Document:

PLEDGE
AGREEMENT

 

THIS PLEDGE
AGREEMENT (this “Agreement”), dated as of April 6, 2012 is entered into between Elkhorn Goldfields, LLC, a Delaware
limited liability company (“Pledgor”), and Gordon Snyder, as Administrative Agent, acting on behalf of the Lender
Parties (as hereinafter defined) (“Secured Party”), with reference to the following:

 

WHEREAS,
Pledgor is obligated to Secured Party in accordance with certain agreements including without limitation the following:

 

1.
those certain loan agreements, promissory notes, and other loan documents among Administrative Agent and Pledgor, dated December
8 and December 21, 2006 in the total original principal amount of $5,000,000.00 (the “2006 Loan”); and

 

2.
those certain loan agreements, promissory notes, and other loan documents among Administrative Agent and MFPI Partners, LLC (“MFPI”),
dated February 22, 2007 and modified May 14, 2007 in the total original principal amount of $8,050,000.00 (the “2007 Loan”),
made the joint and several obligation of Pledgor and MFPI by the Forbearance Agreement hereinafter described; and

 

3.
those certain loan agreements, promissory notes, and other loan documents among Administrative Agent and MFPI Partners, LLC, dated
January 22, 2008 in the total original principal amount of $5,000,000.00 (the “2008 Loan”) made the joint and several
obligation of Pledgor and MFPI by the Forbearance Agreement hereinafter described; and

 

4.
that certain Loan and Administrative Agency Agreement, and other loan documents (including without limitation the Mortgages hereinafter
defined) dated as of May 13, 2009 in the original principal amount of $1,000,000.00 (the “2009 Loan”); and

 

5.
that certain Forbearance Agreement dated as of April 30, 2010 by and between (among others) the Pledgor, MFPI and Administrative
Agent (the “Forbearance Agreement”); and

 

7.
that certain Loan Reinstatement and Modification Agreement between Pledgor, MFPI and Administrative Agent dated April 6, 2012
(the “2012 Agreement”)

 

all
as amended, restated, or otherwise modified from time to time, collectively, the “Loan Agreements”), pursuant to which
Secured Party has made certain financial accommodations to Pledgor;

 

WHEREAS,
Pledgor beneficially owns the Pledged Interests (as hereinafter defined) in the Issuer (as hereinafter defined);

 

WHEREAS,
to induce Secured Party to make certain additional financial accommodations provided to Pledgor pursuant to all of the Loan Agreements,
including the 2012 Agreement, Pledgor desires to pledge, grant, transfer, and assign to Secured Party a security interest in the
Collateral (as hereinafter defined) to secure the Secured Obligations (as hereinafter defined), as provided herein.

 

    	 

    	 

    

 

NOW,
THEREFORE, in consideration of the mutual promises, covenants, representations, and warranties set forth herein and for other
good and valuable consideration, the parties hereto agree as follows:

 

		1.	Definitions
                                                                and Construction

 

		(a)	Definitions.

 

All
initially capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed thereto in the Loan Agreement.
As used in this Agreement:

 

“Bankruptcy
Code” means United States Bankruptcy Code (11 U.S.C. Section 101 et seq.), as in effect from time to time, and any successor
statute thereto.

 

“Business
Day” means any day that is not a Saturday, Sunday, or other day on which national banks are authorized or required to close.

 

“Code”
means the Uniform Commercial code as in effect in the State of Colorado from time to time.

 

“Loan
Agreement” shall have the meaning ascribed thereto in the recitals to this Agreement.

 

“Collateral”
shall mean the Pledged Interests and the Proceeds, collectively.

 

“Equity
Interests” means all securities, shares, units, options, warrants, interests, participations, or other equivalents (regardless
of how designated) of or in a corporation, partnership, limited liability company, or similar entity, whether voting or nonvoting,
certificated or uncertificated, including general partner partnership interests, limited partner partnership interests, common
stock, preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules
and Regulations promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934).

 

“Event
of Default” shall have the meaning ascribed thereto in the Loan Agreements.

 

“Holder”
and “Holders” shall have the meanings ascribed thereto in Section 3 of this Agreement.

 

“Issuer”
shall mean each of the Person identified as an Issuer on Schedule 1 attached hereto (or any addendum thereto), and any successors
thereto, whether by merger or otherwise.

 

“Lien”
shall mean any lien, mortgage, pledge, assignment (including any assignment of rights to receive payments of money), security
interest, charge, or encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in
the nature thereof, or any agreement to give any security interest).

 

    	 

    	 

    

 

“Pledged
Interests” shall mean (a) all Equity Interests of the Issuers identified on Schedule 1; and (b) the certificates or instruments
representing such Equity Interests.

 

“Pledgor”
shall have the meaning ascribed thereto in the preamble to this Agreement.

 

“Proceeds”
shall mean all proceeds (including proceeds of proceeds) of the Pledged Interests including all: (a) rights, benefits, distributions,
premiums, profits, dividends, interest, cash, instruments, documents of title, accounts, contract rights, inventory, equipment,
general intangibles, payment intangibles, deposit accounts, chattel paper, and other property from time to time received, receivable,
or otherwise distributed in respect of or in exchange for, or as a replacement of or a substitution for, any of the Pledged Interests
or proceeds thereof (including any cash, Equity Interests, or other securities or instruments issued after any recapitalization,
readjustment, reclassification, merger or consolidation with respect to the Issuers and any security entitlements, as defined
in Section 8-102(a)(17) of the Code, with respect thereto); (b) “proceeds,” as such term is defined in Section 9-102(a)(64)
of the Code; (c) proceeds of any insurance, indemnity, warranty, or guaranty (including guaranties of delivery) payable from time
to time with respect to any of the Pledged Interests or proceeds thereof; (d) payments (in any form whatsoever) made or due and
payable to Pledgor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of
all or any part of the Pledged Interests or proceeds thereof; and (3) other amounts from time to time paid or payable under or
in connection with any of the Pledged Interests or proceeds thereof.

 

“Registered
Organization” shall have the meaning ascribed thereto in Section 9-102(a)(7) of the Code.

 

“Secured
Obligations” shall mean all liabilities, obligations, or undertakings owing by Pledgor to Secured Party of any kind or description
arising out of or outstanding under, advanced or issued pursuant to, or evidenced by the Loan Agreements, this Agreement, or the
other Transaction Documents, irrespective of whether for the payment of money, whether direct or indirect, absolute or continent,
due or to become due, voluntary or involuntary, whether now existing or hereafter arising, and including all interest (including
interest that accrues after the filing of a case under the Bankruptcy Code) and any and all costs, fees (including reasonable
attorneys' fees), Administrative Agency Fee and expenses which Pledgor is required to pay pursuant to any of the foregoing, by
law, or otherwise.

 

“Secured
party” shall have the meaning ascribed thereto in the preamble to this Agreement, together with its successors or assigns.

 

“Securities
Act” shall have the meaning ascribed thereto in Section 9(c) of this Agreement.

 

“Transaction
Documents” shall mean the Loan Agreements and all other agreements, instruments, or other documents entered into or executed
in connection therewith, in each case, as amended, restated, or otherwise modified from time to time.

 

    	 

    	 

    

 

		(b)	Construction.

 

(i)   Unless
the context of this Agreement clearly requires otherwise, references to the plural include the singular and to the singular include
the plural, the part includes the whole, the term “including” is not limiting, and the term “or” has,
except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,”
“herein,” “hereby,” “hereunder,” and other similar terms in this Agreement refer to this Agreement
as a whole and not exclusively to any particular provision of this Agreement. Article, section, subsection, exhibit, and schedule
references are to this Agreement unless otherwise specified. All of the exhibits or schedules attached to this Agreement shall
be deemed incorporated herein by reference. Any reference to any of the following documents includes any and all alterations,
amendments, restatements, extensions, modifications, renewals, or supplements thereto or thereof, as applicable: this Agreement,
the Loan Agreements, or any of the other Transaction Documents.

 

(ii)   Neither
this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against Secured party or Pledgor, whether
under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by both of the parties and their
respective counsel and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly
accomplish the purposes and intentions of the parties hereto.

 

(iii)    In
the event of any direct conflict between the express terms and provisions of this Agreement and of any of the Loan Agreements,
the terms and provisions of the Loan Agreements shall control. Terms not otherwise defined herein shall have the meaning set forth
in the 2012 Agreement

 

		2.	Pledge.

 

As
security for the prompt payment and performance of the Secured Obligations in full by Pledgor when due, whether at stated maturity,
by acceleration or otherwise (including amounts that would become due but for the operation of the provisions of the Bankruptcy
Code), Pledgor hereby pledges, grants, transfers, and assigns to Secured Party a security interest in all of Pledgor’s right,
title, and interest in and to the Collateral.

 

		3.	Delivery
                                                                       and Registration of Collateral.

 

		(a)	All
                                                                certificates or instruments representing or evidencing the Collateral
                                                                shall be promptly delivered by Pledgor to Secured party or Secured
                                                                Party’s designee pursuant hereto at a location designated
                                                                by Secured Party and shall be held by or on behalf of Secured
                                                                Party pursuant hereto, and shall be in suitable form for transfer
                                                                by delivery, or shall be accompanied by duly executed Endorsement
                                                                Certificate in the form attached hereto as Exhibit A or other
                                                                instrument of transfer or assignment in blank, in form and substance
                                                                satisfactory to Secured Party.

