Document:

Exhibit
10.13 

 

EXECUTION
VERSION

 

	RECORDING
                                         REQUESTED BY

                                         AND WHEN RECORDED, RETURN TO:

                                         [________]

         

         

         
	 

SPACE
ABOVE LINE RESERVED FOR OFFICIAL RECORDER’S USE

 

DEED
OF TRUST, SECURITY AGREEMENT,

ASSIGNMENT OF PRODUCTION, FIXTURE FILING AND

FINANCING STATEMENT

 

from

 

rise
GRASS VALLEY INC.,

a Nevada corporation

(Trustor)

 

to

 

JEREMY
A. M. EVANS

a businessperson in the state of New Hampshire

(Trustee)

 

for
the benefit of

 

ERIDANUS
CAPITAL, LLC,

a Wyoming limited liability company

(Beneficiary)

 

THIS
INSTRUMENT TO BE RECORDED BOTH AS A DEED OF TRUST AND A FINANCING STATEMENT.

 

THIS
DOCUMENT IS A SECURITY AGREEMENT WITHIN THE MEANING OF SECTION 9102(A) OF THE CALIFORNIA UNIFORM COMMERCIAL CODE.

     

     

    

THIS
INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS, SECURES PAYMENT OF FUTURE ADVANCES, AND COVERS PROCEEDS OF COLLATERAL.

 

PORTIONS
OF THE GOODS COMPRISING A PART OF THE PROPERTY COVERED BY THIS INSTRUMENT ARE OR ARE TO BECOME FIXTURES RELATED TO THE LAND DESCRIBED
IN EXHIBIT A HERETO. THIS INSTRUMENT ALSO COVERS AS-EXTRACTED COLLATERAL; THE INTEREST OF TRUSTOR IN MINERALS OR
THE LIKE BEFORE EXTRACTION AND THE SECURITY INTEREST CREATED BY THIS INSTRUMENT ATTACHES TO SUCH MINERALS AS EXTRACTED AND TO
THE ACCOUNTS RESULTING FROM THE SALE THEREOF LOCATED ON THE REAL PROPERTY DESCRIBED HEREIN. TRUSTOR OWNS AN INTEREST OF RECORD
IN THE REAL PROPERTY AND IMMOVABLE PROPERTY CONCERNED. IN THESE RESPECTS, THIS INSTRUMENT IS INTENDED TO BE EFFECTIVE AS A FINANCING
STATEMENT FILED AS A FIXTURE FILING AND A FINANCING STATEMENT COVERING AS-EXTRACTED COLLATERAL PURSUANT TO SECTION 9502 OF THE
CALIFORNIA COMMERCIAL CODE; IS TO BE FILED FOR RECORD IN THE RECORDS OF THE COUNTY WHERE DEEDS OF TRUST ON REAL PROPERTY ARE RECORDED;
AND SHOULD BE INDEXED AS BOTH A DEED OF TRUST AND A FINANCING STATEMENT. THE ADDRESSES OF TRUSTOR (DEBTOR) AND BENEFICIARY (SECURED
PARTY) ARE SPECIFIED IN SECTION 7.10 OF THIS INSTRUMENT.

 

TRUSTOR
REQUESTS THAT A COPY OF ANY NOTICE OF DEFAULT AND ANY NOTICE OF SALE HEREUNDER BE MAILED TO IT AT:

 

	RISE
    GRASS VALLEY INC.
	333
    CROWN POINT CIRCLE, STE 215
	GRASS
    VALLEY, CA 95945
	 	 
	ATTENTION	BENJAMIN
    W. MOSSMAN 
	EMAIL:	ceo@risegoldcorp.com
	FAX
    NO.:	604-428-1124

     

     

    

DEED
OF TRUST, SECURITY AGREEMENT,

ASSIGNMENT OF PRODUCTION, FIXTURE FILING AND

FINANCING STATEMENT

 

This
Deed of Trust, Security Agreement, Assignment of Production, Fixture Filing and Financing Statement (as amended, restated, supplemented
or otherwise modified from time to time, this “Deed of Trust”) dated as of August 30, 2019, is entered
into by RISE GRASS VALLEY INC., a Nevada corporation (“Trustor”), in favor of JEREMY
A. M. EVANS, a businessperson, having a mailing address located at 18 East Road, Hampstead, NH 03841, as trustee (“Trustee”)
for the benefit of ERIDANUS CAPITAL, LLC, a Wyoming limited liability company (“Beneficiary”).

 

RECITALS

 

A.            Trustor
is the owner of mineral interests (the “Mineral Interests”) located in, on, and under certain real property
situated in the County of Nevada, State of California (the “Land”) (collectively, the Mineral Interests
and the Land are hereinafter the “Mineral Properties”), as such Mineral Properties are more particularly
described in Exhibit A attached hereto and made a part hereof.

 

B.            Trustor
and the Beneficiary have entered into that certain Loan Agreement, dated as of the date hereof (as amended, restated, supplemented
and otherwise modified from time to time, the “Loan Agreement”), providing for, inter alia, a senior
secured loan in the aggregate principal amount of $1,000,000 (as amended, restated or otherwise modified from time to time, collectively,
the “Loan”).

 

C.            To
secure (i) the obligations of Trustor under the Loan Agreement, the other Transaction Documents (as defined in the Loan Agreement)
and (ii) the other Obligations (as defined below), and as a condition precedent to certain of the obligations under the Loan Agreement,
Trustor shall have executed and delivered this Deed of Trust to Trustee, which shall create a secured interest in, inter alia,
the Mineral Properties, for the benefit of Beneficiary.

 

D.            Certain
capitalized terms used in this Deed of Trust are defined in Article 6 hereof.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Trustor agrees as follows
for the benefit of Trustee and Beneficiary:

 

ARTICLE
1. GRANT IN TRUST

 

Trustor
hereby irrevocably and unconditionally grants, bargains, sells, transfers, conveys, sets
over and assigns to Trustee, in trust, for the benefit of Beneficiary, with
power of sale and right of entry and possession, all of Trustor’s right, title and interest, whether now owned or
hereafter acquired, in or to the property and rights listed in paragraphs in this Article 1 (hereinafter collectively referred
to as the “Property”):

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(a)       Mineral
Collateral;

 

(b)       Personalty
Collateral;

 

(c)       Fixture
Collateral;

 

(d)       All
awards of payments, including interest thereon, which may heretofore and hereafter be made with respect to the Property to the
extent actually received by Trustor, whether from the exercise of the right of eminent domain (including, but not limited to,
any transfer or part thereof made in lieu of or in anticipation of the exercise of said right), or for any other injury to or
decrease in the value of the Property;

 

(e)       Any
and all possessory rights of Trustor and other rights or privileges of possession, including, without limitation, Trustor’s
right to elect to remain in possession of the Mineral Properties pursuant to Section 365(h)(1) of the United States Bankruptcy
Code (11 U.S.C. §101 et seq.) (the “Bankruptcy Code”);

 

(f)       All
proceeds of and any unearned premiums on any property insurance policies covering the Property, including, without limitation,
the right to receive and apply the proceeds of any insurance, judgments (including with respect to a casualty thereto or condemnation
thereof), or settlements made in lieu thereof, for damage to the Property, in accordance with and subject to the terms of the
Transaction Documents;

 

(g)       The
right, in the name and on behalf of Trustor, to appear in and defend any action or proceeding brought with respect to the Property
and to commence any action or proceeding to protect the interest of Beneficiary in the Property, in accordance with and subject
to the terms of the Transaction Documents;

 

(h)       All
real estate, possessory interest and personal property tax refunds or rebates or charges in lieu of Taxes now or hereafter assessed
or levied against the Property, including interest thereon, and the right to receive the same, whether such refunds or rebates
relate to fiscal periods before or during the term of this Deed of Trust, payable to Trustor with respect to the Property, and
refunds, credits or reimbursements payable to Trustor with respect to bonds, letters of credit, escrow accounts or other sums
payable in connection with the use, occupation, enjoyment, development, construction, operation or ownership of the Property;

 

(i)       To
the extent assignable, all Trustor’s right, title and interest in and to all abstracts of title, plans, specifications,
operating manuals, computer programs, computer data, maps, surveys, studies, reports, development rights, entitlements, permits,
waivers, licenses and approvals, and all amendments and modifications thereof, appraisals, architectural, engineering and construction
contracts, books of account, insurance policies and other documents, of whatever kind or character, relating to the Property or
the development, construction, use, occupancy, operation or maintenance thereof;

 

(j)       All
right, title and interest of every nature of Trustor in all receivables and other accounts of Trustor (i) arising out of
any sale, lease or other transfer of any interest in all or any portion of the Property, (ii) in connection with any insurance
policies covering all or any portion of the Property, and (iii) any and all moneys deposited by Trustor or deposited on behalf
of Trustor with any city, county, public body or agency, irrigation, sewer, or water district or company, gas or electric company,
telephone company, and any other body or

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agency,
for the installation, or to secure the installation of, any utility or to secure any decommissioning or reclamation obligation
pertaining to the Property;

 

(k)       All
rights, titles, interests, estates or other claims, both at law and in equity, which Trustor now has or may hereafter acquire
in the Land or in and to any greater estate in the Land or in and to any greater estate in the Property, including the Mineral
Properties;

 

(l)       All
of Trustor’s right, title and interest in and to all property hereafter acquired or constructed by Trustor located at or
used in connection with the Land or the Mineral Properties which shall forthwith, upon acquisition or construction thereof by
Trustor and without any act or deed by Trustor or Beneficiary, become subject to the Encumbrance of this Deed of Trust as if such
property were now owned by Trustor and were specifically described in this Deed of Trust and were specifically conveyed or encumbered
hereby;

 

(m)       All
claims and rights to proceeds in respect of any title insurance policies issued to Trustor relating to the Land or the Mineral
Properties, including, without limitation, the right to receive and apply the proceeds of any such title insurance or settlements
made in lieu thereof in accordance with and subject to the terms of the Transaction Documents; and

 

(n)       All
products and proceeds of the foregoing;

 

TO
HAVE AND TO HOLD the Property unto Trustee, and to its, his or her successors and assigns, in
trust, subject to the Permitted Encumbrances (as defined below) and Section 3.13 hereof, for the purposes and uses herein
set forth. All of the land, estate, and property hereinabove described, real, personal and mixed, whether affixed or annexed or
otherwise (or otherwise hereinabove specified), and all rights, assigned, conveyed and mortgaged, are intended to be assigned,
conveyed and mortgaged as a unit and are hereby understood, agreed and declared to form a part and parcel of the Property and
to be appropriated to the use of the Property, and shall for the purposes of this Deed of Trust be deemed to be real estate and
conveyed and mortgaged hereby.

 

Notwithstanding
any provision in this Deed of Trust to the contrary, in no event is any Building in a Flood Zone (as defined in the applicable
Flood Insurance Regulations) or Manufactured (Mobile) Home in a Flood Zone (as defined in the applicable Flood Insurance Regulations)
included in the definition of “Property” and no Building or Manufactured (Mobile) Home is hereby encumbered
by this Deed of Trust.

 

ARTICLE
2. OBLIGATIONS SECURED

 

Trustor
makes the foregoing grants under Article 1 hereof for the purpose of securing the following obligations (collectively, the
“Obligations”):

 

2.1           Indebtedness.
The prompt and complete payment when due of all Obligations (as defined in the Loan Agreement), including the indebtedness and
amounts under the Loan, the other Transaction Documents, including all interest, reimbursement obligations,

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sums
and other indebtedness evidenced by or owing under the Loan Agreement, and Transaction Documents from time to time outstanding,
and any modifications, extensions, replacements or renewals thereof, including both present and future advances and/or future
obligations, as more particularly described in Section 2.5 hereof;

 

2.2          Transaction
Documents. The payment, reimbursement, satisfaction, observance and performance of all Obligations, debts, covenants, conditions,
agreements, representations, warranties, and liabilities of Trustor to or benefitting Beneficiary evidenced or secured by, arising
out of, connected with, or related to the Loan, this Deed of Trust, any other Transaction Documents or any document and the transactions
contemplated hereby or thereby (including, without limitation, all interest, fees, charges, expenses, attorneys’ fees and
consultants’ fees), of even date herewith;

 

2.3          Further
Obligations. Payment of such further sums and/or performance of such further obligations as Trustor may undertake to pay and/or
perform for the benefit of Beneficiary, their successors or assigns, when said borrowing and/or obligation is evidenced by a writing
or writings reciting that it or they are so secured by this Deed of Trust;

 

2.4          Modifications
and Amendments. With respect to each of the foregoing, whether now existing or hereafter arising, voluntary or involuntary,
whether or not jointly owned with others, direct or indirect, absolute or contingent, liquidated or unliquidated, and whether
or not from time to time decreased or extinguished and later increased, created or incurred, and all amendments, revisions or
renewals thereof; and

 

2.5          Future
Advances.Such additional future advances under the terms of the Loan Agreement, the Loan, the other Transaction Documents,
or otherwise that Beneficiary may elect to make to Trustor.

 

Once
all of the Obligations have been paid in full and fully performed, this Deed of Trust shall be released and reconveyed by Beneficiary,
at Trustor’s cost and expense; provided, however, that Trustor’s contingent indemnification obligations under this
Deed of Trust, and the other Transaction Documents shall survive any such release.

 

ARTICLE
3. RIGHTS AND DUTIES OF THE PARTIES

 

To
protect the security of this Deed of Trust, Trustor hereby covenants and agrees as follows:

 

3.1          Payment
of Obligations. Trustor covenants that Trustor shall timely pay and perform the Obligations secured by this Deed of Trust.

 

3.2          Representations
and Warranties. Trustor represents and warrants as follows:

 

(a)       Incorporation
of Representations and Warranties from Loan Agreement. The representations and warranties applicable to Trustor and to its
Property contained in Section 5 of the Loan Agreement are hereby confirmed and restated, each such representation and warranty,
together with all related definitions and ancillary provisions, being

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hereby
incorporated into this Deed of Trust by reference as though specifically set forth in this Section.

 

(b)       Title
to Property. Trustor has good and defensible title to the Property free from all Encumbrances, claims, security interests
or other encumbrances other than Encumbrances expressly permitted under the Loan Agreement (“Permitted Encumbrances”),
and without limitation on the right to encumber except as set forth in the Transaction Documents. This Deed of Trust is the prime
lien on the Mineral Properties. The descriptions set forth in Exhibit A of the quantum and nature of the record
title interests of Trustor in and to the Mineral Properties include the entire record title interests of Trustor in the Mineral
Properties and are complete and accurate in all material respects. There are no “back-in” or “reversionary”
interests held by third parties which could materially reduce the interests of Trustor in the Mineral Properties except as set
forth on Exhibit A. No other agreement to which Trustor is a party or by which Trustor is bound affecting any part
of the Property grants an Encumbrance to another party or entity which is prior to the Encumbrance created hereby.

 

(c)       Contracts.
All of the Contracts and obligations of Trustor that relate to the Mineral Properties are in full force and effect and constitute
legal, valid and binding obligations of Trustor. Neither Trustor nor, to the knowledge of Trustor, any other party to any Contract
(i) is in breach of or default or, with the lapse of time or the giving of notice, or both, would be in breach or default with
respect to any obligations thereunder, whether express or implied, or (ii) has given or threatened to give notice of any default
under or inquiry into any possible default under, or action to alter, terminate, rescind or procure a judicial reformation of,
any Contract.

 

(d)       Obligations.
There are no obligations under any Mineral Properties or Contract which require operations to earn or to continue to hold
any of the Mineral Properties in force and effect.

 

(e)       Trustor’s
Address. The address of Trustor’s place of business, residence, chief executive office and office where Trustor keeps
its records concerning accounts, contract rights and general intangibles is as set forth below. Trustor hereby represents and
warrants that its state of formation is Nevada, and the correct spelling of its name is as set forth in its signature block below.

 

3.3          Further
Assurances.

 

(a)       Trustor
covenants that Trustor shall execute and deliver such other and further instruments, and shall do such other and further acts
as in the opinion of Trustee or Beneficiary may be necessary or desirable to carry out more effectively the purposes of this Deed
of Trust, including without limiting the generality of the foregoing, (i) prompt correction of any defect in the execution or
acknowledgment of this Deed of Trust, any written instrument comprising part or all of the Obligations, or any other document
used in connection herewith; (ii) prompt correction of any defect which may hereafter be discovered in the title to the Property;
(iii) prompt execution and delivery of all division or transfer orders or other instruments which in Trustee’s or Beneficiary’s
opinion are required to transfer to Trustee or Beneficiary, the assigned proceeds from the sale of Minerals from the Mineral Properties;
and (iv) prompt payment when

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due
and owing of all taxes, assessments and governmental charges imposed on this Deed of Trust or upon the interest of Beneficiary.

 

(b)       Trustor
shall notify Trustee and Beneficiary at least fifteen (15) days (or such shorter period as may be reasonably agreed in writing
by Trustee or Beneficiary) in advance of any discontinuance of or change in the address of Trustor’s place of business,
residence, chief executive office or office where it keeps records concerning accounts, contract rights and general intangibles.

 

(c)       Trustor
shall not amend, supplement, modify or restate its articles or certificate of incorporation, bylaws, limited liability company
agreements, or other equivalent organizational documents, or amend its name or change its jurisdiction of incorporation, organization
or formation unless expressly permitted by the Loan Agreement.

