Document:

Exhibit 10.39

  
  
  
 
  
  
  
  
  	Real Property APNs Listed on Exhibit A attached herto
	 
	MT. MCKINLEY RECORDING DISTRICT
	 
	Recording Requested By, and when Recorded, return to:
	Brian Klemsz, Bohemian Companies
	1601 Officers Row, Vancouver, WA 98661

  
  
  
 

 DEED OF TRUST, SECURITY AGREEMENT,
ASSIGNMENT OF PRODUCTION, RENTS AND LEASEHOLD INTERESTS, FINANCING STATEMENT AND FIXTURE FILING
 FROM
   WESTMOUNTAIN GOLD, INC. and TERRA GOLD CORP., as Grantors
 TO
  FIDELITY TITLE COMPANY, as Trustee
 AND
 BOCO INVESTMENTS, LLC, as Beneficiary
 

 DATED AS OF JANUARY 31, 2017
 

 THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS.
 THIS INSTRUMENT SECURES FUTURE ADVANCES.
 THIS DEED OF TRUST SECURES AN UNLIMITED MAXIMUM PRINCIPAL AMOUNT. 
 THE OBLIGATIONS SECURED HEREUNDER AT THE TIME OF FILING TOTAL MORE THAN $7,000,000 IN PRINCIPAL ONLY, EXCLUSIVE OF ACCRUED INTEREST.
 THIS INSTRUMENT COVERS FIXTURES AND GOODS THAT WILL BECOME FIXTURES ON THE PROPERTY DESCRIBED IN EXHIBIT A.
 THIS INSTRUMENT COVERS AS-EXTRACTED COLLATERAL.
 

 
 
 DEED OF TRUST, SECURITY AGREEMENT,
ASSIGNMENT OF PRODUCTION, RENTS AND LEASEHOLD INTERESTS, FINANCING STATEMENT AND FIXTURE FILING

  

 This Deed of Trust, Security Agreement, Assignment of Production, Rents and Leasehold Interests and Financing Statement (the “Deed of Trust”) is entered into by and among WestMountain Gold, Inc., a Colorado corporation whose address is 120 E. Lake Street, Suite 401, Sandpoint, ID 83864 (herein called “WMTN”), Terra Gold Corporation, an Alaska corporation whose address is also 120 E. Lake Street, Suite 401, Sandpoint, ID 83864 (herein called “TGC”) (WMTN and TGC are herein called “Grantors”), Fidelity Title Agency of Alaska, LLC, an Alaska limited liability company whose address is 3150 C Street, Suite 220, Anchorage, AK 99503 (herein called “Trustee”), and BOCO Investments, LLC, a Colorado limited liability company whose address is 262 E. Mountain Ave., Fort Collins, CO 80524 (herein called “BOCO” or “Beneficiary”). 
 Recitals
 A.
 WMTN is an exploration stage mining company and TGC is WMTN’s wholly owned subsidiary.
 B.
 TGC holds a Miscellaneous Land Use Permit (a “MLUP”) under Application for Permits to Mine in Alaska (“APMA”) #3001 approved by The Alaska Department of Natural Resources (the “ADNR”).
 C.
 ADNR is requiring TGC to furnish an acceptable security in accordance with 11 AAC 96.060 (the “Performance Guaranty”) in order to maintain TGC’s MLUP under APMA #3001.
 D.
 In connection with that certain Pledge Agreement between WMTN, TGC, and BOCO dated on even date hereof (the “Pledge Agreement”), BOCO has provided the Performance Guaranty on behalf of TGC for the benefit of the ADNR in the form of a certificate of deposit in the amount of $1,224,140.00 (the “ADNR CD”).  This Deed of Trust secures the repayment of the ADNR CD, any and all of the Grantors’ obligations under the Pledge Agreement, and any and all other financial obligations Debtors, or either of them, may have to Beneficiary (as further enumerated in the Pledge Agreement).  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Pledge Agreement. 
 C.
 Grantors own, hold, use, have the benefit of or have an option to purchase those certain properties consisting of State of Alaska mining claim locations (“State Mining Claims”), mineral rights, leasehold interests and other rights and interests in that certain property approximately 125 miles west-northwest of Anchorage, Alaska as further described herein, including on Exhibit A attached hereto and incorporated herein by reference, which are commonly referred to as the “Mine”.   
 D.
 Upon foreclosure, pursuant to the terms and conditions stated herein, the Beneficiary may elect to pursue a non-judicial foreclosure pursuant to the power of sale granted herein or a judicial foreclosure.   
 