 

    	 

    	 

    

 

		(b)	Upon
                                                                the occurrence and during the continuance of an Event of Default
                                                                and pursuant to the remedies provided in the 2012 Agreement, Secured
                                                                Party shall have the right, at any time in its discretion and
                                                                without notice to Pledgor, to transfer to or to register on the
                                                                books of the Issuer (or of any other Person maintaining records
                                                                with respect to the Collateral) in the name of Secured Party or
                                                                any of its nominees any or all of the Collateral.

 

		(c)	If,
                                                                at any time and from time to time, any Collateral (including any
                                                                certificate or instrument representing or evidencing any Collateral)
                                                                is in the possession of a Person other than Secured Party or Pledgor
                                                                (a “Holder”), then Pledgor shall immediately, at Secured
                                                                Party’s option, either cause such Collateral to be delivered
                                                                into Secured Party’s possession (which may include actual
                                                                physical possession by a fiduciary of Secured Party), or cause
                                                                such Holder to enter into a control agreement, in form and substance
                                                                satisfactory to Secured Party, and take all other steps deemed
                                                                necessary by Secured party to perfect the security interest of
                                                                Secured Party in such Collateral, all pursuant to Sections 9-106
                                                                & 9-313 of the Code or other applicable law governing the
                                                                perfection of Secured Party’s security interest in the Collateral
                                                                in the possession of such Holder.

 

		(d)	Any
                                                                and all Collateral (including dividends, interest, and other cash
                                                                distributions) at any time received or held by Pledgor shall be
                                                                so received or held in trust for Secured Party, shall be segregated
                                                                from other funds and property of Pledgor and shall be forthwith
                                                                delivered to Secured Party in the same form as so received or
                                                                held, with any necessary endorsements; provided that cash dividends
                                                                or distributions received by Pledgor, may be retained by Pledgor
                                                                in accordance with Section 4 and used in the ordinary course of
                                                                Pledgor’s business.

 

		(e)	If
                                                                at any time, and from time to time, any Collateral consists of
                                                                an uncertificated security or a security in book entry form, then
                                                                Pledgor shall immediately cause such Collateral to be registered
                                                                or entered, as the case may be, in the name of Secured Party,
                                                                or otherwise cause Secured Party’s security interest thereon
                                                                to be perfected in accordance with applicable law.

 

		4.	Voting
                                                                Rights and Dividends.

 

		(a)	So
                                                                long as no Event of Default shall have occurred and be continuing,
                                                                Pledgor shall be entitled to exercise any and all voting and other
                                                                consensual rights pertaining to the Collateral or any part thereof
                                                                for any purpose not inconsistent with the terms of the Transaction
                                                                Documents and shall be entitled to receive and retain any cash
                                                                dividends or distributions paid or distributed in respect of the
                                                                Collateral; provided, however, that it is understood that Pledgor
                                                                shall have no right to exercise any optional redemption rights
                                                                provided to any holder in respect of the Collateral for as long
                                                                as any amounts owed to Secured Party pursuant to any of the Transaction
                                                                Documents remains outstanding and unpaid or any obligation of
                                                                Pledgor or MFPI to Secured Party remains unperformed.

 

    	 

    	 

    

 

		(b)	Upon
                                                                the occurrence and during the continuance of an Event of Default,
                                                                all rights of Pledgor to exercise the voting and other consensual
                                                                rights or receive and retain cash dividends or distributions that
                                                                it would otherwise be entitled to exercise or receive and retain,
                                                                as applicable pursuant to Section 4(a), shall cease, and all such
                                                                rights shall thereupon become vested in Secured Party, who shall
                                                                thereupon have the sole right to exercise such voting or other
                                                                consensual rights, including without limitation any optional right
                                                                of redemption provided to the holder of the collateral and to
                                                                receive and retain such cash dividends and distributions. Pledgor
                                                                shall execute and deliver (or cause to be executed and delivered)
                                                                to Secured Party all such proxies and other instruments as Secured
                                                                Party may reasonably request for the purpose of enabling Secured
                                                                Party to exercise the voting and other rights, including without
                                                                limitation any redemption rights which it is entitled to exercise
                                                                and to receive the dividends and distributions that it is entitled
                                                                to receive and retain pursuant to the preceding sentence.

 

		5.	Representations
                                                                and Warranties. 

 

Pledgor
represents, warrants, and covenants as follows:

 

		(a)	Pledgor
                                                                has taken all steps it deems necessary or appropriate to be informed
                                                                on a continuing basis of changes or potential changes affecting
                                                                the Collateral (including rights of redemption, conversion and
                                                                exchange, rights to subscribe, payment of dividends, reorganizations
                                                                or recapitalization, tender offers and voting and registration
                                                                rights), and Pledgor agrees that Secured party shall have no responsibility
                                                                or liability for informing Pledgor of any such changes or potential
                                                                changes or for taking any action or omitting to take any action
                                                                with respect thereto.

 

		(b)	Pledgor
                                                                is a limited liability company in good standing organized under
                                                                the laws of the state of Delaware. Pledgor is a limited liability
                                                                company.

 

		(c)	All
                                                                information herein or hereafter supplied to Secured party by or
                                                                on behalf of Pledgor in writing with respect to the Collateral
                                                                is, or in the case of information hereafter supplied will be,
                                                                accurate and complete in all material respects.

 

		(d)	Pledgor
                                                                is and will be the sole legal and beneficial owner of the Collateral
                                                                (including the Pledged Interests and all other Collateral acquired
                                                                by Pledgor after the date hereof) free and clear of any adverse
                                                                claim, Lien, or other right, title, or interest of any party,
                                                                other than the Liens in favor of Secured Party.

 

    	 

    	 

    

 

		(e)	This
                                                                Agreement, and the delivery to Secured Party of the Pledged Interests
                                                                representing Collateral (or the control agreements referred to
                                                                in Section 3 of this Agreement), creates a valid, perfected, and
                                                                first priority security interest in one hundred percent (100%)
                                                                of the Pledged Interests in favor of Secured Party securing payment
                                                                of the Secured Obligations, and all actions necessary to achieve
                                                                such perfection have been duly taken.

 

		(f)	Schedule
                                                                1 to this Agreement is true and correct and complete in all material
                                                                respects. Without limiting the generality of the foregoing, except
                                                                as set forth on Schedule 1, all the Pledged Interests are in certificated
                                                                form, and, except to the extent registered in the name of Secured
                                                                Party or its nominee pursuant to the provisions of this Agreement,
                                                                are registered in the name of Pledgor.

 

		(g)	There
                                                                are no presently existing Proceeds owned by Pledgor.

 

		(h)	The
                                                                Pledged Interests have been duly authorized and validly issued
                                                                and are fully paid and nonassessable.

 

		(i)	Neither
                                                                the pledge of the Collateral pursuant to this Agreement nor the
                                                                extensions of credit represented by the Secured obligations violates
                                                                Regulation T, U, or X of the Board of Governors of the Federal
                                                                Reserve System.

 

		6.	Further
                                                      Assurances.

 

		(a)	Pledgor
                                                                agrees that from time to time, at the expense of Pledgor, Pledgor
                                                                will promptly execute and deliver all further instruments and
                                                                documents, and take all further action that may be necessary or
                                                                reasonably desirable, or that Secured Party may request, in order
                                                                to perfect and protect any security interest granted or purported
                                                                to be granted hereby or to enable Secured party to exercise and
                                                                enforce its rights and remedies hereunder with respect to any
                                                                Collateral. Without limiting the generality of the foregoing,
                                                                Pledgor will: (i) at the request of Secured party, mark conspicuously
                                                                each of its records pertaining to the Collateral with a legend,
                                                                in form and substance reasonably satisfactory to Secured Party,
                                                                indicating that such Collateral is subject to the security interest
                                                                granted hereby; (ii) execute any such instruments or notices,
                                                                as may be necessary and reasonably desirable, or as Secured Party
                                                                may reasonably request, in order to perfect and preserve the first
                                                                priority security interests granted or purported to be granted
                                                                hereby; (iii) allow inspection of the Collateral by Secured Party
                                                                or Persons designated by Secured Party; and (iv) appear in and
                                                                defend any action or proceeding that may affect Pledgor’s
                                                                title to or Secured party’s security interest in the Collateral.

 

		(b)	Pledgor
                                                                hereby authorizes Secured Party to file one or more financing
                                                                or continuation statements, and amendments thereto, relative to
                                                                all or any part of the Collateral. A carbon, photographic, or
                                                                other reproduction of this Agreement or any financing statement
                                                                covering the Collateral or any part thereof shall be sufficient
                                                                as a financing statement where permitted by law.

