Document:

exh105.htm

     

    Exhibit
10.5

    

    ASSET
PURCHASE AGREEMENT

    

    

    ASSET PURCHASE AGREEMENT (the
“Agreement”) dated effective as of March 31, 2009, between United Mine Services,
Inc., an Idaho corporation (the “Purchaser”), and Mine Fabrication &
Machine, Inc., an Idaho corporation, (the “Seller”), and Fred A. and Linda M.
Forsberg, individually and as Co-Trustees of the Family Trust of Fred A.
Forsberg and Linda M. Forsberg dated September 26, 2008 (collectively the
“Forsbergs”).

    

    RECITALS

    

    WHEREAS, the Seller and the
Forsbergs desire to sell and the Purchaser desires to purchase certain assets,
properties, and rights of the Seller and the Forsbergs.;

    

    WHEREAS, the parties hereto
agreed to that certain Stock Purchase and Sale Agreement on April 11, 2007, as
amended, and the transaction contemplated thereunder failed to close;
and

    

    WHEREAS, the parties hereto
entered into a Letter of Intent on November 6, 2008, outlining the transaction
contemplated herein and calling for a mutual release of claims by the parties
upon Closing.

    

    NOW, THEREFORE, in
consideration of the covenants, agreements, representations, and warranties
contained in this Agreement, the parties hereto hereby agree as
follows:

    

    ARTICLE
I

    

    PURCHASE
AND SALE OF ASSETS;

    PURCHASE
PRICE; CLOSING

    

    1.1.           Purchase and Sale of
Assets. Subject to the terms and conditions of this Agreement, on the
Closing Date (as defined herein) and except for those assets listed in paragraph
1.2 below: (i) the Seller shall sell, transfer, convey, assign, and deliver to
the Purchaser, and the Purchaser shall purchase, acquire, and accept from the
Seller, all assets of the Seller, lists of the Seller’s customers, vendors, and
employees (including names, addresses, and wage rates, but not employee files)
and all of Seller’s right, title, and interest in and to its goodwill and the
names “Mine Fab”, “Mine Fab & Machine, Inc.”, “Mine Fabrication &
Machine, Inc.”, and any other name under which the Seller is known and does
business (such rights hereinafter referred to as the “Trade Name”) and; (ii) the
Forsbergs shall sell and the Purchaser shall purchase certain real

    

    

    

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PURCHASE AGREEMENT, Page 1

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    property
described in Section 2.5 (all such assets referred to herein as the “Transferred
Assets”).

    

    1.2.           Excluded Assets.
Notwithstanding any other provision of this Agreement, the Seller shall retain
and shall not transfer to Purchaser a Seller-owned policy of life insurance on
the life of Fred Forsberg; the pickup truck used by Fred Forsberg owned by the
Seller; Seller-owned cash, bank accounts, investments, employee files, computers
(including all software and hardware) and corporate books and records with
regard to any activity of the Seller for any period preceding
Closing.

    

    1.3.           No Assumption of Liabilities
or Obligations. Notwithstanding anything to the contrary in this
Agreement, the Purchaser shall not assume any liabilities or obligations of the
Seller except the Seller’s open purchase orders and executory contract
obligations that were entered into in the normal course of business existing for
the Seller, at Closing as disclosed on Schedule 2.13 hereto, and nothing herein
shall be construed as imposing any liability or obligation upon the Purchaser
other than those specifically provided for herein. Seller and Forsbergs shall
not assume any liability or obligations of the Purchaser, and nothing herein
shall be construed as imposing any liability or obligation upon the Seller and
Forsbergs other than those specifically provided for herein. Notwithstanding any
other provision herein, Seller shall be responsible for payment of all employee
salaries and payroll taxes (i.e., FICA, FUTA, federal income tax withholding,
Idaho State income tax withholding, SUDA, and L&I taxes, etc.) through the
Date of Closing, and Purchaser shall be responsible for payment of said salaries
and payroll taxes owed from the day immediately following the Date of Closing
forward. Seller and Forsbergs and Purchaser acknowledge and agree that all
employees of the Seller are employed “at will”.

    

    1.4.           Purchase
Price.

    

    
      	 	
              (a)

            	
              Purchase Price.
      The aggregate consideration for the Transferred Assets shall be $2,700,000
      [the “Purchase Price”] payable to the Seller and Forsbergs by the
      Purchaser as described in Section 1.4(b). The Purchase Price includes
      $250,000 to be allocated to inventory existing at Closing, which amount
      shall be adjusted to the lesser of the following for each item of
      inventory: (i) the Seller’s actual cost of each item of inventory existing
      at Closing, or (ii) the fair market value of each item of inventory. The
      aggregate of each item of inventory so valued shall be referred to as
      “Inventory Value”. Work in progress inventory shall not be included in
      determining Inventory Value. Inventory Value shall not include any
      inventory located on the Real Property that is owned by F&H Mine
      Supply. Inventory Value in excess of $250,000 shall increase the total
      Purchase Price. Inventory Value less than $250,000 shall decrease the
      total Purchase Price. At an agreed upon date, but no more than one week
      before the Closing Date, Seller and Purchaser shall meet to inspect the
      inventory and determine in good faith the Inventory Value to include in
      the purchase price, and shall

            

    

    

    

    

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PURCHASE AGREEMENT, Page 2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              complete
      the Agreement as to Inventory Value attached hereto as Schedule 1.4(a). If
      the parties are unable to agree on the Inventory Value by the date of
      Closing, the transaction shall nevertheless Close with the Inventory Value
      at the midpoint between the Purchaser’s valuation and the Seller’s
      valuation (calculated by adding the Purchaser’s valuation and the Seller’s
      valuation together and dividing the result by 2), not to exceed $250,000,
      and the amount of the Inventory Value shall be submitted to arbitration
      under Section 11.14.

            

    

    

    
      	 	
              (b)

            	
              Payment. At the
      Closing, the Purchaser shall pay, execute, and deliver each of the
      following to the Seller and
Forsbergs:

            

    

    

    
      	 	
              (i)

            	
              cash
      payment of One Million Five Hundred Thousand Dollars ($1,500,000) in
      immediately available funds to the Seller’s bank account, as previously
      instructed to the Purchaser by the Seller in
  writing;

            

    

    

    
      	 	
              (ii)

            	
              the
      Purchaser’s Promissory Note #1, attached hereto as Exhibit “A”, in the
      principal amount of Five Hundred Thousand Dollars ($500,000), plus or
      minus the adjustment to Inventory Value as stated in Section
      1.4(a).

            

    

    

    
      	 	
              (iii)

            	
              the
      Purchaser’s Promissory Note #2, attached hereto as Exhibit “B” in the
      principal amount of Five Hundred Thousand Dollars
    ($500,000);

            

    

    

    
      	 	
              (iv)

            	
              subordinated
      Deed of Trust attached hereto as Exhibit “C”;
  and

            

    

    

    
      	 	 	
              (v)

            	
              subordinated
      Security Agreement attached hereto as Exhibit
  “D”.

            

    

    

    
      	 	
              (vi)

            	
              Guaranty
      of Greg Stewart, in the form attached hereto as Schedule
    3.7.

            

    

    

    
      	 	
              Purchaser
      has already made, and Forsbergs acknowledge receipt of, payments in a
      total amount of Two Hundred Thousand Dollars
  ($200,000).

            

    

    

    1.5.           Allocation of Purchase
Price. The Purchase Price shall be allocated among the Transferred Assets
in the manner set forth in Exhibit “E”. Neither the Purchaser nor the Seller and
Forsbergs shall, in connection with any tax return, any refund claim, any
litigation or investigation or otherwise, take any position with respect to the
allocation of the Purchase Price which is inconsistent with the manner of
allocation provided in such schedule.

    

    

    

    

    

    

    

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PURCHASE AGREEMENT, Page 3

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE
II

    

    REPRESENTATIONS
AND WARRANTIES OF THE SELLER AND FORSBERGS

    

    Except as otherwise set forth in the
schedules attached to this Agreement by reference to specific sections of this
Agreement (hereinafter collectively referred to as the “Disclosure Schedule”),
the Seller and Forsbergs represent and warrant to the Purchaser as set forth
below:

    

    2.1.           Organization and Good
Standing. The Seller is a corporation duly organized, validly existing,
and in good standing under the laws of the State of Idaho and is in good
standing in every jurisdiction in which the conduct of its business requires it
to be so qualified. For purposes of the change of Seller’s name to “Forsberg
Investments, Inc.” contemplated under this Agreement, as detailed in Section
5.5(e), Purchaser and Seller acknowledge and agree that Seller may prior to
Closing change its name to Forsberg Investments, Inc., and shall be the same
entity as the Seller. Accordingly, the term “Seller” as used herein shall, where
applicable, shall also mean “Forsberg Investments, Inc.”

    

    2.2.           Authorization, etc.
The Seller and Forsbergs have full corporate power and authority to enter into
this Agreement, all exhibits and schedules hereto, and all agreements
contemplated herein (this Agreement and all such exhibits, schedules, and other
agreements being collectively referred to herein as the “Acquisition
Documents”), to perform its obligations hereunder and thereunder, to transfer
the Transferred Assets, and to carry out the transactions contemplated hereby
and thereby. The Board of Directors of the Seller has taken, or will take before
the Closing Date, all actions required by law, its Articles of Incorporation,
its By-Laws or otherwise to authorize (i) the execution and delivery of this
Agreement and the other Acquisition Documents, and (ii) the performance of their
obligations hereunder and thereunder.

    

    This Agreement has been duly executed
and delivered by the Seller and Forsbergs, and this Agreement is and such other
Acquisition Documents will be, upon due execution and delivery thereof, the
legal, valid, and binding obligations of the Seller and Forsbergs enforceable
according to their terms, except (a) as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium general principle, or similar
laws now or hereafter in effect relating to creditors’ rights and (b) that the
remedy of specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding may be brought.

    

    2.3.           Title to Transferred
Assets. The Seller and Forsbergs (as to the real property) own and have
good and marketable title to all Transferred Assets, free and clear of all
Liens. There is no significant material asset used or required by the
Seller

    

    

    

    

    

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              in
      conduct of its business which is not owned by the Seller or, as to the
      real property described in Section 2.5 below, by the
      Forsbergs.

            

    

    

    2.4.           Permitted Liens. The
Seller and Forsbergs have good and marketable title to all of the Transferred
Assets, tangible and intangible, free and clear of all Liens except for (i)
Liens set forth in the Schedule 2.4 hereto, (ii) Liens for current taxes not yet
due and payable, and (iii) except as disclosed on Schedule 2.5(c) hereto, such
other minor imperfections of title and encumbrances, if any, that do not, in the
aggregate, have a significantly material adverse effect on the business, assets,
or financial condition of the Seller (collectively hereinafter referred to as
the “Permitted Liens”).

    

    2.5.           Owned Real
Property.

    

    
      	 	
              (a)

            	
              The
      real property (“Real Property”) on which the Seller operates, is owned by
      the Forsbergs and consists of approximately 9.0 acres located adjacent to
      I-90 on Silver Valley Road (a.k.a. Highway 10), Kellogg, Shoshone County,
      Idaho. The Forsbergs have good and marketable title to the Real Property
      owned by them free and clear of any Liens except for Permitted
      Liens.

            

    

    

    
      	 	
              (b)

            	
              The
      Real Property includes all land, buildings, structures, and other
      improvements used by the Seller or necessary to enable the Seller to
      conduct its business as it is presently being conducted. Seller does not
      lease any real property other than the Real
  Property.

            

    

    

    
      	 	
              (c)

            	
              To
      the best of the Forsbergs’ present knowledge, and except as disclosed on
      Schedule 2.5(c) hereto, there is no condition of the Real Property, that
      would be revealed by an accurate survey or physical inspection thereof,
      which would interfere in any respect with the use or occupancy thereof as
      currently used and occupied. At Closing, title to the Real Property shall
      be conveyed by Warranty Deed free of all encumbrances except Permitted
      Liens. Forsbergs shall supply a standard form of title insurance with
      First American Title Company, Inc., with insuring title in the Purchaser,
      with such restrictions of record as may be reflected in the commitment for
      such insurance, attached as Exhibit
“F”.

            

    

    

    
      	 	
              (d)

            	
              To
      the best of the Forsbergs’ present knowledge, a portion of the Real
      Property may be located in a special flood hazard area designated by any
      state or federal governmental
authority.

            

    

    

    
      	 	
              (e)

            	
              The
      legal description of the Real Property is as
  follows:

            

    

    

    
      	 	
              A
      parcel of land situated in the Northeast Quarter of the Southwest Quarter
      and Northwest Quarter of the Southwest Quarter of
  Section

            

    

    

    

    

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PURCHASE AGREEMENT, Page 5

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              5,
      Township 48 North, Range 3 East B.M., Shoshone County, Idaho and being
      more particularly described as
follows:

            

    

    

    
      	 	
              Beginning
      at a point where the North-South centerline of said Section 5 intersects
      the Northerly right-of-way line of the I-90 frontage road, whence the
      South Quarter Corner of said Section 5 bears South 00°51'54" West,
      1,486.88 feet distant (shown of record to be South 00°42' East, 1,485.00
      feet);

            

    

    

    
      	 	
              Thence
      South 87°05'43" West, 191.87 feet along said Northerly right-of-way
      line;

            

    

    

    
      	 	
              Thence
      North 74°08'05" West, 369.76 feet along said Northerly right-of-way to a
      point on the Westerly boundary of a tract described in Deeds Book 77, page
      66;

            

    

    

    
      	 	
              Thence
      North 12°34'20" East, 928.58 feet along said Westerly boundary to a point
      on the East-West centerline of said Section
5;

            

    

    

    
      	 	
              Thence
      North 88°41'55" East, 360.46 feet along said East-West centerline to the
      Center Quarter of said Section 5;

            

    

    

    
      	 	
              Thence
      North 88°41'55" East, 63.40 feet along said
  centerline;

            

    

    

    
      	 	
              Thence
      South 00°00'04" West, 1,010.12 feet to a point on the Northerly
      right-of-way of said I-90 frontage
road;

            

    

    

    
      	 	
              Thence
      North 87°56'36" West, 78.61 feet along said right-of-way to the point of
      beginning.

            

    

    

    
      	 	
              (f)

            	
              Purchaser
      and Forsbergs hereby acknowledge the existence of that certain lease
      entered into by Forsbergs with Young Electric Sign Company on January 27,
      1998, as further detailed in item number 16 under “PART I” of “SCHEDULE
      B-SECTION II EXCEPTIONS” of that certain Title Commitment issued by First
      American Title Company, attached hereto as Exhibit “F”. Purchaser
      acknowledges that it has read said lease and is familiar with its terms.
      Purchaser and Forsbergs agree that said lease shall be assigned to
      Purchaser, by execution of an Assignment of Lease, attached hereto as
      Schedule 2.5(f), and that Purchaser shall become the Lessor thereon, and
      shall have all rights and obligations of the Lessor
      thereunder.

            

    

    

    2.6.           No Violation. None of
(i) the execution and delivery of this Agreement or any of the other Acquisition
Documents by the Seller and the Forsbergs, (ii) the

    

    

    

    

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    performance
by the Seller and the Forsbergs of its obligations hereunder or thereunder, or
(iii) the consummation of the transactions contemplated hereby or thereby after
the Closing, will (A) violate any provision of the Articles of Incorporation or
By-Laws of the Seller; (B) violate or constitute a default under or breach of,
or permit the termination of, or cause the acceleration of the maturity of, any
indenture, mortgage, contract, debt or contractual obligation of the Seller,
which violation, default, breach, termination, or acceleration, either
individually or in the aggregate with all other such violations, defaults,
breaches, terminations, and accelerations, would have a significant material
adverse effect on the Transferred Assets, including goodwill; (C) require the
consent of any other party to or result in the creation or imposition of any
Lien upon any property or assets of the Seller or the Transferred Assets under
any indenture, mortgage, contract, debt or obligation of or to which the Seller
is a party or by which the Seller is bound; (D) violate any statute, law,
judgment, decree, order, regulation, or rule of any court or governmental
authority to which the Seller or the Transferred Assets is subject; or (E)
result in the loss of any material license or certificate benefiting the
Seller.

    

    2.7.           Financial
Statements.

    

    
      	 	
              (a)

            	
              Delivery. The
      Seller has delivered to the Purchaser true and complete copies of its tax
      returns, as of and for the years ended 2004, 2005, 2006, and 2007, as well
      as its unaudited financial statements, including balance sheet and
      statement of operations for the twelve-month period ending December 31,
      2008 (hereinafter referred to as the Seller’s
    “Financials”).

            

    

    

    
      	 	
              (b)

            	
              Accuracy. To
      the best of Seller’s present knowledge and without further investigation,
      the Financials are true and correct and fairly present the financial
      condition of the Seller as of the respective dates thereof and the results
      of operations of the Seller for the periods then
  ended.

            

    

    

    2.8.           Absence of Certain
Changes. Since April 11, 2007, the date of the original Stock Purchase
and Sale Agreement, the Seller has not: (i) suffered any significantly material
adverse change in its assets (including goodwill); (ii) suffered any damage,
destruction, or loss, whether covered by insurance or not, materially adversely
affecting its assets (including goodwill); (iii) permitted or allowed any of its
property or assets (real, personal, or mixed, tangible or intangible) to be
subjected to any mortgage or, pledge (individually and collectively hereinafter
referred to as a “Lien”), except Permitted Liens; (iv) created or incurred any
liability (fixed, absolute, accrued, contingent, or otherwise) except for
unsecured current liabilities entered into in the ordinary course of business;
(v) made any disposition of assets except in the ordinary course of business,
consistent with past practice; or (vi) paid or agreed to pay any payment or
compensation to any employee outside the ordinary course of
business.

    

    2.9.           Trade Names. The
Seller owns, is licensed, or to the best of its present knowledge and without
investigation, otherwise has the full right to use all trade names,

    

    

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    used in
the business of the Seller as currently conducted and as listed on Schedule 2.9.
Upon Closing, Seller agrees to execute an Assignment of Trade Names,
substantially in the form of Schedule 2.9 hereto, which contains a list of all
trade names used by the Seller.

    

    2.10.         Litigation. To the
best of Seller’s present knowledge and without investigation, there are no
actions, claims, proceedings, and investigations (“Actions”), including without
limitation Actions for personal injuries, products liability, or breach of
warranty arising from products sold by the Seller, pending or threatened against
the Seller, or the Transferred Assets, before any court, arbitrator, or
administrative or governmental body. The Seller is not subject to any judgment,
order, or decree entered in any lawsuit or proceeding that has materially
adversely affected, or that can reasonably be expected to materially adversely
affect, the transactions contemplated by this Agreement, the Seller, or the
Transferred Assets, including, without limitation, the Seller’s business
practices and its ability to acquire any property or conduct business in
anyway.

    

    2.11.         Tax Returns and
Payments. All of the tax returns and reports of the Seller required by
law to be filed on or before the date hereof have been duly and timely filed and
all taxes shown as due thereon have been paid. There are in effect no waivers of
any applicable statute of limitations related to such returns. To the best of
Seller’s present knowledge and without investigation, no liability for any tax
will be imposed upon the Transferred Assets or the Transferred Assets with
respect to any period before the Closing Date. The provisions of this Section
2.11 shall include, without limiting the generality of this Section, all
reports, returns, and payments due under all federal, state, or local laws or
regulations relating to income, sales, use and withholding taxes, withholding
obligations, unemployment insurance, Social Security, workers’ compensation and
other obligations of the same or of a similar nature. The Seller is not subject
to any open audit in respect of its taxes and no deficiency assessment or
proposed adjustment for taxes is pending.

    

    2.12.         Insurance. Schedule
2.12 contains a complete list of all material policies of fire, liability,
workers’ compensation and other forms of insurance owned or held by or for the
benefit of the Seller (collectively, the “Insurance Policies”). The Seller has
delivered to the Purchaser true and complete copies of the Insurance Policies,
along with copies of all past Insurance Policies reasonably available after due
and diligent search. To the best of Seller’s present knowledge and without
investigation, the Seller’s tangible real and personal property and assets,
whether owned or leased, are insured by reputable insurance companies licensed
to do business in the state in which such property is located in such amounts
customarily carried by comparable businesses, except to the extent that any
failures to insure would not, in the event of a loss, have a material adverse
effect upon the business of Seller. All such Insurance Policies are and will
remain in full force and effect through the Closing Date and, to the best of
Seller’s

    

    

    

    

    

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PURCHASE AGREEMENT, Page 8

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    present
knowledge and without investigation, there is no notice of or basis for any
modification, suspension, termination, or cancellation of any Insurance
Policy.

    

    2.13.         Contracts and
Commitments.

    

    
      	 	
              (a)

            	
              Schedule
      2.13 hereto contains a complete list of each written contract of the
      Seller that is material to the Seller, including but not limited to the
      following: (i) all employment contracts between the Seller and its
      employees, other than those terminable by the Seller at will and without
      payment or penalty; (ii) all collective bargaining agreements and union
      contracts to which the Seller is a party; (iii) all written contracts with
      distributors, brokers, manufacturer’s representatives, sales
      representatives, service or warranty representatives, customers, and other
      persons, firms, or corporations engaged in the sale or distribution of the
      Seller’s products; (iv) all presently open purchase orders issued by the
      Seller in excess of $5,000, all sales orders received by the Seller in
      excess of $5,000 that have not yet been completed, and all purchase or
      sales orders that call for delivery or performance on a date more than one
      year from the date of this Agreement; (v) all written contracts between
      the Seller or any person or entity that controls, is controlled by, or is
      under common control with, the Seller or any family member of any such
      person (such entity or person, being hereinafter referred to as an
      “Affiliate”); (vi) all written contracts under which the Seller is either
      a bailor or bailee including without limitation written contracts for the
      bailment of vehicles; (vii) all agreements pursuant to which the Seller
      acquired the Trade Name or a substantial portion of its assets; and (viii)
      all other written executory contracts of the Seller reflecting obligations
      for borrowed money or for other indebtedness or guaranties
      thereof.

            

    

    

    
      	 	
              (b)

            	
              To
      the best of Seller’s present knowledge and without investigation, the
      Seller is not a party to any written contract that would restrict it from
      engaging in any business.

            

    

    

    
      	 	
              (c)

            	
              To
      the best of Seller’s present knowledge and without investigation, each of
      the contracts listed on Schedule 2.13 is valid and binding, and each has
      been entered into in the ordinary course of business. To the best of
      Seller’s present knowledge and without investigation, the Seller is not in
      default of the contracts described in this Section
  2.13.

            

    

    

    2.14.         Distributors and
Customers. To the best of Seller’s present knowledge and without
investigation, it enjoys good working relationships under all of its
distributor, sales representative, and similar contracts necessary to the normal
operation of its business. Except for ARM AeroSpace, with whom Seller terminated
work in April, 2008, the Seller has no knowledge or basis for knowledge that any
customer or group of related customers (i.e., any customers who are directly or
indirectly through one or more intermediaries under common control), who, for
the fiscal year ended 2008 accounted

    

    

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PURCHASE AGREEMENT, Page 9

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    for more
than $5,000 in aggregate volume of gross sales of the Seller, has terminated or
expects to terminate a material portion of its normal business with the Seller.
Seller’s working relationships with all of its distributors, sales
representatives, and customers are to a large extent personal to Seller or the
Forsbergs, and no guarantees can be made by Seller or Forsbergs that Purchaser
will enjoy the same relations.

    

    2.15.         Labor Relations. No
employee of the Seller is represented by a labor union, and no petition has been
filed or proceedings instituted by any employee or group of employees with any
labor relations board seeking recognition of a bargaining representative. There
are no matters pending before the National Labor Relations Board or any similar
state or local labor agency, and the Seller is neither engaged in nor subject to
any penalties or enforcement action in respect of any unfair labor practices,
and the Seller believes that it enjoys good labor relations. There are no
controversies or disputes pending between the Seller and any of its employees,
except for such controversies and disputes as do not and will not, individually
or in the aggregate, have a material adverse effect on the Transferred
Assets.

    

    2.16.         Environmental
Matters.

    

    
      	 	
              (a)

            	
              For
      purposes of this Section 2.16, the property of the Seller and Forsbergs
      shall mean the Real Property. Additionally, for purposes of this Section
      2.16, “Hazardous Substance” means (i) a “hazardous substance” as defined
      in 42 USC §9601(14), as amended from time to time, and all rules,
      regulations, and orders promulgated thereunder as in effect from time to
      time, (ii) “hazardous waste” as defined in 42 USC §6903(5), as amended
      from time to time, and all rules, regulations, and orders promulgated
      thereunder as in effect from time to time, (iii) if not included in (i) or
      (ii) above, “hazardous waste constituents” as defined in 40 CFR § 260.10,
      specifically including Appendix VII and VIII of Subpart D of 40 CFR § 261,
      as amended from time to time, and all rules, regulations, and orders
      promulgated thereunder as in effect from time to time, and (iv) “source,”
      “special nuclear,” or “by-product material” as defined in 42 USC §3011, et
      seq., as amended from time to time, and all rules, regulations, and orders
      promulgated thereunder as in effect from time to time. Further,
      “Requirements of Law” shall mean all applicable federal, state or local
      laws, statutes, ordinances, rules, regulations, or court or administrative
      orders or processes, or arbitrator’s orders or processes, including those
      applicable to the development, manufacture, or sale of the processes,
      technology, results, or products of the Seller applicable to air, soil,
      water, or noise pollution, or the production, storage, processing,
      utilization, labeling, transportation, disposal, emission, or other
      disposition of Hazardous Substances, any of the processes used or
      followed, results obtained, or products developed, made, or sold by the
      Seller including, without limitation, under CERCLA, the Toxic Substances
      Control Act of 1976, as amended, the Resource Conservation and Recovery
      Act of 1976, as amended, the Clean Air Act, as amended, the Federal Water
      Pollution Control

            

    

    

    

    

    ASSET
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              Act,
      as amended, or the Occupational Safety and Health Act of 1970, as
      amended.

            

    

    

    
      	 	
              (b)

            	
              To
      the best of Seller’s present knowledge and without investigation, and
      except as disclosed to the Purchaser, the Seller and Forsbergs are and
      have been in compliance with all Requirements of Law relating to Hazardous
      Substances and applicable to the Real
Property.

            

    

    

    
      	 	
              (c)

            	
              To
      the best of Seller’s present knowledge and without investigation, and
      except as disclosed to the Purchaser, in the report dated _______________,
      2009, from ALLWEST Testing & Engineering, undertaken as part of a
      Phase I Environmental Site Assessment (ESA) required by the Purchaser and
      its lender for certain financing of the Purchaser, detailing potential
      environmental concerns with regard to the Real Property, no discharge,
      release, spillage, uncontrolled loss, seepage, or filtration of any
      Hazardous Substance or any fuel, gasoline, or other petroleum product or
      by-product has occurred at the Real Property in an amount that violates
      any Requirements of Law.

            

    

    

    
      	 	
              (d)

            	
              Except
      for that reasonably necessary for the operation of its business and in
      conformity with historical practices, the Seller does not treat, generate,
      process, or transport any Hazardous Substance, nor has the Seller ever
      done so.

            

    

    

    
      	 	
              (e)

            	
              To
      the best of Seller’s present knowledge and without investigation, the
      Seller has in a timely manner obtained all Licenses and filed all reports
      required to be filed under or pursuant to any applicable environmental
      Requirements of Law.

            

    

    

    
      	 	
              (f)

            	
              To
      the best of Seller’s and Forsbergs’ present knowledge and without
      investigation, and except as noted in the report dated _______________,
      2009, from ALLWEST Testing & Engineering, undertaken as part of a
      Phase I Environmental Site Assessment (ESA) required by the Purchaser and
      its lender for certain financing of the Purchaser, detailing potential
      environmental concerns with regard to the Real Property, the Real Property
      does not contain any underground tanks for the storage of any Hazardous
      Substance or fuel oil, gasoline, or any other petroleum product or
      by-product.

            

    

    

    
      	 	
              (g)

            	
              The
      Seller has not received any notice of writs, injunctions, decrees, orders,
      or judgments outstanding, or suits, claims, actions, proceedings, or
      investigations instituted or threatened under any environmental
      Requirements of Law applicable to any of the Real
  Property,

            

    

    

    

    

    

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 11

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              (h)

            	
              The
      Seller has not received notice of any violation of any environmental,
      zoning, worker safety, or land use Requirements of Law relating to the
      Real Property.

            

    

    

    2.17.         Compliance with Laws.
Except as disclosed on Schedule 2.17 hereto, to the best of Seller’s and
Forsbergs’ present knowledge and without investigation, the Seller is not in
violation of, has not been charged with any violation of, or is not under any
investigation with respect to any charge concerning any violation of any
Requirements of Law, in which such violation either singly or in the aggregate
with other violations would have a significantly material adverse effect upon
the Transferred Assets. The Seller is not in default with respect to any order,
writ, injunction, or decree of any court, agency, or
instrumentality.

    

    2.18.         Licenses, Permits, and
Authorizations. To the best of Seller’s present knowledge and without
investigation, the Seller has all authorizations, licenses, and other permits
(collectively, “Licenses”) of (i) any governmental or regulatory agency, whether
federal, state, or local.

    

    2.19.         Inventory. The
Inventory Value will be determined in accordance with Section 1.4. The
inventories of the Seller are in good and merchantable condition and are
suitable and usable or saleable in the ordinary course of business for the
purposes intended. The Seller has reasonable inventories to conduct its business
consistent with past practices.

    

    2.20.         Property of Others.
No shortage exists in any finished goods owned by customers or suppliers of the
Seller and stored upon the Real Property or otherwise, or any other item of
personal property owned by another for which the Seller is accountable to
another. Without limiting the foregoing, all items of personal property for
which the Seller is accountable under any bailment agreement, consignment
contract, loan program, or otherwise are fully accounted for with no shortages
or missing or lost items, are in workable, usable, and saleable condition, and
have suffered no damage or deterioration.

    

    2.21.         Condition of Tangible
Assets. All of the facilities of the Seller and its equipment and other
tangible assets are in good condition and repair (ordinary wear and tear
excepted) and workable, usable, and adequate for the uses to which they have
been put by the Seller in the ordinary course of business, and none of such
facilities and none of such equipment or other tangible assets (exclusive of
obsolete items no longer used in the Seller’s business) is in need of other than
routine maintenance or repair. The Seller has not received any notice of any
violations of any Requirements of Law with respect to the Seller’s properties or
operations that have not been cured. Notwithstanding the foregoing, many of the
Transferred Assets are in a used condition and it cannot be known how and when
any item may break down or become the subject of additional maintenance,
therefore, ALL THE FACILITIES
OF THE SELLER AND ITS

    

    

    

    

    ASSET
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    EQUIPMENT
ARE SOLD “AS IS, WHERE IS” AND WITHOUT ANY WARRANTY, EXPRESS
OR IMPLIED.

    

    2.22.         Disclosure. No
representation or warranty by the Seller in this Agreement contains any untrue
statement of a significant and material fact or omits or will omit to state any
significant and material fact necessary to make the statements herein or therein
not misleading. There is no fact known to the Seller that materially adversely
affects the Transferred Assets.

    

    2.23          Purchaser’s Representations
and Warranties. The Purchaser agrees to operate its business and maintain
all its assets including the Transferred Assets and the Real Property in
accordance with all of the representations and warranties made by the Seller
and/or the Forsbergs in this Agreement, which shall apply to the Purchaser in
favor of the Seller and/or the Forsbergs for as long as any amount remains owing
on either of the Promissory Notes issued by the Purchaser at
Closing.

    

    2.24.         Brokerage. No broker
or finder has acted directly or indirectly for the Seller or any of their
Affiliates in connection with this Agreement or the transactions contemplated
hereby, and no broker or finder is entitled to any brokerage or finder’s fee or
other commission in respect thereof based in any way on the actions or
statements of, or agreements, arrangements, or understandings made with the
Seller or any of its Affiliates.

    

    ARTICLE
III

    

    REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER

    

    The Purchaser hereby represents and
warrants to the Seller as set forth below:

    

    3.1.           Corporate Organization
etc. The Purchaser is on the date hereof, and will be on the Closing
Date, a corporation duly organized, validly existing and in good standing under
the laws of the State of Idaho.

    

    3.2.           Authorization, etc.
The Purchaser has full corporate power and authority to enter into this
Agreement and the other Acquisition Documents to which it is or will be a party,
to perform its obligations hereunder and thereunder, and to carry out the
transactions contemplated hereby and thereby. The Board of Directors of the
Purchaser has taken, or will take before the Closing Date, all actions required
by law, its Articles of Incorporation, its By-Laws or otherwise to authorize (i)
the execution and delivery of this Agreement and the other Acquisition Documents
and (ii) the performance of its obligations hereunder and thereunder. This
Agreement has been duly executed and delivered by the Purchaser and, upon the
execution and delivery of the remaining Acquisition Documents by a duly
authorized officer of the Purchaser, the remaining Acquisition Documents will
have been duly executed and delivered by the Purchaser,

    

    

    ASSET
PURCHASE AGREEMENT, Page 13

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    and this
Agreement is, and such other Acquisition Documents will be, upon due execution
and delivery thereof, the legal, valid, and binding obligations of the
Purchaser, enforceable according to their terms (A) as such enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium, or similar
laws now or hereafter in effect relating to creditors’ rights, and (B) that the
remedy of specific enforcement and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought.

    

    3.3.           No Violation. None of
(i) the execution and delivery of this Agreement or any other Acquisition
Document by the Purchaser, (ii) the performance by the Purchaser of its
obligations hereunder or thereunder, or (iii) the consummation of the
transactions contemplated hereby or thereby will (A) violate any provision of
the Articles of Incorporation or By-Laws of the Purchaser, (B) violate, or be in
conflict with, or permit the termination of, or constitute a default under or
breach of, or cause the acceleration of the maturity of, any contract, debt, or
other obligation of the Purchaser, which violation, conflict, default, breach,
termination or acceleration, either individually or in the aggregate with all
other such violations, conflicts, defaults, breaches, terminations and
accelerations, would have a material adverse effect on the business, assets or
financial condition of the Purchaser, (C) require the consent of any other party
to, or result in the creation or imposition of any Lien upon any property or
assets of the Purchaser under any agreement or commitment to which the Purchaser
is a party or by which the Purchaser is bound, or (D) to the best knowledge and
belief of the Purchaser, violate any statute or law or any judgment, decree,
order, regulation, or rule of any court or governmental authority to which the
Purchaser is subject

    

    3.4.           Litigation. There is
no action pending or, to the best knowledge and belief of the Purchaser,
threatened against the Purchaser, or any properties or rights of the Purchaser,
that questions or challenges the validity of this Agreement or any of the other
Acquisition Documents, nor any action taken or to be taken by the Purchaser
pursuant hereto or thereto or in connection with the transactions contemplated
hereby or thereby and the Purchaser does not know of any such action,
proceeding, or investigation that may be asserted.