 
 Agreement
 NOW, THEREFORE, in consideration of the premises, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
 ARTICLE 1 -
 CREATION OF SECURITY
 Section 1.1 Grant.  In consideration of the credit advanced under the Pledge Agreement, and in consideration of the mutual covenants contained therein and herein, and for the purpose of securing payment and performance of the Obligations (as defined below in Section 1.4), Grantors hereby grant, bargain, sell, warrant, assign, pledge, transfer and convey to the Trustee, IN TRUST, WITH POWER OF SALE, and right of entry and possession, subject to the terms hereof, for the benefit of the Beneficiary, all right, title and interest in and to the following real and personal property, rights, title and interests (collectively, the “Collateral”), whether presently owned or held or hereafter acquired:
 (a) Lands and Realty.  All (i) lands and real property, including all fee, leasehold, mineral, option rights, patented mining claims, patented millsite claims, unpatented mining claims (lode and placer), unpatented millsites, State Mining Claims, tunnel sites and rights, amended claims, relocated claims, royalties and other real property interests (whether surface, underground, mineral, or other), and (ii) leases and subleases (howsoever named or characterized), licenses of use, exploration agreements, joint venture agreements and other agreements and rights in, to or relating to land or minerals or the use, development, exploitation or extraction of any part thereof or of any mineral therefrom, including the leasehold interest covered thereby (collectively, the “Leases”), including any extensions, continuation, reinstatements or renewals; in each case, with the foregoing rights, titles and interests being more particularly described on Exhibit A attached hereto and incorporated herein by reference (collectively, the “Lands”);
 (b) Additional Land.  All additional lands, estates, rights and interests hereafter acquired by either of the Grantors for use in connection with the Lands and the development of the Lands and all additional lands, estates, rights and interests therein which may, from time to time, by amendment, modification, supplement or otherwise, be expressly made subject to the lien of this instrument, including whether by the location of new unpatented mining or millsite claims, the amendment of any unpatented mining or millsite claims, the relocation of any unpatented mining or millsite claims or State Mining Claims, the acquisition of property or otherwise, all of which shall be included in and constitute part of the Lands;
 (c) Gold, Silver and Minerals.  All gold, silver and other ores, minerals, metals, mineral elements and compounds, dore, concentrate, veins, lodes and mineral deposits that are on, in, under, extending from or into, produced or to be produced from, stored, stacked, handled, processed, refined, beneficiated, transported or marketed on or from all or any part of the Lands, including “As-Extracted Collateral” as defined in Alaska Statute (“AS”) 9.102 (Section 9.102  of the Alaska Uniform Commercial Code (as amended from time to time, the “UCC”)), all whether in place, extracted, produced, processed, stored or otherwise severed (collectively, the “Minerals”);
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(d) Fixtures and Improvements.  All buildings, structures, additions, mills, crushers, facilities, offices, shops, tanks, pipelines, fixtures and other improvements, howsoever designated, now or hereafter located or constructed on the Lands, affixed to the Lands or otherwise related to or associated with the Lands and the improvements thereon (collectively, the “Improvements”);
 (e) Water Rights.  All water, water rights (whether vested, certificated, permitted or otherwise, whether or not adjudicated, and whether or not with a place of use or point of diversion on the Lands), water right applications, reservoirs and reservoir rights, ditches and ditch rights, irrigation systems and irrigation rights, wells, well permits and other rights of use appertaining or belonging to or used in connection with the Lands and all wells, pumps, pumping stations, machinery and equipment associated therewith, and all shares of stock or similar interest (if any) evidencing reservoir, ditch, irrigation or other water rights or rights of use (collectively, the “Water Rights”);
 (f) Access Rights.  All rights of way, easements, licenses, profits, privileges, tenements, hereditaments, appurtenances, roads, trails, transportation improvements, and other access rights or rights of use appertaining or belonging to or used in connection with the Lands, the Water Rights and/or the Improvements (collectively, the “Access Rights”); 
 (g) Property Data.  All records, data, reports and information relating to or associated with all or any portion of the Lands, the Minerals or the Water Rights, including maps, surveys, drilling data, drill logs, core samples and core data, technical, engineering and permitting information and reports, and all geological, metallurgical, geophysical, geochemical and analytical data, information and reports, in whatever form and however stored, whether physical, electronic or otherwise (collectively, the “Data”);
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(h) Permits and Approvals.  All approvals, authorizations, licenses, permits, consents, variances, land use entitlements, applications, plans, bonds, filings or registrations by, with or from any governmental authority (federal, state or local) or other person associated with or necessary for the use or development of all or any portion of the Lands, Minerals, Improvements, Water Rights or Access Rights and all bonds, letters of credit and other financial accommodations that secure the performance of the foregoing (collectively, the “Permits”);  
 (i) Accounts; Contract Rights; General Intangibles.  All accounts, accounts receivable, contracts and contract rights, option and purchase rights, agreements, documents, instruments, income, receipts, revenues, earnings, rents, profits, deposits, security deposits, royalties and revenue arising from the use or enjoyment of all or any portion of the Lands, the Improvements or other Collateral, from the production, crushing, milling, treatment, storage, marketing, hedging, sale or transfer of all or any portion of the Minerals and from the use, sale, assignment, conveyance or transfer of all or any portion of any other Collateral (collectively, the “Accounts”);
 (j) Machinery; Equipment; Personal Property.  All goods, machinery, equipment, drilling rigs and equipment, facilities, parts, supplies, power lines, tools, vehicles, trucks, rolling stock, furnishings, apparatus, inventory, fixtures and other personal property of every kind and nature, howsoever defined and whether or not attached or affixed in any manner to any building, structure or Improvement on the Lands (collectively, the “Personal Property”);
 (k) All Associated Property.  All other property (whether real, personal or mixed), right, title or interest of any kind, nature or character, howsoever defined or identified, related to or associated with the Project, the Lands, the Minerals, the Improvements, the Water Rights, the Access Rights, the Data, the Permits, the Accounts, the Personal Property or other property described herein (collectively, the “Associated Property”); and 
 (l) Proceeds and Products.  All proceeds and products of the Lands, Minerals, Improvements, Water Rights, Access Rights, Data, Permits, Personal Property, Accounts and other property rights and interests described herein; and 
 (m) Excluded Assets.  Notwithstanding the foregoing, the Collateral shall not include “Excluded Assets” (as defined below) until such time as the prohibitions causing such property to be Excluded Assets have terminated (howsoever occurring); upon the termination of such prohibitions such property will be deemed to automatically be and at all times from and after the date hereof to have been, without the taking of any action or delivery of any instrument, Collateral.  “Excluded Assets” means, collectively, (i) any permit or license or any contractual obligation (and the equipment, fixture or goods subject thereto) entered into by a Grantor (A) that prohibits or requires the consent of any Person other than a Grantor or any affiliate of a Grantor (each, a “Related Party”) which has not been obtained as a condition to the creation by a Grantor of a security interest, lien, charge or other encumbrance (each a “Lien”) on any right, title or interest in such permit, license or contractual obligation, (B) in which the creation of a Lien would result in the abandonment, invalidation or unenforceability of any such permit, license or contractual obligation or (C) to the extent that any requirement of law applicable thereto prohibits the creation of a Lien thereon, but only, with respect to the prohibition in (A), (B) and (C), to the extent, and for as long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC or any other requirement of law, (ii) property owned by a Grantor that is subject to a purchase money Lien or a capital lease permitted under the Pledge Agreement if the contractual obligation pursuant to which such Lien is granted (or in the document providing for such capital lease) prohibits, or requires the consent of any Person other than a Grantor or any Related Party which has not been obtained as a condition to, the creation of any other Lien on such equipment, and (iii) any “intent to use” trademark applications for which a statement of use has not been filed (but only until such statement is filed); provided, that “Excluded Assets” shall not include any proceeds, products, substitutions or replacements of any Excluded Asset (unless such proceeds, products, substitutions or replacements would itself be an Excluded Asset); provided, further, that to the extent that such property constitutes an Excluded Asset due to the failure of a Grantor to obtain consent as described in clause (ii), Grantors shall use commercially reasonable efforts to obtain such consent, and, upon obtaining such consent, such property shall cease to constitute an “Excluded Asset”. 
 TO HAVE AND TO HOLD all of the Collateral, together with all and singular the rights, privileges, benefits, contracts, hereditaments and appurtenances now or hereafter at any time before the foreclosure or release hereof, in any way appertaining or belonging thereto, unto the Trustee and to its substitutes or successors, forever, IN TRUST, upon the terms and conditions herein set forth; and Grantors hereby bind and obligate themselves and their successors and assigns, to warrant and to defend, all and singular, title to the Collateral unto the Trustee, its substitutes or successors, forever, against the claims of any and all persons whomsoever claiming any part thereof.
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Section 1.2 Creation of Security Interest.  In addition to the grant contained in Section 1.1, and for the same consideration and purpose, Grantors hereby grant to the Beneficiary a first and prior continuing security interest in all Collateral constituting personal property, now owned or hereafter acquired by Grantors, and in all Proceeds thereof (as defined below).  Grantors, without limiting the foregoing provisions of this Section 1.2, stipulate that the grant made by this Section 1.2 includes a grant of a security interest in all Minerals extracted or produced from or otherwise attributable to or severed from the Lands and in the Proceeds resulting from sale of such Minerals, such security interest to attach to such Minerals as-extracted, at the minehead of any mine located thereon, and to the Accounts resulting from such sales.  “Proceeds” shall have the meaning given to such term in Article 9 of the UCC, and includes whatever is received or receivable upon the sale, exchange, collection or other disposition of the Collateral and insurance payable or damages or other payments by reason of loss or damage to the Collateral, and all additions thereto, substitutions and replacements thereof or accessions thereto.
 Section 1.3 Pledge and Assignment.  Grantors hereby grant and make a common-law pledge and assignment to the Beneficiary of all Refinery Accounts (defined below) and all credit balances therein from time to time.  “Refinery Accounts” means any account or allocation, and the credit balances in dollars or Minerals therein, of or for the benefit of a Grantor at or with any refinery, smelter or processing facility to which Minerals severed from or attributable to the Lands are delivered or held.  
 Section 1.4 Obligations Secured.  This instrument is executed and delivered by Grantors to secure and enforce the irrevocable, full, punctual and complete payment and performance when due (whether at declaration, acceleration, demand or otherwise) of:
 (a) This Deed of Trust, which secures all amounts due under the Pledge Agreement plus all costs, fees, expenses and charges provided therein, which is made a part hereof by reference.  All advances under the Pledge Agreement are obligatory and are secured by this Deed of Trust.  All such obligatory advances, including future advances, and interest, fees, costs and charges thereon will have the same priority as the credit initially advanced under the Pledge Agreement; 
 (b) Any and all indebtedness, liabilities or sums for which a Grantor is now or may become liable to the Beneficiary under the BOCO Notes and the Loan Documents (as those terms are defined in the Pledge Agreement and in Exhibit B hereto);
 (c) Any and all other or indebtedness, liabilities or sums for which a Grantor is now or may become liable to Guiseppe Dessi (“Dessi”) under a promissory note dated December 17, 2013 in the principal amount of $1,000,000 executed by WMTN and delivered to Dessi (the “Dessi Note”), as amended by that Amendment to Secured Convertible Promissory Note dated May 1, 2015, provided, however, that such amounts shall be secured by this DOT only if Dessi executed that Security and Inter-Creditor Agreement dated as of May 15, 2015 (the “SIC Agreement”) and the SIC Agreement is otherwise valid and binding according to its terms;   
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(d) Any and all other or additional indebtedness, liabilities or sums for which a Grantor is now or may become liable to the Beneficiary or the Trustee in any manner, whether under this instrument, the Pledge Agreement or any other or future instrument or document, either primarily or secondarily, absolutely or contingently, directly or indirectly, jointly, severally, or jointly and severally, and whether matured or unmatured, and whether or not created after payment in full of the Obligations if this instrument shall not have been released of record by Beneficiary; 
 (e) All sums advanced and costs and expenses incurred by the Beneficiary or the Trustee (directly or indirectly), including all legal, accounting, engineering, management, consulting or like fees and expenses made or incurred in connection with the Pledge Agreement or the Obligations or any part thereof, any amendment, modification, renewal, restatement, replacement or extension thereof, the acquisition or perfection of any security therefor or otherwise in connection with the administration, preservation, perfection, enforcement and realization of the rights of the Trustee or the Beneficiary hereunder or under any of the other obligations secured hereby, including reasonable attorneys’ fees, courts costs and other litigation and foreclosure expenses;
 (f) The prompt and complete performance of all obligations under the Pledge Agreement as and when due;
 (g) All renewals, extensions, amendments, modifications, restatements and changes of, or substitutions or replacements for, all or any part of the items described above; and
 (h) Each and every covenant and agreement of a Grantor contained in the Pledge Agreement.
 The indebtedness, liabilities and obligations secured hereby, as described in the foregoing clauses (a) – (h) are sometimes referred to herein as the “Obligations”.
 Section 1.5 Proceeds.  The security interest of the Beneficiary hereunder in the Proceeds shall not be construed to mean that the Beneficiary consents to the sale or other disposition of any part of the Collateral other than Minerals extracted from or attributable to the Lands and sold in the ordinary course of business.
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Section 1.6 Future Advances.  Grantors, and each party at any time claiming an interest in or lien or encumbrances against the Collateral, agree that all advances made by the Beneficiary from time to time under the Pledge Agreement (for which a Grantor is liable thereunder), and all other portions of the Obligations herein referred to (with the sole exception of any additional principal advances by Dessi or under the Dessi Note, if applicable), shall be secured by this Deed of Trust with priority as if all of the same had been advanced, had arisen or became owing or performable on the date of this Deed of Trust.  No reduction of the amount due under the Pledge Agreement, BOCO Notes, Loan Documents, or Dessi Note (if applicable) shall extinguish, release or subordinate any rights, titles, interests, liens, security interests, powers or privileges intended, created or arising hereunder or under the Pledge Agreement, and this Deed of Trust shall remain in full force and effect as to any subsequent advances or subsequently arising portions of the credit accommodations or indebtedness without loss of priority until all Obligations are fully paid, performed and satisfied, all agreements and obligations, if any, of the Beneficiary for future advances have been terminated, and this Deed of Trust has been released of record by Beneficiary.  This Deed of Trust shall not adversely affect the validity or time of perfection of any security interest arising in favor of Beneficiary as a result of acts or agreements of Beneficiary and/or Grantors occurring or arising prior to the date hereof.
 Section 1.7 Continuing Status of Lien, Security Interest and Pledge.  So long as the Obligations remain in effect, and this Deed of Trust has not been released of record by Beneficiary or according to its terms, whether or not any credit or amounts have been advanced and whether or not any such advance is subject to the satisfaction of any conditions precedent, the lien on the Collateral constituting real property and the security interest in and pledge relating to the Collateral constituting personal property created hereby shall remain in effect with the priority date established by the recording or filing hereof, notwithstanding the fact that from time to time the outstanding balance of the credit facilities or other loans outstanding under the Pledge Agreement may be zero. 
 ARTICLE 2 -
 ASSIGNMENT OF PRODUCTION PROCEEDS, RENTS AND LEASEHOLD INTERESTS 
 Section 2.1 Assignment of Production Proceeds.  As further security for the payment and performance of the Obligations, Grantors hereby absolutely and unconditionally assign and transfer to the Beneficiary, effective upon an Event of Default, all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands and, effective automatically upon an Event of Default, Grantors hereby transfer, assign, warrant and convey to the Beneficiary all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands.  Upon the occurrence of an Event of Default, all persons producing, purchasing or receiving such Minerals or the Proceeds therefrom are authorized and directed to treat the Beneficiary as the person entitled in a Grantor’s place and stead to receive the same; and further, those persons will be fully protected in so treating the Beneficiary and will be under no obligation to see to the application by Beneficiary of any Proceeds received by it.  Grantors agree that, if, after the occurrence of an Event of Default, any Proceeds from such Minerals are paid to a Grantor, such proceeds shall constitute trust funds in the hands of Grantors, shall be segregated from all other funds of Grantors and separately held by Grantors, and shall be forthwith paid over by Grantors to the Beneficiary.  Upon the occurrence of an Event of Default, Grantors shall, if and when requested by the Beneficiary, execute and file with any production purchaser a transfer order or other instrument declaring the Beneficiary to be entitled to the Proceeds of severed Minerals and instructing such purchaser to pay such Proceeds to the Beneficiary.  After the occurrence of an Event of Default, should any purchaser fail to make payment promptly to the Beneficiary of the proceeds derived from the sale thereof, the Beneficiary shall have the right, subject only to any contractual rights of such purchaser or any operator, to designate another purchaser to purchase and take such Products, without liability of any kind on the Beneficiary in making such selection so long as ordinary care is used in respect thereof.
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Section 2.2 Assignment of Rents and Leasehold Interests.  As further security for the payment and performance of the Obligations, Grantors hereby absolutely and unconditionally assign and transfer to Trustee, for the benefit of the Beneficiary, all the leases, income, rent, issues, deposits, profits and proceeds (“Rents”) of the Lands and the Improvements to which any Grantor may be entitled, whether now due or to become due, and hereby give to and confer upon the Trustee the right, power and authority to collect such income, rents, issues, deposits, profits and proceeds of the Lands and the Improvements to which any Grantor may be entitled, whether now due, past due or to become due.  This assignment constitutes an irrevocable direction and authorization of all tenants, account payors and other Persons, under any lease, contract, agreement or other Instrument to pay all income, rent, issues, deposits, profits and proceeds into an account specified by the Trustee upon demand and without further consent or other action by Grantors.  Nevertheless, except upon the occurrence of an Event of Default, the Beneficiary grants to Grantors a revocable license to collect, receive, use and enjoy the Rents in a manner consistent with the Pledge Agreement and other Obligations.  
 Section 2.3 Power-of-Attorney; Collection.  Grantors hereby irrevocably appoint the Beneficiary their true and lawful attorney, at the option of the Beneficiary upon the occurrence of an Event of Default, to demand, receive and enforce payment, to give receipts, releases, and satisfactions, and to sue, either in the name of a Grantor or in the name of the Beneficiary, for all such income, rents, issues, deposits, profits and proceeds and apply the same to the Obligations secured hereby.  It is understood and agreed that neither the foregoing assignments in Sections 2.1 and 2.2 nor the exercise by the Beneficiary of any of its rights or remedies under this Article 2 or otherwise hereunder shall be deemed to make the Beneficiary a “mortgagee-in-possession” or otherwise responsible or liable in any manner with respect to the Collateral or the use, occupancy, enjoyment, or operation of all or any portion thereof.  Notwithstanding anything to the contrary contained herein, so long as no Event of Default shall have occurred and be continuing, Grantors shall have a license to collect all Proceeds from the Collateral as trustee for the benefit of the Beneficiary and shall apply such Proceeds in the following order of priority: (a) first, to the payment of the Obligations then due and payable, and (b) second, to such other obligations or matters as a Grantor may reasonably determine.  Upon the occurrence of an Event of Default, such license shall be deemed automatically revoked and any income, rents, issues, deposits, profits and proceeds received thereafter by a Grantor shall be delivered in kind to the Beneficiary.  Each Grantor hereby irrevocably constitutes and appoints the Beneficiary its true and lawful attorney-in-fact to enforce in such Grantor’s name or in the Beneficiary’s name or otherwise all rights of the Grantors and to do any and all things necessary and proper to carry out and implement the purposes hereof, which the Beneficiary may exercise at any time after the occurrence of an Event of Default.
 Section 2.4 Grantors’ Payment Duties.  Nothing contained herein will limit Grantors’ duty to make payment on the Obligations when the Proceeds received pursuant to this Article 2 are insufficient to pay the costs, interest, principal and any other portion of the Obligations then owing, and the receipt of Proceeds pursuant hereto will be in addition to all other security now or hereafter existing to secure payment of the Obligations.
 Section 2.5 Liability of Trustee and Beneficiary.  Neither the Trustee nor the Beneficiary has any obligation to enforce collection of any of the Proceeds or other amounts described in this Article 2, and the Trustee and the Beneficiary are hereby released from all liability and responsibility in connection therewith, except the responsibility to account to Grantors for Proceeds and other amounts actually received.
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Section 2.6 Indemnification.  Grantors agree to indemnify and save and hold harmless the Trustee, the Beneficiary, their respective successors and affiliates and their respective directors, partners, managers, principals, officers, employees, agents, consultants and representatives (collectively, the “Indemnified Parties”) from and against all claims, actions, liabilities, losses, judgments, reasonable attorneys’ fees, costs and expenses and other charges of any description whatsoever (all of which are hereafter referred to in this Section 2.6 as “Claims”) made against or sustained or incurred by any such Indemnified Party as a consequence of the assertion, either before or after the payment in full of the Obligations, that the Beneficiary received Minerals, Proceeds or rents, profits, income or proceeds of Collateral pursuant to this instrument.  The Indemnified Parties have the right to employ attorneys and to defend against any Claims and unless furnished with satisfactory indemnity, after notice to Grantors, any Indemnified Party will have the right to pay or compromise and adjust all Claims in its sole reasonable discretion.  Grantors shall, jointly and severally, indemnify and pay to the Indemnified Parties all amounts paid by any Indemnified Party in compromise or adjustment of any of the Claims or amounts adjudged against any Indemnified Party in respect of any of the Claims.  The liabilities of Grantors as set forth in this Section 2.6 will constitute Obligations and will survive the termination of this instrument.
 ARTICLE 3 - GRANTORS’ REPRESENTATIONS AND WARRANTIES 
 Grantors hereby represent and warrant as follows: 
 Section 3.1 Due Organization, Good Standing and Authority.  WMTN is duly organized, validly existing and in good standing under the laws of Colorado; TGC is duly organized, validly existing and in good standing under the laws of Alaska; and each is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.  Grantors have full power, authority and legal right (i) to own or lease their assets and properties (including the Lands) and to conduct their business as now being conducted, and (ii) to enter into their obligations under this Deed of Trust and each other agreement, document and instrument executed or to be executed by either of them pursuant hereto or in connection herewith and to perform the terms hereof and thereof applicable to them, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other Laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
 Section 3.2 Authorization and No Conflict.  The execution and delivery by Grantors of this Deed of Trust, and the performance of all transactions contemplated hereby and the fulfillment of and compliance with the terms of this Deed of Trust, have been duly authorized by all necessary action, corporate, partnership or otherwise, and do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under, (iii) give any third party any right to accelerate any obligation under, (iv) result in a violation of, or (v) require any authorization, consent, approval, exemption or other action by or notice to any court or administrative or governmental body pursuant to (A) the articles, bylaws, operating agreement or other constating documents of Grantors, (B) any law, statute or rule, or (C) any material agreement, lease, instrument, order, judgment or decree to which a Grantor is subject or by which any of its properties are bound.
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Section 3.3 No Approvals.  No authorization or approval or other action by, and no notice to or filing with (other than the recording of this Deed of Trust in the applicable office), any governmental authority, regulatory body or other person or entity is required for the due execution, delivery and performance by Grantors under this Deed of Trust.
 Section 3.4 Validity.  This Deed of Trust is, and when delivered hereunder will be, the legal, valid and binding obligation of each Grantor enforceable against Grantors in accordance with its terms, subject to applicable bankruptcy, reorganization, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in equity or law).
 Section 3.5 Valid Security Interest; Filings.  
 (a) This Deed of Trust creates, in favor of the Trustee, for the benefit of the Beneficiary, a valid security interest in the Collateral, subject only to Permitted Liens, securing the payment and performance of the Obligations.  Upon the filing of this Deed of Trust with the official records of Mt. McKinley Recording District, Fourth Judicial District, Alaska together with any other filings or recordings that have already been made or obtained prior to the date hereof, the Trustee will have, for the benefit of the Beneficiary, as security for the Obligations, a valid and perfected first priority Lien on all of the Collateral, free of all other Liens, claims and rights of third parties whatsoever, except for Permitted Liens (as defined below).  Except for filing this Deed of Trust with the official records of Mt. McKinley Recording District, Fourth Judicial District, Alaska and such other filings and recordings that have already been made or obtained prior to the date hereof, no other filing, recording or action is necessary to create, perfect or protect the security interests created in the Collateral by this Deed of Trust. 
 (b) As used herein, “Permitted Liens” shall mean: (a) Liens in favor of Beneficiary; (b) purchase money Liens and Liens to secure capital lease obligations previously disclosed to BOCO; (c) Liens imposed by any governmental authority for taxes not yet due and delinquent or which are being contested in good faith and by appropriate proceedings and, during such period during which such Liens are being so contested, such Liens shall not be executed on or enforced against any of the assets of Grantors, provided that Grantors shall have set aside on their books reserves deemed adequate therefor and not resulting in qualification by auditors; (d) carrier’s, warehousemen’s, mechanics’, materialmen’s, repairmen’s, construction and other like Liens arising by operation of applicable law, arising in the ordinary course of business and securing amounts (i) which are not overdue for a period of more than 30 days, or (ii) which are being contested in good faith and by appropriate proceedings and, during such period during which amounts are being so contested, such Liens shall not be executed on or enforced against any of the assets of Grantors, provided that Grantors have set aside on their books reserves deemed adequate therefor and not resulting in qualification by auditors; (e) statutory Liens incurred, or pledges or deposits made, under worker’s compensation, employment insurance and other social security legislation; (f) undetermined or inchoate Liens and charges arising or potentially arising under statutory provisions which have not at the time been filed or registered in accordance with applicable law or of which written notice has not been duly given in accordance with applicable law or which although filed or registered, relate to obligations not due or delinquent; (g) Liens or deposits to secure the performance of bids, tenders, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature (other than for borrowed money) incurred in the ordinary course of business; (h) servitudes, easements, rights of way, restrictions and other similar encumbrances on real property imposed by applicable law or incurred in the ordinary course of business and encumbrances consisting of zoning or building restrictions, easements, licenses, restrictions on the use of property or minor imperfections in title thereto which, in the aggregate, are not material, and which do not in any case materially detract from the value of the property subject thereto or interfere with the ordinary conduct of the business of Grantors; (i) the rights reserved to or vested in governmental authorities by statutory provisions or by the terms of leases, licenses, franchises, grants or permits, which affect any land, to terminate the leases, licenses, franchises, grants or permits or to require annual or other periodic payments as a condition of the continuance thereof; (j) securities to public utilities or to any municipalities or governmental authorities or other public authority when required by the utility, municipality or governmental authorities or other public authority in connection with the supply of services or utilities to Grantor; (k) Liens or covenants restricting or prohibiting access to or from lands abutting on controlled access highways or covenants affecting the use to which lands may be put; provided that such Liens or covenants do not materially and adversely affect the use of the lands by Grantor; (l) statutory Liens incurred or pledges or deposits made in favor of a governmental authority to secure the performance of obligations of Grantors under environmental laws to which any assets of Grantors are subject; (m) statutory and common law landlords’ liens under leases to which a Grantor is a party; (n) Liens in respect of supply, sales, surface use and other operational agreements entered into consistent with normal practices in the mining industry, in each case to the extent such agreements are entered into in the ordinary course of business and such Liens do not secure any obligation for borrowed money; (o) contract mining agreements and leases or subleases granted to others that do not materially interfere with the ordinary course of business of Grantors; and (p) any extension, renewal or replacement of any of the foregoing.
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Section 3.6 Name and Location of Office.  Grantors have not used any corporate name or done business under any name other than their own, and each of the Grantors further covenants and agrees that it will not do so, nor will it change its state of organization outside its present state of organization (the State of Colorado for WMTN and the State of Alaska for TGC) or relocate its chief executive office without at least thirty days’ prior notice to the Trustee and the Beneficiary.
 Section 3.7 Litigation.  Except as set forth in the Pledge Agreement, there is no action, suit or proceeding at law or in equity, by or before any governmental or regulatory authority, court, arbitral tribunal or other body now pending (or, to the knowledge of Grantors, threatened) against or affecting Grantors, the Lands or any of the other Collateral which could reasonably be expected to cause a Material Adverse Change.
 Section 3.8 Title.  
 (i) Exhibit A attached hereto and incorporated herein accurately and completely sets forth and describes all real property owned, held, leased, used or controlled by Grantors, including all fee interests, patented mining claims, patented millsite claims, unpatented mining claims, unpatented millsite claims, State Mining Claims, leasehold interests, option rights and other real property interests (collectively, the “Grantors Real Property”), and such Exhibit A is in a form that, when appended to this instrument, is adequate and sufficient for acceptance by Mt. McKinley Recording District, Fourth Judicial District, Alaska for the recording of real property instruments.
 (ii) Grantors are the exclusive owner or lessee of, and have good and marketable title to an undivided one hundred percent (100%) in and to Grantors Real Property set forth on Exhibit A to this Deed of Trust (except to the extent that any ownership of less than 100% is expressly noted on such Exhibit A), which title is, subject to Permitted Liens, superior and paramount to any material adverse claim or right of title which may be asserted, subject only to the paramount title of the State of Alaska as to any State Mining Claims.  With respect to any lease or option to purchase identified on Exhibit A, each such lease creates a valid and subsisting leasehold estate in the lands described in such lease and each option creates a valid right to purchase the lands described in such option, each such lease and option is in full force and effect, no event has occurred that, with the giving of notice or the passage of time, would constitute a material default under such lease or option and all rent, royalties or other payments due under such lease or option have been timely paid;
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(iii) With respect to the State Mining Claims listed on the attached Exhibit A: (A) Grantors are in exclusive possession thereof and have good title thereto, subject to the paramount title of the State of Alaska, free and clear of all Liens, other than Permitted Liens; (B) to the best of Grantors’ knowledge, all such claims were located, staked, filed and recorded on available public domain land in compliance with all applicable state and federal laws and regulations; (C) annual labor, intended in good faith to satisfy the requirements of state laws and regulations and generally regarded in the mining industry as sufficient, for all annual labor years up to and including the current annual labor year, was timely and properly performed on or for the benefit of the State Mining Claims, and affidavits evidencing such work were timely recorded; (D) all rental, royalties, fees, or other payments required to be paid under state and federal law, including cash payments in lieu of the performance of labor, in order to maintain the State Mining Claims have been timely and properly paid, and affidavits or other notices evidencing such payments and required under federal or state laws or regulation have been timely and properly filed and recorded; (E) all filings with the State of Alaska which are required under state or federal law have been timely and properly made; and, except as identify in the Recitals above, (F) there are no actions or administrative or other proceedings pending or to the best of Grantors’ knowledge threatened against or affecting any of the claims in any material respect;
 (iv) Grantors have good and marketable title to the Improvements and the Personal Property, subject to Permitted Liens.  The Lands, the Improvements located thereon and the Personal Property constitute all of the properties and assets, tangible or intangible, real or personal, which are used in the conduct of the business of Grantors, as such business is presently being conducted and as pertains to the Lands.  The Project assets constitute all of the properties and assets, tangible or intangible, real or personal, which are used in the conduct of the business of Grantors, as such business is presently being conducted and as pertains to the Lands, are in reasonable condition and repair, ordinary wear and tear excepted, and are adequate for the purposes for which they are now used and for the development, construction, operation and maintenance of the Project in accordance with, and as contemplated by, the Development Plan and Annual Budget.  Grantors have good title to the Project assets, subject to Permitted Liens.
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Section 3.9 Leases and Royalties.  The Leases are in full force and effect, in good standing and free from breach or default, and Grantors are not aware of, and have not received notice of, any act or omission, which would constitute a material breach or default under any Lease or which would otherwise allow the lessor to terminate any Lease.  Grantors have good right and full power and authority to assign, convey, grant and to transfer the interests in the Leases, without consent of the lessor (or Grantors have obtained sufficient consent from the lessor).  Except as disclosed in writing to Beneficiary, there are no Royalties (as defined below) burdening or otherwise associated with such Lands.  For purposes hereof, “Royalties” shall mean any amount payable as a share of the product or profit from the Lands or any Minerals produced therefrom and includes without limitation, production payments, net profits interests, net smelter return royalties, landowner’s royalties, minimum royalties, overriding royalties and royalty bonuses.
 Section 3.10 Transportation, Utilities and Water Supply.  All utility services, means of transportation, ingress and egress roadways, easements, servitudes, rights of passage, facilities, water rights and other materials necessary for the operation of and access to the Lands (including, without limitation, gas, electrical, water supply and sewage services and facilities) are available on commercially reasonable terms in compliance with all applicable legal requirements, and Grantors are not aware of any information that would lead them to believe that any of the foregoing will not be available in the future.
 Section 3.11 Payment of Taxes.  Grantors have filed or caused to be filed all material federal, state and local tax returns which to the knowledge of Grantors are required to be filed and have paid or caused to be paid all material taxes as shown on such returns or any assessment received by Grantors to the extent that such taxes or assessments have become due, except such as may be diligently contested in good faith and by appropriate proceedings or as to which a bona fide dispute may exist and for which adequate reserves are being maintained.  All Taxes, assessments, maintenance fees and other amounts required to maintain the Project have been paid in full.  
 Section 3.12 Compliance with Laws.  With respect to the Lands and operations thereon, Grantors have complied in all material respects with all applicable local, state and federal laws, including environmental laws, and regulations relating to the operation of the Lands, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, and Grantors are not aware of any investigation (other than a routine inspection) of Grantors or the Lands by any local, state or federal agency with respect to enforcement of such laws and regulations.  The existing and planned use of the Lands and the Mine complies or will comply in all material respects with all applicable legal requirements, including but not limited to applicable regulations and restrictive covenants affecting the Lands, as well as all environmental, ecological, landmark and other applicable laws and regulations; and all requirements for such use have been satisfied to the extent necessary for the current operations involving the Lands, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.  Except as disclosed to Beneficiary in writing, no release, emission or discharge into the environment of hazardous substances, as defined under any environmental law, has occurred or is presently occurring or will occur in operating the Lands and the Mine in its intended form in excess of federally or state permitted releases or reportable quantities, or other concentrations, standards or limitations under the foregoing laws or under any other federal, state or local laws, regulations or governmental approvals in connection with the construction, operation, ore treatment, heap leaching, fuel supply, power generation and transmission or waste disposal, or any other operations or processes relating to the Lands or the Mine, other than as allowed by or in compliance with applicable federal, state and local laws and except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.  The Lands and Grantors’ use and proposed use thereof are not and will not be in violation of any environmental, occupational safety and health or other applicable law now in effect, the effect of which violation, in any case or in the aggregate, would materially adversely affect the Lands or Grantors’ use thereof, or which, in any case or in the aggregate, would impose a material liability on the Trustee or the Beneficiary or jeopardize the interest of the Trustee or the Beneficiary in the Collateral.  Except as disclosed to BOCO in writing, Grantors have no knowledge of any past or existing material violations of any such laws, ordinances or regulations issued by any governmental authority.
 Section 3.13 Permits Affecting Properties.  Grantors have obtained all licenses, operating bonds, reclamation bonds, permits, authorizations and approvals from all governments, governmental commissions, boards and other agencies required in respect of their present use of and operations on the Lands. 
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ARTICLE 4 - COVENANTS 
 Section 4.1 Affirmative Covenants.  Grantors covenant and agree that so long as any of the Obligations secured hereby remain unpaid or outstanding (except as may be specifically set forth in the Pledge Agreement):
 (a) Due Payment.  Grantors will promptly pay when due, or within any applicable grace periods with respect thereto, any and all amounts for which they are obligated under the terms of this Deed of Trust and the Pledge Agreement and will comply with all of the terms and provisions thereof and hereof;
 (b) Perfection; Maintenance of Liens.  Grantors shall promptly, at Grantors’ own expense and insofar as not contrary to applicable law, execute such documents and provide such authorizations as Beneficiary may request so that Beneficiary may file and refile in such offices, at such times and as often as may be necessary, any instrument as may be necessary to create, perfect, maintain and preserve the lien and security interest intended to be created hereby and the rights and remedies hereunder; shall promptly furnish to the Trustee evidence satisfactory to the Trustee of all such filings and refilings; and otherwise shall do all things necessary or expedient to be done to effectively create, perfect, maintain and preserve the liens and security interests intended to be created hereby as a valid lien of first priority on real property and fixtures and a perfected security interest in personal property and fixtures, subject to Permitted Liens.  Grantors hereby authorize the Trustee and the Beneficiary to file this Deed of Trust and one or more financing or continuation statements, and amendments thereto, relative to any or all of the Collateral;
 (c) Maintenance of Lands.  Grantors will (i) cause each of the Water Rights and Access Rights owned, held or hereafter acquired by or for Grantors and necessary or appropriate to the operation of a mine or mines upon the Lands to be kept in full force and effect by the payment of whatever sums may become payable and by the fulfillment of whatever other obligations, and the performance of whatever other acts may be required to the end that forfeiture or termination of each such interest shall be prevented unless the termination, forfeiture or other relinquishment of the interest is authorized by any operating plan or plan of operations then in effect thereunder, (ii) conduct all drilling, mining, exploratory work and related operations and activities in accordance with applicable federal, state and local laws and good and minerlike practice, (iii) maintain Grantors as the sole owners of, and retain exclusive possession of, all Lands, free and clear of all Liens, subject, in the case of State Mining Claims , only to the paramount title of the State of Alaska and Permitted Liens, (iv) timely pay all required claim maintenance fees, and timely record and file in the appropriate county, state and federal offices adequate affidavits and notices of timely payment of such fees, and amend, relocate, and locate new mining claims with respect to those mining claims as reasonably necessary to protect the Grantors’ and the Trustee’s interest in the Collateral, (v) timely make all payments and perform all obligations to prevent the forfeiture or termination of any portion of the Lands, (vi) permit the Trustee and the Beneficiary, through their employees, representatives and agents, to enter upon the Lands at any time, subject to appropriate safety procedures, for the purpose of investigating and inspecting the condition and operation of the Collateral, and do all other things necessary or proper to enable the Trustee and the Beneficiary to exercise this right upon reasonable notice at such times as the Trustee or the Beneficiary may reasonably request, and (vii) do all other things necessary to preserve and maintain the right, title and interest of the Trustee and the Beneficiary in the Collateral.  Grantors shall not abandon all or any portion of the Lands that are producing or capable of commercial production or forfeit, surrender or release any lease, sublease, operating agreement or other agreement or instrument comprising or affecting the Collateral without the Beneficiary’s consent;
 (d) Maintenance of State Mining Claims.  To the extent not otherwise addressed herein, Grantors covenant and agree to timely pay all rentals, royalties, fees, and other required payments and to timely make all filings and recordings, including affidavits of labor, and to otherwise timely take all other necessary actions and pay such amounts relating to the preservation, maintenance, continuance and validity of the State Mining Claims as may be required by any federal, state or local governmental authority, including making of cash in lieu labor payments to the State of Alaska on or before August 1st of each year.  Grantors further covenant and agree to provide the Beneficiary, on or before August 1 of each year, written notice and evidence of the performance of annual labor or making of a cash in lieu labor payment and other required payments and the filing of the affidavit of performance of annual labor and recording of such affidavit.  In the event that the Beneficiary has not received the notice and evidence described in the preceding sentence by August 1, the Trustee or the Beneficiary may, on behalf of the Grantors, make and pay any rental, royalty, fee or other required payments, in which event the Grantors shall promptly reimburse the Trustee and the Beneficiary for any such payments, with interest at the rate set forth in the Pledge Agreement or the maximum rate permitted by applicable law, whichever is greater, in addition to any costs and expenses incurred in making such payments, and all such amounts shall be Obligations hereunder;
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(e) Maintenance of Collateral.  Grantors will keep all Improvements, Personal Property, inventory and fixtures of every kind now or hereafter included in the Collateral in good working order and condition (ordinary wear and tear excepted), and all repairs, renewals, replacements, additions, substitutions and improvements needful to such end shall be promptly made. Grantors will comply in all material respects with all of the terms and conditions of all leases, agreements and other instruments of title and all Access Rights and privileges necessary for the proper operation of such leases and instruments, and otherwise do all things necessary to keep Grantors’ rights and Beneficiary’s interest in the Collateral unimpaired;
 (f) Compliance with Laws and Permits.  Grantors will (i) comply in all material respects with all lawful rulings and regulations of each regulatory authority having jurisdiction over Grantors or the Lands; (ii) conduct any and all operations and activities on the Lands in compliance in all material respects with applicable federal, state and local laws, rules and regulations and with all Permits; (iii) reclaim the Lands in accordance with applicable federal, state and local laws, rules and regulations and all Permits; and (iv) obtain and maintain in full force and effect all Permits necessary or appropriate for the use or operation of the Collateral or activities on the Lands, in each case as currently conducted;
 (g) Payment of Obligations.  Grantors will pay when due all liabilities and obligations of any nature, including all liabilities and obligations for labor, material, equipment and contracted services, incurred in or arising from the administration, operation or use of the Lands and the other Collateral;
 (h) Protection of Collateral.  Grantors will protect every part of the Collateral from removal, destruction and damage, and will protect same from the doing or suffering to be done of any act, other than the use of the Collateral as hereby contemplated, whereby the value of the Collateral may be lessened;
