Document:

Unassociated Document

    EXHIBIT
10.2

    

    AGREEMENT FOR ADVISORY
SERVICES BY AND BETWEEN CLARK HOLDINGS, INC 

    AND EVEREST GROUP
INTERNATIONAL LLC

    

    This
Agreement for Advisory
Services (the "Agreement"), effective September 14, 2010 (the
“Effective Date”), is by and between Clark Holdings Inc., with
corporate offices at 121 New York Avenue, Trenton, NJ 08638 (hereinafter the
"Client", “you”, “your”, “its”, “Company”, or “them”), and Everest Group International
LLC, with an address at 600 Woodbrook Way, Lawrenceville, GA 30043
(hereinafter the "Advisor", “their”, “its”, or “EGI”), collectively hereinafter
“Party” or “the Parties”.

    

    WHEREAS, the Advisor is
willing to perform certain work hereinafter described in accordance with the
provisions of this Agreement;

    

    WHEREAS, the Client finds that
the Advisor is qualified to perform the work, all relevant factors considered,
and that such performance will be in furtherance of Client’s efforts to reduce
costs;

    

    NOW, THEREFORE, in
consideration of the mutual covenants set forth herein and intending to be
legally bound, the Parties hereto agree as follows:

    

    
      	
               
      

            	
              1.

            	
              ENGAGEMENT
      FOR SERVICES. The Client hereby engages the Advisor to undertake
      and perform the services (hereinafter “Engagement”) to
      include:

            

    

    

    
      	
               
      

            	
              a)

            	
              Larry
      Hughes to serve as Interim President and Chief Operating Officer of the
      Company focusing exclusively on cost reduction as part of the Client’s
      strategy to increase market
valuation;

            

    

    

    
      	
               
      

            	
              b)

            	
              Responding
      to specific requests of the CEO and Board of Directors of Client as
      mutually agreed; and

            

    

    

    
      	
               
      

            	
              c)

            	
              Providing
      other advisory services as mutually agreed by the Client and the
      Advisor.

            

    

    

    
      	
            	
              1.1

            	
              The
      Advisor hereby accepts the Engagement described in Paragraph 1 herein and
      agrees to provide these services in a timely
  manner.

            

    

     

    
      	
            	
              1.2

            	
              Larry
      Hughes, CEO of Everest Group International LLC, the Advisor, will be
      responsible for the overall Engagement. He may be assisted by other
      consultants employed by the Advisor, who may serve other clients of the
      Advisor on unrelated matters. Advisor will be an independent consultant
      paid on a Form 1099 basis and responsible for his own
    taxes.

            

    

    

    
      	
            	
              1.3

            	
              Advisor
      will report directly to Gregory Burns, the Chief Executive Officer of the
      Client, and will make recommendations to and consult with the Board of
      Directors of Clark Holdings Inc., or designee, as may be
      directed.

            

    

    

    
      
        	
                Client
      Initial _____________

              	 
      	
                Advisor
      Initial ____________

              

      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
              Everest
      Group International LLC

            	
              Advisory
      Services Agreement

            

    

     

    
      	
            	
              1.4

            	
              Client
      shall provide EGI with such documents, reports and necessary information
      required for the performance of EGI’s duties hereunder as EGI may request.
      Client acknowledges and agrees that all such documents, reports and
      information shall be deemed to contain true, accurate and complete
      information and that EGI may so rely on such documents, reports and
      information without independently verifying the veracity
      thereof.

            

    

    

    
      	
            	
              1.5

            	
              It
      is agreed that the services to be rendered by Advisor may include
      analysis, preparation of projections, and other forward-looking
      statements, and numerous factors can affect the actual results, which may
      materially and adversely differ from those projections. In addition,
      Advisor will be relying on information provided by executives of the Company in
      the preparation of analysis, projections and other forward-looking
      statements. Advisor makes no representation or guarantee that an
      appropriate restructuring and cost reduction can be formulated, or is the
      best proper course of action. Advisor is not being requested to perform an
      audit.

            

    

    

    
      	
            	
              1.6

            	
              Advisor
      shall maintain in the strictest confidence all “Confidential Information”
      and shall not disclose such Confidential Information to any person or
      entity other than the Client or its affiliates.  Advisor shall
      limit access of Confidential Information to those of its employees who are
      on a need-to-know basis and who are assisting the Advisor in providing
      services to the Client hereunder. As soon as practicable following the
      Termination Date, or, if earlier, the Early Termination Date, the Advisor
      shall return to the Client or destroy all Confidential Information and all
      copies thereof.  “Confidential Information” shall mean any and
      all oral or written information and data which Advisor obtains from the
      Company concerning the Company’s business, operations, strategies and
      prospects including, without limitation, sales, costs, pricing, financial
      data, business, marketing and operational projections, plans and
      opportunities, identification of and lists of vendors and suppliers,
      business records and other books and records relating to the Company
      together with analyses, compilations, studies or other information
      prepared, developed or derived by Advisor in connection with its
      engagement hereunder.  Confidential Information does not include
      information which: (i) is or becomes generally available to the public
      other than as a result of any breach of this Agreement by Advisor; (ii)
      becomes available to Advisor on a nonconfidential basis from a source
      (other than the Company or any of its representatives) which has
      represented to Advisor that such source is entitled to disclose it; or
      (iii) was known to Advisor on a nonconfidential basis prior to its
      disclosure to Advisor by the Company or its representatives.  In
      the event that Advisor becomes legally compelled to disclose any of the
      Confidential Information, Advisor will advise the Company in writing as
      soon as possible so that the Company may seek a protective order or other
      appropriate remedy.  In the event that such protective order or
      other remedy is not obtained, Advisor will furnish only that portion of
      the Confidential Information which is legally required and will exercise
      its reasonable best efforts to ensure that confidential treatment will be
      accorded the Confidential
Information.

            

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
 

    
      	
              Everest
      Group International LLC

            	
              Advisory
      Services Agreement

            

    

     

    
      	
            	
              1.7

            	
              The
      Client acknowledges that any information will be provided by Advisor as a
      tool to be used at the discretion of the Client. Advisor will not be
      responsible for any action taken by the Client in following or declining
      to follow any of Advisor’s advice or recommendations. The services
      provided by Advisor hereunder are for the sole benefit of the Client and
      its affiliates and not any other third
parties.

            

    

    

    
      	
            	
              1.8

            	
              EGI’s
      Engagement cannot be relied upon to disclose errors, irregularities,
      oversights, fraud or illegal acts that may exist. EGI may inform Client of
      any such matters that come to EGI’s
attention.

            

    

    

    
      	
            	
              1.9

            	
              Client
      acknowledges and agrees, and Client shall cause any Third Party to
      acknowledge and agree, that EGI is not providing any CPA, accounting, tax
      or similar services as a part of the
Engagement.

            

    

    

    
      	
            	
              1.10

            	
              Client
      acknowledges and agrees, and Client shall cause any Third Party to
      acknowledge and agree, that EGI does not guarantee any outcome with
      respect to this Engagement.

            

    

    

    
      	
               
      

            	
              2.

            	
              START
      DATE AND END DATE:  The Engagement shall commence and
      terminate as follows:

            

    

    

    
      	
               
      

            	
              a)

            	
              The
      term of the Advisor’s Engagement hereunder shall extend from September 14,
      2010 and continue through January 31, 2011 (the “Termination Date");
      and,

            

    

    

    
      	
               
      

            	
              b)

            	
              Subject
      to Section 22 herein (“Survival”), either Party may terminate the
      Advisor’s Engagement hereunder at any time by giving the other Party at
      least five (5) days’ prior written notice (“Early
      Termination”).  The date of termination is the date of written
      notice plus five (5) days (“Early Termination Date”). This Engagement may
      be terminated at any time by mutual
agreement.

            

    

    

    
      	
               
      

            	
              3.

            	
              PAYMENT,
      FEES, AND INVOICING TERMS:  The Client agrees to
      compensate the Advisor as follows:

            

    

    

    
      	
               
      

            	
              a)

            	
              The
      time required to complete the Services under this Engagement will be a
      function of several variables that are currently unknown. Advisor will be
      paid a fee in the amount of twenty-seven thousand U.S. Dollars
      ($27,000.00) per month on a monthly basis, prorated for partial months,
      with a month defined to be 20 working days. The daily rate will be one
      thousand three hundred fifty U.S. Dollars ($1,350.00). The Advisor will
      work at least an average of 40 hours per week for Client, subject to
      unpaid periods of vacation and disability, but is otherwise unrestricted
      as to non-Client activities. There shall be no premium for weekend
      work.

            

    

    

    
      	
               
      

            	
              b)

            	
              Client
      shall pay Advisor immediately upon receipt of invoice, a Retainer Fee in
      the amount of twenty-seven thousand U.S. Dollars ($27,000.00), to be held
      by Advisor until the end of the Engagement, when it will be applied
      against Advisor’s final billing and any credit immediately returned to
      Client.

            

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      
 

      
        	
                Everest
      Group International LLC

              	
                Advisory
      Services Agreement

              

      

       

    

    
      	
               
      

            	
              c)

            	
              Advisor
      will have a success fee opportunity defined by Client as “10% of January
      increase over September adjusted EBITDA (adjusting for Oct. Warehouse
      consolidation)”. Additionally, as soon as practical following the
      Effective Date, and subject to formal grant by the Company’s compensation
      committee, Larry Hughes will be granted a five-year non-qualified option
      for the purchase of 20,000 shares of the Company’s common stock under the
      Company’s 2007 Long Term Incentive Plan with an exercise price of $1.25
      per share.  Such option shall fully vest on December 14, 2010,
      or earlier in the event of a change in control (as defined in the
      Company’s Long Term Incentive Plan) of the Company, provided that Advisor
      is engaged by the Company on such date or at the time of such change in
      control as the case may be.

            

    

    

    
      	
               
      

            	
              d)

            	
              Larry
      Hughes will not participate in Company benefits including health
      insurance, 401K program, paid vacation, or
  severance.

            

    

    

    
      	
               
      

            	
              e)

            	
              If
      Client requests that EGI be paid directly by a Third Party, Client shall
      nevertheless be responsible for such payments and hereby guarantees the
      prompt payment of any such amounts to
EGI.

            

    

    

    
      	
               
      

            	
              f)

            	
              Advisor
      will expense direct EGI administrative support per this Engagement, not to
      exceed $1,000 per month.

            

    

    

    
      	
               
      

            	
              g)

            	
              Advisor
      will expense to Client 50% of legal fees for review of this Engagement
      Agreement and consultation, up to a maximum of
  $2,000.00.

            

    

    

    
      	
            	
              3.1

            	
              Reimbursable
      Costs: Client shall reimburse the Advisor for all reasonable costs
      incurred in connection with the Services rendered. Reimbursable costs
      include, but are not limited to, travel costs, copies, delivery, and other
      costs and expenses attributable to the Services (the "Reimbursable
      Costs"). Travel costs are defined as air travel, ground transportation,
      lodging, meals, incidentals, and all other costs associated with travel.
      The Advisor shall provide to Client substantiation of Reimbursable Costs
      incurred. Payment is due within five (5) working days of expense report
      submittal, paid by separate check (not a wire transfer), and not included
      in Form 1099.

