ROYAL OAK MINES INC.
STOCK OPTION AGREEMENT
_______________, 199___
Dear :
The following is to confirm the terms of the stock option
granted to you by Royal Oak Mines Inc. ("Royal Oak") to purchase common shares
in its capital. The terms of such option are as follows:
1. This option shall extend to (-) common shares of Royal Oak which may be
purchased in whole or in part, at any time and from time to time for so
long as this option is open for exercise at an exercise price of $(-)
(Cdn.) per share.
2. This option is conditional upon:
[(a) SUCCESSFUL COMPLETION OF THE FINANCING WITH TRILON FINANCIAL
CORPORATION; AND
(b)] receipt of regulatory approval, including the approval of The
Toronto Stock Exchange and the American Stock Exchange, which
approval Royal Oak agrees to seek forthwith. Until such
approvals are obtained, no shares may be purchased pursuant to
this grant of option.
If [THE FINANCING REFERRED TO IN (a) HEREOF IS NOT COMPLETED OR IF] the
approvals [REFERRED TO IN (b)] are not obtained prior to December 31,
1998, then this agreement shall terminate and be of no further force
and effect.
3. This option shall be open for exercise until (-), 200-. If, at any time
prior to expiry of this option, you cease to be an officer or an
employee of Royal Oak or a subsidiary of Royal Oak, by death or
otherwise, then this option shall terminate 90 days after such event
but, subject to the provisions of paragraph 1, will be open for
exercise by you or your personal representatives during such 90-day
period.
4. This option shall be irrevocable by Royal Oak and non-assignable by
you.
5. Upon exercise of this option, you agree to comply with all relevant
securities laws applicable if you elect to resell any of the common
shares purchased hereunder.
6. In the event of any stock split, consolidation, amalgamation,
reorganization, reclassification or any other similar change to the
authorized or issued share capital of Royal Oak, the option exercise
price and the number of shares subject to option outstanding at the
time that such change becomes effective shall be adjusted by the Board
of Directors of Royal Oak to give effect to such change. The decision
of the Board of Directors in such a case shall be final and binding
upon you.
7. Upon exercise of this option, payment shall be made to Royal Oak by way
of cheque and against payment therefor you will be entitled to receive
certificates for fully paid and non-assessable common shares of Royal
Oak on the terms set out herein.
8. Neither this Agreement nor the grant of the option shall in any way
constitute any form of agreement or understanding binding on Royal Oak
or any affiliated company of Royal Oak, express or implied, that Royal
Oak, or any affiliated company of Royal Oak, will employ you or
contract with you for any length of time, nor shall it interfere in any
way with Royal Oak's, or where applicable, an affiliated company's
right to terminate your employment for any reason at any time, which
right is hereby reserved.
If you are in agreement with the foregoing, please sign in the
space indicated below and return an original to Royal Oak, whereupon this
Agreement shall be deemed to be binding as of the date first written above.
ROYAL OAK MINES INC.
Per:
-----------------------------------
XXXXXXXX X. XXXXX
PRESIDENT AND CHIEF EXECUTIVE OFFICER
I approve and confirm the foregoing.
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EXHIBIT 4.2
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OPTIONEE GRANT NUMBER OF EXERCISE PRICE MARKET PRICE ON EXPIRY DATE
(OR AMENDMENT) SHARES ($CDN.) DATE PRIOR TO
DATE DATE OF GRANT OR
AMENDMENT
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X. Xxxxxxxx April 3, 1998 75,000 $1.55 $1.55 April 2, 2003
Treasurer
X. Xxxx April 3, 1998 25,000 $1.55 $1.55 April 2, 2003
Director, Corporate
Development
X. Xxxx April 3, 1998 50,000 $1.55 $1.55 April 2, 2003
Chief Financial
Officer
E. Szol April 3, 1998 50,000 $1.55 $1.55 April 2, 2003
Executive
Vice-President
Chief Operating
Officer
X.X. Xxxxx April 3, 1998 200,000 $1.55 $1.55 April 2, 2003
President, C.E.O.,
Director
Xxxx X. Xxxxxx August 20, 1998 50,000 $0.90 $0.88 August 19, 2005
Director
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