Document:

EXHIBIT
10.1

    

    SECURITIES PURCHASE
AGREEMENT

     

    THIS SECURITIES PURCHASE AGREEMENT
(this “Agreement”), dated as of May 14, 2010, is entered into by and among Nevada Gold Holdings, Inc., a
Delaware corporation (the “Company”), and the Buyer(s) set forth on the
signature pages affixed hereto (individually, a “Buyer” or collectively
“Buyers”).

     

    WITNESSETH:

     

    WHEREAS, the Company and the
Buyer(s) are executing and delivering this Agreement in reliance upon an
exemption from securities registration pursuant to Section 4(2) and/or
Rule 506 of Regulation D (“Regulation D”) and/or Regulation S (“Regulation
S”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “Securities
Act”);

     

    WHEREAS, the parties desire
that, upon the terms and subject to the conditions contained herein, the Company
shall sell to the Buyers, as provided herein, and the Buyers shall purchase
Fifty Thousand Dollars ($50,000) (the “Purchase Price”) principal amount of
Secured Convertible Promissory Notes (the “Notes”), which, at the option of the
Holder and simultaneously upon the closing of any Financing (as defined in the
Notes), shall be convertible into shares of the Company’s common stock, par
value $0.001 (the “Common Stock”) at the conversion price set forth in the
Notes; and the total Purchase Price shall be allocated among the Buyer(s) in the
respective amounts set forth on the Buyer Counterpart Signature Page(s), affixed
hereto (the “Subscription Amount”);

     

    WHEREAS, all of the total
principal amount of the Notes, subject to the deduction of any and all fees and
expenses, shall be utilized by the Company working capital and other general
corporate purposes;

     

    WHEREAS, the Company has a
single subsidiary, Nevada Gold Enterprises, Inc., a Nevada corporation (“NGE”)
(the “Merger”);

     

    WHEREAS, the Company intends
to effect a 1-for-15 reverse stock split (the “Stock Split”) of its Common
Stock;

     

    WHEREAS, the unpaid principal
amount of the Notes shall be repaid in full (or converted) simultaneously with
the closing of the Financing (, the Financing and the Stock Split and the
transactions contemplated thereby are sometimes hereinafter referred to as the
“Transactions”);

     

    WHEREAS, the aggregate
proceeds of the sale of the Notes shall be held in escrow pending Closing (as
defined below) pursuant to the terms of an escrow agreement substantially in the
form of the Escrow Agreement among the Company, the Buyer(s) and the Escrow
Agent (as defined below) (the “Escrow Agreement”);

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.           PURCHASE AND SALE OF
NOTES.

     

    (a)           Purchase of
Notes.  Subject to the satisfaction (or waiver) of the terms
and conditions of this Agreement, each Buyer agrees, severally and not jointly,
to purchase at Closing (as defined herein below) and the Company agrees to sell
and issue to each Buyer, severally and not jointly, at Closing, Notes in amounts
set forth on the signature pages affixed hereto.  Upon execution of
this Agreement on the Buyer Counterpart Signature Page, attached hereto as Annex
A, and completion of the Accredited Investor Certification and, if applicable,
the Wire Transfer Authorization (each attached hereto) by a Buyer, the Buyer
shall wire transfer the Subscription Amount set forth on the signature pages
affixed hereto in same-day funds set forth immediately below, which Subscription
Amount shall be held in escrow pursuant to the terms of the Escrow Agreement and
disbursed in accordance therewith.

     

    Wire
Instructions

     

    
      
        
          
            
              
                
                  	
                          Bank:

                        	
                          Citibank,
      N.A.

                          330
      Madison Avenue, New York, New York

                        
	 	 
	
                          ABA
      Routing #:

                        	
                          021000089

                        
	 	 
	
                          Swift
      Code:

                        	
                          CITIUS33

                        
	 	 
	
                          Beneficiary:

                        	
                          Gottbetter
      & Partners, LLP, Attorney Trust

                        
	 	 
	
                          Account
      #:

                        	
                          9951660945

                        
	 	 
	
                          Reference:

                        	
                          “Nevada
      Gold Holdings, Inc. – [insert Subscriber’s name]”

                        
	 	 

                

              

            

          

        

      

    

    Gottbetter
& Partners Accounting Contact:

    Vincent
DiPaola; telephone: (212) 400-6900; e-mail: vdp@gottbetter.com.

     

    (b)           Closing
Date.  The initial closing of the purchase and sale of the
Notes (the “Closing”) shall take place at 10:00 a.m. Eastern Standard Time on or
before the fifth (5th)
business day following the receipt into escrow of acceptable subscriptions for
the Purchase Price, subject to notification of satisfaction of the conditions to
the Closing set forth herein and in Sections 7 and 8 below (or such later date
as is mutually agreed to by the Company and the Buyer(s)).  There may
be multiple Closings until such time as subscriptions for the Maximum are
accepted (the date of any such Closing is hereinafter referred to as a “Closing
Date”).  The Closing shall occur on the Closing Date at the offices of
Gottbetter & Partners, LLP, 488 Madison Avenue, New York, New York 10022 (or
such other place as is mutually agreed to by the Company and the
Buyer(s)).

     

    (c)           Escrow Arrangements; Form of
Payment.  Upon execution hereof by the Buyer and pending the
Closing, the Purchase Price shall be deposited in a non-interest bearing escrow
account with Citibank, N.A. on behalf of Gottbetter & Partners, LLP, as
escrow agent (the “Escrow Agent”), pursuant to the terms of the Escrow
Agreement.  Subject to the satisfaction of the terms and conditions of
this Agreement, on the Closing Date, (i) the Escrow Agent shall deliver to the
Company in accordance with the terms of the Escrow Agreement the Purchase Price
for the Notes to be issued and sold to the Buyer(s) on such Closing Date, and
(ii) the Company shall deliver to the Buyer(s), the Note, duly executed on
behalf of the Company.

     

    
      
         

      

      
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    2.           BUYER’S REPRESENTATIONS AND
WARRANTIES.

     

    Each
Buyer represents and warrants, severally and not jointly, as to such Buyer,
that:

     

    (a)           Investment
Purpose.  Each Buyer is acquiring the Notes (and upon
conversion of the Notes, if applicable, the Conversion Securities (as defined in
the Notes)), for its own account for investment only and not with a view
towards, or for resale in connection with, the public sale or distribution
thereof, except pursuant to sales registered or exempted under the Securities
Act; provided, however, that by making the representations herein, such Buyer
reserves the right to dispose of the Conversion Securities at any time in
accordance with or pursuant to an effective registration statement covering such
Conversion Securities, or an available exemption under the Securities
Act.  The Buyer agrees not to sell, hypothecate or otherwise transfer
the Buyer’s securities unless such securities are registered under the federal
and applicable state securities laws or unless, in the opinion of counsel
satisfactory to the Company, an exemption from such law is
available.

     

    (b)           Residence of
Buyer.  Each Buyer resides in the jurisdiction set forth on the
signature pages affixed hereto.

     

    (c)           Non-US
Person.  If a Buyer is not a person in the United States or a
U.S. Person (as defined in Rule 902(k) of Regulation S) or is not purchasing the
Notes on behalf of a person in the United States or a U.S. Person:

     

    (i)           neither
the Buyer nor any disclosed principal is a U.S. Person nor are they subscribing
for the Notes for the account of a U.S. Person or for resale in the United
States and the Buyer confirms that the Notes have not been offered to the Buyer
in the United States and that this Agreement has not been signed in the United
States;

     

    (ii)          the
Buyer acknowledges that the Notes have not been registered under the Securities
Act and may not be offered or sold in the United States or to a U.S. Person
unless the securities are registered under the U.S. Securities Act and all
applicable state securities laws or an exemption from such registration
requirements is available, and further agrees that hedging transactions
involving such securities may not be conducted unless in compliance with the
U.S. Securities Act;

     

    (iii)         the
Buyer and if applicable, the disclosed principal for whom the Buyer is acting,
understands that the Company is the seller of the Notes and underlying
securities and that, for purposes of Regulation S, a “distributor” is any
underwriter, dealer or other person who participates pursuant to a contractual
arrangement in the distribution of securities sold in reliance on Regulation S
and that an “affiliate” is any partner, officer, director or any person directly
or indirectly controlling, controlled by or under common control with any person
in question. Except as otherwise permitted by Regulation S, the Buyer and if
applicable, the disclosed principal for whom the Buyer is acting, agrees that it
will not, during a one year distribution compliance period, act as a
distributor, either directly or through any affiliate, or sell, transfer,
hypothecate or otherwise convey the Notes or underlying securities other than to
a non-U.S. Person;

     

    
      
         

      

      
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    (iv)         the
Buyer and if applicable, the disclosed principal for whom the Buyer is acting,
acknowledges and understands that in the event the Notes are offered, sold or
otherwise transferred by the Buyer or if applicable, the disclosed principal for
whom the Buyer is acting, to a non-U.S Person prior to the expiration of a one
year distribution compliance period, the purchaser or transferee must agree not
to resell such securities except in accordance with the provisions of Regulation
S, pursuant to registration under the Securities Act, or pursuant to an
available exemption from registration; and must further agree not to engage in
hedging transactions with regard to such securities unless in compliance with
the Securities Act; and

     

    (v)          neither
the Buyer nor any disclosed principal will offer, sell or otherwise dispose of
the Notes or the underlying securities in the United States or to a U.S. Person
unless (A) the Company has consented to such offer, sale or disposition and such
offer, sale or disposition is made in accordance with an exemption from the
registration requirements under the Securities Act and the securities laws of
all applicable states of the United States or (B) the SEC has declared effective
a registration statement in respect of such securities.

     

    (d)           Accredited Investor
Status.  The Buyer meets the requirements of at least one of
the suitability standards for an “Accredited Investor”
as that term is defined in Rule 501(a)(3) of Regulation D, and as set forth on
the Accredited Investor Certification attached hereto.

