Employee Securities Incentive Plan
Released
Released
Announcement PDF
3465-7448-8123v8
MONT ROYAL RESOURCES LIMITED
OMNIBUS EQUITY INCENTIVE PLAN
3465-7448-8123v8
TABLE OF CONTENTS
Page
ARTICLE 1 PURPOSE.................................................................................................................... 1
1.1 Purpose..................................................................................................................... 1
1.2 Replacement of Predecessor Plan...................................................................................1
ARTICLE 2 INTERPRETATION......................................................................................................... 1
2.1 Definitions ................................................................................................................. 1
2.2 Interpretation............................................................................................................. 9
ARTICLE 3 ADMINISTRATION...................................................................................................... 10
3.1 Administration.......................................................................................................... 10
3.2 Delegation toCommittee........................................................................................... 11
3.3 Determinations Binding ............................................................................................. 11
3.4 Eligibility.................................................................................................................. 12
3.5 Plan Administrator Requirements.................................................................................12
3.6 Total Shares Subject to Awards....................................................................................12
3.7 Limits on Grants of Awards......................................................................................... 12
3.8 Award Agreements.................................................................................................... 13
3.9 Non-transferability of Awards..................................................................................... 14
ARTICLE 4 OPTIONS.................................................................................................................. 14
4.1 Granting of Options................................................................................................... 14
4.2 Exercise Price ........................................................................................................... 14
4.3 Term of Options........................................................................................................ 14
4.4 Vesting and Exercisability........................................................................................... 14
4.5 Payment of Exercise Price........................................................................................... 15
4.6 Cashless Exercise ...................................................................................................... 15
4.7 Net Exercise of Options.............................................................................................. 16
4.8 Disposition of Options by Canadian Participant...............................................................16
ARTICLE 5 STOCK APPRECIATION RIGHTS..................................................................................... 17
5.1 Granting of SARs....................................................................................................... 17
5.2 Measurement Price................................................................................................... 17
5.3 Duration of SARs....................................................................................................... 17
5.4 Exercise of SARs........................................................................................................ 18
5.5 Payment of Exercise Priceand Settlement of Award........................................................18
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ARTICLE 6 DEFERRED SHARE UNITS............................................................................................. 18
6.1 Granting ofDSUs....................................................................................................... 18
6.2 DSU Account............................................................................................................ 19
6.3 Vesting of DSUs ........................................................................................................ 19
6.4 Settlement of DSUs ................................................................................................... 19
ARTICLE 7 RESTRICTED SHARE UNITS........................................................................................... 20
7.1 Granting ofRSUs....................................................................................................... 20
7.2 RSU Account ............................................................................................................ 20
7.3 Vesting of RSUs......................................................................................................... 20
7.4 Settlement ofRSUs.................................................................................................... 20
ARTICLE 8 PERFORMANCE SHARE UNITS.......................................................................................21
8.1 Granting of PSUs....................................................................................................... 21
8.2 Terms of PSUs .......................................................................................................... 21
8.3 Performance Goals.................................................................................................... 21
8.4 PSU Account............................................................................................................. 22
8.5 Vesting of PSUs......................................................................................................... 22
8.6 Settlement of PSUs.................................................................................................... 22
