Document:

Exhibit

SECOND AMENDED AND RESTATED
AMERICAN AXLE & MANUFACTURING, INC.
INCENTIVE COMPENSATION PLAN FOR EXECUTIVE OFFICERS
(Amended as of January 1, 2016)

ARTICLE 1
DEFINITIONS

When used in the Plan, the following words and phrases shall have the following meanings unless the context clearly indicates another meaning:

1.1    Administrator means the Management Benefits Committee acting through the Corporate Human Resources Department, as set forth in Article 5.

1.2    Affiliated Employer means any of the following that, with the consent of the Compensation Committee, adopt the Plan as provided in Sec. 6.1:

		
	(i)
	any of the other corporations which are members of a controlled group of corporations (as defined in Code Section 414(b)) which includes the Company;  

		
	(ii)
	any trade or business (whether or not incorporated) which is under common control (as defined in Code Section 414(c)) with the Company;  

		
	(iii)
	any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Section 414(m)) which includes the Company;  

		
	(iv)
	any other entity required to be aggregated with the Company pursuant to Regulations under Code Section 414(o).

1.3    Average Invested Capital means the simple average of Invested Capital as of January 1 and Invested Capital as of December 31 of the Plan Year in question.

1.4    Base Salary means a Participant’s monthly gross regular rate of pay from the Company as of December 1 of a Plan Year or on the date of a Participant’s death, Disability, Retirement or employment by an Affiliated Employer who has not adopted the Plan, if earlier, before any required reductions or withholdings or reductions under any salary reduction agreement between a Participant and the Company.  Base Salary shall not include overtime, bonuses, compensation paid in kind, special allowances or reimbursements to cover expenses paid or incurred on behalf of the Company or in the course of employment with the Company, the Company’s contribution to this Plan or to any pension or profit sharing plan to which the Company makes contributions, or the Company’s contribution to any employee welfare plan or arrangement.

1.5    Beneficiary means the Participant’s legal spouse, if married, otherwise the beneficiary or beneficiaries designated by a Participant as such in connection with the group term life insurance program maintained by the Company for Eligible Employees as in effect at the time of the Participant’s death.  If no beneficiary is so designated, a Participant’s beneficiary shall be his or her estate.

1.6    Board means the Board of Directors of American Axle & Manufacturing Holdings, Inc.

1.7    Bonus Award means a bonus award under this Plan determined in accordance with Article 3.

1.8    Bonus Factors means Return on Invested Capital (ROIC), Cash Flow as a Percentage of Budgeted Cash Flow, Net Income as a Percentage of Sales (NIPS) and Operating Income Margin, each as defined herein.

1.9    Budgeted Cash Flow means the anticipated Cash Flow as set forth in the Company’s budget for the Plan Year in question, as approved by the Board.

1.10    Cash Flow means the cash provided by and used in the Company’s operating activities for the Plan Year in question less the Company’s capital expenditures net of proceeds from the sale of property, plant and equipment and from government grants (as applicable) for the Plan Year in question, all as determined by the Company in accordance with generally accepted accounting principles (GAAP) and as reported in the Company's audited consolidated financial statements for the Plan Year.

1.11    Cash Flow as a Percentage of Budgeted Cash Flow means one of the Bonus Factors which, for a particular Plan Year, is computed as the Company’s Cash Flow for that year divided by the Company’s Budgeted Cash Flow for that year.

1.12    CEO means the Chief Executive Officer of Holdings.

1.13    CFO means the Chief Financial Officer of Holdings.

1.14    Company means American Axle & Manufacturing, Inc., a Delaware corporation.

1.15    Compensation Committee means the Compensation Committee of the Board.

1.16    Covered Earnings means a Participant’s Base Salary multiplied by his or her Months of Participation during a Plan Year.

1.17    Disability means disability as defined in the short-term disability plan maintained by the Company for Eligible Employees as in effect on the date of disability.

1.18    Eligible Employee means an Executive Officer designated as an Eligible Employee by the CEO. 
 
1.19    Executive Officer means “executive officer” of the Company or Holdings as defined in Section 16 of the Securities Exchange Act of 1934 and the rules thereunder, as determined by the CEO.
 
1.20    GAAP means generally accepted accounting principles in the United States.
 
1.21    Holdings means American Axle & Manufacturing Holdings, Inc., the publicly held parent corporation of the Company.

1.22    Invested Capital means the sum of the Company's long-term debt, less cash and cash equivalents, plus stockholders' equity, all as determined in accordance with GAAP.

1.23    Management Benefits Committee means the Management Benefits Committee authorized by the Compensation Committee to administer the Plan.

1.24    Month of Participation means each full or partial month during which an employee of the Company or an Affiliated Employer is an Eligible Employee.  An Eligible Employee who, during the Plan Year, dies, Retires, incurs a Disability, or is employed by an Affiliated Employer who has not adopted the Plan and who remains an employee of such Affiliated Employer through the Payment Date, will be credited with his or her Months of Participation through the month of death, Retirement, Disability or transfer but not thereafter.
  
1.25    Net Income means the net income of Holdings as determined in accordance with GAAP and as reported in the audited consolidated financial statements of Holdings.