 

3.4          Operation
of Mineral Properties. As long as any of the Obligations remain unpaid or unsatisfied, Trustor shall or, if Trustor is not
the operator of any Mineral Properties, shall use its best efforts to cause the operator of such Mineral Properties (in each case,
at Trustor’s own expense) to:

 

(a)       not
enter into any operating agreement, contract or agreement which materially adversely affects the Property;

 

(b)       to
the extent consistent with Trustor’s customary operating practices and to the extent that a reasonably prudent operator
would do so, do all things necessary and within the reasonable control of Trustor to keep, or cause to be kept, in full force
and effect the Mineral Properties and Trustor’s interests therein;

 

(c)       neither
abandon, forfeit, surrender, release, sell, assign, farmout or convey, nor agree to sell, assign, farmout or convey, nor mortgage
or grant security interests in, nor otherwise dispose of or encumber any of the Property or any interest therein, except as permitted
by the Loan Agreement;

 

(d)       sublease
the Property without the express written approval of Beneficiary;

 

(e)       cause
the Property to be maintained, developed and protected against drainage and continuously operated, unless market conditions or
permit conditions require otherwise, for the production and marketing of Minerals in a good and workmanlike manner as a prudent
operator would in accordance in all material respects with (i) generally accepted practices, (ii) applicable Contracts, and (iii)
all applicable Federal, state and local laws, rules and regulations;

 

(f)       promptly
pay or make reasonable and customary efforts to cause to be paid when due and owing, whether relating to periods of time before
or after the date hereof, (i) all rentals and royalties payable in respect of the Property; (ii) all expenses incurred in or arising
from the operation or development of the Property (except to the extent contested in good faith or determined by a court of competent
jurisdiction to be not due and owing); (iii) all taxes, assessments and governmental charges imposed upon Beneficiary because
of its interest in the

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Property;
and (iv) all taxes, assessments, and governmental charges imposed upon the Property as provided in the Loan Agreement (and indemnify
Trustee and Beneficiary from all liability in connection with any of the foregoing);

 

(g)       promptly
take all action necessary to enforce or secure the observance or performance of any term, covenant, agreement or condition to
be observed or performed by third parties under any Contract, or any part thereof, or to exercise any of its rights, remedies,
powers and privileges under any Contract, all in accordance with the respective terms thereof;

 

(h)       to
the extent consistent with Trustor’s customary operating practices and to the extent that a reasonably prudent operator
would do so, cause the Operating Equipment and the Fixture Operating Equipment to be kept in good and effective operating condition,
and cause to be made all repairs, renewals, replacements, additions and improvements thereof or thereto, necessary or appropriate
in connection with the production of Minerals from the Mineral Properties;

 

(i)       permit
and do all things necessary or proper to enable Beneficiary (through any of its agents and employees) to enter upon the Mineral
Properties, at reasonable times, with minimum 48-hour notice, and under supervision of Trustor, for the purpose of investigating
and inspecting the condition and operations of the Property in accordance with the terms of the Loan Agreement;

 

(j)       cause
the Property to be kept free and clear of Encumbrances, charges, security interests and encumbrances of every character other
than Permitted Encumbrances;

 

(k)      carry
and maintain the insurance required by the Loan Agreement;

 

(l)       furnish
to Beneficiary, upon request, copies of any Contracts; and

 

(m)     promptly
perform in all material respects all covenants express or implied in any Contract.

 

3.5          Recording. Trustor shall promptly (at Trustor’s own expense) record, register, deposit and file this Deed of Trust and every other
instrument in addition or supplement hereto, including applicable financing statements, in such offices and places within the
state where the Property is located and in the state where Trustor is registered (as applicable) upon the reasonable request of
Beneficiary and at such times and as often as may be necessary to preserve, protect and renew the Encumbrance and security interest
herein created, as the case may be, and otherwise shall do and perform all matters or things necessary or expedient to be done
or observed for the purpose of effectively creating, perfecting, maintaining and preserving the Encumbrance and security interest
created hereby in and on the Property.

 

3.6          Records,
Statements and Reports. Trustor shall keep proper books of record and account in which complete and correct entries shall
be made of Trustor’s transactions in accordance with the method of accounting required in the Loan Agreement and shall furnish

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or
cause to be furnished to Beneficiary the reports required to be delivered pursuant to the terms of the Loan Agreement.

 

3.7          Taxes
and Assessments. Trustor shall pay or cause to be paid, prior to delinquency all taxes, assessments and charges of any kind
(“Taxes”) imposed by any Governmental Authority or utility company which are or may become an Encumbrance
upon Trustor’s right, title and interest in and to the Property or any part thereof; provided that Trustor shall have the
right to contest the validity or amount of such Taxes as and to the extent permitted under the Transaction Documents. Trustor
shall also pay or cause to be paid, prior to delinquency, Taxes imposed by any Governmental Authority upon Beneficiary by reason
of the interest in the Property created hereby or by reason of any payment, or portion thereof, made to Beneficiary hereunder
or pursuant to any Secured Obligation hereby secured as and to the extent required under the Transaction Documents; provided,
however, that Trustor shall have no obligation to pay or discharge Beneficiary’s business or franchise taxes, federal or
state income taxes or other taxes which are measured by and imposed upon Beneficiary’s net or gross income or receipts,
and provided further that Trustor shall have the right to contest the validity or amount of such Taxes as and to the extent permitted
under the Transaction Documents.

 

3.8          Insurance.
Trustor shall provide, maintain and deliver to Beneficiary such insurance as may be required by the terms of the Transaction Documents
and Applicable Law from time to time, covering the Property.

 

3.9          Encumbrances.
Trustor shall pay or cause to be paid, when due, all obligations secured by or reducible to Encumbrances other than Permitted
Encumbrances which shall now or hereafter encumber Trustor’s right, title and interest in and to the Property or any part
thereof, whether senior or subordinate hereto, including without limitation all claims for work or labor performed, or materials
or supplies furnished, in connection with any work of demolition, alteration, improvement of or construction upon the Property;
provided, however, Trustor shall have the right to contest the validity or amount of such Encumbrances as and to the extent permitted
under the Transaction Documents.

 

3.10        Disposition
of Insurance and Condemnation Proceeds. Trustor assigns to Beneficiary (i) any interest of Trustor in all awards for
damages suffered or compensation paid by reason of a taking for public use of, or an action in eminent domain affecting all or
any part of, the Property or any interest therein, and (ii) all proceeds of any insurance policies paid or payable to Beneficiary
by reason of loss sustained to the Property or any part thereof; provided, however, that upon collection, such funds shall be
applied as set forth in the Loan Agreement. Beneficiary shall be entitled to settle and adjust all claims under insurance policies
provided hereunder, subject to the provisions of the Transaction Documents. However, Beneficiary may, in the absolute discretion
of Beneficiary or as otherwise provided in the Transaction Documents and regardless of any impairment of security or lack of impairment
of security, release to Trustor all or any part of the entire amount so collected upon any conditions Beneficiary chooses. Application
of all or any portion of said funds, or the release thereof, shall not cure or waive any default or notice of default hereunder
or invalidate any acts done pursuant to such notice unless the Transaction Documents expressly provide that such application would
effect such a cure or waiver.

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3.11        Defense
and Notice of Actions. Trustor shall, without liability, cost or expense to Beneficiary or Trustee, protect, preserve and
defend (by counsel reasonably satisfactory to Beneficiary) title to the Property, the security hereof and the rights or powers
of Beneficiary or Trustee hereunder. Said protection, preservation and defense shall include, without limitation, protection,
preservation and defense against any early termination, forfeiture or other cancellation of any rights constituting the Property
(subject to Trustor’s rights to replace any such cancelled rights as and to the extent permitted by the terms of the Transaction
Documents) and all adverse claimants to title or any possessory or non-possessory interest therein, whether or not such claimants
or encumbrances assert title paramount to that of Trustor or claim their interest on the basis of events or conditions arising
subsequent to the date hereof, except for the Permitted Encumbrances or as otherwise expressly permitted by the terms of the Transaction
Documents (including without limitation any applicable materiality qualifications, cure and replacement rights or other exceptions
set forth in the Transaction Documents). Trustor shall give Beneficiary prompt notice in writing of the filing of any such action
or proceeding and Beneficiary shall have the right to intervene and participate in such proceeding.

 

3.12        Contracts.

 

(a)       As
and to the extent required by the Transaction Documents, (i) Trustor shall promptly and fully keep, observe and perform, or cause
to be kept, observed and performed, all of the terms, covenants, provisions and agreements imposed upon or assumed by Trustor
under any and all other present and future Material Contracts (as defined in the Loan Agreement), and Trustor shall not do or
fail to do, or permit or fail to permit to be done, any act or thing, the doing or omission of which will give any other party
under any Material Contract a right to terminate or to abate any material payment due thereunder (in each case subject to any
applicable materiality qualifications, cure and replacement rights or other exceptions set forth in the Transaction Documents),
and (ii) except as provided in the Transaction Documents, Trustor shall not modify, amend, supplement, vary, waive, cancel, or
terminate, or agree to terminate or agree to purport to do any of the foregoing in relation to any Material Contract without Beneficiary’s
prior written consent, and any wrongful attempted modification, amendment, supplement, variation, waiver, cancellation or termination
of, or any wrongful attempted agreement to do any of the foregoing in relation to any Material Contract without such consent shall
be void and of no force or effect whatsoever.

 

(b)       If
Trustor shall fail to comply with subsection (a) above, Trustor covenants and agrees that Beneficiary may (but shall not
be obligated to) take, upon five (5) business days’ written notice to Trustor (or upon lesser notice, or without notice,
if Beneficiary reasonably deems that the same is required to protect its interest in the Property), any action that Beneficiary
shall reasonably deem necessary or desirable to keep, observe and perform or cause to be kept, observed or performed any such
terms, covenants, provisions or agreements and to enter upon the Property and take all action thereon as may be necessary to prevent
or cure any default by Trustor in the performance of or compliance with its obligations under subsection (a) above. Trustor shall
promptly deliver to Beneficiary a copy of any notice relating to defaults by Trustor received from a lessor, lessee or other contracting
party (or any of their trustees, receivers, or successors) under any Contract. Beneficiary may expend such sums of money as are
reasonable and necessary for any such purposes, and Trustor hereby covenants and agrees to pay to Beneficiary, immediately upon
demand, all sums so reasonably expended by Beneficiary,

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together
with interest thereon from the date of such payment at the Interest Rate, and until so paid by Trustor, all sums so reasonably
expended by Beneficiary and the interest thereon shall be added to the Obligations secured by the Encumbrance and legal operation
and effect of this Deed of Trust.

 

3.13        Consents.
Trustor shall obtain and maintain the consent or approval to the Encumbrance of this Deed of Trust from any Person whose consent
or approval is required to the granting of an Encumbrance on any interest in the Property. Notwithstanding anything in this Deed
of Trust to the contrary, however, to the extent that there is any prohibition against or condition to the assignment or conveyance
of any interest comprising the Property without the prior approval or written consent of a Person which is of the type that would,
as a result of the failure to obtain such consent, either give rise to a claim for damages or invalidate a transfer, and such
consent has not been obtained by Trustor prior to execution of this Deed of Trust, then the granting of an Encumbrance on any
such interest in the Property by means of this Deed of Trust shall not be effective unless and until the necessary approval or
prior written consent is obtained or the prohibition or condition becomes legally unenforceable. When and if the necessary prior
approval or written consent is obtained or the prohibition or condition becomes legally unenforceable, the granting of an Encumbrance
on any such interest in the Property as may be subject thereto shall become effective automatically without further action on
the part of Trustor or Beneficiary.

 

3.14        Right
of Inspection. Beneficiary and its agents, contractors and employees, may enter the Property upon reasonable prior notice
during normal business hours for the purpose of inspecting the Property and ascertaining Trustor’s compliance with the terms
hereof, and any such visitors shall comply with any applicable reasonable safety and site rules and regulations governing conduct
at the applicable location of which notice has been or will be provided by Trustor prior to such entry.

 

3.15        Acceptance
of Trust, Notice of Indemnification. Trustee accepts this trust when this Deed of Trust, duly executed and acknowledged, becomes
a public record as provided by Applicable Law. Trustee shall not be obligated to perform any act required of it hereunder unless
the performance of such act is requested in writing by Beneficiary and Trustee is reasonably indemnified against loss, cost, liability
and expense.

 

3.16        Preservation
of Permits and Compliance with Laws. Trustor will comply in all material respects with, and will cause all Persons acting
under or through Trustor to comply in all material respects with all governmental approvals, authorizations, licenses, waivers,
permits, and laws, rules and regulations applicable to Trustor and the Property.

 

3.17        Powers
of Trustee. From time to time, upon written request of Beneficiary, and upon presentation of this Deed of Trust for endorsement,
and without affecting the personal liability of any Person for payment or performance of any of the Obligations secured hereby,
Trustee may, without liability therefor and without notice, (i) reconvey all or any part of the Property, (ii) consent
to the making of any map or plat thereof, (iii) join in granting any easement thereon, (iv) join in any declaration
of covenants and restrictions, or (v) join in any extension agreement or any agreement subordinating the Encumbrance or charge
hereof. Trustee or Beneficiary may from time to time apply to any court of competent jurisdiction for aid and

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direction
in the execution of the trusts hereunder and the enforcement of the rights and remedies available hereunder, and Trustee or Beneficiary
may obtain orders or decrees directing or confirming or approving acts in the execution of said trusts and the enforcement of
said remedies. Trustee has no obligation to notify any party of any pending sale or any action or proceeding unless held or commenced
and maintained by Trustee under this Deed of Trust. Trustor shall pay to Trustee compensation and reimbursement for services and
expenses in the administration of the trusts created hereunder upon the occurrence and during the continuance of an Event of Default,
including attorneys’ fees. Trustor indemnifies Trustee and Beneficiary and their respective directors, officers, employees,
agents and Affiliates against all losses, claims, demands and liabilities (except losses, claims, demands or liabilities arising
solely as a direct result of the gross negligence or willful misconduct of the indemnified party as finally determined by a court
of competent jurisdiction) that Trustee or Beneficiary may incur, suffer, or sustain in the execution of the trusts created hereunder
or in the performance of any act required or permitted hereunder or by Applicable Law. The foregoing indemnity provision shall
survive the termination of this Deed of Trust, the removal or resignation of Trustee and the assignment of this Deed of Trust
by Beneficiary.

 

3.18        Substitution
of Trustee. From time to time, by a writing prepared in accordance with Applicable Law and signed and acknowledged by Beneficiary
and recorded in the Office of the Recorder of the County in which the Property is situated, Beneficiary may appoint another trustee
to act in the place and stead of Trustee or any successor. Such writing shall refer to this Deed of Trust and set forth the date,
book and page of its recordation. The recordation of such instrument of substitution shall discharge Trustee herein named and
shall appoint the new trustee as the trustee hereunder with the same effect as if originally named Trustee herein. A writing recorded
pursuant to the provisions of this Section 3.18 shall be conclusive proof of the proper substitution of such new trustee.

 

3.19        Acceleration
Upon Sale or Encumbrance. Upon a Transfer, whether voluntary, involuntary or by operation of law, of all or substantially
all of the Property without the prior written consent of Beneficiary that is not a permitted Transfer under the Transaction Documents,
Beneficiary may, at its sole option, accelerate and declare the Obligations immediately due and payable. Furthermore, the amalgamation,
merger or consolidation of Trustor with or into any other Person or the issuance, sale, or, other disposition by Trustor of any
interest in Trustor, that is not permitted under the Transaction Documents, shall be deemed a Transfer of the Property for purposes
of this Section 3.19.

 

3.20        Reconveyance.
Upon receipt by Trustor and Beneficiary of written notice from the Trustee that the Obligations have been paid in full or that
there has been a Transfer of a portion of the Property as permitted under the Transaction Documents, then Beneficiary shall request
that Trustee reconvey, without warranty, the Property or the applicable portion thereof. The recitals of any matters or facts
in any reconveyance executed hereunder shall be conclusive proof of the truthfulness thereof. To the extent permitted by Applicable
Law, the reconveyance may describe the grantee as “the person or persons legally entitled thereto.” Neither Beneficiary
nor Trustee shall have any duty to determine the rights of Persons claiming to be rightful grantees of any reconveyance. When
the Property has been fully reconveyed, the last such reconveyance shall operate as a reassignment of all future rents, issues
and profits of the Property to the Person or Persons legally entitled thereto.

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3.21        Certain
Taxes. In the event of the passage, after the date of this Deed of Trust, of any Applicable Law deducting from the value of
the Property the amount of any Encumbrance thereon for the purpose of taxation, or changing in any way Applicable Law now in force
for the taxation of deeds of trust or debts secured by deeds of trust or similar instruments, or the manner of the collection
of any such taxes, so as to affect this Deed of Trust, or imposing payment of the whole or any portion of any Taxes against the
Property, Trustor shall pay or cause to be paid such Tax or increased portion and shall agree with Beneficiary in writing to pay,
or reimburse Beneficiary for the payment of, any such Tax or increased portion thereof when thereafter levied or assessed against
the Property or any portion thereof. Such obligations of Trustor whether or not evidenced under an agreement shall be secured
by this Deed of Trust.

