Document:

exhibit_10-3.htm

EXHIBIT 10.3

 

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement”), dated and effective as of June 16, 2015 (the “Effective Date”), by and between Torchlight Energy Resources, Inc., a Nevada corporation with principal executive offices at 5700 W. Plano Pkwy, Ste. 3600, Plano, TX  75093 (the “Company”), and Roger Wurtele, an individual (the “Employee”) (each of which a “Party” or, collectively, the “Parties”).

 

W I T N E S S E T H:

WHEREAS, the Company desires to employ Employee for management and executive services, and Employee desires to serve the Company in those capacities, upon the terms and subject to the conditions contained in this Agreement;

 

WHEREAS, the Parties entered into an Employment Agreement in October 2013, as amended in March 2014 (the “Old Employment Agreement”) and desire that this Agreement replace and supersede the Old Employment Agreement in its entirety, whereby the Old Employment Agreement will be of no force and effect as of the Effective Date of this Agreement;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Parties hereto hereby agree as follows:

1.   Employment.

(a)           Services. Upon effective date, Employee will be employed by the Company as the Chief Financial Officer to provide services related to such office.  Employee will report to the Company’s Board with primary direction being given by the Board.  Employee agrees to perform such Services faithfully, to devote a significant portion of his working time, attention and energies to the business of the Company, and while remaining employed, to not engage in any other business activity that directly conflict with his duties and obligations to the Company.   At the commencement of the Term, Employee shall be made an employee of the Company and shall be and remain employed by the Company.

(b)           Acceptance. At the commencement of the Term, Employee hereby accepts such employment and agrees to render the Services.

(c)           Independent Investment Activities  Notwithstanding any provision to the contrary herein, Employee shall be free to engage in any independent investment activity, provided such independent investment activities are not in conflict with his duties and obligations to the Company.  To the extent that Employee has any prospective investment or other activities in fields of operations of the Company, then Employee shall first notify the Company and shall present such opportunity to the Company.  The Company shall have fifteen (15) days to accept or reject such opportunity.  If the Company elects not to proceed with such opportunity after the fifteen (15) day period, then Employee shall be free to pursue such opportunity independently.

 

2.   Term of Employment. The term of employment (the "Term") shall commence on the Effective Date and shall continue until June 16, 2020, unless sooner terminated pursuant to Section 9 of this Agreement. Notwithstanding anything to the contrary contained herein, the provisions of this Agreement governing protection of Confidential Information shall continue in effect as specified in Section 5 hereof and survive the expiration or termination hereof. The Term may be extended for additional one (1) year periods upon mutual written consent of Employee and the Board.  

3.   Best Efforts; Place of Performance. Employee shall devote his business time, attention and energies to the business and affairs of the Company, and shall use his commercially reasonable best efforts to advance the lawful interests of the Company and shall not during the Term be actively engaged in any other business activity that will adversely interfere with the performance by Employee of his duties hereunder or Employee’s availability to perform such duties or that will adversely affect, or negatively reflect upon the Company.  The duties to be performed by the Employee hereunder shall be performed primarily at the office of the Company in Plano, Texas subject to reasonable travel requirements on behalf of the Company.

 

 

  

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4.   Compensation. As compensation for the performance by Employee of the duties under this Agreement, the Company shall pay Employee as follows:

 

(a)           Base Fees.   The Company shall pay Employee Base Fees (the “Base Fees”) equal to $225,000 per year, commencing on July 1, 2015. Payment of $7,500 shall be made bi-monthly, in accordance with the Company’s payroll plan, with the remaining $1,875 bi-monthly amount to accrue unpaid.  The Company shall pay Employee the amounts accrued and unpaid hereunder at such time as management believes there is adequate cash for such payment.

(b)          Discretionary Bonus. Employee shall be eligible to receive an additional annual bonus (the “Discretionary Bonus”) in an amount up to 200% of the Base Fees, based upon performance on behalf of the Company during the prior year. Factors to be considered by the Board of Directors and the Compensation Committee shall include, but not be limited to, growth in the Company’s market capitalization, the liquidity and performance of the Company’s Common Stock as well as other factors considered relevant to the Board and the Compensation Committee.  The Discretionary Bonus shall be payable either as a lump-sum payment or in installments as determined by the Board of Directors and the Compensation Committee of the Company in its sole discretion.  In addition, the Board of Directors of the Company shall annually review the Bonus to determine whether an increase in the amount thereof is warranted. For the purposes of calculating the first year’s bonus, the Effective Date shall be used as the starting point for calculation.  The Compensation Committee shall also consider the issuance of additional stock options to the Employee in its sole discretion.

 

(c)           Withholding; Employee Status. The Company shall withhold applicable federal, state and local taxes and social security and such other amounts as may be required by law from all amounts payable to Employee under this Section 4.  Employee shall be classified as a W-2 employee and Company agrees to pay all employer-based taxes levied by any and all governmental agencies.  Company hereby agrees to indemnify, defend, and pay all taxes and expenses of Employee for any claims made by any governmental agency that: (i) Employee is an independent contractor relative to the payments made under this Section 4 and is charged self-employment tax, and/or (ii) any taxes withheld have not been remitted to the appropriate governmental agency.

 

(d)          Expenses. The Company shall reimburse Employee for all normal, usual and necessary expenses incurred by Employee in furtherance of the business and affairs of the Company, including reasonable travel and entertainment, upon timely receipt by the Company of appropriate vouchers or other proof of Employee’s expenditures and otherwise in accordance with any expense reimbursement policy as may from time to time be adopted by the Company, but, in no event, will Employee be reimbursed less frequently than monthly.

 

(e)           Other Benefits. Employee shall be entitled to all rights and benefits under any benefit or other plan (including, without limitation, dental, medical, medical reimbursement and hospital plans, pension plans, employee stock purchase plans, profit sharing plans, bonus plans and other so-called "fringe" benefits) as the Company shall make available to its senior executives from time to time.

 

(f)           Vacation. Employee shall, during the Term, be entitled to a vacation of four (4) weeks per annum, in addition to holidays observed by the Company. Employee shall not be entitled to carry any vacation forward to the next year of employment and shall not receive any compensation for unused vacation days.

(g)          COLA.  All monetary compensation hereunder shall be reviewed by the Board of Directors for inflation on a yearly basis or more frequently if inflation is at an abnormally high level.  If the Consumer Price Index (“CPI”), as published by the United States Government, rises significantly, the Board of Directors will reevaluate compensation and, if feasible given the financial condition of the Company, upwardly adjust compensation hereunder.