            

    

    

    
      	
            	
              3.2

            	
              Invoices:

            

    

    

    
      	
               
      

            	
              a)

            	
              The
      Advisor will submit to Client invoices each month for the prior month’s
      fees for payment by Client. Payment is due by wire transfer no later than
      the seventh calendar working day from the date the invoice is submitted by
      Advisor. Exhibit A
      includes the wire transfer details to be used for payment by the Client to
      Advisor under this Agreement;

            

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      
 

      
        	
                Everest
      Group International LLC

              	
                Advisory
      Services Agreement

              

      

       

    

    
      	
               
      

            	
              b)

            	
              If
      Client has any valid reason for disputing any portion of an invoice,
      Client will so notify the Advisor within seven (7) calendar days of
      receipt of invoice by Client, and if no such notification is given, the
      invoice will be deemed valid.  The portion of the Advisor's
      invoice that is not in dispute shall be paid in accordance with the
      procedures set forth herein. Any successfully disputed amounts will be
      reconciled on the next subsequent invoice by Advisor;
  and,

            

    

    

    
      	
               
      

            	
              c)

            	
              A
      finance charge of one and one half percent (1.5%) per month on the unpaid
      amount of an invoice, or the maximum amount allowed by law, will be
      charged on past due accounts.  Payments by Client will
      thereafter be applied first to accrued interest and then to the principal
      unpaid balance.  Client shall pay any attorney fees, court
      costs, or other costs incurred in collection of delinquent
      accounts.

            

    

    

    
      
        	
              	
                3.3

              	
                Suspension
      of Work:  If payment is past due, the Advisor, at its
      sole discretion, may suspend work, without any liability whatsoever, and
      may pursue any other rights and remedies
  available.

              

      

    

    

    
      	
            	
              3.4

            	
              Early
      Termination:

            

    

    

    
      	
               
      

            	
              a)

            	
              In
      the event of Early Termination by the Client, the Advisor shall keep all
      payments for services rendered and Reimbursable Costs, and Client shall
      pay promptly any fees due to the Advisor and all Reimbursable Costs if
      there are any such costs incurred and unpaid by the Early Termination
      Date; and,

            

    

    

    
      	
               
      

            	
              b)

            	
              In
      the event of Early Termination by the Advisor, the Advisor shall return
      any net remaining balance of the Retainer, provide a full reconciliation
      of fees and Reimbursable Costs, and destroy, or return upon Client’s
      request, any confidential information pertaining to the Engagement. The
      Client shall promptly pay any fees due to Advisor and all Reimbursable
      Costs if there are any such costs incurred and unpaid by the Early
      Termination Date.

            

    

    

    
      	
               
      

            	
              4.

            	
              REPRESENTATION:
      NO REPRESENTATION, EXPRESS OR IMPLIED, AND NO WARRANTY (INCLUDING, WITHOUT
      LIMITATION, ANY EXPRESS OR IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR
      PURPOSE, MERCHANTABILITY, NON-INFRINGEMENT, TITLE, OR OTHERWISE) OR
      GUARANTEE ARE INCLUDED OR INTENDED IN THIS AGREEMENT, OR IN ANY REPORT,
      OPINION, DELIVERABLE, WORK PRODUCT, DOCUMENT, OR OTHERWISE. FURTHERMORE,
      NO GUARANTEE IS MADE AS TO THE EFFICACY OR VALUE OF ANY SERVICES PERFORMED
      OR SOFTWARE MODEL DEVELOPED.

            

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      
 

      
        	
                Everest
      Group International LLC

              	
                Advisory
      Services Agreement

              

      

       

    

    
      	
               
      

            	
              5.

            	
              COVENANT
      REGARDING HIRING OF EGI PROFESSIONALS: Client agrees to notify
      Advisor if it or its affiliates extend an offer of employment to a
      representative of Advisor that Client knows is working on this Engagement
      (hereinafter “Advisor Representative”). In recognition of the training
      time and other resources Advisor invests in the development of its
      representatives, in the building of relationships between clients and
      Advisor’s representatives, the loss of client billable time that is
      necessitated by the transition of client files from a departing
      representative to another representative, and the difficulty of placing a
      monetary value on these investments by Advisor, Client and its holdings
      further agrees that if they hire any Advisor Representative that they know
      is working on the Engagement up to twelve (12) months subsequent to the
      date of final invoice rendered by Advisor for this Engagement, Client will
      pay to Advisor a cash fee in the amount of U. S. Dollars fifty thousand
      ($50,000.00). Such cash fee shall be paid upon Client’s or its holdings’
      hiring of such Advisor Representative. This Agreement does not prohibit
      the Client or its holdings from making general solicitations for
      employment or from soliciting for employment any individuals who have
      ceased to be representative of
Advisor.

            

    

    

    
      	
               
      

            	
              6.

            	
              INDEMNIFICATION
      AND DIRECTOR AND OFFICERS LIABIILITY
  INSURANCE:

            

    

    

    
      	
               
      

            	
              a)

            	
              Concurrently
      herewith, Client and Larry Hughes shall enter into an indemnification
      agreement substantially in the form of Exhibit B
      annexed hereto.

            

    

     

    
      	
               
      

            	
              b)

            	
              The
      Company will provide D&O insurance coverage in the amount of no less
      than ten Million U.S. Dollars ($10 Million), along with written evidence
      to the Advisor that Larry Hughes is covered by such insurance.
      Furthermore, the Company will maintain such insurance coverage with
      respect to occurrences arising during the term of this Agreement for least
      three (3) years following the termination or expiration of this Agreement
      or will purchase a D&O extended reporting period or “tail” policy to
      cover Larry Hughes.

            

    

     

    
      	
               
      

            	
              c)

            	
              In
      the event the Company is unable to obtain D&O insurance, or fails to
      include Larry Hughes under the Company’s D&O policy, or at any time
      the face amount of the Company’s D&O insurance coverage is less than
      ten Million U.S. Dollars ($10 Million); or the Company does not have first
      dollar coverage in effect for at least ten Million U.S. Dollars ($10
      Million), then it is agreed that the Company will notify the Advisor and
      the Advisor will attempt to purchase a separate D&O policy, and that
      the cost of the same shall be invoiced to the Company as an out-of-pocket
      cash expense. If the Advisor is unable to purchase such D&O insurance,
      then the Advisor reserves the right to immediately terminate this
      Agreement.

            

    

    

    
      	
               
      

            	
              7.

            	
              INSECURITY
      AND ADEQUATE ASSURANCES: If reasonable grounds for insecurity arise
      with respect to Client’s ability to pay for the Services in a timely
      fashion, the Advisor may demand in writing adequate assurances of Client’s
      ability to meet its payment obligations under this Agreement. Unless
      Client provides the assurances in a reasonable time and manner acceptable
      to the Advisor, in addition to any other rights and remedies available,
      the Advisor may partially or totally suspend its performance while
      awaiting assurances, without any
liability.

            

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      
 

      
        	
                Everest
      Group International LLC

              	
                Advisory
      Services Agreement

              

      

       

    

    
      	
               
      

            	
              8.

            	
              SEVERABILITY:  Should
      any part of this Agreement for any reason be declared invalid, such
      decision shall not affect the validity of any remaining provisions, which
      remaining provisions shall remain in full force and effect as if this
      Agreement had been executed with the invalid portion thereof eliminated,
      and it is hereby declared the intention of the parties that they would
      have executed the remaining portion of this Agreement without including
      any such part, parts, or portions which may, for any reason, be hereafter
      declared invalid. Any provision shall nevertheless remain in full force
      and effect in all other
circumstances.

            

    

    

    
      	
               
      

            	
              9.

            	
              MODIFICATION
      AND WAIVER:  Waiver of breach of this Agreement by either
      Party shall not be considered a waiver of any other subsequent
      breach.

            

    

    

    
      	
            	
              10.

            	
              INDEPENDENT
      CONTRACTOR:  The Advisor is an independent contractor of
      the Client.

            

    

    

    
      	
            	
              11.

            	
              NOTICES:  All
      notices or other communications hereunder shall be in writing, sent by
      courier or the fastest possible means, provided that recipient receives a
      manually signed copy and the transmission method is scheduled to deliver
      within forty eight (48) hours, and shall be deemed given when delivered to
      the address specified below or such other address as may be specified in a
      written notice in accordance with this
Section.

            

    

    

    
      
        
          	
                  If to the Client:

                	
                  If to the Advisor:

                
	
                  Clark
      Holdings, Inc.

                  ATTN:  Gregory
      E. Burns

                  373
      Park Avenue South, 6th
      Floor

                  New
      York, NY 10016

                	
                  Everest
      Group International LLC

                  ATTN:
      Larry Hughes

                  600
      Woodbrook Way

                  Lawrenceville,
      GA 30043

                

        

      

    

    

    Any Party
may, by notice given in accordance with this Section to the other Parties,
designate another address or person or entity for receipt of notices
hereunder.

    

    
      	
            	
              12.

            	
              ASSIGNMENT:  The
      Agreement is neither assignable nor transferable by the Client without the
      written consent of the Advisor. This Agreement is neither assignable nor
      transferable by the Advisor without the written consent of the
      Client.

            

    

    

    
      	
            	
              13.

            	
              SECTION
      HEADINGS:  Title and headings of sections of this
      Agreement are for convenience of reference only and shall not affect the
      construction of any provision of this
Agreement.

            

    

    

    
      	
            	
              14.

            	
              AUTHORIZATIONS
      AND COUNTERPARTS:  Each person executing this Agreement
      on behalf of a Party hereto represents and warrants that such person is
      duly and validly authorized to do so on behalf of such Party, with full
      right and authority to execute this Agreement and to bind such Party with
      respect to all of its obligations hereunder. This Agreement may be
      executed (by original or facsimile signature) in counterparts, each of
      which shall be deemed an original, but all of which taken together shall
      constitute but one and the same
instrument.

            

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
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                Everest
      Group International LLC

              	
                Advisory
      Services Agreement

              

      

       

    

    
      	
            	
              15.

            	
              RESIDUALS:
      Nothing in this Agreement or elsewhere will prohibit or limit the
      Advisor's ownership and use of ideas, concepts, know-how, methods, models,
      data, techniques, skill knowledge, and experience that were used,
      developed, or gained in connection with this Agreement. The Advisor and
      the Client shall each have the right to use all data collected or
      generated under this Agreement.

            

    

    

    
      	
            	
              16.

            	
              COOPERATION:
      Client and its Affiliates will cooperate with the Advisor in taking
      actions and executing documents, as appropriate, to achieve the objectives
      of this Agreement. Client agrees that the Advisor's performance is
      dependent on the timely and effective cooperation with the Advisor.
      Accordingly, Client acknowledges that any delay by Client or its
      Affiliates or its Representatives or Employees may result in the Advisor
      being released from an obligation or scheduled deadline or in Client
      having to pay extra fees for the Advisor to meet a specific obligation or
      deadline despite the delay.

            

    

    

    
      	
            	
              17.

            	
              GOVERNING
      LAW AND CONSTRUCTION: This Agreement will be governed by and
      construed in accordance with the laws of the State of Georgia, without
      regard to the principles of conflicts of law. The language of this
      Agreement shall be deemed to be the result of negotiation among the
      parties and respective counsel and shall not be construed strictly for or
      against any party.

