Document:

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        EXHIBIT 10.4: FORM OF NON-STATUTORY STOCK OPTION AWARD AGREEMENT

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                                     FORM OF
                NON-STATUTORY STOCK OPTION AWARD AGREEMEN FOR THE
              FIRST SOUTH BANCORP, INC. 2008 EQUITY INCENTIVE PLAN

         This Award Agreement is provided to _______________ (the "Participant")
by First South Bancorp, Inc. (the "Company") as of _________ (the "Grant Date"),
the date the Compensation Committee of the Board of Directors (the "Committee")
granted the Participant the right and option to purchase Shares pursuant to the
First South Bancorp, Inc. 2008 Equity Incentive Plan (the "2008 Plan"), subject
to the terms and conditions of the 2008 Plan and this Award Agreement:

         1.     OPTION GRANT:                   You have been granted a
                                                NON-STATUTORY STOCK OPTION
                                                (referred to in this Agreement
                                                as your "Option"). Your Option
                                                is NOT intended to qualify as an
                                                "incentive stock option" under
                                                Section 422 of the Internal
                                                Revenue Code of 1986, as
                                                amended.
         2.     NUMBER OF SHARES
                SUBJECT TO YOUR OPTION:         ________ shares of Common Stock
                                                ("Shares"), subject to
                                                adjustment as may be necessary
                                                pursuant to Article 10 of the
                                                2008 Plan.

         3.     GRANT DATE:                     ________

         4.     EXERCISE PRICE:                 You may purchase Shares covered
                                                by your Option at a price of
                                                $______ per share.

         Unless sooner vested in accordance with Section 2 of the Terms and
Conditions (attached hereto) or otherwise in the discretion of the Committee,
the Options shall vest (become exercisable) in accordance with the following
schedule:

Continuous Status
as a Participant    Percentage of Option     Number of Shares
after Grant Date        Vested             Available for Exercise   Vesting Date

                                                   ------              ------
                                                   ------              ------
                                                   ------              ------
                                                   ------              ------
                                                   ------              ------
                                                   ------              ------

         IN WITNESS WHEREOF, First South Bancorp, Inc., acting by and through
the Committee, has caused this Award Agreement to be executed as of the Grant
Date set forth above.

                                      FIRST SOUTH BANCORP, INC.

                                      By:
                                         ---------------------------------------
                                         On behalf of the Compensation Committee
ACCEPTED BY PARTICIPANT:

--------------------------
[Name]

--------------------------
Date

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TERMS AND CONDITIONS

1.       GRANT OF OPTION. The Grant Date, Exercise Price and number of Shares
         subject to your Option are stated on page 1 of this Award Agreement.
         Capitalized terms used herein and not otherwise defined shall have the
         meanings assigned to such terms in the 2008 Plan.

2.       VESTING OF OPTIONS. The Option shall vest (become exercisable) in
         accordance with the vesting schedule shown on page 1 of this Award
         Agreement. Notwithstanding the vesting schedule on page 1, the Option
         will also vest and become exercisable:

         (a)      Upon your death or Disability during your Continuous Status as
                  a Participant; or

         (b)      Upon a Change in Control (as defined in the 2008 Plan).

3.       TERM OF OPTIONS AND LIMITATIONS ON RIGHT TO EXERCISE. The term of the
         Option will be for a period of ten (10) years, expiring at 5:00 p.m.,
         Eastern Time, on the tenth anniversary of the Grant Date (the
         "Expiration Date"). To the extent not previously exercised, the vested
         portion of your Option will lapse prior to the Expiration Date upon the
         earliest to occur of the following circumstances:

         (a)      Three (3) months after the termination of your Continuous
                  Status as a Participant for any reason other than your death
                  or Disability.

         (b)      Twelve (12) months after termination of your Continuous Status
                  as a Participant by reason of Disability.

         (c)      Twelve (12) months after the date of your death, if you die
                  while employed, or during the three-month period described in
                  subsection (a) above or during the twelve-month period
                  described in subsection (b) above and before the Option would
                  otherwise lapse. Upon your death, your beneficiary (designated
                  pursuant to the terms of the 2008 Plan) may exercise your
                  Option.

         (d)      At the end of the remaining original term of the Option if
                  your employment is involuntarily or constructively terminated
                  within twelve (12) months of a Change in Control.

