Document:

Exhibit 10.2

 

AGREEMENT FOR GRANT OF NSR PRODUCTION ROYALTY
AND SHARE ISSUE

 

This Agreement for Grant of NSR Production
Royalty (herein “Agreement”), which supersedes the previous Agreement for Grant of NSR Production Royalty dated December
22, 2011, is made effective this 23rd day of August, 2014 by and among:

 

Spartan Gold Ltd., a company incorporated under
the laws of the State of Nevada, with an address of 122 Fourth Avenue, Suite 103, Indialantic, Florida 32903 (hereinafter “Spartan”);
and

 

Sphere Resources Inc., a company existing under
the laws of the Yukon, Canada, with an address of 204 Black Street, Suite 300, Whitehorse, Yukon, Canada Y1A 2M9 (hereinafter “Sphere”).

 

Spartan and Sphere are herein referred to as
the “Parties.”

 

WHEREAS:

 

The Parties entered into an Option and Property
Acquisition Agreement (hereinafter “Poker Flats Option Agreement”) with Mexivada Mining Corporation (hereinafter “Mexivada”)
executed and effective August 6, 2014 whereby Spartan was granted the sole and exclusive option to acquire an undivided seventy-five
percent (75%) interest in certain mining claims owned by Mexivada in Elko County, Nevada, known as the Poker Flats Property (herein
the “Poker Flats Option Agreement”), under the terms and conditions set forth in the Poker Flats Option Agreement;
and

 

Pursuant to the terms of the Poker Flats Option
Agreement, Sphere is obligated to issue 750,000 common shares of Sphere within 60 days of Spartan acquiring a 51% interest in the
Property, and 750,000 common shares of Sphere within 60 days of Spartan acquiring a total of a 75% interest in the Property.

 

NOW THEREFORE, for good and valuable consideration,
the receipt of which is hereby acknowledged, the Parties agree as follows:

 

1. Spartan grants, conveys and assigns to Sphere
a two percent (2%) Net Smelter Returns (NSR) Production Royalty, to be calculated in the same manner as the “Net Smelter
Returns Production Royalty” defined in the Poker Flats Option Agreement, on its share of mineral production from the Poker
Flats Property if and when there is production from the Poker Flats Property. This 2% NSR Production Royalty granted by Spartan
to Sphere on Spartan's share of production from the Poker Flats Property is in addition to the three percent (3%) NSR Production
Royalty retained by the owner of the mining claims leased to Mexivada and Area of Interest defined therein, subject to the Poker
Flats Option Agreement.

 

2.  If and when Spartan elects to
sell and convey all or a portion of its interest in the Poker Flats Property, Spartan shall have the right to purchase up to one
hundred percent (100%) of the two percent (2%) NSR Production Royalty granted, conveyed and assigned by Spartan to Sphere on its
share of production from the Poker Flats Property, under terms to be agreed upon by Spartan and Sphere.

 

3. It is understood and agreed among the Parties
that if Spartan fails or is unable to exercise the option to acquire the Poker Flats Property under the Poker Flats Option Agreement,
or Spartan elects not to purchase the NSR Production Royalty granted, conveyed and assigned to Sphere, before selling and conveying
Spartan’s interest in the Poker Flats Property to an independent third party, such NSR Production Royalty held by Sphere,
applicable to mineral production from the particular property, will terminate and be of no further force or effect. This provision
does not apply to the three percent (3%) NSR Production Royalty on mineral production from the Poker Flats Property retained by
the owner of the mining claims subject to the Poker Flats Option Agreement.  

 

4. Within 60 days upon obtaining a 51% interest
in the Property, Spartan agrees to issue 250,000 common shares of Spartan to Sphere and within 60 days upon obtaining a total of
a 75% interest in the Property, Spartan agrees to issue 250,000 common shares of Spartan to Sphere.

 

5. Sphere agrees that they will not pursue
acquisition of other mining properties or mining development opportunities within two (2) miles of the current boundary of the
Poker Flats Property. It is agreed that Sphere may engage in acquisition of mining properties or mining development opportunities
in other geographical areas should such opportunities arise.

 

If there is any conflict between the terms
and conditions in (a) the Poker Flats Option Agreement, and (b) this Agreement with respect to matters covered by this Agreement,
the terms and conditions in this Agreement shall govern.

 

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IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the date first written above.

