Document:

Unassociated Document

     

    IRREVOCABLE
      TRANSFER AGENT INSTRUCTIONS

     

    THIS
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS
      (this
“Agreement”),
      dated
      as of March 28, 2008, by and among INTREPID
      TECHNOLOGY AND RESOURCES, INC.,
      an
      Idaho corporation (the “Company”),
      COLUMBIA
      STOCK TRANSFER COMPANY
      (the
“Transfer
      Agent”)
      and
YA
      GLOBAL INVESTMENTS, L.P.
      a
      Cayman Island exempted limited partnership (individually, a “Buyer”
or
      collectively, “Buyers”).

     

    WITNESSETH

    

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the Company
      and the Buyer are executing and delivering a Securities Purchase Agreement,
      dated the date hereof (the “Securities
      Purchase Agreement”)
      pursuant to which the Company has agreed to sell and the Buyer(s) have agreed
      to
      purchase convertible debentures (collectively, the “Debentures”)
      in the
      aggregate principal amount of Five Hundred Eighty-Five Thousand Dollars
      ($585,000) plus accrued interest, which are convertible into shares of the
      Company’s common stock, par value $0.005 per share (the “Conversion
      Shares”),
      at
      the Buyers discretion; 

    

    WHEREAS,
      pursuant to the Securities Purchase Agreement the Company has issued to the
      Buyer(s) warrants to purchase a minimum of 4,200,000 shares of Common Stock
      at
      the Buyer’s discretion (the “Warrant”
and
      the
“Warrant
      Shares”);

    

    WHEREAS,
      pursuant to the Convertible Debentures the Company shall be entitled to make
      payment of interest outstanding there under in shares of the Company’s common
      stock (the “Interest
      Shares”);

    

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the Company
      and the Buyer are executing and delivering a Registration Rights Agreement
      dated
      the date hereof (the “Registration
      Rights Agreement”)
      pursuant to which the Buyer shall be entitled to payment of liquidated damages
      in shares of the Company’s common stock upon the occurrence of the events
      articulated therein (the “Liquidated
      Damages Shares”);

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and other agreements contained in this
      Agreement the Company, the Buyer(s) and the Transfer Agent hereby agree as
      follows:

     

    
      	 	
              1.

            	
              CONVERSION
                SHARES, INTEREST SHARES, LIQUIDATED DAMAGES SHARES AND WARRANT
                SHARES.
                

            

    

     

    (a) Instructions
      Applicable to Transfer Agent.
      The
      parties here to acknowledge that the Buyer(s) shall irrevocably be entitled
      to
      deliver to the Transfer Agent on behalf of the Company a Conversion Notice
      (the
“Conversion
      Notice”)
      in the
      form attached as Exhibit A to the Debentures, or an Exercise Notice (the
“Exercise
      Notice”)
      in the
      form attached as Exhibit A to the Warrant. Upon
      the
      Transfer Agents receipt of a properly completed and duly executed Conversion
      Notice or an Exercise Notice, the Transfer Agent shall without the confirmation
      or instructions from the Company and
      within three (3) Trading Days thereafter (i) issue and surrender to a common
      carrier for overnight delivery to the address as specified in the Conversion
      Notice or the Exercise Notice, a certificate, registered in the name of the
      Buyer or its designees, for the number of shares of Common Stock to which the
      Buyer shall be entitled as set forth in the Conversion Notice or Exercise Notice
      or (ii) provided the Transfer Agent is participating in The Depository Trust
      Company (“DTC”)
      Fast
      Automated Securities Transfer Program, upon the request of the Buyers, credit
      such aggregate number of shares of Common Stock to which the Buyers shall be
      entitled to the Buyer’s or their designees’ balance account with DTC through its
      Deposit Withdrawal At Custodian (“DWAC”)
      system
      provided the Buyer causes its bank or broker to initiate the DWAC transaction.
      For purposes hereof “Trading
      Day”
      shall
      mean any day on which the Nasdaq Market is open for customary
      trading.

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    (b). No
      Restrictive Legends. The
      certificates representing the Conversion Shares and the Warrant Shares shall
      not
      bear any legend restricting transfer and should not be subject to any
      stop-transfer restrictions and shall otherwise be freely transferable on the
      books and records of the Company; provided
      that
      counsel
      to the Company delivers (i) the Notice of Effectiveness set forth in
Exhibit
      I
      attached
      hereto and (ii) an opinion of counsel in the form set forth in Exhibit
      II
      attached
      hereto.

     

    (c)
       Restrictive
      Legends. In
      the
      event that the Conversion Shares, Interest Shares, Liquidated Damages Shares,
      and Warrant Shares are not registered for sale under the Securities Act of
      1933,
      as amended, and the certificates for the Conversion Shares, Interest Shares,
      Liquidated Damages Shares, and Warrant Shares shall bear the following legend,
      or its equivalent:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY
      ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT.”