         The Committee may, prior to the lapse of your Option under the
         circumstances described in paragraphs (a), (b), (c) or (d) above,
         extend the time to exercise your Option as determined by the Committee
         in writing and subject to federal regulations. If you return to
         employment with the Company during the designated post-termination
         exercise period, then you will be restored to the status as a
         Participant you held prior to such termination, but no vesting credit
         will be earned for any period you were not in Continuous Status as a
         Participant. If you or your beneficiary exercises an Option after your
         termination of service, the Option may be exercised only with respect
         to the Shares that were otherwise vested on the date of your
         termination of service.

4.       EXERCISE OF OPTION. You may exercise your Option by providing:

         (a)      a written notice of intent to exercise to [NAME] at the
                  address and in the form specified by the Committee from time
                  to time; and

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         (b)      payment to the Company in full for the Shares subject to the
                  exercise (unless the exercise is a cashless exercise). Payment
                  for the Shares can be made in cash, Company common stock
                  ("stock swap"), a combination of cash and Company common stock
                  or by means of a cashless exercise (if permitted by the
                  Committee).

5.       BENEFICIARY DESIGNATION. You may, in a manner determined by the
         Committee, designate a beneficiary to exercise your rights under the
         2008 Plan and to receive any distribution with respect to this Option
         upon your death. A beneficiary, legal guardian, legal representative,
         or other person claiming any rights under the 2008 Plan is subject to
         all terms and conditions of this Award Agreement and the 2008 Plan, and
         to any additional restrictions deemed necessary or appropriate by the
         Committee. If you have not designated a beneficiary or none survives
         you, the Option may be exercised by the legal representative of your
         estate, and payment shall be made to your estate. You may change or
         revoke a beneficiary designation at any time provided the change or
         revocation is filed with the Company.

6.       WITHHOLDING. The Company or any employer Affiliate has the authority
         and the right to deduct or withhold, or require you to remit to the
         Company, an amount sufficient to satisfy federal, state, and local (if
         any) withholding taxes and employment taxes (I.E., FICA and FUTA).
         OUTSIDE DIRECTORS OF THE COMPANY ARE SELF-EMPLOYED AND ARE NOT SUBJECT
         TO TAX WITHHOLDING.

7.       LIMITATION OF RIGHTS. This Option does not confer on you or your
         beneficiary designated pursuant to Paragraph 5 any rights as a
         shareholder of the Company unless and until the Shares are in fact
         issued in connection with the exercise of the Option. Nothing in this
         Award Agreement shall interfere with or limit in any way the right of
         the Company or any Affiliate to terminate your employment at any time,
         nor confer upon you any right to continue in the service of the Company
         or any Affiliate.

8.       RESTRICTIONS ON TRANSFER AND PLEDGE. You may not pledge, encumber, or
         hypothecate your right or interest in this Option to or in favor of any
         party other than the Company or an Affiliate, and this Option shall not
         be subject to any lien, obligation, or liability of the Participant to
         any other party other than the Company or an Affiliate. You may not
         assign or transfer this Option other than by will or the laws of
         descent and distribution or pursuant to a domestic relations order that
         would satisfy Section 414(p)(1)(A) of the Code if such Section applied
         to an Option under the 2008 Plan; provided, however, that the Committee
         may (but need not) permit other requested transfers. Only you or any
         permitted transferee may exercise this Option during your lifetime.

9.       PLAN CONTROLS. The terms contained in the 2008 Plan are incorporated
         into and made a part of this Award Agreement and this Award Agreement
         shall be governed by and construed in accordance with the 2008 Plan. In
         the event of any actual or alleged conflict between the provisions of
         the 2008 Plan and the provisions of this Award Agreement, the
         provisions of the 2008 Plan will control.

10.      SUCCESSORS. This Award Agreement shall be binding upon any successor of
         the Company, in accordance with the terms of this Award Agreement and
         the 2008 Plan.

11.      SEVERABILITY. If any one or more of the provisions contained in this
         Award Agreement is invalid, illegal or unenforceable, the other
         provisions of this Award Agreement will be construed and enforced as if
         the invalid, illegal or unenforceable provision had never been included
         in this Award Agreement.