 

	SPARTAN GOLD LTD.	 	 	SPHERE RESOURCES INC.	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ William H. Whitmore, Jr.	 	 	/s/ Malcolm L. Stevens	 
	By: William H. Whitmore, Jr.	 	 	By: Malcolm L. Stevens,	 
	President	 	 	Executive Chairman and President	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	2Exhibit 10.4

 

AMENDMENT NO. 3 TO

THE TORO COMPANY 2010 EQUITY AND INCENTIVE PLAN

 

The Board of Directors (the “Board”) and shareholders of The Toro Company, a Delaware corporation (the “Company”), have heretofore approved and adopted The Toro Company 2010 Equity and Incentive Plan (as amended, the “Plan”), and pursuant to the power of amendment reserved to the Compensation and Human Resources Committee of the Board (the “Committee”) in Section 20.1 of the Plan, the Committee has adopted and approved this Amendment No. 3 to the Plan (this “Amendment”), effective as September 16, 2014.

 

1.             Section 11.1 of the Plan is hereby amended and restated in its entirety to read as follows:

 

“11.1.     Nonemployee Director Shares.  On the first business day of each fiscal year, the Company shall issue to each person who is then a Nonemployee Director, Shares in an amount equal to $50,000 (or such other amount as may be determined by the Committee from time to time, which Committee shall consist solely of directors who are “independent directors” (as defined in the rules of the New York Stock Exchange)) divided by the three-month fair market value of one Share, rounded down to the greatest number of whole Shares (“Nonemployee Director Shares”), subject to adjustment as provided in Section 4.4(a) hereof.  “Three-month fair market value” for the purpose of this Section 11.1 shall be the average of the closing sale prices of one Share at the end of the regular trading session for each of the trading days in the three calendar months immediately prior to the date of issue of the Nonemployee Director Shares, as reported by The New York Stock Exchange.”

 

2.             Section 11.2(a) of the Plan is hereby amended and restated in its entirety to read as follows:

 

“(a)         Annual Grant.  Subject to the terms and conditions of this Section 11.2, on the first business day of each fiscal year, the Company shall grant to each person who is then a Nonemployee Director, a Nonqualified Stock Option to purchase Shares (a “Nonemployee Director Option”).  Each Nonemployee Director Option shall have a grant date fair value of $50,000 (or such other amount as may be determined by the Committee from time to time, which Committee shall consist solely of directors who are “independent directors” (as defined in the rules of the New York Stock Exchange)), determined using a standard Black-Scholes, binomial or monte carlo valuation formula, based on assumptions consistent with those used to value option grants disclosed under Schedule 14A under the Exchange Act or successor requirements, for the business day prior to the Grant Date.”

 

3.             No Other Changes.  Except as specifically set forth in Sections 1 and 2 of this Amendment, the Plan shall remain unchanged and shall continue in full force and effect.

 

 

IN WITNESS WHEREOF, The Toro Company has hereunto subscribed its name effective this 16th day of September, 2014.

 

	
 
    	
THE TORO COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Michael J. Hoffman
    
	
 
    	
By: Michael J. Hoffman
    
	
 
    	
Its: Chairman and CEO
    

 

2Exhibit 10.14

 

NONEMPLOYEE DIRECTOR STOCK OPTION AGREEMENT

THE TORO COMPANY 2010 EQUITY AND INCENTIVE PLAN

 

This Agreement (this “Agreement”) dated [        ] (“Grant Date”), between The Toro Company, a Delaware corporation (“Toro”), and [              ] (“you”) sets forth the terms and conditions of the grant to you of a nonqualified option (this “Option”) to purchase [         ] shares of common stock, par value $1.00 per share, of Toro (“Shares”) at an exercise price of $[      ] per Share, under The Toro Company 2010 Equity and Incentive Plan, as amended (the “Plan”).  This Option is subject to all of the terms and conditions set forth in the Plan, this Agreement and the Nonemployee Director Stock Option Acceptance Agreement should you decide to accept this Option.  All of the terms in this Agreement and the Nonemployee Director Stock Option Acceptance Agreement that begin with a capital letter are either defined in this Agreement or in the Plan.

 

1.                                      Expiration Date.  This Option shall expire on [                    ].

 

2.                                      Vesting.  Except as provided in Sections 3, 5 and 6 of this Agreement, this Option shall vest and become exercisable in three (3) as equal as possible installments on each of the first, second and third anniversaries after the Grant Date (rounding down to the nearest whole share on the first vesting date, if necessary, and on the second vesting date, if necessary).

 

3.                                      Effect of Termination of Service as a Director of Toro.

 

(a)                                 Disability.  If your service as a nonemployee director of Toro is terminated by reason of your Disability, this Option will vest immediately, and you or your guardian or legal representative, as the case may be, may exercise this Option until the earlier of the date this Option expires or one (1) year after the date your service as a nonemployee director of Toro terminates by reason of your Disability.