1.26    NIPS means net income as a percentage (%) of sales.  NIPS is computed as the net income for the Plan Year in question divided by the net sales for the Plan Year in question, all as determined by Holdings in accordance with GAAP and as reported in Holdings’ audited consolidated financial statements for the Plan Year.

1.27    Operating Income means the operating income of Holdings as determined in accordance with GAAP and as reported in the audited consolidated financial statements of Holdings.

1.28    Operating Income Margin means operating income as a percentage (%) of sales. Operating Income Margin is computed as the operating income for the Plan Year in question divided by the net sales for the Plan Year in question, all as determined by Holdings in accordance with GAAP and as reported in Holdings’ audited consolidated financial statements for the Plan Year.

1.29    Participant means an individual who is eligible to receive a Bonus Award in a Plan Year in accordance with Article 2. 

1.30    Payment Date means the date or dates on which Bonus Awards under the Plan are paid to Participants as determined in accordance with Section 4.1 hereof.

1.31     Peer Group Companies means the companies identified by Holdings and reported as members of a competitor peer group for purposes of comparison of cumulative total stockholder return pursuant to Item 201(e) of Regulation S-K. 

1.32    Plan means this Amended and Restated American Axle & Manufacturing, Inc. Incentive Compensation Plan for Executive Officers.

1.33    Plan Year means the 12-month period beginning on January 1 and ending on December 31 of each year.

1.34    Retire or Retirement means termination of employment while entitled to an early, normal, or late retirement benefit under the Salaried Pension Plan.

1.35    ROIC means return on invested capital and is computed as the sum of Holdings’ net income and after-tax net interest expense for the Plan Year in question, which sum is divided by Average Invested Capital for the Plan Year in question, all as determined in accordance with GAAP and as set forth in Holdings’ audited consolidated financial statements for the Plan Year.

1.36    Salaried Pension Plan means the American Axle & Manufacturing, Inc. Retirement Program for Salaried Employees or other retirement plans sponsored by the Company or Affiliated Employers, as adopted or amended from time to time.

1.37    Target Performance Levels means performance levels determined as follows:
		
	a.
	in the case of the Bonus Factors:

		
	1.
	for ROIC,  NIPS and Operating Income Margin, Target Performance Levels are financial performance targets that are intended to, among other things,  exceed the performance of one-half of the Peer Group Companies (based on the most recent trailing 3-year data available) and align with the Board-approved budget; and

		
	2.
	for Cash Flow as a Percentage of Budgeted Cash Flow, the Target Performance Level means achievement of 100% of Budgeted Cash Flow for the Company in the Plan Year in question.

 
The Target Performance Level for each Bonus Factor (as applicable) is established and approved by the Compensation Committee for each Plan Year.
    
1.38    Weighted Percentage means the percentage allocation (relative weighting) assigned to each of the Bonus Factors referred to in Article 3 for each Plan Year, as approved by the Compensation Committee in consultation with the CEO and CFO.

ARTICLE 2
PARTICIPATION

2.1    Participation. An individual who becomes an Eligible Employee before October 1 of a Plan Year shall be a Participant for such Plan Year.  An individual who becomes an Eligible Employee on or after October 1 of a Plan Year shall not be a Participant for such Plan Year, but shall become a Participant for the next succeeding Plan Year on January 1 of such next succeeding Plan Year in the event and to the extent such individual remains an Eligible Employee continuously into such succeeding Plan Year.
  
2.2    Eligibility.  Each Participant:

		
	a.
	who remains an Eligible Employee through the last day of a Plan Year and continuously throughout the next succeeding Plan Year up to and including the Payment Date;  or

 
		
	b.
	whose participation in the Plan terminated during the Plan Year due to the Participant’s:

		
	i.
	death;  or

		
	ii.
	Disability;  or

		
	iii.
	Retirement;  or 

		
	iv.
	employment by an Affiliated Employer who has not adopted the Plan, provided the Participant remains employed by such Affiliated Employer through the Payment Date or the Participant’s employment by the Affiliated Employer terminates due to the Participant’s death, Disability, 

or Retirement or subsequent employment by another Affiliated Employer.
 
shall be entitled to receive a Bonus Award, except as otherwise provided herein.

ARTICLE 3
CALCULATION OF BONUS AWARDS

3.1    Bonus Award Formula.  The Bonus Award of an Executive Officer for a particular Plan Year shall be determined pursuant to this Article 3 and shall be equal to the sum of the amounts calculated under sub-sections (a) - (d) below:
 
		
	(a)
	ROIC.  The ROIC component of the bonus award formula for Executive Officers shall be computed as follows, referring to the Target Performance Levels approved by the Compensation Committee for the Plan Year:

		
	1.
	The bonus award percentage for Executive Officers which corresponds to the ROIC for the Plan Year;  

		
	2.
	multiplied by the Weighted Percentage assigned to the ROIC Bonus Factor for Executive Officers;

		
	3.
	multiplied by the Covered Earnings of the Executive Officer for the Plan Year; PLUS

		
	(b)
	Cash Flow.  The Cash Flow as a Percentage of Budgeted Cash Flow component of the bonus award formula for Executive Officers shall be computed as follows, referring to the Target Performance Levels approved by the Compensation Committee for the Plan Year:

		
	1.
	the bonus award percentage for Executive Officers which corresponds to the Cash Flow for the Plan Year;

		
	2.
	multiplied by the Weighted Percentage assigned to the Cash Flow as a Percentage of Budgeted Cash Flow Bonus Factor for Executive Officers;

		
	3.
	multiplied by the Covered Earnings of the Executive Officer for the Plan Year; PLUS

		
	(c)
	NIPS.  The NIPS component of the bonus award formula for Executive Officers shall be computed as follows, referring to the Target Performance Levels approved by the Compensation Committee for the Plan Year: 

 
		
	1.
	the bonus award percentage for Executive Officers which corresponds to Net Income as a % of Sales (NIPS) for the Plan Year;

		
	2.
	multiplied by the Weighted Percentage assigned to NIPS for Executive Officers;

  

		
	3.
	multiplied by the Covered Earnings of the Executive Officer for the Plan Year; PLUS

		
	(d)
	Operating Income Margin. The Operating Income Margin component of the bonus award formula for Executive Officers shall be computed as follows, referring to the Target Performance Levels approved by the Compensation Committee for the Plan Year: 

 
		
	1.
	the bonus award percentage for Executive Officers which corresponds to Operating Income Margin for the Plan Year;

		
	2.
	multiplied by the Weighted Percentage assigned to Operating Income Margin for Executive Officers;

  
		
	3.
	multiplied by the Covered Earnings of the Executive Officer for the Plan Year.

3.2    Weighted Percentages.  Each Plan Year the Compensation Committee, in consultation with the CEO and CFO, shall assign a Weighted Percentage to each of the Bonus Factors.  For purposes of determining Bonus Awards for Executive Officers, the Weighted Percentages for each of the Bonus Factors must total 100%.  A list setting forth all Weighted Percentages for each of the Bonus Factors shall be established for each Plan Year based on the recommendation of the CEO and CFO and approval of the Compensation Committee.
  
3.3    Individual Performance Adjustments.  Anything in this Plan to the contrary notwithstanding, the amount of a Participant’s Bonus Award for a given Plan Year shall be subject to review and adjustment by the CEO, who shall have the discretion to increase, decrease, or eliminate entirely (“Individual Performance Adjustments”) any Bonus Award determined pursuant to this Article 3; provided, however, that the amount of an Executive Officer’s Bonus Award must be approved by the Compensation Committee and the sum of all Bonus Awards for all Participants in a Plan Year may not exceed the maximum annual amount allocated for Bonus Award payments as such amount is determined each Plan Year by the Compensation Committee.
 
3.4    Effect of Plan on Other Company Policies and Programs.

(a)    Company Programs.  Unless otherwise expressly approved by the Compensation Committee, a Participant shall have his or her Bonus Award under this Plan for any Plan Year, if any, reduced by any performance-based compensation paid or payable to him or her by the Company for such Plan Year pursuant to any other Company program, policy or agreement.  Notwithstanding the foregoing, a Participant’s Bonus Award shall not be reduced by any deferred compensation payments or obligations applicable to such Participant for such Plan Year.

(b)    Recoupment Policy.  Bonus Awards paid pursuant to this Plan shall be subject to any clawback, recoupment or similar policy as permitted or mandated by applicable law, rules, regulations or any such Company policy as adopted or modified from time to time.

3.5    Requirement of Profitability.  Except as provided in Section 3.6 below, no Bonus Award shall be payable pursuant to this Plan to any Participant for any Plan Year in which Holdings’ audited consolidated financial statements contained in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for such Plan Year (or approved for filing with the SEC by the Board if such filing has not yet occurred) do not report positive Net Income for the Plan Year in question after reflecting all costs and expenses associated with the Plan for such Plan Year.

3.6    Certain Adjustments.  Notwithstanding anything contained in the Plan to the contrary, the amount of any or all Bonus Awards payable for any Plan Year may be adjusted upwards or downwards by the Compensation Committee in the event the Compensation Committee determines in its discretion that the achievement of one or more Bonus Factors relative to the corresponding Target Performance Levels for such Plan Year does not accurately reflect the true performance of the Company due to (a) the inclusion of unanticipated special charges or gains, (b) unanticipated industry-wide factors affecting Company performance, or (c) unanticipated customer decisions affecting Company Performance.

ARTICLE 4
PAYMENT OF BONUS AWARD

4.1    Time and Manner of Payment.  Payment of a Participant’s Bonus Award for a Plan Year shall be made not later than March 15 of the subsequent year.  Provided, however, that if the employment of a Participant by the Company shall terminate during a Plan Year, or prior to March 15 of the subsequent year, for a reason other than his or her death, Disability, Retirement or employment by an Affiliated Employer (so long as such Participant remains employed by the Affiliated Employer on the Payment Date or terminated employment with the Affiliated Employer due to such Participant’s death, disability, or Retirement as determined pursuant to the Affiliated Employer’s applicable disability or Retirement plan) prior to receiving payment of such Bonus Award, the Participant shall forfeit all rights to a Bonus Award in such Plan Year and no Bonus Award shall be paid to such Participant for such Plan Year.  Notwithstanding any provision of the Plan to the contrary, the Company shall withhold from any Bonus Award all federal, state and local taxes as shall be required pursuant to any law or governmental regulation or ruling, any amounts owed by the Participant to the Company to the extent permitted by law, and any amounts otherwise required to be withheld or deducted under applicable law or by agreement of the Company and the Participant.

