Document:

Exhibit 10.1

 

OCTOBER 2018 AMENDMENT AND EXCHANGE
AGREEMENT

 

This Amendment and Exchange
Agreement (the “Agreement”) is entered into as of the 4th day of October, 2018, by and between Helios and Matheson
Analytics Inc., a Delaware corporation with offices located at Empire State Building, 350 5th Avenue, New York, New York 10118
(the “Company”) and the investor signatory hereto (the “Holder”), with reference to the following
facts:

 

A. On
June 21, 2018, the Company and certain investors (the “June Buyers”) entered into a securities purchase agreement
(as amended prior to the date hereof, the “June Securities Purchase Agreement”), pursuant to which such June
Buyers purchased, among other things, certain Notes (as defined in the June Securities Purchase Agreement) (the “June
Notes”) for cash and certain promissory notes, each issued by a June Buyer to the Company (the “June Investor
Notes”). On January 11, 2018, the Company and a certain investor (the “January Buyer”) entered into
a securities purchase agreement, pursuant to which, among other things, such January Buyer purchased certain January Notes (as
defined in the June Notes) (as amended prior to the date hereof, the “January Securities Purchase Agreement”).
On November 6, 2017, the Company and certain investors (each, a “November Buyer”) entered into a securities
purchase agreement, pursuant to which, among other things, such November Buyers purchased certain November Notes (as defined in
the June Notes) (as amended prior to the date hereof, the “November Securities Purchase Agreement”).

 

B. As of the date hereof,
the Holder owns a June Note (the “Existing Note”) with an aggregate principal amount and accrued and unpaid
interest outstanding as set forth on the signature page of the Holder attached hereto (the “Existing Note Amount”)
and has issued a June Investor Note (the “Existing Investor Note”) to the Company with an aggregate principal
amount as set forth on the signature page of the Holder attached hereto (the “Investor Note Amount”).

 

C. The Company and the
Holder desire (i) pursuant to Section 7(b) of the Existing Investor Note, to cause an Investor Optional Netting (as defined in
the Existing Investor Note) to occur with respect to the entire Investor Note Amount of the Existing Investor Note (the “Exchange
Netting”), such that after giving effect to such Investor Optional Netting, the Existing Note Amount then outstanding
shall be reduced by the Investor Note Amount (such remaining amount, the “Remaining Note Amount”) and (ii) to
exchange (collectively, the “Exchange”, and together with the Exchange Netting, the “Transactions”)
the Remaining Note Amount of the Existing Note for a new senior note in the form attached hereto as Exhibit A in
such aggregate principal amount as set forth on the signature page of the Holder attached hereto (the “Exchange Note”).
The Exchange Note and this Agreement and such other documents and certificates related thereto are collectively referred to herein
as the “Exchange Documents”.

 

D. The
Exchange is being made in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act
of 1933, as amended (the “Securities Act”).

 

E. Capitalized
terms used but not otherwise defined herein shall have the meanings set forth in the June Securities Purchase Agreement.

 

     

     

    

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree
as follows:

 

1. 
Exchange.

 

1.1 The
Exchange; Exchange Netting.

 

(a) On
the date hereof, (i) the Holder shall be deemed to have delivered an Investor Optional Netting Election Notice (as defined in the
Existing Investor Note) to the Company with respect to the entire Investor Note Amount of the Existing Investor Note and the Exchange
Netting shall occur and (ii) the Holder hereby agrees to convey, assign and transfer the Remaining Note Amount of the Existing
Note to the Company in exchange for which the Company agrees to issue pursuant to Section 3(a)(9) of the Securities Act the Exchange
Note.

 

(b) 
On the date hereof, in exchange for the Remaining Note Amount of the Existing Note, the Company shall deliver or cause to be delivered
to the Holder (or its designee) the Exchange Note at the address for delivery set forth on the Schedule of Buyers to the June Securities
Purchase Agreement.

 

(c) Upon
the consummation of the Exchange Netting and the Exchange, the Existing Note and the Existing Investor Note shall be automatically
cancelled and shall be null and void.

 

(d) On
or prior to the date hereof, the Company shall have obtained all governmental, regulatory or third party consents and approvals,
if any, necessary for the Transactions.

 

1.2 Amendments;
Acknowledgements; Waivers.

 

(a) Ratifications.
Except as otherwise expressly provided herein, the June Securities Purchase Agreement, the January Securities Purchase Agreement,
the November Securities Purchase Agreement and each other Transaction Document (as defined in the June Securities Purchase Agreement),
other Transaction Document (as defined in the January Securities Purchase Agreement) and other Transaction Document (as defined
in the November Securities Purchase Agreement), is, and shall continue to be, in full force and effect and is hereby ratified and
confirmed as of their respective dates in all respects, except that on and after the date hereof: (i) all references in the June
Securities Purchase Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder”
or words of like import referring to the June Securities Purchase Agreement shall mean the June Securities Purchase Agreement as
amended by this Agreement, and (ii) all references in the other Transaction Documents (as defined in the June Securities Purchase
Agreement), to the “Securities Purchase Agreement”, “thereto”, “thereof”, “thereunder”
or words of like import referring to the June Securities Purchase Agreement shall mean the June Securities Purchase Agreement as
amended by this Agreement.

 

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(b) Amendments
to June Transaction Documents. Effective as of the date hereof, the June Securities Purchase Agreement and each of the Transaction
Documents (as defined in the June Securities Purchase Agreement) are hereby amended as follows:

 

(i) The defined
term “Notes” is hereby amended to include Exchange Note.

 

(ii) The defined
term “Transaction Documents” shall be amended to include this Agreement.

 

(c) Consents
and Waivers. Effective simultaneously with the consummation of the Exchange, the following shall occur:

 

(i) The
Holder, in its capacity as the Required Holders under the November Notes (as defined in the June Notes), hereby consents to the
transactions contemplated hereby, (x) agrees the Exchange Notes shall constitute Permitted Indebtedness (as defined in the November
Notes) that will rank pari passu with the November Notes, (y) waives any prohibition that may exist under any provision
of the Transaction Documents (as defined in the November Securities Purchase Agreement) with respect to the issuance of the Exchange
Notes and (z) waives any obligation of the Company to reserve more shares of Common Stock as of any time of determination than
100% of the aggregate number of shares of Common Stock issuable upon conversion of the November Notes as of such time of determination
under the Transaction Documents (as defined in the November Securities Purchase Agreement).

 

(ii) 
The Holder, in its capacity as the Required Holders under the January Notes (as defined in the June Notes), hereby consents
to the transactions contemplated hereby, (x) agrees the Exchange Notes shall constitute Permitted Indebtedness (as defined in the
January Notes) that will rank pari passu with the January Notes, (y) waives any prohibition that may exist under any provision
of the Transaction Documents (as defined in the January Securities Purchase Agreement) with respect to the issuance of the Exchange
Notes and (z) waives any obligation of the Company to reserve more shares of Common Stock as of any time of determination than
125% of the aggregate number of shares of Common Stock issuable upon conversion of the January Notes as of such time of determination
under the Transaction Documents (as defined in the January Securities Purchase Agreement).

 

(iii) 
The Holder, in its capacity as the Required Holders under the June Notes hereby consents to the transactions contemplated
hereby, (x) agrees the Exchange Notes shall constitute Permitted Indebtedness (as defined in the June Notes) that will rank pari
passu with any June Notes that remain outstanding following the consummation of the Exchange and (y) waives any prohibition
that may exist under any provision of the Transaction Documents (as defined in the June Securities Purchase Agreement) with respect
to the issuance of the Exchange Notes.

 

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2. 
Representations and Warranties. As of the date hereof:

 

2.1 
Organization and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized and
validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power
and authority to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted.
Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in
every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary,
except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material
Adverse Effect (as defined below). As used in this Agreement, “Material Adverse Effect” means any material adverse
effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise)
or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in
any of the other Exchange Documents or (iii) the authority or ability of the Company or any of its Subsidiaries to perform any
of their respective obligations under any of the Exchange Documents. Other than the Persons (as defined below) listed in the SEC
Documents, the Company has no Subsidiaries. “Subsidiaries” means any Person in which the Company, directly or
indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls
or operates all or any part of the business, operations or administration of such Person, and each of the foregoing, is individually
referred to herein as a “Subsidiary;” provided, however, that Subsidiaries does not include MoviePass Films
LLC and its subsidiaries. For purposes of this Agreement, (x) “Person” means an individual, a limited liability
company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any Governmental
Entity or any department or agency thereof and (y) “Governmental Entity” means any nation, state, county, city,
town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other government,
governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or
entity and any court or other tribunal), multi-national organization or body; or body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature or instrumentality
of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public international organization
or any of the foregoing.

 

2.2 
Authorization and Binding Obligation. The Company has the requisite power and authority to enter into and perform
its obligations under this Agreement and the Exchange Note and each of the other agreements entered into by the parties hereto
in connection with the transactions contemplated by the Exchange Documents and to consummate the Transactions (including, without
limitation, the issuance of the Exchange Note in accordance with the terms hereof). The execution and delivery of the Exchange
Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without
limitation, the issuance of the Exchange Note has been duly authorized by the Company’s Board of Directors and no further
filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders. This Agreement and the
other Exchange Documents have been duly executed and delivered by the Company, and constitute the legal, valid and binding obligations
of the Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights
to indemnification and to contribution may be limited by federal or state securities laws.

 

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2.3 
No Conflict. The execution, delivery and performance of the Exchange Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the Transactions and the issuance
of the Exchange Note) will not (i) result in a violation of the Certificate of Incorporation (as defined below) or any other organizational
documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or Bylaws (as
defined below) of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and
regulations and the rules and regulations of the Nasdaq Capital Market (the “Principal Market”) and including
all applicable federal laws, rules and regulations) applicable to the Company or any of its Subsidiaries or by which any property
or asset of the Company or any of its Subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to the
extent such violations that would not reasonably be expected to have a Material Adverse Effect.

 

2.4 
No Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order
of, or make any filing or registration with (other than approval by the Principal Market of the exchange of the Exchange Note for
the Existing Note) as any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for
it to execute, deliver or perform any of its respective obligations under or contemplated by the Exchange Documents, in each case,
in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company
or any Subsidiary is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date
hereof, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company
or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Exchange
Documents.

 

2.5 
Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Holder contained herein,
the offer and issuance by the Company of the Exchange Note is exempt from registration under the Securities Act pursuant to the
exemption provided by Section 3(a)(9) thereof.

 

2.6 
Issuance of Exchange Note. The issuance of the Exchange Note has been duly authorized and upon issuance in accordance
with the terms of the Exchange Documents shall be validly issued, fully paid and non-assessable and free from all Liens.

 

2.7 
Transfer Taxes. On the date hereof, all share transfer or other taxes (other than income or similar taxes) which
are required to be paid in connection with the issuance of the Exchange Note to be exchanged with the Holder hereunder will be,
or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied
with.

 

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2.8 
SEC Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely filed
all reports, schedules, forms, proxy statements, information statements and other documents required to be filed by it with the
SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof, including without
limitation, Current Reports on Form 8-K filed by the Company with the SEC whether required to be filed or not (but excluding Item
7.01 thereunder), and all exhibits and appendices included therein (other than Exhibits 99.1 to Form 8-K) and financial statements,
notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC
Documents”). The Company has delivered or has made available to the Holder or its representatives true, correct and complete
copies of each of the SEC Documents not available on the EDGAR system. As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates,
the financial statements of the Company included in the SEC Documents complied in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such
financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”),
consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the
notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed
or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments which will not be material, either individually or in the aggregate). No other information provided
by or on behalf of the Company to the Holder which is not included in the SEC Documents (including, without limitation, information
in the disclosure schedules to this Agreement) contains any untrue statement of a material fact or omits to state any material
fact necessary in order to make the statements therein not misleading, in the light of the circumstance under which they are or
were made. The Company is not currently contemplating to amend or restate in any material respect any of the financial statements
(including, without limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included
in the SEC Documents (the “Financial Statements”), nor is the Company currently aware of facts or circumstances
which would require the Company to amend or restate in any material respect any of the Financial Statements, in each case, in order
for any of the Financials Statements to be in compliance with GAAP and the rules and regulations of the SEC. The Company has not
been informed by its independent accountants that they recommend that the Company amend or restate in any material respect any
of the Financial Statements or that there is any need for the Company to amend or restate in any material respect any of the Financial
Statements.

 

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2.9 
Absence of Certain Changes. Since the date of the Company’s most recent financial statements contained in a
Form 10-Q, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually
or in the aggregate, outside of the ordinary course of business or (iii) except as disclosed in the SEC Documents, made any capital
expenditures, individually or in the aggregate, outside of the ordinary course of business. Neither the Company nor any of its
Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization,
receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason to believe that any
of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would
reasonably lead a creditor to do so.

 

2.10 
No Undisclosed Events, Liabilities, Developments or Circumstances. Except as set forth in the SEC Documents, no event,
liability, development or circumstance has occurred or exists, or is reasonably expected to exist or occur with respect to the
Company, any of its Subsidiaries or any of their respective businesses, properties, liabilities, prospects, operations (including
results thereof) or condition (financial or otherwise), that (i) would be required to be disclosed by the Company under applicable
securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its
Common Stock and which has not been publicly announced, (ii) would reasonably expected to have a material adverse effect on the
Holder’s investment hereunder or (iii) would reasonably be expected to have a Material Adverse Effect.

