Document:

Exhibit 10.53

 

NET SMELTER RETURN ROYALTY AGREEMENT

 

THIS AGREEMENT made as of the 16th day of June, 2004.

 

BETWEEN:

 

EXPATRIATE RESOURCES LTD., having an office at Suite 701,

475 Howe Street, Vancouver, British Columbia, V6C 2B3

 

(“Expatriate”)

 

OF THE FIRST PART

 

AND:

 

ATNA RESOURCES LTD., having an office at Suite 510, 510 Burrard

Street, Vancouver, British Columbia, V6C 3A8

 

(“Atna”)

 

OF THE SECOND PART

 

WHEREAS:

 

(A)                                                                            Atna and Expatriate entered an Asset Sale Agreement made as of May 31, 2004 (the “Sale Agreement”);

 

(B)                                                                              Pursuant to the Sale Agreement Expatriate is to grant to Atna a net smelter return interest in and to production of silver and gold from the Mineral Properties described in the Sale Agreement, which properties are more particularly described in Schedule 1 hereto;

 

(C)                                                                              The Sale Agreement provides for the execution of a net smelter return royalty agreement.

 

NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the completion of the transactions contemplated by the Sale Agreement, the mutual and covenants in this Agreement and the Sale Agreement and other good and valuable consideration (the receipt and sufficiency of which are acknowledged by each of the parties), the parties agree as follows:

 

1.                                                                                     Each capitalized term used in this Agreement which is not defined herein will have the meanings ascribed thereto in the Sale Agreement.

 

2.                                                                                     Atna reserves and Expatriate hereby grants to Atna a royalty (the “Royalty”)  in perpetuity equal to a percentage of Net Smelter Returns (as hereinafter defined) for each Payment Period, as defined below, as follows:

 

(a)                                  4.0% of Net Smelter Returns when the price received in the Payment Period by Expatriate pursuant to all of its marketing or sales agreements for silver is from U.S. S5.00 to $7.50 per ounce; and

 

 

(b)                                 10% of Net Smelter Returns when the price received in the Payment Period by Expatriate pursuant to any of its marketing or sales agreements for silver is greater than U.S. $7.50 per ounce.

 

No Royalty is payable for a Payment Period if the price received in the Payment Period by Expatriate pursuant to all of its marketing or sales agreements for silver is less than U.S. $5.00 per ounce. If Expatriate is selling silver ores or concentrates or silver in any form other than refined silver, for the purposes of this section 1 it shall be deemed to receive the price for the silver contained in the ore or concentrate or other product that it is being credited with for the purpose of calculating the sale proceeds payable to it by the purchaser.

 

3.                                                                                     “Net Smelter Returns” will mean the net proceeds from silver and gold, whether as a refined metal, ore, concentrate, dore or any other form (the “Precious Metals”) produced from the Mineral Properties or from tailings or waste from the Mineral Properties. It will be based on the revenue earned by Expatriate from the sale to any mint, smelter, refinery or other purchaser of Precious Metals or proceeds received from an insurer in respect of Precious Metals contained in any ores and/or concentrates from the Mineral Properties, after deducting from such proceeds the following charges to the extent that they were not deducted by the purchaser in computing payments:

 

(a)                                 smelting and refining charges;

 

(b)                                penalties, smelter assay costs and umpire assay costs;

 

(c)                                 cost of freight and handling of ores, metals or concentrates from the Mineral Properties to any mint, smelter, refinery, or other purchaser if not sold f.o.b. the mine;

 

(d)                                marketing costs, not to exceed 2% of the net proceeds from silver and gold less the aggregate of the costs under subsections 3(a), 3(b), 3(c), 3(e) and 3(f);

 

(e)                                 costs of insurance in respect of the transportation of the Precious Metals to the smelter or other processing facility; and

 

(f)                                   customs duties, severance tax, prior existing royalties as described in Schedule 2 hereto, Ad valorem or mineral taxes or the like and export and import taxes or tariffs payable in respect of Precious Metals but not income taxes.

 

4.                                                                                     The Royalty will be calculated and paid on a quarterly basis (each quarter being a “Payment Period”)  within 45 days after the end of each calendar quarter in respect of Net Smelter Returns earned during the quarter.

 

5.                                                                                     The Royalty will be payable as follows:

 

(a)                                   each payment of Royalty will be accompanied by an unaudited statement indicating the calculation of the Royalty in reasonable detail, and Atna will receive, on or before March 31 of each calendar year, a summary statement (“Yearly Statement”)  of the calculation of the Royalty for the last completed calendar year that has been audited by a firm of chartered accountants in Canada, together with copies of such production information as will be required to adequately document the calculation of the Royalty;

 

2

 

(b)                                 Atna will have 45 days from the time of receipt of the Yearly Statement to question the accuracy thereof in writing and, failing such objection, the Yearly Statement will be deemed to be correct and unimpeachable thereafter;

 

(c)                                  if the Yearly Statement is questioned by Atna, and if such questions cannot be resolved between Atna and Expatriate, Atna will have 180 days from the time of receipt of the Yearly Statement to have such audited by an accounting firm of its choice, initially at its expense;

 

(d)                                 the audited results obtained under subsection 5(c) will be final and determinative of the calculation of the Royalty for the audited period and will be binding on the parties and any overpayment of Royalty will be deducted from future payments of Royalty and any underpayment of Royalty will be paid by Expatriate forthwith;

 

(e)                                  the costs of the audit under subsection 5(c) will be borne by Atna if the Annual Statement overstated the Royalty or understated the Royalty payable by not more than 1% and will be borne by Expatriate if such statement understated the Royalty payable by greater than 1%. If Expatriate is obligated to pay for the audit, it will forthwith reimburse Atna for the audit costs which it has paid; and

 

(f)                                    Atna will be entitled, on reasonable written notice and during normal business hours, to examine such books and records as are reasonably necessary to verify the payment of the Royalty to it from time to time, provided however, that such examination will not unreasonably interfere with or hinder Expatriate’s operations or procedures and further provided that Expatriate will not be obligated to disclose any proprietary methods or processes. Expatriate will have the right to make access to its books and records conditional on execution by the examining party of a written agreement providing that all information received will be held in confidence and used solely for the purposes of verification of the payment of the Royalty.

 

6.                                                                                     Expatriate will dispose of Precious Metals only by way of sale to arm’s length parties on commercially reasonable terms and at the best prices attainable. Any smelting, refining or further processing of Precious Metals shall be by an arm’s length third party on commercially reasonable terms.

 

7.                                                                                     The Royalty creates a direct real property interest in the Mineral Properties and the Precious Metals in favour of Atna, provided such interest shall be satisfied in respect of any particular Precious Metals by the payment to Atna of the Royalty in respect thereof. The Royalty shall continue in perpetuity, it being the intent of the parties hereto that the Royalty will constitute a covenant running with the Mineral Properties and the Precious Metals and all successions thereof. If any right, power or interest of either party pertaining to the Royalty would violate the rule against perpetuities, then such right, power or interest will terminate at the expiration of 20 years after the death of the last survivor of all the lineal descendants of Her Majesty, Queen Elizabeth II of England, living on the date of this Agreement. Atna will have the right from time to time to register or record notice of the Royalty against title to the Mineral Properties or elsewhere, and Expatriate will cooperate with all such registrations and recordings and provide its written consent or signature to any documents and do such other things from time to time as are necessary or desirable to effect all such registrations or recordings or otherwise to protect the interests of Atna hereunder.

 

8.                                                                                     The right to receive a percentage of Net Smelter Returns as and when due will not be deemed to constitute Atna the partner, agent or legal representative of Expatriate.

 

9.                                                                                     Expatriate will be entitled to:

 

3

 

(a)                                 make all operational decisions with respect to the methods and extent of mining and processing of ore, concentrate, metal and products produced from the Mineral Properties acting reasonably and in accordance with good mining and engineering practices; and

 

(b)                                make all decisions concerning temporary or long-term cessation of operations.

 

10.                                                                                Commingling of ores in the processing facilities constructed for ores from the Mineral Properties will be permitted and all ores treated in such facilities will be considered to be metallurgically similar as to recovery of metals, treatment charges and penalties charged by the refiner. Where there is commingling, the Royalty will be based solely on tonnage and grade of ores sent to the processing facilities from the Mineral Properties. Before commingling, Expatriate will ensure that the Precious Metals from the Mineral Properties and ores from other properties are measured and sampled in accordance with sound practices for metal content and grade and other appropriate parameters and the portion of total smelter payments that is attributable to Net Smelter Returns hereunder will be determined on a pro rata basis with reference to such metal content and grade.

 

11.                                                                                For the purposes of determining Net Smelter Returns, all receipts and disbursements in a currency other than Canadian will be converted into Canadian currency on the day of receipt or disbursement, as the case may be using the noon Bank of Canada rate.

 

12.                                                                                Expatriate may, but will not be under any duty to, engage in price protection (hedging) or speculative transactions such as futures contracts and commodity options in its sole discretion covering all or part of production from the Mineral Properties and, except in the case where Precious Metals are actually delivered and a sale is actually consumed under such price protection or speculative transactions, none of the revenues, costs, profits or losses from such transactions will be taken into account in calculating Net Smelter Returns or any interest therein.

 

13.                                                                                In addition to Atna’s right to inspect records under subsection 5(f), upon not less than five days’ written notice to Expatriate, Atna, or its authorized agents or representatives, may, under the direction and control of Expatriate, enter in and upon the mine and all surface and subsurface portions of the Mineral Properties for the purpose of inspecting same, all operations thereon, and all production records and data pertaining to all production activities and operations on or with respect thereto, including without limitation, records and data that are electronically maintained.

 

14.                                                                                Subject to any limitations caused by concentrate or other product sales agreements entered into by Expatriate, Atna may elect, upon written notice to Expatriate given 60 days prior to the commencement of any Payment Period, to receive its Royalty in-kind by having deposited in an account or accounts opened by Expatriate for Atna an amount of refined Precious Metals which is equivalent to the cash value of the Royalty payable, taking into account the deductions described in section 3. In determining the amount of refined Precious Metals to be deposited to any such account and the amount of the deductions under section 3 applicable in the case of any deposit, Expatriate shall value gold and silver using the London final gold fixing and the Handy and Harman Silver Price, in United States dollars, both as published by Metals Week, a publication of McGraw, Hill of New York, or such other recognized source of metal price quotations as may be agreed by Expatriate and Atna, as quoted on the Business Day preceding the date of each deposit.

 

15.                                                                                Expatriate will indemnify and save Atna and its parent and affiliated companies harmless from any loss, cost or liability including, without limitation, reasonable legal fees arising from a claim against Atna in respect of any failure by Expatriate to at all times comply with all applicable present or future federal, provincial, territorial and local laws, statutes, rules, regulations, permits, ordinances, certificates, licences and other regulatory requirements, policies and guidelines relating to Expatriate or

 

4

 

the Mineral Properties or operations thereon; provided, however, Expatriate will have the right to contest any of the same if such contest does not jeopardize the Mineral Properties or Atna’s rights thereto or under this Agreement.

 

16.                                                                                Expatriate will indemnify and save Atna harmless from any loss, cost or liability (including, without limitation, reasonably legal fees) arising from a claim against Atna in respect of:

 

(a)                                 any failure by Expatriate to timely and fully perform all abandonment, restoration, remediation and reclamation required by all governmental authorities pertaining or related to the operations or activities of Expatriate on or with respect to the Mineral Properties;

 

(b)                                Expatriate causing, suffering, or permitting any condition or activity at, on or in the vicinity of the Mineral Properties which constitutes a nuisance; or

 

(c)                                 any failure by Expatriate which results in a violation of or liability under any present or future applicable federal, territorial, provincial or local environmental laws, statutes, rules, regulations, permits, ordinances, certificates, licences and other regulatory requirements, policies or guidelines.

 

17.                                                                                Expatriate will purchase or otherwise arrange at its own expense and will keep in force at all times insurance (including, without limitation, comprehensive general public liability insurance) against claims for bodily injury or death or property damage arising out of or resulting from activities or operations on or with respect to the Mineral Properties and in respect of loss, theft or destruction of Precious Metals, in such amounts as will, in Expatriate’s reasonable opinion, adequately protect Expatriate, Atna, the Royalty, the Mineral Properties and the operations thereon from any and all claims, liabilities and damages which may arise and as will adequately protect Expatriate and Atna from loss, theft and destruction of Precious Metals.

 

18.                                                                                Any payments not made when due hereunder will bear interest at an annual rate equal to the Prime Rate plus 1% calculated and compounded monthly from the due date to the date of payment. For the purposes hereof “Prime Rate” means at any particular time the annual rate of interest announced from time to time by the Canadian Imperial Bank of Commerce, main branch, Vancouver, British Columbia as a reference rate then in effect for determining floating rates of interest on Canadian dollar loans made in Canada.

 

19.                                                                                This Agreement will be construed and governed by the laws enforced in the Province of British Columbia and the courts of such province will have exclusive jurisdiction to hear and determine all disputes arising hereunder. This section 19 will not be construed to affect the rights of a party to enforce a judgment or award outside of British Columbia, including the right to record or enforce a judgment or award in the jurisdiction in which any of the property the subject hereof is situated.

 

20.                                                                                Each of the parties hereby covenants and agrees that at any time and from time to time, upon the request of the other party it will, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be required for the better carrying out and performance of all of the terms of this Agreement.

 

21.                                                                                Any notice required or permitted to be given or delivery required to be made to any party may be effectively given or delivered if it is delivered personally or by facsimile transmission to

 

5

 

	
(a)
    	
In   the case of Atna,
    
	
 
    	
 
    
	
 
    	
#510-510   Burrard Street 
    
	
 
    	
Vancouver,   British Columbia 
    
	
 
    	
V6C   3A8
    
	
 
    	
 
    
	
 
    	
Attention:   David Watkins 
    
	
 
    	
Fax:   (604) 684-8887
    
	
 
    	
 
    
	
(b)
    	
in   the case of Expatriate,
    
	
 
    	
Suite 701   
    
	
 
    	
 
    
	
 
    	
475   Howe Street 
    
	
 
    	
Vancouver,   British Columbia 
    
	
 
    	
V6C   2B3
    
	
 
    	
 
    
	
 
    	
Attention:   Harlan Meade 
    
	
 
    	
Fax:   (604) 682-5404
    

 

or to such other address as the party entitled to or receiving such notice may notify the other party as provided for herein.

 

A notice will be deemed to have been received by the addressee on the first Business Day occurring after the date of delivery or transmission provided that such is a Business Day, and if not, on the second Business Day occurring after the date of delivery or transmission.

