Document:

EXECUTION COPY

 

ADMINISTRATION AGREEMENT

between

GE EQUIPMENT TRANSPORTATION LLC, SERIES 2012-2,

as Issuer

and

GENERAL ELECTRIC CAPITAL CORPORATION,

as Administrator

 

Dated as of October 24, 2012

  

    	 	 	Administration Agreement

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	1.	Duties of the Administrator	2
	 	 	 
	2.	Records	6
	 	 	 
	3.	Compensation	6
	 	 	 
	4.	Additional Information to be Furnished to the Issuer	6
	 	 	 
	5.	Independence of the Administrator	6
	 	 	 
	6.	No Joint Venture	7
	 	 	 
	7.	Other Activities of the Administrator	7
	 	 	 
	8.	Term of Agreement; Resignation and Removal of the Administrator	7
	 	 	 
	9.	Action upon Termination, Resignation or Removal	8
	 	 	 
	10.	Notices	9
	 	 	 
	11.	Amendments	9
	 	 	 
	12.	Successors and Assigns	9
	 	 	 
	13.	Governing Law	10
	 	 	 
	14.	Other Interpretive Matters	11
	 	 	 
	15.	Headings	11
	 	 	 
	16.	Counterparts	11
	 	 	 
	17.	Severability	12
	 	 	 
	18.	Not Applicable to the Administrator in Other Capacities	12
	 	 	 
	19.	Limitation of Liability of the Managing Member	12
	 	 	 
	20.	Indemnification	12

 

    	 	-i-	Administration Agreement

    	 

    

 

 

ADMINISTRATION AGREEMENT
dated as of October 24, 2012, between GE Equipment Transportation LLC, Series 2012-2, a Delaware limited liability company
(the “Issuer”), and General Electric Capital Corporation, a Delaware corporation, as administrator (the
“Administrator”).

 

RECITALS

 

WHEREAS,
the Issuer is issuing 0.26% Class A-1 Notes, 0.47% Class A-2 Notes, 0.62% Class A-3 Notes, 0.81%, Class A-4 Notes (together with
the Class A-3 Notes, the Class A-2 Notes and the Class A-1 Notes, the “Class A Notes”), 0.97% Class B Notes
(the “Class B Notes”), and 1.31% Class C Notes (the “Class C Notes,” and together with the
Class A Notes and the Class B Notes, the “Notes”), pursuant to the Indenture, dated as of the date hereof (as
amended and supplemented from time to time in accordance with the provisions thereof, the “Indenture”), between
the Issuer and the Indenture Trustee (capitalized terms used herein and not otherwise defined herein are defined in the Indenture);

 

WHEREAS,
the Issuer has entered into certain agreements in connection with the issuance of the Notes and of certain beneficial ownership
interests of the Issuer, including: (i) a Loan Purchase and Sale Agreement, dated as of the date hereof (as amended and supplemented
from time to time, the “Purchase and Sale Agreement”), between the Issuer and CEF Equipment Holding L.L.C.,
a Delaware limited liability company, as seller (the “Transferor”), (ii) the Indenture and (iii) a Servicing
Agreement, dated as of the date hereof (the “Servicing Agreement), between the Issuer and General Electric Capital
Corporation, as servicer (in such capacity, the “Servicer”) (the Servicing Agreement, the Purchase and Sale
Agreement and the Indenture, being hereinafter referred to collectively as the “Related Documents”);

 

WHEREAS,
pursuant to the Related Documents, the Issuer is required to perform certain duties in connection with: (a) the Notes and the collateral
therefor pledged pursuant to the Indenture (the “Collateral”) and (b) the ownership interests in the Issuer
(the registered holders of such interests being referred to herein as the “Owners”);

 

WHEREAS,
the Issuer desires to have the Administrator perform certain of the duties of the Issuer referred to in the preceding clause, and
to provide such additional services consistent with this Agreement and the Related Documents as the Issuer may from time to time
request; and

 

WHEREAS,
the Administrator has the capacity to provide the services required hereby and is willing to perform such services for the Issuer
on the terms set forth herein;

 

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

 

    	 	 	Administration Agreement

    	 

    

 

 

1.           Duties
of the Administrator.

 

(a)          Duties
with Respect to the Indenture. The Administrator, on behalf of the Issuer, shall perform the administrative duties of the Issuer
under the Indenture. In addition, the Administrator, on behalf of the Issuer, shall consult with the Indenture Trustee regarding
the duties of the Issuer and the Indenture Trustee under the Indenture. The Administrator, on behalf of the Issuer, shall monitor
the performance of the Issuer and shall advise the Issuer when action is necessary to comply with the Issuer’s duties under
the Indenture. The Administrator, on behalf of the Issuer, shall prepare for execution by the Issuer or shall cause the preparation
by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the
duty of the Issuer to prepare, file or deliver pursuant to the Indenture. In furtherance of the foregoing, the Administrator, on
behalf of the Issuer, shall take all appropriate action that is the duty of the Issuer to take pursuant to such documents, including,
without limitation, such of the foregoing as are required with respect to the following matters (references in this Section are
to sections of the Indenture):

 

(i)          the
duty to cause the Note Register to be kept and to give the Indenture Trustee notice of any appointment of a new Note Registrar
and the location, or change in location, of the Note Register (Section 2.4);

 

(ii)         the
notification to the Indenture Trustee of the Payment Date on which the final installment of principal and interest on the Notes
will be paid (Section 2.7);

 

(iii)        the
preparation of or obtaining of the documents and instruments required for authentication of the Notes and delivery of the same
to the Indenture Trustee (Section 2.2);

 

(iv)        the
maintenance of an office at the Corporate Trust Office, for registration of transfer or exchange of Notes and where notices and
demands to or upon the Issuer in respect of the Notes and the Indenture may be served (Section 3.2);

 

(v)         the
duty to cause newly appointed Paying Agents, if any, to deliver to the Indenture Trustee the instrument specified in the Indenture
regarding funds held in trust (Sections 3.3 and 6.16);

 

(vi)        the
direction to the Paying Agents to pay all sums held in trust by such Paying Agents to the Indenture Trustee for purposes of obtaining
the satisfaction and discharge of the Indenture (Sections 3.3 and 6.16);

 

(vii)       the
observance and compliance by the Issuer in all material respects with (i) all laws applicable to it and (ii) all requisite and
appropriate organizational and other formalities in the management of its business and affairs and the conduct of the transactions
contemplated by the Indenture (Section 3.4);

 

(viii)      the
preparation of all supplements, amendments and all writings, and such other actions, necessary or advisable to protect the Collateral
in accordance with Section 3.5 of the Indenture (Section 3.5);

 

(ix)         the
delivery of the Opinion of Counsel on the Closing Date and the annual delivery of Opinions of Counsel, in accordance with Section
3.6 of the Indenture, as to the Collateral, and the annual delivery of the Officers’ Certificate and certain other statements,
in accordance with Section 3.9 of the Indenture, as to compliance with the Indenture (Sections 3.6 and 3.9);

 

    	 	-2-	Administration Agreement

    	 

    

 

(x)          the
monitoring and enforcement of the obligations of the Servicer under the Servicing Agreement (Section 3.7);

 

(xi)         upon
a consolidation or merger of the Issuer, the delivery to the Indenture Trustee of an Officer’s Certificate and an Opinion
of Counsel in accordance with Section 3.11 of the Indenture (Section 3.11(l));

 