     

    (d) Removal
      of Restrictive Legends. In
      the
      event that the Buyer submits to the Transfer Agent the Conversion Shares,
      Interest Shares, Liquidated Damages Shares, and Warrant Shares for the removal
      of the restrictive legends whether in connection with a sale of such shares
      pursuant to any
      exemption to the registration requirements the Securities Act of 1933, as
      amended, or otherwise the Transfer Agents shall without the confirmation or
      instructions from the Company and within three (3) Trading Days of receipt
      of
      all required documentation from the Buyer, its agent or counsel, (i) issue
      and
      surrender to a common carrier for overnight delivery to the address as specified
      by the Buyer(s), a certificate, registered in the name of the Buyer or its
      designees, for the number of shares of Common Stock to which the Buyer shall
      be
      entitled as set forth pursuant to their submission or (ii) provided the Transfer
      Agent is participating in The Depository Trust Company (“DTC”)
      Fast
      Automated Securities Transfer Program, upon the request of the Buyers, credit
      such aggregate number of shares of Common Stock to which the Buyers shall be
      entitled to the Buyer’s or their designees’ balance account with DTC through its
      Deposit Withdrawal At Custodian (“DWAC”)
      system
      provided the Buyer causes its bank or broker to initiate the DWAC transaction.
      For purposes hereof “Trading
      Day”
      shall
      mean any day on which the Nasdaq Market is open for customary
      trading.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (e) Opinions
      of Counsel. In
      the
      event that the Buyer submits to the Transfer Agent the Conversion Shares,
      Interest Shares, Liquidated Damages Shares, and Warrant Shares for the removal
      of the restrictive legends whether in connection with a sale of such shares
      pursuant to any
      exemption to the registration requirements the Securities Act of 1933, as
      amended, or otherwise and the Company and or its counsels refuses or fails
      for
      any reason to render an opinion of counsel required for the removal of the
      restrictive legends the Company hereby represents and warrants that the Buyer
      is
      hereby irrevocably and expressly authorized to have counsel to the Buyer to
      render any and all opinions which may be required and relied upon by the
      Transfer Agent. 

    

    In
      the
      event the Buyer submits an opinion of counsel as contemplated in the preceding
      paragraph the Transfer Agent hereby acknowledges it will rely on and accept
      such
      opinion of counsel and all documentation submitted in connection therewith,
      with
      out the confirmation or instructions from the Company, and issue such Conversion
      Shares, Interest Shares, Liquidated Damages Shares, and Warrant Shares without
      restrictive legends as instructed by the Buyer as per Section 1 (d)
      herein.

     

    2.  RESERVATION
      OF SHARES OF THE COMPANY.

     

    (a). The
      Transfer Agent shall reserve for issuance to the Buyers a minimum of 60,000,000
      Conversion Shares and 4,200,000 Warrant Shares, as may be increased under the
      Warrant,. Under no circumstances, including but not limited to the exhaustion
      of
      the number of reserved shares articulated herein, increase of the number of
      Warrant Shares pursuant to terms of the Warrant, the share reserve articulated
      herein is not created or other wise, shall such reservation of Conversion Shares
      and Warrant shares articulated herein be deemed to be a cap on the number of
      Conversion Shares and Warrant Shares to be issued to the Buyer. 

     

    (b). All
      such
      shares shall remain in reserve with the Transfer Agent until the Buyers provides
      the Transfer Agent instructions that the shares or any part of them shall be
      taken out of reserve and shall no longer be subject to the terms of these
      instructions. 

     

    (c) The
      Company and the Transfer Agent acknowledge that as of the date hereof no share
      reserve exists or will exist so long as the Convertible Debentures are
      outstanding.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.

            	
              AUTHORIZED
                AGENT OF THE COMPANY.

            

    

     

    (a) The
      Company hereby irrevocably appoints the Buyer Escrow Agent as a duly authorized
      agent of the Company for the purposes of authorizing the Transfer Agent to
      process issuances and transfers specifically contemplated herein.

     

    (b) The
      Transfer Agent shall accept and rely exclusively on the Conversion Notice,
      the
      Escrow Notice, the Exercise Notice or the Escrowed Shares submitted by the
      Buyer(s) and shall not seek confirmation and/or instructions from the Company
      to
      process the Conversion Notice, the Escrow Notice, or the Exercise Notice or
      the
      issuance of the Escrowed Shares with or without Legends.

     

    (c) 
      The
      Transfer Agent shall accept and rely exclusively on the opinions of counsel
      and
      other documentation submitted by the Buyer(s) for the removal of the restrictive
      legends as contemplated hereunder and shall not seek confirmation and/or
      instructions from the Company to process such submission by the
      Buyer(s).

     

    (d) The
      Transfer Agent shall have no liability for relying on such instructions. Any
      Conversion Notice, Escrow Notice, Exercise Notice or request for removal of
      restrictive legends and such supporting documentation delivered hereunder shall
      constitute an irrevocable instruction to the Transfer Agent to process such
      notice or notices in accordance with the terms thereof. Such notice or notices
      may be transmitted to the Transfer Agent by facsimile or any commercially
      reasonable method.

     

    (e) The
      Company hereby confirms to the Transfer Agent and the Buyers that it can
NOT
      and will
      NOT give instructions, including stop orders or otherwise, other than as
      contemplated herein to Transfer Agent with regard to the issuances contemplated
      herein. 

