Document:

This
      Note
      is a Global Security within the meaning of the Indenture hereinafter referred
      to
      and is registered in the name of the Depository named below or a nominee of
      the
      Depository. This Note is not exchangeable for Notes registered in the name
      of a
      Person other than the Depository or its nominee except in the limited
      circumstances described herein and in the Indenture, and no transfer of this
      Note (other than a transfer of this Note as a whole by the Depository to a
      nominee of the Depository or by a nominee of the Depository to the Depository
      or
      another nominee of the Depository) may be registered except in the limited
      circumstances described herein.

    

    Unless
      this certificate is presented by an authorized representative of The Depository
      Trust Company, a New York corporation (the "Depository"), to the Company or
      its
      agent for registration of transfer, exchange, or payment, and any certificate
      issued is registered in the name of Cede & Co. or in such other name as is
      requested by an authorized representative of the Depository (and any payment
      is
      made to Cede & Co. or to such other entity as is requested by an authorized
      representative of the Depository), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
      FOR
      VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
      owner hereof, Cede & Co., has an interest herein.

    

    

    CITIGROUP
      INC.

    5.300%
      Notes due October 17, 2012

    
      	
              REGISTERED

            	
              REGISTERED

            

    

    

    CUSIP:
      172967 EL 1

    ISIN:
      US172967EL17

    Common
      Code: 032631843

    

    
      	
              No.
                R-______

            	
              $____________

            

    

    

    CITIGROUP
      INC., a Delaware corporation (the "Company", which term includes any successor
      Person under the Indenture), for value received, hereby promises to pay to
      Cede
& Co., or registered assigns, the principal sum of $____________ on October
      17, 2012 and
      to
      pay interest thereon from and including October 17, 2007 or from the most recent
      Interest Payment Date to which interest has been paid or duly provided for,
      semi-annually, on April 17 and October 17 of each year, commencing April 17,
      2008, at the rate of 5.300% per annum, until the principal hereof is paid or
      made available for payment. The interest so payable, and punctually paid or
      duly
      provided for, on any Interest Payment Date will, as provided in the Indenture,
      be paid to the Person in whose name this Note is registered at the close of
      business on the Record Date for such interest, which shall be the April 1 and
      October 1 (whether or not a Business Day) immediately preceding such Interest
      Payment Date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Any
      such
      interest not so punctually paid or duly provided for will forthwith cease to
      be
      payable to the holder on such Record Date and may either be paid to the Person
      in whose name this Note is registered at the close of business on a subsequent
      Record Date, such subsequent Record Date to be not less than five days prior
      to
      the date of payment of such defaulted interest, notice whereof shall be given
      to
      holders of Notes of this series not less than 15 days prior to such subsequent
      Record Date, or be paid at any time in any other lawful manner not inconsistent
      with the requirements of any securities exchange on which the Notes of this
      series may be listed, and upon such notice as may be required by such exchange,
      all as more fully provided in the Indenture.

    

    Interest
      hereon will be calculated on the basis of a 360-day year comprised of twelve
      30-day months.

    

    If
      either
      an Interest Payment Date or the Maturity of the Notes falls on a day that is
      not
      a Business Day, such Interest Payment Date or Maturity will be the next
      succeeding Business Day. If a date for payment of interest or principal on
      the
      Notes falls on a day that is not a business day in the place of payment, such
      payment will be made on the next succeeding business day in such place of
      payment as if made on the date the payment was due. No interest will accrue
      on
      any amounts payable for the period from and after the due date for payment
      of
      such principal or interest. 

    

    For
      these
      purposes, “Business Day” means any day which is a day on which commercial banks
      settle payments and are open for general business in The City of New
      York.

    

    Payment
      of the principal of and interest on this Note will be made at the office or
      agency of the Trustee maintained for that purpose in The City of New
      York.

    

    Reference
      is hereby made to the further provisions of this Note set forth on the reverse
      hereof, which further provisions shall for all purposes have the same effect
      as
      if set forth at this place.

    

    Unless
      the certificate of authentication hereon has been executed by the Trustee or
      by
      an authenticating agent on behalf of the Trustee by manual signature, this
      Note
      shall not be entitled to any benefit under the Indenture or be valid or
      obligatory for any purpose.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly executed
      under its corporate seal.

    

    Dated:
      October 17, 2007

    

    
      	
              CITIGROUP
                INC.

            
	 
	
              By:

            	 
	Title:	
               Chief
                Accounting Officer

            

    

    

    
      	
              ATTEST:

            
	 
	
              By:

            	 
	Title: 	
              Assistant
                Secretary

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    This
      is
      one of the Notes of the series issued under the within-mentioned
      Indenture.

    

    Dated:
      October
      17, 2007

    

    
      	
              THE
                BANK OF NEW YORK,

            
	
              as
                Trustee

            
	 
	
              By:

            	 
	
               

            	
              Name:

            
	
               

            	
              Title:

            
	 	 
	
              -or-

            	 
	 	 
	
              CITIBANK,
                N.A.,

            
	
              as
                Authenticating Agent

            
	 	 
	
              By:

            	 
	
               

            	
              Name:

            
	
               

            	
              Title:

            

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    This
      Note
      is one of a duly authorized issue of Securities of the Company (the "Notes"),
      issued and to be issued in one or more series under the Indenture, dated as
      of
      March 15, 1987 (as amended and supplemented to date, the "Indenture"), between
      the Company and The Bank of New York, as Trustee (the "Trustee", which term
      includes any successor trustee under the Indenture), to which Indenture and
      all
      indentures supplemental thereto reference is hereby made for a statement of
      the
      respective rights, limitations of rights, duties and immunities thereunder
      of
      the Company, the Trustee and the holders of the Notes and of the terms upon
      which the Notes are, and are to be, authenticated and delivered. This Note
      is
      one of the series designated on the face hereof, initially limited in aggregate
      principal to $3,000,000,000.

    

    If
      an
      event of default (as defined in the Indenture) with respect to Notes of this
      series shall occur and be continuing, the principal of the Notes of this series
      may be declared due and payable in the manner and with the effect provided
      in
      the Indenture.

    

    The
      Indenture contains provisions for defeasance at any time of the entire
      indebtedness of this Note upon compliance by the Company with certain conditions
      set forth in Sections 11.03 and 11.04 thereof, which provisions apply to this
      Note.

    

    The
      Indenture contains provisions permitting the Company and the Trustee, without
      the consent of the holders of the Securities, to establish, among other things,
      the form and terms of any series of Securities issuable thereunder by one or
      more supplemental indentures, and, with the consent of the holders of not less
      than 66 2/3% in aggregate principal amount of Securities at the time outstanding
      which are affected thereby, to modify the Indenture or any supplemental
      indenture or the rights of the holders of Securities of such series to be
      affected, provided that no such modification will (i) extend the fixed maturity
      of any Securities, reduce the rate or extend the time of payment of interest
      thereon, reduce the principal amount thereof or the premium, if any, thereon,
      reduce the amount of the principal of Original Issue Discount Securities payable
      on any date, change the currency in which Securities are payable, or impair
      the
      right to institute suit for the enforcement of any such payment on or after
      the
      maturity thereof, without the consent of the holder of each Security so
      affected, or (ii) reduce the aforesaid percentage of Securities of any series
      the consent of the holders of which is required for any such modification
      without the consent of the holders of all Securities of such series then
      outstanding, or (iii) modify, without the written consent of the Trustee, the
      rights, duties or immunities of the Trustee.

    

    No
      reference herein to the Indenture and no provision of this Note or of the
      Indenture shall alter or impair the obligation of the Company, which is absolute
      and unconditional, to pay the principal of and interest on this Note at the
      times, place and rate, and in the coin or currency, herein
      prescribed.