(xii)        the
preparation, execution and filing of all forms and documents necessary to pay all taxes in accordance with Section 3.8 of the Indenture
(Section 3.8);

 

(xiii)       the
preparation and obtaining of documents and instruments required for the release of the Issuer from its obligations under the Indenture
(Section 3.12(b));

 

(xiv)      the
delivery of notice to the Indenture Trustee and the Rating Agencies of each Event of Default and each default by the Servicer of
its obligations under the Servicing Agreement and each default of the Transferor under the Purchase and Sale Agreement (Section
3.13);

 

(xv)       the
monitoring of the Issuer’s obligations as to the satisfaction and discharge of the Indenture and the preparation of an Officers’
Certificate and the obtaining of an Opinion of Counsel and an Independent Certificate relating thereto (Section 4.1);

 

(xvi)      the
compliance with any written directive of the Indenture Trustee to the Issuer with respect to the sale of the Collateral in a commercially
reasonable manner if an Event of Default shall have occurred and be continuing (Section 5.2(a)(vi));

 

(xvii)     the
delivery of a written demand to the Servicer to deliver the Loan Files to the Indenture Trustee upon receipt by the Issuer of a
written demand for the same from the Indenture Trustee (Section 5.2(a)(vii));

 

(xviii)    the
preparation and delivery of notice to Noteholders of the removal of the Indenture Trustee and the appointment of a successor Indenture
Trustee (Section 6.8);

 

(xix)       the
notification of the Indenture Trustee in writing if the Notes become listed on any stock exchange or market trading system (Section
6.14);

 

(xx)        the
furnishing to the Indenture Trustee with the names and addresses of Noteholders during any period when the Indenture Trustee is
not the Note Registrar (Section 7.1);

 

(xxi)       the
preparation, execution and filing with the Commission and the Indenture Trustee of the annual reports and of the information, documents
and other reports required to be filed on a periodic basis with, and summaries thereof as may be required by rules and regulations
prescribed by, the Commission or, if the Issuer is not required to file with the Commission periodic information, documents or
reports, then the preparation, execution and filing with the Commission and the Indenture Trustee of such supplementary and periodic
information, documents and reports as may be prescribed by the Commission and, in each case, the transmission of such summaries,
as necessary, to the Noteholders (Section 7.3);

 

    	 	-3-	Administration Agreement

    	 

    

 

(xxii)      the
opening of one or more accounts in the Issuer’s name, the preparation of Issuer Orders, Officers’ Certificates and
Opinions of Counsel and all other actions necessary with respect to investment and reinvestment of funds in the Trust Accounts
(Sections 8.2 and 8.6);

 

(xxiii)     the
provision of written notices to Noteholders regarding special record dates, special payment dates and the amounts to be paid to
Noteholders on such dates (Section 8.3(d));

 

(xxiv)    the
preparation of an Issuer Request and Officers’ Certificate and the obtaining of an Opinion of Counsel and Independent Certificates,
if necessary, for the release of the Collateral as defined in the Indenture (Sections 8.7 and 8.8);

 

(xxv)     the
preparation of Issuer Orders and the obtaining of Opinions of Counsel with respect to the execution of supplemental indentures
and the mailing to the Noteholders of notices with respect to such supplemental indentures (Sections 9.1, 9.2 and 9.3);

 

(xxvi)    the
execution and delivery of new Notes conforming to any supplemental indenture (Section 9.5);

 

(xxvii)   the
notification of Noteholders of redemption of the Notes (Section 10.2);

 

(xxviii)  the
preparation of all Officers’ Certificates, Opinions of Counsel and Independent Certificates with respect to any requests
by the Issuer to the Indenture Trustee to take an action under the Indenture other than any request that (a) the Indenture Trustee
authenticate the Notes or (b) the Indenture Trustee pay amounts due and payable to the Issuer under the Indenture to the Issuer’s
assignee (Section 11.1(a));

 

(xxix)     the
preparation and delivery of Officers’ Certificates and the obtaining of Independent Certificates, if necessary, for the release
of property from the lien of the Indenture (Section 11.1(b));

 

(xxx)      the
preparation and delivery to Noteholders and the Indenture Trustee of any agreements with respect to alternate payment and notice
provisions (Section 11.6);

 

(xxxi)     the
recording of the Indenture, if applicable (Section 11.13); and

 

(xxxii)    the
filing with the Commission of the appropriate forms necessary to suspend reporting requirements under the Securities Exchange Act
(Section 7.4).

 

    	 	-4-	Administration Agreement

    	 

    

 

(b)          Duties
with Respect to the Issuer. (i) The Administrator shall perform such calculations, and shall prepare for execution by the Issuer
or shall cause the preparation by other appropriate Persons, of all such documents, reports, filings, instruments, certificates
and opinions, as it shall be the duty of the Issuer, to perform, prepare, file or deliver pursuant to the Related Documents. At
the request of the Issuer, the Administrator shall take all appropriate action that it is the duty of the Issuer to take pursuant
to the Related Documents. Subject to Section 5 of this Agreement, and in accordance with the directions of the Issuer, the
Administrator, on behalf of the Issuer, shall administer, perform or supervise the performance of such other activities in connection
with the Collateral (including the Related Documents) as are not covered by any of the foregoing and as are expressly requested
by the Issuer, and are reasonably within the capability of the Administrator.

 

(ii)         Notwithstanding
anything in this Agreement or the Related Documents to the contrary, the Administrator shall be responsible for promptly notifying
the Issuer, in the event that any withholding tax is imposed on the Issuer’s payments (or allocations of income). Any
such notice shall specify the amount of any withholding tax required to be withheld pursuant to such provision.

 

(iii)        Notwithstanding
anything in this Agreement or the Related Documents to the contrary, the Administrator shall be responsible for performance of
the duties of the Managing Member set forth in Sections 8.2 and 8.3 of the Issuer Limited Liability Company Agreement with respect
to, among other things, accounting and reports to members; provided, however, that the Managing Member shall retain responsibility
for the distribution of the information necessary to enable each member to prepare its federal, state and local income tax returns.

 

(iv)        The
Administrator shall satisfy its obligations with respect to clauses (ii) and (iii) by retaining, at the expense of
the Issuer, a firm of independent certified public accountants (the “Accountants”) acceptable to the Issuer,
which Accountants shall perform the obligations of the Administrator thereunder. In connection with clause (ii), the Accountants
will provide a letter in form and substance satisfactory to the Managing Member or the Issuer, as applicable, as to whether any
tax withholding is then required and, if required, the procedures to be followed with respect thereto to comply with the requirements
of the Code. The Accountants shall be required to update the letter in each instance that any additional tax withholding is subsequently
required or any previously required tax withholding shall no longer be required.

 

(v)         In
carrying out the foregoing duties or any of its other obligations under this Agreement, the Administrator may enter into transactions
with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings
shall be in accordance with any directions received from the Issuer and shall be, in the Administrator’s opinion, no less
favorable to the Issuer than would be available from unaffiliated parties.

 

(vi)        The
Administrator hereby agrees to execute on behalf of the Issuer all such documents, reports, filings, instruments, certificates
and opinions as it shall be the duty of the Issuer to prepare, file or deliver pursuant to the Related Documents or otherwise by
law.