 (i) Insurance.  Grantors will carry (i) workmen’s compensation insurance covering persons who are employed by or for the benefit of Grantors or the Mine in compliance with applicable laws, and (ii) other insurance as may be required by the Pledge Agreement;
 (j) Further Assurances.  Grantors shall execute, acknowledge and deliver to the Trustee and the Beneficiary all and any such other and further instruments, documents and certificates and do and perform such other acts as in the opinion of the Trustee or the Beneficiary may be necessary or desirable to implement, effect and maintain the intent of this Deed of Trust, upon the reasonable request of the Trustee or the Beneficiary, and at Grantors’ expense;
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(k) Defend Title.  Grantors warrant and shall forever defend the Collateral against every person whomsoever lawfully claiming the same or any part thereof, and Grantors shall maintain and preserve the lien and security interest herein created until this instrument has been terminated and released as provided herein.  If the title or the right of Grantors or the Trustee or the Beneficiary to the Lands or any other Collateral or any part thereof shall be challenged or attacked, either directly or indirectly, or if any legal proceedings are commenced against Grantors or all or any portion of the Lands, Grantors shall promptly give written notice thereof to the Trustee and, at Grantors’ own expense, shall proceed diligently to defend against any such attack or proceedings, and the Trustee and the Beneficiary may take such independent action in connection therewith as either of them may, in its reasonable discretion, deem advisable to protect its interest in the Collateral, and all costs, expenses and reasonable attorneys’ fees incurred by the Trustee or the Beneficiary in connection therewith shall be a demand obligation owing by Grantors, and shall bear interest at the rate set forth in the Pledge Agreement or the maximum rate permitted by applicable law, whichever is greater, from the date such expenses are incurred until paid, and shall be part of the Obligations;
 (l) Change in Mining Law.  In the event of the repeal or modification of the current General Mining Law of 1872 or Alaska Mining Law (Alaska Stat. §§ 38.05.185-275) during the term of this Deed of Trust, such that the interest of Grantors in those lands which are material to the exploration, development or operation of the Lands is affected, modified or transformed, Grantors will use their best efforts to retain their interest in those lands and will consult with the Trustee and the Beneficiary to determine how best to preserve the interest of Grantors and the interest of the Trustee and the Beneficiary in the affected Collateral, and Grantors shall take no action, which in the reasonable opinion of the Trustee or the Beneficiary or their counsel could adversely affect or materially impair their interest in the Collateral or under this Deed of Trust;
 (m) Information.  Grantors shall promptly furnish to the Trustee and the Beneficiary such information concerning Grantors, Grantors’ business affairs and financial condition, the Collateral and the operations and financial condition of Grantors, as the Trustee or the Beneficiary may reasonably request; and
 (n) Access.  Grantors shall keep proper books, records and accounts in which complete and correct entries shall be made of Grantors’ transactions in accordance with generally accepted accounting principles, and shall keep the records concerning the accounts and contract rights included in the Collateral at Grantors’ respective place(s) of business, and the Trustee and the Beneficiary shall have the right to inspect such records, and Grantors shall furnish copies upon reasonable request and upon reasonable notice.
 Section 4.2 Negative Covenants.  Grantors covenant and agree that, so long as any of the Obligations secured hereby remains unpaid or outstanding, Grantors shall not, either directly or indirectly:
 (a) No Disposition of Assets.  Except as permitted under the Pledge Agreement or this Deed of Trust, sell, transfer, assign, convey or otherwise dispose of all or any part of the Collateral;
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(b) No Debt.  Except as permitted under the Pledge Agreement or this Deed of Trust, incur, create, issue, assume or permit any borrowing or indebtedness to exist or incur, create or enter into any guaranty of any obligation of any other person or entity;
 (c) No Liens.  Except as permitted under the Pledge Agreement or this Deed of Trust, incur, create, grant, assume, allow or suffer to exist any Lien on all or any part of the Lands or any other Collateral, except Permitted Liens; or
 (d) Changes in Business.  Except as permitted under the Pledge Agreement or this Deed of Trust, liquidate or dissolve, or enter into any consolidation, merger, amalgamation, or sale or enter into any partnership, joint venture or other combination, where such transaction involves a contribution by Grantors of all or a significant portion of the Collateral, or sell, lease or dispose of the business or the assets of any Grantor.
 ARTICLE 5 - DEFAULT
 The occurrence of any one or more of the following events in Section 5.1(a) through Section 5.1(f) shall constitute an “Event of Default”:
 Section 5.1 Events of Default.  The term “Event of Default” shall have the meaning given thereto in the Pledge Agreement, but shall also include the occurrence or the existence of any of the following conditions:
 (a) The failure by any Grantor to keep, punctually perform, or observe any of the covenants, agreements, obligations or prohibitions contained herein, in the Pledge Agreement, in any other written instrument evidencing any of the Obligations or in any other agreement with the Trustee or the Beneficiary (whether now existing or entered into hereafter), and such failure remains unremedied for a period of thirty (30) days after written notice of such failure by Beneficiary to Grantors; or
 (b) This Deed of Trust or any other collateral security granted by Grantors with respect to the Obligations shall fail to constitute a valid and enforceable, perfected first priority security interest in or lien on any Collateral for any reason, subject to any Permitted Liens, or any Grantor shall so state in writing or any Grantor shall take or agree to take any action threatening the validity, perfection or priority of any such security interest; or
 (c) Any governmental authority shall condemn, seize or appropriate all or any portion of the Collateral that is material to the financial condition, business or operations of any Grantor or the Lands; or
 (d) The voluntary or involuntary dissolution, merger, consolidation, winding up or reorganization of any Grantor or the occurrence of any action preparatory thereto; or
 (e) The assertion (except by the owner of an encumbrance expressly excepted from Grantors’ warranty of title herein) of any claim of priority over this instrument, by title, lien or otherwise, unless Grantors within 30 days after such assertion either cause the assertion to be withdrawn or provide the Beneficiary with such further or additional security as the Beneficiary may require to protect the Beneficiary against all loss, damage, or expense, including attorneys’ fees, which the Beneficiary may incur in the event such assertion is upheld.
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Section 5.2 Acceleration Upon Default.  Upon the occurrence of any Event of Default, or at any time thereafter during the continuance of an Event of Default, the Beneficiary may, at its option, by notice to Grantors, declare all Obligations to be due and payable forthwith without any further notice, presentment or demand of any kind, all of which are hereby expressly waived.
 Section 5.3 Possession and Operation of Property.  Upon the occurrence of any Event of Default, or at any time thereafter during the continuance of an Event of Default, and in addition to all other rights therein conferred on the Trustee or the Beneficiary, the Trustee, the Beneficiary or any person, firm or corporation designated by the Beneficiary, will have the right and power, but will not be obligated, to have an audit performed, at Grantors’ expense, of the books and records of any Grantor, and to enter upon and take possession of all or any part of the Collateral, to exclude any Grantor therefrom, and to hold, use, administer and manage the same to the extent that any Grantor could do so.  The Trustee, the Beneficiary or any person, firm or corporation designated by the Beneficiary, may manage the Collateral, or any portion thereof, without any liability to Grantors in connection with such management; and the Trustee, the Beneficiary or any person, firm or corporation designated by the Beneficiary will have the right to collect, receive and demand for all Products  produced and sold from the Lands, and to exercise every power, right and privilege of Grantors with respect to the Collateral.  Providing there has been no foreclosure sale, when and if the expenses of the management of the Collateral have been paid and the Obligations irrevocably paid and satisfied in full, the remaining Collateral shall be returned to Grantors.
 Section 5.4 Ancillary Rights.  Upon the occurrence of an Event of Default, and in addition to all other rights of the Beneficiary hereunder, the Beneficiary may, without notice, demand or declaration of default, all of which are hereby expressly waived by Grantors, proceed by a suit or suits in equity or at law (i) for the seizure and sale of the Collateral or any part thereof, (ii) for the specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, (iii) for the foreclosure or sale of the Collateral or any part thereof under the judgment or decree of any court of competent jurisdiction, (iv) without regard to the solvency or insolvency of any person, and without regard to the value of the Collateral, and without notice to Grantors (notice being hereby expressly waived), for the ex parte appointment of a receiver to serve without bond pending any foreclosure or sale hereunder, or (v) for the enforcement of any other appropriate legal or equitable remedy.
 Section 5.5 Availability of Rights and Remedies; Cumulative Rights and Remedies.  Upon the occurrence of an Event of Default, all of the rights and remedies provided to the Trustee or the Beneficiary in this Deed of Trust and any other collateral security documents shall immediately become available to the Trustee and the Beneficiary, and the Trustee and the Beneficiary shall have all other rights and remedies available at law or in equity.  All rights and remedies of the Trustee and the Beneficiary set out in this Deed of Trust, any other collateral security document and as otherwise available at law or in equity are cumulative, and no right or remedy contained herein or therein is intended to be exclusive; each such right and remedy is in addition to every other right and remedy contained in this Deed of Trust, any other collateral security document or in any existing or future agreement or now or in the future existing at law, in equity, by statute or otherwise.  Every right, power and remedy given by this Deed of Trust to the Trustee or the Beneficiary or to which either of them may be otherwise entitled, may be exercised concurrently or independently, from time to time and as often as may be deemed expedient by the Trustee or the Beneficiary, and either of them may pursue inconsistent remedies.
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ARTICLE 6 - BENEFICIARY’S RIGHTS AS TO REALTY COLLATERAL UPON DEFAULT
 Section 6.1 Deed of Trust or Mortgage.  Upon the occurrence of an Event of Default, the Beneficiary or the Trustee may declare all sums secured hereby immediately due and payable either by commencing an action to foreclose this Deed of Trust, or by the delivery to the Trustee of a written declaration of default and demand for sale and of written notice of default and of election to cause the Collateral to be sold, which notice the Trustee shall cause to be duly filed for record in case of foreclosure by exercise of the power of sale herein.  The decision by the Beneficiary to pursue its remedies and foreclose either by exercise of the power of sale (and as otherwise set forth herein) or by judicial foreclosure (and as otherwise set forth herein) may be made by the Beneficiary at the Beneficiary’s sole option and discretion. 
 Section 6.2 Judicial Foreclosure.  Upon the occurrence of an Event of Default, in lieu of the exercise of the non-judicial power of sale hereafter given, the Beneficiary may, subject to any mandatory requirement of applicable law, proceed by suit to foreclose its lien hereunder and to sell or have sold the Collateral or any part thereof at one or more sales, as an entirety or in parcels, at such place or places and otherwise, in such manner and upon such notice as may be required by law, or, in the absence of any such requirement, as the Beneficiary may deem appropriate, and the Beneficiary shall thereafter make or cause to be made a conveyance to the purchaser or purchasers thereof.  The Beneficiary may postpone the sale of the real property included in the Collateral or any part thereof by public announcement at the time and place of such sale, and from time to time thereafter may further postpone such sale by public announcement made at the time of sale fixed by the preceding postponement.  Sale of a part of the real property included in the Collateral will not exhaust the power of sale, and sales may be made from time to time until all such property is sold or the Obligations are paid in full.
 Section 6.3 Non-Judicial Foreclosure; Power of Sale.  Upon the occurrence of an Event of Default, the Trustee is hereby authorized and empowered, and it shall be its duty, upon request of the Beneficiary, and to the extent permitted by applicable law, to exercise the power of sale contained herein and sell any part of the Collateral at one or more sales, as an entirety or in parcels, at such place or places and otherwise in such manner and upon such notice as may be required by applicable law, or in the absence of any such requirement, as Beneficiary may deem appropriate, and Trustee shall make conveyance to the purchaser or purchasers thereof.  Any sale shall be made to the highest bidder for cash at the door of the county courthouse of, or in such other place as may be required or permitted by applicable law in, the county in the state where the Collateral or any part thereof is situated; provided that and if the  Collateral lies in more than one county, such part of the Collateral may be sold at the courthouse door of any one of such counties, and the notice so posted shall designate in which county such property shall be sold. Any such sale shall be made at public outcry, on the day of any month, during the hours of such day and after such written notices thereof have been published, recorded and publicly posted in such places and for such time periods and after all persons entitled to notice thereof have been sent such notice, all as required by applicable law in effect at the time of such sale.  The affidavit of any person having knowledge of the facts to the effect that such a service and notice was completed shall be prima facie evidence of the fact of service and notice.  Grantors agree that no notice of any sale, other than as required by applicable law, need be given by Grantors, the Beneficiary or any other person.  Each Grantor hereby designates as its address for the purposes of such notice the address set out on page one hereof; and agrees that such address shall be changed only by depositing notice of such change enclosed in a postpaid wrapper in a post office or official depository under the care and custody of the United States Postal Service, certified mail, postage prepaid, return receipt requested, addressed to the Beneficiary or other holder of the Obligations at the address for the Beneficiary set out herein (or to such other address as the Beneficiary or other holder of the Obligations may have designated by notice given as above provided to Grantors and such other debtors).  Any such notice or change of address of Grantors or other debtors or of the Beneficiary or of other holder of the Obligations shall be effective upon receipt.  Grantors authorize and empower the Trustee to sell the Collateral in lots or parcels or in its entirety as the Trustee shall deem expedient; and to execute and deliver to the purchaser or purchasers thereof good and sufficient deeds of conveyance thereto, and the title of such purchaser or purchasers when so made by the Trustee, Grantors bind themselves to warrant and forever defend, subject to Permitted Liens and the paramount ownership of the State of Alaska as to any State Mining Claims.  Where portions of the Collateral lie in different counties, sales in such counties may be conducted in any order that the Trustee may deem expedient; and one or more such sales may be conducted in the same month, or in successive or different months as the Trustee may deem expedient.
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ARTICLE 7 - BENEFICIARY’S RIGHTS AS TO PERSONALTY AND FIXTURE COLLATERAL UPON DEFAULT
 Section 7.1 Personalty Collateral.  Upon the occurrence of an Event of Default, the Beneficiary may, without notice to Grantors, exercise its rights to declare all of the Obligations to be immediately due and payable, in which case the Beneficiary will have all rights and remedies granted by law, and particularly by the UCC, including, but not limited to, the right to take possession of any and all Collateral constituting personal property (the “Personalty Collateral”), and for this purpose the Beneficiary may enter upon any premises on which any or all of the Personalty Collateral is situated and take possession of and operate the Personalty Collateral or remove it therefrom.  The Beneficiary may require Grantors to assemble the Personalty Collateral and make it available to the Beneficiary or the Trustee at a place to be designated by Beneficiary which is reasonably convenient to all parties.  Unless the Personalty Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Beneficiary will give Grantors reasonable notice of the time and place of any public sale or of the time after which any private sale or other disposition of the Personalty Collateral is to be made.  This requirement of sending reasonable notice will be met if the notice is mailed, postage prepaid, to Grantors at the address designated above at least ten (10) days before the time of the sale or disposition.
 Section 7.2 Sale with Realty Collateral.  In the event of foreclosure, whether judicial or non-judicial, at the Beneficiary’s option it may proceed under the Uniform Commercial Code as to the Personalty Collateral or it may proceed as to both Personalty Collateral and Collateral constituting real property in accordance with its rights and remedies in respect of the Collateral constituting real property.
 Section 7.3 Private Sale.  If the Beneficiary in good faith believes that any state or federal law prohibits or restricts the customary manner of sale or distribution of any of the Personalty Collateral, or if the Beneficiary determines that there is any other restraint or restriction limiting the timely sale or distribution of any such property in accordance with the customary manner of sale or distribution, the Beneficiary may sell or may cause the Trustee to sell such property privately or in any other manner it deems advisable at such price or prices as it determines in its sole discretion and without any liability whatsoever to Grantors in connection therewith.  Grantors recognize and agree that such prohibition or restriction may cause such property to have less value than it otherwise would have and that, consequently, such sale or disposition by the Beneficiary may result in a lower sales price than if the sale were otherwise held.
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ARTICLE 8 - OTHER PROVISIONS CONCERNING FORECLOSURE
 Section 8.1 Possession and Delivery of Collateral.  It shall not be necessary for the Beneficiary or the Trustee to have physically present or constructively in its possession any of the Collateral at any foreclosure sale, and Grantors shall deliver to the purchasers at such sale on the date of sale the Collateral purchased by such purchasers at such sale, and if it should be impossible or impracticable for any of such purchasers to take actual delivery of the Collateral, then the title and right of possession to the Collateral shall pass to the purchaser at such sale as completely as if the same had been actually present and delivered.
 Section 8.2 Beneficiary as Purchaser.  The Beneficiary will have the right to become the purchaser at any foreclosure sale, and it will have the right to credit upon the amount of the bid the amount payable to it out of the net proceeds of sale.  If Beneficiary is the successful bidder at such sale and upon compliance with the terms of any sale, the Beneficiary may hold, retain, possess and dispose of such property in its own absolute right without further accountability, subject to any applicable rights of redemption, if any.
 Section 8.3 Recitals Conclusive; Warranty Deed; Ratification.  Recitals contained in any conveyance to any purchaser at any sale made hereunder will conclusively establish the truth and accuracy of the matters therein stated, including, without limiting the generality of the foregoing, nonpayment of the unpaid principal sum of, and the interest accrued on, the written instruments constituting part or all of the Obligations after the same have become due and payable, nonpayment of any other of the Obligations or advertisement and conduct of the sale in the manner provided herein, and appointment of any successor Trustee hereunder.  Grantors ratify and confirm all legal acts that Beneficiary and/or Trustee may do in carrying out the provisions of this instrument.
 Section 8.4 Effect of Sale.  Subject to any applicable rights of redemption, if any, any sale or sales of the Collateral or any part thereof will operate to divest all right, title, interest, claim and demand whatsoever, either at law or in equity, of Grantors in and to the premises and the property sold, and will be a perpetual bar, both at law and in equity, against Grantors, Grantors’ successors or assigns and against any and all persons claiming or who shall thereafter claim all or any of the property sold from, through or under Grantors, or Grantors’ successors or assigns.  Subject to applicable rights of redemption under applicable law, the purchaser or purchasers at the foreclosure sale will receive immediate possession of the property purchased; and if any Grantor retains possession of the Collateral, or any part thereof, subsequent to sale, such Grantor will be considered a tenant at sufferance of the purchaser or purchasers, and if such Grantor remains in such possession after demand of the purchaser or purchasers to remove, such Grantor will be guilty of unlawful detainer and will be subject to eviction and removal, forcible or otherwise, and Grantors hereby waive and release any right to damages arising out of such removal.
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Section 8.5 Application of Proceeds.  The proceeds of any sale of the Collateral or any part thereof will be applied as follows:
 (a) first, to the payment of all out of pocket expenses incurred by the Trustee and Beneficiary in connection therewith, including, without limiting the generality of the foregoing, court costs, legal fees and expenses, fees of accountants, engineers, consultants, agents or managers and expenses of any entry or taking of possession, holding, valuing, preparing for sale, advertising, selling and conveying;
 (b) second, to the payment of the Obligations; and
 (c) third, any surplus thereafter remaining to Grantors or Grantors’ successors or assigns, as their interests may be established to Beneficiary’s reasonable satisfaction.
 Section 8.6 Deficiency.  Subject to applicable law, Grantors will remain liable for any deficiency owing to the Beneficiary after application of the net proceeds of any foreclosure sale.
 Section 8.7  Grantors’ Waiver of Appraisement, Marshaling, Etc.  Grantors agree that Grantors will not at any time insist upon or plead or in any manner whatsoever claim the benefit of any appraisement, valuation, stay, extension or redemption law now or hereafter in force, in order to prevent or hinder the enforcement or foreclosure of this instrument, the absolute sale of the Collateral or the possession thereof by any purchaser at any sale made pursuant to this instrument or pursuant to the decree of any court of competent jurisdiction.  Grantors, for themselves and all who may claim through or under them, hereby waives the benefit of all such laws and to the extent that Grantors may lawfully do so under applicable state law, waive any and all right to have the Collateral marshaled upon any foreclosure of the lien hereof or sold in inverse order of alienation and, Grantors agree that the Collateral may be sold as an entirety.
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ARTICLE 9 -MISCELLANEOUS
 Section 9.1 Recording and Filing.  Grantors shall pay all costs of filing, registering and recording this and every other instrument in addition or supplemental hereto and all financing statements the Beneficiary may require, in such offices and places and at such times and as often as may be, in the judgment of the Beneficiary, necessary to preserve, protect and renew the lien and security interest herein created as a first lien and prior security interest on and in the Collateral and otherwise do and perform all matters or things necessary or expedient to be done or observed by reason of any law or regulation of any State or of the United States or of any other competent authority for the purpose of effectively creating, maintaining and preserving the lien and security interest created herein and on the Collateral and the priority thereof.  Grantors shall also pay the costs of obtaining reports from appropriate filing officers concerning financing statement filings in respect of any of the Collateral in which a security interest is granted herein.
 Section 9.2 Trustee’s and Beneficiary’s Right to Perform Grantors’ Obligations.  Grantors agree that, upon the occurrence of an Event of Default, the Beneficiary or the Trustee or any receiver appointed hereunder may, but shall not be obligated to, perform or cause to be performed such act causing such Event of Default, and any expense incurred by the Beneficiary or the Trustee in so doing shall be a demand obligation owing by Grantors to the Beneficiary, shall bear interest at the rate set forth in the Pledge Agreement or the maximum rate permitted by applicable law, whichever is greater, until paid and shall be a part of the Obligations, and the Beneficiary, the Trustee or any receiver shall be subrogated to all of the rights of the party receiving the benefit of such performance.  The undertaking of such performance by the Beneficiary, the Trustee or any receiver as aforesaid shall not obligate such person to continue such performance or to engage in such performance or performance of any other act in the future, shall not relieve Grantors from the observance or performance of any covenant, warranty or agreement contained in this instrument or constitute a waiver of default hereunder and shall not affect the right of the Beneficiary to accelerate the payment of all indebtedness and other sums secured hereby or to resort to any other of its rights or remedies hereunder or under applicable law.  In the event the Beneficiary, the Trustee or any receiver appointed hereunder undertakes any such action, no such party shall have any liability to any Grantor.
 Section 9.3 Discharge of Purchaser.  Upon any sale made under the powers of sale herein granted and conferred, the receipt of Beneficiary will be sufficient discharge to the purchaser or purchasers at any sale for the purchase money, and such purchaser or purchasers and the heirs, devisees, personal representatives, successors and assigns thereof will not, after paying such purchase money and receiving such receipt of Beneficiary, be obliged to see to the application thereof or be in anywise answerable for any loss, misapplication or nonapplication thereof.
 Section 9.4 Indebtedness of Obligations Absolute.  Nothing herein contained shall be construed as limiting the Beneficiary to the collection of any indebtedness of Grantors to the Beneficiary only out of the income, revenue, rents, issues and profits from the Collateral or as obligating the Beneficiary to delay or withhold action upon any default which may be occasioned by failure of such income or revenue to be sufficient to retire the principal or interest when due on the indebtedness secured hereby.  It is expressly understood between the Beneficiary and Grantors that any indebtedness of Grantors to the Beneficiary secured hereby shall constitute an absolute, unconditional obligation of Grantors to pay as provided herein or therein in accordance with the terms of the instrument evidencing such indebtedness in the amount therein specified at the maturity date or at the respective maturity dates of the installments thereof, whether by acceleration or otherwise.
 Section 9.5 Defense of Claims.  The Trustee will promptly notify Grantors and the Beneficiary in writing of the commencement of any legal proceedings affecting Beneficiary’s or Trustee’s interest in the Collateral, or any part thereof, and shall take such action, employing attorneys acceptable to the Beneficiary (acting reasonably), as may be necessary to preserve the Grantors’, the Trustee’s and the Beneficiary’s rights affected thereby; and should Grantors fail or refuse to take any such action, the Trustee or the Beneficiary may take the action on behalf of and in the name of Grantors and at Grantors’ expense.  Moreover, the Beneficiary or the Trustee on behalf of Beneficiary may take independent action in connection therewith as they may in their discretion deem proper, and Grantors hereby agree to make reimbursement for all sums advanced and all expenses incurred in such actions plus interest at the rate set forth in the Pledge Agreement or the maximum rate permitted by applicable law, whichever is greater.
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Section 9.6 Termination and Reconveyance.  If all the Obligations are irrevocably and finally paid in full, the covenants herein contained are well and truly performed, and the Pledge Agreement is terminated and no longer in effect, and if Grantors and the Beneficiary intend at such time that this instrument not secure any obligation of Grantors thereafter arising, then the Beneficiary shall, at Grantors’ cost and expense, deliver or cause to be delivered to Grantors proper instruments executed by the Trustee evidencing the reconveyance of this instrument.  Until such delivery, this instrument shall remain and continue in full force and effect.  All indemnifications provided by Grantors for the benefit of the Trustee and/or the Beneficiary shall survive any release, termination or reconveyance of this Deed of Trust and shall remain in full force and effect. 
 Section 9.7 Renewals, Amendments and Other Security.  Renewals, restatements, replacements and extensions of the Obligations may be given at any time, amendments may be made to the agreements with third parties relating to any part of the Obligations or the Collateral, and the Beneficiary or the Trustee may take or hold other security for the Obligations without notice to or consent of Grantors.  The Trustee or the Beneficiary may resort first to other security or any part thereof, or first to the security herein given or any part thereof, or from time to time to either or both, even to the partial or complete abandonment of either security, and such action will not be a waiver of any rights conferred by this instrument.
 Section 9.8 Successor Trustees.  The Trustee may resign in writing addressed to Beneficiary or be removed at any time with or without cause by an instrument in writing duly executed by Beneficiary.  In case of the resignation or removal of the Trustee, a successor Trustee may be appointed by Beneficiary by instrument of substitution complying with any applicable requirements of law, and in the absence of any such requirement, without other formality than an appointment and designation in writing.  Any appointment and designation will be full evidence of the right and authority to make the same and of all facts therein recited.  Upon the making of any appointment and designation, all the estate and title of the Trustee in all of the Collateral will vest in the named successor Trustee, and the successor will thereupon succeed to all the rights, powers, privileges, immunities and duties hereby conferred upon the Trustee.  All references herein to the Trustee will be deemed to refer to the Trustee from time to time acting hereunder.
 Section 9.9 Limitations on Interest.  No provision of the Pledge Agreement, this Deed of Trust, or other instrument constituting or evidencing any of the Obligations or any other agreement between the parties shall require the payment or permit the collection of interest in excess of the maximum non-usurious rate which Grantors may agree to pay under applicable laws.  The intention of the parties being to conform strictly to applicable usury laws now in force, the interest on the principal amount of the Pledge Agreement and the interest on other amounts due under and/or secured by this instrument shall be held to be subject to reduction to the amount allowed under said applicable usury laws as now or hereafter construed by the courts having jurisdiction, and any excess interest paid—when considering the Obligations as a whole—shall first be applied to principal then outstanding under the Obligations, with any remainder credited to Grantors as applicable.
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Section 9.10 Effect of Instrument.  This instrument shall be deemed and construed to be, and may be enforced as, an assignment, chattel mortgage or security agreement, common law pledge, contract, deed of trust, financing statement, and as any one or more of them if appropriate under applicable state law.  This instrument shall be effective as a financing statement covering minerals, As-Extracted Collateral or the like and accounts subject to Article 9 of the UCC as enacted in the appropriate jurisdiction and is to be filed for record in the Office of the County Recorder or other appropriate office of each county where any part of the Collateral is situated.  A carbon, photographic, or other reproduction of this Deed of Trust or of any financing statement relating to this Deed of Trust shall be sufficient as a financing statement. 
 Section 9.11 Unenforceable or Inapplicable Provisions.  If any provision hereof or of any of the written instruments constituting part or all of the Obligations is invalid or unenforceable in any jurisdiction, whether with respect to all parties hereto or with respect to less than all of such parties, the other provisions hereof and of the written instruments will remain in full force and effect in that jurisdiction with respect to the parties as to which such provision is valid and enforceable, and the remaining provisions hereof will be liberally construed in favor of Beneficiary in order to carry out the provisions hereof.  The invalidity of any provision of this instrument in any jurisdiction will not affect the validity or enforceability of any provision in any other jurisdiction.
 Section 9.12 Rights Cumulative.  
 (a) Each and every right, power and remedy given to the Beneficiary herein or in any other written instrument relating to the Obligations will be cumulative and not exclusive; and each and every right, power and remedy whether specifically given herein or otherwise existing may be exercised from time to time and as often and in such order as may be deemed expedient by the Beneficiary, and the exercise, or the beginning of the exercise, of any such right, power or remedy will not be deemed a waiver of the right to exercise, at the same time or thereafter, any other right, power or remedy.  No waiver, delay, omission, or forbearance by the Beneficiary of any right, power or remedy hereunder or under applicable law on any occasion will act as, or shall be deemed to be, a bar to the exercise of any right, power or remedy on any subsequent occasion or shall otherwise exhaust or impair any such right, power or remedy or shall be deemed to waive any Event of Default or to constitute acquiescence.  Every right, power and remedy given to the Trustee or the Beneficiary may be exercised from time to time and as often as may be deemed expedient by the Trustee or the Beneficiary.
 (b) No failure on the part of the Beneficiary to exercise, no course of dealing with respect to, and no delay on the part of the Beneficiary in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power, privilege or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy. 
 (c) In the event that the Beneficiary shall have instituted any proceeding to enforce any right, power, privilege or remedy under this Deed of Trust or any other documents executed in connection with the Obligations by foreclosure, sale, entry or otherwise, and such proceeding shall have been halted, discontinued, delayed or abandoned for any reason, then and in every such case, the Grantors and the Beneficiary shall be restored to their respective former positions and rights hereunder with respect to the Collateral, and all rights, remedies, privileges and powers of the Beneficiary shall continue as if no such proceeding had been instituted.
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Section 9.13 Non-Waiver.  No act, delay, omission or course of dealing between the Beneficiary and Grantors will be a waiver of any of the Beneficiary’s rights or remedies hereunder or under applicable law.  No waiver, change or modification in whole or in part of this instrument or any other written instrument will be effective unless in a writing signed by the Beneficiary.
 Section 9.14 Beneficiary’s Expenses.  Grantors agree to pay in full all reasonable costs and expenses, including attorneys’ fees, of the Beneficiary or the Trustee which may have been or may be incurred by the Beneficiary or the Trustee in connection with the collection of the Obligations and the enforcement of any of Grantors’ obligations hereunder and under any documents executed in connection with the Obligations.
 Section 9.15 Indemnification.  In addition to any other indemnifications or similar obligations contained in this instrument or elsewhere, Grantors hereby indemnify, save and hold harmless, and agree to defend, the Beneficiary and the Trustee, their respective successors and assigns, their respective affiliates and their respective directors, partners, managers, principals, officers, employees, agents, consultants and representatives (each, an “Indemnified Party”) from, and no such Indemnified Party shall be liable for, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, fines, suits, costs, charges, claims, taxes, fees, expenses, payments or disbursements of any kind whatsoever, including attorneys’ fees and expenses (collectively “Losses”) which may at any time (including, without limitation, at any time following the payment of the Obligations) be imposed on, incurred or suffered by or asserted or claimed against any Indemnified Party in any way relating to, arising out of or resulting from: (a) this Deed of Trust, the Pledge Agreement, or any instrument contemplated by or referred to herein or therein (including exercise by the Beneficiary or the Trustee of any right, power or remedy conferred upon it by this instrument or any other instrument pertaining hereto, or from the attempt or failure of the Beneficiary or the Trustee to exercise any such right, power or remedy); (b) the transactions contemplated hereby or by the Pledge Agreement; (c) any act or omission of Grantors; (d) the ownership, management, administration, development, operation, use, reclamation or condition of the Lands, the other Collateral, the Mine or any other property; (e) any actual or alleged presence or release of hazardous materials on, in or from any property owned or operated by Grantors, including the Lands or any portion of the Mine, or any environmental liability related in any way to Grantors or any Related Party, or any breach or violation of, or alleged breach or violation of, any environmental law by Grantors or any Related Party; and (f) the business, operations, activities, decisions or actions of Grantors.  Notwithstanding any provision hereof to the contrary, the foregoing indemnity shall in all respects survive, continue and remain in full force and effect even though all Obligations, indebtedness and other sums secured hereby may be fully paid and the lien of this instrument released.
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Section 9.16 Partial Releases.  In the event Grantors sell for monetary consideration or otherwise any portion of the Collateral, in compliance with and as permitted by the Pledge Agreement or this Deed of Trust, and upon delivery of the proceeds of such sale to Beneficiary for application toward the Obligations, the Beneficiary shall cause the Trustee to release the lien of this instrument with respect to the portion sold, at the reasonable request of Grantors, at Grantors’ cost and expense.  No release from the lien of this instrument of any part of the Collateral by Beneficiary shall in anywise alter, vary or diminish the force, effect or lien of this instrument on the balance or remainder of the Collateral. 
 Section 9.17 Subrogation.  This instrument is made with full substitution and subrogation of Beneficiary and Trustee in and to all covenants and warranties by others heretofore given or made in respect of the Collateral or any part thereof.
 Section 9.18 Notice.  All notices and deliveries of information hereunder shall be deemed to have been duly given if actually delivered or mailed by registered or certified mail, postage prepaid, addressed to the parties hereto at the addresses set forth above on page 1; if by mail, then as of the date of such mailing.  Each party may, by written notice so delivered to the others, change the address to which delivery shall thereafter be made.
 Section 9.19 Successors.  This instrument shall bind and inure to the benefit of the respective successors and assigns of the parties.
 Section 9.20 Interpretation.
 (a) Article and section headings used in this instrument are intended for convenience only and shall be given no significance whatever in interpreting and construing the provisions of this instrument.
 (b) As used in this instrument, “Beneficiary” and “Trustee” include their respective successors and assigns.  Unless context otherwise requires, words in the singular number include the plural and in the plural number include the singular.  Words of the masculine gender include the feminine and neuter gender and words of the neuter gender may refer to any gender.
 (c) Any reference to Grantors, any Grantor, a Grantor, the Grantor or other language referencing the Grantors, whether collectively or individually, shall be interpreted to refer to the Grantors, each Grantor, or an individual Grantor, as applicable, so as to maximize and preserve all rights of Beneficiary and Trustee under this Deed of Trust, the Pledge Agreement and the Obligations.  Reference to Grantors in lieu of a particular Grantor or each respective Grantor, or vis-a-versa, is not intended to, nor shall it be interpreted as, in any way limiting or affecting the rights of Beneficiary and Trustee hereunder.
 Section 9.21 Counterparts.  This instrument may be executed in any number of counterparts, each of which will for all purposes be deemed to be an original, and all of which are identical except that to facilitate recordation, in particular counterparts hereof, portions of Exhibit A hereto which describe properties situated in counties other than the county in which the counterpart is to be recorded may be omitted.
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Section 9.22 Survival of Representations and Warranties  All representations and warranties made hereunder and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Deed of Trust and the advance of any amounts or credit facilities in connection with the Pledge Agreement.
 Section 9.23 Rights Absolute.  All rights of the Trustee and the Beneficiary and the deed of trust, pledge, assignment, charge and security interest hereunder, and all obligations of the Grantors hereunder, shall be absolute and unconditional, irrespective of:
 (a) any lack of validity or enforceability of the Pledge Agreement or any other agreement or instrument relating thereto;
 (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the same, including, without limitation, any increase in the Obligations;
 (c) any taking, exchange, release or non-perfection of any other collateral, or any taking, release, amendment or waiver of or consent to departure from any guaranty, surety or support agreement for all or any of the Obligations;
 (d)any manner of application of collateral or proceeds thereof, to all or any of the Obligations, or any manner of sale or other disposition of any collateral for all or any of the Obligations or any other assets of any principal, guarantor or surety;
 (e) any change, restructuring or termination of the corporate or company structure or existence of Grantors or any affiliate thereof; and
 (f) any other circumstance that might otherwise constitute a defense available to, or a discharge of, Grantors or any affiliate of Grantors, any other Person liable for the Obligations or a third party guarantor or grantor of a security interest.
 Section 9.24 Joint and Several Liability. Grantors and any guarantor of the Obligations are engaged in related businesses and are integrated to such an extent that the financial strength and flexibility of each such party has a direct, tangible and immediate impact on the success of the other parties.  Grantors have and will continue to derive substantial and immediate direct and indirect benefit from the Pledge Agreement, Obligations, and the transactions entered into in connection therewith.  Grantors expressly waive any right to revoke, terminate or suspend this Deed of Trust and acknowledges that they entered into the Pledge Agreement and this Deed of Trust in contemplation of the benefits that they would receive by the same.  
 Section 9.25 Entire Agreement; Exhibits The Exhibits to this Deed of Trust form an integral part of this Deed of Trust and are incorporated herein by reference and expressly made a part hereof.  This Deed of Trust constitutes the entire agreement among the parties with respect to the subject matter hereof, superseding all prior statements, representations, discussions, agreements and understandings, oral or written, relating to such subject matter, including all term sheets and commitment letters.
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Section 9.26 No Obligation to Advance.  Grantors confirm that value has been given by the Beneficiary to Grantors, that Grantors have rights in the Collateral existing at the date of this Deed of Trust, and that Grantors and the Beneficiary have not agreed to postpone the time for attachment of the security interest granted hereby to any of the Collateral.  The security interest created by this Deed of Trust shall have effect and be deemed to be effective whether or not the Obligations or any part thereof are owing or in existence before or after or upon the date of this Deed of Trust.  Neither the execution and delivery of this Deed of Trust, nor the provision of any financial accommodation by Beneficiary, shall oblige Beneficiary to make any financial accommodation or further financial accommodation available to Grantors or any other Person.
 Section 9.27 Acknowledgments.  Grantors hereby acknowledge that: 
 (a) They have been advised by their own legal counsel in the negotiation, preparation, execution and delivery of this Deed of Trust and the Pledge Agreement; 
 (b) this Deed of Trust and the Pledge Agreement shall not be construed  against any party or more favorably in favor of any party based upon which party drafted the same, it being agreed and acknowledged that all parties contributed substantially to the negotiation and preparation of this Deed of Trust and the Pledge Agreement;
 (c) the Beneficiary has no fiduciary relationship with or duty to Grantors or any Related Party arising out of or in connection with this Deed of Trust or any other agreement, arrangement, Instrument or investment, and the relationship between the Beneficiary and the Grantors and any Related Party in connection herewith is solely that of debtor and creditor; 
 (d) No joint venture, partnership, mining partnership, agency relationship or fiduciary duty, and no joint venture, partnership, mining partnership, agency relationship or fiduciary duty exists, or shall be deemed to exist, between Beneficiary and Grantors or any Related Party;
 (e) Beneficiary is and has been acting solely as a principal, and Beneficiary has not been, is not, and will not be, acting as an advisor, agent or fiduciary for Grantors or any Related Party;
 (f) Beneficiary may be engaged in a broad range of transactions that involve interests that differ from those of Grantors, any Related Party and their affiliates, and Beneficiary has no obligation to disclose any such interests to Grantors, any Related Party or their affiliates; and
 (g) no Related Party will claim that the Beneficiary has rendered advisory services of any nature or with respect to, or owes a fiduciary or similar duty to, any Related Party in connection with this Deed of Trust, the Pledge Agreement or otherwise.
 Section 9.28 [Intentionally Omitted]
 Section 9.29 Governing Law.  This Deed of Trust shall be governed by the laws of the State of Alaska.
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Section 9.30 WAIVER OF JURY TRIAL.  GRANTORS HEREBY (a) COVENANT AND AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY A JURY, AND (b) WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH GRANTORS MAY BE PARTY, ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY PERTAINING TO THIS DEED OF TRUST AND/OR ANY TRANSACTIONS, OCCURRENCES, COMMUNICATIONS, OR UNDERSTANDINGS (OR THE LACK OF ANY OF THE FOREGOING) RELATING IN ANY WAY TO THE DEBTOR-CREDITOR RELATIONSHIP BETWEEN THE PARTIES.  IT IS UNDERSTOOD AND AGREED THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS DEED OF TRUST.  THIS WAIVER OF JURY TRIAL IS SEPARATELY GIVEN, KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY GRANTORS AND GRANTORS HEREBY AGREE THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  TRUSTEE AND BENEFICIARY ARE EACH HEREBY AUTHORIZED TO SUBMIT THIS DEED OF TRUST TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER, SO AS TO SERVE AS CONCLUSIVE EVIDENCE OF SUCH WAIVER OF RIGHT TO TRIAL BY JURY.  GRANTORS REPRESENT AND WARRANT THAT THEY HAVE BEEN REPRESENTED IN THE SIGNING OF THIS DEED OF TRUST AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF THEIR OWN FREE WILL, AND/OR THAT THEY HAVE HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.
 Section 9.31Submission to Jurisdiction; Venue; Service.
 (a) Grantors irrevocably and unconditionally submit, for themselves and their property, to the nonexclusive jurisdiction of the federal and state courts of the State of Alaska, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Deed of Trust, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such court. The parties hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Deed of Trust shall affect any right that the Beneficiary may otherwise have to bring any action or proceeding relating to this Deed of Trust against any Related Party or its properties in the courts of any other jurisdiction.  Nothing in this Deed of Trust shall impact the ability of Beneficiary or its affiliates to enforce any of the Obligations in any jurisdiction selected in the documents governing the same.
 (b) Grantors irrevocably and unconditionally waive to the fullest extent permitted by applicable law, any objection that they may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Deed of Trust in any court referred to in this Section 9.31. Grantors hereby irrevocably waive, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
 (c) Grantors hereto irrevocably consent to service of process to the address set forth in the preamble hereto.  Nothing in this Deed of Trust will affect the right of any party hereto to serve process in any other manner permitted by applicable law.
 Section 9.32 Maturity.  The maturity of this instrument, for purposes of AS 34 20.150 or any similar statute, shall occur upon the full satisfaction of all indebtedness and other obligations secured by this instrument, or fifty (50) years from the execution of this instrument, whichever is earlier.
 [Signature Page to Follow]
 