5.   Confidential Information.

  

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(a)           Employee recognizes and acknowledges that in the course of his duties he is likely to receive confidential or proprietary information owned by the Company, its affiliates or third Parties with whom the Company or any such affiliates has an obligation of confidentiality.  Accordingly, during and after the Term, Employee agrees to keep confidential and not disclose or make accessible to any other person or use for any other purpose other than in connection with the fulfillment of his duties under this Agreement, any Confidential and Proprietary Information (as defined below) owned by, or received by or on behalf of, the Company or any of its affiliates. “Confidential and Proprietary Information” shall include, but shall not be limited to, confidential or proprietary scientific or technical information, data, business plans (both current and under development), trade secrets, or any other confidential or proprietary business information relating to development programs, costs, revenues, investments,  credit and financial data, financing methods, or the business and affairs of the Company, including any Confidential and Proprietary Information that may have been developed by Employee. Employee agrees to return immediately all Company material and reproductions (including but not limited, to writings, correspondence, notes, drafts, records, invoices, technical and business policies, computer programs or disks) thereof in Employee’s possession to the Company upon request and in any event immediately upon termination of employment.

 

(b)           Except with prior authorization by the Company or in furtherance of Employee’s duties as an executive of the Company, Employee agrees not to disclose or publish any of the Confidential and Proprietary Information, or any confidential, scientific, technical or business information of any other Party to whom the Company or any of its affiliates owes an obligation of confidence, at any time during or after his employment with the Company.

(c)           Notwithstanding the foregoing, the following shall not be considered to be Confidential Information:  (i) information publicly available; (ii) information which becomes available to Employee on a non-confidential basis from sources other than Company, provided such Employee does not know or have reason to know that such sources are prohibited by contractual, legal or fiduciary obligation from transmitting such information to Employee; (iii) and information that was lawfully in the possession of a Employee prior to the Effective Date of this Agreement, provided such Confidential Information was not provided to Employee by Company.   Company acknowledges that Employee is bringing with him certain contacts and industry knowledge.  Such information shall not be the Confidential Information of Company, but shall remain the confidential information of Employee.

(d)           The provisions of this Section 5 shall survive any termination of this Agreement.

 

6.   Non-Competition, Non-Solicitation and Non-Disparagement.

 

(a)           Employee understands and recognizes that his services to the Company are special and unique and that in the course of performing such services Employee will have access to and knowledge of Confidential and Proprietary Information (as defined in Section 5) and Employee agrees that, during the Term and for a period of twelve (12) months thereafter, he shall not in any manner, directly or indirectly, on behalf of himself or any person, firm, partnership, joint venture, corporation or other business entity (“Person”), enter into or engage in any business which is engaged in any business directly or indirectly competitive with the business of the Company, either as an individual for his own account, or as a partner, joint venturer, owner, executive, employee, independent contractor, principal, agent, consultant, officer, director or shareholder of a Person in a business competitive with the Company within the geographic area of the Company’s business.   The Company acknowledges the need for Employee to be employed in his profession and, for the purposes of this Agreement, competition shall mean pursuing oil and gas opportunities that compete directly with the same specific projects that Employee was exposed to as an Employee.

 

(b)          During the Term and for a period of 12 months thereafter, Employee shall not, directly or indirectly, without the prior written consent of the Company, solicit or induce any employee of the Company or any of its affiliates to leave the employ of the Company or any such affiliate; or hire for any purpose any employee of the Company or any affiliate or any employee who has left the employment of the Company or any affiliate within one year of the termination of such employee’s employment with the Company or any such affiliate or at any time in violation of such employee’s non-competition agreement with the Company or any such affiliate

 

 

 

  

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(c)           The Company and Employee each agree that both during the Term and at all times thereafter, neither party shall directly or indirectly disparage, whether or not true, the name or reputation of the other party or any of its affiliates, including but not limited to, any officer, director, employee or shareholder of the Company or any of its affiliates.

 

(d)           In the event that Employee breaches any provisions of Section 5 or this Section 6 or there is a threatened breach, then, in addition to any other rights which the Company may have, the Company shall be entitled to injunctive relief to enforce the restrictions contained in such Sections.

(e)           Each of the rights and remedies enumerated in Section 6(d) shall be independent of the others and shall be in addition to and not in lieu of any other rights and remedies available to the Company at law or in equity.  If any of the covenants contained in this Section 6, or any part of any of them, is hereafter construed or adjudicated to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants or rights or remedies which shall be given full effect without regard to the invalid portions.  If any of the covenants contained in this Section 6 is held to be invalid or unenforceable because of the duration of such provision or the area covered thereby, the parties agree that the court making such determination shall have the power to reduce the duration and/or area of such provision and in its reduced form such provision shall then be enforceable.  No such holding of invalidity or unenforceability in one jurisdiction shall bar or in any way affect the Company’s right to the relief provided in this Section 6 or otherwise in the courts of any other state or jurisdiction within the geographical scope of such covenants as to breaches of such covenants in such other respective states or jurisdictions, such covenants being, for this purpose, severable into diverse and independent covenants.

 

(g)           The provisions of this Section 6 shall survive any termination of this Agreement unless terminated pursuant to Sections 9(c) and (d) upon which termination the provisions of this Section shall automatically terminate.

(h)           Notwithstanding any provision to the contrary herein, Employee shall be free to conduct business of any form or fashion with any contact that he had prior to the Effective Date of this Agreement.

 

7.   Representations and Warranties.  Employee hereby represents and warrants to the best of his knowledge and belief to the Company as follows:

 

(a)           Except as set forth below, neither the execution or delivery of this Agreement nor the performance by Employee of his duties and other obligations hereunder violate or will violate any statute, law, determination or award, or conflict with or constitute a default or breach of any covenant or obligation under (whether immediately, upon the giving of notice or lapse of time or both) any prior employment agreement, contract, or other instrument to which Employee is a Party or by which he is bound;

(b)           Employee has the full right, power and legal capacity to enter and deliver this Agreement and to perform the duties and other obligations hereunder;

(c)           This Agreement constitutes the legal, valid and binding obligation of Employee enforceable against Employee in accordance with its terms; and

(d)           No approvals or consents of any persons or entities are required for Employee to execute and deliver this Agreement or perform its duties and other obligations hereunder.

