Document:

exv10w02

 

Exhibit 10.2

Option No.: ________

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

Royal Gold, Inc., a Delaware corporation (the “Company”), hereby grants an option to purchase
shares of its common stock, $.01 par value, (the “Stock”) to the optionee named below. The terms
and conditions of the option are set forth in this cover sheet, in the attachment, and in the
Company’s 2004 Omnibus Long-Term Incentive Plan (the “Plan”).

Grant Date:                               , 200___

Name of Optionee:                                                                                                               

Optionee’s Social Security Number:           -          -          

Number of Shares Covered by Option:                                         

Option Price per Share: $          .         (At least 100% of Fair Market Value)

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also available upon request to the Corporate
Secretary. You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will
control in the event any provision of this Agreement should appear to be inconsistent.

	 	 	 	 	 
	Optionee:	 	

(Signature)

	 
	 	 	 	 
	Company:	 	

(Signature)

	 
	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	

Attachment

This is not a stock certificate or a negotiable instrument.

 

 

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

	 	 	 
	Nonqualified Stock Option

	 	This option is not intended to be an
incentive stock option under Section
422 of the Internal Revenue Code and
will be interpreted accordingly.
	 
	 	 
	Vesting

	 	This option is only exercisable
before it expires and then only with
respect to the vested portion of the
option. Subject to the preceding
sentence, you may exercise this
option, in whole or in part, to
purchase a whole number of vested
shares not less than 100 shares,
unless the number of shares
purchased is the total number
available for purchase under the
option, by following the procedures
set forth in the Plan and below in
this Agreement.
	 
	 	 
	

	 	Your right to purchase shares of
Stock under this option vests as to
___of the total number of shares
covered by this option, as shown on
the cover sheet, on each of the
___anniversaries of the
Grant Date, provided you then
continue in Service. The resulting
aggregate number of vested shares
will be rounded to the nearest whole
number, and you cannot vest in more
than the number of shares covered by
this option.
	 
	 	 
	

	 	Notwithstanding the foregoing
vesting rules, if you incur an
Involuntary Termination in
connection with a Corporate
Transaction, you shall be one
hundred percent (100%) vested as of
the date of such Involuntary
Termination.
	 
	 	 
	

	 	For this purpose, Involuntary
Termination in connection with a
Corporate Transaction means a
termination of your Service during
the one year period commencing with
a Corporate Transaction by reason
of:
	 
	 	 
	

	 	(a)      your involuntary discharge by
the Company for reasons other than
Cause (as defined in the Plan); or
	 
	 	 
	

	 	(b)      your voluntary resignation from
the Company following (i) a material
adverse change in your title or
responsibilities with the Company, (ii)  a material reduction in your
base salary or (iii) receipt of
notice that your principal workplace
will be relocated by more than 50
miles.
	 
	 	 
	

	 	No additional vesting shall occur
after your Service has terminated
for any reason.

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	Term

	 	Your option will expire in any event
at the close of business at Company
headquarters on the day of the 10th
anniversary of the Grant Date, as
shown on the cover sheet. Your
option will expire earlier if your
Service terminates, as described
below.
	 
	 	 
	Regular Termination

	 	If your Service terminates for any
reason, other than death, Disability
or Cause, then your option will
expire at the close of business at
Company headquarters on the
90th day after your
termination date.
	 
	 	 
	Termination for

Cause

	 	If your Service is terminated for
Cause, then you shall immediately
forfeit all rights to your option
and the option shall immediately
expire.
	 
	 	 
	Death

	 	If your Service terminates because
of your death, then your option will
expire at the close of business at
Company headquarters on the date
twelve (12) months after the date of
death. During that twelve month
period, your estate or heirs may
exercise the vested portion of your
option.
	 
	 	 
	

	 	In addition, if you die during the
90-day period described in
connection with a regular
termination (i.e., a termination of
your Service not on account of your
death, Disability or Cause), and a
vested portion of your option has
not yet been exercised, then your
option will instead expire on the
date twelve (12) months after your
termination date. In such a case,
during the period following your
death up to the date twelve (12)
months after your termination date,
your estate or heirs may exercise
the vested portion of your option.
	 
	 	 
	Disability

	 	If your Service terminates because
of your Disability, then your option
will expire at the close of business
at Company headquarters on the date
twelve (12) months after your
termination date.
	 
