Document:

EXHIBIT 10.36

THIRTEENTH AMENDMENT TO

 SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

THIS THIRTEENTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this "Amendment") is entered into as of April 23, 2015, by and among TELOS CORPORATION, a Maryland corporation ("Telos"), XACTA CORPORATION, a Delaware corporation ("Xacta"; Telos and Xacta are each a "Borrower" and collectively, the "Borrowers"), UBIQUITY.COM, INC., a Delaware corporation ("Ubiquity"), TELOWORKS, INC., a Delaware corporation ("Teloworks"; Ubiquity and Teloworks are each, a "Credit Party" and collectively, the "Credit Parties"; the Credit Parties and the Borrowers are each, a "Company" and collectively, the "Companies"), and WELLS FARGO CAPITAL FINANCE, LLC, (successor by merger to Wells Fargo Capital Finance, Inc., formerly known as Wells Fargo Foothill, Inc.), as agent ("Agent") for the Lenders (defined below) and as a Lender.

WHEREAS, Borrowers, Credit Parties, Agent and certain other financial institutions from time to time party thereto (the "Lenders") are parties to that certain Second Amended and Restated Loan and Security Agreement dated as of May 17th, 2010, (as amended, restated or otherwise modified from time to time, the "Loan Agreement"); and

WHEREAS, subject to the terms and conditions contained herein, Agent, Required Lenders and Borrowers have agreed to amend the Loan Agreement in certain respects;

NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties hereto agree as follows:

1.            Defined Terms.  Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to such terms in the Loan Agreement.

2.            Amendments to Loan Agreement.  Subject to the satisfaction of the conditions set forth in Section 4 hereof, and in reliance upon the representations and warranties set forth in Section 7(a) hereof, the Loan Agreement is hereby amended as follows:

(a)            Each of the following defined terms is hereby added to Section 1.1 of the Loan Agreement in the appropriate alphabetical order:

"IT Enterprise JV" means IT Enterprise Solutions JV, LLC, a Virginia limited liability company.  For the avoidance of doubt, IT Enterprise JV shall not constitute a Subsidiary of Parent.

"IT Enterprise JV Documents" means, collectively, (i) the Operating Agreement of IT Enterprise Solutions JV, LLC dated as of April 23, 2015 by and among IT Enterprise JV, Information International Associates, Inc., a Tennessee corporation, and Parent, and (ii) the Joint Venture Agreement dated as of April 23, 2015 by and between Information International Associates, Inc. and Parent for the IT Enterprise JV.

(b)            Section 1.1 of the Loan Agreement is amended by amending the definition of the term "Permitted Investments" set forth therein by (i) replacing the "and" immediately preceding clause (h) thereof with a ",", (ii) replacing the "." at the end of clause (h) thereof with ", and", and (iii) inserting a new clause (i) at the end thereof as follows:

(i) the ownership by Parent of 49% (and not any greater percentage) of the Stock of IT Enterprise JV pursuant to the IT Enterprise JV Documents, and the making of capital contributions by Parent to IT Enterprise JV in an aggregate amount during the term of this Agreement not to exceed $75,000 (for the avoidance of doubt, the initial $49,000 to be contributed by Parent to IT Enterprise JV pursuant to the IT Enterprise JV Documents shall count toward such $75,000 limit).

(c)            Section 7.8 of the Loan Agreement is hereby amended to add a new clauses (g) at the end thereof as follows:

(g)            Amend, modify, alter, or change any of the terms or conditions of the IT Enterprise JV Documents.

3.            Ratification.  This Amendment, subject to satisfaction of the conditions set forth in Section 4 hereof, shall constitute an amendment to the Loan Agreement and all of the Loan Documents as appropriate to express the agreements contained herein.  Except as specifically set forth herein, the Loan Agreement and the Loan Documents shall remain unchanged and in full force and effect in accordance with their original terms.