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12.      NOTICE. Notices and communications under this Award Agreement must be
         in writing and either personally delivered or sent by registered or
         certified United States mail, return receipt requested, postage
         prepaid. Notices to the Company must be addressed to:

                           First South Bancorp, Inc.
                           1311 Carolina Avenue
                           Washington, North Carolina 27889
                           Attn:   Compensation Committee

         or any other address designated by the Company in a written notice to
         the Participant. Notices to you will be directed to your address, as
         then currently on file with the Company, or to any other address that
         you provide in a written notice to the Company.

13.      STOCK RESERVE. The Company shall at all times during the term of this
         Agreement reserve and keep available a sufficient number of Shares to
         satisfy the requirements of this Agreement.form8k053008ex10-15.htm

    ASSIGNMENT
AND ASSUMPTION AGREEMENT

    

    This Assignment and Assumption
Agreement (this “Agreement”) is made and entered into as of May 30, 2008, by and
between American Goldfields Inc., a Nevada corporation (the “Assignor”), and
Patriot Gold Corp., a Nevada corporation (the “Assignee”).

    

    WHEREAS, the Assignor is the Optionee
pursuant to the Property Option Agreement dated June 30, 2004 (the “Property
Agreement”’ capitalized terms used herein not otherwise defined shall have the
meanings ascribed to such terms in the Property Agreement) between MinQuest Inc.
(the “Optionor”) and the Assignor;

    

    WHEREAS, the Assignor wishes to assign
to the Assignee, and Assignee wishes to assume from Assignor, all of the rights
and obligations of the Assignor provided for in the Property Agreement, for such
consideration and on such terms as set out below;

    

    WHEREAS, pursuant to Section 7 of the
Property Agreement, such assignment shall be permitted in accordance with the
Property Agreement;

    

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

    

    1.           Purchase Price.
Simultaneous with the execution and delivery of this Agreement, the Assignee is
paying the Assignor the sum of US$250,000, which amount shall represent full
payment and satisfaction for the assignment by the Assignor to the Assignee of
the Property Agreement and all rights and obligations with respect
thereto.

    

    2.           Assignment of Property
Agreement.  The Assignor hereby assigns to the Assignee all of
its right, title and interest in, to and under the Property
Agreement.

    

    Included in said assignment shall be,
without limitation, all sums incurred by the Assignor in connection with the
Property, specifically (i) the refunding of the reclamation bond previously paid
by the Assignor to the Bureau of Land Management in Nevada in the amount of USD
$13,255.62, as indicated by Exhibit
A annexed hereto; (ii) the USD $276,944 of Expenditures incurred by the
Assignor prior to the date hereof; and (iii) the USD $120,000 paid to the
Optionor as property option payments. Annexed to this Agreement as Exhibit
B is be a list of all spending credits and Expenditures incurred by the
Assignor prior to the date hereof, certified by the chief financial officer of
the Assignor.

    

    3.           Assumption of
Obligations.  The Assignee hereby expressly assumes and agrees
to perform all duties and obligations of the Assignor arising under the Property
Agreement from and after the date hereof.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.           Representations of the
Assignor.

    

    The
Assignor hereby represents and warrants to the Assignee the
following:

    

    (a) The
Assignor is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada, with full power and authority to own,
lease, use and operate its properties and to carry on its business as and where
now owned, leased, used, operated and conducted.

     

    (b) The
Assignor has the absolute and unrestricted right, power, legal capacity and
authority to enter into and perform its obligations under this Agreement, to
carry out its obligations hereunder and to consummate the transactions
contemplated hereby. Assuming the due authorization, execution and delivery by
the Assignee, this Agreement, when executed and delivered by the Assignee, will
be a valid and binding obligation of the Assignor, enforceable against it in
accordance with its terms. This Agreement has been duly executed and delivered
by the Assignor.

     

    (c)           Neither
the execution and delivery of this Agreement, nor the consummation of the
transactions contemplated hereby, will conflict with, or (with or without notice
or lapse of time, or both) result in a termination, breach or violation of (i)
any instrument, contract or agreement to which the Assignor is a party or by it
is bound, or (ii) any federal, state, local or foreign law, ordinance, judgment,
decree, order, statute, or regulation, or that of any other governmental body or
authority, applicable to the Assignor or the Property.

    

    (d)           The
Assignor is the sole Optionee under the Property Agreement, and no other party
has any lien, charge, claim, option, preferential arrangement or restrictions of
any kind, on the Property or pursuant to the Property Agreement.  Upon the consummation
of the transactions contemplated hereby, the Assignee will have full title and
interest in the Property Agreement.