     

    (f) In
      the
      event that the Company provides instructions contrary to this Agreement to
      the
      Transfer Agent, including but not limited to stop orders, the Transfer Agent
      will disregard any contrary instructions, including but not limited to stop
      orders, submitted by or on behalf of the Company and act according to such
      instructions provided by the Buyer and according the time requirements set
      forth
      herein.

     

    (g) The
      Company shall not be entitled to nor will the Transfer Agent grant a suspension
      of the obligations hereunder for any time period in order for the Company to
      obtain a court order or its equivalent in order to prevent the Transfer Agent
      from acting hereunder.

     

    (h) The
      Company and the Transfer Agent hereby acknowledge and confirm that complying
      with the terms of this Agreement does not and shall not prohibit the Transfer
      Agent from satisfying any and all fiduciary responsibilities and duties it
      may
      owe to the Company.

     

    (i) The
      Transfer Agent, upon request of the Buyer(s) and with out instruction or
      confirmation by the Company, will provide to the Buyer(s) the total number
      of
      authorized shares of the Company’s Common Stock as well as the current
      outstanding shares of the Company’s Common Stock as of the date of the
      request.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (j) Certain
      Notice Regarding the Escrow Agent.
      The
      Company and the Transfer Agent hereby acknowledge that the Escrow Agent is
      general counsel to the Buyers, a partner of the general partner of the Buyers
      and counsel to the Buyers in connection with the transactions contemplated
      and
      referred herein. The Company and the Transfer Agent agree that in the event
      of
      any dispute arising in connection with this Agreement or otherwise in connection
      with any transaction or agreement contemplated and referred herein, the Escrow
      Agent shall be permitted to continue to represent the Buyers and neither the
      Company nor the Transfer Agent will seek to disqualify such
      counsel.

     

    
      	 	
              4.

            	
              REPLACEMENT
                OF TRANSFER AGENT.

            

    

     

    (a) The
      Company hereby agrees that it shall not replace the Transfer Agent as the
      Company’s transfer agent without the prior written consent of the
      Buyers.

     

    (b) Any
      attempt by Transfer Agent to resign as the Company’s transfer agent hereunder
      shall not be effective until such time as the Company provides to the Transfer
      Agent written notice that a suitable replacement has agreed to serve as transfer
      agent and to be bound by the terms and conditions of these Irrevocable Transfer
      Agent Instructions.

     

    5.  ISSUANCE
      OF CAPITAL STOCK.

     

    The
      Company herby confirms and the Transfer Agent acknowledges that while any
      portion of the Debenture
      remains unpaid and unconverted the Company and the
      Transfer Agent
      shall
      not, without the prior consent of the Buyers, (i) issue any Common Stock or
      Preferred Stock without consideration or for a consideration per share less
      than
      closing bid price determined immediately prior to its issuance, (ii) issue
      any Preferred Stock, warrant, option, right, contract, call, or other security
      or instrument granting the holder thereof the right to acquire Common Stock
      without consideration or for a consideration per share less than the closing
      bid
      price of the Common Stock determined immediately prior to its issuance,
(iii)
      issue any S-8
      shares of the Company’s Common Stock.

     

    
      	 	
              6.

            	
              MISCELEANEOUS.

            

    

     

    (a)
      The
      Company and the Transfer Agent acknowledge that the Buyers is relying on the
      representations and covenants made by the Company and the Transfer Agent
      hereunder and are a material inducement to the Buyers purchasing convertible
      debentures under the Securities Purchase Agreement. The Company and the Transfer
      Agent further acknowledge that without such representations and covenants of
      the
      Company and the Transfer Agent made hereunder, the Buyers would not purchase
      the
      Debentures.

     

    (b) Each
      party hereto specifically acknowledges and agrees that in the event of a breach
      or threatened breach by a party hereto of any provision hereof, the Buyers
      will
      be irreparably damaged and that damages at law would be an inadequate remedy
      if
      these Irrevocable Transfer Agent Instructions were not specifically enforced.
      Therefore, in the event of a breach or threatened breach by a party hereto,
      including, without limitation, the attempted termination of the agency
      relationship created by this instrument, the Buyers shall be entitled, in
      addition to all other rights or remedies, to an injunction restraining such
      breach, without being required to show any actual damage or to post any bond
      or
      other security, and/or to a decree for specific performance of the provisions
      of
      these Irrevocable Transfer Agent Instructions.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c) Each
      party hereto specifically acknowledges and agrees that in any action to enforce
      this Agreement or any right hereunder the prevailing party will be entitled
      to
      recover its reasonable attorney’s fees and expenses from the other party or
      parties.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        6

        
          

        

      

       

    

     

    IN
      WITNESS WHEREOF,
      the
      parties have caused this letter agreement regarding Irrevocable Transfer Agent
      Instructions to be duly executed and delivered as of the date first written
      above.

     

    
      	 	COMPANY:
	 	 	 
	 	Intrepid
              Technology and Resources, Inc.
	 	 	 
	 	By: 	
              /s/
                Jacob D. Dustin  

            
	 	Name: Jacob
              D. Dustin
	 	Title: President
	 	 	 
	 	 	
              /s/
                David Gonzalez, Esq.  

            
	 	 David
              Gonzalez, Esq.
	 	 	 