 

2.11 
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term
of or in default under its Certificate of Incorporation, any certificate of designation, preferences or rights of any other outstanding
series of preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation,
memorandum of association, articles of association, Certificate of Incorporation or bylaws, respectively. Except as set forth in
the SEC Documents, neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute,
ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries
will conduct its business in violation of any of the foregoing, except in all cases for possible violations which could not, individually
or in the aggregate, have a Material Adverse Effect. Except as set forth in the SEC Documents, without limiting the generality
of the foregoing, the Company is not in violation of any of the rules, regulations or requirements of the Principal Market and
has no knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of the Common Stock by the
Principal Market in the foreseeable future. During the two years prior to the date hereof, (i) the Common Stock has been listed
or designated for quotation on the Principal Market, (ii) trading in the Common Stock has not been suspended by the SEC or the
Principal Market and (iii) except as set forth in the SEC Documents, the Company has received no communication, written or oral,
from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market. The Company
and each of its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities
necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits
would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has
received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.
There is no agreement, commitment, judgment, injunction, order or decree binding upon the Company or any of its Subsidiaries or
to which the Company or any of its Subsidiaries is a party which has or would reasonably be expected to have the effect of prohibiting
or materially impairing any business practice of the Company or any of its Subsidiaries, any acquisition of property by the Company
or any of its Subsidiaries or the conduct of business by the Company or any of its Subsidiaries as currently conducted other than
such effects, individually or in the aggregate, which have not had and would not reasonably be expected to have a Material Adverse
Effect on the Company or any of its Subsidiaries.

 

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2.12 
Transactions With Affiliates. Except as set forth in the SEC Documents, no current or former employee, partner, director,
officer or stockholder (direct or indirect) of the Company or its Subsidiaries, or any associate, or, to the knowledge of the Company,
any affiliate of any thereof, or any relative with a relationship no more remote than first cousin of any of the foregoing, is
presently, or has ever been, (i) a party to any transaction with the Company or its Subsidiaries (including any contract, agreement
or other arrangement providing for the furnishing of services by, or rental of real or personal property from, or otherwise requiring
payments to, any such director, officer or stockholder or such associate or affiliate or relative Subsidiaries (other than for
ordinary course services as employees, consultants, officers or directors of the Company or any of its Subsidiaries)) or (ii) the
direct or indirect owner of an interest in any corporation, firm, association or business organization which is a competitor, supplier
or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect) in less than 5% of the common
stock of a company whose securities are traded on or quoted through an Eligible Market (as defined in the June Notes)), nor does
any such Person receive income from any source other than the Company or its Subsidiaries which relates to the business of the
Company or its Subsidiaries or should properly accrue to the Company or its Subsidiaries. No employee, officer, stockholder or
director of the Company or any of its Subsidiaries or member of his or her immediate family is indebted to the Company or its Subsidiaries,
as the case may be, nor is the Company or any of its Subsidiaries indebted (or committed to make loans or extend or guarantee credit)
to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable expenses incurred
on behalf of the Company, and (iii) for other standard employee benefits made generally available to all employees or executives
(including stock option agreements outstanding under any stock option plan approved by the Board of Directors of the Company).

 

2.13 
Equity Capitalization.

 

(a) 
Definitions:

 

(i) 
“Common Stock” means (x) the Company’s shares of common stock, $0.01 par value per share,
and (y) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification
of such common stock.

 

(ii) 
“Preferred Stock” means (x) the Company’s blank check preferred stock, $0.01 par value per share,
the terms of which may be designated by the board of directors of the Company in a certificate of designations, (y) the Company’s
Series A Preferred Stock, $0.01 par value per share, and (z) any capital stock into which such preferred stock shall have been
changed or any share capital resulting from a reclassification of such preferred stock (other than a conversion of such preferred
stock into Common Stock in accordance with the terms of such certificate of designations).

 

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(b) 
Authorized and Outstanding Capital Stock. As of October 2, 2018, the authorized capital stock of the Company consists
of (A) Five Billion (5,000,000,000) shares of Common Stock, of which, 1,357,590,536 are issued and outstanding as of the date hereof
and 5,301,514,584 of which are reserved for issuance pursuant to the Equity Incentive Plan, the Company’s outstanding Convertible
Securities and other obligations of the Company, and (B) Two Million (2,000,000) shares of Preferred Stock, 20,500 shares of which
are designated as Series A Preferred Stock and are issued and outstanding before giving effect to the transactions contemplated
hereby. No shares of Common Stock are held in the treasury of the Company. “Convertible Securities” means any capital
stock or other security of the Company or any of its Subsidiaries that is at any time and under any circumstances directly or indirectly
convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any capital stock
or other security of the Company (including, without limitation, Common Stock) or any of its Subsidiaries.

 

(c) 
Valid Issuance; Available Shares; Affiliates. All of such outstanding shares are duly authorized and have been, or
upon issuance will be, validly issued and are fully paid and nonassessable. As of October 3, 2018 there are 18,254 shares of Common
Stock that are owned by Persons who are “affiliates” (as defined in Rule 405 of the 1933 Act and calculated based on
the assumption that only officers, directors and holders of at least 10% of the Company’s issued and outstanding Common Stock
are “affiliates” without conceding that any such Persons are “affiliates” for purposes of federal securities
laws) of the Company or any of its Subsidiaries.

 

(d) 
Existing Securities; Obligations. Except as disclosed in the SEC Documents: (A) none of the Company’s or any
Subsidiary’s shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered
or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any shares, interests or capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares, interests or
capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares,
interests or capital stock of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements under which the
Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act; (D) there are
no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may
become bound to redeem a security of the Company or any of its Subsidiaries; (E) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Exchange Note; and (F) neither the Company nor
any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.

 

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(e) Organizational Documents. The Company has furnished to the Buyers true, correct and complete copies of the Company’s
Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”)
and the Company’s bylaws, as amended and as in effect on the date hereof. (the “Bylaws”).

 

2.14 
Indebtedness and Other Contracts. Neither the Company nor any of its Subsidiaries, (i) except as disclosed in the
SEC Documents or Schedule 3(s) of the June Securities Purchase Agreement, has any outstanding debt securities, notes, credit agreements,
credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its Subsidiaries
or by which the Company or any of its Subsidiaries is or may become bound, (ii) is a party to any contract, agreement or instrument,
except as disclosed in the SEC Documents, the violation of which, or default under which, by the other party(ies) to such contract,
agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) has any financing statements
securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries, except as disclosed in the
SEC Documents; (iv) except as waived by the Holder under Section 1.2(c) of this Agreement, is in violation of any term of, or in
default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would
not result, individually or in the aggregate, in a Material Adverse Effect, or (v) is a party to any contract, agreement or instrument
relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has or is expected to
have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries have any liabilities or obligations required to
be disclosed in the SEC Documents which are not so disclosed in the SEC Documents, other than those incurred in the ordinary course
of the Company’s or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or
could not have a Material Adverse Effect. The Company has not guaranteed any Indebtedness of its direct or indirect Subsidiaries
(other than such guarantees that are listed on Schedule 2.14 to this Agreement or have been terminated on or prior to the date
hereof).

 

2.15 
Litigation. Except as set forth on Schedule 2.15 hereto, there is no action, suit, arbitration, proceeding, inquiry
or investigation before or by the Principal Market, any court, public board, other Governmental Entity, self-regulatory organization
or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the
Common Stock or any of the Company’s or its Subsidiaries’ officers or directors that would reasonably be expected to
have a Material Adverse Effect on the Company or its Subsidiaries, whether of a civil or criminal nature or otherwise, in their
capacities as such, and that would be required to be disclosed under applicable securities laws on a registration statement on
Form S-1 filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly
announced, except as disclosed in the SEC Documents or in Schedule 3(t) of the June Securities Purchase Agreement. No director,
officer or employee of the Company or any of its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation
in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been, and to the knowledge of the
Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any
current or former director or officer of the Company or any of its Subsidiaries that would be required to be disclosed under applicable
securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its
Common Stock and which has not been publicly announced. The SEC has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company under the 1933 Act or the 1934 Act. Neither the Company nor any of its Subsidiaries
is subject to any order, writ, judgment, injunction, decree, determination or award of any Governmental Entity.

 

    	 	10	 

     

    

 

2.16 
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided the Holder
or its agents or counsel with any information that constitutes or would reasonably be expected to constitute material, non-public
information concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this
Agreement and the other Exchange Documents. The Company understands and confirms that the Holder will rely on the foregoing representations
in effecting transactions in securities of the Company. All disclosure provided to the Holder regarding the Company and its Subsidiaries,
their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf
of the Company or any of its Subsidiaries is true and correct and does not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which
they were made, not misleading. Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months
preceding the date of this Agreement did not at the time of release contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they are made, not misleading. No material event or circumstance has occurred or material information exists with respect
to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results
thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at
or before the date hereof or announcement by the Company but which has not been so publicly announced or disclosed.

 

2.17 
Commissions.The Company confirms that no commission or other remuneration has been paid or given directly or
indirectly for soliciting the exchange of the Remaining Amount of the Existing Note for the Exchange Note.

 

3. 
Holder’s Representations and Warranties. As a material inducement to the Company to enter into this Agreement
and consummate the Exchange, the Holder represents, warrants and covenants with and to the Company as follows:

 

3.1 
Reliance on Exemptions. The Holder understands that the Exchange Note is being offered and exchanged in reliance
on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and the Holder’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Holder set forth herein and in the Exchange Documents in order to determine the availability
of such exemptions and the eligibility of the Holder to acquire the Exchange Note.

 

3.2 
No Governmental Review. The Holder understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Exchange Note or the fairness or suitability
of the investment in the Exchange Note nor have such authorities passed upon or endorsed the merits of the offering of the Exchange
Note.

 

    	 	11	 

     

    

 

3.3 
Validity; Enforcement. This Agreement and the Exchange Documents to which the Holder is a party have been duly and
validly authorized, executed and delivered on behalf of the Holder and shall constitute the legal, valid and binding obligations
of the Holder enforceable against the Holder in accordance with their respective terms, except as such enforceability may be limited
by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

3.4 
No Conflicts. The execution, delivery and performance by the Holder of this Agreement and the Exchange Documents
to which the Holder is a party, and the consummation by the Holder of the transactions contemplated hereby and thereby will not
(i) result in a violation of the organizational documents of the Holder or (ii) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which the Holder is a party, or (iii) result in a violation
of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to the Holder,
except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually
or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Holder to perform its obligations
hereunder.

 

3.5 
Investment Risk; Sophistication. The Holder is acquiring the Exchange Note hereunder in the ordinary course of its
business. The Holder has such knowledge, sophistication, and experience in business and financial matters so as to be capable of
evaluation of the merits and risks of the prospective investment in the Exchange Note, and has so evaluated the merits and risk
of such investment. The Holder is an “accredited investor” as defined in Regulation D under the Securities Act.

 

3.6 
Ownership of Existing Note. The Holder owns the Existing Note free and clear of any Liens (other than the obligations
pursuant to this Agreement, liens in the ordinary course of business (e.g. bone fide margin account liens) and applicable securities
laws).

 

4. 
Disclosure of Transaction. The Company shall, on or before 8:30 a.m., New York City Time, on or prior to the
first business day after the date of this Agreement, file a Current Report on Form 8-K describing the terms of the transactions
contemplated hereby in the form required by the 1934 Act and attaching the Exchange Documents, to the extent they are required
to be filed under the 1934 Act, that have not previously been filed with the SEC by the Company (including, without limitation,
this Agreement) as exhibits to such filing (including all attachments, the “8-K Filing”). From and after the
filing of the 8-K Filing, the Company shall have disclosed all material, non-public information (if any) provided up to such time
to the Holder by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents. In
addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or
similar obligations under any agreement with respect to the transactions contemplated by the Exchange Documents or as otherwise
disclosed in the 8-K Filing, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, affiliates, employees or agents, on the one hand, and any of the Holder or any of their affiliates, on the other hand,
shall terminate. Neither the Company, its Subsidiaries nor the Holder shall issue any press releases or any other public statements
with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled,
without the prior approval of the Holder, to make a press release or other public disclosure with respect to such transactions
(i) in substantial conformity with the 8-K Filing and contemporaneously therewith or (ii) as is required by applicable law and
regulations (provided that in the case of clause (i) the Holder shall be consulted by the Company in connection with any such press
release or other public disclosure prior to its release). Without the prior written consent of the Holder (which may be granted
or withheld in the Holder’s sole discretion), except as required by applicable law, the Company shall not (and shall cause
each of its Subsidiaries and affiliates to not) disclose the name of the Holder in any filing, announcement, release or otherwise.

 

    	 	12	 

     

    

 

5. 
No Integration. None of the Company, its Subsidiaries, any of their affiliates, or any Person acting on their
behalf shall, directly or indirectly, make any offers or sales of any security (as defined in the Securities Act) or solicit any
offers to buy any security or take any other actions, under circumstances that would require registration of any of the Exchange
Note under the Securities Act or cause this offering of the Exchange Note to be integrated with such offering or any prior offerings
by the Company for purposes of Regulation D under the Securities Act.

 

6. 
Fees. The Company shall promptly reimburse Kelley Drye & Warren, LLP (counsel to the lead investor), on
demand, for all reasonable, documented costs and expenses incurred by it in connection with preparing and delivering this Agreement
(including, without limitation, all reasonable, documented legal fees and disbursements in connection therewith, and due diligence
in connection with the transactions contemplated thereby) in an aggregate amount not to exceed $[ ].

 

7. 
Holding Period. For the purposes of Rule 144, the Company acknowledges that the holding period of the
Exchange Note may be tacked onto the holding period of the Existing Note, and the Company agrees not to take a position contrary
to this Section 7.

 

8. 
Blue Sky. The Company shall make all filings and reports relating to the Exchange required under applicable
securities or “Blue Sky” laws of the states of the United States following the date hereof, if any.

 

9. 
Participation Right. At any time on or prior to the later of (x) the date no Exchange Note remains outstanding
and (y) the first anniversary of the date hereof, neither the Company nor any of its Subsidiaries shall, directly or indirectly,
effect any Subsequent Placement (as defined in the November Securities Purchase Agreement) unless the Company shall have first
complied with this Section 9. The Company acknowledges and agrees that the right set forth in this Section 9 is a right
granted by the Company, separately, to the Holder.