 

    	 	-5-	Administration Agreement

    	 

    

 

(c)          Non-Ministerial
Matters. (i) With respect to matters that in the reasonable judgment of the Administrator are non-ministerial, the Administrator
shall not take any action unless within a reasonable time before the taking of such action the Administrator shall have notified
the Managing Member or the Issuer, as applicable, of the proposed action and the Managing Member or the Issuer, as applicable,
shall have consented or provided an alternative direction. For the purpose of the preceding sentence, “non-ministerial
matters” shall include, without limitation:

 

(A)         the
amendment of or any supplement to the Indenture;

 

(B)         the
initiation of any claim or lawsuit by the Issuer and the compromise of any action, claim or lawsuit brought by or against the Issuer
(other than in connection with the collection of the Loans);

 

(C)         the
amendment, change or modification of the Related Documents;

 

(D)         the
appointment of successor Note Registrars, successor Paying Agents and successor Indenture Trustees pursuant to the Indenture or
the appointment of successor Administrators or successor Servicers, or the consent to the assignment by the Note Registrar, Paying
Agent or Indenture Trustee of its obligations under the Indenture; and

 

(E)         the
removal of the Indenture Trustee.

 

(ii)         Notwithstanding
anything to the contrary in this Agreement, the Administrator shall not be obligated to, and shall not: (x) make any payments
to the Noteholders under the Related Documents or (y) take any other action that the Issuer directs the Administrator not to take
on its behalf.

 

2.          Records.
The Administrator shall maintain appropriate books of account and records relating to services performed hereunder, which books
of account and records shall be accessible for inspection by the Issuer or its designees, at any time during normal business hours.

 

3.          Compensation.
As compensation for the performance of the Administrator’s obligations under this Agreement and as reimbursement for its
expenses related thereto, the Administrator shall be entitled to $3,000 per annum, 1/12 of which is payable in arrears on each
Payment Date, which payment shall be solely an obligation of the Issuer.

 

4.          Additional
Information to be Furnished to the Issuer. The Administrator shall furnish to the Issuer from time to time such additional
information regarding the Collateral as the Issuer shall reasonably request.

 

5.          Independence
of the Administrator. For all purposes of this Agreement, the Administrator shall be an independent contractor and
shall not be subject to the supervision of the Issuer with respect to the manner in which it accomplishes the performance of its
obligations hereunder. Unless expressly authorized by the Issuer, the Administrator shall have no authority to act for or represent
the Issuer in any way (other than as permitted hereunder) and shall not otherwise be deemed an agent of the Issuer.

 

    	 	-6-	Administration Agreement

    	 

    

 

6.          No
Joint Venture. Nothing contained in this Agreement: (i) shall constitute the Administrator and the Issuer as members of
any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed
to impose any liability as such on any of them or (iii) shall be deemed to confer on any of them any express, implied or apparent
authority to incur any obligation or liability on behalf of the others.

 

7.          Other
Activities of the Administrator. Nothing herein shall prevent the Administrator or its Affiliates from engaging in other
businesses or, in their sole discretion, from acting in a similar capacity as an administrator for any other Person even though
such Person may engage in business activities similar to those of the Issuer.

 

8.          Term
of Agreement; Resignation and Removal of the Administrator. (a) This Agreement shall continue in force until the dissolution
of the Issuer, upon which event this Agreement shall automatically terminate.

 

(b)          Subject
to Section 8(g), the Administrator may resign its duties hereunder by providing the Issuer and the Servicer with at least
sixty (60) days’ prior written notice.

 

(c)          Subject
to Section 8(e), the Issuer may remove the Administrator without cause by providing the Administrator and the Servicer with
at least sixty (60) days’ prior written notice.

 

(d)          Subject
to Section 8(e), at the sole option of the Issuer, the Administrator may be removed immediately upon written notice of termination
from the Issuer to the Administrator and the Servicer if any of the following events shall occur:

 

(i)          the
Administrator shall default in the performance of any of its duties under this Agreement and, after notice of such default, shall
not cure such default within ten (10) days (or, if such default cannot be cured in such time, shall not give within ten (10) days
such assurance of cure as shall be reasonably satisfactory to the Issuer);

 

(ii)         a
court having jurisdiction in the premises shall enter a decree or order for relief, and such decree or order shall not have been
vacated within sixty (60) days, in respect of the Administrator in any involuntary case under any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official for the Administrator or any substantial part of its property or order the winding-up or liquidation of its affairs;
or

 

(iii)        the
Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the
appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the Administrator or
any substantial part of its property, shall consent to the taking of possession by any such official of any substantial part of
its property, shall make any general assignment for the benefit of creditors or shall fail generally to pay its debts as they become
due.

 

    	 	-7-	Administration Agreement

    	 

    

 

The Administrator agrees
that if any of the events specified in clauses (ii) or (iii) of this subsection shall occur, it shall give written
notice thereof to the Issuer, the Servicer and the Indenture Trustee within seven (7) days after the occurrence of such event.

 

(e)          Upon
the Administrator’s receipt of notice of termination, pursuant to Sections 8(c) or (d), or the Administrator’s
resignation in accordance with this Agreement, the predecessor Administrator shall continue to perform its functions as Administrator
under this Agreement, in the case of termination, only until the date specified in such termination notice or, if no such date
is specified in a notice of termination, until receipt of such notice and, in the case of resignation, until the later of: (x)
the date forty-five (45) days from the delivery to the Issuer, the Indenture Trustee and the Servicer of written notice of such
resignation (or written confirmation of such notice) in accordance with this Agreement and (y) the date upon which the predecessor
Administrator shall become unable to act as Administrator, as specified in the notice of resignation and accompanying Opinion of
Counsel. In the event of the Administrator’s termination hereunder, the Issuer shall appoint a successor Administrator, and
the successor Administrator shall accept its appointment by a written assumption.

 

(f)          Upon
appointment, the successor Administrator shall be the successor in all respects to the predecessor Administrator and shall be subject
to all the responsibilities, duties and liabilities arising thereafter relating thereto placed on the predecessor Administrator
and shall be entitled to the compensation specified in Section 3 and all the rights granted to the predecessor Administrator
by the terms and provisions of this Agreement.

 

(g)          No
resignation or removal of the Administrator pursuant to this Section shall be effective until: (i) a successor Administrator shall
have been appointed by the Issuer and (ii) such successor Administrator shall have agreed in writing to be bound by the terms of
this Agreement in the same manner as the Administrator is bound hereunder.

 

(h)          The
appointment of any successor Administrator shall be effective only after satisfaction of the Rating Agency Condition with respect
to the proposed appointment.

 

(i)          The
Administrator or the Issuer, as the case may be, shall provide to the Indenture Trustee a copy of all notices required to be delivered
under this Article 8.

 

9.          Action
upon Termination, Resignation or Removal. Promptly upon the effective date of termination of this Agreement pursuant to
Section 8(a), or the resignation or removal of the Administrator pursuant to Section 8(b) or (c), respectively,
the Administrator shall be entitled to be paid all fees and reimbursable expenses accruing to it to the date of such termination,
resignation or removal. The Administrator shall forthwith upon such termination pursuant to Section 8(a) deliver to the
Issuer all property and documents of or relating to the Collateral then in the custody of the Administrator. In the event of the
resignation or removal of the Administrator pursuant to Section 8(b) or (c), respectively, the Administrator shall
cooperate with the Issuer and the Indenture Trustee and take all reasonable steps requested to assist the Issuer and the Indenture
Trustee in making an orderly transfer of the duties of the Administrator.