    

    This
      Note
      is a Global Security registered in the name of a nominee of the Depository.
      This
      Note is exchangeable for Notes registered in the name of a person other than
      the
      Depository or its nominee only in the limited circumstances hereinafter
      described. Unless and until it is exchanged in whole or in part for definitive
      Notes in certificated form, this Note may not be transferred except as a whole
      by the Depository to a nominee of the Depository or by a nominee of the
      Depository to the Depository or another nominee of the
      Depository.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    The
      Notes
      represented by this Global Security are exchangeable for definitive Notes in
      certificated form of like tenor as such Notes in denominations of $1,000 and
      whole multiples of $1,000 in excess thereof only if (i) the Depository
      notifies the Company that it is unwilling or unable to continue as Depository
      for the Notes or (ii) the Depository ceases to be a clearing agency registered
      under the Securities Exchange Act of 1934, as amended, or (iii) the Company
      in
      its sole discretion decides to allow the Notes to be exchanged for definitive
      Notes in registered form. Any Notes that are exchangeable pursuant to the
      preceding sentence are exchangeable for certificated Notes issuable in
      authorized denominations and registered in such names as the Depository shall
      direct. As provided in the Indenture and subject to certain limitations therein
      set forth, the transfer of definitive Notes in certificated form is registrable
      in the register maintained by the Company in The City of New York for such
      purpose, upon surrender of the definitive Note for registration of transfer
      at
      the office or agency of the registrar, duly endorsed by, or accompanied by
      a
      written instrument of transfer in form satisfactory to the Company and the
      registrar duly executed by, the holder thereof or his attorney duly authorized
      in writing, and thereupon one or more new Notes of this series and of like
      tenor, of authorized denominations and for the same aggregate principal amount,
      will be issued to the designated transferee or transferees. Subject to the
      foregoing, this Note is not exchangeable, except for a Global Security or Global
      Securities of this issue of the same principal amount to be registered in the
      name of the Depository or its nominee.

    

    No
      service charge shall be made for any such registration of transfer or exchange,
      but the Company may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith.

    

    Prior
      to
      due presentment of this Note for registration of transfer, the Company, the
      Trustee and any agent of the Company or the Trustee may treat the Person in
      whose name this Note is registered as the owner hereof for all purposes, whether
      or not this Note be overdue, and neither the Company, the Trustee nor any such
      agent shall be affected by notice to the contrary.

    

    The
      Company will pay additional amounts ("Additional Amounts") to the beneficial
      owner of any Note that is a non-United States person in order to ensure that
      every net payment on such Note will not be less, due to payment of U.S.
      withholding tax, than the amount then due and payable. For this purpose, a
      "net
      payment" on a Note means a payment by the Company or a paying agent, including
      payment of principal and interest, after deduction for any present or future
      tax, assessment or other governmental charge of the United States. These
      Additional Amounts will constitute additional interest on the Note.

    

    The
      Company will not be required to pay Additional Amounts, however, in any of
      the
      circumstances described in items (1) through (13) below.

    

    
      	 	
              (1)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is imposed
                or
                withheld solely by reason of the beneficial
                owner:

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	 	 	
              (a)

            	
              having
                a relationship with the United States as a citizen, resident or
                otherwise;

            

    

    
      	 	 	
              (b)

            	
              having
                had such a relationship in the past
                or

            

    

    
      	 	 	
              (c)

            	
              being
                considered as having had such a
                relationship.

            

    

    

    
      	 	
              (2)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is imposed
                or
                withheld solely by reason of the beneficial
                owner:

            

    

    

    
      	 	
               

            	
              (a)

            	
              being
                treated as present in or engaged in a trade or business in the United
                States;

            

    

    
      	 	
               

            	
              (b)

            	
              being
                treated as having been present in or engaged in a trade or business
                in the
                United States in the past or

            

    

    
      	 	
               

            	
              (c)

            	
              having
                or having had a permanent establishment in the United
                States.

            

    

    

    
      	 	
              (3)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is imposed
                or
                withheld in whole or in part by reason of the beneficial owner being
                or
                having been any of the following (as such terms are defined in the
                Internal Revenue Code of 1986, as
                amended):

            

    

    

    
      	 	
               

            	
              (a)

            	
              personal
                holding company;

            

    

    
      	 	
               

            	
              (b)

            	
              foreign
                personal holding company;

            

    

    
      	 	
               

            	
              (c)

            	
              foreign
                private foundation or other foreign tax-exempt
                organization;

            

    

    
      	 	
               

            	
              (d)

            	
              passive
                foreign investment company;

            

    

    
      	 	
               

            	
              (e)

            	
              controlled
                foreign corporation or

            

    

    
      	 	
               

            	
              (f)

            	
              corporation
                which has accumulated earnings to avoid United States federal income
                tax.

            

    

    

    
      	 	
              (4)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is imposed
                or
                withheld solely by reason of the beneficial owner owning or having
                owned,
                actually or constructively, 10 percent or more of the total combined
                voting power of all classes of stock of the Company entitled to vote
                or by
                reason of the beneficial owner being a bank that has invested in
                a Note as
                an extension of credit in the ordinary course of its trade or
                business.

            

    

    

    For
      purposes of items (1) through (4) above, "beneficial owner" means a
      fiduciary, settlor, beneficiary, member or shareholder of the holder if the
      holder is an estate, trust, partnership, limited liability company, corporation
      or other entity, or a person holding a power over an estate or trust
      administered by a fiduciary holder.

    

    
      	 	
              (5)

            	
              Additional
                Amounts will not be payable to any beneficial owner of a Note that
                is
                a:

            

    

    

    
      	 	
               

            	
              (a)

            	
              fiduciary;

            

    

    
      	 	
               

            	
              (b)

            	
              partnership;

            

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	 	
               

            	
              (c)

            	
              limited
                liability company or

            

    

    
      	 	
               

            	
              (d)

            	
              other
                fiscally transparent entity

            

    

    

    
      	 	 	
              or
                that is not the sole beneficial owner of the Note, or any portion
                of the
                Note. However, this exception to the obligation to pay Additional
                Amounts
                will only apply to the extent that a beneficiary or settlor in relation
                to
                the fiduciary, or a beneficial owner or member of the partnership,
                limited
                liability company or other fiscally transparent entity, would not
                have
                been entitled to the payment of an Additional Amount had the beneficiary,
                settlor, beneficial owner or member received directly its beneficial
                or
                distributive share of the payment.

            

    

    

    
      	 	
              (6)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is imposed
                or
                withheld solely by reason of the failure of the beneficial owner
                or any
                other person to comply with applicable certification, identification,
                documentation or other information reporting requirements. This exception
                to the obligation to pay Additional Amounts will only apply if compliance
                with such reporting requirements is required by statute or regulation
                of
                the United States or by an applicable income tax treaty to which
                the
                United States is a party as a precondition to exemption from such
                tax,
                assessment or other governmental
                charge.

            

    

    

    
      	 	
              (7)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is collected
                or
                imposed by any method other than by withholding from a payment on
                a Note
                by the Company or a paying agent.

            

    

    

    
      	 	
              (8)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is imposed
                or
                withheld by reason of a change in law, regulation, or administrative
                or
                judicial interpretation that becomes effective more than 15 days
                after the
                payment becomes due or is duly provided for, whichever occurs
                later.

            

    

    

    
      	 	
              (9)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is imposed
                or
                withheld by reason of the presentation by the beneficial owner of
                a Note
                for payment more than 30 days after the date on which such payment
                becomes due or is duly provided for, whichever occurs
                later.