	 	 
	Leaves of Absence

	 	For purposes of this option, your
Service does not terminate when you
go on a bona fide employee leave of
absence that was approved by the
Company in writing, if the terms of
the leave provide for continued
Service crediting, or when continued
Service crediting is required by
applicable law. However, your
Service will be treated as
terminating 90 days after you went
on employee leave, unless your right
to return to active work is
guaranteed by law or by a contract.
Your Service terminates in any event
when the approved leave ends unless
you immediately return to active
employee work.
	 
	 	 
	

	 	The Company determines, in its sole
discretion, which leaves count for
this purpose, and when your Service
terminates for all purposes under
the Plan.
	 
	 	 
	Notice of Exercise

	 	When you wish to exercise this
option, you must notify the Company
by filing the proper “Notice of
Exercise” form at the address given
on

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	 	the form. Your notice must
specify how many shares you wish to
purchase (in a parcel of at least
100 shares generally). Your notice
must also specify how your shares of
Stock should be registered (in your
name only or in your and your
spouse’s names as joint tenants with
right of survivorship). The notice
will be effective when it is
received by the Company.
	 
	 	 
	

	 	If someone else wants to exercise
this option after your death, that
person must prove to the Company’s
satisfaction that he or she is
entitled to do so.
	 
	 	 
	Form of Payment

	 	When you submit your notice of
exercise, you must include payment
of the option price for the shares
you are purchasing. Payment may be
made in one (or a combination) of
the following forms:
	 
	 	 
	

	 	·      Cash, your personal check, a
cashier’s check, a money order, wire
transfer or another cash equivalent
acceptable to the Company.
	 
	 	 
	

	 	·      Shares of Stock which have
already been owned by you for more
than six months and which are
surrendered to the Company. The
value of the shares, determined as
of the effective date of the option
exercise, will be applied to the
option price.
	 
	 	 
	

	 	·      By delivery (on a form
prescribed by the Company) of an
irrevocable direction to a licensed
securities broker acceptable to the
Company (a “Qualified Broker”) to
sell Stock and to deliver all or
part of the sale proceeds to the
Company in payment of the aggregate
option price and any withholding
taxes (the “Net Exercise”).
	 
	 	 
	Withholding Taxes

	 	You will not be allowed to exercise
this option unless you make
acceptable arrangements to pay any
withholding or other taxes that may
be due as a result of the option
exercise or sale of Stock acquired
under this option. In the event
that the Company determines that any
federal, state, local or foreign tax
or withholding payment is required
relating to the exercise or sale of
shares arising from this grant, the
Company shall have the right to
require such payments from you, or
withhold such amounts from other
payments due to you from the Company
or any Affiliate.
	 
	 	 
	Transfer of Option

	 	During your lifetime, only you (or,
in the event of your legal
incapacity or incompetency, your
guardian or legal representative)
may exercise the option. You cannot
transfer or assign this option. For
instance, you may not sell this
option or use it as security for a
loan. If you attempt to do any of
these things, this option will
immediately become invalid. You
may, however, dispose of this option
in your will or it may be
transferred upon your death by the

4

 

	 	 	 
	

	 	laws of descent and distribution.
	 
	 	 
	

	 	Regardless of any marital property
settlement agreement, the Company is
not obligated to honor a notice of
exercise from your spouse, nor is
the Company obligated to recognize
your spouse’s interest in your
option in any other way.
	 
	 	 
	Retention Rights

	 	Neither your option nor this
Agreement give you the right to be
retained by the Company (or any
Parent, Subsidiaries or Affiliates)
in any capacity. The Company (and
any Parent, Subsidiaries or
Affiliates) reserve the right to
terminate your Service at any time
and for any reason.
	 
	 	 
	Shareholder Rights

	 	You, or your estate or heirs, have
no rights as a shareholder of the
Company until a certificate for your
option’s shares has been issued (or
an appropriate book entry has been
made). No adjustments are made for
dividends or other rights if the
applicable record date occurs before
your stock certificate is issued (or
an appropriate book entry has been
made), except as described in the
Plan.
	 
	 	 
	Forfeiture of Rights

	 	If you should take actions in
competition with the Company, the
Company shall have the right to
cause a forfeiture of your rights,
including, but not limited to, the
right to cause: (i) a forfeiture of
any outstanding option, and (ii)
with respect to the period
commencing twelve (12) months prior
to your termination of Service with
the Company and ending twelve (12)
months following such termination of
Service (A) a forfeiture of any gain
recognized by you upon the exercise
of an option or (B) a forfeiture of
any Stock acquired by you upon the
exercise of an option (but the
Company will pay you the option
price without interest).
	 