 

    	 	-8-	Administration Agreement

    	 

    

 

10.         Notices.
Any notice, report or other communication given hereunder shall be in writing and addressed as follows:

 

(a)          if
to the Issuer, to:

 

GE Equipment Transportation LLC, Series 2012-2

c/o General Electric Capital Corporation

10 Riverview Drive

Danbury, Connecticut 06810

Attention: Capital Markets Operations

 

(b)          if
to the Administrator, to:

 

General Electric Capital Corporation,

as Administrator

201 Merritt 7

Norwalk, Connecticut 06851

Attention: General Counsel

Telephone:     (203) 229-5000

Facsimile:      (203) 956-4296

 

(c)          if
to the Indenture Trustee, to:

 

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Agency and Trust – GE Equipment Transportation 2012-2

 

or to such other address as any party shall
have provided to the other parties in writing. Any notice required to be in writing hereunder shall be deemed given if such
notice is mailed by certified mail, postage prepaid, or hand-delivered to the address of such party as provided above.

 

11.         Amendments.
This Agreement may be amended from time to time by a written amendment duly executed and delivered by the Issuer and the Administrator.
Promptly after the execution of any such amendment (or, in the case of a Rating Agency, ten (10) days prior thereto), the Administrator
shall furnish written notification of the substance of such amendment or consent to each Noteholder and each Rating Agency.

 

12.         Successors
and Assigns. This Agreement may not be assigned by the Administrator unless such assignment is previously consented to
in writing by the Issuer and subject to the satisfaction of the Rating Agency Condition in respect thereof. An assignment with
such consent and satisfaction, if accepted by the assignee, shall bind the assignee hereunder in the same manner as the Administrator
is bound hereunder. Notwithstanding the foregoing, this Agreement may be assigned by the Administrator without the consent of the
Issuer to a corporation or other organization that is a successor (by merger, consolidation or purchase of assets) to the Administrator,
provided that such successor organization executes and delivers to the Issuer, an agreement in which such corporation or other
organization agrees to be bound hereunder by the terms of said assignment in the same manner as the Administrator is bound hereunder.
Subject to the foregoing, this Agreement shall bind any successors or assigns of the parties hereto.

 

    	 	-9-	Administration Agreement

    	 

    

 

13.         Governing
Law. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER
SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401(1) AND 5-1402 OF THE GENERAL OBLIGATIONS
LAWS, BUT WITHOUT REGARD TO ANY OTHER CONFLICT OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

(b)          EACH
PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS AGREEMENT OR TO ANY MATTER
ARISING OUT OF OR RELATING TO THIS AGREEMENT; PROVIDED, THAT EACH PARTY HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS
MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE BOROUGH OF MANHATTAN IN NEW YORK CITY; PROVIDED, FURTHER, THAT NOTHING IN
THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE ANY OF THE PARTIES FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY
OTHER JURISDICTION TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF SUCH PARTY. EACH PARTY HERETO SUBMITS AND CONSENTS IN
ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION
THAT SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO
THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH PARTY HERETO HEREBY WAIVES PERSONAL
SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS,
COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PARTY AT ITS ADDRESS DETERMINED IN ACCORDANCE
WITH SECTION 10 AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S ACTUAL RECEIPT THEREOF
OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL, PROPER POSTAGE PREPAID. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF
ANY PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

    	 	-10-	Administration Agreement

    	 

    

 

(c)          BECAUSE
DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED
AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES
DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION
OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT,
OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH,
RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

14.         Other
Interpretive Matters. All terms defined directly or by incorporation in this Agreement shall have the defined meanings
when used in any document delivered pursuant thereto unless otherwise defined therein. For purposes of this Agreement, unless the
context otherwise requires: (a) accounting terms not otherwise defined herein and accounting terms partly defined herein to the
extent not defined, shall have the respective meanings given to them under generally accepted accounting principles; and unless
otherwise provided, references to any month, quarter or year refer to a fiscal month, quarter or year as determined in accordance
with the GE Capital fiscal calendar; (b) references to any amount as on deposit or outstanding on any particular date means such
amount at the close of business on such day; (c) the words “hereof,” “herein”
and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular
provision of this Agreement; (d) references to any Section, Schedule or Exhibit are references to Sections, Schedules and Exhibits
in or to this Agreement, and references to any paragraph, subsection, clause or other subdivision within any Section or definition
refer to such paragraph, subsection, clause or other subdivision of such Section or definition; (e) the term “including”
means “including without limitation”; (f) references to any law or regulation refer to that law or regulation
as amended from time to time and include any successor law or regulation; (g) references to any agreement refer to that agreement
as from time to time amended, restated or supplemented or as the terms of such agreement are waived or modified in accordance with
its terms; (h) references to any Person include that Person’s successors and assigns; and (i) headings are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.

 

15.         Headings.
The section headings hereof have been inserted for convenience of reference only and shall not be construed to affect the meaning,
construction or effect of this Agreement.

 

16.         Counterparts.
This Agreement may be executed in counterparts, all of which when so executed shall together constitute but one and the same agreement.

 

    	 	-11-	Administration Agreement

    	 

    

 

17.         Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

18.         Not
Applicable to the Administrator in Other Capacities. Nothing in this Agreement shall affect any obligation that the Administrator
may have in any other capacity.

 

19.         Limitation
of Liability of the Managing Member. Notwithstanding anything contained herein to the contrary, this instrument has been
countersigned by CEF Equipment Holding, L.L.C., not in its individual capacity but solely in its capacity as the Managing Member
of the Issuer, and in no event shall CEF Equipment Holding, L.L.C., in its individual capacity, or any beneficial owner of the
Issuer have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder,
as to all of which recourse shall be had solely to the assets of the Issuer.

 

20.         Indemnification.
The Administrator shall indemnify the Issuer (and its officers, directors, employees and agents) for, and hold them harmless against,
any losses, liability or expense, including attorneys’ fees reasonably incurred by them, incurred without negligence or bad
faith on their part, arising out of or in connection with: (i) actions taken by either of them pursuant to instructions given by
the Administrator pursuant to this Agreement or (ii) the failure of the Administrator to perform its obligations hereunder. The
indemnities contained in this Section shall survive the termination of this Agreement and the resignation or removal of the Administrator
or the Issuer.

 

[signature page follows]

 

    	 	-12-	Administration Agreement

    	 

    

 

IN WITNESS WHEREOF, the parties have caused
this Agreement to be duly executed and delivered as of the day and year first above written.

 

	 	GE EQUIPMENT TRANSPORTATION LLC,
	 	SERIES 2012-2
	 	 	 
	 	By:	CEF Equipment Holding, L.L.C.,
	 	 	its Managing Member
	 	 	 
	 	By:	/s/ Steven Day
	 	Name:	 Steven Day
	 	Title:	Vice President
	 	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Administrator
	 	 	 
	 	By:	Thomas A. Davidson
	 	Name:	Thomas A. Davidson
	 	Title:	Attorney-In-Fact

 

	Accepted and agreed:	 
	 	 
	CEF EQUIPMENT HOLDING, L.L.C.,	 
	not in its individual capacity but	 
	solely as Managing Member under	 
	the Issuer Limited Liability	 
	Company Agreement	 
	 	 	 
	By:	/s/ Steven Day	 
	Name:	 Steven Day	 
	Title:
    	Vice President	 

 

    	 	S-1	Administration AgreementEMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
("Agreement") is entered into and made to be effective as of October 25, 2012, (the "Effective Date")
by and between DGSE COMPANIES, INC. (formerly Dallas Gold & Silver Exchange, Inc.), a Nevada corporation (the "Company"),
and James J. Vierling, an executive employee of the Company ("Executive";
the Company and Executive are collectively referred to as the "Parties").