            

    

    

    
      	 	
              (10)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any:

            

    

    

    
      	 	
               

            	
              (a)

            	
              estate
                tax;

            

    

    
      	 	
               

            	
              (b)

            	
              inheritance
                tax;

            

    

    
      	 	
               

            	
              (c)

            	
              gift
                tax;

            

    

    
      	 	
               

            	
              (d)

            	
              sales
                tax;

            

    

    
      	 	
               

            	
              (e)

            	
              excise
                tax;

            

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	 	
               

            	
              (f)

            	
              transfer
                tax;

            

    

    
      	 	
               

            	
              (g)

            	
              wealth
                tax;

            

    

    
      	 	
               

            	
              (h)

            	
              personal
                property tax or

            

    

    
      	 	
               

            	
              (i)

            	
              any
                similar tax, assessment, withholding, deduction or other governmental
                charge.

            

    

    

    
      	 	
              (11)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment, or other governmental charge required to
                be
                withheld by any paying agent from a payment of principal or interest
                on a
                Note if such payment can be made without such withholding by any
                other
                paying agent.

            

    

    

    
      	 	
              (12)

            	
              Additional
                amounts will not be payable if a payment on a Note is reduced as
                a result
                of any tax, assessment or other governmental charge that is required
                to be
                made pursuant to any European Union directive on the taxation of
                savings
                income or any law implementing or complying with, or introduced to
                conform
                to, any such directive.

            

    

    

    
      	 	
              (13)

            	
              Additional
                Amounts will not be payable if a payment on a Note is reduced as
                a result
                of any combination of items (1) through (12)
                above.

            

    

    

    Except
      as
      specifically provided herein, the Company will not be required to make any
      payment of any tax, assessment or other governmental charge imposed by any
      government or a political subdivision or taxing authority of such
      government.

    

    As
      used
      in this Note, "United States person" means:

    

    
      	 	
              (a)

            	
              any
                individual who is a citizen or resident of the United
                States;

            

    

    
      	 	
              (b)

            	
              any
                corporation, partnership or other entity created or organized in
                or under
                the laws of the United States;

            

    

    
      	 	
              (c)

            	
              any
                estate if the income of such estate falls within the federal income
                tax
                jurisdiction of the United States regardless of the source of such
                income
                and

            

    

    
      	 	
              (d)

            	
              any
                trust if a United States court is able to exercise primary supervision
                over its administration and one or more United States persons have
                the
                authority to control all of the substantial decisions of the
                trust.

            

    

    

    Additionally,
      "non-United States person" means a person who is not a United States person,
      and
      "United States" means the states of the United States of America and the
      District of Columbia, but excluding its territories and its
      possessions.

    

    Except
      as
      provided below, the Notes may not be redeemed prior to maturity.

     

    (1) The
      Company may, at its option, redeem the Notes if:

    

    
      	 	 	
              (a)

            	
              the
                Company becomes or will become obligated to pay Additional Amounts
                as
                described above;

            

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	 	 	
              (b)

            	
              the
                obligation to pay Additional Amounts arises as a result of any change
                in
                the laws, regulations or rulings of the United States, or an official
                position regarding the application or interpretation of such laws,
                regulations or rulings, which change is announced or becomes effective
                on
                or after October 10, 2007 and

            

    

    
      	 	 	
              (c)

            	
              the
                Company determines, in its business judgment, that the obligation
                to pay
                such Additional Amounts cannot be avoided by the use of reasonable
                measures available to it, other than substituting the obligor under
                the
                Notes or taking any action that would entail a material cost to the
                Company.

            

    

    

    
      	 	
              (2)

            	
              The
                Company may also redeem the Notes, at its option,
                if:

            

    

    

    
      	 	 	
              (a)

            	
              any
                act is taken by a taxing authority of the United States on or after
                October 10, 2007, whether or not such act is taken in relation to
                the
                Company or any affiliate, that results in a substantial probability
                that
                the Company will or may be required to pay Additional Amounts as
                described
                above;

            

    

    
      	 	 	
              (b)

            	
              the
                Company determines, in its business judgment, that the obligation
                to pay
                such Additional Amounts cannot be avoided by the use of reasonable
                measures available to it, other than substituting the obligor under
                the
                Notes or taking any action that would entail a material cost to the
                Company and

            

    

    
      	 	 	
              (c)

            	
              the
                Company receives an opinion of independent counsel to the effect
                that an
                act taken by a taxing authority of the United States results in a
                substantial probability that the Company will or may be required
                to pay
                the Additional Amounts described under above, and delivers to the
                Trustee
                a certificate, signed by a duly authorized officer, stating that
                based on
                such opinion the Company is entitled to redeem the Notes pursuant
                to their
                terms.

            

    

    

    Any
      redemption of the Notes as set forth in clauses (1) or (2) above shall be in
      whole, and not in part, and will be made at a redemption price equal to 100%
      of
      the principal amount of the Notes Outstanding plus accrued interest thereon
      to
      the date of redemption. Holders shall be given not less than 30 days nor more
      than 60 days prior notice by the Trustee of the date fixed for such
      redemption.

    

    All
      terms
      used in this Note which are defined in the Indenture shall have the meanings
      assigned to them in the Indenture. The Notes are governed by the laws of the
      State of New York.

    
      
        
        

      

      
        10Exhibit
      10.13

    SECOND
      AMENDED

    ENGAGEMENT
      AGREEMENT

    

    AGREEMENT
      effective as of the 1st
      day of
      May, 2007 between Capital Gold Corporation, a Delaware Corporation having an
      office at 76 Beaver Street, 26th
      Floor,
      New York, NY 10005 (hereinafter referred to as the “CORPORATION”), and
      Christopher M. Chipman, an individual residing at 4014 Redwing Lane, Audubon,
      PA
      19407 (hereinafter referred to as “CHIPMAN”).

    

    This
      agreement (the “Agreement”) amends, supersedes and replaces the engagement
      agreement by and between the CORPORATION and CHIPMAN originally dated March
      1,
      2006 as subsequently amended and superseded on September 1, 2006.

    

    IN
      CONSIDERATION OF the
      premises and mutual covenants and conditions herein contained, the CORPORATION
      and CHIPMAN hereby agree as follows:

    

    1. Engagement.
      The
      CORPORATION agrees to engage CHIPMAN, and CHIPMAN agrees to serve the
      CORPORATION as the Chief Financial Officer for the CORPORATION upon the terms
      and conditions hereafter set forth. The duties of CHIPMAN shall be consistent
      with his position as Chief Financial Officer, and shall be those duties
      customarily performed by an executive of his experience.

    

    2. Term.
      This
      Agreement becomes effective upon execution by all parties and shall expire
      on
      August 31, 2009 (the Engagement Period”). Subject to the provisions of Article 7
      herein, the Engagement Period shall automatically renew for successive one-year
      periods unless either party provides the other party with written notice of
      its
      intent not to renew at least thirty (30) days prior to the expiration of the
      then current Engagement Period.

    

    3. Compensation
      And Other Benefits. 

    

    (a) Base
      Fee.
      For his
      services to the CORPORATION during the TERM, the CORPORATION shall pay CHIPMAN
      a
      fee at the annual rate of One Hundred Seventy-Five Thousand ($175,000) Dollars
      (The “Annual Fee”) payable in equal monthly installments. 

    

      (b) Bonus.
        CHIPMAN
        shall be eligible for any annual incentive bonus opportunity offered by the
        CORPORATION to executive officers of the CORPORATION. In the event of any
        conflict between this Agreement and any incentive bonus plan adopted by the
        CORPORATION for its officers and employees, this Agreement shall control.
        The
        amount of this bonus, as well as the criteria necessary to earn a bonus,
        may be
        changed at any time by the CORPORATION and shall be within the sole discretion
        of the CORPORATION. All bonuses paid pursuant to this Agreement will be subject
        to applicable withholdings and deductions and will be paid no earlier than
        fifteen (15) days and no later than ninety (90) days after the CORPORATION’s
        fiscal year end for which the bonus is earned. If CHIPMAN’s engagement
        terminates, voluntarily or involuntarily, prior to the last day of the fiscal
        year for which the bonus applies, CHIPMAN acknowledges that he is not entitled
        to any bonus not yet paid at the time of the termination because any such
        unpaid
        bonus will not be earned, vested, due, or owing. CHIPMAN hereby expressly
        forfeits and waives any such unpaid bonus.