 
 29
 
 
 
  
  
  
 30
 
 
  

 Exhibit A
  
 To
 Deed of Trust, Security Agreement, Assignment of Production, 
 Rents and Leasehold Interests, Financing Statement and Fixture Filing
 From WestMountain Gold, Inc. and Terra Gold Corp., as Grantors, to Fidelity Title Company, as the Trustee, and BOCO Investments, LLC, as Beneficiary 
 

 Grantor Real Property
 

 The following real property interests located in Mt. McKinley Recording District, Fourth Judicial District Alaska:
 

 

 1.  Owned Real Property
 

 See Schedule 1 hereto.
 

 

 2.  Leased Real Property
 

 Lease, dated March 22, 2005, between Ben Porterfield and AngloGold Ashanti (USA) Exploration Inc. as subsequently assigned to TGC for the following State Mining Claims:
 

 See Schedule 2 hereto.
 

 

 31

 

 
 
 
 
 SCHEDULE  1 to EXHIBIT A
  
 State of Alaska Mining Locations
  
  	  
	 Mt. McKinley
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 TX 01
	 9-Aug-2004
	 2004-000282-0
	 645778
	 S20N025W 36

	 TX02
	 9-Aug-2004
	 2004-000283-0
	 645779
	 Sl9N025W  01

	 TX03
	 9-Aug-2004
	 2004-000284-0
	 645780
	 Sl9N025W 01

	 TX04
	 9-Aug-2004
	 2004-000285-0
	 645781
	 Sl9N025W 12

	 TX05
	 9-Aug-2004
	 2004-000286-0
	 645782
	 Sl9N025W 12

	 TX06
	 9-Aug-2004
	 2004-000287-0
	 645783
	 S20N024W30

	 TX07
	 9-Aug-2004
	 2004-000288-0
	 645784
	 Sl9N024W 06

	 TX08
	 9-Aug-2004
	 2004-000289-0
	 645785
	 Sl9N024W 07

	 TX09
	 9-Aug-2004
	 2004-000290-0
	 645786
	 Sl9N024W 07

	 TX 10
	 9-Aug-2004
	 2004-000291-0
	 645787
	 Sl9N024W 18

	 TX 11
	 9-Aug-2004
	 2004-000292-0
	 645788
	 S20N024W 30

	 TX 12
	 9-Aug-2004
	 2004-000293-0
	 645789
	 S20N024W 31

	 TX 13
	 9-Aug-2004
	 2004-000294-0
	 645790
	 S20N024W 31

	 TX 14
	 9-Aug-2004
	 2004-000295-0
	 645791
	 Sl9N024W 06

	 TX 15
	 9-Aug-2004
	 2004-000296-0
	 645792
	 Sl9N024W 06

	 TX 16
	 9-Aug-2004
	 2004-000297-0
	 645793
	 Sl9N024W 07

	 TX 17
	 9-Aug-2004
	 2004-000298-0
	 645794
	 Sl9N024W 07

	 TX 18
	 9-Aug-2004
	 2004-000299-0
	 645795
	 Sl9N024W 18

	 TX 19
	 9-Aug-2004
	 2004-000300-0
	 645796
	 S20N024W 32

	 TX20
	 9-Aug-2004
	 2004-000301-0
	 645797
	 Sl9N024W 05

	 TX21
	 9-Aug-2004
	 2004-000302-0
	 645798
	 Sl9N024W 05

	 TX22
	 9-Aug-2004
	 2004-000303-0
	 645799
	 Sl9N024W 08

	 TX23
	 9-Aug-2004
	 2004-000304-0
	 645800
	 Sl9N024W 05

	 TX24
	 9-Aug-2004
	 2004-000305-0
	 645801
	 Sl9N024W 05

	 TX25
	 9-Aug-2004
	 2004-000306-0
	 645802
	 Sl9N024W 08

	 TX26
	 9-Aug-2004
	 2004-000307-0
	 645803
	 Sl9N024W 08

	 TX27
	 9-Aug-2004
	 2004-000308-0
	 645804
	 Sl9N024W 17

	 TX28
	 8-Mar-2005
	 2005-000023-0
	 648390
	 S20N024W29

	 TX29
	 5-Mar-2005
	 2005-000024-0
	 648391
	 S20N024W30

	 TX30
	 8-Mar-2005
	 2005-000025-0
	 648392
	 S20N025W 36

	 TX- 31
	 13-Apr-2005
	 2005-000119-0
	 649367
	 S20N025W 15

	 TX-32
	 13-Apr-2005
	 2005-000120-0
	 649368
	 S20N025W 14

	 TX- 33
	 13-Apr-2005
	 2005-000121-0
	 649369
	 S20N025W 14

	 TX-34
	 13-Apr-2005
	 2005-000122-0
	 649370
	 S20N025W 13

	 TX- 35
	 13-Apr-2005
	 2005-000123-0
	 649371
	 S20N025W 13

	 TX-36
	 13-Apr-2005
	 2005-000124-0
	 649372
	 S20N024W 18

	 TX-37
	 13-Apr-2005
	 2005-000125-0
	 649373
	 S20N024W 18

	 TX- 38
	 13-Apr-2005
	 2005-000126-0
	 649374
	 S20N025W  15

	 TX-39
	 13-Apr-2005
	 2005-000127-0
	 649375
	 S20N025W 14

	 TX-40
	 13-Apr-2005
	 2005-000128-0
	 649376
	 S20N025W 14

  
  
 Schedule 1 to EXHIBITA- Page1
 
 
  
  	  
	  
	 Mt. McKinley
	  
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 TX-41
	 13-Apr-2005
	 2005-000129-0
	 649377
	 S20N025W 13

	 TX-42
	 13-Apr-2005
	 2005-000130-0
	 649378
	 S20N025W 13

	 TX-43
	 13-Apr-2005
	 2005-000131-0
	 649379
	 S20N024W 18

	 TX-44
	 13-Apr-2005
	 2005-000132-0
	 649380
	 S20N024W 18

	 TX-45
	 13-Apr-2005
	 2005-000133-0
	 649381
	 S20N025W22

	 TX-46
	 13-Apr-2005
	 2005-000134-0
	 649382
	 S20N025W 23

	 TX-47
	 13-Apr-2005
	 2005-000135-0
	 649383
	 S20N025W 23

	 TX-48
	 13-Apr-2005
	 2005-000136-0
	 649384
	 S20N025W24

	 TX-49
	 13-Apr-2005
	 2005-000137-0
	 649385
	 S20N025W24

	 TX-50
	 13-Apr-2005
	 2005-000138-0
	 649386
	 S20N024W 19

	 TX- 51
	 13-Apr-2005
	 2005-000139-0
	 649387
	 S20N024W 19

	 TX-52
	 13-Apr-2005
	 2005-000140-0
	 649388
	 S20N025W22

	 TX- 53
	 13-Apr-2005
	 2005-000141-0
	 649389
	 S20N025W 23

	 TX-54
	 13-Apr-2005
	 2005-000142-0
	 649390
	 S20N025W 23

	 TX- 55
	 13-Apr-2005
	 2005-000143-0
	 649391
	 S20N025W24

	 TX-56
	 13-Apr-2005
	 2005-000144-0
	 649392
	 S20N025W24

	 TX-57
	 13-Apr-2005
	 2005-000145-0
	 649393
	 S20N024W 19

	 TX- 58
	 13-Apr-2005
	 2005-000146-0
	 649394
	 S20N024W 19

	 TX-59
	 13-Apr-2005
	 2005-000147-0
	 649395
	 S20N025W27

	 TX-60
	 13-Apr-2005
	 2005-000148-0
	 649396
	 S20N025W26

	 TX- 61
	 13-Apr-2005
	 2005-000149-0
	 649397
	 S20N025W26

	 TX-62
	 13-Apr-2005
	 2005-000150-0
	 649398
	 S20N025W 25

	 TX-63
	 13-Apr-2005
	 2005-000151-0
	 649399
	 S20N025W 25

	 TX-64
	 13-Apr-2005
	 2005-000152-0
	 649400
	 S20N024W30

	 TX-65
	 13-Apr-2005
	 2005-000153-0
	 649401
	 S20N025W27

	 TX-66
	 13-Apr-2005
	 2005-000154-0
	 649402
	 S20N025W26

	 TX-67
	 13-Apr-2005
	 2005-000155-0
	 649403
	 S20N025W26

	 TX-68
	 13-Apr-2005
	 2005-000156-0
	 649404
	 S20N025W 25

	 TX-69
	 13-Apr-2005
	 2005-000157-0
	 649405
	 S20N025W 25

	 TX-70
	 13-Apr-2005
	 2005-000158-0
	 649406
	 S20N025W 35

	 TX- 71
	 13-Apr-2005
	 2005-000159-0
	 649407
	 S20N025W 35

	 TX-72
	 13-Apr-2005
	 2005-000160-0
	 649408
	 S20N025W 36

	 TX-73
	 13-Apr-2005
	 2005-000161-0
	 649409
	 S20N025W 35

	 TX-74
	 13-Apr-2005
	 2005-000162-0
	 649410
	 S20N025W 35

	 TX-75
	 13-Apr-2005
	 2005-000163-0
	 649411
	 S20N025W 36

	 TX-76
	 13-Apr-2005
	 2005-000164-0
	 649412
	 S20N024W29

	 TX-77
	 13-Apr-2005
	 2005-000165-0
	 649413
	 S20N024W29

	 TX-78
	 13-Apr-2005
	 2005-000166-0
	 649414
	 S20N024W29

	 TX-79
	 13-Apr-2005
	 2005-000167-0
	 649415
	 S20N024W28

	 TX- 80
	 13-Apr-2005
	 2005-000168-0
	 649416
	 S20N024W28

	 TX- 81
	 13-Apr-2005
	 2005-000169-0
	 649417
	 S20N024W27

	 TX- 82
	 13-Apr-2005
	 2005-000170-0
	 649418
	 S20N024W27

	 TX- 83
	 13-Apr-2005
	 2005-000171-0
	 649419
	 S20N024W32

	 TX- 84
	 13-Apr-2005
	 2005-000172-0
	 649420
	 S20N024W32

  
 Schedule1to EXHIBITA- Page2
 
 
  	  
	  
	  
  
 Mt. McKinley
	  
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 TX- 85
	 13-Apr-2005
	 2005-000173-0
	 649421
	 S20N024W 33

	 TX- 86
	 13-Apr-2005
	 2005-000174-0
	 649422
	 S20N024W 33

	 TX- 87
	 13-Apr-2005
	 2005-000175-0
	 649423
	 S20N024W34

	 TX- 88
	 13-Apr-2005
	 2005-000176-0
	 649424
	 S20N024W34

	 TX- 89
	 13-Apr-2005
	 2005-000177-0
	 649425
	 S20N024W32

	 TX-90
	 13-Apr-2005
	 2005-000178-0
	 649426
	 S20N024W 33

	 TX- 91
	 13-Apr-2005
	 2005-000179-0
	 649427
	 S20N024W 33

	 TX-92
	 13-Apr-2005
	 2005-000180-0
	 649428
	 S20N024W34

	 TX-93
	 13-Apr-2005
	 2005-000181-0
	 649429
	 S20N024W34

	 TX-94
	 13-Apr-2005
	 2005-000182-0
	 649430
	 Sl9N024W 04

	 TX-95
	 13-Apr-2005
	 2005-000183-0
	 649431
	 Sl9N024W 04

	 TX-96
	 13-Apr-2005
	 2005-000184-0
	 649432
	 Sl9N024W 03

	 TX-97
	 13-Apr-2005
	 2005-000185-0
	 649433
	 Sl9N024W 03

	 TX-98
	 13-Apr-2005
	 2005-000186-0
	 649434
	 Sl9N024W 04

	 TX-99
	 13-Apr-2005
	 2005-000187-0
	 649435
	 Sl9N024W 04

	 TX-100
	 13-Apr-2005
	 2005-000188-0
	 649436
	 Sl9N024W 03

	 TX-101
	 13-Apr-2005
	 2005-000189-0
	 649437
	 Sl9N024W 03

	 TX-102
	 13-Apr-2005
	 2005-000190-0
	 649438
	 Sl9N024W 09

	 TX-103
	 13-Apr-2005
	 2005-000191-0
	 649439
	 Sl9N024W 09

	 TX-104
	 13-Apr-2005
	 2005-000192-0
	 649440
	 Sl9N024W 10

	 TX-105
	 13-Apr-2005
	 2005-000193-0
	 649441
	 Sl9N024W 10

	 TX-106
	 13-Apr-2005
	 2005-000194-0
	 649442
	 Sl9N024W 09

	 TX-107
	 13-Apr-2005
	 2005-000195-0
	 649443
	 Sl9N024W 09

	 TX-108
	 13-Apr-2005
	 2005-000196-0
	 649444
	 Sl9N024W 10

	 TX-109
	 13-Apr-2005
	 2005-000197-0
	 649445
	 Sl9N024W 10

	 TX-llO
	 13-Apr-2005
	 2005-000198-0
	 649446
	 Sl9N024W 16

	 TX-lll
	 13-Apr-2005
	 2005-000199-0
	 649447
	 Sl9N024W 16

	 TX-ll2
	 13-Apr-2005
	 2005-000200-0
	 649448
	 Sl9N024W 15

	 TX-113
	 13-Apr-2005
	 2005-000201-0
	 649449
	 Sl9N024W 15

	 TX-ll4
	 13-Apr-2005
	 2005-000202-0
	 649450
	 Sl9N024W 18

	 TX-ll5
	 13-Apr-2005
	 2005-000203-0
	 649451
	 Sl9N024W 18

	 TX-ll6
	 13-Apr-2005
	 2005-000204-0
	 649452
	 Sl9N024W 17

	 TX-ll7
	 13-Apr-2005
	 2005-000205-0
	 649453
	 Sl9N024W 17

	 TX-ll8
	 13-Apr-2005
	 2005-000206-0
	 649454
	 Sl9N024W 16

	 TX-ll9
	 13-Apr-2005
	 2005-000207-0
	 649455
	 Sl9N024W 16

	 TX-120
	 13-Apr-2005
	 2005-000208-0
	 649456
	 Sl9N024W 15

	 TX-121
	 13-Apr-2005
	 2005-000209-0
	 649457
	 Sl9N024W 15

	 TX-122
	 13-Apr-2005
	 2005-000210-0
	 649458
	 Sl9N024W 19

	 TX-123
	 13-Apr-2005
	 2005-000211-0
	 649459
	 Sl9N024W 19

	 TX-124
	 13-Apr-2005
	 2005-000212-0
	 649460
	 Sl9N024W 20

	 TX-125
	 13-Apr-2005
	 2005-000213-0
	 649461
	 Sl9N024W 20

	 TX-126
	 13-Apr-2005
	 2005-000214-0
	 649462
	 Sl9N024W 21

	 TX-127
	 13-Apr-2005
	 2005-000215-0
	 649463
	 Sl9N024W 21

	 TX-128
	 13-Apr-2005
	 2005-000216-0
	 649464
	 Sl9N024W 22

  
 
 Schedule1to EXHIBITA- Page3
 
 
  
 	  
	  
	 Mt. McKinley
	  
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 TX-129
	 13-Apr-2005
	 2005-000217-0
	 649465
	 Sl9N024W 22