 

WITNESSETH:

 

WHEREAS, prior to the
Effective Date hereof, Executive was employed by SBT, INC., a wholly owned subsidiary of the Company, as its President and Chief
Executive Officer.

 

WHEREAS, the Company
desires for Executive to be its President, Chief Executive Officer and Chairman of the Board in order to provide the necessary
leadership and senior management skills that are important to the Company, and believes that retaining Executive's services and
business expertise are of material importance to the Company and its shareholders.

 

WHEREAS, Executive
is willing to accept such employment with the Company in accordance with the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, for
and in consideration of the foregoing recitals and the mutual agreements contained herein, the Parties agree as follows:

 

1.           DEFINITlONS.
The following capitalized terms shall have the meanings set forth below.

 

1.1           "Board"
shall mean the Board of Directors of the Company.

 

1.2           "Cause"
shall mean the occurrence of any of the following during the Employment Term: (a) conviction of a felony involving dishonest acts;
(b) any willful and material misapplication by Executive of the Company's funds, or any other willful and material act of dishonesty
committed by Executive; or (c) Executive's willful and material breach of this Agreement or willful and material failure to substantially
perform his duties hereunder (other than any such failure resulting from mental or physical illness) after written demand for substantial
performance is delivered by the Board which specifically identifies the manner in which the Board believes Executive has not substantially
performed his duties and Executive fails to cure his nonperformance. Executive shall not be deemed to have been terminated for
Cause without first having been (i) provided written notice of not less than thirty (30) days setting forth the specific reasons
for the Company's intention to terminate Executive for Cause, (ii) an opportunity for Executive, together with his counsel, to
be heard before the Board, and (iii) delivery to Executive of a notice of termination from the Board stating that a majority of
the Board found, in good faith, that Executive had engaged in the willful and material conduct referred to in such notice. For
purposes of this Agreement, no act, or failure to act, on Executive's part shall be considered "willful" unless done,
or omitted to be done, by Executive in bad faith and without reasonable belief that Executive's action or omission was in the best
interest of the Company.

 

    	1

    	 

    

 

1.3           "Change
of Control" shall occur if (i) any "person" (as such term is used in Section 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934), other than NTR Metals, LLC, a Texas limited liability company ("NTR"), Ohio Precious Metals,
LLC ("OPM") and/or Global Metals Holdings, LLC ("GMH"), becomes the beneficial owner, directly
or indirectly, of securities of the Company representing twenty percent (20%) or more of the combined voting power of the Company's
then-outstanding securities, (ii) starting January 1, 2014, during any period of twelve (12) months, individuals who constitute
the Board at the beginning of such period cease for any reason to constitute a majority of the Board thereof, (iii) NTR, OPM and/or
GMH, individually or collectively, become the beneficial owner, in the aggregate, directly or indirectly, of securities of the
Company representing seventy percent (70%) or more of the combined voting power of the Company's then outstanding securities, (iv)
during any period of twelve (12) months, individuals who hold a majority of the membership interests of NTR at the beginning of
such period cease for any reason to hold a majority of such membership interests, or (v) a person (as defined in clause (i) above)
acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person
or group of persons) gross assets of the Company that have an aggregate fair market value greater than or equal to over fifty percent
(50%) of the fair market value of all of the gross assets of the Company immediately prior to such acquisition or acquisitions.

 

1.4           "COBRA"
shall mean the Consolidated Omnibus Reconciliation Act of 1985.

 

1.5           "Confidential
Information" shall mean trade secrets, confidential or proprietary information, and all other information, documents
or materials owned, developed or possessed by the Company, or its predecessors and successors, that is not generally known to the
public. Confidential Information includes, but is not limited to, customer lists, financial information, business plans, product
cost or pricing, information regarding future development, locations or acquisitions, personnel records and software programs.
Confidential Information shall not include any information (i) that is or becomes generally publicly available (other than as a
result of violation of this Agreement by Executive), (ii) that Executive receives on a nonconfidential basis from a source (other
than the Company) that is not known by him to be bound by an obligation of secrecy or confidentiality to the Company, or (iii)
that was in the possession of Executive prior to disclosure by the Company.

 

1.6           "Employment
Term" shall mean the period during which Executive is employed by the Company pursuant to this Agreement, including
the Initial Term and any Renewal Terms as defined in Section 2 below.

 

1.7           "Incapacity"
with respect to Executive, shall mean that Executive (i) is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve
(12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health
plan covering employees of the Company. The determination of the existence of the Executive's Incapacity shall be made by the Board
in accordance with Section 409A of the Code.

 

    	2

    	 

    

 

1.8           "Termination
Date" shall mean the earlier of (i) the date of expiration of the Initial Term or any Renewal Term, as applicable,
and (ii) if the Executive's employment is terminated (a) by his death, the date of his death, or (b) by his Incapacity or otherwise
pursuant to the provisions of Section 7.1(b)-(e), as applicable, the date on which the Executive's employment with the Company
actually terminates.

 

2.           INITIAL
EMPLOYMENT TERM AND RENEWAL TERMS.

 

2.1           Initial
Term. The initial term of this Agreement ("Initial Term") shall begin immediately upon the Effective Date
and shall continue through the third (3rd) anniversary thereof, subject to automatic extension as provided below and
unless terminated earlier in accordance with Section 7 below.

 

2.2           Renewal.
Beginning with the third (3rd) anniversary of the Effective Date and continuing with each anniversary date thereafter,
the Employment Term shall automatically be extended in additional, successive one-year increments ("Renewal Term(s)"),
unless Executive or the Company provide written notice not less than one hundred twenty (120) days prior to the expiration of the
Initial Term or any Renewal Term, as applicable, of his/its intention to not renew the Agreement.

 

3.           DUTIES.

 

3.1           Executive
agrees to perform the duties of President, Chief Executive Officer and Chairman of the Board of the Company. Executive shall render
such services as are described for such positions in the Company's Bylaws, including implementation of Company strategy, business
development and growth, and such other or additional duties as may from time to time be assigned to Executive by the Board.

 

3.2           While
employed pursuant to this Agreement, Executive shall obey the lawful directions of the Board and shall use his reasonable good
faith efforts to promote the interests of the Company and to maintain and promote the reputation thereof. During the Employment
Term, Executive may from time to time engage in any businesses or activities that do not compete directly and materially with the
Company and any of its subsidiaries, provided that such businesses or activities do not materially interfere with his performance
of the duties set forth in this Agreement. Notwithstanding the foregoing, Executive is specifically permitted to (i) invest his
personal assets as a passive investor in such form or manner as will not contravene the best interests of the Company, (ii) serve
as an officer, director, trustee or otherwise participate in educational, welfare, social, charitable, religious and civic organizations,
and (iii) participate in the activities, ownership, management and operations described in Section 9.1(a) – (c) and
Section 9.2 hereof.

 

3.3           The
Parties agree that during the Employment Term, Executive shall be based in Dallas, Texas and may not be assigned to any other location
outside the Dallas-Fort Worth metropolitan area. Should the Company elect to relocate or transfer Executive to a location that
is outside the Dallas-Fort Worth metropolitan area and otherwise not acceptable to Executive, Executive shall have the option to
terminate this Agreement with Good Reason as defined in Section 7.3 below.