	 	 
	

	 	Unless otherwise specified in an
employment or other agreement
between the Company and you, you
take actions in competition with the
Company if you directly or
indirectly, own, manage, operate,
join or control, or participate in
the ownership, management, operation
or control of, or are a proprietor,
director, officer, stockholder,
member, partner or an employee or
agent of, or a consultant to any
business, firm, corporation,
partnership or other entity that is
in the business of acquiring or
investing in precious metal
royalties. Under the prior
sentence, ownership of less than 1%
of the securities of a public
company shall not be treated as an
action in competition with the
Company.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Stock, the number of shares
covered by this option and the
option price per share shall be
adjusted (and rounded down to the
nearest whole number) if required
pursuant to the Plan. Your option
shall be

5

 

	 	 	 
	

	 	subject to the terms of the
agreement of merger, liquidation or
reorganization in the event the
Company is subject to such corporate
activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware, other than any
conflicts or choice of law rule or
principle that might otherwise refer
construction or interpretation of
this Agreement to the substantive
law of another jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is incorporated
in this Agreement by reference.
Certain capitalized terms used in
this Agreement are defined in the
Plan, and have the meaning set forth
in the Plan.
	 
	 	 
	

	 	This Agreement and the Plan
constitute the entire understanding
between you and the Company
regarding this option. Any prior
agreements, commitments or
negotiations concerning this option
are superseded.
	 
	 	 
	Other Agreements

	 	You agree, as a condition of the
grant of this option, that in
connection with the exercise of the
option, you will execute such
document(s) as necessary to become a
party to any shareholder agreement
or voting trust as the Company may
require.
	 
	 	 
	Data Privacy

	 	In order to administer the Plan, the
Company may process personal data
about you. Such data includes but
is not limited to the information
provided in this Agreement and any
changes thereto, other appropriate
personal and financial data about
you such as home address and
business addresses and other contact
information, payroll information and
any other information that might be
deemed appropriate by the Company to
facilitate the administration of the
Plan.
	 
	 	 
	

	 	By accepting this option, you give
explicit consent to the Company to
process any such personal data. You
also give explicit consent to the
Company to transfer any such
personal data outside the country in
which you work or are employed,
including, with respect to non-U.S.
resident Optionees, to the United
States, to transferees who shall
include the Company and other
persons who are designated by the
Company to administer the Plan.
	 
	 	 
	Consent to Electronic Delivery

	 	The Company may choose to deliver
certain statutory materials relating
to the Plan in electronic form. By
accepting this option grant you
agree that the Company may deliver
the Plan prospectus and the
Company’s annual report to you in an
electronic format. If at any time
you would prefer to receive paper
copies of these documents, as you
are entitled to, the Company would
be pleased to provide copies.
Please contact ___at ___to
request paper copies of these

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	 	documents.
	 
	 	 
	Stock Ownership Requirements

	 	You are required to continue to hold
an aggregate of ___percent (___%)
of the shares of Stock acquired by
you pursuant to this Nonqualified
Stock Option grant together with all
other shares of Stock acquired by
you pursuant to any other option
grant made under the Plan (such ___%
to be determined after reducing the
shares of Stock covered by this
grant and all other option grants
made to you under the Plan by the
number shares of Stock equal in
value to the amount required to be
withheld to pay taxes in connection
with the exercise of this Option and
such other option grants) until the
number of shares of Stock owned by
you equals or exceeds
___. If the number of
shares of Stock owned by you exceeds
___, you may dispose of the
shares of Stock acquired pursuant to
this Nonqualified Stock Option grant
as long as you continue to own at
least ___shares of Stock after the
disposition.
	 
	 	 
	Market Stand-off Agreement

	 	In connection with any underwritten
public offering by the Company of
its equity securities pursuant to an
effective registration statement
filed under the Securities Act, you
agree not to sell, make any short
sale of, loan, hypothecate, pledge,
grant any option for the purchase
of, or otherwise dispose or transfer
for value or agree to engage in any
of the foregoing transactions with
respect to any shares of Stock
without the prior written consent of
the Company or its underwriters, for
such period of time after the
effective date of such registration
statement as may be requested by the
Company or the underwriters (not to
exceed 180 days in length).

By signing the cover sheet of this Agreement, you acknowledge that you have received,

read and understand the Plan and this Agreement, and agree to abide by and be bound by

their terms.