 

(a) At
least five (5) Trading Days prior to any proposed or intended Subsequent Placement, the Company shall deliver to the Holder a written
notice (each such notice, a “Pre-Notice”), which Pre-Notice shall not contain any information (including, without
limitation, material, non-public information) other than: (A) if the proposed Offer Notice (as defined below) constitutes or contains
material, non-public information, a statement asking whether the Holder is willing to accept material non-public information or
(B) if the proposed Offer Notice does not constitute or contain material, non-public information, (x) a statement that the Company
proposes or intends to effect a Subsequent Placement, (y) a statement that the statement in clause (x) above does not constitute
material, non-public information and (z) a statement informing the Holder that it is entitled to receive an Offer Notice (as defined
below) with respect to such Subsequent Placement upon its written request. Upon the written request of the Holder within three
(3) Trading Days after the Company’s delivery to the Holder of such Pre-Notice, and only upon a written request by the Holder,
the Company shall promptly, but no later than one (1) Trading Day after such request, deliver to the Holder an irrevocable written
notice (the “Offer Notice”) of any proposed or intended issuance or sale or exchange (the “Offer”)
of the securities being offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall
(A) identify and describe the Offered Securities, (B) describe the price and other terms upon which they are to be issued, sold
or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (C) identify the Persons (if
known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (D) offer to issue and sell
to or exchange with the Holder in accordance with the terms of the Offer such percentage as set forth on the signature page of
the Holder attached hereto of the Offered Securities (the “Available Amount”).

 

    	 	13	 

     

    

 

(b) To accept
an Offer, in whole or in part, the Holder must deliver a written notice to the Company prior to the end of the fifth (5th)
Business Day after the Holder’s receipt of the Offer Notice (the “Offer Period”), setting forth the portion
of the Holder’s Available Amount that the Holder elects to purchase (in either case, the “Notice of Acceptance”).
Notwithstanding the foregoing, if the Company desires to modify or amend the terms and conditions of the Offer prior to the expiration
of the Offer Period, the Company may deliver to the Holder a new Offer Notice and the Offer Period shall expire on the fifth (5th)
Business Day after the Holder’s receipt of such new Offer Notice.

 

(c) The Company
shall have ten (10) Business Days from the expiration of the Offer Period above (A) to offer, issue, sell or exchange all or any
part of such Offered Securities as to which a Notice of Acceptance has not been given by the Holder (the “Refused Securities”)
pursuant to a definitive agreement(s) (the “Subsequent Placement Agreement”), but only to the offerees described
in the Offer Notice (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and
interest rates) that are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set
forth in the Offer Notice and (B) to publicly announce (x) the execution of such Subsequent Placement Agreement, and (y) either
(I) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (II) the termination of such Subsequent
Placement Agreement, which shall be filed with the SEC on a Current Report on Form 8-K with such Subsequent Placement Agreement
and any documents contemplated therein filed as exhibits thereto.

 

    	 	14	 

     

    

 

(d) In the
event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms
specified in Section 9(c) above), then the Holder may, at its sole option and in its sole discretion, withdraw its Notice
of Acceptance or reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that
shall be not less than the number or amount of the Offered Securities that the Holder elected to purchase pursuant to Section 9(b)
above multiplied by a fraction, (i) the numerator of which shall be the number or amount of Offered Securities the Company actually
proposes to issue, sell or exchange (including Offered Securities to be issued or sold to the Holder pursuant to this Section 9
prior to such reduction) and (ii) the denominator of which shall be the original amount of the Offered Securities. In the event
that the Holder so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company
may not issue, sell or exchange more than the reduced number or amount of the Offered Securities unless and until such securities
have again been offered to the Holder in accordance with Section 9(a) above.

 

(e) Upon
the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, the Holder shall acquire from
the Company, and the Company shall issue to the Holder, the number or amount of Offered Securities specified in its Notice of Acceptance,
as reduced pursuant to Section 9(d) above if the Holder has so elected, upon the terms and conditions specified in the Offer.
The purchase by the Holder of any Offered Securities is subject in all cases to the preparation, execution and delivery by the
Company and the Holder of a separate purchase agreement relating to such Offered Securities reasonably satisfactory in form and
substance to the Holder and its counsel.

 

(f) Any Offered
Securities not acquired by the Holder or other Persons in accordance with this Section 9 may not be issued, sold or exchanged
until they are again offered to the Holder under the procedures specified in this Agreement.

 

(g) The Company
and the Holder agree that if the Holder elects to participate in the Offer, neither the Subsequent Placement Agreement with respect
to such Offer nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”)
shall include, unless otherwise required or prohibited (as the case may be) by the rules or regulations of the Principal Market
or the staff of the Principal Market, (x) any unreasonable representation, warranty, covenant, term or other provision, (y) any
representation, warranty, covenant, term or other provision that is less favorable to the Holder than as set forth in the June
Securities Purchase Agreement, mutatis mutandis or (z) any representation, warranty, covenant, term or other provision whereby
the Holder shall be required to agree to any restrictions on trading as to any securities of the Company or be required to consent
to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, any agreement previously
entered into with the Company or any instrument received from the Company.

 

(h) Notwithstanding
anything to the contrary in this Section 9 and unless otherwise agreed to by the Holder, the Company shall either confirm in writing
to the Holder that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention
to issue the Offered Securities, in either case, in such a manner such that the Holder will not be in possession of any material,
non-public information, by the tenth (10th) Business Day following delivery of the Offer Notice. If by such tenth (10th) Business
Day, no public disclosure regarding a transaction with respect to the Offered Securities has been made, and no notice regarding
the abandonment of such transaction has been received by the Holder, such transaction shall be deemed to have been abandoned and
the Holder shall not be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries.
Should the Company decide to pursue such transaction with respect to the Offered Securities, the Company shall provide the Holder
with another Offer Notice and the Holder will again have the right of participation set forth in this Section 9. The Company shall
not be permitted to deliver more than one such Offer Notice to the Holder in any thirty (30) day period, except as expressly contemplated
by the last sentence of Section 9(b).

 

(i) The restrictions
contained in this Section 9 shall not apply in connection with the issuance of any Excluded Securities (as defined in the June
Notes).

 

10. 
Miscellaneous Provisions. Section 9 of the June Securities Purchase Agreements (as amended hereby) is hereby
incorporated by reference herein, mutatis mutandis.

 

[The remainder of the
page is intentionally left blank]

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF,
Holders and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.

 

	 	COMPANY:
	 	 
	 	HELIOS AND MATHESON ANALYTICS INC.
	 	 	 
	 	By:	/s/ Theodore Farnsworth
	 	 	Name:  Theodore Farnsworth
	 	 	Title:  Chief Executive Officer

 

     

     

    

 

IN WITNESS WHEREOF,
Holders and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.

 

	 	HOLDER:
	 	 	 
	 	Hudson Bay Master Fund Ltd.
	 	 	 
	 	By:	/s/ Yoav Roth
	 	 	Name: Yoav Roth
	 	 	Title: Authorized Signatory
	 	 	Hudson Bay Capital Management LP
not individually, but solely as
Investment Advisor to Hudson Bay Master Fund Ltd.
	 	 	 
	 	Aggregate amount of principal and interest outstanding under Existing Note:
	 	 	
	 	$68,882,583.33
	 	 	 
	 	Aggregate amount of principal outstanding under Existing Investor Note:
	 	 	 
	 	$68,000,000.00
	 	 	 
	 	Aggregate initial principal of Exchange Note:
	 	 	 
	 	$20,400,000.00
	 	 	 
	 	Participation Rights Percentage:
	 	 	 
	 	25%

 

     

     

    

 

Schedule 2.14

 

Guarantees

 

The
Company has guaranteed the following Indebtedness of MoviePass:

 

	 	1.	The payment obligations of MoviePass to salesforce.com under that certain Master Subscription Agreement by and between salesforce.com and MoviePass in the aggregate amount of $860,000.
	 	2.	The payment obligations of MoviePass to Zuora, Inc. under that certain Zuora Master Subscription Agreement, dated July 31, 2018, by and between Zuora, Inc. and MoviePass in the aggregate amount of $500,000.
	 	3.	The payment obligations of MoviePass to Worldpay, LLC under that certain Bank Card Merchant Agreement by and between Worldpay, LLC and MoviePass in the aggregate amount of $1,200,000.

  

     

     

    

 

Schedule 2.15

 

On September 20, 2018 Yu Chen, derivatively
on behalf of the Company, filed a derivative action in the Supreme Court of the State of New York against the Company as a nominal
defendant and its executive officers, Theodore Farnsworth and Stuart Benson, and its directors Muralikrishna Gadiyaram, Prathap
Singh, Gavriel Ralbag and Carl Schramm. The complaint alleges breaches of fiduciary duties as directors and/or officers of the
Company and unjust enrichment.Exhibit 4.1

 

PERSHING
GOLD CORPORATION

 

and

 

AMERICAS
SILVER CORPORATION

 

 

 

convertible
SECURED debenture

 

October 1, 2018

  

 

 

     

     

    

 

TABLE OF CONTENTS

 

	Article 1 payment ETC.	1
	 	 	 
	Section 1.1	Principal Amount; Funding	1
	Section 1.2	Interest	2
	Section 1.3	Taxes	3
	Section 1.4	Mandatory Prepayment upon Termination of the Merger Agreement	3
	Section 1.5	Manner of Election of Conversion Option	5
	Section 1.6	Fees and Expenses	5
	Section 1.7	Security	5
	 	 	 
	Article 2 INTERPRETATION	5
	 	 	 
	Section 2.1	Definitions	5
	Section 2.2	Interpretation	10
	Section 2.3	Currency	10
	Section 2.4	Accounting Terms	10
	 	 	 
	Article 3 CONDITIONS PRECEDENT TO FUNDING	11
	 	 	 
	Section 3.1	Conditions Precedent to Funding the Initial Drawn Amount	11
	Section 3.2	Conditions Precedent to Subsequent Fundings	12
	 	 	 
	Article 4 REPRESENTATIONS AND WARRANTIES	12
	 	 	 
	Section 4.1	Representations and Warranties of the Company	12
	Section 4.2	Representations and Warranties and Acknowledgements of the Holder	15
	 	 	 
	Article 5 COVENANTS	17
	 	 	 
	Section 5.1	Positive Covenants	17
	Section 5.2	Negative Covenants	20
	 	 	 
	Article 6 CONVERSION OF DEBENTURE	22
	 	 	 
	Section 6.1	Holder Conversion Option	22
	Section 6.2	Manner of Exercise of Conversion Option	22
	Section 6.3	Dividends	22
	Section 6.4	Fractional Shares	23
	Section 6.5	Adjustment	23
	 	 	 
	Article 7 EVENTS OF DEFAULT	24
	 	 	 
	Section 7.1	Events of Default	24
	Section 7.2	Remedies	26
	 	 	 
	Article 8 MISCELLANEOUS	26
	 	 	 
	Section 8.1	No U.S. Registration	26

 

     

     

    

 

	Section 8.2	Lost, Stolen, Mutilated or Destroyed Debenture	26
	Section 8.3	Waiver; Cumulative Remedies	27
	Section 8.4	Holder May Remedy Default	27
	Section 8.5	Notices, etc.	27
	Section 8.6	Equitable Relief	28
	Section 8.7	Entire Agreement	28
	Section 8.8	No Third-Party Beneficiaries	28
	Section 8.9	Successors and Assigns, etc.	28
	Section 8.10	Governing Law.	29
	Section 8.11	Waiver of Jury Trial	29
	Section 8.12	Counterparts	29
	Section 8.13	Severability	29
	Section 8.14	Further Assurances	30
	Section 8.15	No Strict Construction	30

 

	Appendix 1	Election Notice
	 	 
	Appendix 2	Map of Relief Canyon Mine

 

     

     

    

 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION,
THE HOLDER OF THIS CONVERTIBLE SECURED DEBENTURE MUST NOT TRADE SUCH CONVERTIBLE SECURED DEBENTURE BEFORE THE DATE THAT IS 4 MONTHS
AND A DAY AFTER THE DATE OF THIS CONVERTIBLE SECURED DEBENTURE.

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”),
OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF
THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE
COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, AND IN COMPLIANCE
WITH LOCAL LAWS AND REGULATIONS, OR (C) IN ACCORDANCE WITH AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT, IF APPLICABLE
AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

CONVERTIBLE SECURED DEBENTURE

 

	$4,000,000 (being the maximum Principal Amount that may be advanced hereunder)	October 1, 2018

 

Article 1

payment ETC.

 

	Section 1.1	Principal Amount; Funding

 

		(a)	Principal Amount. Subject to the terms and conditions herein (i) Pershing Gold Corporation
(the “Company”), a Nevada corporation, hereby promises to pay the Repayment Amount (as defined below) to the
order of Americas Silver Corporation, a corporation formed under the Canada Business Corporations Act (the “Holder”)
on the Maturity Date (as defined below), or on such earlier date as the Repayment Amount hereof may become due in accordance with
the terms and conditions herein; and (ii) the Holder hereby acknowledges its obligation to fund the Principal Amount on or after
the date hereof in accordance with the terms and conditions herein. The Holder shall keep a record of the Principal Amount advanced
pursuant to this Debenture (as defined below), all accrued and unpaid interest and all payments of principal, interest and fees
hereunder from time to time and such record shall constitute prima facie evidence of the Repayment Amount of the Obligations from
time to time, absent manifest error.