     

    (e)           Accredited Investor
Qualifications.  The Buyer (i) if a natural person, represents
that the Buyer has reached the age of 21 and has full power and authority to
execute and deliver this Agreement and all other related agreements or
certificates and to carry out the provisions hereof and thereof; (ii) if a
corporation, partnership, or limited liability company or partnership, or
association, joint stock company, trust, unincorporated organization or other
entity, represents that such entity was not formed for the specific purpose of
acquiring the Notes, such entity is duly organized, validly existing and in good
standing under the laws of the state of its organization, the consummation of
the transactions contemplated hereby is authorized by, and will not result in a
violation of state law or its charter or other organizational documents, such
entity has full power and authority to execute and deliver this Agreement and
all other related agreements or certificates and to carry out the provisions
hereof and thereof and to purchase and hold the Notes, the execution and
delivery of this Agreement has been duly authorized by all necessary action,
this Agreement has been duly executed and delivered on behalf of such entity and
is a legal, valid and binding obligation of such entity; or (iii) if executing
this Agreement in a representative or fiduciary capacity, represents that it has
full power and authority to execute and deliver this Agreement in such capacity
and on behalf of the subscribing individual, ward, partnership, trust, estate,
corporation, or limited liability company or partnership, or other entity for
whom the Buyer is executing this Agreement, and such individual, partnership,
ward, trust, estate, corporation, or limited liability company or partnership,
or other entity has full right and power to perform pursuant to this Agreement
and make an investment in the Company, and represents that this Agreement
constitutes a legal, valid and binding obligation of such entity.  The
execution and delivery of this Agreement will not violate or be in conflict with
any order, judgment, injunction, agreement or controlling document to which the
Buyer is a party or by which it is bound;

     

    
      
         

      

      
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    (f)           Solicitation.  The
Buyer is unaware of, is in no way relying on, and did not become aware of the
offering of the Notes through or as a result of, any form of general
solicitation or general advertising including, without limitation, any article,
notice, advertisement or other communication published in any newspaper,
magazine or similar media or broadcast over television or radio, in connection
with the offering and sale of the Notes and is not subscribing for the Notes and
did not become aware of the offering of the Notes through or as a result of any
seminar or meeting to which the Buyer was invited by, or any solicitation of a
subscription by, a person not previously known to the Buyer in connection with
investments in securities generally;

     

    (g)           Brokerage
Fees.  The Buyer has taken no action that would give rise to
any claim by any person for brokerage commissions, finders’ fees or the like
relating to this Agreement or the transaction contemplated hereby;

     

    (h)           Buyer’s
Advisors.  The Buyer and the Buyer’s attorney, accountant,
purchaser representative and/or tax advisor, if any (collectively, the
“Advisors”), as the case may be, has such knowledge and experience in financial,
tax, and business matters, and, in particular, investments in securities, so as
to enable it to utilize the information made available to it in connection with
the Notes to evaluate the merits and risks of an investment in the Notes and the
Company and to make an informed investment decision with respect
thereto.

     

    (i)      
     Buyer
Liquidity.  Each Buyer has adequate means of providing for such
Buyer’s current financial needs and foreseeable contingencies and has no need
for liquidity of its investment in the Notes for an indefinite period of
time.

     

    (j)     
      High Risk Investment; Review
of Risk Factors.  The Buyer is aware that an investment in the
Notes (and upon conversion of the Notes, the Conversion Securities), involves a
number of very significant risks, and in particular, acknowledges that the
Company’s ability to repay the Notes is based on the consummation of the
Transactions.

     

    (k)           Reliance on
Exemptions.  Each Buyer understands that the Notes are being
offered and sold to it in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and that the
Company is relying in part upon the truth and accuracy of, and such Buyer’s
compliance with, the representations, warranties, agreements, acknowledgments
and understandings of such Buyer set forth herein in order to determine the
availability of such exemptions and the eligibility of such Buyer to acquire
such securities.

     

    
      
         

      

      
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    (l)      
     Information.  Each
Buyer and its Advisors have been furnished with all written materials relating
to the business, finances and operations of the Company and information it
deemed material to making an informed investment decision regarding its purchase
of the Notes, which have been requested by such Buyer (the “Buyer
Materials”).  Each Buyer and its Advisors have been afforded the
opportunity to review the Buyer Materials, as well as the Company’s SEC Filings,
as such term is defined below (hard copies of which were made available to the
Buyer upon request to the Company or were otherwise accessible to the Buyer via
the SEC’s EDGAR system), and the information contained therein.  Each
Buyer and its Advisors have been afforded the opportunity to ask questions of
the Company and its management.  Neither such inquiries nor any other
due diligence investigations conducted by such Buyer or its Advisors shall
modify, amend or affect such Buyer’s right to rely on the Company’s
representations and warranties contained in Section 3 below.  Each
Buyer has sought such accounting, legal and tax advice as it has considered
necessary to make an informed investment decision with respect to its
acquisition of the Notes.

     

    (m)          No Other Representations or
Information.  In evaluating the suitability of an investment in
the Notes, the Buyer has not relied upon any representation or information (oral
or written) other than as stated in the Buyer Materials or in this
Agreement.  No oral or written representations have been made, or oral
or written information furnished, to the Buyer or its Advisors, if any, in
connection with the offering of the Notes which are in any way inconsistent with
the information contained in the Buyer Materials;

     

    (n)           No Governmental
Review.  Each Buyer understands that no United States federal
or state agency or any other government or governmental agency has passed on or
made any recommendation or endorsement of the Notes (or the Conversion
Securities), or the fairness or suitability of the investment in the Notes (or
the Conversion Securities), nor have such authorities passed upon or endorsed
the merits of the offering of the Notes (or the Conversion
Securities).

     

    (o)           Transfer or
Resale.  Each Buyer understands that: (i) the Notes have not
been and are not being registered under the Securities Act or any state
securities laws, and may not be offered for sale, sold, assigned or transferred
unless (A) subsequently registered thereunder, or (B) such Buyer shall have
delivered to the Company an opinion of counsel, in a generally acceptable form,
to the effect that such securities to be sold, assigned or transferred may be
sold, assigned or transferred pursuant to an exemption from such registration
requirements; (ii) any sale of such securities made in reliance on Rule 144
under the Securities Act (or a successor rule thereto) (“Rule 144”) may
be made only in accordance with the terms of Rule 144 and further, if Rule 144
is not applicable, any resale of such securities under circumstances in which
the seller (or the person through whom the sale is made) may be deemed to
be an underwriter (as that term is defined in the Securities Act) may require
compliance with some other exemption under the Securities Act or the rules and
regulations of the SEC thereunder; and (iii) except as otherwise set forth in
this Agreement, neither the Company nor any other person is under any obligation
to register such securities under the Securities Act or any state securities
laws or to comply with the terms and conditions of any exemption
thereunder.  The Company reserves the right to place stop transfer
instructions against the shares and certificates for the Conversion Securities
to the extent specifically set forth under this Agreement.  There can
be no assurance that there will be any market or resale for the Notes (or the
Conversion Securities), nor can there be any assurance that the Notes (or the
Conversion Securities) will be freely transferable at any time in the
foreseeable future.

     

    (p)           Legends.  Each
Buyer understands that the certificates or other instruments representing the
Notes (and the Conversion Securities) shall bear a restrictive legend in
substantially the following form (and a stop transfer order may be placed
against transfer of such stock certificates):

     

    
      
         

      

      
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    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES MAY
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B)
OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF
AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION THAT DOES NOT
REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN
OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY
SATISFACTORY TO THE COMPANY. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

     

    The
legend set forth above shall be removed and the Company within three (3)
business days shall issue a certificate without such legend to the holder of the
Notes (and the Conversion Securities) upon which it is stamped, if, unless
otherwise required by state securities laws, (i) the Buyer or its broker make
the necessary representations and warranties to the transfer agent for the
Common Stock that it has complied with the prospectus delivery requirements in
connection with a sale transaction, provided the Note (and the Conversion
Securities) are registered under the Securities Act or (ii) in connection with a
sale transaction, after such holder provides the Company with an opinion of
counsel satisfactory to the Company, which opinion shall be in form, substance
and scope customary for opinions of counsel in comparable transactions, to the
effect that a public sale, assignment or transfer of the Notes (or the
Conversion Securities) may be made without registration under the Securities
Act.

     

    (q)           Authorization,
Enforcement.  This Agreement has been duly and validly
authorized, executed and delivered on behalf of such Buyer and is a valid and
binding agreement of such Buyer enforceable in accordance with its terms, except
as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of
applicable creditors’ rights and remedies.

     

    (r)           Receipt of
Documents.  Each Buyer and its counsel have received and read
in their entirety:  (i) this Agreement and each representation,
warranty and covenant set forth herein; and (ii) all due diligence and other
information necessary to verify the accuracy and completeness of such
representations, warranties and covenants; each Buyer has received answers to
all questions such Buyer submitted to the Company regarding an investment in the
Company; and each Buyer has relied on the information contained therein and has
not been furnished any other documents, literature, memorandum or
prospectus.

     

    
      
         

      

      
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    (s)           Trading
Activities.  The Buyer’s trading activities with respect to the
Company’s Common Stock shall be in compliance with all applicable federal and
state securities laws, rules and regulations and the rules and regulations of
the principal market on which the Company’s Common Stock is listed or
traded.  Neither the Buyer nor its affiliates has an open short
position in the Common Stock of the Company and, except as set forth below, the
Buyer shall not, and shall not cause any of its affiliates under common control
with the Buyer, to engage in any short sale as defined in any applicable SEC or
Financial Industry Regulatory Authority (FINRA) rules on any hedging
transactions with respect to the Common Stock until the earlier to occur of (i)
the third anniversary of the Closing Date and (ii) the Buyer(s) no longer own a
principal balance of the Notes.  Without limiting the foregoing, the
Buyer agrees not to engage in any naked short transactions in excess of the
amount of shares owned (or an offsetting long position) by the
Buyer.

     

    (t)           Regulation
FD.  Each Buyer acknowledges and agrees that all of the
information received by it in connection with the transactions contemplated by
this Agreement is of a confidential nature and may be regarded as material
non-public information under Regulation FD promulgated by the SEC and that such
information has been furnished to the Buyer for the sole purpose of enabling the
Buyer to consider and evaluate an investment in the Notes. The Buyer agrees that
it will treat such information in a confidential manner, will not use such
information for any purpose other than evaluating an investment in the Notes,
will not, directly or indirectly, trade or permit the Buyer’s agents,
representatives or affiliates to trade in any securities of the Company while in
possession of such information and will not, directly or indirectly, disclose or
permit the Buyer’s agents, representatives or affiliates to disclose any of such
information without the Company’s prior written consent. The Buyer shall make
its agents, affiliates and representatives aware of the confidential nature of
the information contained herein and the terms of this section including the
Buyer’s agreement to not disclose such information, to not trade in the
Company’s securities while in the possession of such information and to be
responsible for any disclosure or other improper use of such information by such
agents, affiliates or representatives. Likewise, without the Company’s prior
written consent, the Buyer will not, directly or indirectly, make any
statements, public announcements or other release or provision of information in
any form to any trade publication, to the press or to any other person or entity
whose primary business is or includes the publication or dissemination of
information related to the transactions contemplated by this
Agreement.

     

    (u)           No Legal Advice from the
Company.  Each Buyer acknowledges that it had the opportunity
to review this Agreement and the transactions contemplated by this Agreement
with its own legal counsel and investment and tax advisors.  Each
Buyer is relying solely on such Advisors and not on any statements or
representations of the Company or any of its representatives or agents for
legal, tax or investment advice with respect to this investment, the
transactions contemplated by this Agreement or the securities laws of any
jurisdiction.

     

    (v)           No Group
Participation.  Each Buyer and its affiliates are not a member
of any group, nor is any Buyer acting in concert with any other person,
including any other Buyer, with respect to its acquisition of the Notes (or the
Conversion Securities).

     

    
      
         

      

      
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    (w)          Reliance.  Any
information which the Buyer has heretofore furnished or is furnishing herewith
to the Company is complete and accurate and may be relied upon by the Company in
determining the availability of an exemption from registration under federal and
state securities laws in connection with the offering of securities as described
in the Transmittal Letter.  The Buyer further represents and warrants
that it will notify and supply corrective information to the Company immediately
upon the occurrence of any change therein occurring prior to the Company’s
issuance of the Notes. Within five (5) days after receipt of a request from the
Company, the Buyer will provide such information and deliver such documents as
may reasonably be necessary to comply with any and all laws and ordinances to
which the Company is subject.