7exv10w03

 

Exhibit 10.3

Grant No.: _____

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

     Royal Gold, Inc., a Delaware corporation (the “Company”), hereby grants shares of its common
stock, $.01 par value, (the “Stock”) to the Grantee named below, subject to the restrictions and
vesting conditions set forth in the attachment. Additional terms and conditions of the grant are
set forth in this cover sheet, in the attachment and in the Company’s 2004 Omnibus Long-Term
Incentive Plan (the “Plan”).

Grant Date: [                              ], 200___

Name of Optionee:                                                                                                               

Optionee’s Social Security Number:           -          -          

Number of Shares Covered by Grant:                                         

Purchase Price per Share of Stock: Par value, paid by services previously rendered

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also available upon request to the Corporate
Secretary. You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will
control in the event any provision of this Agreement should appear to be inconsistent.

	 	 	 	 	 
	Optionee:	 	

(Signature)

	 
	 	 	 	 
	Company:	 	

(Signature)

	 
	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	

Attachment

     This is not a stock certificate or a negotiable instrument.

 

 

ROYAL GOLD, INC.

2004 OMNIBUS LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

	 	 	 
	Restricted Stock/
Nontransferability
	 	This grant is an award of restricted
Stock (“Restricted Stock”) in the
number of shares set forth on the
cover sheet. The per share purchase
price of par value has been
satisfied by your prior service to
the Company. The grant is subject
to the vesting conditions described
below. To the extent not yet
vested, your Restricted Stock may
not be transferred, assigned,
pledged or hypothecated, whether by
operation of law or otherwise, nor
may the Restricted Stock be made
subject to execution, attachment or
similar process.
	 
	 	 
	Issuance and Vesting

	 	The Company will issue your
Restricted Stock in your name as of
the Grant Date.
	 
	 	 
	

	 	Your right to the Stock under this
Restricted Stock grant vests as to
___of the total number of shares
covered by this grant, as shown on
the cover sheet, on each of the
___anniversaries of the Grant
Date (each a “Vesting Date”),
provided you then continue in
Service. If any of the Vesting
Dates should occur during a period
in which you are (i) subject to a
lock-up agreement restricting your
ability to sell shares of Stock in
the open market or (ii) restricted
from selling shares of Stock in the
open market because you are not then
eligible to sell under the Company’s
insider trading or similar plan as
then in effect (whether because a
trading window is not open or you
are otherwise restricted from
trading), the Vesting Date shall be
automatically delayed until the
first date on which you are no
longer prohibited from buying and
selling shares of Stock due to a
“trading window” restriction or due
to a lock-up agreement or insider
trading plan restriction.
	 
	 	 
	

	 	Notwithstanding the foregoing
vesting schedule, if: (i) you incur
an Involuntary Termination in
connection with a Corporate
Transaction or (ii) you incur a
termination of Service, other than
for cause, at any time after you
have provided fifteen (15) years of
Service to the Company, you shall be
one hundred percent (100%) vested in
the Restricted Stock as of the date
of such termination of Service.
	 
	 	 
	

	 	For this purpose, Involuntary
Termination in connection with a
Corporate Transaction means a
termination of your Service during
the one year period commencing with
a Corporate

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	 	Transaction by reason of:
	 
	 	 
	

	 	(a)      your involuntary discharge by
the Company for reasons other than
Cause (as defined in the Plan); or
	 
	 	 
	

	 	(b)      your voluntary resignation from
the Company following (i) a material
adverse change in your title or
responsibilities with the Company,
(ii) a material reduction in your
base salary or (iii) receipt of
notice that your principal workplace
will be relocated by more than 50
miles.
	 
	 	 
	

	 	The Compensation, Nominating and
Corporate Governance Committee has
the sole authority to determine
whether the vesting thresholds set
forth above have been achieved and
shall have the authority to make
adjustments to such thresholds for
unusual or non-recurring events.
Further, the Committee shall
determine if you have incurred an
Involuntary Termination and whether
or not such Involuntary Termination
was in connection with a Corporate
Transaction. Any such
determinations shall be made in the
sole discretion of the Committee.
	 
	 	 
	

	 	The resulting aggregate number of
vested shares will be rounded to the
nearest whole number, and you cannot
vest in more than the number of
shares covered by this grant.
	 
	 	 
	Forfeiture of Unvested Stock

	 	In the event that your Service
terminates for any reason, you will
forfeit to the Company all of the
shares of Restricted Stock subject
to this grant that have not yet
vested.
	 