 

ARTICLE
4. DEFAULT PROVISIONS

 

4.1           Rights
and Remedies. Time is of the essence hereof. At any time after the occurrence and during the continuance of an Event of Default,
Beneficiary and Trustee, to the fullest extent permitted by Applicable Law and Governmental Authority shall have the following
rights and remedies:

 

(a)       To
declare all Obligations immediately due and payable; provided that the Obligations under the Transaction Documents shall only
be so accelerated in accordance with the Loan Agreement;

 

(b)       With
or without notice, and without releasing Trustor from any obligation hereunder, to cure any default of Trustor and, in connection
therewith, to enter upon the Property and to perform such acts and things as Beneficiary or Trustee deem necessary or desirable
to inspect, investigate, assess and protect the security hereof, including without limitation of any other rights: to obtain a
court order to enforce Beneficiary’s right to enter and inspect the Property pursuant to California Civil Code Section 2929.5;
to have a receiver appointed pursuant to California Code of Civil Procedure Section 564 to enforce Beneficiary’s right
to enter and inspect the Property for Hazardous Materials; to appear in and defend any action or proceeding purporting to affect
the security hereof or the rights or powers of Beneficiary or Trustee hereunder; to pay, purchase, contest or compromise any encumbrance,
charge, Encumbrance or claim of Encumbrance which, in the judgment of either Beneficiary or Trustee, is prior or superior hereto;
the judgment of Beneficiary or Trustee being conclusive as between the parties hereto; to pay any premiums or charges with respect
to insurance required to be carried hereunder; and to employ counsel, accountants, contractors and other appropriate persons to
assist them;

 

(c)       To
commence and maintain an action or actions in any court of competent jurisdiction to foreclose this instrument as a deed of trust
or to obtain specific enforcement of the covenants of Trustor hereunder, and Trustor covenants and agrees that such covenants
shall be specifically enforceable by injunction or any other appropriate equitable remedy and that for the purposes of any suit
brought under this subsection (c), Trustor waives the defense of laches and any applicable statute of limitations;

 

(d)       Beneficiary
or its agents, designees or employees, acting by themselves or through a court-appointed receiver, may enter upon, possess, manage,
operate,

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dispose
of and contract to dispose of the Property or any part thereof; collect and receive all Minerals produced and sold from the Mineral
Collateral, make repairs, purchase machinery and equipment, conduct workover operations and exercise every power, right and privilege
of Trustor with respect to the Mineral Collateral; negotiate with Governmental Authorities with respect to the Property’s
environmental compliance and remedial measures; make, terminate, enforce or modify Contracts upon such terms and conditions as
Beneficiary deems proper; contract for goods and services, hire agents, employees and counsel, make repairs, alterations and improvements
to the Property necessary, in Trustee’s or Beneficiary’s judgment, to protect and preserve the security thereof; to
incur the risks and obligations ordinarily incurred by owners of property (without any personal obligation on the part of the
receiver); and/or to take any and all other actions which may be necessary or desirable to comply with Trustor’s obligations
hereunder, under the Transaction Documents. Without limiting the foregoing, Beneficiary shall have the right, with or without
taking possession of the Property, to collect all rents, royalties, issues and profits. Failure or discontinuance of Beneficiary
at any time or from time to time to collect any such moneys shall not in any manner affect the subsequent enforcement by Beneficiary
of the right, power and authority to collect the same. Nothing herein contained, nor the exercise of the right by Beneficiary
to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption
of liability under, nor a subordination of the lien or charge of this Deed of Trust to any such tenancy, lease or option. All
sums realized by Beneficiary under this subparagraph, less all costs and expenses incurred by it under this subparagraph, including
attorneys’ fees, and less such sums as Beneficiary deems appropriate as a reserve to meet future expenses under this subparagraph,
shall be applied to the Obligations in accordance with the Transaction Documents. Except as required by Applicable Law or the
Transaction Documents, neither application of said sums to the Obligations nor any other action taken by Beneficiary under this
subparagraph shall cure or waive any Event of Default or notice of default hereunder or nullify the effect of any such notice
of default. Beneficiary or Trustee, or any employee or agent of Beneficiary or Trustee, or a receiver appointed by a court, may
take any action or proceeding hereunder without regard to (i) the adequacy of the security for the Obligations secured hereunder,
(ii) the existence of a declaration that the Obligations have been declared immediately due and payable, or (iii) the
filing of a notice of default, except as required by Applicable Law or the Transaction Documents;

 

(e)       To
exercise the power of sale granted to Trustee hereunder, and in connection therewith, to execute a written notice of such Event
of Default and of its election to cause the Property or any portion thereof to be sold to satisfy the Obligations secured hereby.
Trustee shall give and record such notice as Applicable Law or the Transaction Documents require as a condition precedent to a
Trustee’s sale. When the minimum period of time required by Applicable Law after such notice has elapsed, Trustee, without
notice to or demand upon Trustor except as otherwise required by Applicable Law, shall sell the Property at the time and place
of sale fixed by it in the notice of sale and in such order as it or Beneficiary may determine, at public auction to the highest
bidder for cash, in lawful money of the United States, payable at time of sale (the obligations hereby secured being the equivalent
of cash for purposes of said sale). If the Property consists of several lots, parcels, or items of property, Beneficiary may:
(i) designate the order in which such lots, parcels, or items shall be offered for sale or sold, or (ii) elect to sell
such lots, parcels or items through a single sale, through two or more successive sales, or in any other manner Beneficiary deems
in its best interest. Trustor hereby expressly waives any right which it may have to direct the order in which any of the Property
shall be sold

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in
the event of any sale or sales pursuant hereto. Trustee may postpone sale of all or any portion of the Property by public announcement
at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at such time fixed
by the preceding postponement. Trustee shall deliver to the purchaser at such sale a deed conveying the Property or portion thereof
so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be
conclusive proof of the truthfulness thereof. Any Person, including Trustee or Beneficiary, may purchase at such sale;

 

In
connection with any sale or sales hereunder, Beneficiary may elect to treat any of the Property which consists of a right in action
or which is property that can be severed from the real property covered hereby or any improvements thereon without causing structural
damage thereto as if the same were personal property or a Fixture, as the case may be, and dispose of the same in accordance with
Applicable Law separate and apart from the sale of real property. Any sale of any personal property or Fixtures hereunder shall
be conducted in any manner permitted by the UCC;

 

After
deducting all costs, fees and expenses of Trustee and of this trust, including all costs of evidence of title and reasonable attorneys’
fees in connection with sale, Trustee shall apply the proceeds of sale to payment of all sums so expended under the terms hereof
not then repaid, the payment of the Obligations in accordance with the Transaction Documents; and the remainder, if any, to the
Person or Persons legally entitled thereto. In the event of sale, by foreclosure, power of sale, or otherwise, of less than all
of the Property, this Deed of Trust shall continue as a lien and security interest on the remaining portion of the Property unimpaired
and without loss of priority;

 

(f)       To
resort to and realize upon the security hereunder and any other security now or hereafter held by Beneficiary in such order and
manner as Trustee and Beneficiary or either of them may determine (or may be directed to resort and realize in accordance with
the Transaction Documents); and resort to any or all such security may be taken concurrently or successively and in one or several
consolidated or independent judicial actions or lawfully taken non judicial proceedings, or both;

 

(g)       To
seek a judgment that an Event of Default has occurred with respect to any breach by Trustor of its covenants, representations
and/or warranties under the Transaction Documents with respect to the condition of the Property by commencing and maintaining
an action or actions in any court of competent jurisdiction for breach of contract pursuant to California Code of Civil Procedure
Section 736, whether commenced prior to foreclosure of the Property or after foreclosure of the Property, and with respect
to any such Event of Default that is found to have occurred and is continuing, to seek the recovery of any and all costs, damages,
expenses, fees, penalties, fines, judgments, indemnification payments to third parties, and other out-of-pocket costs or expenses
actually incurred by Beneficiary (collectively, the “Environmental Costs”) relating to the cleanup,
remediation or other response action required by Environmental Laws or to which Beneficiary believes necessary to protect the
Property, it being conclusively presumed between Beneficiary and Trustor that all such Environmental Costs incurred or advanced
by Beneficiary relating to the cleanup, remediation or other response action of or to the Property were made by Beneficiary in
good faith. All Environmental Costs incurred by Beneficiary pursuant to this subparagraph (including without

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limitation
court costs, consultants’ fees and attorneys’ fees, whether incurred in litigation or not and whether before or after
judgment) shall bear interest at the Interest Rate from the date of expenditure until said sums have been paid. Beneficiary shall
be entitled to bid, at the sale of the Property held pursuant to subparagraph (e) above, the amount of said costs, expenses
and interest in addition to the amount of the other obligations hereby secured as a credit bid, which shall be deemed the equivalent
of cash. Trustor acknowledges and agrees that Trustor shall be fully and personally liable for the Environmental Costs hereunder
and such liability shall not be limited to the original principal amount of the obligations secured by this Deed of Trust and
Trustor’s obligations shall survive the foreclosure, deed in lieu of foreclosure, release, reconveyance or any other transfer
of the Property or this Deed of Trust. For the purposes of any action brought under this subparagraph, Trustor hereby waives the
defense of laches and any applicable statute of limitations; and

 

(h)       To
waive its Encumbrance against the Property or any portion thereof, whether fixtures or personal property, to the extent such property
is found to be environmentally impaired in accordance with California Code of Civil Procedure Section 726.5 and to exercise
any and all rights and remedies of an unsecured creditor against Trustor and all of Trustor’s assets and property for the
recovery of any deficiency and Environmental Costs, and seeking an attachment order pursuant to California Code of Civil Procedure
Section 483.010. Trustor acknowledges and agrees that notwithstanding any term or provision contained herein, in the other
Transaction Documents: (i) Trustor shall be fully and personally liable for all such judgments and awards entered against
Trustor under this subparagraph (h) and such liability shall not be limited to the original principal amount of the obligations
secured by this Deed of Trust; and (ii) Trustor’s obligations shall survive the foreclosure, deed in lieu of foreclosure,
release, reconveyance or any other transfer of the Property or this Deed of Trust. For the purposes of any action brought under
this subparagraph, Trustor hereby waives the defense of laches and any applicable statute of limitations.

 

4.2           Payment
of Costs, Expenses and Attorneys’ Fees. All reasonable costs and expenses incurred by Beneficiary pursuant to Section 4.1
(including without limitation court costs, consultants’ and attorneys’ fees, whether incurred in litigation or not
and whether before or after judgment) shall bear interest at the Interest Rate, from the date of expenditure until said sums have
been paid. Beneficiary shall be entitled to bid, at the sale of the Property held pursuant to subsection 4.1(e) above, the
amount of said costs, expenses and interest in addition to the amount of the other Obligations hereby secured as a credit bid,
which shall be deemed the equivalent of cash.

 

4.3           Remedies
Cumulative. All rights and remedies of Beneficiary and Trustee hereunder are cumulative and in addition to all rights and
remedies provided in the other Transaction Documents, at law and in equity.

 

4.4           Releases,
Extensions, Modifications and Additional Security. Without affecting the liability of any Person for payment of any Secured
Obligation secured hereby, or the lien or priority of this Deed of Trust upon the Property, Beneficiary may, from time to time,
with or without notice, do one or more of the following: release any Person’s liability for the payment or satisfaction
of any Secured Obligation secured hereby, make any agreement or take any action extending the maturity or otherwise altering the
terms or increasing the amount of any

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Secured
Obligation secured hereby, and accept additional security or release all or a portion of the Property and/or other security held
to secure the Obligations secured hereby.

 

4.5           Marshaling.
Trustor hereby waives any right to require that any security given hereunder or under any other agreement securing the Obligations
be marshaled and further waives any right otherwise available in respect to marshaling of assets which secure any Secured Obligation
or to require Beneficiary to pursue its remedies against any such assets.

 

ARTICLE
5. FIXTURE FILING

 

5.1           Fixture
Filing, Etc. Pursuant to the Security Documents, Trustor has pledged and granted to Beneficiary, and by this Deed of Trust
does hereby grant to Beneficiary, a security interest in the Fixtures and that portion of the Property consisting of the items
described in Exhibit B attached hereto. Without in any manner limiting the generality of any of the other provisions
of this Deed of Trust: (i) some or all of the Property may be or become a fixture; (ii) the security interest created hereby under
applicable provisions of the UCC will attach to all As-Extracted Collateral (including the Accounts resulting from the sale thereof
at the mines located on the Mineral Properties described or to which reference is made herein or on Exhibit A);
(iii) pursuant to the Security Documents and Sections 9334 and 9502 of the UCC, as applicable and as amended and recodified
from time to time, this Deed of Trust also shall constitute a Fixture Filing and a financing statement covering As-Extracted Collateral
and is to be recorded in the real estate records; (iv) Trustor owns an interest of record in the real property and immovable property
concerned; and (v) the mailing address of Trustor, and the address of Beneficiary from which information concerning the security
interest may be obtained, is set forth in Section 7.10 of this Deed of Trust.

 

5.2           Relation
of Financing Statement to Deed of Trust. The purpose of this Article 5 is to create both a fixture filing and a financing
statement covering As-Extracted Collateral under UCC Sections 9334 and 9502, as applicable. The rights, remedies and interests
of Beneficiary under this Deed of Trust and the Transaction Documents are independent and cumulative, and there shall be no merger
of any Encumbrance hereunder with any security interest created otherwise. Beneficiary may elect to exercise or enforce any of
its rights, remedies, or interests under any or all of this Deed of Trust and the Security Documents as Beneficiary may from time
to time deem appropriate.

 

5.3           Limitations.
Except for Permitted Encumbrances, Beneficiary has not consented to any other security interest of any other Person in the Fixtures
or As-Extracted Collateral and has not disclaimed any interest in the Fixtures or As-Extracted Collateral. As of the date hereof,
Beneficiary has not agreed or consented to the removal of the Fixtures from the Property, and any such consent by Trustor made
after the date hereof shall not be binding on Beneficiary unless such removal is permitted under the Transaction Documents.

 

5.4           Removal.
Trustor shall not, without the prior written consent of Beneficiary, remove or permit the removal of any Fixtures from the Property,
except as permitted by the Transaction Documents.

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ARTICLE
6. DEFINITIONS

 

6.1           Defined
Terms. The following terms shall have the meanings defined below for all purposes of this Deed of Trust, and the definitions
shall be applicable to both the singular and the plural form of the term defined, where either of such form is used herein. Terms
not defined in this Deed of Trust shall have the meaning set forth in the Loan Agreement. Terms not defined in this Deed of Trust
or in the Loan Agreement shall have the meaning set forth in the Collateral Agreement.

 

Accounts:
As defined in Section 9102 of the UCC.

 

Affiliate:
As defined in the Loan Agreement.

 

Applicable
Law: All controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders
(that have the effect of law) as well as all applicable final, non-appealable judicial opinions.

 

As-Extracted
Collateral: As defined in Section 9102 of the UCC.

 

Bankruptcy
Code: As defined in Article 1.

 

Beneficiary:
As defined in the first paragraph on page 1 hereof.

 

Contracts: All existing and future contracts, agreements, operating agreements, sharing agreements, mineral purchase and sale agreements,
bottom hole agreements, acreage contribution agreements, unit agreements, contracts for the purchase, exchange, transportation,
processing or sale of Minerals, rights-of-way, easements, leases, equipment leases, plans, permits, approvals, franchises, licenses
and orders now or hereafter affecting any of the Mineral Properties, Operating Equipment, Fixture Operating Equipment, or Minerals
now or hereafter covered hereby, or which are useful or appropriate in drilling for, mining, producing, treating, processing,
handling, storing, transporting or marketing minerals produced from any of the Mineral Properties, and all as such contracts and
agreements as they may be amended, restated, modified, substituted or supplemented from time-to-time.

 

Deed
of Trust: This Deed of Trust, Security Agreement, Assignment of Production, Fixture Filing and Financing Statement, as amended,
restated, supplemented or otherwise modified from time to time.

 

Encumbrances:
As defined in the Loan Agreement.

 

Environmental
Costs: As defined in Section 4.1(g).

 

Environmental
Laws: As defined in the Loan Agreement.

 

Event
of Default: As defined in the Loan Agreement.

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Fixture
Collateral: All of Trustor’s interest now owned or hereafter acquired in and to all Fixture Operating Equipment and
all proceeds, products, renewals, increases, profits, substitutions, replacements, additions, amendments and accessions thereof,
thereto or therefor.

 

Fixture
Operating Equipment: Any of the items described in the definition of “Operating Equipment” which constitute fixtures
under the Uniform Commercial Code.

 

Flood
Insurance Regulations: the following statutes and any regulations promulgated thereunder: (a) the National Flood Insurance
Act of 1968 as now or hereafter in effect or any successor statute thereto; (b) the Flood Disaster Protection Act of 1973 as now
or hereafter in effect or any successor statute thereto; (c) the National Flood Insurance Reform Act of 1994 (amending 42 USC
4001, et seq.), as the same may be amended or recodified from time to time; (d) the Flood Insurance Reform Act of 2004; and (e)
the Biggert-Waters Flood Reform Act of 2012.

 

Governmental
Authority: As defined in the Loan Agreement.

 

Hazardous
Substance: As defined in the Loan Agreement.

 

Hazardous
Substances Indemnity: As defined in the Loan Agreement.

 

Interest
Rate: As defined in the Loan Agreement.

 

Land:
As defined in Recital A.

 

Loan
Agreement: As defined in Recital B.

 

Minerals:
All minerals and all products, by-products, and other substances derived therefrom or the processing thereof, and all substances
produced in conjunction with such minerals, including ores, or substances of value and the products and proceeds therefrom.

 

Mineral
Collateral: All of Trustor’s interest now owned or hereafter acquired in and to the Mineral Properties (even though
Trustor’s interest therein may be incorrectly described in, or a description of a part or all of such interest may be omitted
from, Exhibit A).

 

Mineral
Properties: (a) the Land, the Mineral Interests, and all record title interests, operating rights, fee mineral interests,
leasehold interests, mineral servitudes, profits a prendre, mineral royalties, term mineral interests, subleases, royalties, overriding
royalties, net profits interests, production payments and similar interests or estates described in Exhibit A attached
hereto, or described in the instruments described in Exhibit A, and made a part hereof for all purposes including
the net revenue interests warranted on such Exhibit A and any “back-in,” any reversionary or carried
interests relating to any of the foregoing; (b) all production units, and drilling and spacing units (and the Property covered
thereby) which may affect all or any portion of such interests including those units which may be described or referred to on
Exhibit A and any units created by agreement or designation or under orders, regulations, rules or other official
acts of any Federal, state or other governmental body or agency having jurisdiction; (c) the surface interests described in Exhibit
A attached hereto and made part hereof for all purposes; (d) any and all present and future interests owned or held by,
or otherwise benefiting,

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Trustor
and arising out of, or pursuant to, any of the Contracts; (e) any other present and future interest in, to or relating to (i)
all or any part of the land described in Exhibit A, the land relating to, or described in, the instruments set forth
in Exhibit A or in the documents described in Exhibit A, including, without limitation, all rights
and interests of Trustor in all present and future rights-of-way, easements and servitudes whether or not described in Exhibit
A and located on or related the Minerals or Mineral Properties, or (ii) any of the estates, property rights or other interests
referred to above; (f) any instrument executed in amendment, correction, modification, confirmation, renewal or extension of the
same; and (g) all tenements, hereditaments and appurtenances now existing or hereafter obtained in connection with any of the
aforesaid, including any rights arising under orders, agreements or other arrangements.

 

Obligations:
As defined in Article 2.

 

Operating
Equipment: All surface or subsurface machinery, equipment, facilities, supplies or other Property of whatsoever kind or nature
now or hereafter located on or under any of the Land which are useful for the production, treatment, storage or transportation
of Minerals, including all mines, wells, vents, shafts (including mines and wells drilled and completed, and hereafter to be drilled
and completed, to recover production whether by primary, secondary, tertiary or other recovery techniques), water wells, injection
wells, disposal wells, casing, tubing, rods, pumping units and engines, separators, flow lines, pipelines, tanks, gas systems,
water systems, supplies, power plants, poles, cables, wires, meters, processing plants, compressors, dehydration units, lines,
transformers, starters and controllers, machine shops, tools, storage yards and equipment stored therein, buildings and camps,
telegraph, telephone and other communication systems, roads, loading racks, shipping facilities and all additions, substitutes
and replacements for, and accessories and attachments to, any of the foregoing, and, buildings, structures, facilities, utility
sheds, workrooms, substations, open parking areas, and all other structures and improvements of every kind whatsoever owned or
installed by or for Trustor on the Land, and any and all additions, alterations, betterments or appurtenances thereto, and all
renewals, substitutions or replacements now or at any time owned, or hereafter acquired by Trustor and situated, placed or constructed
on, over or under the Land or any part thereof.