 

22.                                                                               This Agreement will be binding upon and enure to the benefit of the parties hereto and their respective successors and assigns. Nothing herein express or implied is intended to confer upon any person, other than the parties hereto and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

23.                                                                               This Agreement may be executed in any number of counterparts with the same effect as if all parties to this Agreement had signed the same document and all counterparts will be construed together and will constitute one and the same instrument.

 

24.                                                                               This Agreement together with the Sale Agreement constitutes the entire agreement between the parties and supersedes all prior letters of intent, agreements, representations, warranties, statements, promises, information, arrangements and understandings, whether oral or written, express or implied with respect to the subject matter of this Agreement.

 

6

 

25.                                                                              No modification or amendment to this Agreement may be made unless agreed to by the parties hereto in writing.

 

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement on the date first above written.

 

	
EXPATRIATE   RESOURCES LTD.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ [ILLEGIBLE]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ATNA   RESOURCES LTD.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ [ILLEGIBLE]
    	
 
    

 

 

7

 

SCHEDULE 1

 

MINERAL PROPERTIES

 

 

05 May 2004

 

EXPATRIATE RESOURCES LTD.

#701 - 475 Howe Street

Vancouver                                      BC  Canada

V6C-2B3

 

Dear Sir/Madam:

 

We are able to confirm the status of the following claim(s):

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS#’s
    	
 
    
	
ARCH   1 - 2
    	
 
    	
YB89663   - YB89664
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
ARCH   3 - 4
    	
 
    	
YB89665   - YB89666
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
ARCH   5 - 6
    	
 
    	
YB89667   - YB89668
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
ARCH   7 - 8
    	
 
    	
YB89669   - YB89670
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
ARCH   9 -10
    	
 
    	
YB89671   - YB89672
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
P
    
	
CAP   1
    	
 
    	
YB87468
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
FOOT   I - 10
    	
 
    	
YB45954   - YB45963
    	
 
    	
2015/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   11 - 12
    	
 
    	
YB51608   - YB51609
    	
 
    	
2016/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   13 - 20
    	
 
    	
YB45966   - YB45973
    	
 
    	
2015/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   23 - 36
    	
 
    	
YB51534   - YB51547
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   37 - 70
    	
 
    	
YB51548   - YB51581
    	
 
    	
2016/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   71 - 80
    	
 
    	
YB51582   - YB51591
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   83 - 86
    	
 
    	
YB51592   - YB51595
    	
 
    	
2016/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   87 - 94
    	
 
    	
YB51596   - YB51603
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   95 - 148
    	
 
    	
YB58651   - YB58704
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   149 -170
    	
 
    	
YB58705   - YB58726
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08,   105G09
    	
 
    
	
FOOT   171 - 174
    	
 
    	
YB58727   - YB58730
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   180
    	
 
    	
YB59982
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   181 - 188
    	
 
    	
YB59983   - YB59990
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   189 - 214
    	
 
    	
YB59991   - YB60016
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT215   - 216
    	
 
    	
YB87460   - YB87461
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
FOOT   217 - 222
    	
 
    	
YB60946   - YB60951
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
FOOT   223 - 226
    	
 
    	
YB60952   - YB60955
    	
 
    	
2013/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
FOOT   227 - 231
    	
 
    	
YB60956   - YB60960
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
FOOT   233 - 308
    	
 
    	
YB61006   - YB61081
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   309 - 332
    	
 
    	
YB61082   - YB61105
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08,   105G09
    	
 
    
	
FOOT   333 - 358
    	
 
    	
YB61106   - YB61131
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   359 - 382
    	
 
    	
YB61132   - YB61155
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08,   105G09
    	
 
    

 

Total claims selected : 677

 

	
Left   column indicator legend:
    	
 
    	
Right   column indicator legend:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
R - Indicates the claim is   on one or more pending renewal(s).
    	
 
    	
L-   Indicates the Quartz Lease.
    	
 
    	
D   - Indicates Placer Discovery
    
	
P - Indicates the claim is   pending.
    	
 
    	
F   - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
C   - Indicates Placer Codiscovery
    
	
 
    	
 
    	
P   - Indicates Partial Quartz fraction (<25 acres)
    	
 
    	
B   - Indicates Placer Fraction
    

 

1

 

05 May 2004

 

EXPATRIATE RESOURCES LTD.

#701 - 475 Howe Street

Vancouver                                      BC  Canada

V6C-2B3

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS#’s
    	
 
    
	
FOOT   383 - 390
    	
 
    	
YB61156   - YB61163
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   391 - 468
    	
 
    	
YB61164   - YB61241
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08,   105G09
    	
 
    
	
FOOT   549 - 550
    	
 
    	
YB61314   - YB61315
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
FOOT   575
    	
 
    	
YB61756
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   579 - 581
    	
 
    	
YB61760   - YB61762
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   582 - 584
    	
 
    	
YB61763   - YB61765
    	
 
    	
2010/03/20
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   585 - 586
    	
 
    	
YB61766   - YB61767
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE.RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   605 - 607
    	
 
    	
YB70737   - YB70739
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FOOT   A 11 - 12
    	
 
    	
YB71274   - YB71275
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
P
    
	
FOOT   FRA 603
    	
 
    	
YB70735
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
FYD   67 - 83
    	
 
    	
YB62248   - YB62264
    	
 
    	
2005/03/21
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
JILL   1 - 12
    	
 
    	
YB86778   - YB86789
    	
 
    	
2007/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
JILL   13 - 18
    	
 
    	
YB86790   - YB86795
    	
 
    	
2007/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
F
    
	
JILL   19 - 22
    	
 
    	
YB86796   - YB86799
    	
 
    	
2007/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
JILL   23 - 24
    	
 
    	
YB86800   - YB86801
    	
 
    	
2007/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
JILL   25 - 28
    	
 
    	
YB87470   - YB87473
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09,
    	
F
    
	
JILL   29 - 32
    	
 
    	
YB87474   - YB87477
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08   105G08
    	
 
    
	
JILL   36
    	
 
    	
YB87481
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
JILL   37 - 38
    	
 
    	
YB87482   - YB87483
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
F
    
	
JILL   39
    	
 
    	
YB87484
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
JILL   40 - 41
    	
 
    	
YB87485   - YB87486
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
F
    
	
KINK   3
    	
 
    	
YA69009
    	
 
    	
2018/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
KNOT   I - 4
    	
 
    	
YB89415   - YB89418
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
P
    
	
KNOT   5 - 6
    	
 
    	
YB89419   - YB89420
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
F
    
	
LIN1
    	
 
    	
YB87469
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
F
    
	
PAK   1 - 20
    	
 
    	
YB45974   - YB45993
    	
 
    	
2007/12/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    
	
PAK   21 - 36
    	
 
    	
YB51516   - YB51531
    	
 
    	
2006/12/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    
	
PAK   37 - 60
    	
 
    	
YB58617   - YB58640
    	
 
    	
2006/12/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    
	
PAK   63 - 64
    	
 
    	
YB58643   - YB58644
    	
 
    	
2006/12/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    

 

Total claims selected : 677

 

	
Left   column indicator legend:
    	
 
    	
Right   column indicator legend:
    	
 
    	
 
    
	
R - Indicates the claim is   on one or more pending renewal(s).
    	
 
    	
L-   indicates the Quartz Lease.
    	
 
    	
D   - Indicates Placer Discovery
    
	
P - Indicates the claim is   pending.
    	
 
    	
F   - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
C   - Indicates Placer Codiscovery
    
	
 
    	
 
    	
P   - Indicates Partial Quartz fraction (<25 acres)
    	
 
    	
B   - Indicates Placer Fraction
    

 

2

 

05 May 2004

 

EXPATRIATE RESOURCES LTD.

#701 - 475 Howe Street

Vancouver                                      BC  Canada

V6C-2B3

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS#’s
    	
 
    
	
PAK   67 - 70
    	
 
    	
YB58647   - YB58650
    	
 
    	
2006/12/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    
	
ROPE   75 - 78
    	
 
    	
YB69160   - YB69163
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
ROPE   97 -100
    	
 
    	
YB69182   - YB69185
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
ROPE   114 - 118
    	
 
    	
YB69199   - YB69203
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
ROPE   131 - 134
    	
 
    	
YB69216   - YB69219
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
ROPE   536 - 540
    	
 
    	
YB70719   - YB70723
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
ROPE   550 - 551
    	
 
    	
YB70843   - YB70844
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    
	
ROPE   552 - 553
    	
 
    	
YB70845   - YB70846
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
F
    
	
TOE   1 - 6
    	
 
    	
YB56214   - YB56219
    	
 
    	
2007/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
TOE   7
    	
 
    	
YB56220
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
TOE   8
    	
 
    	
YB56221
    	
 
    	
2007/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
TOE   9 - 10
    	
 
    	
YB56222   - YB56223
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    
	
TOE   11 - 16
    	
 
    	
YB56224   - YB56229
    	
 
    	
2007/03/31
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    

 

Total claims selected : 677

 

	
Left   column indicator legend:
    	
 
    	
Right   column indicator legend:
    	
 
    	
 
    
	
R - Indicates the claim is   on one or more pending renewal(s).
    	
 
    	
L-   Indicates the Quartz Lease.
    	
 
    	
D   - Indicates Placer Discovery
    
	
P - Indicates the claim is   pending.
    	
 
    	
F   - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
C   - Indicates Placer Codiscovery
    
	
 
    	
 
    	
P   - Indicates Partial Quartz fraction (<25 acres)
    	
 
    	
B   - Indicates Placer Fraction
    

 

3

 

	
EXPATRIATE   RESOURCES LTD. 
   #701 - 475 Howe Street
    	
 
    	
05 May 2004
    
	
 
    	
 
    	
 
    
	
Vancouver   
    	
BC   Canada 
    	
 
    	
 
    
	
V6C-2B3
    	
 
    	
 
    	
 
    

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS#’s
    	
 
    
	
TOE   17 - 36
    	
 
    	
YB59962   - YB59981 
    	
 
    	
2006/03/31   
    	
 
    	
EXPATRIATE   RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    

 

There is no provision in either the Quartz Mining Act or the Placer Mining Act for a Mining Recorder to interpret his/her records to the public. Where information regarding the status of a mineral claim is to be used for title opinions or quasi-legal purposes, we recommend that certified true copies of documents be obtained. All books of record and documents filed are open for public inspection, free of charge, during office hours. An enquirer may employ someone to search the records, or obtain abstracts of record at a cost of $1.00 for the first entry and $.10 for each additional entry.

 

If you have any questions, please do not hesitate to contact this office. 

Yours truly,

 

Patti McLeod

Mining Recorder

Watson Lake Mining District

P.O. Box 269

Watson Lake    YT Canada

Y0A-1C0

Ph:(867) 536-7366

fax: (867) 536-7842

 

Total claims selected: 677

 

	
Left column indicator   legend:
    	
 
    	
Right column indicator   legend:
    	
 
    	
 
    
	
R - Indicates the claim is   on one or more pending renewal(s).
    	
 
    	
L- Indicates the Quartz.   Lease.
    	
 
    	
D - Indicates Placer   Discovery
    
	
P - Indicates the claim is   pending.
    	
 
    	
F- Indicates Full Quartz   fraction (25+ acres)
    	
 
    	
C - Indicates Placer   Codiscovery
    
	
 
    	
 
    	
P - Indicates Partial   Quartz fraction (<25 acres)
    	
 
    	
B - Indicates Placer   Fraction
    

 

4

 

SCHEDULE 2

 

PRIOR EXISTING ROYALTIES

 

1.                                       A 0.5% net smelter return royalty payable to Equity Engineering Ltd. (“Equity”) in respect of production from the Foot 1-20, Foot 23-80, Foot 83-94 and Pak 1-36 mineral claims, as described in an agreement between Equity and Atna dated as at March 24, 1995.

 

2.                                       A 1% net smelter return royalty payable to Nordac Resources Ltd., now called Strategic Metals Corporation, (“Nordac”) in respect of production from the Kink 3 mineral claim, as described in an agreement dated January 5, 1995 between Nordac and Atna.

 

3.                                       A 0.5% net smelter return royalty payable to Uwe Schmidt (“Schmidt”) in respect of production from the Toe 1-16 mineral claims, as described in a letter dated December 8, 1994 from Schmidt to Atna.

 

 

PARTIAL ASSIGNMENT OF ROYALTY

 

THIS Agreement dated the 20th day of August, 2007 is made

 

	
BETWEEN:
    	
 

 

ATNA RESOURCES LTD.,  
   a British Columbia corporation 

(hereinafter   called “Atna”)

 
    	
OF THE FIRST PART,
    
	
 
    	
 
    	
 
    
	
AND:
    	
 

 

EQUITY ENGINEERING LTD.,   

a   British Columbia corporation 

 

(hereinafter   called “Equity”)

 
    	
OF THE SECOND PART,
    
	
 
    	
 
    	
 
    
	
AND:
    	
 

 

YUKON ZINC CORPORATION,  

a   British Columbia corporation 

 

(hereinafter   called “Yukon”)

 
    	
OF THE THIRD PART.
    

 

WHEREAS pursuant to the terms of a Settlement Agreement between Atna and Equity dated the same date as this Agreement, Atna has agreed to make a partial assignment to Equity of the Royalty payable by Yukon to Atna pursuant to the Royalty Agreement (as those terms are defined below).

 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises and the covenants and agreements hereinafter set forth and other good and valuable consideration, (the receipt and sufficiency of which is hereby acknowledged) the parties hereto agree as follows:

 

1.                                      DEFINITIONS

 

In this Agreement the following words and phrases shall have the following meanings;

 

1.1.                               “Mineral Properties” has the meaning assigned to it in the Royalty Agreement.

 

1.2.                               “Royalty” has the meaning assigned to it in the Royalty Agreement.

 

 

1.3.                              “Royalty Agreement” means the Net Smelter Return Royalty Agreement made as of June 16, 2004 between Yukon (then named Expatriate Resources Ltd.) and Atna,

 

2.                                     PARTIAL ASSIGNMENT OF ROYALTY

 

2.1.                           Atna hereby assigns, transfers and conveys to Equity a 5.55% interest, in the Royalty, retaining for itself the remaining 94.45% interest. Equity hereby accepts such assignment, transfer and conveyance.

 

2.2.                             Yukon acknowledges the foregoing assignment, transfer and conveyance and agrees that:

 

(a)                               the 5.55% interest in the Royalty held by Equity and the 94.45% interest in the Royalty held by Atna shall be independent, separate and distinct each from the other as if in the first instance they had been granted by Yukon separately to Atna and Equity, respectively;

 

(b)                              with, respect to the 94.45% interest in the Royalty held by Atna, Atna shall continue to have all of the rights and Yukon shall continue to have all of the obligations provided in the Royalty Agreement and the Royalty Agreement continues in full force and effect, mutatis mutandis; and

 

(c)                               with respect to the 5.55% interest in the Royalty held by Equity, Equity shall have the same rights and Yukon shall have all the same obligations as Atna and Yukon have respectively under the terms of the Royalty Agreement as if Equity and Yukon had in the first instanee entered into an agreement the same as the Royalty Agreement, mutatis mutandis, save and except for Equity relinquishing its right to:

 

(i)                                  take delivery of the metal in kind as referenced in Section 14 of the Royalty Agreement; and

 

(ii)                               audit the yearly statement of the Royalty as referenced in Sections 5(c), 5(d) and 5(e) of the Royalty Agreement. If however Atna should exercise its right to conduct an audit of the Royalty then Atna shall promptly provide Equity with the results of the audit and Yukon shall promptly pay Equity its share of any payment due as a result of the audit.