ARTICLE 9 OTHER SHARE-BASED AWARDS.................................................................................... 23
ARTICLE 10 ADDITIONAL AWARD TERMS..................................................................................... 23
10.1 Dividend Equivalents ................................................................................................. 23
10.2 Blackout Period........................................................................................................ 24
10.3 Withholding Taxes..................................................................................................... 24
10.4 Recoupment............................................................................................................. 24
10.5 No “Salary Deferral Arrangement”............................................................................... 24
ARTICLE 11 TERMINATION OF EMPLOYMENT OR SERVICES..............................................................24
11.1 Termination of Employment, Services or Director ...........................................................24
11.2 Discretion to Permit Acceleration................................................................................ 26
11.3 Participants’ Entitlement............................................................................................ 26
ARTICLE 12 EVENTS AFFECTING THE CORPORATION.......................................................................26
12.1 General................................................................................................................... 26
12.2 Change inControl..................................................................................................... 27
12.3 Reorganization of Corporation’s Capital.........................................................................28
12.4 Other Events Affecting the Corporation.........................................................................28
12.5 Immediate Acceleration of Awards...............................................................................28
12.6 Issue by Corporation of Additional Shares......................................................................28
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12.7 Fractions.................................................................................................................. 28
ARTICLE 13 AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN..........................................29
13.1 Amendment, Suspension, or Termination of the Plan......................................................29
13.2 Shareholder Approval................................................................................................ 29
13.3 Permitted Amendments............................................................................................. 30
ARTICLE 14 MISCELLANEOUS..................................................................................................... 30
14.1 LegalRequirement.................................................................................................... 30
14.2 No Other Benefit....................................................................................................... 31
14.3 Rights of Participant .................................................................................................. 31
14.4 Corporate Action...................................................................................................... 31
14.5 Conflict.................................................................................................................... 31
14.6 Anti-Hedging Policy................................................................................................... 31
14.7 Participant Information.............................................................................................. 31
14.8 Participation in the Plan............................................................................................. 32
14.9 International Participants........................................................................................... 32
14.10 Successors and Assigns .............................................................................................. 32
14.11 General Restrictions on Assignment..............................................................................32
14.12 Severability.............................................................................................................. 32
14.13 Effective Date........................................................................................................... 32
14.14 Governing Law.......................................................................................................... 32
14.15 Submission to Jurisdiction.......................................................................................... 32
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Mont RoyalResources Limited
Omnibus Equity Incentive Plan
ARTICLE 1
PURPOSE
1.1 Purpose
The purpose of this Plan is to provide the Corporation with a share-related mechanism to attract, retain and
motivate qualified Directors, Officers, Employees, Management CompanyEmployees and Consultants, toreward
such of those Directors, Officers, Employees, Management Company Employees and Consultants as may be
grantedAwards under this Planby theBoard from timeto timefor their contributions towardthelong termgoals
and success of the Corporation and to enable and encourage such Directors, Officers, Employees, Management
Company Employees and Consultants toacquire Shares as long terminvestments and proprietaryinterests inthe
Corporation.
1.2 Replacement of Predecessor Plan
This Plan constitutes a replacement of the Corporation’s employee securities incentive plan approved by the
Corporations’ shareholders on 24 November 2022 (the “Predecessor Plan”). No further awards shall be made
under the PredecessorPlanfrom and after theEffective Dateof this Plan. Subject to compliance with the policies
of theExchange, alloutstanding Awards grantedunder thePredecessor Planshallcontinue to be outstanding and