	 	 	 

    

    

    Columbia
      Stock Transfer Company

    

    
      	By:	
              /s/
                Michelle King  

            
	Name: 	
              Michelle
                King

            
	Title: 	
              President

            

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      I

     

    SCHEDULE
      OF BUYERS 

     

    
      
        	
                Name

              	
                Signature

              	
                Address/Facsimile
                  

                Number
                  of Buyers

              
	
                 

              	
                 

              	
                 

              
	
                YA
                  Global Investments, L.P.

              	
                By: 

              	
                Yorkville
                  Advisors, LLC

              	
                101
                  Hudson Street - Suite 3700

              
	
                 

              	
                Its: 

              	
                General
                  Partner

              	
                Jersey
                  City, NJ 07302

              
	
                 

              	
                 

              	
                Facsimile:      (201)
                  985-8266

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                By:   

              	
                /s/
                  Mark Angelo 

              	
                 

              
	
                 

              	
                Name: 

              	
                Mark
                  Angelo

              	
                 

              
	
                 

              	
                Its: 

              	
                Portfolio
                  Manager

              	
                 

              
	
                 

              	
                 

              	
                 

              

      

    

     

    
      
        
        

      

      
        
          SCHEDULE
            I-1

        

        
          

        

      

       

    

     

    EXHIBIT
      I

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF NOTICE OF EFFECTIVENESS

    OF
      REGISTRATION STATEMENT

     

    _________,
      2008

    

    ________

     

    Attention: 

    

    RE: INTREPID
      TECHNOLOGY AND RESOURCES, INC.

    

    Ladies
      and Gentlemen:

    

    We
      are
      counsel to Intrepid Technology and Resources, Inc. (the “Company”),
      and
      have represented the Company in connection with that certain Securities Purchase
      Agreement, dated as of ________________ ____, 2008 (the “Securities
      Purchase Agreement”),
      entered into by and among the Company and the Buyers set forth on Schedule
      I
      attached thereto (collectively the “Buyers”)
      pursuant to which the Company has agreed to sell to the Buyers up to $585,000
      of
      secured convertible debentures, which shall be convertible into shares (the
      “Conversion
      Shares”)
      of the
      Company’s common stock, par value $0.005 per share (the “Common
      Stock”),
      in
      accordance with the terms of the Securities Purchase Agreement. Pursuant to
      the
      Securities Purchase Agreement, the Company also has entered into a Registration
      Rights Agreement, dated as of ______________ ___, 2008, with the Buyers (the
      “Investor
      Registration Rights Agreement”)
      pursuant to which the Company agreed, among other things, to register the
      Conversion Shares under the Securities Act of 1933, as amended (the
“1933
      Act”).
      In
      connection with the Company’s obligations under the Securities Purchase
      Agreement and the Registration Rights Agreement, on _______, 200_, the Company
      filed a Registration Statement (File No. ___-_________) (the “Registration
      Statement”)
      with
      the Securities and Exchange Commission (the “SEC”)
      relating to the sale of the Conversion Shares.

     

    In
      connection with the foregoing, we advise the Transfer Agent that a member of
      the
      SEC’s staff has advised us by telephone that the SEC has entered an order
      declaring the Registration Statement effective under the 1933 Act at ____ P.M.
      on __________, 200_ and we have no knowledge, after telephonic inquiry of a
      member of the SEC’s staff, that any stop order suspending its effectiveness has
      been issued or that any proceedings for that purpose are pending before, or
      threatened by, the SEC and the Conversion Shares are available for sale under
      the 1933 Act pursuant to the Registration Statement.

     

    
      
        
        

      

      
        
          EXHIBIT
            I-1

        

        
          

        

      

      
        
        

      

    

     

    The
      Buyers has confirmed it shall comply with all securities laws and regulations
      applicable to it including applicable prospectus delivery requirements upon
      sale
      of the Conversion Shares.

     

    

    
      	 Very
              truly yours,
	 	 
	 	 
	 	 
	 	 
	By:	
                    

            

    

    
      
        
        

      

      
        
          EXHIBIT
            I-2

        

        
          

        

      

       

    

     

    EXHIBIT
      II

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF OPINION

     

    

    ________________
      200_

    

    VIA
      FACSIMILE AND REGULAR MAIL

    

    ________

     

    Attention: 

    

    RE: INTREPID
      TECHNOLOGY AND RESOURCES, INC.

    

    Ladies
      and Gentlemen:

     

    We
      have
      acted as special counsel to Intrepid Technology and Resources, Inc. (the
“Company”),
      in
      connection with the registration of ___________shares (the “Shares”)
      of its
      common stock with the Securities and Exchange Commission (the “SEC”).
      We
      have
      not acted as your counsel. This opinion is given at the request and with the
      consent of the Company.

     

    In
      rendering this opinion we have relied on the accuracy of the Company’s
      Registration Statement on Form SB-2, as amended (the “Registration
      Statement”),
      filed
      by the Company with the SEC on _________ ___, 200_. The Company filed the
      Registration Statement on behalf of certain selling stockholders (the
“Selling
      Stockholders”).
      This
      opinion relates solely
      to the
      Selling Shareholders listed on Exhibit
      “A”
      hereto
      and number of Shares set forth opposite such Selling Stockholders’ names. The
      SEC declared the Registration Statement effective on __________ ___,
      200_.