8.   Termination. This Agreement may be terminated as follows:

 

(a)           Employee hereunder may be terminated by the Board of Directors of the Company for Cause. Any of the following actions by Employee shall constitute “Cause”:

  

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(i)            The willful failure, disregard or refusal by Employee to perform his duties hereunder, which is not cured by Employee within fifteen (15) days after notice thereof is given to Employee by the Company;

(ii)           Any willful, intentional or grossly negligent act by Employee, not excusable under the business judgment rule, having the effect of injuring, in a material way (whether financial or otherwise and as determined in good-faith by a majority of the Board of Directors of the Company), the business or reputation of the Company or any of its affiliates, including but not limited to, any officer, director, executive or shareholder of the Company or any of its affiliates;

 

(iii)          Willful misconduct by Employee in respect of the lawful duties or obligations of Employee under this Agreement, including, without limitation, gross insubordination with respect to directions received by Employee from the Board of Directors of the Company, which is not cured by Employee within fifteen (15) days after notice thereof is given to Employee by the Company;

 

(iv)          Employee’s conviction of any felony or a misdemeanor involving moral turpitude (including entry of a nolo contendere plea);

 

(v)           The determination by the Company, after a reasonable and good-faith investigation by the an independent investigator following a written allegation by another employee of the Company, that Employee engaged in some form of harassment prohibited by law (including, without limitation, verbal harassment, age, sex or race discrimination), unless Employee’s actions were specifically directed by the Board of Directors of the Company;

 

(vi)          Any misappropriation or embezzlement of the property of the Company or its affiliates (whether or not a misdemeanor or felony);

 

(vii)         Breach by Employee of any of the provisions of Sections 5, 6 or 7 of this Agreement; and

(viii)        Breach by Employee of any provision of this Agreement which is not cured by Employee within thirty (30) days after notice thereof is given to Employee by the Company, unless such breach is not curable.

 

(b)           Employee’s employment hereunder may be terminated by the Board of Directors of the Company due to Employee’s Disability or Death. For purposes of this Agreement, a termination for “Disability” shall occur (i) when the Board of Directors of the Company has provided a written termination notice to Employee supported by a written statement from a reputable independent physician to the effect that Employee shall have become so physically or mentally incapacitated as to be unable to resume, within the ensuing twelve (12) months, his employment hereunder by reason of physical or mental illness or injury, or (ii) upon rendering of a written termination notice by the Board of Directors of the Company after Employee has been unable to substantially perform his duties hereunder for 90 or more consecutive days, or more than 120 days in any consecutive twelve month period, by reason of any physical or mental illness or injury. For purposes of this Section 9(b), Employee agrees to make himself available and to cooperate in any reasonable examination by a reputable independent physician retained by the Company.

(c)           Employee’s employment hereunder may be terminated by the Board of Directors of the Company (or its successor) upon the occurrence of a Change of Control.  For purposes of this Agreement, “Change of Control” means (i) the acquisition, directly or indirectly, following the date hereof by any person (as such term is defined in Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended), in one transaction or a series of related transactions, of securities of the Company representing in excess of forty percent (40%) or more of the combined voting power of the Company’s then outstanding securities if such person or his or its affiliate(s) do not own in excess of 40% of such voting power on the date of this Agreement, or (ii) the future disposition by the Company (whether direct or indirect, by sale of assets or stock, merger, consolidation or otherwise) of all or substantially all of its business and/or assets in one transaction or series of related transactions (other than a merger effected exclusively for the purpose of changing the domicile of the Company).

 

 

  

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(d)          Employee’s employment hereunder may be terminated by Employee for Good Reason. For purposes of this Agreement, “Good Reason” shall mean any of the following: (i) the assignment to Employee of duties inconsistent with Employee's position, duties, responsibilities, titles or offices as described herein; (ii) any material reduction by the Company of Employee's duties and responsibilities; (iii) any reduction by the Company of Employee's benefits payable hereunder; or (iv) Company’s material breach of any of its obligations under this Agreement.

 

9.   Compensation upon Termination.

 

(a)           If Employee’s employment is terminated as a result of his Death or Disability, the Company shall pay to Employee, as applicable, the Base Fee through the date of the Death or through the date of termination notice due to disability plus any amounts owed to Employee hereunder that are accrued and unpaid.

 

(b)           If Employee’s employment is terminated by the Board of Directors of the Company for Cause, then the Company shall pay to the Employee the Base Fee through the date of his termination and Employee shall have no further entitlement to any other compensation or benefits from the Company, provided that the Compensation Committee shall determine what, if any, accrued but unpaid amount owed to the Employee shall be paid to the Employee.

 

(c)           If Employee’s employment is terminated by the Company (or its successor) upon the occurrence of a Change of Control, the Company (or its successor, as applicable) shall pay in one lump sum to Employee any amounts owed to Employee hereunder that are accrued and unpaid plus the Base Fee that would be earned through the the end of the Term.

 

(d)           If Employee’s employment is terminated by the Company other than as a result of Employee’s death or disability and other than for reasons specified in Sections 9(b) or (c), then the Company shall continue to pay to Employee the Base Fee and benefits until the earlier to occur of (1) the end of the Term and (2) the date that is one year following such termination; and shall pay in one lump sum any amounts owed to Employee hereunder that are accrued and unpaid on such earlier date.

(e)           If this Agreement is terminated pursuant to Section 8(d), Company shall continue to pay to Employee the Base Fee and benefits until the earlier to occur of (1) the end of the Term and (2) the date that is one year following such termination; and shall pay in one lump sum any amounts owed to Employee hereunder that are accrued and unpaid on such earlier date.

(f)            Upon termination for any reason Company will pay Employee any expense reimbursement amounts owed through the date of termination.

 

(g)           This Section 9 sets forth the only obligations of the Company with respect to the termination of Employee’s employment with the Company, and Employee acknowledges that, upon the termination of its employment, it shall not be entitled to any payments or benefits which are not explicitly provided in Section 9.

 

(h)          The provisions of this Section 9 shall survive any termination of this Agreement.

 

10.   Miscellaneous.

 

(a)           This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Texas, without giving effect to its principles of conflicts of laws.

 

(b)          THE PARTIES AGREE THAT IN THE EVENT THAT LITIGATION ARISES OUT OF OR IS RELATED TO THIS AGREEMENT, ANY ACTION MUST BE BROUGHT IN DALLAS COUNTY, TEXAS, AND BOTH PARTIES HEREBY CONSENT TO PERSONAL JURISDICTION THERE.

  

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(c)           This Agreement shall be binding upon and inure to the benefit of the Parties hereto, and their respective heirs, legal representatives, successors and assigns.

(d)           This Agreement may not be assigned by Employee except to an entity that is affiliated with Employee.  Employee may assign Employee’s payments or right to receive payments to any entity that is affiliated with Employee.  The Company may assign its rights, together with its obligations, hereunder in connection with any sale, transfer or other disposition of all or substantially all of its business or assets.

 

(e)           This Agreement cannot be amended orally, or by any course of conduct or dealing, but only by a written agreement signed by the Parties hereto.

 

(f)            The failure of either Party to insist upon the strict performance of any of the terms, conditions and provisions of this Agreement shall not be construed as a waiver or relinquishment of future compliance therewith, and such terms, conditions and provisions shall remain in full force and effect.  No waiver of any term or condition of this Agreement on the part of either Party shall be effective for any purpose whatsoever unless such waiver is in writing and signed by such Party.