 

    	 

    	 

    

 

		(c)	Pledgor
                                                                will furnish to Secured Party, upon the request of Secured Party:
                                                                (i) a certificate executed by an authorized officer of Pledgor,
                                                                and dated as of the date of delivery to Secured Party, itemizing
                                                                in such detail as Secured Party may request, the Collateral which,
                                                                as of the date of such certificate, has been delivered to Secured
                                                                Party by Pledgor pursuant to the provisions of this Agreement;
                                                                and (ii) such statements and schedules further identifying and
                                                                describing the Collateral and such other reports in connection
                                                                with the Collateral as Secured Party may reasonably request.

 

		7.	Covenants
                                                                of Pledgor.

 

Pledgor
shall:

 

		(a)	Perform
                                                                each and every covenant in the Transaction Documents applicable
                                                                to Pledgor;

 

		(b)	Neither
                                                                change its jurisdiction of organization nor cease to be in good
                                                                standing, in each case, without giving Secured party at least
                                                                thirty (30) days prior written notice thereof;

 

		(c)	To
                                                                the extent it may lawfully do so, use its best efforts to prevent
                                                                the Issuer from issuing Proceeds, except for cash dividends and
                                                                other distributions to be paid by the Issuer to Pledgor; and

 

		(d)	Upon
                                                                receipt by Pledgor of any material notice, report, or other communication
                                                                from the Issuer or any Holder relating to all or any part of the
                                                                Collateral, deliver such notice, report or other communication
                                                                to Secured Party as soon as possible, but in no event later than
                                                                five (5) days following the receipt thereof by Pledgor. Notwithstanding
                                                                the foregoing, if such notice, report, or other communication
                                                                from the Issuer or any Holder is filed pursuant to Issuer or Holder’s
                                                                reporting obligations set forth in the Securities Exchange Act
                                                                of 1934, as amended, Pledgor shall have no obligation to deliver
                                                                such notice, report or other communication to Secured Party.

 

		8.	Secured
                                                                Party as Pledgor’s Attorney-in-Fact.

 

		(a)	Pledgor
                                                                hereby irrevocably appoints Secured Party as Pledgor’s agent
                                                                and attorney-in-fact, in Secured Party’s sole good faith
                                                                and commercially reasonable discretion, to make, execute and deliver
                                                                any and all documents and writings which may be necessary or appropriate
                                                                for approval of, or be required by, any regulatory authority located
                                                                in any city, county, state or country where Pledgor or any of
                                                                the Issuers engage in business, in order to transfer or to more
                                                                effectively transfer any of the Pledged Interests or otherwise
                                                                enforce Secured Party’s rights hereunder.

 

    	 

    	 

    

 

		9.	Remedies
                                                                upon Default.

 

Upon
the occurrence and during the continuance of an Event of Default:

 

		(a)	Secured
                                                                Party shall notify Issuer as attorney-in-fact of Pledgor that
                                                                Pledgor is exercising the put rights of Pledgor as set forth in
                                                                the Certificate and shall direct the payment of the proceeds for
                                                                the benefit of the Holders in the total aggregate amount of $60
                                                                million of the exercise of the put rights as provided for in the
                                                                Certificate into a control account (the “Control Account”)
                                                                to be held for the benefit of Borrower Parties and Administrative
                                                                Agent in accordance with the terms of a customary control account
                                                                agreement by and among Borrower Parties, Administrative Agent
                                                                and a nationally recognized bank or securities intermediary firm.,
                                                                to be held for the benefit of Borrower Parties and Administrative
                                                                Agent. Upon disbursement by Issuer of all of the put proceeds
                                                                into the Control Account, Secured Party shall promptly tender
                                                                the Preferred Shares, provided that all sums due, together with
                                                                accrued interest, Administrative Agent’s Fee, reasonable
                                                                costs and fees of the holder of the Control Account and the reasonable
                                                                attorney’s fees of Secured Party are paid to Secured Party
                                                                in full, to Issuer and shall release the Pledged Shares. Upon
                                                                completion of Secured Party’s foreclosure of the Pledged
                                                                Shares of Secured Party, the proceeds of the Pledged Account shall
                                                                be distributed to Secured Party in the amount of the debt plus
                                                                interest, costs, Administrative Agent’s Fee and reasonable
                                                                attorney’s fees of Secured Party, and all sums prospectively
                                                                due under the Collar Option. Following any distribution whatsoever
                                                                to Secured Party of the proceeds in the Control Account (either
                                                                in part or in full), Administrative Agent shall with reasonable
                                                                promptness provide to Pledgor a statement showing the following:
                                                                (a) the disbursement requested from the Pledged Account; (b) a
                                                                breakdown of the anticipated application of the disbursement to
                                                                debt, interest, costs, fees, etc.; and (c) the balance owed to
                                                                Secured Party after the anticipated application of the disbursement.
                                                                In the event that such statement shall indicate that no balance
                                                                would remain due to Secured Party after the disbursement, the
                                                                remaining balance of the Control Account shall be paid to Pledgor,
                                                                less the fees of the holder of the Control Account and its reasonable
                                                                attorney’s fees, and the Control Account closed. If there
                                                                is a balance remaining due to Secured Party after the anticipated
                                                                application of the disbursement from the Control Account, Pledgor
                                                                shall be entitled to request a disbursement of proceeds from the
                                                                Control Account so long as the funds remaining in the Control
                                                                Account after such disbursement to Pledgor equal the balance owed
                                                                to Administrative Agent/Holder plus $100,000.00.

 

    	 

    	 

    

 

		(b)	In
                                                                the event that (i) Issuer shall fail within thirty (30) business
                                                                days following receipt of Secured Party’s notice of exercise
                                                                of the put rights of Pledgor to pay the proceeds of the put rights
                                                                into the Control Account as provided in this Section 9(a) and
                                                                in the Certificate or (ii) the amount of the proceeds of the put
                                                                rights is insufficient to pay the remaining sums then due under
                                                                this Agreement, including all accrued interest, reasonable costs
                                                                and fees and Administrative Agency Fee, then, Secured Party shall
                                                                be free sell the Collateral or any part thereof in one or more
                                                                parcels at public or private sale, at any exchange, broker’s
                                                                board or at any of Secured Party’s offices or elsewhere,
                                                                for cash, on credit or for future delivery, at such time or times
                                                                and at such price or prices and upon such other terms as Secured
                                                                Party may deem commercially reasonable, irrespective of the impact
                                                                of any such sales on the market price of the Collateral; provided,
                                                                however, that Administrative Agent’s pursuit of the sale
                                                                of the Collateral after the failure of Issuer to pay the put proceeds
                                                                into the Control Account within the time provided shall not constitute
                                                                an election by Secured Party to withdraw the put notice and Secured
                                                                Party shall have the right to pursue all remedies it may have
                                                                under the Credit Documents, the Loan Agreements and the Forbearance
                                                                Agreement singly in sequence or together simultaneously, successively
                                                                and cumulatively.

 

		i.	To
                                                             the maximum extent permitted by applicable law, Secured Party may
                                                             be the purchaser of any or all of the Collateral at any such sale
                                                             and shall be entitled, for the purpose of bidding and making settlement
                                                             or payment of the purchase price for all or any portion of the Collateral
                                                             sold at any such public sale, to use and apply all or any part of
                                                             the Secured Obligations as a credit on account of the purchase price
                                                             of any Collateral payable at such sale. Each purchaser at any such
                                                             sale shall hold the property sold absolutely free from any claim
                                                             or right on the part of Pledgor, and Pledgor hereby waives (to the
                                                             extent permitted by law) all rights of redemption, stay, or appraisal
                                                             that it now has or may at any time in the future have under any rule
                                                             of law or statute now existing or hereafter enacted. Pledgor agrees
                                                             that, to the extent notice of sale shall be required by law, at least
                                                             ten (10) calendar days’ notice to Pledgor of the time and place
                                                             of any public sale or the time after which a private sale is to be
                                                             made shall constitute reasonable notification. Secured Party shall
                                                             not be obligated to make any sale of Collateral regardless of notice
                                                             of sale having been given. Secured Party may adjourn any public or
                                                             private sale from time to time by announcement at the time and place
                                                             fixed therefor, and such sale may, without further notice, be made
                                                             at the time and place to which it was so adjourned. To the maximum
                                                             extent permitted by law, Pledgor hereby waives any claims against
                                                             Secured Party arising because the price at which any Collateral may
                                                             have been sold at such a private sale was less than the price that
                                                             might have been obtained at a public sale, even if Secured Party
                                                             accepts the first offer received and does not offer such Collateral
                                                             to more than one offeree.

 

		ii.	In
                                                              connection with this Section 9(b), Pledgor hereby agrees that any
                                                              sale or other disposition of the Collateral conducted in conformity
                                                              with reasonable commercial practices of banks, insurance companies,
                                                              or other financial institutions in the city and state where Secured
                                                              Party is located in disposing of property similar to the Collateral
                                                              shall be deemed to be commercially reasonable.

 

    	 

    	 

    

 

		10.	Application
                                                                 of Proceeds.

 

Upon
the occurrence and during the continuance of an Event of Default, any cash held by Secured Party as Collateral and all cash Proceeds
received by Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral
pursuant to the exercise by Secured Party of its remedies as a secured creditor as provided in Section 9 shall be applied from
time to time to any part or portion of the indebtedness of Pledgor to Secured Party by Secured Party in Secured Party’s
sole discretion, as provided in the Loan Agreements.