     

    We
      understand that the Selling Stockholders acquired the Shares in a private
      offering exempt from registration under the Securities Act of 1933, as amended.
      Information regarding the Shares to be sold by the Selling Shareholders is
      contained under the heading “Selling Stockholders” in the Registration
      Statement, which information is incorporated herein by reference. This opinion
      does not relate to the issuance of the Shares to the Selling Stockholders.
      The
      opinions set forth herein relate solely to the sale or transfer by the Selling
      Stockholders pursuant to the Registration Statement under the Federal laws
      of
      the United States of America. We do not express any opinion concerning any
      law
      of any state or other jurisdiction.

     

    In
      rendering this opinion we have relied upon the accuracy of the foregoing
      statements.

     

    
      
        
        

      

      
        
          EXHIBIT
            II

        

        
          

        

      

      
        
        

      

    

     

    Based
      on
      the foregoing, it is our opinion that the Shares have been registered with
      the
      Securities and Exchange Commission under the Securities Act of 1933, as amended,
      and that ________ may remove the restrictive legends contained on the Shares.
      This opinion relates solely
      to the
      number of Shares set forth opposite the Selling Stockholders listed on
Exhibit
      “A”
      hereto.

     

    This
      opinion is furnished to Transfer Agent specifically in connection with the
      sale
      or transfer of the Shares, and solely for your information and benefit. This
      letter may not be relied upon by Transfer Agent in any other connection, and
      it
      may not be relied upon by any other person or entity for any purpose without
      our
      prior written consent. This opinion may not be assigned, quoted or used without
      our prior written consent. The opinions set forth herein are rendered as of
      the
      date hereof and we will not supplement this opinion with respect to changes
      in
      the law or factual matters subsequent to the date hereof.

     

    Very
      truly yours,

    
      
        
        

      

      
        
          EXHIBIT
            II-2

        

        
          

        

      

       

    

     

    EXHIBIT
      A

     

    (LIST
      OF SELLING STOCKHOLDERS)

     

    
      	
              Name:

            	
              No.
                of Shares:

            
	 	 
	
            	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

    

     

    
      
        
        

      

      
        
          EXHIBIT
            AUnassociated Document

     

    ESCROW
      AGREEMENT

     

    This
      ESCROW
      AGREEMENT
      (the
“Agreement”)
      is
      made and entered into on March 28, 2008, by and among INTREPID
      TECHNOLOGY AND RESOURCES, INC.
      (the
      "Company"),
      YA
      GLOBAL INVESTMENTS, L.P.,
      (the
“Buyer”),
      YORKVILLE
      ADVISORS, LLC
      (“Investment
      Manager”),
      and
DAVID
      GONZALEZ, ESQ.,
      as
      escrow agent (the “Escrow
      Agent”).
      The
      Company, the Buyer, and Yorkville may be referred to individually as a
“Party”
or
      collectively as the “Parties”.
      All
      capitalized terms used herein but not defined herein shall have the meanings
      ascribed to them in that certain Securities Purchase Agreement dated March
      28,
      2008 entered into by and between the Company and the Buyer (the “Securities
      Purchase Agreement”).

     

    R
      E C I T A L S

     

    WHEREAS,
      the
      Company and the Buyer have entered into the Securities Purchase Agreement
      pursuant to which the Company shall issue and sell to the Buyer, and the Buyer
      shall purchase from the Company, certain securities (the “Securities”);

     

    WHEREAS,
      at all
      times while the Buyer holds any of the Securities, the Investment Manager shall
      perform monitoring and managing services for the Buyer in connection with the
      Buyer’s purchase and investment in the Securities and the Buyer’s rights and
      obligations under the Securities Purchase Agreement and other related documents
      and agreements, and during such time, the Investment Manager shall be paid
      on a
      monthly basis, a fee from the Buyer for services performed;

     

    WHEREAS,
      pursuant to the Securities Purchase Agreement, the Parties desire that the
      Monitoring Fees (as defined in the Securities Purchase Agreement) be deposited
      into a segregated escrow account to be held by the Escrow Agent and disbursed
      to
      the Investment Manager on a monthly basis as set forth in this Agreement as
      it
      performs its monitoring and managing services for the Buyer;

     

    WHEREAS,
      Escrow
      Agent has agreed to accept, hold, and disburse the Monitoring Fees deposited
      with it hereunder in accordance with the terms of this Agreement.

     

    A
      G R E E M E N T

     

    NOW
      THEREFORE,
      for and
      in consideration of the foregoing, the mutual covenants and agreements
      hereinafter set forth, and other good and valuable consideration, the receipt
      and sufficiency of which is hereby acknowledged, the Parties hereby agree as
      follows:

     

    1. Appointment
      of Escrow Agent.
      The
      Company, the Buyer, and the Investment Manager hereby mutually appoint and
      designate the Escrow Agent to receive, hold and release, as escrow agent, the
      Escrow Funds (as defined below) and Escrow Agent hereby accepts such appointment
      and designation, all in accordance with the terms hereof. 

