Document:

Golden Queen Mining Co. Ltd.: Exhibit 10.1 - Filed by newsfilecorp.com

	GOLDEN QUEEN MINING CO. LTD. 
	 
	2013 STOCK OPTION PLAN 
	 
	ARTICLE I 
	 
	DEFINITIONS AND INTERPRETATION

1.1                    
             
Definitions 

As used herein, unless anything in the subject matter or
context is inconsistent therewith, the following terms shall have the meanings
set forth below: 

	 	(a) 	
      “Administrator” means, initially, the secretary of the
      Company and thereafter shall mean such director or other senior officer or
      employee of the Company as may be designated as Administrator by the Board
      from time to time;

	 	 	 	 
	 	(b) 	
      “affiliate” has the meaning ascribed thereto in the
      Securities Act (British Columbia);

	 	 	 	 
	 	(c) 	
      “associate” has the meaning ascribed thereto in the
      Securities Act (British Columbia);

	 	 	 	 
	 	(d) 	
      “Award Date” means the date on which the Board grants and
      announces a particular Option;

	 	 	 	 
	 	(e) 	
      “Blackout Period” means the period during
      which an Option Holder cannot trade securities of the Company pursuant to
      the Company's policy respecting restrictions on trading which is in effect
      at that time (which, for greater certainty, does not include the period
      during which a cease trade order is in effect to which the Company or in
      respect of an insider, that insider, is subject);

	 	 	 	 
	 	(f) 	
      “Board” means the board of directors of the
    Company;

	 	 	 	 
	 	(g) 	
      “Change of Control” means the acquisition by any person
      or by any person and a joint actor, whether directly or indirectly, of
      voting securities of the Company, which, when added to all other voting
      securities of the Company at the time held by such person or by such
      person and a joint actor, totals for the first time not less than fifty
      percent (50%) of the outstanding voting securities of the Company or the
      votes attached to those securities are sufficient, if exercised, to elect
      a majority of the board of Directors of the Company;

	 	 	 	 
	 	(h) 	
      “Company” means Golden Queen Mining Co. Ltd.;

	 	 	 	 
	 	(i) 	
      “Consultant” means an individual or Consultant Company,
      other than an Employee or a Director of the Company, that:

	 	 	 	 
	 		(i) 	
      is engaged to provide services to the Company or to an
      affiliate of the Company, other than services provided in relation to a
      distribution;

	 	 	 	 
	 		(ii) 	
      provides the services under a written contract between
      the Company or the affiliate and the individual or a Consultant Company;
      and

	 	 	 	 
	 		(iii) 	
      spends or will spend a significant amount of time and
      attention on the affairs and business of the Company or an affiliate of
      the Company;

	 	 	 	 
	 	(j) 	
      “Consultant Company” means, for an individual consultant,
      a company which the individual consultant is an employee or
      shareholder;

	 	 	 	 
	 	(k) 	
      “Director” means any individual holding the office of
      director or officer of the Company or an affiliate of the
  Company;

- 2 - 

	 	(l) 	
      “Employee” means:

	 	 	 	 
	 		(i) 	
      an individual who is considered an employee of the
      Company or its subsidiary under the Income Tax Act (Canada) (i.e.
      for whom income tax, employment insurance and CPP deductions must be made
      at source);

	 	 	 	 
	 		(ii) 	
      an individual who works full-time for the Company or its
      subsidiary providing services normally provided by an employee and who is
      subject to the same control and direction by the Company over the details
      and methods of work, as an employee of the Company, but for whom income
      tax deductions are not made at source; or

	 	 	 	 
	 		(iii) 	
      an individual who works part-time for the Company or its
      subsidiary on a continuing and regular basis providing services normally
      provided by an employee and who is subject to the same control and
      direction by the Company over the details and methods of work as an
      employee of the Company, but for whom income tax deductions are not made
      at source;

	 	 	 	 
	 	(m) 	
      “Exchange” means the Toronto Stock Exchange, or if the
      Company is not listed thereon, then it shall mean such exchange or
      quotation system on which the Shares may be listed or quoted for
      trading;

	 	 	 	 
	 	(n) 	
      “Exercise Notice” means the notice respecting the
      exercise of an Option, in the form set out as Schedule “B” hereto, duly
      executed by the Option Holder;

	 	 	 	 
	 	(o) 	
      “Exercise Period” means the period during which a
      particular Option may be exercised and is the period from and including
      the Award Date through to and including the Expiry Date, subject to the
      provisions of the Plan relating to the vesting of Options;

	 	 	 	 
	 	(p) 	
      “Exercise Price” means the price at which an Option may
      be exercised as determined in accordance with paragraph 3.3;

	 	 	 	 
	 	(q) 	
      “Expiry Date” means the date determined in accordance
      with paragraphs 3.4, 3.5 and 3.8 and after which a particular Option
      cannot be exercised;

	 	 	 	 
	 	(r) 	
      “insider” has the meaning ascribed thereto in the
      Securities Act (British Columbia);

	 	 	 	 
	 	(s) 	
      “Option” means an option to acquire Shares, awarded to a
      Director, Employee or Consultant pursuant to the Plan;

	 	 	 	 
	 	(t) 	
      “Option Certificate” means the certificate, substantially
      in the form set out as Schedule “A” hereto, evidencing an
Option;

	 	 	 	 
	 	(u) 	
      “Option Holder” means a Director, Employee or Consultant,
      or a former Director, Employee or Consultant, who holds an unexercised and
      unexpired Option or, where applicable, the Personal Representative of such
      person;

	 	 	 	 
	 	(v) 	
      “Plan” means this Golden Queen Mining Co. Ltd. 2013 stock
      option plan;

	 	 	 	 
	 	(w) 	
      “Personal Representative” means:

	 	 	 	 
	 		(i) 	
      in the case of a deceased Option Holder, the executor (or
      the administrator of the deceased duly appointed by a court or public
      authority having jurisdiction to do so); and

	 	 	 	 
	 		(ii) 	
      in the case of an Option Holder who for any reason is
      unable to manage his or her affairs, the person entitled by law to act on
      behalf of such Option Holder;

	 	 	 	 
	 	(x) 	
      “Securities Act” means the Securities Act,
      R.S.B.C. 1996, c.418, as amended, as at the date hereof;
  and

- 3 - 

	 	(y) 	
      “Share” or “Shares” means, as the case may be, one or
      more common shares without par value in the capital of the
  Company.

1.2                                   
Choice of Law 

The Plan is established under and the provisions of the Plan
shall be interpreted and construed in accordance with the laws of the Province
of British Columbia. 

1.3                                   
Headings 

The headings used herein are for convenience only and are not
to affect the interpretation of the Plan. 

ARTICLE II 

PURPOSE AND PARTICIPATION 

2.1                                   
Purpose 

The purpose of the Plan is to provide the Company with a
share-related mechanism to attract, retain and motivate qualified Directors,
Employees and Consultants, to reward such of those Directors, Employees and
Consultants as may be awarded Options under the Plan by the Board from time to
time for their contributions toward the long-term goals of the Company and to
enable and encourage such Directors, Employees and Consultants to acquire Shares
as long term investments. 

2.2                                   
Participation 

The Board shall, from time to time, in its sole discretion
determine those Directors, Employees and Consultants, if any, to whom Options
are to be awarded. If the Board elects to award an Option to a Director, the
Board shall, in its sole discretion but subject to paragraph 3.2, determine the
number of Shares to be acquired on the exercise of such Option. If the Board
elects to award an Option to an Employee or Consultant, the number of Shares to
be acquired on the exercise of such Option shall be determined by the Board in
its sole discretion, and in so doing the Board may take into account the
following criteria: 

	 	(a) 	
      the remuneration paid to the Employee or Consultant as at
      the Award Date in relation to the total remuneration payable by the
      Company to all of its Employees and Consultants as at the Award
    Date;

	 	 	 
	 	(b) 	
      the length of time that the Employee or Consultant has
      been employed or engaged by the Company; and

	 	 	 
	 	(c) 	
      the quality of work performed by the Employee or
      Consultant.