    

    3.5.           Disclosure. No
representation or warranty by the Purchaser in this Agreement contains or will
contain any untrue statement of a material fact or omits or will omit to state
any material fact necessary to make the statements herein not misleading. The
Purchaser shall operate Seller’s business and maintain its assets and the Real
Property in accordance with all of the representations and warranties made by
the Seller’s and/or the Forsbergs in this Agreement until such time as all
amounts due under both Promissory Notes detailed in this Agreement have been
paid in full.

    

    3.6.           Brokerage. No broker
or finder has acted directly or indirectly for the Purchaser or its Affiliates
in connection with this Agreement or the transactions contemplated hereby, and
no broker or finder is entitled to any brokerage or finder’s fee

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 14

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    or other
commission in respect thereof based in any way on the actions or statements of,
or the agreements, arrangements, or understandings made with the Purchaser or
its Affiliates.

    

    3.7.           Personal Guaranties.
Except for Greg Stewart (and his spouse, if any), whose Personal Guaranty shall
be in the form attached hereto as Schedule 3.7, no other person holding any
stock of other equity interest in the Purchaser, or any party affiliated with
the Purchaser, is giving a personal guaranty to Mountain West Bank or any
affiliate of said bank with respect to financing the purchase of any of the
Transferred Assets.

    

    ARTICLE
IV

    

    OBLIGATIONS
OF THE PARTIES

    

    The Seller hereby covenants and agrees
with the Purchaser and the Purchaser hereby covenants and agrees with the Seller
that:

    

    4.1.           Reasonable Access.
Prior to Closing, the Seller shall afford the Purchaser and its counsel,
accountants, and other authorized representatives reasonable access during
normal business hours to its property, books and records so that the Purchaser
and its advisors may have the opportunity to make such reasonable investigations
that pertain to the Closing of this transaction. With prior notice, the
Purchaser may contact employees of the Seller to discuss their employment by the
Purchaser and the present and future operation of the Seller’s business. The
Seller shall furnish to the Purchaser any additional financial and operating
data and other reasonable information as the Purchaser and its counsel,
accountants, and other authorized representatives shall from time to time
reasonably request. The Seller shall, upon reasonable request, provide the
Purchaser, its counsel, accountants and other authorized representatives with
such information concerning the Seller as may be reasonably necessary for the
Purchaser to verify the Seller’s performance of and compliance with its
representations and warranties herein contained. The Purchaser shall, for as
long as any amount remains owed on one or both of the Promissory Notes detailed
in this Agreement and upon reasonable request, provide the Seller and Forsbergs,
their counsel, accountant and other authorized representatives with such
information concerning the Purchaser and its operations of the business as may
be reasonably necessary for the Seller and Forsbergs to verify the Purchaser’s
performance of and compliance with its representations, warranties, and
covenants herein contained.

    

    4.2.           Conduct Before Closing
Date. Before the Closing Date, except as otherwise contemplated by this
Agreement or as permitted by the prior written consent of the Purchaser, but
without making any commitment on the Purchaser’s behalf, the Seller
shall:

    

    

    

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 15

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              (a)

            	
              conduct
      its business and operations only in the ordinary course, including,
      without limitation, maintaining inventories of raw materials, taken as a
      whole, at levels consistent with past
practice;

            

    

    

    
      	 	
              (b)

            	
              maintain
      the Transferred Assets in good condition, working order, and repair
      (except for ordinary wear and
tear);

            

    

    

    
      	 	
              (c)

            	
              perform
      its obligations in conformity with past practices under all contracts
      binding upon it and maintain all of its Licenses in good
      standing;

            

    

    

    
      	 	
              (d)

            	
              continue
      in effect the Insurance Policies (or similar coverage) referred to in
      Section 2.14 hereof;

            

    

    

    
      	 	
              (e)

            	
              to
      the extent that it is reasonably able, keep available the services of its
      current officers and employees;

            

    

    

    
      	 	
              (f)

            	
              to
      the extent that it is reasonably able, maintain and preserve the good will
      of the suppliers, customers, and others having business relations with it;
      and

            

    

    

    
      	 	
              (g)

            	
              before
      the Closing Date, upon request, consult with the Purchaser from time to
      time with respect to any significantly material change in the conduct of
      its business.

            

    

    

    
      	 	
              (h)

            	
              not
      become a party to any written contract which, if it had existed on the
      date hereof, would have come within the scope of the Disclosure Schedule
      pursuant to Section 2.13 hereof;

            

    

    

    4.3.           Further Assurances.
Before and after the Closing, each party hereto shall execute and deliver such
instruments and take such other actions as any other party may reasonably
request for the purpose of carrying out the intent of this Agreement and the
other Acquisition Documents. Each party hereto shall use its best efforts to
cause the transactions contemplated by this Agreement and the other Acquisition
Documents to be consummated, and, without limiting the generality of the
foregoing, to obtain all consents and authorizations of government agencies and
third parties and to make all filings with and give all notices to government
agencies and third parties that may be necessary or reasonably required to
effect the transactions contemplated by this Agreement and the other Acquisition
Documents. The Seller shall give prompt notice to the Purchaser, after receipt
thereof by the Seller, of (i) any notice of, or other communication relating to,
any default or event that, with notice or lapse of time or both, would become a
default under any indenture, instrument, or agreement material to the Seller, to
which the Seller is a party or by which the Seller is bound, and (ii) any notice
or other communication from any third party alleging that the consent of such
third party is or may be required in connection with the transactions
contemplated by this

    

    

    

    ASSET
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    Agreement
and the other Acquisition Documents. Each corporate party shall deliver to the
other, by the Closing Date, appropriate evidence of the approval of its Board of
Directors and stockholders (if required by law) of this Agreement and the
transactions contemplated hereby and thereby.

    

    4.4.           Confidentiality. The
parties to this Agreement hereby acknowledge and reconfirm the terms of that
certain Confidentiality Agreement entered into between them, as amended,
attached hereto as Exhibit “G”.

    

    ARTICLE
V

    

    CONDITIONS
TO PURCHASER’S OBLIGATIONS

    

    The obligation of the Purchaser under
this Agreement to consummate the Closing on the Closing Date shall be subject to
the satisfaction, on or before the Closing Date, of each of the following
conditions:

    

    5.1.           Representations and
Warranties True. The representations and warranties of the Seller and
Forsbergs contained herein shall be true and accurate as of the Closing Date,
except for changes permitted or contemplated by this Agreement, or those
occurring in the ordinary course of business.

    

    5.2.           No Material
Changes.

    

    
      	 	
              (a)

            	
              No
      portion of the Transferred Assets that are as a whole significantly
      material to the operation of the business of the Seller shall, after April
      11, 2007, and before the Closing Date, be damaged, destroyed, or taken by
      condemnation, whether or not covered by any Insurance
    Policy.

            

    

    

    
      	 	
              (b)

            	
              After
      April 11, 2007, and before the Closing Date, the Seller shall be subjected
      to changes of any kind or nature that either individually or in the
      aggregate have a significantly material adverse effect on the Transferred
      Assets.

            

    

    

    
      	 	
              (c)

            	
              No
      significant and material adverse change in the Transferred Assets shall
      have occurred after April 11, 2007, and be by its nature
      continuing.

            

    

    

    5.3.           Performance. The
Seller shall have performed and complied in all material respects with all
agreements, obligations, and conditions required by this Agreement or the other
Acquisition Documents to be performed or complied with by them on or before the
Closing Date. On the Closing Date and immediately prior to Closing, Purchaser
and Seller shall do a physical walk through to view the Transferred Assets and
verify their description, and as to inventory, verify that the inventory present
during a walk through by Purchaser prior to the Closing Date remains on the
premises or has been sold in the ordinary course of business.

    

    ASSET
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    5.4.           Consents. All filings
with and consents from government agencies required to consummate the
transactions contemplated hereby and by the other Acquisition Documents shall
have been made or obtained, except to the extent that making any such filing or
obtaining any such consent has been waived in writing by the Purchaser or the
failure to obtain any such consent or make any such filing would not have a
significant and material adverse effect on the Transferred Assets.

    

    5.5.           Closing Documents.
The Seller and Forsbergs shall have delivered, or caused to be delivered to the
Purchaser, the documents and instruments described below:

    

    
      	 	
              (a)

            	
              Copies
      of the resolutions adopted by the Boards of Directors of the Seller
      authorizing this Agreement and the other Acquisition Documents and the
      transactions contemplated hereby and
thereby.

            

    

    

    
      	 	
              (b)

            	
              Warranty
      Deed for the Real Property, and Title
Policy.

            

    

    

    
      	 	
              (c)

            	
              Bill
      of Sale for the Transferred Assets, including assignment of Trade Names in
      the form of Schedule 2.9 hereto.

            

    

    

    
      	 	
              (d)

            	
              A
      copy of Articles of amendment to the Articles of Incorporation of the
      Seller, duly authorized and executed and in form and substance, filed by
      the Seller with the Secretary of State of the State of Idaho, changing the
      Seller’s name to Forsberg Investments, Inc. (which purchaser hereby
      acknowledges does not include the Trade Name, any variation thereof, or
      any other word which could be reasonably confused therewith). Seller will
      have filed an Application for Reservation of Legal Entity Name with the
      Secretary of State of the State of Idaho, reserving the name “Mine
      Fabrication & Machine, Inc.” until Closing, at which time Seller shall
      deliver to Purchaser a notice of transfer of a reserved corporate name
      suitable for immediate filing by the Purchaser with the Secretary of State
      of the State of Idaho.

            

    

    

    
      	 	
              (e)

            	
              Acknowledgement
      that a total of $7,150.00 is to be applied to the first two payments on
      Promissory Note #1, being (1) Seller’s reimbursement to Purchaser for
      computer equipment ($1,000.00), (2) Seller’s reimbursement to Purchaser
      for and in consideration of any potential issues that could arise with
      respect to Seller’s and Forsbergs’ non-conformity with conditions
      specified in certain Business Development Permits, as more fully detailed
      in Schedule 2.17 hereto, for which Purchaser hereby agrees to indemnify
      and hold harmless Seller and Forsbergs ($5,000.00), and (3) Seller’s
      reimbursement for Purchaser’s prorata share of annual rent on that certain
      Lease detailed further in Schedule 2.5(1) hereto
  ($1,150).

            

    

    

    

    

    

    

    

    ASSET
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              (f)

            	
              List
      of Seller’s customers, vendors and employees, and a disc and/or hard
      copies of invoices and purchase orders containing the sales, pricing, and
      customer history of the Seller for a five (5) year period prior to
      Closing.

            

    

    

    
      	 	
              (g)

            	
              Such
      other documents or instruments as shall be reasonably requested by the
      Purchaser or its counsel.

            

    

    

    5.6.           Environmental Report.
If the Purchaser shall choose at its expense to retain an environmental
consulting firm to render an environmental audit report respecting the Real
Property and such firm renders a report that details violations of federal,
state, or local environmental Requirements of Law, the Seller shall have cured
such violations without warranty, therefore, the Purchaser shall have waived
such compliance with this Section 5.6; and Purchaser accepts the Real Property
in such form; provided however, in no event may such report be construed as
obligating the Seller to cure any such violation.

    

    ARTICLE
VI

    

    CONDITIONS
TO SELLER’S OBLIGATIONS

    

    The obligation of the Seller under this
Agreement to consummate the Closing on the Closing Date shall be subject to the
satisfaction, on or before the Closing Date, of each of the following
conditions:

    

    6.1.           Representations and
Warranties True. The representations and warranties of the Purchaser
contained herein, in the other Acquisition Documents (including, without
limitation, all schedules and exhibits hereto and thereto), and in all documents
delivered by the Purchaser, shall be true and accurate as of the Closing Date,
except for changes permitted or contemplated by this Agreement.

    

    6.2.           Performance. The
Purchaser shall have performed and complied in all material respects with all
agreements, obligations, and conditions required by this Agreement to be
performed or complied with by it on or before the Closing Date.

    

    6.3.           Consents. All filings
with and consents from government agencies required to consummate the
transactions contemplated hereby shall have been made or obtained unless the
failure to obtain any such consent or make any such filing would not have an
adverse effect on the Transferred Assets.

    

    6.4.           Closing Documents.
The Purchaser shall have delivered or caused to be delivered to the Seller the
documents and instruments described below:

    

    
      	 	
              (a)

            	
              The
      cash payment, Promissory Notes, Deed of Trust, and Security Agreement, all
      as detailed in Section 1.4(b).

            

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 19

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              (b)

            	
              A
      copy of the resolutions adopted by the Board of Directors of the Purchaser
      authorizing this Agreement and the transactions contemplated hereby and
      thereby, including but not limited to a specific reference to the
      convertibility of Promissory Note #2 into the Voting Common Stock of the
      Purchaser.

            

    

    

    
      	 	
              (c)

            	
              Assumption
      of all written contracts and open purchase orders of the Seller, as
      disclosed on Schedule 2.13.

            

    

    

    
      	 	
              (d)

            	
              The
      Personal Guaranty of Greg Stewart of the Purchaser’s Promissory
      Notes.

            

    

    

    
      	 	
              (e)

            	
              Such
      other documents or instruments as shall be reasonably requested by the
      Purchaser or its counsel.

            

    

    

    ARTICLE
VII

    

    CLOSING;
CLOSING DATE

    

    7.1.           Closing. The closing
(the “Closing”) will be held at ___________________

    _____________.m.
at the offices of First American Title Company, Inc., 415 North 7th Street,
Suite 1, Wallace, Idaho on or before April 3, 2009, or at such other time and
place as the parties hereto may mutually agree upon in writing (the “Closing
Date”), notwithstanding that the parties hereto will execute the Exhibits and
Schedules referred to herein on March 31, 2009.

    

    ARTICLE
VIII

    

    CERTAIN
POST-CLOSING COVENANTS

    

    8.1.           Access. Subsequent to
the Closing Date, the Purchaser shall, at the Seller’s expense, permit the
Seller, from time to time, to inspect and copy such books of account and other
records of the Purchaser and to utilize the services of the Purchaser’s or the
Seller’s employees, all as may be necessary or convenient to enable the Seller
to prepare and file tax returns and to confirm Purchaser’s ongoing compliance
with its obligations under any Deed of Trust or Security Agreement for either of
the Promissory Notes issues by Purchaser herein. Until the fourth anniversary of
the Closing Date, the Purchaser shall not, without the prior written consent of
the Seller or its successors in interest, to destroy or dispose of any such
records. Notwithstanding any of the foregoing, no covenant contained in this
Section 8.1 on the part of the Purchaser is intended to, and nothing herein
shall be construed to, benefit or confer any rights upon any person, firm, or
corporation other than the Seller.

    

    

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 20

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.2.           Use of Trade Name.
Commencing on the Closing Date, the Seller shall cease using the Trade Name as a
company name, or trade name.

    

    8.3.           Non-Competition. The
Purchaser, Forsbergs, and Seller agree that the Purchase Price is fixed on the
basis that the transfer of the Transferred Assets to the Purchaser would provide
the Purchaser with the full benefit and goodwill of the Seller as it existed on
the Closing Date, provided, however, that the Purchaser understands that the
Seller’s working relationships with all of its distributors, sales
representatives, and customers are to a large extent personal to the Forsbergs,
and no guarantees can be made by Seller or Forsbergs that Purchaser will enjoy
the same relations. The Seller and Forsbergs acknowledge that it is proper for
the Purchaser to have assurance that the value of the Transferred Assets will
not be diminished by acts of the Seller or Forsbergs after the Closing Date.
Accordingly, the Seller and Forsbergs covenant and agree that, commencing on the
Closing Date and ending five years from the Closing Date, it will not, within a
100 mile radius of the City of Kellogg, Shoshone County, Idaho (i) directly or
indirectly compete with, or own, manage, operate, or control or participate in
the ownership, management, operation or control of, or provide consulting
services to, any business, firm, corporation, partnership, person,
proprietorship or other entity which is conducting any business which competes
with the business of the Seller as constituted on the Closing Date (the
“Restricted Business”), (ii) directly or indirectly solicit employment by any
person, partnership, corporation or other entity of any of the employees,
consultants, agents, or independent contractors of the Seller (for this purpose
the terms “employees”, “consultants”, “agents”, and “independent contractors”
shall include any persons having such status with regard to the Seller at any
time during the six (6) months preceding any solicitation in question), or (iii)
solicit, interfere with, or endeavor to entice away from the Seller, on behalf
of any person, partnership, corporation, or other entity, any customer of the
Restricted Business of the Seller. The foregoing provisions shall not apply to
investments in shares of stock of Purchaser or of a corporation traded on a
national securities exchange or on the national over-the-counter market. If the
Seller commits a breach, or threatens to commit a breach, of any of the
provisions of this Section 8.3, the Purchaser shall have the right and remedy,
in addition to any others, to have the provisions of this Section 8.3
specifically enforced by any court having equity jurisdiction, together with an
accounting therefor, it being acknowledged and understood by the Seller that any
such breach or threatened breach will cause irreparable injury to the Purchaser
and that money damages will not provide an adequate remedy
therefor.

    

    ARTICLE
IX

    

    INDEMNIFICATION

    

    9.1.           Survival.
Notwithstanding (i) the making of this Agreement, (ii) any examination made by
or on behalf of the parties hereto, and (iii) the Closing hereunder, (A) the
representations and warranties of the parties contained herein or in
any

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 21

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    document
delivered pursuant hereto or in connection herewith shall survive until the
fifth anniversary of the Closing Date, except for the representations and
warranties made in Section 2.16 hereof (Environmental Matters), and Section 2.11
hereof (Tax Returns and Payments), which in each case, shall survive until
expiration of the applicable statute of limitations for the underlying cause of
action and (B) the covenants and agreements required to be performed after the
Closing pursuant to any provision of this Agreement, including this Article 9,
shall survive until fully performed or fulfilled. No action for indemnification
pursuant to Sections 9.2(c) or 9.3(c) may be brought after the applicable
expiration date, provided, however, that if before such date one party hereto
has notified the other party hereto of a claim for indemnity hereunder (whether
or not formal legal action shall have been commenced based upon such claim),
such claim shall continue to be subject to indemnification in accordance
herewith.

    

    9.2.           Indemnification by the
Seller and Forsbergs. The Seller and Forsbergs, its successors, and
assigns shall indemnify and hold the Purchaser and its successors and assigns
harmless in respect of any and all claims, losses, damages, liabilities, and
expenses (including, without limitation, settlement costs and legal, accounting,
and other expenses in connection therewith) (collectively, the “Damages”)
incurred by the Purchaser and its successors and assigns in connection with each
and all of the following:

    

    
      	 	
              (a)

            	
              Any
      claim by any person or other entity for any broker’s or finder’s fee or
      similar fee charged for commission that arises from any action, statement,
      or commitment made by the Seller or its agents or
    Affiliates.

            

    

    

    
      	 	
              (b)

            	
              Any
      breach or other failure to perform any covenant, agreement, or obligation
      of the Seller contained in this Agreement, any other Acquisition Document
      or any other instrument, including all certificates, contemplated hereby
      or thereby.

            

    

    

    
      	 	
              (c)

            	
              Any
      breach of any representation or warranty by the Seller contained in this
      Agreement, any other Acquisition Document or any other instrument,
      including all certificates, contemplated hereby or
  thereby.

            

    

    

    
      	 	
              (d)

            	
              Any
      breach or other failure to perform fully before the Closing Date the
      Seller’s contractual obligations under items disclosed pursuant to Section
      2.13(a)(vi) hereof.

            

    

    

    
      	 	
              (e)

            	
              Any
      damages (including, without limitation, costs of response, removal,
      remediation, corrective action, property damage, personal injury, damage
      to natural resources, settlement, and attorneys’ fees) paid by the
      Purchaser and accruing from the operations of the Seller, or the
      operations of the business at any time before the Closing Date and solely
      attributable to the Transferred
Assets.

            

    

    

    

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 22

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              (f)

            	
              Any
      liability to employees or to third parties for personal injury or death or
      damage to property arising out of or occurring in connection with products
      sold or services rendered by the Seller on or before the Closing Date in
      excess of, not covered by, and not deductible from the Insurance
      Policies.

            

    

    

    
      	 	
              (g)

            	
              All
      claims made by former or current employees of the Seller alleging the
      occurrence of, or arising out of, an allegation relating to any breach of
      any fiduciary obligation before the Closing Date under any employee
      benefit plan.

            

    

    

    9.3.           Indemnification by the
Purchaser. The Purchaser and its successors and assigns shall indemnify
the Seller and its successors and assigns in respect of any and all Damages
incurred by the Seller and its successors and assigns in connection with each
and all of the following:

    

    
      	 	
              (a)

            	
              The
      claim by any person for any broker’s or finder’s fee or similar fee
      charged for commission that arises from any actions, statements, or
      commitments made by the Purchaser or its agents or
    Affiliates.

            

    

    

    
      	 	
              (b)

            	
              The
      breach or other failure to perform any covenant, agreement, or obligation
      of the Purchaser contained in this Agreement or any other Acquisition
      Document or any other instrument, including all certificates contemplated
      hereby or thereby.

            

    

    

    
      	 	
              (c)

            	
              Any
      breach of any representation or warranty by the Purchaser contained in
      this Agreement or any other Acquisition Document or any other instrument,
      including all certificates, contemplated hereby or
  thereby.

            

    

    

    
      	 	
              (d)

            	
              Any
      breach or other failure to perform fully perform any agreement that is
      required to be disclosed pursuant to Section 2.13(a)(vi)
      hereof.

            

    

    

    
      	 	
              (e)

            	
              Any
      damages (including, without limitation, costs of response, removal,
      remediation, corrective action, property damage, personal injury, damage
      to natural resources, settlement, and attorneys’ fees) paid by the Seller
      or Forsbergs and accruing from the operations of the Purchaser, or the
      operations of the business at any time after the Closing date and solely
      attributable to the Transferred
Assets.

            

    

    

    
      	 	
              (f)

            	
              Any
      liability to employees or to third parties for personal injury or death or
      damage to property arising out of or occurring in connection with products
      sold or services rendered by the Purchaser after the Closing Date in
      excess of, not covered by, and not deductible from the Insurance
      Policies.

            

    

    

    

    

    

    

    ASSET
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              (g)

            	
              All
      claims made by former or current employees of the Purchaser alleging the
      occurrence of, or arising out of, an allegation relating to any breach of
      any fiduciary obligation after the Closing Date under any employee benefit
      plan, provided, however, Purchaser has no obligation to continue any
      employee benefit plan implemented by Seller prior to the Closing
      date.

            

    

    

    9.4.           Notice and Defense of
Claim. Whenever any claim shall arise for indemnification hereunder, the
party entitled to indemnification (the “Indemnified Party”) shall provide
written notice to the other party (the “Indemnifying Party”) within sixty (60)
days of becoming aware of the right to indemnification and, as expeditiously as
possible thereafter, the facts constituting the basis for such claim. In
connection with any claim giving rise to indemnity hereunder, resulting from or
arising out of any claim or legal proceeding by a person who is not a party to
this Agreement, the Indemnifying Party, at its sale cost and expense and upon
written notice to the Indemnified Party, may assume the defense of any such
claim or legal proceeding with counsel reasonably satisfactory to the
Indemnified Party. The Indemnified Party shall be entitled to participate in the
defense of any such action, with its counsel and at its own expense. If the
Indemnifying Party does not assume the defense of any such claim or litigation
resulting therefrom, the Indemnified Party may, but shall not be obligated to,
defend against such claim or litigation in such manner as it may deem
appropriate including, but not limited to, settling such claim or litigation,
after giving notice of it to the Indemnifying Party, on such terms as the
Indemnified Party may deem appropriate and no action taken by the Indemnified
Party in accordance with such defense and settlement shall relieve the
Indemnifying Party of its indemnification obligations herein provided with
respect to any Damages resulting therefrom.

    

    ARTICLE
X

    

    TERMINATION

    

    10.1.         Termination. This
Agreement may be terminated at any time before the Closing Date:

    

    
      	 	
              (a)

            	
              by
      mutual written consent of the Purchaser and the
  Seller;

            

    

    

    
      	 	
              (b)

            	
              by
      either the Purchaser or the Seller if the Closing has not occurred on or
      before April 3, 2009, provided that this provision shall only be available
      to any party who has, in good faith, made all reasonable efforts to Close;
      and

            

    

    

    
      	 	
              (c)

            	
              by
      either the Purchaser or the Seller if there has been a material breach on
      the part of the other party in any material representation, warranty or
      covenant set forth in this Agreement that is not cured within ten (10)
      business days after such other party has been notified of the intent to
      terminate this Agreement pursuant to this clause 10.1
  (c).

            

    

    

    

    ASSET
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    10.2.         Effect of
Termination. In the event of termination of this Agreement as expressly
permitted under Section 10.1 hereof, this Agreement shall forthwith become void
(except for this Section 10.2 hereof) and there shall be no liability arising
from this Agreement on the part of either the Seller, the Purchaser, or their
respective officers, directors or Affiliates; provided, however, if such
termination occurs pursuant to Section 10.1 (b or c) and resulted from the
material misrepresentation or material breach by a party of the covenants of
such party contained in this Agreement, such party shall be fully liable for any
and all Damages sustained or incurred as a result of such breach. In the event
of termination hereunder before the Closing, each party shall return promptly to
the other Party all documents, work papers, and other material of the other
party furnished or made available to such party or its representatives or agents
and all copies thereof.

    

    ARTICLE
XI

    

    OTHER
AGREEMENTS

    

    11.1.         Amendment and Modification;
Waiver of Compliance. Subject to the applicable law, this Agreement may
be amended, modified, and supplemented only by written agreement signed by the
Purchaser and the Seller. Any failure by any party to this Agreement to comply
with any obligation, covenant, agreement, or condition contained herein may be
expressly waived in writing by the other parties hereto, but such waiver or
failure to insist upon strict compliance shall not operate as a waiver of, or
estoppel with respect to, any subsequent or other failure. Whenever this
Agreement requires or permits consent by or on behalf of any party hereto, such
consent shall be given in a manner consistent with the requirements for a waiver
of compliance as set forth in this Section 11.1.

    

    11.2          Disclosure of Confidential
Information. Forsbergs have fully disclosed, or will disclose to the
Purchaser, any reasonable information deemed by Purchaser to be materially
necessary to operating the Transferred Assets of the Seller upon the Purchaser’s
request for a period of one (1) year following the Closing Date.

    

    11.3          Mutual Release. At
Closing and not before, Purchaser, Seller, and Forsbergs shall execute a Mutual
Release and Settlement of All Claims arising from the Stock Purchase and Sale
Agreement, attached hereto as Exhibit “H”.

    

    11.4.         Fees and Expenses.
Except as otherwise provided herein, each of the parties hereto will pay its own
fees and expenses (including attorneys’ and accountants’ fees, legal costs, and
expenses) incurred in connection with this Agreement and the consummation of the
transactions contemplated hereby and thereby. Except for the allocation of
personal and real property tax among the assets and real property,

    

    

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 25

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    respectively,
Seller and Purchaser shall share equally in all closing costs. Seller shall pay
for a standard title policy. Purchaser shall pay for the lender policy
portion.

    

    11.5.         Notices. All notices,
requests, demands, and other communications required or permitted hereunder
shall be in writing and shall be deemed to have been given if delivered by hand,
overnight courier, or mailed certified or registered mail with postage prepaid
as follows:

    

    
      	 
      	 
      	
              (a)

            	
              If
      to the Purchaser, to:

            
	 
      	 
      	 
      	 
      	
              Attention:

            	
              Greg
      Stewart

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              United
      Mine Services, Inc.

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              202
      S. Division Street

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              P.O.
      Box 828

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              Pinehurst,
      ID 83850

            
	 
      
	 
      	 
      	
              (b)

            	
              If
      to the Seller, to:

            
	 
      	 
      	 
      	 
      	
              Attention:

            	
              Fred
      A. Forsberg

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              Forsberg
      Investments, Inc,

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              P.O.
      Box 1081

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              Pinehurst,
      ID 83850

            
	 
      
	 
      	 
      	 
      	 
      	
              With
      a copy to:

            
	 
      	 
      	 
      	 
      	 
      	
              Daniel
      B. DeRuyter

            
	 
      	 
      	 
      	 
      	 
      	
              Douglas,
      Eden, Phillips, DeRuyter & Stanyer, P.S.

            
	 
      	 
      	 
      	 
      	 
      	
              422
      W. Riverside Ave., Suite 909

            
	 
      	 
      	 
      	 
      	 
      	
              Spokane,
      WA 99201

            
	 
      
	 
      	 
      	
              (c)

            	
              If
      to Forsbergs, to:

            
	 
      	 
      	 
      	 
      	
              Attention:

            	
              Fred
      A. and Linda M. Forsberg

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              P.O.
      Box 1081

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              Pinehurst,
      ID 83850

            
	 
      
	 
      	 
      	 
      	 
      	
              With
      a copy to:

            
	 
      	 
      	 
      	 
      	 
      	
              Daniel
      B. DeRuyter

            
	 
      	 
      	 
      	 
      	 
      	
              Douglas,
      Eden, Phillips, DeRuyter & Stanyer, P.S.

            
	 
      	 
      	 
      	 
      	 
      	
              422
      W. Riverside Ave., Suite 909

            
	 
      	 
      	 
      	 
      	 
      	
              Spokane,
      WA 99201

            

    

    

    11.6.         Public Announcements.
Neither the Purchaser nor the Seller nor the representatives of any of them
shall make any public announcement with respect to this Agreement, the other
Acquisition Documents, or the transactions contemplated hereby or thereby
without the prior written consent of the other parties.

    

    

    

    ASSET
PURCHASE AGREEMENT, Page 26

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.7.         Assignment. This
Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and permitted
assigns, but neither this Agreement nor any of the rights, interest, or
obligations hereunder shall be assigned by any of the parties hereto without the
prior written consent of all the other parties.

    

    11.8.    
    Governing Law. This
Agreement and the legal relations between the parties hereto shall be governed
by, and construed in accordance with, the laws of the State of Idaho, without
reference to the conflict of laws principles thereof.

    

    11.9.         Counterparts. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

    

    11.10.   
   Headings. The
headings contained in this Agreement are inserted for convenience only and shall
not constitute a part hereof.

    

    11.11.    
  Entire
Agreement. This Agreement, including the Disclosure Schedule, the
exhibits hereto and other documents referred to herein which form a part hereof,
embody the entire agreement and understanding of the parties hereto in respect
of the subject matter contained herein and supersede all prior agreements and
understandings between the parties with respect to such subject matter,
including, by way of illustration and not by limitation, any term sheet agreed
to by the parties hereto prior to the date hereof. There are no restrictions,
promises, warranties, covenants, or undertakings other than those expressly set
forth or referred to herein.

    

    11.12.       Definitional
Provisions. All terms defined in this Agreement shall have such defined
meanings when used in any exhibit, schedule, or any certificate or other
document made or delivered pursuant hereto or thereto, unless otherwise defined
therein.

    

    11.13        Attorney’s Fees. In
the event of any breach of this Agreement, the party responsible for the breach
agrees to pay reasonable attorney’s fees and costs, including, but not limited
to the costs of service of notices incurred by the other party. The prevailing
party in any suit instituted arising out of this Agreement shall be entitled to
receive reasonable attorney’s fees and costs incurred in such suit or
proceedings.

    

    11.14        Arbitration of
Disputes. Any controversy or c1airn arising out of or relating to
Inventory Value shall be by exclusive and binding arbitration, by a
single

    

    

    ASSET
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    waived.
Notwithstanding any provision of the aforesaid Rules or Statutes to the
contrary, the refusal or failure of any party to appear at or participate in any
hearing or other portion of any arbitration proceeding pursuant to this
paragraph shall not prevent any such hearing or proceeding from going forward,
and the Arbitrator is empowered to make a decision or render an award, or both,
ex parte, which shall be binding on such party as fully as though such party had
fully participated in such hearing or proceeding. As provided in Section 11.13,
the prevailing party in any arbitration proceeding pursuant to this paragraph
shall be entitled to an award for such party’s expenses and attorneys’ fees in
connection therewith, and the cost of conducting the arbitration proceeding
shall be borne by the losing party.

    

    11.15        Legal Representation.
In the negotiation and preparation of this Agreement, the Seller and Forsbergs
have been represented by Daniel B. DeRuyter, Ryan M. Douglas, and the law firm
of Douglas, Eden, Phillips, DeRuyter & Stanyer, P.S. 422 W. Riverside
Avenue, Suite 909, Spokane, WA 99201; and the Purchaser has been represented by
Michael Reagan and the law firm Liesche & Reagan, P.A., 1044 Northwest Blvd,
Suite D, Coeur d’Alene, ID 83814.

    

    

    

    [this
space intentionally left blank]

    

    

     

    

    

    

    

    

    

    

    

    

    ASSET
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    IN WITNESS, the parties hereto have
caused this Agreement to be duly executed on the day and year first above
stated.

    

    
      	 
      	
              [Seller]

            	
              By:

            	
              FRED A.
      FORSBERG

            
	 
      	 
      	 
      	
              Mine
      Fabrication & Machine, Inc.

            
	 
      
	 
      	 
      	
              Name:
      Fred A. Forsberg

            
	 
      
	 
      	 
      	
              Title:
      President

            
	 
      
	 
      
	 
      	 
      	
              By:

            	
              FRED A.
      FORSBERG

            
	 
      	 
      	 
      	
              Fred
      A. Forsberg

            
	 
      
	 
      	 
      	
              By:

            	
              LINDA M.
      FORSBERG

            
	 
      	 
      	 
      	
              Linda
      M. Forsberg

            
	 
      
	 
      
	 
      	 
      	
              The
      Family Trust of Fred A. Forsberg

            
	 
      	 
      	
              and
      Linda M. Forsberg dated

            
	 
      	 
      	
              September
      26, 2008

            
	 
      
	 
      	 
      	
              By:

            	
              FRED A.
      FORSBERG

            
	 
      	 
      	 
      	
              Fred
      A. Forsberg, Co-Trustee

            
	 
      
	 
      	 
      	
              By:

            	
              LINDA M.
      FORSBERG

            
	 
      	 
      	 
      	
              Linda
      M. Forsberg, Co-Trustee

            
	 
      
	 
      
	 
      	
              [Purchaser]

            	
              By:

            	
              GREG
      STEWART

            
	 
      	 
      	 
      	
              United
      Mine Services, Inc.

            
	 
      
	 
      	 
      	
              Name:
      Greg Stewart

            
	 
      
	 
      	 
      	
              Title:
      President & CEO

            

    

    

    

    

    

    

    

    

    

    

    

    ASSET
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    PROMISSORY NOTE
#1

    

    
      	
              $485,000.00

            	
              Wallace,
      Idaho

            
	 
      	
              March
      31, 2009

            

    

    

    This PROMISSORY NOTE (“Note”) is
made effective as of the date hereof, by UNITED MINE SERVICES, INC., an
Idaho Corporation (the “Payor”), in favor of FORSBERG INVESTMENTS, INC., an
Idaho Corporation formerly known as Mine Fabrication & Machine, Inc. (the
“Payee”).

    

    FOR VALUE RECEIVED, Payor promises to
pay to Payee, or order, the sum of Four Hundred Eighty-five Thousand and 00/100
Dollars ($485,000.00), together with interest thereon, all as hereinafter
provided.