 

(b)                                 Death.  If you die, this Option will vest immediately, and your legal representatives, heirs or legatees may exercise this Option until the earlier of the date this Option expires or one (1) year after the date of your death.

 

(c)                                  Other.  If your service as a director of Toro is terminated for any reason other your death or Disability and you have served as a member of the Board for ten (10) full fiscal years or longer (i) this Option will continue to vest in accordance with its terms, and (ii) you may exercise the vested portion of this Option (including any portion of this Option that vests pursuant to (i)) for up to four (4) years after the date of termination, but not later than the date this Option expires.  If your service as a nonemployee director of Toro is terminated for any reason other your death or Disability and you have served as a member of the Board for less than ten (10) full fiscal years, you may exercise the then vested portion of this Option, if any, for a period of three (3) months after the date your service as a director of Toro terminates, but not later than the

 

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date this Option expires, and any unvested portion of this Option will be canceled on the date your service as a nonemployee director of Toro terminates.

 

4.                                      No Transfer.  You may not transfer this Option other than by will or applicable laws of descent and distribution or, if approved by the Committee, pursuant to a qualified domestic relations order entered into by a court of competent jurisdiction.

 

5.                                      Adverse Action.  In addition to the other rights of the Committee under the Plan, if you are determined by the Committee, acting in its sole discretion, to have taken any action that would constitute an Adverse Action, (a) all of your rights under the Plan and any agreements evidencing an Award granted under the Plan, including this Agreement evidencing this Option, then held by you shall terminate and be forfeited without notice of any kind, and (b) the Committee in its sole discretion may require you to surrender and return to Toro all or any Shares received, or to disgorge all or any profits or any other economic value (however defined by the Committee) made or realized by you, during the period beginning one (1) year prior to your termination of service as a director of Toro, in connection with any Awards granted under the Plan, including this Option, or any Shares issued upon the exercise or vesting of any Awards, including this Option.  Toro may defer the exercise of this Option for a period of up to ninety (90) days in order for the Committee to make any determination as to the existence of an Adverse Action.  This Section 5 shall not apply following a Change of Control.

 

6.                                      Change of Control. In the event of a Change of Control, the provisions of the Plan applicable to a Change of Control will apply to this Option.

 

7.                                      Methods of Exercise.  In order to exercise this Option, you must deliver to Toro’s Vice President, Secretary and General Counsel a written notice of exercise in a form specified or accepted by the Committee specifying the number of whole Shares with respect to which you wish to exercise this Option, accompanied by payment in full of the exercise price for the Shares to be purchased.  Payment may be made (a) in cash; (b) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the exercise price; (c) by a cashless (broker-assisted) exercise; (d) by a “net exercise” of this Option (as further described below); (e) by any combination of (a), (b), (c) and (d); or (f) by any other method approved or accepted by the Committee in its sole discretion.  In the case of a “net exercise” of this Option, Toro will reduce the number of Shares issued upon the exercise of this Option by the largest number of whole Shares that has a Fair Market Value on the exercise date that does not exceed the aggregate exercise price for the Shares exercised under this method and will require cash payment from you for any remaining exercise price.  Shares will no longer be outstanding under this Option (and will therefore not thereafter be exercisable) following the exercise of this Option to the extent of (i) Shares used to pay the exercise price of this Option under the “net exercise,” and (ii) Shares actually delivered to you as a result of such exercise. Any Shares issued to you upon exercise of this Option will be issued and delivered to you in book-entry or certificate form or issued and deposited for your benefit with any broker with which you have an account relationship or Toro has engaged to provide such services under the

 

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Plan.

 

8.                                      General Restriction.  If at any time the Committee determines that the listing, registration or qualification of the Shares subject to this Option on any securities exchange or under any state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition of, or in connection with, the issue or purchase of Shares upon exercise of this Option, this Option may not be exercised unless such listing, registration, qualification, consent or approval has been obtained free of conditions not acceptable to the Committee.  Under certain circumstances as set forth in the Plan, if the exercise of this Option is prevented by certain provisions of the Plan, this Option will remain exercisable until thirty (30) days after the date such exercise first would no longer be prevented by such provisions, but in any event no later than the expiration date of this Option.