2.3                                   
Notification of Award 

Following the approval by the Board of the awarding of an
Option, the Administrator shall notify the Option Holder of the award and may
provide the Option Holder with an Option Certificate representing the Option so
awarded. 

2.4                                   
Copy of Plan 

Each Option Holder, concurrently with the notice of the award
of the Option, shall be provided with a copy of the Plan, unless a copy has been
previously provided to the Option Holder. A copy of any amendment to the Plan
shall be promptly provided by the Administrator to each Option Holder. 

- 4 - 

2.5                                   
Limitation 

The Plan does not give any Option Holder that is a Director the
right to serve or continue to serve as a Director of the Company nor does it
give any Option Holder that is an Employee or Consultant the right to be or to
continue to be employed or engaged by the Company. 

ARTICLE III 

TERMS AND CONDITIONS OF OPTIONS 

3.1                                   
Board to Allot Shares 

The Shares to be issued to Option Holders upon the exercise of
Options shall be allotted and authorized for issuance by the Board prior to the
exercise thereof. 

3.2                                   
Number of Shares 

The maximum number of Shares issuable under the Plan will be
7,200,000. Additionally, if at any time the Company is subject to restrictions
on stock option grants prescribed by applicable securities laws or by an
Exchange, the Company shall not grant Options which exceed such restrictions.
Further, in no case shall: 

	 	(a) 	
      the aggregate number of Shares issued pursuant to options
      or any other award within any one-year period to insiders under the Plan
      or any previously established and outstanding security based compensation
      arrangement, exceed 10% of the issued Shares of the Company (calculated at
      the time of award); or

	 	 	 
	 	(b) 	
      the aggregate number of Shares reserved at any time for
      issuance to insiders upon the exercise of options or any other award
      awarded under the Plan or any previously established and outstanding
      security based compensation arrangement, exceed 10% of the issued Shares
      of the Company (calculated at the time of award).

If any Option is exercised or expires or otherwise terminates
for any reason, the number of Shares in respect of which the Option is exercised
or expired or terminated shall again be available for the purposes of the Plan.

3.3                                   
Exercise Price 

The Exercise Price shall be that price per share, as determined
by the Board in its sole discretion as of the Award Date, at which an Option
Holder may purchase a Share upon the exercise of an Option, and shall not be
less than: 

	 	(a) 	
      if the Company’s Shares are not listed for trading on an
      Exchange at the Award Date, the last price at which the Company’s Shares
      were issued prior to the Award Date; or

	 	 	 
	 	(b) 	
      if the Company’s Shares are listed for trading on an
      Exchange at the Award Date, the VWAP for the five trading days immediately
      prior to the Award Date.

3.4                                   
Term of Option 

Subject to paragraph 3.5, the Expiry Date of an Option shall be
the date so fixed by the Board at the time the particular Option is awarded,
provided that such date shall not be later than the fifth anniversary of the
Award Date of the Option. 

If the Expiry Date of an Option falls within a Blackout Period,
then the Expiry Date of the Option will be the date which is ten business days
after the expiry date of the Blackout Period. Notwithstanding anything else
herein contained, the ten business day period referred to in this Section may
not be extended by the Board. 

- 5 - 

3.5                                   
Termination of Option 

An Option Holder may, subject to any vesting provisions
applicable to Options hereunder, exercise an Option in whole or in part at any
time or from time to time during the Exercise Period provided that, with respect
to the exercise of part of an Option, the Board may at any time and from time to
time fix a minimum or maximum number of Shares in respect of which an Option
Holder may exercise part of any Option held by such Option Holder. Any Option or
part thereof not exercised within the Exercise Period shall terminate and become
null, void and of no effect as of 5:00 p.m. local time in Vancouver, British
Columbia, on the Expiry Date. The Expiry Date of the vested portion of an Option
shall be the earlier of the date so fixed by the Board at the time the Option is
awarded and the early termination date (the “Early Termination Date”). The Early
Termination Date will be the date the vested portion of an Option expires
following the Option Holder ceasing to be a Director, Employee or Consultant, as
determined by the Board in accordance with and subject to the provisions of
subsections (a)-(c) below. Any portion of an Option that has not vested at the
time the Option Holder ceases to be a Director, Employee or Consultant will
expire on the date such Option Holder ceases to be a Director, Employee or
Consultant, except that in the case of death, any unvested options will become
fully vested. 

	 	(a) 	
      Death

	 	 	 
	 		
      In the event that the Option Holder should die while he
      or she is still a Director (if he or she holds his or her Option as
      Director) or Employee or Consultant (if he or she holds his or her Option
      as Employee or Consultant), the Early Termination Date shall be twelve
      (12) months from the date of death of the Option Holder;
  or

	 	(b) 	
      Ceasing to hold Office

	 	 	 
	 		
      In the event that the Option Holder holds his or her
      Option as Director of the Company and such Option Holder ceases to be a
      Director of the Company other than by reason of death, the Early
      Termination Date of the Option shall be no later than that date which is
      twelve (12) months from the date the Option Holder ceases to be a Director
      of the Company unless the Option Holder ceases to be a Director of the
      Company but continues to be engaged by the Company as an Employee or
      Consultant, in which case the Expiry Date shall remain unchanged, or
      unless the Option Holder ceases to be a Director of the Company as a
      result of:

	 	(i) 	
      ceasing to meet the qualifications set forth in the
      Business Corporations Act (British Columbia); or

	 	 	 
	 	(ii) 	
      a resolution having been passed by the shareholders of
      the Company pursuant to the Business Corporations Act (British
      Columbia) removing the Director as such; or

	 	 	 
	 	(iii) 	
      by order of any securities commission or the Exchange or
      any other regulatory body having jurisdiction to so
  order,

in which case the Early Termination
Date shall be the date the Option Holder ceases to be a Director of the Company.

	 	(c) 	
      Ceasing to be Employed or a Consultant

	 	 	 
	 		
      In the event that the Option Holder holds his or her
      Option as an Employee or Consultant of the Company and such Option Holder
      ceases to be an Employee or Consultant of the Company other than by reason
      of death, the Early Termination Date of the Option shall be no later than
      that date which is twelve (12) months from the date the Option Holder
      ceases to be an Employee or Consultant of the Company unless the Option
      Holder ceases to be an Employee or Consultant of the Company as a result
      of:

	 	(i) 	
      termination for cause or, in the case of a Consultant,
      breach of contract; or

	 	 	 
	 	(ii) 	
      by order of any securities commission or the Exchange or
      any other regulatory body having jurisdiction to so
  order,

- 6 - 

 in which case the Early Termination Date shall be the date the
Option Holder ceases to be an Employee or Consultant of the Company. 

3.6                                   
Vesting 

All Options granted pursuant to the Plan will be subject to
such vesting requirements as may be prescribed by the Exchange, if applicable,
or as may be imposed by the Board. 

3.7                                   
Effect of a Take-Over Bid 

If a bona fide offer (an “Offer”) for Shares is made to
an Option Holder or to shareholders of the Company generally or to a class of
shareholders which includes the Option Holder, which Offer, if accepted in whole
or in part, would result in the offeror becoming a control person of the
Company, within the meaning of the Securities Act, the Company shall,
immediately upon receipt of notice of the Offer, notify each Option Holder of
full particulars of the Offer, whereupon all Shares subject to Options will
become vested and the Options may be exercised in whole or in part by each
Option Holder so as to permit each Option Holder to tender the Shares received
upon exercise of his Options, pursuant to the Offer. However, if: 

	 	(a) 	
      the Offer is not completed within the time specified
      therein; or

	 	 	 
	 	(b) 	
      all of the Shares acquired by the Option Holder on the
      exercise of his Option and tendered pursuant to the Offer are not taken up
      or paid for by the offeror in respect thereof,

then the Shares received upon the exercise of such Options, or
in the case of clause (b) above, the Shares that are not taken up and paid for,
may be returned by each Option Holder to the Company and reinstated as
authorized but unissued Shares and with respect to such returned Shares, the
Options shall be reinstated as if they had not been exercised and the terms upon
which such Shares were to become vested pursuant to paragraph 3.6 shall be
reinstated. If any Shares are returned to Company under this paragraph 3.7, the
Company shall immediately refund the exercise price to the Option Holder for
such Shares.