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c) As
      an
      independent contractor, CHIPMAN will not participate in the CORPORATION’S Group
      Medical program or 401K pension program. 

    

    4. Independent
      Contractor.
      Nothing
      herein shall be construed to create an employer-employee relationship between
      the CORPORATION and CHIPMAN. CHIPMAN is an independent contractor and not an
      employee of the CORPORATION or any of its subsidiaries or affiliates. The
      consideration set forth in Article 3 shall be the sole consideration due CHIPMAN
      for the services rendered hereunder. It is understood that the CORPORATION
      will
      not withhold any amounts for payment of taxes from the compensation of CHIPMAN
      hereunder. CHIPMAN will not represent to be or hold himself out as an employee
      of the CORPORATION.

    

    5. Services.
      CHIPMAN
      agrees to serve the CORPORATION faithfully and to the best of his ability,
      and
      shall devote eighty-five percent (85%) of his business time, attention and
      energies to the business of the CORPORATION during the regular business hours
      and at any other time during the week as reasonably requested by the CORPORATION
      and/or required by the demands of his position. CHIPMAN agrees to spend a
      minimum of two days per month in the New York offices of the CORPORATION. All
      services required to be rendered by CHIPMAN may be rendered for the benefit
      of
      any of the CORPORATION’S affiliates or subsidiaries, but no liability shall
      attach to such affiliate or subsidiary for the payment of any compensation
      hereunder.

    

    6. Expenses.
      During
      the period of his engagement, CHIPMAN will be reimbursed for his reasonable
      and
      necessary expenses incurred by him pursuant to his engagement hereunder, such
      expenses to include necessary travel and related costs incurred on behalf of
      the
      CORPORATION and in commuting to and from the CORPORATION’s offices in New York
      as well as lodging expenses while in New York, NY, if necessary, upon submission
      of appropriate receipts or vouchers therefore.

    

    7.
       Termination.  

    

    (a) Termination
      for Cause.
      The
      CORPORATION may discharge CHIPMAN for cause at any time as provided herein.
      For
      purposes hereof, “cause” shall mean the willful engaging by CHIPMAN in illegal
      conduct or gross misconduct which is demonstrably and materially injurious
      to
      the CORPORATION. For purposes of this Agreement, no act, or failure to act,
      on
      CHIPMAN’s part shall be deemed "willful" unless done, or omitted to be done, by
      CHIPMAN not in good faith and without reasonable belief that CHIPMAN's action
      or
      omission was in the best interest of the CORPORATION. Notwithstanding the
      foregoing, CHIPMAN shall not be deemed to have been terminated for Cause unless
      and until the CORPORATION delivers to CHIPMAN a copy of a resolution duly
      adopted by the affirmative vote of not less than three-quarters of the entire
      membership of the Board at a meeting of the Board called and held for such
      purpose (after reasonable notice to CHIPMAN and an opportunity for CHIPMAN,
      together with counsel, to be heard before the Board) finding that, in the good
      faith opinion of the Board, CHIPMAN was guilty of conduct set forth above and
      specifying the particulars thereof in detail.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (b) Without
      Cause.
      This
      Agreement may be terminated by the CORPORATION without Cause at any time, such
      termination to be effective thirty (30) days after CHIPMAN’s receipt of written
      notice from the CORPORATION.

    

    (c) Death
      or Disability.
      This
      Agreement shall terminate upon the death or disability of CHIPMAN. For purposes
      of this subsection (c), “disability” shall mean the inability of 

    CHIPMAN
      effectively to substantially provide the services hereunder by reason of any
      

    medically
      determinable physical or mental impairment which can be expected to result
      in

    death
      or
      which has lasted or can be expected to last for a continuous period of not
      less
      than 

    twelve
      (12) months.

    

    (d) Resignation.
      CHIPMAN
      shall have the right to terminate this Agreement upon not less than sixty (60)
      days prior written notice of termination.

    

    (e) Change
      of Control.
      The
      Agreement can be terminated Upon a Change of Control as defined in the Agreement
      Regarding Change In Control (“Change In Control Agreement”) attached hereto as
      Exhibit A.

    

    8. Effect
      of Termination.

    

    (a) In
      the
      event that this Agreement is terminated for "cause" pursuant 

    to
      subsection 7(a), the CORPORATION shall pay CHIPMAN, at the time of such
      termination, only the fees due and payable to him through the date of the
      termination of this Agreement.

    

    (b) In
      the
      event that this Agreement is terminated without cause pursuant 

    to
      subsection 7(b), the CORPORATION shall pay CHIPMAN a cash termination payment
      equal to CHIPMAN’s Annual Fee in effect upon the date of termination, payable in
      equal monthly installments beginning in the month following CHIPMAN’s
      termination. Such termination payments shall cease immediately in the event
      that
      CHIPMAN violates any provision of Articles 9 and/or 10 herein. In addition,
      the
      CORPORATION shall pay CHIPMAN any reasonable and necessary business expenses
      incurred by CHIPMAN in connection with his duties, all to the date of
      termination and payable in a lump sum, less any applicable deductions and
      withholdings, as soon as administratively practicable following CHIPMAN’s
      termination.

    

    (c) In
      the
      event this Agreement is terminated at his election pursuant to subsection 7(d)
      or due to CHIPMAN’s death or disability pursuant to 7(c), the CORPORATION shall
      pay to CHIPMAN, at the time of such termination, the fees otherwise due and
      payable to him through the last day of the month in which such termination
      occurs.

    

    (d) In
      the
      event of a Termination Upon a Change of Control as defined in the Change In
      Control Agreement, the CORPORATION’s obligation to CHIPMAN shall be as set forth
      in the Change In Control Agreement.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    9. Trade
      Secrets And Non-Disclosure.
      CHIPMAN
      hereby acknowledges that certain trade secrets of the CORPORATION are valuable,
      special and unique assets of the CORPORATION’S business. Such trade secrets
      include but are not limited to its customer lists and the sources of its
      materials and products. CHIPMAN hereby covenants that he will not, during or
      after the term of his engagement, disclose any of the foregoing secrets or
      any
      part thereof to any firm, person or corporation or any entity for any reason
      or
      purpose whatsoever. In the event of a breach or threatened breach by CHIPMAN
      of
      the provisions of this Paragraph, the CORPORATION shall be entitled to proceed
      in any court for an injunction restraining CHIPMAN from disclosing, in whole
      or
      in part, any of the aforesaid trade secrets, or from rendering such service
      to
      any person, firm, corporation, association or any entity to whom such trade
      secrets, in whole or in part, have been disclosed, or are threatened to be
      disclosed. Nothing herein contained shall be construed as prohibiting the
      CORPORATION from pursuing any other remedies for such breach or threatened
      breach, including the recovery of damages from CHIPMAN and/or from proceeding
      pursuant to the arbitration provisions of this Agreement.

     

    10. Non-Compete.
      Without
      the prior written approval of the CORPORATION’S Chief Executive Officer or
      President, Chipman shall not, directly or indirectly, during the term of this
      agreement and until the end of twelve (12) months after termination:

     

    (a) Engage
      in
      a “Competing Business’’ in the “Territory”, as those terms are defined below.
“Competing Business” shall mean any business that mines or produces minerals
      which is competitive with the CORPORATION’S or any of its Affiliates, as
      conducted or under development at any time during the term of this agreement
      “Territory” shall mean anywhere in Mexico. 