    

    1.           Interest. All sums
from time to time owing hereon shall bear interest from the date hereof at the
rate of Four and 25/100 percent (4.25%) per annum.

    

    2.           Payment. Principal
and interest shall be payable from the date hereof as follows: On May 10, 2009,
a payment of $6,535.09 (consisting of $4,250.66 of principal and $2,284.43 of
interest) shall be payable: thereafter, principal and interest shall be payable
in equal monthly payments of Five Thousand Nine Hundred Sixty-eight and 37/100
Dollars ($5,968.37), with the first such payment becoming due June 10, 2009, and
subsequent payments becoming due on the tenth day of each month thereafter; such
payment schedule representing full amortization of the principal and interest
over Ninety-six (96) months and ten (10) days. Notwithstanding any other
provision contained in this Note, the first two (2) payments due hereunder shall
be reduced by a sum total of Seven Thousand One Hundred Fifty Dollars
($7,150.00) from the amount stated in this Paragraph 2, and as provided in
Section 5.5(e) of the Asset Purchase Agreement.

    

    3.           Prepayment. Any part
of the principal may be prepaid, without written consent of Payee; provided,
however, that the effect of any such prepayment shall be to shorten the term of
this Note and not to reduce the amount of any installment otherwise due after
the prepayment date, and provided further, that any prepayment shall be applied
first to accrued interest, then to principal.

    

    4.           Payee’s Remedies on
Default. Upon the happening, at any time, of any of the following
events:

    

    
      	 	
              4.1

            	
              Default
      in the payment of any installment when due under this Note and Payor’s
      failure to cure such default within ten (10) days after notice to
      Payor;

            

    

    

    
      	 	
              4.2

            	
              Default
      in the payment of any installment when due under that certain Promissory
      Note #2, dated March 31,2009, and Payor’s failure to cure such default
      within ten (10) days after notice to
Payor;

            

    

    

    

    

    

    1

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              4.3

            	
              Default
      in the payment of any installment when due under any Note, Security
      Agreement, or Deed of Trust given to Mountain West Bank as security in
      connection with the financing of the transaction detailed in that certain
      Asset Purchase Agreement, entered into by Payor, Payee, and Fred A.
      Forsberg and Linda M. Forsberg, on March 31,2009 (“Purchase
      Agreement”);

            

    

    

    
      	 	
              4.4

            	
              Default
      in the performance by Payor of any other obligation set forth in the Deed
      of Trust securing this Note, Security Agreement securing this Note, or
      that Purchase Agreement, and Payor’s failure to cure such default within
      thirty (30) days after written notice to
Payor;

            

    

    

    
      	 	
              4.5

            	
              The
      bankruptcy or insolvency of, assignment for the benefit of creditors by,
      or the institution of proceedings under the Bankruptcy Act by Payor and
      filing of any involuntary petition in bankruptcy against Payor which is
      not dismissed within thirty (30)
days;

            

    

    

    
      	 	
              4.6

            	
              The
      levy of any writ of attachment or execution against any property owned by
      Payor, which levy is not removed within thirty (30)
  days;

            

    

    

    
      	 	
              4.7

            	
              The
      appointment of any receiver with respect to any property by Payor, which
      receiver is not removed within thirty (30)
days;

            

    

    

    then, in
such event, Payee may, without notice or demand, commence legal action to
collect all amounts due hereunder including all costs of
collection.

    

    5.           Late Payment. If
Payor shall fail to make any payment of principal and interest required
hereunder and such failure shall continue for a period of ten (10) days, Payor
shall pay Payee the amount of Three Hundred Dollars ($300) as a late payment
penalty. Any such late payment shall be deemed to be amounts due hereunder, and
shall be in addition to any payment of principal and interest owing
hereon.

    

    6.           Security. Payor
agrees that this Note and sums evidenced hereby are secured by the following:
(1) a Security Agreement dated March 31, 2009, executed and delivered by Payor
to Payee; and (2) a Deed of Trust dated March 31, 2009. Payor agrees to perform
and comply with all of the agreements, terms and conditions of the
security.

    

    7.           Cross Default. Upon
the occurrence of any event of default by Payor as described in Paragraph 4
above, such default shall also be construed as a default of that Deed of Trust
and Security Agreement entered into between the Payor and Payee, unless said
default is timely cured as detailed herein, without adverse impact to this
Promissory Note, or cost or liability to Payee (“Cross Default”).

    

    8.           Escrow. All payments
becoming due hereunder shall be made in lawful money of the United States and
shall be delivered to First American Title Company, as escrow agent, located at,
415 Seventh Street, Suite 1, Wallace, ID, 83873 (“Escrow Agent”). In connection
with Payor’s execution of this Promissory Note dated, Payor has executed a
Security Agreement (“Security Agreement”) and Deed of Trust (“Deed of Trust”),
both dated March 31, 2009, such Security Agreement and Deed of Trust
have

    

    2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    been
deposited with the escrow agent, and this Note shall be deposited with the
Escrow Agent. The Escrow Agent is hereby authorized to receive and disburse
monies under the terms of this Note and to issue receipts therefore. Each of the
parties hereby agrees to pay one-half (1/2) of the set-up and periodic escrow
fee charged by the Escrow Agent.

    

    9.         Miscellaneous and
Procedure.

    

    
      	 	
              9.1

            	
              Application of
      Payments. All payments under this Note shall be applied first to
      late penalty, if any, then to interest due to the date of payment and the
      balance to principal.

            

    

    

    
      	 	
              9.2

            	
              Notice. All
      notices required under this Note shall be deemed to have been duly given
      if sent by registered or certified mail, postage prepaid, return receipt
      requested, to the following
addresses:

            

    

    

    
      	 
      	
              To
      Payor:

            	
              Attn:
      Greg Stewart

            
	 
      	 
      	
              United
      Mine Services

            
	 
      	 
      	
              202
      S. Division Street

            
	 
      	 
      	
              PO
      Box 828

            
	 
      	 
      	
              Pinehurst,
      ID 83850

            
	 
      
	 
      	
              To
      Payee:

            	
              Forsberg
      Investments, Inc.

            
	 
      	 
      	
              PO
      Box 1081

            
	 
      	 
      	
              Pinehurst,
      ID 83850

            

    

    

    
      	 	
              9.3

            	
              Attorneys’
      Fees. Should legal action be required to enforce or interpret any
      of the provisions of this Note, the prevailing party shall be entitled to
      all costs and reasonable attorneys’ fees incurred in connection therewith
      from the nonprevailing party.

            

    

    

    
      	 	
              9.4

            	
              Conflict of
      Provisions. In the event of a conflict in any of the provisions in
      this Note and in the Security Agreement or Deed of Trust, the terms of the
      Security Agreement or Deed of Trust shall
  prevail.

            

    

    

    
      	 	
              9.5

            	
              Venue. Any
      action brought to enforce or interpret this Note may, at the option of
      Payee, be brought in Shoshone County,
Idaho.

            

    

    

    
      	 	
              9.6

            	
              Governing Law.
      This Note shall be construed in accordance with the laws of the State of
      Idaho.

            

    

    

    
      	 	
              9.7

            	
              Transfer to
      Forsbergs. Notwithstanding anything to the contrary, and not in the
      elimination of any right of Payee herein, upon written notice to the
      Escrow Agent Payee’s interest in the Note may at any time be assigned to
      Fred A. Forsberg and Linda M. Forsberg, or to either of
    them.

            

    

    

    
      	 
      	
              UNITED
      MINE SERVICES, INC.

            
	 
      
	 
      	
              GREG
      STEWART

            
	 
      	
              By:
      Greg Stewart, President & CEO

            

    

    

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    ACKNOWLEDGEMENT
OF REDUCTION IN PAYMENTS TO BE MADE ON

    PROMISSORY
NOTE #1

    

    

    Pursuant
to Paragraph 5.5(e) of that certain Asset Purchase Agreement dated effective
March 31, 2009, Seller hereby acknowledges that a reduction in payments in the
total amount of $7,150 is to be applied towards the first two payments due under
that certain Promissory Note #1 dated March 31, 2009, as follows:

    

    
      	
               
      

            	
              1.

            	
              The
      first payment due under said Promissory Note #1, due to Seller on May
      10, 2009, in an amount of $6,535.09, shall be reduced to
    $0.

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      second payment due under said Promissory Note #1, due to Seller on June
      10, 2009, in an amount of $5,968.37, shall be reduced by $614.91, to
      $5,353.46.

            

    

    

    

    Dated
this 31 day of March, 2009.

    

    

    
      
        	 
      	
                [Seller]

              	
                By:

              	
                FRED A.
      FORSBERG

              
	 
      	 
      	 
      	
                Forsberg
      Investments, Inc.

              
	 
      
	 
      	 
      	
                Name:
      Fred A. Forsberg

              
	 
      
	 
      	 
      	
                Title:
      President

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    PROMISSORY NOTE
#2

    

    
      	
              $500,000.00

            	
              Wallace,
      Idaho

            
	 
      	
              March
      31, 2009

            

    

    

    This PROMISSORY NOTE (“Note”) is
made effective as of the date hereof, by UNITED MINE SERVICES, INC., an
Idaho Corporation (the “Payor”), in favor of FORSBERG INVESTMENTS, INC., an
Idaho Corporation formerly known as Mine Fabrication & Machine, Inc. (the
“Payee”).

    

    FOR VALUE RECEIVED, Payor promises to
pay to Payee, or order, the sum of Five Hundred Thousand Dollars ($500,000.00),
together with interest thereon, all as hereinafter provided.

    

    1.           Interest. All sums
from time to time owing hereon shall bear interest from the date hereof at the
rate of Four and 25/100 percent (4.25%) per annum.

    

    2.           Payment. Principal
and interest shall be payable in a lump sum payment of Six Hundred Ninety-seven
Thousand Five Hundred Fifty-five and 09/100 Dollars ($697,555.09), with said
lump some payment due Ninety-six (96) months from the date hereof, such lump sum
payment representing full amortization of the principal and interest over
Ninety-six (96) months.

    

    3.           Prepayment. Any part
of the principal may be prepaid, without written consent of Payee; provided,
however, that any prepayment shall be applied first to accrued interest, then to
principal.

    

    4.           Payee’s Remedies on
Default. Upon the happening, at any time, of any of the following
events:

    

    
      	 	
              4.1

            	
              Default
      in the payment of any installment when due under this Note and Payor’s
      failure to cure such default within ten (10) days after notice to
      Payor;

            

    

    

    
      	 	
              4.2

            	
              Default
      in the payment of any installment when due under that certain Promissory
      Note #1, dated March 31,2009, and Payor’s failure to cure such default
      within ten (10) days after notice to
Payor;

            

    

    

    
      	 	
              4.3

            	
              Default
      in the payment of any installment when due under any Note, Security
      Agreement, or Deed of Trust given to Mountain West Bank as security in
      connection with the financing of the transaction detailed in that certain
      Asset Purchase Agreement, entered into by Payor, Payee, and Fred A.
      Forsberg and Linda M. Forsberg, on March 31, 2009 (“Purchase
      Agreement”);

            

    

    

    1

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              4.4

            	
              Default
      in the performance by Payor of any other obligation set forth in the Deed
      of Trust securing this Note, Security Agreement securing this Note, or
      that Purchase Agreement, and Payor’s failure to cure such default within
      thirty (30) days after written notice to
Payor;

            

    

    

    
      	 	
              4.5

            	
              The
      bankruptcy or insolvency of, assignment for the benefit of creditors by,
      or the institution of proceedings under the Bankruptcy Act by Payor and
      filing of any involuntary petition in bankruptcy against Payor which is
      not dismissed within thirty (30)
days;

            

    

    

    
      	 	
              4.6

            	
              The
      levy of any writ of attachment or execution against any property owned by
      Payor, which levy is not removed within thirty (30)
  days;

            

    

    

    
      	 	
              4.7

            	
              The
      appointment of any receiver with respect to any property by Payor, which
      receiver is not removed within thirty (30) days; then, in such event,
      Payee may, without notice or demand, commence legal action to collect all
      amounts due hereunder including all costs of
  collection.

            

    

    

    5.           Late Payment. If
Payor shall fail to make any payment of principal and interest required
hereunder and such failure shall continue for a period of ten (10) days, Payor
shall pay Payee the amount of Three Hundred Dollars ($300) as a late payment
penalty. Any such late payment shall be deemed to be amounts due hereunder, and
shall be in addition to any payment of principal and interest owing
hereon.

    

    6.           Security. Payor
agrees that this Note and sums evidenced hereby are secured by the following:
(1) a Security Agreement of dated March 31, 2009, executed and delivered by
Payor to Payee; and (2) a Deed of Trust dated March 31, 2009. Payor agrees to
perform and comply with all of the agreements, terms and conditions of the
security.

    

    7.           Cross Default. Upon
the occurrence of any event of default by Payor as described in Paragraph 4
above, such default shall also be construed as a default of that Deed of Trust
and Security Agreement entered into between the Payor and Payee, unless said
default is timely cured as detailed herein, without adverse impact to this
Promissory Note, or cost or liability to Payee (“Cross Default”).

    

    8.           Escrow. All payments
becoming due hereunder shall be made in lawful money of the United States and
shall be delivered to First American Title Company, as escrow agent, located at,
415 Seventh Street, Suite 1, Wallace, ID, 83873 (“Escrow Agent”). In connection
with Payor’s execution of this Promissory Note dated, Payor has executed a
Security Agreement (“Security Agreement”) and Deed of Trust (“Deed of Trust”),
both dated March 31, 2009, such Security Agreement and Deed of Trust have been
deposited with the Escrow Agent, and this Note shall be deposited with the
Escrow Agent. The Escrow Agent is hereby authorized to receive and disburse
monies under the

    

    2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    terms of
this Note and to issue receipts therefore. Each of the parties hereby agrees to
pay one-half (1/2) of the set-up and periodic escrow fee charged by the escrow
agent.

    

    9.           Option to Convert
Balance. At Payee’s option, Payee may convert all or any part of the
principal balance due on this Note into not more than 1,500,000 shares of
Payor’s voting common stock at a conversion rate of Thirty-three cents ($.33)
per share. Said option shall be exercised, if at all, within thirty (30) days of
written notice to Payor, and said option shall be exercisable at any time within
three (3) months of the date on which Payor’s stock becomes publicly
traded.

    

    10.        Miscellaneous and
Procedure.

    

    
      	 	
              10.1

            	
              Application of
      Payments. All payments under this Note shall be applied first to
      late penalty, if any, then to interest due to the date of payment and the
      balance to principal.

            

    

    

    
      	 	
              10.2

            	
              Notice. All
      notices required under this Note shall be deemed to have been duly given
      if sent by registered or certified mail, postage prepaid, return receipt
      requested, to the following
addresses:

            

    

    

    
      	 
      	
              To
      Payor:

            	
              Attn:
      Greg Stewart

            
	 
      	 
      	
              United
      Mine Services

            
	 
      	 
      	
              202
      S. Division Street

            
	 
      	 
      	
              PO
      Box 828

            
	 
      	 
      	
              Pinehurst,
      ID 83850

            
	 
      
	 
      	
              To
      Payee:

            	
              Forsberg
      Investments, Inc.

            
	 
      	 
      	
              PO
      Box 1081

            
	 
      	 
      	
              Pinehurst,
      ID 83850

            

    

    

    
      	 	
              10.3

            	
              Attorneys’
      Fees. Should legal action be required to enforce or interpret any
      of the provisions of this Note, the prevailing party shall be entitled to
      all costs and reasonable attorneys’ fees incurred in connection therewith
      from the nonprevailing party.

            

    

    

    
      	 	
              10.4

            	
              Conflict of
      Provisions. In the event of a conflict in any of the provisions in
      this Note and in the Security Agreement or Deed of Trust, the terms of the
      Security Agreement or Deed of Trust shall
  prevail.

            

    

    

    
      	 	
              10.5

            	
              Venue. Any
      action brought to enforce or interpret this Note may, at the option of
      Payee, be brought in Shoshone County,
Idaho.

            

    

    

    
      	 	
              10.6

            	
              Governing Law.
      This Note shall be construed in accordance with the laws of the State of
      Idaho.

            

    

    

    3

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              10.7

            	
              Transfer of
      Forsbergs. Notwithstanding anything to the contrary, and not in the
      elimination of any right of Payee herein, upon written notice to the
      Escrow Agent Payee’s interest in the Note may at any time be assigned to
      Fred A. Forsberg and Linda M. Forsberg, or to either of
      them.

            

    

    

    

    
      	 
      	
              UNITED
      MINE SERVICES, INC.

            
	 
      
	 
      	
              GREG
      STEWART

            
	 
      	
              By:
      Greg Stewart, President & CEO

            

    

    

    

    

    

     

    

    

    

    

    4

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    DEED
of TRUST

    

    

    Filed
for Record at Request of

    

    Attorney
Daniel B. DeRutyer

    Douglas,
Eden, Phillips, DeRuyter & Stanyer, P.S.

    422
West Riverside Avenue, Suite 909

    Spokane,
Washington 99201-0307

    

    
      ==========================================================================================================================================

    

    

    DEED
OF TRUST

    

    

    THIS DEED
OF TRUST, made this 31st day of
March, 2009, between UNITED MINE SERVICES, INC., GRANTOR, whose address is 202
S, Division St., PO Box 828, Pinehurst, ID, 83850, FIRST AMERICAN TITLE COMPANY,
INC., an Idaho corporation, TRUSTEE, whose address is 415 Seventh Street, Suite
1, Wallace, ID 83873, and FORSBERG INVESTMENTS, INC., an Idaho corporation
formerly known as Mine Fabrication & Machine, Inc., BENEFICIARY, whose
address is PO Box 1081, Pinehurst, ID, 83850, WITNESSETH THAT Grantor does
hereby irrevocably GRANT, BARGAIN, SELL AND CONVEY TO TRUSTEE IN TRUST, WITH
POWER OF SALE, that property in the County of Shoshone, State of Idaho,
described as follows, and containing not more than forty (40)
acres:

    

    
      	 	
              See
      Exhibit “A” attached hereto and by this reference made a part
      hereof.

            

    

    

    TOGETHER
WITH the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right,
power and authority hereinafter given to and conferred upon Beneficiary to
collect and apply such rents, issues and profits.

    

    For the
purpose of securing payment of the indebtedness evidenced by: (i) Promissory
Note, of even date herewith, executed by Grantor in the principal sum of Four
Hundred Eighty-five Thousand Dollars ($485,000.00) and (ii) Promissory Note, of
even date herewith, executed by Grantor in the principal sum of Five Hundred
Thousand Dollars ($500,000.00) (collectively the “Notes”), the final payments of
which are due on April 10, 2017 and March 31, 2017, respectively, and to secure
payment of all further sums as may hereafter be loaned or advanced by the
Beneficiary herein to the Grantor herein, or any or either of them, while record
owner of present interest, for any purpose, and of any notes, drafts or other
instruments representing such further loans, advances or expenditures together
with interest on all such sums at the rate herein provided. Provided, however,
that the making of such further loans, advances or expenditures shall be
optional with the Beneficiary, and provided, further, that it is the express
intention of the parties to this Deed of Trust that it shall stand as continuing
security until paid for all such advances together with interest
thereon.

    

    -1-

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    A.           To
protect the security of this Deed of Trust, Grantor agrees:

    

    1.           To
keep said property in good condition and repair; not to remove or demolish any
building thereon; to complete or restore promptly and in good and workmanlike
manner any building which may be constructed, damaged or destroyed thereon and
to pay when due all claims for labor performed and materials furnished therefor;
to comply with all laws affecting said property or requiring any alterations or
improvements to be made thereon; not to commit or permit waste thereof; not to
commit, suffer or permit any act upon said property in violation of law; to
cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from
the character or use of said property may be reasonably necessary, the specific
enumerations herein not excluding the general.

    

    2.           To
provide, maintain and deliver to Beneficiary fire insurance satisfactory to and
with loss payable to Beneficiary. The amount collected under any fire or other
insurance policy may be applied by Beneficiary upon any indebtedness secured
hereby and in such order as Beneficiary may determine, or at option of
Beneficiary the entire amount so collected or any part thereof may be released
to Grantor. Such application or release shall not cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to such
notice.

    

    3.           To
appear in and defend any action or proceeding purporting to affect the security
hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs
and expenses, including cost of evidence of title and attorney’s fees in a
reasonable sum, in any such action or proceeding in which Beneficiary or Trustee
may appear.

    

    4.           To
pay, at least ten days before delinquency, all taxes and assessments affecting
said property, when due, all encumbrances, charges and liens, with interest, on
said property or any part thereof, which appear to be prior or superior hereto;
all costs, fees and expenses of this Deed of Trust. In addition to the payments
due in accordance with the terms of the Notes hereby secured, the Grantor shall
pay the annual taxes, assessments, insurance premiums, maintenance and other
charges upon the property, nevertheless in trust for Grantor’s use and benefit
and for the payment by Beneficiary of any such items when due. Grantor’s failure
so to pay shall constitute a default under this Deed of Trust.

    

    5.           To
pay immediately and without demand all sums expended by Beneficiary or Trustee
pursuant to the provisions hereof, with interest from date of expenditure at
twelve percent (12%) per annum.

    

    6.           Should
Grantor fail to make any payment or to do any act as herein provided, then
Beneficiary or Trustee, but without obligation so to do and without notice to or
demand upon Grantor and without releasing Grantor from any obligations hereof,
may: make or do the same in such manner and to such extent as either may deem
necessary to protect the security hereof, Beneficiary or Trustee being
authorized to enter upon said property for such purposes; appear in and defend
any action or proceeding purporting to affect the security hereof or the rights
or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any
encumbrance, charge or lien which in the judgment of either appears to be prior
or superior hereto; and, in exercising any such powers, or in enforcing this
Deed of

    

    -2-

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Trust by
judicial foreclosure, pay necessary expenses, employ counsel and pay his
reasonable fees.

    

    B.           IT
IS MUTUALLY AGREED THAT:

    

    1.           Any
award of damages in connection with any condemnation for public use of or injury
to said property or any part thereof is hereby assigned and shall be paid to
Beneficiary who may apply or release such moneys received by him in the same
manner and with the same effect as above provided for disposition of proceeds of
fire or other insurance.

    

    2.           By
accepting payment of any sum secured hereby after its due date, Beneficiary does
not waive its right either to require prompt payment when due of all other sums
so secured or to declare default for failure so to pay.

    

    3.           At
any time or from time to time, without liability therefor and without notice,
upon written request of Beneficiary and presentation of this Deed of Trust and
said Notes for endorsement, and without affecting the personal liability of any
person for payment of the indebtedness secured hereby, Trustee may: reconvey all
or any part of said property; consent to the making of any map or plat thereof;
join in granting any easement thereon; or join in any extension agreement or any
agreement subordinating the lien or change hereof.

    

    4.           Upon
written request of Beneficiary stating that all sums secured hereby have been
paid, and upon surrender of this Deed of Trust and said Notes to Trustee for
cancellation and retention and upon payment of its fees, Trustee shall reconvey,
without warranty, the property then held hereunder. The recitals in any
reconveyance executed under this deed of trust of any matters or facts shall be
conclusive proof of the truthfulness thereof. The grantee in such reconveyance
may be described as “the person or persons legally entitled
thereto.”

    

    5.           As
additional security, Grantor hereby gives to and confers upon Beneficiary the
right, power and authority, during the continuance of this Deed of Trust, to
collect the rents, issues and profits of said property, reserving unto Grantor
the right, prior to any default by Grantor in payment of any indebtedness
secured hereby or in performance of any agreement hereunder, to collect and
retain such rents, issues and profits as they become due and payable. Upon any
such default, Beneficiary may at any time without notice, either in person, by
agent, or by a receiver to be appointed by a court and without regard to the
adequacy of any security for the indebtedness hereby secured, enter upon and
take possession of said property or any part thereof, in its own name sue for or
otherwise collect such rents, issues and profits, including those past due and
unpaid, and apply the same, less costs and expenses of operation and collection,
including reasonable attorney’s fees, upon any indebtedness secured hereby, and
in such order as Beneficiary may determine. The entering upon and taking
possession of said property, the collection of such rents, issues and profits
and the application thereof as aforesaid, shall not cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to such
notice.

    

    6.           Upon
default by Grantor in payment of any indebtedness secured hereby or in
performance of any agreement hereunder, all sums secured hereby shall
immediately become due and payable at the option of the Beneficiary. In the
event of default, Beneficiary shall execute or cause the Trustee to execute a
written notice of such default and of its

    

    -3-

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    election
to cause to be sold the herein described property to satisfy the obligations
hereof, and shall cause such notice to be recorded in the office of the recorder
of each county wherein said real property or some part thereof is
situated.

    

    Notice of sale having been given as
then required by law, and not less than the time then required by law having
elapsed, Trustee, without demand on Grantor, shall sell said property at the
time and place fixed by it in said notice of sale, either as a whole or in
separate parcels and in such order as it may determine, at public auction to the
highest bidder, for cash in lawful money of the United States, payable at time
of sale. Trustee shall deliver to the purchaser its deed conveying the property
so sold, but without any covenant or warranty express or implied. The recitals
in such deed of any matters or facts shall be conclusive proof of the
truthfulness thereof. Any person, including Grantor, Trustee, or Beneficiary,
may purchase at such sale.

    

    After deducting all costs, fees and
expenses of Trustee and of this Trust, including cost of evidence of title and
reasonable counsel fees in connection with sale, Trustee shall apply the
proceeds of sale to payment of: all sums expended under the terms hereof, not
then repaid, with accrued interest at legal rate; all other sums then secured
hereby; and the remainder, if any, to the person or persons legally entitled
thereto.

    

    7.           This
Deed of Trust applies to, inures to the benefit of, and binds all parties
hereto, their heirs, legatees, devisees, administrators, executors, successors
and assigns. The term Beneficiary shall mean the holder and owner of the Notes
secured hereby; or, if either or both Notes have been pledged, the pledgee
thereof. In this Deed of Trust, whenever the context so requires, the masculine
gender includes the feminine and/or neuter, and the singular number includes the
plural.

    

    8.           Trustee
is not obligated to notify any party hereto of pending sale under any other Deed
of Trust or of any action or proceeding in which Grantor, Beneficiary or Trustee
shall be a party unless brought by Trustee.

    

    9.           In
the event of a dissolution or resignation of the Trustee, the Beneficiary may
substitute a trustee or trustees to execute the trust hereby created, and when
any such substitution has been filed for record in the office of the Recorder of
the county in which the property herein described is situated, it shall be
conclusive evidence of the appointment of such trustee or trustees, and such new
trustee or trustees shall succeed to all of the powers and duties of the trustee
or trustees named herein.

    

    10.           Grantor
and Beneficiary, the language of this Deed of Trust to the contrary
notwithstanding, agree as follows:

    

    
      	 	
              A.

            	
              This
      Deed of Trust is subject and subordinate to a deed of trust dated
      ______________ and recorded under recording number ___________, records of
      the County of Shoshone County, State of Idaho, in favor of Mountain West
      Bank to secure the payment of a note in the original principal amount of
      $1,100,000.00. This Deed of Trust and the Notes are referred to below for
      convenience as “Underlying Deed of Trust” and “Underlying Note”,
      respectively.

            

    

    

    -4-

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              B.

            	
              This
      Deed of Trust is an “all inclusive” Deed of Trust securing “all inclusive”
      Notes, the original principal balances of which includes the balance of
      the Underlying Note and the Underlying Deed of Trust more fully described
      above.

            

    

    

    
      	 	
              C.

            	
              Grantor
      agrees to comply with all of the terms and conditions of the Underlying
      Deed of Trust and Underlying Note (other than with respect to the payment
      of interest and principal due under the Underlying Note) and shall
      immediately comply with any notice sent to it by the holder of the
      Underlying Note without regard to any grace period, if any, and Grantor’s
      failure to do so shall constitute a default under this Deed of Trust. Any
      default under this Deed of Trust shall entitle Beneficiary to exercise, at
      its option, anyone or more of the following remedies, in addition to any
      other remedies provided herein:

            

    

    

    
      	 	
              (1)

            	
              To
      declare the two Notes secured hereby immediately due and payable in full
      upon demand;

            

    

    

    
      	 	
              (2)

            	
              To
      judicially or nonjudicially foreclose this Deed of
  Trust;

            

    

    

    
      	 	
              (3)

            	
              To
      perform such terms and conditions as are in
  default;

            

    

    

    
      	 	
              (4)

            	
              To
      purchase, discharge, compromise or settle the indebtedness secured by the
      Underlying Deed of Trust or any other lien or encumbrance superior to this
      Deed of Trust, including liens for taxes and
  assessments.

            

    

    

    
      	 	
              In
      the event that Beneficiary so elects to make any payment for any of the
      purposes herein authorized and/or perform any act upon which Grantor has
      defaulted, then, at the option of Beneficiary, all monies so paid and all
      costs and expenses incurred thereby, including reasonable attorneys’ fees,
      may be added to the debts which are secured by this Deed of Trust and bear
      penalty interest as specified in the Notes, or all monies so paid and all
      costs and expenses incurred thereby, including reasonable attorneys’ fees,
      may be declared immediately due and payable and such sums shall bear
      interest at the penalty rate specified in the Notes until paid, and
      Grantor’s failure to reimburse Beneficiary upon demand therefor shall
      constitute a further event of default under this Deed of
      Trust.

            

    

    

    
      	 	
              D.

            	
              (1)

            	
              Provided
      either or both of Grantor’s Notes are in default under the terms of this
      Deed of Trust or of any Note secured hereby and provided further that
      Grantor is in compliance with all of the terms, covenants, conditions and
      provisions of the Underlying Deed of Trust and Underlying Note other than
      with respect to the payment of principal and interest due under the
      Underlying Note and provided further all payments required under the Notes
      and hereunder are timely made, Beneficiary will apply the funds received
      from Grantor as monthly payments upon the Notes secured by this Deed of
      Trust, to pay the principal and/or interest payments due each month to the
      holder of the Underlying Note according to the terms
    thereof.

            

    

    

    
      	 	
              (2)

            	
              Beneficiary
      does not assume any of the obligations of Grantor under the Underlying
      Note and Underlying Deed of Trust except as specifically herein provided
      and shall not be obligated to make payments to the holder of the
      Underlying

            

    

    

    -5-

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              Note
      in the event Grantor fails to make payment to Beneficiary as provided in
      the Notes and this Deed of Trust, or in the event payments received by
      Beneficiary are charged back as uncollected. This partial assumption is
      for the benefit of the parties hereto only, their successors and assigns,
      and is not for the benefit of the holder of the Underlying Note or for the
      benefit of any other party, whether as third party beneficiary or
      otherwise.

            

    

    

    
      	 	
              (3)

            	
              Grantor
      covenants not to make any payments whatsoever directly to the holder of
      the Underlying Note and Underlying Deed of Trust, including any
      prepayment, or request any release, partial release, amendment or other
      modifications of the Underlying Note or Underlying Deed of Trust without
      the prior written consent of Beneficiary, its successors and assigns.
      Grantor agrees to pay to Beneficiary, its successors and assigns, any
      installments of reserves and all other sums, other than principal and
      interest, required to be paid to the holder of the Underlying Note and
      Underlying Deed of Trust at least fifteen (15) days prior to the due dates
      thereunder.

            

    

    

    
      	 	
              (4)

            	
              If
      Grantor shall default in making any required payment of principal and/or
      interest upon the Underlying Note, Beneficiary shall have the right to
      advance the funds necessary to cure such default, and all funds so
      advanced, together with interest at twelve percent (12%) per annum, shall
      be credited against the next installment of interest and principal due
      under the two Notes secured by this Deed of
  Trust.

            

    

    

    
      	 	
              E.

            	
              Any
      provision of this Deed of Trust to the contrary notwithstanding, any
      demand for sale delivered to Trustee for the foreclosure of this Deed of
      Trust, any and complaint for judicial foreclosure of this Deed of Trust,
      shall be reduced by such unpaid balances, if any, of principal, interest
      and charges existing upon the Underlying Note at the time of sale upon
      such foreclosure, satisfactory evidence of which unpaid balance must be
      submitted prior to sale.

            

    

    

    
      	 	
              F.

            	
              Grantor
      will furnish to Beneficiary, upon demand, proof of payment of all items
      (including, without limitation, real estate taxes and insurance premiums)
      which are required to be paid by Grantor pursuant to the Underlying Deed
      of Trust and any other proof of payment which is required to be given
      under the Underlying Deed of Trust.

            

    

    

    
      	 	
              G.

            	
              Grantor
      shall execute and deliver, on request of Beneficiary, such instruments
      deemed useful or necessary to permit Beneficiary to cure any default under
      the Underlying Note or Underlying Deed of Trust or to preserve the
      interest of Beneficiary thereunder.

            

    

    

    
      	 	
              H.

            	
              Grantor
      covenants and agrees that this Deed of Trust shall be deemed to include,
      without the necessity of full repetition herein, all of the terms,
      provisions and conditions of the Underlying Deed of Trust. A default under
      this Deed of Trust shall constitute, ipso facto, a
      default under the Underlying Deed of Trust so that in the event that
      Beneficiary elects to exercise the remedy herein given of taking an
      assignment of the Underlying Deed of Trust it will be entitled to
      foreclose the remaining indebtedness on both the Underlying Deed of Trust
      and this Deed of Trust. In the event of a conflict between the terms,
      provisions and conditions of the Underlying Deed of Trust with
      the

            

    

    

    -6-

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              terms,
      provisions and conditions of this Deed of Trust, the terms, provisions and
      conditions of this Deed of Trust shall prevail and
  control.

            

    

    

    Request is hereby made that a copy of
any Notice of Default and a copy of any Notice of Sale hereunder be mailed to
the Grantor at its address hereinbefore set forth.

    

    
      	 
      	
              UNITED
      MINE SERVICES, INC.

            
	 
      
	 
      
	 
      	
              GREG
      STEWART

            
	 
      	
              By:
      Greg Stewart, President & CEO

            

    

    

    

    

    
      	
              STATE
      OF IDAHO

            	
              )

            

    

    : ss.

    
      	
              County
      of Shoshone

            	
              )

            

    

    

    

    On this 31 day of March, 2009,
personally appeared before me GREG STEWART, to me known to be the President and
CEO of UNITED MINE SERVICES, INC., an Idaho corporation, the corporation that
executed the foregoing instrument, and acknowledged that the said instrument to
be the free and voluntary act of said corporation, for the uses and purposes
therein mentioned, and on oath stated that he was duly authorized to execute the
said instrument on behalf of said corporation.

    

    GIVEN under my hand and official seal
the day and year first above written.

    

    

    

    
      	 
      	
              SHAWNA M.
      FLOOD

            
	
              [SEAL]

            	
              Notary
      Public in and for the State of Idaho

            
	 
      	
              Idaho,
      residing at Osburn, ID.