 

(g)          All notices, requests, consents and other communications, required or permitted to be given hereunder, shall be in writing and shall be delivered personally or by an overnight courier service or sent by registered or certified mail, postage prepaid, return receipt requested, to the Parties at the addresses set forth on the first page of this Agreement, and shall be deemed given when so delivered personally or by overnight courier, or, if mailed, five days after the date of deposit in the United States mails.  Either Party may designate another address, for receipt of notices hereunder by giving notice to the other Party in accordance with this paragraph (g).

 

(h)          This Agreement sets forth the entire agreement and understanding of the Parties relating to the subject matter hereof.  No representation, promise or inducement has been made by either Party that is not embodied in this Agreement, and neither Party shall be bound by or liable for any alleged representation, promise or inducement not so set forth.

 

(i)            The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

(j)            This Agreement may be executed in any number of counterparts, each of which shall constitute an original, but all of which together shall constitute one and the same instrument.

(k)          The Parties entered into an Employment Agreement in October 2013, as amended in March 2014 (the “Old Employment Agreement”).  The Parties agree that this Agreement will replace and supersede the Old Employment Agreement in its entirety, whereby the Old Employment Agreement will be of no force and effect as of the Effective Date of this Agreement, except that the base salary of $180,000 per annum shall continue until July 1, 2015.

SIGNATURES TO FOLLOW ON NEXT PAGE

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement to be effective as of the Effective Date.

 

TORCHLIGHT ENERGY RESOURCES, INC.

By:           /s/ John A. Brda____________________

John A. Brda, President and CEO

                 /s/ Roger Wurtele__________________

ROGER WURTELE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8Exhibit 10.1

 

EMPLOYMENT AGREEMENT 

 

This Employment Agreement (the “Agreement”)
is made effective as of June 11, 2015 (the “Effective Date”) between Bobby E. Cooper (“Employee”) and Standard
Metals Processing, Inc., hereinafter referred to as (“SMPR” or the “Company”), who are hereinafter sometimes
collectively referred to as “the parties” or singularly as a “party.”

 

WITNESSETH 

 

WHEREAS, SMPR wishes to appoint Employee
as the Company’s Managing Director, Metals and Mining, and desires to memorialize his employment in this Agreement upon the
terms and conditions set forth herein.

 

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

 

		1.	Employment Services. SMPR hereby agrees to employ Employee as Managing Director, Metals
and Mining, and Employee hereby accepts such position under the terms and conditions set forth herein. Employee shall be subject
to all the usual and customary office policies and procedures of the Company as may from time to time be established for Employees
of similar grade and position.

 

		2.	Duties.

 

		(a)	Employee shall serve as the Managing Director, Metals
and Mining of the Company during the Term (as defined below) of this Agreement. Employee shall carry out all assignments as set
forth on Exhibit A attached hereto.

 

		(b)	Employee shall serve as the Chief Executive Officer
of the wholly owned subsidiary formerly known as Standard Metals Royalty & Streaming, Inc., to be renamed by Board of Directors
of the subsidiary and Standard Metals Processing, Inc..

 

		(c)	Employee shall, if so requested by the Company, also
serve with or without additional compensation, as an officer, director or manager of entities from time to time directly or indirectly
owned or controlled by the Company (each an “Affiliate,” or collectively, the “Affiliates”).

 

		3.	Term. The term of the employment shall be for One (1) year, commencing on the Effective
Date (the “Term”), unless sooner terminated by the Company or Employee in accordance with the terms of this Agreement
or pursuant to Section 6 below. The term of this Agreement shall automatically be extended for an additional year, each year on
the anniversary of the effective date of this Agreement, unless previously terminated by the Company or the Employee.

 

		4.	Extent of Services. Employee shall devote substantial time, attention and energy to his
duties hereunder and shall use his best efforts to promote the business of SMPR and/or its subsidiaries or affiliates during the
Term of this Agreement. Employee may engage in other activities, including serving on the Board of Directors of other corporations/organizations,
and/or advising other corporations/organizations in each case to the extent that such activities do not materially detract from
or limit the performance of Employee’s duties under this Agreement, or inhibit in any material way the business of SMPR and/or
its subsidiaries. Employee will not engage in any activity, paid or otherwise, for a competitor of SMPR so long as this Agreement
is in effect. Employee may invest his assets in such manner as will not require any services to be performed on his part in the
operation or affairs of the companies in which such investments are made, but only if such investments are consistent with this
Agreement. Employee shall perform all duties in a professional, ethical and businesslike manner.

 

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		5.	Compensation and Benefits. As compensation for his services hereunder, during the Term of
the Agreement, SMPR agrees:

 

		(a)	To grant Employee options to purchase common stock pursuant to the 2014 Option Plan as set forth on Exhibit B attached hereto;

 

		(b)	To pay Employee salary as follows:

 

		i.	One Dollar ($1.00) for the first year;

 

		ii.	In the event the Company obtains capital sufficient
to meet its associated operating costs, including administrative and general business expenses, Employee will receive a yearly
salary of One Hundred Fifty Thousand Dollars ($150,000.00), which shall be increased to Two Hundred and Forty Thousand Dollars
($240,000.00) in the event that the Company successfully raises a minimum of Five Million Dollars ($5,000,000) through the private
placement of the Company’s securities. During the first year of this Agreement, for the period between the effective date
of this Agreement and the time when the Company obtains sufficient capital as described in the previous sentence, Employee shall
be paid his salary at a pro-rated rate of fifty percent (50%) starting on the date of employment.

 

		iii.	Employee’s performance will be reviewed at least
annually with adjustments to salary to be considered in line with Company profits and that of senior executives of similarly situated
companies. After the Company raises a minimum of Five Million Dollars ($5,000,000) through the private placement of the Company’s
securities, the Board shall commission a formal compensation study to evaluate performance versus compensation across a selected
group of similar companies in the same industry and sub-industry (hereinafter the “Peer Group”). Based upon this study,
Employees compensation may be adjusted as would be suggested by the study and in the discretion of the Board and/or Compensation
Committee of the Board. Any changes to this Agreement will be represented by an addendum hereto executed by both parties.

 

		iv.	As indicated by the study referred to in paragraph
three above, the Board may in its discretion award annual bonuses which if awarded, shall not be less than Fifty Percent (50%)
of the average bonuses awarded to a similarly situated executive within the peer group. To pay annual bonuses, if any bonuses
are payable during the Term, which shall be determined by the Board of Directors, in its sole discretion, in an amount and upon
such other performance criteria as shall be fixed by the Board of Directors based upon the performance of Employee and the Company
during the same period.