 

    	3

    	 

    

 

4.          COMPENSATION
AND BENEFITS.

 

4.1           Salary.
As compensation for the performance of services to the Company, the Company shall pay Executive an annual salary of at least Five
Hundred Thirty-Five Thousand and No/100 Dollars ($535,000.00) (said amount, together with any periodic increases, referred to as
"Salary"). The Salary shall be payable in equal bi-weekly installments, subject only to such payroll and withholding
deductions as may be required by law and other deductions applied generally to employees of the Company for employee benefits.
The Board shall review Executive's overall annual compensation at least annually, and Executive's Salary may be increased by the
Board from time to time by an amount that in the opinion of the Board is justified by Executive's performance.

 

4.2           Performance
Bonus. Starting in 2013, Executive shall be entitled to receive an annual Performance Bonus from the Company upon the conclusion
of each calendar year occurring during the Employment Term (each a "Performance Bonus") in an amount equal to
25% of his then existing Salary paid as a lump-sum on or before March 31st of each calendar year for the prior calendar year provided
that the Company's EBIT, as determined pursuant to GAAP, is 10% higher on the last business day of the applicable calendar year
than it was on December 31st of the prior calendar year or provided that the Company’s Compensation Committee and the Executive
agree on other reasonable performance goals to govern this performance bonus

 

4.3           Medical
Insurance Benefits. During the Employment Term, the Company shall maintain hospitalization and medical insurance coverage
on Executive and his spouse as may be provided by the Company for its senior executive employees in accordance with the provisions
of any such plans.

 

4.4           Other
Employee Benefit Plans. Executive shall be eligible to participate at a level commensurate with other senior executives
of the Company in any employee equity purchase plans or programs that may be adopted for the benefit of the Company's officers
or employees generally and in any employee fringe or other employee benefits and pension and/or profit sharing plans that may be
provided by the Company for its senior executive employees in accordance with the provisions of any such plans, as the same may
be in effect from time to time.

 

4.5           Vacation
and Leave of Absence. Executive shall be entitled to take a minimum of four (4) weeks paid vacation per calendar year.
Executive shall also be entitled to all paid holidays and personal days given by the Company to its senior executives.

 

4.6           Sick
Leave and Disability. Executive shall be entitled to sick leave, sick pay and disability benefits in accordance with any
Company policy that may be applicable to senior executive employees from time to time.

 

4.7           Expense
Reimbursement. Upon Executive's furnishing to the Company of customary and reasonable documentary support evidencing costs
and expenses incurred by him in the performance of his services and duties hereunder (including, without limitation, travel and
entertainment expenses), the Company shall promptly reimburse Executive for such costs and expenses in accordance with its normal
expense reimbursement policy.

 

    	4

    	 

    

 

4.8           Legal
and/or Accounting Expenses. Upon providing receipts, during the Employment Term, the Company agrees to provide an allowance
to Executive of Two Thousand Five Hundred and No/100 Dollars ($2,500.00) per year for costs and expenses incurred by Executive
for professional legal and/or accounting services rendered personally to Executive, which amount shall be paid to Executive on
December 1 of each year (or such earlier time that Executive and the Company may otherwise agree). If at any time during the Employment
Term or afterwards there should arise any dispute as to the validity, interpretation or application of any term or condition of
this Agreement, the Company agrees, upon written demand by Executive (and Executive shall be entitled upon application to any court
of competent jurisdiction, to the entry of a mandatory injunction, without the necessity of posting any bond with respect thereto,
compelling the Company) to promptly provide sums, up to $250,000, sufficient to pay on a current basis (either directly or by reimbursing
Executive) Executive's attorneys' fees (including expenses of investigation and disbursements for the fees and expenses of experts,
etc.) incurred by Executive in connection with any such dispute or any litigation. The provisions of this Section 4.9 shall
survive the expiration or termination of this Agreement.

 

4.9           Other
Executive Employee Benefits. During the Employment Term, Executive shall be eligible to participate in any additional incentive
compensation benefit, insurance benefit or other plan or arrangement of the Company now or hereafter created for the benefit of
executive employees of the Company.

 

4.10         D&O
Coverage and Indemnity. The Company shall (a) provide Executive with director and officer liability insurance with companies
and in amounts reasonably satisfactory to Executive, which insurance shall cover Executive for the Employment Term and/or the applicable
statute of limitations after the Employment Term, (b) provide Executive with a broad form Excess A-Side coverage policy tailored
specifically to cover Executive, with such coverage and amount to be satisfactory to Executive, (c) pay for and reimburse Executive
for a personal liability umbrella policy in an amount equal to or in excess of $10,000,000.00, and (d) fully indemnify Executive
and hold Executive harmless from and against any and all claims, actions, causes of action, demands, suits, liabilities, losses,
costs, expenses and obligations (collectively, "Claims") asserted, incurred or arising from, an account of or
in connection with the Company, all Company operations, all public and private security matters, all shareholder suits including
any derivative and class action suits, all governmental and private investigations, sanctions, suits and other Claims, and all
facts, circumstances and outcomes from or relating to any of the foregoing for all periods before, during and after the Employment
Term.

 

5.          COMPANY
STOCK OPTIONS. As long as the Executive is employed by the Company on January 1 of each calendar year listed below, the
Executive will be granted the following options to purchase common stock in the Company pursuant to the following terms:

 

    	5

    	 

    

 

	Grant Date	 	# of Options	 	Grant Price
	 	 	 	 	 
	January 1, 2013	 	50,000	 	Unless otherwise provided in the applicable option plan or applicable option agreement, quoted bid price at market close on the last working day of the prior calendar year
	January 1, 2014	 	50,000	 	Unless otherwise provided in the applicable option plan or applicable option agreement, quoted bid price at market close on the last working day of the prior calendar year
	January 1, 2015	 	50,000	 	Unless otherwise provided in the applicable option plan or applicable option agreement, quoted bid price at market close on the last working day of the prior calendar year

 

The Parties agree and acknowledge
that all options referred to above will be vested ratably over a three (3) year period after the date of the grant of such options,
with twenty-five percent (25%) of the options vesting on the day of the grant of such options and twenty-five percent (25%) of
such options vesting on January 1 of each of the subsequent three (3) calendar years after the grant of such options.

 

6.          CONFIDENTIAL
INFORMATION. Executive hereby covenants, agrees and acknowledges as follows:

 

6.1           Access
to Confidential Information. During the Term of this Agreement, Executive will have access to Confidential Information
of the Company.

 

6.2           Non-Disclosure
and Non-Use. During the Employment Term, Executive shall not use or disclose, or make known for another's benefit other
than for the benefit of the Company, any Confidential Information of the Company.

 

6.3           Return
of Confidential Information. Executive agrees that upon termination of his employment with the Company for any reason,
Executive shall forthwith return to the Company all Confidential Information in whatever form maintained (including, without limitation,
computer discs and other electronic media).

 

6.4           Survival.
The obligations of Executive under this Section 6 shall, except as otherwise provided herein, survive the termination of
the Employment Term and the expiration or termination of this Agreement.

 

7.          TERMINATION.

 

7.1           Termination
of Employment. Executive's employment hereunder shall be terminated upon the occurrence of any of the following:

 

(a)          Incapacity
or death of Executive;

 

    	6

    	 

    

 

(b)          the
Company giving written notice to Executive that Executive's employment is being terminated for Cause as defined in Section 1.2
above;

 

(c)          the
Company giving written notice to Executive that his employment is being terminated without Cause or the Agreement is not being
renewed following expiration of the Initial Term or any Renewal Term(s);

 

(d)          Executive
terminating his employment hereunder for Good Reason (as defined in Section 7.3 below); or

 

(e)          Executive
terminating his employment hereunder for any reason whatsoever (whether by reason of retirement, resignation, or otherwise), other
than for Good Reason, upon sixty (60) days' written notice to the Company.