            
	 
      	
              My
      commission expires: 10/10/2012

            

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    -7-

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
“A”

    

    

    A parcel
of land situated in the Northeast Quarter of the Southwest Quarter and the
Northwest Quarter of the Southeast Quarter of Section 5, Township 48 North,
Range 3 East, B.M., Shoshone County, Idaho and being more particularly described
as follows:

    

    Beginning
at a point where the North-South centerline of said Section 5 intersects the
Northerly right-of-way line of the I-90 frontage road, whence the South Quarter
Corner of said Section 5 bears South 00°51'54" West, 1,486.88 feet distant
(shown of record to be South 00°42' East, 1,485.00 feet);

    

    Thence
South 87°05'43" West, 191.87 feet along said Northerly right-of-way
line;

    

    Thence
North 74°08'05" West, 369.76 feet along said Northerly right-of-way to a point
on the Westerly boundary of a tract described in Deeds Book 77,

    page
66;

    

    Thence
North 12°34'20" East, 928.58 feet along said Westerly boundary to a point on the
East-West centerline of said Section 5;

    

    Thence
North 88°41'55" East, 360.46 feet along said East-West centerline to the Center
Quarter of said Section 5;

    

    Thence
North 88°41'55" East, 63.40 feet along said centerline;

    

    Thence
South 00°00'04" West, 1,010.12 feet to a point on the Northerly right-of-way of
said I-90 frontage road;

    

    Thence
North 87°56'36" West, 78.61 feet along said right-of-way to the point of
beginning.

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECURITY
AGREEMENT

    

    

    

    This Security Agreement (the
“Agreement”) is entered into this 31st day of
March, 2009, by UNITED MINE SERVICES, INC., an Idaho Corporation (“Debtor”) and
FORSBERG INVESTMENTS, Inc., an Idaho Corporation formerly known as Mine
Fabrication & Machine, Inc. (“Secured Party”).

    

    RECITALS

    

    WHEREAS, Secured Party has
loaned, or has committed to loan, to Debtor a total of Nine Hundred Eight-five
Thousand Dollars ($985,000.00).

    

    WHEREAS, Debtor’s obligation
to repay the amount loaned or to be loaned is evidenced by two promissory notes,
the first in principal amount of $485,000.00, dated March 31, 2009, payable to
Secured Party, and the second in the principal amount of $500,000.00, dated
March 31, 2009, payable to Secured Party (collectively the
“Notes”).

    

    WHEREAS, Debtor and Secured
Party are entering into this Agreement in order to secure Debtor’s repayment
obligation to Secured Party.

    

    NOW, THEREFORE, the parties
agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Definitions.

            

    

    

    (a)           Collateral. The term “Collateral” means
all assets, tangible or intangible, owned by the Debtor, including but not
limited to cash, investments, accounts receivable, inventory of raw materials,
work in progress or finished goods, equipment, trade names, and
goodwill.

    

    (b)           Cure
Period. The term
“Cure Period” means a period of thirty (30) days from the time the Debtor
receives Notice of a Default.

    

    (c)           Debtor. The term “Debtor” means
UNITED MINE SERVICES, INC., an Idaho Corporation.

    

    (d)           Default. A “Default” shall occur
when:

    

    
      	
               
      

            	 	
              (i)
      the Debtor fails to make any payment, when due, on any of the Obligations;
      or

            

    

    

    
      	
               
      

            	 	
              (ii)
      the Debtor breaches or fails to perform any of its other obligations under
      this Agreement or any other agreement between the Secured Party and
      Debtor; or

            

    

    

    

    1

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	 	
              (iii)
      the Debtor becomes insolvent; or

            

    

    

    
      	
               
      

            	 	
              (iv)
      an action is commenced to appoint, or the Debtor consents to the
      appointment of, a receiver, or trustee, or other similar official for all
      or any part of the Debtor’s property;
or

            

    

    

    
      	 	
              (v)
      the Debtor assigns any of its assets for the benefit of its creditors;
      or

            

    

    

    
      	 	
              (vi)
      the Debtor files or is served with a petition for relief under II U.S.C. §
      I et seq., or any similar state or federal statute, or a proceeding is
      instituted against the Debtor seeking a readjustment of Debtor’s
      indebtedness; or

            

    

    

    
      	 	
              (vii)
      any of the Collateral is attached pursuant to a court order or other legal
      process; or

            

    

    

    
      	 	
              (viii)
      the Debtor admits, in writing, its inability to pay its debts as they
      become due; or

            

    

    

    
      	 	
              (ix)
      a court of competent jurisdiction enters an order approving a petition
      seeking a reorganization of the Debtor or appointing a receiver, trustee,
      or other similar official of substantially all of Debtor’s
      assets.

            

    

    

    
      	 	
              (e)

            	
              Notes. The term “Notes” means
      the two promissory notes made by Debtor and payable to the Secured Party
      on March 31, 2009, in the principal amounts of $485,000 Dollars and
      $500,000.00 Dollars.

            

    

    

    
      	 	
              (f)

            	
              Notice. The term “Notice”
      means a written letter from Secured Party to Debtor informing Debtor of
      Default.

            

    

    

    
      	 	
              (g)

            	
              Obligations. The term “Obligations”
      means all debts, liabilities, and obligations owed by Debtor to Secured
      Party, specifically including the liabilities and obligations evidenced by
      the Note.

            

    

    

    
      	 	
              (h)

            	
              Secured
      Party. The
      term “Secured Party” means FORSBERG INVESTMENTS,
  INC.

            

    

    

    2.           Grant of
Security Interest. As security for the prompt
payment and performance of the Obligations, Debtor grants to Secured Party a
security interest in the Collateral. The Collateral shall be held by the Debtor,
unless and until a Default occurs. The Secured Party’s interest in the
Collateral shall be subordinate to any interest of Mountain West Bank in the
same Collateral, provided that said interest is granted to Mountain West Bank on
or before April 3, 2009.

    

    3.           Perfection
of Security Interests. At any time, upon demand of
the Secured Party, the Debtor will execute, file, and record any notice,
financing statement, or other instrument necessary to create, continue, or
perfect the security interest

    

    

    2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    granted
by this Agreement or to enable the Secured Party to exercise or enforce its
rights under this Agreement.

    

    4.           Power of
Attorney. The
Debtor grants to Secured Party an irrevocable special power of attorney for the
purpose of.

    

    
      	 	
              (a)

            	
              Executing,
      in the Debtor’s name, one or more financing statements, continuation
      statements or other documents under the Idaho Uniform Commercial Code
      covering the Collateral, and naming the Debtor as “debtor” and the Secured
      Party as “secured party”; and

            

    

    

    
      	 	
              (b)

            	
              Correcting
      and completing any financing statements, continuation statements, or other
      documents that have been signed by Debtor, or by the Secured Party on
      behalf of the Debtor, pursuant to this power of
  attorney.

            

    

    

    5.           Warranties
and Covenants.
Debtor warrants and agrees that:

    

    
      	 	
              (a)

            	
              Protection
      of Collateral. Except for the
      security interest granted by this Agreement, and except as to any security
      interest granted to Mountain West Bank on or before the date of this
      Agreement, Debtor owns and will keep the Collateral free and clear of
      liens, security interests, or other encumbrances. Except as to Mountain
      West Bank, no financing statement, security agreement, or other instrument
      naming the Debtor as “debtor” and affecting the Collateral exists, or is
      on file or recorded in any public office, Debtor will not, without
      obtaining the prior written consent of the Secured Party, transfer or
      further encumber any part of the Collateral or any interest in the
      Collateral. Debtor will not undertake any action that will impair, damage,
      or destroy the Secured Party’s collateral
  position.

            

    

    

    
      	 	
              (b)

            	
              Performance. Debtor will perform
      promptly all of its Obligations.

            

    

    

    
      	 	
              (c)

            	
              Location
      of Records and Collateral. Debtor’s mailing
      address is Attn: Greg Stewart, United Mine Service, Inc., 202 S. Division
      St., PO Box 828, Pinehurst, ID, 83850. The location of Debtor’s place of
      business is Debtor’s records concerning the Collateral are kept at its
      place of business. The Collateral is currently located at Debtor will
      promptly notify the Secured Party of any change in the location of its
      place of business, the Collateral, or its records concerning the
      Collateral.

            

    

    

    
      	 	
              (d)

            	
              Access
      to Records.
      Debtor will maintain full and accurate books of account, ledgers, and
      other written records relating to the Collateral. Secured Party shall at
      all times have the right to inspect any of Debtor’s records relating to
      the Collateral and the right to obtain copies of the
    records.

            

    

    

    
      	 	
              (e)

            	
              Litigation. No unsatisfied
      judgments, decrees, or orders of any court or governmental body are
      outstanding against Debtor or against the Collateral. No proceedings are
      pending, nor has Debtor been threatened with the institution of
      proceedings, before any court or governmental body which will affect the
      financial condition of Debtor or the status of the
    Collateral.

            

    

    

    3

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              (f)

            	
              Payment
      of Taxes and Indebtedness. Debtor will promptly
      pay all liens, taxes, assessments, or contributions required by law which
      may come due and which are lawfully levied or assessed with respect to any
      of the Collateral. Debtor will execute and deliver to Secured Party, upon
      demand, certificates attesting to the timely payment or deposit of the
      sums owed on all such liens, taxes, assessments, or contributions. Debtor
      will promptly perform the Obligations. Debtor will fully comply with all
      terms and provisions of this Agreement and all other security instruments
      upon which it is obligated.

            

    

    

    
      	 	
              (g)

            	
              Power
      to Undertake Agreement. Debtor has the
      unqualified right to enter into this Agreement and to perform its
      terms.

            

    

    

    
      	 	
              (h)

            	
              No
      Impairment of Obligations. Until the Notes have
      been paid in full, Debtor will not make any agreement which is
      inconsistent with its Obligations unless Debtor has obtained prior written
      consent from Secured Party.

            

    

    

    
      	 	
              (i)

            	
              Inspection
      of Collateral. Debtor grants to
      Secured Party the right to visit Debtor’s premises at reasonable times
      during regular business hours to inspect the
  Collateral.

            

    

    

    6.           Notice of
Default and Cure.
Secured Party shall deliver Notice of any Default to Debtor. Debtor shall have
the right to cure any Default specified under Section I (d)(i) or (ii) within
the Cure Period. Debtor may not cure a Default described in Section I (d)(iii)
through (ix) of this Agreement. If Debtor fails to cure the Default within the
Cure Period, or is prohibited from curing the Default, then Secured Party may
pursue any and all remedies provided in this Agreement. Debtor agrees that
receipt of Notice shall provide Debtor with reasonable advance notice of a
planned sale or other disposition of the Collateral by Secured
Party,

    

    7.           Remedies. Upon Default, Secured Party
shall have all rights available at law or in equity, including all rights
available under the Idaho Uniform Commercial Code. All rights and remedies
granted under this Agreement shall be deemed cumulative, and not exclusive of
any other right or remedy available to Secured Party. Secured Party retains the
right, upon giving Notice to Debtor, to bring suit on the Note, to take
possession of the Collateral, and to sell, assign, or otherwise dispose of the
Collateral as permitted under Idaho law. Debtor shall be entitled to any
surplus, and shall remain liable for any deficiency remaining after disposition
of the Collateral. All rights and remedies granted under this Agreement shall be
deemed cumulative and not exclusive of any other right or remedy available to
Secured Party.

    

    8.           Escrow. This Security Agreement, the
Collateral and all documents relating thereto shall be held for collection and
in escrow by First American Title Company, 415 Seventh Street, Suite 1, Wallace,
ID 83873 (“Escrow Agent”). Debtor and Secured Party agree to execute all
documents required by said Escrow Agent. Upon payment in full of the obligations
secured hereby and upon receiving notice thereof from Secured Party, Escrow
Agent shall deliver the Collateral to Debtor, but the Collateral is to be held
on behalf of Secured Party until full payment is received.

    

    

    

    

    4

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    9.           Modifications
to Be in Writing.
This Agreement may not be changed orally. For a modification of this Agreement
to be effective, it must in writing and have been signed by each party. Every
right or remedy granted by this Agreement may be exercised as often as shall be
deemed expedient by Secured Party.

    

    10.           Obligations
Binding on Successors. Debtor may not transfer its
rights, duties, or obligations under this Agreement without the prior written
consent of Secured Party. This Agreement, and the duties it sets forth shall
bind Debtor and its successors and assigns. All rights and powers established in
this Agreement shall benefit Secured Party and its successors and
assigns.

    

    11.           Termination
of Agreement. At
such time as Debtor shall completely satisfy all the Obligations, this Agreement
shall terminate. At that time, Secured Party shall deliver to Debtor the Notes
and any other instruments necessary to release Secured Party’s interest in the
Collateral.

    

    12.           Venue. The parties to this
Agreement agree that any action on this Agreement shall be brought in a court of
appropriate jurisdiction located in Shoshone County, Idaho.

    

    13.           Notice. Any notice, consent, or
other communication required or permitted under this Agreement shall be in
writing and shall be deemed to have been duly given either (1) when delivered
personally to the party to whom it is directed (or any officer or agent of the
party), or (2) three days after being deposited in the United States’ certified
or registered mail, postage prepaid, return receipt requested, and properly
addressed to the party. A communication will be deemed to be properly addressed
if sent to Debtor at Attn: Greg Stewart, United Mine Service, Inc., 202 S.
Division St., PO Box 828, Pinehurst, ID, 83850, or if sent to Secured Party at
Fred A. Forsberg and Linda M. Forsberg, PO Box 1081, Pinehurst, ID, 83850.
Debtor or Secured Party may at any time during the term of this Agreement change
the address to which notices and other communications must be sent by providing
written notice of a new address within the United States to the other party. Any
such change of address will be effective ten (10) days after notice is
given.

    

    14.           Governing
Law. This
Agreement will be construed and the rights, duties, and obligations of the
parties will be determined in accordance with the laws of the State of
Idaho.

    

    15.           Headings. Headings used in this
Agreement have been included for convenience and ease of reference only, and
will not influence the construction or interpretation of any provision of this
Agreement.

    

    16.           Entire
Agreement. This
Agreement represents the entire understanding of the parties with respect to its
subject matter. There are no other prior or contemporaneous agreements, either
written or oral between the parties with respect to this subject.

    

    17.           Waiver. No right or obligation under
this Agreement will be deemed to have been waived unless evidenced by a writing
signed by the party against whom the

    

    

    5

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    waiver is
asserted, or by the party’s duly authorized representative. Any waiver will be
effective only with respect to the specific instance involved, and will not
impair or limit the right of the waiving party to insist upon strict performance
of the right or obligation in any other instance, in any other respect, or at
any other time.

    

    18.           Severability. The parties intend that this
Agreement be enforced to the greatest extent permitted by applicable law.
Therefore, if any provision of this Agreement, on its face or as applied to any
person or circumstance, is or becomes unenforceable to any extent, the remainder
of this Agreement and the application of that provision to other persons,
circumstances, or extent, will not be impaired.

    

    19.           References. Except as otherwise
specifically indicated, all references to numbered or lettered sections or
subsections refer to sections or subsections of this Agreement, and all
references to this Agreement include any subsequent amendments to the
Agreement.

    

    20.           Attorneys’
Fees. If any
litigation or other dispute resolution proceeding is commenced between parties
to this Agreement to enforce or determine the rights or responsibilities of the
parties, the prevailing party or parties in the proceeding will be entitled to
receive, in addition to any other relief granted, its reasonable attorneys’
fees, expenses, and costs incurred preparing for and participating in the
proceeding.

    

    21.           Counterparts. This Agreement may be
executed in any number of counterparts, each of which will be deemed to be an
original and all of which together will constitute a single
agreement.

    

    22.           Further
Assurances. Each
party agrees to take any additional actions and to make, execute, and deliver
any additional written instruments that may be reasonably required to carry out
the terms, provisions, intentions, and purposes of this Agreement.

    

    Executed and delivered the day and year
first written above.

    

    
      	
              DEBTOR:

            	
              SECURED
      PARTY:

            
	 
      
	
              UNITED
      MINE SERVICES, INC.

            	
              FORSBERG
      INVESTMENTS, INC.

            
	 
      
	 
      
	
              GREG
      STEWART

            	
              FRED A.
      FORSBERG

            
	
              By:   Greg
      Stewart, President & CEO

            	
              By:
      Fred A. Forsberg, President

            

    

    

    

    

    

    

    

    

    

    

    

    6

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSET
PURCHASE AGREEMENT

    EXHIBIT “E”

    

    ALLOCATION OF PURCHASE
PRICE

    

    

    
      	
              Land

            	
              $

            	
               250,000

            
	 
      	 
      	 
      
	
              Buildings

            	
              $

            	
               650,000

            
	 
      	 
      	 
      
	
              Equipment

            	
              $

            	
               200,000

            
	 
      	 
      	 
      
	
              Inventory

            	
              $

            	
               250,000*

            
	
              (*subject
      to adjustment to actual “Inventory Value”)

            	 
      	 
      
	 
      	 
      	 
      
	
              Accounts
      Receivable

            	
              $

            	
               150,000*

            
	
              (*subject
      to adjustment to amount per books of

            	 
      	 
      
	
              Accounts
      Receivable)

            	 
      	 
      
	 
      	 
      	 
      
	
              Trade
      Name

            	
              $

            	
               150,000

            
	 
      	 
      	 
      
	
              Covenant
      Not-to-Compete

            	
              $

            	
               50,000

            
	 
      	 
      	 
      
	
              Goodwill

            	
              $

            	
              1,000,000*

            
	 
      	 
      	 
      
	 
      	
              Total

            	
              $

            	
              2,700,000*

            

    

    

    

    * The
Closing Date adjustment to Accounts Receivable will

    be
balanced with similar adjustments to that amount

    allocated
to Goodwill. The Total Purchase Price will be

    adjusted
with a similar adjustment, if any is made, to

    Inventory.

    

    

     

    

    

    

    

    
      	 
      	
              GSS

            	
              FF
      LF

            
	 
      	
              3/30/09

            	
              3/26/09

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ASSET
PURCHASE AGREEMENT

    EXHIBIT
“F”

    

    COMMITMENT
FOR TITLE INSURANCE

    Provided
by: First American Title Insurance Company

    Order
No. 287335-WA, Commitment Date of February 6, 2009

    

    

    

    

    

    

    

    

     

    

    

    

    

    

    

    

    

    

    

    
      	 
      	
              GSS

            	
              FF
      LF

            
	 
      	
              3/30/09

            	
              3/26/09

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Plain
      Language Commitment

            	
              Commitment
      No.: 287335-WA

            
	 
      	
              Page
      2 of 10

            

    

    

    

    ALTA
Plain Language Commitment Form

    

    INFORMATION

    

    The Title
Insurance Commitment is a legal contract between you and the Company. It is
issued to show

    the basis
on which we will issue a Title Insurance Policy to you. The Policy will insure
you against certain

    risks to
the land title, subject to the limitations shown in the Policy.

    

    The
Company will give you a sample of the Policy form, if you ask.

    

    The
Policy contains an arbitration clause. All arbitrable matters when the Amount of
Insurance is $2,000,000 or less shall be arbitrated at the option of either the
Company or you as the exclusive remedy of the parties. You may review a copy of
the abritration rules at http://www.alta.org/.

    

    The
Commitment is based on the land title as of the Commitment Date. Any changes in
the land title or

    the
transaction may affect the Commitment and the Policy.

    

    The
Commitment is subject to its Requirements, Exceptions and
Conditions.

    

    THIS
INFORMATION IS NOT PART OF THE TITLE INSURANCE COMMITMENT. YOU SHOULD READ THE
COMMITMENT VERY CAREFULLY.

    

    

    TABLE
OF CONTENTS

    

    

    Page

    

    

    AGREEMENT
TO ISSUE POLICY

    

    

    SCHEDULE
A

    
      	
               
      

            	
              l.

            	
              Commitment
      Date

            

    

    
      	
               
      

            	
              2.

            	
              Polices
      to be Issued, Amounts and Proposed
Insureds

            

    

    
      	
               
      

            	
              3.

            	
              Interest
      in the Land and Owner

            

    

    
      	
               
      

            	
              4.

            	
              Description
      of the Land

            

    

    

    SCHEDULE
B-I -- REQUIREMENTS

    

    

    SCHEDULE
B-II -- EXCEPTIONS

    

    

    CONDITIONS

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Plain
      Language Commitment

            	
              Commitment
      No.: 287335-WA

            
	 
      	
              Page
      3 of 10

            

    

    

    SECOND
REVISED COMMITMENT

    SCHEDULE
A

    

    
      	
              1.

            	
              Commitment
      Date:

            	
              February 06, 2009
      at 7:30
      A.M.

            

    

    

    
      	
              2.

            	
              Policy
      or Policies to be issued:

            

    

    

    
      	 
      	 
      	
              Policy
      Amount

            	
              Premium
      Amount

            
	 
      
	 
      
	 
      	
              Owner’s
      Policy

            
	 
      	
              Standard
      Owner’s Policy (6/17/06) Form 1402-06

            	
              $900,000.00

            	
              $2,555.00

            
	 
      	
              with
      applied credit of

            	 
      	
              $
      None
      Available

            
	 
      
	 
      	
              Proposed
      Insured:

            
	 
      	
              United
      Mine Services, Inc., an Idaho corporation

            
	 
      
	 
      	
              Loan
      Policy

            	 
      
	 
      	
              Extended
      Loan Policy (06/17/06) Form 1056-06

            	
              $1,100,000.00

            	
              $1,349.00

            
	 
      	
              with
      applied credit of

            	 
      	
              $None

            
	 
      	
              Proposed
      Insured:

            
	 
      	
              Mountain
      West Bank, its successors and assigns, as their interests may appear, as
      defined in the paragraph entitled “Definitions of Terms” contained in this
      Policy.

            
	 
      	
              Endorsements:
      9-06, 22-06,
      FA-40

            	
              $
      65.00

            

    

    

    

    

    
      	
              3.

            	
              A
      fee simple interest in the land described in this Commitment is owned, at
      the Commitment Date by:

            

    

    

    
      	 	
              Fred
      A. Forsberg and Linda M. Forsberg, co-Trustee’s of the Family Trust of
      Fred A. Forsberg and Linda M. Forsberg Trust, dated September 26,
      2008

            

    

    

    

    
      	
              4.

            	
              The
      land referred to in this Commitment is described as
    follows:

            

    

    

    
      	 	
              The land referred to herein is
      described in the Legal Description attached
  hereto.

            

    

    

    

    
      	
              Commonly
      known as:

            	
              NKA
      Silver Valley Road, Kellogg, ID
83837

            

    

     

     

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                Plain
      Language Commitment

              	
                Commitment
      No.: 287335-WA

              
	 
      	
                Page
      4 of 10

              

      

      

      

      Exhibit
“A”

      

      Real
property in the County of Shoshone, State of Idaho, described as
follows:

      

      A
parcel of land situated in the Northeast Quarter of the Southwest Quarter and
the Northwest Quarter of the Southeast Quarter of Section 5, Township 48 North,
Range 3 East, B.M., Shoshone County, Idaho and being more particularly described
as follows:

      

      Beginning
at a point where the North-South centerline of said Section 5 intersects the
Northerly right-of-way line of the I-90 frontage road, whence the South Quarter
Corner of said Section 5 bears South 00°51'54" West, 1,486.88 feet distant
(shown of record to be South 00°42' East, 1,485.00 feet);

      

      Thence
South 87°05'43" West, 191.87 feet along said Northerly right-of-way
line;

      

      Thence
North 74°08'05" West, 369.76 feet along said Northerly right-of-way to a point
on the Westerly boundary of a tract described in Deeds Book 77,

      page
66;

      

      Thence
North 12°34'20" East, 928.58 feet along said Westerly boundary to a point on the
East-West centerline of said Section 5;

      

      Thence
North 88°41'55" East, 360.46 feet along said East-West centerline to the Center
Quarter of said Section 5;

      

      Thence
North 88°41'55" East, 63.40 feet along said centerline;

      

      Thence
South 00°00'04" West, 1,010.12 feet to a point on the Northerly right-of-way of
said I-90 frontage road;

      

      Thence
North 87°56'36" West, 78.61 feet along said right-of-way to the point of
beginning.

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                Plain
      Language Commitment

              	
                Commitment
      No.: 287335-WA

              
	 
      	
                Page
      5 of 10

              

      

      

      SCHEDULE
B-SECTION I

      

      REQUIREMENTS

      

      The
following requirements must be met:

      

      
        	
                (a)

              	
                Pay
      the agreed amounts for the interest in the land and/or the mortgage to be
      insured.

              

      

      

      
        	
                (b)

              	
                Pay
      us the premiums, fees and charges for the
  policy.

              

      

      

      
        	
                (c)

              	
                Documents
      satisfactory to us creating the interest in the land and/or the mortgage
      to be insured must be signed, delivered and
  recorded.

              

      

      

      
        	
                (d)

              	
                You
      must tell us in writing the name of anyone not referred to in this
      Commitment who will get an interest in the land or who will make a loan on
      the land. We may then make additional requirements or
      exceptions.

              

      

      

      
        	
                (e)

              	
                Release(s)
      or Reconveyance(s) of items(s) .

              

      

      

      
        	
                (f)

              	
                If
      any document in the completion of this transaction is to be executed by an
      attorney-in-fact, the Power of Attorney must be submitted for review prior
      to closing.

              

      

      

      
        	
                (g)

              	
                Idaho
      Code §31-3504 permits the state or counties that provide indigent medical
      assistance to a lien upon real property of the person provided assistance.
      We require the attached affidavit to be completed prior to recording to
      eliminate an exception to such
lien.

              

      

      

      
        	
                (h)

              	
                With
      respect to Family Trust of Fred A. Forsberg and Linda M. Forsberg, we
      require:

              

      

      
        	
                 
      

              	
                a.

              	
                Copies
      of the trust agreement and any amendments thereto to determine the
      existence of the trust and the power of the trustees to act in the pending
      transaction.

              

      

      
        	
                 
      

              	
                b.

              	
                Other
      requirements which the Company may impose following its review of the
      material required herein and other information which the Company may
      require.

              

      

      

      
        	
                (i)

              	
                With
      respect to United Mine Services, Inc. a corporation, we
      require:

              

      

      
        	
                 
      

              	
                a.

              	
                A
      certified copy of good standing of recent date issued by the secretary of
      state of the corporation’s state of
domicile.

              

      

      
        	
                 
      

              	
                b.

              	
                A
      certified copy of a resolution of the board of directors authorizing the
      contemplated transaction and designating which corporate officers shall
      have the power to execute on behalf of the
  corporation.

              

      

      
        	
                 
      

              	
                c.

              	
                Other
      requirements which the Company may impose following its review of the
      material required herein and other information which the Company may
      require.

              

      

      

      
        	
                (j)

              	
                The
      policy liability contemplated by this transaction exceeds our local limit.
      Underwriter approval must be obtained from the Home Office or Regional
      Office prior to closing. Please contact the title officer in advance of
      the closing date to discuss the specifics of the proposed transaction,
      including identity of proposed insureds, endorsement requirements, and
      exceptions which are to be
eliminated.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                Plain
      Language Commitment

              	
                Commitment
      No.: 287335-WA

              
	 
      	
                Page
      6 of 10

              

      

      

      SCHEDULE
B -SECTION II

      EXCEPTION

      

      Any
policy we issue will have the following exceptions unless they are taken care of
to our satisfaction.

      

      PART
I:

      

      
        	
                1.

              	
                Taxes
      or assessments which are not shown as existing liens by the records of any
      taxing authority that levies taxes or assessments on real property or by
      the public records.

              

      

      

      
        	
                2.

              	
                Any
      facts, rights, interests, or claims which are not shown by the public
      records but which could be ascertained by an inspection of said land or by
      making inquiry of persons in possession
thereof.

              

      

      

      
        	
                3.

              	
                Easements,
      claims of easement or encumbrances which are not shown by the public
      records.

              

      

      

      
        	
                4.

              	
                Any
      encroachment, encumbrance, violation, variation, or adverse circumstance
      affecting the title including discrepancies, conflicts in boundary lines,
      shortage in area, or any other facts that would be disclosed by an
      accurate and complete land survey of the land, and that are not shown in
      the public records.

              

      

      

      
        	
                5.

              	
                (a)
      Unpatented mining claims; (b) reservations or exceptions in patents or in
      Acts authorizing the issuance thereof; (c) water rights, claims or title
      to water, whether or not the matters excepted under (a), (b), or (c) are
      shown by the public records.

              

      

      

      
        	
                6.

              	
                Any
      liens, or rights to a lien, for services, labor or material theretofore or
      hereafter furnished, imposed by law and not shown by the public
      records.

              

      

      

      
        	
                7.

              	
                2009
      taxes are an accruing lien, not yet due and payable until the fourth
      Monday in November of the current year. The first one-half is not
      delinquent until after December 20 of the current year, the second
      one-half is not delinquent until after June 20 of the following year.
      Taxes which may be assessed and entered on the property roll for 2008 with
      respect to new improvements and first occupancy, which may be included on
      the regular property, which are an accruing lien, not yet due and
      payable.

              

      

      

      
        	 	
                General
      taxes as set forth below. Any amounts not paid when due will accrue
      penalties and interest in addition to the amount stated
      herein:

              

      

      

      
        	 
      	
                Year

              	
                Original
      Amount

              	
                Amount
      Paid

              	
                Parcel
      Number

              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                2008

              	
                $3,473.88

              	
                $3,473.88

              	
                48N03E054825

              
	 
      	
                2008

              	
                $3,354.92

              	
                $3,354.92

              	
                48N03E054830

              

      

      

      Homeowners Exemption is not in effect
for 2008.

      Circuit breaker is not in effect for
2008.

      Agricultural Exemption is not in effect
for 2008.

      

      
        	
                8.

              	
                Levies
      and assessments of South Fork Coeur d’Alene River Sewer
      District.

              

      

      

      
        	
                9.

              	
                Levies
      and assessments of Central Shoshone Water
  District.

              

      

      

      
        	
                10.

              	
                Right
      of Way Easement granted to Coeur d’Alene Railway and Navigation Company, a
      corporation, recorded December 1, 1891 in Book X of Deeds, page
      336-338.

              

      

      

      
        	
                11.

              	
                Easement
      granted to The Pacific Telephone and Telegraph Company, its successors and
      assigns, recorded December 20, 1924 in Book 58 of Deeds, page
      237.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                Plain
      Language Commitment

              	
                Commitment
      No.: 287335-WA

              
	 
      	
                Page
      7 of 10

              

      

      

      

      
        	
                12.

              	
                Easements
      and provisions contained in deed to the State of Idaho recorded March 17,
      1939 in Book 70 of Deeds, page 404

              

      

      

      
        	
                13.

              	
                Easement
      granted to The Washington Water Power Company, a corporation, its
      successors and assigns, recorded January 21, 19S5 in Book 89 of Deeds,
      page 329, as Instrument No. 163283.

              

      

      

      
        	
                14.

              	
                Negative
      easements contained in Judgement on Declaration of Taking granted to the
      United States of America, recorded November 8, 1966 as Instrument No.
      207802.

              

      

      

      
        	
                15.

              	
                Ordinance
      No. 56 providing for the Amendment of the Shoshone County Zoning Map
      Adopted Pursuant to Shoshone County Ordinance No. 15, recorded February
      20, 1990 as Instrument No. 341087.

              

      

      

      
        	
                16.

              	
                Lease
      upon the terms, conditions and covenants contained therein: Recorded:
      April 27, 2004, and re-recorded June 1, 2004, as Instrument No. 415962 and
      416583

              

      

      Type of lease: Outdoor Ground
lease

      Term: 1998

      Date of lease: January 27,
1998

      Lessor: Linda M. Forsberg

      Lessee: Young Electric Sign
Company.

      

      
        	
                17.

              	
                Existing
      rights of way, easements and franchise rights of any lot owner or public
      utility in place at time of
vacation.

              

      

      

      
        	
                18.

              	
                Unrecorded
      leaseholds; rights of parties in possession, rights of secured parties,
      vendors and vendees under conditional sales contracts of personal property
      installed on the premises herein, and rights of tenants to remove trade
      fixtures.

              

      

      

      
        	
                19.

              	
                Except
      all minerals in or under said land including but not limited to metals,
      oil, gas, coal, stone, and mineral rights, mining rights, and easement
      rights or other matters relating thereto whether expressed or
      implied.

              

      

      

      

      NOTE:   The
foregoing numbered exceptions (1-6) may be eliminated in an ALTA Extended or
EAGLE Coverage Policy.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                Plain
      Language Commitment

              	
                Commitment
      No.: 287335-WA

              
	 
      	
                Page
      8 of 10

              

      

      

      

      INFORMATIONAL
NOTES

      

      
        	
                A.

              	
                As
      an accommodation and not part of this commitment, no liability is assumed
      by noting the following conveyances describing all or a part of the
      subject property, which have been recorded within the last 24
      months:

              

      

      Quitclaim Deed

      Grantor:
Fred A. Forsberg and Linda M. Forsberg, husband and wife

      Grantee:
Fred A. Forsberg and Linda M. Forsberg, co-trustees of the Family Trust of Fred
A.

      Forseberg
and Linda M. Forsberg, dated September 26, 2008

      

      
        	
                B.

              	
                Other
      than as shown in Schedule B; we find no Judgment Liens, State Tax Liens,
      Federal Tax Liens or Child Support Liens of record which attach to the
      name(s) or interest of the vested owner and/or proposed insured
      owner/borrower.

              

      

      

      
        	
                C.

              	
                Pursuant
      to the State of Idaho Insurance Regulations: A cancellation fee will be
      charged on all cancelled orders, unless notified to the contrary, all
      orders shall be cancelled and a billing sent within 6 months of the
      effective date on the commitment.

              

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                Plain
      Language Commitment

              	
                Commitment
      No.: 287335-WA

              
	 
      	
                Page
      9 of 10

              

      

      

      

      

      

      CONDITIONS

      

      1. DEFINITIONS

      (a)”Mortgage”
means mortgage, deed of trust or other security instrument.

      (b)”Public
Records” means title records that give constructive notice of matters affecting
your title according to the state statutes where the land is
located.

      

      2. LATER DEFECTS

      The
Exceptions in Schedule B - Section II may be amended to show any defects, liens
or encumbrances that appear for the first time in the public records or are
created or attach between the Commitment Date and the date on which all of the
Requirements (a) and (c) of Schedule B - Section I are met. We shall have no
liability to you because of this amendment.

      

      3. EXISTING DEFECTS

      If any
defects, liens or encumbrances existing at Commitment Date are not shown in
Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to
show these defects, liens or encumbrances, we shall be liable to you according
to Paragraph 4 below unless you knew of this information and did not tell us
about it in writing.

      

      4. LIMITATION OF OUR
LIABILITY

      Our only
obligation is to issue to you the Policy referred to in this Commitment, when
you have met its Requirements. If we have any liability to you for any loss you
incur because of an error in this Commitment, our liability will be limited to
your actual loss caused by your relying on this Commitment when you acted in
good faith to:

      

      Comply
with the Requirements shown in Schedule B - Section I or eliminate with our
written consent any Exceptions shown in Schedule B - Section II.