 

3.                                     REPRESENTATIONS AND WARRANTIES

 

3.1.                            Equity represents and warrants to Atna and Yukon that this Agreement has been duly and validly authorized, executed and delivered by Equity and constitutes a legal, valid, binding and enforceable obligation of Equity.

 

3.2.                            Atna represents and warrants to Equity and Yukon that:

 

(a)                                this Agreement has been duly and validly authorized, executed and delivered by Atna and constitutes a legal, valid, binding and enforceable obligation of Atna; and

 

 

(b)                                 Atna has not previously assigned the Royalty Agreement or any of its rights thereunder including the Royalty.

 

3.3.                            Yukon represents to Atna and Equity that:

 

(a)                               Yukon changed its name from Expatriate Resources Ltd. on December 16, 2004; and

 

(b)                              this Agreement has been duly and validly authorized, executed and delivered by Yukon and constitutes a legal, valid, binding and enforceable obligation of Yukon.

 

3.4.                            Equity acknowledges and agrees that the assignment, transfer and conveyance by Atna of an interest in the Royalty is “as is, where is” without any representation or warranty except as expressly provided in Section 3.2 and that all implied representations and warranties are hereby excluded. Without limiting the generality of the foregoing, no representation or warranty is given with respect to the validity of the Royalty Agreement; Yukon’s title to the Mineral Properties, if any; Yukon’s right or ability to mine and produce minerals from the Mineral Properties; the likelihood that minerals can or will be removed from the Mineral Properties in commercially saleable quantities; the condition of the Mineral Properties; or the existence of contaminants on the Mineral Properties or environmental or other liabilities associated with the Mineral Properties.

 

3.5.                            Yukon acknowledges Equity’s right to be paid the 0.5% net smelter returns royalty in respect of production from the Foot 1-20, Foot 23-80, Foot 83-94 and Pak 1-36 mineral claims and any mineral claims acquired by Atna or Yukon within the boundary formed by intersecting lines parallel to and two (2) kilometers from the boundaries of such claims, which royalty was created by the Exploration Agreement dated March 24, 1995 between Atna. and Equity, was previously referenced in the Option Agreement dated January 3, 1995 between Atna, Yukon, Equity and Uwe Schmidt and was assumed by Yukon from Atna pursuant to an Assumption Agreement dated June 16, 2004 between Yukon and Atna.

 

4.                                      RIGHT OF FIRST REFUSAL

 

4.1.                              Equity agrees with Yukon that it will not sell, assign, transfer, convey or otherwise dispose of its interest in the Royalty or its 0.5%  net smelter returns royalty (the “Equity Royalties”) in whole or in part to any unrelated third party unless it gives Yukon 30 days’ notice of the price and other terms it would be willing to dispose of the Equity Royalties or part of the Equity Royalties and Yukon shall be entitled, by notice in writing to Equity, within the 30 day period to acquire all or part of the Equity Royalties which Equity intends to dispose of (the “Subject Interest”) on the same terms stated in the notice. If Yukon does not elect, in writing within the said 30 day period to acquire the Subject Interest, Equity may dispose of the whole, but not less than the whole, of the Subject Interest to any person within the following 60 days at a price at or above the price stated in the notice and upon the same terms and conditions that were contained in the notice. For purposes of this Section 4.1, the consideration for the Subject Interest shall be an amount payable in Canadian or United States Dollars unless the parties hereto

 

 

otherwise agree. If Equity fails to complete the transaction within the said 60 days, the rights of Yukon under this Section 4.1 shall be deemed to be revived and any subsequent proposal to sell, assign, transfer, convey or otherwise dispose of all or part of the Equity Royalties shall again be subject to the provisions of this Section 4.1.

 

4.2.                              If Equity disposes of all or part of the Equity Royalties in whole or in part hereunder, it shall require any transferee to execute a counterpart of this Agreement and thereby to agree with Yukon to be bound by the contractual terms hereof in the same manner and to the same extent as though a party hereto in the first instance, including without limitation Section 4.1.

 

4.3.                            Nothing in this Article 4 shall prevent Equity from transferring its interest in the Equity Royalties to David Caulfield, Henry Awmack or Mark Baknes (the “Individuals”), or to entities controlled by them either individually or collectively or successor entities of Equity. The Individuals also reserve the right to transfer the Equity Royalties among themselves.

 

5.                                      CONFIDENTIALITY

 

5.1.                            This Agreement and its terms shall be kept confidential by both parties and except as required by law or regulatory authority neither party shall make any public announcements or statements concerning this Agreement without the prior approval of the others, not to be unreasonably withheld or delayed.

 

6.                                      NOTICES

 

6.1.                             Any notice or other communication to be given in connection with this Agreement shall be given in writing and shall be given by personal delivery or by facsimile addressed to the recipient as follows:

 

To Atna:

 

Atna Resources Ltd.

510 – 510 Burrard Street

Vancouver, British Columbia

V6C 3A8

 

Telecopy No: (604) 684-8887

Attention:      President

 

To Equity:

 

Equity Engineering Ltd.

700 – 700 West Pender Street

Vancouver, British Columbia

V6C 1G8

Telecopy No: (604) 688-0235

Attention:      Henry Awmack, P.Eng.

 

 

To Yukon:

 

Yukort Zinc Corporation

#701 – 475 Howe Street

Vancouver, British Columbia

V6C 2B3

 

Telecopy No: (604)68.2-5404

Attention:      President

 

or to such other address as may be designated by notice given by a party to the others. Any notice or other communication given by personal delivery or by facsimile shall be conclusively deemed to have been given the day of actual delivery if delivered during normal business hours or if delivered after normal business hours then on the next following business day.

 

7.                                    GENERAL

 

7.1.                              This Agreement expresses the entire agreement among the parties with respect to the subject matter hereof; provided that, as between Atna and Equity, the provisions of the Settlement Agreement referred to in the Recital do not merge in this Agreement and survive the execution of tiiis Agreement and continue in full force and effect

 

7.2.                              This Agreement shall be governed by and construed in accordance with the laws of British Columbia and each party hereby irrevocably submits to the jurisdiction of the courts in British Columbia.

 

7.3.                            This Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective successors and assigns,

 

IN WITNESS WHEREOF each of the parties hereto has hereunto executed this Agreement as of the date and year first above written.

 

	
ATNA   RESOURCES LTD.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per
    	
/s/   [ILLEGIBLE]
    	
 
    	
c/s
    
	
Title
    	
PRESIDENT/CEO
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EQUITY ENGINEERING LTD.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Per
    	
/s/   [ILLEGIBLE]
    	
 
    	
c/s
    
	
Title
    	
Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
YUKON ZINC CORPORATION
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Per
    	
/s/   [ILLEGIBLE]
    	
 
    	
c/s
    
	
Title
    	
 
    	
 
    	
 
    

 

 

NET SMELTER RETURN ROYALTY AGREEMENT

 

THIS AGREEMENT made as of the 16th day of June, 2004.

 

BETWEEN:

 

EXPATRIATE RESOURCES LTD., having an office at Suite 701,

475 Howe Street, Vancouver, British Columbia, V6C 2B3

 

(“Expatriate”)

 

OF THE FIRST PART

 

AND:

 

ATNA RESOURCES LTD., having an office at Suite 510, 510 Burrard

Street, Vancouver, British Columbia, V6C 3A8

 

(“Atna”)

 

OF THE SECOND PART

 

WHEREAS:

 

(A)                          Atna and Expatriate entered an Asset Sale Agreement made as of May 31, 2004 (the “Sale Agreement”);

 

(B)                          Pursuant to the Sale Agreement Expatriate is to grant to Atna a net smelter return interest in and to production of silver and gold from the Mineral Properties described in the Sale Agreement, which properties are more particularly described in Schedule 1 hereto;

 

(C)                          The Sale Agreement provides for the execution of a net smelter return royalty agreement.

 

NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the completion of the transactions contemplated by the Sale Agreement, the mutual and covenants in this Agreement and the Sale Agreement and other good and valuable consideration (the receipt and sufficiency of which are acknowledged by each of the parties), the parties agree as follows:

 

1.                             Each capitalized term used in this Agreement which is not defined herein will have the meanings ascribed thereto in the Sale Agreement.

 

2.                             Atna reserves and Expatriate hereby grants to Atna a royalty (the “Royalty”) in perpetuity equal to a percentage of Net Smelter Returns (as hereinafter defined) for each Payment Period, as defined below, as follows:

 

(a)           4.0% of Net Smelter Returns when the price received in the Payment Period by Expatriate pursuant to all of its marketing or sales agreements for silver is from U.S. $5.00 to $7.50 per ounce; and

 

 

(b)           10% of Net Smelter Returns when the price received in the Payment Period by Expatriate pursuant to any of its marketing or sales agreements for silver is greater than U.S. $7.50 per ounce.

 

No Royalty is payable for a Payment Period if the price received in the Payment Period by Expatriate pursuant to all of its marketing or sales agreements for silver is less than U.S. $5.00 per ounce. If Expatriate is selling silver ores or concentrates or silver in any form other than refined silver, for the purposes of this section 1 it shall be deemed to receive the price for the silver contained in the ore or concentrate or other product that it is being credited with for the purpose of calculating the sale proceeds payable to it by the purchaser.

 

3.                             “Net Smelter Returns” will mean the net proceeds from silver and gold, whether as a refined metal, ore, concentrate, dore or any other form (the “Precious Metals”) produced from the Mineral Properties or from tailings or waste from the Mineral Properties. It will be based on the revenue earned by Expatriate from the sale to any mint, smelter, refinery or other purchaser of Precious Metals or proceeds received from an insurer in respect of Precious Metals contained in any ores and/or concentrates from the Mineral Properties, after deducting from such proceeds the following charges to the extent that they were not deducted by the purchaser in computing payments:

 

(a)           smelting and refining charges;

 

(b)           penalties, smelter assay costs and umpire assay costs;

 

(c)           cost of freight and handling of ores, metals or concentrates from the Mineral Properties to any mint, smelter, refinery, or other purchaser if not sold f.o.b. the mine;

 

(d)           marketing costs, not to exceed 2% of the net proceeds from silver and gold less the aggregate of the costs under subsections 3(a), 3(b), 3(c), 3(e) and 3(f);

 

(e)           costs of insurance in respect of the transportation of the Precious Metals to the smelter or other processing facility; and

 

(f)            customs duties, severance tax, prior existing royalties as described in Schedule 2 hereto, Ad valorem or mineral taxes or the like and export and import taxes or tariffs payable in respect of Precious Metals but not income taxes.

 

4.                             The Royalty will be calculated and paid on a quarterly basis (each quarter being a “Payment Period”)  within 45 days after the end of each calendar quarter in respect of Net Smelter Returns earned during the quarter.

 

5.                             The Royalty will be payable as follows:

 

(a)           each payment of Royalty will be accompanied by an unaudited statement indicating the calculation of the Royalty in reasonable detail, and Atna will receive, on or before March 31 of each calendar year, a summary statement (“Yearly Statement”) of the calculation of the Royalty for the last completed calendar year that has been audited by a firm of chartered accountants in Canada, together with copies of such production information as will be required to adequately document the calculation of the Royalty;

 

2

 

(b)           Atna will have 45 days from the time of receipt of the Yearly Statement to question the accuracy thereof in writing and, failing such objection, the Yearly Statement will be deemed to be correct and unimpeachable thereafter,

 

(c)           if the Yearly Statement is questioned by Atna, and if such questions cannot be resolved between Atna and Expatriate, Atna will have 180 days from the time of receipt of the Yearly Statement to have such audited by an accounting firm of its choice, initially at its expense;

 

(d)           the audited results obtained under subsection 5(c) will be final and determinative of the calculation of the Royalty for the audited period and will be binding on the parties and any overpayment of Royalty will be deducted from future payments of Royalty and any underpayment of Royalty will be paid by Expatriate forthwith;

 

(e)           the costs of the audit under subsection 5(c) will he borne by Atna if the Annual Statement overstated the Royalty or understated the Royalty payable by not more than 1% and will be borne by Expatriate if such statement understated the Royalty payable by greater than 1%. If Expatriate is obligated to pay for the audit, it will forthwith reimburse Atna for the audit costs which it has paid; and

 

(f)            Atna will be entitled, on reasonable written notice and during normal business hours, to examine such books and records as are reasonably necessary to verify the payment of the Royalty to it from time to time, provided however, that such examination will not unreasonably interfere with or hinder Expatriate’s operations or procedures and further provided that Expatriate will not be obligated to disclose any proprietary methods or processes. Expatriate will have the right to make access to its books and records conditional on execution by the examining party of a written agreement providing that all information received will be held in confidence and used solely for the purposes of verification of the payment of the Royalty.

 

6.                             Expatriate will dispose of Precious Metals only by way of sale to arm’s length parties on commercially reasonable terms and at the best prices attainable. Any smelting, refining or further processing of Precious Metals shall be by an arm’s length third party on commercially reasonable terms.

 

7.                             The Royalty creates a direct real property interest in the Mineral Properties and the Precious Metals in favour of Atna, provided such interest shall be satisfied in respect of any particular Precious Metals by the payment to Atna of the Royalty in respect thereof. The Royalty shall continue in perpetuity, it being the intent of the parties hereto that the Royalty will constitute a covenant running with the Mineral Properties and the Precious Metals and all successions thereof. If any right, power or interest of either party pertaining to the Royalty would violate the rule against perpetuities, then such right, power or interest will terminate at the expiration of 20 years after the death of the last survivor of all the lineal descendants of Her Majesty, Queen Elizabeth II of England, living on the date of this Agreement. Atna will have the right from time to time to register or record notice of the Royalty against title to the Mineral Properties or elsewhere, and Expatriate will cooperate with all such registrations and recordings and provide its written consent or signature to any documents and do such other things from time to time as are necessary or desirable to effect all such registrations or recordings or otherwise to protect the interests of Atna hereunder.

 

8.                             The right to receive a percentage of Net Smelter Returns as and when due will not be deemed to constitute Atna the partner, agent or legal representative of Expatriate.