 

Permitted
Encumbrances: As defined in Section 3.2(b).

 

Person:
As defined in the Loan Agreement.

 

Personalty
Collateral: all of Trustor’s interest now owned or hereafter acquired in and to (a) all Operating Equipment; (b) all
Minerals severed and extracted from or attributable to the Mineral Properties; (c) all accounts (including accounts resulting
from the sale of Minerals at or on the Land), contract rights and general intangibles attributable to the Mineral Properties,
including all accounts, contract rights and general intangibles now or hereafter arising regardless of whether any of the foregoing
is in connection with the sale or other disposition of any Minerals or otherwise, including all Encumbrances securing the same;
(d) all accounts, contract rights and general intangibles attributable to the Mineral Properties and now existing or hereafter
arising regardless of whether any of the foregoing is in connection with or resulting from any of the Contracts, including all
Encumbrances securing the same; (e) all proceeds and products of the Mineral Collateral and any other contracts or agreements;
(f) all information concerning the Mineral Properties and all wells located thereon, including title records (including abstracts
of

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title,
title opinions, and title curative documents), geological and geophysical information and logs, electric logs, core data, pressure
data, decline curves and graphical production curves, lease files, mine and well files, and other books and records (including
computerized records and data); (g) any options to acquire any Mineral Collateral; (h) all as-extracted collateral; (i) all proceeds,
products, renewals, increases, profits, substitutions, replacements, additions, amendments and accessions of, to or for any of
the foregoing; and (j) all Contracts; and (k) all goods, inventory, profits, accounts, general intangibles, instruments, documents,
chattel paper, equipment, and all other personal property of any kind or character (including “goods”, “inventory”,
“accounts”, “general intangibles”, “instruments”, “documents”, “chattel paper”
and “equipment” as defined in the UCC) as now or hereafter placed upon, used in connection with, arising from or otherwise
related to the Land; all as more particularly described in Exhibit B hereto, provided that any failure of description
in said Exhibit B shall not limit the foregoing definition.

 

Property:
As defined in Article 1.

 

Required
Approval: Approval required for the granting of a security interest hereunder.

 

Taxes:
As defined in Section 3.7.

 

Transaction
Documents: As defined in the Loan Agreement.

 

Transfer:
Consolidation or merger with any other Person or conveyance, transfer or lease of all or substantially all assets in a single
transaction or series of transactions to any Person.

 

Trustee:
As defined in the first paragraph hereof but also including any successor trustee.

 

Trustor:
As defined in the first paragraph hereof, but also including any subsequent owner or owners of the Property.

 

UCC:
The Uniform Commercial Code as in effect in the State of California or other applicable jurisdiction, as amended and recodified
from time to time.

 

ARTICLE
7. MISCELLANEOUS PROVISIONS

 

7.1           Non-Waiver.
By accepting payment of any sum secured hereby after its due date or late performance of any Secured Obligation, Beneficiary shall
not waive its right against any Person obligated directly or indirectly hereunder or on any Secured Obligation, either to require
prompt payment or performance when due of all other sums and Obligations or to declare default for failure to make such prompt
payment or performance. No exercise of any right or remedy by Beneficiary or Trustee hereunder shall constitute a waiver of any
other right or remedy herein contained or provided by Applicable Law.

 

7.2           Further
Assurances. Trustor shall, from time to time, including upon demand by Beneficiary or Trustee, execute, acknowledge (if appropriate)
and deliver any and all

    20

     

    

documents
and instruments and do or cause to be done all further acts reasonably necessary or appropriate to effectuate the provisions hereof.

 

7.3           Usury
Savings Clause. Nothing contained herein, in the Transaction Documents shall be deemed to require the payment of interest
or other charges by Trustor in excess of the amount that may be lawfully charged. In the event Beneficiary shall collect monies
which are deemed to constitute interest which would increase the effective interest rate to a rate in excess of that permitted
to be charged lawfully, all such sums deemed to constitute interest in excess of the legal rate shall, upon such determination,
at the option of the Beneficiary, be returned to Trustor or credited against the balance of any Secured Obligation then outstanding.

 

7.4           No
Joint Venture. Beneficiary do not undertake or assume any responsibility or duty to Trustor or to any third party with respect
to the Property. Notwithstanding any other provisions of this Deed of Trust or the Transaction Documents: (a) Beneficiary
is not, and shall not be construed as, a partner, joint venturer, alter-ego, manager, controlling Person or other business associate
or participant of any kind of Trustor and Beneficiary does not intend to ever assume such status; (b) Beneficiary does not
intend to ever assume any responsibility to any Person for the quality, suitability, safety or condition of the Property; and
(c) Beneficiary shall not be deemed responsible for or a participant in any acts, omissions or decisions of Trustor. Except
to the extent caused by its own sole and direct gross negligence or willful misconduct as finally determined by a court of competent
jurisdiction, Beneficiary shall not be directly or indirectly liable or responsible for any loss, claim, cause of action, liability,
indebtedness, damage or injury of any kind or character to any Person or property arising from any construction on, or occupancy
or use of, any of the Property, whether caused by or arising from: (i) any defect in any building, structure, grading, fill,
landscaping or other improvements thereon or in any on-site or off-site improvement or other facility therein or thereon; (ii) any
act or omission of Trustor or any of Trustor’s agents, employees, independent contractors, licensees or invitees; (iii) any
accident in or on any of the Property or any fire, flood or other casualty or hazard thereon; (iv) the failure of Trustor,
any of Trustor’s licensees, employees, invitees, agents, independent contractors or other representatives to maintain the
Property in a safe condition; and (v) any nuisance made or suffered on any part of the Property.

 

7.5           Beneficiary’s
Duties. The powers conferred on Beneficiary hereunder are solely to protect its interest in the Property and shall not impose
any duty upon it to exercise any such powers. Except for the safe custody of any Property in its possession and the accounting
for monies actually received by it hereunder, Beneficiary shall have no duty as to any Property or as to the taking of any necessary
steps to preserve rights against prior parties or any other rights pertaining to any Property. Beneficiary shall be deemed to
have exercised reasonable care in the custody and preservation of any Property in its possession if such Property is accorded
treatment substantially equal to that which Beneficiary accords its own property, it being understood that Beneficiary shall not
have any responsibility for taking any necessary steps to preserve rights against any parties with respect to any Property.

 

7.6           Rules
of Construction. When the identity of the parties hereto or other circumstances make it appropriate, the masculine gender
includes the feminine and/or neuter, and the singular number includes the plural. Specific enumeration of rights, powers and remedies
of Trustee and Beneficiary and of acts which they may do and acts Trustor must or

    21

     

    

must
not do shall not exclude or limit the general. The headings of the paragraphs are for information and convenience and do not limit
or construe the contents of any provision hereof.

 

7.7           Severability.
If any term of this Deed of Trust, or the application thereof to any Person or circumstances, shall, to any extent, be invalid
or unenforceable, the remainder of this Deed of Trust, or the application of such term to Persons or circumstances other than
those as to which it is invalid or unenforceable, shall not be affected thereby, and each term of this Deed of Trust shall be
valid and enforceable to the fullest extent permitted by Applicable Law.

 

7.8           Successors
in Interest. The terms, covenants, and conditions herein contained shall be binding upon and inure to the benefit of the heirs,
successors and assigns of the parties hereto.

 

7.9           Request
for Notice. To the extent required by Applicable Law, Trustor hereby requests that a copy of any notice of default and/or
notice of sale filed pursuant hereto be mailed to Trustor at the address set forth in Section 7.10 below.

 

7.10         Notices.
All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day
sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), (b) by registered or certified
mail with return receipt requested (postage prepaid), (c) by a recognized overnight delivery service (with charges prepaid), or
(d) as a .pdf attachment to an email. Any such notice must be sent to the address set forth below or at such other address as
such Person shall have specified to the other party hereto in writing. Notices will be deemed given only when actually received.

 

	 	To
    TRUSTOR at:	Rise
    Grass Valley Inc.
	 	 	333
    Crown Point Circle, Ste 215
	 	 	Grass
    Valley, CA 95945
	 	 	 	 
	 	 	Attention:	Benjamin
    W. Mossman
	 	 	Email:	ceo@risegoldcorp.com
	 	 	Fax
    No.:	604-428-1124
	 	 	 	 
	 	To
    BENEFICIARY at:	Eridanus
    Capital, LLC
	 	 	201
    East 5th Street, Suite 1200
	 	 	Sheridan,
    WY 82801
	 	 	 	 
	 	 	Attention:	Daniel
    Oliver Jr.
	 	 	Email:	doliver@myrmikan.com
	 	 	Fax
    No.:	307-222-1646
	 	 	 	 
	 	To
    TRUSTEE at:	18
    East Road
	 	 	Hampstead,
    NH 03841
	 	 	 	 
	 	 	Attention:	Jeremy
    A. M. Evans
	 	 	Email:	evansjm@me.com
	 	 	Fax
    No.:	781-699-9714

    22

     

    

7.11         No
Oral Modification. This Deed of Trust may not be changed or terminated orally. This Deed of Trust may be modified or terminated
only by a written instrument or instruments executed by Trustor and Beneficiary. Any alleged modification or termination that
is not so documented shall not be effective as to any party. Any agreement made by Trustor and Beneficiary after the date of this
Deed of Trust relating to this Deed of Trust shall be superior to the rights of the holder of any intervening or subordinate deed
of trust, lien or encumbrance.

 

7.12         Recording
of Deed of Trust. Trustor will cause this Deed of Trust and all amendments and supplements thereto and substitutions therefor
and all financing statements and continuation statements relating hereto to be recorded, filed, re-recorded and re-filed in such
manner and in such places as necessary or as Beneficiary shall reasonably request, and will pay all such recording, filing, re-recording
and re-filing taxes, fees and other charges relating thereto and Trustor hereby authorizes Beneficiary to take all such action
without further authorization or signature of Trustor to the extent allowed by law, at Trustor’s cost and expense.

 

7.13         Law
Applicable To Deed of Trust. This Deed of Trust shall be construed under and interpreted in accordance with the laws of California.

 

7.14         Waivers.

 

(a)       Trustor
waives any rights and defenses that are or may become available to Trustor by reason of Sections 2787 to 2855, inclusive, 2899
and 3433 of the California Civil Code.

 

(b)       Trustor
understands and acknowledges that if the Beneficiary forecloses judicially or nonjudicially against any real property security
for the Obligations, that foreclosure could impair or destroy any ability that Trustor may have to seek reimbursement, contribution,
or indemnification from others based on any right Trustor may have of subrogation, reimbursement, contribution, or indemnification
for any amounts paid by Trustor under the Transaction Documents. Trustor further understands and acknowledges that in the absence
of this paragraph, such potential impairment or destruction of Trustor’s rights, if any, may entitle Trustor to assert a
defense to the Transaction Documents based on Section 580d of the California Code of Civil Procedure as interpreted in Union
Bank v. Gradsky, 265 Cal. App. 2d 40 (1968). By executing this Deed of Trust, and, Trustor freely, irrevocably, and unconditionally:
(i) waives and relinquishes that defense and agrees that Trustor will be fully liable under the Transaction Documents even though
the Beneficiary may foreclose, either by judicial foreclosure or by exercise of power of sale, any deed of trust securing the
Obligations; (ii) agrees that Trustor will

    23

     

    

not
assert that defense in any action or proceeding which the Beneficiary may commence to enforce the Transaction Documents; (iii)
acknowledges and agrees that the rights and defenses waived by Trustor in this Deed of Trust include any right or defense that
Trustor may have or be entitled to assert based upon or arising out of any one or more of Sections 580a, 580b, 580d, or 726 of
the California Code of Civil Procedure or Section 2848 of the California Civil Code; and (iv) acknowledges and agrees that the
Beneficiary is relying on this waiver in creating the Obligations, and that this waiver is a material part of the consideration
which the Beneficiary is receiving for creating the Obligations.

 

(c)       Trustor
waives all rights and defenses that Trustor may have because of any of the Obligations being secured by real property. This means,
among other things: (i) Beneficiary may collect from Trustor without first foreclosing on any real or personal property collateral
pledged by other Persons to secure the Obligations; and (ii) if Beneficiary forecloses on any real property collateral pledged
by any other Person: (A) the amount of the Obligations may be reduced only by the price for which that collateral is sold at the
foreclosure sale, even if the collateral is worth more than the sale price, and (B) Beneficiary may collect from Trustor even
if the Beneficiary, by foreclosing on the real property collateral, have destroyed any right Trustor may have to collect from
any other Person. This is an unconditional and irrevocable waiver of any rights and defenses Trustor may have because any of the
Obligations is secured by real property. These rights and defenses include, but are not limited to, any rights or defenses based
upon Sections 580a, 580b, 580d, or 726 of the California Code of Civil Procedure.

 

(d)       The
provisions of this Section 7.14 are hereby incorporated by reference and made a part of the Transaction Documents, as applicable
to Trustor and the Beneficiary, mutatis mutandis. The foregoing waivers which pertain to California law are included solely
out of an abundance of caution, and shall not be construed to mean that any of the above referenced provisions of California law
are in any way otherwise applicable to the Transaction Documents or the Obligations.

 

7.15         Counterparts.
This Deed of Trust shall not be effective until it is executed and delivered by Trustor and Beneficiary. This Deed of Trust may
be executed in any number of counterparts, and each counterpart hereof shall be effective as to each party that executes the same
whether or not all parties execute the same counterpart. If counterparts of this Deed of Trust are executed, the signature pages
from various counterparts may be combined into one composite instrument for all purposes. All counterparts together shall constitute
only one agreement, but each counterpart shall be considered an original.

 

(Signature
page(s) follow)

    24

     

    

IN
WITNESS WHEREOF, Trustor and Beneficiary have executed this Deed of Trust on the day and year first set forth above.

 

TRUSTOR
PLEASE NOTE: IN THE EVENT OF YOUR DEFAULT, CALIFORNIA PROCEDURE PERMITS TRUSTEE TO SELL THE PROPERTY AT A SALE HELD WITHOUT SUPERVISION
BY ANY COURT AFTER EXPIRATION OF A PERIOD PRESCRIBED BY LAW. SEE SUBSECTION 4.1(e) ABOVE FOR A DESCRIPTION OF THIS PROCEDURE.
UNLESS YOU PROVIDE AN ADDRESS FOR THE GIVING OF NOTICE, YOU MAY NOT BE ENTITLED TO OTHER NOTICE OF THE COMMENCEMENT OF SALE PROCEEDINGS.
BY EXECUTION OF THIS DEED OF TRUST, YOU CONSENT TO SUCH PROCEDURE. IF YOU HAVE ANY QUESTIONS CONCERNING IT, YOU SHOULD CONSULT
YOUR LEGAL ADVISOR. BENEFICIARY URGES YOU TO GIVE IT PROMPT NOTICE OF ANY CHANGE IN YOUR ADDRESS SO THAT YOU MAY RECEIVE PROMPTLY
ANY NOTICE GIVEN PURSUANT TO THIS DEED OF TRUST.

 

	 	TRUSTOR:	RISE GRASS VALLEY INC., a Nevada corporation
	 	 	 	 	 
	 	 	By:
    	 
	 	 	 	  Name: Benjamin W. Mossman 
	 	 	 	  Title: President and Chief Executive Officer 
	 	 	 	 	 
	 	BENEFICIARY:	ERIDANUS CAPITAL, LLC, a Wyoming limited liability company
	 	 	 
	 	 	 	By: 	Myrmikan Capital, LLC
	 	 	 	 	a Delaware limited liability company
	 	 	 	Its: 	Manager
	 	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	Name: Daniel Oliver Jr.
	 	 	 	 	Title: Manager

     

     

    

	A
    notary public or other officer completing this certificate verifies only the identity of the individual who signed the document
    to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

	STATE
    OF CALIFORNIA	)	 
	 	)	ss.
	county
    OF _____________________	)	 
	 	 	 

On
___________________, 2019 before me, _____________________________, Notary Public, personally appeared _________________________________,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I
certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS
my hand and official seal.

 

	Notary
    Public	 
	 	 
	SEAL	 
	 	 

[Notary
Page to Deed of Trust]

     

     

    

	A
    notary public or other officer completing this certificate verifies only the identity of the individual who signed the document
    to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

	STATE
    OF NEW YORK	)	 
	 	)	ss.
	county
    OF _____________________	)	 
	 	 	 

On
___________________, 2019 before me, _____________________________, Notary Public, personally appeared _________________________________,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I
certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS
my hand and official seal.

 

	Notary
    Public	 
	 	 
	SEAL	 
	 	 

[Notary
Page to Deed of Trust]

     

     

    

EXHIBIT
A

TO DEED OF TRUST

 

DESCRIPTION
OF LAND AND MINERAL PROPERTIES

 

Surface
Land

 

	Parcel
    Number	Legal
    Description 	Lot
    Size (Acres)
	Idaho
    Maryland Mine Property
	09-550-32	SEC
    26, TWN 16N, RNG 8E, MDM, PTN N 1/2 26-16-8	20,908
    SF

    (0.48 AC)
	09-550-37	SEC
    26, TWN 16N, RNG 8E, MDM, PTN NE 1/4 26-16-8	4.47
    AC
	09-550-38	SEC
    26, TWN 16N, RNG 8E, MDM, PTN NE 1/4 26-16-8	40.1
    AC
	09-550-39	SEC
    26, TWN 16N, RNG 8E, MDM, PTN NE 1/4 26-16-8	42,668
    SF
	344
    CENTENNIAL DRIVE GRASS VALLEY, CA 95945	(0.98
    AC)
	09-550-40	SEC
    26, TWN 16N, RNG 8E, MDM, PTN NE 1/4 26-16-8	5,662
    SF

    (0.13 AC)
	09-560-36	SEC
    26, TWN 16N, RNG 8E, MDM, PTN N 1/2 SE 1/4 26-16-8	10.25
    AC
	09-630-37	SEC
    36, TWN 16N, RNG 8E, MDM, LOT 6 BET ACRES	21.8
    AC
	09-630-39	SEC
    36, TWN 16N, RNG 8E, MDM & SEC 31, TWN 16N, RNG 9E, MDM, LOT 7 BET ACRES	15.07
    AC
	Mill
    Site Property
	06-441-03	SEC
    31, TWN 16N, RNG 9E, MDM, PTN NW 1/4 of 31-16-9	15.19
    AC
	06-441-04	SEC
    31, TWN 16N, RNG 9E, MDM, PTN 31-16-9	0.85
    AC
	06-441-05	SEC
    31, TWN 16N, RNG 9E, MDM, PTN W 1/2 of 31-16-9	50.01
    AC
	06-441-34	SEC
    31, TWN 16N, RNG 9E, MDM & SEC 36, TWN 16N, RNG 8E, MDM, PTN LOT 8 BET ACRES	16.01
    AC

    A-1

     

    

Subsurface
Land

 

All
property described in a Quitclaim Deed by Idaho Maryland
Industries Inc. in favor of
William Ghidotti and Marian
Ghidotti, his wife as
tenants in common, dated June 10, 1963.
The Quitclaim Deed is located at vol. 337, pp. 175-196 in
the official records of Nevada County,
as recorded on June 12, 1963. The mineral rights are defined as parcels and subparcels in the Quitclaim Deed (Document
#: 20170001985), as set out in the table below.