remain in force in accordance with their existing terms. Inaccordancewith the policies of the Exchangecovering
“rolling” security based compensation plans, this Plan must receive yearly shareholder approval at the
Corporation’s annual meeting of shareholders.
ARTICLE 2
INTERPRETATION
2.1 Definitions
When used herein, unless the context otherwise requires, the following terms have the indicated meanings,
respectively:
“110(1)(d) Deduction” has the meaning set forth in Subsection 4.1;
“Affiliate” means any entitythat is an “affiliate” as defined in TSXV Policy 1.1;
“Associate” has the same meaning as in section 12 of the Corporations Act;
“ASX” means the Australian Securities Exchange;
“Australian Participant” means a Participant who is resident in Australia;
“Award” means any Option, SAR, DeferredShare Unit, Restricted ShareUnit, Performance Share Unit or
Other Share-BasedAwardgrantedunder this Plan, which may be denominated or settledin Shares, cash
or in such other forms as provided for herein;
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“Award Agreement” means a signed, written agreement between a Participant and the Corporation, in
the form or any one of the forms approved by the Plan Administrator, and evidencing the terms and
conditions on which an Award has been granted under this Plan (including written or other applicable
employment agreements) and which need not be identical to any other such agreements;
“Board” means the board of directors of the Corporation as it may be constituted from time to time;
“Business Day” means a day, other than a Saturday or Sunday, on which the principal commercial banks
in the City of Toronto are open for commercial business during normal banking hours;
“Canadian Participant”means a Participantwhois resident inCanada or employedinCanada for purposes
of the Tax Act and deals at arm’s length with the Corporation and its Affiliates;
“Cash Fees” has the meaning set forth in Subsection 6.1(a);
“Cause” means:
(a) with respect to a particularEmployee: (1) “cause” as such term is defined in the employment or
other written agreement between the Corporation or a subsidiary of the Corporation and the
Employee; (2) in the event there is no written or other applicable employment agreement
between the Corporation or a subsidiary of the Corporation and the Employee or “cause” is not
defined in suchagreement, “cause” as suchtermis defined inthe AwardAgreement; or (3) inthe
event neither clause (1) nor (2) apply, then “cause” as such termis defined by applicable law or,
if not so defined, then with respect to an Award to an Employee, such term shall refer to
circumstances where an employer can terminate an individual’s employment without notice or
pay in lieu thereof;
(b) in the case of a Consultant (1) the occurrence of any event which, under the written consulting
contract with the Consultant or the common law or the laws of the jurisdiction in which the
Consultant provides services, gives theCorporationor anyof its Affiliates theright toimmediately
terminate the consulting contract; or (2) the termination of the consulting contract as a result of
an order made by any Regulatory Authority having jurisdiction to so order;
(c) in the caseof a Director, ceasing tobe a Director as a result of (1) ceasing tobe qualified to act as
a Directorpursuant to Part 2D.6of the Corporations Act; (2) a resolution having been passedby
the shareholders pursuant to section 203D of the Corporations Act, or (3) an order made by any
Regulatory Authority having jurisdiction to so order; or
(d) in the caseof anOfficer, (1) cause as suchterm is defined in the writtenemployment agreement
with the Officer or if thereis no writtenemployment agreement or causeis not defined therein,
the usual meaning of just cause under the common law or the laws of the jurisdiction in which
the Officer provides services; or (2) ceasing to be an Officer as a result of an order made by any
Regulatory Authority having jurisdiction to so order.
“Change in Control” means the occurrence of any one or more of the following events:
(a) a change in Control of the Corporation;
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(b) wheremembers of the Corporationapprove any compromise or arrangement for thepurpose of,
or in connection with, a scheme for the reconstruction of the Corporation or its amalgamation
with any other body corporate or bodies corporate (other thana scheme that does not involve a
change in the ultimate beneficial ownership of the Corporation), which will, upon becoming
effective, result inany person(either aloneor together withits Associates)owning morethanfifty
per cent (50%) of Issued Capital;
(c) where a person becomes the legalor the beneficial owner of, or has a Relevant Interest in, more
than fifty per cent (50%) of Issued Capital;
(d) where a person becomes entitled to acquire, hold or has an equitable interest in more thanfifty
per cent (50%) of Issued Capital;
(e) where a Takeover Bidis made to acquire more thanfifty per cent (50%) of IssuedCapital(or such
lesser number of Shares that when combined with the Shares that the bidder (together with its
Associates)alreadyowns will amount to more than 50% of IssuedCapital)and the Takeover Bid
becomes unconditional and the bidder (together with its Associates) has a Relevant Interest in
more than 50% of Issued Capital; and
(f) the sale, assignment or other transfer of all or substantially all of the consolidated assets of the
Corporation to a Person other than one or more wholly-owned subsidiaries of the Corporation,
but, for the avoidance of doubt, does not include any internal reorganisation of the structure, business
and/or assets of the Group.
“Commencement Date” has the meaning set forth in Section 11.1(e);
“Committee” has the meaning set forth in Section 3.2;
“Company” unless specifically indicated otherwise, means a corporation, incorporated association or
organization, body corporate, partnership, trust, association or other entity other than an individual;
“Consultant” means, in relation to the Corporation an individual (other than a Director, Officer, or
Employee of the Corporation or any of its subsidiaries) or Company that:
(a) is engaged to provide services on an ongoing bona fide basis, including consulting, technical