     

    (x)           (For
ERISA plans only).  The fiduciary of
the ERISA plan represents that such fiduciary has been informed of and
understands the Company’s investment objectives, policies and strategies, and
that the decision to invest “plan assets” (as such term is defined in ERISA) in
the Company is consistent with the provisions of ERISA that require
diversification of plan assets and impose other fiduciary
responsibilities.  The Buyer fiduciary or Plan (a) is responsible for
the decision to invest in the Company; (b) is independent of the Company or any
of its affiliates; (c) is qualified to make such investment decision; and (d) in
making such decision, the Buyer fiduciary or Plan has not relied primarily on
any advice or recommendation of the Company or any of its
affiliates;

     

    (y)           (The
Buyer should check the Office of Foreign Assets Control (“OFAC”) website at
<http://www.treas.gov/ofac> before making the following
representations.) The Buyer represents that the amounts invested by it in
the Company in the Notes were not and are not directly or indirectly derived
from activities that contravene federal, state or international laws and
regulations, including anti-money laundering laws and regulations. Federal
regulations and Executive Orders administered by OFAC prohibit, among other
things, the engagement in transactions with, and the provision of services to,
certain foreign countries, territories, entities and individuals.  The
lists of OFAC prohibited countries, territories, persons and entities can be
found on the OFAC website at <http://www.treas.gov/ofac>.  In
addition, the programs administered by OFAC (the “OFAC Programs”) prohibit
dealing with individuals1 or entities in certain
countries regardless of whether such individuals or entities appear on the OFAC
lists;

     

    (z)           To
the best of the Buyer’s knowledge, none of: (1) the Buyer; (2) any person
controlling or controlled by the Buyer; (3) if the Buyer is a privately-held
entity, any person having a beneficial interest in the Buyer; or (4) any person
for whom the Buyer is acting as agent or nominee in connection with this
investment is a country, territory, individual or entity named on an OFAC list,
or a person or entity prohibited under the OFAC Programs.  Please be
advised that the Company may not accept any amounts from a prospective investor
if such prospective investor cannot make the representation set forth in the
preceding paragraph.  The Buyer agrees to promptly notify the Company
should the Buyer become aware of any change in the information set forth in
these representations.  The Buyer understands and acknowledges that,
by law, the Company may be obligated to “freeze the account” of the Buyer,
either by prohibiting additional subscriptions from the Buyer, declining any
redemption requests and/or segregating the assets in the account in compliance
with governmental regulations.  The Buyer further acknowledges that
the Company may, by written notice to the Buyer, suspend the redemption rights,
if any, of the Buyer if the Company reasonably deems it necessary to do so to
comply with anti-money laundering regulations applicable to the Company or any
of the Company’s other service providers.  These individuals include
specially designated nationals, specially designated narcotics traffickers and
other parties subject to OFAC sanctions and embargo programs;

     

    
      
        

      

    

    
      1 These individuals include
specially designated nationals, specially designated narcotics traffickers and
other parties subject to OFAC sanctions and embargo
programs.

    

    
      
         

      

      
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    (aa)         To
the best of the Buyer’s knowledge, none of: (1) the Buyer; (2) any person
controlling or controlled by the Buyer; (3) if the Buyer is a privately-held
entity, any person having a beneficial interest in the Buyer; or (4) any person
for whom the Buyer is acting as agent or nominee in connection with this
investment is a senior foreign political figure2, or
any immediate family3
member or
close associate4 of a
senior foreign political figure, as such terms are defined in the footnotes
below; and

     

    (bb)         If
the Buyer is affiliated with a non-U.S. banking institution (a “Foreign Bank”),
or if the Buyer receives deposits from, makes payments on behalf of, or handles
other financial transactions related to a Foreign Bank, the Buyer represents and
warrants to the Company that: (1) the Foreign Bank has a fixed address, other
than solely an electronic address, in a country in which the Foreign Bank is
authorized to conduct banking activities; (2) the Foreign Bank maintains
operating records related to its banking activities; (3) the Foreign Bank is
subject to inspection by the banking authority that licensed the Foreign Bank to
conduct banking activities; and (4) the Foreign Bank does not provide banking
services to any other Foreign Bank that does not have a physical presence in any
country and that is not a regulated affiliate.

     

    3.           REPRESENTATIONS AND
WARRANTIES OF THE COMPANY.

     

    The
Company represents and warrants to each of the Buyers that:

     

    (a)           Organization and
Qualification.  The Company is a corporation duly organized and
validly existing in good standing under the laws of the State of Nevada, and has
the requisite corporate power to own its properties and to carry on its business
as now being conducted.  The Company is duly qualified as a foreign
corporation to do business and is in good standing in every jurisdiction in
which the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in
good standing would not have a Material Adverse Effect, as defined
below.  The Company has no subsidiaries.

     

    
      
        

      

    

    
      2 A “senior foreign
political figure” is defined as a senior official in the executive, legislative,
administrative, military or judicial branches of a foreign government (whether
elected or not), a senior official of a major foreign political party, or a
senior executive of a foreign government-owned corporation. In addition, a
“senior foreign political figure” includes any corporation, business or other
entity that has been formed by, or for the benefit of, a senior foreign
political figure.

    

      
      3 “Immediate family” of a
senior foreign political figure typically includes the figure’s parents,
siblings, spouse, children and in-laws.

    

      
      4 A “close associate” of a senior foreign
political figure is a person who is widely and publicly known to maintain an
unusually close relationship with the senior foreign political figure, and
includes a person who is in a position to conduct substantial domestic and
international financial transactions on behalf of the senior foreign political
figure.

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (b)           Authorization, Enforcement,
Compliance with Other Instruments.  (i) The Company has
the requisite corporate power and authority to enter into and perform this
Agreement and the Escrow Agreement and all other documents necessary or
desirable to effect the transactions contemplated hereby (collectively the
“Transaction Documents”) and to issue the Notes (and Conversion Securities) in
accordance with the terms hereof and thereof, (ii) the execution and delivery of
the Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby, including, without limitation, the
issuance of the Notes (and the Conversion Securities) and the reservation for
issuance of the Conversion Securities, have been duly authorized by the
Company’s Board of Directors and no further consent or authorization is required
by the Company, its Board of Directors or its stockholders, (iii) the
Transaction Documents will be duly executed and delivered by the Company, (iv)
the Transaction Documents when executed will constitute the valid and binding
obligations of the Company enforceable against the Company in accordance with
their terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement
of creditors’ rights and remedies.

     

    (c)           Capitalization.  The
authorized capital stock of the Company, before giving effect to the Stock
Split, consists of 300,000,000 shares of Common Stock and 10,000,000 shares of
Preferred Stock.  As of the date hereof, the Company has [76,430,476]
shares of Common Stock issued and outstanding and no shares of preferred stock
outstanding.  All of such outstanding shares have been duly
authorized, validly issued and are fully paid and nonassessable.  No
shares of Common Stock are subject to preemptive rights or any other similar
rights or any liens or encumbrances suffered or permitted by the
Company.  As of the date of this Agreement, (i) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company, or contracts,
commitments, understandings or arrangements by which the Company is or may
become bound to issue additional shares of capital stock of the Company or
options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company, (ii) there are no outstanding debt
securities and (iii) there are no agreements or arrangements under which the
Company is obligated to register the sale of any of its securities under the
Securities Act (except in connection with the Transactions), and (iv) there are
no outstanding registration statements and there are no outstanding comment
letters from the SEC or any other regulatory agency.  There are no
securities or instruments containing anti-dilution or similar provisions that
will be triggered by the issuance of the Notes as described in this
Agreement.  The Notes (and the Conversion Securities) when issued,
will be free and clear of all pledges, liens, encumbrances and other
restrictions (other than those arising under federal or state securities laws as
a result of the issuance of the Notes).  No co-sale right, right of
first refusal or other similar right exists with respect to the Notes (or the
Conversion Securities) or the issuance and sale thereof.  The issue
and sale of the Notes (and the Conversion Securities) will not result in a right
of any holder of Company securities to adjust the exercise, exchange or reset
price under such securities.  The Company has made available to the
Buyer true and correct copies of the Company’s Amended and Restated Articles of
Incorporation, and as in effect on the date hereof (the “Articles of
Incorporation”), and the Company’s By-laws, as in effect on the date hereof (the
“By-laws”), and the terms of all securities exercisable for Common Stock and the
material rights of the holders thereof in respect thereto other than stock
options issued to employees and consultants.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (d)           Issuance of
Securities.  The Notes are duly authorized and, upon issuance
in accordance with the terms hereof, shall be duly issued, fully paid and
nonassessable, are free from all taxes, liens and charges with respect to the
issue thereof.  Upon conversion or exercise in accordance with the
Transaction Documents, the Conversion Securities will be duly issued, fully paid
and nonassessable.

     

    (e)           No
Conflicts.  The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby will not (i) result in a violation of the
Articles of Incorporation, any certificate of designations of any outstanding
series of preferred stock of the Company or the By-laws or (ii) violate or
conflict with, or result in a breach of any provision of,  or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Company is a party, or result in a violation of any law,
rule, regulation, order, judgment or decree (including federal and state
securities laws and regulations and the rules and regulations of the OTC
Bulletin Board (the “OTCBB”) on which the Common Stock is quoted) applicable to
the Company or by which any property or asset of the Company is bound or
affected except for those which could not reasonably be expected to have a
material adverse effect on the assets, business, condition (financial or
otherwise), results of operations or future prospects of the Company (a
“Material Adverse Effect”).  The Company is not in violation of any
term of or in default under its Articles of Incorporation or
By-laws.  Except those which could not reasonably be expected to have
a Material Adverse Effect, the Company is not in violation of any term of or in
default under any material contract, agreement, mortgage, indebtedness,
indenture, instrument, judgment, decree or order or any statute, rule or
regulation applicable to the Company.  The business of the Company is
not being conducted, and shall not be conducted in violation of any material
law, ordinance, or regulation of any governmental entity.  Except as
specifically contemplated by this Agreement and as required under the Securities
Act and any applicable state securities laws, the Company is not required to
obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under or contemplated by this
Agreement or the Escrow Agreement in accordance with the terms hereof or
thereof.  All consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date
hereof.  The Company is unaware of any facts or circumstance, which
might give rise to any of the foregoing.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (f)           SEC Filings; Financial
Statements.  The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Exchange Act (as hereinafter
defined) (all of the foregoing and all other documents filed with the SEC prior
to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents incorporated by reference therein, being
hereinafter referred to herein as the “SEC Filings”).  The SEC Filings
are available to the Buyers via the SEC’s EDGAR system.  As of their
respective dates, the SEC Filings complied in all material respects with the
requirements of the Exchange Act and the rules and regulations of the SEC
promulgated thereunder, and none of the SEC Filings, at the time they were filed
with the SEC, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were
made, not misleading. As of their respective dates, the financial statements of
the Company included in the Company’s SEC Filings with the SEC (the “Financial
Statements”) for the years ended December 31, 2007 and December 31, 2006 and any
subsequent interim period complied as to form in all material respects with
applicable accounting requirements and the published rules and regulations of
the SEC with respect thereto.  Such financial statements have been
prepared in accordance with generally accepted accounting principles,
consistently applied, during the periods involved (except (i) as may be
otherwise indicated in such Financial Statements or the notes thereto, or (ii)
in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements), and fairly present in all
material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments).  No other information provided by or on behalf of the
Company to the Buyer including, without limitation, information referred to in
this Agreement, contains any untrue statement of a material fact or omits to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not
misleading.