    

    (e)           The
transfer of the Property Agreement to the Assignee will not give rise to any
rights or claims by any third party, including without limitation, the
shareholders' of the Assignor.

    

    (f)           No
consents, permits or other approvals of any kind are necessary in order to
transfer the Property Agreement to the Assignee.

    

    (g)           Neither
the Assignor nor any of its affiliates is party to or threatened with, any
litigation, suit, action, investigation, proceeding or controversy before any
court, administrative agency or other governmental authority relating to or
affecting the Property Agreement, the Property or the Assignor.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (h)           The
amounts set forth in Exhibits A and B are true, correct and complete, and the
invoices and receipts attached to said exhibits accurately and truthfully set
forth the details of the amounts set forth therein.

    

    5.           Representations of the
Assignee.

    

    The
Assignee hereby represents and warrants to the Assignor the
following:

    

    (a)           The
Assignee is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada, with full power and authority to own,
lease, use and operate its properties and to carry on its business as and where
now owned, leased, used, operated and conducted.

     

    (b)           The
Assignee has the absolute and unrestricted right, power, legal capacity and
authority to enter into and perform its respective obligations under this
Agreement, to carry out its obligations hereunder and to consummate the
transactions contemplated hereby. This Agreement has been duly executed and
delivered by the Assignor.

     

    (c)           No
filing with, authorization from or consent or approval of any governmental body,
agency, official or authority or any other third party is necessary or required
to be made or obtained to enable the Assignee to enter into, and to perform its
obligations under, this Agreement.

     

    (d)           Assuming
the due authorization, execution and delivery by the Assignor, this Agreement,
when executed and delivered by the Assignee, will be a valid and binding
obligation of the Assignee, enforceable against it in accordance with its
terms.

     

    (e)           Neither
the execution and delivery of this Agreement, nor the consummation of the
transactions contemplated hereby, will conflict with, or (with or without notice
or lapse of time, or both) result in a termination, breach or violation of (i)
any instrument, contract or agreement to which the Assignee is a party or by
which it is bound, or (ii) any federal, state, local or foreign law, ordinance,
judgment, decree, order, statute, or regulation, or that of any other
governmental body or authority, applicable to the Assignee or its assets or
properties.

    

    (f)           As
of the date hereof, there are no liabilities, obligations, debts or payments
directly or indirectly owed to any third party, including without limitation,
the Optionor, by the Assignor as a result of, or related to, the Property or the
Property Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.           Indemnification.   The Assignor shall
indemnify and hold harmless Assignee and its officers, directors, shareholders,
employees, trustees, agents, beneficiaries, affiliates, representatives and
their successors and assigns from and against any and all damages, losses,
liabilities, taxes and costs and expenses (including, without limitation,
attorneys’ fees and costs) resulting directly or indirectly from (a) any
inaccuracy, misrepresentation, breach of warranty or nonfulfillment of any of
the representations and warranties of Assignor in this Agreement or in any
certificate or document delivered by the Assignor, pursuant to this
Agreement, or any actions, omissions or statements of fact inconsistent
with in any material respect any such representation or warranty, (b) any
failure by the Assignor to perform or comply with any agreement, covenant or
obligation in this Agreement or in any certificate or document delivered or to
be performed by or complied with pursuant to the terms of this Agreement, (c)
any claims made by a third party against the Assignee based upon an obligation,
act or omission of the Assignor prior to the date hereof, (d) taxes attributable
to the Assignor prior to the date hereof, (e) any claim made at any time by any
governmental body in respect of the business of the Assignor for all periods
prior to the date hereof, (f) any debt, claim, liability or obligation of the
Assignor prior to the date hereof, or (g) any litigation, action, claim,
proceeding or investigation by any third party relating to or arising out of the
business or operations of the Assignor prior to the date hereof.