	 TX-130
	 13-Apr-2005
	 2005-000218-0
	 649466
	 Sl9N024W 19

	 TX-131
	 13-Apr-2005
	 2005-000219-0
	 649467
	 Sl9N024W 19

	 TX-132
	 13-Apr-2005
	 2005-000220-0
	 649468
	 Sl9N024W 20

	 TX-133
	 13-Apr-2005
	 2005-000221-0
	 649469
	 Sl9N024W 20

	 TX-134
	 13-Apr-2005
	 2005-000222-0
	 649470
	 Sl9N024W 21

	 TX-135
	 13-Apr-2005
	 2005-000223-0
	 649471
	 Sl9N024W 21

	 TX-136
	 13-Apr-2005
	 2005-000224-0
	 649472
	 Sl9N024W 22

	 TX-137
	 13-Apr-2005
	 2005-000225-0
	 649473
	 Sl9N024W 22

	 TX-138
	 13-Apr-2005
	 2005-000226-0
	 649474
	 Sl9N024W 28

	 TX-139
	 13-Apr-2005
	 2005-000227-0
	 649475
	 Sl9N024W 28

	 TX-140
	 13-Apr-2005
	 2005-000228-0
	 649476
	 Sl9N024W 27

	 TX-141
	 13-Apr-2005
	 2005-000229-0
	 649477
	 Sl9N024W 27

	 TR-142
	 3-0ct-2005
	 2005-000376-0
	 651073
	 Sl9N024W 30

	 TR-143
	 3-0ct-2005
	 2005-000377-0
	 651074
	 Sl9N024W 30

	 TR-144
	 3-0ct-2005
	 2005-000378-0
	 651075
	 Sl9N024W 29

	 TR-145
	 3-0ct-2005
	 2005-000379-0
	 651076
	 Sl9N024W 29

	 TR-146
	 3-0ct-2005
	 2005-000380-0
	 651077
	 Sl9N024W 30

	 TR-147
	 3-0ct-2005
	 2005-000381-0
	 651078
	 Sl9N024W 30

	 TR-148
	 3-0ct-2005
	 2005-000382-0
	 651079
	 Sl9N024W 29

	 TR-149
	 3-0ct-2005
	 2005-000383-0
	 651080
	 Sl9N024W 29

	 TR-150
	 3-0ct-2005
	 2005-000384-0
	 651081
	 S20N024W20

	 TR-151
	 3-0ct-2005
	 2005-000385-0
	 651082
	 S21N024W 20

	 TR-152
	 3-0ct-2005
	 2005-000386-0
	 651083
	 S22N024W 21

	 TR-153
	 3-0ct-2005
	 2005-000387-0
	 651084
	 S23N024W 21

	 TR-154
	 3-0ct-2005
	 2005-000388-0
	 651085
	 S20N024W22

	 TR-155
	 3-0ct-2005
	 2005-000389-0
	 651086
	 S20N024W22

	 TR-156
	 3-0ct-2005
	 2005-000390-0
	 651087
	 S20N024W23

	 TR-157
	 3-0ct-2005
	 2005-000391-0
	 651088
	 S20N024W20

	 TR-158
	 3-0ct-2005
	 2005-000392-0
	 651089
	 S20N024W20

	 TR-159
	 3-0ct-2005
	 2005-000393-0
	 651090
	 S20N024W 21

	 TR-160
	 3-0ct-2005
	 2005-000394-0
	 651091
	 S20N024W 21

	 TR-161
	 3-0ct-2005
	 2005-000395-0
	 651092
	 S20N024W22

	 TR-162
	 3-0ct-2005
	 2005-000396-0
	 651093
	 S20N024W22

	 TR-163
	 3-0ct-2005
	 2005-000397-0
	 651094
	 S20N024W23

	 TR-164
	 3-0ct-2005
	 2005-000398-0
	 651095
	 S20N024W28

	 TR-165
	 3-0ct-2005
	 2005-000399-0
	 651096
	 S20N024W28

	 TR-166
	 3-0ct-2005
	 2005-000400-0
	 651097
	 S20N024W27

	 TR-167
	 3-0ct-2005
	 2005-000401-0
	 651098
	 S20N024W27

	 TR-168
	 3-0ct-2005
	 2005-000402-0
	 651099
	 S20N024W26

	 TR-169
	 3-0ct-2005
	 2005-000403-0
	 651100
	 S20N024W26

	 TR-170
	 3-0ct-2005
	 2005-000404-0
	 651101
	 S20N024W 35

	 TR-171
	 3-0ct-2005
	 2005-000405-0
	 651102
	 S20N024W 35

  
Schedule1to EXHIBITA- Page4
 
 
  
  	  
	  
	 Mt. McKinley
	  
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 TR-172
	 3-0ct-2005
	 2005-000406-0
	 651103
	 Sl9N024W 02

	 TRW  1
	 17-0ct-2006
	 2006-000705-0
	 655924
	 Sl9N025W 24

	 TRW 2
	 17-0ct-2006
	 2006-000706-0
	 655925
	 Sl9N025W 24

	 TRW 3
	 17-0ct-2006
	 2006-000707-0
	 655926
	 Sl9N025W 24

	 TRW  4
	 17-0ct-2006
	 2006-000708-0
	 655927
	 Sl9N025W 24

	 TRW 5
	 17-0ct-2006
	 2006-000709-0
	 655928
	 Sl9N025W 13

	 TRW 6
	 17-0ct-2006
	 2006-000710-0
	 655929
	 Sl9N025W 13

	 TRW 7
	 17-0ct-2006
	 2006-000711-0
	 655930
	 Sl9N025W 13

	 TRW  8
	 17-0ct-2006
	 2006-000712-0
	 655931
	 Sl9N025W 13

	 TRW 9
	 17-0ct-2006
	 2006-000713-0
	 655932
	 Sl9N025W 11

	 TRWlO
	 17-0ct-2006
	 2006-000714-0
	 655933
	 Sl9N025W 12

	 TRW 11
	 17-0ct-2006
	 2006-000715-0
	 655934
	 Sl9N025W 11

	 TRW12
	 17-0ct-2006
	 2006-000716-0
	 655935
	 Sl9N025W 12

	 TRW13
	 17-0ct-2006
	 2006-000717-0
	 655936
	 Sl9N025W 03

	 TRW14
	 17-0ct-2006
	 2006-000718-0
	 655937
	 Sl9N025W 02

	 TRW15
	 17-0ct-2006
	 2006-000719-0
	 655938
	 Sl9N025W 02

	 TRW16
	 17-0ct-2006
	 2006-000720-0
	 655939
	 Sl9N025W01

	 TRW17
	 17-0ct-2006
	 2006-000721-0
	 655940
	 Sl9N025W 03

	 TRW18
	 17-0ct-2006
	 2006-000722-0
	 655941
	 Sl9N025W 02

	 TRW19
	 17-0ct-2006
	 2006-000723-0
	 655942
	 Sl9N025W 02

	 TRW20
	 17-0ct-2006
	 2006-000724-0
	 655943
	 Sl9N025W01

	 TRW21
	 17-0ct-2006
	 2006-000725-0
	 655944
	 S20N025W 34

	 TRW22
	 17-0ct-2006
	 2006-000726-0
	 655945
	 S20N025W 34

	 SP1
	 15-Nov-2007
	 2007-000817-0
	 661807
	 S21N24W 25NE

	 SP2
	 15-Nov-2007
	 2007-000818-0
	 661808
	 S21N23W 30NW

	 SP3
	 15-Nov-2007
	 2007-000819-0
	 661809
	 S21N23W 30NE

	 SP4
	 15-Nov-2007
	 2007-000820-0
	 661810
	 S21N24W 25SE

	 SP5
	 15-Nov-2007
	 2007-000821-0
	 661811
	 S21N23W 30SW

	 SP6
	 15-Nov-2007
	 2007-000822-0
	 661812
	 S21N23W 30SE

	 SP7
	 15-Nov-2007
	 2007-000823-0
	 661813
	 S21NN4W 36NE

	 SP8
	 15-Nov-2007
	 2007-000824-0
	 661814
	 S21N23W 31NW

	 SP9
	 15-Nov-2007
	 2007-000825-0
	 661815
	 S21N23W 31NE

	 SP 10
	 15-Nov-2007
	 2007-000826-0
	 661816
	 S21N24W 36SE

	 SP 11
	 15-Nov-2007
	 2007-000827-0
	 661817
	 S21N23W 31SW

	 SP 12
	 15-Nov-2007
	 2007-000828-0
	 661818
	 S20N24W2NW

	 SP 13
	 15-Nov-2007
	 2007-000829-0
	 661819
	 S20N24W2NE

	 SP 14
	 15-Nov-2007
	 2007-000830-0
	 661820
	 S20N24W 3SE

	 SP 15
	 15-Nov-2007
	 2007-000831-0
	 661821
	 S20N24W2SW

	 SP 16
	 15-Nov-2007
	 2007-000832-0
	 661822
	 S20N24W 2SE

	 SP 17
	 15-Nov-2007
	 2007-000833-0
	 661823
	 S20N24W 1ONW

	 SP 18
	 15-Nov-2007
	 2007-000834-0
	 661824
	 S20N24W 1ONE

	 SP 19
	 15-Nov-2007
	 2007-000835-0
	 661825
	 S20N24W l lNW

  
 Schedule1to EXHIBITA- Page5
 
 
    	  
	  
	  
  
  
 Mt. McKinley
	  
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 SP 20
	 15-Nov-2007
	 2007-000836-0
	 661826
	 S20N24W l lNE

	 SP 21
	 15-Nov-2007
	 2007-000837-0
	 661827
	 S20N24W 9SE

	 SP 22
	 15-Nov-2007
	 2007-000838-0
	 661828
	 S20N24W 1OSW

	 SP 23
	 15-Nov-2007
	 2007-000839-0
	 661829
	 S20N24W 1OSE

	 SP 24
	 15-Nov-2007
	 2007-000840-0
	 661830
	 S20N24W 11SW

	 SP 25
	 15-Nov-2007
	 2007-000841-0
	 661831
	 S20N24W l lSE

	 SP 26
	 15-Nov-2007
	 2007-000842-0
	 661832
	 S20N24W 12SW

	 SP 27
	 15-Nov-2007
	 2007-000843-0
	 661833
	 S20N24W l 6NW

	 SP 28
	 15-Nov-2007
	 2007-000844-0
	 661834
	 S20N24W l 6NE

	 SP 29
	 15-Nov-2007
	 2007-000845-0
	 661835
	 S20N24W 15NW

	 SP 30
	 15-Nov-2007
	 2007-000846-0
	 661836
	 S20N24W 15NE

	 SP 31
	 15-Nov-2007
	 2007-000847-0
	 661837
	 S20N24W l 4NW

	 SP 32
	 15-Nov-2007
	 2007-000848-0
	 661838
	 S20N24W l 4NE

	 SP 33
	 15-Nov-2007
	 2007-000849-0
	 661839
	 S20N24W 13NW

	 SP 34
	 15-Nov-2007
	 2007-000850-0
	 661840
	 S20N24W 13NE

	 SP 35
	 15-Nov-2007
	 2007-000851-0
	 661841
	 S20N23W l 8NW

	 SP 36
	 15-Nov-2007
	 2007-000852-0
	 661842
	 S20N23W  l 8NE

	 SP 37
	 15-Nov-2007
	 2007-000853-0
	 661843
	 S20N24W l 7SE

	 SP 38
	 15-Nov-2007
	 2007-000854-0
	 661844
	 S20N24W l 6SW

	 SP 39
	 15-Nov-2007
	 2007-000855-0
	 661845
	 S20N24W l 6SE

	 SP 40
	 15-Nov-2007
	 2007-000856-0
	 661846
	 S20N23W 18SW

	 SP 41
	 15-Nov-2007
	 2007-000857-0
	 661847
	 S20N23W l 8SE

	 TRS 1
	 15-Jul-ll
	 2011-000302-0
	 708419
	 S019N24Wl lSW

	 TRS2
	 15-Jul-ll
	 2011-000303-0
	 708420
	 S019N24Wl lSE

	 TRS3
	 15-Jul-ll
	 2011-000304-0
	 708421
	 SOI9N24Wl4NW

	 TRS4
	 15-Jul-ll
	 2011-000305-0
	 708422
	 SOI9N24Wl4NE

	 TRS5
	 15-Jul-ll
	 2011-000306-0
	 708423
	 SOl9N24W13NW

	 TRS6
	 15-Jul-ll
	 2011-000307-0
	 708424
	 SO l 9N24W13NE

	 TRS7
	 15-Jul-ll
	 2011-000308-0
	 708425
	 SOl9N23Wl8NW

	 TRS 8
	 15-Jul-ll
	 2011-000309-0
	 708426
	 SO l 9N23Wl 8NE

	 TRS9
	 15-Jul-ll
	 2011-000310-0
	 708427
	 S019N23Wl7NW

	 TRSlO
	 15-Jul-ll
	 2011-000311-0
	 708428
	 S019N23Wl 7NE

	 TRS 11
	 15-Jul-ll
	 2011-000312-0
	 708429
	 SOl9N23Wl6NW

	 TRS12
	 15-Jul-ll
	 2011-000313-0
	 708430
	 SO l9N24Wl4SW

	 TRS 13
	 15-Jul-ll
	 2011-000314-0
	 708431
	 SOI9N24Wl4SE

	 TRS14
	 15-Jul-ll
	 2011-000315-0
	 708432
	 SOI9N24W13SW

	 TRS 15
	 15-Jul-ll
	 2011-000316-0
	 708433
	 SOI9N24W13SE

	 TRS16
	 15-Jul-ll
	 2011-000317-0
	 708434
	 SOI9N23Wl8SW

	 TRS17
	 15-Jul-ll
	 2011-000318-0
	 708435
	 SOI9N23Wl8SE

	 TRS18
	 15-Jul-ll
	 2011-000319-0
	 708436
	 S019N23Wl7SW

	 TRS19
	 15-Jul-ll
	 2011-000320-0
	 708437
	 S019N23Wl 7SE

	 TRS20
	 15-Jul-ll
	 2011-000321-0
	 708438
	 SO l9N23Wl6SW

	 TRS 21
	 15-Jul-ll
	 2011-000322-0
	 708439
	 SOl9N24W23NW

   
Schedule1to EXHIBITA- Page6
  

 
  
 	  
	  
	 Mt. McKinley
	  
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 TRS22
	 15-Jul-ll
	 2011-000323-0
	 708440
	 SOl9N24W23NE

	 TRS23
	 15-Jul-ll
	 2011-000324-0
	 708441
	 SOl9N24W24NW

	 TRS24
	 15-Jul-ll
	 2011-000325-0
	 708442
	 SO l 9N24W24NE

	 TRS25
	 15-Jul-ll
	 2011-000326-0
	 708443
	 SOI9N23Wl9NW

	 TRS26
	 15-Jul-ll
	 2011-000327-0
	 708444
	 SOI9N23Wl9NE

	 TRS27
	 15-Jul-ll
	 2011-000328-0
	 708445
	 SOl9N23W20NW

	 TRS28
	 15-Jul-ll
	 2011-000329-0
	 708446
	 SO l 9N23W20NE

	 TRS29
	 19-Jun-ll
	 2011-000330-0
	 708447
	 SOI9N24W23SW

	 TRS 30
	 19-Jun-ll
	 2011-000331-0
	 708448
	 SOI9N24W23SE

	 TRS 31
	 19-Jun-ll
	 2011-000332-0
	 708449
	 SO l 9N24W24SW

	 TRS32
	 19-Jun-ll
	 2011-000333-0
	 708450
	 SO l 9N24W24SE

	 TRS 33
	 19-Jun-ll
	 2011-000334-0
	 708451
	 SO l 9N23Wl 9SW

	 TRS34
	 19-Jun-ll
	 2011-000335-0
	 708452
	 SO l 9N23Wl 9SE

	 TRS 35
	 19-Jun-ll
	 2011-000336-0
	 708453
	 SO l 9N23W20SW

	 TRS 36
	 19-Jun-ll
	 2011-000337-0
	 708454
	 SO l 9N23W20SE

	 TRS 37
	 19-Jun-ll
	 2011-000338-0
	 708455
	 SOl9N24W26NW

	 TRS 38
	 19-Jun-ll
	 2011-000339-0
	 708456
	 SO l 9N24W26NE

	 TRS 39
	 19-Jun-ll
	 2011-000340-0
	 708457
	 SOl9N24W25NW

	 TRS40
	 19-Jun-ll
	 2011-000341-0
	 708458
	 SO l 9N24W25NE

	 TRS 41
	 19-Jun-ll
	 2011-000342-0
	 708459
	 SOI9N23W30NW

	 TRS42
	 19-Jun-ll
	 2011-000343-0
	 708460
	 SOI9N23W30NE

	 TRS43
	 19-Jun-ll
	 2011-000344-0
	 708461
	 SOl9N23W29NW

	 TRS44
	 19-Jun-ll
	 2011-000345-0
	 708462
	 SO l 9N24W26SW

	 TRS45
	 19-Jun-ll
	 2011-000346-0
	 708463
	 SO l 9N24W26SE

	 TRS46
	 19-Jun-ll
	 2011-000347-0
	 708464
	 SOI9N24W25SW

	 TRS47
	 19-Jun-ll
	 2011-000348-0
	 708465
	 SOI9N24W25SE

	 TRS48
	 19-Jun-ll
	 2011-000349-0
	 708466
	 SO l 9N23W30SW

	 TRS49
	 19-Jun-ll
	 2011-000350-0
	 708467
	 SO l 9N23W30SE

	 TRE 1
	 5-Sep-10
	 2010-000468-0
	 615465
	 S020N24WI5SW

	 TRE2
	 5-Sep-10
	 2010-000469-0
	 615466
	 S020N24WI5SE

	 TRE3
	 5-Sep-10
	 2010-000470-0
	 615467
	 S020N24WI4SW

	 TRE4
	 5-Sep-10
	 2010-000471-0
	 615468
	 S020N24WI4SE

	 TRE5
	 5-Sep-10
	 2010-000472-0
	 615469
	 S020N24WI3SW

	 TRE6
	 5-Sep-10
	 2010-000473-0
	 615470
	 S020N24WI3SE

	 TRE7
	 5-Sep-10
	 2010-000474-0
	 615471
	 S020N24W23NE

	 TRE8
	 5-Sep-10
	 2010-000475-0
	 615472
	 S020N24W24NW

	 TRE9
	 5-Sep-10
	 2010-000476-0
	 615473
	 S020N24W24NE

	 TRE 10
	 5-Sep-10
	 2010-000477-0
	 615474
	 S020N23WI9NW

	 TRE 11
	 5-Sep-10
	 2010-000478-0
	 615475
	 S020N23WI9NE

	 TRE 12
	 5-Sep-10
	 2010-000479-0
	 615476
	 S020N24W23SE

	 TRE 13
	 5-Sep-10
	 2010-000480-0
	 615477
	 S020N24W24SW

	 TRE 14
	 5-Sep-10
	 2010-000481-0
	 615478
	 S020N24W24SE

	 TRE 15
	 5-Sep-10
	 2010-000482-0
	 615479
	 S020N23WI9SW

 
  
Schedule1to EXHIBITA- Page7
 
 
  
  	  
	  
	 Mt. McKinley
	  
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 TRE 16
	 5-Sep-10
	 2010-000483-0
	 615480
	 S020N23WI9SE

	 TRE 17
	 5-Sep-10
	 2010-000484-0
	 615481
	 S020N24W26NE

	 TRE 18
	 5-Sep-10
	 2010-000485-0
	 615482
	 S020N24W25NW

	 TRE 19
	 5-Sep-10
	 2010-000486-0
	 615483
	 S020N24W25NE

	 TRE20
	 5-Sep-10
	 2010-000487-0
	 615484
	 S020N23W30NW

	 TRE21
	 5-Sep-10
	 2010-000488-0
	 615485
	 S020N23W30NE

	 TRE22
	 5-Sep-10
	 2010-000489-0
	 615486
	 S020N24W26SE

	 TRE23
	 5-Sep-10
	 2010-000490-0
	 615487
	 S020N24W25SW

	 TRE24
	 5-Sep-10
	 2010-000491-0
	 615488
	 S020N24W25SE

	 TRE25
	 5-Sep-10
	 2010-000492-0
	 615489
	 S020N23W30SW

	 TRE26
	 5-Sep-10
	 2010-000493-0
	 615490
	 S020N23W30SE

	 TRE27
	 5-Sep-10
	 2010-000494-0
	 615491
	 S020N24W35NE

	 TRE28
	 5-Sep-10
	 2010-000495-0
	 615492
	 S020N24W36NW

	 TRE29
	 5-Sep-10
	 2010-000496-0
	 615493
	 S020N24W36NE

	 TRE30
	 5-Sep-10
	 2010-000497-0
	 615494
	 S020N23W31NW

	 TRE31
	 5-Sep-10
	 2010-000498-0
	 615495
	 S020N24W35SE

	 TRE32
	 5-Sep-10
	 2010-000499-0
	 615496
	 S020N24W36SW

	 TRE33
	 5-Sep-10
	 2010-000500-0
	 615497
	 S020N24W36SE

	 TRE34
	 5-Sep-10
	 2010-000501-0
	 615498
	 S020N23W3 l SW

	 TRE35
	 5-Sep-10
	 2010-000502-0
	 615499
	 SO l 9N24W2NE

	 TRE36
	 5-Sep-10
	 2010-000503-0
	 615500
	 SOI9N24W1NW

	 TRE37
	 5-Sep-10
	 2010-000504-0
	 615501
	 SOI9N24W1NE

	 TRE38
	 5-Sep-10
	 2010-000505-0
	 615502
	 SOI9N23W6NW

	 TRE39
	 5-Sep-10
	 2010-000506-0
	 615503
	 SOI9N23W6NE

	 TRE40
	 5-Sep-10
	 2010-000507-0
	 615504
	 SO l 9N24W2SW

	 TRE41
	 5-Sep-10
	 2010-000508-0
	 615505
	 SO l 9N24W2SE

	 TRE42
	 5-Sep-10
	 2010-000509-0
	 615506
	 SOI9N24W1SW

	 TRE43
	 5-Sep-10
	 2010-000510-0
	 615507
	 SOI9N24W1SE

	 TRE44
	 5-Sep-10
	 2010-000511-0
	 615508
	 SOI9N23W6SW

	 TRE45
	 5-Sep-10
	 2010-000512-0
	 615509
	 SOI9N23W6SE

	 TRE46
	 5-Sep-10
	 2010-000513-0
	 615510
	 S019N24Wl lNW

	 TRE47
	 5-Sep-10
	 2010-000514-0
	 615511
	 S019N24Wl lNE

	 TRE48
	 5-Sep-10
	 2010-000515-0
	 615512
	 SOI9N24Wl2NW

	 TRE49
	 5-Sep-10
	 2010-000516-0
	 615513
	 SOI9N24Wl2NE

	 TRESO
	 5-Sep-10
	 2010-000517-0
	 615514
	 SO l 9N23W7NW

	 TRE51
	 5-Sep-10
	 2010-000518-0
	 615515
	 SO l 9N23W7NE

	 TRE52
	 5-Sep-10
	 2010-000519-0
	 615516
	 SO l 9N24WI2SW

	 TRE53
	 5-Sep-10
	 2010-000520-0
	 615517
	 SOI9N24Wl2SE

	 TRE54
	 5-Sep-10
	 2010-000521-0
	 615518
	 SO l 9N23W7SW

	 TRE55
	 5-Sep-10
	 2010-000522-0
	 615519
	 SO l 9N23W7SE

  
  Schedule1to EXHIBITA-Page8
 
 
  
 SCHEDULE  2 to EXHIBIT A
  
 State of Alaska Mining Locations subject to Porterfield  Lease
  
  
  	  
	  
	 Mt. McKinley
	  
	  

	 Claim
	 Date of
	 Rec. Dist.
	 DNR Serial
	 MTRS

	 Name
	 Posting
	 Doc. No.
	 Number
	 Location

	 Fish Creek  1
	 22-Mar-2005
	 2005-000012-0
	 648383
	 S20N024W 31

	 Fish Creek 2
	 22-Mar-2005
	 2005-000013-0
	 648384
	 S20N024W 31

	 Fish Creek 3
	 22-Mar-2005
	 2005-000014-0
	 648385
	 Sl9N024W 06

	 Fish Creek 4
	 22-Mar-2005
	 2005-000015-0
	 648386
	 Sl9N024W 17

	 Fish Creek 5
	 22-Mar-2005
	 2005-000016-0
	 648387
	 Sl9N024W 08

  
 Schedule1to EXHIBITA- Page9
 
 
  
 

 Exhibit B
  
 To
 Deed of Trust, Security Agreement, Assignment of Production, 
 Rents and Leasehold Interests, Financing Statement and Fixture Filing
 From WestMountain Gold, Inc. and Terra Gold Corp., as Grantors, to Fidelity Title Company, as the Trustee, and BOCO Investments, LLC, as Beneficiary 
 

 Definition of BOCO Notes and Loan Documents
 Beneficiary and WMTN entered into several Loan Agreements, Security Agreements and related Promissory Notes in 2012, 2013, 2014, 2015 and 2016 as follows:
  
a. Amended and Restated Revolving Credit Loan and Security Agreement and Amended and Restated Secured Convertible Promissory Note dated September 17, 2012, as amended, pursuant to which Borrower executed and delivered to Lender a Promissory Note in the principal amount of $1,852,115 (collectively, the “September 2012 Note”), which Note, as amended, is due in full on November 15, 2017;
  
b. Loan Agreement, Promissory Note, Security Agreement and Warrant for the Purchase of Common Stock of WestMountain Gold Inc. dated May 7, 2013, pursuant to which Borrower executed and delivered to Lender a Promissory Note in the principal amount of $500,000 (collectively, the “May 2013 Note”), which Note, as amended, is due in full on December 15, 2018;
  
c. Loan Agreement, Promissory Note and Security Agreement dated June 27, 2013, pursuant to which Borrower executed and delivered to Lender a Promissory Note in the principal amount of $500,000 (collectively, the “June 2013 Note”), which Note, as amended, is due in full on December 15, 2018; 
  
d. Secured Promissory Note dated February 14, 2014 in the principal amount of $1,000,000, executed by Borrower and delivered to Lender (the “February 2014 Note”), which Note, as amended, was due in full on November 15, 2016; 
  
e. Promissory Note dated May 1, 2015 in the principal amount of $100,000 executed by Borrower and delivered to Lender (the “May 2015 Note”), which Note, as amended, is due in full on December 15, 2018;
  
f. Secured Promissory Note dated June 26, 2015 having a face value of $150,000 and a currently outstanding principal balance of $109,346.31 executed by Borrower and delivered to Lender (the “June 2015 Note”), which Note, as amended, is due in full on December 15, 2018; 
  
g. Secured Promissory Note dated March 22, 2016 in the principal amount of $125,000 executed by Borrower and delivered to Lender (the “March 2016 Note”), which Note, as amended, is due in full on December 15, 2018; 
  
h. Secured Promissory Note dated April 12, 2016 in amount not to exceed $1,000,000 and having a currently outstanding principal balance of $865,000 executed by Borrower and delivered to Lender (the “April 2016 Note”), which Note, as amended, is due in full on October 31, 2018.
  
i. Secured Promissory Note dated November 18, 2016 in the principal amount of $172,500 executed by Borrower and delivered to Lender (the “November 2016 Note”), which note is due in full on November, 17, 2017.
 The notes identified in this Exhibit B shall collectively be referred to as the “BOCO Notes.”  The term “Loan Documents” shall include, without limitation, each of the BOCO Notes and all documents relating to, entered into in connection with, or otherwise affecting any of the BOCO Notes (including, without limitation, the security therefore or the rights and obligations of Beneficiary and the Grantors thereunder), regardless of whether such documents are specifically mentioned herein.
  