 

		(b)	Request for Funding. To request an advancement of all or a portion of the Principal Amount
under this Debenture (the “Borrowing Request”), the Company shall notify the Holder of such request by telephone
or other electronic communication acceptable to the Holder, not later than 12:00 noon, Denver, Colorado time, five (5) Business
Days immediately prior to the date of the proposed Funding Date (as defined below), other than with respect to the Initial Drawn
Amount, the advancement of which shall occur on the effective date of this Debenture and for which such Borrowing Request shall
be deemed to have been delivered on the effective date hereof. Each such telephonic or other electronic Borrowing Request shall
be irrevocable and shall be confirmed promptly by hand delivery, telecopy or other electronic communication to the Holder of a
written Borrowing Request signed by the Company. Each such telephonic and written Borrowing Request shall specify the following
information:

 

     

     

    

  

		(i)	the aggregate amount of the funds requested, which shall be in increments of $100,000 and shall
in no event exceed $4,000,000 of Principal Amount in the aggregate;

 

		(ii)	the Funding Date of the funds requested, which shall be a Business Day; and

 

		(iii)	the location and number of the Company’s account to which funds are to be disbursed.

 

	Section 1.2	Interest

 

		(a)	Interest on the Drawn Amount at the rate of sixteen percent (16.00%) per annum shall accrue and
compound monthly from and after the date of the funding of the Drawn Amount (as applicable, the “Funding Date”),
and shall be paid in arrears in cash on the earlier of the Maturity Date and the date of conversion pursuant to Article 6,
subject to the terms of this Debenture; provided that, if any amount due hereunder is not paid when due, whether on maturity,
by acceleration or otherwise, or at any time following the exercise of the Extension Option (as defined below) by the Company and
until the extended Maturity Date, interest on the Drawn Amount shall accrue and compound monthly at the rate of nineteen percent
(19.00%) per annum.

 

		(b)	All computations of interest shall be made on the basis of a year of 365 or 366 days, as the case
may be, taking into account the actual number of days (including the first day but excluding the last day) occurring in the period
for which such interest is payable.

 

		(c)	For purposes of the Interest Act (Canada), (i) whenever any interest or fee under this Debenture
is calculated using a rate based on a number of days less than a full year, such rate determined pursuant to such calculation,
when expressed as an annual rate, is equivalent to (A) the applicable rate, (B) multiplied by the actual number of days in the
calendar year in which the period for which such interest or fee is payable (or compounded) ends, and (C) divided by the number
of days comprising such calculation basis; (ii) the principle of deemed reinvestment of interest does not apply to any interest
calculation under this Debenture; and (iii) the rates of interest stipulated in this Debenture are intended to be nominal rates
and not effective rates or yields.

 

		(d)	No provision of this Debenture shall have the effect of requiring the Company to pay interest (as
such term is defined in section 347 of the Criminal Code (Canada)) at a rate in excess of 60% per annum, taking into account
all other amounts which must be taken into account for the purpose thereof and, to such extent, the Company’s obligation
to pay interest hereunder shall be so limited.

 

    	 	- 2 -	 

     

    

  

	Section 1.3	Taxes

 

		(a)	Payments Subject to Taxes. If any Obligor or the Holder is required by applicable law to
deduct or pay any Taxes (other than any Taxes payable by the Holder which are imposed on or measured by its net income (the “Excluded
Taxes”)) in respect of any payment by or on account of any obligation of an Obligor hereunder or under any other Loan
Document, then (i) the sum payable shall be increased by that Obligor when payable as necessary so that after making or allowing
for all required deductions and payments (including deductions and payments applicable to additional sums payable under this Section)
the Holder receives an amount equal to the sum it would have received had no such deductions or payments been required, (ii) the
Obligor shall make any such deductions required to be made by it under applicable law and (iii) the Obligor shall timely pay the
full amount required to be deducted to the relevant Governmental Authority in accordance with applicable law. The Obligors shall
indemnify the Holder, within ten (10) days after demand therefor, for the full amount of any Taxes (other than any Taxes payable
by the Holder which are imposed on or measured by its net income), including, without limitation, Taxes imposed or asserted on
or attributable to amounts payable under this Section 1.3) paid by the Holder and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Company or other relevant
Obligor by the Holder shall be conclusive absent manifest error.

 

		(b)	Payment of Other Taxes by the Company. Without limiting the provisions of Section 1.3(a),
the Obligors shall timely pay all present or future stamp or documentary taxes or any other excise or property taxes, charges or
similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement
of, or otherwise with respect to, this Debenture or any other Loan Document to the relevant Governmental Authority in accordance
with applicable law.

 

		(c)	Indemnification by the Company. The Company shall indemnify the Holder, within ten (10)
days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including, without limitation, Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by the Holder and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment
or liability delivered to the Company by the Holder shall be conclusive absent manifest error.

 

	Section 1.4	Mandatory Prepayment upon Termination of the Merger Agreement

 

In the event the Merger
Agreement is terminated in accordance with its terms, the outstanding Drawn Amount plus any accrued and unpaid interest (collectively,
the “Repayment Amount”), will become due and payable on the following terms and conditions:

 

		(a)	The Repayment Amount shall, at the Company’s option (the “Election”),
either (I) be payable in cash; or (II) convert into Common Shares at the Conversion Price (the “Conversion”)
in the following circumstances:

 

    	 	- 3 -	 

     

    

  

		(i)	if the Purchaser Meeting is held and the Purchaser Meeting Resolutions are not approved by the
Purchaser Stockholders and the Merger Agreement is terminated in accordance with Section 6.1(b)(iv) of the Merger Agreement;

 

		(ii)	if any Law is enacted, made, enforced or amended, as applicable, that makes the completion of the
Merger or the transactions contemplated by the Merger Agreement illegal or otherwise prohibited, and such Law has become final
and non-appealable and the Merger Agreement is terminated in accordance with Section 6.1(b)(v) of the Merger Agreement; or

 

		(iii)	if the Holder breaches any of its representations, warranties, covenants or agreements contained
in the Merger Agreement and the Merger Agreement is terminated in accordance with Section 6.1(d)(iii) of the Merger Agreement.

 

		(b)	For greater certainty, the aggregate number of Common Shares that may be issued pursuant to Section
1.4(a) shall not exceed 19.9% of the total issued and outstanding Common Shares as of the date of this Debenture. In the event
the full Repayment Amount cannot be converted to Common Shares as a result of this Section 1.4(b), any remaining portion of the
Repayment Amount not so converted into Company Shares shall be payable in cash within 90 days of becoming due and payable.

 

		(c)	In such cases where the Repayment Amount becomes due and payable pursuant to Section 1.4(a), the
Company shall make the Election by notice to the Holder within 30 days following termination of the Merger Agreement, and repayment
shall occur within 60 days of such notice but in any event within 90 days of such termination under Section 1.4.

 

		(d)	The Repayment Amount shall be payable in cash in the following circumstances:

 

		(i)	if the Company Meeting is held and the Merger Resolution is not approved by the Company Common
Stockholders and the Merger Agreement is terminated in accordance with Section 6.1(b)(ii) of the Merger Agreement;

 

		(ii)	if the Company Meeting is held and the Merger Resolution is not approved by the Company Preferred
Stockholders and the Merger Agreement is terminated in accordance with Section 6.1(b)(iii) of the Merger Agreement;

 

		(iii)	if the Company breaches any of its representations, warranties, covenants or agreements contained
in the Merger Agreement and the Merger Agreement is terminated in accordance with Section 6.1(c)(iii) of the Merger Agreement;

 

		(iv)	if the Company makes a Company Change of Recommendation and the Merger Agreement is terminated
in accordance with Section 6.1(c)(i) of the Merger Agreement;

 

		(v)	if the Board approves and authorizes the Company to enter into a definitive agreement providing
for the implementation of a Company Superior Proposal and the Merger Agreement is terminated in accordance with Section 6.1(d)(v)
of the Merger Agreement; or

 

    	 	- 4 -	 

     

    

  

		(vi)	if the Merger is not completed by the Outside Date and the Merger Agreement is terminated in accordance
with Section 6.1(b)(i) of the Merger Agreement.

 

		(e)	In such cases where the Repayment Amount becomes due and payable pursuant to Section 1.4(d)(i),
(ii), (iii) or (vi), such repayment shall occur within 90 days thereof. In such cases where the Repayment Amount becomes due and
payable pursuant to Section 1.4(d)(iv) or (v), such repayment shall occur within 10 days thereof.

 

		(f)	Notwithstanding the definition of “Repayment Amount” pursuant to Section 1.4, in the
event that the Repayment Amount becomes due and payable pursuant to Section 1.4(b)(v), the Repayment Amount will be calculated
as an amount equal to 106% of the Drawn Amount plus all accrued and unpaid interest on the Drawn Amount so prepaid, up to and including
the redemption date.

 

	Section 1.5	Manner of Election of Conversion Option

 

The Holder shall be
entered in the books of the Company at the date of the Conversion as the holder of the number of Common Shares issuable in respect
of the Repayment Amount which the Company has elected to convert and, as soon as reasonably practicable, the Company shall deliver
to the Holder a certificate or certificates representing such Common Shares.

 

	Section 1.6	Fees and Expenses

 

The Obligors shall
pay all reasonable legal counsel expenses incurred by the Holder in connection with this Debenture and the other Loan Documents
and the funding provided for hereunder, the amount of which expenses payable by the Obligors shall in no event exceed $85,000 (exclusive
of taxes). The Obligors shall pay all reasonable and documented out-of-pocket expenses incurred by the Holder in connection with
this Debenture and the other Loan Documents or incurred during any workout, restructuring or negotiations in respect thereof.

 

	Section 1.7	Security

 

To secure payment of
the Obligations , the Company and each of the other Obligors shall enter into the Security Documents in accordance with the terms
and conditions set out herein.

 

Article 2

INTERPRETATION

 

	Section 2.1	Definitions

 

As used in this Debenture,
the following terms have the following meanings:

 

“Affiliate”
means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, controls
or is controlled by, or is under common control with, the Person specified.

 

“Board” means
the board of directors of the Company.

 

“Borrowing Request”
has the meaning given thereto in Section 1.1(b).

 

    	 	- 5 -	 

     

    

  

“Business Day”
has the meaning given thereto in the Merger Agreement.

 

“Charter Documents”
has the meaning given thereto in the Merger Agreement.

 

“Common Shares”
means the Company Common Stock, as such term is defined in the Merger Agreement.

 

“Company”
has the meaning given thereto in Section 1.1.

 

“Company Change of Recommendation”
has the meaning given thereto in the Merger Agreement.

 

“Company Common Stockholders”
has the meaning given thereto in the Merger Agreement.

 

“Company Disclosure
Letter” has the meaning given thereto in the Merger Agreement.

 

“Company Key Regulatory
Approvals” has the meaning given thereto in the Merger Agreement.

 

“Company Meeting”
has the meaning given thereto in the Merger Agreement.

 

“Company Common Stockholders”
has the meaning given thereto in the Merger Agreement.

 

“Company Preferred Stockholders”
has the meaning given thereto in the Merger Agreement.

 

“Company Public Disclosure
Record” has the meaning given thereto in the Merger Agreement.

 

“Company Superior Proposal”
has the meaning given thereto in the Merger Agreement.

 

“Company Technical Report”
has the meaning given thereto in the Merger Agreement.

 

“Conversion Option”
has the meaning given thereto in Section 6.1.

 

“Conversion Price”
means the volume weighted average price of the Common Shares on NASDAQ for the five trading days immediately preceding the date
of the exercise of the Election by the Company, provided that the Conversion Price shall in no event be lower than $1.18.

 

“Corporate Transaction”
means any transaction whereby all or substantially all of a corporation’s undertaking, property, securities or assets would
become the property of any other Person whether by way of arrangement, reorganization, consolidation, amalgamation, takeover bid,
merger, continuance under any other jurisdiction of incorporation or otherwise.

 

“Debenture”
means this convertible secured debenture, as may be amended or restated from time to time.

 

“Debt” means,
with respect to any Person, without duplication and, except as provided in item (c) below, without regard to any interest component
thereof (whether actual or imputed) that is not due and payable, the following amounts, each calculated in accordance with GAAP:

 

    	 	- 6 -	 

     

    

  

		(a)	indebtedness for borrowed money (including, without limitation, by way of overdraft) or indebtedness
represented by notes payable and drafts accepted representing extensions of credit;

 

		(b)	all obligations in respect of the deferred purchase price of property or services;

 

		(c)	the face amount of all bankers’ acceptances;

 

		(d)	the stated amount of all letters of credit, and reimbursement obligations with respect to letters
of credit and with respect to letters of guarantee and surety bonds;

 

		(e)	all obligations that are evidenced by bonds, debentures, notes or other similar instruments, or
that are not so evidenced but would be considered by GAAP to be indebtedness for borrowed money;

 

		(f)	all capital lease and purchase money obligations;

 

		(g)	all mandatory obligations of such Person to purchase, redeem, retire, defease or otherwise acquire
for value (other than for shares) any shares of such Person at the option of the holder thereof or pursuant to a sinking fund obligation,
valued, in the case of redeemable or retractable shares, at the greater of voluntary or involuntary redemption price, plus accrued
and unpaid dividends;

 

		(h)	the net amount of obligations of such Person (determined on a mark-to-market basis) under any hedging
agreements; and

 

		(i)	any guarantee or indemnity (other than by endorsement of negotiable instruments for collection
or deposit in the ordinary course of business) in any manner of any part or all of an obligation included in items (a) through
(h) above.

 

but excluding for greater certainty
current accounts payable and trade payables incurred in the ordinary course of business. For further greater certainty, the stated
amount of a letter of credit or any other letter of credit or guarantee shall not be included to the extent that the obligation
in respect of which it has been issued is included in one of items (a) to (h) above.

 

“Default”
means any event or condition that constitutes an Event of Default or that would constitute an Event of Default except for satisfaction
of any condition subsequent required to make the event or condition an Event of Default, including giving of any notice, passage
of time, or both.

 

“Distribution”
means, in respect of any Person, (a) any dividend, return of capital or other distribution on capital stock of such Person, (b)
the purchase, redemption or retirement amount of any capital stock of the Person redeemed or purchased by the Person, (c) any payment
made on, under or in respect of any Debt of the Person, including interest, sinking fund or any like payment, and (d) any payment
made in respect of any management, consulting or similar fee or any bonus payment or comparable payment, or gift or other gratuity,
to any Affiliate of such Person or to any director or officer of such Person or Affiliate of such Person, or to any Person not
dealing at arm’s length with such first Person or Affiliate, director or officer.