     

    (b) Make
      any
      public statement or perform or do any other act prejudicial or injurious to
      the
      reputation or goodwill of the CORPORATION or any of its Affiliates or otherwise
      interfere with the CORPORATION’S business or that of any of its
      Affiliates.

     

    11. Notices.
      Any
      notice or other communication pursuant to this Agreement shall be in writing
      and
      shall be sent by telecopy or by certified or registered mail addressed to the
      respective parties as follows:

    

      
        	 	
                (i)

              	
                If
                  to the CORPORATION, to:

              

      

      

      Capital
        Gold Corporation

      76
        Beaver
        Street, 26th
        Floor

      New
        York,
        NY 10005

      Tel.
        No.:
        (212) 344-5158

      Fax
        No..:
        (212) 344-4537

      Attention:
        VP of Corporate Development

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

      
        	 	
                (ii)

              	
                If
                  to CHIPMAN, to:

              

      

      

      Christopher
        M. Chipman

      4014
        Redwing Lane

      Audubon,
        PA 19407

      Tel.
        No.:
        (610) 631-2263

      Fax
        No.:
        (610) 631-2831

    

     

    or
      to
      such other address as the parties shall have designated by notice to the other
      parties given in accordance with this section. Any notice or other communication
      shall be deemed to have been duly given if personally delivered or mailed via
      registered or certified mail, postage prepaid, return receipt requested, or,
      if
      sent by telecopy, when confirmed.

    

    12. Modification.
      No
      modification or waiver of this Agreement or any provision hereof shall be
      binding upon the party against whom enforcement of such modification or waiver
      is sought unless it is made in writing and signed by or on behalf of both
      parties hereto.

    

    13. Miscellaneous.
      

     

    (a) This
      Agreement shall be subject to and construed in accordance with the laws of
      the
      State of New York.

     

    (b) The
      waiver by either party of a breach of any provision of this

    Agreement
      by the other party shall not operate and be construed as a waiver or a
      continuing waiver by that party of the same or any subsequent breach of any
      provision of this Agreement by the other party.

    

    (c) If
      any
      provisions of this Agreement or the application thereof to any

    person
      or
      circumstance shall be determined by any court of competent jurisdiction to
      be
      invalid or unenforceable to any extent, the remainder hereof, or the application
      of such provision to persons or circumstances other than those as to which
      it is
      so determined to be invalid or unenforceable, shall not be affected thereby,
      and
      each provision hereof shall be valid and shall be enforced to the fullest extent
      permitted by law.

     

                    
      (d) This
      Agreement shall be binding on and inure to the benefit of the 

    
      parties
        hereto and their respective heirs, executors and administrators, successors
        and

      assigns.

      
                
          (e) This
          Agreement shall not be assignable in whole or in part by
          either

      

      party,
        except that the CORPORATION may assign this Agreement to and it shall be
        binding
        upon any subsidiary or affiliate of the CORPORATION or any person, firm or
        corporation with which the CORPORATION may be merged or consolidated or which
        may acquire all or substantially all of the assets of the
        CORPORATION.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    IN WITNESS
      WHEREOF, this Agreement has been signed by the parties hereto as of the date
      first above written.

     

    CAPITAL
      GOLD CORPORATION

     

    
      	
              By: 

            	s/Gifford Dieterle   
	 	Gifford Dieterle,
              CEO 

    

     

    
      	By: 	s/ Christopher M. Chipman   
	 	Christopher M. Chipman,
              CFO 

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    AGREEMENT
      REGARDING

    CHANGE
      IN CONTROL

    

    THIS
      AGREEMENT (“Agreement”), is made and entered into effective as of the
      1st
      day of
      May, 2007 (the “Effective Date”) by and between Capital Gold Corporation (the
“Company”) and Christopher M. Chipman (the “Executive”) 

    

    WITNESSETH
      THAT:

    

    WHEREAS,
      the Company considers it essential to the best interests of its stockholders
      to
      foster the continuous engagement of key management personnel, and the Board
      of
      Directors of the Company (the “Board”) recognizes that, as is the case with many
      publicly held corporations, a change in control might occur and that such
      possibility, and the uncertainty and questions which it may raise among
      management, may result in the departure or distraction of management personnel
      to the detriment of the Company and its stockholders; and

    

    WHEREAS,
      the Board has determined that appropriate steps should be taken to reinforce
      and
      encourage the continued attention and dedication of members of the Company’s
      management, including the Executive, to their engagement without distraction
      in
      the face of potentially disturbing circumstances arising from the possibility
      of
      a change in control of the Company;

    

    NOW,
      THEREFORE, to induce the Executive to remain engaged by the Company and in
      consideration of the premises and mutual covenants set forth herein, IT IS
      HEREBY AGREED by and between the parties as follows:

    

    1. AGREEMENT
      TERM. The initial “Agreement Term” shall begin on the Effective Date and shall
      continue through August 31, 2009. As of August 31, 2009, and as of each August
      31 thereafter, the Agreement Term shall extend automatically to the next
      anniversary thereof unless the Company gives notice to the Executive prior
      to
      the date of such extension that the Agreement Term will not be extended.
      Notwithstanding the foregoing, if a Change in Control (as defined in Section
      7
      below), occurs during the Agreement Term, the Agreement Term shall continue
      through and terminate on the first anniversary of the date on which the Change
      in Control occurs.

    

    2.
       ENTITLEMENT
      TO CHANGE IN CONTROL BENEFITS. The Executive shall be entitled to the Change
      in
      Control Benefits described in Section 3 hereof if the Executive’s engagement by
      the Company is terminated during the Agreement Term but after a Change in
      Control (i) by the Company for any reason other than Permanent Disability or
      Cause, (ii) by the Executive for Good Reason or (iii) by the Executive for
      any
      reason during the 30-day period commencing on the first date which is six months
      after the date of the Change in Control. For purposes of this
      Agreement:

     

    
      
         

      

      
        A
          - 1

        
          

        

      

      
         

      

    

     

    (a) A
      termination of the Executive’s engagement shall be treated as a termination by
      reason of “Permanent Disability” only if, due to a mental or physical
      disability, the Executive is absent from the performance of services for the
      Company for a period of at least twelve consecutive months and fails to return
      to the performance of services within 30 days after receipt of a written demand
      by the Company to do so.

    

    (b) The
      term
“Cause” shall mean the willful engaging by the Executive in illegal conduct or
      gross misconduct which is demonstrably and materially injurious to the Company.
      For purposes of this Agreement, no act, or failure to act, on the Executive’s
      part shall be deemed “willful” unless done, or omitted to be done, by the
      Executive not in good faith and without reasonable belief that the Executive’s
      action or omission was in the best interest of the Company. Notwithstanding
      the
      foregoing, the Executive shall not be deemed to have been terminated for Cause
      unless and until the Company delivers to the Executive a copy of a resolution
      duly adopted by the affirmative vote of not less than three-quarters of the
      entire membership of the Board at a meeting of the Board called and held for
      such purpose (after reasonable notice to the Executive and an opportunity for
      the Executive, together with counsel, to be heard before the Board) finding
      that, in the good faith opinion of the Board, the Executive was guilty of
      conduct set forth above and specifying the particulars thereof in
      detail.