ARTICLE 5
ADMINISTRATION, AMENDMENT AND TERMINATION

5.1    Authority of Administrator.  The Management Benefits Committee shall monitor the performance of the Plan to ensure that it is administered by the Human Resources Department in accordance with its terms and applicable laws and regulations. Except as otherwise expressly stated, the Compensation Committee, or such other committee, including the Management Benefits Committee, to which it delegates such authority, shall have the full power, discretion and authority to construe, interpret and administer the Plan, including authority to correct any defect or reconcile any inconsistency or ambiguity. All decisions, acts or interpretations of the Compensation Committee shall be final, conclusive and binding upon all persons.  No member of the Compensation Committee, the Management Benefits Committee or any other committee to which Plan administrative authority has been delegated, shall be personally liable by reason of any action 

taken by him or her in good faith or on his or her behalf as Administrator, nor for any mistake in judgment made in good faith and the Company and Holdings shall indemnify and hold harmless each member of the Compensation Committee, the Management Benefits Committee, the CEO, the CFO, and each other executive officer, employee or director of the Company to whom any duty or power relating to the Plan, or its administration or interpretation, may be delegated, against any cost or expense (including legal fees) or liability (including any sum paid in settlement of a claim with the approval of the Board) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or bad faith.

5.2    Amendment and Termination.  The Compensation Committee may at its discretion amend this Plan in any respect at any time and for any reason and may terminate the Plan, in whole or in part, at any time and neither notice of amendment nor of termination is necessary for any amendment or termination to be effective. Any amendment or termination of the Plan may be made effective retroactively to the first day of the Plan Year or, in the case of an amendment or termination of the Plan adopted on or before March 15, the first day of the preceding Plan Year.  No Participant or Beneficiary shall be deemed to have a vested or contractual right to a Bonus Award until such Bonus Award is actually paid to the Participant or Beneficiary by the Company. The payment of Bonus Awards pursuant to this Plan is completely discretionary on the part of the Company. The existence of this Plan shall create no rights on behalf of Participants or Beneficiaries or obligations on behalf of the Company or any Affiliated Employer.

ARTICLE 6
AFFILIATED EMPLOYERS

6.1    Adoption of Plan by Affiliated Employers.  Any Affiliated Employer may, with the recommendation of the Management Benefits Committee and the approval of the Compensation Committee, adopt this Plan on behalf of such of its Executive Officers. The Affiliated Employer shall pay all Bonus Awards made to Executive Officers which are payable because of their employment with the Affiliated Employer.  

ARTICLE 7
MISCELLANEOUS

7.1    Compliance with Financing Agreements.  This Plan may be subject to the terms and conditions of any agreements entered into between the Company and any third party lender to whom the Company is now indebted, or may at any time during the term of this Plan become indebted, and the Bonus Awards for any Plan Year may be reduced by such amounts as may be necessary to ensure that the Company is not in default under any such agreements.

7.2    No Right, Title or Interest in or to the Company’s Assets.  Neither Participants nor Beneficiaries shall have any right, title or interest whatsoever in or to any investments which the Company may make to aid it in meeting its obligations under this Plan.  Nothing contained in the Plan and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between Holdings or the Company and any Participant, Beneficiary or any other person.  All payments to be made under this Plan shall be paid from the general assets of the Company.
    

7.3    No Alienation of Bonus Awards.  Except as otherwise may be required by law, no amount payable at any time under this Plan shall be subject in any manner to alienation by anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment, charge or encumbrance of any kind, nor in any manner be subject to the debts or liabilities of any person, and any attempt to so alienate or subject any such amount, whether presently or thereafter payable, shall be void.

7.4    No Contract of Employment.  Neither the actions of the Company in establishing this Plan, nor any provisions of this Plan or any action taken by Holdings, any Affiliated Employer, the Compensation Committee, the Administrator or the CEO pursuant to its provisions, shall be construed as giving to any Eligible Employee or any employee the right to be employed by the Company or affect the right of the Company to dismiss any employee.
    
7.5    2012 Omnibus Incentive Plan.  This Plan and any Bonus Award granted hereunder shall be subject in their entirety to the terms and conditions of the Amended & Restated American Axle & Manufacturing Holdings, Inc. 2012 Omnibus Incentive Plan.

7.6    Governing Law.  This Plan shall be governed by and construed in accordance with the laws of the State of Michigan without giving effect to the conflict of laws provisions thereof.EXHIBIT 10.1

 

INDEMNIFICATION AGREEMENT

 

 

THIS AGREEMENT is made
and entered into as of the ___ day of ________, 2016, (this “Agreement”) by and between DGSE Companies, a Nevada corporation
(the “Company”), and ______________________ (“Indemnitee”).