 

9.                             Expatriate will be entitled to:

 

3

 

(a)           make all operational decisions with respect to the methods and extent of mining and processing of ore, concentrate, metal and products produced from the Mineral Properties acting reasonably and in accordance with good mining and engineering practices; and

 

(b)           make all decisions concerning temporary or long-term cessation of operations.

 

10.                           Commingling of ores in the processing facilities constructed for ores from the Mineral Properties will be permitted and all ores treated in such facilities will be considered to be metallurgically similar as to recovery of metals, treatment charges and penalties charged by the refiner. Where there is commingling, the Royalty will be based solely on tonnage and grade of ores sent to the processing facilities from the Mineral Properties. Before commingling, Expatriate will ensure that the Precious Metals from the Mineral Properties and ores from other properties are measured and sampled in accordance with sound practices for metal content and grade and other appropriate parameters and the portion of total smelter payments that is attributable to Net Smelter Returns hereunder will be determined on a pro rata basis with reference to such metal content and grade.

 

11.                           For the purposes of determining Net Smelter Returns, all receipts and disbursements in a currency other than Canadian will be converted into Canadian currency on the day of receipt or disbursement, as the case may be using the noon Bank of Canada rate.

 

12.                           Expatriate may, but will not be under any duty to, engage in price protection (hedging) or speculative transactions such as futures contracts and commodity options in its sole discretion covering all or part of production from the Mineral Properties and, except in the case where Precious Metals are actually delivered and a sale is actually consumed under such price protection or speculative transactions, none of the revenues, costs, profits or losses from such transactions will be taken into account in calculating Net Smelter Returns or any interest therein.

 

13.                           In addition to Atna’s right to inspect records under subsection 5(f), upon not less than five days’ written notice to Expatriate, Atna, or its authorized agents or representatives, may, under the direction and control of Expatriate, enter in and upon the mine and all surface and subsurface portions of the Mineral Properties for the purpose of inspecting same, all operations thereon, and all production records and data pertaining to all production activities and operations on or with respect thereto, including without limitation, records and data that are electronically maintained.

 

14.                           Subject to any limitations caused by concentrate or other product sales agreements entered into by Expatriate, Atna may elect, upon written notice to Expatriate given 60 days prior to the commencement of any Payment Period, to receive its Royalty in-kind by having deposited in an account or accounts opened by Expatriate for Atna an amount of refined Precious Metals which is equivalent to the cash value of the Royalty payable, taking into account the deductions described in section 3. In determining the amount of refined Precious Metals to be deposited to any such account and the amount of the deductions under section 3 applicable in the case of any deposit, Expatriate shall value gold and silver using the London final gold fixing and the Handy and Harman Silver Price, in United States dollars, both as published by Metals Week, a publication of McGraw, Hill of New York, or such other recognized source of metal price quotations as may be agreed by Expatriate and Atna, as quoted on the Business Day preceding the date of each deposit.

 

15.                           Expatriate will indemnify and save Atna and its parent and affiliated companies harmless from any loss, cost or liability including, without limitation, reasonable legal fees arising from a claim against Atna in respect of any failure by Expatriate to at all times comply with all applicable present or future federal, provincial, territorial and local laws, statutes, rules, regulations, permits, ordinances, certificates, licences and other regulatory requirements, policies and guidelines relating to Expatriate or

 

4

 

the Mineral Properties or operations thereon; provided, however, Expatriate will have the right to contest any of the same if such contest does not jeopardize the Mineral Properties or Atna’s rights thereto or under this Agreement.

 

16.                           Expatriate will indemnify and save Atna harmless from any loss, cost or liability
 (including, without limitation, reasonably legal fees) arising from a claim against Atna in respect of:

 

(a)           any failure by Expatriate to timely and fully perform all abandonment, restoration, remediation and reclamation required by all governmental authorities pertaining or related to the operations or activities of Expatriate on or with respect to the Mineral Properties;

 

(b)           Expatriate causing, suffering, or permitting any condition or activity at, on or in the vicinity of the Mineral Properties which constitutes a nuisance; or

 

(c)           any failure by Expatriate which results in a violation of or liability under any present or future applicable federal, territorial, provincial or local environmental laws, statutes, rules, regulations, permits, ordinances, certificates, licences and other regulatory requirements, policies or guidelines.

 

17.                           Expatriate will purchase or otherwise arrange at its own expense and will keep in force at all times insurance (including, without limitation, comprehensive general public liability insurance) against claims for bodily injury or death or property damage arising out of or resulting from activities or operations on or with respect to the Mineral Properties and in respect of loss, theft or destruction of Precious Metals, in such amounts as will, in Expatriate’s reasonable opinion, adequately protect Expatriate, Atna, the Royalty, the Mineral Properties and the operations thereon from any and all claims, liabilities and damages which may arise and as will adequately protect Expatriate and Atna from loss, theft and destruction of Precious Metals.

 

18.                           Any payments not made when due hereunder will bear interest at an annual rate equal to the Prime Rate plus 1% calculated and compounded monthly from the due date to the date of payment. For the purposes hereof “Prime Rate” means at any particular time the annual rate of interest announced from time to time by the Canadian Imperial Bank of Commerce, main branch, Vancouver, British Columbia as a reference rate then in effect for determining floating rates of interest on Canadian dollar loans made in Canada.

 

19.                           This Agreement will be construed and governed by the laws enforced in the Province of British Columbia and the courts of such province will have exclusive jurisdiction to hear and determine all disputes arising hereunder. This section 19 will not be construed to affect the rights of a party to enforce a judgment or award outside of British Columbia, including the right to record or enforce a judgment or award in the jurisdiction in which any of the property the subject hereof is situated.

 

20.                           Each of the parties hereby covenants and agrees that at any time and from time to time, upon the request of the other party it will, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be required for the better carrying out and performance of all of the terms of this Agreement.

 

21.                           Any notice required or permitted to be given or delivery required to be made to any party may be effectively given or delivered if it is delivered personally or by facsimile transmission to

 

5

 

(a)           In the case of Atna,

 

#510 - 510 Burrard Street 

Vancouver, British Columbia 

V6C 3A8

 

Attention: David Watkins 

Fax: (604) 684-8887

 

(b)           in the case of Expatriate,

 

Suite 701

475 Howe Street

Vancouver, British Columbia

V6C 2B3

 

Attention: Harlan Meade 

Fax: (604) 682-5404

 

or to such other address as the party entitled to or receiving such notice may notify the other party as provided for herein.

 

A notice will be deemed to have been received by the addressee on the first Business Day occurring after the date of delivery or transmission provided that such is a Business Day, and if not, on the second Business Day occurring after the date of delivery or transmission.

 

22.                           This Agreement will be binding upon and enure to the benefit of the parties hereto and their respective successors and assigns. Nothing herein express or implied is intended to confer upon any person, other than the parties hereto and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

23.                           This Agreement may be executed in any number of counterparts with the same effect as if all parties to this Agreement had signed the same document and all counterparts will be construed together and will constitute one and the same instrument.

 

24.                           This Agreement together with the Sale Agreement constitutes the entire agreement between the parties and supersedes all prior letters of intent, agreements, representations, warranties, statements, promises, information, arrangements and understandings, whether oral or written, express or implied with respect to the subject matter of this Agreement.

 

6

 

25.                           No modification or amendment to this Agreement may be made unless agreed to by the parties hereto in writing.

 

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement on the date first above written.

 

	
EXPATRIATE RESOURCES LTD.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	

    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
ATNA RESOURCES LTD.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	

    	
 
    

 

7

 

 

SCHEDULE 1 

 

MINERAL PROPERTIES

 

 

 

	
EXPATRIATE   RESOURCES LTD. 
   #701 - 475 Howe Street
    	
 
    	
05 May 2004
    
	
 
    	
 
    	
 
    
	
Vancouver   
    	
BC   Canada 
    	
 
    	
 
    
	
V6C-2B3
    	
 
    	
 
    	
 
    

 

Dear Sir/Madam:

 

We are able to confirm the status of the following claim(s):

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry   Date
    	
 
    	
Registered   Owner
    	
 
    	
% Owned
    	
 
    	
NIS #’s
    	
 
    	
 
    
	
ARCH 1 - 2
    	
 
    	
YB89663 - YB89664
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
ARCH 3 - 4
    	
 
    	
YB89665 - YB89666
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
ARCH 5 - 6
    	
 
    	
YB89667 - YB89668
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
ARCH 7 - 8
    	
 
    	
YB89669 - YB89670
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
ARCH 9 - 10
    	
 
    	
YB89671 - YB89672
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
P
    
	
CAP 1
    	
 
    	
YB87468
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 1 - 10
    	
 
    	
YB45954 - YB45963
    	
 
    	
2015/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 11 - I2
    	
 
    	
YB51608 - YB51609
    	
 
    	
2016/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 13 - 20
    	
 
    	
YB45966 - YB45973
    	
 
    	
2015/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 23 - 36
    	
 
    	
YB51534 - YB51547
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
J FOOT 37 - 70
    	
 
    	
YB51548 - YB51581
    	
 
    	
2016/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 71 - 80
    	
 
    	
YB51582 - YB51591
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 83 - 86
    	
 
    	
YB51592 - YB51595
    	
 
    	
2016/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 87 - 94
    	
 
    	
YB51596 - YB51603
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 95 - 148
    	
 
    	
YB58651 - YB58704
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 149 - 170
    	
 
    	
YB58705 - YB58726
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08,
   105G09
    	
 
    	
 
    
	
FOOT 171 - 174
    	
 
    	
YB58727 - YB58730
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 180
    	
 
    	
YB59982
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 181 - 188
    	
 
    	
YB59983 - YB59990
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 189 - 214
    	
 
    	
YB59991 - YB60016
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 215 - 216
    	
 
    	
YB87460 - YB87461
    	
 
    	
2010/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 217 - 222
    	
 
    	
YB60946 - YB60951
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 223 - 226
    	
 
    	
YB60952 - YB60955
    	
 
    	
2013/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 227 - 231
    	
 
    	
YB60956 - YB60960
    	
 
    	
2012/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 233 - 308
    	
 
    	
YB61006 - YB61081
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 309 - 332
    	
 
    	
YB61082 - YB61105
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08,
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
105G09
    	
 
    	
 
    
	
FOOT 333 - 358
    	
 
    	
YB6I106 - YB61131
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 359 - 382
    	
 
    	
YB61132 - YB6I155
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08,
   105G09
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Total claims   selected: 677
    

 

	
Left column indicator legend:
    	
 
    	
Right column indicator legend:
    	
 
    	
 
    
	
R - Indicates the claim is on one or more pending   renewat(s).
    	
 
    	
L- Indicates the Quartz. Lease.
    	
 
    	
D - Indicates Placer Discovery
    
	
P - Indicates the claim is pending.
    	
 
    	
F - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
C - Indicates Placer Codiscovery
    
	
 
    	
 
    	
P - Indicates Partial Quartz fraction (<25   acres)
    	
 
    	
B - Indicates Placer Fraction
    

 

1

 

	
EXPATRIATE   RESOURCES LTD.

#701   - 475 Howe Street

 
    	
05 May 2004
    
	
Vancouver                          BC Canada 

V6C-2B3
    	
 
    

 

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS #’s
    	
 
    	
 
    
	
FOOT   383 - 390
    	
 
    	
YB61156 - YB61163
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT   391 - 468
    	
 
    	
YB61164 - YB61241
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08,
   105G09
    	
 
    	
 
    
	
FOOT   549 - 550
    	
 
    	
YB61314 - YB61315
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT   575
    	
 
    	
YB61756
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT   579 - 581
    	
 
    	
YB61760 - YB61762
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT   582 - 584
    	
 
    	
YB61763 - YB61765
    	
 
    	
2010/03/20
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT   585 - 586
    	
 
    	
YB61766 - YB61767
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT   605 - 607
    	
 
    	
YB70737 - YB70739
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT   A 11 - 12
    	
 
    	
YB71274 - YB71275
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
P
    
	
FOOT   FRA 603
    	
 
    	
YB70735
    	
 
    	
2010/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FYD 67 - 83
    	
 
    	
YB62248 - YB62264
    	
 
    	
2005/03/21
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 1 - 12
    	
 
    	
YB86778 - YB86789
    	
 
    	
2007/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 13 - 18
    	
 
    	
YB86790 - YB86795
    	
 
    	
2007/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
F
    
	
JILL 19 - 22
    	
 
    	
YB86796 - YB86799
    	
 
    	
2007/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 23 - 24
    	
 
    	
YB86800 - YB86801
    	
 
    	
2007/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
JILL 25 - 28
    	
 
    	
YB87470 - YB87473
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09,
   105G08
    	
 
    	
F
    
	
JILL 29 - 32
    	
 
    	
YB87474 - YB87477
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
JILL 36
    	
 
    	
YB87481
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 37 - 38
    	
 
    	
YB87482 - YB87483
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
F
    
	
JILL 39
    	
 
    	
YB87484
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 40 - 41
    	
 
    	
YB87485 - YB87486
    	
 
    	
2006/02/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
F
    
	
KINK 3
    	
 
    	
YA69009
    	
 
    	
2018/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
KNOT I - 4
    	
 
    	
YB89415 - YB89418
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
P
    
	
KNOT 5 - 6
    	
 
    	
YB89419 - YB89420
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
F
    
	
LIN 1
    	
 
    	
YB87469
    	
 
    	
2006/03/07
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
PAK 1 - 20
    	
 
    	
YB45974 - YB45993
    	
 
    	
2007/12/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
PAK 21 - 36
    	
 
    	
YB51516 - YB51531
    	
 
    	
2006/12/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
PAK 37 - 60
    	
 
    	
YB58617 - YB58640
    	
 
    	
2006/12/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
PAK 63 - 64
    	
 
    	
YB58643 - YB58644
    	
 
    	
2006/12/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Total claims selected:   677
    

 

	
Left   column indicator legend:
    	
 
    	
Right   column indicator legend:
    	
 
    	
 
    
	
R - Indicates the claim is on one or more pending   renewal(s),
    	
 
    	
L- Indicates the Quartz Lease.
    	
 
    	
D   - Indicates Placer Discovery
    
	
P - Indicates the claim is pending.
    	
 
    	
F - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
C   - Indicates Placer Codiscovery
    
	
 
    	
 
    	
P - Indicates Partial Quartz fraction (<25   acres)
    	
 
    	
B   - Indicates Placer Fraction
    

 

2

 

	
EXPATRIATE   RESOURCES LTD. 