 

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		v.	Employee during the term of this agreement shall be
entitled to medical insurance and other commonly afforded benefits such as a 401(k) program. During the period of this agreement
prior to establishment of medical insurance, Employee shall be entitled to reimbursment of his out-of-pocket costs expended on
medical insurance on his behalf and for his dependants if any. The Company also agrees that upon a capital raise being successfully
concluded raising a minimum of Five Million Dollars ($5,000,000) through the private placement of the Company’s securities,
the Company shall within thirty days of closing of such financing establish medical insurance which shall be paid for by the Company.
Within sixty days of closing of such financing, the Company shall also establish a 401(k) program or similar retirement plan into
which the Company will make a matching contribution of a maximum of Twenty Five Thousand Dollars ($25,000.00) annually on behalf
of the Employee. Such contribution will only occur to the degree Employee matches said contribution.

 

		vi.	In the event that Employee is required by the Company’s
business needs to travel to politically unstable countries, or countries with sub-standard medical care the Company agrees to
establish a medical evacuation plan and/or provide for protective services to the Employee while traveling in such countries.

 

		(c)	Employee shall be included in any pension plan in effect as of the date of this Agreement or effected thereafter. Employee’s
participation as described in the sentence immediately preceding shall be in relation to Employee’s annual compensation as
compared to any other individual’s participation based upon his annual compensation at the time of this Agreement.

 

		(d)	SMPR will reimburse Employee for his direct expenses in connection with his duties hereunder including, but not limited to,
reasonable travel, entertainment and hotel expenses. Employee shall timely provide such receipts and other documentation of his
expenses before any reimbursements will be paid.

 

		(e)	Employee will be included in any health insurance or other benefit plan provided for senior management and executives. To the
extent that the Company has raised working capital as described above in (5)(b)(ii), but has not yet established a health insurance
plan, then Employee’s out-of-pocket health-related expenses (including vision and dental) for each of Employee and his spouse
shall be reimbursed in a timely manner if submitted on an expense account.

 

		(f)	Employee shall be entitled to four (4) weeks of paid vacation time per year (with the year being the term of this agreement
or extensions thereof).

 

		6.	Termination. 

 

		(a)	This Agreement shall be terminated upon the happening of any of the following:

 

(i) at the cessation of SMPR’s business activities
except as a result of a sale or merger;

 

(ii) upon the mutual consent of the parties hereto;

 

(iii) upon the death or disability of Employee, disability
shall be defined as an inability to perform duties and responsibilities for One Hundred Twenty (120) consecutive days as a result
of physical or mental illness or condition or loss of legal capacity;

 

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(iv) the termination for any reason or no reason by
Employee upon Thirty (30) days written notice to the Company. However, Employee cannot terminate this Agreement during a Restricted
Period. “Restricted Period” shall mean the Thirty (30) day period immediately preceding the due date of a quarterly
regulatory filing and the Sixty (60) day period immediately preceding the due date of an annual regulatory filing. The due date
of the regulatory filing shall include any applicable extensions and extend until such quarterly or annual statement is filed.

 

		(b)	Termination by Company for Cause.“Cause” for the purpose of this Agreement is defined as: (i) an intentional act
of fraud, embezzlement, theft or any other material violation of law committed by Employee; (ii) damage to Company’s assets;
(iii) disclosure of Company’s confidential information; (iv) breach of Employee’s obligations under this Agreement;
(v) intentional engagement in any competitive activity which would constitute a breach of Employee’s duty of loyalty or of
Employee’s obligations under this Agreement; (vi) the willful and continued failure to substantially perform Employee’s
duties for Company (other than as a result of incapacity due to physical or mental illness); (vii) willful conduct by Employee
that is materially injurious to Company, monetarily or otherwise, or (viii) failure to follow any reasonable written directives
from the Board of Directors. Employee shall have Thirty (30) days after receipt of written notice from the Company setting forth
the actions or circumstances constituting “Cause” to cure such actions or circumstances. (c) If Employee is terminated
under Section 6(a)(i)-(iii), Employee’s options shall vest, expire and be exercisable pursuant to the Stock Option Grant.
“Date of Termination” shall mean the final date of Employee’s employment, not the date of notice of termination.

 

		7.	Covenant not to Compete. Employee hereby covenants and agrees that during the Term of this
Agreement and, should Employee’s employment last three (3) years or more, for a period of One (1) year after termination
of such Agreement:

 

		(a)	Employee will not in any way, directly or indirectly, solicit, divert, take away or accept, the
business of any of the customers, suppliers or service providers of SMPR during the Term of this Agreement for the purpose of selling
to any such customer any product or service which was provided or offered by during the Term of this Agreement hereof.

 

		(b)	Employee will not directly or indirectly, attempt or seek to cause any of the foregoing customers,
suppliers or service providers of SMPR to refrain from maintaining or acquiring from or through SMPR any products or services,
or providing any products or services which were provided or offered by or to SMPR during the Term hereof, and will not assist
any other person or persons to do so. Employee agrees that telephonic or written communication by him to any of the Parties described
above shall constitute activity by Employee for the purposes of this Agreement.

 

		(c)	Employee will not enter into any contract with direct competitors of the Company or work for or
consult direct competitors of the Company on topics relating to the Company’s business. The Employee agrees that he will
not engage in, directly or indirectly, and in any capacity whatsoever, or have any financial interest in, any business operation
or in any party in competition with the Company.

 

    	 	4

    	 

    

 

		(d)	Attempt in any manner to persuade any investor or shareholder of the Company to cease investing
or reduce any investment in the Company.

 

		(e)	This Section 7 shall not apply if this Agreement is terminated under Section 6(a)(i).

 

		8.	Non – Disclosure. Employee acknowledges that, in order for Employee to effectively
perform his duties hereunder SMPR will disclose to Employee certain valuable trade secrets and confidential business information
that has been created, discovered or developed by, or that otherwise has become known to SMPR as a result of substantial effort,
expense and time incurred by SMPR or which has been assigned or otherwise conveyed. In light of such acknowledgement, Employee
hereby agrees as follows:

 

		(a)	Trade Secrets. Employee hereby acknowledges that certain processes, formulas and mechanisms used by SMPR in its operation
of its business, are not generally known to the public or to other persons engaged in businesses similar to its business and, as
such constitute its trade secrets. Employee hereby agrees never to directly or indirectly disclose or use, or assist anyone else
in disclosing or using such trade secrets to any person or entity other than as authorized in the regular course of the performance
of this Agreement.

 

		(b)	Confidential Information. 