3.8                                   
Acceleration of Expiry Date 

If at any time when an Option granted under the Plan remains
unexercised and an Offer is made by an offeror, the Directors may, upon
notifying each Option Holder of full particulars of the Offer, declare all
Shares issuable upon the exercise of Options granted under the Plan, vested,
and, notwithstanding paragraphs 3.4 and 3.5, may declare that the Expiry Date
for the exercise of all unexercised Options granted under the Plan is
accelerated so that all Options will either be exercised or will expire prior to
the date upon which Shares must be tendered pursuant to the Offer. 

3.9                                   
Effect of a Change of Control 

If a Change of Control occurs, all Shares subject to each
outstanding Option will become vested, whereupon all Options may be exercised in
whole or in part by the Option Holders. 

3.10                                   
Assignment of Options 

Options may not be assigned or transferred, provided however
that the Personal Representative of an Option Holder may, to the extent
permitted by paragraph 4.1, exercise the Option within the Exercise Period. 

- 7 - 

3.11                                   
Adjustments 

If prior to the complete exercise of any Option the Shares are
consolidated, subdivided, converted, exchanged or reclassified or in any way
substituted for (collectively the “Event”), an Option, to the extent that it has
not been exercised, shall be adjusted by the Board in accordance with such Event
in the manner the Board deems appropriate. No fractional Shares shall be issued
upon the exercise of any Option and accordingly, if as a result of the Event, an
Option Holder would become entitled to a fractional Share, such Option Holder
shall have the right to purchase only the next lowest whole number of Shares and
no payment or other adjustment will be made with respect to the fractional
interest so disregarded. Additionally, no lots of Shares in an amount less than
500 Shares shall be issued upon the exercise of the Option unless such amount of
Shares represents the balance left to be exercised under the Option. 

ARTICLE IV 

EXERCISE OF OPTION 

4.1                                   
Exercise of Option 

An Option may be exercised only by the Option Holder or the
Personal Representative of any Option Holder. An Option Holder or the Personal
Representative of any Option Holder may exercise an Option in whole or in part
at any time or from time to time during the Exercise Period up to 5:00 p.m.
local time in Vancouver, British Columbia on the Expiry Date by delivering to
the Administrator an Exercise Notice, the applicable Option Certificate and a
certified cheque or bank draft payable to Golden Queen Mining Co. Ltd. in an
amount equal to the aggregate Exercise Price of the Shares to be purchased
pursuant to the exercise of the Option. 

4.2                                   
Issue of Share Certificates 

As soon as practicable following the receipt of the Exercise
Notice, the Administrator shall cause to be delivered to the Option Holder a
certificate for the Shares purchased pursuant to the exercise of the Option. If
the number of Shares purchased is less than the number of Shares subject to the
Option Certificate surrendered, the Administrator shall forward a new Option
Certificate to the Option Holder concurrently with delivery of the aforesaid
share certificate for the balance of Shares available under the Option. 

4.3                                   
Condition of Issue 

The issue of Shares by the Company pursuant to the exercise of
an Option is subject to this Plan and compliance with the laws, rules and
regulations of all regulatory bodies applicable to the issuance and distribution
of such Shares and to the listing requirements of any stock exchange or
exchanges on which the Shares may be listed. The Option Holder agrees to comply
with all such laws, rules and regulations and agrees to furnish to the Company
any information, report and/or undertakings required to comply with and to fully
co-operate with the Company in complying with such laws, rules and regulations.

ARTICLE V 

STOCK APPRECIATION RIGHTS 

5.1                                   
Stock Appreciation Rights 

Any Option granted under this Plan may include a stock
appreciation right, either at the time of grant or by adding it to an existing
Option; subject, however, to the grant of such stock appreciation right being in
compliance with the applicable regulations and policies of the Exchange. 

- 8 - 

5.2                                   
Stock Appreciation Rights Tied to Options 

A stock appreciation right which may be granted pursuant to
this Plan shall be exercisable to the extent, and only to the extent, the Option
with which it is included is exercisable. To the extent that a stock
appreciation right included in or attached to an Option granted hereunder is
exercised, the Option to which it is included or attached shall be deemed to
have been exercised to a similar extent. 

5.3                                   
Terms of Stock Appreciation Rights 

A stock appreciation right granted pursuant to this Plan shall
entitle the Option Holder to elect to surrender to the Company, unexercised, the
Option with which it is included, or any portion thereof, and to receive from
the Company in exchange therefore that number of Shares, disregarding fractions,
having an aggregate value equal to the excess of the value of one Share over the
purchase price per Share specified in such Option, times the number of Shares
called for by the Option, or portion thereof, which is so surrendered. The value
of a Share shall be determined for these purposes, unless otherwise specified or
permitted by applicable regulatory policies, based on the weighted average
trading price per Share on the Exchange for the five trading days immediately
preceding the date the notice provided for in section 5.1 hereof is received by
the Company. 

5.4                                   
Exercise of Stock Appreciation Rights 

Subject to the provisions of the Plan, a stock appreciation
right granted hereunder may be exercised from time to time by delivering to the
Company the Exercise Notice. 

ARTICLE VI 

BONUSES 

6.1                                   
Grant of Bonus 

The Board shall have the right to determine and to grant
Options to any Director or Employee, together with a corresponding right to be
paid, in cash, an amount equal to the exercise price of such Options, subject to
such provisos and restrictions as the Board may determine, and subject to any
applicable Exchange or other approvals, if required. 

6.2                                   
Number of Shares 

The Options granted as part of the bonus provided in section
6.1 shall be included in, and are not in addition to, the maximum number of
Options which may be granted under this Plan from time to time.

ARTICLE VII 

ADMINISTRATION 

7.1                                   
Administration 

The Plan shall be administered by the Administrator on the
instructions of the Board. The Board may make, amend and repeal at any time and
from time to time such regulations not inconsistent with the Plan as it may deem
necessary or advisable for the proper administration and operation of the Plan
and such regulations shall form part of the Plan. The Board may delegate to the
Administrator or any Director, officer or employee of the Company such
administrative duties and powers as it may see fit. 

- 9 - 

7.2                                   
Interpretation 

The interpretation by the Board of any of the provisions of the
Plan and any determination by it pursuant thereto shall be final and conclusive
and shall not be subject to any dispute by any Option Holder. No member of the
Board or any person acting pursuant to authority delegated by it hereunder shall
be liable for any action or determination in connection with the Plan made or
taken in good faith and each member of the Board and each such person shall be
entitled to indemnification with respect to any such action or determination in
the manner provided for by the Company. 

ARTICLE VIII 

AMENDMENT AND TERMINATION 

8.1                                   
Amendment of the Plan 

The Board may from time to time, in its absolute discretion and
without shareholder approval, amend the Plan and with the consent of the Option
Holder, the terms of any Option granted and outstanding pursuant to the Plan, in
any manner whatsoever, including but not limited to the following types of
amendments:

	 	(a) 	
      an amendment to the purchase price of any Option, unless
      the amendment is a reduction in the purchase price of an Option held by an
      Insider;

	 	 	 
	 	(b) 	
      an amendment to the date upon which an Option may expire,
      unless the amendment extends the expiry of an Option held by an
      Insider;

	 	 	 
	 	(c) 	
      an amendment to the vesting provisions of the Plan and
      any Option granted under the Plan;

	 	 	 
	 	(d) 	
      an addition to, deletion from or alteration of the Plan
      or an Option that is necessary to comply with applicable law or the
      requirements of any regulatory authority or the Toronto Stock
    Exchange;

	 	 	 
	 	(e) 	
      any amendment of a “housekeeping” nature, including,
      without limitation, amending the wording of any provision of the Plan for
      the purpose of clarifying the meaning of existing provisions or to correct
      or supplement any provision of the Plan that is inconsistent with any
      other provision of the Plan, correcting grammatical or typographical
      errors and amending the definitions contained within the Plan respecting
      the administration of the Plan;

	 	 	 
	 	(f) 	
      any amendment respecting the administration of the
      Plan;

	 	 	 
	 	(g) 	
      any other amendment that does not require shareholder
      approval under this Article VIII.