    A-2

     

    

Quitclaim
Deed Summary (Document #: 20170001985)

 

Parcel
No. 1: Pertains to all minerals, gas, oil and mineral deposits of every kind and nature below a depth of 200ft (61m) from
surface except where noted.

 

	Name	Location	Reference
                                         No.

        (QC
= Quitclaim)
	Interest
	J.M.
    English Quartz Mine	Lot
    No. 54, SE1/4 Sec. 25, T 16 N, R 8 E, MDM	QC
    1.1 (Parcel 1, subparcel 1)	100%
    interest
	Lucky
    or Agnes Quartz Mine	Lot
    No. 129, Sec. 25 & 36, T 16 N, R 8 E, MDM	QC
    1.2 (Parcel 1, subparcel 2)	100%
    interest
	Union
    Hill Quartz Mine	Lot
    No. 59, Sec. 25 & 36, T 16 N, R 8 E, MDM	QC
    1.3 (Parcel 1, subparcel 3)	100%
    interest
	Centennial
    Quartz Lode Mining Claim	Lot
    No. 106, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.4 (Parcel 1, subparcel 4)	100%
    interest
	Halphene
    Quartz Lode Mining Claim	Lot
    No. 202, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.5 (Parcel 1, subparcel 5)	100%
    interest
	“Dorothy
    D” Lode Mining Claim	Survey
    No. 5628, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.6 (Parcel 1, subparcel 6)	100%
    interest
	Morning
    Dew Quartz Lode Mining Claim	Lot
    No. 130, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.7 (Parcel 1, subparcel 7)	100%
    interest
	Howard
    Hill Lode Mining Claim	Survey
    No. 4613, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.8 (Parcel 1, subparcel 8)	100%
    interest

    A-3

     

    

	Name	Location	Reference
                                         No.

        (QC
= Quitclaim)
	Interest
	(portion
    of) Hoxie Placer Mining Claim	Lot
    No. 6, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.9 (Parcel 1, subparcel 9)	100%
    interest
	Cambridge
    Quartz Mine	Lot
    No. 128, Sec. 36, T 16 N, R 8 E, MDM	QC
    1.10 (Parcel 1, subparcel 10)	100%
    interest
	Gold
    Blossom Quartz Mine	Lot
    No. 3697, Sec. 36, T 16 N, R 8 E, MDM	QC
    1.11 (Parcel 1, subparcel 11)	100%
    interest
	(name
    not listed)	Lots
    No. 1, 2, 3, 4 and 5. NE1/4 of Sec. 36, T 16 N, R 8 E, MDM	QC
    1.12 (Parcel 1, subparcel 12)	100%
    interest
	(name
    not listed)	Fractional
    west half of NE1/4 of Sec. 36, T 16 N, R 8 E, MDM	QC
    1.13 (Parcel 1, subparcel 13)	100%
    interest
	(name
    not listed) 	NW1/4
    of Sec. 31, T 16 N, R 9 E, MDM	QC
    1.14 (Parcel 1, subparcel 14)	100%
    interest
	(name
    not listed) 	SW1/4
    of Sec. 31, T 16 N, R 9 E, MDM	QC
    1.15 (Parcel 1, subparcel 15)	100%
    interest
	Eureka
    Gold Mining Co.’s Claim	Lot
    No. 41, Sec. 26, T 16 N, R 8 E, MDM	QC
    1.16 (Parcel 1, subparcel 16)	100%
    interest
	Tracy
    Quartz Lode Mining Claim	Lot
    No. 193, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.17 (Parcel 1, subparcel 17)	100%
    interest
	Independence
    Quartz Lode Mining Claim	Lot
    No. 120, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.18 (Parcel 1, subparcel 18)	100%
    interest
	Alpha
    Quartz Lode Mining Claim	Lot
    No. 66, Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.19 (Parcel 1, subparcel 19)	100%
    interest

    A-4

     

    

	Name	Location	Reference
                                         No.

        (QC
= Quitclaim)
	Interest
	Black
    Hawk Extension Lode Mining Claim	Lot
    No. 4218 Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.20 (Parcel 1, subparcel 20)	100%
    interest
	A.B.C.
    Mine and OK Mine	Lot
    No. 167 and Lot No. 168, Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.21 (Parcel 1, subparcel 21)	100%
    interest
	Gamblers
    Gold and Silver Lode Mine	Survey
    No. 4217, Sec. 26, T 16 N, R 8 E, MDM	QC
    1.22 (Parcel 1, subparcel 22)	100%
    interest
	(name
    not listed) 	(a)
    S1/2 of SE1/4; (b) NW1/4 of SE1/4; (c) S1/2 of SW1/4 and (d) NW1/4 of SW1/4 All in Sec. 24, T 16 N, R 8 E, MDM	QC
    1.23 (Parcel 1, subparcel 23)	100%
    interest
	(name
    not listed) 	(a)
    N1/2 of NE1/4; (b) NE1/4 of NW1/4; (c) Lot 1 of NW1/4 of NW1/4 Sec. 25, T 16 N, R 8 E, MDM	QC
    1.24 (Parcel 1, subparcel 24)	100%
    interest
	Kentucky
    Quartz Mine	Lot
    No. 133, Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.25 (Parcel 1, subparcel 25)	100%
    interest
	Idaho
    No. 1, Idaho No. 2, Idaho No. 3, Idaho No. 5, Idaho No. 6, Idaho No. 7, Idaho No. 11, Idaho No. 12, Maryland No. 22, Maryland
    No. 23, Maryland No. 24, Maryland Fraction, Maryland Extension Fraction, Gold Point Fraction and Gold Point Extension Lode
    Mining Claims	Survey
    No. 5514, Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.26 (Parcel 1, subparcel 26)	100%
    interest

    A-5

     

    

	Name	Location	Reference
                                         No.

        (QC
= Quitclaim)
	Interest
	(name
    not listed) 	(a)
    SW1/4 of NE1/4, (b) SE1/4 of NE1/4, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.27 (Parcel 1, subparcel 27)	100%
    interest
	Baby
    Lode Claim and Pinafore Lode Claim	Survey
    No. 4216, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.28 (Parcel 1, subparcel 28)	100%
    interest
	Maryland
    Consolidated Quartz Mining Claim comprising Maryland Lode, Maryland Extension Location Lode, and Maryland Extension Mill Site
    Claim	Lot
    No. 144, Lot No. 145 and, Lot No. 146, Survey No. 2535, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.29 (Parcel 1, subparcel 29)	100%
    interest
	Maryland
    Extension Quartz Mine Lode	Survey
    3679, NE1/4 of SE1/4 of Sec. 25, T 16 N, R 8 E, MDM	QC
    1.30 (Parcel 1, subparcel 30)	100%
    interest
	Gold
    Point Consolidated Gold and Silver Mining Company’s Lode Mining Claim	Lot
    No. 107, survey No. 1892, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.31 (Parcel 1, subparcel 31)	100%
    interest
	Idaho
    Mill Site Claim	Lot
    No. 138, Sec. 26, T 16 N, R 8 E, MDM	QC
    1.32 (Parcel 1, subparcel 32)	100%
    interest
	East
    Eureka Lode Mining Claim	survey
    No. 5515, Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.33 (Parcel 1, subparcel 33)	100%
    interest
	Idaho
    Mining Company’s Claim	Lot
    No. 38, Survey No. 24, Sec. 26, T 16 N, R 8 E, MDM	QC
    1.34 (Parcel 1, subparcel 34)	100%
    interest
	(name
    not listed)	Lot
    No. 13, Sec. 25, T 16 N, R 8 E, MDM	QC
    1.35 (Parcel 1, subparcel 35)	100%
    interest

    A-6

     

    

	Name	Location	Reference
                                         No.

        (QC
= Quitclaim)
	Interest
	Grant
    Quartz Mine Claim	Lot
    No. 62, Survey No. 634, Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.36 (Parcel 1, subparcel 36)	100%
    interest
	(portion
    of) Hoxie Placer Mining Claim	Lot
    No. 5, SE1/4 of Sec. 25, T 16 N, R 8 E, MDM	QC
    1.37 (Parcel 1, subparcel 37)	100%
    interest
	Roannaise
    Lode	Lot
    No. 116, Sec. 23 & 26, T 16 N, R 8 E, MDM	QC
    1.38 (Parcel 1, subparcel 38)	100%
    interest
	Schofield
    Lode	Lot
    No. 37, Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.39 (Parcel 1, subparcel 39)	100%
    interest
	Morehouse
    Quartz Mine	Lot
    No. 53, Sec. 26, T 16 N, R 8 E, MDM	QC
    1.40 (Parcel 1, subparcel 40)	100%
    interest
	(name
    not listed)	“Lot
    Numbered Three” in NE1/4 and “Lot Numbered Seventeen” in NW1/4 of Sec. 26, T 16 N, R 8 E, MDM	QC
    1.41 (Parcel 1, subparcel 41)	100%
    interest
	(name
    not listed)	Lots
    Numbered 5 & 7 in NE1/4 of Sec. 26, T 16 N, R 8 E, MDM	QC
    1.42 (Parcel 1, subparcel 42)	100%
    interest
	(name
    not listed)	Lot
    No. 9 of NE1/4 of SW1/4 and portion of NW1/4 of SE1/4 of Sec. 26, T 16 N, R 8 E, MDM	QC
    1.43 (Parcel 1, subparcel 43)	100%
    interest
	Strip
    of land 40ft on either side of centerline of Nevada County Narrow Gauge Railway	NE1/4
    of SW1/4 of Sec. 26, T 16 N, R 8 E, MDM	QC
    1.44 (Parcel 1, subparcel 44)	100%
    interest
	(name
    not listed)	Area
    is in NW1/4 of Sec. 25, T 16 N, R 8 E, MDM	QC
    1.45 (Parcel 1, subparcel 45)	100%
    interest

    A-7

     

    

	Name	Location	Reference
                                         No.

        (QC
= Quitclaim)
	Interest
	(name
    not listed)	Lot
    3, NW1/4 of Sec. 25, T 16 N, R 8 E, MDM	QC
    1.46 (Parcel 1, subparcel 46)	100%
    interest
	(name
    not listed)	SE1/4
    of SE1/4 of NE1/4 of Sec. 26, T 16 N, R 8 E, MDM	QC
    1.47 (Parcel 1, subparcel 47)	100%
    interest
	(name
    not listed)	Lot
    1, portions of NE1/4 of NE1/4 and N1/2 of NE1/4 of Sec. 30, T 16 N, R 9 E, MDM	QC
    1.48 (Parcel 1, subparcel 48)	100%
    interest
	(name
    not listed)	Lot
    4 in SW1/4 and SE1/4 of SW1/4 of Sec. 19, T 16 N, R 9 E, MDM	QC
    1.49 (Parcel 1, subparcel 49)	100%
    interest
	(name
    not listed)	Lot
    2 of NW1/4 and SE1/4 of NW1/4; Lots 3 & 4 in SW1/4, NE1/4 of SW1/4 and W1/2 of SE1/4 of SW1/4, N1/2 of SE1/4 and S1/2
    of NE1/4, all in Sec. 30, T 16 N, R 9 E, MDM	QC
    1.50 (Parcel 1, subparcel 50)	100%
    interest
	Reservoir
    Site	Area
    of SW corner of Sec. 30, T 16 N, R 9 E, MDM	QC
    1.51 (Parcel 1, subparcel 51)	100%
    interest
	portion
    of Biggs Placer	Lot
    No. 46, Survey No. 283, Sec. 36, T 16 N, R 8 E, MDM	QC
    1.52 (Parcel 1, subparcel 52)	100%
    interest
	Champion
    Lode Mining Claim	Survey
    No. 4826, in Sec. 1, T 15 N, R 8 E, and Sec. 35, T 16 N, R 8 E, MDM	QC
    1.53 (Parcel 1, subparcel 53)	100%
    interest
	Josephine
    Lode Mining Claim	Survey
    No. 4638, in Sec. 1, T 15 N, R 8 E, and Sec. 35, T 16 N, R 8 E, MDM	QC
    1.54 (Parcel 1, subparcel 54)	100%
    interest

    A-8

     

    

	Name	Location	Reference
                                         No.

        (QC
= Quitclaim)
	Interest
	Christopher
    Columbus Consolidated Quartz Mining Claim	Lots
    224 & 225, Survey No. 3399, Sec. 25 & 26, T 16 N, R 8 E, MDM	QC
    1.55 (Parcel 1, subparcel 55)	Undivided
    3/10th interest 
	Parcel
    No. 2	Lots
    2, 4A and 4B, Block 9, Townsite of East Grass Valley	 	100%
    interest in mineral rights below 100ft except Lot 4B, Block 9 which has mineral rights below 35ft from surface
	Parcel
    No. 3	Portion
    of NE1/4 of SW1/4 of Sec. 26, T 16 N, R 8 E, MDM	 	100%
    interest in mineral rights below 100ft from surface
	Parcel
    No. 4	W1/2
    of SW1/4 of SE1/4 of Sec. 30, T 16 N, R 9 E, MDM	 	100%
    mineral rights below 75ft from surface
	Parcel
    No. 5	S1/2
    of SW1/4 of Sec. 29, and SE1/4 of SE1/4 of Sec. 30, T 16 N, R 9 E, MDM	 	100%
    interest in mineral rights below 75ft from surface
	Parcel
    No. 6	E1/2
    of NW1/4 of NE1/4 and E1/2 of N1/2 of SW1/4 of NE1/4 of Sec. 31, T 16 N, R 9 E, MDM	 	100%
    interest in mineral rights below 75ft from surface
	Parcel
    No. 7	N1/2
    of Lots 7 & 8 and Lots 9 & 10 in Sec. 6, T 15 N, R 9 E, and E1/2 of SE1/4 of Sec. 36, T 16 N, R 8 E, MDM	 	100%
    interest in mineral, gas and oil rights below 100ft from surface

    A-9

     

    

	Name	Location	Reference
                                         No.

        (QC
= Quitclaim)
	Interest
	Parcel
    No. 8	Portion
    of Lot 46 on Survey 283 (Biggs Placer Mining Claim) on portions of Sec. 35 & 36, T 16 N, R 8 E, and on Sec. 1, T 15 N,
    R 8 E, MDM	 	Undivided
    3/5th interest in mineral rights below 100ft from surface
	Parcel
    No. 9	NW1/4
    of SW1/4 of Sec. 36, and NE1/4 of SE1/4 of Sec. 35, T 16 N, R 8 E, MDM	 	Undivided
    3/10th interest in all gold and precious metal rights below 100ft from surface
	Parcel
    No. 10	SE1/4
    of SE1/4 and SW1/4 of SE1/4 of Sec. 36, T 16 N, R 8 E, MDM	 	Undivided
    9/35th interest in all gold and precious metal rights below 100ft from surface

    A-10

     

    

EXHIBIT
B

TO DEED OF TRUST

 

COLLATERAL
DESCRIPTION

 

All
of the Trustor’s rights, titles and interests in the following, whether now owned or hereafter acquired by the Trustor (collectively,
the “Personalty Collateral”):kbrelectivedeferralplanr

           KBR  ELECTIVE DEFERRAL PLAN      Restated September 1, 2019                  

 

                            TABLE OF CONTENTS   I. Definitions and Construction ....................................................................................................... 2    1.1   Definitions....................................................................................................................... 2    1.2   Number and Gender ........................................................................................................ 5    1.3   Headings ......................................................................................................................... 5   II. Participation ............................................................................................................................... 5    2.1   Participation .................................................................................................................... 5    2.2   Cessation of Active Participation.................................................................................... 5   III. Deferral Account Credits; Investment Elections ...................................................................... 6    3.1   Base Salary Deferrals ...................................................................................................... 6    3.2   Bonus Compensation Deferrals ...................................................................................... 6    3.3   Long-Term Incentive Compensation Deferrals .............................................................. 7    3.4   Investment of Deferral Accounts .................................................................................... 7   IV. Emergency Withdrawals ........................................................................................................... 8   V. Payment of Benefits ................................................................................................................... 8    5.1   Payment Election Generally ........................................................................................... 8    5.2   Time of Benefit Payment ................................................................................................ 9    5.3   Form of Benefit Payment ................................................................................................ 9    5.4   Total and Permanent Disability ...................................................................................... 9    5.5   Death ............................................................................................................................. 10    5.6   Designation of Beneficiaries ......................................................................................... 10    5.7   Other Separation from Service ...................................................................................... 10    5.8   Payment of Benefits ...................................................................................................... 10    5.9   Unclaimed Benefits ....................................................................................................... 10    5.10  No Acceleration of Bonus or Long-Term Incentive Compensation ............................. 11   VI. Administration of the Plan ...................................................................................................... 11    6.1   Committee Powers and Duties ...................................................................................... 11    6.2   Self-Interest of Participants........................................................................................... 12    6.3   Claims Review .............................................................................................................. 12    6.4   Employer to Supply Information .................................................................................. 13    6.5   Indemnity ...................................................................................................................... 13   VII. Administration of Funds ........................................................................................................ 13    7.1   Payment of Expenses .................................................................................................... 13    7.2   Trust Fund Property ...................................................................................................... 13   VIII. Nature of the Plan ................................................................................................................ 13   IX. Participating Employers.......................................................................................................... 14   X. Miscellaneous........................................................................................................................... 15    10.1  Not Contract of Employment ........................................................................................ 15                                         i  

 