4.            Conditions to Effectiveness.  This Amendment shall become effective upon the satisfaction of the following conditions precedent:

(a)            Each party hereto shall have executed and delivered this Amendment to Agent;

(b)            Agent shall have received fully executed copies of the IT Enterprise JV Documents in form and substance satisfactory to Agent, and such other documents, agreements and instruments as may be requested or required by Agent in connection with this Amendment, each in form and content acceptable to Agent;

(c)            No Default or Event of Default shall have occurred and be continuing on the date hereof or as of the date of the effectiveness of this Amendment; and

(d)            All proceedings taken in connection with the transactions contemplated by this Amendment, the IT Enterprise JV Documents and all documents, instruments and other legal matters incident thereto shall be satisfactory to Agent and its legal counsel.

5.            Post-Effective Date Covenant from Waiver and Twelfth Amendment.  On or before May 15, 2015, Telos covenants and agrees that it shall deliver a copy of a filed UCC-3 termination statement of the following financing statement currently filed in favor of Key Government Finance, Inc., as secured party, against Telos in the state of Maryland:  filing number 0000000181418923 filed April 22, 2011 (the "Key Government Finance Filing").  Each Company acknowledges and agrees that the failure of Telos to comply with the covenant in this Section 5 shall constitute an immediate Event of Default.   This covenant replaces in its entirety the covenant set forth in Section 6(b) of the Waiver and Twelfth Amendment to Second Amended and Restated Loan and Security Agreement dated as of March 31, 2015 by and among Borrowers, Credit Parties, Agent and Lenders (such that the deadline for such covenant is now May 15, 2015 rather than 21 days following March 31, 2015).

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6.            Reaffirmation and Confirmation.  Each Company hereby ratifies, affirms, acknowledges and agrees that the Loan Agreement and the other Loan Documents represent the valid, enforceable and collectible obligations of such Company, and further acknowledges that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect to the Loan Agreement or any other Loan Document.  Each Company hereby agrees that this Amendment in no way acts as a release or relinquishment of the Liens and rights securing payments of the Obligations.  The Liens and rights securing payment of the Obligations are hereby ratified and confirmed by each Company in all respects.

7.            Miscellaneous.

(a)            Warranties and Absence of Defaults.  To induce Agent and Lenders to enter into this Amendment, each Company hereby represents and warrants to Agent and Lenders that:

	
(i)

	
The execution, delivery and performance by it of this Amendment, the IT Enterprise JV Documents and each of the other agreements, instruments and documents contemplated hereby are within its corporate power, have been duly authorized by all necessary corporate action, have received all necessary governmental approval (if any shall be required), and do not and will not contravene or conflict with any provision of law applicable to it, its articles of incorporation and by‐laws, any order, judgment or decree of any court or governmental agency, or any agreement, instrument or document binding upon it or any of its property;

	
(ii)

	
each of the Loan Agreement and the other Loan Documents, as amended by this Amendment, are the legal, valid and binding obligation of each Company party thereto enforceable against it in accordance with its terms, except as the enforcement thereof may be subject to (A) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor's rights generally, and (B) general principles of equity;

	
(iii)

	
the representations and warranties contained in the Loan Agreement and the other Loan Documents are true and accurate as of the date hereof with the same force and effect as if such had been made on and as of the date hereof; and

	
(iv)

	
each Company has performed all of its obligations under the Loan Agreement and the other Loan Documents to be performed by it on or before the date hereof and as of the date hereof, it is in compliance with all applicable terms and provisions of the Loan Agreement and each of the Loan Documents to be observed and performed by it and no Event of Default or Default has occurred.

(b)            Expenses.  Each Company hereby agrees that Companies, jointly and severally, shall pay on demand all costs and expenses of Agent and each Lender (including the reasonable fees and expenses of outside counsel) in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and all other instruments or documents provided for herein or delivered or to be delivered hereunder or in connection herewith.  In addition, each Company hereby agrees that Companies, jointly and severally, shall pay, and save Agent harmless from all liability for, any stamp or other taxes which may be payable in connection with the execution or delivery of this Amendment or the Loan Agreement, as amended hereby, and the execution and delivery of any instruments or documents provided for herein or delivered or to be delivered hereunder or in connection herewith.  All obligations provided herein shall survive any termination of the Loan Agreement as amended hereby.