 

Recitals:

 

WHEREAS, highly
competent persons have become more reluctant to serve publicly-held corporations as directors or officers or in other capacities
unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims
and actions against them arising out of their service to, and activities on behalf of, the corporation; this is because such persons
in service to corporations are being increasingly subjected to expensive and time-consuming litigation relating to, among other
things, matters that traditionally would have been brought only against the corporation or business enterprise itself; and

 

WHEREAS, the
Board of Directors of the Company (the "Board") has determined that, to attract and retain qualified individuals, the
Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company
and its subsidiaries from certain liabilities; and

 

WHEREAS, the
Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests
of the Company's stockholders and that the Company should act to assure such persons that there will be increased certainty of
such protection in the future; and

 

WHEREAS, it
is reasonable, prudent and necessary for the Company to obligate itself contractually to indemnify, and to advance expenses on
behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so indemnified; and

 

WHEREAS, this
Agreement is a supplement to and in furtherance of the Bylaws of the Company and any resolutions adopted pursuant thereto, and
shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and

 

WHEREAS, each
of Sections 78.7502 and 78.751 of the Nevada General Corporation Law (“NGCL”) is nonexclusive, and therefore contemplates
that contracts may be entered into with respect to indemnification of directors, officers and employees; and

 

WHEREAS, Indemnitee
is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that
he be so indemnified;

 

NOW, THEREFORE,
in consideration of the premises and the covenants contained herein, the Company and Indemnitee hereby covenant and agree as follows:

 

    		-1-	 

     

    

 

Section 1.Services by
Indemnitee. Indemnitee agrees to serve or continue to serve as a director and/or officer of the Company. Indemnitee may at
any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by
operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position.
This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries) and Indemnitee. This
Agreement shall continue in force after Indemnitee has ceased to serve as a director or officer of the Company.

 

Section 2.Indemnification
and Advancement - General. The Company shall indemnify, and advance Expenses (as hereinafter defined) to, Indemnitee (a) as
provided in this Agreement and (b) to the fullest extent permitted by applicable law in effect on the date hereof and as amended
from time to time. The rights of Indemnitee provided under the preceding sentence shall include, but shall not be limited to, the
rights set forth in the other Sections of this Agreement.

 

Section 3.Proceedings
Other Than Proceedings by or in the Right of the Company. Indemnitee shall be indemnified under this Section 3 if, by reason
of his Corporate Status (as hereinafter defined), he is, or is threatened to be made, a party to or a participant in any threatened,
pending, or completed Proceeding (as hereinafter defined), other than a Proceeding by or in the right of the Company. Pursuant
to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, penalties, fines and amounts paid in settlement
actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein,
if he acted in Good Faith.

 

Section 4.Proceedings
by or in the Right of the Company. Indemnitee shall be indemnified under this Section 4 if, by reason of his Corporate Status,
he is, or is threatened to be made, a party to or a participant in any threatened, pending or completed Proceeding brought by or
in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against
all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding if he acted in Good Faith;
provided that if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue
or matter in such Proceeding as to which Indemnitee shall have been adjudged by a court of competent jurisdiction after exhaustion
of all appeals therefrom, to be liable to the Company unless and to the extent that the court in which such Proceeding shall have
been brought or is pending, shall determine that such indemnification may be made.

 

Section 5.Indemnification
for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is, by reason of his Corporate Status, a party to (or a participant in) and is successful, on the merits or otherwise,
in any Proceeding, he shall be indemnified to the maximum extent permitted by law against all Expenses actually and reasonably
incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful,
on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully
resolved claim, issue or matter. For purposes of this Section and without limitation, the termination of any claim, issue or matter
in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue
or matter.

 

    		-2-	 

     

    

 

Section 6.Indemnification
for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses
actually and reasonably incurred by him or on his behalf in connection therewith.

 

Section 7.Mandatory Advancement
of Expenses. Notwithstanding any provision of this Agreement to the contrary, the Company shall advance all Expenses incurred
by or on behalf of Indemnitee in connection with any Proceeding in which Indemnitee is involved by reason of Indemnitee's Corporate
Status within 10 days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or
advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee. Indemnitee hereby undertakes to repay any Expenses advanced if it shall
ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. Such undertaking is an unsecured
obligation of Indemnitee and shall not bear interest.

 

Section 8.Procedure for
Determination of Entitlement to Indemnification.

 

(a)To obtain indemnification under
this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and
information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee
is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification,
advise the Board in writing that Indemnitee has requested indemnification.

 

(b)Upon written request by Indemnitee
for indemnification pursuant to Section 8(a) hereof, a determination, if required by applicable law, with respect to Indemnitee's
entitlement thereto shall be made in the specific case: (i) if a Change in Control shall have occurred, the Disinterested Directors
shall direct Independent Counsel to make such determination in a written opinion to the Board of the Company, a copy of which shall
be delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested
Directors, even though less than a quorum of the Board of the Company, or (B) by a committee of the Disinterested Directors designated
by a majority vote of Disinterested Directors, even though less than a quorum, or (C) if there are no Disinterested Directors or,
if the Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board of the Company, a copy of which
shall be delivered to Indemnitee; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee
shall be made within 10 days after such determination. Any costs or expenses (including attorneys' fees and disbursements) incurred
by Indemnitee in cooperating with the person, persons or entity making the determination discussed in this Section 8(b) with respect
to Indemnitee's entitlement to indemnification, shall be borne by the Company (irrespective of the determination as to Indemnitee's
entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