 

9.                                      Shareholder Status.  You shall have no rights as a shareholder with respect to any Shares underlying this Option until such Shares have been duly issued and delivered to you in accordance with the terms of this Agreement and the Nonemployee Director Stock Option Acceptance Agreement, and no adjustment shall be made for dividends of any kind or description whatsoever or for distributions of rights of any kind or description whatsoever respecting such Shares except as expressly set forth in the Plan.

 

10.                               Governing Law. This Agreement and the Nonemployee Director Stock Option Acceptance Agreement shall be construed, administered and governed in all respects under and by the applicable laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation to the substantive law of another jurisdiction.

 

11.                               Venue. In accepting this Option, you are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of the State of Minnesota of the United States of America to resolve any and all issues that may arise out of or relate to this Option and this Agreement.

 

12.                               Binding Effect. This Agreement shall be binding upon Toro and you and its and your respective heirs, executors, administrators and successors.

 

13.                               Electronic Delivery. Toro, in its sole discretion, may decide to deliver any documents related to this Option granted to you under the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by Toro or a third party designated by Toro.

 

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14.                               Conflict.  To the extent the terms of this Agreement or the Nonemployee Director Stock Option Acceptance Agreement are inconsistent with the Plan, the provisions of the Plan shall control and supersede any inconsistent provision of this Agreement.

 

15.                               Non-Negotiable Terms.  The terms of this Agreement and the Nonemployee Director Stock Option Acceptance Agreement are not negotiable, but you may refuse to accept this Option by immediately notifying Toro’s Vice President, Secretary and General Counsel in writing.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by The Toro Company and has been executed by you by execution of the attached Nonemployee Director Stock Option Acceptance Agreement.

 

 

	
[            ]
    	
By:
    	
 
    
	
 
    	
 
    	
Chairman and CEO
    

 

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NONEMPLOYEE DIRECTOR STOCK OPTION ACCEPTANCE AGREEMENT

                                     , 20    

 

I hereby agree to the terms and conditions governing the Option grant as set forth in the Nonemployee Director Stock Option Agreement, this Nonemployee Director Stock Option Acceptance Agreement and as supplemented by the terms and conditions set forth in the Plan.

 

In accepting the Option grant, I hereby acknowledge that:

 

(a)                                 The Plan is established voluntarily by Toro, it is discretionary in nature and it may be modified, amended, suspended or terminated by Toro at any time, unless otherwise provided in the Plan, the Nonemployee Director Stock Option Agreement or this Nonemployee Director Stock Option Acceptance Agreement;

 

(b)                                 The grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future Option grants, or benefits in lieu of Option grants, even if Option grants have been granted repeatedly in the past;

 

(c)                                  All decisions with respect to future Option grants, if any, will be at the sole discretion of Toro;

 

(d)                                 I am voluntarily participating in the Plan;

 

(e)                                  The future value of the Shares underlying the Option is unknown and cannot be predicted with certainty and if the Option vests and I exercise the Option in accordance with the terms of the Nonemployee Director Option Agreement and this Nonemployee Director Stock Option Acceptance Agreement and am issued Shares, the value of those Shares may increase or decrease;

 

(f)                                   In consideration of the grant of the Option, no claim or entitlement to compensation or damages shall arise from termination of the Option or diminution in value of the Option or Shares acquired upon exercise of the Option resulting from termination of my service as a nonemployee director of Toro and I hereby irrevocably release Toro and its Affiliates and Subsidiaries from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by acceptance of the Option grant, I shall be deemed irrevocably to have waived my entitlement to pursue such claim;

 

(g)                                  Toro is not providing any tax, legal or financial advice, nor is Toro making any recommendations regarding my participation in the Plan, or my purchase or sale of the Shares underlying the Option; and

 

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(h)                                 I have been advised to consult with my own personal tax, legal and financial advisors regarding my participation in the Plan before taking any action related to the Plan.

 

I hereby acknowledge that I have received electronically a copy of the Plan, the U.S. Prospectus relating to the Plan and Toro’s most recent Annual Report on Form 10-K.  I hereby agree to accept electronic delivery of copies of any future amendments or supplements to the U.S Prospectus or any future Prospectuses relating the Plan and copies of all reports, proxy statements and other communications distributed to Toro’s security holders generally by email directed to my Toro email address.

 

Note:  If you do not wish to accept the Option on the terms stated in the Nonemployee Director Option Agreement or this Nonemployee Director Stock Option Acceptance Agreement, please immediately contact Toro’s Vice President, Secretary and General Counsel to decline the grant.

 

 

	
 
    	
Signature:
    	
 
    
	
 
    	
Print   Name:
    	
 
    
	
 
    	
Date:
    	
 
    
					

 

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