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(c)            Governing Law.  This Amendment shall be a contract made under and governed by the internal laws of the State of Illinois.

(d)            Counterparts.  This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or by electronic transmission of a portable document file (PDF) or similar file shall be effective as delivery of a manually executed counterpart of this Amendment.

8.            Release.

(a)            In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Company on behalf of itself and such Company's successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set‐off, demands and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which such Company or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, including, without limitation, for or on account of, or in relation to, or in any way in connection with the Loan Agreement, any of the Porter Subordinated Debt Documents, any of the IT Enterprise JV Documents, or any of the other Loan Documents or transactions thereunder or related thereto.

(b)            Each Company hereby acknowledges and agrees that such Company understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

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(c)            Each Company hereby acknowledges and agrees that such Company agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.

[signature pages follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized and delivered as of the date first above written.

	
AGENT AND LENDERS:

 

	
WELLS FARGO CAPITAL FINANCE, LLC.

(successor by merger to Wells Fargo Capital Finance, Inc.) as Agent and as a Lender

 

	
By

	
/s/ Jordan E. Hilliard

	
Name

	
Jordan E. Hilliard

	
Title

	
Vice President

	 	 
	 	 
	
BORROWERS:

	 	 
	
TELOS CORPORATION

	
A Maryland corporation

	 	 
	
By

	
/s/ Jefferson V. Wright

	
Title

	
Jefferson V. Wright, EVP, General Counsel

	 	 
	 	 
	
XACTA CORPORATION

	
A Delaware corporation

	 	 
	
By

	
/s/ Jefferson V. Wright

	
Title

	
Jefferson V. Wright, EVP, General Counsel

	 	 
	 	 
	
CREDIT PARTIES:

	 	 
	
UBIQUITY.COM, INC.

	
A Delaware corporation

	 	 
	
By

	
/s/ Jefferson V. Wright

	
Title

	
Jefferson V. Wright, EVP, General Counsel

	 	 
	 	 
	
TELOWORKS, INC.

	
A Delaware corporation

	 	 
	
By

	
/s/ David Easley

	
Title

	
David Easley, Presidentex10-8.htm

Exhibit 10.8

 

	
Applied Minerals, Inc.

Board Policy on Director Compensation 

 

Fees payable for Board and Committee service of non-employee directors is set forth below. Employee directors receive no compensation for Board or Committee service.

	
1. Fees payable in cash, stock, and/or options
	  
	
(i) Base Retainer
	
$50,000 per year, payable quarterly in four installments in advance

	
(ii) Committee Chair (Audit, Compensation, Nominating and Governance, HS&E Committees); Operations Committee
	
$10,000 per year, payable quarterly in four installments in advance; 

 

For the Operations Committee, 2016 fees: Chairman - $100,000 in five year options, vesting on the date of grant the number being calculated using the Black-Scholes value of the date of grant and the exercise price being the closing market price on the date of grant; for independent members - $25,000 in five year options with the number and exercise price calculated in the same manner.

	
(iii) Board Chair
	
$10,000 per year, payable quarterly in four installments in advance

	
(iv) Payment terms for such fees except for Operations Committee fees
	
First 50% of such fees

 

50% of the base retainer, committee chair, and board chairman fees must be taken in the form of either of stock (not subject to restrictions on transfer other than those imposed by law) and/or five-year non-qualified options and/or ten-year non-qualified options or in any combination thereof. As to such 50% percent, each director may elect the percentage to be taken in stock and the percentage to be taken in options and to the extent he elects options, the percentage in five- and/or ten-year options.

 

 

 

 

 

   

	  	
Second 50% of such fees

 

As to the other 50%, a director may elect to take such fees in the form of cash, stock (not subject to restrictions other than those imposed by law) and/or non-qualified options or any combination thereof and to the extent he elects options, the percentage of options, the percentage in five-year and/or ten-year options. 