	 	 
	Escrow

	 	The certificates for the Restricted
Stock shall be deposited in escrow
with the Secretary of the Company to
be held in accordance with the
provisions of this paragraph. Each
deposited certificate shall be
accompanied by a duly executed
Assignment Separate from Certificate
in the form attached hereto as
Exhibit A. The deposited
certificates shall remain in escrow
until such time or times as the
certificates are to be released or
otherwise surrendered for
cancellation as discussed below.
Upon delivery of the certificates to
the Company, you shall be issued an
instrument of deposit acknowledging
the number of shares of Restricted
Stock delivered in escrow to the
Secretary of the Company.
	 
	 	 
	

	 	All regular cash dividends on the
Restricted Stock (or other
securities at the time held in
escrow) shall be paid directly to
you and shall not be held in escrow.
However, in the event of any stock
dividend, stock split,
recapitalization or other change
affecting the Company’s outstanding
common stock as a class

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	 	effected
without receipt of consideration or
in the event of a stock split, a
stock dividend or a similar change
in the Company Stock, any new,
substituted or additional securities
or other property which is by reason
of such transaction distributed with
respect to the Restricted Stock
shall be immediately delivered to
the Secretary of the Company to be
held in escrow hereunder, but only
to the extent the Restricted Stock
is at the time subject to the escrow
requirements hereof.
	 
	 	 
	

	 	The shares of Restricted Stock held
in escrow hereunder shall be subject
to the following terms and
conditions relating to their release
from escrow or their surrender to
the Company for repurchase and
cancellation:
	 
	 	 
	

	 	·      As your interest in the
shares vests as described above, the
certificates for such vested shares
shall be released from escrow and
delivered to you, at your request,
within thirty (30) days following
each vesting date.
	 
	 	 
	

	 	·      Upon termination of your
Service, any escrowed shares in
which you are at the time vested
shall be promptly released from
escrow.
	 
	 	 
	

	 	·      Should the Company exercise
its rights to cause a forfeiture
with respect to any unvested shares
(as described below) held at the
time in escrow hereunder, then the
escrowed certificates for such
unvested shares shall be surrendered
to the Company for cancellation, and
you shall have no further rights
with respect to such shares of
Restricted Stock.
	 
	 	 
	

	 	·      Should the Company elect not
to exercise its right to cause a
forfeiture with respect to any
shares held at the time in escrow
hereunder, then the escrowed
certificates for such shares shall
be surrendered to you.
	 
	 	 
	Withholding Taxes

	 	You agree, as a condition of this
grant, that you will make acceptable
arrangements to pay any withholding
or other taxes that may be due as a
result of the vesting of Restricted
Stock acquired under this grant. In
the event that the Company
determines that any federal, state,
local or foreign tax or withholding
payment is required relating to the
vesting of shares arising from this
grant, the Company shall have the
right to require such payments from
you, or withhold such amounts from
other payments due to you from the
Company or any Affiliate.

4

 

	 	 	 
	Section 83(b)
Election

	 	Under Section 83 of the Internal
Revenue Code of 1986, as amended
(the “Code”), the difference between
the purchase price paid for the
shares of Restricted Stock and their
fair market value on the date any
forfeiture restrictions applicable
to such shares lapse will be
reportable as ordinary income at
that time. For this purpose,
“forfeiture restrictions” include
the Company’s Repurchase Right or
forfeiture as to unvested Restricted
Stock described above. You may
elect to be taxed at the time the
shares are acquired, rather than
when such shares cease to be subject
to such forfeiture restrictions, by
filing an election under Section
83(b) of the Code with the Internal
Revenue Service within thirty (30)
days after the Grant Date. You will
have to make a tax payment to the
extent the purchase price is less
than the fair market value of the
shares on the Grant Date. No tax
payment will have to be made to the
extent the purchase price is at
least equal to the fair market value
of the shares on the Grant Date.
The form for making this election is
attached as Exhibit B hereto.
Failure to make this filing within
the thirty (30) day period will
result in the recognition of
ordinary income by you (in the event
the fair market value of the shares
as of the vesting date exceeds the
purchase price) as the forfeiture
restrictions lapse.
	 
	 	 
	

	 	YOU ACKNOWLEDGE THAT IT IS YOUR SOLE
RESPONSIBILITY, AND NOT THE
COMPANY’S, TO FILE A TIMELY ELECTION
UNDER SECTION 83(b), EVEN IF YOU
REQUEST THE COMPANY OR ITS
REPRESENTATIVES TO MAKE THIS FILING
ON YOUR BEHALF. YOU ARE RELYING
SOLELY ON YOUR OWN ADVISORS WITH
RESPECT TO THE DECISION AS TO
WHETHER OR NOT TO FILE ANY 83(b) ELECTION.
	 