 32Exhibit

Exhibit 10.40

THE PEPSICO INTERNATIONAL RETIREMENT PLAN

DEFINED BENEFIT PROGRAM 

(PIRP-DB)

As Amended and Restated
Effective as of January 1, 2016

TABLE OF CONTENTS

	
			
	ARTICLE I - HISTORY AND GENERAL INFORMATION
	1
	

	ARTICLE II - DEFINITIONS AND CONSTRUCTION
	3
	

	2.01    Definitions
	3
	

	2.02    Construction
	7
	

	ARTICLE III - MEMBERSHIP
	9
	

	3.01    Eligibility for Membership
	9
	

	3.02    Admission to Membership
	9
	

	ARTICLE IV - REQUIREMENTS FOR BENEFITS
	10
	

	4.01    Normal Retirement Pension
	10
	

	4.02    Early Retirement Pension
	10
	

	4.03    Special Early Retirement Pension
	10
	

	4.04    Deferred Vested Pension
	11
	

	4.05    Late Retirement Pension
	11
	

	4.06    Vesting
	12
	

	4.07    Special Vesting for Approved Transfers and Status Changes
	12
	

	4.08    Accruals After Benefit Commencement
	12
	

	ARTICLE V - DISTRIBUTION OPTIONS
	14
	

	5.01    Distribution Options
	14
	

	5.02    Normal Forms of Payment
	14
	

	5.03    Optional Forms of Payment
	14
	

	5.04    Applicability of Certain Options
	17
	

	5.05    Cashout of Small Benefits
	18
	

	5.06    Designation of Dependant
	18
	

	ARTICLE VI - DEATH BENEFITS
	19
	

	6.01    Active and Retirement-Eligible Members
	19
	

	6.02    Deferred Vested Members
	19
	

	6.03    Form and Time of Payment of Death Benefits
	19
	

	6.04    Disposition of Death Benefits
	20
	

	ARTICLE VII - ADMINISTRATION
	21
	

	7.01    Authority to Administer Plan
	21
	

	7.02    Facility of Payment
	21
	

	7.03    Claims Procedure
	21
	

	7.04    Limitations on Actions
	22
	

	7.05    Restriction of Venue
	23
	

	7.06    Effect of Specific References
	23
	

	ARTICLE VIII - AMENDMENT AND TERMINATION
	24
	

	8.01    Continuation of the Plan
	24
	

	8.02    Amendment
	24
	

	8.03    Termination
	24
	

	ARTICLE IX - MISCELLANEOUS
	25
	

i

	
			
	9.01    Unfunded Plan
	25
	

	9.02    Costs of the Plan
	25
	

	9.03    Temporary Absence of Member
	25
	

	9.04    Taxes, Etc.
	25
	

	9.05    Nonguarantee of Employment
	25
	

	9.06    No Right to Benefits
	26
	

	9.07    Charges on Benefits and Recovery of Excess Payments
	26
	

	9.08    Termination for Cause; Prohibited Misconduct
	27
	

	9.09    Notices
	28
	

	9.10    Plan Documentation
	29
	

	9.11    Currency of Payment
	29
	

	9.12    Governing Law
	29
	

	9.13    Exemption from ERISA
	29
	

	9.14    Exemption from Section 409A
	29
	

	ARTICLE X - SIGNATURE
	31
	

	TABLE A - CALCULATION OF PENSIONS
	32
	

	APPENDIX ERW - EARLY RETIREMENT WINDOWS
	36
	

ii 

ARTICLE I - HISTORY AND GENERAL INFORMATION

The Plan came into operation on and took effect from September 1, 1980, and was comprised of the “PepsiCo International Retirement Plan Trust Indenture” and the “Plan Rules”, and was later amended and restated in its entirety, effective September 2, 1982.  

The Plan was further amended and restated in its entirety, effective October 1, 2003, whereupon the Plan Rules became the “Plan A Rules” (applicable to benefits funded by the Corporation’s contributions to the trust established by the PepsiCo International Retirement Plan Trust Indenture) and the “Plan B Rules” (applicable to benefits funded by the Corporation as they arise) took effect. 

The Plan was further amended effective January 1, 2005, so that no person subject to taxation in the United States of America may in any way have their right to a benefit from the Plan come into existence, increase or in any way be enhanced, but instead will be determined as if they had left the Corporation and any Associated Company permanently before becoming subject to U.S. taxation.  
 
Effective January 1, 2010, the Plan A Rules and Plan B Rules were amended and restated in their entirety to form a single governing legal document, as set forth herein.  The terms of the Plan set forth in this amended and restated governing legal document are known as the “DB Program” (also known as “PIRP-DB”).  This amended and restated governing legal document shall apply to Members who are in Membership from and after January 1, 2010, as well as any others who claim rights from and after January 1, 2010 that are derived from current or former Membership, including former Members and the Dependants and Eligible Spouses of Members and former Members.  Notwithstanding any other provision of this Plan, the amendment and restatement of this Plan, the supersession of the prior documents by this Plan, and the prior existence of separate Plan A and Plan B Rules shall not at any time result in any duplication of benefits (nor shall duplication of benefits result from any other factor or circumstance related to this Plan or any prior version of this Plan).  

Effective January 1, 2011, the Corporation established a new defined contribution structure (the “DC Program”) to benefit selected international employees for whom it has been determined to be appropriate (i.e., employees on assignments outside of their home countries for whom it is judged to be impracticable to have them participate in their home country retirement plans and employees who are among a selected group of senior globalists on United States tax equalized packages).  The terms of the DC Program are set forth in a separate governing legal document.  Together, the DC Program and the DB Program set forth the terms of a single Plan.

Effective  January 1, 2016, the Plan was amended and restated (the “Restatement Date”). 

At all times, the Plan is unfunded and unsecured for purposes of the United States Internal Revenue Code and Employee Retirement Income Security Act of 1974, as amended 

1

(“ERISA”).  The benefits of an executive are an obligation of that executive’s individual employer.  With respect to his employer, the executive has the rights of an unsecured general creditor.  The Plan is also intended to be exempt from ERISA as a plan maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens of the United States.  

2

ARTICLE II - DEFINITIONS AND CONSTRUCTION

2.01    Definitions.

Where the following words and phrases appear in this governing legal document for the DB Program, they shall have the meaning set forth below, unless a different meaning is plainly required by the context:

(a)  "Active Member" means a who is currently eligible to accrue Pensionable Service under the DB Program; accordingly, it refers to a Member who has been admitted or re-admitted to Membership pursuant to Article III, but who has not retired on Pension, withdrawn from or otherwise ceased to be (or to be deemed to be) in Service as an Eligible Employee, or for any other reason ceased to be eligible to accrue Pensionable Service for the purpose of the DB Program.

(b)  "Actuary" means the individual actuary or firm of actuaries selected by the Vice President to provide actuarial services in connection with the administration of the DB Program. 

(c)  "Annuity Starting Date" means the first day of the first month for which a Pension is payable as an annuity or in any other form.

(d)  “Approved Transfer” means any of the following that are initiated or approved by the Corporation or (with the approval of the Corporation) by a Member’s Employer – 

(1)  The Member’s transfer to employment based in the United States or its territories;

(2)  The Member’s secondment to a work location in the United States or its territories; 

(3)  Any other change in the Member’s employment circumstances that will cause the Member to become a U.S. Person.

 (e)  "Associated Company" means any company or undertaking which – (i) is directly or indirectly controlled by or associated in business with the Corporation, and (ii) which has agreed, subject to the ongoing consent of the Vice President, to perform and observe the conditions, stipulations and provisions of the DB Program and to be included among the Employers under the DB Program.  "Associated Companies" means all such companies or undertakings.

(f)  "Corporation" means PepsiCo, Inc., a corporation organized and existing under the laws of the State of North Carolina, or its successor or successors.

3

(g)  "Dependant" means the person who shall receive any amounts with respect to a Member’s Pension payable upon the Member’s death, in such cases where the Member’s Pension is payable in one of the forms of payment under Sections 5.02 and 5.03 that include a survivor option. 

(h)  “DB Program” means the portion of the Plan that provides a program of defined benefits and that is described in the governing legal document entitled “The PepsiCo International Retirement Plan Defined Benefit Program (PIRP-DB),” as it may be amended from time to time.  The DB Program is also sometimes referred to as “PIRP-DB.”
(i)  “DC Program” means the portion of the Plan that provides a program of defined contributions and that is described in the governing legal document entitled “The PepsiCo International Retirement Plan Defined Contribution Program (PIRP-DC),” as it may be amended from time to time.  The DC Program is also sometimes referred to as “PIRP-DC.”

(j)  "Eligible Employee" means an individual who the Vice President has determined – (i) is a full-time salaried Third Country National employed exclusively outside of the United States of America on the regular staff of an Approved Employer, and (ii) is not currently designated by the Vice President as in a position that can make him eligible to earn “pay credits” under the DC Program.  The Vice President shall have the discretion to designate as an Eligible Employee a part-time employee who, but for his part-time status, otherwise satisfies the requirements of the preceding sentence. 

(k) "Eligible Spouse" means the individual to whom the Member is married on the earlier of the Member’s Annuity Starting Date or the date of the Member’s death.  The determination of whether a Member is married shall be made by the Vice President based on the law of the Member’s principal residence; provided, however, that for purposes of the DB Program, a Member shall have only one Eligible Spouse.

(l)  "Employers" means the Corporation and any and every Associated Company or such one or more of any of them as the context shall determine or the circumstances require. "Employer" in relation to any person means whichever it is of the Employers in whose employment that person is or was at the relevant time or those Employers (if more than one) in whose employment he had been during the relevant period.  An “Approved Employer” means an Employer that, as of the time in question, has been approved by the Vice President (and remains approved) to have its Eligible Employees become and continue as Active Members under the DB Program.

(m)  "Entry Date" means September 1, 1980 and the first day of each subsequent month.

(n)  "Members" means all Eligible Employees who have been admitted to Membership pursuant to Article III and who remain entitled to a benefit under the DB Program.  In relation to each of the Employers, any reference to Members means those 

4

Members in or formerly in its employment.  References to "Membership" are references to the status of being a Member.

(o)  "Normal Retirement Age" means age 65 or, if later, the age at which a Member first has five (5) years of Service.

(p)  "Normal Retirement Date" means in relation to a Member the first day of the month coincident with or immediately following the Member’s Normal Retirement Age. 

(q)  "Pension" means a series of level monthly payments or single lump sum payment payable to a person who is entitled to receive benefits under the DB Program.

(r)  "Pensionable Service" means in relation to a Member the period, or where appropriate the aggregate of periods, of a Member’s Service as an Eligible Employee of an Approved Employer, which is counted for purposes of determining the amount of benefits under the DB Program payable to, or on behalf of, a Member.  Pensionable Service shall also include any other period of employment with a member of the PepsiCo Organization or any Employer for which the Vice President determines to give credit under the DB Program to the Member.  Absent special circumstances, as determined by the Vice President, such other period of such prior period of employment will only be counted as Pensionable Service if such Employer maintained a retirement plan to which it made contributions on behalf of eligible employees.
(s)  "Plan" means the PepsiCo International Retirement Plan, which consists of the DB Program and DC Program.
(t)  "PepsiCo Organization" means the controlled group of organizations of which the Corporation is a part, as defined by U.S. Internal Revenue Code section 414 and regulations issued thereunder.  An entity shall only be considered a member of the PepsiCo Organization during the period it is one of the group of organizations described in the preceding sentence. 

(u)  "PepsiCo Salaried Plan" means the PepsiCo Salaried Employees Retirement Plan, as it may be amended from time to time.

(v)  "Salary" means in relation to a Member his calendar year base pay, plus overtime pay, commission payments and amounts paid pursuant to the incentive compensation plans (annual bonus plans) of an Employer, but shall exclude – 

(1)  Any pay that would ordinarily qualify as Salary as described above to the extent it is earned by the Member – (i) while working for the PepsiCo Organization or any Employer in the United States, (ii) while participating in the PepsiCo Salaried Plan, and/or (iii) while a U.S. Person, and 

(2)  All other amounts taxable as remuneration for personal services, including amounts received or deemed received under any other pension or 

5

welfare plan maintained by a member of the PepsiCo Organization or any Employer, premium bonuses, sign-on bonus or other one-time payments, income from stock option exercises and any special allowances (whether given in respect of residence, cost of living, education, transfer or otherwise).

If a Member has Salary in accordance with the prior sentence and then ceases to be employed by an Employer (but the Member remains employed by a member of the PepsiCo Organization), compensation while employed by the member of the PepsiCo Organization that otherwise would qualify as Salary hereunder shall be considered Salary for purposes of the DB Program.  In the event a Member’s Salary is either (i) paid in currency other than United States dollars or (ii) paid in United States dollars but not tied to the United States salary ranges established by the Corporation, as updated from time to time, such currency shall be converted to United States dollars according to procedures established by the Global Mobility Team, or if no so such procedures exist as of the time in question, as reasonably determined by the Vice President.  Notwithstanding the foregoing provisions of this definition, the Vice President may exercise his discretion to determine a Member's Salary based on an alternative definition that is different than that set forth above.  
(w)  "Service" means in relation to a Third Country National (or other employee deemed an Eligible Employee by the Vice President) only the period during which such Third Country National (or such other employee) was continuously in employment (including all permissible periods of authorized leave of absence) with any Approved Employer.  A permissible period of authorized leave of absence is a period of absence of not more than 12 months, unless a longer period is individually authorized in writing by the Vice President.  A break in service of less than 12 months shall not be considered to have broken the continuity of a Member's Service.  Other breaks in service (including a break in service of at least 12 months and a break in service before an individual has become a Member) shall break the continuity of an individual’s Service, and employment before the break in service will only be counted as Service if it would otherwise qualify under this subsection and the Vice President approves its being counted (which approval may provide for such pre-break employment being counted as vesting Service, entitlement Service, or both).  Vesting Service means Service that is taken into account solely in determining vesting, and entitlement Service means Service that is taken into account solely in determining entitlement for Early Retirement, Normal Retirement and Late Retirement. 
For an individual who transfers from employment with an Employer as an ineligible Employee to the status of an Eligible Employee of an Employer, his pre-transfer period of employment with an Employer may be counted as Service only with the approval of the Vice President (which approval may provide for such pre-transfer employment being counted as vesting Service, entitlement Service, or both).    

Except as otherwise provided by the Vice President, Service shall not include an individual’s periods of employment with any company or undertaking prior to it becoming an Employer or a member of the PepsiCo Organization. 

6

No determination of an individual’s Service shall result in any duplication, and all of the DB Program’s provisions shall at all times be interpreted consistently with the terms of this subsection. 

(x)  “Status Change” means any change in a Member’s circumstances (other than a change in circumstances that constitutes an Approved Transfer) that will cause the Member to become a U.S. Person.

 (y)  "Third Country National" means any individual who is not: (1) a U.S. Person, (2) employed in his home country, (3) employed in his hire country, except as permitted by the Vice President, nor (4) accruing benefits under a retirement plan sponsored by his Employer in his home country while abroad.  An individual’s home or hire country as of any time shall be the country that is designated at that time as the individual’s home or hire country, respectively, on the records of the applicable entity (which shall be the Global Mobility Team, its successor (if any) or such other group within the PepsiCo Organization that is designated for this purpose by the Vice President), or is so designated in accordance with such rules as the applicable entity shall choose to apply from time to time.  The records described in the preceding sentence are intended to be maintained outside the United States of America.   

(z) "U.S. Person" means: (1) a citizen of the United States of America; (2) a person lawfully admitted for permanent residence in the United States of America at any time during the calendar year, or who has applied for such permanent residence (within the meaning of United States Internal Revenue Code section 7701(b)(1)(A)); or (3) any other person who is a resident alien of the United States of America under United States Internal Revenue Code section 7701(b)(1)(A) because, for example, the person satisfies the substantial presence test under United States Internal Revenue Code section 7701(b)(3) or makes an election to be treated as a United States resident under United States Internal Revenue Code section 7701(b)(4).  In addition, a person shall be considered a U.S. Person for purposes of Section 9.14 in any year for which the person is required by the United States Internal Revenue Code to file an individual income tax return, unless the Vice President determines that it is clear that the person has no U.S. source earned income from a member of the PepsiCo Organization for such year.

(aa)  "Vice President" means the Vice President, Global Benefits & Wellness of PepsiCo, Inc. but if such position is vacant or eliminated it shall be the person who is acting to fulfill the majority of the duties of the position (or plurality of the duties, if no one is fulfilling a majority), as such duties existed immediately prior to the vacancy or the position elimination.

2.02    Construction.

(a)  Gender and Number:  In this document for the DB Program where the context does not otherwise determine, words importing the masculine gender shall include the 

7

feminine gender and words importing the singular number shall include the plural number and vice versa.  

(b)  Determining Periods of Years:  For the purposes of the DB Program, any period of 365 consecutive days (or of 366 consecutive days, if the period includes 29th February) shall be deemed to constitute a year, but not so that in the calculation of a number of years any day is counted more than once.  Where the amount of a benefit depends upon the calculation of a number of years or months without expressly requiring that these should be complete years or months, a proportionate amount (i.e., a number of days) may be given for any part of a year or month which would not otherwise be included in the calculation.  Where the this document makes reference to months or parts of a year, or to any other period of time except a day, week or year the Vice President may authorize the period to be counted in days or complete calendar months with each calendar month counted as 1/12th of a year.

(c)  Compounds of the Word “Here”:  The words “hereof” and “hereunder” and other similar compounds of the word “here” shall mean and refer to the entire DB Program, not to any particular provision or section.      

(d)  Examples:  Whenever an example is provided or the text uses the term “including” followed by a specific item or items, or there is a passage having a similar effect, such passages of the document shall be construed as if the phrase “without limitation” followed such example or term (or otherwise applied to such passage in a manner that avoids limitation on its breadth of application).

(e)  Subdivisions of This Document:  This document is divided and subdivided using the following progression:  articles, sections, subsections, paragraphs, subparagraphs and clauses.  Articles are designated by capital roman numerals.  Sections are designated by Arabic numerals containing a decimal point.  Subsections are designated by lower-case letters in parentheses.  Paragraphs are designated by Arabic numerals in parentheses.  Subparagraphs are designated by lower-case roman numerals in parentheses.  Clauses are designated by upper-case letters in parentheses.  Any reference in a section to a subsection (with no accompanying section reference) shall be read as a reference to the subsection with the specified designation contained in that same section.  A similar rule shall apply with respect to paragraph references within a subsection and subparagraph references within a paragraph.

8

ARTICLE III - MEMBERSHIP

3.01    Eligibility for Membership.  

Every person who the Vice President determines is an Eligible Employee shall be eligible for Membership.

3.02    Admission to Membership. 

(a)  Every person who was an Active Member of the DB Program immediately prior to the Restatement Date shall continue as an Active Member of the DB Program from and after the Restatement Date, to the extent such Active Membership is consistent with the provisions of the DB Program, as amended and in effect on and after the Restatement Date.  In addition, every persons who was a Member but not an Active Members immediately prior to the Restatement Date shall continue as a Member of the DB Program from and after the Restatement Date, to the extent such Membership is consistent with the provisions of the DB Program, as amended and in effect on and after the Restatement Date.

(b)  Every person who is not a Member and who the Vice President determines is an Eligible Employee shall, following the approval of his Membership by the Vice President, be admitted to Membership, effective as of the Entry Date coinciding with or immediately following the date on which his Service commences or he becomes an Eligible Employee (as determined by the Vice President), whichever is later.  No Eligible Employee or any other person shall be admitted to Membership without the approval of the Vice President.

9

ARTICLE IV - REQUIREMENTS FOR BENEFITS

4.01    Normal Retirement Pension.

A Member shall be entitled to a Normal Retirement Pension if his employment with both his Employer and the PepsiCo Organization terminates on his Normal Retirement Age.  The Member’s Annuity Starting Date shall be the first day of the month coincident with or immediately following the day the Member terminates employment with both his Employer and the PepsiCo Organization.  The Member’s Pension shall be paid in the normal form of payment applicable to the Member under Section 5.02 unless the Member elects an optional form of payment under Section 5.03.  The Member’s Pension shall be calculated in accordance with Table A.  

4.02    Early Retirement Pension.  

A Member shall be entitled to an Early Retirement Pension if his employment with both his Employer and the PepsiCo Organization terminates on or after age 55 but before his Normal Retirement Age, and after he has completed 10 or more years of Service.  The Member’s Annuity Starting Date ordinarily shall be his Normal Retirement Date.  The Member may, however, by filing a written election with the Vice President, direct that his Annuity Starting Date shall be the first day of any month after the Member terminates employment with both his Employer and the PepsiCo Organization but before the Member's Normal Retirement Date.  The amount of such Pension shall be computed in accordance with Table A as if the Member retired at his Normal Retirement Date, but on the basis of the Member’s Highest Average Monthly Salary (as defined in Table A) and Pensionable Service as of his employment termination date; provided, however, that, in the case of a Member electing to receive his Pension prior to attaining his Normal Retirement Date, the amount of his Pension shall be reduced by 4/12 of 1 percent for each month by which the day on which the Pension commences precedes the date on which the Member would have attained age 62.

4.03    Special Early Retirement Pension.

A Member may be entitled to receive a Special Early Retirement Pension if his employment with both his Employer and the PepsiCo Organization terminates on or after age 50 but before age 55 and after completion of not less than 10 years of Service and only if such Special Early Retirement Pension payments have been authorized by the Vice President.  The Annuity Starting Date of such Special Early Retirement Pension shall be the first day of the month after the Vice President authorizes such Special Early Retirement Pension.  The amount of such Pension shall be computed in accordance with Table A, as if the Member retired at his Normal Retirement Date, but on the basis of the Member's Highest Average Monthly Salary (as defined in Table A) and Pensionable Service as of his employment termination date; provided, however, that the amount of such Member's Pension so determined shall be reduced by 4/12 of 1 percent for each month by which the day on which the Pension commences precedes the date on which the Member would have attained age 62.

10

4.04    Deferred Vested Pension.

(a)  This Section 4.04 applies to a Member who terminates employment with both his Employer and the PepsiCo Organization before becoming eligible for a Normal Retirement Pension, Early Retirement Pension or Special Early Retirement Pension.

(b)  A Member described in (a) above who has met one of the requirement to be vested in Sections 4.06 and 4.07  shall be entitled to receive a Pension (hereinafter referred to as a “Deferred Vested Pension”).  The amount of such Deferred Vested Pension shall be determined in accordance with Table A; provided, however, that in the case of a Member who remains in the employment of the PepsiCo Organization or any Employer after ceasing to be an Active Member, the amount of such Member’s Deferred Vested Pension shall be determined in accordance with Table A by reference to (i) the Member’s Highest Average Monthly Salary at the date the Member terminates employment with both his Employer and the PepsiCo Organization (but only to the extent permitted under Sections 9.13 and 9.14), and (ii) the Member’s Pensionable Service as of his termination of employment date.  

(c)  A Member’s Deferred Vested Pension shall commence at the later of (i) the Member’s termination of employment with both his Employer and the PepsiCo Organization, or (ii) the Member’s Normal Retirement Date.  However, a Member may elect, by filing a written election with the Vice President to have his Deferred Vested Pension commence as of the first day of any month after the date he attains age 55 (or the date of his termination of employment with both his Employer and the PepsiCo Organization, if later).  In the case of a Member electing to receive his Deferred Vested Pension prior to attaining his Normal Retirement Date, the amount of his Pension shall be reduced in accordance with the reduction factors applicable to early commencement of a “Vested Pension” under the PepsiCo Salaried Plan, not the percentage factors which apply to an Early and Special Early Retirement Pension as described in Sections 4.02 and 4.03.
(d)  If Member becomes entitled to a Deferred Vested Pension under subsection (a) above and once again becomes an Eligible Employee, he shall be re-admitted to Active Membership in accordance with the provisions of Article III.  His Service and Pensionable Service from his earlier period as an Active Member shall be aggregated with his subsequent period of Service and Pensionable Service for purposes of calculating his Pension upon his later retirement or other termination of employment with both his Employer and the PepsiCo Organization, but only if his Pension with respect to his earlier period of Pensionable Service was not previously cashed out under Section 5.05.

