Document:

Prepared by R.R. Donnelley Financial -- 1995 Stock Plan, as amended

  
 Exhibit 10.1 
  
 PHARMANETICS, INC. 1995 STOCK PLAN 
 (formerly the Cardiovascular Diagnostics, Inc.
1995 Stock Plan) 
  
 As amended by the Board of Directors and the Shareholders through 
 May 7, 2002 
  
 1.  Purpose.    This 1995 Stock Plan (the “Plan”) is intended to provide incentives: 
  
 (a)  to employees of Cardiovascular Diagnostics, Inc. (the “Company”), or its parent, PharmaNetics, Inc. (the “Parent”) or any
of its present or future subsidiaries (collectively, “Related Corporations”), by providing them with opportunities to purchase Common Stock (as defined below) of the Parent pursuant to options granted hereunder that qualify as
“incentive stock options” (“ISOs”) under Section 422 of the Internal Revenue Code of 1986, as amended, or any successor statute (the “Code”); 
  
 (b)  to directors, employees and consultants of the Company and Related Corporations by providing them with opportuni­ties to purchase Common
Stock (as defined below) of the Parent pursuant to options granted hereunder that do not qualify as ISOs (nonstatutory stock options, or “NSOs”); 
  
 (c)  to employees and consultants of the Company and Related Corporations by providing them with bonus awards of Common Stock (as defined below)
of the Parent (“Stock Bonuses”); and 
  
 (d)  to employees and consultants of the
Company and Related Corporations by providing them with opportunities to make direct purchases of Common Stock (as defined below) of the Parent (“Purchase Rights”). 
  
 Both ISOs and NSOs are referred to hereafter individually as “Options”, and Options, Stock Bonuses and Purchase Rights are referred to hereafter collectively as
“Stock Rights”. As used herein, the terms “parent” and “subsidiary” mean “parent corporation” and “subsidiary corporation”, respectively, as those terms are defined in Section 424 of the Code.

  
 2.  Administration of the Plan. 
  
 (a)  Procedure.    The Plan shall be administered by (A) the Board or (B) a committee designated by the Board, which
committee shall be constituted in such a manner as to satisfy the legal requirements relating to the administration of incentive stock option plans, if any, of applicable state and federal corporate and securities laws, of the Code and of any
applicable stock exchange or market (collectively, the “Applicable Laws”). Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. From time to time the Board may increase
the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter
directly administer the Plan, all to the extent permitted by the Applicable Laws. 
  
 (b)  Subject to ratification of the grant or authorization of each Stock Right by the Board (if so required by applicable law), and subject to the terms of the Plan, the Committee, if so appointed, shall have the authority
to: 
 

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 (i)  determine the employees of the Company and Related
Corporations (from among the class of employees eligible under Section 3 to receive ISOs) to whom ISOs may be granted, and to determine (from among the class of individuals and entities eligible under Section 3 to receive NSOs, Stock Bonuses and
Purchase Rights to whom NSOs, Stock Bonuses and Purchase Rights may be granted; 
  
 (ii)  determine the time or times at which Options, Stock Bonuses or Purchase Rights may be granted; 
  
 (iii)  determine the option price of shares subject to each Option, which price shall not be less than the minimum price specified in Section 6 hereof, as appropriate, and the purchase price
of shares subject to each Purchase Right; 
  
 (iv)  determine whether each Option granted
shall be an ISO or NSO; 
  
 (v)  determine (subject to Section 7) the time or times when
each Option shall become exercisable and the duration of the exercise period; 
  
 (vi)  determine whether restrictions such as repurchase options are to be imposed on shares subject to Options, Stock Bonuses and Purchase Rights and the nature of such restrictions, if any; and 
  
 (vii)  interpret the Plan and prescribe and rescind rules and regulations relating to it. 

 
 If the Committee determines to issue a NSO, it shall take whatever actions it deems necessary, under Section
422 of the Code and the regulations promulgated thereunder, to ensure that such Option is not treated as an ISO. The interpretation and construction by the Committee of any provisions of the Plan or of any Stock Right granted under it shall be final
unless otherwise determined by the Board. The Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best. No member of the Board or the Committee shall be liable for any action or determination
made in good faith with respect to the Plan or any Stock Right granted under it. 
  