    

    The Assignee shall indemnify and hold
harmless Assignor and its officers, directors, shareholders, employees,
trustees, agents, beneficiaries, affiliates, representatives and their
successors and assigns from and against any and all damages, losses,
liabilities, taxes and costs and expenses (including, without limitation,
attorneys’ fees and costs) resulting directly or indirectly from (a) any
inaccuracy, misrepresentation, breach of warranty or nonfulfillment of any of
the representations and warranties of Assignee in this Agreement or in any
certificate or document delivered by the Assignee, pursuant to this
Agreement, or any actions, omissions or statements of fact inconsistent
with in any material respect any such representation or warranty, (b) any
failure by the Assignee to perform or comply with any agreement, covenant or
obligation in this Agreement or in any certificate or document delivered or to
be performed by or complied with pursuant to the terms of this Agreement, (c)
any claims made by a third party against the Assignor based upon an obligation,
act or omission of the Assignee after to the date hereof, (d) taxes attributable
to the Assignee after the date hereof, (e) any claim made at any time by any
governmental body in respect of the business of the Assignee for all periods
after the date hereof, (f) any debt, claim, liability or obligation of the
Assignee prior to the date hereof, or (g) any litigation, action, claim,
proceeding or investigation by any third party relating to or arising out of the
business or operations of the Assignee after the date hereof.

     

    All representations, warranties,
covenants and agreements of the parties contained herein or in any other
certificate or document delivered pursuant hereto shall survive the date hereof
for three years from the date hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.           Power of
Attorney.  The Assignor hereby constitutes and appoints the
Assignee its true, lawful and irrevocable attorney to demand, receive and
enforce the performance of the terms of the Property Agreement or to otherwise
deal in respect of the Property Agreement, and to give receipts, releases and
satisfactions for the same, and this may be done either in the name of the
Assignor with the same force and effect as Parent could do if this Agreement had
not been made.

    

    8.           Miscellaneous.

    

    (a)           This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of Nevada.

    

    (b)           If
any covenant or agreement contained herein, or any part hereof, is held to be
invalid, illegal or unenforceable for any reason, such provision will be deemed
modified to the extent necessary to be valid, legal and enforceable and to give
effect of the intent of the parties hereto.

    

    (c)           This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof.  This Agreement supersedes all prior
agreements between the parties with respect to the subject matter hereof or
thereof.  There are no representations, warranties, covenants or
undertakings with respect to the subject matter hereof other than those
expressly set forth herein or in the other agreements referenced
herein.

    

    (d)           This
Agreement may not be amended or modified except by the express written consent
of the parties hereto.  Any waiver by the parties of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach thereof or of any other provision.

    

    (e)           This
Agreement shall be binding upon, inure to the benefit of, and be enforceable by
the parties hereto and their respective successors and permitted
assignees.

    

    (f)           The
parties hereto intend that this Agreement shall not benefit or create any right
or cause of action in or on behalf of any person other than the parties
hereto.

    

    (g)           The
parties agree that this Agreement shall be deemed to have been jointly and
equally drafted by them, and that the provisions of this Agreement therefore
shall not be construed against a party or parties on the ground that such party
or parties drafted or was more responsible for the drafting of any such
provision(s). The parties further agree that they have each carefully read the
terms and conditions of this Agreement, that they know and understand the
contents and effect of this Agreement and that the legal effect of this
Agreement has been fully explained to its satisfaction by counsel of its own
choosing.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (h)           The
parties hereto agree to execute and deliver such further documents and
instruments and to do such other acts and things any of them, as the case may
be, may reasonably request in order to effectuate the transactions contemplated
by this Agreement.

    

    (i)           This
Agreement may be executed in counterparts and by facsimile, each of which shall
be deemed an original and all of which together shall constitute one and the
same instrument.

    

    

    IN
WITNESS WHEREOF, each of the undersigned has caused this Agreement to be
executed by its duly authorized officer or representative as of the date first
above written.

    

    AMERICAN GOLDFIELDS INC.

    

    

    _/s/_Donald Neal_______

    Name:  Donald
Neal

    Title:  President and
CEO

    Address:  200-4170 Still
Creek Drive, Burnaby, B.C., Canada, V5C 6C6

    

    

    PATRIOT GOLD CORP.

    

    

    By: _/s/_Robert Coale___

    Name:  Robert
Coale

    Title:  President and
CEO

    Address:  501-1775 Bellevue
Ave., West Vancouver, B.C., Canada, V7V 1A9

    

    

    

    AGREED
AND ACKNOWLEDGED:

    

    

    _/s/_Richard
Kern___

    Richard
Kern

    MinQuest
Inc.

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    Reclamation
bond paid to the Bureau of Land Management in Nevada of USD
$13,255.62.

    

    Exhibit
B

    

    Spending
credits related to Work Programs as defined in the Property Agreement totaling
USD $276,944 have been incurred by the Assignor since acquiring the Imperial
Property.

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