     

    (g)           Absence of
Litigation.  There is no action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency,
self-regulatory organization or body pending against or affecting the Company or
the Common Stock, wherein an unfavorable decision, ruling or finding would (i)
adversely affect the validity or enforceability of, or the authority or ability
of the Company to perform its obligations under, this Agreement or any of the
documents contemplated herein, or (ii) have a Material Adverse
Effect.

     

    (h)           Acknowledgment Regarding
Buyer’s Purchase of the Notes.  The Company acknowledges and
agrees that each Buyer is acting solely in the capacity of an arm’s length
purchaser with respect to this Agreement and the transactions contemplated
hereby.  The Company further acknowledges that each Buyer is not
acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated
hereby and any advice given by such Buyer or any of their respective
representatives or agents in connection with this Agreement and the transactions
contemplated hereby is merely incidental to such Buyer’s purchase of the Notes
(and the Conversion Securities).  The Company further represents to
the Buyers that the Company’s decision to enter into this Agreement has been
based solely on the independent evaluation by the Company and its
representatives.

     

    (i)           No General
Solicitation.  Neither the Company, nor any of its affiliates,
nor any person acting on its or their behalf, has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D) in
connection with the offer or sale of the Notes or the Conversion
Securities.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (j)        
   No
Integrated Offering.  Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would require registration of the
Notes or the Conversion Securities under the Securities Act or cause this
offering of the Notes or the Conversion Securities to be integrated with prior
offerings by the Company for purposes of the Securities Act.

     

    (k)           Employee
Relations.  The Company is not involved in any labor dispute
nor, to the knowledge of the Company, is any such dispute
threatened.  None of the Company’s employees is a member of a union,
and the Company believes that its relations with its one employee is
good.

     

    (l)           Intellectual Property
Rights.  The Company has no proprietary intellectual
property.  The Company has not received any notice of infringement of,
or conflict with, the asserted rights of others with respect to any intellectual
property that it utilizes.

     

    (m)          Environmental
Laws.

     

    (i)           The
Company has complied with all applicable Environmental Laws (as defined below),
except for violations of Environmental Laws that, individually or in the
aggregate, have not had and would not reasonably be expected to have a Material
Adverse Effect.  There is no pending or, to the knowledge of the
Company, threatened civil or criminal litigation, written notice of violation,
formal administrative proceeding, or investigation, inquiry or information
request, relating to any Environmental Law involving the Company, except for
litigation, notices of violations, formal administrative proceedings or
investigations, inquiries or information requests that, individually or in the
aggregate, have not had and would not reasonably be expected to have a Material
Adverse Effect.  For purposes of this Agreement, “Environmental Law”
means any federal, state or local law, statute, rule or regulation or the common
law relating to the environment or occupational health and safety, including
without limitation any statute, regulation, administrative decision or order
pertaining to (i) treatment, storage, disposal, generation and transportation of
industrial, toxic or hazardous materials or substances or solid or hazardous
waste; (ii) air, water and noise pollution; (iii) groundwater and soil
contamination; (iv) the release or threatened release into the environment of
industrial, toxic or hazardous materials or substances, or solid or hazardous
waste, including without limitation emissions, discharges, injections, spills,
escapes or dumping of pollutants, contaminants or chemicals; (v) the protection
of wild life, marine life and wetlands, including without limitation all
endangered and threatened species; (vi) storage tanks, vessels, containers,
abandoned or discarded barrels, and other closed receptacles; (vii) health and
safety of employees and other persons; and (viii) manufacturing, processing,
using, distributing, treating, storing, disposing, transporting or handling of
materials regulated under any law as pollutants, contaminants, toxic or
hazardous materials or substances or oil or petroleum products or solid or
hazardous waste.  As used above, the terms “release” and “environment”
shall have the meaning set forth in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended (“CERCLA”).

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (ii)          To
the knowledge of the Company there is no material environmental liability with
respect to any solid or hazardous waste transporter or treatment, storage or
disposal facility that has been used by the Company.

     

    (iii)         The
Company (i) has received all permits, licenses or other approvals required of
them under applicable Environmental Laws to conduct its business and (ii) is in
compliance with all terms and conditions of any such permit, license or
approval.

     

    (n)           Title.  The
Company does not own or lease any real or personal property.  NGE has
the right to explore for gold on the “Tempo Mineral Prospect” under the Tempo
Mineral Lease dated May 18, 2007, by and between Gold Standard Royalty (Nevada)
Inc., successor in interest to Bertha C. Johnson, Trustee of the Lyle F.
Campbell Trust, as Lessor, and NGE, as successor to KM Exploration LTD., as
successor to Gold Run, Inc., as amended (the “Lease”), as described in the SEC
Filings; the Lease is in full force and effect; and NGE’s interest therein is
free and clear of all royalties, liens, charges and encumbrances of any kind,
except as described in the SEC Filings.

     

    (o)           Internal Accounting
Controls.  The Company is in material compliance with the
provisions of the Sarbanes-Oxley Act of 2002 currently applicable to the
Company.  Except as described in the SEC Filings, the Company
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability,
and (iii) the recorded amounts for assets is compared with the existing assets
at reasonable intervals and appropriate action is taken with respect to any
differences.

     

    (p)           No Material Adverse
Breaches, etc.  Except as set forth in the SEC Filings, the
Company is not subject to any charter, corporate or other legal restriction, or
any judgment, decree, order, rule or regulation which in the judgment of the
Company’s officers has or is expected in the future to have a Material Adverse
Effect.  Except as set forth in the SEC Filings, the Company is not in
breach of any contract or agreement which breach, in the judgment of the
Company’s officers, has or is expected to have a Material Adverse
Effect.

     

    (q)           Tax
Status.  The Company has made and filed all federal and state
income and all other tax returns, reports and declarations required by any
jurisdiction to which it is subject and (unless and only to the extent that the
Company has set aside on its books provisions reasonably adequate for the
payment of all unpaid and unreported taxes) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith and has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the
periods to which such returns, reports or declarations apply.  There
are no unpaid taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction, and the officers of the Company know of no basis
for any such claim.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    (r)     
      Certain
Transactions.  Except as set forth in the SEC Filings, and
except for arm’s length transactions pursuant to which the Company makes
payments in the ordinary course of business upon terms no less favorable than
the Company could obtain from third parties, none of the officers, directors, or
employees of the Company is presently a party to any transaction with the
Company (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any corporation,
partnership, trust or other entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or
partner.

     

    (s)           Rights of First
Refusal.  The Company is not obligated to offer the securities
offered hereunder on a right of first refusal basis or otherwise to any third
parties including, but not limited to, current or former stockholders of the
Company, underwriters, brokers, agents or other third parties.

     

    (t)           Reliance.  The
Company acknowledges that the Buyers are relying on the representations and
warranties made by the Company hereunder and that such representations and
warranties are a material inducement to the Buyer purchasing the
Notes.  The Company further acknowledges that without such
representations and warranties of the Company made hereunder, the Buyers would
not enter into this Agreement.

     

    (u)           Brokers’
Fees.  The Company does not have any liability or obligation to
pay any fees or commissions to any broker, finder or agent with respect to the
transactions contemplated by this Agreement.

     

    4.           COVENANTS.

     

    (a)           Best
Efforts.  Each party shall use its best efforts timely to
satisfy each of the conditions to be satisfied by it as provided in Sections 5
and 6 of this Agreement.

     

    (b)           Form
D.  The Company agrees to file a Form D with respect to the
offer and sale of the Notes as required under Regulation D.  The
Company shall, on or before the Closing Date, take such action as the Company
shall reasonably determine is necessary to qualify the Notes (and the Conversion
Securities), or obtain an exemption for the Notes (and the Conversion
Securities) for sale to the Buyers at the Closing pursuant to this Agreement
under applicable securities or “Blue Sky” laws of the states of the United
States, and shall provide evidence of any such action so taken to the Buyers on
or prior to the Closing Date.

     

    (c)           Reporting
Status.  Until the earlier of (i) the date as of which the
Buyer(s) may sell all of the Conversion Securities without restriction pursuant
to Rule 144 promulgated under the Securities Act (or successor thereto), or (ii)
the date on which (A) the Buyer(s) shall have sold all the Conversion Securities
and (B) none of the Notes are outstanding, the Company shall file in a timely
manner all reports required to be filed with the SEC pursuant to the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and the regulations of
the SEC thereunder, and the Company shall not terminate its status as an issuer
required to file reports under the Exchange Act even if the Exchange Act or the
rules and regulations thereunder would otherwise permit such
termination.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    (d)           Use of
Proceeds.  The Company shall use 100% of the net proceeds from
the sale of the Notes (deducting legal fees and expenses payable to Gottbetter
& Partners, LLP, and fees payable to the Escrow Agent) for working capital
and other general corporate purposes.

     

    (e)           [Reserved]

     

    (f)           Listings or
Quotation.  The Company shall use its best efforts to maintain
the listing or quotation of its Common Stock upon the OTC Bulletin
Board.

     

    (g)           Corporate
Existence.  So long as any of the Notes remain outstanding, the
Company shall not directly or indirectly consummate any merger, reorganization,
restructuring, reverse stock split consolidation, sale of all or substantially
all of the Company’s assets, enter into a change of control transaction, or any
similar transaction or related transactions (each such transaction, an
“Organizational Change”), other than the the Stock Split and the Financing,
unless, prior to the consummation of an Organizational Change, the Company
obtains the written consent of each Buyer.  In any such case, the
Company will make appropriate provision with respect to such holders’ rights and
interests to insure that the provisions of this Section 4(g) will thereafter be
applicable to the Notes.

     

    (h)           Resales Absent Effective
Registration Statement.  Each of the Buyers understands and
acknowledges that (i) this Agreement and the agreements contemplated hereby may
require the Company to issue and deliver the Conversion Securities to the Buyers
with legends restricting their transferability under the Securities Act, and
(ii) it is aware that resales of such Conversion Securities may not be made
unless, at the time of resale, there is an effective registration statement
under the Securities Act covering such Buyer’s resale(s) or an applicable
exemption from registration.

     

    5.           CONDITIONS TO THE COMPANY’S
OBLIGATION TO SELL.

     

    The
obligation of the Company hereunder to issue and sell the Notes to the Buyer(s)
at the Closing is subject to the satisfaction, at or before the Closing Date, of
each of the following conditions, provided that these conditions are for the
Company’s sole benefit and may be waived by the Company at any time in its sole
discretion:

     

    (a)           Each
Buyer shall have executed this Agreement and completed and executed the
Accredited Investor Certification and delivered them to the
Company.

     

    (b)           The
Buyer(s) shall have delivered to the Escrow Agent the Purchase Price for Notes
in respective amounts as set forth on the signature pages affixed hereto and the
Escrow Agent shall have delivered the net proceeds to the Company by wire
transfer of immediately available U.S. funds pursuant to the wire instructions
provided by the Company.

     

    (c)           The
representations and warranties of the Buyer(s) contained in this Agreement shall
be true and correct in all material respects as of the date when made and as of
the Closing Date as though made at that time (except for representations and
warranties that speak as of a specific date), and the Buyer(s) shall have
performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Buyer(s) at or prior to the Closing Date.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    6.           CONDITIONS TO THE BUYER’S
OBLIGATION TO PURCHASE.