4.05    Late Retirement Pension.
A Member who continues employment with the PepsiCo Organization or any Employer after his Normal Retirement Age shall be entitled to a Late Retirement Pension.  The Member’s Annuity Starting Date shall be the first day of the month coincident with or immediately following the day the Member terminates employment with both his Employer and the PepsiCo 

11

Organization.  The Member shall be credited with his Salary and Pensionable Service after his Normal Retirement Date, unless otherwise prospectively determined by the Vice President.  

4.06    Vesting.

Subject to Section 9.14 and to Table A (I)(c), a Member shall be fully vested in, and have a nonforfeitable right to, his Pension upon completing 5 years of Service, or if earlier, upon the death or disability of the Member while employed by the Employer or PepsiCo Organization.  The determination of whether a Member has become disabled for this purpose shall be made by the Vice President in accordance with such standards that the Vice President deems to be appropriate as of the time in question. 

4.07    Special Vesting for Approved Transfers and Status Changes.

(a)  Automatic Special Vesting for Approved Transfers.  Notwithstanding Section 4.06 above, in the case of an Active Member who will have an Approved Transfer during a Plan Year, the Active Member shall automatically have special vesting apply as of the last business day before the earlier of – (a) the Active Member’s Approved Transfer, or (b) the day the Active Member would become a U.S. Person in connection with the Approved Transfer.  

(b)  Special Vesting for Status Changes.  Also notwithstanding Section 4.06 above, in the case of an Active Member who will have a Status Change, the Active Member may request that the Vice President apply special vesting to him as of the last business day before the Active Member’s Status Change.  In order for special vesting related to a Status Change to be valid and effective under the DB Program, the Active Member’s request and the Vice President’s approval of the request must both be completely final and in place prior to the date that the special vesting applies.  
Subject to the next sentence, the effect of special vesting applying to a Member in accordance with either subsection (a) or (b) above is that the Member will become vested, to the same extent as could apply under Section 4.06 if the Member vested under that Section, as of the date that the special vesting applies.  Notwithstanding the preceding provisions of this Section 4.07, rights under this Section 4.07 are subject to the overriding requirement that benefits and other rights under the Plan must remain entirely exempt from Section 409A of the United States Internal Revenue Code, and this Section 4.07 shall not apply to the extent inconsistent with this requirement.

4.08    Accruals After Benefit Commencement.

This section applies to a Member who earns Service and Pensionable Service for a period that is after his Annuity Starting Date under the preceding Sections of this Article IV (other than an Annuity Starting Date related to a cashout distribution under Section 5.05).  Any prior benefits that have been suspended, and any additional benefits accrued by Member after his prior benefit commencement, shall be paid at his subsequent Annuity Starting Date.  The suspension or 

12

continuation of a Member’s prior benefits, any adjustments to the Member’s benefits that are payable upon his subsequent Annuity Starting Date, and the election of a time and form of payment for benefits payable at the subsequent Annuity Starting Date, shall be subject to rules established by the Vice President for this purpose.  Such rules shall be based upon the PepsiCo Salaried Plan’s rules for benefits accrued after the benefit commencement date of a participant in that plan, unless the Vice President determines that a modification of those rules is appropriate. 

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ARTICLE V - DISTRIBUTION OPTIONS

5.01    Distribution Options.  

(a)  Section 5.02 sets forth the normal forms of payment for married and unmarried Members.  For purposes of Section 5.02, a Member is considered married if he is married on his Annuity Starting Date.  
(b)  Section 5.03 sets forth the optional forms of payment that may be available to married and unmarried Members who elect not to receive benefits in the normal form.  For purposes of Section 5.03, a Member will also be considered married if he is married on the date he elects an optional form of payment.
(c)  A distribution is only available under this Article V to the extent a Member has met the requirements for benefits under Article IV. 

5.02    Normal Forms of Payment.

(a)  Single Life Annuity for Unmarried Members:  An unmarried Member shall be paid his Pension in the form of a Single Life Annuity unless he elects otherwise in accordance with Section 5.03.  The Single Life Annuity provides monthly payments beginning at the Member's Annuity Starting Date and ending with the last monthly payment due prior to the Member's death. 

(b)  50 Percent Survivor Annuity for Married Members:  A married Member shall be paid his Pension in the form of a 50 Percent Survivor Annuity,  as described herein, unless he elects otherwise in accordance with Section 5.03.  The 50 Percent Survivor Annuity provides reduced monthly payments beginning at the Member’s Annuity Starting Date and ending with the last monthly payment due prior to the Member’s death, with a 50 percent contingent survivor annuity for the benefit of his Eligible Spouse beginning on the first day of the month following the Member’s death and ending with the last monthly payment due prior to the death of the Eligible Spouse.  Subject to Section 5.03(g), the amount of the Member’s Pension, determined in accordance with Table A, shall be reduced by 10 percent.  In the case of a Member who became entitled to a Pension under Section IV of the Plan, as in effect prior to January 1, 1990, the Member’s Pension accrued as of such date shall not be subject to this reduction to the extent provided under the Plan’s terms as of such date.   

5.03    Optional Forms of Payment.

(a)  Optional Forms Available to Married Members:  A married Member who elects not to receive benefits in the normal form may receive his Pension in the form of the Single Life Annuity described in Section 5.02(a) above or the 75 Percent Survivor Annuity described in (b)(2) below, regardless of whether he is eligible for the optional forms of payment described in (b), (c) and (d) below.

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(b)  Survivor Options:  A married or unmarried Member who elects not to receive benefits in the normal form may elect to receive payment of his Pension in accordance with one of the survivor options listed below. Such election shall be made on such form and during such period prior to commencement of the Member’s Pension as may be required by the Vice President.  The Member also may designate, prior to commencement, a Dependant to receive the survivor portion of his elected survivor option on such form as may be required by the Vice President; provided, however, that (1) the approval of the Vice President shall be necessary if the Member designates a Dependant other than the Member’s Eligible Spouse; and (2) if a married Member elects an option described in this subsection (b) and names a Dependant other than his Eligible Spouse, he must submit written evidence of the Eligible Spouse’s consent to such option and designation of a Dependant.  A Member may not change his form of benefit or Dependant after his Pension has commenced.  
(1)  100 Percent Survivor Option:  The Member shall receive a reduced Pension payable for his life and payments in the same reduced amount shall continue after the Member's death to his Dependant for life.  Subject to subsection (f) below, the amount of the Member's reduced Pension is determined by reducing the amount of the Member’s Single Life Annuity benefit, determined in accordance with Table A, by 20 percent.  In the case of a Member who became entitled to a Pension under the Plan as in effect prior to January 1, 1990, the above Pension reduction may be subject to a subsidy, as determined by the Vice President.
(2)  75 Percent Survivor Option:  The Member shall receive a reduced Pension payable for his life and payments in the amount of 75 percent of such reduced Pension shall continue after the Member's death to his Dependant for life.  Subject to subsection (f) below, the amount of the Member's reduced Pension is determined by reducing the amount of the Member’s Single Life Annuity benefit, determined in accordance with Table A, by 15 percent.  In the case of a Member who became entitled to a Pension under the Plan as in effect prior to January 1, 1990, the above Pension reduction may be subject to a subsidy, as determined by the Vice President.

(3)  50 Percent Survivor Option:  The Member shall receive a reduced Pension payable for his life and payments in the amount of 50 percent of such reduced Pension shall continue after the Member's death to his Dependant for life.  Subject to subsection (f) below, the amount of the Member's reduced Pension is determined by reducing the amount of the Member’s Single Life Annuity benefit, determined in accordance with Table A, by 10 percent.  In the case of a Member who became entitled to a Pension under the Plan as in effect prior to January 1, 1990, his Pension shall not be subject to this reduction.

(4)  Ten-Year Certain and Life Option:  Subject to Section 5.04, a Member may elect to receive a reduced Pension payable monthly for his lifetime but for not less than 120 months.  If the Member dies before 120 payments have been 

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made, the monthly Pension amount shall be paid for the remainder of the 120-month period to the Member's primary Dependant (if the primary Dependant has predeceased the Member, to the Member's contingent Dependant; and if there is no contingent Dependant, to the Member’s estate).  If post-death payments commence to a Member’s primary or contingent Dependant and such Dependant dies before all remaining payments due have been made, then the remaining payments shall be paid to such Dependant’s estate.  Effective as of January 1, 2010, the Member’s Dependant or estate (as applicable) may elect by following the procedures set forth by the Vice President for this purpose, instead to receive a single lump sum payment that is the actuarial equivalent of the remaining payments due to such Dependant or estate (but computed without reduction for mortality), determined as of the date on which the lump sum payment is processed by the Vice President.  The amount of the Member's reduced Pension is determined by reducing the Member's Single Life Annuity benefit, determined in accordance with Table A, by 5 percent.  

(c)  Lump Sum Payment:  Subject to Section 5.04, a Member who elects not to receive benefits in the normal form may elect to receive payment of his Pension in the form of a single lump sum payment.  The amount of the single lump sum payment shall be the actuarial equivalent of the Single Life Annuity, determined in accordance with Table A, utilizing the lump sum equivalent factors applicable to lump sum distributions under the PepsiCo Salaried Plan (disregarding transition factors), calculated as of the date payments would have commenced under the normal form of benefit or other optional benefit.  The lump sum payment shall be made in one taxable year of the Member and shall be paid as soon as practicable after the date specified by the Member in his written election.  Effective for lump sum payments due to be paid on or after January 1, 2010, interest will be added to late lump sum payments in accordance with the administrative practices of the PepsiCo Salaried Plan. No interest shall be payable on such sum during any such deferred period specified by the Member.  

(d)  Combination Lump Sum/Monthly Benefit:  Subject to Section 5.04, a married or unmarried Member who elects not to receive his Pension in the normal form may elect to receive payment of his Pension in the form of a combination lump sum/monthly benefit option.  If elected, the Member shall receive a portion of his benefit in the form of a lump sum payment, and the remaining portion in the form of one of the monthly benefits described in Sections 5.02 and 5.03.  The benefit shall be divided between the two forms of payment based on the whole number percentages designated by the Member on a form provided for this purpose.  To be effective, the two percentages designated by the Member must add to 100 percent.

(1) The amount of the benefit paid in the form of a lump sum is determined by multiplying: (A) the amount determined under Section 5.03(c) by (B) the percentage that the Member has designated for receipt in the form of a lump sum.

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(2)  The amount of the benefit paid in the form of a monthly benefit is determined by multiplying: (A) the amount of the monthly benefit elected by the Member, determined in accordance with Sections 5.03(a) or (b), by (B) the percentage that the Member has designated for receipt in the form of a monthly benefit. 

(e)  Death Prior to Pension Becoming Payable:  If a Member who is entitled to an immediate Pension under Article IV elects an optional form of payment under this Section 5.03, if such election meets all requirements to be effective (other than the Member’s survival, but including the time for making the election and any necessary Eligible Spouse’s consent), and thereafter the Member dies after leaving employment but before such Pension becomes payable, then on the first day of the month next following his death such optional form of payment shall be deemed to be in effect.  Such deemed effectiveness may only apply once and only to the initial election made by a Member (except as permitted by a decision of the Vice President that is made prior to the Member’s submission of a subsequent purported election).  Notwithstanding the foregoing, in the case of the option under Section 5.03(b), if the Member’s specified Dependant has died or shall die before the date on which the first installment of the Member’s Pension was prospectively payable in accordance with the optional form of payment elected by the Member, the Member’s election of such optional form shall not be given effect.

(f)  Reduction for Certain Younger Dependants:  Notwithstanding the reduction factors specified in Sections 5.02(b) and 5.03, a Member electing a form of payment that includes a survivor option shall have his Pension reduced in accordance with this subsection (f) in the event the Dependant under such survivor option is more than 10 years younger than the Member.

(1)  Not More than 20 Years Younger:  In the event the Dependant is more than 10 years younger than the Member, but not more than 20 years younger, the percentage reduction that otherwise would apply shall be increased by 5 percentage points.

(2)  More than 20 Years Younger:  In the event the Dependant is more than 20 years younger than the Member, the 5 percentage point increase in the reduction provided in (1) above shall be further increased by an additional 0.2 percent for each full year over 20.

5.04    Applicability of Certain Options.

Notwithstanding the preceding provisions of this Article V, the availability of certain distribution options shall be restricted in accordance with the terms of this Section 5.04.

(a)  Pre-1990 Distributions:  The form of payment described in Section 5.03(d) above shall not be available unless the Member's Annuity Starting Date is after 1989.

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(b)  Deferred Vested Pensions:  Deferred Vested Pensions under Section 4.04 shall be eligible for payment only under the Single Life Annuity, the 50 Percent Survivor Option or the 75 Percent Survivor Option, except as provided in the next sentence.  Effective as of January 1, 2015, Deferred Vested Pensions under Section 4.04 shall also be eligible for the Lump Sum Payment option, but only to the limited extent that such option is available on an on-going basis with respect to deferred vested pensions under the PepsiCo Salaried Plan (except that unlike participants in the PepsiCo Salaried Plan, participants in this Plan with a benefit under the PepsiCo Pension Equalization Plan shall not be excluded from the Lump Sum Payment option).  
(c)  Simplified Actuarial Factors:  In the case of a Member who became entitled to a Pension prior to January 1, 1990, the actuarial equivalencies described in the preceding provisions of this Article V shall be adjusted as provided by the Vice President from time to time to reflect the value of any subsidized survivor benefit to which the Member is entitled under the last sentence of Section 5.02(b) (regarding the availability on favorable terms of the survivor benefit described in Section 5.02(b)). 

5.05    Cashout of Small Benefits.
Where the total Pension payable to any person under the DB Program is, in the opinion of the Vice President, of an amount that is relatively trivial (when considered by itself or in relation to the potential administrative burden of continuing to keep track of such Pension under the DB Program), he may commute the whole of such Pension to a lump sum payable following (i) the relevant Member’s termination of employment from both his Employer and the PepsiCo Organization,  or (ii) a Member’s transfer within the PepsiCo Organization that results in the Member ceasing to actively accrue all benefits under the DB Program, on a date determined in the discretion of the Vice President, without the consent of the Member.

5.06    Designation of Dependant.
A Member who has elected to receive all or part of his pension in a form of payment that includes a survivor option shall designate a Dependant who will be entitled to any amounts payable on his death.  A Member shall have the right to change or revoke his Dependant designation at any time prior to the effective date of his election.  If the Member is married at the time he designates a Dependant, any designation under this section of a Dependant who is not the Member’s Eligible Spouse shall require the written consent of the Member’s Eligible Spouse.  A revocation of a Dependant does not require consent by the Member’s Eligible Spouse.  The designation of any Dependant, and any change or revocation thereof, and any written consent of a Member’s Eligible Spouse required by this Section shall be made in accordance with rules adopted by the Vice President, shall be made in writing on forms provided by the Vice President, and shall not be effective unless and until filed with the Vice President.  In the case of the survivor option described in Section 5.03(b)(4), the following shall apply: (i) the Member shall be entitled to name both a primary Dependant and a contingent Dependant, and (ii) if no Dependant is properly designated, then a Member’s election of such option will not be given effect.

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ARTICLE VI - DEATH BENEFITS

The surviving Eligible Spouse of a Member who dies shall be entitled to certain survivor benefits if the requirements of this Article VI are satisfied.  The amount of any such benefit shall be determined in accordance with Section II of Table A.

6.01    Active and Retirement-Eligible Members.

In the event of the death of a married Active Member or a married Member in Service after his Normal Retirement Date, who had at his death completed at least 5 years of Service, or of a Member entitled to an Early Retirement Pension under Section 4.02 or a Special Early Retirement Pension under Section 4.03, and who is not entitled at the time of his death to the protection provided by Section 5.03(e), there shall be a Pre-Retirement Spouse’s Pension payable to the Member’s surviving Eligible Spouse, if any, calculated in accordance with the provisions of Section II of Table A.  

6.02    Deferred Vested Members.

In the event of the death of a married Member who is entitled to a Deferred Vested Pension under Section 4.04 and who is not entitled at the time of his death to the protections provided by Section 5.03(e), there shall be payable a Pre-Retirement Spouse’s Pension, which shall be calculated based on the Member’s Salary and Pensionable Service at the time of the Member’s termination of employment date.  The benefit shall be calculated as if the Member lived until the earliest date the Member’s vested benefit could have started, after having elected to start his benefit at that time in the form of a 50 Percent Survivor Annuity, and died that same day. 

Coverage for this Pre-Retirement Spouse’s Pension shall be paid for with a reduction to the monthly benefit otherwise payable to the Member. The reduction charged to the Member’s benefit shall be calculated in accordance with the methodology, and based on the same factors, provided for under the PepsiCo Salaried Plan, as in effect from time to time. The Member may only waive this Pre-Retirement Spouse’s Pension coverage with the approval of the Vice President.  

6.03    Form and Time of Payment of Death Benefits.

(a)  Form of Payment:  Any Pension payable pursuant to this Article VI shall be payable for the surviving Eligible Spouse’s life only; however, in the case of a Pension payable to a surviving Eligible Spouse where the Member was eligible for a Normal, Early or Special Early Retirement Pension at death, the Eligible Spouse may elect to receive the Pension in the form of a single lump sum payment in lieu of the annuity payment.

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(b)  Time of Payment:  Subject to Section 6.04, any Pension payable to the Eligible Spouse under this Article VI shall commence on the first day of the month coinciding with or next following the Member’s death, or if later, the date on which the Member would have attained age 55.  In the event a Pension payable to a Member’s Eligible Spouse commences before the Member would have reached Normal Retirement Age, the benefit will be reduced as set forth in Section 4.02, 4.03 or 4.04, as applicable based on the Pension to which the Member was entitled, to reflect early commencement.

6.04    Disposition of Death Benefits.

Any benefit expressed to be subject to disposition in accordance with the provision of this Article VI shall be held by the Vice President with power to pay or apply the same to or for the benefit of such one or more of the Member’s Dependants, as the Vice President shall think fit and if more than one in such shares as they shall likewise think fit.  Notwithstanding any other provision of the DC Program, the Vice President may direct that such benefit shall commence or be paid in a lump sum as soon as practicable after the Member’s date of death.

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ARTICLE VII - ADMINISTRATION

7.01    Authority to Administer Plan.  

(a)  Administration by the Vice President:  The Plan shall be administered by the Vice President, who shall have the authority to interpret the Plan and issue such regulations as he deems appropriate. All actions by the Vice President hereunder may be taken in his sole discretion, and all interpretations, determinations and regulations made or issued by the Vice President shall be final and binding on all persons and parties concerned.  

(b)  Authority to Delegate: The Vice President may delegate any of his responsibilities under the Plan to other persons or entities, or designate or employ other persons to carry out any of his duties, responsibilities or other functions under the Plan.  Any reference in the Plan to an action by the Vice President shall, to the extent applicable, refer to such action by the Vice President’s delegate or other designated person.  

7.02    Facility of Payment.

Whenever, in the opinion of the Vice President, a person entitled to receive any payment of a benefit or installment thereof hereunder is under a legal disability or is incapacitated in any way so as to be unable to manage his financial affairs, the Vice President may direct that payments from the Plan be made to such person’s legal representative for his benefit, or that the payment be applied for the benefit of such person in such manner as the Vice President considers advisable.  Any payment of a benefit or installment thereof in accordance with the provisions of this section shall be a complete discharge of any liability for the making of such payment under the provisions of the Plan.

7.03    Claims Procedure.  

The Vice President shall have the exclusive discretionary authority to construe and to interpret the Plan, to decide all questions of eligibility for benefits and to determine the amount of such benefits, and his decisions on such matters are final and conclusive.  As a result, benefits under this Plan will be paid only if the Vice President decides in his discretion that the person claiming such benefits is entitled to them.  This discretionary authority is intended to be absolute, and in any case where the extent of this discretion is in question, the Vice President is to be accorded the maximum discretion possible.  Any exercise of this discretionary authority shall be reviewed by a court, arbitrator or other tribunal under the arbitrary and capricious standard (i.e., the abuse of discretion standard).  If, pursuant to this discretionary authority, an assertion of any right to a benefit by or on behalf of a Member or Dependant (a “claimant”) is wholly or partially denied, the Vice President, or a party designated by the Vice President, will provide such claimant within the 90-day period following the receipt of the claim by the Vice President, a comprehensible written notice setting forth:

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(1)  The specific reason or reasons for such denial;

(2)  Specific reference to pertinent Plan provisions on which the denial is based;

(3) A description of any additional material or information necessary for the claimant to submit to perfect the claim and an explanation of why such material or information is necessary; and

(4) A description of the Plan’s claim review procedure (including the time limits applicable to such process).

If the Vice President determines that special circumstances require an extension of time for processing the claim he may extend the response period from 90 to 180 days.  If this occurs, the Vice President will notify the claimant before the end of the initial 90-day period, indicating the special circumstances requiring the extension and the date by which the Vice President expects to make the final decision.  Upon review, the Vice President shall provide the claimant a full and fair review of the claim, including the opportunity to submit to the Vice President comments, document, records and other information relevant to the claim and the Vice President’s review shall take into account such comments, documents, records and information regardless of whether it was submitted or considered at the initial determination.  The decision on review will be made within 60 days after receipt of the request for review, unless circumstances warrant an extension of time not to exceed an additional 60 days.  If this occurs, notice of the extension will be furnished to the claimant before the end of the initial 60-day period, indicating the special circumstances requiring the extension and the date by which the Vice President expects to make the final decision.  The final decision shall be in writing and drafted in a manner calculated to be understood by the claimant; include specific reasons for the decision with references to the specific Plan provisions on which the decision is based; and provide that the claimant is entitled to receive, upon request and free of charge, copies of, all documents, records, and other information relevant to his or her claim for benefits.

Any claim under the Plan that is reviewed by a court, arbitrator or any other tribunal shall be reviewed solely on the basis of the record before the Vice President at the time it made its determination.  In addition, any such review shall be conditioned on the claimant’s having fully exhausted all rights under this section.  

7.04    Limitations on Actions.
Any claim filed under Article VII and any action filed in any court or other tribunal by or on behalf of a former or current Employee, Member, Dependant or any other individual, person or entity (collectively, a “Petitioner”) for the alleged wrongful denial of Plan benefits must be brought within two years of the date the Petitioner’s cause of action first accrues.  For purposes of this subsection, a cause of action with respect to a Petitioner’s benefits under the Plan shall be deemed to accrue not later than earlier of (i) when the Petitioner has received the calculation of the benefits that are the subject of the claim or legal action; (ii) the date identified to the Petitioner by the Vice President on which payments shall commence; or (ii) when he has actual 

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or constructive knowledge of the facts that are the basis of his claim.  Failure to bring any such claim or cause of action within this two-year time frame shall preclude a Petitioner, or any representative of the Petitioner, from filing the claim or cause of action.  Correspondence or other communications following the mandatory appeals process described above shall have no effect on this two-year time frame.  

7.05    Restriction of Venue.

Any claim or action filed in court or any other tribunal in connection with the Plan by or on behalf of a Petitioner shall only be brought or filed in the state or federal courts of New York, specifically the state or federal court, whichever applies, located nearest the Corporation’s headquarters.

7.06    Effect of Specific References.

Specific references in the Plan to the Vice President’s discretion shall create no inference that the Vice President’s discretion in any other respect, or in connection with any other provision, is less complete or broad.

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ARTICLE VIII - AMENDMENT AND TERMINATION

8.01    Continuation of the Plan.  

While the Corporation intends to continue the Plan indefinitely, it assumes no contractual obligation as to its continuance.  The Corporation hereby reserves the right, in its sole discretion, to amend, terminate, or partially terminate the Plan at any time provided, however, that no such amendment or termination shall adversely affect the amount of benefit to which a Member or his Dependant is entitled under the Plan on the date of such amendment or termination, unless the Member becomes entitled to an amount equal to such benefit under another plan or practice adopted by the Corporation.  Specific forms of payment are not protected under the preceding sentence.

8.02    Amendment.  

The Corporation may, in its sole discretion, make any amendment or amendments to the Plan from time to time, with or without retroactive effect, subject to Section 8.01.  An Employer (other than the Corporation) shall not have the right to amend the Plan.

8.03    Termination.  

The Corporation may terminate the Plan, either as to its participation or as to the participation of one or more Employers.  If the Plan is terminated with respect to fewer than all of the Employers, the Plan shall continue in effect for the benefit of the employees of the remaining Employers.

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ARTICLE IX - MISCELLANEOUS

9.01    Unfunded Plan.

The Employers’ obligations under the Plan shall not be funded, but shall constitute liabilities by the Employer payable when due out of the Employer’s general funds.  To the extent a Member or any other person acquires a right to receive benefits under this Plan, such right shall be no greater than the rights of any unsecured general creditor of the Employer.  

9.02    Costs of the Plan.

Unless otherwise agreed by the Corporation, all costs, charges and expenses of or incidental to the administration and management of the Plan shall be the costs, charges and expenses of the Employers and shall be paid by each Employer based on the proportion of Members who are employed by such Employer as compared to the total number of Members at the time the cost or expense is incurred.