     

    2. Escrow
      Delivery.
      

     

    2.1.
      Escrow
      Funds.
      Escrow
      Agent is hereby authorized and directed to use its bank account as an escrow
      account for purposes of this Agreement. The Company shall deposit into the
      Escrow Account all of the Monitoring Fees in accordance with the terms and
      conditions of Section 4(g)(ii) of the Securities Purchase Agreement (such
      Monitoring Fee funds actually deposited into the Escrow Account shall be
      referred to as the "Escrow
      Funds").
      Such
      Escrow Funds shall be wired to the following account in accordance with the
      wire
      instructions below and shall be held by Escrow Agent and released only in
      accordance with the terms of this Agreement.

     

    
      	
              Bank:

            	
              Wachovia,
                N.A. of New Jersey

            
	
              Routing
                #:

            	 
	
              Account
                #:

            	 
	
              Name
                on Account:

            	
              David
                Gonzalez Attorney Trust Account

            
	
              Name
                on Sub-Account:

            	
              Intrepid/Monitoring
                Fee

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. Conditions
      of Escrow.

     

    3.1.
      The
      Escrow Deposit.
      Escrow
      Agent shall hold the Escrow Funds until all funds have been disbursed in
      accordance with this Agreement (the “Term”)
      for
      the benefit of the Buyer. The Escrow Funds shall be deposited into the Escrow
      Account by the Company and the Buyer as set forth in the Securities Purchase
      Agreement. Upon each deposit into the Escrow Account, the Buyer shall provide
      to
      the Escrow Agent a completed Monitoring Fee Schedule in the form attached hereto
      as Exhibit A (a “Monitoring
      Fee Schedule”)
      with
      respect to such deposit into escrow setting forth the date and amount of such
      deposit and the schedule of disbursements to be made from escrow. 

     

    3.2.
      Release
      of Escrow Funds.
      The
      Escrow Agent shall disburse the Escrow Funds in accordance with the following
      procedures: 

     

    (i) The
      Escrow Agent shall disburse the designated portion of the Escrow Funds to the
      Investment Manager in the amounts and at the times set forth on the Monitoring
      Fee Schedules promptly upon receipt from the Buyer of a signed written
      instruction directing the Escrow Agent to make such disbursement. In disbursing
      Escrow Funds, the Escrow Agent is authorized to rely upon such written
      instruction from the Buyer and may accept any signatory from the Buyer that
      Escrow Agent has on file. 

     

    (ii)
       In
      the
      event that the Securities are Fully Retired (as defined in the Securities
      Purchase Agreement) prior to the full disbursement of all the Escrow Funds,
      the
      Buyer and the Company shall execute a joint written instruction directing the
      Escrow Agent to disburse the remaining Escrow Funds to the Company, or to such
      other Person as set forth in such joint written direction, provided however,
      the
      Buyer may instruct, by delivery of a signed written instruction, which the
      Buyer, in its sole determination may provide, the Escrow Agent to disburse
      all
      or a portion of the remaining Escrow Funds to the Buyer, which amount shall
      be
      credited to any fees, costs, expenses, or other amounts owed to the Buyer from
      the Company pursuant to the Securities, the Securities Purchase Agreement,
      or
      any related documents after the Securities are Fully Retired, so long as the
      Buyer first provides the Company with advanced written notice of such amounts
      owed to it and provides the Company with five business days to directly pay
      such
      amounts to the Buyer. 

     

    3.3.
      Conflict.
      If a
      controversy arises between the Parties concerning the release of the Escrow
      Funds hereunder, they shall notify Escrow Agent. In that event (or, in the
      absence of such notification, if in the good faith judgment of Escrow Agent
      such
      controversy exists), Escrow Agent shall not be required to resolve such
      controversy or take an action but shall be entitled to await resolution of
      the
      controversy by joint written instructions from the Parties or may immediately
      return the Escrow Funds to the respective Parties, in which event Escrow Agent
      shall have no further liability hereunder. If a suit is commenced against Escrow
      Agent, it may answer by way of interpleader and name the Parties as additional
      parties to such action, and Escrow Agent may tender the Escrow Funds into such
      court for determination of the respective rights, titles and interests of the
      Parties. Upon such tender, Escrow Agent shall be entitled to receive from the
      Parties its reasonable attorneys’ fees and expenses incurred in connection with
      said interpleader action or in any related action or suit. If and when Escrow
      Agent shall so interplead such Parties, or either of them, and deliver the
      Escrow Funds to the clerk of such court, all of its duties hereunder shall
      cease, and it shall have no further obligation in this regard.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    3.4.
      Cause
      of Action. The
      Company agrees and acknowledges that in no event shall it have any cause of
      action, standing, claim, or any other rights against the Buyer or the Investment
      Manager with respect written instructions provided by the Buyer or disbursements
      made to the Investment Manager in accordance with Section 3.2. hereunder.