     

    (a)           The
obligation of the Buyer(s) hereunder to purchase the Notes at the Closing is
subject to the satisfaction, at or before the Closing Date, of each of the
following conditions:

     

    (i)           The
Company and NGE shall have entered into a security agreement of even date
herewith (the “Security Agreement”) with the Buyers pursuant to which each of
the Company and NGE shall have granted and conveyed to the Buyers a security
interest in all of its tangible and intangible assets, as security for the full
and timely repayment of the Notes in accordance with the terms of the
Notes.

     

    (ii)           The
representations and warranties of the Company contained in this Agreement shall
be true and correct in all material respects (except to the extent that any of
such representations and warranties is already qualified as to materiality in
Section 3 above, in which case, such representations and warranties shall be
true and correct without further qualification) as of the date when made and as
of the Closing Date as though made at that time (except for representations and
warranties that speak as of a specific date) and the Company shall have
performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Company at or prior to the Closing Date.  The
Company shall have obtained and delivered to the Buyers any and all consents,
permits, approvals, registrations and waivers necessary or appropriate for
consummation of the purchase and sale of the Notes, all of which shall be in
full force and effect.  The Buyers shall have received a certificate,
executed by the President of the Company, dated as of the Closing Date, to the
foregoing effect and as to such other matters as may be reasonably requested by
the Buyers, including, without limitation, an update as of the Closing Date
regarding the representation contained in Section 3(c) above.

     

    (iii)         The
Company shall have executed and delivered to the Buyers the Notes in the
respective amounts set forth on the signature pages affixed hereto and the
Disbursement of Funds Memorandum.

     

    (iv)        [Reserved]

     

    (v)         The
Company shall have delivered to the Buyers a certificate, executed on behalf of
the Company by its Secretary, dated as of the Closing Date, certifying the
resolutions adopted by the Board of Directors of the Company approving the
transactions contemplated by this Agreement and the issuance of the Notes,
certifying the current versions of the Articles of Incorporation and By-laws of
the Company and certifying as to the signatures and authority of persons signing
this Agreement on behalf of the Company.  The foregoing certificate
shall only be required to be delivered on the first Closing Date, unless any
information contained in the certificate has changed.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    (vi)     
   The Buyer(s) shall have received an opinion from the Company’s
counsel, dated as of the Closing Date, in form and substance reasonably
acceptable to the Buyers.

     

    (vii)        The
Buyers shall have completed all legal due diligence on the Company and NGE to
the extent reasonably satisfactory to the Buyers.

     

    (viii)    
  The Buyers shall have completed their legal due diligence of the
Company and FLB to their satisfaction and received from the Company and FLB all
executed documents necessary to close the contemplated
transactions.

     

    (b)           INDEMNIFICATION OF
BUYERS. In consideration of the Buyer’s execution and delivery of this
Agreement and acquiring the Notes (and the Conversion Securities) hereunder, and
in addition to all of the Company’s other obligations under this Agreement, the
Company shall defend, protect, indemnify and hold harmless the Buyer(s) and each
other holder of the Notes (and the Conversion Securities), and all of their
officers, directors, employees and agents (including, without limitation,
those retained in connection with the transactions contemplated by this
Agreement) (collectively, the “Buyer Indemnitees”) from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and expenses in connection therewith (irrespective of
whether any such Buyer Indemnitee is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees
and disbursements (the “Indemnified Liabilities”), incurred by the Buyer
Indemnitees or any of them as a result of, or arising out of, or relating to (a)
any material misrepresentation made by the Company in the Buyer Materials, (b)
any material breach of any covenant, agreement or obligation of the Company
contained in this Agreement, or (c) any cause of action, suit or claim brought
or made against such Buyer Indemnitee and arising out of or resulting from the
execution, delivery, performance or enforcement of this Agreement by any of the
Buyer Indemnitees.  To the extent that the foregoing undertaking by
the Company may be unenforceable for any reason, the Company shall make the
maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities, which is permissible under applicable law.

     

    7.           GOVERNING LAW:
MISCELLANEOUS.

     

    (a)           Governing
Law.  This Agreement shall be governed by and interpreted in
accordance with the laws of the State of New York without regard to the
principles of conflict of laws.  The parties further agree that any
action between them shall be heard exclusively in federal or state court sitting
in the New York County, New York, and expressly consent to the jurisdiction and
venue of the Supreme Court of New York, sitting in New York County and the
United States District Court for the Southern District of New York for the
adjudication of any civil action asserted pursuant to this
paragraph.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    (b)           Counterparts.  This
Agreement may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other
party.  In the event any signature page is delivered by facsimile
transmission, the party using such means of delivery shall cause four (4)
additional original executed signature pages to be physically delivered to the
other party within five (5) days of the execution and delivery
hereof.

     

    (c)           Headings.  The
headings of this Agreement are for convenience of reference and shall not form
part of, or affect the interpretation of, this Agreement.

     

    (d)           Severability.  If
any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction.

     

    (e)           Entire Agreement,
Amendments.  This Agreement supersedes all other prior oral or
written agreements between the Buyer(s), the Company, their affiliates and
persons acting on their behalf with respect to the matters discussed herein
(including any term sheet), and this Agreement and the instruments referenced
herein contain the entire understanding of the parties with respect to the
matters covered herein and therein and, except as specifically set forth herein
or therein, neither the Company nor any Buyer makes any representation,
warranty, covenant or undertaking with respect to such matters.  No
provision of this Agreement may be waived or amended other than by an instrument
in writing signed by the party to be charged with enforcement.

     

    (f)           Notices.  Any
notices, consents, waivers, or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed to
have been delivered (i) upon receipt, when delivered personally; (ii) upon
confirmation of receipt, when sent by facsimile; (iii) upon receipt when sent by
U.S. certified mail, return receipt requested, or (iv) one (1) day after deposit
with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same.  The addresses and
facsimile numbers for such communications shall be:

     

    
      	
              If
      to the Company, to:

            	
              Nevada
      Gold Holdings, Inc.

            
	 
      	
              1640
      Terrace Way

            
	 
      	
              Walnut
      Creek, CA 94957

            
	 
      	
              Attention:  David
      Rector

            
	 
      	
              Telephone: (925)
      938-0406

            
	 
      	 
      
	
              With
      a copy to:

            	
              Gottbetter
      & Partners, LLP

            
	 
      	
              488
      Madison Avenue, 12th
      Floor

            
	 
      	
              New
      York, New York  10022

            
	 
      	
              Attention:   Adam
      S. Gottbetter, Esq.

            
	 
      	
              Telephone:  (212)
      400-6900

            
	 
      	
              Facsimile:    (212)
      400-6901

            

    

     

    If to the
Buyer(s), to its address and facsimile number set forth on the signature pages
affixed hereto.  Each party shall provide five (5) days’ prior written
notice to the other party of any change in address or facsimile
number.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    (g)           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and
assigns.  Neither the Company nor any Buyer shall assign this
Agreement or any rights or obligations hereunder without the prior written
consent of the other party hereto.

     

    (h)           No Third Party
Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other
person.

     

    (i)    
       Survival.  Unless
this Agreement is terminated under Section 9(l), the representations and
warranties of the Company and the Buyer(s) contained in Sections 2 and 3, the
agreements and covenants set forth in Sections 4, 5 and 9, and the
indemnification provisions set forth in Section 6, shall survive the Closing for
a period of two (2) years following the date on which the Notes are repaid in
full.  The Buyer(s) shall be responsible only for its own
representations, warranties, agreements and covenants hereunder.

     

    (j)  
         Publicity.  The
Company and the Buyers shall have the right to approve, before issuance any
press release or any other public statement with respect to the transactions
contemplated hereby made by any party; provided, however, that the Company shall
be entitled, without the prior approval of the Buyers, to issue any press
release or other public disclosure with respect to such transactions required
under applicable securities or other laws or regulations (the Company shall use
its best efforts to consult the Buyer(s) in connection with any such press
release or other public disclosure prior to its release and the Buyer(s) shall
be provided with a copy thereof upon release thereof).

     

    (k)           Further
Assurances.  Each party shall do and perform, or cause to be
done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

     

    (l)        
   Termination.  In
the event that the Closing shall not have occurred with respect to the Buyers on
or before five (5) business days from the date hereof due to the Company’s or
the Buyer’s failure to satisfy the conditions set forth in Sections 5 and 6
above (and the non-breaching party’s failure to waive such unsatisfied
condition(s)), the non-breaching party shall have the option to terminate this
Agreement with respect to such breaching party at the close of business on such
date without liability of any party to any other party.

     

    (m)          No Strict
Construction.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any
party.

     

    (n)           Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, the Buyer and the Company will be entitled
to specific performance under this Agreement.  The parties agree that
monetary damages may not be adequate compensation for any loss incurred by
reason of any breach of obligations described in the foregoing sentence and
hereby agree to waive in any action for specific performance of any such
obligation the defense that a remedy at law would be adequate.

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    (o)           ANTI MONEY LAUNDERING
REQUIREMENTS

     

    
      
        
          	
                  The USA PATRIOT Act

                	 
      	
                  What is money 

                  laundering?

                	 
      	
                  How big is the problem 

                  and why is it important?

                
	 
      	 
      	 
      	 
      	 
      
	
                  The
      USA PATRIOT Act is designed to detect, deter, and punish terrorists in the
      United States and abroad.  The Act imposes new anti-money
      laundering requirements on brokerage firms and financial
      institutions.  Since April 24, 2002 all brokerage firms have
      been required to have new, comprehensive anti-money laundering
      programs.

                   

                  To
      help you understand theses efforts, we want to provide you with some
      information about money laundering and our steps to implement the USA
      PATRIOT Act.

                	 
      	
                  Money
      laundering is the process of disguising illegally obtained money so that
      the funds appear to come from legitimate sources or
      activities.  Money laundering occurs in connection with a wide
      variety of crimes, including illegal arms sales, drug trafficking,
      robbery, fraud, racketeering, and terrorism.

                	 
      	
                  The
      use of the U.S. financial system by criminals to facilitate terrorism or
      other crimes could well taint our financial markets.  According
      to the U.S. State Department, one recent estimate puts the amount of
      worldwide money laundering activity at $1 trillion a
  year.

                

        

      

    

     

    
      
        
          
            	
                    What
      are we required to do to eliminate money laundering?

                  
	 
      	 	 
      
	
                    Under
      new rules required by the USA PATRIOT Act, our anti-money laundering
      program must designate a special compliance officer, set up employee
      training, conduct independent audits, and establish policies and
      procedures to detect and report suspicious transaction and ensure
      compliance with the new laws.

                  	 	
                    As
      part of our required program, we may ask you to provide various
      identification documents or other information.  Until you
      provide the information or documents we need, we may not be able to effect
      any transactions for
you.

                  

          

        

      

    

     

    (p)           Payment of Fees to Brewer
& Pritchard, P.C.  The Company shall pay to Brewer &
Pritchard, PC at Closing a fee of $3,000 as payment for legal services rendered
on behalf of Buyer, which payment will be withheld by Buyer from the funds
advanced at Closing.

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    [REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the Buyers and the Company
have caused this Securities Purchase Agreement to be duly executed as of the
date first written above.