            

    

    

    
      	
            	
              18.

            	
              ARBITRATION:  Any
      controversy, dispute or claim arising out of or related to this Agreement
      or breach of this Agreement shall be settled solely by confidential
      binding arbitration by a single arbitrator in accordance with the
      commercial arbitration rules of JAMS in effect at the time the arbitration
      commences.  The award of the arbitrator shall be final and
      binding.  No Party shall be entitled to, and the arbitrator is
      not authorized to, award legal fees, expert witness fees, or related costs
      of a party. The arbitration shall be held in Atlanta,
  GA.

            

    

    

    
      	
            	
              19.

            	
              ENTIRE
      AGREEMENT:  This Agreement, including any exhibits,
      states the entire Agreement between the parties and supersedes all
      previous contracts, proposals, oral or written, and all other
      communications between the parties respecting the subject matter hereof,
      and supersedes any and all prior understandings, representations,
      warranties, agreements, or contracts (whether oral or written) between the
      Client and the Advisor respecting the subject matter hereof. This
      Agreement may only be amended by an agreement in writing executed by the
      Parties hereto.

            

    

    

    
      	
            	
              20.

            	
              FORCE
      MAJEURE:  The Advisor shall not be responsible for delays
      or failures (including any delay by the Advisor to make progress in the
      prosecution of any Services) if such delay arises out of causes beyond its
      control. Such causes may include, but are not restricted to, acts of God,
      or of the public enemy, fires, floods, epidemics, riots, quarantine
      restrictions, strikes, freight embargoes, earthquakes, electrical outages,
      computer or communications failures, and severe weather, and acts or
      omissions of subcontractors or third
parties.

            

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      
 

      
        	
                Everest
      Group International LLC

              	
                Advisory
      Services Agreement

              

      

       

    

    
      	
            	
              21.

            	
              USE
      BY THIRD PARTIES: Work performed by the Advisor pursuant to this
      Agreement is only for the purpose intended and may be misleading if used
      in another context.  Client agrees not to use any documents or
      work product produced under this Agreement for anything other than the
      intended purpose without the Advisor's written permission. This Agreement
      shall, therefore, not create any rights or benefits to parties other than
      to the Client and the Advisor.

            

    

    

    
      	
            	
              22.

            	
              SURVIVAL:  Sections
      1.6 and 3 through 22 survive the expiration or termination of this
      Agreement for any reason.

            

    

    

    
      
        	
              	
                23.

              	
                PUBLIC
      DISCLOSURES:   Prior
      to dissemination or filing, the Company will provide to Advisor and its
      counsel drafts of any  press release reportings and any SEC Form
      8-K filings disclosing the engagement of Advisor, or making any other
      reference to the Advisor, for Advisor’s approval.  Advisor will
      not unreasonably delay or withhold its approval of such press releases or
      Form 8-K filings.

              

      

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
        
        

      

      
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    IN WITNESS WHEREOF, the
Parties hereto have duly executed this Agreement.

    

    
      
        
          
            
              
                
                  	
                          Client:

                        	 
      	
                          Advisor:

                        
	 
      	 
      	 
      
	
                          Clark
      Holdings, Inc.

                        	 
      	
                          Everest
      Group International, LLC

                        
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          By:
      Gregory Burns, CEO

                        	 
      	
                          By:
      Larry Hughes, CEO

                        
	 
      	 
      	 
      
	
                          Date:

                        	 
      	
                          Date:

                        
	 
      	 
      	 
      
	 
      	 
      	
                          September
      14,
2010

                        

                

              

            

          

        

      

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
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              Everest
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              Advisory
      Services Agreement

            

    

      

    EXHIBIT
B

    

    INDEMNIFICATION
AGREEMENT

    This
Agreement, made and entered into effective as of the 14th day of
September, 2010 (“Agreement”), by and between Clark Holdings Inc., a Delaware
corporation (“Corporation”), and Larry Hughes (“Indemnitee”):

     

    WHEREAS,
highly competent persons recently have become more reluctant to serve as
directors, officers, or in other capacities of publicly held corporations and
other corporations that have non-employee investors among their stockholders or
conduct operations in regulated industries unless they are provided with better
protection from the risk of claims and actions against them arising out of their
services to and activities on behalf of such corporation; and

     

    WHEREAS,
the adoption of The Sarbanes-Oxley Act of 2002 and other laws, rules and
regulations being promulgated have increased the potential for liability of
officers and directors; and

     

    WHEREAS,
the Corporation has determined that the inability to attract and retain such
persons is detrimental to the best interests of the Corporation’s stockholders
and that such persons should be assured that they will have better protection in
the future; and

     

    WHEREAS,
it is reasonable, prudent and necessary for the Corporation to obligate itself
contractually to indemnify such persons to the fullest extent permitted by
applicable law so that such persons will serve or continue to serve the
Corporation free from undue concern that they will not be adequately
indemnified; and

     

    WHEREAS,
this Agreement is a supplement to and in furtherance of Article VII of the
By-laws of the Corporation, and Article EIGHTH of the Amended and Restated
Certificate of Incorporation of the Corporation, and any resolutions adopted
pursuant thereto and shall neither be deemed to be a substitute therefor nor
diminish or abrogate any rights of Indemnitee thereunder; and

     

    WHEREAS,
Indemnitee is willing to continue to serve and to take on additional service for
or on behalf of the Corporation on the condition that he or she be indemnified
according to the terms of this Agreement;

     

    NOW,
THEREFORE, in consideration of the premises and the covenants contained herein,
the Corporation and Indemnitee do hereby covenant and agree as
follows:

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
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    1.            Definitions.  For
purposes of this Agreement:

     

    1.1           “Change
in Control” means a change in control of the Corporation occurring after the
date hereof of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item
on any similar schedule or form) promulgated under the Securities Exchange Act
of 1934, as amended (“Act”), whether or not the Corporation is then subject to
such reporting requirement provided, however, that, without limitation, such a
Change in Control shall be deemed to have occurred if after the date hereof (i)
any “person” (as such term is used in Sections 13(d) and 14(d) of the Act),
other than a person who is an officer or director of the Corporation on
September 14, 2010 (and any of such person’s affiliates), is or becomes
“beneficial owner” (as defined in Rule 13d-3 under the Act) directly or
indirectly, of securities of the Corporation representing 20% or more of the
combined voting power of the then outstanding securities of the Corporation
without the prior approval of at least two-thirds of the members of the Board in
office immediately prior to such person attaining such percentage interest; (ii)
the Corporation is a party to a merger, consolidation, sale of assets or other
reorganization, or a proxy contest, as a consequence of which members of the
Board of Directors (“Board”) in office immediately prior to such transaction or
event constitute less than a majority of the Board thereafter; or (iii) during
any period of two consecutive years, individuals who at the beginning of such
period constituted the Board (including for this purpose any new director whose
election or nomination for election by the Corporation’s stockholders was
approved by a vote of at least two-thirds of the directors then still in office
who were directors at the beginning of such period) cease for any reason to
constitute at least a majority of the Board.

     

    1.2           “Corporate
Status” means the status of a person who is or was a director, officer,
employee, agent or fiduciary of the Corporation or of any subsidiary of the
Corporation or any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise which such person is or was serving at
the request of the Corporation.

     

    1.3           “Disinterested
Director” means a director of the Corporation who is not and was not a party to
the Proceeding in respect of which indemnification is sought by
Indemnitee.

     

    1.4           “Expenses”
means all reasonable attorneys’ fees, retainers, court costs (including trial
and appeals), transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, and all other disbursements or expenses of the types
customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, appealing, preparing to appeal, investigating, or being or
preparing to be a witness in a Proceeding.

     

    1.5           “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years
has been, retained to represent:  (i) the Corporation or Indemnitee in
any other matter material to either such party, or (ii) any other party to the
Proceeding giving rise to a claim for indemnification
hereunder.  Notwithstanding the foregoing, the term “Independent
Counsel” does not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Corporation or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement.  Except as provided in the
first sentence of Section 9.3 hereof, Independent Counsel shall be selected by
(a) the Disinterested Directors or (b) a committee of the Board consisting of
two or more Disinterested Directors or if (a) and (b) above are not possible,
then by a majority of the full Board.

     

    1.6           “Proceeding”
means any action, suit, arbitration, alternate dispute resolution mechanism,
investigation, administrative hearing or any other proceeding, whether civil,
criminal, administrative or investigative, except one initiated by an Indemnitee
pursuant to Section 11 of this Agreement to enforce his rights under this
Agreement.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
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    2.           Services by
Indemnitee.

     

    Indemnitee
agrees to continue to serve as a director, officer or employee of the
Corporation or one or more of its subsidiaries.  Indemnitee may at any
time and for any reason resign from such position (subject to any other
contractual obligation or any obligation imposed by operation of
law).

     

    3.           Indemnification -
General.

     

    The
Corporation shall indemnify, and advance Expenses to, Indemnitee as provided in
this Agreement to the fullest extent permitted by applicable law in effect on
the date hereof and to such greater extent as applicable law may thereafter from
time to time permit.  The rights of Indemnitee provided under the
preceding sentence shall include, but not be limited to, the rights set forth in
the other Sections of this Agreement.

     

    4.           Proceedings Other Than
Proceedings by or in the Right of the Corporation.

     

    Indemnitee
shall be entitled to the rights of indemnification provided in this Section if,
by reason of his Corporate Status, he was or is threatened to be made, a party
to any threatened, pending or completed Proceeding, other than a Proceeding by
or in the right of the Corporation.  Pursuant to this Section,
Indemnitee shall be indemnified against Expenses, judgments, penalties, fines
and amounts paid in settlement actually and reasonably incurred by him or on his
behalf in connection with any such Proceeding or any claim, issue or matter
therein, if he acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the Corporation, and, with respect to
any criminal Proceeding, had no reasonable cause to believe his conduct was
unlawful.

     

    5.           Proceedings by or in the
Right of the Corporation.

     

    Indemnitee
shall be entitled to the rights of indemnification provided in this Section if,
by reason of his Corporate Status, he is, was or is threatened to be made, a
party to any threatened, pending or completed Proceeding brought by or in the
right of the Corporation to procure a judgment in its favor.  Pursuant
to this Section, Indemnitee shall be indemnified against Expenses and amounts
paid in settlement (such settlement amounts not to exceed, in the judgment of
the Board, the estimated expense of litigating the Proceeding to conclusion)
actually and reasonably incurred by him or on his behalf in connection with any
such Proceeding if he or she acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the
Corporation.  Notwithstanding the foregoing, no indemnification
against such Expenses or amounts paid in settlement shall be made in respect of
any claim, issue or matter in any such Proceeding as to which Indemnitee has
been adjudged to be liable to the Corporation if applicable law prohibits such
indemnification unless the court in which such Proceeding shall have been
brought, was brought or is pending, shall determine that indemnification against
Expenses or amounts paid in settlement may nevertheless be made by the
Corporation.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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    6.           Indemnification for Expenses
of Party Who is Wholly or Partly Successful.