 

		11.	Expenses.

 

To pay and reimburse Secured Party upon demand for all reasonable costs
and expenses (including, without limitation, reasonable attorneys’ fees and expenses) that Secured Party may incur in connection
with (i) the custody, use or preservation of, or the sale of, collection from or other realization upon, any of the Collateral,
including the reasonable expenses of re-taking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing
on the Collateral, (ii) the exercise or enforcement of any rights or remedies granted hereunder, under the Loan Agreement, or
under any of the other Credit Documents or otherwise available to it (whether at law, in equity or otherwise), or (iii) the failure
by Pledgor to perform or observe any of the provisions hereof. The provisions of this Section shall survive the execution and
delivery of this Agreement, the repayment of any of the Secured Obligations, the termination of the commitments of Secured Party
under the Loan Agreement and the termination of this agreement or any other Credit Document.

 

		12.	Duties
                                                                 of Secured Party.

 

The
powers conferred on Secured Party hereunder are solely to protect its interests in the Collateral and shall not impose on it any
duty to exercise such powers. Except as provided in Section 9-207 of the Code, Secured Party shall have no duty with respect to
the Collateral or any responsibility for taking any necessary steps to preserve rights against any Person with respect to any
Collateral.

 

		13.	Choice
                                                                 of Law and Venue; Submission to Jurisdiction; Service of Process.

 

		(a)	THE
                                                                VALIDITY OF THIS AGREEMENT, ITS CONSTRUCTION, INTERPRETATION,
                                                                AND ENFORCEMENT, AND THE RIGHTS OF THE PARTIES HERETO SHALL BE
                                                                DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH
                                                                THE LAWS OF THE STATE OF COLORADO (WITHOUT REFERENCE TO THE CHOICE
                                                                OF LAW PRINCIPLES THEREOF). THE PARTIES AGREE THAT ALL ACTIONS
                                                                OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT SHALL
                                                                BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED
                                                                IN THE COUNTY OF DENVER, STATE OF COLORADO OR, AT THE SOLE OPTION
                                                                OF SECURED PARTY, IN ANY OTHER COURT IN WHICH SECURED PARTY SHALL
                                                                INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT
                                                                MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY.

 

    	 

    	 

    

 

		(b)	PLEDGOR
                                                                HEREBY SUBMITS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY
                                                                AND UNCONDITIONALLY, TO THE JURISDICTION OF THE AFORESAID COURTS
                                                                AND WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY
                                                                RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS
                                                                OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT
                                                                IN ACCORDANCE WITH THIS SECTION.

 

		(c)	NOTHING
                                                                IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT
                                                                OF SECURED PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED
                                                                BY LAW, OR TO PRECLUDE THE ENFORCEMENT BY SECURED PARTY OF ANY
                                                                JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR THE TAKING OF ANY
                                                                ACTION UNDER THIS AGREEMENT TO ENFORCE SAME IN ANY OTHER APPROPRIATE
                                                                FORUM OR JURISDICTION.

 

		14.	Amendments;
                                                                 etc.

 

No
amendment or waiver of any provision of this Agreement nor consent to any departure by Pledgor herefrom shall in any event be
effective unless the same shall be in writing and signed by Secured Party, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given. No failure on the part of Secured Party to exercise,
and no delay in exercising any right under this Agreement, any other Credit Document, or otherwise with respect to any of the
secured Obligations, shall operate as a waiver thereof; nor shall any single or partial exercise of any right under this Agreement,
any other Credit Document, or otherwise with respect to any of the Secured Obligations preclude any other or further exercise
thereof or the exercise of any other right. The remedies provided for in this Agreement or otherwise with respect to any of the
Secured Obligations are cumulative and not exclusive of any remedies provided by law.

 

		15.	Notices.

 

Unless
otherwise specifically provided herein, all notices shall be in writing addressed to the respective party as set forth below;
and may be personally served, faxed, emailed, or sent by overnight courier service or United States mail:

 

	 	If to Pledgor:	Patrick Imeson
	 	 	Elkhorn Goldfields LLC
	 	 	1610 Wynkoop Street, Suite 400
	 	 	Denver, Colorado 80202
	 	 	Patrick.imeson@bdfin.com

 

    	 

    	 

    

 

	 	With copies to:	Steven N. Levine, Esq.
	 	 	Messner & Reeves, LLC 
	 	 	1430 Wynkoop Street, Suite300
	 	 	Denver, CO  80202
	 	 	slevine@messner.com
	 	 	 
	 	If to Secured Party:	Gordon Snyder
	 	 	28 Middle Street, Suite 100
	 	 	Keene, NH 03431
	 	 	 
	 	With copies to:	Barrie Cowan, Attorney and Counselor
	 	 	595 Laidley Street
	 	 	San Francisco, CA 94131
	 	 	cowan@barriecowan.com

 

Any
notice given pursuant to this section shall be deemed to have been given: (a) if delivered in person, when delivered; (b) if delivered
by fax, on the date of transmission if transmitted on a Business Day before 4:00 p.m. at the place of receipt, or, if not, on
the next succeeding Business Day; (c) if delivered by overnight courier, two (2) days after delivery to such courier properly
addressed; or (d) if by United States mail, four (4) Business Days after depositing in the United States mail, with postage prepaid
and properly addressed. Any party hereto may change the address or fax number at which it is to receive notices hereunder by notice
to the other party in writing in the foregoing manner.

 

		16.	Continuing
                                                                 Security Interest.

 

This
Agreement shall create a continuing security interest in the Collateral and shall: (a) remain in full force and effect until the
indefeasible payment in full of the Secured Obligations, including the cash collateralization, expiration, or cancellation of
all Secured Obligations, if any, consisting of letters of credit, and the full and final termination of any commitment to extend
any financial accommodations under the Loan Agreement; (b) be binding upon Pledgor and its successors and assigns; and (c) inure
to the benefit of Secured Party and its successors, transferees, and assigns. Upon the indefeasible payment in full of the Secured
Obligations, including the cash collateralization, expiration, or cancellation of all Secured Obligations, if any, consisting
of letters of credit, and the full and final termination of any commitment to extend any financial accommodations under the Loan
Agreement, the security interests granted herein shall automatically terminate and all rights to the Collateral shall revert to
Pledgor. Upon any such termination, Secured Party will, at Pledgor’s expense, execute and deliver to Pledgor such documents
as Pledgor shall reasonably request to evidence such termination. Such documents shall be prepared by Pledgor and shall be in
form and substance reasonably satisfactory to Secured Party.

 

    	 

    	 

    

 

		17.	Security
                                                                 Interest Absolute.

 

To
the maximum extent permitted by law, all rights of Secured Party, all security interests hereunder, and all obligations of Pledgor
hereunder, shall be absolute and unconditional irrespective of:

 

		(a)	Any
                                                                lack of validity or enforceability of any of the Secured Obligations
                                                                or any other agreement or instrument relating thereto, including
                                                                any of the Transaction Documents;

 

		(b)	Any
                                                                change in the time, manner, or place of payment of, or in any
                                                                other term of, all or any of the Secured Obligations, or any other
                                                                amendment or waiver of or any consent to any departure from any
                                                                of the Credit Documents, or any other agreement or instrument
                                                                relating thereto;

 

		(c)	Any
                                                                exchange, release, or non-perfection of any other collateral,
                                                                or any release or amendment or waiver of or consent to departure
                                                                from any guaranty for all or any of the Secured Obligations; or

 

		(d)	Any
                                                                other circumstances that might otherwise constitute a defense
                                                                available to, or a discharge of, Pledgor.

 

		18.	Headings.

 

Section
and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part
of this Agreement or be given any substantive effect.

 

		19.	Severability.

 

In
case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provision or obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

		20.	Counterparts;
                                                                 Facsimile Execution.

 

This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall
constitute one and the same Agreement. Delivery of an executed counterpart of this Agreement by facsimile shall be equally as
effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this
Agreement by facsimile also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original
executed counterpart shall not affect the validity, enforceability, or binding effect hereof.

 

    	 

    	 

    

 

		21.	Waiver
                                                                 of Marshaling. 

 

Each
of Pledgor and Secured Party acknowledges and agrees that in exercising any rights under or with respect of the Collateral: (a)
Secured Party is under no obligation to marshal any Collateral; (b) it may, in its absolute discretion, realize upon the Collateral
in any order and in any manner it so elects; and (c) may, in its absolute discretion, apply the proceeds of any or all of the
Collateral to the Secured Obligations in any order and in any manner it so elects. Pledgor and Secured Party waive any right to
require the marshaling of any of the Collateral.

 

		22.	Waiver
                                                                 of Jury Trial.

 

PLEDGOR
AND SECURED PARTY HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS,
AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. PLEDGOR AND SECURED PARTY REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION,
A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

[SIGNATURES
ON FOLLOWING PAGE(S)]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, Pledgor and Secured party have caused this Agreement to be duly executed and delivered by their officers thereunto
duly authorized as of the date first written above.