      

      We shall
not be liable for more than the Policy Amount shown in Schedule A of this
Commitment and our liability is subject to the terms of the Policy form to be
issued to you.

      

      5. CLAIMS MUST BE BASED ON THIS
COMMITMENT

      Any
claim, whether or not based on negligence, which you may have against us
concerning the title to the land must be based on this commitment and is subject
to its terms.

      

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSET
PURCHASE AGREEMENT

    EXHIBIT
“G”

    

    CONFIDENTIALITY
AGREEMENT

    (Including
Amendments)

    

    

    

    CONFIDENTIALITY
AGREEMENT

    

    THIS
CONFIDENTIALITY AGREEMENT (the “Agreement”) is entered into and is effective as
of January 30, 2007 by and between Mine Fabrication and Machine, a company
incorporated in the State of Idaho, and its affiliates (collectively “Mine Fab”)
and United Mine Services, an Idaho Corporation, and its affiliates
(collectively, “United”), (hereinafter collectively referred to as the
“Parties”).

    

    
      	
              I.

            	
              Definition of Confidential
      Information

            

    

    

    
      	 	
              UNITED
      will have access to certain confidential information regarding the
      property and business of MINE FAB to be evaluated for the purpose of a
      potential acquisition by UNITED of MINE FAB. The Parties acknowledge that
      the terms and conditions of this Agreement, the nature and existence of
      the discussions between the Parties and information concerning the
      business held by or in evaluation by UNITED, and other information,
      including, but not limited to:

            

    

    

    
      	 	
              (i)

            	
              information
      relating to the properties, assets, and business opportunities of MINE
      FAB;

            

    

    

    
      	 	
              (ii)

            	
              information
      relating to the officers, directors, employees and shareholders of MINE
      FAB; and

            

    

    

    
      	 	
              (iii)

            	
              any
      other information which may from time to time be identified by UNITED, as
      being of a confidential nature and as being subject to the terms and
      conditions of this Agreement,

            

    

    

    
      	 	
              will
      be considered confidential (“Confidential Information”). Confidential
      Information shall not include information that is now, or subsequently
      becomes, generally available to the public through no fault or breach of
      the party receiving such
information.

            

    

    

    
      	
              II.

            	
              Property

            

    

    

    
      	 	
              UNITED
      agrees that all Confidential Information that is in, or on, any medium,
      including without limitation, written, printed, photographic, digital or
      any electronic format and other property, delivered by MINE FAB, or made
      available to UNITED, or otherwise obtained for purposes related to this
      Agreement, is and remains the sale property of MINE FAB. Without the prior
      consent of MINE FAB, UNITED agrees not to make or give permission to make
      copies of any Confidential Information provided by MINE FAB, or otherwise
      obtained by UNITED or its employees, contractors, clients, or
      agents.

            

    

    

    

    
      	 
      	
              GSS

            	
              FF
      LF

            
	 
      	
              3/30/09

            	
              3/26/09

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Page
2 of 4

    

    

    
      	
              III.

            	
              Project
      Discussions

            

    

    

    
      	 	
              It
      is understood that the discussions relating to the properties are
      confidential. No public announcement covering such discussions or
      concerning the existence thereof will be made by GENERAL except if
      required by law and upon written notice to MINE
  FAB.

            

    

    

    
      	
              IV.

            	
              Employee
      Confidentiality

            

    

    

    
      	 	
              UNITED
      agrees that it shall promptly identify to MINE FAB the names of UNITED’S
      employees, contractors, clients, affiliates and agents who will have
      access to Confidential Information and that and that upon written request
      from MINE FAB; shall require each person to provide UNITED with a written
      acknowledgement, in the form set forth as Exhibit A hereto, that such
      person has read and understood this Agreement, and personally agrees to
      comply with the terms thereof, excepting, however, any person already
      bound to and by UNITED standard confidentiality
  agreement.

            

    

    

    
      	
              V.

            	
              Further
      Assurances

            

    

    

    
      	 	
              UNITED
      agrees to take such other actions and to execute such other documents from
      time to time as the Companies feels necessary or advisable to effectuate
      the intent hereof.

            

    

    

    
      	
              VI.

            	
              Terms

            

    

    

    
      	 	
              This
      Agreement shall terminate twenty four (24) months from the date hereof
      unless the Parties agree in writing to amend this Clause VII. Terms and/or
      other clauses contained within the
Agreement.

            

    

    

    
      	
              VII.

            	
              Injunctive
      Relief

            

    

    

    
      	 	
              The
      Parties expressly acknowledge and agree that any breach of this Agreement
      by either party would cause irreparable harm to the other party for which
      damages would not be adequate remedy and, therefore, the Parties hereby
      agree that, in the event of any breach by either of the Parties to this
      Agreement, the other party shall have the right to seek injunctive relief
      against the continuing or further breach by the party breaching the terms
      of the Agreement without the necessity of proof of actual damages. This
      right to seek injunctive relief without necessity of proof of damage shall
      be in addition to any other right which the Parties may have under this
      Agreement or otherwise in law or in
equity.

            

    

    

    
      	
              VIII.

            	
              Notices

            

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    Page
3 of 4

    

    

    
      	 	
              Notices
      and other communications relating to this Agreement shall be sent to the
      Parties at the following addresses:

            

    

    

    UNTITED MINE SERVICES

    Attention: Kurt Hoffman

    P.O. Bo~ 3397

    Post Falls. Idaho 83877

    

    Telephone: 208-773-2250

    Facsimile:  208-773-2471

    E-mail:
kurthoffman@adciphia.net

    

    

    MINE FABRICATION

    Attention:  Fred
Forsberg

    

    

    

    

    Telephone:

    Facsimile:

    E-mail:

    

    

    
      	 	
              IN
      WITNESS WHEREOF, the Parties have caused the Agreement to be executed by
      their duly authorized officers the date first written
    below.

            

    

    

    

    

    

    
      	 
      	
              General
      Mine Services

            
	 
      
	 
      	
              By:

            	
              Kurt
      J. Hoffman

            
	 
      
	 
      	
              Its:

            	
              Director

            
	 
      
	 
      	
              Signed:

            	
              ______________________

            

    

    

    

    

    

    Accepted
this 1st day of February, 2007.

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Page
4 of 4

    

    
      	 
      	
              MINE
      FAB

            
	 
      
	 
      
	 
      
	 
      	
              By:

            	
              Fred
      Forsberg

            
	 
      
	 
      	
              Its:

            	
              President

            
	 
      
	 
      	
              Signed:

            	
              FRED
      FORSBERG

            

    

    

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    Exhibit
A

    

    

    Acknowledgment
and Confidentiality Obligation

    

    

    The
undersigned hereby acknowledges that he/she has read and understands that
certain Confidentiality Agreement dated January 30, 2007 between MINE FAB, and
UNITED MINE SERVICES. In consideration of the undersigned’s employment,
representation or engagement, by UNITED and receipt of the Confidentiality
Information as described in such Agreement, the undersigned agrees to comply
with all the obligations of UNITED in such Agreement as fully and to the same
extent as if the undersigned were signatory thereto.

    

    Acknowledged
and agreed to this 16th day of
November, 2007.

    

    

    
      	 
      	
              Name::

            	
              Erik
      Panke

            
	 
      
	 
      	
              Company:

            	
              United
      Mine Services

            
	 
      
	 
      	
              Address:

            	
              2100
      Denell Way, Boise, ID   83709

            
	 
      
	 
      	
              Re1ation
      to GENERAL:

            	
              Chief
      Financial Officer of U.M.S.

            
	 
      	 
      

    

    

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    AMENDMENT
TO CONFIDENTIALITY AGREEMENT

    

    This
AMENDMENT TO CONFIDENTIALITY AGREEMENT is entered into effective this 28th day of
January, 2008, by and between Mine Fabrication & Machine, Inc., and Idaho
Corporation, and United Mine Services, Inc., an Idaho Corporation.

    

    RECITALS

    

    WHEREAS, Mine Fabrication
& Machine, Inc., an Idaho Corporation, and United Mine Services, Inc., and
Idaho Corporation entered into a Confidentiality Agreement dated effective
January 30, 2007.

    

    WHEREAS, pursuant to Clause
VI. of said Confidentiality Agreement, the Agreement is to terminate on January
30, 2009;

    

    WHEREAS, the purpose of said
Confidentiality Agreement was to facilitate sharing of confidential between the
parties related to the purchase of Mine Fabrication & Machine, Inc. by
United Mine Services, pursuant the that Stock and Sale Agreement entered into by
the parties on April 13, 2007, as amended.

    

    WHEREAS, the transaction under
the Stock Purchase and Sale Agreement, as amended, failed to Close;

    

    WHEREAS, the transaction
contemplated for the mutual release and settlement of claims in a Letter of
Intent entered into by the parties on November 6, 2008 has not yet Closed;
and

    

    WHEREAS, the parties find it
mutually desirable to extend the term of the Confidentiality Agreement in order
to facilitate further sharing of confidential information;

    

    Clause
VI. of the Confidentiality Agreement, the form of which is attached hereto as
Exhibit “A”, shall be amended in its entirety as follows:

    

    NOW THEREFORE, the parties
agree as follows:

    

    “VI.   TERMS.   This
Agreement shall terminate on June 30, 2009 unless the Parties agree in writing
to amend this Clause VI. Terms and/or other clauses contained within the
Agreement.”

    

    

    Except as
expressly amended herein, the Confidentiality Agreement dated effective January
30, 2007 and attached hereto as Exhibit “A” shall remain in full force and
effect.

    

    

    

    

    1

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    IN WITNESS WHEREOF, the
Parties have caused this Amendment to Confidentiality Agreement to be executed
by their duly authorized officers effective on the date first written
above.

    

    
      	
              Mine
      Fabrication & Machine, Inc.

            	
              UNITED
      MINE SERVICES, INC.

            
	 
      
	
              By:

            	
              FRED A.
      FORSBERG

            	
              By:

            	
              ERIK
      PANKE

            
	 
      	
              FRED
      A. FORSBERG, President

            	 
      	
              ERIK
      PANKE, CFO

            

    

    

    

     

    

    

    

    

    

    

    2

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    MUTUAL RELEASE AND
SETTLEMENT OF ALL CLAIMS

    

    

    THIS MUTUAL RELEASE AND SETTLEMENT
AGREEMENT (“Release”) is entered into this 31st day of
March, 2009, by and between FRED A. FORSBERG and LINDA M. FORSBERG, husband and
wife (“Forsbergs”), FORSBERG
INVESTMENTS, INC., an Idaho Corporation formerly known as Mine
Fabrication & Machine, Inc. (“Forsberg Investments”), UNITED MINE SERVICES, INC., an
Idaho Corporation, formerly known as Idaho Mining and Exploration Corporation
(“United Mine Services”).

    

    RECITALS:

    

    A.           Forsbergs
and United Mine Services entered into a Stock Purchase and Sale Agreement dated
April 11, 2007, as amended (“Stock Purchase Agreement”), wherein United Mine
Services agreed to purchase all of the issued and outstanding Shares of Common
Stock in Mine Fabrication & Machine, Inc., owned by the
Forsbergs.

    

    B.           The
transaction agreed to under that Stock Purchase Agreement failed to
close.

    

    C.           The
parties have negotiated the terms and conditions of an Asset Purchase Agreement,
wherein United Mine Services is to purchase certain assets of “Forsberg
Investments” and of the Forsbergs (more specifically, from the Family Trust of
Fred A. Forsberg and Linda M. Forsberg dated September 26, 2008), and both
desire to sell certain assets (“Transferred Assets”) as are fully detailed
within the Asset Purchase Agreement (the “Asset Purchase”).

    

    C.           The
parties desire to mutually release each other and settle all claims that may
exist, now or in the future, relating to the Stock Purchase
Agreement.

    

    NOW, THEREFORE, in consideration of the
covenants, agreements, representations and warranties contained within this
Release, the parties hereto hereby agree as follows:

    

    1.           Release. In
accordance with Paragraph 11.3 of the Asset Purchase Agreement, and solely
relating to that arising under the Stock Purchase Agreement, each undersigned
party, and their respective successors and assigns, hereby, as a free and
voluntary act, mutually releases, remises, acquits and discharges each other,
including all officers, directors, shareholders, members, owners, trustees,
administrators, agents, attorneys, accountants, insurers, representatives,
employees, successors, heirs, administrators and assigns thereof, from any and
all claims, demands, damages, lawsuits, obligations, promises, charges, and
causes of action (whether at law, in equity or otherwise), rights, costs,
attorneys’ fees, expenses, debts, liabilities, payments, accounts, suits,
contracts, agreements, promises, rights, and remedies of any nature whatsoever,
that exist, have existed or may exist, whether known or unknown, in tort, in
contract, by statute, or any other basis for compensatory, punitive, or other
damages, expenses, reimbursements of costs of any kind, including, but not
limited to any and all claims, demands, rights and or causes of action, arising
up to the date of execution of this Release.

    

    

    

    1

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    It is understood and agreed that this
is a full and final release between all parties hereto, and a full compromised
settlement of any and all claims of every nature and kind whatsoever, and
releases of all claims, whether known or unknown, suspected or unsuspected, with
respect to said Stock Purchase Agreement.

    

    The undersigned parties warrant that no
promise or inducement has been offered except as herein set forth and that this
Release is executed without reliance upon any statement or representation by the
parties except as given in this Release. The undersigned parties have not relied
upon statements or representations offered by the parties’ representatives or
counsel concerning the nature and extent of purported injuries and/or damages
and/or legal liability asserted by either party.

    

    2.           Indemnification. The
undersigned parties further mutually agree to and shall indemnify and hold
harmless each other, their predecessor transferors, transferees, assigns, heirs,
and representatives, against any and all such debts, liabilities, chases in
action, or claims of any nature, absolute or contingent, together with all
expenses and legal fees resulting from any such breach, untruth, or inaccuracy,
act, liability, or obligation which may be incurred to compromise or defend such
liabilities, chases in action, or claims of any nature, absolute or contingent,
arising from the Stock Purchase Agreement. Each party shall notify the other of
any such liability, asserted liability, breach of warranty, untruth, or
inaccuracy of representation, or any claim thereof, with reasonable
promptness.

    

    3.           Effective Date. This
Release shall become effective on the date indicated on the first page hereof,
but only after being fully signed by the parties hereto.

    

    4.           Warranty of Capacity to
Execute Agreement. The undersigned parties hereto warrant that no other
person or entity has the right to enter into this Release, and that the
undersigned parties have the sole right and exclusive authority to execute this
Release for the exchange and receipt of the promises and sum specified in
it.

    

    5.           Confidentiality. As
part of the consideration for the promises payable under this Agreement, both
undersigned parties agree that neither they nor their attorneys, agents,
assignees, or successors shall reveal to or discuss with anyone, including the
media, other than as may be agreed to in writing by both parties to this Release
or as may be required by law, the names or identities of the parties released
hereby, or any of the other terms or conditions of this Agreement, except that
both parties may disclose such information to immediate family members or to
persons providing legal, financial, or counseling services to the parties
provided that any family members or persons receiving the information shall be
instructed and shall agree not to publish or further disclose the
information.

    

    6.           Non-Disparagement.
The parties hereto mutually agree that, following the entry into this Release,
he, she or it will make no written or oral statements that directly or
indirectly disparages the other party in any manner whatsoever. It will not be a
violation of this covenant for either party to make truthful statements, under
oath, as required by law or formal legal process.

    

    7.           Non-Waiver. The
undersigned parties hereby mutually agree that neither Forsberg nor the
Corporation are waiving any rights or claims under the terms and conditions of
the Asset Purchase Agreement between the parties hereto.

    

    

    2

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    8.           Not Construed Against
Drafter. The essential terms and conditions contained in this Release
have been mutually negotiated between the parties hereto. No ambiguity in this
instrument shall be construed or interpreted as against the preparer of this
Release, as each party contributed to drafting of the provisions
hereof.

    

    9.           Attorney’s Fees. In
the event any suit or action is instituted to enforce this Release, the
prevailing party shall be entitled to recover, in addition to costs and expenses
provided by statute or otherwise, such sums as the court may adjudge reasonable
as attorney’s fees at trial or on appeal from judgment or decree entered at
trial.

    

    10.         Counterparts. This
Assignment may be executed in any number of counterparts, each of which, when
executed, shall be deemed to be an original, and all of which together shall be
deemed to be one and the same instrument.

    

    11.         Governing Law. This
Agreement shall be construed and interpreted according to the laws of the State
of Idaho.

    

    12.     
    Full Understanding of
Agreement. WE HAVE COMPLETELY READ THIS MUTUAL RELEASE AND
INDEMNIFICATION AGREEMENT AND FULLY UNDERSTAND AND VOLUNTARILY ACCEPT IT FOR THE
PURPOSE OF FINAL RESOLUTION OF ANY AND ALL CLAIMS, DISPUTED OR OTHERWISE, AND
FOR THE EXPRESS PURPOSE OF PRECLUDING FOREVER ANY OTHER CLAIMS ARISING OUT OF OR
IN ANY WAY CONNECTED WITH THE STOCK PURCHASE AGREEMENT.

    

    WE RECOGNIZE THAT THE FUTURE COURSE OF
PRESENT INJURY, DAMAGES, OR LOSS CANNOT BE PREDICTED WITH CERTAINTY. WE ASSUME
THE RISK THAT THE CLAIMED DAMAGES MAY WORSEN IN THE FUTURE AND THAT NEW DAMAGES
MAY DEVELOP. WE ACKNOWLEDGE THAT ALL INFORMATION REGARDING CLAIMS MADE IS
SUFFICIENT TO ENTER INTO THIS MUTUAL RELEASE AND SETTLEMENT AGREEMENT AND THE
PARTIES EXPRESSLY WAIVE ANY CLAIM THAT THIS MUTUAL RELEASE AND SETTLEMENT
AGREEMENT IS NOT FAIRLY AND KNOWINGLY MADE.

    

    DATED this 31st day of
March, 2009.

    

    
      	
              FORSBERGS:

            	
              UNITED MINE SERVICES,
      INC.

            
	 
      	 
      	 
      
	
              FRED A.
      FORSBERG

            	
              By:

            	
              GREG
      STEWART

            
	
              FRED
      A. FORSBERG

            	 
      	
              Greg
      Stewart, President & CEO

            
	 
      	 
      
	
              LINDA M.
      FORSBERG

            	 
      
	
              LINDA
      M. FORSBERG

            	 
      
	 
      	 
      
	 
      
	
              FORSBERG INVESTMENTS
      INC.

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              FRED A.
      FORSBERG

            	 
      	 
      
	 
      	
              FRED
      A. FORSBERG, President

            	 
      

    

    3

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	
              STATE
      OF IDAHO

            	
              )

            

    

    : ss.

    
      	
              County
      of Shoshone

            	
              )

            

    

    

    

    On this 31 day of March, 2009,
personally appeared before me FRED A. FORSBERG and LINDA M. FORSBERG, husband
and wife, to me known to be the individuals described in and who executed the
within and foregoing instrument, and acknowledged that they signed the same as
their free and voluntary act and deed, for the uses and purposes therein
mentioned.

    

    GIVEN under my hand and official seal
the day and year first above written.

    

    

    

    
      	 
      	
              SHAWNA M.
      FLOOD

            
	
              [SEAL]

            	
              Notary
      Public in and for the State of Idaho

            
	 
      	
              Idaho,
      residing at Osburn, ID.

            
	 
      	
              My
      commission expires: 10/10/2012

            

    

    

    

    

    

    

    
      	
              STATE
      OF IDAHO

            	
              )

            

    

    : ss.

    
      	
              County
      of Shoshone

            	
              )

            

    

    

    

    On this 31 day of March, 2009,
personally appeared before me FRED A. FORSBERG, to me known to be the President
of FORSBERG INVESTMENTS, INC., an Idaho Corporation formerly known as Mine
Fabrication & Machine, Inc., the corporation that executed the foregoing
instrument, and acknowledged that the said instrument to be the free and
voluntary act of said Corporation, for the uses and purposes therein mentioned,
and on oath stated that he was duly authorized to execute the said instrument on
behalf of said Corporation.

    

    GIVEN under my hand and official seal
the day and year first above written.

    

    

    

    
      	 
      	
              SHAWNA M.
      FLOOD

            
	
              [SEAL]

            	
              Notary
      Public in and for the State of Idaho

            
	 
      	
              Idaho,
      residing at Osburn, ID.

            
	 
      	
              My
      commission expires: 10/10/2012

            

    

    

    

    

    

    4

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	
              STATE
      OF IDAHO

            	
              )

            

    

    : ss.

    
      	
              County
      of Shoshone

            	
              )

            

    

    

    

    On this 31 day of March, 2009,
personally appeared before me GREG STEWART, to me known to be the President and
CEO of UNITED MINE SERVICES, INC., an Idaho Corporation, the corporation that
executed the foregoing instrument, and acknowledged that the said instrument to
be the free and voluntary act of said corporation, for the uses and purposes
therein mentioned, and on oath stated that he was duly authorized to execute the
said instrument on behalf of said Corporation.

    

    GIVEN under my hand and official seal
the day and year first above written.

    

    

    

    
      	 
      	
              SHAWNA M.
      FLOOD

            
	
              [SEAL]

            	
              Notary
      Public in and for the State of Idaho

            
	 
      	
              Idaho,
      residing at Osburn, ID.

            
	 
      	
              My
      commission expires: 10/10/2012

            

    

    

    

    

    

    

    

    

    5

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    ASSET
PURCHASE AGREEMENT

    SCHEDULE
2.4

    

    SCHEDULE
OF LIENS

    

    

    None.

    

    

    

     

    

    

    

    

    

    

    

    

    
      	 
      	
              GSS

            	
              FF
      LF

            
	 
      	
              3/30/09

            	
              3/26/09

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ASSET
PURCHASE AGREEMENT

    SCHEDULE
2.5(c)

    

    DISCLOSURE
OF REAL PROPERTY CONDITION

    

    
      	
              1.

            	
              The
      southwest corner of the paint shed located on the Real Property may, or
      may not, encroach upon the right-of-way of Silver Valley Road (a.k.a. East
      Highway 10). Neither Linda nor Fred Forsberg are experts as to the values
      of real property and cannot give any representation and warranty as to
      what, if any, such possible encroachment may have on the value of the Real
      Property.

            

    

    

    
      	
              2.

            	
              All
      of those items listed in “PART I” of “SCHEDULE B-SECTION II EXCEPTIONS” to
      the Commitment for Title Insurance, issued by First American Title
      Insurance Company as Order No. 287335-WA, and attached to the Asset
      Purchase Agreement as Exhibit “F”, are by this reference made part of this
      Schedule 2.5(c).

            

    

    

    

    

    

    

    

     

    

    

    

    

    

    

    

    
      	 
      	
              GSS

            	
              FF
      LF

            
	 
      	
              3/30/09

            	
              3/26/09

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    ASSIGNMENT
AND ASSUMPTION OF LEASE AGREEMENT

    

    THIS ASSIGNMENT, dated March
31, 2009, is between FRED A.
FORSBERG AND LINDA M. FORSBERG, husband and wife, herein collectively
called “Assignor”, and UNITED
MINE SERVICES, INC., an Idaho Corporation, herein called
“Assignee”.

    

    WHEREAS, Assignor is the owner
of certain real property known as NKA Silver Valley Road, Kellogg, Idaho, as
more fully described on Exhibit “A” hereto (hereinafter referred to as the
“Premises”);

    

    WHEREAS, Assignor as Lessor,
leased a portion of the Premises to Young Electric Sign Company as Lessee,
pursuant to the terms and conditions of that Outdoor Ground Lease dated January
27, 1998, a copy of which is attached hereto as Exhibit “B” (the
“Lease”).

    

    WHEREAS, Assignor is a party
to an Asset Purchase Agreement dated effective March 31, 2009 with Assignee,
wherein Assignee is purchasing the Premises from Assignor.

    

    WHEREAS, in order to fully
effectuate the purchase and sale transaction between Assignor and Assignee,
Assignor intends to assign all of their right, title and interest as Lessor
under the Lease to Assignee; and

    

    WHEREAS, Assignee desires to
assume and agrees to perform all of Assignor’s obligations under said Lease
pursuant to the terms contained therein and pursuant to this Assignment, and
Assignee further agrees to assume all obligations, liabilities and expenses as
Lessor as provided for under said Lease as assigned to it by
Assignor.

    

    NOW, THEREFORE, in
consideration of the premises, the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Assignment and
      Assumption of Lease
Agreement.

            

    

    

    a.           Assignor
hereby grants, assigns, conveys, sets over and delivers to Assignee all of their
right, title and interest in and to the Lease of the Premises, together with all
rights and appurtenances belonging or appertaining thereto.

    

    b.           Assignee
agrees to keep such Lease in full force and effect in accordance with its terms,
and hereby accepts and agrees to assume the obligations therein and agrees to be
bound by all of the terms, conditions and covenants applicable to the Lessor
under the Lease and this Agreement and further acknowledges receipt of executed
copies of said Lease, which is attached hereto as Exhibit “B”.

    

    

    

    

    1

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    2.           Indemnification. Assignor hereby indemnifies
and holds Assignee harmless from any and all claims, demands, damages, lawsuits,
obligations, promises, charges, and causes of action (whether at law, in equity
or otherwise), rights, costs, attorneys’ fees, expenses, debts, liabilities,
payments, accounts, suits, contracts, agreements, promises, rights, and remedies
of any nature whatsoever, whether known or unknown, of or relating to said Lease
arising prior the Effective Date hereof.

    

    Assignee hereby indemnifies and holds
Assignor harmless from any and all claims, demands, damages, lawsuits,
obligations, promises, charges, and causes of action (whether at law, in equity
or otherwise), rights, costs, attorneys’ fees, expenses, debts, liabilities,
payments, accounts, suits, contracts, agreements, promises, rights, and remedies
of any nature whatsoever, whether known or unknown, of or relating to said
Leases arising after the Effective Date hereof.

    

    IN WITNESS WHEREOF, the
Assignor and Assignee have signed and sealed this Assignment as of the date
indicated on the first page hereof.

    

    

    
      	
              ASSIGNOR:

            	
              ASSIGNEE:

            
	 
      	 
      
	 
      	
              UNITED
      MINE SERVICES, INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              FRED A.
      FORSBERG

            	
              By:

            	
              GREG
      STEWART

            
	
              FRED
      A. FORSBERG

            	 
      	
              Greg
      Stewart, President & CEO

            
	 
      	 
      
	
              LINDA M.
      FORSBERG

            	 
      
	
              LINDA
      M. FORSBERG

            	 
      

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    2

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	
              STATE
      OF IDAHO

            	
              )

            

    

    : ss.

    
      	
              County
      of Shoshone

            	
              )

            

    

    

    

    On this 31 day of March, 2009,
personally appeared before me FRED A. FORSBERG and LINDA M. FORSBERG, husband
and wife, to me known to be the individuals described in and who executed the
within and foregoing instrument, and acknowledged that they signed the same as
their free and voluntary act and deed, for the uses and purposes therein
mentioned.

    

    GIVEN UNDER my hand and official seal
the day and year first above written.

    

    

    

    
      	 
      	
              SHAWNA M.
      FLOOD

            
	
              [SEAL]

            	
              Notary
      Public in and for the State of Idaho

            
	 
      	
              Idaho,
      residing at Osburn, ID.

            
	 
      	
              My
      commission expires: 10/10/2012

            

    

    

    

    
      	
              STATE
      OF IDAHO

            	
              )

            

    

    : ss.

    
      	
              County
      of Shoshone

            	
              )

            

    

    

    

    On this 31 day of March, 2009,
personally appeared before me GREG STEWART, to me known to be the President and
CEO of UNITED MINE SERVICES, INC., an Idaho Corporation, the corporation that
executed the foregoing instrument, and acknowledged that the said instrument to
be the free and voluntary act of said corporation, for the uses and purposes
therein mentioned, and on oath stated that he was duly authorized to execute the
said instrument on behalf of said Corporation.

    

    GIVEN UNDER my hand and official seal
the day and year first above written.

    

    

    

    
      	 
      	
              SHAWNA M.
      FLOOD

            
	
              [SEAL]

            	
              Notary
      Public in and for the State of Idaho

            
	 
      	
              Idaho,
      residing at Osburn, ID.

            
	 
      	
              My
      commission expires: 10/10/2012

            

    

    

    

    

    

    

    

    

    3

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
“A”

    PREMISES

    

    A parcel
of land situated in the Northeast Quarter of the Southwest Quarter and the
Northwest Quarter of the Southeast Quarter of Section 5, Township 48 North,
Range 3 East, B.M., Shoshone County, Idaho and being more particularly described
as follows:

    

    Beginning
at a point where the North-South centerline of said Section 5 intersects the
Northerly right-of-way line of the I-90 frontage road, whence the South Quarter
Corner of said Section 5 bears South 00°51'54" West, 1,486.88 feet distant
(shown of record to be South 00°42' East, 1,485.00 feet);

    

    Thence
South 87°05'43" West, 191.87 feet along said Northerly right-of-way
line;

    

    Thence
North 74°08'05" West, 369.76 feet along said Northerly right-of-way to a point
on the Westerly boundary of a tract described in Deeds Book 77,

    page
66;

    

    Thence
North 12°34'20" East, 928.58 feet along said Westerly boundary to a point on the
East-West centerline of said Section 5;

    

    Thence
North 88°41'55" East, 360.46 feet along said East-West centerline to the Center
Quarter of said Section 5;

    

    Thence
North 88°41'55" East, 63.40 feet along said centerline;

    

    Thence
South 00°00'04" West, 1,010.12 feet to a point on the Northerly right-of-way of
said I-90 frontage road;

    

    Thence
North 87°56'36" West, 78.61 feet along said right-of-way to the point of
beginning.

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
“B”

    LEASE
AGREEMENT

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSIGNMENT
OF TRADE NAMES

    

    

    Seller hereby assigns its right, title,
and interest in and to the following names to United Mine Services, Inc., free
and clear of all claims and encumbrances:

    

    
      	
               
      

            	
              •

            	
              Mine
      Fabrication & Machine, Inc.

            

    

    
      	
               
      

            	
              •

            	
              Mine
      Fabrication & Machine

            

    

    
      	
               
      

            	
              •

            	
              Mine
      Fab & Machine, Inc.

            

    

    
      	
               
      

            	
              •

            	
              Mine
      Fab & Machine

            

    

    
      	
               
      

            	
              •

            	
              Mine
      Fabrication and Machine, Inc.

            

    

    
      	
               
      

            	
              •

            	
              Mine
      Fabrication and Machine

            

    

    
      	
               
      

            	
              •

            	
              Mine
      Fab and Machine, Inc.

            

    

    
      	
               
      

            	
              •

            	
              Mine
      Fab and Machine

            

    

    
      	
               
      

            	
              •

            	
              Mine
      Fab

            

    

    

    

    

    
      	 
      	
              Forsberg
      Investments, Inc., Seller

            
	 
      	 
      
	 
      	 
      
	
              Signed:

            	
              FRED A.
      FORSBERG

            
	 
      	
              By:  Fred
      A. Forsberg, President

            

    

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    ASSET
PURCHASE AGREEMENT

    SCHEDULE
2.13

    

    CONTRACTS
& PURCHASE ORDERS

    

    

    
      	
              1.

            	
              Contract
      with F&H Mine Supply regarding Gardner Denver TUL Underground Jack
      Legs and Midwest Underground TFL Underground Jack
  Legs.

            

    

    

    
      	
               
      

            	
              Seller
      has a contract with F&H Mine Supply regarding TFL and TUL drill
      machine legs and component parts as
follows:

            

    

    

    
      	
               
      

            	
              (a)

            	
              F&H
      Mine Supply has the exclusive rights to market and sell the above-listed
      products.

            

    

    

    (b)           Seller
agrees to sell the above listed products exclusively to F&H Mine
Supply.

    

    (c)           Pricing
is as negotiated between the Seller and F&H Mine Supply.

    

    (d)           Payment
is due by F&H Mine Supply within 30 days of delivery.

    

    
      	
               
      

            	
              (e)

            	
              To
      the best of Seller’s knowledge and without investigation, there is no
      agreed period of time this under this Contract for which either F&H
      Mine Supply or Seller is bound.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Seller
      has been unable to locate its copy of any written contract. That suggests
      that there may be no written
contract.

            

    

    

    

    2.           Contract
with F&H Mine Supply regarding Dywidag Rock Bolt Products.

    

    Seller has a contract with F&H Mine
Supply for Dywidag rock bolt products as follows:

    

    
      	
               
      

            	
              (a)

            	
              F&H
      Mine Supply purchases all Dywidag rock bolt products from Dywidag System,
      Inc.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Dywidag
      rock bolt products are delivered to Seller by F&H Mine Supply and
      maintained in a separate inventory owned by F&H Mine Supply. F&H
      Mine Supply has full authority to perform inventory counts on Seller’s
      premises at any time. As provided in Section 2.20 of the Asset Purchase
      Agreement, no shortage exists in any finished goods owned by F&H Mine
      Supply stored upon the Real Property or otherwise, or any other item of
      personal property owned

            

    

    

    
      	 
      	
              GSS

            	
              FF
      LF

            
	 
      	
              3/30/09

            	
              3/26/09

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    by
another for which the Seller is accountable to another. Without limiting the
foregoing, all items of personal property for which the Seller is accountable
under any bailment agreement, consignment contract, loan program, or otherwise
are fully accounted for with no shortages or missing or lost items, are in
workable, usable, and saleable condition, and have suffered no damage or
deterioration.

    

    
      	
               
      

            	
              (c)

            	
              Seller
      processes F&H Mine Supply inventory as needed, and when Dywidag rock
      bolt products are ordered from local (Idaho) customers, Seller informs
      F&H Mine Supply for billing purposes (i.e., F&H Mine Supply bills
      Seller for F&H Mine Supply inventory processed by Seller, unless the
      product is being processed for an out-of-state customer, in which case
      F&H Mine Supply does not bill Seller for F&H Mine Supply inventory
      used, but the reduction in inventory is noted in writing by
      Seller).

            

    

    

    
      	
               
      

            	
              (d)

            	
              Dywidag
      butterfly plates are not kept on Seller’s premises, and hence, they are
      not maintained as part of F&H Mine Supply’s inventory on Seller’s
      premises. Dywidag butterfly pates are furnished to Seller by F&H Mine
      Supply when they are ordered by Seller’s local (Idaho) customers for
      delivery by Seller.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Seller
      cuts Dywidag rods (bars) to various lengths as required. The rods are
      banded and nuts are installed on them, normally 100 nuts per
      bundle.

            

    

    

    
      	
               
      

            	
              (f)

            	
              For
      local (Idaho) customers, Seller delivers the finished products to local
      mining companies and Seller bills those
  customers.

            

    

    

    
      	
               
      

            	
              (g)

            	
              For
      out-of-state (non-Idaho) customers, the finished products are picked up
      from the Seller by F&H Mine Supply, and Seller bills F&H Mine
      Supply for the processing the materials, and such billing does NOT include
      the price of any F&H Mine Supply inventory
  used.