 

Award and vesting dates

 

The shares for a quarter will be awarded and options for a quarter will vest on the Grant Date, March 31st, June 30th, September 30th and December 31st (each a “Vesting Date”).

 

Determining the number of shares and options

 

The number of shares is to be determined by dividing the value of cash amount of the fee by the value of the common stock on the Grant Date

	
2. Fees payable in restricted stock and/or options
	
Election between restricted stock and options 

 

A director may elect to take (i) 50,000 shares of restricted common stock or (ii) the number of options determined by dividing the value of 50,000 shares of common stock by the Black Scholes value of the common stock or (iii) any combination of stock and options.

 

 

 

 

 

 

	  	
Absence of Election

 

In the absence of an election by a director, the fees will be payable in options. 

 

Valuation of common stock and options

 

Common stock is to be valued at the closing common stock price Grant Date or if the Grant Date is not a trading day, the trading day immediately prior to the Grant Date.

 

Options are to be valued at the Black Scholes valuation method on Grant Date.

 

Options, Vesting, and Exercise Price

 

Options are five-year or ten-year non-qualified options to purchase shares of common stock; one-half of such options vesting one year after the Grant Date and the other half vesting two years after the Grant Date; the exercise price being the closing price on the Grant Date or if the Grant Date is not a trading day, the trading day immediately prior to the Grant Date.

 

 

 

 

 

 

	  	
Restrictions of stock

 

The restricted stock and any interest therein may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of except by will or the laws of descent and distribution during the period prior to the termination of restrictions.

 

The restrictions will terminate as to 50 percent of the restricted shares one year after the Grant Date and the restrictions will terminated for the other 50 percent of the shares two years after the Grant Date.

 

Accelerated vesting and termination of restrictions

 

Vesting of options will accelerate and the restrictions on disposition will terminate upon death, Disability (as defined in the 2012 Long Term Inventive Plan (the “Plan”)), resignation from the Board of Directors for health reasons, failure to be included in the list of nominees of the Board of Directors for election at the next annual meeting of shareholders (the lapse of restrictions occurring at such time the Board makes such determination), failure to be reelected as a director at an annual meeting of shareholders if the director was a nominee of the Board of Directors, or a Change in Control (as defined in the Plan). 

 

Forfeiture

 

In the event of the termination of the director’s service as a director of the Company for any reason than those listed in the preceding paragraph:

 

 

 

 

 

 

 

	 	
(a) prior to the lapse of all of the restrictions on the stock, such portion of the restricted stock as to which the restrictions have not lapsed shall be automatically forfeited by the director as of the date of termination;

 

(b) prior to vesting of all of the options, such portion of the options that have not vested shall be automatically forfeited by the director as of the date of termination.

 

Additional Provisions including definition of Grant Date 

 

See Section 4 below.

	
(3) Fees payable solely in options
	
Options

 

Ten-year non-qualified options to purchase 50,000 shares of common stock per year. 

 

Granting date and vesting

 

The granting date for a year’s 50,000 option grant will be January 1 of such year. 12,500 options will vest on January 1, March 31, June 30, and September 30.

 

Exercise price

 

The exercise price will be the closing price on the trading date immediately preceding January 1.

 

 

 

 

 

  

	  	
Accelerated vesting 

 

Vesting of options will accelerate upon death, Disability (as defined in the Plan), resignation from the Board of Directors for health reasons, failure to be included in the list of nominees of the Board of Directors for election at the next annual meeting of shareholders (the lapse of restrictions occurring at such time the Board makes such determination), failure to be reelected as a director at an annual meeting of shareholders if the director was a nominee of the Board of Directors, or a Change in Control (as defined in the Plan).

 

Forfeiture

 

In the event of the termination of the director’s service as a director of the Company for any reason than those listed in the preceding paragraph prior to vesting of all of the options, such portion of the options that have not vested shall be automatically forfeited by the director as of the date of termination.

	
4. Provisions common to Sections 1 and 2 above
	
Elections

 

Elections are to be made on an annual basis for the entire year. 