     

    Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee is, by
reason of his Corporate Status, a party to and is successful, on the merits or
otherwise, in any Proceeding, he or she shall be indemnified against all
Expenses (and, when eligible hereunder, amounts paid in settlement) actually and
reasonably incurred by him or on his behalf in connection
therewith.  If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than
all claims, issues or matters in such Proceeding, the Corporation shall
indemnify Indemnitee against all Expenses (and, when eligible hereunder, amounts
paid in settlement) actually and reasonably incurred by him or on his behalf in
connection with each successfully resolved claim, issue or
matter.  For purposes of this Section, the term “successful, on the
merits or otherwise,” includes, but is not limited to, (i) any termination,
withdrawal, or dismissal (with or without prejudice) of any Proceeding against
the Indemnitee without any express finding of liability or guilt against him,
and (ii) the expiration of 90 days after the making of any claim or threat of a
Proceeding without the institution of the same and without any promise or
payment made to induce a settlement.

     

    7.           Indemnification for Expenses
as a Witness.

     

    Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee is, by
reason of his Corporate Status, a witness in any Proceeding, he shall be
indemnified against all Expenses actually and reasonably incurred by him on his
behalf in connection therewith.

     

    8.           Advancement of Expenses and
Other Amounts.

     

    The
Corporation shall advance all Expenses, judgments, penalties, fines and, when
eligible hereunder, amounts paid in settlement, incurred by or on behalf of
Indemnitee in connection with any Proceeding within thirty (30) days after the
receipt by the Corporation of a statement or statements from Indemnitee
requesting such advance or advances from time to time, whether prior to or after
final disposition of such Proceeding.  Such statement or statements
shall reasonably evidence the Expenses, judgments, penalties, fines and amounts
paid in settlement, incurred by Indemnitee and shall include or be preceded or
accompanied by an agreement by or on behalf of Indemnitee to repay any Expenses,
judgments, penalties, fines and amounts paid in settlement advanced if it shall
ultimately be determined that Indemnitee is not entitled to be indemnified
against such Expenses, judgments, penalties, fines and, when eligible hereunder,
amounts paid in settlement.

     

    9.           Procedure for Determination
of Entitlement to Indemnification.

     

    9.1           To
obtain indemnification under this Agreement in connection with any Proceeding,
and for the duration thereof, Indemnitee shall submit to the Corporation a
written request, including therein or therewith such documentation and
information as is reasonably available to Indemnitee and is reasonably necessary
to determine whether and to what extent Indemnitee is entitled to
indemnification.  The Secretary of the Corporation shall, promptly
upon receipt of any such request for indemnification, advise the Board in
writing that Indemnitee has requested indemnification.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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    9.2           Upon
written request by Indemnitee for indemnification pursuant to Section 9.1
hereof, a determination, if required by applicable law, with respect to
Indemnitee’s entitlement thereto shall be made in such case:  (i) if a
Change in Control shall have occurred, by Independent Counsel (unless Indemnitee
shall request that such determination be made by the Board or the stockholders,
in which case in the manner provided for in clauses (ii) or (iii) of this
Section 9.2) in a written opinion to the Board, a copy of which shall be
delivered to Indemnitee; (ii) if a Change of Control shall not have occurred,
(A) by the Board by a majority vote of a quorum consisting of Disinterested
Directors, or (B) if a quorum of the Board consisting of Disinterested Directors
is not obtainable, by a majority of a committee of the Board consisting of two
or more Disinterested Directors, or (C) by Independent Counsel in a written
opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D)
by the stockholders of the Corporation, by a majority vote of a quorum
consisting of stockholders who are not parties to the proceeding, or if no such
quorum is obtainable, by a majority vote of stockholders who are not parties to
such proceeding; or (iii) as provided in Section 10.2 of this
Agreement.  If it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within ten (10) days after
such determination.  Indemnitee shall cooperate with the person,
persons or entity making such determination with respect to Indemnitee’s
entitlement to indemnification, including providing to such person, persons or
entity upon reasonable advance request any documentation or information which is
not privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such
determination.  Any costs or expenses (including attorneys’ fees and
disbursements) incurred by Indemnitee in so cooperating with the person, persons
or entity making such determination shall be borne by the Corporation
(irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Corporation hereby indemnifies and agrees to hold
Indemnitee harmless therefrom.

     

    9.3           If
a Change of Control shall have occurred, Independent Counsel shall be selected
by Indemnitee (unless Indemnitee shall request that such selection be made by
the Board), and Indemnitee shall give written notice to the Corporation advising
it of the identity of Independent Counsel so selected.  In either
event, Indemnitee or the Corporation, as the case may be, may, within seven days
after such written notice of selection shall have been given, deliver to the
Corporation or to Indemnitee, as the case may be, a written objection to such
selection.  Such objection may be asserted only on the ground that
Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 1 of this Agreement, and the objection shall set
forth with particularity the factual basis of such assertion.  If such
written objection is made, Independent Counsel so selected may not serve as
Independent Counsel unless and until a court has determined that such objection
is without merit. If, within 20 days after submission by Indemnitee of a written
request for indemnification pursuant to Section 9.1 hereof, no Independent
Counsel shall have been selected and not objected to, either the Corporation or
Indemnitee may petition the Court of Chancery of the State of Delaware or other
court of competent jurisdiction, for resolution of any objection which has been
made by the Corporation or Indemnitee to the other’s selection of Independent
Counsel and/or for the appointment as Independent Counsel of a person selected
by such court or by such other person as such court shall designate, and the
person with respect to whom an objection is so resolved or the person so
appointed shall act as Independent Counsel under Section 9.2 hereof. The
Corporation shall pay any and all reasonable fees and expenses of Independent
Counsel incurred by such Independent Counsel in connection with its actions
pursuant to this Agreement, and the Corporation shall pay all reasonable fees
and expenses incident to the procedures of this Section 9.3, regardless of the
manner in which such Independent Counsel was selected or
appointed.  Upon the due commencement date of any judicial proceeding
pursuant to Section 11.1(iii) of this Agreement, Independent Counsel shall be
discharged and relieved of any further responsibility in such capacity (subject
to the applicable standards of professional conduct then
prevailing).

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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    10.          Presumptions and Effects of
Certain Proceedings.

     

    10.1         In
making a determination with respect to entitlement to indemnification hereunder,
the person or persons or entity making such determination shall presume that
Indemnitee is entitled to indemnification under this Agreement if Indemnitee has
submitted a request for indemnification in accordance with Section 9.1 of this
Agreement, and the Corporation shall have the burden of proof to overcome that
presumption by clear and convincing evidence in connection with the making by
any person, persons or entity of any determination contrary to that
presumption.

     

    10.2         If
the person, persons or entity empowered or selected under Section 9 of this
Agreement to determine whether Indemnitee is entitled to indemnification shall
not have made a determination within thirty (30) days after receipt by the
Corporation of the request therefor, the requisite determination of entitlement
to indemnification shall be deemed to have been made and Indemnitee shall be
entitled to such indemnification, absent (i) a misstatement by Indemnitee of a
material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification, or (ii) prohibition of such indemnification under applicable
law; provided, however, that such 30-day period may be extended for a reasonable
time, not to exceed an additional thirty (30) days, if the person, persons or
entity making the determination with respect to entitlement to indemnification
in good faith require(s) such additional time for the obtaining or evaluating of
documentation and/or information relating thereto; and provided, further,
however, that the foregoing provisions of this Section 10.2 shall not apply (i)
if the determination of entitlement to indemnification is to be made by the
stockholders pursuant to Section 9.2 of this Agreement and if (A) within 15 days
after receipt by the Corporation of the request for such determination the Board
has resolved to submit such determination to the stockholders for their
consideration at an annual meeting thereof to be held within 75 days after such
receipt and such determination is made thereat, or (B) a special meeting of
stockholders is called within 15 days after such receipt for the purpose of
making such determination, such meeting is held for such purpose within 60 days
after having been so called and such determination is made thereat, or (ii) if
the determination of entitlement to indemnification is to be made by Independent
Counsel pursuant to Section 9.2 of this Agreement.  In connection with
each meeting at which a stockholder determination will be made, the Corporation
shall solicit proxies that expressly include a proposal to indemnify or
reimburse the Indemnitee.  The Corporation shall afford the Indemnitee
ample opportunity to present evidence of the facts upon which the Indemnitee
relies for indemnification in any Corporation proxy statement relating to such
shareholder determination.  Subject to the fiduciary duties of its
members under applicable law, the Board will not recommend against
indemnification or reimbursement in any proxy statement relating to the proposal
to indemnify or reimburse the Indemnitee.

     

    
      	
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      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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    10.3          The
termination of any Proceeding or of any claim, issue or matter therein, by
judgment, order, settlement or conviction, or upon a plea of nolo contendere or
its equivalent, shall not (except as otherwise expressly provided in this
Agreement) of itself adversely affect the right of Indemnitee to indemnification
or create a presumption that Indemnitee did not act in good faith and in a
manner which he or she reasonably believed to be in or not opposed to the best
interests of the Corporation or, with respect to any criminal Proceeding, that
Indemnitee had reasonable cause to believe that his conduct was
unlawful.

     

    10.4         Reliance as Safe
Harbor.  For purposes of this Agreement, the Indemnitee shall
be deemed to have acted in good faith and in a manner he reasonably believed to
be in or not opposed to the best interests of the Corporation, or, with respect
to any criminal Proceeding, to have had no reasonable cause to believe his
conduct was unlawful, if his action is based on (i) the records or books of
account of the Corporation, or another enterprise, including financial
statements, (ii) information supplied to him by the officers of the Corporation
or another enterprise in the course of their duties, (iii) the advice of legal
counsel for the Corporation or another enterprise, or of an independent
certified public accountant or an appraiser or other expert selected with
reasonable care by the Corporation or another enterprise.  The term
“another enterprise” as used in this Section shall mean any other corporation or
any partnership, joint venture, trust, employee benefit plan or other enterprise
of which the Indemnitee is or was serving at the request of the Corporation as a
director, officer, partner, trustee, employee or agent.  The
provisions of this Section shall not be deemed to be exclusive or to limit in
any way the other circumstances in which the Indemnitee may be deemed to have
met the applicable standard of conduct set forth herein. Whether or not the
foregoing provisions of this Section 10.4 are satisfied, it shall in any event
be presumed that Indemnitee has at all times acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the
Corporation, or, with respect to any criminal Proceeding, to have had no
reasonable cause to believe Indemnitee’s conduct was unlawful. Anyone seeking to
overcome this presumption shall have the burden of proof and the burden of
persuasion by clear and convincing evidence.