            

    

    

    
      	
               
      

            	
              (h)

            	
              Seller’s
      cost for Dywidag products (paid to F&H Mine Supply for local Idaho
      customer purchase orders) is as
follows:

            

    

    

    
      	 
      	
              DDBP12X11

            	
              BUTTERFLY
      PLATE 12” X 11”

            	
              $2.54
      each

            
	 
      	
              DDBP11X16

            	
              BUTTERFLY
      PLATE 11” X 16”

            	
              $3.90
      each

            
	 
      	
              DD748BAR

            	
              DYWIDAG
      #7 BAR X 48 FT

            	
              $1.55
      per linear foot

            
	 
      	
              DD7N

            	
              DYWIDAG
      NUT, #7 DOMED

            	
              $1.66
      each

            
	 
      	
              DD848

            	
              DYWIDAG
      #8 BAR X 48 FT

            	
              $2.05
      per linear foot

            
	 
      	
              DD8N

            	
              DYWIDAG
      NUT, #8 DOMED

            	
              $2.13
      each

            
	 
      	
              DD8C

            	
              DYWIDAG
      COUPLERS, #8

            	
              $4.10
      each

            

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (i)

            	
              For
      local (Idaho) customers, Seller’s billing is at regular shop rates, which
      are subject to change depending on Seller’s cost of F&H Mine Supply
      inventory used, market conditions, etc. Currently, Seller’s prices for
      Dywidag products delivered to local (Idaho) customers is as
      follows:

            

    

    

    
      	 
      	
              BUTTERFLY
      PLATE 12” X 11”   (a.k.a. a 12x12)

            	
              $
      3.65 each

            
	 
      	
              BUTTERFLY
      PLATE 11” X 16”   (a.k.a a 12x16)

            	
              $
      4.99 each

            
	 
      	
              DYWIDAG
      #7 ROD X 4 FT w/NUTS

            	
              $
      9.89 set

            
	 
      	
              DYWIDAG
      #7 ROD X 6 FT w/NUTS

            	
              $13.45
      set

            
	 
      	
              DYWIDAG
      #7 ROD X 8 FT w/NUTS

            	
              $17.02
      set

            
	 
      	
              DYWIDAG
      #7 ROD X 12 FT w/NUTS

            	
              $27.64
      set

            
	 
      	
              DYWIDAG
      NUT, #7 DOMED

            	
              $
      1.89 each

            
	 
      	
              DYWIDAG
      #8 ROD X 4 FT

            	
              $10.94
      each

            
	 
      	
              DYWIDAG
      #8 ROD X 6 FT

            	
              $15.96
      each

            
	 
      	
              DYWIDAG
      #8 ROD X 8 FT

            	
              $20.98
      each

            
	 
      	
              DYWIDAG
      #8 ROD X 12 FT

            	
              $31.27
      each

            
	 
      	
              DYWIDAG
      NUT, #8 DOMED

            	
              $
      2.56 each

            
	 
      	
              DYWIDAG
      COUPLERS #8

            	
              $
      5.13 each

            

    

    

    **If a
Dywidag #7 rod is sold without the nuts, the nut price of $1.89 is simply
subtracted from the set prices above.  The prices for sale of Dywidag
#8 products listed above do NOT include #8 nuts.

    

    
      	
               
      

            	
              (j)

            	
              For
      Dywidag products to be processed by Seller and delivered by F&H Mine
      Supply to out-of-state (non-Idaho) customers, Seller bills F&H Mine
      Supply sixty-five cents ($.65) for each #7 rod cut that is less than ten
      (10) feet in length; eighty-five cents ($.85) for each #7 rod cut that is
      ten (10) feet or longer in length; eighty-five cents ($.85) for each #8
      rod cut that is less than ten (10) feet in length; and one dollar and ten
      cents ($1.10) for each #8 rod cut that is ten (10) feet or longer in
      length in length.

            

    

    

    (k)           Payment
is due by customer within 30 days of delivery.

    

    
      	
               
      

            	
              (l)

            	
              To
      the best of Seller’s knowledge and without investigation, there is no
      agreed period of time this under this Contract for which either F&H
      Mine Supply or Seller is bound.

            

    

    

    
      	
               
      

            	
              (m)

            	
              Seller
      has been unable to locate its copy of any written contract. That suggests
      that there may be no written
contract.

            

    

    

    

    
      	
              3.

            	
              F&H
      Mine Supply’s open Purchase Order with Seller, Purchase Order #59831, in
      an amount of $39,500.00, for 10,000 HP316 Hanger Plates, at a price of
      $3.95 per plate. Seller has completed 55% of this
  Purchase

            

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Order,
with delivery of 2,500 plates to F&H Mine Supply on March 13, 2009, and
delivery of another 3,000 plates to F&H Mine Supply on March 23, 2009.
Seller anticipates that the remaining 45% of the Purchase Order will be
completed on before March 31, 2009. There is no promised date for completion
this Purchase Order. A copy of Purchase Order #59831 is attached hereto. Payment
is due by customer within 30 days of each delivery of product to
customer.

    

    

    
      	
              4.

            	
              The
      New Bunker Hill Mine’s contract with Seller for rebuild of a Andergay
      Dynamic Pulverizer (rotary crusher) mounted on a trailer, at an estimated
      total contract price of $22,000 (see copy of attached proposal). Seller is
      responsible solely for the portion of the contract listed under the “Mine
      fab basic fabrication quote” in the attached proposal dated June 23, 2008.
      The latter portion of the contract, titled “tooling and crusher blocks
      with personal shop time” and “design and drawings” has been completed by
      Zephyr Design & Engineering. The New Bunker Hill Mining Company paid
      $10,000 towards the total contract price on Invoice #43925 (copy
      attached), leaving a balance of approximately $12,000 when the contract is
      completed. Seller anticipates that the contract will be completed by March
      31, 2009. The estimated time to finish the work required under this
      contract is fifty (50) hours, billable at a rate of $68.00 per hour, for a
      total of $3,800; therefore, this contract is approximately 83% complete.
      There is no promised date for completion of this contract. Payment is due
      by the customer within 30 days of
delivery.

            

    

    

    

    
      	
              5.

            	
              Hojem
      Redemption Agreement (pursuant to which 25,000 Shares of Seller’s Stock
      owned by Carl and Tina Hojem were redeemed by the Seller on May 1, 1998).
      This Agreement is now complete. A copy of this Agreement could not be
      readily found to obtain the exact title of the
  document.

            

    

    

    

    
      	
              6.

            	
              Stock
      Purchase and Sale Agreement dated April 11, 2007, under which any
      obligation of the Seller shall terminate upon Closing and concurrent
      execution of the Exhibit “H” Mutual Release and Settlement of All
      Claims.

            

    

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    ASSET
PURCHASE AGREEMENT

    SCHEDULE
2.17

    

    DISCLOSURE OF NON-CONFORMITY
WITH BUSINESS DEVELOPMENT PERMITS

    

    
      	
               
      

            	
              1.

            	
              When
      the newest addition (tallest portion) to the welding shop located on the
      Real Property was constructed during 1999, as conditions of the Business
      Development Permit (building permit) approved by the City of Kellogg
      Planning and Zoning Department on February 16, 1999 (a copy of which is
      attached), Seller and/or Forsbergs were required to install slats in its
      existing chain link fence across the front of the Real Property (along the
      southern edge of the Real Property running parallel to Sliver Valley
      Road), construct a sidewalk or paved path across the front of the property
      (along the southern edge of the Real Property running parallel to Sliver
      Valley Road) within five years from approval of the building permit with
      all adjacent landowners, and plant and maintain new landscaping (trees).
      Trees were planted and have been maintained; however, to date, Seller
      and/or Forsbergs have neither installed slats in the fence nor constructed
      said paved path or sidewalk, but an occupancy permit was nonetheless
      issued following completion of construction of the addition to the
      building.  Currently, there is no sidewalk or paved path
      adjacent to the Real Property that would connect into a sidewalk or paved
      path built along the southern edge of the Real Property, including
      adjacent property on which Dave Smith Motors Operates.  Neither
      Seller nor Forsbergs have had any communications with the City of Kellogg
      Planning and Zoning Commission regarding its failure to install slats in
      its existing chain link fence or failure to construct a paved path or
      sidewalk along the Real Property.

            

    

    

    
      	
               
      

            	
              2.

            	
              When
      a permit for expanded use was applied for by one of the Seller’s and/or
      Frosbergs’ tenants, as conditions of the Business Development Permit
      (expanded use permit) approved by the City of Kellogg Planning and Zoning
      Department for expansion of the use of the current paint shed on the Real
      Property to include a truck and car repair business operated by a former
      tenant on June 24, 1999 (a copy of which is attached), Forsbergs and/or
      Tenant were required to preserve existing trees, construct a sidewalk
      within 4 years of approval of the permit, and install adequate site
      lighting for the security of their patrons, property, and employees. While
      Seller and Forsbergs have preserved existing trees, no sidewalk has been
      constructed. Currently, there is no sidewalk or paved path adjacent to the
      Real Property that would connect into a sidewalk or paved path built along
      the southern edge of the Real Property, including adjacent property on
      which Dave Smith Motors Operates. Neither Seller nor Forsbergs have had
      any communications with the City of Kellogg Planning and Zoning Commission
      regarding its failure to construct a sidewalk along the Real Properly
      since August 2, 2004 (a copy of the letter received by Seller and
      Forsbergs on that date is attached
hereto).

            

    

    

    

    
      	 
      	
              GSS

            	
              FF
      LF

            
	 
      	
              3/30/09

            	
              3/26/09

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    GUARANTY OF OBLIGATIONS OF
STEWARTS

    

    

    THE UNDERSIGNED, GREG STEWART and
_____________ STEWART, husband and wife, do hereby, unconditionally
guarantee payment when due by UNITED MINE SERIVCES, INC., an
Idaho Corporation (“United Mine Services”), of each installment due on its two
Promissory Notes, dated March 31, 2009, which are payable to the order of FORSBERG INVESTMENTS, INC., an
Idaho Corporation formerly known as Mine Fabrication & Machine, Inc.
(“Forsberg Investments”) in the principal sums of Four Hundred Eighty-five
Thousand Dollars ($485,000.00) and Five Hundred Thousand Dollars ($500,000.00),
respectively.

    

    Upon default by United Mine Services in
making any of the principal payments due on either or both of said Notes for a
period of ten (10) days following hand delivery or mailing of a notice of
default to Company by registered mail, the undersigned agrees that Forsberg
Investments may, without seeking to collect any such due amounts from United
Mine Services, demand and receive payment of all delinquent principal, and
accrued interest, if any, due under either or both of the Notes from the
undersigned.

    

    The undersigned hereby agrees to pay
all expenses incurred by Forsberg Investments in connection with the enforcement
of Forsberg Investments’ rights under this Guaranty, as well as court costs,
collection charges, and attorney fees and disbursements.

    

    Nothing shall discharge or satisfy the
liability of the undersigned hereon except the full performance or payment of
the said obligation of United Mine Services.

    

    If United Mine Services should at any
time make a general assignment, or if a Petition in Bankruptcy, or any respect
of United Mine Services, any and all obligations of the undersigned shall at the
option of Forsberg Investments forthwith become due and payable.

    

    Any notice required by law of any sale,
public or private, of all or any part of the Collateral shall be deemed in all
circumstances to have been given in a commercially reasonable manner if sent at
least thirty (30) days prior to such sale by mail to the
undersigned.

    

    The undersigned agrees that the
liability on this Guaranty shall be immediate.

    

    Cessation of the liability of United
Mine Services, for any reason other than full payment, or any extension,
forbearance, change of rate of interest, or acceptance, release, or substitution
of any security or obligors, or any impairment or suspension of

    

    

    

    

    

    

    1

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Forsberg
Investments’ remedy or rights against United Mine Services shall not in anyway
affect the liability of the undersigned hereunder.

    

    If the either or both of the Promissory
Notes which are the subject of the Guaranty lawfully pass to a holder other than
Forsberg Investments the terms and obligations of this Guaranty shall
automatically accrue to the benefit of such other holder without the necessity
of Forsberg Investments’ rights under this Guaranty being formally assigned to
such holder.

    

    

    DATED this 31st day of
March, 2009.

    

    

    

    
      	 
      	
              GREG
      STEWART

            
	 
      	
              GREG
      STEWART

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              _______________________________

            
	 
      	
              ______________
      STEWART

            

    

    

    

    

     

    

    

    

    

    

    

    2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    BILL OF
SALE

    

    

    KNOW ALL PERSONS BY THESE PRESENTS that
FORSBERG INVESTMENTS, INC., an Idaho Corporation formerly known as Mine
Fabrication & Machine, Inc. (hereinafter referred to as “Transferor”), for
and in consideration of One million seven hundred thirty-five thousand Dollars
($1,735,000.00) and other good and
valuable consideration, to it in hand given by UNITED MINE SERVICES, INC., an
Idaho Corporation (hereinafter referred to as “Transferee”), the receipt of
which is hereby acknowledged, does hereby grant, bargain, sell, assign and
convey unto Transferee, its heirs, executors, administrators, successors and
assigns the inventory and assets as more fully described on the Exhibit “A”
attached hereto.

    EXCEPT for Transferor’s open purchase
orders and executory contract obligations entered into in the normal course of
business and existing at Closing, Transferee does not assume any liabilities or
obligations of Transferor, or claims against or imposed on Transferee, of any
nature, whether accrued, absolute, contingent or otherwise and whether a
contractual, tax or other type of liability, obligation or claim.

    To have and to hold the same to
Transferee, its heirs, executors, administrators, successors and assigns
forever, and Transferor does hereby covenant and agree to warrant and defend the
sale of said property to Transferee against each and every person whomsoever
lawfully claiming or claims to the same.

    IN WITNESS WHEREOF, Transferor has
executed this Bill of Sale as of the 31 day of March, 2009.

    

    
      	 
      	
              FORSBERG
      INVESTMENTS, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              FRED A.
      FORSBERG

            
	 
      	
              By:

            	
              FRED
      A. FORSBERG, President

            

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    CERTIFICATE AS TO INVENTORY
VALUE

    

    THIS CERTIFICATE AS TO INVENTORY
VALUE (the “Certificate”) is entered into this 31st day of
March, 2009, by and between UNITED MINE SERVICES, INC., an
Idaho corporation (the “Purchaser”), and FOSBERG INVESTMENTS, INC., an
Idaho corporation formerly known as Mine Fabrication & Machine, Inc. (the
“Seller”).

    

    RECITALS:

    

    WHEREAS, Purchaser and Seller
have entered into an Asset Purchase Agreement dated effective March 31, 2009,
wherein Purchaser is acquiring, among other assets, all of Seller’s inventory
existing on the date hereof (the “Inventory”).

    

    WHEREAS, pursuant to Paragraph
1.4(a) of the Agreement, the portion of the purchase price allocated to
inventory existing as of March 30, 2009 is, for each item of Inventory, to be
the lesser of Seller’s actual cost of each item of inventory existing at
Closing, or the fair market value of each item of inventory, as mutually agreed
to between Purchaser and Seller. The aggregate of each item of Inventory so
valued is referred to as the “Inventory Value”.

    

    WHEREAS, the parties agree
that the Inventory Value is to be determined by a physical inventory inspection
conducted jointly by Purchaser and Seller on the day prior to
Closing.

    

    NOW, THEREFORE, in
consideration of the mutual covenants contained herein, Purchaser and Seller,
jointly and severally, agree as follows:

    

    1.           Inspection
of Inventory.
Purchaser and Seller hereby mutually agree that a physical inspection of
Seller’s inventory has been conducted with Purchaser and Seller (or their
officers, directors, and/or agents) present, effective on March 30, 2009
(“Inventory Date”).

    

    2.           Value of
Inventory.
Purchaser and Seller hereby mutually determine, in good faith, that the
Inventory Value of Seller’s Inventory existing on the Inventory Date is Two
Hundred Thirty-five Thousand Dollars ($235,000.00). Purchaser and Seller agree
that Inventory Value determined hereunder is not an appraisal of the Inventory,
but is a mutual opinion of Purchaser and Seller of the estimated value of the
Inventory.

    

    3.           Binding
Effect. This
Certificate is binding upon and inures to the benefit of Purchaser and its
successors and assigns, and Seller and its successors and assigns.

    

    
      	
              PURCHASER:

            	
              SELLER:

            
	 
      
	
              UNITED
      MINE SERVICES, INC.

            	
              FORSBERG
      INVESTMENTS, INC.

            
	 
      
	
              By

            	
              GREG
      STEWART

            	
              By

            	
              FRED A.
      FORSBERG

            
	 
      	
              Greg
      Stewart, President & CEO

            	 
      	
              Fred
      A. Forsberg, PresidentQuickLinks
 -- Click here to rapidly navigate through this document

 
 

  Exhibit 4.6    
    

          INTREPID POTASH, INC.  

 DEBT SECURITIES INDENTURE  

Dated as
of                                    , 20    

 Wells Fargo Bank, N.A.,  

 as  

 Trustee  

 

  TABLE OF CONTENTS  

								
	 
	 	 
	 	Page 
	  ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	2
	 	 	 	 Section 1.1
	 	 Definitions
	 	2
	 	 	 	 Section 1.2
	 	 Other Definitions
	 	6
	 	 	 	 Section 1.3
	 	 Incorporation by Reference of Trust Indenture Act
	 	6
	 	 	 	 Section 1.4
	 	 Rules of Construction
	 	6
	  ARTICLE 2 THE SECURITIES
	 	

7
	 	 	 	 Section 2.1
	 	 Issuable in Series
	 	7
	 	 	 	 Section 2.2
	 	 Establishment of Terms of Series of Securities
	 	7
	 	 	 	 Section 2.3
	 	 Execution and Authentication
	 	9
	 	 	 	 Section 2.4
	 	 Registrar and Paying Agent
	 	10
	 	 	 	 Section 2.5
	 	 Paying Agent to Hold Money in Trust
	 	11
	 	 	 	 Section 2.6
	 	 Securityholder Lists
	 	11
	 	 	 	 Section 2.7
	 	 Exchange and Registration of Transfer
	 	11
	 	 	 	 Section 2.8
	 	 Mutilated, Destroyed, Lost and Stolen Securities
	 	12
	 	 	 	 Section 2.9
	 	 Outstanding Securities
	 	13
	 	 	 	 Section 2.10
	 	 Treasury Securities
	 	13
	 	 	 	 Section 2.11
	 	 Temporary Securities
	 	13
	 	 	 	 Section 2.12
	 	 Cancellation
	 	14
	 	 	 	 Section 2.13
	 	 Defaulted Interest
	 	14
	 	 	 	 Section 2.14
	 	 Registered Global Securities
	 	14
	 	 	 	 Section 2.15
	 	 Computation of Interest
	 	15
	 	 	 	 Section 2.16
	 	 CUSIP and ISIN Numbers
	 	15
	  ARTICLE 3 REDEMPTION
	 	

16
	 	 	 	 Section 3.1
	 	 Notice to Trustee
	 	16
	 	 	 	 Section 3.2
	 	 Selection of Securities to be Redeemed
	 	16
	 	 	 	 Section 3.3
	 	 Notice of Redemption
	 	16
	 	 	 	 Section 3.4
	 	 Effect of Notice of Redemption
	 	17
	 	 	 	 Section 3.5
	 	 Deposit of Redemption Price
	 	17
	 	 	 	 Section 3.6
	 	 Securities Redeemed in Part
	 	17
	  ARTICLE 4 COVENANTS
	 	

17
	 	 	 	 Section 4.1
	 	 Payment of Principal and Interest
	 	17
	 	 	 	 Section 4.2
	 	 SEC Reports
	 	17
	 	 	 	 Section 4.3
	 	 Compliance Certificate
	 	17
	 	 	 	 Section 4.4
	 	 Stay, Extension and Usury Laws
	 	18
	 	 	 	 Section 4.5
	 	 Corporate Existence
	 	18
	 	 	 	 Section 4.6
	 	 Maintenance of Office or Agency
	 	18
	 	 	 	 Section 4.7
	 	 Money For Securities Payments to be Held in Trust
	 	18
	 	 	 	 Section 4.8
	 	 Waiver of Certain Covenants
	 	19
	  ARTICLE 5 SUCCESSORS
	 	

20
	 	 	 	 Section 5.1
	 	 When Company May Merge, Etc. 
	 	20
	 	 	 	 Section 5.2
	 	 Successor Corporation Substituted
	 	20

i

 

								
	 
	 	 
	 	Page 
	  ARTICLE 6 DEFAULTS AND REMEDIES
	 	20
	 	 	 	 Section 6.1
	 	 Events of Default
	 	20
	 	 	 	 Section 6.2
	 	 Acceleration of Maturity; Rescission and Annulment
	 	21
	 	 	 	 Section 6.3
	 	 Collection of Indebtedness and Suits for Enforcement by Trustee
	 	23
	 	 	 	 Section 6.4
	 	 Trustee May File Proofs of Claim
	 	24
	 	 	 	 Section 6.5
	 	 Trustee May Enforce Claims Without Possession of Securities
	 	24
	 	 	 	 Section 6.6
	 	 Application of Money Collected
	 	24
	 	 	 	 Section 6.7
	 	 Limitation on Suits
	 	25
	 	 	 	 Section 6.8
	 	 Unconditional Right of Holders to Receive Principal and Interest
	 	25
	 	 	 	 Section 6.9
	 	 Restoration of Rights and Remedies
	 	25
	 	 	 	 Section 6.10
	 	 Rights and Remedies Cumulative
	 	25
	 	 	 	 Section 6.11
	 	 Delay or Omission Not Waiver
	 	26
	 	 	 	 Section 6.12
	 	 Control by Holders
	 	26
	 	 	 	 Section 6.13
	 	 Waiver of Past Defaults
	 	26
	 	 	 	 Section 6.14
	 	 Undertaking for Costs
	 	26
	  ARTICLE 7 TRUSTEE
	 	

27
	 	 	 	 Section 7.1
	 	 Duties of Trustee
	 	27
	 	 	 	 Section 7.2
	 	 Rights of Trustee
	 	28
	 	 	 	 Section 7.3
	 	 Individual Rights of Trustee
	 	28
	 	 	 	 Section 7.4
	 	 Trustee's Disclaimer
	 	28
	 	 	 	 Section 7.5
	 	 Notice of Defaults
	 	29
	 	 	 	 Section 7.6
	 	 Reports by Trustee to Holders
	 	29
	 	 	 	 Section 7.7
	 	 Compensation and Indemnity
	 	29
	 	 	 	 Section 7.8
	 	 Replacement of Trustee
	 	30
	 	 	 	 Section 7.9
	 	 Successor Trustee by Merger, etc. 
	 	30
	 	 	 	 Section 7.10
	 	 Eligibility; Disqualification
	 	31
	 	 	 	 Section 7.11
	 	 Preferential Collection of Claims Against Company
	 	31
	  ARTICLE 8 SATISFACTION AND DISCHARGE; DEFEASANCE
	 	

31
	 	 	 	 Section 8.1
	 	 Satisfaction and Discharge of Indenture
	 	31
	 	 	 	 Section 8.2
	 	 Application of Trust Funds; Indemnification
	 	32
	 	 	 	 Section 8.3
	 	 Legal Defeasance of Securities of any Series
	 	32
	 	 	 	 Section 8.4
	 	 Covenant Defeasance
	 	34
	 	 	 	 Section 8.5
	 	 Repayment to Company
	 	35
	 	 	 	 Section 8.6
	 	 Effect of Subordination Provisions
	 	35
	  ARTICLE 9 AMENDMENTS AND WAIVERS
	 	

35
	 	 	 	 Section 9.1
	 	 Without Consent of Holders
	 	35
	 	 	 	 Section 9.2
	 	 With Consent of Holders
	 	36
	 	 	 	 Section 9.3
	 	 Limitations
	 	36
	 	 	 	 Section 9.4
	 	 Compliance with Trust Indenture Act
	 	37
	 	 	 	 Section 9.5
	 	 Revocation and Effect of Consents
	 	37
	 	 	 	 Section 9.6
	 	 Notation on or Exchange of Securities
	 	37
	 	 	 	 Section 9.7
	 	 Trustee Protected
	 	38
	  ARTICLE 10 SUBORDINATION OF SECURITIES
	 	

38
	 	 	 	 Section 10.1
	 	 Agreement to Subordinate
	 	38

ii

 

								
	 
	 	 
	 	Page 
	  ARTICLE 11 MISCELLANEOUS
	 	38
	 	 	 	 Section 11.1
	 	 Trust Indenture Act Controls
	 	38
	 	 	 	 Section 11.2
	 	 Notices
	 	38
	 	 	 	 Section 11.3
	 	 Communication by Holders with Other Holders
	 	39
	 	 	 	 Section 11.4
	 	 Certificate and Opinion as to Conditions Precedent
	 	39
	 	 	 	 Section 11.5
	 	 Statements Required in Certificate or Opinion
	 	39
	 	 	 	 Section 11.6
	 	 Rules by Trustee and Agents
	 	40
	 	 	 	 Section 11.7
	 	 Legal Holidays
	 	40
	 	 	 	 Section 11.8
	 	 No Recourse Against Others
	 	40
	 	 	 	 Section 11.9
	 	 Counterparts
	 	40
	 	 	 	 Section 11.10
	 	 Governing Laws; Waiver of Jury Trial
	 	40
	 	 	 	 Section 11.11
	 	 No Adverse Interpretation of Other Agreements
	 	40
	 	 	 	 Section 11.12
	 	 Successors
	 	41
	 	 	 	 Section 11.13
	 	 Severability
	 	41
	 	 	 	 Section 11.14
	 	 Table of Contents, Headings, Etc. 
	 	41
	 	 	 	 Section 11.15
	 	 Securities in a Foreign Currency or in ECU
	 	41
	 	 	 	 Section 11.16
	 	 Judgment Currency
	 	41
	 	 	 	 Section 11.17
	 	 Acts of Holders
	 	42
	  ARTICLE 12 SINKING FUNDS
	 	

43
	 	 	 	 Section 12.1
	 	 Applicability of Article
	 	43
	 	 	 	 Section 12.2
	 	 Satisfaction of Sinking Fund Payments with Securities
	 	43
	 	 	 	 Section 12.3
	 	 Redemption of Securities for Sinking Fund
	 	44

iii

 

 INTREPID POTASH, INC.  

        Reconciliation and tie between Trust Indenture Act of 1939 and Indenture, dated as of
[                        ]. 

			
	 § 310(a)(1)
	 	7.10
	 (a)(2)
	 	7.10
	 (a)(3)
	 	Not Applicable
	 (a)(4)
	 	Not Applicable
	 (a)(5)
	 	7.10
	 (b)
	 	7.10
	 § 311(a)
	 	7.11
	 (b)
	 	7.11
	 (c)
	 	Not Applicable
	 § 312(a)
	 	2.6
	 (b)
	 	11.3
	 (c)
	 	11.3
	 § 313(a)
	 	7.6
	 (b)(1)
	 	7.6
	 (b)(2)
	 	7.6
	 (c)
	 	7.6
	 (d)
	 	7.6
	 § 314(a)
	 	4.2, 4.3
	 (b)
	 	Not Applicable
	 (c)(1)
	 	11.4
	 (c)(2)
	 	11.4
	 (c)(3)
	 	Not Applicable
	 (d)
	 	Not Applicable
	 (e)
	 	11.5
	 (f)
	 	Not Applicable
	 § 315(a)
	 	7.1
	 (b)
	 	7.5
	 (c)
	 	7.1
	 (d)
	 	7.1
	 (e)
	 	6.14
	 § 316(a)
	 	2.10
	 (a)(1)(A)
	 	6.12
	 (a)(1)(B)
	 	6.13
	 (b)
	 	6.8
	 § 317(a)(1)
	 	6.3
	 (a)(2)
	 	6.4
	 (b)
	 	2.5
	 § 318(a)
	 	11.1

Note:
This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture. 

1

 

        Indenture
dated as of [                        ], between Intrepid Potash, Inc., a Delaware corporation (the "Company"), and Wells
Fargo Bank, N.A. (the "Trustee"). 

        Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture. 

 
 

ARTICLE 1
  DEFINITIONS AND INCORPORATION BY REFERENCE    
    

        Section 1.1    Definitions.    

        "Additional
Amounts" means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of
certain taxes imposed on Holders specified therein and which are owing to such Holders. 

        "Affiliate"
of any specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing. 

        "Agent"
means any Registrar, Paying Agent, co-agent, co-registrar or Service Agent. 

        "Authorized
Newspaper" means a newspaper in an official language of the country of publication customarily published at least once a day for at least five days in each calendar week and
of general circulation in the place in connection with which the term is used. If it shall be impractical in the opinion of the Trustee to make any publication of any notice required hereby in an
Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by the Trustee shall constitute a sufficient publication of such notice. 

        "Bearer"
means anyone in possession from time to time of a Bearer Security. 

        "Bearer
Global Security" or "Bearer Global Securities" means a Bearer Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all or
part of a Series of Bearer Securities, deposited with a common depositary for Euroclear Bank S.A./N.V., as operator of the Euroclear System and/or Clearstream Banking,
société anonyme, Luxembourg. 

        "Bearer
Security" means any Security, including any interest coupon appertaining thereto, that does not provide for the identification of the Holder thereof. 

        "Board
of Directors" means the Board of Directors of the Company or any duly authorized committee thereof. 

        "Board
Resolution" means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to
authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee. 

        "Business
Day" means, unless otherwise provided by Board Resolution, Officers' Certificate or supplemental indenture hereto for a particular Series, each day which is not a Legal
Holiday. 

        "Capital
Stock" of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity. 

2

 

        "Company"
means the party named as such above until a successor replaces it and thereafter means the successor. 

        "Company
Order" means a written order signed in the name of the Company by two Officers, one of whom must be the Company's Chief Executive Officer, President, Chief Financial Officer or
General Counsel. 

        "Company
Request" means a written request signed in the name of the Company by its Chairman of the Board, a President or a Vice President, and by its Treasurer, an Assistant Treasurer,
its Secretary or an Assistant Secretary, and delivered to the Trustee. 

        "Corporate
Trust Office" means the office of the Trustee at which at any particular time its corporate trust business with respect to this Indenture or a Series of Securities shall be
principally administered. 

        "Debt"
of any Person as of any date means, without duplication, all indebtedness of such Person in respect of borrowed money, including all interest, fees and expenses owed in respect
thereto (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof), or evidenced by bonds, notes, debentures or similar instruments. 

        "Default"
means any event which is, or after notice or passage of time would be, an Event of Default. 

        "Depositary"
means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Securities in global form, the Person designated as
Depositary for such Series by the Company, which Depositary shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such Person, "Depositary" as used
with respect to the Securities of any Series shall mean the Depositary with respect to the Securities of such Series. 

        "Discount
Security" means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.2. 

        "Dollars"
means the currency of the United States of America. 

        "ECU"
means the European Currency Unit as determined by the Commission of the European Union. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

        "Foreign
Currency" means any currency or currency unit issued by a government other than the government of the United States of America. 

        "Foreign
Government Obligations" means with respect to Securities of any Series that are denominated in a Foreign Currency, (i) direct obligations of the government that issued or
caused to be issued such currency for the payment of which obligations its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer thereof. 

        "Holder"
or "Securityholder" means a Person in whose name a Security is registered in the Register or the holder of a Bearer Security. 

        "Indenture"
means this Indenture as originally executed and delivered and as amended from time to time and shall include the form and terms of particular Series of Securities established
as contemplated hereunder. 

3

 

        "interest"
with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity. 

        "Maturity,"
when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes
due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption, notice of option to elect repayment or otherwise. 

        "Officer"
means the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, the General Counsel any Vice-President, the Treasurer, the
Secretary, any Assistant Treasurer or any Assistant Secretary of the Company. 

        "Officers'
Certificate" means a certificate signed by two Officers, one of whom must be the Company's Chief Executive Officer, President, Chief Financial Officer or General Counsel. 

        "Opinion
of Counsel" means a written opinion of legal counsel who is reasonably acceptable to the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee. 

        "Person"
means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or
any agency or political subdivision thereof. 

        "Place
of Payment", when used with respect to the Securities of any Series, means the place or places specified in accordance with Section 2.2 where the principal of and any
premium and interest on the Securities of that Series are payable, or if not so specified, in accordance with Section 4.6. 

        "Preferred
Stock", as applied to the Capital Stock of any Person, means Capital Stock of any class or classes (however designated) that is preferred as to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other class of such Person. 

        "principal"
of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security. 

        "Registered
Global Security" or "Registered Global Securities" means a Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all
or part of a Series of Securities, issued to the Depositary for such Series or its nominee, and registered in the name of such Depositary or nominee. 

        "Registered
Securities" means any Security registered on the Register of the Company. 

        "SEC"
means the Securities and Exchange Commission. 

        "Securities"
means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture. 

        "Securities
Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time. 

        "Senior
Debt" means the principal of, premium, if any, unpaid interest, and all fees and other amounts payable in connection with the following, whether outstanding on the date hereof or
thereafter created, incurred, assumed or guaranteed, on (x) the Debt of the Company, for money borrowed other than (a) any Debt of the Company which when incurred and without respect to
any election under Section 1111(b) of the Federal Bankruptcy Code, was without recourse to the Company, (b) any Debt of the Company to any of its Subsidiaries, (c) Debt to any
employee of the Company, (d) any liability for taxes and (e) Trade Payables, unless the instrument creating or evidencing the same or pursuant to which the same is outstanding provides
that such Debt is not senior or prior in right of payment to the Securities, (y) all obligations of the Company under interest rate, currency and commodity swaps, caps, 

4

 

floors,
collars, hedge arrangements, forward contracts or similar agreements or arrangements and (z) renewals, extensions, modifications and refundings of any such Debt. This definition may be
modified or superseded by a supplemental indenture. 

        "Senior
Securities" means Securities other than Subordinated Securities. 

        "Series"
or "Series of Securities" means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof. 

        "Stated
Maturity" when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable (without regard for any provisions for acceleration, redemption prepayment or otherwise). 

        "Subordinated
Securities" means Securities that by the terms established pursuant to Section 2.2.9 are subordinated in right of payment to Senior Debt of the Company. 

        "Subordination
Provisions," when used with respect to the Subordinated Securities of any Series, shall have the meaning established pursuant to Section 2.2.9 with respect to the
Subordinated Securities of such Series. 

        "Subsidiary"
of any Person means any corporation, association, partnership or other business entity of which more than 50 percent of the total voting power of shares of Capital
Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the
time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such
Person. 

        "TIA"
means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that
in the event the Trust Indenture Act of 1939 is amended after such date, "TIA" means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended. 

        "Trade
Payables" means accounts payable or any other Debt or monetary obligations to trade creditors created or assumed by the Company or any Subsidiary of the Company in the ordinary
course of business in connection with the receipt of materials or services. 

        "Trust
Officer" means any officer within the Corporate Trust Office of the Trustee with direct responsibility for the administration of this Indenture. 

        "Trustee"
means the Person named as the "Trustee" in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter "Trustee" shall mean or include each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, "Trustee" as used with respect to the
Securities of any Series shall mean the Trustee with respect to Securities of that Series. 