    		-3-	 

     

    

 

(c)In the event the determination
of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 8(b) hereof, the Independent Counsel
shall be selected as provided in this Section 8(c). If a Change in Control shall not have occurred, the Independent Counsel shall
be selected by the Board of the Company, and the Company shall give written notice to Indemnitee advising him of the identity of
the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee
(unless Indemnitee shall request that such selection be made by the Board of the Company, in which event the preceding sentence
shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so
selected. In either event, Indemnitee or the Company, as the case may be, may, within 10 days after such written notice of selection
shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided,
however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements
of “Independent Counsel” as defined in this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such
written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless
and until such objection is withdrawn or a court has determined that such objection is without merit. If, within 20 days after
submission by Indemnitee of a written request for indemnification pursuant to Section 8(b) hereof, no Independent Counsel shall
have been selected and not objected to, either the Company or Indemnitee may petition a Texas Court (as defined herein) for resolution
of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or
for the appointment as Independent Counsel of a person selected by the Texas Court or by such other person as the Texas Court shall
designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent
Counsel under Section 8 hereof.

 

(d)Indemnitee will be deemed a
party to a Proceeding for all purposes hereof if Indemnitee is named as a defendant or respondent in a complaint or petition for
relief in that Proceeding, regardless of whether Indemnitee is ever served with process or makes an appearance in that Proceeding.

 

(e)The Company shall not be required
to obtain the consent of Indemnitee to the settlement of any Proceeding the Company has undertaken to defend, which consent shall
not be unreasonably withheld or delayed. The Company shall not be liable for any amount paid by the Indemnitee in settlement of
any Proceeding that is not defended by the Company, unless the Company has consented to such settlement, which consent shall not
be unreasonably withheld or delayed.

 

Section 9.Presumptions;
Reliance and Effect of Certain Proceedings.

 

(a)In making a determination with
respect to entitlement to indemnification hereunder, the person, persons or firm making such determination shall presume that Indemnitee
is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with
Section 8(a), and the Company shall have the burden of proof to overcome that presumption in connection with the making by any
person, persons or firm of any determination contrary to that presumption. Neither the failure of Independent Legal Counsel to
have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in
the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination thereby that Indemnitee
has not met such applicable standard of conduct, shall be a defense to the action or create a presumption or be evidence that Indemnitee
has not met the applicable standard of conduct.

 

    		-4-	 

     

    

 

(b)If the person, persons or firm
empowered under Section 8 to determine whether Indemnitee is entitled to indemnification shall not have made a determination within
60 days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall
be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of
a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection
with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided that such 60-day
period may be extended for a reasonable time, not to exceed an additional 20 days, if the person, persons or firm making the determination
with respect to entitlement to indemnification in good faith notifies the Company and Indemnitee in writing that such person requires
such additional time for the obtaining or evaluating of documentation and/or information relating thereto.

 

(c)The termination of any Proceeding
or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee
to indemnification or create a presumption or be evidence that Indemnitee did not act in Good Faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee
had reasonable cause to believe his conduct was unlawful.

 

(d)For purposes of any determination
of Good Faith, Indemnitee shall be conclusively presumed to have acted in Good Faith if Indemnitee's action or inaction is based
on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee
by the officers, agents or employees of the Enterprise in the course of their duties, or on the advice of legal counsel for the
Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or
by an appraiser, financial advisor or other expert or professional selected with reasonable care by the Enterprise or otherwise
acted in reliance on records of the Company or information, opinions, reports, books of account or statements including financial
statements or other financial data as permitted by Section 78.138 of the NGCL. The provisions of this Section 9(d) shall not be
deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable
standard of conduct set forth in this Agreement.

 

(e)The knowledge and/or actions,
or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes
of determining the right to indemnification under this Agreement.

 

Section 10.Nonexclusive
Remedies of Indemnitee.

 

(a)If (i) a determination is made
pursuant to Section 8 that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is
not timely made pursuant to Section 7, (iii) no determination of entitlement to indemnification shall have been made pursuant to
Section 8(b) within 90 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is
not made pursuant to Section 5, Section 6, the last sentence of Section 8(b) or the last sentence of Section 17(g) within 10 days
after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to Section 3 or Section
4 is not made within 10 days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall
be entitled to commence an adjudication by a court of competent jurisdiction of his entitlement to such indemnification or advancement
of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator
pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose Indemnitee's
right to seek any such adjudication or award in arbitration.

 

    		-5-	 

     

    

 

(b)If a determination shall have
been made pursuant to Section 8(b) that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced
pursuant to this Section 10 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee
shall not be prejudiced by reason of that adverse determination.

 

(c)If a determination shall have
been made pursuant to Section 8(b) that Indemnitee is entitled to indemnification, the Company shall be bound by such determination
in any judicial proceeding or arbitration commenced pursuant to this Section 10, absent (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee's statements not materially misleading, in connection with
the request for indemnification that in either case was ultimately relied upon by the person making the indemnification determination,
or (ii) a prohibition of such indemnification under applicable law.