     

    11.          Remedies of
Indemnitee.

     

    11.1           In
the event that (i) a determination is made pursuant to Section 9 of this
Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8
of this Agreement, (iii) the determination of indemnification is to be made by
Independent Counsel pursuant to Section 9.2 of this Agreement and such
determination shall not have been made and delivered in a written opinion within
30 days after receipt by the Corporation of the request for indemnification,
(iv) payment of indemnification is not made pursuant to Section 7 of this
Agreement within thirty (30) days after receipt by the Corporation of a written
request therefor, or (v) payment of indemnification is not made within thirty
(30) days after a determination has been made that Indemnitee is entitled to
indemnification or such determination is deemed to have been made pursuant to
Section 9 or 10 of this Agreement, Indemnitee shall be entitled to an
adjudication in an appropriate court of the State of Delaware, or in any other
court of competent jurisdiction, of his entitlement to such indemnification or
advancement of Expenses, judgments, penalties, fines or, when eligible
hereunder, amounts paid in settlement.  The Corporation shall not
oppose Indemnitee’s right to seek any such adjudication.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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    11.2         In
the event that a determination shall have been made pursuant to Section 9 of
this Agreement that Indemnitee is not entitled to indemnification, any judicial
proceeding commenced pursuant to this Section shall be conducted in all respects
as a de novo trial on the merits and Indemnitee shall not be prejudiced by
reason of that adverse determination.

     

    11.3         If
a determination shall have been made or deemed to have been made pursuant to
Section 9 or 10 of this Agreement that Indemnitee is entitled to
indemnification, the Corporation shall be bound by such determination in any
judicial proceeding commenced pursuant to this Section, absent (i) a
misstatement by Indemnitee of a material fact, or an omission of a material fact
necessary to make Indemnitee’s statement not materially misleading, in
connection with the request for indemnification, or (ii) prohibition of such
indemnification under applicable law.

     

    11.4         The
Corporation shall be precluded from asserting in any judicial
proceeding  commenced pursuant to this Section that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court that the Corporation is bound by all the provisions
of this Agreement.

     

    11.5         In
the event that Indemnitee, pursuant to this Section, seeks a judicial
adjudication of his or her rights under, or to recover damages for breach of,
this Agreement, Indemnitee shall be entitled to recover from the Corporation,
and shall be indemnified by the Corporation against, any and all expenses (of
the kinds described in the definition of Expenses) actually and reasonably
incurred by him or her in such judicial adjudication, but only if he or she
prevails therein.  If it shall be determined in such judicial
adjudication that Indemnitee is entitled to receive less than all of the
indemnification or advancement of expenses sought, the expenses incurred by
Indemnitee in connection with such judicial adjudication shall be appropriately
prorated.

     

    12.          Procedure Regarding
Indemnification.

     

    With
respect to any Proceedings, the Indemnitee, prior to taking any action with
respect to such Proceeding, shall consult with the Corporation as to the
procedure to be followed in defending, settling, or compromising the Proceeding
and may not consent to any settlement or compromise of the Proceeding without
the written consent of the Corporation (which consent may not be unreasonably
withheld or delayed).  The Corporation shall be entitled to
participate in defending, settling or compromising any Proceeding and to assume
the defense of such Proceeding with counsel of its choice and shall assume such
defense if requested by the Indemnitee.  Notwithstanding the election
by, or obligation of, the Corporation to assume the defense of a Proceeding, the
Indemnitee shall have the right to participate in the defense of such Proceeding
and to employ counsel of Indemnitee’s choice, but the fees and expenses of such
counsel shall be at the expense of the Indemnitee unless (i) the employment of
such counsel has been authorized in writing by the Company, or (ii) the
Indemnitee has reasonably concluded that there may be defenses available to him
or her which are different from or additional to those available to the
Corporation (in which latter case the Corporation shall not have the right to
direct the defense of such Proceeding on behalf of the Indemnitee), in either of
which events the fees and expenses of not more than one additional firm of
attorneys selected by the Indemnitee shall be borne by the
Corporation.  If the Corporation assumes the defense of a Proceeding,
then counsel for the Corporation and Indemnitee shall keep Indemnitee reasonably
informed of the status of the Proceeding and promptly send to Indemnitee copies
of all documents filed or produced in the Proceeding, and the Corporation shall
not compromise or settle any such Proceeding without the written consent of the
Indemnitee (which consent may not be unreasonably withheld or delayed) if the
relief provided shall be other than monetary damages and shall promptly notify
the Indemnitee of any settlement and the amount thereof.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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              13.

            	
              Non-Exclusivity;
      Survival of Rights; Insurance; Subrogation;
      Contribution.

            

    

     

    13.1         The
rights of indemnification and to receive advancement of Expenses as provided by
this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee may at any time be entitled under applicable law, the certificate of
incorporation or by-laws of the Corporation, any agreement, a vote of
stockholders or a resolution of directors, or otherwise.  No
amendment, alteration or repeal of this Agreement or any provision hereof shall
be effective as to any Indemnitee with respect to any action taken or omitted by
such Indemnitee in his Corporate Status prior to such amendment, alteration or
repeal.

     

    13.2         To
the extent that the Corporation maintains an insurance policy or policies
providing liability insurance for directors, officers, employees, agents or
fiduciaries of the Corporation or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise which such person
serves at the request of the Corporation, Indemnitee shall be covered by such
policy or policies in accordance with its or their terms to the maximum extent
of the coverage available for any such director, officer, employee, agent or
fiduciary under such policy or policies.

     

    13.3         In
the event of any payment under this Agreement, the Corporation shall be
subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all papers required and take all action necessary
to secure such rights, including execution of such documents as are reasonably
necessary to enable the Corporation to bring suit to enforce such
rights.

     

    13.4         The
Corporation shall not be liable under this Agreement to make any payment of
amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise.

     

    13.5         (a)           If
a determination is made that Indemnitee is not entitled to indemnification,
after Indemnitee submits a written request therefor, under this Agreement, then
in respect of any threatened, pending or completed Proceeding in which the
Corporation is jointly liability with the Indemnitee (or would be if joined in
such Proceeding), the Corporation shall contribute to the amount of Expenses,
judgments, fines and amounts paid in settlement by the Indemnitee in such
proportion as is appropriate to reflect (i) the relative benefits received by
the Corporation on the one hand and the Indemnitee on the other hand from the
transaction from which Proceeding arose, and (ii) the relative fault of the
Corporation on the one hand and of the Indemnitee on the other hand in
connection with the events that resulted in such Expenses, judgments, fines or
amounts paid in settlement, as well as any other relevant equitable
considerations.  The relative fault of the Corporation on the one hand
and of the Indemnitee on the other hand shall be determined by reference to,
among other things, the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent the circumstances resulting in
such Expenses, judgments, fines or amounts paid in settlement.  The
Corporation agrees that it would not be just and equitable if contribution
pursuant to this Section were determined by pro rata allocation or any other
method of allocation that does not take into account the foregoing equitable
considerations.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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    (b)          The
determination as to the amount of the contribution, if any, shall be made
by:

     

    (i)           a
court of competent jurisdiction upon the applicable of both the Indemnitee and
the Corporation (if the Proceeding had been brought in, and final determination
had been rendered by such court);

     

    (ii)          the
Board by a majority vote of a quorum consisting of Disinterested Directors;
or

     

    (iii)         Independent
Counsel, if a quorum is not obtainable for purpose of (ii) above, or, even if
obtainable, a quorum of Disinterested Directors so directs.

     

    14.          Duration of
Agreement.

     

    This
Agreement shall continue until and terminate upon the later of: (a) ten (10)
years after the date that Indemnitee shall have ceased to serve as a director of
the Corporation, or (b) the final termination of all pending Proceedings in
respect of which Indemnitee is granted rights of indemnification or advancement
of Expenses, judgments, penalties, fines or amounts paid in settlement hereunder
and or any proceeding commenced by Indemnitee pursuant to Section 11 of this
Agreement.  This Agreement shall be binding upon the Corporation and
its successors and assigns and shall inure to the benefit of Indemnitee and his
spouse, heirs, executors, personal representatives and
administrators.

     

    15.          Severability.

     

    If any
provision or provisions of this Agreement shall be held to be invalid, illegal
or unenforceable for any reason whatsoever:  (a) the validity,
legality and enforceability of the remaining provisions of this Agreement
(including, without limitation, each portion of any Section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that
is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby; and (b) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any
Section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall be construed so as to give effect to the intent manifested by the
provision held invalid, illegal or unenforceable.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

   

    
      
        
        

      

      
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                Everest
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    16.          Entire
Agreement.

    This
Agreement constitutes the entire agreement between the Corporation and the
Indemnitee with respect to the subject matter hereof and supercedes all prior
agreements, understanding, negotiations and discussion, both written and oral,
between the parties hereto with respect to such subject matter (the “Prior
Agreements”); provided, however, that if this Agreement shall ever be held void
or unenforceable for any reasons whatsoever, and is not reformed pursuant to
Section 15 hereof, then (i) this Agreement shall not be deemed to have
superceded any Prior Agreements; (ii) all of such Prior Agreements shall be
deemed to be in full force and effect notwithstanding the execution of this
Agreement; and (iii) the Indemnitee shall be entitled to maximum indemnification
benefits provided under any Prior Agreements, as well as those provided under
applicable law, the certificate of incorporation or by-laws of the Corporation,
a vote of stockholders or resolution of directors.

     

    17.          Exception to Right of
Indemnification or Advancement of Expenses.

     

    Except as
provided in Section 11.5, Indemnitee shall not be entitled to indemnification or
advancement of Expenses under this Agreement with respect to any Proceeding, or
any claim therein, brought or made by him against the Corporation.

     

    18.          Covenant Not to Sue;
Limitation of Actions; Release of Claims.

     

    No legal
action shall be brought and no cause of action shall be asserted by or on behalf
of the Corporation (or any of its subsidiaries) against the Indemnitee, his
spouse, heirs, executors, personal representatives or administrators after the
expiration of two (2) years from the date of accrual of such cause of action and
any claim or cause of action of the Corporation (or any of its subsidiaries)
shall be extinguished and deemed released unless asserted by the filing of a
legal action within such two (2) year period; provided, however, that if any
shorter period of limitation is otherwise applicable to any such cause of
action, such shorter period shall govern.

     

    19.          Identical
Counterparts.

     

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

     

    20.          Headings.

     

    The
headings of the paragraphs of this Agreement are inserted for convenience only
and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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    21.          Modification and
Waiver.

     

    No
supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by both of the parties hereto.  No waiver of any
of the provisions of this Agreement shall be deemed or shall constitute a waiver
of any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

     

    22.          Notice by
Indemnitee.

     

    Indemnitee
agrees promptly to notify the Corporation in writing upon being served with any
summons, citation, subpoena, complaint, indictment, information or other
document relating any Proceeding or matter which may be subject to
indemnification or advancement of Expenses, judgments, penalties, fines or
amounts paid in settlement covered hereunder.

     

    23.          Notices.

     

    All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if (i) delivered by hand and
receipted for by the party to whom such notice or other communication shall have
been directed, or (ii) mailed by certified or registered mail with postage
prepaid, on the third business day after the date on which it is so
mailed:

     

    If to
Indemnitee, to:

     

    [The
address indicated below Indemnitee’s signature on the signature page
hereto]

    

    If to the
Corporation, to:

    

    Clark Holdings Inc.

    121 NewYork Avenue

    Hillside
Ave. Building

    Trenton,
New Jersey 08638

    Attention:  Chief Executive
Officer

     

    or to
such other address or such other person as Indemnitee or the Corporation shall
designate in writing in accordance with this Section, except that notices
regarding changes in notices shall be effective only upon receipt.