 (c)  The Committee may select one of its members as its chairman, and shall hold meetings at such time and places as it may determine. Acts by a majority of the Committee, or acts reduced to or approved in writing by a
majority of the members of the Commit­tee, shall be the valid acts of the Committee. All references in this Plan to the Committee shall mean the Board if no Committee has been appointed. From time to time the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substi­tution therefor, fill vacancies however caused, or remove all members thereof and thereafter directly administer the Plan.

  
 3.  Eligible Employees and Others.    ISOs may be granted to any employee of
the Company or any Related Corporation. Those officers of the Company who are not employees may not be granted ISOs under the Plan. NSOs, Stock Bonuses and Purchase Rights may be granted to any director, employee or consultant of the Company or any
Related Corporation; provided, however, that, no director of the Company who is not also an employee of the Parent shall be eligible to receive any Stock Right under the Plan after the time when the Parent shall have registered its equity securities
under Section 12 of the Exchange Act. Granting of any Stock Right to any individual or entity shall neither entitle that individual or entity to, nor disqualify him or her from, participation in any other grant of Stock Rights. 
 

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 4.  Stock.    The stock subject to Stock
Rights shall be authorized but unissued shares of Common Stock of the Parent, no par value per share, or such shares of the Parent’s capital stock into which such class of shares may be converted pursuant to any reorganization,
recapitalization, merger, consolidation or the like (the “Common Stock”), or shares of Common Stock reacquired by the Parent in any manner. The aggregate number of shares that may be issued pursuant to the Plan is 1,613,150 shares, subject
to adjustment as provided herein. Any such shares may be issued as ISOs, NSOs or Stock Bonuses, or to persons or entities making purchases pursuant to Purchase Rights, so long as the number of shares so issued does not exceed such aggregate number,
as adjusted. If any Option granted under the Plan shall expire or terminate for any reason without having been exercised in full or shall cease for any reason to be exercisable in whole or in part, or if the Company shall reacquire any shares issued
pursuant to Stock Rights, the unpurchased shares subject to such Options and any shares so reacquired by the Company shall again be available for grants of Stock Rights under the Plan. 
  
 5.  Granting of Stock Rights.    Stock Rights may be granted under the Plan at any time after the Effective Date, as set forth in
Section 16, and prior to 10 years thereafter. The date of grant of a Stock Right under the Plan will be the date specified by the Committee at the time it grants the Stock Right; provided, however, that such date shall not be prior to the date on
which the Committee acts. The Committee shall have the right, with the consent of the optionee, to convert an ISO granted under the Plan to an NSO pursuant to Section 17. 
  
 6.  Minimum Price; ISO Limitations. 
  
 (a)  The price per share specified in the agreement relating to each NSO, Stock Bonus or Purchase Right granted under the Plan shall be established by the Board or the Committee, taking into
account any noncash consideration to be received by the Company from the recipient of Stock Rights. 
  
 (b)  The price per share specified in the agreement relating to each ISO granted under the Plan shall not be less than the fair market value per share of Common Stock on the date of such grant. In the case of an ISO to be
granted to an employee owning stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Related Corporation, the price per share specified in the agreement relating to such ISO shall not be less
than 110% of the fair market value per share of Common Stock on the date of the grant. 
  
 (c)  In no event shall the aggregate fair market value (determined at the time an ISO is granted) of Common Stock for which ISOs granted to any employee are exercisable for the first time by such employee during any
calendar year (under all stock option plans of the Company and any Related Corporation) exceed $100,000; provided that this Section shall have no force or effect to the extent that its inclusion in the Plan is not necessary for Options issued as
ISOs to qualify as ISOs pursuant to Section 422 of the Code. 
  
 (d)  If, at the time an
Option is granted under the Plan, the Parent’s Common Stock is publicly traded, “fair market value” shall be determined as of the last business day for which the prices or quotes discussed in this sentence are available prior to the
time such Option is granted and shall mean: 
  
 (i)  the average as of the close of
business on that date of the high and low prices of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a national securities exchange; 
 

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 (ii) the last reported sale price as of the close of business on
that date of the Common Stock on the Nasdaq National Market System (the “NASDAQ/NMS”), if the Common Stock is not then traded on a national securities exchange but is then traded on the NASDAQ/NMS; or 
  
 (iii) the closing bid price or average of bid prices last quoted on that date by an established quotation service, if the
Common Stock is not reported on the NASDAQ/NMS. 
  