#701-475   Howe Street

 
    	
 
    	
05 May 2004
    
	
Vancouver                          BC  Canada

V6C-2B3
    	
 
    	
 
    

 

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS #’s
    	
 
    	
 
    
	
PAK 67 - 70
    	
 
    	
YB58647 - YB58650
    	
 
    	
2006/12/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
ROPE 75 - 78
    	
 
    	
YB69160 - YB69163
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
ROPE 97 - 100
    	
 
    	
YB69182 - YB69185
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
ROPE 114 - 118
    	
 
    	
YB69199 - YB69203
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
ROPE 131 - 134
    	
 
    	
YB69216 - YB69219
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
ROPE 536 - 540
    	
 
    	
YB70719 - YB70723
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
ROPE 550 - 551
    	
 
    	
YB70843 - YB70844
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
ROPE 552 - 553
    	
 
    	
YB70845 - YB70846
    	
 
    	
2005/04/06
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
F
    
	
TOE 1 - 6
    	
 
    	
YB56214 - YB56219
    	
 
    	
2007/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
TOE 7
    	
 
    	
YB56220
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
TOE 8
    	
 
    	
YB56221
    	
 
    	
2007/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
TOE 9 - 10
    	
 
    	
YB56222 - YB56223
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
TOE 11 - 16
    	
 
    	
YB56224 - YB56229
    	
 
    	
2007/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Total claims   selected : 677
    

 

	
Left   column indicator legend:
    	
 
    	
Right   column indicator legend:
    	
 
    	
 
    
	
R - Indicates the claim is on one or more pending   renewal(s).
    	
 
    	
L- Indicates the Quartz Lease.
    	
 
    	
D   - Indicates Placer Discovery
    
	
P - Indicates the claim is pending.
    	
 
    	
F - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
C   - Indicates Placer Codiscovery
    
	
 
    	
 
    	
P - Indicates Partial Quartz fraction (<25 acres)
    	
 
    	
B   - Indicates Placer Fraction
    

 

3

 

	
EXPATRIATE   RESOURCES LTD.

 #701 - 475 Howe Street

 
    	
05 May 2004
    
	
Vancouver                          BC Canada 

V6C-2B3
    	
 
    

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS #’s
    	
 
    	
 
    
	
TOE 17-36
    	
 
    	
YB59962 - YB59981
    	
 
    	
2006/03/31
    	
 
    	
EXPATRIATE RESOURCES   LTD.
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    

 

There is no provision in either the Quartz Mining Act or the Placer Mining Act for a Mining Recorder to interpret his/her records to the public. Where information regarding the status of a mineral claim is to be used for title opinions or quasi-legal purposes, we recommend that certified true copies of documents be obtained. All books of record and documents filed are open for public inspection, free of charge, during office hours. An enquirer may employ someone to search the records, or obtain abstracts of record at a cost of $1.00 for the first entry and $.10 for each additional entry.

 

If you have any questions, please do not hesitate to contact this office.

Yours truly,

 

 

Patti McLeod

Mining Recorder

Watson Lake Mining District

P.O. Box 269

Watson Lake YT Canada

Y0A-IC0

Ph:(867) 536-7366

fax: (867) 536-7842

 

	
 
    	
 
    	
 
    	
 
    	
Total claims selected: 677
    
	
Left column indicator legend:
    	
 
    	
Right column indicator legend:
    	
 
    	
 
    
	
R - Indicates the claim   is on one or more pending renewal(s).
    	
 
    	
L   - Indicates   the Quartz Lease.
    	
 
    	
D - Indicates Placer Discovery
    
	
P - Indicates the claim   is pending.
    	
 
    	
F - Indicates Full   Quartz fraction (25+ acres)
    	
 
    	
C - Indicates Placer Codiscovery
    
	
 
    	
 
    	
P - Indicates Partial   Quartz fraction (<25 acres)
    	
 
    	
B - Indicates Placer Fraction
    

 

4

 

SCHEDULE 2

 

PRIOR EXISTING ROYALTIES

 

1.                                     A 0.5% net smelter return royalty payable to Equity Engineering Ltd. (“Equity”) in respect of production from the Foot 1-20, Foot 23-80, Foot 83-94 and Pak 1-36 mineral claims, as described in an agreement between Equity and Atna dated as at March 24, 1995.

 

2.                                     A 1% net smelter return royalty payable to Nordac Resources Ltd., now called Strategic Metals Corporation, (“Nordac”) in respect of production from the Kink 3 mineral claim, as described in an agreement dated January 5,1995 between Nordac and Atna.

 

3.                                     A 0.5% net smelter return royalty payable to Uwe Schmidt (“Schmidt”) in respect of production from the Toe 1-16 mineral claims, as described in a letter dated December 8, 1994 from Schmidt to Atna.

 

9

 

	

    	
Claim Status Report
    	
18 October 2007
    

 

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS #’s
    	
 
    	
 
    
	
ARCH 1 - 2
    	
 
    	
YB89663  -   YB89664
    	
 
    	
2022/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
ARCH 3 - 4
    	
 
    	
YB89665  -   YB89666
    	
 
    	
2022/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
ARCH 5 - 6
    	
 
    	
YB89667  -   YB89668
    	
 
    	
2022/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
ARCH 7 - 8
    	
 
    	
YB89669  -   YB89670
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
ARCH 9 - 10
    	
 
    	
YB89671 -  YB89672
    	
 
    	
2022/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
P
    
	
CAP 1
    	
 
    	
YB87468
    	
 
    	
2008/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 1 - 10
    	
 
    	
YB45954 -  YB45963
    	
 
    	
2027/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 11 - 12
    	
 
    	
YB51608 -  YB51609
    	
 
    	
2028/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 13 - 20
    	
 
    	
YB45966 -  YB45973
    	
 
    	
2027/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 23 - 36
    	
 
    	
YB51534 - YB51547
    	
 
    	
2010/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 37 - 68
    	
 
    	
YB51548 - YB51579
    	
 
    	
2028/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 69 - 70
    	
 
    	
YB51580  -   YB51581
    	
 
    	
2024/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 71 - 80
    	
 
    	
YB51582 -  YB51591
    	
 
    	
2016/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 83 - 86
    	
 
    	
YB51592 -  YB51595
    	
 
    	
2028/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 87 - 94
    	
 
    	
YB51596 -  YB51603
    	
 
    	
2016/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 95 - 120
    	
 
    	
YB58651 -  YB58676
    	
 
    	
2018/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 121 -130
    	
 
    	
YB58677 -  YB58686
    	
 
    	
2010/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 131 - 132
    	
 
    	
YB58687 -  YB58688
    	
 
    	
2022/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 133 - 138
    	
 
    	
YB58689 -  YB58694
    	
 
    	
2018/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 139 - 148
    	
 
    	
YB58695 -  YB58704
    	
 
    	
2010/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 149 - 170
    	
 
    	
YB58705 -  YB58726
    	
 
    	
2008/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08, 105G09
    	
 
    	
 
    
	
FOOT 171 - 174
    	
 
    	
YB58727 -  YB58730
    	
 
    	
2018/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 180
    	
 
    	
YB59982
    	
 
    	
2022/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 181 - 188
    	
 
    	
YB59983 - YB59990
    	
 
    	
2024/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 189 - 214
    	
 
    	
YB59991  -   YB60016
    	
 
    	
2008/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 215 - 216
    	
 
    	
YB87460 -  YB87461
    	
 
    	
2022/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 217 - 222
    	
 
    	
YB60946 - YB60951
    	
 
    	
2024/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 223 - 226
    	
 
    	
YB60952 - YB60955
    	
 
    	
2025/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 227 - 231
    	
 
    	
YB60956 - YB60960
    	
 
    	
2024/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 233 - 258
    	
 
    	
YB61006 -  YB61031
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 259 - 264
    	
 
    	
YB61032 -  YB61037
    	
 
    	
2014/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 265 - 280
    	
 
    	
YB61038 -  YB61053
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 281 - 285
    	
 
    	
YB61054 -  YB61058
    	
 
    	
2014/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 286
    	
 
    	
YB61059
    	
 
    	
2010/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 287 - 297
    	
 
    	
YB61060 -  YB61070
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 298
    	
 
    	
YB61071
    	
 
    	
2014/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 299 - 308
    	
 
    	
YB61072 -  YB61081
    	
 
    	
2010/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 309 - 332
    	
 
    	
YB61082 -  YB61105
    	
 
    	
2008/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08,
   105G09
    	
 
    	
 
    

 

Total claims selected : 628

 

	
Left   column indicator legend:
    	
 
    	
Right   column Indicator legend:
    	
 
    	
 
    
	
R - Indicates the claim is on one or more pending   renewal(s).
    	
 
    	
L - Indicates the Quartz Lease.
    	
 
    	
D   - Indicates Placer Discovery
    
	
P - Indicates the claim is pending.
    	
 
    	
F - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
C   - Indicates Placer Codiscovcry
    
	
 
    	
 
    	
P - Indicates Partial Quartz fraction (<25   acres)
    	
 
    	
B   - Indicates Placer Fraction
    

 

1

 

	
 
    	
Claim Status Report
    	
18 October 2007
    

 

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS #’s
    	
 
    	
 
    
	
FOOT 333 - 358
    	
 
    	
YB61106 - YB61131
    	
 
    	
2010/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 359 - 382
    	
 
    	
YB61132 - YB61155
    	
 
    	
2008/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08,
   105G09
    	
 
    	
 
    
	
FOOT 383 - 390
    	
 
    	
YB61156 - YB61163
    	
 
    	
2010/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 391 - 468
    	
 
    	
YB61164 - YB61241
    	
 
    	
2008/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08, 105G09
    	
 
    	
 
    
	
FOOT 549 - 550
    	
 
    	
YB61314 - YB61315
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
FOOT 575
    	
 
    	
YB61756
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 579 - 581
    	
 
    	
YB6I760 - YB61762
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 582 - 584
    	
 
    	
YB61763 - YB61765
    	
 
    	
2018/03/20
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 585 - 586
    	
 
    	
YB61766 - YB61767
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 605 - 606
    	
 
    	
YB70737 - YB70738
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT 607
    	
 
    	
YB70739
    	
 
    	
2010/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
FOOT A 11 - 12
    	
 
    	
YB7I274 - YB71275
    	
 
    	
2018/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
P
    
	
FOOT FRA 603
    	
 
    	
YB70735
    	
 
    	
2022/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
JILL 1 - 12
    	
 
    	
YB86778 - YB86789
    	
 
    	
2009/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 13 - 14
    	
 
    	
YB86790 - YB8679I
    	
 
    	
2009/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
F
    
	
JILL 15 - 18
    	
 
    	
YB86792 - YB86795
    	
 
    	
2009/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
P
    
	
JILL 19 - 22 
    	
 
    	
YB86796 - YB86799
    	
 
    	
2009/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 23 - 24 
    	
 
    	
YB86800 - YB86801
    	
 
    	
2009/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
JILL 25 - 28
    	
 
    	
YB87470 - YB87473
    	
 
    	
2008/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09, 105G08
    	
 
    	
F
    
	
JILL 29 - 32
    	
 
    	
YB87474 - YB87477
    	
 
    	
2008/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
JILL 36
    	
 
    	
YB87481
    	
 
    	
2008/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 37 - 38
    	
 
    	
YB87482 - YB87483
    	
 
    	
2008/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
P
    
	
JILL 39
    	
 
    	
YB87484
    	
 
    	
2008/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
 
    
	
JILL 40 - 41
    	
 
    	
YB87485 - YB87486
    	
 
    	
2008/02/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G09
    	
 
    	
F
    
	
KINK 3
    	
 
    	
YA69009
    	
 
    	
2030/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
LIN 1
    	
 
    	
YB87469
    	
 
    	
2008/03/07
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
F
    
	
PAK 1 - 20
    	
 
    	
YB45974 - YB45993
    	
 
    	
2007/12/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
PAK 21 - 36
    	
 
    	
YB51516 - YB51531
    	
 
    	
2007/12/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
PAK 37 - 60
    	
 
    	
YB58617 - YB58640
    	
 
    	
2007/12/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
PAK 63 - 64
    	
 
    	
YB58643 - YB58644
    	
 
    	
2007/12/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105O07
    	
 
    	
 
    
	
PAK 67 - 70 
    	
 
    	
YB58647 - YB58650
    	
 
    	
2007/12/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G07
    	
 
    	
 
    
	
TOE 1 - 7
    	
 
    	
YB56214 - YB56220
    	
 
    	
2008/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
TOE 8
    	
 
    	
YB56221
    	
 
    	
2009/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
TOE 9 - 12
    	
 
    	
YB56222 - YB56225
    	
 
    	
2008/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    
	
TOE 13 - 16
    	
 
    	
YB56226 - YB56229
    	
 
    	
2009/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    

 

Total claims selected : 628

 

	
Left   column indicator legend:
    	
 
    	
Right   column indicator legend:
    	
 
    	
 
    
	
R - Indicates the claim is on one or more pending   renewal(s).
    	
 
    	
L - Indicates the Quartz Lease.
    	
 
    	
D   - Indicates Placer Discovery
    
	
P - Indicates the claim is pending.
    	
 
    	
F - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
C   - Indicates Placer Codiscovery
    
	
 
    	
 
    	
P - Indicates Partial Quartz fraction (<25   acres)
    	
 
    	
B   - Indicates Placer Fraction
    

 

2

 

	
 
    	
Claim Status Report
    	
18 October 2007
    

 

 

	
Claim Name and Nbr.
    	
 
    	
Grant No.
    	
 
    	
Expiry Date
    	
 
    	
Registered Owner
    	
 
    	
% Owned
    	
 
    	
NTS #’s
    	
 
    	
 
    
	
TOE 17 - 36
    	
 
    	
YB59962 - YB59981
    	
 
    	
2008/03/31
    	
 
    	
YUKON ZINC CORPORATION
    	
 
    	
100.00
    	
 
    	
105G08
    	
 
    	
 
    

 

Criteria(s) used for search:

 

CLAIM NAME: ARCH, CAP, FOOT, JILL, KINK, LIN, PAK, TOE  CLAIM NUMBER (FROM): 1, 3   CLAIM STATUS: ACTIVE & PENDING   OWNER(S): YUKON ZINC CORPORATION  REGULATION TYPE: QUARTZ

 

Total claims selected : 628 

 

	
Left   column indicator legend:
    	
 
    	
Right   column indicator legend:
    	
 
    	
D   - Indicates Placer Discovery
    
	
R - Indicates the claim is on one or more pending   renewal(s).
    	
 
    	
L - Indicates the Quartz Lease.
    	
 
    	
C   - Indicates Placer Codiscovery
    
	
P - Indicates the claim is pending.
    	
 
    	
F - Indicates Full Quartz fraction (25+ acres)
    	
 
    	
B   - Indicates Placer Fraction
    
	
 
    	
 
    	
P - Indicates Partial Quartz fraction (<25   acres)
    	
 
    	
 
    

 

3Exhibit 10.54

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the 4th day of April, 2011 (the “Effective Date”) by and between Royal Gold, Inc., a Delaware corporation (the “Company”), and William M. Zisch (the “Executive”).