 

PLEDGOR:

Elkhorn Goldfields,
LLC

 

	/s/ Robert Trenaman	 
	By: Robert Trenaman	 
	Title: President	 

 

SECURED
PARTY:

 

Gordon
Snyder, as Administrative Agent

 

	By:	/s/ Gordon Snyder	 
	Title:	Administrative Agent	 

 

    	 

    	 

    

 

Schedule
1

 

Pledged
Interests

 

		 		 	 		 	Number of	 	 	Certificate
	Name of	 	Jurisdiction of	 	 		 	Shares/Units	 	 	Number(s) 
	Issuer	 	Organization	 	 	Type of Interest	 	(if applicable)	 	 	(if any) 
	Eastern Resources, Inc. 	 	Delaware 	 	 	Series A Preferred Shares 	 	10,000,000 	 	 	TO COMEEASTERN RESOURCES, INC.

2012 EQUITY INCENTIVE PLAN

 

1.           PURPOSE.
The Eastern Resources, Inc. 2012 Equity Incentive Plan has two complementary purposes: (a) to attract and retain outstanding individuals
to serve as officers, employees, directors, consultants and advisors to the Company and its Affiliates, and (b) to increase stockholder
value. The Plan will provide participants incentives to increase stockholder value by offering the opportunity to acquire shares
of the Company’s Common Stock or receive monetary payments based on the value of such Common Stock, on the potentially favorable
terms that this Plan provides.

 

2.           EFFECTIVE
DATE. The Plan shall become effective and Awards may be granted on and after April 6, 2012 (the “Effective Date”),
subject to approval by the stockholders of the Company within twelve (12) months of the Effective Date. Any Awards granted under
the Plan prior to such stockholder approval shall be conditioned on such approval.

 

3.           DEFINITIONS.
Capitalized terms used in this Plan have the following meanings:

 

(a)          “Affiliate”
means any entity that, directly or through one or more intermediaries, is controlled by, controls, or is under common control with,
the Company within the meaning of Code Sections 414(b) or (c), provided that, in applying such provisions, the phrase “at
least fifty percent (50%)” shall be used in place of “at least eighty percent (80%)” each place it appears therein.

 

(b)          “Award”
means a grant of Options (as defined below), Stock Appreciation Rights (as defined in Section 3(w) hereof), Performance Shares
(as defined in Section 3(p) hereof), Restricted Stock (as defined in Section 3(s) hereof), or Restricted Stock Units (as defined
in Section 3(t) hereof).

 

(c)          “Bankruptcy”
shall mean (i) the filing of a voluntary petition under any bankruptcy or insolvency law, or a petition for the appointment of
a receiver or the making of an assignment for the benefit of creditors, with respect to the Participant, or (ii) the Participant
being subjected involuntarily to such a petition or assignment or to an attachment or other legal or equitable interest with respect
to the Participant’s assets, which involuntary petition or assignment or attachment is not discharged within 60 days after
its date, and (iii) the Participant being subject to a transfer of its Issued Shares by operation of law (including by divorce,
even if not insolvent), except by reason of death.

 

(d)          “Board”
means the Board of Directors of the Company.

 

(e)          “Change
of Control” shall be deemed to have occurred as of the first day that any one or more of the following conditions is satisfied,
including, but not limited to, the signing of documents by all parties and approval by all regulatory agencies, if required:

 

(i)          The
stockholders approve a plan of complete liquidation or dissolution of the Company; or

 

    	 

    	 

    

 

(ii)         The
consummation of (A) an agreement for the sale or disposition of all or substantially all of the Company’s assets (other than
to an Excluded Person (as defined below)), or (B) a merger, consolidation or reorganization of the Company with or involving any
other corporation, other than a merger, consolidation or reorganization that would result in the holders of voting securities of
the Company outstanding immediately prior thereto continuing to hold (either by remaining outstanding or by being converted into
voting securities of the surviving entity), at least fifty percent (50%) of the combined voting power of the voting securities
of the Company (or such other surviving entity) outstanding immediately after such merger, consolidation or reorganization.

 

An Excluded Person means: (i) the Company
or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under any employee benefit plan of the Company or
any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities or (iv) a
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership
of stock in the Company.

 

Notwithstanding the foregoing, with respect
to an Award that is considered deferred compensation subject to Code Section 409A, if the definition of “Change of Control”
results in the payment of such Award, then such definition shall be amended to the minimum extent necessary, if at all, so that
the definition satisfies the requirements of a change of control under Code Section 409A.

 

(f)          “Code”
means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes any successor provision
and the regulations promulgated under such provision.

 

(g)          “Committee”
means the Compensation Committee of the Board (or a successor committee with similar authority) or if no such committee is named
by the Board, than it shall mean the Board.

 

(h)          “Common
Stock” means the Common Stock of the Company, par value $0.001 per share.

 

(i)          “Company”
means Eastern Resources, Inc., a Delaware corporation, or any successor thereto.

 

(j)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time. Any reference to a specific provision of the
Exchange Act shall be deemed to include any successor provision thereto.

 

(k)          “Fair
Market Value” means, per Share on a particular date, the value as determined by the Committee using a reasonable valuation
method within the meaning of Code Section 409A, based on all information in the Company’s possession at such time, or if
applicable, the value as determined by an independent appraiser selected by the Board or Committee.

 

(l)          “Issued
Shares” means, collectively, all outstanding Shares issued pursuant to an Award and all Option Shares.

 

(m)          “Option”
means the right to purchase Shares at a stated price upon and during a specified time. “Options” may either be “incentive
stock options” which meet the requirements of Code Section 422, or “nonqualified stock options” which do not
meet the requirements of Code Section 422.

 

    	2

    	 

    

 

(n)          “Option
Shares” means outstanding Shares that were issued to a Participant upon the exercise of an Option.

 

(o)          “Participant”
means an officer or other employee of the Company or its Affiliates, or an individual that the Company or an Affiliate has engaged
to become an officer or employee, or a consultant or advisor who provides services to the Company or its Affiliates, including
a non-employee director of the Board, whom the Committee designates to receive an Award.

 

(p)          “Performance
Shares” means the right to receive Shares to the extent the Company, Subsidiary, Affiliate or other business unit and/or
Participant achieves certain goals that the Committee establishes over a period of time the Committee designates.

 

(q)          “Permitted
Transferee” means, in connection with a transfer made for bona fide estate planning purposes, either during a Participant’s
lifetime or on death by will or intestacy, to his or her spouse, child (natural or adopted), or any other direct lineal descendant
of such Participant (or his or her spouse) (all of the foregoing collectively referred to as “family members”), or
any other relative approved unanimously by the Board of Directors of the Company, or any custodian or trustee of any trust, partnership
or limited liability company for the benefit of, or the ownership interests of which are owned wholly by, such Participant or any
such family members.

 

(r)          “Plan”
means this Eastern Resources, Inc. 2012 Equity Incentive Plan, as amended from time to time.

 

(s)          “Restricted
Stock” means Shares that are subject to a risk of forfeiture and/or restrictions on transfer (including but not limited to
stock grants with the recipient having the right to make an election under Section 83(b) of the Code), which may lapse upon the
achievement or partial achievement of performance goals during a specified period and/or upon the completion of a period of service
or upon the occurrence of other events, as determined by the Committee.

 

(t)          “Restricted
Stock Unit” means the right to receive a Share, or a cash payment, the amount of which is equal to the Fair Market Value
of a Share, which is subject to a risk of forfeiture which may lapse upon the achievement or partial achievement of performance
goals during a specified period and/or upon the completion of a period of service or upon the occurrence of other events, as determined
by the Committee.

 

(u)          “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

(v)         “Share”
means a share of Common Stock.

 

(w)          “Stock
Appreciation Right” or “SAR” means the right of a Participant to receive cash, and/or Shares with a Fair Market
Value, equal to the excess of the Fair Market Value of a Share over the grant price.

 

    	3

    	 

    

 

(x)          “Subsidiary”
means any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations (other than the
last corporation in the chain) owns stock possessing more than fifty percent (50%) of the total combined voting power of all classes
of stock in one of the other corporations in the chain.

 

(y)          “10%
Owner-Employee” means an employee who, at the time an incentive stock option is granted, owns (directly or indirectly, within
the meaning of Code Section 424(d)) more than ten percent (10%) of the total combined voting power of all classes of stock of the
Company or of any Subsidiary.

 

4.           ADMINISTRATION.

 

(a)          Committee
Administration. The Committee has full authority to administer this Plan, including the authority to (i) interpret the provisions
of this Plan, (ii) prescribe, amend and rescind rules and regulations relating to this Plan, (iii) correct any defect, supply any
omission, or reconcile any inconsistency in any Award or agreement covering an Award in the manner and to the extent it deems desirable
to carry this Plan into effect, and (iv) make all other determinations necessary or advisable for the administration of this Plan.
All actions or determinations of the Committee are made in its sole discretion and will be final and binding on any person with
an interest therein. If at any time the Committee is not in existence, the Board shall administer the Plan and references to the
Committee in the Plan shall mean the Board.

 

(b)          Delegation
to Committees or Officers. To the extent applicable law permits, the Board may delegate to another committee of the Board or
to one or more officers of the Company, or the Committee may delegate to a sub-committee, any or all of the authority and responsibility
of the Committee. If the Board or Committee has made such a delegation, then all references to the Committee in this Plan include
such committee, sub-committee or one or more officers to the extent of such delegation.