8.2                                   
Shareholder Approval Required 

Shareholder approval will be required for the following
amendments to the Plan: 

	 	(a) 	
      amending the limitations on the maximum number of common
      shares reserved or issued to insiders;

	 	 	 
	 	(b) 	
      increasing the maximum number of common shares issuable
      pursuant to the Plan;

	 	 	 
	 	(c) 	
      amending the amendment provisions of the Plan;

	 	 	 
	 	(d) 	
      any amendment which would materially modify the
      requirements as to eligibility for participation in the Plan;

	 	 	 
	 	(e) 	
      any reduction in the purchase price of an Option held by
      an Insider;

	 	 	 
	 	(f) 	
      any extension of the expiry date of an Option held by an
      Insider;

- 10 - 

	 	(g) 	
      any amendment which would permit options granted under
      the Plan to be transferable or assignable other than for normal estate
      settlement purposes.

8.3                                   
Termination 

The Board may terminate the Plan at any time provided that such
termination shall not alter the terms or conditions of any Option or impair any
right of any Option Holder pursuant to any Option awarded prior to the date of
such termination. Notwithstanding the termination of the Plan, the Company,
Options awarded under the Plan, Option Holders and Shares issuable under Options
awarded under the Plan shall continue to be governed by the provisions of the
Plan. 

8.4                                   
Agreement 

The Company and every person to whom an Option is awarded
hereunder shall be bound by and subject to the terms and conditions of the Plan.
This Plan repeals and replaces any stock option plan adopted by the Company
prior to the date hereof and any options awarded and outstanding under such
prior plan shall hereafter be governed by the provisions of this Plan. 

ARTICLE IX 

APPROVALS REQUIRED FOR PLAN 

9.1                                   
Effectiveness of Plan 

The Plan is effective upon the shareholders of the Company
approving the Plan. 

9.2                                   
Substantive Amendments to Plan 

Any substantive amendments to the Plan shall be subject to the
Company first obtaining the approvals, if required, of: 

	 	(a) 	
      the shareholders or disinterested shareholders, as the
      case may be, of the Company at a general meeting where required by the
      rules and policies of the Exchange, or any stock exchange on which the
      Shares may then be listed for trading; and

	 	 	 
	 	(b) 	
      the Exchange, or any stock exchange on which the Shares
      may then be listed for trading.

ARTICLE X 

UNITED STATES REQUIREMENTS 

10.1                                   
Compliance with U.S. Securities Laws

No Option will be granted and issued unless the grant and
issuance of such Option shall comply with all relevant provisions of applicable
United States federal and state securities laws, including the availability of
an exemption from registration for the issuance and sale of such Shares. The
Company has no obligation to undertake registration under any United States
federal or state laws of Options or the Shares issuable upon the exercise of
Options. 

As a condition to the exercise of an Option, the Board or
Administrator may require the Optionee to make representations and warranties in
writing at the time of such exercise in order to establish, to the satisfaction
of the Company and its legal counsel, that the Shares to be issued on such
exercise may legally be issued in compliance with all applicable United States
federal and state securities laws. If required by applicable United States
federal and state securities laws, a stop-transfer order against such Shares
shall be placed on the share ledger books and records of the Company, and a
legend indicating that the Shares may not be pledged, sold or otherwise
transferred unless an opinion of counsel is provided stating that such transfer
is not in violation of any applicable law or regulation, shall be stamped on the
certificates representing such shares. The Board or Administrator also may
require such other documentation as they, in their sole discretion, may from
time to time determine to be necessary to comply with United States federal and
state securities laws.

- 11 - 

The Option Certificate in respect of the grant of any Options
to persons who are U.S. Persons, as that term is defined in Rule 902 of
Regulation S, will include the following statement: 

This Option has not been registered
under any U.S. federal or state law and may not be exercised except pursuant to
an effective registration statement under the United States Securities Act of
1933, as amended, and all applicable U.S. state securities laws, or pursuant to
available exemptions from such registration requirements. In addition, shares
issued on exercise of this Option by a U.S. resident will bear a U.S. form of
restrictive legend and may not be resold except in compliance with such legend.

10.2.                                   
Non-Qualified Plan 

No Option granted under the Plan will constitute an Incentive
Stock Option as described in Section 422 of the Internal Revenue Code of 1986,
as amended. 

	ON BEHALF OF THE BOARD 	 
	  	 
	  	 
	/s/ Lutz Klingmann
    	 
	Lutz Klingmann, President 	 

SCHEDULE “A” 

GOLDEN QUEEN MINING CO. LTD.

STOCK OPTION PLAN 

OPTION CERTIFICATE 

This Certificate is issued pursuant to the provisions of Golden
Queen Mining Co. Ltd. (the “Company”) Stock Option Plan (the “Plan”) and
evidences that (the “Holder”) is the holder of an option (the “Option”) to
purchase up to common shares (the “Shares”) in the capital stock of the Company
at a purchase price of $ per Share. Subject to the provisions of the Plan: 

	 	(a) 	the Award Date of this Option is
      ___________________________; and 
	 	 	 
	 	(b) 	the Expiry Date of this Option is
      ___________________________. 

The right to purchase Shares under the Option will vest in the
Holder in increments over the term of the Option as follows: 

	Date 	Cumulative Number of Shares which may be Purchased
  
	 	 
	 	 
	 	 

	This Option may be exercised in accordance with its terms
      at any time and from time to time from and including the Award Date
      through to and including up to 5:00 local time in Vancouver, British
      Columbia on the Expiry Date, by delivery to the Administrator of the Plan
      an Exercise Notice, in the form provided in the Plan, together with this
      Certificate and a certified cheque or bank draft payable to “Golden Queen
      Mining Co. Ltd.” in an amount equal to the aggregate of the Exercise Price
      of the Shares in respect of which the Option is being exercised. If the
      Optionee is an employee or consultant, the Optionee confirms that it is a
      bona fide employee or consultant, as the case may be. 
	 
	The foregoing Option has been awarded this ____ day of
      ___________________________. 

	GOLDEN QUEEN MINING CO. LTD. 	 
	 	 
	Per: __________________________________	 

SCHEDULE “B”

EXERCISE NOTICE 

	TO: 	The Administrator, Stock Option
      Plan 
	  	c/o Golden Queen Mining Co. Ltd.
    
	  	6411 Imperial Avenue 
	  	West Vancouver, BC V7W 2J5
  

	1. 	
      EXERCISE OF OPTION

The undersigned hereby irrevocably gives notice, pursuant to
the Golden Queen Mining Co. Ltd. (the “Company”) Stock Option Plan (the “Plan”),
of the exercise of the Option to acquire and hereby subscribes for (cross out
inapplicable item): 

	(a) 	
      all of the Shares; or 

	 	
	(b) 	
      ___________ of the Shares, which are the subject of the
      option certificate attached hereto. 

Calculation of total Exercise Price: 

	(i) 	number of Shares to be acquired on exercise:
	____________  shares 
	 	 	 
	(ii) 	times the Exercise Price per Share: 	$____________ 
	 	 	 
	  	Total Exercise Price, as enclosed herewith: 	$____________ 

The undersigned tenders herewith a cheque or bank draft (circle
one) in the amount of $ , payable to Golden Queen Mining Co. Ltd. in an amount
equal to the total Exercise Price of the Shares, as calculated above. 

	2. 	
      EXERCISE OF STOCK APPRECIATION RIGHT
      (Complete only if exercising stock appreciation
      rights]

The undersigned hereby irrevocably gives notice, pursuant to
the Plan, of the exercise of the stock appreciation right provided under the
Plan and accordingly, wishes to receive such number of Shares as calculated in
accordance with the Plan. As consideration for the Shares, the undersigned
hereby agrees to cancel [cross out inapplicable item]: 

	(a) 	all of the Rights; or 
	(b) 	_____________________________ of the Rights.
  

	2. 	
      DELIVERY OF SHARE
CERTIFICATE

The Company is directed to deliver the share certificate
evidencing the number of Shares to be issued to the undersigned pursuant to this
Exercise Notice, to the undersigned at the following address: 

__________________________________________________________ 

__________________________________________________________

All the capitalized terms, unless otherwise defined in this
Exercise Notice, will have the meaning provided in the Plan. 