 

In order to make an election under Section 1 or 2, a director must deliver to the Board (addressed to the Secretary of the Company) a written election setting forth the percentage of the fees to be distributed in the form of cash (applicable only to the first paragraph of 1(iv)), common stock, five-year-options and/or ten-year options.

 

 

 

 

 

  

	  	
An election, if made, must be made by January 31.

 

Grant Date 

 

An election by a director will be effective on the later of January 1, if an election is made prior to the end of the year, or the date of the director’s election is received by the Secretary, if the election is made thereafter. The term “Grant Date” means the later of the effective date of the election or if no election is made, January 31.

	
5. New directors
	
A director initially elected or appointed during the year will be paid for the pro rata portion of the fees and the other provisions related to such fees will be appropriately adjusted.

	
6. Option agreement
	
Subject to the provisions set forth above, the form of option agreement to be used is attached as Exhibit A

 

 

 

 

 

  

	
Exhibit A

	  
	  
	
APPLIED MINERALS, INC.

2012 LONG-TERM INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

 

	
Date of Grant:
	  
	  	  
	
Name of Optionee:
	  
	  	  
	
Number of Shares Subject to Option:
	  
	  	  
	
Exercise Price (Per Share):
	  
	  	  
	
Expiration Date:
	  
	  	  
	
Vesting Schedule:
	  
	  	  
	
Optional Provisions Applicable:
	
Provision
	
Yes
	
No

	  	
A
	
 
	
X

	  	
B
	  	
X

	  	
C
	  	
X

	  	
        D (i)
	
X
	  
	  	
        D (ii)
	
X
	  
	  	
        D (iii)
	
X
	  

 

This is a Non-Statutory Stock Option Agreement ("Agreement") between Applied Minerals, Inc., a Delaware corporation (the "Company"), and the optionee identified above (the "Optionee") effective as of the date of grant specified above. To the extent any capitalized terms used in this Agreement are not defined, they shall have the meaning ascribed to them in the Company's 2012 Long-Term Incentive Plan (the "Plan").

 

 

 

 

 

 

	
1. Grant
	
The Optionee is granted this Option to purchase the number of Shares specified at the beginning of this Agreement.

	
2. Exercise Price
	
The price to the Optionee of each Share subject to this Option shall be the exercise price specified at the beginning of this Agreement.

	
3. Non-Statutory Stock Option
	
This Option is not intended to be an "incentive stock option" within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").

	
4. Exercise Schedule
	
This Option shall vest and become exercisable as to the number of Shares and on the date(s) specified in the exercise schedule at the beginning of this Agreement. The exercise schedule shall be cumulative; thus, to the extent this Option has not already been exercised and has not expired, terminated or been cancelled, the Optionee or the person otherwise entitled to exercise this Option as provided herein may at any time, and from time to time, purchase all or any portion of the Shares then purchasable under the exercise schedule.

	
5. Exercise
	
Subject to whatever installment exercise and waiting period provisions apply, to the extent vested, Stock Options may be exercised in whole or in part at any time during the Option term, by giving written notice of exercise to the Secretary of the Company specifying the number of shares of Common Stock to be purchased. Such notice shall be in a form set forth in Exhibit A and shall be accompanied by payment in full of the purchase price as follows: (i) in cash or by check, bank draft or money order payable to the order of the Company and (ii) solely to the extent permitted by applicable law, through a procedure whereby the Optionee delivers irrevocable instructions to a broker reasonably acceptable to the Committee to deliver promptly to the Company an amount equal to the purchase price.

 

 

 

 

 

   

	
6.  Incentive Compensation Recoupment
	
The Option Award including any shares of Common Stock issued under the Options hereunder, will be subject to any compensation recapture policies established by the Board or the Committee from time to time, in their respective sole discretion.

	
7. Option Subject to Plan, Articles of Incorporation and By-Laws
	
The Optionee acknowledges that this Option and the exercise thereof is subject to the Plan, the Articles of Incorporation, as amended from time to time, and the By-Laws, as amended from time to time, of the Company, and any applicable federal or state laws, rules or regulations.