 

Recitals

 

A.              The Company desires to continue to employ Executive as Vice President Operations of the Company, and Executive desires to continue in such employment with the Company in said capacity, subject to the at-will employment relationship between the Company and Executive; and

 

B.               Each party desires to set forth in writing the terms and conditions of their understandings and agreements.

 

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and obligations contained herein, and other good and valuable consideration, the receipt and adequacy of which the Company and Executive hereby acknowledge, the Company and Executive hereby agree as follows:

 

Agreement

 

1.             Position.

 

(a)           The Company agrees to employ Executive in the position of Vice President Operations.  Executive shall serve and perform the duties which may from time to time be assigned to him by the President and/or the Board of Directors of the Company (the “Board”).  The Board may delegate its authority to take any action under this Agreement to the Compensation, Nominating and Corporate Governance Committee  of the Board (the “Compensation Committee”).

 

(b)           Executive agrees to serve as Vice President Operations and agrees that he will devote his best efforts and full business time and attention to the Company.  Executive agrees that he will faithfully and diligently carry out the duties of the Vice President Operations.  Executive further agrees to comply with all Company policies as in effect from time to time and to comply with all laws, rules and regulations, including, but not limited to, those applicable to the Company.

 

(c)           Executive agrees to travel as necessary to perform his duties under this Agreement.

 

(d)           Nothing herein shall preclude Executive from (i) serving as a member of the board of directors of up to two (2) for-profit businesses; (ii) serving as a member of the board of directors of such other affiliated or non-affiliated entities at the request of the Board; (iii) engaging in charitable and community activities; (iv) participating in industry and trade

 

1

 

organization activities; and (v) managing his and his family’s personal investments and affairs;  provided, that such activities do not (x) materially interfere with the regular performance of his duties and responsibilities under this Agreement or (y) constitute activities that compete with the business of Company.

 

2.             Term.  The initial term of this Agreement shall commence on the Effective Date and continue until September 15, 2011 (“Initial Term”), unless otherwise terminated pursuant to Section 4 of this Agreement.  This Agreement shall automatically renew for two (2) successive one (1) year terms unless either party gives written notice of its or his intent not to renew this Agreement at least sixty (60) days prior to the expiration of the then-current term.  Executive’s continued employment after the expiration of the Initial Term shall be in accordance with and governed by this Agreement, unless modified by the parties to this Agreement in writing.  References herein to the “Term” shall refer both to the Initial Term and any successive term as the context requires.

 

3.             Compensation and Benefits.

 

(a)           Base Salary.  The Company shall pay Executive a base salary of $246,000 per year (“Base Salary”).  The Base Salary may be increased annually by an amount as may be approved by the Board or the Compensation Committee, and, upon such increase, the increased amount shall thereafter be deemed to be the Base Salary for purposes of this Agreement.

 

(b)           Bonus Opportunities.  For each fiscal year during the Term, Executive shall be eligible to be considered to receive incentive compensation (an “Annual Bonus”) from the Company in an amount determined by the Board or the Compensation Committee and in accordance with the Company’s compensation policies and practices  as in effect from time to time.

 

(c)           Long-Term Incentive Award Opportunities.  Executive shall be eligible to participate throughout the Term in the Company’s  2004 Omnibus Long-Term Incentive Plan  (the “LTIP”) or other equity incentive plans as may be in effect from time to time  (the “Equity Incentive Plans”), in accordance with the Company’s compensation policies and practices  as in effect from time to time and the terms and provisions of the LTIP or other Equity Incentive Plan.

 

(d)           Payment.  Payment of all compensation to Executive hereunder shall be made in accordance with applicable law, the terms of this Agreement and applicable Company policies and practices as in effect from time to time, including normal payroll practices, and shall be subject to all applicable withholdings and taxes.

 

(e)           Welfare Benefits and Retirement Plans.  During the Term, Executive shall be allowed to participate, on the same basis generally as other similarly situated executive officers of the Company, in all general employee benefit plans and programs, including improvements or modifications of the same, which on the Effective Date or thereafter are made available by the Company or its affiliates to all or substantially all of the Company’s similarly situated executive officers.  Such benefits, plans, and programs may include, without limitation, health, vision care, dental care, medical reimbursement, prescription drug, life insurance,

 

2

 

disability protection, and qualified and non-qualified retirement plans.  Except as specifically provided herein, nothing in this Agreement is to be construed or interpreted to increase or alter in any way the rights, participation, coverage, or benefits under such benefit plans or programs from those provided to similarly situated executive officers pursuant to the terms and conditions of such benefit plans and programs.  The Company shall be permitted to modify such benefits from time to time consistent with any modifications that impact other similarly situated executive officers of the Company.

 

(f)            Fringe Benefits.  During the Term, Executive shall be entitled to fringe benefits of the kind and quality which are provided to similarly situated executive officers of the Company in accordance with the Company’s policies and practices as in effect from time to time.

 

(g)           Vacation.  Executive shall be entitled to paid vacation for up to four weeks  during each calendar year, and such vacation shall be taken in accordance with  the Company’s policies and practices as in effect from time to time.

 

(h)           Holidays.  Executive shall  be entitled to paid holidays, personal days, and sick days consistent with  the Company’s policies and practices as in effect from time to time.

 

(i)            Reimbursement of Expenses.  Promptly following presentation of expense statements, receipts, vouchers, or such other information and documentation as the Company may reasonably require, the Company shall reimburse Executive for all business expenses that are reasonable and necessary and incurred by Executive while performing his duties under this Agreement.

 

(j)            Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company and for which Executive may qualify, nor shall anything herein limit or otherwise affect such rights as Executive may have under any other agreement with the Company or any of its affiliated companies.  Except as otherwise provided herein, amounts which are vested benefits or which Executive is otherwise entitled to receive under any plan or program of the Company at or subsequent to the date of termination of employment shall be payable in accordance with such plan or program.

 

4.             Termination of Employment.

 

(a)           Termination by Company without Cause. The Company may terminate Executive’s employment and this Agreement for any reason immediately upon transmittal of written notice to Executive in accordance with this Agreement.

 

(b)           Termination by Company for Cause.  The Company may terminate Executive’s employment and this Agreement at any time for Cause.  For purposes of this Agreement, “Cause” for termination of Executive’s employment by the Company shall be deemed to exist if: (i) Executive is found guilty by a court of having committed fraud, theft, embezzlement or misappropriation against the Company  or any of its affiliates and such conviction is affirmed on appeal or the time for appeal has expired; (ii) Executive is found guilty

 

3

 

by a court of having committed a felony or any other crime involving moral turpitude and such conviction is affirmed on appeal or the time for appeal has expired;  (iii) in the reasonable judgment of the Board, Executive has compromised Proprietary and Confidential Information (as defined below) or has engaged in gross or willful misconduct that causes substantial and material harm to the business and operations of the Company or any of its affiliates, in each case the continuation of which will continue to substantially and materially harm the business and operations of the Company or any of its affiliates in the future; or (iv) Executive materially breaches this Agreement and fails to cure such breach within ten (10) days of being informed of such breach in writing by the Company.

 

(c)           Termination by Executive for Good Reason.  Executive may terminate his employment and this Agreement for Good Reason.  For purposes of this Agreement, “Good Reason” means, without Executive’s express written consent, the occurrence of any of the following circumstances if Executive has given notice of the circumstances within ninety (90) days of the occurrence and such circumstances have not been fully corrected within thirty (30) days of the notice given in respect thereof: (i) any material adverse change in Executive’s title or responsibilities with the Company, (ii) any material reduction in Executive’s Base Salary, (iii) receipt of notice that Executive’s principal workplace will be relocated by more than fifty (50) miles from the job-site immediately prior to the Effective Date, or (iv) if a Change of Control (as defined below) has occurred, failure to provide for Executive’s participation in bonus, stock option, restricted stock, incentive awards and other compensation plans which provide opportunities to receive compensation that are not less than (x) the opportunities provided by the Company to similarly situated executive officers of the Company and (y) the opportunities under any such plans in which the Executive was participating immediately prior to the date on which a Change of Control occurs.

 

(d)           Termination by Executive without Good Reason.  Executive may terminate his employment and this Agreement for reasons other than Good Reason  upon transmittal of at least sixty (60) days’ written notice to the Company in accordance with this Agreement.

 

(e)           Disability.  The Company may terminate Executive’s employment and this Agreement at any time Executive shall have sustained a Disability (as defined below) as determined by the Board, by giving Executive written notice of its intention to terminate Executive’s employment, and Executive’s employment with the Company shall terminate effective on the ninetieth (90th) day after receipt of such notice (the “Disability Effective Date”).  For purposes of this Agreement, “Disability” means Executive is unable due to a physical or mental condition to perform the essential functions of his position with or without reasonable accommodation for a period of three (3) consecutive months or based on the written certification of  a licensed physician selected by the Board and approved by Executive (which approval shall not be unreasonably withheld, delayed or conditioned) of the likely continuation of such condition for such period.

 

(f)            Death.  This Agreement and Executive’s employment shall terminate automatically upon Executive’s death.

 

4

 

5.             Obligations upon Termination.  Other than as specifically set forth or referenced in this Agreement, Executive shall not be entitled to any benefits on or after termination of employment or this Agreement.

 

(a)           Termination by Company without Cause; by Executive for Good Reason; or by Company for Failure to Renew.  If (i) the  Company terminates Executive’s employment or this Agreement without Cause during the Term, (ii) Executive terminates his employment or this Agreement for Good Reason during the Term, or (iii) Executive’s employment is terminated upon the Company’s election not to renew the term for one (1) of the two (2) successive one (1) year renewal terms pursuant to Section 2 hereof, and any such termination does not occur within two (2) years after the occurrence of a Change of Control, then the Company shall, after receipt of an executed release agreement between the Company and Executive, which will consist in substance of the language attached as Exhibit A (the “Release Document”)  pay to Executive, and Executive shall be entitled to receive, the following:

 

(i)            the unpaid portion of Executive’s Base Salary as of the date of termination of Executive’s employment, pro rated through the date of termination, and a payment for any vacation Executive has accrued but not used through the date of termination payable in accordance with Section 3(d);

 

(ii)           promptly following submission by Executive of supporting documentation, any costs and expenses paid or incurred by Executive which would have been payable under Section 3(i) if Executive’s employment had not terminated; and

 

(iii)          one (1) times Executive’s Base Salary (the “Severance Payment”), payable within thirty (30) business days of the date of termination of Executive’s employment.

 

(b)           Termination by the Company for Cause; by Executive other than for Good Reason; or by Executive for Failure to Renew.  If (i) Executive’s employment is terminated for Cause, (ii) Executive terminates his employment other than for Good Reason or (iii) Executive terminates his employment upon his election not to renew the term for one (1) of the two (2) successive one (1) year renewal terms pursuant to Section 2 hereof, then this Agreement shall terminate without further obligations by the Company to Executive under this Agreement, and the Company shall pay Executive, and Executive shall be entitled to receive, the following:

 

(i)            the unpaid portion of Executive’s Base Salary as of the date of termination of Executive’s employment, pro rated through the date of termination, and a payment for any vacation Executive has accrued but not used through the date of termination payable in accordance with Section 3(d); and

 

(ii)           promptly following submission by Executive of supporting documentation, any costs and expenses paid or incurred by Executive which would have been payable under Section 3(i) if Executive’s employment had not terminated.

 

5

 

(c)           Death.    If Executive’s employment is terminated by reason of Executive’s death, then this Agreement shall terminate without further obligations by the Company to Executive’s legal representatives under this Agreement other than those obligations under the terms of a Company plan or program that take effect at the date of Executive’s death, and the Company shall pay Executive’s estate, and Executive’s estate shall be entitled to receive, the following:

 

(i)            the unpaid portion of Executive’s Base Salary as of the date of termination of Executive’s employment, pro rated through the date of termination, and a payment for any vacation Executive has accrued but not used through the date of termination payable in accordance with Section 3(d); and

 

(ii)           promptly following submission by Executive’s legal representatives of supporting documentation, any costs and expenses paid or incurred by Executive which would have been payable under Section 3(i) if Executive’s employment had not terminated.

 

(d)           Disability.  If Executive’s employment is terminated by reason of Executive’s Disability, then this Agreement shall terminate without further obligations by the Company to Executive under this Agreement except for obligations which expressly continue after termination of employment due to Disability, and the Company shall pay Executive, and Executive shall be entitled to receive, the following:

 

(i)            the unpaid portion of Executive’s Base Salary as of the date of termination of Executive’s employment, pro rated through the date of termination, and a payment for any vacation Executive has accrued but not used through the date of termination payable in accordance with Section 3(d);

 

(ii)           promptly upon submission by Executive of supporting documentation, any costs and expenses paid or incurred by Executive which would have been payable under Section 3(i) if Executive’s employment had not terminated; and

 

(iii)          any disability benefits payable in accordance with the Company’s plans, programs and policies  as in effect from time to time.