management or other services totheCorporationor to any of its subsidiaries, other thanservices
provided in relation to a distribution of securities of the Corporation;
(b) provides the services under a writtencontract betweenthe Corporationor any of its subsidiaries
and the individual or the Company, as the case may be; and
(c) in the reasonable opinion of the Corporation, spends or will spend a significant amount of time
and attention on the affairs and business of the Corporation or a subsidiary of the Corporation;
“Consultant Company” means a Consultant that is a Company;
“Constitution” means the constitution of the Corporation;
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“Control” has the same meaning as in section 50AA of the Corporations Act, and the words “Controlled
by”, “Controlling” andsimilarwords have corresponding meanings; provided that a Person who controls
a corporation, partnership, limited partnership, trust or joint venture will be deemed to Control a
corporation, partnership, limited partnership, trust or joint venture which is Controlled by such Person
and so on;
“Corporation” means Mont Royal Resources Limited (ACN 625 237 658) and includes any successor(s)
thereto;
“Corporations Act” means the Corporations Act 2001 (Cth);
"Corporations Act Exemption” means the exemption from various disclosure requirements under the
Corporations Act for offers of securities madeby a company under an employee share scheme as set out
in the Corporations Act;
“Date of Grant” means, for any Award, the current or future date specified by the Plan Administrator at
the time it grants the Award or if no such date is specified, the date upon which the Award was granted;
“Deferred Share Unit” or “DSU” means anyright granted under Article 6 of this Plan;
“Director” means a director of the Corporation who is not an Employee;
“Director Fees” means the total compensation (including annual retainer and meeting fees, if any) paid
by the Corporation to a Director in a calendar year for service on the Board;
“Disabled” or “Disability” means, in respect of a Participant, suffering from a stateof mental or physical
disability, illness or disease that prevents the Participant from carrying out his or her normal duties as an
Employee for a continuous period of six months or for any period of sixmonths in any consecutive twelve
month period, as certified by two medical doctors or as otherwise determined in accordance with
procedures established by the Plan Administrator for purposes of this Plan;
“Disinterested Shareholder Approval” means approval in accordance with TSXV Policy 4.4 by the
Corporation’s shareholders at a duly constituted shareholders meeting, excluding: (i) votes attached to
the Shares beneficially owned by Insiders to whom Awards may be granted under the Plan and their
associates and affiliates; and (ii) such other excluded votes as described under TSXV Policy 4.4;
“Effective Date” means the effective date of this Plan, being March 27, 2024;
“Elected Amount” has the meaning set forth in Subsection 6.1(a);
“Electing Person” means a Participant who is, on the applicable Election Date, a Director;
“Election Date” means the date on which the Electing Person files an Election Notice in accordance with
Subsection 6.1(b);
“Election Notice” has the meaning set forth in Subsection 6.1(b);
“Employee” means:
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(a) an individual who is considered an employee of the Corporation or any of its subsidiaries under
the Income Tax Act (Canada) and for whom income tax, employment insurance, and Canada
Pension Plan deductions must be made at source; or
(b) an individual who works full-time for the Corporationor any of its subsidiaries providing services
normally provided by an employee and who is subject to the same control and direction by the
Corporation or its subsidiaries over the details and methods of work as an employee of the
Corporationor of thesubsidiary, as thecasemaybe, but for whom income taxdeductions arenot
made at source;
“Exchange” (unless thecontext otherwise requires)means theTSXV, ASX or, if at any time theShares are
not listed and posted for trading on the TSXV or the ASX, shall be deemed to mean such other stock
exchange upon which the Shares trade and which has been designated by the Board or a committee of
the Board. For greater certainty, wherethere is an inconsistency between the rules and policies of more
than one stock exchange upon which the Shares trade, the Plan will be interpreted as requiring
compliance with the rules of both stock exchanges;
“ExerciseNotice” means a noticein writing, signedby a Participant and stating theParticipant’s intention
to exercise a particular Option;
“ExercisePrice” means theprice at which an Option Share may be purchased pursuant to the exercise of
an Option;
“Expiry Date” means the expiry datespecified in theAward Agreement (which shallnot be later thanthe
tenth anniversary of the Date of Grant) or, if not so specified, means the fifth anniversary of the Date of
Grant;
“Fair Market Value” with respect toone Share as of any dateshallmean (a) if the Shares arelistedon the
TSXV or ASX (if applicable), thepriceof one Shareat theclose of the regular trading sessionofsuchmarket
or exchange on thelast trading dayprior to such date, andif no saleof Shares shallhave occurredon such
date, on the next preceding dateon which therewas a saleof Shares (subject to suchprice not being less
than theDiscountedMarket Price (as defined in the policies of the Exchange)); (b) if the Shares arenot so
listed on the TSXV, ASX or another established stock exchange, the average of the closing “bid” and
“asked” prices quoted by the OTC Markets, theNationalQuotation Bureau, or any comparable reporting
service on such date or, if there are no quoted “bid” and “asked” prices on such date, on the next
preceding date for which there aresuch quotes for a Share; or (c) if the Shares are not publicly tradedas
of such date, the per share value of one Share, as determined by the Board, or any duly authorized
Committee of the Board, in its sole discretion, by applying principles of valuation with respect thereto.