  10.2  Alienation of Interest Forbidden ................................................................................... 15    10.3  Withholding .................................................................................................................. 15    10.4  Amendment and Termination ....................................................................................... 15    10.5  Severability ................................................................................................................... 16    10.6  Governing Laws ............................................................................................................ 16    10.7  Section 409A Compliance ............................................................................................ 16   Schedule A .................................................................................................................................. A-1   Appendix A ................................................................................................................................. A-1   III. Grandfathered Plan Account Credits; Investment Elections ................................................ A-2    3.1   Base Salary Deferrals .................................................................................................. A-2    3.2   Bonus Compensation Deferrals .................................................................................. A-2    3.3   Long-Term Incentive Compensation Deferrals .......................................................... A-2    3.4   Investment of Grandfathered Plan Accounts .............................................................. A-2   IV. Withdrawals .......................................................................................................................... A-3    4.1   Emergency Withdrawals ............................................................................................. A-3    4.2   Non-Emergency Withdrawals ..................................................................................... A-3   V. Payment of Benefits ............................................................................................................... A-4    5.1   Payment Election Generally ....................................................................................... A-4    5.2   Time of Benefit Payment ............................................................................................ A-4    5.3   Form of Benefit Payment ............................................................................................ A-4    5.4   Total and Permanent Disability .................................................................................. A-5    5.5   Death ........................................................................................................................... A-5    5.6   Other Termination of Employment ............................................................................. A-5    5.7   Payment of Benefits .................................................................................................... A-5    5.8   No Acceleration of Bonus or Long-Term Incentive Compensation ........................... A-6                                            ii  

 

                      KBR ELECTIVE DEFERRAL PLAN                                W I T N E S S E T H:         WHEREAS, the Board of Directors of Halliburton Company (“Halliburton”) previously  adopted the Halliburton Company Elective Deferral Plan, as most recently amended and restated  prior to the Deconsolidation Date effective May 1, 2002, for the benefit of its employees and the  employees of its subsidiaries to aid such employees in making more adequate provision for their  retirement; and         WHEREAS, Halliburton took action on the Deconsolidation Date to split-off KBR, Inc.  (the  “Company”)  and  its  subsidiaries  such  that  they  ceased  to  be  members  of  the  Halliburton  controlled group; and         WHEREAS, the Company desired to provide benefits for certain of its new employees  including certain current employees who had previously participated in the HAL Plan; and         WHEREAS, pursuant to the terms of the HAL Plan, each Employer thereunder was liable  for the benefits related to its employees, and the Company and the Employers hereunder continued  to provide to such employees an opportunity to make deferrals of certain amounts, consistent with  the provisions of Section 409A; and         WHEREAS, the provisions of the HAL Plan, as amended through the Deconsolidation  Date, will remain in effect for all deferrals prior to the Deconsolidation Date; and         WHEREAS, the Company preserved the material terms of the HAL Plan as in effect on  December 31,  2004  in  order  that  the  Grandfathered  Plan  qualify  as  a  grandfathered  plan  for  purposes of Section 409A; and         WHEREAS, certain provisions applicable solely to the Grandfathered Plan are preserved  in Appendix A, for purposes of determining the terms applicable to amounts deferred under the  Grandfathered  Plan,  which  provisions  shall  be  substituted  for  the  corresponding  provisions  contained herein; and         WHEREAS,  the  Company  previously  amended  and  restated  the  Plan  effective  December 31, 2010, without making any changes to the material terms of the Grandfathered Plan;  and         WHEREAS,  the  Company  desires  to  make  certain  amendments  to  the  Plan  effective  September 1, 2019, without making any changes to the material terms of the Grandfathered Plan.         NOW THEREFORE, the Plan, including the Grandfathered Plan, is hereby restated to  include the terms set forth below, effective as of the Effective Date:      

 

                                      I.                                                                     Definitions and Construction         1.1   Definitions. Where the following words and phrases appear in the Plan, they shall  have the respective meanings set forth below, unless their context clearly indicates to the contrary.   (1)   Act: The Employee Retirement Income Security Act of 1974, as amended.   (2)   Affiliate: Any entity of which an aggregate of 50% or more of the ownership interest is        owned  of  record  or  beneficially,  directly  or  indirectly,  by  the  Company  or  any  other        Affiliate.   (3)   Base Salary: The base rate of cash compensation (inclusive of cash overtime pay) paid by        the Employer to or for the benefit of a Participant for services rendered or labor performed        while  a  Participant,  including  base  pay (and  overtime  pay) a  Participant  could  have        received  in  cash  in  lieu  of (a) deferrals  pursuant  to Section 3.1  and (b) elective        contributions made on his or her behalf to any qualified plan maintained by the Employer        or to any cafeteria plan under Section 125 of the Code maintained by the Employer.   (4)   Bonus Compensation: With respect to any Participant for a Plan Year, remuneration based        on calendar year performance under an annual incentive compensation plan maintained by        the Employer that is payable to the Participant in cash.   (5)   Code: The Internal Revenue Code of 1986, as amended.   (6)   Committee: The administrative committee appointed by the Compensation Committee to        administer the Plan.   (7)   Compensation Committee: The Compensation Committee of the Directors.   (8)   Company:  KBR,  Inc.,  or,  only  for  amounts  deferred  under  the  HAL  Plan  and  similar        purposes, Halliburton Company.    (9)   Credited Investment Return: The hypothetical gain or loss credited to a Participant’s        Deferral Account or Grandfathered Plan Account, as applicable, pursuant to the applicable        provisions of Section 3.4(e).   (10)  Deconsolidation Date: The date upon which the amount of the Company stock owned        directly or indirectly by Halliburton Company was reduced to less than the amount required        for  Halliburton  Company  to  control  the  Company  within  the  meaning  of        Section 1504(a)(2) of the Code.   (11)  Deemed Investment Elections: The investment elections described in Section 3.4.   (12)  Deferral Account: A memorandum bookkeeping account established on the records of the        Employer  for  a  Participant  that  is  credited  with  specified  deferrals,  and  the  Credited        Investment Return determined in accordance with Section 3.4(e) of the Plan, made and                                         2  

 

      earned after December 31, 2004. A Participant shall have a 100% nonforfeitable interest in        his or her Deferral Account at all times.   (13)  Deferral  and  Investment  Election  Form:  The  form  or  procedure prescribed  by  the        Committee pursuant to which a Participant elects for a particular Plan Year (a) the deferral        of a portion of his or her Base Salary, Bonus Compensation and/or Long-Term Incentive        Compensation, and (b) one or more Deemed Investment Options into which amounts to be        allocated to his or her Deferral Account in respect of such deferrals for such Plan Year will        be deemed invested.   (14)  Determination Date: The date on which the amount of a Participant’s Deferral Account        or Grandfathered Plan Account is determined as provided in Section 3.4, as applicable. The        last day of each month shall be a Determination Date. As of any Determination Date, a        Participant’s aggregate benefit under the Plan shall be equal to the amount credited to his        or her Deferral Account and Grandfathered Plan Account, if applicable, as of such date.   (15)  Directors: The Board of Directors of the Company.   (16)  Effective Date: The effective date of this restatement is September 1, 2019. The original        effective date of the Plan is the Deconsolidation Date.   (17)  Eligible  Employee:  Any  Employee  who  is (a) a regular  Full-Time  Active  Employee,        (b) paid in United States dollars and subject to the income tax laws of the United States,        (c) an  officer  or  member  of  a  select  group  of  highly  compensated  employees  of  the        Employer, and (d) employed on or after the Effective Date.   (18)  Employee: Any person employed by the Employer.   (19)  Employer: The Company, each of the entities identified on Schedule A and each eligible        organization designated as an Employer in accordance with the provisions of Article IX of        the Plan.   (20)  Full-Time  Active  Employee:  An  Employee  whose  employment  with  the  Employer        requires, and who regularly and actively performs, 30 or more hours of service for the        Employer each week at a usual place of business of the Employer or at a location to which        such Employee is required or permitted to travel on behalf of the Employer for which such        Employee is paid regular compensation.   (21)  Grandfathered Plan: The Halliburton Elective Deferral Plan as in effect on December 31,        2004, the material terms of which have not been materially modified (within the meaning        of Section 409A) after October 3, 2004, and are preserved and continued in the Plan as        reflected in Appendix A.   (22)  Grandfathered Plan Account: A memorandum bookkeeping account established on the        records  of  the  Employer  for  a  Participant  that  is  credited  with  specified  deferrals  of        amounts earned and vested prior to January 1, 2005, and the Credited Investment Return        on such amounts determined in accordance with Section 3.4(e) of the Grandfathered Plan.                                          3  

 

      A Participant has a 100% non-forfeitable interest in his or her Grandfathered Plan Account        at all times.   (23)  HAL  Plan:  The  Halliburton  Elective  Deferral  Plan,  as  amended  and  restated  effective        May 1,  2002  and  as  subsequently  amended  with  respect  to  any  period  up  to  the        Deconsolidation Date.   (24)  Investment Election Change Form: The form or procedure prescribed by the Committee        pursuant  to  which  a  Participant may  make  changes  to  his  or  her  Deemed  Investment        Elections applicable to future allocations to his or her Deferral Account or Grandfathered        Plan Account and/or to his or her current Deferral Account balance or Grandfathered Plan        Account balance.   (25)  Investment  Options:  One  or  more  alternatives  designated  from  time  to  time  by  the        Committee  for  purposes  of  crediting  earnings  or  losses  to  Deferral  Accounts  and        Grandfathered Plan Accounts.   (26)  Long-Term Incentive Compensation: Awards, other than Bonus Compensation and Base        Salary, earned under such plans or programs as the Compensation Committee may, from        time to time, designate that are payable in cash.   (27)  Participant: Each individual who has been selected for participation in the Plan and who        has become a Participant pursuant to Article II.   (28)  Plan:  The  KBR  Elective  Deferral  Plan,  as  amended  from  time  to  time,  constituting  a        continuation of the HAL Plan.   (29)  Plan Year: The twelve consecutive month period commencing January 1 of each year.   (30)  Retirement:  The  date  the  Participant  separates  from  service  within  the  meaning  of        Section 409A after attaining age 55 or after the sum of the Participant’s age and years of        service is 70 or greater.   (31)  Section 409A: Section 409A of the Code and applicable Treasury authorities.   (32)  Trust: The trust, if any, established under the Trust Agreement.   (33)  Trust  Agreement:  The  agreement,  if  any,  entered  into  between  the  Employer  and  the        Trustee pursuant to Article VIII.   (34)  Trust Fund: The funds and properties, if any, held pursuant to the provisions of the Trust        Agreement, together with all income, profits and increments thereto.   (35)  Trustee: The trustee or trustees appointed by the Committee who are qualified and acting        under the Trust Agreement at any time.   (36)  Unforeseeable Emergency: A severe financial hardship to the Participant or beneficiary        resulting from an illness or accident of the Participant or beneficiary, the Participant’s or                                         4  

 

      beneficiary’s spouse or of a dependent (as defined in Section 152 of the Code, without        regard to Section 152(b)(1), (b)(2) and (d)(1)(B) of the Code) of the Participant; loss of the        Participant’s or beneficiary’s property due to casualty (including the need to rebuild a home        following  damage  to  a  home  not  otherwise  covered  by  insurance);  or  other  similar        extraordinary and unforeseeable  circumstances  arising as  a  result of events  beyond the        control of the Participant or beneficiary; provided, however, that such circumstances meet        the  definition  of  “unforeseeable  emergency”  under Section 409A,  related  Treasury        pronouncements and any successor thereto.         1.2   Number and Gender. Wherever appropriate herein, words used in the singular  shall be considered to include the plural and words used in the plural shall be considered to include  the singular. The masculine gender, where appearing in the Plan, shall be deemed to include the  feminine gender.         1.3   Headings. The headings of Articles and Sections herein  are included solely for  convenience, and if there is any conflict between such headings and the text of the Plan, the text  shall control.                                        II.                                                                            Participation         2.1   Participation. Each individual who was a Participant in the Plan immediately prior  to the Effective Date shall continue as a Participant in the Plan as of the Effective Date.  From and  after the Effective Date, Participants shall also include those Eligible Employees who are selected  by  the  Committee,  in  its  sole  discretion,  as  Participants.  The  Committee  shall  notify  each  Participant  of  his  or  her  selection  as  a  Participant.  Subject  to  the  provisions  of Section 2.2,  a  Participant shall remain eligible to defer Base Salary, Bonus Compensation and/or Long-Term  Incentive  Compensation  hereunder  for  each  Plan  Year  following  his  or  her  initial  year  of  participation in the Plan.         2.2   Cessation of Active Participation. Notwithstanding any provision herein to the  contrary, an individual who has become a Participant in the Plan shall cease to be entitled to defer  Base Salary, Bonus Compensation and/or Long-Term Incentive Compensation hereunder effective  as of the date he or she ceases to be an Eligible Employee; provided, however, that any irrevocable  deferral election made prior to the time that the Participant ceased to be an Eligible Employee shall  remain in effect to the extent required by Section 409A. Any such cessation of the right to defer  pursuant to the preceding sentence that is not in connection with a separation from service within  the  meaning  of  Section  409A shall  be  communicated  to  the  affected  individual as  soon  as  administratively feasible.                                          5  

 

                                     III.                                                             Deferral Account Credits; Investment Elections         3.1   Base Salary Deferrals.               (a)   Any Participant may elect to defer receipt of an integral percentage of from  5% to 75% of his or her Base Salary, in 5% increments, for any Plan Year. Notwithstanding the  foregoing, however, in no event may the deferred amount under this Section 3.1(a) exceed the  percentage of the Participant’s Base Salary remaining as of the first pay period of the Plan Year  after application of all other amounts withheld from the Participant’s Base Salary for any reason,  including amounts withheld due to tax withholding or pursuant to the Participant’s elections, as in  effect  on January 1 of  the  Plan  Year,  under  any  other  plans  maintained  by  the  Employer.  A  Participant’s election to defer receipt of a percentage of his or her Base Salary for any Plan Year  shall be made on or before the last day of the preceding Plan Year. Notwithstanding the foregoing,  if an individual initially becomes eligible to participate in the Plan other than on the first day of a  Plan Year, such Participant’s election to defer receipt of a percentage of his or her Base Salary for  such Plan Year may be made no later than 30 days after the date he or she becomes eligible to  participate in the Plan, but such election shall be prospective only. The reduction in a Participant’s  Base Salary pursuant to his or her election shall be effected by Base Salary reductions as of each  payroll period within the election period. Deferrals of Base Salary under the Plan shall be made  before elective deferrals or contributions of Base Salary under any other plan maintained by the  Employer.  Base  Salary  deferrals  made  by  a  Participant  shall  be  credited  to  such  Participant’s  Deferral  Account  as  of  the  date  the  Base  Salary  deferred  would  have  been  received  by  such  Participant had no deferral been made pursuant to this Section. Except as provided in Paragraph (b)  of this Section, deferral elections for a Plan Year pursuant to this Section shall be irrevocable.               (b)   If  a  revocation  would  not  result  in  taxation  under Section 409A,  a  Participant shall be permitted to revoke his or her election to defer receipt of his or her Base Salary  under Section 3.1(a) for any Plan Year in the event of an Unforeseeable Emergency, as determined  by the Committee in its sole discretion. For purposes of the Plan, the decision of the Committee  regarding the existence or nonexistence of an Unforeseeable Emergency of a Participant shall be  final  and  binding.  Further,  the  Committee  shall  have  the  authority  to  require  a  Participant  to  provide such proof as it deems necessary to establish the existence and significant nature of the  Participant’s Unforeseeable Emergency. A Participant who is permitted to revoke his or her Base  Salary deferral election during a Plan Year shall not be permitted to resume Base Salary deferrals  under the Plan until the next following Plan Year.         3.2   Bonus Compensation Deferrals. Any Participant may elect to defer receipt of an  integral percentage of from 5% to 75% of his or her Bonus Compensation, in 5% increments, for  any  Plan  Year.  A  Participant’s  election  to  defer  receipt  of  a percentage  of  his  or  her  Bonus  Compensation attributable to services performed in any Plan Year shall be made on or before the  last day of the preceding Plan Year; provided, however, that to the extent Bonus Compensation  satisfies  the  requirements  for  performance-based  compensation  under Section 409A,  the  Committee may allow a Participant to make a deferral election no later than the date that is six  months  before  the  end  of  the  performance  period  for  which  the  Bonus  Compensation  is  paid  (provided that such compensation has  not  become readily  ascertainable as  of the date of such                                         6  

 

election). Notwithstanding the foregoing, if any individual initially becomes eligible to participate  in the Plan other than on the first day of a Plan Year, such Participant’s election to defer receipt of  a percentage of his or her Bonus Compensation for such Plan Year may be made no later than 30  days  after  the  date  he  or  she  becomes  eligible  to  participate  in  the  Plan,  with  the  Bonus  Compensation prorated as provided under Section 409A. Deferrals of Bonus Compensation under  the Plan shall be made before elective deferrals or contributions of Bonus Compensation under  any other plan maintained by the Employer. Bonus Compensation deferrals made by a Participant  shall be credited to such Participant’s Deferral Account as of the date the Bonus Compensation  deferred would have been received by such Participant had no deferral been made pursuant to this  Section 3.2. Deferral elections for a Plan Year pursuant to this Section shall be irrevocable.         3.3   Long-Term  Incentive  Compensation  Deferrals.  Any  Participant  may  elect  to  defer receipt of an integral percentage of from 5% to 75% of his or her Long-Term Incentive  Compensation,  in  5%  increments,  payable  in  any  Plan  Year.  A  Participant’s  election to  defer  receipt of a percentage of his or her Long-Term Incentive Compensation payable with respect to  any performance cycle shall be made on or before the last day of the Plan Year preceding the first  Plan Year of the performance cycle; provided, however, that to the extent the Long-Term Incentive  Compensation  satisfies  the  requirements  for  performance-based  compensation  under Section  409A, the Committee may allow a Participant to make a deferral election no later than the date  that is six months prior to the end of such performance cycle (provided that (a) the Participant  performs services continuously from the later of the beginning of the performance cycle or the  date the performance criteria are established through the date such election is made and (b) such  compensation has not become readily ascertainable as of the date of such election). Long-Term  Incentive Compensation deferrals made by a Participant shall be credited to such Participant’s  Deferral Account as of the date the Long-Term Incentive Compensation deferred would have been  received  by  such  Participant  had  no  deferral  been  made pursuant  to  this Section 3.3.  Deferral  elections pursuant to this Section shall be irrevocable.         3.4   Investment of Deferral Accounts.               (a)   As of any Determination Date, each Participant’s Deferral Account shall  consist  of  the  balance  of  the  Participant’s  Deferral  Account  as  of  the  immediately  preceding  Determination Date adjusted for:                     (1)   additional deferrals pursuant to Sections 3.1, 3.2 and/or 3.3;                     (2)   distributions (if any); and                     (3)   the appropriate Credited Investment Return.         All  adjustments  will  be  recorded  to  the  Participants’  Deferral  Accounts  as  of  each  Determination Date.               (b)   The Committee shall designate from time to time one or more Investment  Options in which the Deferral Accounts may be deemed invested. The Committee shall have the  sole discretion to determine the number of Investment Options to be designated hereunder and the  nature of the Investment Options and may change or eliminate any of the Investment Options from  time to time. In the event of such change or elimination, the Committee shall give each Participant                                         7  