	 	 
	Retention Rights

	 	This Agreement does not give you the
right to be retained by the Company
(or any Parent, Subsidiaries or
Affiliates) in any capacity. The
Company (and any Parent,
Subsidiaries or Affiliates) reserves
the right to terminate your Service
at any time and for any reason.
	 
	 	 
	Shareholder Rights

	 	You have the right to vote the
Restricted Stock and to receive any
dividends declared or paid on such
stock. Any distributions you
receive as a result of any stock
split, stock dividend, combination
of shares or other similar
transaction shall be deemed to be a
part of the Restricted Stock and
subject to the same conditions and
restrictions applicable thereto.
The Company may in its sole
discretion require any dividends
paid on the Restricted Stock to be
reinvested in shares of Stock,
	 
	 	 

5

 

	 	 	 
	
	 	which the Company may in its sole
discretion deem to be a part of the
shares of Restricted Stock and
subject to the same conditions and
restrictions applicable thereto.
Except as described in the Plan, no
adjustments are made for dividends
or other rights if the applicable
record date occurs before your stock
certificate is issued.
	 
	 	 
	Forfeiture of Rights

	 	If you should take actions in
competition with the Company, the
Company shall have the right to
cause a forfeiture of your unvested
Restricted Stock, and with respect
to those shares of Restricted Stock
vesting during the period commencing
twelve (12) months prior to your
termination of Service with the
Company due to taking actions in
competition with the Company, the
right to cause a forfeiture of those
vested shares of Restricted Stock.
	 
	 	 
	
	 	Unless otherwise specified in an
employment or other agreement
between the Company and you, you
take actions in competition with the
Company if you directly or
indirectly, own, manage, operate,
join or control, or participate in
the ownership, management, operation
or control of, or are a proprietor,
director, officer, stockholder,
member, partner or an employee or
agent of, or a consultant to any
business, firm, corporation,
partnership or other entity that is
in the business of acquiring or
investing in precious metal
royalties.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Company Stock, the number of
shares covered by this grant may be
adjusted (and rounded down to the
nearest whole number) pursuant to
the Plan. Your Restricted Stock
shall be subject to the terms of the
agreement of merger, liquidation or
reorganization in the event the
Company is subject to such corporate
activity.
	 
	 	 
	Legends

	 	All certificates representing the
Restricted Stock issued in
connection with this grant shall,
where applicable, have endorsed
thereon the following legends:
	 
	 	 
	

	 	“THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER AND OPTIONS
TO PURCHASE SUCH SHARES SET FORTH IN
AN AGREEMENT BETWEEN THE COMPANY AND
THE REGISTERED HOLDER, OR HIS OR HER
PREDECESSOR IN INTEREST. A COPY OF
SUCH AGREEMENT IS ON FILE AT THE
PRINCIPAL OFFICE OF THE COMPANY AND
WILL BE FURNISHED UPON WRITTEN
REQUEST TO THE SECRETARY OF THE
COMPANY BY THE HOLDER OF RECORD OF THE

6

 

	 	 	 
	

	 	SHARES REPRESENTED BY THIS CERTIFICATE.”
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware, other than any
conflicts or choice of law rule or
principle that might otherwise refer
construction or interpretation of
this Agreement to the substantive
law of another jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is incorporated
in this Agreement by reference.
Certain capitalized terms used in
this Agreement are defined in the
Plan, and have the meaning set forth
in the Plan.
	 
	 	 
	

	 	This Agreement and the Plan
constitute the entire understanding
between you and the Company
regarding this grant of Restricted
Stock. Any prior agreements,
commitments or negotiations
concerning this grant are
superseded.
	 
	 	 
	Other Agreements

	 	You agree, as a condition of this
grant of Restricted Stock, that you
will execute such document(s) as
necessary to become a party to any
shareholder agreement or voting
trust as the Company may require.
	 
	 	 
	Holding Period

	 	You are required to hold ___percent
(___%) of the Stock (such ___% to be
determined without regard to any
shares of Restricted Stock used to
satisfy any tax withholding
obligations as a result of this
Restricted Stock grant) acquired
pursuant to this Restricted Stock
grant until the number of shares of
Restricted Stock owned by you equals
___.

     By signing the cover sheet of this Agreement, you agree to all of the terms and
conditions described above and in the Plan.

7

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