 

		(i)	Employee hereby agrees that during the Term of this Agreement and for a period of One (1)
year following termination of such employment, Employee will not divulge, disclose or make accessible to any person or entity the
following confidential business information (“Confidential Information”) of SMPR, including but not limited to: (1)
e-mail addresses, customer lists, the names of customer contacts, the names of investor contacts, investor lists, professional
contacts, business plans, technical data, product ideas, personnel, contracts and financial information; (2) patents, trade secrets,
techniques, formulas, formulations, components, ingredients, compounds, processes, business methodologies, schematics, employee
suggestions, development tools and processes, computer printouts, computer programs, design drawings and manuals, and improvements;
(3) information about costs, profits, markets, royalties and streaming, and sales; (4) plans for future development and new product
concepts; (5) data relating to studies, testing, results of any studies, testing, regulatory applications, research, development,
procedures and operating plans; (6) all documents, books, papers, drawings, models, sketches, and other data of any kind and description,
including electronic data recorded or retrieved by any means, that have been or will be disclosed, as well as written or oral instructions
or comments; (7) any and all information provided to the Employee while on the Company’s Tonopah, Nevada property (the “Tonopah
Property”); (8) any land, machinery, individuals, production, operations, development, work, processes, or any other type
of information the Employee observes while at the Tonopah Property; and (9) any and all information provided to Employee regarding
the Company or conversations between the Employee and a representative of the Company.

 

    	 	5

    	 

    

 

		(ii)	Employee recognizes and acknowledges that:

 

		1)	the Confidential Information is a valuable, special and unique asset of the Company and that disclosure of any Confidential
Information would cause considerable harm to the Company’s operations and/or business reputation; and

		2)	the disclosure of the Confidential Information to any other person or entity outside the Company or use of the Confidential
Information by or on behalf of any other person or entity could result in irreparable harm to the Company.

 

		(iii)	Employee shall not disclose, use or in any way implement
the Confidential Information to provide, enable or help others to provide services that are substantially similar to or competitive
with any of the Company’s projects, products or services without the written consent of the Company or as otherwise required
by law.

 

		(iv)	With respect to all Confidential Information, Employee
shall:

 

(1) protect and safeguard the Confidential Information
against unauthorized use, publication, or disclosure in any manner;

 

(2) not use any of Confidential Information except
to perform the duties of Managing Director, Metals and Mining as set out in this Agreement;

 

(3) not, directly or indirectly, in any way, reveal,
reverse engineer, de-compile, disassemble, report, publish, disclose, transfer or otherwise use any of the Confidential Information
except as specifically authorized by the Company in accordance with this Agreement; and

 

(4) not restrict access to the Confidential Information
to the Company’s officers, directors, or employees who need such access for a permitted use.

 

		9.	Property of SMPR. Employee
agrees that upon termination of this Agreement, he will promptly deliver to SMPR all written and other materials in his possession
or control which contain any of the trade secrets and confidential business information described in this Agreement and all other
property of SMPR in his possession or control at such time, which was obtained from SMPR or complied or produced for SMPR during
the Term of this Agreement, including, but not limited to: (a) records; data, plans, programs, invoices, flow charts, record layouts,
computer printouts, magnetic tapes, diskettes, disks, card decks; (b) log-in and password information for all electronic formats
including but not limited to: bank(s), QuickBooks, and payroll company; and (c) letters and customer lists. 

 

		10.	Non-solicitation of Employees. During the Term of this Agreement
and for One (1) year thereafter, Employee shall not hire or solicit for employment directly or through or on behalf of any party,
any persons who are then employees of SMPR. This Section 10 shall not apply if the Agreement is terminated pursuant to Section
6(a)(i). 

 

    	 	6

    	 

    

 

		11.	Relations with Third Parties and Representations of the Parties.

 

		(a)	Employee agrees that SMPR may make known to others, either during or subsequent to the Term of this Agreement, the existence
of this Agreement and the provisions of all or any part hereof.

 

		(b)	Employee represents and warrants that:

 

		a.	He is not in violation of any term of any employment contract, patent or other proprietary information disclosure agreement
of any other contract, agreement or any judgment, decree or order of any court or administrative agency relating to or affecting
his right to be retained by SMPR because of the nature of this business conducted or proposed to be conducted by SMPR or for any
other reasons;

 

		b.	No such term, judgment, decree or order conflicts with his obligation to use his best efforts to promote the interests of SMPR
nor does the execution and delivery of this Agreement, nor the carrying on of SMPR business conflict with any such term, judgment,
decrees or order; and

 

		c.	Neither Employee nor any of his affiliates (as that term is defined under the Securities Act of 1933) are a party to any transaction,
agreement or understanding to which SMPR is also a party except this Agreement or any agreement executed hereunder, nor does he
or any of his affiliates have any interest in any person or entity with whom SMPR does or intends to do business.

 

		(c)	SMPR hereby makes the following representations in connection with this Agreement:

 

		a.	SMPR is a corporation duly organized and validly existing by virtue of the laws of the state of its incorporation and is in
good standing under the laws thereof.

 

		b.	The execution of this Agreement by SMPR and the performance by it of the covenants and undertakings hereunder have been duly
authorized by all requisite corporate action, and approved by the Board of Directors and SMPR has the corporate power and authority
to enter into this Agreement and perform the covenants and undertakings to be performed by it hereunder and is under no other impediment
which would adversely affect its ability to consummate or prohibit it from meeting its obligation hereunder.

 

		c.	This Agreement has been duly authorized, executed and delivered by SMPR and constitutes a valid and legally binding obligation
of SMPR enforceable in accordance with its terms.

 

		12.	Remedies, Survival, and Severability.

 

		a.	SMPR and Employee agree that in the event of breach of any of the
covenants, agreements or obligations under Sections 4, 7, 8, 9, 10 and 11 thereof, remedies at law would be inadequate and either
party may seek injunctive relief as well as damages. 

 

		b.	The covenants, agreements, representations, warranties and obligations
contained in Sections 4, 7, 8, 9, 10 and 11 hereof shall survive the termination of this Agreement for the periods herein set forth.

 

    	 	7

    	 

    

 

		c.	Each of the covenants, agreements and obligations contained in
Sections 4, 7, 8, 9, 10 and 11 hereof shall be independent and severable from the others and should any be for any reason held
illegal, invalid or unenforceable in whole or in part, said illegality, invalidity or unenforceability shall not affect the other
covenants, agreements and obligations in said Sections. 

 

		d.	In the enforcement of their rights hereunder, SMPR and Employee
shall return all of their rights under law or in equity to enforce the obligations of the other party hereunder or otherwise, and
to seek relief for the acts of the other party subject to the terms of this Agreement. 