“Insider”, if used in relation to the Corporation, means:
(a) a director or an officer of the Corporation;
(b) a director or an officer of a Company that is itself an Insider or a subsidiary of the Corporation;
(c) a Person that has:
(A) beneficial ownership of, or control or direction over, directly or indirectly; or
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(B) a combination of beneficial ownership of, and control or direction over, directly
or indirectly,
securities of the Corporation carrying more than 10% of the voting rights attachedto all
of the Corporation’s outstanding voting securities other than voting securities held by
Persons as underwriter in the course of the distribution; or
(d) the Corporation if it has purchased, redeemed or otherwiseacquired a securityof its own issue,
for so long as it continues to hold that security.
“Investor RelationsActivities”means anyactivities or oral or written communications, by or on behalf of
the Corporation or shareholder of the Corporation, that promote or reasonably could be expected to
promote the purchase or sale of securities of the Corporation, but does not include:
(a) the dissemination of information provided, or records prepared, in the ordinary course of
business of the Corporation:
(A) to promote the sale of products or services of the Corporation; or
(B) to raise public awareness of the Corporation;
that cannot reasonably be considered to promote the purchase or sale of securities of the
Corporation;
(b) activities or communications necessary to comply with the requirements of:
(i) applicable securities laws; or
(ii) Exchange requirements or theby-laws, rules or other regulatoryinstruments ofanyother
self-regulatory body or Exchange having jurisdiction over the Corporation;
(c) communications by a publisher of, or writer for, a newspaper, magazineor business or financial
publication, that is of generaland regular paid circulation, distributedonly to subscribers toit for
value or to purchasers of it, if:
(i) the communication is only through the newspaper, magazine or publication; and
(ii) the publisher or writer receives no commission or other consideration from the
Corporation other than for acting in the capacity of publisher or writer; or
(d) activities or communications that may be otherwise specified by an Exchange.
“Investor RelationsServiceProvider”includes any Consultant that performs Investor Relations Activities
and any Director, Officer, Employee or Management CompanyEmployee whose role and duties primarily
consist of Investor Relations Activities;
“Issued Capital” means issued Shares from time to time;
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“Management Company Employee” means anindividualemployed by a Companyproviding management
services to the Corporation, which services are required for the ongoing successful operation of the
business of the Corporation;
“Market Price” at any date in respect of the Shares shall be determined as follows:
(a) if the Shares arethenlistedon theExchange, thenthe Market Priceshallbe thevolume weighted
average trading price on the TSXV (or the ASX, if applicable) for the tentrading days immediately
preceding such date subject to such price not being less than the Discounted Market Price (as
defined in the policies of the Exchange); and
(b) if the Shares are not listed on the TSXV, ASX or another established stock exchange, then the
Market Price shallbe, subject to thenecessaryapprovals oftheapplicable RegulatoryAuthorities,
the fair market value of the Shares on such date as determined by the Board in its discretion;
“Officer” means an officer (as defined under Securities Laws) of the Corporation or of any of its
subsidiaries;
“Option” means a right grantedto a Participant by the Corporation to acquire Shares of the Corporation
at a specified price for a specified period of time;
“Option Shares” means Shares issuable by the Corporation upon the exercise of outstanding Options;
“Other Share-Based Award” means any right granted under Article 9;
“Participant” means a Director, Officer, Employee, Management Company Employee or Consultant to
whom an Award has been granted under this Plan;
“Performance Goals” means performance goals expressed in terms of attaining a specified level of the
particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and
may be applied to one or more of the Corporation, a subsidiary of the Corporation, a division of the
Corporationor a subsidiary of the Corporation, or an individual, or may be applied to the performance of
the Corporationor a subsidiary of the Corporationrelative to a market index, a groupof other companies
or a combination thereof, or on any other basis, all as determined by the Plan Administrator in its
discretion;
“Performance Share Unit” or “PSU” or “Performance Right” means any right granted under Article 8 of
this Plan;
“Person” means an individual, sole proprietorship, partnership, unincorporated association,
unincorporated syndicate, unincorporatedorganization, trust,bodycorporate, anda naturalpersonin his
or her capacity as trustee, executor, administrator or other legal representative;
“Plan” means this Omnibus Equity Incentive Plan, as it may be amended and/or restated from time to
time;
“Plan Administrator” means the Board or, to the extent that the administration of this Plan has been
delegated by th
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