 

timely  notice  and  opportunity  to  make  a  new  election.  No  such  change  or  elimination  of  any  Investment Options shall be considered to be an amendment to the Plan pursuant to Section 10.4.  A  Participant  may  request  that  his  or  her  Deferral  Account  be  allocated among  the  deemed  Investment Options. If a Participant fails to make an election, his or her Deferral Account shall be  deemed invested in a single fund selected by the Committee.               (c)   A  Participant  shall,  in  connection  with  his  or  her  election  to  defer  Base  Salary,  Bonus  Compensation  and/or  Long-Term  Incentive  Compensation  for  a  particular  Plan  Year,  elect  one  or  more  Investment  Options  into  which  amounts  to  be allocated  to  his  or  her  Deferral Account in respect of deferrals for such Plan Year shall be deemed invested by submitting  on or before the last day of the preceding Plan Year (or on or before the last day a Participant may  make his election to defer an amount subject to the 30-day requirement for new Participants, or  the  six-month  requirement  for  performance-based  compensation)  a  Deferral  and  Investment  Election Form in accordance with the procedures prescribed by the Committee.               (d)   A  Participant  may  request  a  change  to  his  or  her  Deemed  Investment  Elections  for  future  amounts  allocated  to  his  or  her  Deferral Account  and  amounts  already  allocated  to  his  or  her  Deferral  Account.  Any  such  change  shall  be  made  by  filing  with  the  Committee  an  Investment  Election  Change  Form.  The  Committee  shall  establish  procedures  relating to changes in Deemed Investment Elections, which may include limiting the percentage,  amount and frequency of such changes and specifying the effective date for any such changes.               (e)   Each  Participant’s  Deferral  Account  shall  be  credited  monthly  with  the  Credited Investment Return attributable to his or her Deferral Account. The Credited Investment  Return is the amount that the Participant’s Deferral Account would have earned if the amounts  credited to the Deferral Account had, in fact, been invested in accordance with the Participant’s  Deemed Investment Elections.                                        IV.                                                                       Emergency Withdrawals         Participants shall be permitted to make withdrawals from the Plan, without penalty, only  in the event of an Unforeseeable Emergency, as determined by the Committee in its sole discretion.  No withdrawal shall be allowed to the extent that such Unforeseeable Emergency is or may be  relieved (a) through reimbursement or compensation by insurance or otherwise, (b) by liquidation  of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe  financial  hardship  or (c) by  cessation  of  Base  Salary  deferrals  under  the  Plan  pursuant  to  Section 3.1(b). Further, the Committee shall permit a Participant to withdraw only the amount it  determines, in its sole discretion, to be reasonably needed to satisfy the Unforeseeable Emergency.                                         V.                                                                         Payment of Benefits         5.1   Payment Election Generally. In conjunction with each deferral election made by  a  Participant  pursuant  to Article III for  a  Plan  Year,  such  Participant  shall  elect,  subject  to                                         8  

 

Sections 5.4, 5.5 and 5.7, the time and the form of payment with respect to such deferral and the  Credited Investment Returns attributable thereto.         5.2   Time  of  Benefit  Payment.  With  respect  to  each  deferral  election  made  by  a  Participant  pursuant  to Article III,  such  Participant  shall  elect  to  commence  payment  of  such  deferral, and the Credited Investment Returns attributable thereto, on one of the following dates:               (a)   Retirement; or               (b)   On a specific future month and year, but not earlier than five years from the  date of the deferral if the Participant has not attained age fifty-five at the time of the deferral or  one year from the date of the deferral if the Participant has attained age fifty-five at the time of the  deferral, and not later than the first day of the year in which the Participant attains age seventy.                     For purposes of the Plan, all Participants shall be “specified employees”  within the meaning of Section 409A(a)(2)(B)(i) of the Code. Accordingly, any payments payable  as a result of the Employee’s termination of employment (other than death or disability (as defined  under Section 409A)) shall not be payable before the earlier of (i) the date that is six months after  the Employee’s termination of employment, (ii) the date of the Employee’s death, or (iii) the date  that otherwise complies with the requirements of Section 409A.         5.3   Form  of  Benefit  Payment.  With  respect  to  each  deferral  election  made  by  a  Participant pursuant to Article III, such Participant shall elect the form of payment with respect to  such deferral and the Credited Investment Returns attributable thereto from one of the following  forms:               (a)   A lump sum; or               (b)   Annual installment payments for a period not to exceed ten years.         Annual installment payments shall be paid on or before the last business day of January of  each Plan Year. Each installment payment shall be determined by multiplying the deferral and the  Credited  Investment  Returns  attributable  thereto  at  the  time  of  the  payment  by  a  fraction,  the  numerator of which is one and the denominator of which is the number of remaining installment  payments to be made to the Participant.         Notwithstanding any provision of the Plan to the contrary, in the event the amount credited  to a Participant’s Deferral Account does not exceed the limit under Section 402(g)(1)(B) of the  Code, the Deferral Account shall be paid only in the form of a lump sum. The provisions of this  paragraph shall only apply if and to the extent permitted under Section 409A.         5.4   Total and Permanent Disability. If a Participant becomes totally and permanently  disabled while employed by the Employer, payment of the amounts credited to such Participant’s  Deferral  Account  shall  commence  on  the  first  business  day  of  the  second  calendar  quarter  following  the date  the  Committee  makes  a  determination  that  the  Participant  is  totally  and  permanently disabled, in the form of payment determined in accordance with Section 5.3. The  above notwithstanding, if such Participant is already receiving payments pursuant to Section 5.2(b)  and Section 5.3(b), such payments shall continue. For purposes of the Plan, a Participant shall be                                         9  

 

considered  totally  and  permanently  disabled  if  the  Committee  determines,  based  on  a  written  medical  opinion  (unless  waived  by  the  Committee  as  unnecessary),  that  such  Participant  is  disabled within the meaning of Section 409A(a)(2)(C) of the Code.         5.5   Death. In the event of a Participant’s death at a time when amounts are credited to  such Participant’s Deferral Account, such amounts shall be paid to such Participant’s designated  beneficiary or beneficiaries in a lump sum within 74 days after the Participant’s death.         5.6   Designation of Beneficiaries.               (a)   Each  Participant  shall  have  the  right  to  designate  the  beneficiary  or  beneficiaries to receive payment of his or her benefit in the event of his or her death. Each such  designation shall be made by executing and submitting the beneficiary designation form prescribed  by the Committee. Any  such designation may  be changed  at  any  time by  execution of  a new  designation in accordance with this Section.               (b)   If no such designation is on file with the Committee at the time of the death  of  the  Participant  or  such  designation  is  not  effective  for  any  reason  as  determined  by  the  Committee, then the designated beneficiary or beneficiaries to receive such benefit shall be as  follows:                     (1)   If a Participant leaves a surviving spouse, his or her benefit shall be                          paid to such surviving spouse.                     (2)   If a Participant leaves no surviving spouse, his or her benefit shall                          be paid to such Participant’s executor or administrator, or to his or                          her heirs at law if there is no administration of such Participant’s                          estate.         5.7   Other  Separation  from  Service.  Subject  to  the  provisions  of Section 5.2, if  a  Participant has a separation from service within the meaning of Section 409A(a)(2)(A)(i) of the  Code before Retirement for a reason other than total and permanent disability or death, the amounts  credited to such Participant’s Deferral Account shall be paid to the Participant in a lump sum sixty  days after the Participant’s date of separation from service. For purposes of this Section, transfers  of employment between and among the Company and any of its Affiliates shall not be considered  a separation from service.         5.8   Payment of Benefits. To the extent the Trust Fund, if any, has sufficient assets, the  Trustee shall pay benefits to Participants or their beneficiaries, except to the extent the Employer  pays the benefits directly and provides adequate evidence of such payment to the Trustee. To the  extent the Trustee does not or cannot pay benefits out of the Trust Fund, the benefits shall be paid  by the Employer. Any benefit payments made to a Participant or for his or her benefit pursuant to  any provision of the Plan shall be debited to such Participant’s Deferral Account or Grandfathered  Plan  Account,  as  applicable.  All  benefit  payments  shall  be  made  in  cash  to  the  fullest  extent  practicable.         5.9   Unclaimed Benefits. In the case of a benefit payable on behalf of a Participant, if  the Committee is unable to locate the Participant or beneficiary to whom such benefit is payable,                                         10  

 

upon  the  Committee’s  determination  thereof,  such  benefit  shall  be  forfeited  to  the  Employer.  Notwithstanding the foregoing, if subsequent to any such forfeiture the Participant or beneficiary  to whom such benefit is payable makes a valid claim for such benefit, such forfeited benefit shall  be paid by the Employer or restored to the Plan by the Employer.         5.10  No Acceleration of Bonus or Long-Term Incentive Compensation. The time of  payment of any Bonus Compensation or Long-Term Incentive Compensation that the Participant  has elected to defer but that has not yet been credited to the Participant’s Deferral Account because  it  is  not  yet  payable  without  regard  to  the  deferral  shall  not  be  accelerated as  a  result  of  the  provisions of this Article. If, pursuant to the provisions of this Article, payment of such Bonus  Compensation or Long-Term Incentive Compensation would no longer be deferred at the time it  becomes payable, such Bonus Compensation or Long-Term Incentive Compensation shall be paid  to the Participant as soon as practicable following the date it would have been payable had the  Participant not made a deferral election.                                        VI.                                                                      Administration of the Plan         6.1   Committee Powers and Duties. The general administration of the Plan shall be  vested in the Committee. The Committee shall supervise the administration and enforcement of  the  Plan  according  to  the  terms  and  provisions  hereof  and  shall  have  all  powers  necessary  to  accomplish these purposes, including, but not by way of limitation, the right, power, authority, and  duty:               (a)   To make rules, regulations, procedures and bylaws for the administration of  the Plan that are not inconsistent with the terms and provisions hereof, and to enforce the terms of  the Plan and the rules and regulations promulgated thereunder by the Committee;               (b)   To designate, change and eliminate Investment Options in which Deferral  Accounts and Grandfathered Plan Accounts may be deemed invested and to establish procedures  relating to elections of Investment Options by Participants;               (c)   To  construe  in  its  discretion  all  terms,  provisions,  conditions,  and  limitations of the Plan, including any associated documents;               (d)   To  correct  any  defect  or  to  supply  any  omission  or  to  reconcile  any  inconsistency that may appear in the Plan in such manner and to such extent as it shall deem in its  discretion expedient to effectuate the purposes of the Plan;               (e)   To  employ  and  compensate  such  accountants,  attorneys,  investment  advisors, and other agents, employees, and independent contractors as the Committee may deem  necessary or advisable for the proper and efficient administration of the Plan;               (f)   To determine in its discretion all questions relating to eligibility;               (g)   To determine whether and when a Participant has incurred a separation from  service with the Employer, and the reason for such separation;                                         11  

 

            (h)   To make a determination in its discretion as to the right of any person to a  benefit under the Plan and the amount and to prescribe procedures to be followed by distributees  in obtaining benefits hereunder; and               (i)   To receive and review reports from the Trustee as to the financial condition  of the Trust Fund, if any, including its receipts and disbursements.         6.2   Self-Interest of Participants. No member of the Committee shall have any right  to vote or decide upon any matter relating solely to himself under the Plan (including, without  limitation,  Committee  decisions  under Article II)  or  to  vote  in  any  case  in  which  his  or  her  individual right to claim any benefit under the Plan is particularly involved. In any case in which  a  Committee  member  is  so  disqualified  to  act  and  the  remaining  members  cannot  agree,  the  Compensation Committee shall appoint a temporary substitute member to exercise all the powers  of the disqualified member concerning the matter in which he or she is disqualified.         6.3   Claims Review. In any case in which a claim for Plan benefits of a Participant or  beneficiary is denied or modified, the Committee shall furnish written notice to the claimant within  ninety days (or within 180 days if additional information requested by the Committee necessitates  an extension of the ninety-day period), which notice shall:               (a)   State the specific reason or reasons for the denial or modification;               (b)   Provide specific reference to pertinent Plan provisions on which the denial  or modification is based;               (c)   Provide a description of any additional material or information necessary  for the Participant, his or her beneficiary, or representative to perfect the claim and an explanation  of why such material or information is necessary; and               (d)   Explain the Plan’s claim review procedure as contained herein.   In the event a claim for Plan benefits is denied or modified, if the Participant, his or her beneficiary,  or a representative of such Participant or beneficiary desires to have such denial or modification  reviewed,  he  or  she  must,  within  sixty  days  following  receipt  of  the  notice  of  such  denial  or  modification,  submit  a  written  request  for  review  by  the  Committee  of  its  initial  decision.  In  connection with such request, the Participant, his or her beneficiary, or the representative of such  Participant  or  beneficiary  may  review  any  pertinent  documents  upon  which  such  denial  or  modification  was  based  and  may  submit  issues  and  comments  in  writing.  Within  sixty  days  following such request  for review the Committee shall, after providing  a full  and  fair review,  render its final decision in writing to the Participant, his or her beneficiary or the representative of  such  Participant  or  beneficiary  stating  specific  reasons  for  such  decision  and  making  specific  references to pertinent Plan provisions upon which the decision is based. If special circumstances  require an extension of such sixty-day period, the Committee’s decision shall be rendered as soon  as possible, but not later than 120 days after receipt of the request for review. If an extension of  time for review is required, written notice of the extension shall be furnished to the Participant,  beneficiary, or the representative of such Participant or beneficiary prior to the commencement of  the extension period.                                          12  

 

      6.4   Employer  to  Supply  Information.  The  Employer  shall  supply  full  and  timely  information  to  the  Committee,  including,  but  not  limited  to,  information  relating  to  each  Participant’s compensation, age, retirement, death, or other cause of separation from service to the  Employer and such other pertinent facts as the Committee may require. The Employer shall advise  the Trustee, if any, of such of the foregoing facts as are deemed necessary for the Trustee to carry  out the Trustee’s duties under the Plan and the Trust Agreement. When making a determination in  connection with the Plan, the Committee shall be entitled to rely upon the aforesaid information  furnished by the Employer.         6.5   Indemnity. The Company shall indemnify and hold harmless each member of the  Committee against any and all expenses  and liabilities arising out of his or her administrative  functions or fiduciary responsibilities, including any expenses and liabilities that are caused by or  result from an act or omission constituting the negligence of such member in the performance of  such functions or responsibilities, but excluding expenses and liabilities that are caused by or result  from such member’s own gross negligence or willful misconduct. Expenses against which such  member  shall  be  indemnified  hereunder  shall  include,  without  limitation,  the  amounts  of  any  settlement or judgment, costs, counsel fees, and related charges reasonably incurred in connection  with a claim asserted or a proceeding brought or settlement thereof.                                        VII.                                                                       Administration of Funds         7.1   Payment of Expenses. All expenses incident to the administration of the Plan and  Trust, including but not limited to, legal, accounting, Trustee fees, and expenses of the Committee,  may be paid by the Employer and, if not paid by the Employer, shall be paid by the Trustee from  the Trust Fund, if any.         7.2   Trust Fund Property. All income, profits, recoveries, contributions, forfeitures  and any and all moneys, securities and properties of any kind at any time received or held by the  Trustee, if any, shall be held for investment purposes as a commingled Trust Fund pursuant to the  terms  of  the  Trust  Agreement.  The  Committee  shall  maintain  one  or  more  Deferral  Accounts  and/or  Grandfathered  Plan  Accounts,  as  necessary,  in  the  name  of  each  Participant,  but  the  maintenance of any such account designated as the account of a Participant shall not mean that  such Participant shall have a greater or lesser interest than that due him or her by operation of the  Plan and shall not be considered as segregating any funds or property from any other funds or  property contained in the commingled fund. No Participant shall have any title to any specific asset  in the Trust Fund, if any.                                       VIII.                                                                          Nature of the Plan         The Employer intends and desires by the adoption of the Plan to recognize the value to the  Employer of the past and present services of employees covered by the Plan and to encourage and  assure their continued service with the Employer by making more adequate provision for their  future  retirement  security.  The  Plan  is  intended  to  constitute  an  unfunded,  unsecured  plan  of                                         13  

 

deferred compensation for a select group of management or highly compensated employees of the  Employer. Plan benefits herein provided are to be paid out of the Employer’s general assets. The  Plan constitutes a mere promise by the Employers to make benefit payments in the future and  Participants have the status of general unsecured creditors of the Employers. Nevertheless, subject  to the terms hereof and of the Trust Agreement, if any, the Employers, or the Company on behalf  of the Employers, may transfer money or other property to the Trustee and the Trustee shall pay  Plan benefits to Participants and their beneficiaries out of the Trust Fund.         The Committee, in its sole discretion, may establish the Trust and direct the Employers to  enter into the Trust Agreement and adopt the Trust for purposes of the Plan. In such event, the  Employers shall remain the owner of all assets in the Trust Fund and the assets shall be subject to  the claims of each Employer’s creditors if such Employer ever becomes insolvent. For purposes  hereof, an Employer shall be considered “insolvent” if (a) the Employer is unable to pay its debts  as they become due, or (b) the Employer is subject to a pending proceeding as a debtor under the  United States Bankruptcy Code (or any successor federal statute). The chief executive officer of  the Employer and its board of directors shall have the duty to inform the Trustee in writing if the  Employer becomes insolvent. Such notice given under the preceding sentence by any party shall  satisfy all of the parties’ duty to give notice. When so informed, the Trustee shall suspend payments  to the Participants and hold the assets for the benefit of the Employer’s general creditors. If the  Trustee receives  a written allegation that the Employer is  insolvent,  the  Trustee shall suspend  payments to the Participants and hold the Trust Fund for the benefit of the Employer’s general  creditors,  and shall determine within the period  specified in  the Trust  Agreement  whether the  Employer is insolvent. If the Trustee determines that the Employer is not insolvent, the Trustee  shall resume payments to the Participants. No Participant or beneficiary shall have any preferred  claim to, or any beneficial ownership interest in, any assets of the Trust Fund.                                        IX.                                                                       Participating Employers         The Committee may designate any entity or organization eligible by law to participate in  the Plan as an Employer by written instrument delivered to the Secretary of the Company and the  designated Employer. Such written instrument shall specify the effective date of such designated  participation, may incorporate specific provisions relating to the operation of the Plan which apply  to  the  designated  Employer  only  and  shall  become,  as  to  such  designated  Employer  and  its  employees, a part of the Plan. Each designated Employer shall be conclusively presumed to have  consented to its designation and to have agreed to be bound by the terms of the Plan and any and  all amendments thereto upon its submission of information to the Committee required by the terms  of or with respect to the Plan; provided, however, that the terms of the Plan may be modified so as  to materially increase the obligations of an Employer only with the consent of such Employer,  which consent shall be conclusively presumed to have been given by such Employer upon its  submission of any information to the Committee required by the terms of or with respect to the  Plan. Except as modified by the Committee in its written instrument, the provisions of the Plan  shall be applicable with respect to each Employer separately, and amounts payable hereunder shall  be paid by the Employer which employs the particular Participant, if not paid from the Trust Fund.                                          14  