 

7.2          Compensation
following Termination.

 

(a)          Termination
By Reason of Incapacity or Death. If Executive's employment relationship is terminated pursuant to Section 7.1(a)
above due to Executive's Incapacity or death, then Executive (or in the event of Executive's death, Executive's legal representative)
will be entitled to those benefits that are provided by retirement and benefits plans and programs specifically adopted and approved
by the Company for Executive that are earned and vested at the date of termination due to death or Incapacity. In the event of
Executive's Incapacity or death, Executive (or in the event of Executive's death, Executive's legal representative), even though
no longer employed by the Company, shall continue to receive the Salary in effect at the time of Executive's Incapacity or death
for one (1) year following the date of termination. Executive (or in the event of Executive's death, Executive's legal representative)
shall further be entitled to receive payment of an amount equal to a pro-rata share of the Performance Bonus paid to Executive
for the calendar year immediately preceding his termination, which amount shall be paid within thirty (30) days from the date of
termination. Executive's right to exercise stock options and Executive's rights in other stock plans, if any, shall remain governed
by the terms and conditions of the appropriate stock plan.

 

(b)          Termination
by Company for Cause. The Company may terminate Executive for Cause only if he engages in any of the acts or omissions
listed in the definition of Cause set forth in Section 1.2 above. If the Company terminates Executive's employment for Cause
pursuant to Sections 1.2 and 7.1(b) above, then all compensation and benefits shall cease as of the date of termination
other than (i) such amounts, if any, of Executive's Salary as shall have accrued and remain unpaid as of the date of such termination
for Cause, (ii) payment of an amount equal to a pro-rata share of the Performance Bonus paid to Executive for the calendar year
immediately preceding his termination, and (iii) such other amounts, if any, which may be payable to Executive pursuant to the
terms of the Company's benefits plans or pursuant to Section 4.7 above. Any amounts payable pursuant to this Section
7.2(b) shall be tendered to Executive within thirty (30) days from the date of termination.

 

    	7

    	 

    

 

(c)          Termination
by Company Without Cause or by Executive for Good Reason. If the Company terminates Executive's employment for any reason
other than Cause, or if Executive terminates his employment for Good Reason pursuant to Section 7.1(d) above, then Executive,
even though no longer employed by the Company, shall be entitled to receive (i) a lump sum payment within thirty (30) days after
the Termination Date equal to the remainder of Executive's current year's Salary, (ii) a lump sum payment within thirty (30) days
after the Termination Date in an amount equal to the maximum amount of Performance Bonus to which Executive would have been eligible
to receive through the end of the Employment Term, and (iii) a lump sum payment within sixty (60) days following termination in
an amount equal to two (2) years' Salary based on the Executive's Salary in effect immediately prior to termination of this Agreement.
In addition to the foregoing, the Company shall also adopt such resolutions as shall be necessary and effective to declare any
and all stock options, restricted stock units, or any other equity awards issued pursuant to any incentive or equity plan offered
by the Company to its senior executives to be fully and immediately vested and exercisable as of the Termination Date.

 

(d)         Termination
by Executive Without Good Reason. In the event that Executive terminates this Agreement pursuant to Section 7.1(e)
above, then Executive shall be entitled to receive within thirty (30) days after the Termination Date a lump sum payment equal
to the remainder of Executive’s accrued but unpaid salary.

 

7.3          Good
Reason. (a) For purposes of this Agreement, Executive shall have a Good Reason for terminating employment with the Company
if any one or more of the following occur without Executive's written consent:

 

(i)          a
material diminution in Executive's authority, duties or responsibilities with the Company;

 

(ii)         the
assignment to Executive of any duties or responsibilities that, in Executive's reasonable judgment, are materially inconsistent
with Executive's then-existing duties or responsibilities;

 

(iii)        layoff
or involuntary termination of Executive's employment by the Company, except in connection with the termination of Executive's employment
for Cause or as a result of Executive's Incapacity or death;

 

(iv)        a
reduction by the Company in Executive's Salary;

 

(v)         a
Change of Control occurring (A) after January 1, 2014 with respect to any Change of Control described in Section 1.3(i)-(iii)
hereof, and (B) after the date hereof with respect to any Change of Control described in Section 1.3(iv) and (v)
hereof;

 

(vi)        the
failure by the Company to continue in effect any employee benefit plan in which Executive is participating at the Effective Date
other than as a result of the normal expiration of any such plan in accordance with its terms, except to the extent that the Company
provides Executive with substantially equivalent benefits;

 

    	8

    	 

    

 

(vii)       the
imposition of any requirement that Executive be based outside the Dallas-Fort Worth metropolitan area;

 

(viii)      the
Company's failure to obtain the express assumption of this Agreement by any successor to the Company as provided by Section
8.2 hereof; or

 

(ix)         any
violation by the Company of any agreement (including this Agreement) between it and Executive, provided that the Company be given
an opportunity to cure any violation within thirty (30) days of written notice from the Executive.

 

(b)          Any
Good Reason shall not be deemed to be waived by Executive's continued employment following an act or omission giving rise to such
Good Reason; provided, that a condition described in this Section 7.3 shall not constitute Good Reason unless it
is communicated by the Executive to the Company in writing within ninety (90) days of the initial existence of the condition, and
is not corrected by the Company within thirty (30) days of the date of the Company's receipt of such written notice.

 

7.4          Insurance
Benefits following Termination. Following the expiration of the Employment Term due to termination or non-renewal of this
Agreement for any reason or no reason at all by either Executive or the Company, the Company shall continue to provide medical
health benefits and coverage to Executive and his wife, which is at least equal to or better than the medical health benefits and
coverage provided to Executive and his wife immediately prior to the expiration of the Employment Term (under either the Company's
health and insurance plans or such other health and insurance plans as may be necessary) at no cost to Executive or his wife; provided,
that with respect to taxable coverage provided to the Executive or his dependents, the entire applicable premium cost shall be
charged to the Executive for such coverage and the Company shall reimburse the Executive for the cost of the premium in excess
of the applicable employee-paid portion; provided, further, such reimbursement shall be available only to the extent
that (a) such premium expense is actually incurred for any particular calendar year and reasonably substantiated; (b) such reimbursement
shall be made no later than thirty (30) days following the request for reimbursement of such expense that is incurred by the Executive
or his applicable dependents, (c) no reimbursement provided for any expense incurred in one taxable year shall affect the amount
available in another taxable year, and (d) the right to this reimbursement is not subject to liquidation or exchange for another
benefit. Notwithstanding the foregoing, the Company's obligation to provide such benefits and coverage will end upon the earlier
of (i) eighteen (18) months following the Termination Date, or (ii) the date both Executive and his wife become covered by a comparable
health insurance plan provided by a subsequent employer.

 

7.5          Section
280G Treatment. Notwithstanding anything in this Agreement to the contrary, in the event it is determined by an accounting
firm chosen by mutual agreement of the Parties that any economic benefit, payment or distribution by the Company to or for the
benefit of the Executive, whether paid, payable, distributed or distributable pursuant to the terms of this Agreement or otherwise
(a "Payment"), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986,
as amended (the "Code"), (such excise tax referred to in this Agreement as the "Excise Tax"),
then the value of any such Payments payable under this Agreement which constitute "parachute payments" under Section
280G(b)(2) of the Code, as determined by the accounting firm, will be reduced so that the present value of all Payments (calculated
in accordance with Section 280G of the Code and the regulations thereunder), in the aggregate, equals the Safe Harbor Amount. The
"Safe Harbor Amount" is equal to 2.99 times the Executive's "base amount," within the meaning of Section 280G(b)(3)
of the Code.