	DATED ___the day of
      _____________________________. 
	 
	_____________________________________  	_____________________________________  
	Witness 	Signature of Option Holder 
	_____________________________________  	_____________________________________   
	Name of Witness (Print) 	Name of Option Holder (Print)Exhibit 4.4 2013 Equity Incentive Plan

EXHIBIT 4.4

 

ML CAPITAL GROUP, INC.

2013 EQUITY INCENTIVE PLAN

1.           Purpose.

The purpose of this plan (the "Plan") is to secure for ML Capital Group, Inc. (the "Corporation") and its stockholders the benefits arising from capital stock ownership by employees, officers and directors of, and consultants or advisors to, the Corporation and its subsidiary corporations who are expected to contribute to the Corporation's future growth and success.  The Plan permits grants of options to purchase shares of Common Stock, $0.0001 par value per share, of the Corporation (“Common Stock”) and awards of shares of Common Stock that are restricted as provided in Section 12 (“Restricted Shares”).  Those provisions of the Plan which make express reference to Section 422 of the Internal Revenue Code of 1986, as amended or replaced from time to time (the "Code"), shall apply only to Incentive Stock Options (as that term is defined in the Plan).

 

2.           Type of Options and Administration.

(a)           Types of Options.  Options granted pursuant to the Plan shall be authorized by action of the Board of Directors of the Corporation (or a Committee designated by the Board of Directors) and may be either incentive stock options ("Incentive Stock Options") meeting the requirements of Section 422 of the Code or non-statutory options which are not intended to meet the requirements of Section 422 of the Code.

(b)           Administration.  The Plan will be administered by the Board of Directors of the Corporation, whose construction and interpretation of the terms and provisions of the Plan shall be final and conclusive.  The Board of Directors may in its sole discretion grant Restricted Shares and options to purchase shares of Common Stock and issue shares upon exercise of such options as provided in the Plan.  The Board shall have authority, subject to the express provisions of the Plan, to construe the respective option and Restricted Share agreements and the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions of the respective option and Restricted Share agreements, which need not be identical, and to make all other determinations in the judgment of the Board of Directors necessary or desirable for the administration of the Plan.  The Board of Directors may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any option or Restricted Share agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency.  No director or person acting pursuant to authority delegated by the Board of Directors shall be liable for any action or determination under the Plan made in good faith.  The Board of Directors may, to the full extent permitted by or consistent with applicable laws or regulations (including, without limitation, applicable state law and Rule 16b-3 promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), or any successor rule ("Rule 16b-3")), delegate any or all of its powers under the Plan to a committee (the "Committee") appointed by the Board of Directors, and if the Committee is so appointed all references to the Board of Directors in the Plan shall mean and relate to such Committee with respect to the powers so delegated.  Any director to whom an option or stock grant is awarded shall be ineligible to vote upon his or her option or stock grant, but such option or stock grant may be awarded any such director by a vote of the remainder of the directors, except as limited below.

(c)           Applicability of Rule 16b-3.  Those provisions of the Plan which make express reference to Rule 16b-3 shall apply to the Corporation only at such time as the Corporation's Common Stock is registered under the Exchange Act, and then only to such persons as are required to file reports under Section 16(a) of the Exchange Act (a "Reporting Person").

(d)           Compliance with Section 162(m) of the Code.  Section 162(m) of the Code, added by the Omnibus Budget Reconciliation Act of 1993, generally limits the tax deductibility to publicly held companies of compensation in excess of $1,000,000 paid to certain “covered employees” (“Covered Employees”).  It is the Corporation’s intention to preserve the deductibility of such compensation to the extent it is reasonably practicable and to the extent it is consistent with the Corporation’s compensation objectives.  For purposes of this Plan, Covered Employees of the Corporation shall be those employees of the Corporation described in Section 162(m)(3) of the Code.

(e)           Special Provisions Applicable to Options Granted to Covered Employees.  In order for the full value of options granted to Covered Employees to be deductible by the Corporation for federal income tax purposes, the Corporation may intend for such options to be treated as “qualified performance based compensation” as described in Treas. Reg. §1.162-27(e) (or any successor regulation).  In such case, options granted to Covered Employees shall be subject to the following additional requirements:

(i)           such options and rights shall be granted only by a committee comprised solely of two or more “outside directors”, within the meaning of Treas. Reg. § 1.162.27(e)(3); and

(ii)           the exercise price of such options shall in no event be less than the Fair Market Value (as defined below) of the Common Stock as of the date of grant of such options.

(f)           Section 409A of the Code.  The Board of Directors may only grant those awards that either comply with the applicable requirements of Section 409A of the Code, or do not result in the deferral of compensation within the meaning of Section 409A of the Code.

  

3.           Eligibility.

(a)     General.  Options and Restricted Shares may be granted to persons who are, at the time of grant, in a Business Relationship (as defined below) with the Corporation; provided, that Incentive Stock Options may only be granted to individuals who are employees of the Corporation (within the meaning of Section 3401(c) of the Code).  A person who has been granted an option or Restricted Shares may, if he or she is otherwise eligible, be granted additional options or Restricted Shares if the Board of Directors shall so determine.  For purposes of the Plan, “Business Relationship” means that a person is serving the Corporation, its parent, if applicable, or any of its subsidiaries, if applicable, in the capacity of an employee, officer, director, advisor or consultant.

(b)           Grant of Options to Reporting Persons.  From and after the registration of the Common Stock of the Corporation under the Exchange Act, the selection of a director or an officer who is a Reporting Person (as the terms "director" and "officer" are defined for purposes of Rule 16b-3) as a recipient of an option or Restricted Shares, the timing of the option or Restricted Share grant, the exercise price of the option and the number of Restricted Shares or shares subject to the option shall be determined either (i) by the Board of Directors, or (ii) by a committee consisting of two or more "Non-Employee Directors" having full authority to act in the matter.  For the purposes of the Plan, a director shall be deemed to be a "Non-Employee Director" only if such person qualifies as a "Non-Employee Director" within the meaning of Rule 16b-3, as such term is interpreted from time to time.

4.           Stock Subject to Plan.

The stock subject to options granted under the Plan or grants of Restricted Shares shall be shares of authorized but unissued or reacquired Common Stock.  Subject to adjustment as provided in Section 16 below, the maximum number of shares of Common Stock of the Corporation (“Shares”) which may be issued and sold under the Plan is 10,000,000 Shares, plus an annual increase on the first day of each of the Company’s fiscal years beginning in fiscal 2014 equal to the lesser of (a) 2% of the Shares outstanding on the last day of the immediately preceding fiscal year, (b) 500,000 Shares, or (c) such lesser number of Shares as the Board shall determine; provided, however, in no event shall the maximum number of Shares that may be issued under this Plan pursuant to Stock Awards shall not exceed 15% of the aggregate Shares outstanding on the last day of the immediately preceding fiscal year.  If any Restricted Shares shall be reacquired by the Corporation, forfeited or an option granted under the Plan shall expire, terminate or is canceled for any reason without having been exercised in full, the forfeited Restricted Shares or un-purchased Shares subject to such option shall again be available for subsequent option or Restricted Share grants under the Plan.

These limits shall be applied and construed consistently with Section 162(m) of the Code.

 

5.           Forms of Option and Restricted Share Agreements.

As a condition to the grant of Restricted Shares or an option under the Plan, each recipient of Restricted Shares or an option shall execute an option or Restricted Share agreement in such form not inconsistent with the Plan as may be approved by the Board of Directors.  Such option or Restricted Share agreements may differ among recipients.

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6.           Purchase Price.