 

    	 	- 7 -	 

     

    

  

“Drawn Amount”
means at any time, the portion of the Principal Amount outstanding and owing under this Debenture from time to time, which shall,
for the avoidance of doubt, not include any accrued and unpaid interest, fees, costs, charges and expenses then due and owing under
this Debenture, except to the extent such accrued and unpaid interest has been compounded on a monthly basis.

 

“Event of Default”
has the meaning specified in Section 7.1.

 

“Extension Option”
means an option in favour of the Company to extend the Maturity Date from June 1, 2019 to September 1, 2019, which option may be
exercised by the Company by delivery of a notice in writing to the Holder by no later than February 1, 2019, provided that the
Extension Option is not available if the Merger Agreement has been terminated.

 

“Funding Date”
has the meaning given thereto in Section 1.2(a).

 

“GAAP” means
United States generally accepted accounting principles.

 

“Governmental Authority”
has the meaning set forth in the Merger Agreement.

 

“Holder” has
the meaning specified in Section 1.1 and includes the Holder’s successors and assigns.

 

“Indemnified Taxes”
means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by the Company under any Loan Document
and (b) to the extent not otherwise described in (a), Other Taxes.

 

“Initial Drawn Amount”
means a portion of the Principal Amount not exceeding $1,000,000.

 

“Law” has
the meaning set forth in the Merger Agreement.

 

“Lien” has
the meaning given thereto in the Merger Agreement.

 

“Loan Documents”
means this Debenture, the Security Documents and all other documents to be executed and delivered to the Holder in connection with
this Debenture.

 

“Material Adverse Effect”
means a Company Material Adverse Effect, as such term is defined in the Merger Agreement.

 

“Maturity Date”
means, at any relevant time, (i) if the Company has not exercised the Extension Option, June 1, 2019, or (ii) if the Company has
exercised the Extension Option, September 1, 2019, in each case provided that the Repayment Amount shall not have been fully converted
into Common Shares at such time and subject to acceleration upon an Event of Default and any mandatory prepayments required pursuant
to the terms hereof.

 

“Merger” has
the meaning given thereto in the Merger Agreement.

 

“Merger Agreement”
means the Agreement and Plan of Merger dated September 28, 2018, by and among the Holder, MergerSub and the Company, as it may
be further amended, amended and restated, supplemented or otherwise modified from time to time in accordance with its terms.

 

    	 	- 8 -	 

     

    

  

“Merger Resolution”
has the meaning given thereto in the Merger Agreement.

 

“MergerSub”
means R Merger Sub, Inc., a Nevada corporation.

 

“NASDAQ”
means the The Nasdaq Stock Market LLC.

 

“Obligations”
means all debts, liabilities and obligations, present or future, direct or indirect, absolute or contingent, matured or unmatured,
at any time or from time to time due or accruing due and owing by or otherwise payable by the Company or any other Obligor to the
Holder under this Debenture and the other Loan Documents, including, but not limited to the Repayment Amount.

 

“Obligors”
means the Company and each of its Subsidiaries.

 

“Other Taxes”
means any and all present or future stamp, court, recording, filing, intangible, documentary or similar Taxes or any other excise
or property Taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the
execution, delivery or enforcement or registration of, or performance under, or from the receipt or perfection of a security interest
under or otherwise with respect to this Debenture or any other Loan Document (other than Excluded Taxes imposed with respect to
an assignment).

 

“Outside Date”
has the meaning given thereto in the Merger Agreement.

 

“Permitted Debt”
has the meaning given thereto in Section 5.2(a).

 

“Permitted Liens”
means Company Permitted Liens, as such term is defined in the Merger Agreement.

 

“Person” means
any natural person, individual, body corporate, firm, general partnership, limited partnership, limited liability company, syndicate
or other form of unincorporated association, trust, trustee, executor, administrator, legal personal representative, group, organization,
government and its agencies or instrumentalities, any entity or group whether or not having legal personality.

 

“Principal Amount”
means the face amount of this Debenture, being $4,000,000.

 

“Purchaser Meeting”
has the meaning given thereto in the Merger Agreement.

 

“Purchaser Meeting Resolutions”
has the meaning given thereto in the Merger Agreement.

 

“Purchaser Stockholders”
has the meaning given thereto in the Merger Agreement.

 

“Relief Canyon Mine”
means the Relief Canyon property shown within the boundary of the map attached as Appendix 2 hereto.

 

“Repayment Amount”
has the meaning given thereto in Section 1.4.

 

“Reporting Jurisdictions”
means the jurisdictions in Canada in which the Company is a “reporting issuer” being as at the date hereof, each of
the provinces and territories of Canada other than Québec.

 

    	 	- 9 -	 

     

    

  

“Security Documents”
means the agreements described in Section 3.1(b)(ii) and (iii) and Section 5.1(a)(i) through (iii).

 

“Subsidiary” has
the meaning given thereto in the Merger Agreement.

 

“Tax” or “Taxes”
has the meaning given thereto in the Merger Agreement.

 

“TSX” means
the Toronto Stock Exchange.

 

“United States”
means the United States of America, its territories and possessions, any state of the United States and the District of Columbia.

 

“U.S. Securities Act”
means the United States Securities Act of 1933, as amended.

 

	Section 2.2	Interpretation

 

When a reference is
made in this Debenture to an Article, Section, paragraph or clause such reference shall be to an Article, Section, paragraph or
clause of this Debenture unless otherwise indicated. The table of contents and headings contained in this Debenture are for convenience
of reference purposes only and shall not affect in any way the meaning or interpretation of this Debenture. All words used in this
Debenture will be construed to be of such gender or number as the circumstances requires. The word “including” and
words of similar import when used in this Debenture will mean “including, without limitation” unless otherwise specified.
The words “hereof”, “hereto”, “hereby”, “herein” and “hereunder” and
words of similar import when used in this Debenture shall refer to this Debenture as a whole and not to any particular provision
of this Debenture. The term “or” is not exclusive. The word “extent” in the phrase “to the extent”
shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”. The word
 “will” shall be construed to have the same meaning and effect as the word “shall”. The words “assets”
and “properties” shall be deemed to have the same meaning, and to refer to all assets and properties, whether real
or personal, tangible or intangible. Any agreement, instrument or Law defined or referred to herein means such agreement, instrument
or Law as from time to time amended, modified or supplemented, unless otherwise specifically indicated. References to a Person
are also to its permitted successors and assigns.

 

	Section 2.3	Currency

 

Unless otherwise specifically
indicated, all references to “dollars” and “$” will be deemed references to the lawful money of the United
States.

 

	Section 2.4	Accounting Terms

 

All accounting terms
not specifically defined in this Debenture shall be interpreted in accordance with GAAP.

 

    	 	- 10 -	 

     

    

  

Article 3

CONDITIONS PRECEDENT TO FUNDING

 

	Section 3.1	Conditions Precedent to Funding the Initial Drawn Amount

 

The obligation of the
Holder to fund the Initial Drawn Amount is subject to the satisfaction of the following conditions precedent, or the waiver thereof
in the Holder’s sole and absolute discretion:

 

		(a)	evidence of approval of this Debenture and the transactions contemplated hereby by the Board;

 

		(b)	receipt by the Holder of duly executed copies of the following documents:

 

		(i)	this Debenture;

 

		(ii)	a general security agreement by each Obligor in favour of the Holder, granting a first-ranking
security interest in all of such Obligor’s present and future assets, undertakings and property, to the fullest extent permitted
by the instrument creating such Obligor’s rights therein, in such form as the Holder or its counsel may reasonably require;
and

 

		(iii)	a  guarantee and postponement of claim made by each Obligor (other than the Company) whereby
it guarantees to the Holder payment of all present and future indebtedness and liability now or in the future owing by the Company
pursuant to this Debenture and the other Loan Documents;

 

		(c)	filing of a UCC-1 Financing Statement in favour of the Holder with the Secretary of State of the
State of Nevada;

 

		(d)	receipt by the Holder of a certificate of status, good standing or like certificate with respect
to each Obligor issued by the appropriate government official in the jurisdiction of its incorporation or formation;

 

		(e)	all of the representations and warranties contained in any Loan Document shall be true and correct
in all material respects on and as of the applicable Funding Date as though made on and as of such date, and the Holder shall have
received a certificate of an officer of the Company so certifying to the Holder;

 

		(f)	there shall have occurred no Default or Event of Default that is continuing, and the Holder shall
have received a certificate of an officer of the Company so certifying to the Holder;

 

		(g)	there shall not have occurred any Material Adverse Effect; and

 

		(h)	evidence that all fees and expenses (including the legal fees and disbursements of the Holder’s
counsel incurred in connection with the preparation and negotiation of the Loan Documents, subject to the limitations set forth
in Section 1.6) then payable under the Loan Documents shall have been paid to the Holder.

 

    	 	- 11 -	 

     

    

  

	Section 3.2	Conditions Precedent to Subsequent Fundings

 

The obligation of the
Holder to fund any portion of the Principal Amount after the Funding of the Initial Drawn Amount is subject to the satisfaction
of the following conditions precedent, or the waiver thereof in the Holder’s sole and absolute discretion:

 

		(a)	receipt by the Holder of a Borrowing Request;

 

		(b)	all of the representations and warranties contained in any Loan Document shall be true and correct
in all material respects on and as of the applicable Funding Date as though made on and as of such date, and, if requested in writing
by the Holder, the Holder shall have received a certificate of an officer of the Company so certifying to the Holder;

 

		(c)	there shall have occurred no Default or Event of Default that is continuing, and, if requested
in writing by the Holder, the Holder shall have received a certificate of an officer of the Company so certifying to the Holder;

 

		(d)	there shall not have occurred any Material Adverse Effect.

 

Article 4

REPRESENTATIONS AND WARRANTIES

 

	Section 4.1	Representations and Warranties of the Company

 

The Company (on its
own behalf and on behalf of each of the other Obligors) represents and warrants to the Holder, with effect as of the date hereof,
and acknowledges and confirms that the Holder is relying thereon without independent inquiry in funding the Principal Amount hereunder,
that:

 

		(a)	Incorporation and Qualification. Each Obligor is (i) a corporation, limited liability company
or other legal entity duly formed and is validly existing under the Laws of its jurisdiction of organization and (ii) is duly qualified,
licensed or registered to carry on business under applicable Law in all jurisdictions in which the nature of its assets or business
makes such qualification necessary, except where the failure to be so qualified or licensed, or to be in good standing, would not
have a Material Adverse Effect.

 

		(b)	Corporate Power. Each Obligor has all requisite corporate, limited liability company or
other organizational, as applicable, power and authority to (i) own and operate its assets and to carry on its business as now
conducted; and (ii) to enter into and perform its obligations under this Debenture and the other Loan Documents to which it is
a party.

 

		(c)	Conflict With Other Instruments. The execution and delivery of the Loan Documents by each
Obligor which is a party thereto and the performance by each Obligor of its respective obligations under them and compliance with
the terms, conditions and provisions thereof, will not (i) conflict with or result in a breach of any of the terms, conditions
or provisions of (A) its Charter Documents, (B) any applicable Law, (C) any material contractual restriction binding on or affecting
it or its properties, including any restriction under any of its other Debt, or (D) any judgment, injunction, determination or
award which is binding on it; or (ii) result in, require or permit (A) the imposition of any Lien in, on or with respect to the
assets now owned or hereafter acquired by it (other than a Permitted Lien), (B) the acceleration of the maturity of any Debt binding
on or affecting it, or (C) any third party to terminate or acquire any rights materially adverse to the applicable Obligor.

 

    	 	- 12 -	 

     

    

  

		(d)	Authorization, Governmental Approvals, etc. The execution and delivery of each of the Loan
Documents by each Obligor which is a party to them and the performance by each of them of its respective obligations hereunder
and thereunder have been duly authorized by all necessary corporate action and no authorization, under any applicable Law, and
no registration, qualification, designation, declaration or filing with any Governmental Authority is or was necessary to perfect
the same, except as are in full force and effect, unamended.

 

		(e)	Execution and Binding Obligation. This Debenture has been duly executed and delivered by
the Company and, and assuming due execution and delivery by the Holder, following execution thereof, each of the other Loan Documents
executed and delivered by each Obligor, constitute legal, valid and binding obligations of each of them, enforceable against it
in accordance with their respective terms, subject only to any limitation under applicable Law relating to (i) bankruptcy, insolvency,
reorganization, moratorium or creditors’ rights generally; and (ii) the discretion that a court may exercise in the granting
of equitable remedies.

 

		(f)	Ownership of Property. Each Obligor owns its respective assets with good and marketable
title thereto, free and clear of all Liens, except for Permitted Liens.

 

		(g)	Compliance with Laws. Each Obligor is in compliance in all material respects with all applicable
Laws.

 

		(h)	Subsidiaries, etc. Schedule 1.1(d) of the Company Disclosure Letter lists each of the subsidiaries
of the Company as of the date of the Merger Agreement and its place of incorporation or organization. The Company, directly or
indirectly, owns 100% of the outstanding equity securities of each subsidiary of the Company. Other than the Company Preferred
Stock, Company Restricted Stock, Company Options, Company RSUs, and the Company Warrants (in each case, as defined in the Merger
Agreement) as of the date of the Merger Agreement, no Person has an agreement or option or any other right or privilege (whether
by law, pre-emptive or contractual) capable of becoming an agreement or option, including convertible securities, warrants or convertible
obligations of any nature, for the purchase, subscription, allotment or issuance of any capital stock or other equity interests
of any Obligor. None of the Obligors is the registered or beneficial owner of any capital stock or other equity interest of a Person
that is not a Subsidiary of such Obligor.