 

		13.	Miscellaneous.

 

		a.	This Agreement embodies the entire agreement of the parties hereto relating to the subject matter hereof. No amendment, modification,
waiver or attempted waiver of this Agreement or any part hereof shall be valid or binding unless made in writing and signed by
both parties.

 

		b.	All questions concerning the construction, validity, and interpretation of this Agreement and the performance of the obligations
imposed hereunder shall be governed by the laws of the State of New York, without giving effect to the conflict of law or choice
of law provisions thereof. Any dispute, controversy or claim arising out of this Agreement shall be resolved in accordance with
the rules of the Arbitration Association of America (“AAA”) applying New York law. Each Party hereby waives its right
to seek any remedy or claim for relief in court, including such Party’s right to a jury trial. Notwithstanding the foregoing,
any actions commenced under this Agreement shall be venued in either the United States District Court for the Southern District
of New York, or in the Supreme Court of New York, New York County.

 

		c.	Any notice required or permitted to be given pursuant to this Agreement shall be sufficiently given when delivered or if sent
by Certified mail postage prepaid, return receipt requested, on the third day after such mailing, to the following address:

 

If to Standard Metals Processing, Inc.:

 

611 Walnut Street Gadsden, Alabama 35901

 

With a copy (which shall not constitute notice) to
the Company’s counsel:

 

Brinen & Associates, LLC 7 Dey Street, Suite
1503 New York, New York 10007

 

If to Employee:

 

At the address set forth on the signature page.

 

or, as to each party, at such other address as shall
be designated by such party in a written notice to the other party pursuant to the terms of this section.

 

    	 	8

    	 

    

 

		d.	This Agreement may be executed in one or more counterparts, each of which shall be deemed to be original, but all of which
together shall constitute one and the same instrument.

 

		e.	The headings of the sections and subsections hereof have been inserted as a matter of convenience and shall not be used in
the interpretation of any provisions of this Agreement.

 

		f.	The failure of either party hereto in any one or more instances to insist upon the performance of any of the terms or conditions
of this Agreement, or to exercise any rights or privileges conferred in this Agreement or the waiver by either party of any breach
of any of the terms, covenants or conditions of this Agreement shall not be construed as thereafter waiving any such terms, conditions,
rights, privileges or covenants, and the same shall continue and remain in full force and effect as if no such forbearance or waiver
had occurred.

 

		g.	Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement
in any other jurisdiction. Further, to the extent that any term or provision hereof is deemed invalid, void or otherwise unenforceable,
but may be made enforceable by amendment thereto, the parties agree that such amendment may be made so that the same shall, nevertheless,
be enforceable to the fullest extent permissible under the laws and public policies applied in any such jurisdiction in which enforcement
is sought.

 

		14.	Entire Agreement. This Agreement constitutes
the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating
to the subject matter of this Agreement.

 

[SIGNATURE PAGE TO FOLLOW]

 

 

    	 	9

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement
under their seals as of the date and year first written above.

 

 

Standard Metals Processing, Inc. 

 

	By:	/s/: Sharon L. Ullman	 

 

Name: Sharon Ullman Title: Chief Executive Officer, and Executive
Chairwoman

 

Employee: Bobby E. Cooper

 

	By:	/s/: Bobby E. Cooper	 

 

Address: 1949
Bent Place, Show Low, AZ 85901

 

    	 	10

    	 

    

 

Exhibit A Duties and Responsibilities

 

The duties and responsibilities set forth below shall be incorporated
by reference into the Employment Agreement (the “Agreement”) entered into by Standard Metals Processing, Inc. (the
“Company”) and Bobby Cooper (“Employee”) on the Effective Date. All terms not defined below shall have
the same meaning as set forth in the Agreement. This Exhibit A may be amended from time to time and upon executed shall become
a part of the Agreement.

 

Employee shall carry out all assignments including:

 

(i) Report directly to the
Board of Directors, including:

		a)	Advise as to the Company’s activities and direction;

		b)	Set corporate policies and procedures and planning
recommendations;

 

(ii) Oversee operations of
the Company and its affiliates

 

(iii) Manage corporate development activities designed to build
the value of SMPR and, to do so, identify or create income-generating opportunities for Standard Metals Processing, Inc. and its
affiliates;

 

(iv) Participate in the construction of corporate business and
financial plans;

 

(v) Develop, make and/or participate in investor
relations presentations;

 

(vi) Assist with duties pertaining to the Company’s financial
reporting;

 

(vii) Acquire or create royalties; mineral, metal, or mineral-derived
streams of income; mineral tolling agreements; and/or investment opportunities that could lead to SMPR’s ultimate derivation
of royalty, streaming, or tolling agreements and income;

 

(viii) Meet with owners of desirable mining assets or properties;

 

(ix) Analyze and evaluate mining projects or mining
companies;

 

(x) Manage consultants involved in evaluating projects for the
Company and its affiliates;

 

(xi) Retain technical consultants to assist with implementation
of duties; and

 

(xii) Perform such other duties as are incident to the office
of Managing Director, Metals and Mining, and as reasonably requested by the Board of Directors.

 

    	 	11

    	 

    

 

The parties hereto have executed this Exhibit A to the Employment
Agreement setting for the Employee’s duties and responsibilities as of the date below.

 

The Company: Standard Metals Processing, Inc.

 

	By:	/s/: Sharon L. Ullman	Date: June 12, 2015

 

Name: Sharon Ullman Title: Chief Executive Officer, Executive
Chairwoman and Compensation Committee Member

 

Employee: Bobby Cooper

 

	By:	/s/: Bobby Cooper	Date: June 11, 2015

 

 

    	 	12

    	 

    

 

 

Exhibit B Stock Option Grants 

 

 

 

 

 

 

 

 

 

 

    	 	13

    	 

    

 

STANDARD METALS
PROCESSING, INC.

 

STOCK OPTION GRANT AGREEMENT

 

The
person named below in Section I (the “Grantee”) has been granted a Stock Option from Standard Metals Processing, Inc.,
a Nevada corporation (the “Company”), subject to the terms and conditions of this Stock Option Grant Agreement (the
“Agreement”).

 

The Stock Options to be granted
to Grantee will be subject to certain restrictions on transfer.

 

		I.	NOTICE OF GRANT OF OPTIONS

 

Grantee: Bobby Cooper

 

Grant Number: OPT-E-BC-1

 

Total Number of Options Granted: Two Million Five
Hundred Thousand (2,500,000)

 

Date of Grant: June 11, 2015

 

Fair Market Value of the Shares: $0.80 (closing
price on the Date of Grant)

 

		II.	AGREEMENT

 

		1.	Grant of Options. The Company hereby grants to
Grantee the number of options of Common Stock of the Company (the “Shares”) set forth in Section I above.
	 	 	 