(a)           General.  The purchase price per Share deliverable upon the exercise of an option shall be determined by the Board of Directors at the time of grant of such option; provided, however, that the exercise price of an option shall not be less than 100% of the Fair Market Value (as hereinafter defined) of a Share, at the time of grant of such option, or less than 110% of such Fair Market Value in the case of an Incentive Stock Option described in Section 11(b).  "Fair Market Value" of a Share as of a specified date for the purposes of the Plan shall mean the closing price of a Share on the principal securities exchange on which such Shares are traded on the day immediately preceding the date as of which Fair Market Value is being determined, or on the next preceding date on which such Shares are traded if no shares were traded on such immediately preceding day, or if the Shares are not traded on a securities exchange, Fair Market Value shall be deemed to be the average of the high bid and low asked prices of the Shares in the over-the-counter market on the day immediately preceding the date as of which Fair Market Value is being determined or on the next preceding date on which such high bid and low asked prices were recorded.  In no case shall Fair Market Value be determined with regard to restrictions other than restrictions which, by their terms, will never lapse.  The Board of Directors may also permit optionees, either on a selective or aggregate basis, to simultaneously exercise options and sell the Shares thereby acquired, pursuant to a brokerage or similar arrangement, approved in advance by the Board of Directors, and to use the proceeds from such sale as payment of the purchase price of such shares.

(b)           Payment of Purchase Price.  Options granted under the Plan may provide for the payment of the exercise price by delivery of cash or a check to the order of the Corporation in an amount equal to the exercise price of such options, or, to the extent provided in the applicable option agreement, (i) by delivery to the Corporation of Shares having a Fair Market Value on the date of exercise equal in amount to the exercise price of the options being exercised, (ii) through any cashless exercise feature that may be included in the option agreement covering a particular option grant, (iii) by any other means  which the Board of Directors determines are consistent with the purpose of the Plan and with applicable laws and regulations (including, without limitation, the provisions of Rule 16b-3 and Regulation T promulgated by the Federal Reserve Board) or (iv) by any combination of such methods of payment.

  

7.           Option Period.

Subject to earlier termination as provided in the Plan, each option and all rights thereunder shall expire on such date as determined by the Board of Directors and set forth in the applicable option agreement, provided, that such date shall not be later than (10) ten years after the date on which the option is granted.

8.           Exercise of Options.

Each option granted under the Plan shall be exercisable either in full or in installments at such time or times and during such period as shall be set forth in the option agreement evidencing such option, subject to the provisions of the Plan.  No option granted to a Reporting Person for purposes of the Exchange Act, however, shall be exercisable during the first six months after the date of grant.  Subject to the requirements in the immediately preceding sentence, if an option is not at the time of grant immediately exercisable, the Board of Directors may (i) in the agreement evidencing such option, provide for the acceleration of the exercise date or dates of the subject option upon the occurrence of specified events, and/or (ii) at any time prior to the complete termination of an option, accelerate the exercise date or dates of such option, unless it would cause an option that otherwise qualified as an Incentive Stock Option to lose Incentive Stock Option treatment by application of Section 422(d)(1) of the Code and Section 11(c) of the Plan.

9.           Non-transferability of Options.

No option granted under this Plan shall be assignable or otherwise transferable by the optionee except by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or the rules thereunder.  An option may be exercised during the lifetime of the optionee only by the optionee.  In the event an optionee dies during his employment by the Corporation or any of its subsidiaries, or during the three-month period following the date of termination of such employment, his option shall thereafter be exercisable, during the period specified to the full extent to which such option was exercisable by the optionee at the time of his death during the periods set forth in Section 10 or 11(d).  If any optionee should attempt to dispose of or encumber his or her options, other than in accordance with the applicable terms of this Plan or the applicable option agreement, his or her interest in such options shall terminate.

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10.           Effect of Termination of Employment or Other Relationship.

Except as provided in Section 11(d) with respect to Incentive Stock Options, and subject to the provisions of the Plan and the applicable option agreement, an optionee may exercise an option (but only to the extent such option was exercisable at the time of termination of the optionee’s employment or other relationship with the Corporation) at any time within three (3) months following the termination of the optionee's employment or other relationship with the Corporation or within one (1) year if such termination was due to the death or disability of the optionee, but, except in the case of the optionee's death, in no event later than the expiration date of the Option.  If the termination of the optionee's employment is for cause or is otherwise attributable to a breach by the optionee of an employment or confidentiality or non-disclosure agreement, the option shall expire immediately upon such termination.  The Board of Directors shall have the power to determine what constitutes a termination for cause or a breach of an employment or confidentiality or non-disclosure agreement, whether an optionee has been terminated for cause or has breached such an agreement, and the date upon which such termination for cause or breach occurs.  Any such determinations shall be final and conclusive and binding upon the optionee.

  

11.           Incentive Stock Options.

Options granted under the Plan which are intended to be Incentive Stock Options shall be subject to the following additional terms and conditions:

(a)           Express Designation.  All Incentive Stock Options granted under the Plan shall, at the time of grant, be specifically designated as such in the option agreement covering such Incentive Stock Options.

(b)           10% Stockholder.  If any employee to whom an Incentive Stock Option is to be granted under the Plan is, at the time of the grant of such option, the owner of stock possessing more than 10% of the total combined voting power of all classes of stock of the Corporation (after taking into account the attribution of stock ownership rules of Section 424(d) of the Code), then the following special provisions shall be applicable to the Incentive Stock Option granted to such individual:

		
	(i)

	The purchase price per share of the Common Stock subject to such Incentive Stock Option shall not be less than 110% of the Fair Market Value of one share of Common Stock at the time of grant; and

		
	(ii)

	the option exercise period shall not exceed five years from the date of grant.

(c)           Dollar Limitation.  For so long as the Code shall so provide, options granted to any employee under the Plan (and any other incentive stock option plans of the Corporation) which are intended to constitute Incentive Stock Options shall not constitute Incentive Stock Options to the extent that such options, in the aggregate, become exercisable for the first time in any one calendar year for shares of Common Stock with an aggregate Fair Market Value, as of the respective date or dates of grant, of more than $100,000 (or such other limitations as the Code may provide).

(d)           Termination of Employment, Death or Disability.  No Incentive Stock Option may be exercised unless, at the time of such exercise, the optionee is, and has been continuously since the date of grant of his or her option, employed by the Corporation, except that, unless otherwise specified in the applicable option agreement:

		
	(i)

	an Incentive Stock Option may be exercised within the period of three months after the date the optionee ceases to be an employee of the Corporation (or within such lesser period as may be specified in the applicable option agreement), provided, that the agreement with respect to such option may designate a longer exercise period and that the exercise after such three-month period shall be treated as the exercise of a non-statutory option under the Plan;

		
	(ii)

	if the optionee dies while in the employ of the Corporation, or within three months after the optionee ceases to be such an employee, the Incentive Stock Option may be exercised by the person to whom it is transferred by will or the laws of descent and distribution within the period of one year after the date of death (or within such lesser period as may be specified in the applicable option agreement); and

		
	(iii)

	 if the optionee becomes disabled (within the meaning of Section 22(e)(3) of the Code or any successor provisions thereto) while in the employ of the Corporation, the Incentive Stock Option may be exercised within the period of one year after the date the optionee ceases to be such an employee because of such disability (or within such lesser period as may be specified in the applicable option agreement).

4

For all purposes of the Plan and any option granted hereunder, "employment" shall be defined in accordance with the provisions of Section 1.421-1(h) of the Income Tax Regulations (or any successor regulations).  Notwithstanding the foregoing provisions no Incentive Stock Option may be exercised after its expiration date.

  

12.           Restricted Shares.

(a)  Awards.  The Board of Directors may from time to time in its discretion award Restricted Shares to persons having a Business Relationship with the Corporation and may determine the number of Restricted Shares awarded and the terms and conditions of, and the amount of payment, if any, to be made by such persons.  Each award of Restricted Shares will be evidenced by a written agreement executed on behalf of the Corporation and containing terms and conditions not inconsistent with the Plan as the Board of Directors shall determine to be appropriate in its sole discretion.