     

    
      
        
          	 
      	
                  COMPANY:

                
	 
      	
                  Nevada
      Gold Holdings, Inc.

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/ David Rector

                
	 
      	
                  Name:

                	
                  David
      Rector

                
	 
      	
                  Title:

                	
                  Chief
      Executive Officer

                
	 
      	 
      	 
      
	 
      	
                  BUYERS:

                
	 
      	 
      
	 
      	
                  The
      Buyers executing the Signature Page in the form attached hereto as Annex A and
      delivering the same to the Company or its agents shall be deemed to have
      executed this Agreement and agreed to the terms
  hereof.

                

        

      

    

     

    [SIGNATURE
PAGE TO SECURITIES PURCHASE AGREEMENT]

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    Annex
A

    

    Securities
Purchase Agreement

    Buyer
Counterpart Signature Page

    

    The
undersigned, desiring to: (i) enter into the Securities Purchase Agreement dated
as of May 14, 2010 (the “Agreement”), between the undersigned, Nevada Gold
Holdings, Inc. (f/k/a Nano Holdings International, Inc.), a Nevada corporation
(the “Company”), and the other parties thereto, in or substantially in the form
furnished to the undersigned and (ii) purchase the Notes of the Company as set
forth below, hereby agrees to purchase such Notes from the Company and further
agrees to join the Agreement as a party thereto, with all the rights and
privileges appertaining thereto, and to be bound in all respects by the terms
and conditions thereof.  The undersigned specifically acknowledges
having read the representations section in the Agreement entitled “Buyer’s
Representations and Warranties,” and hereby represent that the statements
contained therein are complete and accurate with respect to the undersigned as a
Buyer.

    

    The Buyer
hereby elects to purchase $50,000 Notes (to be completed by the
Buyer) under the Securities Purchase Agreement.

     

    
      
        
          
            	 
      	
                    Name
      of Buyer:

                  
	 
      	 
      
	 
      	
                    If
      an entity:

                  
	 
      	 
      
	 
      	
                    Print
      Name of Entity:

                  
	 
      	 
      
	 
      	
                    MLF
      Group LLC, a New Jersey limited liability company

                  
	 
      	 
      
	 
      	
                    By:

                  	
                      

                  
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:

                  
	 
      	 
      
	 
      	
                    If
      an individual:

                  
	 
      	 
      
	 
      	
                    Print Name:

                  	
                    N/A

                  
	 
      	 
      	 
      
	 
      	
                    Signature:

                  	
                    N/A

                  
	 
      	 
      
	 
      	
                    All
      Buyers:

                  
	 
      	 
      
	 
      	
                    Address:

                  	
                    8 Hop Brook Lane

                  
	 
      	
                      

                  	
                    Holmdel, NJ 07733

                  
	 
      	
                    Telephone No.:

                  	
                    732-332-0440

                  
	 
      	
                    Facsimile No.:

                  	
                      

                  
	 
      	
                    Email Address:

                  	
                    delpresto@comcast.net

                  
	 
      	
                    Social
      Security Numbers / Federal I.D. Number: ___________________

                  

          

        

      

    

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    SCHEDULE
I

     

    SCHEDULE OF
BUYERS

     

    
      
        
          
            
              
                	
                        Name

                      	 	
                        Amount of Subscription

                      	 
	
                        MLF
      Group LLC

                      	 	$	50,000	 

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NEVADA
GOLD HOLDINGS, INC.

    ACCREDITED
INVESTOR CERTIFICATION

    

    For
Individual Investors Only

    (all
Individual Investors must INITIAL where
appropriate):

    

    
      	
              Initial
      _______

            	
              I
      have a net worth (including home, furnishings and automobiles) of at least
      $1 million either individually or through aggregating my individual
      holdings and those in which I have a joint, community property or other
      similar shared ownership interest with my
  spouse.

            

    

    
      	
              Initial
      _______

            	
              I
      have had an annual gross income for the past two years of at least
      $200,000 (or $300,000 jointly with my spouse) and expect my income (or
      joint income, as appropriate) to reach the same level in the current
      year.

            

    

    
      	
              Initial
      _______

            	
              I
      am a director or executive officer of Nevada Gold Holdings, Inc. (f/k/a
      Nano Holdings International, Inc.).

            

    

    

    
      For
Non-Individual Investors

    

    
      (all
Non-Individual Investors must INITIAL where
appropriate):

    

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is a partnership, corporation, limited
      liability company or business trust that is 100% owned by persons who meet
      at least one of the criteria for Individual Investors set forth
      above.

            

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is a partnership, corporation, limited
      liability company or business trust that has total assets of at least $5
      million and was not formed for the purpose of investing the
      Company.

            

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is an employee benefit plan whose investment
      decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is
      a bank, savings and loan association, insurance company or registered
      investment advisor.

            

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is an employee benefit plan whose total assets
      exceed $5,000,000 as of the date of this
  Agreement.

            

    

    
      	
              Initial
      _______

            	
              The
      undersigned certifies that it is a self-directed employee benefit plan
      whose investment decisions are made solely by persons who meet at lease
      one of the criteria for Individual
Investors.

            

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is a U.S. bank, U.S. savings and loan
      association or other similar U.S. institution acting in its individual or
      fiduciary capacity.

            

    

    
      	
              Initial
      _______

            	
              The
      undersigned certifies that it is a broker-dealer registered pursuant to
      §15 of the Securities Exchange Act of
1934.

            

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is an organization described in §501(c)(3) of
      the Internal Revenue Code with total assets exceeding $5,000,000 and not
      formed for the specific purpose of investing in the
    Company.

            

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is a trust with total assets of at least
      $5,000,000, not formed for the specific purpose of investing in the
      Company, and whose purchase is directed by a person with such knowledge
      and experience in financial and business matters that such person is
      capable of evaluating the merits and risks of the prospective
      investment.

            

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is a plan established and maintained by a state
      or its political subdivisions, or any agency or instrumentality thereof,
      for the benefit of its employees, and which has total assets in excess of
      $5,000,000.

            

    

    
      	
              Initial
      _______

            	
              The
      investor certifies that it is an insurance company as defined in §2(13) of
      the Securities Act of 1933, or a registered investment
      company.EXHIBIT
10.2

    

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THESE
SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO
THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A
THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A
TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE,
FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION,
IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY.  HEDGING
TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE U.S. SECURITIES ACT.

     

    10%
SECURED CONVERTIBLE PROMISSORY NOTE

     

    NEVADA
GOLD HOLDINGS, INC.

     

    DUE
May14, 2011

     

    
      
        	
                Original
      Issue Date: May 14, 2010

              	
                US$50,000

              

      

    

    

    This
Secured Convertible Promissory Note is one of a series of duly authorized and
issued secured convertible promissory notes of NEVADA GOLD HOLDINGS, INC., a
Nevada corporation (the “Company”), designated
its 10% Secured Convertible Promissory Notes due May 14, 2011 (the “Note”), issued to
MLF GROUP LLC (together
with its permitted successors and assigns, the “Holder”) in
accordance with exemptions from registration under the Securities Act of 1933,
as amended (the “Securities Act”),
pursuant to a Securities Purchase Agreement, dated May 14, 2010 (the “Securities Purchase
Agreement”) between the Company and the Holder.  Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the Securities Purchase Agreement.

     

    Article
I.

     

    Section
1.01    Principal and
Interest.  (a) For value received, the Company hereby promises
to pay to the order of the Holder, in lawful money of the United States of
America and in immediately available funds the principal sum of FIFTY THOUSAND DOLLARS
($50,000) on May 14, 2011 (the “Maturity
Date”).

     

    (b)     Except
as otherwise provided for in Section 3.02 of this Note, this Note shall bear
interest from the date hereof at the rate of ten percent (10%) per annum until
paid in full, payable on the Maturity Date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)     On
the Maturity Date, the entire unpaid principal amount and accrued but unpaid
interest thereon shall be paid to the Holder, unless this Note is repaid earlier
in accordance with Section 1.02 herein or converted in accordance with Section
1.03 herein.

     

    Section
1.02    Prepayment.  The
Company shall have the right to prepay the Note at any time and from time to
time, in whole or in part, at 100% of the principal amount to be prepaid plus
accrued but unpaid interest thereon to the date of prepayment.

     

    Section
1.03    Mandatory
Conversion.  Upon the closing of any securities offering or
other financing resulting in gross cash proceeds to the Company in excess of
five hundred thousand dollars ($500,000) (the “Financing”), the entire unpaid
principal amount of this Note and accrued but unpaid interest thereon shall be
automatically, and without any action or notice by the Company or the Holder,
converted into the securities or instruments issued by the Company in the
Financing (the “Conversion Securities”) at a price (the “Conversion Price”)
equal to either (a) the price per share of stock (or unit of stock and other
securities) paid by investors in the Financing, if the Financing is an issuance
of stock (or units of stock and other securities) , or (b) the price paid by
investors in the Financing, expressed as a percentage of the face amount of debt
securities, if the Financing is an issuance of debt securities (or units of debt
securities and other securities) (including debt securities convertible into
stock).    No fraction of shares or scrip representing
fractions of shares will be issued on conversion, but if shares are issuable,
the number of shares issuable shall be rounded to the nearest whole
share.  The number or amount of Conversion Securities issuable upon a
conversion hereunder shall be determined by the quotient obtained by dividing
(x) the outstanding principal amount of this Note and accrued but unpaid
interest to be converted by (y) the Conversion Price.  The Company’s
calculation of the applicable Conversion Price shall be conclusive, absent
manifest error.  The Company shall afford the Holder the opportunity
to become a party to all agreements and instruments for the benefit of the
investors in the Financing, including, but not limited to, if applicable, any
registration rights agreement.

    

    Section
1.04    [Reserved]

     

    Section
1.05    Absolute
Obligation/Ranking.  Except as expressly provided herein, no
provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, and liquidated
damages (if any) on, this Note at the time, place, and rate, and in the coin or
currency, herein prescribed.  This Note is a direct debt obligation of
the Company.  This Note ranks pari passu with all other
Notes now or hereinafter issued pursuant to the Securities Purchase
Agreement.

     

    Section
1.06    Paying Agent and
Registrar.  Initially, the Company will act as paying agent and
registrar.  The Company may change any paying agent, registrar, or
Company-registrar by giving the Holder not less than ten (10) business
days’ written notice of its election to do so, specifying the name, address,
telephone number and facsimile number of the paying agent or
registrar.  The Company may act in any such capacity.

     

    Section
1.07    Different
Denominations.  This Note is exchangeable for an equal
aggregate principal amount of Notes of different authorized denominations, as
requested by the Holder surrendering the same.  No service charge will
be made for such registration of transfer or exchange.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Section
1.08    Investment
Representations. This Note has been issued subject to certain investment
representations of the original Holder set forth in the Securities Purchase
Agreement and may be transferred or exchanged only in compliance with the
Securities Purchase Agreement and applicable federal and state securities laws
and regulations.

     

    Section
1.09    Reliance on Note
Register.  Prior to due presentment to the Company for transfer
or conversion of this Note, the Company and any agent of the Company may treat
the person in whose name this Note is duly registered on the Note Register as
the owner hereof for the purpose of receiving payment as herein provided and for
all other purposes, whether or not this Note is overdue, and neither the Company
nor any such agent shall be affected by notice to the contrary.