 

(d)If Indemnitee, pursuant to this
Section 10, seeks a judicial adjudication of or an award in arbitration to enforce his rights under, or to recover damages for
breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company against,
any and all expenses (of the types described in the definition of Expenses in Section 17 of this Agreement) actually and reasonably
incurred by him in such judicial adjudication or arbitration unless it shall be finally determined by the court or arbitrator before
which such claim was brought that it was brought in bad faith. Even if it shall be determined in such judicial adjudication or
arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advancement of Expenses sought, the
expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be paid in full.

 

(e)The Company shall be precluded
from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 10 that the procedures and presumptions
of this Agreement are not valid, binding and enforceable and hereby stipulates, and shall so stipulate in any such court or before
any such arbitrator, that the Company is bound by all the provisions of this Agreement.

 

Section 11.Nonexclusivity;
Insurance; Subrogation.

 

(a)The rights of indemnification
and to receive advancement of Expenses as provided by this Agreement shall not be exclusive of any other rights to which Indemnitee
may at any time be entitled under applicable law, the Company's Articles of Incorporation, the Company's Bylaws, any agreement,
a vote of stockholders or a resolution of directors, or otherwise. No amendment of this Agreement or of any provision hereof shall
limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in
his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the NGCL or the judicial interpretation
thereof, permits greater indemnification or advancement of Expenses than would be afforded currently under the Company's Articles
of Incorporation, Bylaws and this Agreement, it is the agreement and intent of the parties hereto that Indemnitee shall enjoy by
this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive
of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

    		-6-	 

     

    

 

(b)To the extent that the Company
(i) enters into an agreement, arrangement or understanding with another director or officer of the Company that provides greater
rights to indemnification or advancement of expenses than under this Agreement or (ii) maintains an insurance policy or policies
providing liability insurance for directors, officers, employees, or agents of the Company or of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise such person serves at the request of the Company, Indemnitee shall
have the benefit of such agreement, arrangement or understanding and be covered by such policy or policies in accordance with its
or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy
or policies.

 

(c)In the event of any payment
under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all documents reasonably requested by the Company to secure such rights, including execution of such documents
as are reasonably requested by the Company to enable the Company to bring suit to enforce such rights.

 

(d)The Company shall not be liable
under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) hereunder
if and to the extent that Indemnitee has otherwise theretofore actually received such payment under any insurance policy, contract,
agreement, the Certificate of Incorporation or Bylaws of the Company, or otherwise.

 

(e)The Company's obligation to
indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer,
employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall
be reduced by any amount Indemnitee has actually theretofore received as indemnification or advancement of expenses from such other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

 

Section 12.Duration of
Agreement. This Agreement shall continue until and terminate upon the later of: (i) 10 years after the date that Indemnitee
shall have ceased to serve as a director or officer, of the Company (or of any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise that Indemnitee served at the request of the Company); (ii) the final termination of
any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder,
and (iii) the final termination of any proceeding commenced by Indemnitee pursuant to Section 10 relating thereto. This Agreement
shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his heirs, executors
and administrators.

 

    		-7-	 

     

    

 

Section 13.Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
(i) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to
the fullest extent permitted by law; (ii) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (iii) to the fullest extent possible,
the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent manifested thereby.

 

Section 14.Exception
to Right of Indemnification or Advancement of Expenses. Notwithstanding any other provision of this Agreement, but subject
to Section 10, Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement (i) with respect
to any Proceeding brought by Indemnitee, or any claim therein, unless the bringing of such Proceeding or making of such claim shall
have been approved by the Board of Directors or (ii) with respect to any proceeding in which final judgment is rendered against
Indemnitee for an accounting of profits made from the purchase and sale or sale and purchase by Indemnitee of securities of the
Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended.

 

Section 15.Identical
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to
be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party
against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

Section 16.Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

 

Section 17.Definitions.
For purposes or this Agreement:

 

(a)“Affiliate” means
with respect to any person or entity, any other person or entity that, directly or indirectly, through one or more intermediaries,
controls, is controlled by or is under common control with, such person or entity.

 

    		-8-	 

     

    

 

(b)“Change in Control”
means a change in control of the Company of a nature that would be required to be reported in response to Item 6(e) of Schedule
14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange
Act of 1934 (the “Act”), whether or not the Company is then subject to such reporting requirement; provided, however,
that, without limitation, such a Change in Control shall be deemed to have occurred if (i) any “person” (as such term
is used in Sections 13(d) and 14(d) of the Act) other than a trustee or other fiduciary holding securities under an employee benefit
plan of the Company or a corporation owned directly or indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of the
Company's then outstanding securities without the prior approval of at least two-thirds of the members of the Board of the Company
in office immediately prior to such person attaining such percentage interest (excluding any person who is the beneficial owner
of more than 15% of the combined voting power of the Company’s outstanding securities as of the date hereof); (ii) any “person”
(as such term is used in Sections 13(d) and 14(d) of the Act) other than a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or a corporation owned directly or indirectly by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting
power of the Company's then outstanding securities without the prior approval of at least two-thirds of the members of the Board
of the Company in office immediately prior to such person attaining such percentage interest; (iii) there occurs a proxy contest,
or the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved
by at least two-thirds of the members of the Board of the Company then in office, as a consequence of which members of the Board
in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter; or (iv) during
any period of two consecutive years, other than as a result of an event described in clauses (ii) or (iii) of this subsection (a),
individuals who at the beginning of such period constituted the Board of the Company (including for this purpose any new director
whose election or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors
then still in office who were directors at the beginning of such period) cease for any reason to constitute at least a majority
of the Board.