 However, if the Common Stock is not publicly
traded at the time an Option is granted under the Plan, “fair market value” shall be deemed to be the fair value of the Common Stock as determined by the Committee after taking into consider­ation all factors that it deems appropriate,
including, without limitation, recent sale and offer prices on the Common Stock in private transactions negotiated at arm’s length, but determined without regard to any restriction other than a restriction that, by its terms, will never lapse.

  
 7.  Option Duration.    Subject to earlier termination as provided in
Sections 9 and 10, each Option shall expire on the date specified by the Committee, but not more than: 
  
 (a)  10 years from the date of grant in the case of NSOs; 
  
 (b)  10 years from the date of grant in the case of ISOs generally; and 
  
 (c)  5 years from the date of grant in the case of ISOs granted to an employee owning stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Related Corpor­ation.

  
 Subject to earlier termination as provided in Sections 9 and 10, the term of each ISO shall be the term set forth
in the original instrument granting such ISO, except with respect to any part of such ISO that is converted into an NSO pursuant to Section 17. 
  
 8.  Exercise of Options.    Subject to the provisions of Section 9 through Section 12 of the Plan, each Option granted under the Plan shall be exercisable as
follows: 
  
 (a)  the Option shall either be fully exercisable on the date of grant or
shall become exercisable thereafter in such installments as the Committee may specify; 
  
 (b)  once an installment becomes exercisable it shall remain exercisable until expiration or termination of the Option, unless otherwise specified by the Committee; 
  
 (c)  each Option or installment may be exercised at any time or from time to time, in whole or in part, for up to the total number of shares with
respect to which it is then exercisable; and 
  
 (d)  the Committee shall have the right to
accelerate the date of exercise of any installment of any Option, provided that the Committee shall not accelerate the exercise date of any installment of any ISO granted to any employee (and not previously converted into an NSO pursuant to Section
17) if such acceleration would violate the annual vesting limitation contained in Section 422 of the Code, as described in Section 6(c). 
  
 9.  Termination of Employment.    If an ISO optionee ceases to be employed by the Company and all Related Corporations other than by reason of death or disability as defined in Section
10, unless otherwise specified in the instrument granting such ISO, the ISO optionee shall have the continued right 
 

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 to exercise any ISO held by him or her, to the extent of the number of shares with respect to which he or she could have exercised it on the
date of termination, until the ISO’s specified expiration date; provided, however, in the event the ISO optionee exercises any ISO after the date that is three months following the date of termination of employment, such ISO will automatically
be converted into an NSO subject to the terms of the Plan. Employment shall be considered as continuing uninterrupted during any bona fide leave of absence (such as those attributable to illness, military obligations or governmental service)
provided that the period of such leave does not exceed 90 days or, if longer, any period during which such optionee’s right to reemployment with the Company is guaranteed by statute or by contract. A bona fide leave of absence with the written
approval of the Company shall not be considered an interruption of employment under the Plan, provided that such written approval contractually obligates the Company or any Related Corporation to continue the employment of the optionee after the
approved period of absence. ISOs granted under the Plan shall not be affected by any change of employment within or among the Company and Related Corporations, so long as the optionee continues to be an employee of the Company or any Related
Corporation. 
  
 NOTHING IN THE PLAN SHALL BE DEEMED TO GIVE ANY GRANTEE OF ANY STOCK RIGHT THE RIGHT TO BE RETAINED
IN EMPLOYMENT OR OTHER SERVICE BY THE COMPANY OR ANY RELATED CORPORATION FOR ANY PERIOD OF TIME. 
  
 10.  Death; Disability. 
  
 (a)  If an ISO optionee ceases
to be employed by the Company and all Related Corporations by reason of death, any ISO of his or hers may be exercised to the extent of the number of shares with respect to which he or she could have exercised it on the date of death, by his or her
estate, personal representative or beneficiary who has acquired the ISO by will or by the laws of descent and distribution, at any time prior to the ISO’s specified expiration date, unless otherwise specified in the instrument granting such
ISO. 
  