	
8. Binding Effect
	
This Agreement shall be binding in all respects on the heirs, representatives, successors and assigns of the Optionee.

 

	
Optional Provisions:
	  
	
A
	
(i) In the event Optionee engages in Detrimental Activity prior to any exercise of the Stock Option, all Stock Options held by the Optionee shall thereupon terminate and expire,

(ii) as a condition of the exercise of a Stock Option, the Optionee shall be required to certify (or shall be deemed to have certified) at the time of exercise in a manner acceptable to the Company that the Optionee is in compliance with the terms and conditions of the Plan and that the Optionee has not engaged in, and does not intend to engage in, any Detrimental Activity, and

(iii) in the event the Optionee engages in Detrimental Activity during the one year period commencing on the date the Stock Option is exercised or becomes vested, the Company shall be entitled to recover from the Optionee at

 

 

 

 

 

  

	  	
any time within one year after such exercise or vesting, and the Optionee shall pay over to the Company, an amount equal to any gain realized as a result of the exercise (whether at the time of exercise or thereafter). 

 

The foregoing provisions described in subsections (i), (ii) and (iii) shall cease to apply upon a Change in Control.

	
B
	
If Optionee’s Termination is by reason of death, Disability or Retirement, all Stock Options that are held by Optionee that are vested and exercisable at the time of the Optionee’s Termination may be exercised by Optionee (or, in the case of death, by the legal representative of Optionee’s estate) at any time within a period of one year from the date of such Termination, but in no event beyond the expiration of the stated term of such Stock Options; provided, however, that in the case of Retirement, if Optionee dies within such exercise period, all unexercised Stock Options held by Optionee shall thereafter be exercisable, to the extent to which they were exercisable at the time of death, for a period of the later of one year from the date of such death or the expiration of the stated term of such Stock Options.

	
C
	
If Optionee’s Termination is by involuntary termination for Cause or voluntary termination without Good Reason, all Stock Options that are held by such Optionee that are vested and exercisable at the time of Optionee’s Termination may be exercised by the Optionee at any time within a period of 90 days from the date of such Termination, but in no event beyond the expiration of the stated term of such Stock Options.

 

 

 

 

 

 

	
D
	
If a Optionee’s Termination is by involuntary termination without Cause or voluntary termination for Good Reason, all Stock Options that are held by Optionee that are vested and exercisable at the time of the Optionee’s Termination may be exercised by the Optionee at any time within a period of 90 days from the date of such Termination, but in no event beyond the expiration of the stated term of such Stock Options.

	
E
	
Stock Options that are not vested as of the date of Optionee’s Termination for any reason shall terminate and expire as of the date of such Termination.

	
F
	
Stock Options are Transferable to a Family Member in whole or in part and in such circumstances, and under such conditions, as specified by the Committee.

	
G
	
The following are added as methods of exercise for purposes of Section 5:

(i) “Net-Exercise,” which means a procedure by which the Optionee will be issued a number of shares of Stock determined in accordance with the following formula: N = X(A-B)/A, where “N” = the number of shares of Stock to be issued to the Participant upon exercise of the Option; “X” = the total number of shares with respect to which the Participant has elected to exercise the Option; “A” = the Fair Market Value of one share of Stock determined on the exercise date; and “B” = the exercise price per share (as defined in the Participant’s Award Agreement);

(ii) cancellation of indebtedness; and

(iii) delivery to the Company of unencumbered shares of Common Stock having an aggregate Fair Market Value on the date of exercise equal to the purchase price of the Shares as to which this Option is exercised.

 

 

 

 

 

 

	
Applied Minerals, Inc.
	
Date: ____________________

	  	  
	
By:_____________________________
	  
	  	  
	  	  
	  	  
	
_______________________________
	
Date: ____________________

	
Signature of Optionee
	  
	  	  
	
_______________________________
	  
	
Name of Optionee

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