 

(c)“Corporate Status”
describes the status of a person who is or was a director, officer, employee or agent of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving at the request
of the Company.

 

(d)“Disinterested Director”
means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought
by Indemnitee.

 

(e)“Enterprise” shall
mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise of which
Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.

 

(f)“Expenses” shall
include all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel and lodging
expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating,
being or preparing to be a witness in, or otherwise participating in, a Proceeding.

 

(g)“Good Faith” shall
mean Indemnitee having acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company, and, with respect to any criminal Proceeding, having had no reasonable cause to believe Indemnitee's conduct was
unlawful.

 

    		-9-	 

     

    

 

(h)“Independent Counsel”
means a law firm that, or a member of a law firm who, is experienced in matters of corporation law and neither presently is, nor
in the past five years has been, retained to represent: (i) the Company or any Affiliate thereof or Indemnitee (other than with
respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements),
or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict in representing the Company or Indemnitee in an action to determine Indemnitee's rights
under this Agreement. The Company shall promptly pay the reasonable fees and expenses of the Independent Counsel referred to above
(who is an intended third-party beneficiary of this sentence) and shall fully indemnify such counsel against any and all Expenses,
claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

(i)“Proceeding” includes
any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry,
administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company
or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved as a
party or otherwise, by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action
taken by him or of any inaction on his part while acting as director or officer of the Company, or by reason of the fact that he
is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, in each case whether or not he is acting or serving in any such capacity at the time
any liability or expense is incurred for which indemnification or advancement of expenses can be provided under this Agreement;
except one initiated by Indemnitee pursuant to Section 10 to enforce his rights under this Agreement.

 

(j)References to “other enterprise”
shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any
employee benefit plan; references to “serving at the request of the Company” shall include any service as a director,
officer, employee or agent of the Company that imposes duties on, or involves services by, such director, officer, employee or
agent with respect to an employee benefit plan, as participants or beneficiaries; and a person who acted in good faith and in the
manner he reasonably believed to be in the interests of the participants and beneficiaries of an employee benefit plan shall not
be deemed to have acted in manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

Section 18.Enforcement.

 

(a)The Company expressly confirms
and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee
to continue to serve as a director and/or officer of the Company, and to serve upon any committee of the Board of Directors of
the Company as requested by such Board, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving
as a director and/or officer of the Company and a member of any such committee.

 

    		-10-	 

     

    

 

(b)This Agreement constitutes the
entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings,
oral, written and implied, between the parties hereto with respect to the subject matter hereof.

 

(c)The right to be indemnified
or to receive advancement of Expenses under this Agreement (i) is a contract right based upon good and valuable consideration,
pursuant to which Indemnitee may sue, (ii) is and is intended to be retroactive and shall be available as to events occurring prior
to the date of this Agreement and (iii) shall continue after any rescission or restrictive modification of this Agreement as to
events occurring prior thereto.

 

Section 19.Amendment
and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

Section 20.Notice by
Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding or matter that may be subject to indemnification
or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company
of any obligation it may have to the Indemnitee under this Agreement or otherwise, except and only to the extent the Company is
materially prejudiced by such failure.

 

Section 21.Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
if (i) delivered by hand and receipted for by the party to whom the notice or other communication shall have been directed, or
(ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed
to the notice address set forth on Exhibit A or to such other address as may have been furnished to Indemnitee by the Company or
to the Company by Indemnitee, as the case may be.

 

Section 22.Contribution.
To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to
Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred
by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses,
in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and
reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the
Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative
fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

 

    		-11-	 

     

    

 

Section 23.Governing
Law; Submission to Jurisdiction; Appointment of Agent for Service of Process. This Agreement and the legal relations among
the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Nevada, without regard
to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 10(a), the Company
and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with
this Agreement shall be brought only in the courts of the State of Texas, County of Dallas (the “Texas Court”), and
not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to and
submit to the exclusive jurisdiction of the Texas Court for purposes of any action or proceeding arising out of or in connection
with this Agreement, (iii) appoint, to the extent such party is not a resident of the State of Texas, irrevocably the Company’s
registered agent through its Texas office as its agent in the State of Texas as such party's agent for acceptance of legal process
in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such
party personally within the State of Texas, (iv) waive any objection to the laying of venue of any such action or proceeding in
the Texas Court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the
Texas Court has been brought in an improper or otherwise inconvenient forum.

 

Section 24.Miscellaneous.
Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate. All references in this
Agreement to Sections, shall be deemed to be references to Sections of this Agreement unless the context indicates otherwise.

 

    		-12-	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

 

	 	DGSE COMPANIES INC.
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	 	 
	 	 	 
	 	 	 
	 	Indemnitee:
	 	 	 
	 	 	 
	 	 	 

 

    		-13-

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