 

(e)           Change of Control.  If (i) the  Company terminates Executive’s employment or this Agreement without Cause during the Term, (ii) Executive terminates his employment or this Agreement for Good Reason during the Term, or (iii) Executive’s employment is terminated upon the Company’s election not to renew the term for one (1) of the two (2) successive one (1) year renewal terms pursuant to Section 2 hereof, and any such termination occurs within two (2) years after the occurrence of a Change of Control, then after receipt of the executed Release Document:

 

6

 

(i)            the Company shall pay to Executive, and Executive shall be entitled to receive, the following:

 

(A)          the unpaid portion of Executive’s Base Salary as of the date of termination of Executive’s employment, pro rated through the date of termination, and a payment for any vacation Executive has accrued but not used through the date of termination payable in accordance with Section 3(d);

 

(B)           promptly following submission by Executive of supporting documentation, any costs and expenses paid or incurred by Executive which would have been payable under Section 3(i) if Executive’s employment had not terminated;

 

(C)           one and one-half (1.5) times Executive’s Base Salary, payable within thirty (30) business days of the date of termination of Executive’s employment; and

 

(D)          one and one-half (1.5) times the average of the Annual Bonuses paid to Executive for the three (3) full fiscal years ending immediately prior to the date of termination of Executive’s employment, payable within thirty (30) business days of the date of termination of Executive’s employment, provided, however that if Executive has not been eligible to receive an Annual Bonus for three (3) fiscal years at the time of such determination, then the average under this clause (D) shall be based on the lesser number of fiscal years for which Executive has been eligible to receive an Annual Bonus, and provided, further that if Executive has received an Annual Bonus for a portion of a fiscal year, then the amount of such Annual Bonus shall be annualized solely for purposes of the determination made under this clause (D) (collectively, clauses (C) and (D) of this Section 5(e)(i) the “Change of Control Severance Payment”);

 

(ii)           if Executive (and Executive’s eligible dependants) timely elect participation in the Company’s group health insurance plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) or any Colorado statute that provides for the continuation of benefits under such plan (“Colorado Continuation Statute”), the Company will pay the normal monthly employer’s cost of coverage under the Company’s group health insurance plan for full-time employees toward such COBRA coverage or Colorado Continuation Statute coverage for twelve (12) months following the date of termination of Executive’s employment.  Executive acknowledges and agrees that Executive is responsible for paying the balance of any costs not paid by the Company under this Agreement which are associated with Executive’s (and Executive’s eligible dependants’) participation in the Company’s health insurance plan and that Executive’s failure to pay such costs may result in the termination of Executive’s (and Executive’s eligible dependants’) participation in such plan.  The Company’s obligations under this Section 5(e)(ii) will cease on the date on which Executive becomes eligible for health insurance coverage under another employer’s group health insurance plan, and, within five (5) business days of Executive becoming eligible for health insurance coverage under another employer’s group health insurance plan, Executive shall inform the Company of such fact in writing; and

 

7

 

(iii)          the Company will arrange to provide for Executive (and Executive’s eligible dependants) benefits provided under any vision care, dental care, medical reimbursement, prescription drug, life insurance and disability protection  group insurance plans maintained by the Company for full-time employees for twelve (12) months following the date  of termination of Executive’s employment.  If and to the extent that the Company cannot provide coverage to Executive (and Executive’s eligible dependants) under any such vision care, dental care, medical reimbursement, prescription drug, life insurance and disability protection group insurance plans (i) solely due to the fact that Executive is no longer an employee or officer of the Company or (ii) as a result of the amendment or termination of any vision care, dental care, medical reimbursement, prescription drug, life insurance and disability protection group insurance plan, the Company will then pay or provide for the payment of such vision care, dental care, medical reimbursement, prescription drug, life insurance and disability protection group insurance plan during the twelve (12) months following the date of  termination of Executive’s employment.  Executive acknowledges and agrees that Executive is responsible for paying the balance of any costs not paid by the Company under this Agreement which are associated with Executive’s (and Executive’s eligible dependants’) participation in any vision care, dental care, medical reimbursement, prescription drug, life insurance and disability protection group insurance plan and that Executive’s failure to pay such costs may result in the termination of Executive’s (and Executive’s eligible dependants’) participation in such plan.  The Company’s obligations under this Section 5(e)(iii) will cease on the date on which Executive becomes eligible for any vision care, dental care, medical reimbursement, prescription drug, life insurance and disability protection group insurance plan (but only with respect to the particular coverage(s) available), and, within five (5) business days of Executive becoming eligible for any insurance coverage(s) under another employer’s group insurance plan, Executive shall inform the Company of such fact in writing.

 

For purposes of this Agreement, “Change of Control” means any of the following:  (i) the dissolution or liquidation of the Company or a merger, consolidation, or reorganization of the Company with one (1) or more other entities in which the Company is not the surviving entity, (ii) a sale of substantially all of the assets of the Company to another person or entity, (iii) any transaction (including without limitation a merger or reorganization in which the Company is the surviving entity) which results in any person or entity (other than persons who are stockholders or affiliates immediately prior to the transaction) owning fifty percent (50%) or more of the combined voting power of all classes of stock of the Company, or (iv) during any period of two (2) consecutive years, members who at the beginning of such period constituted the Board shall have ceased for any reason to constitute a majority thereof, unless the election, or nomination for election by the Company’s equity holders, of each director shall have been approved by the vote of at least a majority of the directors then still in office and who were directors at the beginning of such period (so long as such director was not nominated by a person who has expressed an intent to effect a Change of Control or engage in a proxy or other control contest).

 

(f)            Resignation from Boards of Directors.  If Executive is a director of the Company or any of its affiliates and his employment is terminated for any reason, Executive shall, if requested by the Company, immediately resign as a director of the Company and/or any affiliate and any committees of such boards of directors.  If such resignation is not received

 

8

 

within ten (10) business days after Executive receives written notice from the Company requesting the resignations, Executive shall forfeit any right to receive any payments pursuant to this Agreement.

 

(g)           Release.  Notwithstanding any other provision in this Agreement to the contrary, as a condition precedent to receiving any Severance Payment or Change of Control Severance Payment, Executive agrees to execute (and not revoke) the Release Document on or before the thirtieth (30th) business day following the date of termination of Executive’s Employment, which is when any Severance Payment or Change of Control Severance Payment is otherwise payable in accordance with Section 5(a)(iii) or Section 5(e)(i)(C), respectively.  If Executive fails to execute and deliver the Release Document, or revokes the Release Document, Executive agrees that he shall not be entitled to receive the Severance Payment or Change of Control Severance Payment, as applicable.

 

6.             Limitations Under Code Section 409A.  Notwithstanding anything to the contrary in this Agreement, in the event that, as a result of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (and any related regulations or other pronouncements), any of the payments that Executive is entitled to under the terms of this Agreement or any other plan involving deferred compensation (as defined under Section 409A of the Code) may not be made at the time contemplated by the terms thereof without causing Executive to be subject to constructive receipt at a date prior to actual payment and/or an income tax penalty and interest and the timing of payment is the sole cause of such adverse tax consequences, the Company will make such payment on the first day permissible under Section 409A of the Code without  Executive incurring such adverse tax consequences.  In particular, with respect to any lump sum payment otherwise required hereunder, in the event of any delay in the payment date as a result of Section 409A(a)(2)(A)(i) and (B)(i) of the Code, the Company will adjust the payments to reflect the deferred payment date by crediting interest thereon at the prime rate in effect at the time such amount first becomes payable, as quoted by the Company’s principal bank.  In addition, other provisions of this Agreement or any other such plan notwithstanding, the Company shall have no right to accelerate any such payment or to make any such payment as the result of any specific event except to the extent permitted under Section 409A of the Code.  The Company shall not be obligated to reimburse Executive for any tax penalty or interest or provide a gross-up in connection with any tax liability of Executive under Section 409A of the Code.

 

7.             Excise Tax-Related Provisions.

 

(a)           Notwithstanding anything in this Agreement to the contrary, if any payment or benefit Executive would receive from the Company  pursuant to a  Change of Control or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this Section 7(a), be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount (as defined below).  For the avoidance of doubt, a Payment shall not be considered a parachute payment for purposes of this paragraph if such Payment is approved by the shareholders of the Company in accordance with the procedures set forth in Section 280G(b)(5)(A)(ii) and (B) of the Code and the regulations thereunder, and at the time of such shareholder approval, no stock of the successor corporation is readily tradable on an established

 

9

 

securities market or otherwise (within the meaning of Section 280G(b)(5)(A)(ii)(I) of the Code).  The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the Payment or a portion thereof after payment of the applicable Excise Tax, whichever amount after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax payable by Executive (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greatest amount of the Payment to Executive.  If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless Executive elects in writing a different order (provided, however, that such election shall be subject to Company approval if made on or after the date on which the event that triggers the Payment occurs):  by first reducing or eliminating the portion of the Payments which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the Change of Control  or other event.

 

(b)           All determinations under this Section 7 shall be made by a nationally recognized public accounting or consulting firm selected by the Company and subject to the approval of Executive, which approval shall not be unreasonably withheld, conditioned or delayed.  Such determination shall be binding upon Executive and the Company.  The Company shall bear all expenses with respect to the determinations by such  accounting or consulting firm required to be made hereunder.

 

(c)           The accounting or consulting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within fifteen (15) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive) or such other time as requested by the Company or Executive.

 

8.             Ownership and Protection of Intellectual Property and Confidential Information.

 

(a)           All information, ideas, concepts, improvements, discoveries, and inventions, whether patentable or not, which are conceived, made, developed or acquired by Executive, individually or in conjunction with others, during Executive’s employment by the Company or any of its affiliates (whether during business hours or otherwise and whether on the Company’s premises or otherwise) which relate to the business, products or services of the Company or its affiliates (including, without limitation, all such information relating to corporate opportunities; geological, metallurgical, and other technical data and information, including operations, reserve information and exploration data; research, financial and sales data; pricing and trading terms; evaluations; opinions; interpretations; acquisition prospects; the identity of customers or their requirements; the identity of key contacts within the customer’s organizations or within the organization of acquisition prospects; or marketing and merchandising techniques, prospective names, and marks), and all correspondence, memoranda, notes, records, data or information, analyses, or other documents (including, without limitation, any computer-generated, computer-stored or electronically-stored materials) of any type embodying any of

 

10

 

such items, shall be the sole and exclusive property of the Company or its affiliates, as the case may be.

 

(b)           Executive acknowledges that the Company’s business is highly competitive and that the Company has developed and owns valuable information which is confidential, unique and specific to the Company and its affiliates (“Proprietary and Confidential Information”) and which includes, without limitation, financial information; geological, metallurgical, and other technical data and information, including operations, reserve information and exploration data; marketing plans; business and implementation plans; engineering plans and processes; models and templates; prospect lists; technical information concerning products, services and processes; names and other information (such as credit and financial data) concerning customers and business affiliates; and other trade secrets, concepts, ideas, plans, strategies, analyses, surveys and proprietary information related to the past, present or anticipated business of the Company and its affiliates.  Executive further acknowledges that protection of such Proprietary and Confidential Information against unauthorized disclosure and use is of critical importance to the Company and its affiliates in maintaining their competitive position.  Executive hereby agrees that he shall not, at any time during or after his employment by the Company, disclose to others, permit to be disclosed, use, permit to be used, copy or permit to be copied, any such Proprietary and Confidential Information (whether or not developed by Executive and whether or not received as an employee) without the prior written consent of the Chief Executive Officer of the Company.  Executive further agrees to maintain in confidence any proprietary and confidential information of third parties received or of which he has knowledge as a result of his employment.  The prohibitions of this Section 8(b) shall not apply, however, to information in the public domain (but only if the same becomes part of the public domain through means other than a disclosure prohibited hereunder).  The above notwithstanding, a disclosure shall not be unauthorized if (i) it is required by law or by a court of competent jurisdiction or (ii) it is in connection with any judicial, arbitration, dispute resolution or other legal proceeding in which Executive’s legal rights and obligations as an employee or under this Agreement are at issue; provided, however, that Executive shall, to the extent practicable and lawful in any such events, give prior notice to the Company of his intent to disclose any such Proprietary and Confidential Information in such context so as to allow the Company or its affiliates an opportunity (which Executive shall not oppose) to obtain such protective orders or similar relief with respect thereto as may be deemed appropriate.

 

(c)           All written materials, records, data and information, analyses, and other documents (including, without limitation, any computer-generated, computer-stored or electronically-stored data and other materials), and all copies thereof, made, composed or received by Executive solely or jointly with others, and which are in Executive’s possession, custody or control and which are related in any manner to the past, present or anticipated business of the Company or any of its affiliates (collectively, the “Company Documents”) shall be and remain the property of the Company, or its affiliates, as the case may be.  Upon termination of Executive’s employment with the Company, for any reason, Executive promptly shall deliver the Company Documents, and all copies thereof, to the Company.

 

11

 

9.             Covenant Not to Compete and Other Restrictive Covenants.

 

(a)           For a period of twelve (12) months after the date of termination of employment, Executive shall restrict his activities as follows:

 

(i)            Executive shall not, directly or indirectly, for himself or others, own, manage, operate, control, be employed by (whether in an executive, managerial, supervisory or other capacity), consult with, assist or otherwise engage or participate in or allow his skill, knowledge, experience or reputation to be used in connection with, the ownership, management, operation or control of, any company or other business enterprise engaged in the Subject Business (as defined below) within any of the Subject Areas (as defined below); provided, however, that nothing contained herein shall prohibit Executive from making passive investments as long as Executive does not beneficially own more than one percent (1%) of the equity interests of a business enterprise listed on a national securities exchange or publicly traded on a nationally recognized over-the-counter market engaged in the Subject Business within any of the Subject Areas.  For purposes of this paragraph, “beneficially own” shall have the same meaning ascribed to that term in Rule 13d-3 under the Securities Exchange Act of 1934, as amended;

 

(ii)           Executive shall not call upon any customer of the Company or its affiliates for the purpose of soliciting, diverting or enticing away the business of such person or entity, or otherwise disrupting any previously established relationship existing between such person or entity and the Company or its affiliates;

 

(iii)          Executive shall not solicit, induce, influence or attempt to influence any supplier, lessor, lessee, licensor, partner, joint venturer, potential acquiree or any other person who has a business relationship with the Company or its affiliates, or who on the date of termination of Executive’s employment is engaged in discussions or negotiations to enter into a business relationship with the Company or its affiliates, to discontinue or reduce or limit the extent of such relationship with the Company or its affiliates; and

 

(iv)          Without the consent of the Company, Executive shall not make contact with any of the employees or consultants of the Company or its affiliates with whom he had contact during the course of his employment with the Company for the purpose of soliciting such employee or consultant for hire, whether as an employee or independent contractor, or otherwise disrupting such employee’s or consultant’s relationship with the Company or its affiliates.

 

For purpose of this Agreement, (x) “Subject Areas” mean (A) the continents of North America, Central and South America, Africa, Europe and Australia and (B) the nation of Russia, and (y) “Subject Business” means the business of creating, financing, or acquiring and managing royalties involving mineral properties.

 

(b)           Acknowledgements.

 

(i)            Executive acknowledges that (x) the compensation provided to Executive during the Term, (y) the agreement to provide the Severance Payment or Change of Control Severance Payment to Executive in connection with certain terminations of Executive’s

 

12

 

employment, and (z) the specialized training and the Proprietary and Confidential Information provided to Executive pursuant to his employment with the Company give rise to the Company’s interest in restraining Executive from competing with the Company, that the noncompetition and nonsolicitation covenants are designed to enforce such consideration, that the Company’s royalty business is worldwide in geographic scope and that any limitations as to time, geographic scope and scope of activity to be restrained as defined herein are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the Company.  Executive further acknowledges that as an executive of a publicly traded company he falls within the exception to C.R.S 8-2-113(2)(d), which exempts executive and management personnel, officers and employees who constitute professional staff to executive and management personnel from the prohibitions of non-compete provisions under Colorado law.

 

(ii)           Executive and the Company hereby agree to reasonably allocate an amount of the Change of Control Severance Payment to the non-competition covenant set forth in this Section 9, which amount will be established by the parties in good faith negotiations, relying upon third party advisers to the extent reasonably determined by the parties, at the time a Change of Control transaction is reasonably likely or at such earlier time as is determined by the parties in good faith.

 

(c)           Survival of Covenants.  Sections 8 and 9 shall survive the expiration or termination of this Agreement for any reason. Executive agrees not to challenge the enforceability or scope of Sections 8 and 9.  Executive further agrees to notify all future persons or businesses with which he becomes affiliated or employed, of the restrictions set forth in Sections 8 and 9, prior to the commencement of any such affiliation or employment.