    

    (c) The
      term
“Good Reason” shall mean the occurrence of any of the following circumstances
      without the Executive’s express written consent: 

    

    (i)
      a
      significant adverse change in the nature, scope or status of the Executive’s
      position, authorities or services from those in effect immediately prior to
      the
      Change in Control, including, without limitation, if the Executive was,
      immediately prior to the Change in Control, an executive officer of a public
      company, the Executive ceasing to be an executive officer of a public
      company;

    

    (ii)
      the
      failure by the Company to pay the Executive any portion of the Executive’s
      current compensation, or to pay the Executive any portion of any installment
      of
      deferred compensation under any deferred compensation program of the Company,
      within seven days of the date such compensation is due; 

    

    (iii)
      a
      reduction in the Executive’s annual base compensation (or a material change in
      the frequency of payment) as in effect immediately prior to the Change in
      Control as the same may be increased from time to time;

    

    (iv) the
      failure by the Company to award the Executive an annual bonus in any year which
      is at least equal to the annual bonus awarded to the Executive for the year
      immediately preceding the year of the Change in Control;

    

    (v) the
      failure by the Company to award the Executive equity-based incentive
      compensation (such as stock options, shares of restricted stock, or other
      equity-based compensation) on a periodic basis consistent with the Company’s
      practices with respect to timing, value and terms prior to the Change in
      Control;

     

    
      
         

      

      
        A
          - 2

        
          

        

      

      
         

      

    

     

    (vi) the
      failure of the Company to award the Executive incentive compensation of any
      nature based on attained milestones when such milestones are attained.

    

    (vii) the
      failure of the Company to obtain a satisfactory agreement from any successor
      to
      the Company to assume and agree to perform this Agreement as contemplated by
      Section 14.

    

    For
      purposes of any determination regarding the existence of Good Reason, any good
      faith determination by the Executive that Good Reason exists shall be
      conclusive.

    

    3. 
      CHANGE
      IN CONTROL BENEFITS. In the event of a termination of engagement entitling
      the
      Executive to benefits in accordance with Section 2, the Executive shall receive
      the following:

    

    (a) The
      Executive shall be entitled to a lump sum payment in cash no later than twenty
      business days after the Executive’s date of termination equal to the sum
      of:

    

    (i) an
      amount
      equal to three times the Executive’s base fee in effect on the date of the
      Change in Control or, or if greater, as in effect immediately prior to the
      date
      of termination; plus

    

    (ii) an
      amount
      equal to three times the Executive’s bonus award for the year immediately
      preceding the year of the Change in Control. 

    

    The
      amount payable under this paragraph (a) shall be inclusive of the amounts,
      if
      any, to which the Executive would otherwise be entitled or by law and shall
      be
      in addition to (and not inclusive of) any amount payable under any written
      agreement(s) directly between the Executive and the Company or any of its
      subsidiaries. 

    

    (b) The
      exercise price of all of the Company options owned by the Executive shall
      decrease to $0.01 per share.

    

    (c) The
      Company shall provide the Executive with outplacement services and tax and
      financial counseling suitable to the Executive’s position through the first
      anniversary of the date of the Executive’s termination of engagement, or, if
      earlier, the date on which the Executive becomes employed by another
      employer.

    

    4. MITIGATION.
      The Executive shall not be required to mitigate the amount of any payment
      provided for in this Agreement by seeking other engagement or otherwise. The
      Company shall not be entitled to set off against the amounts payable to the
      Executive under this Agreement any amounts owed to the Company by the Executive,
      any amounts earned by the Executive in other engagement after the Executive’s
      termination of engagement with the Company, or any amounts which might have
      been
      earned by the Executive in other engagement had the Executive sought such other
      engagement.

     

    
      
         

      

      
        A
          - 3

        
          

        

      

      
         

      

    

     

    5. MAKE-WHOLE
      PAYMENTS. If any payment or benefit to which the Executive (or any person on
      account of the Executive) is entitled, whether under this Agreement or
      otherwise, in connection with a Change in Control or the Executive’s termination
      of engagement (a “Payment”) constitutes a “parachute payment” within the meaning
      of section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
      and as a result thereof the Executive is subject to a tax under section 4999
      of
      the Code, or any successor thereto, (an “Excise Tax”), the Company shall pay to
      the Executive an additional amount (the “Make-Whole Amount”) which is intended
      to make the Executive whole for such Excise Tax. The Make-Whole Amount shall
      be
      equal to (i) the amount of the Excise Tax, plus (ii) the aggregate amount of
      any
      interest, penalties, fines or additions to any tax which are imposed in
      connection with the imposition of such Excise Tax, plus (iii) all income, excise
      and other applicable taxes imposed on the Executive under the laws of any
      Federal, state or local government or taxing authority by reason of the payments
      required under clauses (i) and (ii) and this clause (iii). 

    

    (a) For
      purposes of determining the Make-Whole Amount, the Executive shall be deemed
      to
      be taxed at the highest marginal rate under all applicable local, state, federal
      and foreign income tax laws for the year in which the Make-Whole Amount is
      paid.
      The Make-Whole Amount payable with respect to an Excise Tax shall be paid by
      the
      Company coincident with the Payment with respect to which such Excise Tax
      relates.

    

    (b)
       All
      calculations under this Section 5 shall be made initially by the Company and
      the
      Company shall provide prompt written notice thereof to the Executive to enable
      the Executive to timely file all applicable tax returns. Upon request of the
      Executive, the Company shall provide the Executive with sufficient tax and
      compensation data to enable the Executive or the Executive’s tax advisor to
      independently make the calculations described in subparagraph (a) above and
      the
      Company shall reimburse the Executive for reasonable fees and expenses incurred
      for any such verification.

    

    (c) If
      the
      Executive gives written notice to the Company of any objection to the results
      of
      the Company’s calculations within 60 days of the Executive’s receipt of written
      notice thereof, the dispute shall be referred for determination to independent
      tax counsel selected by the Company and reasonably acceptable to the Executive
      (“Tax Counsel”). The Company shall pay all fees and expenses of such Tax
      Counsel. Pending such determination by Tax Counsel, the Company shall pay the
      Executive the Make-Whole Amount as determined by it in good faith. The Company
      shall pay the Executive any additional amount determined by Tax Counsel to
      be
      due under this Section 5 (together with interest thereon at a rate equal to
      120%
      of the Federal short-term rate determined under section 1274(d) of the Code)
      promptly after such determination.

    

    (d) The
      determination by Tax Counsel shall be conclusive and binding upon all parties
      unless the Internal Revenue Service, a court of competent jurisdiction, or
      such
      other duly empowered governmental body or agency (a “Tax Authority”) determines
      that the Executive owes a greater or lesser amount of Excise Tax with respect
      to
      any Payment than the amount determined by Tax Counsel. 

     

    
      
         

      

      
        A
          - 4

        
          

        

      

      
         

      

    

     

    (e) If
      a
      Taxing Authority makes a claim against the Executive which, if successful,
      would
      require the Company to make a payment under this Section 5, the Executive agrees
      to contest the claim with counsel reasonably satisfactory to the Company, on
      request of the Company subject to the following conditions:

    

    (i)
      The
      Executive shall notify the Company of any such claim within 10 days of becoming
      aware thereof. In the event that the Company desires the claim to be contested,
      it shall promptly (but in no event more than 30 days after the notice from
      the
      Executive or such shorter time as the Taxing Authority may specify for
      responding to such claim) request the Executive to contest the claim. The
      Executive shall not make any payment of any tax which is the subject of the
      claim before the Executive has given the notice or during the 30-day period
      thereafter unless the Executive receives written instructions from the Company
      to make such payment together with an advance of funds sufficient to make the
      requested payment plus any amounts payable under this Section 5 determined
      as if
      such advance were an Excise Tax, in which case the Executive will act promptly
      in accordance with such instructions.