     

    4. Escrow
      Agent.
      

     

    4.1.
      Liability
      of Escrow Agent.
      The
      Parties acknowledge, understand and agree that Escrow Agent has accepted Escrow
      Agent’s appointment under this Agreement and shall perform and satisfy Escrow
      Agent’s duties, liabilities and obligations under this Agreement only as an
      accommodation to the Parties. The Parties, jointly and severally, hereby
      indemnify Escrow Agent and each representative of Escrow Agent and hereby agree
      to hold Escrow Agent and each such representative free and harmless from and
      to
      defend and protect Escrow Agent and such representative against any claim made,
      asserted or threatened against Escrow Agent or such representative (including
      any such claim made, asserted or threatened by the Parties), and any claim
      incurred by Escrow Agent or such representative, excluding, however, any claim
      arising from the gross negligence, willful misconduct, criminal conduct or
      intentionally tortuous conduct of Escrow Agent or such representative.

     

    4.2.
      Proceeding.
      Escrow
      Agent, in Escrow Agent’s sole discretion, may commence any judicial proceeding
      necessary or appropriate to determining the respective rights of the Parties
      under this Agreement or to interpreting or enforcing any term, condition or
      other provision of this Agreement. The Parties shall jointly and severally
      be
      liable for any and all costs and expenses (including attorneys fees, expert
      witness fees, accounting fees and related costs) incurred by Escrow Agent in
      connection with such proceeding.

     

    5. Termination. This
      Agreement shall be terminated upon the occurrence of any one of the following:
      (i) the release of all the Escrow Funds in accordance with the terms and
      conditions of Section 3
      hereof;
      or (ii) otherwise by written mutual consent signed by the Parties.

     

    6. Notice.
      All
      notices, demands, requests, or other communications which may be or are required
      to be given, served or sent by any of the Parties or the Escrow Agent to any
      other party pursuant to this Agreement shall be in writing and shall be hand
      delivered (including delivery by courier), sent by facsimile, sent by a
      nationally recognized overnight delivery service, or mailed by first-class,
      registered or certified mail, return receipt requested, postage prepaid,
      addressed to the parties last known address or such other address as the
      addressee may indicate by written notice to the other Parties or the Escrow
      Agent. Each notice, demand, request or communication that is given or made
      in
      the manner described above shall be deemed sufficiently given or made for all
      purposes at such time as it is delivered to the addressee (with the return
      receipt, the delivery receipt or the affidavit of messenger being deemed
      conclusive but not exclusive evidence of such delivery) or at such time as
      delivery is refused by the addressee upon presentation.

     

    7. Benefit
      and Assignment.
      None of
      the Parties may assign this Agreement without the prior written consent of
      all
      Parties and the Escrow Agent. This Agreement shall be binding upon and shall
      inure to the benefit of the parties hereto and their respective successors
      and
      assigns as permitted hereunder. No person or entity other than the Parties
      and
      their respective successors and assigns is or shall be entitled to bring any
      action to enforce any provision in this Agreement against any of the Parties,
      and the covenants and agreements set forth in this Agreement shall be solely
      for
      the benefit of, and shall be enforceable only by, the Parties or their
      respective successors and assigns.

     

    8. Entire
      Agreement; Amendment.
      This
      Agreement, along with the Purchase Agreement and any other agreement executed
      on
      the date hereof between the Parties, contains the entire agreement among the
      parties with respect to the subject matter hereof and supersedes all prior
      oral
      or written agreements, commitments or understandings with respect to such
      matters. This Agreement may not be changed orally, but only by an instrument
      in
      writing signed by the Party against whom enforcement of any waiver, change,
      modification, extension or discharge is sought.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    9. Headings.The
      headings of the sections and subsections contained in this
      Agreement are inserted for convenience only and do not form a part or affect
      the
      meaning, construction or scope thereof.

     

    10. Governing
      Law; Venue.
      This
      Agreement shall be governed and constructed under and in accordance with the
      laws of the State of New Jersey (but not including the conflicts of laws and
      rules thereof). For purposes of any action or proceeding involving this
      Agreement each of the parties to this Agreement expressly submits to the
      jurisdiction of the federal and state courts located in the State of New Jersey
      and consents to the service of any process or paper by registered mail or by
      personal service within or without the State of New Jersey in accordance with
      applicable law, provided a reasonable time for appearance is allowed. Each
      Party
      hereby acknowledges that Hudson County, New Jersey is the proper venue for
      any
      action brought hereunder.

     

    11. Signature
      in Counterparts.
      This
      Agreement may be executed in separate counterparts, none of which need contain
      the signature of all parties, each of which shall be deemed to be an original
      and all of which taken together constitute one and the same instrument. It
      shall
      not be necessary in making proof of this Agreement to produce or account for
      more than the number of counterparts containing the respective signatures of,
      or
      on behalf of, all of the parties hereto.

     

    12. Attorney’s
      Fees.
      Should
      any action be commenced between any of the Parties concerning the matters set
      forth in this Agreement or the right and duties of any other Party in relation
      thereto, the prevailing Party in such action shall be entitled, in addition
      to
      such other relief as may be granted, to a reasonable sum as and for its
      attorney's fees and costs; except that Escrow Agent’s attorney’s fees and costs
      incurred in connection with disputes arising hereunder between Company, the
      Buyer, and the Investment Manager shall be paid by Company, the Buyer and the
      Investment Manager as otherwise provided herein.