     

    Section
1.10    Rights and
Remedies.  In addition to the rights and remedies given it by
this Note, the Holder shall have all those rights and remedies allowed by
applicable laws.  The rights and remedies of the Holder are cumulative
and recourse to one or more right or remedy shall not constitute a waiver of the
others.

     

    Article
II.

     

    Section
2.01    Amendments and Waiver of
Default.  The Note may not be amended without the consent of
the Holder.  Notwithstanding the above, without the consent of the
Holder, the Note may be amended to cure any ambiguity, defect or inconsistency
or to make any change that does not adversely affect the rights of the
Holder.

     

    Article
III.

     

    Section
3.01    Events of
Default.  Each of the following events shall constitute a
default under this Note (each an “Event of
Default”):

     

    (a)     failure
by the Company to pay principal or interest amount due hereunder within five (5)
days of the date such payment is due;

     

    (b)     failure
by the Company or the Company’s transfer agent to issue Conversion Securities to
the Holder within five (5) days of the closing of the
Financing;

     

    (c)     failure
by the Company for five (5) days after notice to it to comply with any of its
other agreements in the Note;

     

    (d)   
 the Company shall:  (1) make a general assignment for the
benefit of its creditors; (2) apply for or consent to the appointment of a
receiver, trustee, assignee, custodian, sequestrator, liquidator or similar
official for itself or any of its assets and properties; (3) commence a
voluntary case for relief as a debtor under the United States Bankruptcy Code;
(4) file with or otherwise submit to any governmental authority any
petition, answer or other document seeking:  (A) reorganization,
(B) an arrangement with creditors or (C) to take advantage of any
other present or future applicable law respecting bankruptcy, reorganization,
insolvency, readjustment of debts, relief of debtors, dissolution or
liquidation; (5) file or otherwise submit any answer or other document
admitting or failing to contest the material allegations of a petition or other
document filed or otherwise submitted against it in any proceeding under any
such applicable law, or (6) be adjudicated a bankrupt or insolvent by a
court of competent jurisdiction;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (e)     any
case, proceeding or other action shall be commenced against the Company for the
purpose of effecting, or an order, judgment or decree shall be entered by any
court of competent jurisdiction approving (in whole or in part) anything
specified in Section 3.01(d) hereof, or any receiver, trustee, assignee,
custodian, sequestrator, liquidator or other official shall be appointed with
respect to the Company, or shall be appointed to take or shall otherwise acquire
possession or control of all or a substantial part of the assets and properties
of the Company, and any of the foregoing shall continue unstayed and in effect
for any period of sixty (60) days;

     

    (f)      default
shall occur with respect to any indebtedness for borrowed money of the Company
or under any agreement under which such indebtedness may be issued by the
Company and such default shall continue for more than the period of grace, if
any, therein specified, if the aggregate amount of such indebtedness for which
such default shall have occurred exceeds $25,000;

     

    (g)     default
shall occur with respect to any contractual obligation of the Company under or
pursuant to any contract, lease, or other agreement to which the Company is a
party and such default shall continue for more than the period of grace, if any,
therein specified, if the aggregate amount of the Company’s contractual
liability arising out of such default exceeds or is reasonably estimated to
exceed $25,000;

     

    (h)     final
judgment for the payment of money in excess of $25,000 shall be rendered against
the Company and the same shall remain undischarged for a period of 20 days
during which execution shall not be effectively stayed;

     

    (i)      any
event of default of the Company under any agreement, note, mortgage, security
agreement or other instrument evidencing or securing indebtedness that ranks
senior in priority to, or pari passu with, the obligations under this Note and
the Securities Purchase Agreement;

     

    (j)      the
Common Stock shall not be eligible for quotation on or quoted for trading on the
OTC Bulletin Board and shall not again be eligible for and quoted for trading
thereon within five (5) trading days;

     

    (k)     any
breach by the Company of any of its representations or warranties under the
Securities Purchase Agreement; or

     

    (l)      any
default shall occur in the due observance or performance of any obligations or
other covenants, terms or provisions to be performed under this Note or the
Securities Purchase Agreement which is not cured by the Company within five (5)
days after receipt of written notice thereof.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Section
3.02    If any Event of Default occurs, the full
principal amount of this Note, together with any other amounts owing in respect
thereof, to the date of acceleration shall become, at the Holder’s election,
immediately due and payable in cash.  Commencing five (5) days after
the occurrence of any Event of Default that results in the eventual acceleration
of this Note, interest on this Note shall begin to accrue at the rate of 15% per
annum, or such lower maximum amount of interest permitted to be charged under
applicable law.  All Notes for which the full amount hereunder shall
have been paid in accordance herewith shall promptly be surrendered to or as
directed by the Company.  The Holder need not provide and the Company
hereby waives any presentment, demand, protest or other notice of any kind, and
the Holder may immediately and without expiration of any grace period enforce
any and all of its rights and remedies hereunder and all other remedies
available to it under applicable law.  Such declaration may be
rescinded and annulled by the Holder at any time prior to payment hereunder and
the Holder shall have all rights as a Note holder until such time, if any, as
the full payment under this Section shall have been received by
it.  No such rescission or annulment shall affect any subsequent Event
of Default or impair any right consequent thereon.

     

    Article
IV.

     

    Section
4.01    Negative
Covenants.  So long as this Note shall remain in effect and
until any outstanding principal and all fees and all other expenses or amounts
payable under this Note and the Securities Purchase Agreement have been paid in
full, unless all Holders shall otherwise consent in writing, the Company shall
not:

     

    (a)     Senior or Pari Passu
Indebtedness.  Incur, create, assume, guaranty or permit to
exist any indebtedness that ranks senior in priority to, or pari passu with, the
obligations under this Note and the Securities Purchase Agreement, except for
(i) indebtedness existing on the date hereof and set forth in Schedule A
attached hereto and only to the extent that such indebtedness ranks senior in
priority to or pari passu with the obligations under this Note and the
Securities Purchase Agreement on the Original Issue Date and (ii) indebtedness
created as a result of a subsequent financing if the gross proceeds to the
Company of such financing are equal to or greater than the aggregate principal
amount of the Notes and the Notes are repaid in full upon the closing of such
financing.

     

    (b)     Liens.  Create,
incur, assume or permit to exist any lien on any property or assets (including
stock or other securities of the Company) now owned or hereafter acquired by it
or on any income or revenues or rights in respect of any thereof,
except:

     

    (i)         liens
on property or assets of the Company existing on the date hereof and set forth
in Schedule B attached hereto, provided that such liens shall secure only those
obligations which they secure on the date hereof;

     

    (ii)        any
lien created under this Note or the Securities Purchase Agreement;

     

    (iii)     
 any lien existing on any property or asset prior to the acquisition
thereof by the Company, provided that

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    1)       such
lien is not created in contemplation of or in connection with such acquisition
and

     

    2)       such
lien does not apply to any other property or assets of the Company;

     

    (iv)     liens
for taxes, assessments and governmental charges;

     

    (v)      carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s or other like
liens arising in the ordinary course of business and securing obligations that
are not due and payable;

     

    (vi)     pledges
and deposits made in the ordinary course of business in compliance, with
workmen’s compensation, unemployment insurance and other social security laws or
regulations;

     

    (vii)    deposits
to secure the performance of bids, trade contracts (other than for
indebtedness), leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

     

    (viii)   zoning
restrictions, easements, licenses, covenants, conditions, rights-of-way,
restrictions on use of real property and other similar encumbrances incurred in
the ordinary course of business and minor irregularities of title that, in the
aggregate, are not substantial in amount and do not materially detract from the
value of the property subject thereto or interfere with the ordinary conduct of
the business of the Company;

     

    (ix)      purchase
money security interests in real property, improvements thereto or equipment
hereafter acquired (or, in the case of improvements, constructed) by the
Company, provided that

     

    1)       such
security interests secure indebtedness permitted by this Note,

     

    2)       such
security interests are incurred, and the indebtedness secured thereby is
created, within 90 days after such acquisition (or construction),

     

    3)       the
indebtedness secured thereby does not exceed 85% of the lesser of the cost or
the fair market value of such real property, improvements or equipment at the
time of such acquisition (or construction) and

     

    4)       such
security interests do not apply to any other property or assets of the
Company;

     

    (x)      liens
arising out of judgments or awards (other than any judgment that constitutes an
Event of Default hereunder) in respect of which the Company shall in good faith
be prosecuting an appeal or proceedings for review and in respect of which it
shall have secured a subsisting stay of execution pending such appeal or
proceedings for review, provided the Company shall have set aside on its books
adequate reserves with respect to such judgment or award; and

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (xi)       deposits,
liens or pledges to secure payments of workmen’s compensation and other
payments, public liability, unemployment and other insurance, old-age pensions
or other social security obligations, or the performance of bids, tenders,
leases, contracts (other than contracts for the payment of money), public or
statutory obligations, surety, stay or appeal bonds, or other similar
obligations arising in the ordinary course of business.

     

    (c)     Dividends and
Distributions.  In the case of the Company, declare or pay,
directly or indirectly, any dividend or make any other distribution (by
reduction of capital or otherwise), whether in cash, property, securities or a
combination thereof, with respect to any shares of its capital stock or directly
or indirectly redeem, purchase, retire or otherwise acquire for value any shares
of any class of its capital stock or set aside any amount for any such
purpose.

     

    (d)    Limitation on Certain
Payments and Prepayments.

     

    (i)         Pay
in cash any amount in respect of any indebtedness or preferred stock that may at
the obligor’s option be paid in kind or in other securities;

     

    (ii)        Optionally
prepay, repurchase or redeem or otherwise defease or segregate funds with
respect to any indebtedness of the Company, other than for senior indebtedness
existing on the date hereof and set forth in Schedule A attached hereto,
indebtedness under this Note or the Securities Purchase Agreement.

     

    Article
V.

     

    Section
5.01    Re-issuance of
Note.  If the Holder elects to convert only a part of the Note
upon the closing of the Financing, then the Company shall reissue a new Note in
the same form as this Note to reflect the new principal amount and the Holder
shall return the Note to the Company for cancellation

     

    Article
VI.

     

    Section
6.01    Anti-dilution.  Adjustment of Conversion
Price.  The Conversion Price shall be adjusted from time to
time as follows:

     

    (a)     Adjustment of Conversion
Price and Number of Shares upon Issuance of Common Stock.  If
at any time after the Original Issue Date, the Company issues or sells, or is
deemed to have issued or sold, any shares of Common Stock  (including
shares of common stock in the Financing) other than upon issuance, exercise or
conversion of the Other Securities (as defined herein) for a consideration per
share less than a price (the “Applicable Price”)
equal to the Conversion Price in effect immediately prior to such issuance or
sale, then immediately after such issue or sale the Conversion Price then in
effect shall be reduced to an amount equal to such consideration per share,
provided that in no event shall the Conversion Price be reduced below
$0.001.