     

    24.          Governing
Law.

     

    The
parties agree that this Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware applicable to
contracts made and performed in that state without giving effect to the
principles of conflicts of laws.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    
 

    
      
         

      

      
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                Everest
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    25.          Miscellaneous.

     

    Use of
the masculine pronoun shall be deemed to include usage of the feminine pronoun
where appropriate.

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and
year first above written.

    

    
      
        
          
            
              
                	 
      	
                        CLARK
      HOLDINGS INC.

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:  Gregory
      Burns

                      
	 
      	 
      	
                        Title:  CEO

                      
	 
      	 
      
	 
      	
                        INDEMNITEE

                      
	 
      	 
      
	 
      	 
      
	 
      	
                        Larry
      Hughes

                      
	 
      	 
      
	 
      	
                        Address
      of Indemnitee:

                      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      

              

            

          

        

      

    

     

    
      	
              Client
      Initial _____________

            	 
      	
              Advisor
      Initial ____________

            

    

     

    
      
         

      

      
        24CHINA GERUI ADVANCED MATERIALS GROUP LIMITED

    2010
SHARE INCENTIVE PLAN

    

    
      
        	
                1.

              	
                Purpose

              

      

    

     

    The China
Gerui Advanced Materials Group Limited 2010 Share Incentive Plan is intended to
promote the best interests of China Gerui Advanced Materials Group Limited and
its shareholders by (i) assisting the Corporation and its Affiliates in the
recruitment and retention of persons with ability and initiative, (ii) providing
an incentive to such persons to contribute to the growth and success of the
Corporation’s businesses by affording such persons equity participation in the
Corporation and (iii) associating the interests of such persons with those of
the Corporation and its affiliates and shareholders.

     

    
      
        	
                2.

              	
                Definitions

              

      

    

     

    As used
in this Plan the following definitions shall apply:

     

    A.          “Affiliate” means (i)
any Subsidiary, (ii) any Parent, (iii) any corporation, trade or business
(including, without limitation, a partnership or limited liability company)
which is directly or indirectly controlled fifty percent (50%) or more (whether
by ownership of stock, assets or an equivalent ownership interest or voting
interest) by the Corporation or one of its Affiliates, and (iv) any other entity
in which the Corporation or any of its Affiliates has a material equity interest
and which is designated as an “Affiliate” by resolution of the
Committee.

     

    B.          “Award” means any
Option or Share Award granted hereunder.

     

    C.          “Board” means the
Board of Directors of the Corporation.

     

    D.          “Cause” means (i) in
the case where the Participant does not have an employment, consulting or
similar agreement in effect with the Corporation or its Affiliate at the time of
grant of the Award or where there is such an agreement but it does not define
“cause” (or words of like import), conduct related to the Participant’s service
to the Corporation or an Affiliate for which either criminal or civil penalties
against the Participant may be sought, misconduct, insubordination, material
violation of the Corporation or its Affiliate’s policies, disclosing or misusing
any confidential information or material concerning the Corporation or any
Affiliate or material breach of any employment, consulting agreement or similar
agreement, or (ii) in the case where the Participant has an employment
agreement, consulting agreement or similar agreement in effect with the
Corporation or its Affiliate at the time of grant of the Award that defines a
termination for “cause” (or words of like import), “cause” as defined in such
agreement; provided, however, that with regard to any agreement that defines
“cause” on occurrence of or in connection with change of control, such
definition of  “cause” shall not apply until a change of control
actually occurs and then only with regard to a termination
thereafter.

     

    E.          “Code” means the
Internal Revenue Code of 1986, and any amendments thereto.

     

    F.          “Committee” means the
Board or any Committee of the Board to which the Board has delegated any
responsibility for the implementation, interpretation or administration of the
Plan.

     

    G.          “Consultant” means (i)
any person performing consulting or advisory services for the Corporation or any
Affiliate, or (ii) a director of an Affiliate.

     

    H.          “Continuous Service”
means that the Participant’s service with the Corporation or an Affiliate,
whether as an employee, Director or Consultant, is not interrupted or
terminated.  A Participant’s Continuous Service shall not be deemed to
have been interrupted or terminated merely because of a change in the capacity
in which the Participant renders service to the Corporation or an Affiliate as
an employee, Consultant or Director or a change in the entity for which the
Participant renders such service, provided that there is no interruption or
termination of the Participant’s Continuous Service.  The
Participant’s Continuous Service shall be deemed to have terminated either upon
an actual termination or upon the entity for which the Participant is performing
services ceasing to be an Affiliate of the Corporation.  The Committee
shall determine whether Continuous Service shall be considered interrupted in
the case of any leave of absence approved by the Corporation, including sick
leave, military leave or any other personal leave.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    I.          
“Corporation”
means China Gerui Advanced Materials Group Limited, a corporation incorporated
under the laws of the British Virgin Islands.

     

    J.          
“Corporation
Law” means the general corporation law of the jurisdiction of
incorporation of the Corporation.

     

    K.          “Director” means a
member of the Board.

     

    L.          “Disability” shall,
except as otherwise provided in an Award Agreement, mean the Participant is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than twelve
(12) months.

     

    M.         “Eligible Person”
means an employee of the Corporation or an Affiliate (including a corporation
that becomes an Affiliate after the adoption of this Plan), a Director or a
Consultant to the Corporation or an Affiliate (including a corporation that
becomes an Affiliate after the adoption of this Plan) .

     

    N.          “Exchange Act” means
the Securities Exchange Act of 1934, as amended.

     

    O.          “Fair Market Value”
means, on any given date, the current fair market value of the Ordinary Shares
as determined as follows:

     

    (i)          If
the Ordinary Shares are traded on The NASDAQ Stock Market or is listed on a
national securities exchange, the closing price for the day of determination as
quoted on such market or exchange which is the primary market or exchange for
trading of the Ordinary Shares or if no trading occurs on such date, the last
day on which trading occurred, or such other appropriate date as determined by
the Committee in its discretion, as reported in The Wall Street Journal or such
other source as the Committee deems reliable;

     

    (ii)         If
the Ordinary Shares are regularly quoted by a recognized securities dealer but
selling prices are not reported, their Fair Market Value shall be the mean
between the high and the low asked prices for the Ordinary Shares for the day of
determination; or

     

    (iii)        In
the absence of an established market for the Ordinary Shares, Fair Market Value
shall be determined by the Committee in good faith.

     

    P.          “Nonqualified Share
Option” means an Option (or portion thereof) which is not intended or
does not for any reason qualify as an incentive stock option within the meaning
of Section 422 of the Code.

     

    Q.          “Option” means any
option to purchase Ordinary Shares granted under this Plan.

     

    R.          “Ordinary Shares”
means the ordinary shares, no par value, of the Corporation.

     

    S.          “Parent” means any
corporation (other than the Corporation) in an unbroken chain of corporations
ending with the Corporation if each of the corporations (other than the
Corporation) owns stock possessing at least fifty percent (50%) of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    T.          “Participant” means an
Eligible Person who is selected by the Committee to receive an Award and is
party to an agreement setting forth the terms of the Award, as
appropriate.

     

    U.          “Plan” means this
China Gerui Advanced Materials Limited 2010 Share Incentive Plan.

     

    V.          “Restricted Share
Award” means an award of Ordinary Shares under Section 7.A.

     

    W.         “Securities Act” means
the Securities Act of 1933, as amended.

     

    X.          “Share Award” means a
Restricted Share Award.

     

    Y.          “Share Award
Agreement” means an agreement (written or electronic) between the
Corporation and a Participant setting forth the specific terms and conditions of
a Share Award granted to the Participant under Section 7.  Each Share
Award Agreement shall be subject to the terms and conditions of the Plan and
shall include such terms and conditions as the Committee shall
authorize.

     

    Z.          “Share Option
Agreement” means an agreement (written or electronic) between the
Corporation and a Participant setting forth the specific terms and conditions of
an Option granted to the Participant under Section 6.  Each Share
Option Agreement shall be subject to the terms and conditions of the Plan and
shall include such terms and conditions as the Committee shall
authorize.

     

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

     

    
      
        	
                3.

              	
                Administration

              

      

    

     

    A.          Delegation of
Administration.  The Board shall be the sole Committee of the
Plan unless the Board delegates all or any portion of its authority to
administer the Plan to a Committee.  To the extent not prohibited by
the charter or bylaws of the Corporation, the Board may delegate all or a
portion of its authority to administer the Plan to a Committee of the Board
appointed by the Board and constituted in compliance with the applicable
Corporation Law.  The Committee shall consist solely of three (3) or
more Directors who are, to the extent required by the rules of the market on
which the Corporation’s shares are traded or the exchange on which the
Corporation’ shares are listed, “independent” within the meaning of such
rules.

     

    B.          Powers of the
Committee.  Subject to the provisions of the Plan, and in the
case of a Committee appointed by the Board, the specific duties delegated to
such Committee, the Committee shall have the authority:

     

    (i)           To
construe and interpret all provisions of this Plan and all Share Option
Agreements and Share Award Agreements under this Plan.

     

    (ii)          To
determine the Fair Market Value of Ordinary Shares.

     

    (iii)         To
select the Eligible Persons to whom Awards are granted from time to time
hereunder.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    (iv)          To
determine the number of Ordinary Shares covered by an Award; and determine such
other terms and conditions, not inconsistent with the terms of the Plan, of each
such Award.  Such terms and conditions include, but are not limited
to, the exercise price of an Option, purchase price of Ordinary Shares subject
to a Share Award, the time or times when Options or Share Awards may be
exercised or Ordinary Shares issued thereunder, the right of the Corporation to
repurchase Ordinary Shares issued pursuant to the exercise of an Option or a
Share Award and other restrictions or limitations (in addition to those
contained in the Plan) on the forfeitability or transferability of Options,
Share Awards or Ordinary Shares issued upon exercise of an Option or pursuant to
an Award.  Such terms may include conditions which shall be determined
by the Committee and need not be uniform with respect to
Participants.

     

    (v)         To
accelerate the time at which any Option or Share Award may be exercised, or the
time at which a Share Award or Ordinary Shares issued under the Plan may become
transferable or nonforfeitable.

     

    (vi)         To
determine whether and under what circumstances an Option may be settled in cash,
Ordinary Shares or other property under Section 6.H instead of Ordinary
Shares.

     

    (vii)        To
amend, cancel, extend, renew, accept the surrender of, modify or accelerate the
vesting of or lapse of restrictions on all or any portion of an outstanding
Award, including the repricing of the exercise price for an outstanding
Option.  Except as specifically permitted by the Plan, the Share
Option Agreement or Share Award Agreement or as required to comply with
applicable law, regulation or rule, no amendment, cancellation or modification
shall, without a Participant’s consent, adversely affect any rights of the
Participant.

     

    (viii)       To
prescribe the form of Share Option Agreements and Share Award Agreements; to
adopt policies and procedures for the exercise of Options or Share Awards,
including the satisfaction of withholding obligations; to adopt, amend, and
rescind policies and procedures pertaining to the administration of the Plan;
and to make all other determinations necessary or advisable for the
administration of this Plan.

     

    The
express grant in the Plan of any specific power to the Committee shall not be
construed as limiting any power or authority of the Committee; provided that a
Committee of the Board may not exercise any right or power reserved to the
Board.  Any decision made, or action taken, by the Committee or in
connection with the administration of this Plan shall be final, conclusive and
binding on all persons having an interest in the Plan.