     

    13. Conflict
      Waiver.
      The
      Company hereby acknowledge that the Escrow Agent is general counsel to the
      Buyer, a partner of the Investment Manager and counsel to both the Buyer and
      the
      Investment Manager in connection with the transactions contemplated and referred
      herein. The Company agrees that in the event of any dispute arising in
      connection with this Agreement or otherwise in connection with any transaction
      or agreement contemplated and referred herein, the Escrow Agent shall be
      permitted to continue to represent the Buyer and the Investment Manager and
      the
      Company will not seek to disqualify such counsel. The Company waives any right
      to seek the disqualification of Escrow Agent to act as legal counsel to the
      Buyer or the Investment Manager as a result of Escrow Agent’s duties hereunder.
      The Buyer and the Investment Manager hereby consents to Escrow Agent acting
      as
      escrow agent pursuant to the terms of this Agreement and hereby acknowledge
      that
      in so acting, Escrow Agent shall be bound to act in accordance with this
      Agreement and not in the best interest of the Buyer or the Investment Manager
      and may be required to enforce its rights under this Agreement against the
      Buyer
      or the Investment Manager. The Buyer or the Investment Manager further
      acknowledges and agrees that all communication delivered to Escrow Agent in
      furtherance of this Agreement or Escrow Agent’s duties hereunder may not be kept
      confidential by Escrow Agent and may not be protected by the attorney-client
      privilege. The Buyer or the Investment Manager hereby waive the conflict of
      interest and any potential conflict of interest that may arise as a result
      of
      Escrow Agent’s performance of its duties or exercise of its rights under this
      Agreement. 

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      each of
      the parties has caused this Agreement to be duly executed and delivered in
      its
      name and on its behalf, all as of the date and year first above
      written.

     

    “Company”

     

    Intrepid
      Technology and Resources, Inc.

    

    By: /s/
      Jacob D. Dustin              

    Name:
       Jacob
      D.
      Dustin

    Title:
       President

     

    “Buyer”

    

    YA
      Global Investments, L.P.

    

    By:
      Yorkville Advisors, LLC

    Its:
      Investment Manager

    

    By:
/s/
      Mark Angelo                

    Name:
      Mark Angelo

    Title:
      Portfolio Manager

     

    “Investment
      Manager”

    

    Yorkville
      Advisors, LLC

    

    By:
      /s/
      Mark Angelo                 

    Name:
      Mark Angelo

    Title:
      Portfolio Manager

     

    “Escrow
      Agent”

     

    By: /s/
      David Gonzalez, Esq.            

    Name:
       David
      Gonzalez, Esq.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    MONITORING
      FEE SCHEDULE 

     

    To: Escrow
      Agent

    

    In
      accordance with the Agreement, upon each deposit into the Escrow Account, the
      Buyer shall provide to the Escrow Agent a completed Monitoring Fee Schedule
      with
      respect to such deposit into escrow setting forth the date and amount of such
      deposit and the Schedule of Disbursements to be made to the Investment Manager
      from the Escrow Account. Below please find the Monitoring Fee Schedule in
      connection with the Monitoring Fee to be deposited into the Escrow Account
      pursuant to a Closing under the Securities Purchase Agreement: 

     

    Part
      I. Deposits of Monitoring Fee Into Escrow Account

     

    
      
        	
                Deposit
                  Into Escrow Account

              	
                $55,000.00

              	
                Date
                  of Deposit

              	
                 

              

      

    

    

    Part
      II. Schedule of Disbursements to Investment Manager From Escrow
      Account

    

    
      	
              Disbursement
                Date

            	
              Disbursement

              Amount

            	
              Remaining
                Escrow

              Funds

            
	 	
              $30,000
                

            	
              $25,000
                

            
	 	
              $1,086.96
                

            	
              $23,913.04
                

            
	 	
              $1,086.96
                

            	
              $22,826.08
                

            
	 	
              $1,086.96
                

            	
              $21,739.12
                

            
	 	
              $1,086.96
                

            	
              $20,652.16
                

            
	 	
              $1,086.96
                

            	
              $19,565.20
                

            
	 	
              $1,086.96
                

            	
              $18,478.24
                

            
	 	
              $1,086.96
                

            	
              $17,391.28
                

            
	 	
              $1,086.96
                

            	
              $16,304.32
                

            
	 	
              $1,086.96
                

            	
              $15,217.36
                

            
	 	
              $1,086.96
                

            	
              $14,130.40
                

            
	 	
              $1,086.96
                

            	
              $13,043.44
                

            
	 	
              $1,086.96
                

            	
              $11,956.48
                

            
	 	
              $1,086.96
                

            	
              $10,869.52
                

            
	 	
              $1,086.96
                

            	
              $9,782.56
                

            
	 	
              $1,086.96
                

            	
              $8,695.60
                

            
	 	
              $1,086.96
                

            	
              $7,608.64
                

            
	 	
              $1,086.96
                

            	
              $6,521.68
                

            
	 	
              $1,086.96
                

            	
              $5,434.72
                

            
	 	
              $1,086.96
                

            	
              $4,347.76
                

            
	 	
              $1,086.96
                

            	
              $3,260.80
                

            
	 	
              $1,086.96
                

            	
              $2,173.84
                

            
	 	
              $1,086.96
                

            	
              $1,086.88
                

            
	 	
              $1,086.88
                

            	
              $0.00
                

            

    

    

    
      
         

      

      
        6

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