 

                                      X.                                                                            Miscellaneous         10.1  Not Contract of Employment. The adoption and maintenance of the Plan shall not  be deemed to be a contract between the Employer and any person or to be consideration for the  employment of any person. Nothing herein contained shall be deemed to give any person the right  to be retained in the employ of the Employer or to restrict the right of the Employer to discharge  any person at any time nor shall the Plan be deemed to give the Employer the right to require any  person to remain in the employ of the Employer or to restrict any person’s right to terminate his  or her employment at any time.         10.2  Alienation of Interest Forbidden. Except as hereinafter provided, the interest of  a Participant or his or her beneficiary or beneficiaries hereunder may not be sold, transferred,  assigned, or encumbered in any manner, either voluntarily or involuntarily, and any attempt so to  anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be null and  void; neither shall the benefits hereunder be liable for or subject to the debts, contracts, liabilities,  engagements or torts of any person to whom such benefits or funds are payable, nor shall they be  an  asset  in  bankruptcy  or  subject  to  garnishment,  attachment  or other  legal  or  equitable  proceedings. Plan provisions to the contrary notwithstanding, the Committee shall comply with  the  terms  and  provisions  of  an  order  that  satisfies  the  requirements  for  a  “qualified  domestic  relations order” as such term is defined in Section 206(d)(3)(B) of the Act, including an order that  requires distributions to an alternate payee prior to a Participant’s “earliest retirement age” as such  term is defined in Section 206(d)(3)(E)(ii) of the Act.         10.3  Withholding. All deferrals and payments provided for hereunder shall be subject  to applicable withholding and other deductions as shall be required of the Employer under any  applicable local, state or federal law.         10.4  Amendment and Termination. The Compensation Committee may from time to  time, in its discretion, amend, in whole or in part, any or all of the provisions of the Plan; provided,  however,  that  amendments  to  the  Plan (a) that  are  required  to  comply  with  applicable  law  or  (b) that  facilitate  Plan  administration  without  increasing  benefits  under  the  Plan  to  any  Participants, may be made by the Chief Executive Officer of the Company (the “CEO”), or his  designee. Notwithstanding the preceding sentence, no amendment may be made that would impair  the rights of a Participant with respect to amounts already allocated to his or her Deferral Account  and Grandfathered Plan Account, as applicable. The Compensation Committee may terminate the  Plan at any time. In the event that the Plan is terminated, the balance in a Participant’s Deferral  Account and Grandfathered Plan Account shall be paid to such Participant or his or her designated  beneficiary in a single lump sum payment of cash in full satisfaction of all of such Participant’s or  beneficiary’s benefits hereunder if such distribution is permitted under Section 409A. Any such  amendment  to  or  termination  of  the  Plan  shall  be  in  writing  and  signed  by  a  member  of  the  Compensation  Committee  or  its  designee  (or  the  CEO,  or  his  designee,  as  applicable).  Notwithstanding  the above,  any  action  taken  under  this  Section  is  subject  to  the  limitations  provided in Appendix A.                                          15  

 

 

 

                                SCHEDULE A   BE&K, Inc. and its subsidiaries   KBR Technical Services, Inc.   KBR, Inc.   KBRwyle Technology Solutions, LLC   Kellogg Brown & Root LLC   Overseas Administration Services, Ltd.                                        Schedule A-1  

 

                                APPENDIX A         The Grandfathered Plan contains the provisions governing the deferrals of accounts earned  and  vested  by Participants  on  or  before December 31,  2004.  This Appendix A preserves  the  material terms of the Grandfathered Plan as in effect on December 31, 2004, and is intended to  satisfy  the  requirements  of Section 409A  as  to  grandfathered amounts.  The  provisions  of  this  Appendix A shall apply to, and be effective only with respect to, the deferral of earned and vested  amounts under the Grandfathered Plan before January 1, 2005, and the Credited Investment Return  on such deferrals credited at any time. The Plan provides for separate accounting of such amounts  deferred, earned, and vested before January 1, 2005, and the Credited Investment Return thereon.         No amendment to the Plan shall be deemed to amend this Appendix A and the relevant  provisions of the Plan in effect prior to such amendment unless otherwise specifically set forth  therein. Pursuant to Section 1.409A-6(a)(4) of the Treasury Regulations, a modification is material  “if a benefit or right existing as of October 3, 2004 is materially enhanced or a new material benefit  or right is added....” Section 5.8 of the Grandfathered Plan was removed because that section does  not  relate  to  the  Company  or  to  the  rights  of Participants  under  the  Plan.  The  removal  of  Section 5.8, below, is hereunder intended to be in good faith compliance with Section 409A, and  is  not  intended  to  materially  modify  the  benefits  existing  as  of October 3,  2004  under  the  Grandfathered Plan.         The  provisions  of  the  Plan  applicable  to  the  Grandfathered  Plan  Accounts  shall be  administered in a manner consistent with the Grandfathered Plan and Appendix A. Wherever the  Plan has added, changed, or otherwise altered any terms of the Grandfathered Plan that were in  effect  on December 31,  2004,  in  a  manner  that  would  constitute  a material  modification,  as  described above, such changes will be disregarded in the administration of the Grandfathered Plan  Accounts herein.                   APPLICABLE GRANDFATHERED PLAN TERMS         With respect to the deferral of amounts earned and vested prior to January 1, 2005, and the  Credited Investment Return on such deferrals credited at any time, the following definitions and  Articles in this Appendix A shall be substituted for the corresponding definitions and Articles of  the Plan:         Retirement: The date the Participant retires in accordance with the terms of his or her  Employer’s retirement policy as in effect at that time.         Unforeseeable Emergency: A severe financial hardship to the Participant resulting from  a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in  Section 152(a) of the Code) of the Participant, loss of the Participant’s property due to casualty,  or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond  the  control  of  the  Participant.  For  purposes  of  the  Grandfathered  Plan,  the  decision  of  the  Committee  regarding  the  existence  or  nonexistence  of  an  Unforeseeable  Emergency  of  a  Participant shall be final and binding. Further, the Committee shall have the authority to require a  Participant to provide such proof as it deems necessary to establish the existence and significant  nature of the Participant’s Unforeseeable Emergency.                                    Appendix A-1  

 

                                     III.                                                        Grandfathered Plan Account Credits; Investment Elections         3.1   Base Salary Deferrals. Effective from and after January 1, 2005, no deferrals of  Base Salary shall be credited to a Participant’s Grandfathered Plan Account.         3.2   Bonus  Compensation  Deferrals.  Effective  from  and  after January 1,  2005,  no  deferrals of Bonus Compensation shall be credited to a Participant’s Grandfathered Plan Account.         3.3   Long-Term  Incentive  Compensation  Deferrals.  Effective  from  and  after  January 1,  2005,  no  deferrals  of  Long-Term  Incentive  Compensation  shall  be  credited  to  a  Participant’s Grandfathered Plan Account.         3.4   Investment of Grandfathered Plan Accounts.               (a)   As  of  any  Determination  Date,  each  Participant’s  Grandfathered  Plan  Account shall consist of the balance of the Participant’s Grandfathered Plan Account as of the  immediately preceding Determination Date adjusted for:                     (1)   distributions (if any); and                     (2)   the appropriate Credited Investment Return.         All adjustments will be recorded to the Participants’ Grandfathered Plan Accounts as of  each Determination Date.               (b)   The Committee shall designate from time to time one or more Investment  Options in which the Grandfathered Plan Accounts may be deemed invested. The Committee shall  have the sole discretion to determine the number of Investment Options to be designated hereunder  and the nature of the  Investment  Options and may  change or eliminate any of the  Investment  Options from time to time. In the event of such change or elimination, the Committee shall give  each  Participant  timely  notice  and  opportunity  to  make  a  new  election.  No  such  change  or  elimination of any Investment Options shall be considered to be an amendment to the Plan pursuant  to Section 10.4. A Participant may request that his or her Grandfathered Plan Account be allocated  among  the  deemed  Investment  Options.  If  a  Participant  fails  to  make  an  election,  his  or  her  Grandfathered Plan Account shall be deemed invested in a single fund selected by the Committee.               (c)   Except  as  changed  under Section 3.4(d),  the  Participant’s  Deemed  Investment Elections designated in the Participant’s initial deferral election shall remain in effect  with respect to his or her Grandfathered Plan Account and any additional amounts credited thereto.               (d)   A  Participant  may  request  a  change  to  his  or  her  Deemed  Investment  Elections  for future amounts  allocated to  his  or her Grandfathered Plan Account  and amounts  already allocated to his or her Grandfathered Plan Account. Any such change shall be made by  filing with the Committee an Investment Election Change Form. The Committee shall establish  procedures relating to changes in Deemed Investment Elections, which may include limiting the                                     Appendix A-2  

 

percentage, amount and frequency of such changes and specifying the effective date for any such  changes.               (e)   Each Participant’s Grandfathered Plan Account shall be credited monthly  with the Credited Investment Return attributable to his or her Grandfathered Plan Account. The  Credited Investment Return is the amount that the Participant’s Grandfathered Plan Account would  have earned if the amounts credited to the Grandfathered Plan Account had, in fact, been invested  in accordance with the Participant’s Deemed Investment Elections.                                        IV.                                                                            Withdrawals         4.1   Emergency  Withdrawals.  Participants  shall  be  permitted  to  make  withdrawals  from  the Grandfathered  Plan Account,  without penalty, only in  the event of an Unforeseeable  Emergency, as determined by the Committee in its sole discretion. No withdrawal shall be allowed  to the extent that such Unforeseeable Emergency is or may be relieved (a) through reimbursement  or compensation by insurance or otherwise or (b) by liquidation of the Participant’s assets, to the  extent the liquidation of such assets would not itself cause severe financial hardship. Further, the  Committee  shall  permit  a  Participant  to  withdraw  only  the  amount  it  determines,  in  its  sole  discretion, to be reasonably needed to satisfy the Unforeseeable Emergency.         4.2   Non-Emergency Withdrawals. A Participant may make withdrawals from his or  her Grandfathered Plan Accounts at any time for reasons other than an Unforeseeable Emergency,  subject to the following:               (a)   the minimum amount that may be withdrawn is $5,000;               (b)   only one such withdrawal may be made during any Plan Year;               (c)   the  withdrawal  shall  be  in  cash  in  a  lump  sum  and  taken  from  the  Grandfathered Plan Accounts and Investment Options designated by the Participant;               (d)   the withdrawal must be designated in a whole percentage or a whole dollar  amount; and               (e)   upon such withdrawal,  a portion  of the Participant’s Grandfathered Plan  Account balance shall be forfeited based on the amount withdrawn from the Grandfathered Plan,  determined as follows:              With Respect to the Amount             Percentage of Amount            Withdrawn from the Following      Withdrawn from the Percentile to be           Percentiles of the Grandfathered    Forfeited from the Grandfathered                        Plan                                Plan                      First 50%                             10%                    Second 50%                              25%                                     Appendix A-3  

 

      The withdrawal amount shall be reduced to the extent necessary for the sum of the amount  of the withdrawal and the forfeiture not to exceed 100% of the Participant’s Grandfathered Plan  Account balance.         Notwithstanding  the  foregoing,  if  such  a  withdrawal  is  made  on  or  within  one  year  following a Corporate Change (as defined below), the amount of the Participant’s Grandfathered  Plan  Accounts  forfeited  upon  such  withdrawal  shall  be  equal  to  10%  of  the  amount  of  such  withdrawal.  A  Corporate  Change  means  one  of  the  following  events  occurs: (i) the  merger,  consolidation or other reorganization of the Company in which the outstanding common stock of  the Company is converted into or exchanged for a different class of securities of the Company, a  class of securities of any other issuer (except a direct or indirect wholly owned subsidiary of the  Company), cash or other property; (ii) the sale, lease or exchange of all or substantially all of the  assets of the Company to any other corporation or entity (except a direct or indirect wholly owned  subsidiary of the Company); (iii) the adoption of the stockholders of the Company of a plan of  liquidation and dissolution; (iv) the acquisition (other than any acquisition pursuant to any other  clause  of  this  definition)  by  any  person  or  entity,  including,  without  limitation,  a  “group”  as  contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, of beneficial ownership,  as contemplated by such Section, of more than twenty percent (based on voting power) of the  Company’s outstanding capital stock; or (v) as a result of or in connection with a contested election  of members of the board of directors of the Company, the persons who were directors before such  election shall cease to constitute a majority of the directors of the Company.         Withdrawals shall be paid as soon as reasonably practicable following the Participant’s  request, which must be in such form or manner as the Company may prescribe from time to time.                                         V.                                                                         Payment of Benefits         5.1   Payment  Election  Generally. Pursuant  to Article III hereof,  no  additional  deferrals are allowed under the Grandfathered Plan.         5.2   Time  of  Benefit  Payment.  With  respect  to  each  deferral  election  made  by  a  Participant  pursuant  to Article III,  such  Participant  shall  elect  to  commence  payment  of  such  deferral and the Credited Investment Returns attributable thereto on one of the following dates:               (a)   Retirement; or               (b)   A specific future month and year, but not earlier than five years from the  date of the deferral if the Participant has not attained age fifty-five at the time of the deferral or  one year from the date of the deferral if the Participant has attained age fifty-five at the time of the  deferral, and not later than the first day of the year in which the Participant attains age seventy.         5.3   Form  of  Benefit  Payment.  With  respect  to  each  deferral  election  made  by  a  Participant pursuant to Article III, such Participant shall elect the form of payment with respect to  such deferral and the Credited Investment Returns attributable thereto from one of the following  forms:                                     Appendix A-4  

 

            (a)   A lump sum; or               (b)   Installment payments for a period not to exceed ten years.         Installment payments shall be paid annually on or before the last business day of January  of each Plan Year; provided however, that not later than sixty days prior to the date payment is to  commence, a Participant may elect to have his or her installment payments paid quarterly on the  first  business  day  of  each  calendar  quarter.  Each  installment  payment  shall  be  determined  by  multiplying the deferral and the Credited Investment Returns attributable thereto at the time of the  payment by a fraction, the numerator of which is one and the denominator of which is the number  of remaining installment payments to be made to the Participant.         In  the  event  the  aggregate  amount  credited  to  a  Participant’s  Deferral  Account  and  Grandfathered Plan Account does not exceed $50,000, the Committee may, in its sole discretion,  pay the Grandfathered Plan Account in the form of a lump sum.         5.4   Total and Permanent Disability. If a Participant becomes totally and permanently  disabled while employed by the Employer, payment of the amounts credited to such Participant’s  Grandfathered Plan Account  shall commence on the first  business  day of the second calendar  quarter following the date the Committee makes a determination that the Participant is totally and  permanently disabled, in the form of payment determined in accordance with Section 5.3. The  above notwithstanding, if such Participant is already receiving payments pursuant to Section 5.2(b)  and Section 5.3(b), such payments shall continue. For purposes of the Plan, a Participant shall be  considered  totally  and  permanently  disabled  if  the  Committee  determines,  based  on  a  written  medical  opinion  (unless  waived  by  the  Committee  as  unnecessary),  that  such  Participant  is  permanently incapable of performing his or her job for physical or mental reasons.         5.5   Death. In the event of a Participant’s death at a time when amounts are credited to  such Participant’s Grandfathered Plan Account, such amounts shall be paid to such Participant’s  designated  beneficiary  or  beneficiaries  in  five  annual  installments  commencing  as  soon  as  administratively  feasible  after  such  Participant’s  date  of  death.  However,  the  Participant’s  designated beneficiary or beneficiaries may request a lump sum payment based upon hardship,  and the Committee, in its sole discretion, may approve such request.         5.6   Other  Termination  of  Employment.  If  a  Participant  terminates  his  or  her  employment with the Employer before Retirement for a reason other than total and permanent  disability or death, the amounts credited to such Participant’s Grandfathered Plan Account shall  be paid to the Participant in a lump sum no less than sixty days and no more than one year after  the Participant’s date of termination of employment. For purposes of this Section, transfers of  employment between and among the Company and any of its Affiliates shall not be considered a  termination of employment.         5.7   Payment of Benefits. To the extent the Trust Fund, if any, has sufficient assets, the  Trustee shall pay benefits to Participants or their beneficiaries, except to the extent the Employer  pays the benefits directly and provides adequate evidence of such payment to the Trustee. To the  extent the Trustee does not or cannot pay benefits out of the Trust Fund, the benefits shall be paid  by the Employer. Any benefit payments made to a Participant or for his or her benefit pursuant to                                    Appendix A-5  

 

any provision of the Grandfathered Plan shall be debited to such Participant’s Grandfathered Plan  Account. All benefit payments shall be made in cash to the fullest extent practicable.         5.8   No Acceleration of Bonus or Long-Term Incentive Compensation. The time of  payment of any Bonus Compensation or Long-Term Incentive Compensation that the Participant  has  elected to  defer but  that has  not  yet  been credited to  the Participant’s  Grandfathered Plan  Account because it is not yet payable without regard to the deferral shall not be accelerated as a  result of the provisions of this Article. If, pursuant to the provisions of this Article, payment of  such Bonus Compensation or Long-Term Incentive Compensation would no longer be deferred at  the time it becomes payable, such Bonus Compensation or Long-Term Incentive Compensation  shall be paid to the Participant within 90 days of the date it would have been payable had the  Participant not made a deferral election.                                        Appendix A-6

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