    

    (ii)
      If
      the Company so requests, the Executive will contest the claim by either paying
      the tax claimed and suing for a refund in the appropriate court or contesting
      the claim in the United States Tax Court or other appropriate court, as directed
      by the Company; PROVIDED, HOWEVER, that any request by the Company for the
      Executive to pay the tax shall be accompanied by an advance from the Company
      to
      the Executive of funds sufficient to make the requested payment plus any amounts
      payable under this Section 5 determined as if such advance were an Excise Tax.
      If directed by the Company in writing the Executive will take all action
      necessary to compromise or settle the claim, but in no event will the Executive
      compromise or settle the claim or cease to contest the claim without the written
      consent of the Company; PROVIDED, HOWEVER, that the Executive may take any
      such
      action if the Executive waives in writing the Executive’s right to a payment
      under this Section 5 for any amounts payable in connection with such claim.
      The
      Executive agrees to cooperate in good faith with the Company in contesting
      the
      claim and to comply with any reasonable request from the Company concerning
      the
      contest of the claim, including the pursuit of administrative remedies, the
      appropriate forum for any judicial proceedings, and the legal basis for
      contesting the claim. Upon request of the Company, the Executive shall take
      appropriate appeals of any judgment or decision that would require the Company
      make a payment under this Section 5. Provided that Executive is in compliance
      with the provisions this section, the Company shall be liable for and indemnify
      the Executive against any loss in connection with, and all costs and expenses,
      including attorneys’ fees, which may be incurred as a result of, contesting the
      claim, and shall provide to the Executive within 30 days after each written
      request therefor by the Executive cash advances or reimbursement for all such
      costs and expenses actually incurred or reasonably expected to be incurred
      by
      the Executive as a result of contesting the claim.

    

    
      
         

      

      
        A
          - 5

        
          

        

      

      
         

      

    

    

    (f) Should
      a
      Tax Authority finally determine that an additional Excise Tax is owed, then
      the
      Company shall pay an additional Make-Whole Amount to the Executive in a manner
      consistent with this Section 5 with respect to any additional Excise Tax and
      any
      assessed interest, fines, or penalties. If any Excise Tax as calculated by
      the
      Company or Tax Counsel, as the case may be, is finally determined by a Tax
      Authority to exceed the amount required to be paid under applicable law, then
      the Executive shall repay such excess to the Company within 30 days of such
      determination; provided that such repayment shall be reduced by the amount
      of
      any taxes paid by the Executive on such excess which is not offset by the tax
      benefit attributable to the repayment.

    

    6. TERMINATION
      DURING POTENTIAL CHANGE IN CONTROL. If a Potential Change in Control (as defined
      in Section 8) occurs during the Agreement Term, and the Company terminates
      the
      Executive’s engagement for reasons other than Permanent Disability or Cause
      during such Potential Change in Control, the Executive shall be entitled to
      receive the benefits that the Executive would have received under Section 3,
      such benefits to be calculated based upon the Executive’s compensation prior to
      the actual termination of engagement but paid within 20 business days of the
      date of such termination. 

    

    7.
       CHANGE
      IN
      CONTROL. For purposes of this Agreement, a “Change in Control” shall be deemed
      to have occurred on the earliest of the following dates:

    

    (a) the
      date
      any Person is or becomes the Beneficial Owner, directly or indirectly, of
      securities of the Company representing 30% or more of the combined voting power
      of the Company’s then outstanding securities, excluding any Person who becomes
      such a Beneficial Owner in connection with a transaction described in clause
      (i)
      of paragraph (c) below; or 

    

    (b)
       the
      date
      on which the following individuals cease for any reason to constitute a majority
      of the number of directors then serving: individuals who, on the date hereof,
      constitute the Board and any new director (other than a director whose initial
      assumption of office is in connection with an actual or threatened election
      contest, including but not limited to a consent solicitation, relating to the
      election of directors of the Company) whose appointment or election by the
      Board
      or nomination for election by the Company’s stockholders was approved or
      recommended by a vote of at least two-thirds (2/3) of the directors then still
      in office who either were directors on the date hereof or whose appointment,
      election or nomination for election was previously so approved or recommended;
      or 

    

    (c)
       the
      date
      on which there is consummated a merger or consolidation of the Company or any
      direct or indirect subsidiary of the Company with any other corporation or
      other
      entity, other than (i) a merger or consolidation (A) immediately following
      which
      the individuals who comprise the Board immediately prior thereto constitute
      at
      least a majority of the board of directors of the Company, the entity surviving
      such merger or consolidation or, if the Company or the entity surviving such
      merger or consolidation is then a subsidiary, the ultimate parent thereof and
      (B) which results in the voting securities of the Company outstanding
      immediately prior to such merger or consolidation continuing to represent
      (either by remaining outstanding or by being converted into voting securities
      of
      the surviving entity or any parent thereof), in combination with the ownership
      of any trustee or other fiduciary holding securities under an employee benefit
      plan of the Company or any subsidiary of the Company, at least 50% of the
      combined voting power of the securities of the Company or such surviving entity
      or any parent thereof outstanding immediately after such merger or
      consolidation, or (ii) a merger or consolidation effected to implement a
      recapitalization of the Company (or similar transaction) in which no Person
      is
      or becomes the Beneficial Owner, directly or indirectly, of securities of the
      Company representing 30% or more of the combined voting power of the Company’s
      then outstanding securities; or

     

    
      
         

      

      
        A
          - 6

        
          

        

      

      
         

      

    

     

    (d)
       the
      date
      on which the stockholders of the Company approve a plan of complete liquidation
      or dissolution of the Company or there is consummated an agreement for the
      sale
      or disposition by the Company of all or substantially all of the Company’s
      assets, other than a sale or disposition by the Company of all or substantially
      all of the Company’s assets to an entity, at least 50% of the combined voting
      power of the voting securities of which are owned by stockholders of the
      Company, in combination with the ownership of any trustee or other fiduciary
      holding securities under an employee benefit plan of the Company or any
      subsidiary of the Company, in substantially the same proportions as their
      ownership of the Company immediately prior to such sale.

    

    Notwithstanding
      the foregoing, a “Change in Control” shall not be deemed to have occurred by
      virtue of the consummation of any transaction or series of integrated
      transactions immediately following which the record holders of the common stock
      of the Company immediately prior to such transaction or series of transactions
      continue to have substantially the same proportionate ownership in an entity
      which owns all or substantially all of the assets of the Company immediately
      following such transaction or series of transactions. 

    

    For
      purposes of this Agreement: “Affiliate” shall have the meaning set forth in Rule
      12b-2 promulgated under Section 12 of the Exchange Act; “Beneficial Owner” shall
      have the meaning set forth in Rule 13d-3 under the Exchange Act; “Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended from time to time;
      and “Person” shall have the meaning given in Section 3(a)(9) of the Exchange
      Act, as modified and used in Sections 13(d) and 14(d) thereof, except that
      such
      term shall not include (i) the Company or any of its subsidiaries, (ii) a
      trustee or other fiduciary holding securities under an employee benefit plan
      of
      the Company or any of its Affiliates, (iii) an underwriter temporarily holding
      securities pursuant to an offering of such securities, or (iv) a corporation
      owned, directly or indirectly, by the stockholders of the Company in
      substantially the same proportions as their ownership of stock of the
      Company.

    

    8.
       POTENTIAL
      CHANGE IN CONTROL. A “Potential Change in Control” shall exist during any period
      in which the circumstances described in paragraphs (a), (b), (c) or (d), below,
      exist (provided, however, that a Potential Change in Control shall cease to
      exist not later than the occurrence of a Change in Control): 

    

    (a) The
      Company enters into an agreement, the consummation of which would result in
      the
      occurrence of a Change in Control, provided that a Potential Change in Control
      described in this paragraph (a) shall cease to exist upon the expiration or
      other termination of all such agreements; 

     

    
      
         

      

      
        A
          - 7

        
          

        

      

      
         

      

    

     

    (b) Any
      Person (without regard to the exclusions set forth in subsections (i) through
      (iv) of such definition) publicly announces an intention to take or to consider
      taking actions the consummation of which would constitute a Change in Control;
      provided that a Potential Change in Control described in this paragraph (b)
      shall cease to exist upon the withdrawal of such intention, or upon a
      determination by the Board that there is no reasonable chance that such actions
      would be consummated;

    

    (c)
       Any
      Person becomes the Beneficial Owner, directly or indirectly, of securities
      of
      the Company representing 20% or more of either the then outstanding shares
      of
      common stock of the Company or the combined voting power of the Company’s then
      outstanding securities; 

    

    (d)
       The
      Board
      adopts a resolution to the effect that, for purposes of this Agreement, a
      Potential Change in Control exists; provided that a Potential Change in Control
      described in this paragraph (d) shall cease to exist upon a determination by
      the
      Board that the reasons that gave rise to the resolution providing for the
      existence of a Potential Change in Control have expired or no longer exist.
      