		2.	Option Exercise Price. The exercise price for
Shares purchased under the Option shall be the Fair Market Value of the Shares which is the closing price on the Date of Grant.
	 	 	 

		3.	Term of Options. The term of each Option (the
“Option Term”) shall be Three (3) years from the Date of Grant, unless otherwise established by the Plan Administrator.
	 	 	 

		4.	Exercise of Options. The Option shall vest and
become exercisable as follows: (i) Five Hundred Thousand (500,000) shall vest on the Date of Grant; (ii) Five Hundred Thousand
(500,000) shall vest Six (6) months from the Date of Grant; (iii) Five Hundred Thousand (500,000) shall vest Twelve (12) months
from the Date of Grant; (iv) Five Hundred Thousand (500,000) shall vest Eighteen (18) months from the Date of Grant; and (v) Five
Hundred Thousand (500,000) shall vest Twenty-Four (24) months from the Date of Grant.
	 	 	 

		5.	Payment of Exercise Price. The exercise price
for Shares purchased under an Option shall be paid in full to the Company by delivery of consideration equal to the product of
the Option exercise price and the number of Shares purchased. Such consideration must be paid in cash, check (subject to the approval
of the Plan Administrator), wire, or any other compensation or combinations thereof at the sole discretion of the Plan Administrator.
	 	 	 

 

    	 	14

    	 

    

 

		6.	Post-Termination Exercises. The Plan Administrator
shall establish and set forth in each instrument that evidences an Option whether the Option shall continue to be exercisable,
and the terms and conditions of such exercise, if the Grantee ceases to be employed by, or to provide services to, the Company
or a Related Corporation, which provisions may be waived or modified by the Plan Administrator at any time. If not so established
in the instrument evidencing the Option, the Option shall be exercisable according to the following terms and conditions, which
may be waived or modified by the Plan Administrator at any time:

  

(a)Any portion of an Option that is not vested
and exercisable on the date of termination of the Grantee’s employment or service relationship (the “Employment Termination
Date”) shall expire on such date.

 

(b)Any portion of an Option that is vested
and exercisable on the Employment Termination Date shall expire upon the earliest to occur of:

 

(i)if the Grantee’s
Employment Termination Date occurs for reasons of Retirement, Disability (as defined in the in the Grantee’s Employment Agreement)
or death, the one-year anniversary of such Employment Termination Date;

 

(ii)if the Grantee’s Employment Termination
Date occurs for reasons other than Cause, Retirement, Disability or death, the three-month anniversary of such Employment Termination
Date; and

 

(iii)
the last day of the Option Term (the “Option Expiration Date”).

 

(c)Notwithstanding the foregoing, if the
Grantee dies after the Employment Termination Date while the Option is otherwise exercisable, the portion of the Option that is
vested and exercisable on such Employment Termination Date shall expire upon the earlier to occur of (A) the Option Expiration
Date or (B) the first anniversary of the date of death, unless the Plan Administrator determines otherwise.

 

(d)A Grantee’s transfer of employment
or service relationship between or among the Company and a Related Corporation, or a change in status from an employee to a consultant,
agent, advisor or independent contractor or a change in status from a consultant, agent, advisor or independent contractor to an
employee, shall not be considered a termination of employment or service relationship for purposes of this Section 6. The effect
of a Company-approved leave of absence on the terms and conditions of an Option shall be determined by the Plan Administrator,
in its sole discretion.

 

    	 	15

    	 

    

 

		7)	Termination for Cause. Notwithstanding Section
6, in case of termination of the Grantee’s employment or service relationship for Cause (as defined in the Grantee’s
Employment Agreement), the Option shall automatically expire at the time the Company first notifies the Grantee of such termination.
If a Grantee’s employment or service relationship with the Company is suspended pending an investigation of whether the
Grantee shall be terminated for Cause, all the Grantee’s rights under any Option likewise shall be suspended during the
period of investigation.

 

		8)	Notices. Any notice, demand or request required
or permitted to be given by either the Company or the Grantee pursuant to the terms of this Agreement shall be in writing and
shall be deemed given when delivered personally or deposited in the U.S mail, First Class with postage prepaid, and addressed
to the parties at the address with respect to the Grantee set forth at the end of this Agreement and with respect to the Company
at its principal place of business or such other address as the party may request by notifying the other in writing.

 

		9)	No Waiver. Either party’s failure to enforce
any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions,
nor prevent that party from thereafter enforcing each and every other provision of this Agreement. The rights granted both parties
herein are cumulative and shall not constitute a waiver of either party’s right to assert all other legal remedies available
to it under the circumstances.

 

		10)	Successors and Assigns. The Company may assign
any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors
and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Grantee
and his or her heirs, executors, administrators, successors and assigns.

 

		11)	Governing Law. All questions concerning the construction,
validity, and interpretation of this Agreement and the performance of the obligations imposed hereunder, including without limitation
the grant of the Options, shall be governed by the laws of the State of New York, without giving effect to the conflict of law
or choice of law provisions thereof. Any dispute, controversy or claim arising out of this Agreement shall be resolved in accordance
with the rules of the Arbitration Association of America (“AAA”) applying New York law. Each Party hereby waives its
right to seek any remedy or claim for relief in court, including such Party’s right to a jury trial. Notwithstanding the
foregoing, any actions commenced under this Agreement shall be venued in either the United States District Court for the Southern
District of New York, or in the Supreme Court of New York, New York County.

 

		12)	Severability. In the event that any of the provisions,
or portions thereof, of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, the validity
and enforceability of the remaining provisions, or portions thereof, will not be affected, and such unenforceable provisions shall
be automatically replaced by a provision as similar in terms as may be valid and enforceable.

 

 

    	 	16

    	 

    

 

		13)	Entire Agreement. This Agreement, as applicable,
constitutes the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all
prior undertakings and agreements of the Company and Grantee with respect to the subject matter hereof, and may not be modified
adversely to the Grantee’s interest except by means of a writing signed by the Company and Grantee.

 

 

[SIGNATURE
PAGE TO FOLLOW]

 

 

 

    	 	17

    	 

    

 

 

IN WITNESS WHEREOF, Grantee
and the Company have executed this Agreement and agree that the rant of Stock Options hereunder is to be governed by the terms
and conditions of this Agreement.

 

	GRANTEE	 	COMPANY	 
	 	 	 	 
	Bobby Cooper	 	Standard Metals Processing, Inc.	 
	 	 	 	 
	 	 	 	 	 
	By:	/s/: Bobby Cooper	 	By:	/s/: Sharon L. Ullman  	 
	 	 	 	Name:	Sharon L. Ullman	 
	 	 	 	Title:	Chief Executive Officer	 
	 	 	 	 	 	 

 

 

    	 	18

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