(b)           Restricted Period; Lapse of Restrictions.  At the time an award of Restricted Shares is made, the Board of Directors shall establish a period of time (the “Restricted Period”) applicable to such award which shall not be more than ten years.  Each award of Restricted Shares may have a different Restricted Period.  In lieu of establishing a Restricted Period, the Board of Directors may establish restrictions based only on the achievement of specified performance measures or a time release schedule.  At the time an award is made, the Board of Directors may, in its discretion, prescribe conditions for the incremental lapse of restrictions during the Restricted Period and for the lapse or termination of restrictions upon the occurrence of other conditions in addition to or other than the expiration of the Restricted Period with respect to all or any portion of the Restricted Shares.  Such conditions may include, without limitation, the death or disability of the participant to whom Restricted Shares are awarded, retirement of the participant pursuant to normal or early retirement under any retirement plan of the Corporation or termination by the Corporation of the participant’s employment other than for cause, or the occurrence of a change in control of the Corporation.  Such conditions may also include performance measures, which, in the case of any such award of Restricted Shares to a participant who is a “covered employee” within the meaning of Section 162(m) of the Code, shall be based on one or more of the following criteria:  earnings per share, market value per share, return on invested capital, return on operating assets and return on equity.  The Board of Directors may also, in its discretion, shorten or terminate the Restricted Period or waive any conditions for the lapse or termination of restrictions with respect to all or any portion of the Restricted Shares at any time after the date the award is made.

(c)           Rights of Holder; Limitations Thereon.  Upon an award of Restricted Shares, a stock certificate representing the number of Restricted Shares awarded to the participant shall be registered in the participant’s name and, at the discretion of the Board of Directors, will be either delivered to the participant with an appropriate legend or held in custody by the Corporation or a bank for the participant’s account.  The participant shall generally have the rights and privileges of a stockholder as to such Restricted Shares, including the right to vote such Restricted Shares, except that the following restrictions shall apply: (i) with respect to each Restricted Share, the participant shall not be entitled to delivery of an un-legended certificate until the expiration nor termination of the Restricted Period, and the satisfaction of any other conditions prescribed by the Board of Directors, relating to such Restricted Share; (ii) with respect to each Restricted Share, such share may not be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of until the expiration of the Restricted Period, and the satisfaction of any other conditions prescribed by the Board of Directors, relating to such Restricted Share (except, subject to the provisions of the participant’s stock restriction agreement, by will or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of ERISA or the rules promulgated thereunder) and (iii) all of the Restricted Shares as to which restrictions have not at the time lapsed shall be forfeited and all rights of the participant to such Restricted Shares shall terminate without further obligation on the part of the Corporation unless the participant has remained in a Business Relationship with the Corporation or any of its subsidiaries until the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Board of Directors applicable to such Restricted Shares.  Upon the forfeiture of any Restricted Shares, such forfeited shares shall be transferred to the Corporation without further action by the participant.  At the discretion of the Board of Directors, cash and stock dividends with respect to the Restricted Shares may be either currently paid or withheld by the Corporation for the participant’s account, and interest may be paid on the amount of cash dividends withheld at a rate and subject to such terms as determined by the Board of Directors.  The participant shall have the same rights and privileges, and be subject to the same restrictions, with respect to any shares received pursuant to Section 16 hereof.

(d)           Delivery of Unrestricted Shares.  Upon the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Board of Directors, the restrictions applicable to the Restricted Shares shall lapse and a stock certificate for the number of Restricted Shares with respect to which the restrictions have lapsed shall be delivered, free of all such restrictions, except any that may be imposed by law including without limitation securities laws, to the participant or the participant’s beneficiary or estate, as the case may be.  The Corporation shall not be required to deliver any fractional share of Common Stock but will pay, in lieu thereof, the fair market value (determined as of the date the restrictions lapse) of such fractional share to the participant or the participant’s beneficiary or estate, as the case may be.

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13.           Additional Provisions.

(a)           Additional Provisions.  The Board of Directors may, in its sole discretion, include additional provisions in option or Restricted Stock agreements covering options or Restricted Stock granted under the Plan, including without limitation, restrictions on transfer, repurchase rights, rights of first refusal, commitments to pay cash bonuses, to make, arrange for or guaranty loans or to transfer other property to optionees upon exercise of options, or such other provisions as shall be determined by the Board of Directors; provided, that such additional provisions shall not be inconsistent with any other term or condition of the Plan and such additional provisions shall not cause any Incentive Stock Option granted under the Plan to fail to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code or result in the imposition of an additional tax under Section 409A of the Code.

(b)           Acceleration, Extension, Etc.  The Board of Directors may, in its sole discretion, (i) accelerate the date or dates on which all or any particular option or options granted under the Plan may be exercised or (ii) extend the dates during which all, or any particular, option or options granted under the Plan may be exercised if it would not cause any Incentive Stock Option granted under the Plan to fail to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code or result in the imposition of an additional tax under Section 409A of the Code.

14.           General Restrictions.

(a)           Investment Representations.  The Corporation may require any person to whom Restricted Shares or an option is granted, as a condition of receiving such Restricted Shares or exercising such option, to give written assurances in substance and form satisfactory to the Corporation to the effect that such person is acquiring the Restricted Shares or Common Stock subject to the option for his or her own account for investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the Corporation deems necessary or appropriate in order to comply with federal and applicable state securities laws, or with covenants or representations made by the Corporation in connection with any public offering of its Common Stock.

(b)           Compliance with Securities Law.  Each option and grant of Restricted Shares shall be subject to the requirement that if, at any time, counsel to the Corporation shall determine that the listing, registration or qualification of the Restricted Shares or shares subject to such option upon any securities exchange or under any state or federal law, or the consent or approval of any governmental or regulatory body, or that the disclosure of non-public information or the satisfaction of any other condition is necessary as a condition of, or in connection with the issuance or purchase of shares thereunder, such Restricted Shares shall not be granted and such option may not be exercised, in whole or in part, unless such listing, registration, qualification, consent or approval, or satisfaction of such condition shall have been effected or obtained on conditions acceptable to the Board of Directors.  Nothing herein shall be deemed to require the Corporation to apply for or to obtain such listing, registration or qualification, or to satisfy such condition.

15.           Rights as a Stockholder.

The holder of an option shall have no rights as a stockholder with respect to any shares covered by the option (including, without limitation, any rights to receive dividends or non-cash distributions with respect to such shares) until the date of issue of a stock certificate to him or her for such shares.  No adjustment shall be made for dividends or other rights for which the record date is prior to the date such stock certificate is issued.

 

16.

Adjustment Provisions for Recapitalization, Reorganizations and Related Transactions.

(a)           Recapitalization and Related Transactions.  If, through or as a result of any recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar transaction, (i) the outstanding shares of Common Stock are increased, decreased or exchanged for a different number or kind of shares or other securities of the Corporation, or (ii) additional shares or new or different shares or other non-cash assets are distributed with respect to such shares of Common Stock or other securities, an appropriate and proportionate adjustment shall be made in (x) the maximum number and kind of shares reserved for issuance under the Plan, (y) the number and kind of Restricted Shares granted and shares or other securities subject to any then outstanding options under the Plan, and (z) the exercise price for each share subject to any then outstanding options under the Plan, without changing the aggregate purchase price as to which such options remain exercisable.  Notwithstanding the foregoing, no adjustment shall be made pursuant to this Section 16 if such adjustment (i) would cause the Plan to fail to comply with Section 422 of the Code or with Rule 16b-3 or (ii) would be considered as the adoption of a new plan requiring stockholder approval.

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(b)           Reorganization, Merger and Related Transactions.  If the Corporation shall be the surviving corporation in any reorganization, merger or consolidation of the Corporation with one or more other corporations, any then outstanding Restricted Shares or option granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number of shares of Common Stock subject to such Restricted Shares or options would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the purchase price as to which such options may be exercised so that the aggregate purchase price as to which such options may be exercised shall be the same as the aggregate purchase price as to which such options may be exercised for the shares remaining subject to the options immediately prior to such reorganization, merger, or consolidation.

(c)  Board Authority to Make Adjustments.  Any adjustments made under this Section 16 will be made by the Board of Directors, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive.  No fractional shares will be issued under the Plan on account of any such adjustments.

17.

Merger, Consolidation, Asset Sale, Liquidation, Etc.