    

    9.
       NONALIENATION.
      The interests of the Executive under this Agreement are not subject in any
      manner to anticipation, alienation, sale, transfer, assignment, pledge,
      encumbrance, attachment, or garnishment by creditors of the Executive or the
      Executive’s beneficiary.

    

    10. AMENDMENT.
      This Agreement may be amended or canceled only by mutual agreement of the
      parties in writing without the consent of any other person. So long as the
      Executive lives, no person, other than the parties hereto, shall have any rights
      under or interest in this Agreement or the subject matter hereof.

    

    11.
       APPLICABLE
      LAW. The provisions of this Agreement shall be construed in accordance with
      the
      laws of the State of New York, without regard to the conflict of law provisions
      of any state.

     

    12.
       SEVERABILITY.
      The invalidity or unenforceability of any provision of this Agreement will
      not
      affect the validity or enforceability of any other provision of this Agreement,
      and this Agreement will be construed as if such invalid or unenforceable
      provision were omitted (but only to the extent that such provision cannot be
      appropriately reformed or modified).

    

    13.
       WAIVER
      OF
      BREACH. No waiver by any party hereto of a breach of any provision of this
      Agreement by any other party, or of compliance with any condition or provision
      of this Agreement to be performed by such other party, will operate or be
      construed as a waiver of any subsequent breach by such other party of any
      similar or dissimilar provisions and conditions at the same or any prior or
      subsequent time. The failure of any party hereto to take any action by reason
      of
      such breach will not deprive such party of the right to take action at any
      time
      while such breach continues.

    

    
      
         

      

      
        A
          - 8

        
          

        

      

      
         

      

       

    

    14.
       SUCCESSORS,
      ASSUMPTION OF CONTRACT. This Agreement shall be binding upon and inure to the
      benefit of the Company and any successor of the Company. The Company will
      require any successor (whether direct or indirect, by purchase, merger,
      consolidation or otherwise) to all or substantially all of the business and/or
      assets of the Company to expressly assume and agree to perform this Agreement
      in
      the same manner and to the same extent that the Company would be required to
      perform it if no succession had taken place. This Agreement is personal to
      the
      Executive and may not be assigned by the Executive without the written consent
      of the Company. However, to the extent that rights or benefits under this
      Agreement otherwise survive the Executive’s death, the Executive’s heirs and
      estate shall succeed to such rights and benefits pursuant to the Executive’s
      will or the laws of descent and distribution; provided that the Executive shall
      have the right at any time and from time to time, by notice delivered to the
      Company, to designate or to change the beneficiary or beneficiaries with respect
      to such benefits. 

    

    15.
       NOTICES.
      Notices and all other communications provided for in this Agreement shall be
      in
      writing and shall be delivered personally or sent by registered or certified
      mail, return receipt requested, postage prepaid (provided that international
      mail shall be sent via overnight or two-day delivery), or sent by facsimile
      or
      prepaid overnight courier to the parties at the addresses set forth below.
      Such
      notices, demands, claims and other communications shall be deemed
      given:

    

    (a) in
      the
      case of delivery by overnight service with guaranteed next day delivery, the
      next day or the day designated for delivery; 

    

    (b) in
      the
      case of certified or registered U.S. mail, five days after deposit in the U.S.
      mail; or 

    

    (c) in
      the
      case of facsimile, the date upon which the transmitting party received
      confirmation of receipt by facsimile, telephone or otherwise; 

    

    provided,
      however, that in no event shall any such communications be deemed to be given
      later than the date they are actually received. Communications that are to
      be
      delivered by the U.S. mail or by overnight service or two-day delivery service
      are to be delivered to the addresses set forth below:

    

    to
      the
      Company:

    

    Capital
      Gold Corporation

    76
      Beaver
      Street

    26th
      Floor

    New
      York,
      NY 10005

     

    
      
         

      

      
        A
          - 9

        
          

        

      

      
         

      

    

    with
      a
      copy (which shall not constitute notice) to:

    

      President

      Capital
        Gold Corporation

      76
        Beaver
        Street

      26th
        Floor

      New
        York,
        NY 10005

    

     

    or
      to the
      Executive:

    

    Christopher
      M. Chipman

    4014
      Redwing Lane

    Audubon,
      PA 19407

    

    Each
      party, by written notice furnished to the other party, may modify the applicable
      delivery address, except that notice of change of address shall be effective
      only upon receipt.

    

    16. LEGAL
      AND
      ENFORCEMENT COSTS. The provisions of this Section 16 shall apply if it becomes
      necessary or desirable for the Executive to retain legal counsel or incur other
      costs and expenses in connection with enforcing any and all rights under this
      Agreement or any other compensation plan maintained by the Company;

    

    (a) The
      Executive shall be entitled to recover from the Company reasonable attorneys’
fees, costs and expenses incurred in connection with such enforcement or
      defense.

    

    (b) Payments
      required under this Section 16 shall be made by the Company to the Executive
      (or
      directly to the Executive’s attorney) promptly following submission to the
      Company of appropriate documentation evidencing the incurrence of such
      attorneys’ fees, costs, and expenses.

    

    (c) The
      Executive shall be entitled to select legal counsel; provided, however, that
      such right of selection shall not affect the requirement that any costs and
      expenses reimbursable under this Section 16 be reasonable.

    

    (d) The
      Executive’s rights to payments under this Section 16 shall not be affected by
      the final outcome of any dispute with the Company.

    

    17.
       SURVIVAL
      OF AGREEMENT. Except as otherwise expressly provided in this Agreement, the
      rights and obligations of the parties to this Agreement shall survive the
      termination of the Executive’s engagement with the Company. 

    

    18.
       ENTIRE
      AGREEMENT. Except as otherwise provided herein, this Agreement constitutes
      the
      entire agreement between the parties concerning the subject matter hereof and
      supersedes all prior or contemporaneous agreements, between the parties relating
      to the subject matter hereof; provided, however, that nothing in this Agreement
      shall be construed to limit any policy or agreement that is otherwise applicable
      relating to confidentiality, rights to inventions, copyrightable material,
      business and/or technical information, trade secrets, solicitation of employees,
      interference with relationships with other businesses, competition, and other
      similar policies or agreement for the protection of the business and operations
      of the Company and the subsidiaries.

    

    19.
       COUNTERPARTS.
      This Agreement may be executed in two or more counterparts, any one of which
      shall be deemed the original without reference to the others.

     

    
      
         

      

      
        A
          - 10

        
          

        

      

      
         

      

    

     

    IN
      WITNESS THEREOF, the Executive has hereunto set his hand, and the Company has
      caused these presents to be executed in its name and on its behalf, and its
      corporate seal to be hereunto affixed on this ___ day of May, 2007, all as
      of
      the Effective Date.

    

      s/
        Christopher M.
        Chipman              
  

      Christopher
        M. Chipman

      

      CAPITAL
        GOLD CORPORATION

    

    

      
        	
                By:

              	
                s/Gifford
                  Dieterle                               
                  

              

    

    Gifford
      A. Dieterle, President

     

    ATTEST:

    

      s/
        Jeffrey W.
        Pritchard                         

      Jeffrey
        W. Pritchard, Vice President

    

    

    
      
         

      

      
        A
          - 11

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