        "U.S.
Government Obligations" means direct obligations (or certificates representing an ownership interest in such obligations) of the United States of America (including any agency or
instrumentality thereof) for the payment of which the full faith and credit of the United States of America is pledged and which are not callable or redeemable at the issuer's option. 

5

 

        Section 1.2    Other Definitions.    

					
	TERM

 
	 	DEFINED IN SECTION 	 
	 "Bankruptcy Law"
	 	 	6.1	 
	 "Custodian"
	 	 	6.1	 
	 "Event of Default"
	 	 	6.1	 
	 "Journal"
	 	 	11.15	 
	 "Judgment Currency"
	 	 	11.16	 
	 "Legal Holiday"
	 	 	11.7	 
	 "mandatory sinking fund payment"
	 	 	12.1	 
	 "Market Exchange Rate"
	 	 	11.15	 
	 "New York Banking Day"
	 	 	11.16	 
	 "optional sinking fund payment"
	 	 	12.1	 
	 "Paying Agent"
	 	 	2.4	 
	 "Register"
	 	 	2.4	 
	 "Registrar"
	 	 	2.4	 
	 "Required Currency"
	 	 	11.16	 
	 "Service Agent"
	 	 	2.4	 
	 "successor person"
	 	 	5.1	 

        Section 1.3    Incorporation by Reference of Trust Indenture Act.    

        Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings: 

        "Commission"
means the SEC. 

        "indenture
securities" means the Securities. 

        "indenture
security holder" means a Securityholder. 

        "indenture
to be qualified" means this Indenture. 

        "indenture
trustee" or "institutional trustee" means the Trustee. 

        "obligor"
on the indenture securities means the Company and any successor obligor upon the Securities. 

        All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are
used herein as so defined. 

        Section 1.4    Rules of Construction.    

        Unless
the context otherwise requires: 

	(a)
	a
term has the meaning assigned to it;

	(b)
	an
accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles;

	(c)
	references
to "generally accepted accounting principles" shall mean generally accepted accounting principles in effect as of the time when and for the
period as to which such accounting principles are to be applied;

	(d)
	"or"
is not exclusive; and

	(e)
	words
in the singular include the plural, and in the plural include the singular. 

6

 

 ARTICLE 2

THE SECURITIES  

        Section 2.1    Issuable in Series.    

        The
aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities
of a Series shall be identical except as may be set forth in a Board Resolution, a supplemental indenture or an Officers' Certificate detailing the adoption of the terms thereof pursuant to the
authority granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officers' Certificate or supplemental indenture may provide for
the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect
of any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of the Indenture. 

        Section 2.2    Establishment of Terms of Series of Securities.    

        At
or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection 2.2.1 and either as to
such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through 2.2.24) by a Board Resolution, a supplemental indenture or an Officers' Certificate
pursuant to authority granted under a Board Resolution: 

        2.2.1  the
title and designation of the Securities of the Series, which shall distinguish the Securities of the Series from the Securities of all other Series, and which may
be part of a Series of Securities previously issued; 

        2.2.2  any
limit upon the aggregate principal amount of the Securities of the Series that may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6); 

        2.2.3  if
other than Dollars, the Foreign Currency or Foreign Currencies in which the Securities of the Series are denominated; 

        2.2.4  the
date or dates on which the principal of the Securities of the Series is payable or the method of determination thereof; 

        2.2.5  the
rate or rates (which may be fixed or variable) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest shall
accrue, on which such interest shall be payable, the terms and conditions of any deferral of interest and the additional interest, if any, thereon, the right, if any, of the Company to extend the
interest payment periods and the duration of the extensions and (in the case of Registered Securities) the date or dates on which a record shall be taken for the determination of Holders to whom
interest is payable and/or the method by which such rate or rates or date or dates shall be determined; 

        2.2.6  the
place or places where and the manner in which, the principal of and any interest on Securities of the Series shall be payable; 

        2.2.7  the
right, if any, of the Company to redeem Securities, in whole or in part, at its option and the period or periods within which, or the date or dates on which, the
price or prices at which and any terms and conditions upon which Securities of the Series may be so redeemed, pursuant to any sinking fund or otherwise; 

        2.2.8  the
obligation, if any, of the Company to redeem, purchase or repay Securities of the Series pursuant to any mandatory redemption, sinking fund or analogous provisions
or at the 

7

 

option
of a Holder thereof and the price or prices at which and the period or periods within which or the date or dates on which, and any terms and conditions upon which Securities of the Series shall
be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation; 

        2.2.9  if
the Securities of such Series are Subordinated Securities, the terms pursuant to which the Securities of such Series will be made subordinate in right of payment to
Senior Debt and the definition of such Senior Debt with respect to such Series (in the absence of an express statement to the effect that the Securities of such Series are subordinate in right of
payment to all such Senior Debt, the Securities of such Series shall not be subordinate to Senior Debt and shall not constitute Subordinated Securities); and, in the event that the Securities of such
Series are Subordinated Securities, such Board Resolution, Officers' Certificate or supplemental indenture, as the case may be, establishing the terms of such Series shall expressly state which
articles, sections or other provisions thereof constitute the "Subordination Provisions" with respect to the Securities of such Series; 

        2.2.10  if
other than denominations of $1,000 and any integral multiple thereof in the case of Registered Securities, or $1,000 and $5,000 in the case of Bearer Securities,
the denominations in which Securities of the Series shall be issuable; 

        2.2.11  the
percentage of the principal amount at which the Securities will be issued, and, if other than the principal amount thereof, the portion of the principal amount of
Securities of the Series which shall be payable upon declaration of acceleration of the maturity thereof and the terms and conditions of any acceleration; 

        2.2.12  if
other than the coin, currency or currencies in which the Securities of the Series are denominated, the coin, currency or currencies in which payment of the
principal of or interest on the Securities of such Series shall be payable, including composite currencies or currency units; 

        2.2.13  if
the principal of or interest on the Securities of the Series are to be payable, at the election of the Company or a Holder thereof, in a coin or currency other
than that in which the Securities are denominated, the period or periods within which, and the terms and conditions upon which, such election may be made; 

        2.2.14  if
the amount of payments of principal of and interest on the Securities of the Series may be determined with reference to an index or formula based on a coin,
currency, composite currency or
currency unit other than that in which the Securities of the Series are denominated, the manner in which such amounts shall be determined; 

        2.2.15  whether
the Securities of the Series will be issuable as Registered Securities (and if so, whether such Securities will be issuable as Registered Global Securities)
or Bearer Securities, with or without interest coupons appertaining thereto (and if, so whether such Securities will be issuable as Bearer Global Securities), or any combination of the foregoing, any
restrictions applicable to the offer, sale or delivery of Bearer Securities or the payment of interest thereon and the terms upon which Bearer Securities of any Series may be exchanged for Registered
Securities of such Series and vice versa; 

        2.2.16  whether
and under what circumstances the Company will pay additional amounts on the Securities of the Series held by a person who is not a U.S. person in respect of
any tax, assessment or governmental charge withheld or deducted and, if so, whether the Company will have the option to redeem the Securities of the Series rather than pay such additional amounts; 

        2.2.17  if
the Securities of the Series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary Security of such Series) only upon
receipt of certain certificates or other documents or satisfaction of other conditions, the form and terms of such certificates, documents or conditions; 

8

 

        2.2.18  any
trustees, depositaries, authenticating or paying agents, transfer agents or registrars of any other agents with respect to the Securities of such Series; 

        2.2.19  any
deletion from, modification of or addition to the Events of Default or covenants with respect to the Securities of such Series, including, if applicable,
covenants affording Holders of debt protection with respect to the Company's operations, financial conditions and transactions involving the Company; 

        2.2.20  if
the Securities of the Series are to be convertible into or exchangeable for any other security or property of the Company, including, without limitation,
securities of another Person held by the Company or its Affiliates and, if so, the terms thereof, including conversion or exchange prices or rate and adjustments thereto; 

        2.2.21  the
price or prices at which the Securities will be issued; 

        2.2.22  any
provisions for remarketing; 

        2.2.23  the
terms applicable to any Securities issued at a discount from their stated principal amount; 

        2.2.24  the
CUSIP, ISIN or other identification number, if any; and 

        2.2.25  any
other terms of the Series. 

        All
Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to
the Board Resolution, supplemental indenture or Officers' Certificate referred to above, and the authorized principal amount of any Series may not be increased to provide for issuances of additional
Securities of such Series, unless otherwise provided in such Board Resolution, supplemental indenture or Officers' Certificate. 

        Section 2.3    Execution and Authentication.    

        One
or more Officers shall sign the Securities for the Company by manual or facsimile signature. 

        If
an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall be valid nevertheless so long as such individual
was an Officer at the time of execution of the Security. 

        A
Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture. 

        The
Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto
or Officers' Certificate, upon receipt by the Trustee of a Company Order. Such Company Order may authorize authentication and delivery pursuant to oral or electronic instructions from the Company or
its duly authorized agent or agents, which oral instructions shall be promptly confirmed electronically or in writing. Each Security shall be dated the date of its authentication unless otherwise
provided by a Board Resolution, a supplemental indenture hereto or an Officers' Certificate. 

        The
aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board
Resolution, supplemental indenture hereto or Officers' Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8. 

        Prior
to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.2) shall be fully protected in relying on: (a) the Board
Resolution, supplemental indenture 

9

 

hereto
or Officers' Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that
Series, (b) an Officers' Certificate complying with Section 11.4, and (c) an Opinion of Counsel complying with Section 11.4. 

        The
Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action
may not lawfully be taken; or (b) if the Trustee in good faith shall determine that such action would expose the Trustee to personal liability to Holders of any then outstanding Series of
Securities. 

        The
Trustee may appoint an authenticating agent reasonably acceptable to the Company to authenticate the Securities. Any such appointment shall be evidenced by an instrument signed by a
Trust Officer, a copy of which shall be furnished to the Company. Unless limited by the terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Company or an
Affiliate. 

        Section 2.4    Registrar and Paying Agent.    

        The
Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.2, an office or agency
where Securities of such Series may be presented or surrendered for payment ("Paying Agent"), where Securities of such Series may be surrendered for registration of transfer or exchange ("Registrar")
and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served ("Service Agent"). The Registrar shall keep a register with respect to
each Series of Registered Securities (the "Register") and to their transfer and exchange. The Company will give prompt written notice to the Trustee of the name and address, and any change in the name
or address, of each Registrar, Paying Agent or Service Agent. If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish the
Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands. 

        The
Company may also from time to time designate one or more co-registrars, additional paying agents or additional service agents and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Service Agent in each place
so specified pursuant to Section 2.2 for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any
change in the name or address of any such co-registrar, additional paying agent or additional service agent. The term "Registrar" includes any co-registrar; the term "Paying
Agent" includes any additional paying agent; and the term "Service Agent" includes any additional service agent. 

        The
Company hereby appoints the Trustee the initial Registrar, Paying Agent and Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be,
is appointed prior to the time Securities of that Series are first issued. The Company or any of its domestically organized Subsidiaries may act as Paying Agent, Registrar or Service Agent. 

        The
rights, privileges, protections, immunities and benefits given to the Trustee under this Indenture including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, and each Agent acting hereunder. 

        The
Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent or Service Agent not a party to this Indenture, which shall incorporate the terms of the
TIA. The 

10

 

agreement
shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any such agent. 

        The
Company may remove any Registrar, Paying Agent or Service for any Series of Securities upon written notice to such Registrar, Paying Agent or Service Agent and to the Trustee;
provided, however, that no such removal shall become effective until (1) acceptance of an appointment by a successor as evidenced by an appropriate agreement entered into by the Company and
such successor Registrar, Paying Agent or Service Agent, as the case may be, and delivered to the Trustee or (2) notification to the Trustee that the Trustee shall serve as Registrar or Paying
Agent until the appointment of a successor in accordance with clause (1) above. The Registrar, Paying Agent or Service Agent may resign at any time upon written notice; provided, however, that
the Trustee may resign as Paying Agent, Registrar or Service Agent only if the Trustee also resigns as Trustee in accordance with Section 7.8. 

        Section 2.5    Paying Agent to Hold Money in Trust.    

        Prior
to each due date of the principal and interest on any Series of Securities, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary is acting as Paying
Agent, segregate and hold in trust for the benefit of the Persons entitled thereto) a sum sufficient to pay such principal and interest when so becoming due. The Company shall require each Paying
Agent (other than the Trustee) to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the
Paying Agent for the payment of principal of or interest on the Series of Securities, and shall notify the Trustee of any default by the Company in making any such payment. While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon
payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent. 

        Section 2.6    Securityholder Lists.    

        The
Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of
Securities and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish, or cause the Registrar to furnish, to the Trustee at least
five Business Day before each interest payment date, but in any event not less frequently than semi-annually, and at such other times as the Trustee may request in writing a list, in such
form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities. 

        Section 2.7    Exchange and Registration of Transfer.    

        The
Company shall cause to be kept at the Corporate Trust Office the Register in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities of a Series and of transfers of Securities of such Series. The Register shall be in written form or in any form capable of being converted into written form within a
reasonably prompt period of time. 

        Upon
surrender for registration of transfer of any Security of a Series to the Registrar or any co-registrar, and satisfaction of the requirements for such transfer set forth
in this Section 2.8, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Security of the same
Series of any authorized denominations and of a like aggregate principal amount and bearing such restrictive legends as may be required by this Indenture. 

11

 

        Securities
of a Series may be exchanged for other Securities of the same Series of any authorized denominations and of a like aggregate principal amount, upon surrender of the Securities
to be exchanged at any such office or agency maintained by the Company pursuant to Section 4.2. Whenever any Securities of a Series are so surrendered for exchange, the Company shall execute,
and the Trustee shall authenticate and deliver, the Securities of the same Series that the Holder making the exchange is entitled to receive bearing registration numbers not contemporaneously
outstanding. 

        All
Securities of a Series issued upon any registration of transfer or exchange of Securities of the same Series shall be the valid obligations of the Company, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Securities of the same Series surrendered upon such registration of transfer or exchange. 

        All
Securities of a Series presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or the Registrar) be duly endorsed, or be
accompanied by a written instrument or instruments of transfer in form satisfactory to the Company, and the Securities of such Series shall be duly executed by the Holder thereof or his attorney duly
authorized in writing. 

        No
service charge shall be made to any holder for any registration of, transfer or exchange of Securities, but the Company or the Trustee may require payment by the holder of a sum
sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of such Securities (other than any such transfer
tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6). 

        Neither
the Company nor the Trustee nor any Registrar shall be required to exchange, issue or register a transfer of (a) Securities of any Series for a period of fifteen calendar
days next preceding date of mailing of a notice of redemption of Securities of that Series selected for redemption, or (b) Securities of any Series or portions thereof called for redemption,
except for the unredeemed portion of any Securities of that Series being redeemed in part. 

        Section 2.8    Mutilated, Destroyed, Lost and Stolen Securities.    

        If
a mutilated Security is surrendered to the Registrar or if the Securityholder of a Security claims that the Security has been lost, destroyed or wrongfully taken, the Company shall
issue and the Trustee shall authenticate a replacement Security of the same Series if the requirements of
Section 8-405 of the Uniform Commercial Code are met, such that the Securityholder (i) satisfies the Company or the Trustee within a reasonable time after he has notice of
such loss, destruction or wrongful taking and the Registrar does not register a transfer prior to receiving such notification, (ii) makes such request to the Company or the Trustee prior to the
Security being acquired by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code (a "protected purchaser") and (iii) satisfies any other reasonable
requirements of the Trustee. If required by the Trustee or the Company, such Securityholder shall furnish an indemnity bond sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, the Paying Agent and the Registrar from any loss that any of them may suffer if a Security is replaced. The Company and the Trustee may charge the Securityholder for their
expenses in replacing a Security. In case any Security which has matured or is about to mature or has been called for redemption, shall become mutilated or be destroyed, lost or stolen, the Company
may, instead of issuing a substitute Security, pay or authorize the payment of (without surrender thereof except in the case of a mutilated Security), as the case may be, if the applicant for such
payment or conversion shall furnish to the Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless
for any loss, liability, cost or expense caused by or in connection with such substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company, the
Trustee and, if applicable, any Paying Agent evidence to their satisfaction of the destruction, loss or theft of such Securities and of the ownership thereof. 

12

 

 
        Every replacement Security of any Series issued pursuant to this Section is an additional obligation of the Company. 

        The
provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities. 

        Section 2.9    Outstanding Securities.    

        The
Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in
the interest on a Registered Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding. A Security does not cease to be
outstanding because the Company or an Affiliate holds the Security. 

        If
a Security is replaced pursuant to Section 2.8, it ceases to be outstanding unless the Trustee and the Company receive proof satisfactory to them that the replaced Security is
held by a protected purchaser. 

        If
the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds on the Maturity of Securities of a Series money sufficient to pay such Securities (or
portions thereof) payable on that date, and the Paying Agent is not prohibited from paying such money to the Securityholders of such Series on that date pursuant to the terms of the Indenture, then on
and after that date such Securities of the Series (or portions thereof) cease to be outstanding and interest on them ceases to accrue. 

        In
determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver
hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the
date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2. 

        Section 2.10    Treasury Securities.    

        In
determining whether the Holders of the required principal amount of Securities of a Series have concurred in any direction, waiver or consent, Securities of a Series owned by the
Company, any other obligor upon the Securities or an Affiliate of the Company or such other obligor shall be disregarded and deemed not to be outstanding, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent only Securities of a Series that the Trustee knows are so owned shall be so disregarded. Securities so owned
which have been pledged in good faith may be regarded as outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Securities and
that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or any other obligor on the Securities. In case of a dispute as to such right, the advice
of counsel shall be full protection in respect of any decision made by the Trustee in accordance with such advice. The Trustee may, but shall not be obligated to, make a written request that the
Company furnish to the Trustee promptly an Officers' Certificate listing and identifying all Securities, if any, known by the Company to be owned or held by or for the account of any of the
above-described persons; and, subject to Sections 7.1 and 7.2, the Trustee shall be entitled to accept such Officers' Certificate as conclusive evidence of the facts therein set forth and of
the fact that all Securities not listed therein are outstanding for the purpose of any such determination. 

        Section 2.11    Temporary Securities.    

        Pending
the preparation of Securities in certificated form, the Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon a Company Order,
authenticate 

13

 

and
deliver temporary Securities (printed, lithographed, typewritten, photocopied or otherwise produced). Temporary Securities shall be issuable in any authorized denomination, and substantially in
the form of the Securities in certificated form, but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company. Every such
temporary Security shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon the same conditions and in substantially the same manner, and with the same
effect, as the Securities in certificated form. Without unreasonable delay, the Company will execute and deliver to the Trustee or such authenticating agent Securities of the same Series in
certificated form and thereupon any or all temporary Securities may be surrendered in exchange therefor, at each office or agency maintained by the Company pursuant to Section 4.7 and the
Trustee or such authenticating agent shall authenticate and make available for delivery in exchange for such
temporary Securities an equal aggregate principal amount of Securities of the same Series in certificated form. Such exchange shall be made by the Company at its own expense and without any charge
therefor. Until so exchanged, the temporary Securities shall in all respects be entitled to the same benefits and subject to the same limitations under this Indenture as Securities of the same Series
in certificated form authenticated and delivered hereunder. 

        Section 2.12    Cancellation.    

        The
Company at any time may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee and no one else shall cancel all Securities surrendered for registration of transfer, exchange, payment, replacement or cancellation and
dispose of such canceled Securities in accordance with its customary procedure. The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for
cancellation. The Trustee shall not authenticate Securities in place of canceled Securities other than pursuant to the terms of this Indenture. 

        Section 2.13    Defaulted Interest.    

        If
the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the
defaulted interest, to the Persons who are Securityholders of the Series on a subsequent special record date. The Company shall fix or cause to be fixed any such special record date and payment date
to the reasonable satisfaction of the Trustee and shall promptly mail or cause to be mailed to each Securityholder of the Series a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid. The Company may pay defaulted interest in any lawful manner. Unless otherwise provided in the designation of Securities of a Series, the defaulted
interest rate shall be the rate of interest borne by such Series at the time of such default. 

        Section 2.14    Registered Global Securities.    

        2.14.1    Terms of Securities.    A Board Resolution, a supplemental indenture hereto or an Officers' Certificate
shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Registered Global Securities and the Depositary for such Registered Global Security or
Securities. 

        2.14.2    Transfer and Exchange.    Notwithstanding any provisions to the contrary contained in Section 2.7 of
the Indenture and in addition thereto, any Registered Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of Holders other than
the Depositary for such Security or its nominee only if (i) such Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such Registered Global Security or
if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depositary within 

14

 

90 days
of such event or (ii) the Company executes and delivers to the Trustee an Officers' Certificate to the effect that such Registered Global Security shall be so exchangeable. Any
Registered Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depositary shall direct in writing in an
aggregate principal amount equal to the principal amount of the Registered Global Security with like tenor and terms. 

        Except
as provided in this Section 2.14.2, a Registered Global Security may not be transferred except as a whole by the Depositary with respect to such Registered Global Security
to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by the Depositary or any such nominee to a successor Depositary or a
nominee of such a successor Depositary. 

        2.14.3    Legend.    Any Registered Global Security issued hereunder shall bear a legend in substantially the
following form: 

        "This
Security is a Registered Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depositary or a nominee of the Depositary.
This Security is exchangeable for Securities registered in the name of a Person other than the Depositary or its nominee only in the limited circumstances described in the Indenture, and may not be
transferred except as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such a successor Depositary." 

        2.14.4    Acts of Holders.    The Depositary, as a Holder, may appoint agents and otherwise authorize participants to
give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture. 

        2.14.5    Payments.    Notwithstanding the other provisions of this Indenture, unless otherwise specified as
contemplated by Section 2.2, payment of the principal of and interest, if any, on any Registered Global Security shall be made to the Holder thereof. 

        2.14.6    Consents, Declaration and Directions.    The Company, the Trustee and any Agent shall treat a Person as the
Holder of such principal amount of outstanding Securities of such Series represented by a Registered Global Security as shall be specified in a written statement of the Depositary with respect to such
Registered Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture. 

        Section 2.15    Computation of Interest.    

        Except
as otherwise specified pursuant to Section 2.2 for Securities of any Series, interest on the Securities of each Series shall be computed on the basis of a
360-day year of twelve 30-day months. 

        Section 2.16    CUSIP and ISIN Numbers.    

        The
Company in issuing the Securities may use "CUSIP" and "ISIN" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP" and "ISIN" numbers in notices of redemption
as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any
notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company shall promptly notify the Trustee in writing of any changes to the CUSIP and ISIN numbers. 

15

 
ARTICLE 3

REDEMPTION  

        Section 3.1    Notice to Trustee.    

        The
Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any
part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. Such redemption may be conditional upon the occurrence of events occurring after
the delivery of a notice of redemption. If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of
Securities pursuant to the terms of such Securities, it shall notify the Trustee in writing of the redemption date and the principal amount of Series of Securities to be redeemed. The Company shall
give the notice at least 35 calendar days before the redemption date (or such shorter notice as may be acceptable to the Trustee). 

        Section 3.2    Selection of Securities to be Redeemed.    

        Unless
otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture or an Officers' Certificate, if less than all the Securities of a Series are to be
redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate. The Trustee shall make the selection from Securities of the
Series outstanding not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations larger than $1,000.
Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations
pursuant to Section 2.2.10, the minimum principal denomination for each Series and integral multiples thereof. Provisions of this Indenture that apply to Securities of a Series called for
redemption also apply to portions of Securities of that Series called for redemption. 

        Section 3.3    Notice of Redemption.    

        Unless
otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officers' Certificate, at least 30 days but not more than
60 days before a redemption date, the Company shall provide a notice of redemption by electronic transmission or first-class mail to each Holder whose Securities are to be redeemed and if any
Bearer Securities are outstanding, publish on one occasion a notice in an Authorized Newspaper. 

        The
notice shall identify the Securities of the Series to be redeemed and shall state: 

	(a)
	the
redemption date;

	(b)
	the
redemption price;

	(c)
	the
name and address of the Paying Agent;

	(d)
	if
less than all Securities of any Series are to be redeemed, the identification of the particular Securities to be redeemed and the portion of the
principal amount of any Security to be redeemed in part;

	(e)
	that
Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

	(f)
	that
interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date;

	(g)
	any
other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed; 

16

 

	(h)
	if
the redemption is to be conditional upon the satisfaction of certain events, a description of such events; and

	(i)
	the
CUSIP, ISIN or other identification number, if any. 

        At
the Company's written request, the Trustee shall give the notice of redemption in the Company's name and at the Company's expense and provided that the form and content of such notice
shall be prepared by the Company. 

        Section 3.4    Effect of Notice of Redemption.    

        Once
notice of redemption is mailed or published as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date and at the
redemption price, unless the conditions specified in such notice have not been satisfied. A notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be
paid at the redemption price plus accrued interest to the redemption date. 

        Section 3.5    Deposit of Redemption Price.    

        On
or before the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be
redeemed on that date. 

        Section 3.6    Securities Redeemed in Part.    

        Upon
surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to
the unredeemed portion of the Security surrendered. 

ARTICLE 4

COVENANTS  

        Section 4.1    Payment of Principal and Interest.    

        The
Company shall duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture. 

        Section 4.2    SEC Reports.    

        The
Company shall deliver (which delivery may be via electronic mail) to the Trustee within 15 days after the filing by the Company with the SEC copies of the annual reports and
of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the
SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall comply with the other provisions of TIA § 314(a). 

        Section 4.3    Compliance Certificate.    

        The
Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, a brief certificate from the principal executive officer, principal
financial officer, principal accounting officer or vice president or treasurer as to his or her knowledge of the Company's compliance with all conditions and covenants under this Indenture (which
compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture) and, in the event of any Default, specifying each such Default and the
nature and status thereof of which such Person may have knowledge. Such certificates need not comply with Section 11.5 of this Indenture. 

17

 

        Section 4.4    Stay, Extension and Usury Laws.    

        The
Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture or the Securities; and the Company (to the
extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted. 

        Section 4.5    Corporate Existence.    

        Subject
to Article V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and the rights (charter
and statutory), licenses and franchises of the Company; provided, however, that the Company shall not be required to preserve any such right, license or franchise, if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any
material respect to the Holders. 

        Section 4.6    Maintenance of Office or Agency.    

        The
Company will maintain an office or agency in the Borough of Manhattan, The City of New York, where the Securities of a Series may be surrendered for registration of transfer or
exchange or for presentation for payment and where notices and demands to or upon the Company in respect of the Securities of a Series and this Indenture may be served. The Company will give prompt
written notice to the Trustee of the location, and any change in the location, of such office or agency not designated or appointed by the Trustee. If at any time the Company shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust
Office. 

        The
Company may also from time to time designate co-registrars and one or more offices or agencies where the Securities of a Series may be presented or surrendered for any or
all such purposes and may from time to time rescind such designations. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency. 

        Section 4.7    Money For Securities Payments to be Held in Trust.    

        If
the Company shall at any time act as its own Paying Agent with respect to the Securities of any Series, it shall, on or before each due date of the principal of and premium, if any,
and interest, if any, on any of such Securities, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal and premium or interest so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as herein provided. The Company shall promptly notify the Trustee of any failure by the Company (or any other obligor of such
Securities) to make any payment of principal of or premium, if any, or interest, if any, on such Securities. 

        Whenever
the Company shall have one or more Paying Agents for the Securities of any Series, it shall, on or before each due date of the principal of and premium, if any, and interest, if
any, on such Securities, deposit with such Paying Agents sums sufficient (without duplication) to pay the principal
and premium or interest so becoming due, such sums to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the
Company shall promptly notify the Trustee of any failure by it so to act. 

        The
Company shall cause each Paying Agent for the Securities of any Series, other than the Company or the Trustee, to execute and deliver to the Trustee an instrument in which such
Paying 

18

 

Agent
shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent shall: 

	(a)
	hold
all sums held by it for the payment of the principal of and premium, if any, or interest, if any, on such Securities in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

	(b)
	give
the Trustee notice of any failure by the Company (or any other obligor upon such Securities) to make any payment of principal of or premium, if any, or
interest, if any, on such Securities; and

	(c)
	at
any time during the continuance of any such failure, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by
such Paying Agent and furnish to the Trustee such information as it possesses regarding the names and addresses of the Persons entitled to such sums. 

        The
Company may at any time pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent and, if so stated in a Company Order delivered to the Trustee, in accordance with the
provisions of Article 8; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 

        Any
money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of and premium, if any, or interest, if any, on any
Security and remaining unclaimed for two years after such principal and premium, if any, or interest, if any, has become due
and payable shall be paid to the Company on request of the Company, or, if then held by the Company, shall be discharged from such trust; and, upon such payment or discharge, the Holder of such
Security shall, as an unsecured general creditor and not as the Holder of an outstanding Security, look only to the Company for payment of the amount so due and payable and remaining unpaid, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such payment to the Company, may at the expense of the Company cause to be published once a week for two successive weeks, in each case on any day of
the week, in an Authorized Newspaper in each Place of Payment, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining will be paid to the Company. 

        Section 4.8    Waiver of Certain Covenants.    

        Except
as otherwise specified as contemplated by Section 2.2 for Securities of such Series, the Company may, with respect to the Securities of any Series, omit in any particular
instance to comply with any term, provision or condition set forth in any covenant provided herein or pursuant to Section 2.2.19 or Section 9.1(c) for the benefit of the Holders of such
Series if before the time for such compliance the Holders of at least 50 percent in principal amount of the outstanding Securities of such Series shall, by an Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such term, provision or condition, but no such wavier shall extend to or affect such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of such term, provision or condition shall remain in
full force and effect. 

19

 
ARTICLE 5

SUCCESSORS  

        Section 5.1    When Company May Merge, Etc.    

        The
Company shall not consolidate with or merge into, or convey, transfer or lease all or substantially all of its properties and assets to, any Person (a "successor person"), and may
not permit any Person to
merge into, or convey, transfer or lease its properties and assets substantially as an entirety to, the Company, unless: 

	(a)
	either
the Company shall be the continuing corporation or the successor person (if other than the Company) is a corporation, partnership, trust or other
entity organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and expressly assumes the Company's obligations on the Securities
and under this Indenture; and

	(b)
	immediately
after giving effect to the transaction, no Default or Event of Default, shall have occurred and be continuing. 

        The
Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officers' Certificate to the foregoing effect and an Opinion of Counsel stating that the
proposed transaction and such supplemental indenture comply with this Indenture. 

        Section 5.2    Successor Corporation Substituted.    

        The
successor person formed by such consolidation or into which the Company is merged or to which such transfer or lease is made shall succeed to and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect as if such successor person had been named as the Company herein, and thereafter (except in the case of a lease to
another Person) the predecessor corporation shall be relieved of all obligations and covenants under the Indenture and the Securities and, in the event of such conveyance or transfer, any such
predecessor corporation may be dissolved and liquidated. 

ARTICLE 6

DEFAULTS AND REMEDIES  

        Section 6.1    Events of Default.    

        "Event
of Default," wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental
indenture or Officers' Certificate, it is provided that such Series shall not have the benefit of said Event of Default: 

	(a)
	a
default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of
30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to the expiration of such period of 30 days); provided that, a
valid extension of an interest payment period by the Company in accordance with the terms of such Securities shall not constitute a failure to pay interest; or

	(b)
	a
default in the payment of the principal of, or premium, if any, on, any Security of that Series when due at its Maturity; or

	(c)
	a
default in the deposit of any sinking fund payment, when and as due in respect of any Security of that Series; or 

20

 

 

	(d)
	a
default, subject to the provisions in Section 4.8, in the performance or breach of any covenant or warranty of the Company in this Indenture (other
than a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series), which default continues uncured for a period of
90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25 percent in principal
amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a "Notice of Default"
hereunder; or

	(e)
	the
Company pursuant to or within the meaning of any Bankruptcy Law:

	(i)
	commences
a voluntary case,

	(ii)
	consents
to the entry of an order for relief against it in an involuntary case,

	(iii)
	consents
to the appointment of a Custodian of it or for all or substantially all of its property,

	(iv)
	makes
a general assignment for the benefit of its creditors, or

	(v)
	generally
is unable to pay its debts as the same become due; or

	(f)
	a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

	(i)
	is
for relief against the Company in an involuntary case,

	(ii)
	appoints
a Custodian of the Company for all or substantially all of its property, or

	(iii)
	orders
the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days; or

	(g)
	any
other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or
an Officers' Certificate, in accordance with Section 2.2.19. 

        The
term "Bankruptcy Law" means title 11, U.S. Code or any similar Federal or State law for the relief of debtors. The term "Custodian" means any receiver, trustee, assignee, liquidator
or similar official under any Bankruptcy Law. 

        Section 6.2    Acceleration of Maturity; Rescission and Annulment.    

        If
an Event of Default described in Section 6.1(a), (b) or (c) occurs and is continuing, then, and in each and every such case, except for any series of Securities
the principal of which shall have already become due and payable, either the Trustee or the Holders of not less than 25 percent in aggregate principal amount of the Securities of each such
affected series then outstanding hereunder (each such series voting as a separate class) by notice in writing to the Company (and to the Trustee if given by Securityholders), may declare the entire
principal (or, if the Securities of such series are Discount Securities, such portion of the principal amount as may be specified in the terms of such series) of all Securities of such series, and the
interest accrued thereon, if any, to be due and payable immediately, and upon any such declaration, the same shall become immediately due and payable. 

        Except
as otherwise provided in the terms of any series of Senior Securities pursuant to Section 2.2, if an Event of Default described in Section 6.1(d) or (g) above
with respect to all series of the Senior Securities then outstanding, occurs and is continuing, then, and in each and every such case, unless the principal of all of the Senior Securities shall have
already become due and payable, either the Trustee or the Holders of not less than 25 percent in aggregate principal amount of all of the Senior Securities then outstanding hereunder (treated
as one class) by notice in writing to the Company (and to the Trustee if given by Securityholders), may declare the entire principal (or, if the Senior 

21

 

Securities
of any series are Discount Securities, such portion of the principal amount as may be specified in the terms of such series) of all of the Senior Securities then outstanding, and the
interest accrued thereon, if any, to be due and payable immediately, and upon such declaration, the same shall become immediately due and payable. If an Event of Default described in clause (e)
or (f) above occurs and is continuing, then the principal amount of all the Senior Securities then outstanding, and the interest accrued thereon, if any, shall become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any Holder. 

        Except
as otherwise provided in the terms of any series of Subordinated Securities pursuant to Section 2.2, if an Event of Default described in Section 6.1 (d) or
(g) above with respect to all series of Subordinated Securities then outstanding, occurs and is continuing, then, and in each and every such case, unless the principal of all of the
Subordinated Securities shall have already become due and payable, either the Trustee or the Holders of not less than 25 percent in aggregate principal amount of all of the Subordinated
Securities then outstanding hereunder (treated as one class) by notice in writing to the Company (and to the Trustee if given by Securityholders), may declare the entire principal (or, if the
Subordinated Securities of any series are Discount Securities, such portion of the principal amount as may be specified in the terms of such series) of all of the Subordinated Securities then
outstanding, and the interest accrued thereon, if any, to be due and payable immediately, and upon such declaration, the same shall become immediately due and payable. 