 

(c)          No
Liability. No member of the Committee or the Board, and no individual or officer to whom a delegation under subsection (b)
has been made, will be liable for any act done, or determination made, by the individual in good faith with respect to the Plan
or any Award. The Company will indemnify and hold harmless such individual to the maximum extent that the law and the Company’s
bylaws permit.

 

5.           DISCRETIONARY
GRANTS OF AWARDS. Subject to the terms of this Plan, the Committee has full power and authority to: (a) designate from
time to time the Participants to receive Awards under this Plan; (b) determine the type or types of Awards to be granted to each
Participant; (c) determine the number of Shares with respect to which an Award relates; and (d) determine any terms and conditions
of any Award including but not limited to permitting the delivery to the Company of Shares or the relinquishment of an appropriate
number of vested Shares under an exercisable Option in satisfaction of part of all of the exercise price of, or withholding taxes
with respect to, an Award. Awards may be granted either alone or in addition to, in tandem with, or in substitution for any other
Award (or any other award granted under another plan of the Company or any Affiliate). The Committee’s designation of a Participant
in any year will not require the Committee to designate such person to receive an Award in any other year.

 

    	4

    	 

    

 

6.           SHARES
RESERVED UNDER THIS PLAN.

 

(a)          Plan
Reserve. An aggregate of ten million (10,000,000) Shares are reserved for issuance under this Plan, all of which may be issued
as any form of Award; provided, however, that Awards for a maximum of Five Million Five Hundred Fifty Thousand (5,550,000) Shares
may be granted during the first 12 months following the Effective Date of this Plan.

 

(b)          Replenishment
of Shares Under this Plan. If an Award lapses, expires, terminates or is cancelled without the issuance of Shares or payment
of cash under the Award, then the Shares subject to or reserved for in respect of such Award, or the Shares to which such Award
relates, may again be used for new Awards as determined under subsection (a), including issuance pursuant to incentive stock options.
If Shares are delivered to (or withheld by) the Company in payment of the exercise price or withholding taxes of an Award, then
such Shares may be used for new Awards under this Plan as determined under subsection (a), including issuance pursuant to incentive
stock options. If Shares are issued under any Award and the Company subsequently reacquires them pursuant to rights reserved upon
the issuance of the Shares, then such Shares may be used for new Awards under this Plan as determined under subsection (a), but
excluding issuance pursuant to incentive stock options.

 

7.           OPTIONS.
Subject to the terms of this Plan, the Committee will determine all terms and conditions of each Option, including but not limited
to:

 

(a)          Whether
the Option is an incentive stock option or a nonqualified stock option; provided that in the case of an incentive stock option,
if the aggregate Fair Market Value (determined at the time of grant) of the Shares with respect to which such option and all other
incentive stock options issued under this Plan (and under all other incentive stock option plans of the Company or any Affiliate
that is required to be included under Code Section 422) are first exercisable by the Participant during any calendar year exceeds
$100,000, such Option automatically shall be treated as a nonqualified stock option to the extent this limit is exceeded. Only
employees of the Company or a Subsidiary are eligible to be granted incentive stock options;

 

(b)          The
number of Shares subject to the Option;

 

(c)          The
exercise price per Share, which may not be less than the Fair Market Value of a Share as determined on the date of grant; provided
that an incentive stock option granted to a 10% Owner-Employee must have an exercise price that is at least one hundred ten percent
(110%) of the Fair Market Value of a Share on the date of grant;

 

(d)          The
terms and conditions of exercise; and

 

(e)          The
termination date, except that each Option must terminate no later than the tenth (10th) anniversary of the date of grant and each
incentive stock option granted to any 10% Owner-Employee must terminate no later than the fifth (5th) anniversary of the date of
grant.

 

In all other respects,
the terms of any incentive stock option should comply with the provisions of Code Section 422 except to the extent the Committee
determines otherwise.

 

    	5

    	 

    

 

8.           STOCK
APPRECIATION RIGHTS. Subject to the terms of this Plan, the Committee will determine all terms and conditions of each SAR,
including but not limited to:

 

(a)          The
number of Shares to which the SAR relates;

 

(b)          The
grant price, provided that the grant price shall not be less than the Fair Market Value of the Shares subject to the SAR as determined
on the date of grant;

 

(c)          The
terms and conditions of exercise or maturity;

 

(d)          The
term, provided that an SAR must terminate no later than the tenth (10th) anniversary of the date of grant; and

 

(e)          Whether
the SAR will be settled in cash, Shares or a combination thereof.

 

9.           PERFORMANCE
SHARE AWARDS. Subject to the terms of this Plan, the Committee will determine all terms and conditions of each Performance
Share Award, including but not limited to:

 

(a)          The
number of Shares to which the Performance Share Award relates;

 

(b)          The
terms and conditions of each Award, including, without limitation, the selection of the performance goals that must be achieved
for the Participant to realize all or a portion of the benefit provided under the Award; and

 

(c)          Whether
all or a portion of the Shares subject to the Award will be issued to the Participant, without regard to whether the performance
goals have been attained, in the event of the Participant’s death, disability, retirement or other circumstance.

 

10.         RESTRICTED
STOCK AND RESTRICTED STOCK UNIT AWARDS. Subject to the terms of this Plan, the Committee will determine all terms and conditions
of each award of Restricted Stock or Restricted Stock Units, including but not limited to:

 

(a)          The
number of Shares or Restricted Stock Units to which such Award relates;

 

(b)          The
period of time over which, and/or the criteria or conditions that must be satisfied so that, the risk of forfeiture and/or restrictions
on transfer imposed on the Restricted Stock or Restricted Stock Units will lapse;

 

(c)          Whether
all or a portion of the Restricted Shares or Restricted Stock Units will be released from a right of repurchase and/or be paid
to the Participant in the event of the Participant’s death, disability, retirement or other circumstance;

 

(d)          With
respect to awards of Restricted Stock, the manner of registration of certificates for such Shares, and whether to hold such Shares
in escrow pending lapse of the risk of forfeiture, right of repurchase and/or restrictions on transfer or to issue such Shares
with an appropriate legend referring to such restrictions;

 

    	6

    	 

    

 

(e)          With
respect to awards of Restricted Stock, whether dividends paid with respect to such Shares will be immediately paid or held in escrow
or otherwise deferred and whether such dividends shall be subject to the same terms and conditions as the Award to which they relate;
and

 

(f)          With
respect to awards of Restricted Stock Units, whether to credit dividend equivalent units equal to the amount of dividends paid
on a Share and whether such dividend equivalent units shall be subject to the same terms and conditions as the Award to which they
relate.

 

11.         TRANSFERABILITY.
Except as set forth in Section 15 hereof, each award granted under this plan is not transferable other than by will or the laws
of descent and distribution, or to a revocable trust, or as permitted by Rule 701 of the Securities Act.

 

12.         TERMINATION
AND AMENDMENT.

 

(a)          Term.
Subject to the right of the Board or Committee to terminate the Plan earlier pursuant to Section 12(b), the Plan shall terminate
on, and no Awards may be granted after the tenth (10th) anniversary of the Plan’s Effective Date.

 

(b)          Termination
and Amendment. The Board or Committee may amend, alter, suspend, discontinue or terminate this Plan at any time, provided that:

 

(i)          the
Board must approve any amendment of this Plan to the extent the Company determines such approval is required by: (a) action of
the Board, (b) applicable corporate law, or (c) any other applicable law or rule of a self-regulatory organization;

 

(ii)         stockholders
must approve any of the following Plan amendments: (a) an amendment to materially increase any number of Shares specified in Section
6(a) (except as permitted by Section 14(a)) or expand the class of individuals eligible to receive an Award to the extent required
by the Code, the Company’s bylaws or any other applicable law, (b) any other amendment if required by applicable law or the
rules of any self-regulatory organization, or (c) an amendment that would diminish the protections afforded by Section 12(e); provided,
that such stockholder approval may be obtained within 12 months of the approval of such amendment by the Board or Committee.

 

(c)          Amendment,
Modification or Cancellation of Awards. Except as provided in subsection (e) and subject to the restrictions of this Plan,
the Committee may modify or amend an Award or waive any restrictions or conditions applicable to an Award (including relating to
the exercise, vesting or payment thereof), and the Committee may modify the terms and conditions applicable to any Award (including
the terms of the Plan), and the Committee may cancel any Award, provided that the Participant (or any other person as may then
have an interest in such Award as a result of the Participant’s death or the transfer of an Award) must consent in writing
if any such action would adversely affect the rights of the Participant (or other interested party) under such Award. Notwithstanding
the foregoing, the Committee need not obtain Participant (or other interested party) consent for the amendment, modification or
cancellation of an Award pursuant to the provisions of Section 14(a), or the amendment or modification of an Award to the extent
deemed necessary to comply with any applicable law, the listing requirements of any principal securities exchange or market on
which the Shares are then traded, or to preserve favorable accounting treatment of any Award for the Company.

