reports, conclusions or advice, whether oral or written, issued by us since the same may be subject to further work, revision and other factors which may mean that such drafts are substantially different from any final Report or advice issued.

 

	 	10.	Any advice given or Report issued by us is provided solely for your use and benefit and only in connection with the Services that are provided hereunder. You agree to obtain Duff & Phelps’ written consent which Duff & Phelps may at its discretion grant, withhold, or grant subject to conditions, before disclosing any of Duff & Phelps’s advice, analysis or Report to anyone else, or otherwise making reference to its role, whether orally or in writing; provided, however, that no prior written consent shall be required in connection with any federal or state regulatory or governmental inquiry or proceeding, pursuant to applicable law or in connection with any request by a third party due diligence firm (subject to such due diligence firm entering into a customary release letter in form and substance satisfactory to Duff & Phelps). When Duff & Phelps gives such consent, it is subject to the prior approval of Duff & Phelps of such disclosure. Further, you shall not provide such Report to any third party without the third party first executing a standard Duff & Phelps Release Letter. In no event, regardless of whether consent or pre-approval has been provided, shall we assume any responsibility to any third party to which any advice or Report is disclosed or otherwise made available.

 

	 

 

     

     

    

 

	 

 

	 	11.	It is understood and agreed that the final Report resulting from this Engagement shall remain your property. To the extent that Duff & Phelps utilizes any of its property (including, without limitation, any hardware or software) in connection with this Engagement, such property shall remain the property of Duff & Phelps, and you shall not acquire any right or interest in such property or in any partially completed Report. We shall have ownership (including, without limitation, copyright ownership) and all rights to use and disclose Duff & Phelps’ ideas, concepts, know-how, methods, techniques, processes and skills, and adaptations thereof in conducting its business (collectively, “ Know-How ”) regardless of whether such Know-How is incorporated in any way in the final Report.

 

	 	12.	The scope of the final Report we will provide pursuant to the terms of this Contract will be limited to the scope as described in the Scope of Services section. One or more additional issues may exist that could affect the Federal tax treatment of the subject matter of Duff & Phelps’ final Report. Duff & Phelps’ final Report will not consider or provide a conclusion with respect to any of those issues. With respect to any significant Federal tax issue outside the scope of the final Report, the final Report will not be written, and cannot be used, by anyone for the purpose of avoiding Federal tax penalties.

 

	 	13.	The Report or any results of Duff & Phelps’ Services shall not constitute a Solvency Opinion or a Fairness Opinion and may not be relied upon by you or any other party as such. Furthermore, any analyses we perform should not be taken to supplant any procedures that you should undertake in your consideration of any transaction or investment, and you acknowledge and agree that any decision relating to, or whether or not to enter into, any transaction or make any investment decision is solely the responsibility of Company management.

 

	 	14.	By its very nature, valuation work cannot be regarded as an exact science and the conclusions arrived at in many cases will of necessity be subjective and dependent on the exercise of individual judgment.

 

Preservation of Confidential Information

 

	 	15.	Neither Duff & Phelps nor the Company will disclose to any third party without the prior written consent of the other party any confidential information which is received from the other party for the purposes of providing or receiving the Services which if disclosed in tangible form is marked confidential or if disclosed otherwise is confirmed in writing as being confidential or, if disclosed in tangible form or otherwise, is manifestly confidential; it being understood that the reports prepared by Duff & Phelps for the Company shall not be considered confidential information for purposes herein. Duff & Phelps and the Company agree that any confidential information received from the other party shall only be used for the purposes of providing or receiving the Services under this or any other contract between Duff & Phelps and the Company.

 

	 

 

     

     

    

 

	 

 

	 	16.	These restrictions will not apply to any information which: (a) is or becomes generally available to the public other than as a result of a breach of an obligation by the receiving party; (b) is acquired from a third party who owes no obligation of confidence with respect to the information; or (c) is or has been independently developed by the recipient.

 

	 	17.	Notwithstanding the foregoing, either party will be entitled to disclose confidential information of the other (i) to Duff & Phelps’ or the Company’s respective insurers or legal advisors, or (ii) to a third party to the extent that this is required, by any court of competent jurisdiction, or by a governmental or regulatory authority or where there is a legal right, duty or requirement to disclose, provided that (and without breaching any legal or regulatory requirement) where reasonably practicable not less than two (2) business days notice in writing is first given to the other party.

 

Other Terms and Provisions

 

	 	18.	Except in the event of Duff & Phelps’ willful misconduct or fraud, in no event shall we be liable to you (or any person claiming through you) under this Contract, under any legal theory, for any amount in excess of the total professional fees paid by you to us under this Contract or any addendum to which the claim relates. In no event shall we be liable to you under this Contract under any legal theory for any consequential, indirect, lost profit or similar damages relating to or arising from Duff & Phelps’ Services provided under this Contract.

 

	 	19.	You accept and acknowledge that any legal proceedings arising from or in connection with this Contract (or any variation or addition thereto) must be commenced within one (1) year from the date when you become aware of or ought reasonably to have become aware of the facts, which give rise to Duff & Phelps’ alleged liability. You also agree that no action or claims will be brought against any Duff & Phelps employees personally.

 

	 	20.	You agree to indemnify and hold harmless Duff & Phelps, its affiliates and their respective employees from and against any and all third party claims, liabilities, losses, costs, demands and reasonable expenses, including but not limited to reasonable legal fees and expenses, internal management time and administrative costs, relating to Services we render under this Contract or otherwise arising under this Contract. The foregoing indemnification obligations shall not apply in the event that a court of competent jurisdiction finally determines that such claims resulted directly from the gross negligence, willful misconduct or fraudulent acts of Duff & Phelps.

 

	 	21.	You accept and acknowledge that we have not made any warranties or guarantees, whether express or implied, with respect to the Services or the results that you may obtain as a result of the provision of the Services.

 

	 

 

     

     

    

 

	 

 

	 	22.	Except for the Company’s payment obligations, neither Duff & Phelps nor the Company will be liable to the other for any delay or failure to fulfill obligations caused by circumstances outside our reasonable control.

 

	 	23.	This Contract constitutes the entire agreement between the parties hereto regarding the subject matter hereof and supersedes any prior agreements (whether written or oral) between the parties regarding the subject matter hereof. This Contract may be executed in any number of counterparts each of which shall be an original, but all of which together shall constitute one and the same instrument.

 

	 	24.	Duff & Phelps reserves the right to use your name and a description of the nature of the Engagement in general marketing materials.

 

	 	25.	This Contract shall be governed by and interpreted in accordance with the internal laws of the State of New York and the courts of the State of New York shall have exclusive jurisdiction in relation to any claim arising out of this Contract.

 

	 	26.	Duff & Phelps acknowledges that (A) its valuations will be used or incorporated into the Company’s Registration Statement and periodic filings; (B) Duff & Phelps will be named as an expert in the Registration Statement; (C) Duff & Phelps will provide a consent of independent valuer in form satisfactory to the Company and Duff & Phelps to be attached as an exhibit to the Registration Statement under Exhibit 99; and (D) Duff & Phelps’ provision of the aforementioned consent is subject to the Company providing Duff & Phelps a commercially reasonable opportunity to review and consent to references to Duff & Phelps in any regulatory filings which require Duff & Phelps to be named as an expert.

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