        If
an Event of Default described in Section 6.1 (d) or (g) occurs and is continuing, which Event of Default is with respect to less than all series of Senior
Securities then outstanding, then, and in each and every such case, except for any series of Senior Securities the principal of which shall have already become due and payable, either the Trustee or
the Holders of not less than 25 percent in aggregate principal amount of the Senior Securities of each such affected series then outstanding hereunder (each
such series voting as a separate class) by notice in writing to the Company (and to the Trustee if given by Securityholders), may declare the entire principal (or, if the Securities of such series are
Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of such series) of all Securities of such series, and the interest accrued thereon, if any, to
be due and payable immediately, and upon any such declaration, the same shall become immediately due and payable. 

        If
an Event of Default described in Section 6.1(d) or (g) occurs and is continuing, which Event of Default is with respect to less than all series of Subordinated
Securities then outstanding, then, and in each and every such case, except for any series of Subordinated Securities the principal of which shall have already become due and payable, either the
Trustee or the Holders of not less than 25 percent in aggregate principal amount of the Subordinated Securities of each such affected series then outstanding hereunder (each such series voting
as a separate class) by notice in writing to the Company (and to the Trustee if given by Securityholders), may declare the entire principal (or, if the Securities of such series are Discount
Securities, such portion of the principal amount as may be specified in the terms of such series) of all Securities of such series, and the interest accrued thereon, if any, to be due and payable
immediately, and upon any such declaration, the same shall become immediately due and payable. 

        If
an Event of Default specified in Section 6.1(e) or (f) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all
outstanding Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. 

        At
any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding 

22

 

Securities
of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: 

	(a)
	the
Company has paid or deposited with the Trustee a sum sufficient to pay

	(i)
	all
overdue interest, if any, on all Securities of that Series,

	(ii)
	the
principal of any Securities of that Series which have become due otherwise than by such declaration of acceleration and interest thereon at the rate or
rates prescribed therefor in such Securities,

	(iii)
	to
the extent that payment of such interest is lawful, interest upon any overdue principal and overdue interest at the rate or rates prescribed therefor
in such Securities, and

	(iv)
	all
sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; 

and 

	(b)
	all
Events of Default with respect to Securities of that Series, other than the non-payment of the principal of Securities of that Series which
have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13. 

        No
such rescission shall affect any subsequent Default or impair any right consequent thereon. 

        Section 6.3    Collection of Indebtedness and Suits for Enforcement by Trustee.    

        The
Company covenants that if 

	(a)
	default
is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of
30 days, or

	(b)
	default
is made in the payment of principal of any Security when due at the Maturity thereof, or

	(c)
	default
is made in the deposit of any sinking fund payment when and as due by the terms of a Security, then,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and interest and, to
the extent that payment of such interest shall be legally enforceable, interest on any overdue principal or any overdue interest, at the rate or rates prescribed therefor in such Securities, and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel. 

        If
the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect
the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated. 

        If
an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights
of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 

23

 

        Section 6.4    Trustee May File Proofs of Claim.    

        In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall
then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,  

	(a)
	to
file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel) and of the Holders allowed in such judicial proceeding, and

	(b)
	to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7. 

        Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

        Section 6.5    Trustee May Enforce Claims Without Possession of Securities.    

        All
rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered. 

        Section 6.6    Application of Money Collected.    

        Any
money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 

First:  To
the payment of all amounts due the Trustee under Section 7.7; and 

Second:  To
the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively; and 

Third:  To
the Company. 

24

 

        Section 6.7    Limitation on Suits.    

        No
Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless  

	(a)
	such
Holder has previously given written notice to the Trustee of an Event of Default and the continuance thereof with respect to the Securities of that
Series;

	(b)
	the
Holders of not less than 25 percent in principal amount of the outstanding Securities of that Series shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

	(c)
	such
Holder or Holders have offered to the Trustee reasonable security or indemnity satisfactory to the Trustee against the expenses and liabilities to be
incurred in compliance with such request;

	(d)
	the
Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

	(e)
	no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in
principal amount of the outstanding Securities of that Series; 

it
being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all such Holders. 

        Section 6.8    Unconditional Right of Holders to Receive Principal and Interest.    

        Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and
interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 

        Section 6.9    Restoration of Rights and Remedies.    

        If
the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or
has been
determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 

        Section 6.10    Rights and Remedies Cumulative.    

        Except
as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon
or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition
to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy. 

25

 

        Section 6.11    Delay or Omission Not Waiver.    

        No
delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time,
and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 

        Section 6.12    Control by Holders.    

        The
Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series, provided that  

	(a)
	such
direction shall not be in conflict with any rule of law or with this Indenture,

	(b)
	the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and

	(c)
	subject
to the provisions of Section 6.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith
shall, by a Trust Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability. 

        Section 6.13    Waiver of Past Defaults.    

        The
Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past
Default hereunder with respect to such Series and its consequences, except a Default in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders
of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such
acceleration). Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 

        Section 6.14    Undertaking for Costs.    

        All
parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any
suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10 percent in principal amount of the outstanding Securities of any
Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed in
such Security (or, in the case of redemption, on the redemption date). 

26

 
ARTICLE 7

TRUSTEE  

        Section 7.1    Duties of Trustee.    

        (a)   If
an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care
and skill in their exercise as a prudent Person would exercise or use under the circumstances in the conduct of such Person's own affairs. 

        (b)   Except
during the continuance of an Event of Default: 

	(i)
	the
Trustee need perform only those duties that are specifically set forth in this Indenture and no other implied covenants or obligations shall be read
into this Indenture against the Trustee; and

	(ii)
	in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; however, the Trustee shall examine such certificates and opinions to determine
whether or not they conform to the requirements of this Indenture. 

        (c)   The
Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except
that: 

	(i)
	this
paragraph does not limit the effect of paragraph (b) of this Section;

	(ii)
	the
Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and

	(iii)
	the
Trustee shall not be liable with respect to any action it takes or omits to take with respect to Securities of any Series in good faith in accordance
with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series. 

        (d)   Every
provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of this Section. 

        (e)   The
Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. 

        (f)    Money
held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 

        (g)   No
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk is not
reasonably assured to it. 

        (h)   Except
for an Event of Default under Sections 6.1(a), (b) or (c) hereof, the Trustee shall not be deemed to have notice, nor shall it be charged
with knowledge, of any Event of Default unless a Trust Officer has actual knowledge thereof or unless written notice of such Event of Default is received by the Trustee at its Corporate Trust Office
and such notice references the Notes and this Indenture. 

        (i)    Every
provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this
Section and to the provisions of the TIA. 

27

 

        Section 7.2    Rights of Trustee.    

        (a)   The
Trustee may rely on any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or
matter stated in the document. 

        (b)   Before
the Trustee acts or refrains from acting, it may require an Officers' Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action
it takes or omits to take in good faith in reliance on the Officers' Certificate or Opinion of Counsel. 

        (c)   The
Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 

        (d)   The
Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers. 

        (e)   The
Trustee may consult with counsel, and the advice or opinion of counsel with respect to legal matters relating to this Indenture and the Securities shall be full and
complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel. 

        (f)    The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond, debenture, note or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it
may see fit. 

        (g)   The
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the
Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby. 

        (h)   The
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its rights to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other Person employed to act hereunder. 

        (i)    The
Trustee may request that the Company deliver an Officers' Certificate setting forth the names of individuals and/or titles of officers authorized at such time to
take specified actions pursuant to this Indenture, which Officers' Certificate may be signed by any person authorized to sign an Officers' Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded. 

        (j)    The
permissive rights of the Trustee enumerated herein shall not be construed as duties. 

        Section 7.3    Individual Rights of Trustee.    

        The
Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate with the same rights it would
have if it were not Trustee. Any Agent may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11. 

        Section 7.4    Trustee's Disclaimer.    

        The
Trustee shall not be responsible and makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company's use of
the proceeds from the Securities, and it shall not be responsible for any statement in the Securities or in any document 

28

 

issued
in connection with the sale of the Securities or in the Securities other than its certificate of authentication. 

        Section 7.5    Notice of Defaults.    

        If
a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Trust Officer of the Trustee, the Trustee shall mail to
each Securityholder of the Securities of that Series and, if any Bearer Securities are outstanding, publish on one occasion in an
Authorized Newspaper, notice of a Default or Event of Default within 90 days after it occurs or 30 days after it is known to a Trust Officer or written notice of it is received by the
Trustee. Except in the case of a Default or Event of Default in payment of principal, premium, if any, of or interest on any Security of any Series or in payment of any redemption obligation, the
Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its Trust Officers in good faith determines that withholding the notice is in the interests of
Securityholders of that Series. 

        Section 7.6    Reports by Trustee to Holders.    

        As
promptly as practicable after each May 15 beginning with May 15, 2009, and in any event prior to July 15 in each year, the Trustee shall transmit by mail to all
Securityholders, as their names and addresses appear on the register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an Authorized Newspaper, a brief report dated as of
May 15, each year as and if required by TIA § 313(a) if and to the extent required by such subsection. The Trustee shall also comply with TIA § 313(b) and
TIA § 313(c). 

        A
copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange (if any) on which the Securities of that Series are
listed. The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange and of any delisting thereof. 

        Section 7.7    Compensation and Indemnity.    

        The
Company shall pay to the Trustee from time to time such compensation as the Company and the Trustee shall from time to time agree in writing. The Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or
made by it, including costs of collection, in addition to the compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the
Trustee's agents, counsel, accountants and experts. The Company shall indemnify the Trustee, and hold it harmless, against any and all loss, liability or expense (including reasonable attorneys' fees)
incurred by or in connection with the offer and sale of the Securities or the administration of this trust and the performance of its duties hereunder. The Trustee shall notify the Company of any
claim for which it may seek indemnity promptly upon obtaining actual knowledge thereof. The Company shall defend the claim and the indemnified party shall provide reasonable cooperation at the
Company's expense in the defense. Such indemnified parties may have separate counsel and the Company shall pay the fees and expenses of such counsel; provided, however, that the Company shall not be
required to pay such fees and expenses if it assumes such indemnified parties' defense and, in such indemnified parties' reasonable judgment, there is no conflict of interest between the Company and
such parties in connection with such defense. The Company need not reimburse any expense or indemnify against any loss, liability or expense incurred by an indemnified party through such party's own
willful misconduct and negligence. 

        To
secure the Company's payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee
other than money or property held in trust to pay principal of and interest and any liquidated damages on particular Securities of that Series. 

29

 

        The
Company's payment obligations pursuant to this Section shall survive the satisfaction or discharge of this Indenture, any rejection or termination of this Indenture under any
bankruptcy law or the resignation or removal of the Trustee. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(f) or (g) occurs, the expenses and the compensation for the services
are intended to constitute expenses of administration under any Bankruptcy Law. 

        Section 7.8    Replacement of Trustee.    

        The
Trustee may resign with respect to the Securities of one or more Series at any time by giving the Company not less than 90 days' prior written notice. The Holders of a
majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and may appoint a successor Trustee. The Company shall
remove the Trustee with respect to Securities of one or more Series if: 

	(a)
	the
Trustee fails to comply with Section 7.10;

	(b)
	the
Trustee is adjudged bankrupt or insolvent;

	(c)
	a
receiver or other public officer takes charge of the Trustee or its property; or

	(d)
	the
Trustee otherwise becomes incapable of acting. 

        If
the Trustee resigns, is removed by the Company or by the Holders of a majority in principal amount of the Securities of any Series and such Securityholders do not reasonably promptly
appoint a successor Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Company shall promptly
appoint a successor Trustee. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to each Securityholder of each such Series and, if any Bearer Securities are outstanding, publish such notice on one occasion in
an Authorized Newspaper. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.7. 

        If
a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring
Trustee or the Holders of 10 percent in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

        If
the Trustee with respect to the Securities of any one or more Series fails to comply with Section 7.10, any Securityholder of the applicable Series may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 

        Notwithstanding
the replacement of the Trustee pursuant to this Section, the Company's obligations under Section 7.7 shall continue for the benefit of the retiring Trustee. 

        Section 7.9    Successor Trustee by Merger, etc.    

        If
the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business or assets to, another corporation or banking association,
the resulting, surviving or transferee corporation without any further act shall be the successor Trustee. 

30

 

  
        In case at the time such successor or successors by merger, conversion or consolidation to the Trustee with respect to the Securities of any one or more Series shall succeed to the
trusts created by this Indenture any of the Securities of the applicable Series shall have been authenticated but not delivered, any such successor to such Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities of the applicable Series so authenticated; and in case at that time any of the Securities of such Securities shall not have been
authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Securities of such Series or in this Indenture provided that the certificate of the Trustee shall have. 

        Section 7.10    Eligibility; Disqualification.    

        The
Trustee shall at all times satisfy the requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at least $100,000,000 as set forth in
its most recent published annual report of condition. The Trustee shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation of TIA
§ 310(b)(1) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Company are outstanding if the
requirements for such exclusion set forth in TIA § 310(b)(1) are met. 

        Section 7.11    Preferential Collection of Claims Against Company.    

        The
Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated. 

ARTICLE 8

SATISFACTION AND DISCHARGE; DEFEASANCE  

        Section 8.1    Satisfaction and Discharge of Indenture.    

        This
Indenture, with respect to Securities of any Series (if all Series issued under this Indenture are not to be effected) shall, upon Company Order, cease to be of further effect
(except as hereinafter provided in this Section 8.1), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when  

	(a)
	either

	(i)
	all
Securities of such Series theretofore authenticated and delivered (other than (A) Securities that have been destroyed, lost or stolen and that
have been replaced or paid or (B) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company
or discharged from such trust, as provided in Sections 2.5 and 4.7) have been delivered to the Trustee for cancellation; or

	(ii)
	all
such Securities of such Series not theretofore delivered to the Trustee for cancellation:

	(1)
	have
become due and payable, or

	(2)
	will
become due and payable at their Stated Maturity within one year, or

	(3)
	are
to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the
name, and at the expense, of the Company, or

	(4)
	are
deemed paid and discharged pursuant to Section 8.3, as applicable; 

31

 

and
the Company, in the case of (1), (2) or (3) above, has deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and
discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal of, premium, if any, and interest on, and any mandatory sinking fund
payments to the date of such deposit (in the case of Securities of such Series which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date,
as the case may be;  

	(b)
	the
Company has paid or caused to be paid all other sums payable hereunder by the Company; and

	(c)
	the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture have been complied with. 

        Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the
Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 4.7 (last paragraph only), 8.1, 8.2 and 8.5 shall survive. 

        Section 8.2    Application of Trust Funds; Indemnification.    

        (a)    Subject
to the provisions of Section 8.5, all money deposited with the Trustee pursuant to Section 8.1, all money and U.S. Government Obligations or
Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal and interest
for whose payment such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Sections 8.3 or 8.4. 

        (b)    The
Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign
Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest and principal received in respect of such obligations other than any payable by or on behalf of Holders. 

        (c)    The
Trustee shall deliver or pay to the Company from time to time upon Company Request any U.S. Government Obligations or Foreign Government Obligations or money held by
it as provided in Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to
the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or Foreign Government Obligations
or money were deposited or received. This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture. 

        Section 8.3    Legal Defeasance of Securities of any Series.    

        Unless
this Section 8.3 is otherwise specified, pursuant to Section 2.2.24, to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and
discharged the entire indebtedness on all the outstanding Securities of such Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and the
provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense 

32

 

of
the Company, shall, at Company Request, execute proper instruments acknowledging the same), except as to: 

	(a)
	the
rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof, (i) payment of the
principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Stated Maturity of such principal or installment of principal or interest and
(ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this
Indenture and the Securities of such Series;

	(b)
	the
provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

	(c)
	the
rights, powers, trust and immunities of the Trustee hereunder; 

provided
that, the following conditions shall have been satisfied: 

	(d)
	the
Company shall have deposited or caused to be deposited irrevocably with the Trustee as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in
Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated
in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof, in accordance with their
terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash,
sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each
installment of principal (including mandatory sinking fund or analogous payments) of and interest, if any, on all the Securities of such Series on the dates such installments of interest or principal
are due;

	(e)
	such
deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the
Company is a party or by which it is bound;

	(f)
	no
Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the
period ending on the 91st day after such date;

	(g)
	the
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel from a nationally recognized law firm to the effect that
(i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has been a change
in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not
recognize income, gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

	(h)
	the
Company shall have delivered to the Trustee an Officers' Certificate stating that the deposit was not made by the Company with the intent of preferring
the Holders of the 

33

 

Securities
of such Series over any other creditors of the company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company;  

	(i)
	such
deposit shall not result in the trust arising from such deposit constituting an investment company (as defined in the Investment Company Act of 1940,
as amended), or such trust shall be qualified under such Act or exempt from regulation thereunder; and

	(j)
	the
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for
relating to the defeasance contemplated by this Section 8.3 have been complied with. 

        Section 8.4    Covenant Defeasance.    

        Unless
this Section 8.4 is otherwise specified pursuant to Section 2.2.24 to be inapplicable to Securities of any Series, on and after the date of the deposit referred to
in subparagraph (a) hereof, the Company may omit to comply with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5 and 5.1 as well as any additional covenants
contained in a supplemental indenture hereto for a particular Series of Securities or a Board Resolution or an Officers' Certificate delivered pursuant to Section 2.2.24 (and the failure to
comply with any such covenants shall not constitute a Default or Event of Default under Section 6.1) and the occurrence of any event described in clause (e) of Section 6.1 shall
not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series, provided that the following conditions shall have been satisfied: 

	(a)
	with
reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c))
with the Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of such
Series denominated in Dollars, cash in Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case of
Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in
respect thereof, in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered
to the Trustee, to pay principal and interest, if any, on and any mandatory sinking fund in respect of the Securities of such Series on the dates such installments of interest or principal are due;

	(b)
	such
deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the
Company is a party or by which it is bound;

	(c)
	no
Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit;

	(d)
	the
Company shall have delivered to the Trustee an Opinion of Counsel from a nationally recognized law firm confirming that Holders of the Securities of
such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such deposit and defeasance had not occurred;

	(e)
	the
Company shall have delivered to the Trustee an Officers' Certificate stating the deposit was not made by the Company with the intent of preferring the
Holders of the Securities of 

34

 

such
Series over any other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and  

	(f)
	the
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to the defeasance contemplated by this Section 8.4 have been complied with. 

        Section 8.5    Repayment to Company.    

        The
Trustee and the Paying Agent shall promptly pay to the Company (or its designee) upon Company Order any excess moneys or U.S. Government Obligations held by them at any time. The
provisions of the last paragraph of Section 4.7 shall apply to any money held by the Trustee or any Paying Agent that remains unclaimed for two years after the Maturity of any Series or
Securities for which money or U.S. Government Obligations have been deposited pursuant to Sections 8.3 and 8.4. 

        Section 8.6    Effect of Subordination Provisions.    

        Unless
otherwise expressly established pursuant to Section 2.2 with respect to the Subordinated Securities of any Series, the provisions of Article 10 hereof, insofar as
they pertain to the Subordinated Securities of such series, and the Subordination Provisions established pursuant to Section 2.2.9 with respect to such Series, are hereby expressly made subject
to the provisions for satisfaction and discharge and defeasance and covenant defeasance set for this Article 8 and, anything herein to the contrary notwithstanding, upon the effectiveness of
such satisfaction and discharge and defeasance and covenant defeasance pursuant to this Article 8 with respect to the Securities of such Series, such Securities shall thereupon cease to be so
subordinated and shall no longer be subject to the provisions of Article 10 or the Subordination Provisions established pursuant to Section 2.2.9 with respect to such series and, without
limitation to the foregoing, all moneys, U.S. Government Obligations and other securities or property deposited with the Trustee (or other qualifying trustee) in trust in connection with such
satisfaction and discharge, defeasance or covenant defeasance, as the case may be, and all proceeds therefrom may be applied to pay the principal of, premium, if any, on, and mandatory sinking fund
payments, if any with respect to the Securities of such Series as and when the same shall become due and payable notwithstanding the provisions of Article 10 or such Subordination Provisions. 

ARTICLE 9

AMENDMENTS AND WAIVERS  

        Section 9.1    Without Consent of Holders.    

        The
Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder: 

	(a)
	to
convey, transfer, assign, mortgage or pledge to the Trustee as security for the Securities of one or more Series any property or assets;

	(b)
	to
comply with Article V;

	(c)
	to
add to the covenants of the Company such further covenants, restrictions, conditions or provisions as the Company and the Trustee shall consider to be
for the protection of the Holders of Securities, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions, conditions or provisions an
Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth; provided, that in respect of any such additional covenant,
restriction, condition or provision such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other
defaults) or may provide for an immediate enforcement upon such an Event of 

35

 

Default
or may limit the remedies available to the Trustee upon such an Event of Default or may limit the right of the Holders of a majority in aggregate principal amount of the Securities of such
series to waive such an Event of Default;  

	(d)
	add
a guarantor or permit any Person to guarantee the obligations under any Series of Securities;

	(e)
	to
cure any ambiguity, defect or inconsistency;

	(f)
	to
provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;

	(g)
	to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more Series and to add
to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee;

	(h)
	to
provide for uncertificated Securities in addition to or in place of certificated Securities;

	(i)
	to
make any change that does not materially adversely affect the rights of any Securityholder; and

	(j)
	to
comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA. 

        Section 9.2    With Consent of Holders.    

        The
Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of
each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each
such Series. Except
as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such waiver by notice to the Trustee (including
consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with
respect to such Series. 

        It
shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental indenture or waiver, but
it shall be sufficient if such consent approves the substance thereof. After a supplemental indenture or waiver under this section becomes effective, the Company shall mail to the Holders of
Securities affected thereby and, if any Bearer Securities affected thereby are outstanding, publish on one occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture
or waiver. Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver. 

        Section 9.3    Limitations.    

        Without
the consent of each Securityholder affected, an amendment or waiver may not: 

	(a)
	extend
the final maturity of any Security;

	(b)
	reduce
the principal amount thereof, or premium thereon, if any;

	(c)
	reduce
the rate or extend the time of payment of interest thereon,

	(d)
	reduce
any amount payable on redemption thereof; 

36

 

	(e)
	make
the principal thereof (including any amount in respect of original issue discount), or premium thereon, if any, or interest thereon payable in any coin
or currency other than that provided in the Securities or in accordance with the terms thereof;

	(f)
	reduce
the amount of the principal of a Discount Security that would be due and payable upon an acceleration of the maturity thereof pursuant to
Section 6.2 or the amount thereof provable in bankruptcy pursuant to Section 6.4;

	(g)
	in
the case of Subordinated Securities of any series, modify any of the Subordination Provisions or the definition of "Senior Indebtedness" relating to such
series in a manner adverse to the holders of such Subordinated Securities;

	(h)
	alter
the provisions of Section 11.15 or 11.16;

	(i)
	impair
or affect the right of any Securityholder to institute suit for the payment thereof when due or, if the Securities provide therefor, any right of
repayment at the option of the Securityholder;

	(j)
	reduce
the aforesaid percentage of Securities of any Series, the consent of the Holders of which is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture; or

	(k)
	modify
any provision of this Section 9.3. 

        Section 9.4    Compliance with Trust Indenture Act.    

        Every
amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect. 

        Section 9.5    Revocation and Effect of Consents.    

        Until
an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder's Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the
consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective. 

        Any
amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a)
through (g) of Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder's Security. 

        The
Company may, but shall not be obligated to, fix a record date for the purpose of determining the Securityholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Securityholders at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not
such Persons continue to be Securityholders after such record date. 

        Section 9.6    Notation on or Exchange of Securities.    

        The
Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated. The Company in exchange for Securities of that Series
may issue 

37

 

and
the Trustee shall authenticate upon written request new Securities of that Series that reflect the amendment or waiver. 

        Section 9.7    Trustee Protected.    

        In
executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture,
the Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Trustee shall sign all supplemental indentures, except that the Trustee need not sign any supplemental indenture that adversely affects its rights. 

ARTICLE 10

SUBORDINATION OF SECURITIES  

        Section 10.1    Agreement to Subordinate.    

        The
Company, for itself, its successors and assigns, covenants and agrees, and each Holder of Subordinated Securities of any Series by his acceptance thereof, likewise covenants and
agrees, that the payment of the principal of (and premium, if any) and interest, if any, on, and mandatory sinking fund payments, if any, in respect of each and all of the Subordinated Securities of
such series shall be expressly subordinated, to the extent and in the manner provided in the Subordination Provisions established with respect to the Subordinated Securities of such Series pursuant to
Section 2.2.9 hereof, in right of payment to the prior payment in full of all Senior Debt with respect to such Series. 

ARTICLE 11

MISCELLANEOUS  

        Section 11.1    Trust Indenture Act Controls.    

        If
any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed
provision shall control. 

        Section 11.2    Notices.    

        Any
notice or communication by the Company or the Trustee to the other is duly given if in writing and delivered in person or mailed by first-class mail: 

if
to the Company: 

Intrepid
Potash, Inc.

707 17th Street, Suite 4200

Denver, Colorado 80202

Attention: Executive Vice President and General Counsel 

and 

Intrepid
Potash, Inc.

707 17th Street, Suite 4200

Denver, Colorado 80202

Attention: Executive Vice President and Chief Financial Officer 

38

 

if
to the Trustee: 

Wells
Fargo Bank, N.A.

201 Main Street, Suite 301

MAC: T5441-030

Fort Worth, Texas 76102

Attention: Corporate Trust Services 

        The
Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 

        Any
notice or communication to a Securityholder shall be provided by electronic transmission or by first-class mail to his address shown on the register kept by the Registrar and, if any
Bearer Securities are outstanding, published in an Authorized Newspaper. Failure to provide a notice or communication to a Securityholder of any Series or any defect in it shall not affect its
sufficiency with respect to other Securityholders of that or any other Series. 

        If
a notice or communication is provided or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it. 

        If
the Company provides a notice or communication to Securityholders, it shall provide a copy to the Trustee and each Agent at the same time. 

        In
case, by reason of the suspension of or irregularities in regular mail service, it shall be impracticable to mail notice by the Company when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such notice as shall be reasonably satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice. 

        Section 11.3    Communication by Holders with Other Holders.    

        Securityholders
of any Series may communicate pursuant to TIA § 312(b) with other Securityholders of that Series or any other Series with respect to their rights under
this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 

        Section 11.4    Certificate and Opinion as to Conditions Precedent.    

        Upon
any request or application by the Company to the Trustee to take or refrain from taking any action under this Indenture, the Company shall furnish to the
Trustee: 

	(a)
	an
Officers' Certificate in form and substance reasonably satisfactory to the Trustee stating that, in the opinion of the signers, all conditions precedent,
if any, provided for in this Indenture relating to the proposed action have been complied with; and

	(b)
	an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee stating that, in the opinion of such counsel, all such conditions
precedent have been complied with. 

        Section 11.5    Statements Required in Certificate or Opinion.    

        Each
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: 

	(a)
	a
statement that the person making such certificate or opinion has read such covenant or condition;

	(b)
	a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or
opinion are based; 

39

 

	(c)
	a
statement that, in the opinion of such individual, he has made such examination or investigation as is necessary to enable him to express an informed
opinion as to whether or not such covenant or condition has been complied with; and

	(d)
	a
statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with. 

        Section 11.6    Rules by Trustee and Agents.    

        The
Trustee may make reasonable rules for action by or a meeting of Securityholders of one or more Series. Any Agent may make reasonable rules and set reasonable requirements for its
functions. 

        Section 11.7    Legal Holidays.    

        Unless
otherwise provided by Board Resolution, Officers' Certificate or supplemental indenture for a particular Series, a "Legal Holiday" is a Saturday, Sunday or a day on which banking
institutions in the city (or in any of the cities, if more than one) in which amounts are payable, as specified in the form of such Security, are not required by any applicable law or regulation to be
open, and no interest shall accrue for the intervening period. If a regular record date is a Legal Holiday, the record date shall not be affected. 

        Section 11.8    No Recourse Against Others.    

        No
recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in any Security, or because of any indebtedness evidenced thereby, shall be had against
any incorporator, as such, or against any past, present or future stockholder, officer or director, as such, of the Company or of any successor, either directly or through the Company or any
successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities and the coupons, if any, appertaining thereto by the Holders thereof and as part of
the consideration for the issue of the Securities and the coupons, if any, appertaining thereto. 

        Section 11.9    Counterparts.    

        This
Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all
of which taken together shall constitute one and the same agreement. 

        Section 11.10    Governing Laws; Waiver of Jury Trial.    

        THIS INDENTURE AND EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF SUCH STATE, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE
LAWS AND RULES 327(b).

        EACH OF THE COMPANY AND THE TRUSTEE 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 INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

        Section 11.11    No Adverse Interpretation of Other Agreements.    

        This
Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture. 

40

 

        Section 11.12    Successors.    

        All
agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor. 

        Section 11.13    Severability.    

        In
case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby. 

        Section 11.14    Table of Contents, Headings, Etc.    

        The
Table of Contents, Cross Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a
part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 

        Section 11.15    Securities in a Foreign Currency or in ECU.    

        Unless
otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officers' Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a
particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all Series or
all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in a coin or currency other than Dollars
(including ECUs), then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate at such time. For purposes of this Section 11.15, "Market Exchange Rate" shall mean the noon Dollar buying rate in New York City for cable
transfers of that currency as published by the Federal Reserve Bank of New York; provided, however, in the case of ECUs, Market Exchange Rate shall mean the rate of exchange determined by the
Commission of the European Union (or any successor thereto) as published in the Official Journal of the European Union (such publication or any successor publication, the "Journal"). If such Market
Exchange Rate is not available for any reason with respect to such currency, the Trustee shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank
of New York or, in the case of ECUs, the rate of exchange as published in the Journal, as of the most recent available date, or quotations or, in the case of ECUs, rates of exchange from one or more
major banks in The City of New York or in the country of issue of the currency in question or, in the case of ECUs, in Luxembourg or such other quotations or, in the case of ECUs, rates of exchange as
the Trustee, upon consultation with the Company, shall deem appropriate. The provisions of this paragraph shall apply in determining the equivalent principal
amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture. 

        All
decisions and determinations of the Trustee regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole
discretion and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all purposes and irrevocably binding upon the Company and all Holders. 

        Section 11.16    Judgment Currency.    

        The
Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to
convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the "Required Currency") into a currency in which a judgment will be rendered (the
"Judgment Currency"), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with
the Judgment Currency on the 

41

 

day
on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then, the rate of exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is
entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the
actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of
action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable,
and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture. For purposes of the foregoing, "New York Banking Day" means any day except a Saturday,
Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close. 

        Section 11.17    Acts of Holders.    

        (a)    Any
request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by a specified percentage in
principal amount of the Securityholders of any or all Series may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such specified percentage of
Securityholders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Company. Such instrument or instruments and any such record (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the "ACT" of the
Holders signing such instrument or instruments and so voting at any such meeting. Proof of execution of any instrument or of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Sections 7.1 and 7.2) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section 11.17. 

        (b)    Subject
to Sections 7.1 and 7.2, the execution of any instrument by a Securityholder or his agent or proxy may be proved in accordance with such reasonable rules
and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The holding of Registered Securities shall be proved by the Security register or by a
certificate of the registrar thereof. 

        (c)    The
Company, the Trustee and any agent of the Company or the Trustee may deem and treat the person in whose name any Security shall be registered upon the Security
register for such series as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose
of receiving payment of or on account of the principal of and, subject to the provisions of this Indenture, interest on such Security and for all other purposes; and neither the Company nor the
Trustee nor any agent of the Company or the Trustee shall be affected by any notice to the contrary. The Company, the Trustee and any agent of the Company or the Trustee may treat the Holder of any
Bearer Security as the absolute owner of such Bearer Security (whether or not such Bearer Security shall be overdue) for the purpose of receiving payment thereof or on account thereof and for all
other purposes, and neither the Company, the Trustee, nor any agent of the Company or the Trustee shall be affected by any notice to the contrary. All such payments so made to any such person, or upon
his order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Bearer Security. 

42

 

        (d)    At
any time prior to (but not after) the evidencing to the Trustee, as provided in this Section 11.17, of the taking of any action by the Holders of the
percentage in aggregate principal amount of the Securities of any or all series, as the case may be, specified in this Indenture in connection with such action, any Holder of a Security the serial
number of which is shown by the evidence to be included among the serial numbers of the Securities the Holders of which have consented to such action may, by filing written notice at the Corporate
Trust Office and upon proof of holding as provided in this Article, revoke such action so far as concerns such Security. Except as aforesaid, any such action taken by the Holder of any Security shall
be conclusive and binding upon such Holder and upon all future Holders and owners of such Security and of any Securities issued in exchange or substitution therefor or on registration of transfer
thereof, irrespective of whether or not any notation in regard thereto is made upon any such Security. Any action taken by the Holders of the percentage in aggregate principal amount of the Securities
of any or all series, as the case may be, specified in this Indenture in
connection with such action shall be conclusively binding upon the Company, the Trustee and the Holders of all the Securities affected by such action. 

ARTICLE 12

SINKING FUNDS  

        Section 12.1    Applicability of Article.    

        The
provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required by any form of Security
of such Series issued pursuant to this Indenture. 

        The
minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a "mandatory sinking fund payment" and any other amount
provided for by the terms of Securities of such Series is herein referred to as an "optional sinking fund payment." If provided for by the terms of Securities of any Series, the cash amount of any
sinking fund payment may be subject to reduction as provided in Section 12.2. Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the
terms of the Securities of such Series. 

        Section 12.2    Satisfaction of Sinking Fund Payments with Securities.    

        The
Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities
(1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption)
and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been redeemed either at the election of the Company pursuant to the terms of
such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of
such Securities, provided that such Securities have not been previously so credited. Such Securities shall be received by the Trustee, together with an Officers' Certificate with respect thereto, not
later than 15 days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified
in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. If as a result of the delivery or credit of Securities
in lieu of cash payments pursuant to this Section 12.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than
$100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a
Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company 

43

 

Order
pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the
Company having an unpaid principal amount equal to the cash payment required to be released to the Company. 

        Section 12.3    Redemption of Securities for Sinking Fund.    

        Not
less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officers' Certificate in respect of a particular Series of Securities)
prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting of Securities of that Series pursuant to Section 12.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the
Company shall thereupon be obligated to pay the amount therein specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers' Certificate or supplemental
indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the
manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.3. Such notice
having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written. 

					
	 	 	INTREPID POTASH, INC.
	

 	
 	
By:	
 	

 
	 	 	 	 	

  
	 	 	Name:	 	 
	 	 	Title:	 	 
	

 	
 	
WELLS FARGO BANK, N.A.
	

 	
 	
By:	
 	
  

 
	 	 	Name:	 	John C. Stohlmann
	 	 	Title:	 	Vice President

44

QuickLinks

Exhibit 4.6

ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE

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