 

    	7

    	 

    

 

(d)          Survival
of Committee Authority and Awards. Notwithstanding the foregoing, the authority of the Committee to administer this Plan and
modify or amend an Award, and the authority of the Board or Committee to amend this Plan, shall extend beyond the date of this
Plan’s termination. In addition, termination of this Plan will not affect the rights of Participants with respect to Awards
previously granted to them, and all unexpired Awards will continue in full force and effect after termination of this Plan except
as they may lapse or be terminated by their own terms and conditions.

 

(e)          Repricing
Prohibited. Notwithstanding anything in this Plan to the contrary, neither the Committee nor any other person may decrease
the exercise price of any Option or the grant price of any SAR nor take any action that would result in a deemed decrease of the
exercise price or grant price of an Option or SAR under Code Section 409A, after the date of grant, except in accordance with Section
1.409A-1(b)(5)(v)(D) of the Treasury Regulations (26 C.F.R.), or in connection with a transaction which is considered the grant
of a new Option or SAR for purposes of Section 409A of the Code, provided that the new exercise price or grant price is not less
than the Fair Market Value of a Share on the new grant date.

 

(f)          Foreign
Participation. To assure the viability of Awards granted to Participants employed or residing in foreign countries, the Committee
may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy
or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of this
Plan as it determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions that
the Committee approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other
country.

 

13.         TAXES.

 

(a)          Withholding.
In the event the Company or any Affiliate is required to withhold any foreign, Federal, state or local taxes or other amounts in
respect of any income recognized by a Participant as a result of the grant, vesting, payment or settlement of an Award or disposition
of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from any payments of any kind
otherwise due the Participant cash, or with the consent of the Committee, Shares otherwise deliverable or vesting under an Award,
to satisfy such tax obligations. Alternatively, the Company may require such Participant to pay to the Company, in cash, promptly
on demand, or make other arrangements satisfactory to the Company regarding the payment to the Company of the aggregate amount
of any such taxes and other amounts required to be withheld. If Shares are deliverable upon exercise or payment of an Award, the
Committee may permit a Participant to satisfy all or a portion of the foreign, Federal, state and local withholding tax obligations
arising in connection with such Award by electing to (a) have the Company withhold Shares otherwise issuable under the Award, (b)
tender back Shares received in connection with such Award, or (c) deliver other previously owned Shares; provided that the amount
to be withheld may not exceed the total minimum foreign, federal, state and local tax withholding obligations associated with the
transaction to the extent needed for the Company to avoid an accounting charge. If an election is provided, the election must be
made on or before the date as of which the amount of tax to be withheld is determined and otherwise as the Company requires. In
any case, the Company may defer making payment or delivery under any Award if any such tax may be pending unless and until indemnified
to its satisfaction.

 

    	8

    	 

    

 

(b)          No
Guarantee of Tax Treatment. Notwithstanding any provisions of the Plan, the Company does not guarantee to any Participant or
any other person with an interest in an Award that any Award intended to be exempt from Code Section 409A shall be so exempt, nor
that any Award intended to comply with Code Section 409A shall so comply, nor that any Award designated as an incentive stock option
within the meaning of Code Section 422 qualifies as such, and neither the Company nor any Affiliate shall indemnify, defend or
hold harmless any individual with respect to the tax consequences of any such failure.

 

14.         ADJUSTMENT
PROVISIONS; CHANGE OF CONTROL.

 

(a)          Adjustment
of Shares. If (i) the Company shall at any time be involved in a merger or other transaction in which the Shares are changed
or exchanged; (ii) the Company shall subdivide or combine the Shares or the Company shall declare a dividend payable in Shares,
other securities or other property; (iii) the Company shall effect a cash dividend the amount of which, on a per Share basis, exceeds
ten percent (10%) of the Fair Market Value of a Share at the time the dividend is declared, or the Company shall effect any other
dividend or other distribution on the Shares in the form of cash, or a repurchase of Shares, that the Committee determines by resolution
is special or extraordinary in nature or that is in connection with a transaction that is a recapitalization or reorganization
involving the Shares; or (iv) any other event shall occur, which, in the case of this subsection (iv), in the judgment of the Committee
necessitates an adjustment to prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under this Plan, then, in each case, the Committee shall, in such manner as it may deem equitable, adjust any or all of: (w) the
number and type of Shares subject to this Plan (including the number and type of Shares that may be issued pursuant to incentive
stock options), (x) the number and type of Shares subject to outstanding Awards, (y) the grant, purchase, or exercise price with
respect to any Award, and (z) the performance goals established under any Award.

 

(i)          In
any such case, the Committee may also make provision for a cash payment, in an amount determined by the Committee, to the holder
of an outstanding Award in exchange for the cancellation of all or a portion of the Award (without the consent of the holder of
an Award), effective at such time as the Committee specifies (which may be the time such transaction or event is effective); provided
that any such adjustment to an Award that is exempt from Code Section 409A shall be made in a manner that permits the Award to
continue to be so exempt, and any adjustment to an Award that is subject to Code Section 409A shall be made in a manner that complies
with the provisions thereof. However, with respect to Awards of incentive stock options, no such adjustment may be authorized to
the extent that such authority would cause this Plan to violate Code Section 422(b). Further, the number of Shares subject to any
Award payable or denominated in Shares must always be a whole number.

 

(ii)         Without
limitation, in the event of any reorganization, merger, consolidation, combination or other similar corporate transaction or event,
whether or not constituting a Change of Control, other than any such transaction in which the Company is the continuing corporation
and in which the outstanding Common Stock is not being converted into or exchanged for different securities, cash or other property,
or any combination thereof, the Committee may provide that awards, without limitation, will be assumed by the surviving corporation
or its parent, will have the vesting accelerated or will be cancelled with or without consideration, in all cases without the consent
of the Participant.

 

    	9

    	 

    

 

(iii)        Notwithstanding
the foregoing, in the case of a stock dividend (other than a stock dividend declared in lieu of an ordinary cash dividend) or subdivision
or combination of the Shares (including a reverse stock split), adjustments contemplated by this subsection that are proportionate
shall nevertheless automatically be made as of the date of such stock dividend or subdivision or combination of the Shares.

 

(b)          Issuance
or Assumption. Notwithstanding any other provision of this Plan, and without affecting the number of Shares otherwise reserved
or available under this Plan, in connection with any merger, consolidation, acquisition of property or stock, or reorganization,
the Committee may authorize the cancellation, with or without consideration, issuance, assumption or acceleration of vesting of
awards upon such terms and conditions as it may deem appropriate, in all cases without the consent of the Participant.

 

(c)          Change
of Control. Upon a Change of Control, the Committee may, in its discretion, determine that any or all outstanding Awards held
by Participants who are then in the employ or service of the Company or any Affiliate shall vest or be deemed to have been earned
in full, and:

 

(i)          If
the successor or surviving corporation (or parent thereof) so agrees, all outstanding Awards shall be assumed, or replaced with
the same type of award with similar terms and conditions, by the successor or surviving corporation (or parent thereof) in the
Change of Control. If applicable, each Award which is assumed by the successor or surviving corporation (or parent thereof) shall
be appropriately adjusted, immediately after such Change of Control, to apply to the number and class of securities which would
have been issuable to the Participant upon the consummation of such Change of Control had the Award been exercised or vested immediately
prior to such Change of Control, and such other appropriate adjustments in the terms and conditions of the Award shall be made.

 

(ii)         If
the provisions of paragraph (i) do not apply, then all outstanding Awards shall be cancelled as of the date of the Change of Control
and, at the option of the Committee, may be exchanged for a payment in cash and/or Shares (which may include shares or other securities
of any surviving or successor entity or the purchasing entity or any parent thereof) equal to:

 

(1)         In
the case of an Option or SAR, the excess of the Fair Market Value of the Shares on the date of the Change of Control covered by
the vested portion of the Option or SAR that has not been exercised over the exercise or grant price of such Shares under the Award;

 

    	10

    	 

    

 

(2)         In
the case of Restricted Stock Units, the Fair Market Value of a Share on the date of the Change of Control multiplied by the number
of vested units, unless otherwise provided in the Award agreement and subject to the repurchase right set forth in Section 15 hereof;
and

 

(3)         In
the case of a Performance Share Award, the Fair Market Value of a Share on the date of the Change of Control multiplied by the
number of earned Shares.

 

(d)          Parachute
Payment Limitation.

 

(i)          Except
as may be set forth in a written agreement by and between the Company and the holder of an Award, in the event that the Company’s
auditors determine that any payment or transfer by the Company under the Plan to or for the benefit of a Participant (a “Payment”)
would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute
payments” in Code Section 280G, then the aggregate present value of all Payments shall be reduced (but not below zero) to
the Reduced Amount (defined herein). For purposes of this Section 14(d), the “Reduced Amount” shall be the amount,
expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible
by the Company because of Code Section 280G.