(a)           General.  In the event of a consolidation or merger in which the Corporation is not the surviving corporation, or sale of all or substantially all of the assets of the Corporation in which outstanding shares of Common Stock are exchanged for securities, cash or other property of any other corporation or business entity or in the event of a liquidation of the Corporation (collectively, a "Corporate Transaction"), the Board of Directors of the Corporation, or the board of directors of any corporation assuming the obligations of the Corporation, may, in its discretion, take any one or more of the following actions, as to outstanding options: (i) provide that such Restricted Shares or options shall be assumed, or equivalent Restricted Shares or options shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof), provided that any such options substituted for Incentive Stock Options shall meet the requirements of Section 424(a) of the Code, (ii) upon written notice, provide that all unexercised options and Restricted Shares will terminate immediately prior to the consummation of such transaction unless such options are exercised by the optionee within a specified period following the date of such notice, (iii) in the event of a Corporate Transaction under the terms of which holders of the Common Stock of the Corporation will receive upon consummation thereof a cash payment for each share surrendered in the Corporate Transaction (the "Transaction Price"), make or provide for a cash payment to the optionees equal to the difference between (A) the Transaction Price times the number of shares of Common Stock subject to such outstanding options (to the extent then exercisable at prices not in excess of the Transaction Price) and (B) the aggregate exercise price of all such outstanding options in exchange for the termination of such options, and (iv) provide that all restrictions on Restricted Shares shall lapse in full or in part and all or any outstanding options shall become exercisable in full or in part immediately prior to such event.

(b)           Substitute Restricted Shares or Options.  The Corporation may grant Restricted Shares or options under the Plan in substitution for Restricted Shares or options held by persons in a Business Relationship with another corporation who enter into a Business Relationship with the Corporation, or a subsidiary of the Corporation, as the result of a merger or consolidation of the employing corporation with the Corporation or a subsidiary of the Corporation, or as a result of the acquisition by the Corporation, or one of its subsidiaries, of property or stock of the other corporation.  The Corporation may direct that substitute Restricted Shares or options be granted on such terms and conditions as the Board of Directors considers appropriate in the circumstances.

  

18.           No Special Employment Rights.

Nothing contained in the Plan or in any Restricted Share or option agreement shall confer upon any holder of Restricted Shares or optionee any right with respect to the continuation of his or her employment by, or other Business Relationship with, the Corporation or interfere in any way with the right of the Corporation at any time to terminate such employment or Business Relationship or to increase or decrease the compensation of the optionee.

19.           Other Employee Benefits.

Except as to plans which by their terms include such amounts as compensation, the amount of any compensation deemed to be received by an employee as a result of the grant of Restricted Shares or lapse of restrictions thereon, the exercise of an option or the sale of shares received upon such exercise will not constitute compensation with respect to which any other employee benefits of such employee are determined, including, without limitation, benefits under any bonus, pension, profit-sharing, life insurance or salary continuation plan, except as otherwise specifically determined by the Board of Directors.

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20.           Amendment of the Plan.

(a)           The Board of Directors may at any time, and from time to time, modify or amend the Plan in any respect, except that if at any time the approval of the stockholders of the Corporation is required under Section 422 of the Code or any successor provision with respect to Incentive Stock Options, or the legal requirements relating to the administration of equity compensation plans, if any, under applicable provisions of federal securities laws, applicable state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system or quotation system on which the Common Stock is listed or quoted, and the applicable laws and rules of any foreign country or jurisdiction where awards are, or will be, granted under the Plan.

(b)           The termination or any modification or amendment of the Plan shall not, without the consent of an optionee or holder of Restricted Shares, affect his or her rights under an option or grant of Restricted Shares previously granted to him or her.  With the consent of the optionee or holder of Restricted Shares affected, the Board of Directors may amend outstanding option or Restricted Share agreements in a manner not inconsistent with the Plan.  The Board of Directors shall have the right to amend or modify the terms and provisions of the Plan and of any outstanding Incentive Stock Options granted under the Plan to the extent necessary to qualify any or all such options for such favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock options under Section 422 of the Code.

21.           Withholding.

(a)           The Corporation shall have the right to deduct from payments of any kind otherwise due to the optionee or holder of Restricted Shares any federal, state or local taxes of any kind required by law to be withheld with respect to any shares issued upon exercise of options or lapse of restrictions on Restricted Shares under the Plan.  Subject to the prior approval of the Corporation, which may be withheld by the Corporation in its sole discretion, the optionee or holder of Restricted Shares may elect to satisfy such obligations, in whole or in part, (i) by causing the Corporation to withhold shares of Common Stock otherwise issuable pursuant to the exercise of an option or lapse of restrictions on Restricted Shares or (ii) by delivering to the Corporation shares of Common Stock already owned by the optionee or holder of Restricted Shares.  The shares so delivered or withheld shall have a Fair Market Value equal to such withholding obligation as of the date that the amount of tax to be withheld is to be determined.  An optionee who has made an election pursuant to this Section 21(a) may satisfy his or her withholding obligation only with shares of Common Stock which are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements.

(b)           The acceptance of shares of Common Stock upon exercise of an Incentive Stock Option shall constitute an agreement by the optionee (i) to notify the Corporation if any or all of such shares are disposed of by the optionee within two years from the date the option was granted or within one year from the date the shares were transferred to the optionee pursuant to the exercise of the option, and (ii) if required by law, to remit to the Corporation, at the time of and in the case of any such disposition, an amount sufficient to satisfy the Corporation's federal, state and local withholding tax obligations with respect to such disposition, whether or not, as to both (i) and (ii), the optionee is in the employ of the Corporation at the time of such disposition.

(c)           Notwithstanding the foregoing, in the case of a Reporting Person whose options have been granted in accordance with the provisions of Section 3(b) herein, no election to use shares for the payment of withholding taxes shall be effective unless made in compliance with any applicable requirements of Rule 16b-3.

  

22.           Section 162(m) of the Code.  The Board of Directors, in its sole discretion, may require that one or more agreements contain provisions which provide that, in the event Section 162(m) of the Code, or any successor provision relating to excessive employee remuneration, would operate to disallow a deduction by the Corporation for all or part of any payment of an award under the Plan, a grantee’s receipt of the portion that would not be deductible by the Corporation shall be deferred to either the earliest date at which the Board reasonably anticipates that the grantee's remuneration either does not exceed the limit set forth in Section 162(m) of the Code or is not subject to Section 162(m) of Code, or the calendar year in which the grantee separates from service.  This Section 22 shall be applied and construed consistently with Section 409A of the Code and the regulations (and guidance) thereunder.

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23.           Effective Date and Duration of the Plan.

(a)           Effective Date.  The Plan shall become effective when adopted by the Board of Directors, but no Incentive Stock Option granted under the Plan shall become exercisable unless and until the Plan shall have been approved by the Corporation's stockholders.  If such stockholder approval is not obtained within twelve (12) months after the date of the Board's adoption of the Plan, no options previously granted under the Plan shall be deemed to be Incentive Stock Options and no Incentive Stock Options shall be granted thereafter.  Amendments to the Plan not requiring stockholder approval shall become effective when adopted by the Board of Directors; amendments requiring stockholder approval (as provided in Section 20) shall become effective when adopted by the Board of Directors, but no Incentive Stock Option granted after the date of such amendment shall become exercisable (to the extent that such amendment to the Plan was required to enable the Corporation to grant such Incentive Stock Option to a particular optionee) unless and until such amendment shall have been approved by the Corporation's stockholders.  If such stockholder approval is not obtained within twelve (12) months of the Board's adoption of such amendment, any Incentive Stock Options granted on or after the date of such amendment shall terminate to the extent that such amendment to the Plan was required to enable the Corporation to grant such option to a particular optionee.  Subject to this limitation, options may be granted under the Plan at any time after the effective date and before the date fixed for termination of the Plan.

(b)           Termination.  Unless sooner terminated in accordance with Section 17, the Plan shall terminate upon the earlier of (i) the close of business on the day next preceding the tenth anniversary of the date of its adoption by the Board of Directors, or (ii) the date on which all shares available for issuance under the Plan shall have been issued pursuant to the exercise or cancellation of Restricted Shares or options granted under the Plan.  If the date of termination is determined under (i) above, then Restricted Shares or options outstanding on such date shall continue to have force and effect in accordance with the provisions of the instruments evidencing such Restricted Shares or options.

24.           Governing Law.

The provisions of this Plan shall be governed and construed in accordance with the laws of the State of Nevada without regard to the principles of conflicts of laws.

		
	  

	Adopted by the Board of Directors on September 18, 2013

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