     

    
      
        	
                4.

              	
                Eligibility

              

      

    

     

    A.          Eligibility for
Awards.  Awards may be granted to any Eligible Person selected
by the Committee.

     

    B.          Eligibility of
Consultants. A Consultant shall be an Eligible Person only if the offer
or sale of the Corporation’s securities would be eligible for registration on
Form S-8 Registration Statement because of the identity and nature of the
service provided by such person, unless the Corporation determines that an offer
or sale of the Corporation’s securities to such person will satisfy another
exemption from the registration under the Securities Act and complies with the
securities laws of all other jurisdictions applicable to such offer or
sale.

     

    C.          Substitution
Awards.  The Committee may make Awards and may grant Options
under the Plan by assumption, in substitution or replacement of performance
shares, phantom shares, share awards, stock options, stock appreciation rights
or similar awards granted by another entity (including an Affiliate) in
connection with a merger, consolidation, acquisition of property or stock or
similar transaction affecting the Corporation or its
Affiliate.  Notwithstanding any provision of the Plan (other than the
maximum number of Ordinary Shares that may be issued under the Plan), the terms
of such assumed, substituted, or replaced Awards shall be as the Committee, in
its discretion, determines is appropriate.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    
      
        	
                5.

              	
                Ordinary
      Shares Subject to Plan

              

      

    

     

    A.          Share Reserve and
Limitations on Grants.  Subject to adjustment as provided in
Section 8, the maximum aggregate number of Ordinary Shares that may be (i)
issued under this Plan pursuant to the exercise of Options, and (ii) issued
pursuant to Share Awards is 3,500,000.

     

    B.          Reversion of
Shares.  If an Option or Share Award is terminated, expires or
becomes unexercisable, in whole or in part, for any reason, the unissued or
unpurchased Ordinary Shares which were subject thereto shall become available
for future grant under the Plan.  Ordinary Shares that have been
actually issued under the Plan shall not be returned to the share reserve for
future grants under the Plan; except that Ordinary Shares issued pursuant to a
Share Award which are forfeited to the Corporation or repurchased by the
Corporation at the original purchase price of such shares, shall be returned to
the share reserve for future grant under the Plan.

     

    C.          Source of
Shares.  Ordinary Shares issued under the Plan may be shares of
authorized and unissued Ordinary Shares or previously issued Ordinary Shares
that have been reacquired by the Corporation and cancelled or maintained as
treasury shares.

     

    
      
        	
                6.

              	
                Options

              

      

    

     

    A.          Award.  In
accordance with the provisions of Section 4, the Committee will designate each
Eligible Person to whom an Option is to be granted and will specify the number
of Ordinary Shares covered by such Option.  The Share Option Agreement
shall specify the vesting schedule applicable to such Option and any other terms
of such Option.  Options granted under the Plan are intended to be
Nonqualified Share Options.

     

    B.          Option
Price.  The exercise price per share for Ordinary Shares
subject to an Option shall be not less than (a) par value or (b) the Fair Market
Value of the Ordinary Shares on the date of grant unless the Committee
determines that a grant with an exercise price less than Fair Market Value is
either (i) awarded to a Participant who is not subject to Section 409A or 457A
of the Code or (ii) if the Participant is subject to Section 409A or 457A of the
Code, the terms of such Option will comply with Section 409A of the Code and
will not result in taxation by reason of Section 457A(a) of the
Code.

     

    C.          Maximum Option
Period.  The maximum period during which an Option may be
exercised shall be determined by the Committee on the date of grant, except that
no Option shall be exercisable after the expiration of ten years from the date
such Option was granted.

     

    D.          Nontransferability.  Except
to the extent transferability of an Option is provided for in the Share Option
Agreement or is approved by the Committee, during the lifetime of the
Participant to whom the Option is granted, such Option may be exercised only by
the Participant.  The holder of an Option transferred pursuant to this
section shall be bound by the same terms and conditions that governed the Option
during the period that it was held by the Participant.  No right or
interest of a Participant in any Option shall be liable for, or subject to, any
lien, obligation, or liability of such Participant.

     

    E.          Vesting and Termination of
Continuous Service.  Except as otherwise provided in a Share
Option Agreement, the following rules shall apply:

     

    (i)           Options
will vest as provided in the Share Option Agreement.  An Option will
be exercisable only to the extent that it is vested on the date of
exercise.  Vesting of an Option will cease on the date of the
Participant's termination of Continuous Service and the Option will be
exercisable only to the extent the Option is vested on the date of termination
of Continuous Service.

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    (ii)          If
the Participant's termination of Continuous Service is for reason of death or
Disability, the right to exercise the Option (to the extent vested) will expire,
unless otherwise specified in the Share Option Agreement, on the earlier of (i)
one (1) year after the date of the Participant's termination of Continuous
Service, or (ii) the expiration date under the terms of the
Agreement.  Until the expiration date, the Participant's heirs,
legatees or legal representative may exercise the Option, except to the extent
the Option was previously transferred pursuant to Section 6.D.

     

    (iii)         If
the Participant's termination of Continuous Service is an involuntary
termination without Cause or a voluntary termination (other than a voluntary
termination described in Section 6.E.(iv)), the right to exercise the Option (to
the extent that it is vested) will expire, unless otherwise specified in the
Share Option Agreement, on the earlier of (i) three (3) months after the date of
the Participant's termination of Continuous Service, or (ii) the expiration date
under the terms of the Agreement. If the Participant’s termination of Continuous
Service is an involuntary termination without Cause or a voluntary termination
(other than a voluntary termination described in Section 6.E(iv)) and the
Participant dies after his or her termination of Continuous Service but before
the right to exercise the Option has expired, the right to exercise the Option
(to the extent vested) shall expire, unless otherwise specified in the Share
Option Agreement, on the earlier of (i) one (1) year after the date of the
Participant's termination of Continuous Service or (ii) the date the Option
expires under the terms of the Share Option Agreement, and, until expiration,
the Participant's heirs, legatees or legal representative may exercise the
Option, except to the extent the Option was previously transferred pursuant to
Section 6.D.

     

    (iv)         If
the Participant’s termination of Continuous Service is for Cause or is a
voluntary termination at any time after an event which would be grounds for
termination of the Participant’s Continuous Service for Cause, the right to
exercise the Option shall expire, unless otherwise specified in the Share Option
Agreement, as of the date of the Participant’s termination of Continuous
Service.

     

    F.          Exercise.  An
Option shall be exercised by completion, execution and delivery of notice
(written or electronic) to the Corporation which states (i) the Option holder’s
intent to exercise the Option, (ii) the number of Ordinary Shares with respect
to which the Option is being exercised, (iii) such other representations and
agreements as may be required by the Corporation and (iv) the method for
satisfying any applicable tax withholding as provided in Section
9.  Such notice of exercise shall be provided on such form or by such
method as the Committee may designate, and payment of the exercise price shall
be made in accordance with Section 6.G.  Subject to the provisions of
this Plan and the applicable Share Option Agreement, an Option may be exercised
to the extent vested in whole at any time or in part from time to time at such
times and in compliance with such requirements as the Committee shall
determine.  A partial exercise of an Option shall not affect the right
to exercise the Option from time to time in accordance with this Plan and the
applicable Share Option Agreement with respect to the remaining shares subject
to the Option.  An Option may not be exercised with respect to
fractional Ordinary Shares.

     

    G.          Payment.  Unless
otherwise provided by the Share Option Agreement, payment of the exercise price
for an Option shall be made in cash or a cash equivalent acceptable to the
Committee or such other method as may be provided for in the Share Option
Agreement.  With the consent of the Committee, payment of all or part
of the exercise price of an Option may also be made (i) by surrender to the
Corporation (or delivery to the Corporation of a properly executed form of
attestation of ownership) of Ordinary Shares that have been held for at least
six (6) months prior to the date of exercise, or (ii) if the Ordinary Shares are
traded on an established securities market, the Committee may approve a
“cashless exercise” by payment of the exercise price by a broker-dealer or by
the Option holder with cash advanced by the broker-dealer if the exercise notice
is accompanied by the Option holder's written irrevocable instructions to
deliver the Ordinary Shares acquired upon exercise of the Option to the
broker-dealer or by delivery of the Ordinary Shares to the broker-dealer with an
irrevocable commitment by the broker-dealer to forward the exercise price to the
Corporation.  If Ordinary Shares are used to pay all or part of the
exercise price, the sum of the cash or cash equivalent and the Fair Market Value
(determined as of the date of exercise) of the shares surrendered must not be
less than the Option price of the shares for which the Option is being
exercised.

     

    H.          Buyout
Provisions.  The Committee may at any time offer to buy out an
Option previously granted for a payment in cash, Ordinary Shares or other
property.  Such buyout offer shall be on such terms and conditions as
the Committee shall determine.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    I.          Shareholder
Rights.  No Participant shall have any rights as a shareholder
with respect to shares subject to  an Option until the date of
exercise of such Option and the certificate for Ordinary Shares to be received
on exercise of such Option has been issued by the Corporation.

     

    
      
        	
                7.

              	
                Share
      Awards

              

      

    

     

    A.          Restricted Share
Awards.  Each Share Award Agreement for a Restricted Share
Award shall be in such form and shall contain such terms and conditions as the
Committee shall deem appropriate.  The terms and conditions of the
Share Award Agreements for Restricted Share Awards may change from time to time,
and the terms and conditions of separate Restricted Share Awards need not be
identical, but each Restricted Share Award shall include (through incorporation
of the provisions hereof by references in the agreement or otherwise) the
substance of each of the following provisions.

     

    (i)           Purchase
Price.  The purchase price, if any, of a restricted share
awards shall be determined by the Committee.

     

    (ii)          Consideration.  The
purchase price of Ordinary Shares acquired pursuant to the Restricted Share
Award shall be paid either:  (i) in cash at the time of purchase; (ii)
at the discretion of the Committee and to the extent permitted under applicable
law, according to a deferred payment or other similar arrangement with the
Participant; or (iii) in any other form of legal consideration that may be
acceptable to the Committee in its discretion.

     

    (iii)         Vesting.  Ordinary
Shares acquired under a Restricted Share Award may, but need not, be subject to
a share repurchase option in favor of the Corporation in accordance with a
vesting schedule to be determined by the Committee.

     

    (iv)         Participant’s Termination of
Service.  In the event of a Participant’s termination of
Continuous Service, the Corporation may repurchase or otherwise reacquire any or
all of the Ordinary Shares held by the Participant which have not vested as of
the date of termination under the terms of the Share Award Agreement for such
Restricted Share Award.

     

    (v)          Transferability.  Rights
to acquire Ordinary Shares under a Restricted Share Award shall be transferable
by the Participant only upon such terms and conditions as are set forth in the
Share Award Agreement for such Restricted Share Award, as the Committee shall
determine in its discretion, so long as Ordinary Shares granted under the
Restricted Share Award remains subject to the terms of the Share Award
Agreement.

    

    
      
        	
                8.