 

    	9

    	 

    

 

7.6           Mitigation
Not Required. Executive shall not be required to mitigate the amount of any payment(s) provided for in this Agreement either
by seeking employment or otherwise. Furthermore, the Company shall not be entitled to set off or reduce any payments owed to Executive
under this Agreement by the amount of earnings or benefits received by Executive in any future employment.

 

8.          ASSIGNMENT
AND SUCCESSION.

 

8.1           No
Assignment by Executive. This Agreement is personal to Executive and shall not be assignable by Executive other than by
will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by Executive's legal
representatives.

 

8.2           Succession.
This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. The Company may
assign this Agreement only to an assignee that agrees to perform this Agreement in the same manner and to the same extent that
the Company would be required to perform if no such succession had taken place. The failure of any assignee of the Company to
expressly assume and agree to perform all obligations under this Agreement in writing, which failure is not remedied within ten
(10) business days after receipt of written notice from Executive notifying the Company or the Company's assignee of such failure,
shall, at the election of Executive, constitute Good Reason for Executive to terminate this Agreement pursuant to Section 7.1(d).

 

9.          RESTRICTIVE
COVENANTS.

 

9.1           Competition.
During the Employment Term, and in the event Executive's employment is terminated pursuant to Section 7.1(b) for a period
of two (2) years from the Termination Date, Executive, in consideration of compensation to be paid to Executive hereunder, will
not directly or indirectly (as a director, officer, executive employee, manager, consultant, independent contractor, advisor or
otherwise) engage in competition with, or own any interest in, manage, control, perform any services for, participate in or be
connected with any business or organization which engages in competition with the Company within the geographic borders of each
State in which the Company conducts business during the Employment Term; provided, however, that the provisions of
this Section 9.1 shall not be deemed to prohibit (a) Executive's ownership of not more than 4.9% of the total shares of
all classes of stock outstanding of any publicly held company, whether through direct or indirect stock holdings so long as Executive
has no active participation in such company, (b) any of the current activities in which Executive is currently involved or which
are otherwise permitted by Section 3.2 above, or (c) ownership in, and management and operation of, Estate Gold and Silver,
LLC.

 

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9.2           Activities
Excluded. The Parties acknowledge and agree that if Executive shall enter into any license or franchise agreement or comparable
arrangement with the Company or any subsidiary or affiliate of the Company for the operation of a business also conducted by the
Company or such subsidiary or affiliate, Executive shall not be deemed to be "engaged" in any business in competition
with the business conducted by the Company for purposes of Section 9.1, provided Executive has first obtained the approval
of the Board.

 

10.         INDEMNIFICATION.
The Company hereby agrees to indemnify Executive and hold him harmless to the fullest extent permitted by law against any and
all actions, claims, demands, proceedings, damages, losses or suits, including all costs and expenses of defense (including but
not limited to attorneys' fees) resulting from Executive's good faith performance of his duties and obligations with the Company.

 

11.         NOTICES.
All notices which are required or may be given pursuant to the terms of this Agreement shall be in writing and shall be sufficient
in all respects if given in writing and (i) delivered personally, (ii) mailed by certified or registered mail, return receipt requested
and postage prepaid, (iii) sent via a nationally recognized overnight courier, or (iv) sent via facsimile or email confirmed in
writing as follows:

 

	If to the Company:	DGSE Companies, Inc.	 
	 	11311 Reeder Road	 
	 	Dallas, Texas 75229	 
	 	Attention: Board of Directors	 
	 	Telephone:	 	 
	 	Facsimile:	 	 
	 	Email:	 	 

 

	If to Executive:	James Vierling
	 	4561 Hitching Post
	 	Plano, Texas 75024
	 	Telephone:  (972) 739-9792
	 	Facsimile:  (972) 739-9795
	 	Email: jvierling@sbcoin.com

 

or to such other address or addresses as
either party shall have designated in writing to the other party hereto, provided, however, that any notice sent
by certified or registered mail shall be deemed delivered on the date of delivery as evidenced by the return receipt.

 

12.         GOVERNING
LAW AND VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without
giving effect to any principle of conflict of laws that would require the application of the law of any other jurisdiction. The
venue for any dispute arising out of this Agreement or Executive's employment with the Company shall be exclusively in the State
District Court of Dallas County, Texas.

 

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13.         SEVERABILITY.
The Parties agree that in the event that any court of competent jurisdiction shall hold any provision of this Agreement to be unenforceable,
then such provision shall be deemed to be severed from the remainder of this Agreement for the purpose only of the particular legal
proceedings in question and all other covenants and provisions of this Agreement shall in every other respect continue in full
force and effect and no covenant or provision shall be deemed dependent upon any other covenant or provision.

 

14.         WAIVER.
Failure to insist upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of
such term, covenant or condition, nor shall any waiver or relinquishment of any right or power hereunder at any one or more times
be deemed a waiver or relinquishment of such right or power at any other time or times.

 

15.         ENTIRE
AGREEMENT; MODIFICATIONS. Unless otherwise specified, this Agreement constitutes the entire and final expression of the
agreement of the Parties with respect to the subject matters hereof and supersede all prior agreements, oral and written, between
the Parties with respect to the subject matter hereof. This Agreement may be modified or amended only by an instrument in writing
signed by the Company and Executive. The Parties agree that if the terms of this Agreement conflict with any future merger agreements,
asset purchase agreements or other agreements relating to a Change of Control of the Company, then the terms of this Agreement
shall govern with respect to Executive notwithstanding any provision to the contrary in any other agreement.

 

16.         CONSTRUCTION.
This Agreement shall be construed as a whole according to its fair meaning. The headings of paragraphs and sections are for convenience
of reference and are not part of this Agreement and shall not affect the interpretation of any of its terms. The Parties acknowledge
that each of them has reviewed this Agreement and has had the opportunity to have it reviewed by their respective attorneys, and
that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the
interpretation of this Agreement.

 

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

 

18.         COMPLIANCE
WITH SECTION 409A. The Parties intend that this Agreement complies with Section 409A of the Code, where applicable, and
this Agreement will be interpreted in a manner consistent with that intention. Notwithstanding any other provisions of this Agreement
to the contrary, and solely to the extent necessary for compliance with Section 409A of the Code and not otherwise eligible for
exclusion from the requirements of Section 409A, if as of the date of Executive's "separation from service" (within the
meaning of Section 409A of the Code and the applicable regulations) from the Company, (a) Executive is deemed to be a "Specified
Employee", and (b) the Company or any member of a controlled group including the Company is publicly traded on an established
securities market or otherwise, no payment or other distribution required to be made to Executive hereunder (including any payment
of cash, any transfer of property and any provision of taxable benefits) solely as a result of Executive's separation from service
shall be made earlier than the first day of the seventh month following the date on which the Executive separates from service
with the Company.

 

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IN WITNESS WHEREOF,
the Parties have entered into this Agreement as of the date first written above.

 

	COMPANY:	 	EXECUTIVE:
	 	 	 
	DGSE COMPANIES, INC	 	 
	 	 	
	By:	 	 	 
	Name:	 	 	James J. Vierling
	Title:	 	 	 

 

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