9.03    Temporary Absence of Member.

If a Member is absent from duty by reason other than death, discharge, retirement or quitting (e.g., sickness, accident, layoff, vacation), he shall be deemed to have terminated employment on the date that is 12 months after the date on which he is absent, unless the Vice President determines otherwise.  If the Member’s absence from duty is by reason of his service as a full-time member of the armed forces of any country or of any organization engaged in national service of any such country, he shall not be deemed to have terminated employment so long as he is regarded by the Employer as remaining in employment or until he shall resign permanently from employment, whichever shall first occur.

9.04    Taxes, Etc.

In the event any tax or assessment or other duty is determined by the Vice President to be owing in respect of any benefit payable from the Plan, the Plan shall be entitled to withhold an amount not exceeding the amount of any such tax or assessment or other duty from the benefit payable and shall apply the same in satisfaction of said tax or assessment or other duty.

9.05    Nonguarantee of Employment.

Nothing in the Plan shall be construed as a contract of employment between an Employer and any of its employees, or as a right of any such employee to continue in the employment of the Employer, or as a limitation of the right of an Employer to discharge any of its employees, with or without cause.  

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9.06    No Right to Benefits.

No person, whether or not being a Member, shall have any claim, right or interest under the Plan except as provided by the terms of the Plan.  In the event of a Member’s termination of employment by an Employer, the resulting cessation of his Active Membership shall not be grounds for any damages or any increase in damages in any action brought against the Employer or any member of the PepsiCo Organization with respect to such termination.

9.07    Charges on Benefits and Recovery of Excess Payments.
 
All benefits in respect of a Member under the Plan shall stand charged with and be subject to deductions therefrom of all sums in respect of losses to a member of the PepsiCo Organization or Employer or otherwise caused by misdemeanor of the Member and on production by the member of the PepsiCo Organization or Employer of proof satisfactory to the Vice President that any such loss ought to be made good by a Member.  The relevant amount shall be deductible from the Member’s benefits and be payable to the Employer or member of the PepsiCo Organization whose receipt shall be a valid discharge for the same.

Payments to, for or in connection with a Member that are made (as of a point in time and to any person or entity) may not exceed the exact amount of payments that are due as of such time and to such person, as provided by the terms of the Plan that specify the amounts that are payable, the time as of which they are payable, and the person to whom they are payable.  Accordingly, any such excess payment or any other overpayment, premature payment or misdirected payment (one or more of which are hereafter referred to as an “Excess Payment”) may not be retained by the party receiving it, but must be restored promptly to the Plan.  In exchange for Member or Dependant status hereunder (or for having any other direct or indirect right or claim of right from the Plan, or solely as a result of having received an Excess Payment), any party receiving an Excess Payment grants to the Plan the following nonexclusive rights –

(1)    A constructive trust and first priority equitable lien on any payment that is received directly or indirectly from the Plan and that is, in whole or part, an Excess Payment (such trust and lien shall be equal to the amount of the Excess Payment increased by appropriate interest) or upon the proceeds or substitutes for such payment, and any transfer shall be subject to such constructive trust and equitable lien (including a transfer to a person, trust fund or entity).
(2)    The right to offset (as necessary to recover the Excess Payment with appropriate interest) other payments that are properly payable by the Plan to the recipient of the Excess Payment; however, reliance on this right is in the discretion of the Vice President, and the existence of an opportunity to apply it shall not diminish the Plan’s rights under paragraph (1) above.

(3)    The right to bring any equitable or legal action or proceeding with respect to the enforcement of any rights in this Section in any court of competent jurisdiction as the Plan may elect, and following receipt of an 

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Excess Payment the Member hereby submits to each such jurisdiction, waiving any and all rights that may correspond to such party’s present or future residence.

Any party receiving an Excess Payment shall promptly take all actions requested by the Vice President that are in furtherance of the Plan’s recovery of the Excess Payment with appropriate interest.  In all cases, this subsection shall maximize the rights of the Plan to recover improper payments and shall not restrict the rights of the Plan in any way, including with respect to any improper payment that is not addressed above.

9.08    Termination for Cause; Prohibited Misconduct.

(a)  Notwithstanding any other provision of this Plan to the contrary, if the Vice President determines that a Member has been terminated for cause or engaged in Prohibited Misconduct at any time prior to the second anniversary of the date his or her employment with the PepsiCo Organization terminates, the Member shall forfeit his Pension (whether paid previously, being paid currently or payable in the future), and his or her Pension shall be adjusted to reflect such forfeiture and any previously paid Pension payments shall be recovered.  As a condition to Membership in this Plan, each Member agrees to this, and each Member agrees to repay PepsiCo the amounts it seeks to recover under this Section 9.08.

(b)  Any of the following activities engaged in, directly or indirectly, by a Member shall constitute Prohibited Misconduct:

(1)  The Member accepting any employment, assignment, position or responsibility, or acquiring any ownership interest, which involves the Member’s “Participation” (as defined below) in a business entity that markets, sells, distributes or produces “Covered Products” (as defined below), unless such business entity makes retail sales or consumes Covered Products without in any way competing with the PepsiCo Organization.
(2)  The Member, directly or indirectly (including through someone else acting on the Member’s recommendation, suggestion, identification or advice), soliciting any PepsiCo Organization employee to leave the PepsiCo Organization’s employment or to accept any position with any other entity.
(3)  The Member using or disclosing to anyone any confidential information regarding the PepsiCo Organization other than as necessary in his or her position with the PepsiCo Organization.  Such confidential information shall include all non-public information the Member acquired as a result of his or her positions with the PepsiCo Organization.  Examples of such confidential information include non-public information about the PepsiCo Organization’s customers, suppliers, distributors and potential acquisition targets; its business operations and structure; its product lines, formulas and pricing; its processes, machines and inventions; its research and know-how; its financial data; and its plans and strategies.  

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(4)  The Member engaging in any acts that are considered to be contrary to the PepsiCo Organization’s best interests, including violating the Corporation’s Code of Conduct, engaging in unlawful trading in the securities of the Corporation or of any other company based on information gained as a result of his or her employment with the PepsiCo Organization, or engaging in any other activity which constitutes gross misconduct.
(5)  The Member engaging in any activity that constitutes fraud.
Notwithstanding the foregoing and for the avoidance of doubt, nothing in this Plan shall prohibit the Member from communicating with government authorities concerning any possible legal violations without notice to the Corporation, participating in government investigations, and/or receiving any applicable award for providing information to government authorities.  The Corporation nonetheless asserts and does not waive its attorney-client privilege over any information appropriately protected by the privilege.  Further, pursuant to the Defend Trade Secrets Act, an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.  
For purposes of this subsection, “Participation” shall be construed broadly to include:  (i) serving as a director, officer, employee, consultant or contractor with respect to such a business entity; (ii) providing input, advice, guidance or suggestions to such a business entity; or (iii) providing a recommendation or testimonial on behalf of such a business entity or one or more products it produces.  For purposes of this subsection, “Covered Products” shall mean any product that falls into one or more of the following categories, so long as the PepsiCo Organization is producing, marketing, selling or licensing such product anywhere in the world – beverages, including without limitation carbonated soft drinks, tea, water, juice drinks, sports drinks, coffee drinks and value-added dairy drinks; juices and juice products; snacks, including salty snacks, sweet snacks meat snacks, granola and cereal bars, and cookies; hot cereals; pancake mixes; value-added rice products; pancake syrups; value-added pasta products; ready-to-eat cereals; dry pasta products; or any product or service that the Member had reason to know was under development by the PepsiCo Organization during the Member’s employment with the PepsiCo Organization.

9.09    Notices.

Any notice which under the Plan is required to be given to or served upon the Plan shall be deemed to be sufficiently given to or served upon the Plan if it is in writing and delivered to 

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the Vice President.  In any case where under the Plan any notice shall be required to be given to Members, it shall be sufficient if such notice is delivered to the Member’s last known address on file in the records of the Employer or delivered to the Member pursuant to any other method (e.g., electronically) that the Vice President determines is reasonably available to the Member.

9.10    Plan Documentation.

Every Member shall on demand be entitled to a copy of the governing legal document for the DB Program.

9.11    Currency of Payment.

Payment of benefits under the Plan shall be made in United States dollars, or other "eligible currency," as approved by the Vice President.  For both annuity and lump sum payments, the amount otherwise payable in United States dollars would be converted to the selected currency using the exchange rate, based on the methodology approved by the Vice President from time to time.

9.12    Governing Law.

The Plan shall in all respects be governed by and interpreted according to the laws of the State of New York. 

9.13    Exemption from ERISA.

The Plan is intended to be exempt from the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), as a plan maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens of the United States.  In order to preserve this exemption from ERISA, both Active Membership in the Plan and the opportunity to increase Highest Average Monthly Earnings after ceasing to be an Active Member, in accordance with Section  4.04(b), shall be limited to individuals who are nonresident aliens of the United States and whose assigned work locations are outside the United States, and it is intended that all permanent records and documentation relating to the administration of the Plan shall be kept at a location that is outside of the United States.    

9.14    Exemption from Section 409A.

In order to permit this Plan to be completely exempt from United States Internal Revenue Code section 409A (“Section 409A”), this Plan shall be subject to the special operating rules and limitations in this Section 9.14, effective for any period to which Section 409A applies.  It is the intent of the Plan that no Member who is a U.S. Person may in any way have their benefit from the Plan vest, increase or in any way be enhanced (collectively, a “Benefit Enhancement”) as a result of their compensation or service while a U.S. Person.  Accordingly, no Member shall become entitled to a Benefit Enhancement with respect to a calendar year until it is determined, following the close of such year, that the Member was not a U.S. Person with respect to such 

29

year.  Notwithstanding the preceding sentence, in the calendar year a Member’s benefit under this Plan is scheduled to commence, the Vice President may authorize a Benefit Enhancement for the calendar year of benefit commencement to the extent the Vice President determines satisfactorily that the Member will not be a U.S. Person for such year.  In other cases, the Member’s benefit will commence under this Plan without any Benefit Enhancement related to the calendar year of commencement, and appropriate adjustments will be made to the Member’s benefit in the following year if it is determined that the Member was not a U.S. Person in such calendar year of commencement.    This Section 9.14 shall at all times be interpreted and applied in accordance with the overriding requirement that benefits and any other rights under the Plan must remain entirely exempt from Section 409A, and the Vice President shall have such unrestricted authority as is necessary to ensure that it is applied in accordance with this requirement.

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ARTICLE X - SIGNATURE 

This Plan is hereby adopted this 30th day of January, 2017, to be effective as of January 1, 2016.
                

PEPSICO, INC.

By:  /s/ Cynthia M. Trudell    
Cynthia M. Trudell
Executive Vice President, Human Resources
Chief Human Resources Officer
APPROVED:

By:  /s/ Stacy DeWalt Grindal
Stacy DeWalt Grindal
Senior Legal Director
Employee Benefits Counsel

        

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TABLE A - CALCULATION OF PENSIONS

This section sets forth the formulas for calculating the Pension payable to a Member under Article IV or the Death Benefit payable to a Member’s Eligible Spouse under Article VI.  Any benefits accrued under the DB Program by a Member while a part-time employee, following such Member’s designation by the Vice President as an Eligible Employee pursuant to the last sentence of Section 2.01(g), shall be prorated as determined by the Vice President to reflect the approximate ratio of the Member’s level of services during such part-time status to the level required for full-time status at the Member’s work location.

(I)    Member’s Pension

(a)    The Pension payable (as a Single Life Annuity benefit) on retirement at Normal Retirement Date for Members who became members of the Plan before January 1, 1976 shall be the larger of the Pension calculated under this paragraph (a) or under paragraph (b) below.  The Pension under this paragraph (a) shall be the greater of (1) or (2) below:

(1)    1.5 percent of the Member’s Highest Average Monthly Salary (as hereinafter defined) multiplied by the number of years of Pensionable Service; or

(2)    3 percent of the Member’s Highest Average Monthly Salary, multiplied by the number of years of his Pensionable Service but not exceeding 15 years.

(b)    The Pension payable (as a Single Life Annuity benefit) on retirement at Normal Retirement Date (i) for Members who became members of the Plan on or after January 1, 1976, and (ii) for persons (other than those in (i)) who became Members on or after September 1, 1980, and (iii) for persons (other than in (i) or (ii)) who became Members after November 12, 1998, shall be the Pension calculated under this paragraph (b).  The pension calculated under this paragraph (b) shall be the aggregate of:

(1)    For up to the first 10 years of Pensionable Service, the product of (i) 3 percent of the Member’s Highest Average Monthly Salary, multiplied by (ii) the number of years of Pensionable Service, but not exceeding 10 such years; plus

(2)    For any years of Pensionable Service in excess of 10, the product of (i) 1 percent of the Member’s Highest Average Monthly Salary, multiplied by (ii) the number of years of Pensionable Service in excess of 10.

(c)    At the discretion of the Vice President, the Pension calculated as provided in paragraphs (a) and (b) above shall be reduced by some or all of the following:

(1)    All state pension and social security benefits receivable by the Member attributable to Service other than those derived from unmatched and unreimbursed voluntary contributions made by the Member;

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(2)    The annuity equivalent of a like portion of all capital sum benefits receivable by the Member on or by reason of his retirement either from a state source or from the Employer in consequence of a requirement of local legislation, including, but not limited to, termination indemnities;

(3)    Any benefits payable to the Member (or in respect of him) from other retirement benefit plans (or cash allowance received in lieu of Employer contributions to a retirement benefit plan) of the Employers in respect of any period of employment which qualifies as Pensionable Service both under the DB Program and under such other retirement benefit plans of the Employers;

(4)    Any other payment made by the Employer at the time of termination of the Member that arises from any severance agreement made between the Employer and Member, for whatsoever reason; 

(5)    The value (as determined in accordance with methodology approved by the Vice President) of any benefits paid to the Member prior to his retirement from any plan in respect of any period of employment which qualifies as Pensionable Service both under the DB Program and under such other retirement benefit plans of the Employers;

(6)    Any deductions, reductions or forfeiture of a Member's benefits resulting from a Member's misdemeanor, misconduct or discharge for cause pursuant to Section 9.08 hereof.  

No such deduction shall be made in respect of any such benefits as are derived from unmatched and unreimbursed voluntary contributions made by the Member.  The value of all such deductions shall be subject to adjustment to reflect the form and timing of payment.  All deductions set out in this paragraph (c) shall be calculated as of the Member’s termination date and in accordance with methodology approved by the Vice President from time to time.

(d)    If the Pension payable to or on behalf of a Member is reduced under paragraph (c) above, an alternative calculation of the Pension for such Member shall apply unless the Vice President determines that the alternative calculation would be unnecessary or impractical or would not serve the purposes of the DB Program.  Under this alternative calculation, only the Member’s Pensionable Service under this DB Program, which does not include any employment that is taken into account in determining benefits under paragraph (c)(1) - (5), shall be considered, and the reductions under paragraph (c)(1) - (5) shall be disregarded (however, the reduction under paragraph (c)(6) shall be taken into account).  If this alternative calculation applies, the Pension payable under this alternative calculation shall be compared to the Pension payable under paragraphs (a), (b) and (c) above, and whichever provides the greater Pension amount will be payable to or on behalf of the Member, subject to the remaining provisions of this paragraph (d).  The alternative calculation set forth in this paragraph (d) is intended to provide a calculation methodology that replicates the effect of the “extended wearaway” calculation methodology, as it is in effect from time to time under the PepsiCo Salaried Plan.  

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Notwithstanding the foregoing terms of this paragraph (d), any benefit increase provided as a result of this paragraph (d) will be limited so that in the judgment of the Vice President it is not in excess of what should be available given the intent described in the preceding sentence.  

(e)    For purposes of this Table A, "Highest Average Monthly Salary" means one twelfth of the yearly average of the Member’s Salary over any 5 consecutive calendar years of Service in which such Salary was highest (or over such lesser period as the Member has been in Service).  For purposes of determining a Member's Highest Average Monthly Salary, the following shall apply:

(1)    A calendar year with no Salary shall be disregarded, and the calendar years preceding and following such calendar year (or years) shall be considered consecutive.

(2)    If in a calendar year there is an unpaid authorised leave of absence, or other absence from paid service, that results in less than a complete year of Salary, such calendar year shall be disregarded and the next preceding or succeeding year or years shall be taken into account if it results in a higher average.

(f)    In determining the amount of a Deferred Vested Pension for the purposes of Section 4.04, the Pension shall be equal to the greatest of the amounts determined under subsection (1), (2) or (3) below:

(1)    The Pension calculated as provided in (b) above, but based on the Pensionable Service the Member would have earned had he remained an Active Member until his Normal Retirement Age (subject to a maximum of 35 years) and Highest Average Monthly Salary as of September 30, 2003, reduced by a fraction, the numerator of which is the Member’s actual years of Pensionable Service prior to October 1, 2003 (subject to a maximum of 35 years) and the denominator of which is the years of Pensionable Service he would have earned had he remained an Active Member until his Normal Retirement Age.  

(2)    The aggregate of:

(i)    The Pension calculated as provided in (b) above, but based on the Pensionable Service the Member would have earned had he remained an Active Member until his Normal Retirement Date and Highest Average Monthly Salary as of September 30, 2003, reduced by a fraction, the numerator of which is the Member’s actual years of Pensionable Service prior to October 1, 2003 and the denominator of which is the years of Pensionable Service he would have earned had he remained an Active Member until his Normal Retirement Date; and  

(ii)    The Pension calculated as provided in (b) above, but based on the Pensionable Service the Member would have earned had he remained an Active Member until his Normal Retirement Date and the Highest Average Monthly 

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Salary at the date the Member ceases to be in Service, reduced by a fraction, the numerator of which is the Member’s actual years of Pensionable Service after September 30, 2003 and the denominator of which is the years of Pensionable Service he would have earned had he remained an Active Member until his Normal Retirement Date.  

(3)    The Pension calculated as provided in (b) above, but based on the Pensionable Service the Member would have earned had he remained an Active Member until his Normal Retirement Date and the Highest Average Monthly Salary at the date the Member ceases to be in Service, reduced by a fraction, the numerator of which is the Member’s actual years of Pensionable Service and the denominator of which is the years of Pensionable Service he would have earned had he remained an Active Member until his Normal Retirement Date.  

For Members who became Members of the Plan before January 1, 1976, the Deferred Vested Pension shall be the larger of 11⁄2 percent of the Member’s Highest Average Monthly Salary multiplied by the Member’s number of years of Pensionable Service at termination or the amount determined by the Vice President based on actuarial information provided to the Vice President.

All deductions set out in (c) above that are applicable to a Member entitled to a Deferred Vested Pension shall be calculated as of the time such Member ceases to be in Service and in accordance with methodology approved by the Vice President.

(II)    Pre-Retirement Spouse’s Pension

Effective for deaths before July 1, 2010, the Pre-Retirement Spouse’s Pension payable pursuant to the provisions of Section 6.01 shall be equal to 25 percent of the Pension, payable as a Single Life Annuity, to which the Member would have been entitled at his Normal Retirement Date, calculated as in Part I above as if the Member had remained an Active Member until age 65 without change in his Highest Average Monthly Salary.  In computing the Member’s Pension for this purpose the Member's Pension shall be reduced to reflect any benefits which would have been taken into account under Part I above had the Member retired on the date of death, but shall not reduce the Pre-Retirement Spouse’s Pension to reflect commencement prior to the date the Member would have attained Normal Retirement Age.  Notwithstanding the preceding provisions of this paragraph, if a Member covered by Section 6.01 dies after the date he would have been entitled to retire early under Section 4.02, the Pre-Retirement Spouse’s Pension payable to such spouse shall not be less than 50 percent of the Pension to which the Member would have been entitled if he had retired on the day preceding his death and shall be reduced in accordance with Section 4.02 if the spouse commences the Pre-Retirement Souse’s Pension prior to the date the Member would have attained age 62.

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APPENDIX ERW - EARLY RETIREMENT WINDOWS 

ERW.1    Scope.  

This Appendix ERW supplements the main portion of the DB Program with respect to the rights and benefits of Covered Employees.

ERW.2    Definitions and Program Specific Rules.  

This section provides definitions for the following words or phrases in boldface and underlined.  Where they appear in this Appendix ERW with initial capitals they shall have the meaning set forth below.  Except as otherwise provided in this Appendix ERW, all defined terms shall have the meaning given to them in Section 2.01 of the DB Program. 

(a)Appendix ERW:  This Appendix ERW to the DB Program. 

(b)Covered Employee:  An Active Member who:

(1)  Is an Eligible Employee of an Employer at the time his employment is terminated involuntarily pursuant to the Reorganization;

(2)     
(i)  For purposes of the 2007/2008 Restructuring, has his last day of active employment between the Effective Date and December 31, 2008 (inclusive) and has a Severance Date pursuant to paragraph (1) above that occurs on or after the Effective Date but no later than December 31, 2009; and

(ii)  For purposes of the 2008/2009 Restructuring, has his last day of active employment between the Effective Date and August 31, 2009 (inclusive) and has a Severance Date pursuant to paragraph (1) above that occurs on or after the Effective Date but no later than December 26, 2009;

 (3)  Is entitled to receive enhanced severance pay under the Severance Program as part of the Reorganization, or is entitled to receive severance pay pursuant to an agreement described in (5) below; 

(4)  Is authorized in writing by the Vice President to receive the benefits under this Appendix ERW; and 

(5)  Signs, submits and does not revoke a qualifying severance agreement releasing the Corporation and the Associated Companies and each of their employees, agents and affiliates from liability, subject to the Corporation’s determination that (i) such severance agreement meets all substance, form and timing requirements that the 

36

Corporation applies and (ii) such severance agreement is entered into under the Severance Program as part of the Reorganization.

Any Active Member who does not meet all of the foregoing requirements is not a “Covered Employee” and is not eligible for the benefits under this Appendix ERW.
  
(c)Reorganization:  The reorganization, plant closing, or other event that triggered the applicable Severance Program.

(d)Severance Date:  An Active Member’s final day of employment with the Employer pursuant to the Reorganization.

(e)Severance Program and Effective Date:  The Terms Severance Program and Effective Date are defined as follows, separately for each Severance Program:

(1)  2007/2008 Restructuring.  For purposes of the 2007/2008 Restructuring, Severance Program means both the “PepsiCo Transition Severance Program for the 2007 Restructuring for Salaried Employees Below Band 1” and the “PepsiCo Transition Severance Program for the Equipment & Service Management Restructuring for Salaried Employees below Band 1” and Effective Date means February 4, 2008 (that is, the first date an Active Member would be able to retire under this paragraph (1)).

(2)2008/2009 Restructuring.   For purposes of the 2008/2009 Restructuring, Severance Program means both the “PepsiCo Transition Severance Program for the 2008/2009 Restructuring for Salaried Employees Below Band I” and the “PepsiCo Transition Severance Program for the 2008/2009 Restructuring for Salaried Employees Band I” and Effective Date means April 3, 2009 (that is, the first date an Active Member would be able to retire under this paragraph (2)).

ERW.3      Special Early Retirement.  

Any Covered Employee who meets the eligibility requirements of subsection (a) below shall be treated as eligible for a Special Early Retirement Pension under Section 4.03.

(a)    Eligibility requirements:  To be eligible under this section, an individual must:

(1)  Be a Covered Employee on his Severance Date,

(2) For purposes of the 2007/2008 Restructuring only: 

(i)  have attained at least age 50 (but not age 55) by his Severance Date,  and

(ii)  be credited with at least 10 years of Vesting Service as of his Severance Date

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(3) For purposes of the 2008/2009 Restructuring only: 

(i)  have attained at least age 50 (but not age 55) by his “Pension Termination Date” (which means the earlier of the Covered Member’s Severance Date or the date that is 52 weeks after the Covered Member’s last day of active employment pursuant to the Reorganization);

(ii)  be credited with at least 10 years of Vesting Service as of his Severance Date.  For purposes of determining whether the Covered Member has met the age and service requirements, the Covered Member’s age and years of Vesting Service are rounded up to the nearest whole year, 

(iii)    not return to employment with an Employer before his Pension Termination Date, and

(iv)    not be otherwise eligible for Normal or Early Retirement Pension.

 (b)     Amount of Reduction:  In determining the amount of the Special Early Retirement Pension provided under this Appendix ERW, the 4/12ths of 1 percent per month early commencement reduction of Section 4.03 shall apply.  The Special Early Retirement Pension provided under this section is otherwise subject to all the usual limitations set forth in the DB Program.

(c)    Non-Duplication of Benefits:  For the avoidance of doubt, the Special Early Retirement Pension made available pursuant to this Appendix ERW shall be in lieu of the Special Early Retirement Pension pursuant to Rule 4.03 of the DB Program.  Covered Employees shall not be entitled to, and shall not receive, a Special Early Retirement Pension pursuant to Section 4.03 of the DB Program.  In addition, the Special Early Retirement Pension under this Appendix ERW shall not be available to any individual who is eligible for special early retirement under the PepsiCo Salaried Plan (or who claims such special early retirement, unless a release of such claim acceptable to the Corporations is provided).  By accepting benefits pursuant to this Appendix ERW, a Covered Employee is conclusively presumed to have waived irrevocably any and all right to a Special Early Retirement Pension under Section 4.03 or to special early retirement benefits under the PepsiCo Salaried Plan (or any other plan maintained or contributed to by the Corporation or an Associated Company).

(d)    LTIP Awards:  Any Covered Employee who is treated as eligible for an Early Retirement Pension pursuant to this Rule ERW shall also be deemed to qualify for “Retirement” for purposes of such Covered Employee’s outstanding stock option and restricted stock unit awards under the PepsiCo Inc. Long-Term Incentive Plan, the PepsiCo, Inc. 2003 Long-Term Incentive Plan, the PepsiCo, Inc. 1994 Long-Term Incentive Plan, the PepsiCo, Inc. 1995 Stock Option Incentive Plan and the PepsiCo SharePower Stock Option Plan.

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