              	
                Changes
      in Capital Structure

              

      

    

     

    A.          No Limitations of
Rights.  The existence of outstanding Awards shall not affect
in any way the right or power of the Corporation or its shareholders to make or
authorize any or all adjustments, recapitalizations, reorganizations or other
changes in the Corporation's capital structure or its business, or any merger or
consolidation of the Corporation, or any issuance of bonds, debentures,
preferred or prior preference stock ahead of or affecting the Ordinary Shares or
the rights thereof, or the dissolution or liquidation of the Corporation, or any
sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding, whether of a similar character or
otherwise.

     

    B.          Changes in
Capitalization.  If the Corporation shall effect a subdivision
or consolidation of shares or other capital readjustment, the payment of a share
dividend, or other increase or reduction of the number of the Ordinary Shares
outstanding, without receiving consideration therefor in money, services or
property, then (i) the number, class, and per share price of Ordinary Shares
subject to outstanding Options and other Awards hereunder and (ii) the number
and class of shares then reserved for issuance under the Plan shall be
appropriately and proportionately adjusted.  No adjustment shall be
made in a manner which will result in an Award that is not subject to Section
409A of the Code becoming subject to Section 409A of the Code.  The
conversion of convertible securities of the Corporation shall not be treated as
effected “without receiving consideration.” The Committee shall make such
adjustments, and its determinations shall be final, binding and
conclusive.

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    C.          Merger, Consolidation or
Asset Sale. If the Corporation is merged or consolidated with another
entity or sells or otherwise disposes of substantially all of its assets to
another company while Options or Share Awards remain outstanding under the Plan,
unless provisions are made in connection with such transaction for the
continuance of the Plan and/or the assumption or substitution of such Options or
Share Awards with new options or share awards covering the shares of the
successor company, or parent or subsidiary thereof, with appropriate adjustments
as to the number and kind of shares and prices, then all outstanding Options and
Share Awards which have not been continued, assumed or for which a substituted
award has not been granted shall, whether or not vested or then exercisable,
unless otherwise specified in the applicable Share Option Agreement or Share
Award Agreement, terminate immediately as of the effective date of any such
merger, consolidation or sale.

     

    D.          Limitation on
Adjustment. Except as previously expressly provided, neither the issuance
by the Corporation of shares of any class, or securities convertible into shares
of any class, for cash or property, or for labor or services either upon direct
sale or upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Corporation convertible into such
shares or other securities, nor the increase or decrease of the number of
authorized shares, nor the addition or deletion of classes of shares, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number, class or price of Ordinary Shares then subject to outstanding Options or
Share Awards.

    

    
      
        	
                9.

              	
                Withholding
      of Taxes

              

      

    

     

    The
Corporation or an Affiliate shall have the right, before any certificate for any
Ordinary Shares is delivered, to deduct or withhold from any payment owed to a
Participant any amount that is necessary in order to satisfy any withholding
requirement that the Corporation or Affiliate in good faith believes is imposed
upon it in connection with Federal, state, or local taxes, or other applicable
tax authority, including transfer taxes, as a result of the issuance of, or
lapse of restrictions on, such Ordinary Shares, or otherwise require such
Participant to make provision for payment of any such withholding
amount.  Subject to such conditions as may be established by the
Committee, the Committee may permit a Participant to (i) have Ordinary Shares
otherwise issuable under an Option or Share Award withheld to the extent
necessary to comply with minimum statutory withholding rate requirements for
supplemental income, (ii) tender back to the Corporation Ordinary Shares
received pursuant to an Option or Share Award to the extent necessary to comply
with minimum statutory withholding rate requirements for supplemental income,
(iii) deliver to the Corporation previously acquired Ordinary Shares, (iv) have
funds withheld from payments of wages, salary or other cash compensation due the
Participant, or (v) pay the Corporation or its Affiliate in cash, in order to
satisfy part or all of the obligations for any taxes required to be withheld or
otherwise deducted and paid by the Corporation or its Affiliate with respect to
the Option or Share Award.

    

    
      
        	
                10.

              	
                Compliance
      with Law and Approval of Regulatory
Bodies

              

      

    

     

    A.          General
Requirements.  No Option or Share Award shall be exercisable,
no Ordinary Shares shall be issued, no certificates for Ordinary Shares shall be
delivered, and no payment shall be made under this Plan except in compliance
with all applicable federal and state laws and regulations (including, without
limitation, withholding tax requirements), any listing agreement to which the
Corporation is a party, and the rules of all domestic stock exchanges or
quotation systems on which the Corporation's shares may be
listed.  The Corporation shall have the right to rely on an opinion of
its counsel as to such compliance.  Any share certificate issued to
evidence Ordinary Shares when a Share Award is granted or for which an Option or
Share Award is exercised may bear such legends and statements as the Committee
may deem advisable to assure compliance with federal and state laws and
regulations.  No Option or Share Award shall be exercisable, no Share
Award shall be granted, no Ordinary Shares shall be issued, no certificate for
shares shall be delivered, and no payment shall be made under this Plan until
the Corporation has obtained such consent or approval as the Committee may deem
advisable from regulatory bodies having jurisdiction over such
matters.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    B.          Participant
Representations.  The Committee may require that a Participant,
as a condition to receipt or exercise of a particular award, execute and deliver
to the Corporation a written statement, in form satisfactory to the Committee,
in which the Participant represents and warrants that the shares are being
acquired for such person's own account, for investment only and not with a view
to the resale or distribution thereof.  The Participant shall, at the
request of the Committee, be required to represent and warrant in writing that
any subsequent resale or distribution of Ordinary Shares by the Participant
shall be made only pursuant to either (i) a registration statement on an
appropriate form under the Securities Act of 1933, which registration statement
has become effective and is current with regard to the shares being sold, or
(ii) a specific exemption from the registration requirements of the
Securities Act of 1933, but in claiming such exemption the Participant shall,
prior to any offer of sale or sale of such shares, obtain a prior favorable
written opinion of counsel, in form and substance satisfactory to counsel for
the Corporation, as to the application of such exemption thereto.

    

    
      
        	
                11.

              	
                General
      Provisions

              

      

    

     

    A.          Effect on Employment and
Service.  Neither the adoption of this Plan, its operation, nor
any documents describing or referring to this Plan (or any part thereof) shall
(i) confer upon any individual any right to continue in the employ or service of
the Corporation or an Affiliate, (ii) in any way affect any right and power of
the Corporation or an Affiliate to change an individual’s duties or terminate
the employment or service of any individual at any time with or without
assigning a reason therefor or (iii) except to the extent the Committee grants
an Option or Share Award to such individual, confer on any individual the right
to participate in the benefits of the Plan.

     

    B.          Use of Proceeds. The
proceeds received by the Corporation from the sale of Ordinary Shares pursuant
to this Plan shall be used for general corporate purposes.

     

    C.          Unfunded
Plan.  The Plan, insofar as it provides for grants, shall be
unfunded, and the Corporation shall not be required to segregate any assets that
may at any time be represented by grants under this Plan.  Any
liability of the Corporation to any person with respect to any grant under this
Plan shall be based solely upon any contractual obligations that may be created
pursuant to this Plan.  No such obligation of the Corporation shall be
deemed to be secured by any pledge of, or other encumbrance on, any property of
the Corporation.

     

    D.          Rules of
Construction.  Headings are given to the Sections of this Plan
solely as a convenience to facilitate reference.  The reference to any
statute, regulation, or other provision of law shall be construed to refer to
any amendment to or successor of such provision of law.

     

    E.          Choice of
Law.  The Plan and all Share Option Agreements and Share Award
Agreements entered into under the Plan shall be interpreted under the law of the
State of New York excluding (to the greatest extent permissible by law) any rule
of law that would cause the application of the laws of any jurisdiction other
than the State of New York.

     

    F.          Fractional
Shares.  The Corporation shall not be required to issue
fractional shares pursuant to the Plan.  The Committee may provide for
elimination of fractional shares or the settlement of such fraction shares in
cash.

     

    G.          Foreign Employees. In
order to facilitate the making of any grant or combination of grants under the
Plan, the Committee may provide for such special terms for Awards to
Participants who are foreign nationals, or who are employed by the Corporation
or any Affiliate outside of the United States, as the Committee may consider
necessary or appropriate to accommodate differences in local law, tax policy or
custom. Moreover, the Committee may approve such supplements to, or amendments,
restatements or alternative versions of, the Plan as it may consider necessary
or appropriate for such purposes without thereby affecting the terms of the
Plan, as then in effect, unless the Plan could have been amended to eliminate
such inconsistency without further approval by the shareholders of the
Corporation.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    H.          Compliance with Section 409A
and 457A of the Code. To the extent that an Award is intended to be
exempt from coverage by Section 409A of the Code or Section 457A of the Code,
the Committee may without the consent of the Participant, and without regard to
whether the amendment is adverse to the interests of the
Participant,  amend the terms of the Award as it deems appropriate to
provide for the exemption of such Award from such sections of the
Code.   To the extent that an Award is intended to be covered by
and comply with Section 409A of the Code, the Committee may without the consent
of the Participant, and without regard to whether the amendment is adverse to
the interests of the Participant, amend the terms of the Award as it deems
appropriate to comply with the rules of Section 409A of the Code.

     

    
      
        	
                12.

              	
                Amendment
      and Termination

              

      

    

     

    The Board
may amend or terminate this Plan from time to time; provided, however,
shareholder approval shall be required for any amendment that (i) increases the
aggregate number of Ordinary Shares that may be issued under the Plan, except as
contemplated by Section 5.A or 8.B, or (ii) shareholder approval is required by
the terms of any applicable law, regulation or rule, including the rules of any
market on which the Corporation shares are traded or exchanged on which the
Corporation shares are listed.  Except as specifically permitted by
the Plan, Share Option Agreement or Share Award Agreement or as required to
comply with applicable law, regulation or rule, no amendment shall, without a
Participant’s consent, adversely affect any rights of such Participant under any
Option or Share Award outstanding at the time such amendment is
made.  Any  amendment requiring shareholder approval shall
be approved by the shareholders of the Corporation within twelve (12) months of
the date such amendment is adopted by the Board.

    

    
      
        	
                13.

              	
                Effective
      Date of Plan

              

      

    

     

    The Plan
shall become effective as of November 16, 2010 upon adoption by the Board,
subject to approval within twelve (12) months by the shareholders holding a
simple majority of the votes of the shareholders entitled to vote and voting on
the proposal. . Unless and until the plan has been approved by the shareholders
of the Corporation, no Option may be exercised, and no Share Awards or Ordinary
Shares may be issued under the Plan.  In the event that the
shareholders of the Corporation shall not approve the Plan within such twelve
(12) month period, the Plan and any previously granted Option shall
terminate.

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    The
foregoing China Gerui Advanced Materials Group Limited 2010 Share Incentive Plan
was duly adopted and approved by the Board of Directors on the 16th day of
November 16, 2010.

     

    
      
        	 
      	
                CHINA
      GERUI ADVANCED MATERIALS GROUP LIMITED

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Mingwang Lu

              
	 
      	
                Name: 

              	
                Mingwang Lu

              
	 
      	
                Chairman
      and Chief Executive Officer

              
	 
      	 
      	 
      
	 
      	
                Date:

              	
                11/16/2010

              

      

    

    
      
         

      

      
        -11-

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