 

		(i)	No Litigation. Except as disclosed in the Company Public Disclosure Record, there are no
claims, actions, suits or proceedings pending, taken or, to the Company’s knowledge, threatened, before or by any Governmental
Authority or by any elected or appointed public official or private person in Canada or elsewhere, whether or not having the force
of law, in each case, except such claims, actions, suits or proceedings that: (i) do not involve an amount in controversy in excess
of $250,000; and (ii) would not reasonably be expected to have a Material Adverse Effect. No applicable Law which may affect any
Obligor has been enacted, promulgated or applied, or to the knowledge of the Company, has been proposed, in each case, which could
reasonably be expected to have a Material Adverse Effect.

 

    	 	- 13 -	 

     

    

  

		(j)	No Judgments. None of the Obligors is subject to any judgment, order, writ, injunction,
decree or award, or to any restriction, rule or regulation (other than customary or ordinary course restrictions, rules and regulations
consistent or similar with those imposed on other Persons engaged in similar businesses) which restrains, prohibits or delays the
execution and delivery of the Loan Documents.

 

		(k)	Validity, Priority and Perfection of Security. Upon execution and delivery thereof, the
Security Documents will be effective to create a valid and continuing Lien on and, upon the filing of the appropriate financing
statements or other applicable personal property security registrations and filings, a perfected first-priority Lien in favour
of the Holder on the collateral with respect to which a security interest may be perfected by filing pursuant to personal property
security legislation in all applicable jurisdictions.

 

		(l)	Taxes. Each Obligor has in a timely manner filed all material tax returns, elections, filings
and reports required by law to be filed by it and such returns, elections, filings and reports are true, complete and correct in
all material respects. Each Obligor has paid, or reserved in its financial statements, all material Taxes which are due and payable,
and has paid all material assessments and reassessments and all other material Taxes, governmental charges, penalties and fines
due and payable by it other than those being contested in good faith and for which applicable reserves have been set aside by the
applicable Obligor. None of the Obligors has any material liability, contingent or otherwise, except material Taxes now due and
payable with respect to ordinary operations during the current fiscal period, adequate provision for the payment of which has been
made, other than those being contested in good faith and for which applicable reserves have been set aside by the applicable Obligor.

 

		(m)	Insurance. Each Obligor’s material assets are insured in accordance with the provisions
of Section 5.1(j).

 

		(n)	Accuracy of Information. Neither the financial statements delivered to the Holder from time
to time, nor any other written statement furnished by or on behalf of or at the direction of any Obligor to the Holder in connection
with the negotiation, consummation or administration of this Debenture contain, as of the time such statements were so furnished,
any untrue statement of a material fact or an omission of a material fact as of such time, which material fact is necessary to
make the statements contained therein, in the light of the circumstances under which they were made, not misleading and all such
statements, taken as a whole, together with this Debenture, do not contain any untrue statement of a material fact or omit a material
fact necessary to make the statements contained herein or therein, in the light of the circumstances under which they were made,
not misleading.

 

		(o)	Full Disclosure. All information furnished by or on behalf of the Obligors to the Holder
for purposes of, or in connection with, this Debenture or any other Loan Document, or any other transaction contemplated by this
Debenture, including any information furnished in the future, is or will be true and accurate in all material respects on the date
as of which such information is dated or certified, and not incomplete by omitting to state any material fact necessary to make
such information not misleading at such time in light of then-current circumstances. There is no fact now known to any of the Obligors
which has had, or could reasonably be expected to have, a Material Adverse Effect.

 

    	 	- 14 -	 

     

    

  

	Section 4.2	Representations and Warranties and Acknowledgements of the Holder

 

		(1)	In connection with the issuance of this Debenture, the Holder specifically represents, as of the
date hereof, to the Company by acceptance of this Debenture as follows:

 

		(a)	Accredited Investor. The Holder is an “accredited investor” as defined in National
Instrument 45-106 – Prospectus Exemptions. The Holder agrees to furnish any information and documentation reasonably
requested by the Company to assure compliance with the applicable securities laws in connection with delivery of this Debenture.

 

		(b)	Resale Restriction. The Holder understands and acknowledges that this Debenture and the
Shares to be issued upon exercise hereof are subject to the restricted period set forth in subsection 2.5 of National Instrument
45-102 – Resale of Securities (“NI 45-102”) as they are being acquired from the Company in a transaction
not involving a public offering and that such securities may be resold without a prospectus under applicable securities laws only
in certain limited circumstances. In addition, the Holder represents that it is familiar with NI 45-102 and understands the resale
limitations imposed by it and by other applicable securities laws.

 

		(c)	Capacity and Purpose. The Holder has the legal power, capacity and competence to execute
this Debenture and to perform its obligations and take all actions required pursuant hereto. The Holder has not been created solely
or primarily to use exemptions from the registration and prospectus exemptions under applicable securities laws and has a pre-existing
purpose other than to use such exemptions.

 

		(d)	Due Authorization and Legal Obligation.This Debenture has been duly and validly authorized,
executed and delivered by, and upon acceptance by the Company constitutes a legal, valid, binding and enforceable obligation of,
the Holder.

 

		(e)	US Securities Laws. The Holder represents and warrants or agrees and acknowledges, as applicable,
that:

 

		(i)	it is aware that the Debentures and the underlying Common Shares have not been and will not be
registered under the U.S. Securities Act or the securities laws of any state and that the Debentures and the underlying Common
Shares may not be offered or sold, directly or indirectly, in the United States without registration under the U.S. Securities
Act or compliance with requirements of an exemption from registration and the applicable laws of all applicable states or an exemption
from such registration requirements is available and it acknowledges that the Company has no present intention of filing a registration
statement under the U.S. Securities Act in respect of the Debentures or the underlying Common Shares.

 

    	 	- 15 -	 

     

    

 

		(ii)	the Debentures and the underlying Common Shares have not been offered to the Holder in the United
States, the Holder is not a U.S. Person and the individuals making the order to purchase the Holder and executing and delivering
this Debenture on behalf of the Holder were not in the United States when the order was placed and this Debenture was executed
and delivered;

 

		(iii)	it is not acquiring, and will not acquire, the Debentures and/or the underlying Common Shares on
behalf of, or for the account or benefit of, a person in the United States or a U.S. Person;

 

		(iv)	it is not acquiring the Debenture or the underlying Common Shares as a result of any “directed
selling efforts,” as such term is defined in Regulation S under the U.S. Securities Act, or in a scheme to evade the registration
requirements of the U.S. Securities Act;

 

		(v)	it undertakes and agrees that it will not offer or sell the Debenture or the underlying Common
Shares in the United States or to a U.S. Person unless the Debenture or the underlying Common Shares, as applicable, is registered
under the U.S. Securities Act and the securities laws of all applicable states of the United States or an exemption from such registration
requirements is available; and

 

		(vi)	that the Debenture may not be exercised by or on behalf of a U.S. Person or a person in the United
States unless an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws is
available to the holder and the holder has furnished such confirmatory information in form and substance reasonable satisfactory
to the Company to such effect.

 

		(2)	The Holder, by acceptance of this Debenture, agrees to comply in all respects with the provisions
of this Section 4.2 and the restrictive legend requirements set forth on the face of this Debenture and further agrees that such
Holder shall not offer, sell or otherwise dispose of this Debenture or any shares to be issued upon exercise hereof except under
circumstances that will not result in a violation of the applicable securities laws.

 

		(3)	Any certificate representing Common Shares issued upon the exercise of this Debenture shall bear
the following legends:

 

“UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS
AND A DAY AFTER OCTOBER 1, 2018.”

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK EXCHANGE (“TSX”); HOWEVER, THE SAID SECURITIES
CANNOT BE TRADED THROUGH THE FACILITIES OF THE TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESTNGING
SUCH SECURITIES IS NOT “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON THE TSX.”

 

    	 	- 16 -	 

     

    

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH
SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED,
DIRECTLY OR INDIRECTLY, ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER
THE U.S. SECURITIES ACT, AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, OR (C) IN ACCORDANCE WITH AN EXEMPTION FROM REGISTRATION
UNDER THE U.S. SECURITIES ACT, IF APPLICABLE AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.”

 

		(4)	The Holder acknowledges (i) the delivery to the Ontario Securities Commission of the Purchaser’s
full name, address and telephone number, the number and type of securities purchased by the Holder, the total purchase price, the
exemption relied on, and the date of distribution, (ii) that such information is being collected indirectly by the Ontario Securities
Commission under the authority granted to it in securities legislation, (iii) that such information is being collected for the
purposes of the administration and enforcement of the securities legislation of Ontario, and (iv) that the Administrative Support
Clerk at the Ontario Securities Commission, Suite 1903, Box 55, 20 Queen Street West, Toronto, Ontario M5H 3S8, telephone (416)
593-3684 can be contacted to answer questions about the Ontario Securities Commission’s indirect collection of such information.
The Holder hereby authorizes the indirect collection of such information by the Ontario Securities Commission.

 

Article 5

COVENANTS

 

	Section 5.1	Positive Covenants 

 

So long as this Debenture
remains outstanding, the Company shall and shall cause each of the other Obligors to:

 

		(a)	Security. On a best efforts basis, as soon as possible following the date hereof, and in
any event within twenty (20) days following the date hereof:

 

		(i)	execute and deliver, or cause to be executed and delivered, all such agreements, certificates,
instruments or powers of attorney to the Holder required to grant and perfect a first-priority security interest in the assets
comprising the Relief Canyon Mine, to the fullest extent permitted by the instrument creating the Obligor’s rights therein,
including but not limited to a Deed of Trust with Assignment of Rents and Leases, Fixture Filing and Security Agreement and a Leasehold
Deed of Trust, or a similar instrument;

 

		(ii)	execute and deliver a pledge agreement granting a first-priority security interest in 100% of the
Company’s ownership interest in each of the Company’s Subsidiaries;

 

		(iii)	deliver or cause to be delivered to the Holder the original share certificates of each of the Company’s
Subsidiaries, to the extent certificated, together with endorsements thereof executed in blank;

 

    	 	- 17 -	 

     

    

  

		(iv)	if requested in writing by the Holder, deliver or cause to be delivered to the Holder certificate(s)
of insurance evidencing that each Obligor has named the Holder as loss payee and additional insured in relation to all insurance
over, or in respect of, its assets in which the Holder has been granted a security interest, together with a standard mortgage
endorsement clause;

 

		(v)	deliver or cause to be delivered to the Holder a certificate of an officer of each Obligor attaching,
among other things, certified copies of (A) the Charter Documents of each Obligor; (B) the resolutions of the board of directors
(or where applicable, a committee thereof) or the shareholders or limited partners, as the case may be, of each Obligor approving
the execution of, and the borrowing, and other matters contemplated by this Debenture and approving the entering into of all other
Loan Documents to which it is a party, the grant of security provided for therein and the completion of all transactions contemplated
under them; (C) all other instruments evidencing necessary action or corporate action of each Obligor and of any required authorization
with respect to such matters; and (D) a certificate of incumbency in respect of any officer or director signing a Loan Document;
and

 

		(vi)	register or cause to be registered all financing statements in all necessary jurisdictions in favour
of the Holder in order to perfect, preserve or protect the Liens created by the Security Documents, to the extent such financing
statements have not been registered as of the date hereof.

 

		(b)	Legal Opinions. If requested in writing by the Holder, cause external legal counsel to such
Obligor to deliver to the Holder favourable legal opinions in respect of certain customary corporate, enforceability and registration
of security matters in form and substance satisfactory to the Holder and its counsel, acting reasonably.

 

		(c)	Reporting Requirements. Deliver to the Holder copies of all audited and unaudited financial
statements and associated management discussion & analysis within the timelines for the delivery thereof that are required
under applicable securities laws and regulations, provided that, the filing of such information on EDGAR shall be deemed to satisfy
this covenant.

 

		(d)	Additional Reporting Requirements. Deliver to the Holder:

 

		(i)	as soon as possible, and in any event within two (2) Business Days after the Company or any other
Obligor becomes aware of the occurrence of any Default, a statement of the chief financial officer, treasurer or chief operating
officer of the Company or any other officer acceptable to the Holder setting forth the details of such Default and the action which
the Obligors propose to take or have taken with respect thereto;

 

		(ii)	promptly, in writing, and in any event within one (1) Business Day of notice of any default, or
event, condition or occurrence which with notice or lapse of time, or both would constitute a default under any agreement in respect
of Debt to which any Obligor owes (contingently or otherwise) at least $100,000;

 

    	 	- 18 -	 

     

    

  

		(iii)	promptly, and in any event within two (2) Business Days after any Obligor receives notice of any
suit, proceeding or similar action commenced or threatened by any Governmental Authority or any other Person, which has had or
could reasonably be expected to have a Material Adverse Effect, a copy of such notice; and

 

		(iv)	such other information respecting the condition or operations, financial or otherwise, of the business
of any of the Obligors as the Holder may from time to time reasonably request.

 

		(e)	Maintenance of Existence; Keeping of Books. Preserve and maintain its corporate or other
form of existence in all jurisdictions in which each carries on business and keep, proper books of record and account, in which
full and correct entries shall be made of all financial transactions and the assets and the businesses of the Obligors in accordance
with GAAP (to the extent applicable).

 

		(f)	Observance of Covenants. Observe and perform all of the covenants, agreements, terms and
conditions to be observed and performed by it under this Debenture or in any other Loan Document, including the making of all payments
of principal, interest and fees on the dates, at the times, and at the places specified in this Debenture or under any other Loan
Documents to which the Company or any other Obligor is a party.

 

		(g)	Compliance with Laws, etc. Comply, and cause each other Obligor to comply, with the requirements
of all applicable Law in all material respects.