 (b)  If an ISO optionee ceases to be employed by the Company and all Related
Corporations by reason of disability, he or she shall continue to have the right to exercise any ISO held by him or her on the date of termination until the ISO’s specified expiration date, unless otherwise specified in the instrument granting
such ISO; provided, however, in the event the optionee exercises after the date that is one year following the date of termination, such ISO will automatically be converted into a NSO subject to the terms of the Plan. For the purposes of the Plan,
the term “disability” shall mean “permanent and total disability” as defined in Section 22(e)(3) of the Code. 
  
 11.  Assignability.    No Stock Right shall be assignable or transferable by the grantee except with the consent of the Committee, by will or by the laws of descent and distribution, and during
the lifetime of the grantee each Stock Right shall be exercisable only by him or her, except with the prior consent of the Committee; provided that no such assignment shall be made in the case of an ISO. 
  
 12.  Terms and Conditions of Options.    Options shall be evidenced by instruments (which need not be
identical) in such forms as the Committee may from time to time approve. Such instruments shall conform to the terms and conditions set forth in Sections 6 through 11 hereof and may contain such other provisions as the Committee deems advisable that
are not inconsistent with the Plan, including restrictions (or other conditions deemed by the Committee to be in the best interests of the Company) applicable to the exercise of Options or to shares of Common Stock issuable upon exercise of Options.
In granting any NSO, the Committee may specify that such NSO shall be subject to the restrictions set forth herein with respect to ISOs, or to such other termination and cancellation provisions as the Committee may determine. The Committee may from
time to time confer authority and responsibility on 
 

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 one or more of its own members and/or one or more officers of the Company or any Related Corporation to execute and deliver such instruments.
The proper officers of the Company or any Related Corporation are authorized and directed to take any and all action necessary or advisable from time to time to carry out the terms of such instruments. 
  
 13.  Adjustments.    Upon the occurrence of any of the following events, the rights of a recipient of
a Stock Right granted here­under shall be adjusted as hereinafter provided, unless otherwise provided in the written agreement between the recipient and the Parent relating to such Stock Right: 
  
 (a)  If the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or
if the Parent shall issue shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of outstanding Stock Rights shall be appropriately increased or decreased
proportionately, and appropriate adjustments shall be made in the purchase price (if any) per share to reflect such subdivision, combination or stock dividend. 
  
 (b)  If the Parent is to be consolidated with or acquired by another entity in a merger, sale of all or substantially all of the Parent’s
assets or otherwise (an “Acquisition”), unless otherwise provided by the Committee, in its sole discretion, all conditions to the exercisability of Options and rights of the Parent to repurchase or restrict the sale of shares of Common
Stock issued pursuant to exercise of a Stock Right shall lapse and the Committee or the board of directors of any entity assuming the obligations of the Parent hereunder (the “Successor Board”) shall, as to outstanding Options, make
appropriate provision for the continuation of such Options by substituting on an equitable basis for the shares then subject to such Options the consideration payable with respect to the outstanding shares of Common Stock in connection with the
Acquisition. 
  
 (c)  In the event of a recapitalization or reorganization of the Parent
(other than a transaction described in subsection (b) above) pursuant to which securities of the Parent or of another corporation are issued with respect to the outstanding shares of Common Stock, an optionee upon exercising an Option shall be
entitled to receive for the purchase price paid upon such exercise the securities he or she would have received if he or she had exercised the Option immediately prior to such recapitalization or reorganization. 
  
 (d)  Notwithstanding the foregoing, any adjustments made pursuant to subsections (a), (b) or (c) with respect to
ISOs shall be made only after the Committee determines whether such adjustments would constitute a “modification” of such ISOs (as that term is defined in Section 424 of the Code) or would cause any adverse tax consequences for the holders
of such ISOs. If the Committee determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments as to all or some of such ISOs. 
  
 (e)  In the event of the proposed dissolution or liquidation of the Parent, each Option will terminate
immediately prior to the consummation of such proposed action or at such other time and subject to such other conditions as shall be determined by the Committee. 
  