 

(ii)         If
the Company’s auditors determine that any Payment would be nondeductible by the Company because of Code Section 280G, then
the Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and of the
Reduced Amount, and the Participant may then elect, in his or her sole discretion, which and how much of the Payments shall be
eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and
shall advise the Company in writing of his or her election within ten (10) days of receipt of notice. If no such election is made
by the Participant within such ten (10) day period, then the Company may elect which and how much of the Payments shall be eliminated
or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall notify
the Participant promptly of such election. For purposes of this Section 14(d), present value shall be determined in accordance
with Code Section 280G(d)(4). All determinations made by the Company’s auditors under this Section 14(d) shall be binding
upon the Company and the Participant and shall be made within sixty (60) days of the date when a Payment becomes payable or transferable.
As promptly as practicable following such determination and the elections hereunder, the Company shall pay or transfer to or for
the benefit of the Participant such amounts as are then due to him or her under the Plan and shall promptly pay or transfer to
or for the benefit of the Participant in the future such amounts as become due to him or her under the Plan.

 

    	11

    	 

    

 

(iii)        Except
to the extent such payment was made in connection with a Change of Control, as a result of uncertainty in the application of Code
Section 280G at the time of an initial determination by the Company’s auditors hereunder, it is possible that Payments will
have been made by the Company that should not have been made (an “Overpayment”) or that additional Payments that will
not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation
of the Reduced Amount hereunder. In the event that the Company’s auditors, based upon the assertion of a deficiency by the
Internal Revenue Service against the Company or the Participant that the auditors believe has a high probability of success, determine
that an Overpayment has been made, such Overpayment shall be treated for all purposes as a loan to the Participant which he or
she shall repay to the Company, together with interest at the applicable federal rate provided in Code Section 7872(f)(2); provided,
however, that no amount shall be payable by the Participant to the Company if and to the extent that such payment would not reduce
the amount subject to taxation under Code Section 4999. In the event that the auditors determine that an Underpayment has occurred,
such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Participant, together with
interest at the applicable federal rate provided in Code Section 7872(f)(2).

 

(iv)        For
purposes of this Section 14(d), the term “Company” shall include affiliated corporations to the extent determined by
the auditors in accordance with Code Section 280G(d)(5).

 

15.         STOCK
TRANSFER RESTRICTIONS.

 

(a)          Restriction
on Transfer of Options. No Option shall be transferable by the Participant otherwise than by will or by the laws of descent
and distribution and all Options shall be exercisable, during the Participant’s lifetime, only by the Participant, or by
the Participant’s legal representative or guardian in the event of the Participant’s incapacity. The Participant may
elect to designate a beneficiary by providing written notice of the name of such beneficiary to the Company, and may revoke or
change such designation at any time by filing written notice of revocation or change with the Company, and any such beneficiary
may exercise the Participant’s Option in the event of the Participant’s death to the extent provided herein. If the
Participant does not designate a beneficiary, or if the designated beneficiary predeceases the Participant, the legal representative
of the Participant may exercise the Option in the event of the Participant’s death to the extent provided herein. Notwithstanding
the foregoing, the Committee, in its sole discretion, may provide in the Award agreement regarding a given Option that the Participant
may transfer, without consideration for the transfer, his or her Options to members of his or her immediate family, to trusts for
the benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee
agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Option.

 

(b)          Issued
Shares. No Issued Shares shall be sold, assigned, transferred, pledged, hypothecated, given away or in any other manner disposed
of or encumbered, whether voluntarily or by operation of law, unless such transfer is in compliance with the terms of the applicable
Award, all applicable securities laws (including, without limitation, the Securities Act and the Exchange Act), and with the terms
and conditions of this Section 15. In connection with any proposed transfer, the Committee may require the transferor to provide
at the transferor’s own expense an opinion of counsel to the transferor and the Company, satisfactory to the Committee, that
such transfer is in compliance with all foreign, federal and state securities laws (including, without limitation, the Securities
Act). Any attempted disposition of Issued Shares not in accordance with the terms and conditions of this Section 15 shall be null
and void, and the Company shall not reflect on its records any change in record ownership of any Issued Shares as a result of any
such disposition, shall otherwise refuse to recognize any such disposition and shall not in any way give effect to any such disposition
of Issued Shares.

 

    	12

    	 

    

 

(c)          Legends.
The Company may cause a legend or legends to be put on any certificates for shares to make appropriate references to any applicable
legal restrictions on transfer.

 

(d)          Adjustments
for Changes in Capital Structure. If, as a result of any reorganization, recapitalization, reclassification, stock dividend,
stock split, reverse stock split or other similar change in the outstanding Shares of the Company, the outstanding Shares are increased
or decreased or are exchanged for a different number or kind of shares of the Company’s stock, the restrictions contained
in this Section 15 shall apply with equal force to additional and/or substitute securities, if any, received by Participant in
exchange for, or by virtue of his or her ownership of, Issued Shares.

 

16.         MISCELLANEOUS.

 

(a)          Other
Terms and Conditions. The grant of any Award under this Plan may also be subject to other provisions (whether or not applicable
to the Award awarded to any other Participant) as the Committee determines appropriate, subject to any limitations imposed in the
Plan.

 

(b)          Code
Section 409A. The provisions of Code Section 409A are incorporated herein by reference to the extent necessary for any Award
that is subject to Code Section 409A to comply therewith.

 

(c)          Employment
or Service. The issuance of an Award shall not confer upon a Participant any right with respect to continued employment or
service with the Company or any Affiliate, or the right to continue as a consultant or director. Unless determined otherwise by
the Committee, for purposes of the Plan and all Awards, the following rules shall apply:

 

(i)          a
Participant who transfers employment between the Company and any Affiliate, or between Affiliates, will not be considered to have
terminated employment;

 

(ii)         a
Participant who ceases to be a consultant, advisor or non-employee director because he or she becomes an employee of the Company
or an Affiliate shall not be considered to have ceased service with respect to any Award until such Participant’s termination
of employment with the Company and its Affiliates;

 

(iii)        a
Participant who ceases to be employed by the Company or an Affiliate of the Company and immediately thereafter becomes a non-employee
director of the Company or any Affiliate, or a consultant to the Company or any Affiliate, shall not be considered to have terminated
employment until such Participant’s service as a director of, or consultant to, the Company and its Affiliates has ceased;
and

 

(iv)        a
Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate
of the Company.

 

    	13

    	 

    

 

Notwithstanding the foregoing, with respect
to an Award subject to Code Section 409A, a Participant shall be considered to have terminated employment (where termination of
employment triggers payment of the Award) upon the date of his separation from service within the meaning of Code Section 409A.

 

(d)          No
Fractional Shares. No fractional Shares or other securities may be issued or delivered pursuant to this Plan, and the Committee
may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional Shares or
other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities
will be canceled, terminated or otherwise eliminated.

 

(e)          Unfunded
Plan. This Plan is unfunded and does not create, and should not be construed to create, a trust or separate fund with respect
to this Plan’s benefits. This Plan does not establish any fiduciary relationship between the Company and any Participant.
To the extent any person holds any rights by virtue of an Award granted under this Plan, such rights are no greater than the rights
of the Company’s general unsecured creditors.

 

(f)          Requirements
of Law. The granting of Awards under this Plan and the issuance of Shares in connection with an Award are subject to all applicable
laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required.
Notwithstanding any other provision of this Plan or any award agreement, the Company has no liability to deliver any Shares under
this Plan or make any payment unless such delivery or payment would comply with all applicable laws and the applicable requirements
of any securities exchange or similar entity. In such event, the Company may substitute cash for any Share(s) otherwise deliverable
hereunder without the consent of the Participant or any other person.

 

(g)          Governing
Law. This Plan, and all agreements under this Plan, shall be construed in accordance with and governed by the laws of the State
of Colorado, without reference to any conflict of law principles. Any legal action or proceeding with respect to this Plan, any
Award or any award agreement, or for recognition and enforcement of any judgment in respect of this Plan, any Award or any award
agreement, may only be brought and determined in a court sitting in the State of Colorado, Denver County.

 

(h)          Limitations
on Actions. Any legal action or proceeding with respect to this Plan, any Award or any Award agreement, must be brought within
one year (365 days) after the day the complaining party first knew or should have known of the events giving rise to the complaint.

 

(i)          Construction.
Whenever any words are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases
where they would so apply; and wherever any words are used in the singular or plural, they shall be construed as though they were
used in the plural or singular, as the case may be, in all cases where they would so apply. Titles of sections are for general
information only, and the Plan is not to be construed with reference to such titles.

 

    	14

    	 

    

 

(j)          Severability.
If any provision of this Plan or any award agreement or any Award (i) is or becomes or is deemed to be invalid, illegal or unenforceable
in any jurisdiction, or as to any person or Award, or (ii) would disqualify this Plan, any award agreement or any Award, then such
provision should be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended
without, in the determination of the Committee, materially altering the intent of this Plan, award agreement or Award, then such
provision should be stricken as to such jurisdiction, person or Award, and the remainder of this Plan, such award agreement and
such Award will remain in full force and effect.

 

CERTIFICATION

 

On behalf of the Company, the undersigned
hereby certifies that this Plan has been approved by the stockholders of the Company as of February 29, 2012.

 

	 	EASTERN RESOURCES, INC.

 

	 	By:	/s/ Thomas H. Hanna, Jr.
	 	 	Name:  Thomas H. Hanna, Jr.
	 	 	Title:  President, Treasurer and Director

 

    	15

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