 

		(h)	Maintenance of Properties, etc. Maintain and preserve, and cause each other Obligor to maintain
and preserve, all of their assets used or useful in their businesses in all material respects in good repair, working order and
condition (reasonable wear and tear and obsolete assets excepted) and in material compliance with applicable law (including environmental
laws) and, from time to time, make all needful and proper repairs, renewals, replacements, additions and improvements thereto,
so that the businesses of the Obligors may be properly and advantageously conducted at all times in accordance with prudent business
management.

 

		(i)	Payment of Taxes and Claims. Pay and discharge, and cause each other Obligor to pay and
discharge, before the same shall become delinquent, (i) all Taxes, assessments and governmental charges or levies imposed upon
it or upon its assets; and (ii) all lawful claims which, if unpaid, might by applicable law become a Lien upon its assets, except
any such Taxes or claims which are being contested in good faith and by proper proceedings.

 

		(j)	Maintenance of Insurance. Maintain or cause to be maintained, in respect of each Obligors’
material assets insurance at all times with responsible insurance carriers in such amounts and covering such risks (including,
without limitation, business interruption) as are usually carried by companies engaged in similar businesses and owning similar
assets and properties in the same general areas in which each such Obligor operates, with all property insurance policies to show
the Holder as loss payee and additional insured thereof and promptly furnish or cause to be furnished, upon written request by
the Holder, evidence thereof to the Holder.

 

    	 	- 19 -	 

     

    

  

		(k)	Protect Liens. Except for the filing of renewal statements and the making of other filings
by the Holder as a secured party, at all times take all action and supply the Holder with all information necessary to maintain
the Liens provided for under the Security Documents and confer upon the Holder the Liens intended to be created thereby.

 

		(l)	Use of Proceeds. Use the Principal Amount only for the purposes of funding the Company’s
working capital and such other purposes as may be agreed between the parties during the period from the date of the Merger Agreement
through the completion of the transactions contemplated by the Merger Agreement.

 

		(m)	Additional Guarantees and Security. Cause (i) any Subsidiaries formed or acquired by it
after the date hereof to, within twenty (20) days following their formation or acquisition and (ii) any corporation formed by the
amalgamation of one or more Obligors with another Obligor or a Subsidiary, to deliver a guarantee and the Security Documents granting
a first ranking Lien over all assets of such Subsidiary or entity (subject to Permitted Liens), as collateral security for its
obligations under such guarantee. The Company shall also deliver or cause to be delivered to the Holder all other documentation
contemplated in Section 3.1 or 5.1(a), as applicable, with respect to such Subsidiary or entity, guarantee and pledge of shares
as were delivered by the initial Obligors on or prior to the funding of the Principal Amount. Following execution and delivery
of all documentation contemplated by this Section 5.1(m), such Subsidiary or entity shall be deemed to be an Obligor for purposes
of this Debenture and the other Loan Documents, and the guarantee entered into by such Subsidiary or entity shall be considered
Loan Documents for purposes of this Debenture.

 

		(n)	Further Assurances. At the Company’s reasonable cost and expense, upon request of
the Holder, duly execute and deliver or cause to be duly executed and delivered to the Holder such further instruments and do and
cause to be done such further acts as may be necessary or proper in the reasonable opinion of the Holder to perform and carry out
the provisions and purposes of the Loan Documents.

 

		(o)	TSX and NASDAQ Listing. The Company will use its best efforts to maintain the Company’s
listing on the TSX and NASDAQ and its “reporting issuer” status in the Reporting Jurisdictions during the term of this
Debenture; provided that nothing in this Section 5.1(o) shall prevent the Company from participating in the Merger.

 

	Section 5.2	Negative Covenants

 

So long as this Debenture
remains outstanding, other than as contemplated pursuant to the Merger Agreement and the transactions contemplated thereby, the
Company shall not, and shall cause each of the other Obligors not to:

 

		(a)	Debt. Create, incur, assume or suffer to exist, or permit any other Obligor to create, incur,
assume or suffer to exist, any Debt other than the following (the “Permitted Debt”):

 

		(i)	the Debt incurred pursuant to this Debenture and the other Loan Documents;

 

		(ii)	Debt owing between Obligors and the Debt owing between the Company and its Subsidiaries; and

 

    	 	- 20 -	 

     

    

  

		(iii)	capital leases, purchase money security interest, reclamation bonds and other similar obligations
and other indebtedness incurred in the ordinary course of business, in an aggregate amount not to exceed $500,000.

 

		(b)	Liens. Create, incur, assume or suffer to exist or permit any other Obligor to create, incur,
assume or suffer to exist, any Lien on any of its or their, as the case may be, respective assets other than Permitted Liens securing
capital leases, purchase money security interest, reclamation bonds and other similar obligations and other indebtedness incurred
in the ordinary course of business, in an aggregate amount not to exceed $500,000.

 

		(c)	Mergers, Etc. Enter into any transaction or permit any other Obligor to enter into any transaction
or series of transactions (whether by way of reconstruction, reorganization, consolidation, amalgamation, winding-up, merger, transfer,
sale, lease or otherwise) whereby all or any substantial part of its undertaking or assets would become the property of any other
Person or alter its capital structure or enter into any arrangement or reorganization having a similar effect; provided that an
Obligor may amalgamate with one or more Obligors, so long as the amalgamating corporation provides the agreements and documents
required by Section 5.1(m);

 

		(d)	Dispositions. Dispose of, or permit any other Obligor to dispose of, any assets to any Person,
other than (i) dispositions of inventory in the ordinary course of business and (ii) dispositions of equipment which is worn-out,
damaged, obsolete or no longer used or useful in the business of the Obligors.

 

		(e)	Change in Business. Not to make any substantial change to the general nature of its business.

 

		(f)	Share Capital. Issue, or permit any other Obligor (other than the Company) to issue, any
capital stock or any options, warrants or securities convertible into capital stock, except (i) as permitted by the Merger Agreement,
(ii) in the case of any Obligor other than the Company, to another Obligor (in which case the resulting share certificates shall
be delivered to the Holder together with a power of attorney executed in blank), or (iii) as approved in writing by the Holder
in its sole and absolute discretion.

 

		(g)	Distributions. Declare, make or pay, or permit any other Obligor to declare, make or pay,
any Distributions, other than payments or Distributions between Obligors.

 

		(h)	Restrictive Agreements. Enter into, or permit any other Obligor to enter into, any agreement
prohibiting (i) the creation of any Lien securing payment of the Obligations; (ii) the ability of the Company or any other Obligor
to amend or otherwise modify the Loan Documents; and (iii) except as set out herein, the ability of any Obligor to make any Distributions,
directly or indirectly, to the Company or any other Obligor.

 

		(i)	Amendments to Constating Documents. Allow any amendments to its constating or formation
documents which are adverse to the Holder’s interests hereunder or the Liens arising under or created by the Security Documents.

 

    	 	- 21 -	 

     

    

  

		(j)	Change of Name or Registered Office. Change its name or registered office or principal place
of business without first providing thirty (30) days’ prior written notice to the Holder.

 

Article 6

CONVERSION OF DEBENTURE

 

	Section 6.1	Holder Conversion Option

 

Upon and subject to
the provisions and conditions of this Article 6 and subject to applicable Law, the Holder shall have the right, at its option,
at the Maturity Date (other than in respect of the events contemplated in Section 1.4 hereto), to convert all or any portion of
the Repayment Amount of this Debenture into Common Shares (the “Conversion Option”) at the Conversion Price.

 

	Section 6.2	Manner of Exercise of Conversion Option

 

		(a)	Subject to the provisions of this Article 6 and to applicable Law, the Holder may exercise the
Conversion Option at the Maturity Date (other than in respect of the events contemplated in Section 1.4 hereto) by sending written
notice to the Company in substantially the form attached as Appendix 1.

 

		(b)	At no point in time may the Conversion Option be exercised to cause the Holder to beneficially
own greater than 19.9% of the issued and outstanding Common Shares as of the date of this Debenture.

 

		(c)	The Holder shall be entered in the books of the Company as at the date of conversion as the holder
of the number of Common Shares issuable in respect of the Repayment Amount which the Holder has elected to convert and, as soon
as reasonably practicable, the Company shall deliver to the Holder a certificate or certificates for such Common Shares and, if
applicable, a cheque or other payment for any amount payable under Section 6.4.

 

		(d)	The issuance of any Common Shares upon exercise of the Conversion Option shall be subject to the
receipt of applicable approvals from the TSX and NASDAQ and subject to the conditions of any such approvals.

 

	Section 6.3	Dividends

 

Common Shares issued
to the Holder upon conversion of the Repayment Amount pursuant to the exercise of the Conversion Option shall only entitle the
Holder to dividends, if any, declared on the Common Shares in favour of the holders of record of the Common Shares on and after
the date of conversion or such later date as the Holder becomes the holder of record of Common Shares pursuant to Section 6.2 (the
later date being referred to as the “applicable date”). As of and from the applicable date, the Common Shares
so issued shall, for all purposes, be and be deemed to be issued and outstanding as fully paid and non-assessable Common Shares.

 

    	 	- 22 -	 

     

    

  

	Section 6.4	Fractional Shares

 

The Company shall not
be required to issue fractional Common Shares upon the conversion of the Repayment Amount into Common Shares pursuant to the exercise
of the Conversion Option. If any fractional interest in a Common Share would, except for the provisions of this Article 6,
be deliverable upon the conversion of this Debenture, the Company shall, in lieu of delivering any certificate of fractional interest,
satisfy the fractional interest by paying to the Holder the amount of the fraction in cash.

 

	Section 6.5	Adjustment

 

		(a)	Adjustments for Share Splits, Share Dividends and Subdivisions. In the event the Company
should at any time or from time to time after the date of issuance hereof fix a record date to effect a split or subdivision of
the outstanding Common Shares or a record date for the determination of holders of Common Shares entitled to receive a dividend
or other distribution payable in additional shares of Common Shares or other securities or rights convertible into, or entitling
the holder thereof to receive directly or indirectly, additional Common Shares without payment of any consideration by such holder
for the additional Common Shares (including the additional Common Shares or such other class or series issuable upon conversion
or exercise thereof), then, as of such record date (or the date of such dividend distribution, split or subdivision if no record
date is fixed), the Conversion Price of this Debenture shall be appropriately decreased so that the number of Common Shares issuable
upon conversion of this Debenture shall be increased in proportion to such increase of outstanding shares, subject to any necessary
approvals of the TSX and NASDAQ.

 

		(b)	Adjustments for Consolidations.  If the number of Common Shares outstanding at any time
after the date hereof is decreased by a consolidation of the outstanding Common Shares, then, following the record date of such
consolidation, the Conversion Price for this Debenture shall be appropriately increased so that the number of Common Shares issuable
on conversion hereof shall be decreased in proportion to such decrease in outstanding shares.

 

		(c)	Adjustments for Other Distributions. In the event the Company shall declare a distribution
payable in securities of other persons, evidences of indebtedness issued by the Company or other persons, assets (excluding ordinary
course cash dividends) or options or rights not referred to in this subsection, then, in each such case for the purpose of this
subsection, the Holder shall be entitled to a proportionate share of any such distribution as though the Holder was the holder
of the number of Common Shares into which this Debenture is convertible as of the record date fixed for the determination of the
holders entitled to receive such distribution.

 

		(d)	Corporate Transaction / Capital Reorganization

 

		(i)	If and whenever at any time after the date hereof and prior to the Maturity Date, there is a reclassification
as a result of a Corporate Transaction or any other event of the Common Shares at any time outstanding or change of the Common
Shares into other shares or into other securities or other capital reorganization, in which the holders of Common Shares are entitled
to receive shares, other securities or other property (any of such events being called a “Capital Reorganization”),
if the Holder exercises the right to convert this Debenture after the effective date of such Capital Reorganization will be entitled
to receive, and will accept for the same aggregate consideration in lieu of the number of Common Shares to which such Holder was
previously entitled upon such conversion, the aggregate number of shares, other securities or other property which such holder
would have been entitled to receive as a result of such Capital Reorganization if, on the effective date thereof, the holder had
been the registered holder of the number of Common Shares to which such holder was previously entitled upon conversion.

 

    	 	- 23 -	 

     

    

  

		(ii)	In the case of the Company entering into a Corporate Transaction or Capital Reorganization:

 

		(A)	the successor corporation shall be bound by all of the provisions hereof including the due and
punctual performance of all covenants of the Company and forthwith following the occurrence of such event, the successor corporation
resulting from such Corporate Transaction or Capital Reorganization, shall be (i) organized and existing under the laws of Canada
or any province or territory thereof or in the United States including any state or district thereof, and (ii) expressly assume,
by supplemental certificate, if required by the Board, satisfactory to the Board, and executed and delivered to the Holder, the
due and punctual performance and observance of this Debenture to be performed and observed by the Company and these securities
and the terms set forth in this Debenture will be a valid and binding obligation of the successor corporation entitling the Holder,
as against the successor corporation, to all the rights of the Holder under this Debenture,

 

		(B)	no Event of Default under this Debenture exists or would arise as a result; and

 

		(C)	a legal opinion covering the conditions in (A) and an Officer’s Certificate confirming compliance
with the conditions of this covenant shall be delivered to the Holder.

 

		(e)	No Adjustment for the Merger. Notwithstanding any other provision of this Section 6.5, no
adjustments shall be made pursuant to this Section 6.5 as a consequence of the Merger and the transactions contemplated thereby
in accordance with and pursuant to the terms and conditions of the Merger Agreement.

 

Article 7

EVENTS OF DEFAULT

 

	Section 7.1	Events of Default

 

The occurrence of any
of the following events shall constitute an “Event of Default” under this Debenture:

 

		(a)	Non-Payment.  If the Company fails to pay when due the Principal Amount or any interest
or fees thereof, or any other amount due hereunder.

 

    	 	- 24 -	 

     

    

  

		(b)	Breach of Covenants.  If the Company or any other Obligor fails to perform, observe or comply
with any covenant or provision of this Debenture or any other Loan Document and the Company fails to cure (or obtain a waiver for)
such default for a period of ten (10) days after notice in writing has been given by the Holder.