 

10.          Severability and Reformation.  If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions shall remain in full force and effect, and the invalid, void or unenforceable provisions shall be deemed severable.  Moreover, if any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be reformed by limiting and reducing it to the minimum extent necessary, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

 

11.          Indemnification.  The Company and Executive have executed and delivered an Indemnification Agreement dated March 24, 2009 (the “Indemnification Agreement”).  To the extent any provision set forth in the Indemnification Agreement is in conflict with any provision set forth in this Agreement, the provision set forth in the Indemnification Agreement shall govern.  Further, Executive shall be entitled to coverage under the Directors and Officers Liability Insurance program to the same extent as other similarly situated executive officers of the Company.

 

12.          Miscellaneous.

 

(a)           Entire Agreement. This Agreement sets forth the entire agreement

 

13

 

between the parties hereto and fully supersedes any and all prior agreements or understandings, written or oral, between the parties hereto pertaining to the subject matter hereof.

 

(b)           Notices.  Whenever under this Agreement it becomes necessary to give notice, such notice shall be in writing, signed by the party or parties giving or making the same, and shall be served on the person or persons for whom it is intended or who should be advised or notified, by (i) personal delivery, (ii) Federal Express or other similar overnight service or (iii) certified or registered mail, return receipt requested, postage prepaid and addressed to such party at the address set forth below or at such other address as may be designated by such party by like notice:

 

If to the Company:

 

Royal Gold, Inc.

1660 Wynkoop Street, Suite 1000

Denver, CO 80202

Attention:  Chief Executive Officer

 

If to Executive:

 

William M. Zisch

4987 Hollyhock Lane

Indian Hills, CO  80454

 

In the case of personal delivery, such notice or advice shall be effective on the date of delivery, in the case of Federal Express or other similar overnight service, such notice or advice shall be effective on the next business day, and, in the cases of certified or registered mail,  such notice or advice shall be effective three (3) business days after deposit into the mails for delivery by the U.S. Post Office.

 

(c)           Governing Law and Venue.  This Agreement is governed by and is to be construed, administered, and enforced in accordance with the laws of the State of Colorado, without regard to conflicts of law principles.  If under the governing law, any portion of this Agreement is at any time deemed to be in conflict with any applicable statute, rule, regulation, ordinance, or other principle of law, such portion shall be deemed to be modified or altered to the extent necessary to conform thereto or, if that is not possible, to be omitted from this Agreement.  Any action or arbitration in regard to this Agreement or arising out of its terms and conditions, pursuant to Sections 12(n) and 12(o), shall be instituted and litigated only in the City and County of Denver, Colorado.

 

(d)           Assignment.  This Agreement and Executive’s rights and obligations hereunder may not be assigned by Executive.  Any purported assignment or delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect.  The Company may assign this Agreement and its rights, together with its obligations hereunder, to an affiliate of the Company or to a person or entity which is a successor in interest to

 

14

 

substantially all of the business operations of the Company.  Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate, successor, person or entity.

 

(e)           Counterparts.  This Agreement may be executed in counterparts, each of which shall take effect as an original, and all of which shall evidence one and the same Agreement.

 

(f)            Amendment. This Agreement may be amended only in writing signed by Executive and by a duly authorized representative of the Company (other than Executive).

 

(g)           Construction.  The headings and captions of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement. The language in all parts of this Agreement shall be in all cases construed in accordance to its fair meaning and not strictly for or against the Company or Executive.

 

(h)           Non-Waiver.  The failure by either party to insist upon the performance of any one or more terms, covenants or conditions of this Agreement shall not be construed as a waiver or relinquishment of any right granted hereunder or of any future performance of any such term, covenant or condition, and the obligation of either party with respect hereto shall continue in full force and effect, unless such waiver shall be in writing signed by the Company (other than by Executive) and Executive.

 

(i)            Use of Name, Likeness and Biography.  The Company shall have the right (but not the obligation) to use, publish and broadcast, and to authorize others to do so, the name, approved likeness and approved biographical material of Executive to advertise, publicize and promote the business of Company and its affiliates, but not for the purposes of direct endorsement without Executive’s consent.  This right shall terminate upon the termination of this Agreement.  An “approved likeness” and “approved biographical material” shall be, respectively, any photograph or other depiction of Executive, or any biographical information or life story concerning the professional career of Executive, as approved by Executive from time to time.

 

(j)            Right to Insure.  The Company shall have the right to secure, in its own name or otherwise, and at its own expense, life, health, accident or other insurance covering Executive, and Executive shall have no right, title or interest in and to such insurance.  Executive shall assist Company in procuring such insurance by submitting to reasonable examinations and by signing such applications and other reasonable instruments as may be required by the insurance carriers to which application is made for any such insurance.

 

(k)           Assistance in Litigation.  Executive shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions now in existence or that may be brought in the future against or on behalf of the Company that relate to events or occurrences that transpired while Executive was employed by the Company.  Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  Executive also shall cooperate fully with the Company

 

15

 

in connection with any investigation or review by any federal, state, or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive was employed by the Company.  The Company shall pay Executive a reasonable hourly rate for Executive’s cooperation pursuant to this Section 12(k).

 

(l)            No Inconsistent Obligations. Executive represents and warrants that to his knowledge he has no obligations, legal, in contract, or otherwise, inconsistent with the terms of this Agreement or with his continued employment with the Company to perform the duties described herein.  Executive shall not disclose to the Company, or use, or induce the Company to use, any confidential, proprietary, or trade secret information of others. Executive represents and warrants that to his knowledge he has returned all property and confidential information belonging to all prior employers, if he is obligated to do so.

 

(m)          Binding Agreement.  This Agreement shall inure to the benefit of and be binding upon Executive, his heirs and personal representatives, and the Company and its successors.

 

(n)           Remedies.  The parties recognize and affirm that in the event of a breach of Sections 8 and 9 of this Agreement, money damages would be inadequate and the Company would not have an adequate remedy at law.  Accordingly, the parties agree that in the event of a breach or a threatened breach of Sections 8 and 9, the Company may, in addition and supplementary to other rights and remedies existing in its favor, apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security).  In addition, Executive agrees that in the event a court of competent jurisdiction or an arbitrator finds that Executive violated Section 9, the time periods set forth in Section 9 shall be tolled until such breach or violation has been cured.  Executive further agrees that the Company shall have the right to offset the amount of any damages awarded to the Company resulting from a breach by Executive of Sections 8 or 9 against any payments due Executive under this Agreement.

 

(o)           Arbitration.  Other than as stated in Section 12(n), the parties agree that any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be resolved by arbitration in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association.  The arbitration shall take place in Denver, Colorado.  All disputes shall be resolved by one (1) arbitrator chosen by agreement of the parties in accordance with the National Rules for the Resolution of Employment Disputes.  The arbitrator shall have the authority to award the same remedies, damages, and costs that a court could award.  The arbitrator shall issue a reasoned award explaining the decision, the reasons for the decision, and any damages awarded.  The arbitrator’s decision shall be final and binding.  The judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  The arbitration proceedings, any record of the same, and the award shall be considered Proprietary and Confidential Information under this Agreement.  This provision and any decision and award hereunder can be enforced under the Federal Arbitration Act.

 

(p)           Voluntary Agreement.  Each party to this Agreement has read and fully

 

16

 

understands the terms and provisions hereof, has had an opportunity to review this Agreement with legal counsel, has executed this Agreement based upon such party’s own judgment and advice of counsel (if any), and knowingly, voluntarily, and without duress, agrees to all of the terms set forth in this Agreement.  The parties have participated jointly in the negotiation and drafting of this Agreement.  If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party because of authorship of any provision of this Agreement.  Except as expressly set forth in this Agreement, neither the parties nor their affiliates, advisors and/or their attorneys have made any representation or warranty, express or implied, at law or in equity with respect to the subject matter contained herein.  Without limiting the generality of the previous sentence, the Company, its affiliates, advisors, and/or attorneys have made no representation or warranty to Executive concerning the state or federal tax consequences to Executive regarding the transactions contemplated by this Agreement, other than any determination that may be made pursuant to Section 7(b).

 

(q)           Jury Trial Waiver.  THE PARTIES HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING TO WHICH THEY ARE PARTIES INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT.

 

(r)            Survival.  The rights and obligations of the Company and Executive contained in Sections 8, 9 and 12(s) of this Agreement shall survive the termination of the Agreement.  Following termination of Executive’s employment and this Agreement, each party shall have the right to enforce all rights, and shall be bound by all obligations, of such party that are continuing rights and obligations under this Agreement.

 

(s)           Non-disparagement.  Executive shall not make any disparaging, derogatory or detrimental comments about the Company or any of its affiliates or any of their directors, officers, employees, partners, members, managers or shareholders, or any investor or other person or entity having a business relationship with the Company or any of its affiliates.  The Company, each of its affiliates and the directors and officers of the Company and its affiliates shall not make any disparaging, derogatory or detrimental comments about Executive.

 

(t)            Certain Definitions.  For purposes of this Agreement:

 

(i)            an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person, and includes subsidiaries;

 

(ii)           a “business day” means the period from 9:00 am to 5:00 pm on any weekday that is not a banking holiday in the State of Colorado; and

 

(iii)          a “subsidiary” of any person means another person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body (or, if there are no

 

17

 

such voting interests or no board of directors or other governing body, fifty percent (50%) or more of the equity interests of which) is owned directly or indirectly by such first person.

 

[SIGNATURE PAGE FOLLOWS]

 

18

 

IN WITNESS WHEREOF, the Company and Executive have executed this Agreement, effective as of the day and year first above written.

 

 

	
 
    	
ROYAL   GOLD, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Tony Jensen
    
	
 
    	
Name:
    	
Tony   Jensen
    
	
 
    	
Title:
    	
President   and CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ William M.   Zisch
    
	
 
    	
William M. Zisch
    

 

19

 

EXHIBIT A

 

RELEASE

 

For and in consideration of the payments and other benefits due to William M. Zisch (the “Executive”) pursuant to the Employment Agreement dated as of March 26, 2009 (the “Employment Agreement”), by and between Royal Gold, Inc., a Delaware corporation (the “Company”) and Executive, and for other good and valuable consideration, Executive hereby agrees, for Executive, Executive’s spouse and child or children (if any), Executive’s heirs, beneficiaries, devisees, executors, administrators, attorneys, personal representatives, successors and assigns, to forever release, discharge and covenant not to sue the Company, or any of its divisions, affiliates, subsidiaries, parents, branches, predecessors, successors, assigns, and, with respect to such entities, their officers, directors, trustees, employees, agents, shareholders, administrators, general or limited partners, representatives, attorneys, insurers and fiduciaries, past, present and future (the “Released Parties”) from any and all claims of any kind arising out of, or related to, his employment with the Company, its affiliates and subsidiaries (collectively, with the Company, the “Affiliated Entities”) or Executive’s separation from employment with the Affiliated Entities, which Executive now has or may have against the Released Parties, whether known or unknown to Executive, by reason of facts which have occurred on or prior to the date that Executive has signed this Release.  Such released claims include, without limitation, any and all claims relating to the foregoing under federal, state or local laws pertaining to employment, including, without limitation, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000e et. seq.,  the Fair Labor Standards Act, as amended, 29 U.S.C. Section 201 et. seq., the Americans with Disabilities Act, as amended, 42 U.S.C. Section 12101 et. seq., the Reconstruction Era Civil Rights Act, as amended, 42 U.S.C. Section 1981 et. seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C. Section 701 et. seq., the Family and Medical Leave Act of 1992, 29 U.S.C. Section 2601 et. seq., the Older Workers Benefit Protection Act of 1990, the Pregnancy Discrimination Act, the Equal Pay Act of 1963, the Colorado Civil Rights Act, the Colorado Anti-Discrimination Act and any and all state or local laws regarding employment discrimination and/or federal, state or local laws of any type or description regarding employment, including but not limited to any claims arising from or derivative of Executive’s employment with, or termination from, the Affiliated Entities, as well as any and all such claims under contract or tort law, including, without limitation, any and all claims for wrongful discharge, breach of implied or express contract, promissory estoppel, breach of any covenant of good faith and fair dealing, intentional or negligent infliction of emotional distress, defamation, or any claim that the Company has dealt with Executive unfairly or in bad faith.  Executive represents and warrants that he has not sold or otherwise assigned any claim or any portion of any claim to any third party.

 

Executive has read this Release carefully, acknowledges that Executive has been given at least twenty-one (21) days to consider all of its terms and has been advised to consult with an attorney and any other advisors of Executive’s choice prior to executing this Release.  Executive fully understands that by signing below Executive is voluntarily giving up any right which Executive may have to sue or bring any  claims against the Released Parties, including any rights and claims under the Age Discrimination in Employment Act.  Executive also understands that

 

 

Executive has a period of seven (7) days after signing this Release within which to revoke his agreement by written notice delivered to the Company in accordance with the Employment Agreement, and that neither the Company nor any other person is obligated to make any payments or provide any other benefits to Executive pursuant to the Employment Agreement until eight (8) days have passed since Executive’s signing of this Release without Executive’s signature having been revoked, other than any accrued obligations or other benefits payable pursuant to the terms of the Company’s normal payroll practices or employee benefit plans.  Finally, Executive has not been forced or pressured in any manner whatsoever to sign this Release, and Executive agrees to all of its terms voluntarily.

 

Notwithstanding anything else herein to the contrary, this Release shall not affect: (i) the Company’s obligations under any compensation or employee benefit plan, program or arrangement (including, without limitation, obligations to Executive under the Employment Agreement, any stock option, stock award or agreements or obligations under any pension, deferred compensation or retention plan) provided by the Affiliated Entities where Executive’s compensation or benefits are intended to continue or Executive is to be provided with compensation or benefits, in accordance with the express written terms of such plan, program or arrangement, beyond the date of Executive’s termination; (ii) rights to indemnification Executive may have under the Employment Agreement or a separate agreement entered into with the Company; or (iii) rights Executive may have as a shareholder.

 

Executive agrees that Executive shall not make any disparaging, derogatory or detrimental comments about the Company or any of the Affiliated Entities or any of their directors, officers, employees, partners, members, managers or shareholders, or any investor or other person or entity having a business relationship with the Company or any of the Affiliated Entities.  Executive also acknowledges that the terms of this Release constitute Proprietary and Confidential Information (as defined in the Employment Agreement).

 

This Release is final and binding and may not be changed or modified except in a writing signed by both parties.  This Release is governed by and is to be construed, administered, and enforced in accordance with the laws of the State of Colorado, without regard to conflicts of law principles.

 

	
 
    	
 
    
	
 
    	
William M. Zisch
    
	
 
    	
 
    
	
 
    	
ROYAL GOLD, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]