     

    (b)    Effect on Conversion Price
of Certain Events.  For purposes of determining the adjusted
Conversion Price under Section 6.01(a) above, the following shall be
applicable:

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (i)   
     Issuance of
Options.  If after the date hereof, the Company in any manner
grants any rights, warrants or options to subscribe for or purchase Common Stock
or convertible securities (“Options”), other than
Other Securities, and the lowest price per share for which one share of Common
Stock is issuable upon the exercise of any such Option or upon conversion or
exchange of any convertible securities issuable upon exercise of any such Option
is less than the Conversion Price then in effect, then such share of Common
Stock shall be deemed to be outstanding and to have been issued and sold by the
Company at the time of the granting or sale of such Option for such price per
share.  For purposes of this Section 6.01(b)(i), the lowest price per
share for which one share of Common Stock is issuable upon exercise of such
Options or upon conversion or exchange of such convertible securities shall be
equal to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to any one share of Common Stock upon the
granting or sale of the Option, upon exercise of the Option or upon conversion
or exchange of any other convertible security other than this Note issuable upon
exercise of such Option.  No further adjustment of the Conversion
Price shall be made upon the actual issuance of such Common Stock or of such
convertible securities upon the exercise of such Options or upon the actual
issuance of such Common Stock upon conversion or exchange of such convertible
securities.

     

    (ii)    
   Issuance of Convertible
Securities.  If the Company in any manner issues or sells any
convertible securities after the Original Issue Date, other than Other
Securities, and the lowest price per share for which one share of Common Stock
is issuable upon the conversion or exchange thereof is less than the Conversion
Price then in effect, then such share of Common Stock shall be deemed to be
outstanding and to have been issued and sold by the Company at the time of the
issuance or sale of such convertible securities for such price per
share.  For the purposes of this Section 6.01(b)(ii), the lowest
price per share for which one share of Common Stock is issuable upon such
conversion or exchange shall be equal to the sum of the lowest amounts of
consideration (if any) received or receivable by the Company with respect to one
share of Common Stock upon the issuance or sale of the convertible security and
upon conversion or exchange of such convertible security.  No further
adjustment of the Conversion Price shall be made upon the actual issuance of
such Common Stock upon conversion or exchange of such convertible securities,
and if any such issue or sale of such convertible securities is made upon
exercise of any Options for which adjustment of the Conversion Price had been or
are to be made pursuant to other provisions of this Section 6.01(b), no further
adjustment of the Conversion Price shall be made by reason of such issue or
sale.

     

    (iii)    
  Change in
Option Price or Rate of Conversion.  If the purchase price
provided for in any Options, the additional consideration, if any, payable upon
the issue, conversion or exchange of any convertible securities, or the rate at
which any convertible securities are convertible into or exchangeable for Common
Stock changes at any time, the Conversion Price in effect at the time of such
change shall be adjusted to the Conversion Price which would have been in effect
at such time had such Options or convertible securities provided for such
changed purchase price, additional consideration or changed conversion rate, as
the case may be, at the time initially granted, issued or sold and the number of
shares of Common Stock issuable upon conversion of this Note shall be
correspondingly readjusted.  For purposes of this Section
6.01(b)(iii), if the terms of any Option or convertible security that was
outstanding as of the Original Issue Date are changed in the manner described in
the immediately preceding sentence, then such Option or convertible security and
the Common Stock deemed issuable upon exercise, conversion or exchange thereof
shall be deemed to have been issued as of the date of such change.  No
adjustment pursuant to this Section 6.01(b) shall be made if such adjustment
would result in an increase of the Conversion Price then in effect.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (c)     Effect on Conversion Price
of Certain Events.  For purposes of determining the adjusted
Conversion Price under Sections 6.01(a) and 6.01(b), the following shall be
applicable:

     

    (i)         Calculation of Consideration
Received.  If any Common Stock, Options or convertible
securities are issued or sold or deemed to have been issued or sold for cash,
the consideration received therefore will be deemed to be the net amount
received by the Company therefore.  If any Common Stock, Options or
convertible securities are issued or sold for a consideration other than cash,
the amount of such consideration received by the Company will be the fair value
of such consideration, except where such consideration consists of marketable
securities, in which case the amount of consideration received by the Company
will be the market price of such securities on the date of receipt of such
securities (measured by the closing sale price of such securities on the
Over-the-Counter Bulletin Board or its principal trading market).  If
any Common Stock, Options or convertible securities are issued to the owners of
the non-surviving entity in connection with any merger in which the Company is
the surviving entity, the amount of consideration therefore will be deemed to be
the fair value of such portion of the net assets and business of the
non-surviving entity as is attributable to such Common Stock, Options or
convertible securities, as the case may be.  The fair value of any
consideration other than cash or securities will be determined jointly by the
Company and the holders of the principal amount of the Notes then
outstanding.  If such parties are unable to reach agreement within
ten (10) days after the occurrence of an event requiring valuation (the
“Valuation
Event”), the fair value of such consideration will be determined within
five (5) Business Days after the tenth (10th) day
following the Valuation Event by an independent, reputable appraiser jointly
selected by the Company and the holders of the principal amount of the Notes
then outstanding.  The determination of such appraiser shall be final
and binding upon all parties and the fees and expenses of such appraiser shall
be borne by the Company.

     

    (ii)        Integrated
Transactions.  In case any Option is issued in connection with
the issue or sale of other securities of the Company, together comprising one
integrated transaction in which no specific consideration is allocated to such
Options by the parties thereto, the Options will be deemed to have been issued
for a consideration of $0.001.

     

    (iii)       Treasury
Shares.  The number of shares of Common Stock outstanding at
any given time does not include shares owned or held by or for the account of
the Company, and the disposition of any shares so owned or held will be
considered an issue or sale of Common Stock.

     

    (iv)       Record
Date.  If the Company takes a record of the holders of Common
Stock for the purpose of entitling them (1) to receive a dividend or other
distribution payable in Common Stock, Options or in convertible securities or
(2) to subscribe for or purchase Common Stock, Options or convertible
securities, then such record date will be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (d)     Adjustment of Conversion
Price upon Subdivision or Combination of Common Stock.  If the
Company at any time after the date of issuance of this Note subdivides (by any
stock split, stock dividend, recapitalization or otherwise) one or more classes
of its outstanding shares of Common Stock into a greater number of shares, the
Conversion Price or Future Price in effect immediately prior to such subdivision
will be proportionately reduced.  If the Company at any time after the
date of issuance of this Note combines (by combination, reverse stock split or
otherwise) one or more classes of its outstanding shares of Common Stock into a
smaller number of shares, the Conversion Price or Future Price in effect
immediately prior to such combination will be proportionately
increased.  Any adjustment under this Section 6.01(d) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

     

    (e)     Distribution of
Assets.  If the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of
Common Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a “Distribution”), at
any time after the issuance of this Note, then, in each such case the Conversion
Price in effect immediately prior to the close of business on the record date
fixed for the determination of holders of Common Stock entitled to receive the
Distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Conversion Price by a
fraction of which (A) the numerator shall be the closing bid price of the Common
Stock on the trading day immediately preceding such record date minus the value
of the Distribution (as determined in good faith by the Company’s Board of
Directors) applicable to one share of Common Stock, and (B) the denominator
shall be the closing bid price of the Common Stock on the trading day
immediately preceding such record date.

     

    (f)    
 Certain
Events.  If any event occurs of the type contemplated by the
provisions of this Section 6.01 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features but excluding
the Recapitalization, as such term is defined in the Securities Purchase
Agreement), then the Company’s Board of Directors will make an appropriate
adjustment in the Conversion Price so as to protect the rights of the holders of
the Note; provided, except as set forth in Section 6.01(d), that no such
adjustment pursuant to this Section 6.01(f) will increase the Conversion Price
as otherwise determined pursuant to this Section 6.01.

     

    (i)         Notices.

     

    1)       Immediately
upon any adjustment of the Conversion Price, the Company will give written
notice thereof to the holder of this Note, setting forth in reasonable detail,
and certifying, the calculation of such adjustment.

     

    2)       The
Company will give written notice to the holder of this Note at least ten (10)
days prior to the date on which the Company closes its books or takes a record
(A) with respect to any dividend or distribution upon the Common Stock,
(B) with respect to any pro rata subscription offer to holders of Common
Stock or (C) for determining rights to vote with respect to any dissolution
or liquidation, provided that such information shall be made known to the public
prior to or in conjunction with such notice being provided to such
holder.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (ii)        Definitions.

     

    “Other Securities”
means (i) those options and warrants of the Company issued prior to, and
outstanding on, the Original Issue Date, (ii) the shares of Common Stock
issuable on exercise of such options and warrants, provided such options and
warrants are not amended after the Original Issue Date, and (iii) the
shares of Common Stock issuable upon conversion of this Note.

     

    (g)     Nothing
in this Section 6.01 shall be deemed to authorize the issuance of any securities
by the Company in violation of Section 6.02

     

    Article
VII

    

    Section
7.01    Notice.  Notices
regarding this Note shall be sent to the parties at the following addresses,
unless a party notifies the other parties, in writing, of a change of
address:

     

    
      	
              If
      to the Company, to:

            	
              Nevada
      Gold Holdings, Inc.

            
	 
      	
              1640
      Terrace WayWalnut Creek, California

            
	 
      	
              Attention:
      David Rector, CEO

            
	 
      	
              Telephone:  925-930-0100

            
	 
      	
              Facsimile:  925-930-6338

            
	 
      	 
      
	
              With
      a copy to:

            	
              Gottbetter
      & Partners, LLP

            
	 
      	
              488
      Madison Avenue, 12th
      Floor

            
	 
      	
              New
      York, New York 10022

            
	 
      	
              Attention:  Adam
      S. Gottbetter, Esq.

            
	 
      	
              Telephone:  212-400-6900

            
	 
      	
              Facsimile:  212-400-6901

            
	 
      	 
      
	
              If
      to the Holder:

            	
              At
      the address set forth in the Securities Purchase
  Agreement

            

    

    

    Section
7.02    Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Note shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York,
without regard to the principles of conflicts of law thereof.  Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by any of the
Transaction Documents (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall be
commenced in the state and federal courts sitting in the City of New York,
Borough of Manhattan (the “New York Courts”).  Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the New York Courts
for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, or such
New York Courts are improper or inconvenient venue for such
proceeding.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Note and agrees that such service shall
constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or
relating to this Note or the transactions contemplated hereby.  If
either party shall commence an action or proceeding to enforce any provisions of
this Note, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorney’s fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    Section
7.03    Severability.  The
invalidity of any of the provisions of this Note shall not invalidate or
otherwise affect any of the other provisions of this Note, which shall remain in
full force and effect.

     

    Section
7.04    Entire Agreement and
Amendments.  This Note, together with the Securities Purchase
Agreement, represents the entire agreement between the parties hereto with
respect to the subject matter hereof and there are no representations,
warranties or commitments, except as set forth herein.  This Note may
be amended only by an instrument in writing executed by the parties
hereto.

     

    [Remainder
of Page Intentionally Left Blank]

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, with the
intent to be legally bound hereby, the Company as executed this Note as of the
date first written above.

     

    
      
        	 
      	
                Nevada
      Gold Holdings, Inc.

              
	 
      	 
      
	 
      	
                By:

              	
                  

              
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              

      

    

     

    [SIGNATURE
PAGE TO SECURED CONVERTIBLE PROMISSORY NOTE]

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      EXHIBIT
10.2

    

     

    SCHEDULE
A

    

    SENIOR AND PARI PASSU
INDEBTEDNESS

     

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
B

    

    LIENS

     

    None.

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