 

		(c)	Misrepresentation. If any representation or warranty or certification made or deemed to
be made by any Obligor in this Debenture or any other Loan Document to which it is a party shall prove to have been incorrect in
any material respect when made or deemed to be made.

 

		(d)	Breach of Representations, Warranties or Covenants in the Merger Agreement. If the Company
fails to perform, observe or comply with any representation, warranty or covenant in the Merger Agreement, which breach would cause
any of the conditions set forth in Section 7.1 or Section 7.3 of the Merger Agreement not to be satisfied by the Outside Date,
and such breach is incapable of being cured or is not cured in accordance with the terms of Section 6.3 of the Merger Agreement.

 

		(e)	Bankruptcy; Insolvency. If the Company or any Obligor (i) becomes insolvent or generally
not able to pay its debts as they become due, (ii) admits in writing its inability to pay its debts generally or makes a general
assignment for the benefit of creditors, (iii) institutes any proceeding or has instituted against it any proceeding seeking
(x) to adjudicate it a bankrupt or insolvent, (y) liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any Law relating to bankruptcy, insolvency, reorganization or relief of debtors
including any plan of compromise or arrangement or other corporate proceeding involving or affecting its creditors, or (z) the
entry of an order for relief or the appointment of a receiver, trustee or other similar official for it or for any substantial
part of its properties and assets, and in the case of any such proceeding instituted against it (but not instituted by it), or
any of the actions sought in such proceeding (including the entry of an order for relief against it or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its properties and assets) occurs, or (iv) takes
any corporate action to authorize any of the above actions.

 

		(f)	Dissolution. If any application is made for, or order, judgment or decree is entered against
the Company decreeing, the winding-up, liquidation, dissolution or bankruptcy, insolvency, reorganization, or any similar process
of the Company and, in the case of an application, or a resolution is passed for the winding-up, dissolution or liquidation of
the Company.

 

		(g)	Cross-default. If there occurs: (i) a failure by any Obligor to pay Debt exceeding $100,000
in the aggregate at the stated maturity thereof or as a result of which, the creditor may declare the principal thereof to be due
and payable prior to the stated maturity thereof, or any event shall occur and shall continue after the applicable grace period
(if any) specified in any agreement or instrument relating to any such debt of any Obligor to any Person, the effect of which is
to permit the holder of such debt to declare the principal amount thereof to be due and payable prior to its stated maturity; or
(ii) a failure by any Obligor to perform or observe any covenant or agreement to be performed or observed by it contained in any
other agreement or in any instrument evidencing any of its Debt exceeding $100,000, the effect of which has resulted in the holder
of such Debt declaring the principal amount thereof to be due and payable prior to its stated maturity.

 

    	 	- 25 -	 

     

    

  

		(h)	Judgments. If a final judgment for the payment of money exceeding $100,000 in the aggregate
in excess of any amount covered by applicable insurance shall be rendered by a court of competent jurisdiction against the Company
or any other Obligor and the Company or such Obligor does not discharge same or provide for its discharge in accordance with its
terms, or procure a stay of execution thereof (by reason of a pending appeal or otherwise) within forty-five (45) days from the
date of entry thereof.

 

		(i)	Invalidity of Loan Documents. If any Loan Document shall become unenforceable or the Lien
of any of the Security Documents shall cease to rank in priority in the manner contemplated herein or in the Security Documents
other than by reason of the direct act or omission of the Holder.

 

		(j)	Material Adverse Effect. Upon the occurrence of any Material Adverse Effect.

 

	Section 7.2	Remedies

 

If any Event of Default
occurs, all indebtedness, obligations and liabilities of the Obligors under this Debenture shall, automatically in the case of
an Event of Default under Section 7.1(e) or Section 7.1(f) and at the option of the Holder in the case of any other Event of Default
under Section 7.1, become immediately due and payable with interest, at the rate or rates determined as provided in this Agreement,
to the date of their actual payment, all without notice, presentment, protest, demand, notice of dishonour or any other demand
or notice whatsoever, all of which are hereby expressly waived by each Obligor. In that event, the Security Documents shall become
immediately enforceable and the Holder may, in its sole and absolute discretion, exercise any right or recourse and/or proceed
by any action, suit remedy or proceeding against any of the Obligors authorized or permitted by law for the recovery of all the
indebtedness, obligations or liabilities of the Obligors to the Holder, and proceed to exercise any and all rights hereunder and
under the Security Documents, and no such remedy for the enforcement of the rights of the Holder shall be exclusive of, or dependent
on, any other remedy, but anyone or more of such remedies may from time to time be exercised independently or in combination.

 

Article 8

MISCELLANEOUS

 

	Section 8.1	No U.S. Registration

 

Neither this Debenture
nor the Common Shares issuable upon exercise of the Conversion Option have been or will be registered under the United States Securities
Act of 1933, as amended (the “U.S. Securities Act”), or under the securities laws of any state of the United
States. This Debenture and the Common Shares issuable hereunder shall not be converted or transferred within the United States
unless this Debenture and/or the Common Shares, as applicable, have been registered under the U.S. Securities Act or are exempt
from registration thereunder.

 

	Section 8.2	Lost, Stolen, Mutilated or Destroyed Debenture

 

If this Debenture is
lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnify the Company or otherwise as it may in its
discretion reasonably impose (which shall, in the case of a mutilated certificate, include the surrender thereof), issue a new
certificate representing the Debenture of like denomination and tenor as the certificate so lost, stolen, mutilated or destroyed.
Any such new certificate shall constitute an original contractual obligation of the Company, whether or not the allegedly lost,
stolen, mutilated, or destroyed Debenture shall be at any time enforceable by anyone.

 

    	 	- 26 -	 

     

    

  

	Section 8.3	Waiver; Cumulative Remedies

 

No failure or delay
of the Holder in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct,
preclude any other or further exercise thereof or the exercise of any other right or power. Any agreement on the part of the Holder
to any waiver shall be valid only if set forth in a written instrument executed and delivered by a duly authorized officer on behalf
of the Holder. Except to the extent expressly provided in to the contrary, the rights and remedies provided in this Debenture and
the other Loan Documents are cumulative and are not exclusive of, and are in addition to and not in substitution for, any other
rights or remedies available at law, in equity or otherwise.

 

	Section 8.4	Holder May Remedy Default

 

If the Company fails
to do anything hereby required to be done by it the Holder may, but shall not be obliged to, do such thing and all sums thereby
expended by the Holder shall be payable forthwith by the Company, but no such performance by the Holder shall be deemed to relieve
the Company from any default hereunder.

 

	Section 8.5	Notices, etc.

 

All notices, demands
or other communications permitted or required to be given or delivered under or by reason of the provisions hereof shall be in
writing and shall be deemed to have been given when (a) delivered personally to the recipient, (b) sent to the recipient by reputable
express courier service (charges prepaid), or (c) mailed to the recipient by certified or registered mail, return receipt requested
and postage prepaid. Such communications must be sent to the respective parties at the addresses indicated below (or at such other
address for a party as shall be specified in a notice given in accordance with this Section 8.5).

 

	If to the Company:	Pershing Gold Corporation
	 	1658 Cole Boulevard Building 6, Suite 210
	 	Lakewood, CO 80401
	 	U.S.A.
	 	 	 
	 	Attention:	Stephen Alfers
	 	E-mail:	Chief Executive Officer
	 	 	 
	with a copy to:	Davis Graham & Stubbs LLP
	(which shall not constitute	1550 Seventeenth Street, Suite 500
	notice to the Company)	Denver, CO 80202
	 	U.S.A.
	 	 	 
	 	Attention:	Brian Boonstra
	 	E-mail:	brian.boonstra@dgslaw.com
	 	 	 
	If to the Holder:	Americas Silver Corporation
	 	Suite 2870, 145 King Street West
	 	Toronto, ON M5H 1J8
	 	Canada
	 	 
	 	Attention:	Peter McRae
	 	E-mail:	pmcrae@americassilvercorp.com

 

    	 	- 27 -	 

     

    

  

	with a copy to:	Blake, Cassels & Graydon LLP
	(which shall not constitute	199 Bay Street
	notice to the Holder)	Toronto, ON M5L 1A9
	 	Canada
	 	 	 
	 	Attention:	Michael Hickey
	 	E-mail:	michael.hickey@blakes.com

 

	Section 8.6	Equitable Relief 

 

Each of the Company
and the Holder acknowledges that a breach or threatened breach by such party of any of its obligations under this Debenture or
the other Loan Documents would give rise to irreparable harm to the other party hereto for which monetary damages would not be
an adequate remedy and hereby agrees that in the event of a breach or a threatened breach by such party of any such obligations,
the other party hereto shall, in addition to any and all other rights and remedies that may be available to it in respect of such
breach, be entitled to equitable relief, including a restraining order, an injunction, specific performance and any other relief
that may be available from a court of competent jurisdiction.

 

	Section 8.7	Entire Agreement

 

This Debenture and
the other Loan Documents constitute the sole and entire agreement of the parties to this Debenture and such other Loan Documents
with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings and
agreements, both written and oral, with respect to such subject matter.

 

	Section 8.8	No Third-Party Beneficiaries

 

This Debenture is for
the sole benefit of the Company and the Holder and their respective successors and, in the case of the Holder, its permitted assigns
and nothing in this Debenture, express or implied, is intended to or shall confer upon any other person any legal or equitable
right, benefit or remedy of any nature whatsoever, under or by reason of this Debenture.

 

	Section 8.9	Successors and Assigns, etc.

 

This Debenture and
the other Loan Documents and all of its provisions shall inure to the benefit of, and shall be binding upon, the Holder, its successors
and permitted assigns, and shall be binding upon the Company and its successors. Neither this Debenture nor the other Loan Documents
nor any of the rights, interests or obligations under this Debenture nor the other Loan Documents may be assigned or delegated,
in whole or in part, by operation of law or otherwise, by the Company or any other Obligor, as applicable, without the prior written
consent of the Holder, and any such assignment without such prior written consent shall be null and void. Neither this Debenture
nor the other Loan Documents nor any of the rights, interests or obligations under this Debenture nor the other Loan Documents
may be assigned or delegated, in whole or in part, by operation of law or otherwise, by the Holder, as applicable, without the
prior written consent of the Company, and any such assignment without such prior written consent shall be null and void, provided
that, notwithstanding the foregoing, the Holder shall be able to transfer and assign this Debenture and the other Loan Documents
to any of its wholly-owned Subsidiaries without the consent of the Company or any other Obligor, as applicable. Subject to the
preceding sentences, this Debenture will be binding upon, inure to the benefit of, and be enforceable by, the parties and their
respective successors and assigns.

 

    	 	- 28 -	 

     

    

  

	Section 8.10	Governing Law

 

This Debenture shall
be governed by and construed in accordance with the internal laws of the Province of Ontario without giving effect to any choice
or conflict of law provision or rule (whether of the Province of Ontario or any other jurisdiction) that would cause the application
of laws of any jurisdiction other than those of the Province of Ontario. Any and all disputes arising under this Debenture, whether
as to interpretation, performance or otherwise, shall be subject to the non-exclusive jurisdiction of the courts of the Province
of Ontario and each of the parties hereby irrevocably attorns to the jurisdiction of such courts. Notwithstanding the foregoing,
the parties hereby acknowledge and agree that any dispute regarding the rights of the parties under the Merger Agreement, including
the exercisability of any termination rights thereunder, shall be governed by the governing law and dispute resolution provisions
set forth in the Merger Agreement.

 

	Section 8.11	Waiver of Jury Trial

 

Each party acknowledges
and agrees that any controversy which may arise under this Debenture is likely to involve complicated and difficult issues and,
therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal
action arising out of or relating to this Debenture or the transactions contemplated hereby.

 

	Section 8.12	Counterparts

 

This Debenture may
be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and
the same agreement. A signed copy of this Debenture delivered by facsimile, e-mail or other means of electronic transmission shall
be deemed to have the same legal effect as delivery of an original signed copy of this Debenture.

 

	Section 8.13	Severability

 

If any one or more
of the provisions or parts thereof contained in this Debenture should be or become invalid, illegal or unenforceable in any respect
in any jurisdiction, the remaining provisions or parts thereof contained herein shall be and shall be conclusively deemed to be,
as to such jurisdiction, severable therefrom and:

 

		(a)	the validity, legality or enforceability of such remaining provisions or parts thereof shall not
in any way be affected or impaired by the severance of the provisions or parts thereof severed; and

 

		(b)	the invalidity, illegality or unenforceability of any provision or part thereof contained in this
Debenture in any jurisdiction shall not affect or impair such provision or part thereof or any other provisions of this Debenture
in any other jurisdiction.

 

    	 	- 29 -	 

     

    

  

	Section 8.14	Further Assurances

 

The Company shall execute,
acknowledge and deliver to the Holder such other and further documents and instruments and do or cause to be done such other acts
as the Holder reasonably determines to be necessary or desirable to effect the intent of the parties to this Debenture or otherwise
to protect and preserve the interests of the Holder hereunder, promptly upon request of the Holder.

 

	Section 8.15	No Strict Construction

 

This Debenture shall
be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument
or causing any instrument to be drafted.

 

[Remainder of page left intentionally
blank]

 

    	 	- 30 -	 

     

    

 

IN WITNESS WHEREOF the parties
have executed and delivered this Debenture as of the dates set forth below with the intention that the delivery of such signatures
be irrevocable and this Debenture shall be effective for all purposes as of October 1, 2018. 

 

	 	 	PERSHING GOLD CORPORATION
	 	 	 
	 	 	By:	/s/ Stephen D. Alfers
	 	 	Authorized Signatory
	 	 	 
	 	 	Date:  September 28, 2018

 

	 	 	AMERICAS SILVER CORPORATION
	 	 	 
	 	 	By:	/s/ Darren Blasutti
	 	 	Authorized Signatory
	 	 	 
	 	 	Date:  October 1, 2018

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