 (f)  Except as expressly provided herein, no issuance by the Parent of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Options. No adjustments shall be made for dividends paid in cash or in property other than Common Stock of
the Parent. 
 

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 (g)  No fractional shares shall be issued under the Plan and any optionee who would otherwise
be entitled to receive a fraction of a share upon exercise of an Option shall receive from the Parent cash in lieu of such fractional shares in an amount equal to the fair market value of such fractional shares, as determined in the sole discretion
of the Committee. 
  
 (h)  Upon the happening of any of the foregoing events described in
subsections (a), (b) or (c) above, the class and aggregate number of shares set forth in Section 4 hereof that are subject to Stock Rights that previously have been or subsequently may be granted under the Plan shall also be appropriately adjusted
to reflect the events described. The Committee or the Successor Board shall determine the specific adjustments to be made under this Section 13 and, subject to Section 2, its determination shall be conclusive. 
  
 14.  Means of Exercising Stock Rights.    A Stock Right (or any part or installment thereof) shall be
exercised by giving written notice to the Parent at its principal office address. Such notice shall identify the Stock Right being exercised and specify the number of shares as to which such Stock Right is being exercised, accompanied by full
payment of the exercise price therefor either (a) in United States dollars in cash or by check, (b) at the discretion of the Committee, through the delivery of already-owned shares of Common Stock having a fair market value equal as of the date of
the exercise to the cash exercise price of the Stock Right, or (c) at the discretion of the Committee, by delivery of the grantee’s personal recourse note bearing interest payable not less than annually at no less than 100% of the lowest
applicable Federal rate, as defined in Section 1274(d) of the Code, or (d) at the discretion of the Committee, by any combination of (a), (b) and (c). If the Committee exercises its discretion to permit payment of the exercise price of an ISO by
means of the methods set forth in clauses (b), (c) or (d) of the preceding sentence, such discretion shall be exercised in writing at the time of the grant of the ISO in question. The holder of a Stock Right shall not have the rights of a
shareholder with respect to the shares covered by the Stock Right until the date of issuance of a stock certificate for such shares. Except as expressly provided above in Section 13 with respect to changes in capitalization and stock dividends, no
adjustment shall be made for dividends or similar rights for which the record date is before the date such stock certificate is issued. 
  
 15.  Stock Appreciation Rights; Surrender of Options.    The Committee may, in its sole and absolute discretion and subject to such terms and conditions as it deems appropriate, accept
the surrender by an optionee of an Option granted to him under the Plan and authorize payment in consideration therefor of an amount equal to the difference between the purchase price payable for the shares of Common Stock under the instrument
granting the Option and the fair market value of the shares subject to the Option (determined as of the date of such surrender of the Option). Such payment shall be made in shares of Common Stock valued at fair market value on the date of such
surrender, or in cash, or partly in such shares of Common Stock and partly in cash as the Committee shall determine. The surrender shall be permitted only if the Committee determines that such surrender is consistent with the purpose set forth in
Section 1, and only to the extent that the Option is exercisable under Section 8 on the date of surrender. In no event shall an optionee surrender his Option under this Section if the fair market value of the shares on the date of such surrender is
less than the purchase price payable for the shares of Common Stock subject to the Option. Any ISO surrendered pursuant to the provisions of this Section 15 shall be deemed to have been converted into a NSO immediately prior to such surrender.
Notwithstanding the foregoing, if on the date of surrender the optionee is an Insider, then any election to surrender an Option shall not be permitted unless (a) such surrender shall occur after the date six (6) months from the date such Option was
granted, (b) the Insider shall have made an irrevocable election to surrender the Option pursuant to this paragraph 15 at least six (6) months prior to the date the Option is surrendered or (c) the surrender of the Option hereunder by the Insider is
otherwise exempt pursuant to the regulations promulgated under Section 16 of the Exchange Act. 
 

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 16.  Term and Amendment of Plan.    This
Plan was adopted by the Company’s Board on September 12, 1995 (the “Effective Date”), by the shareholders of the Company in November 1995 and was assumed by the Parent in connection with the holding company reorganization effective in
December 1998. The Plan shall expire 10 years after the Effective Date (except as to Stock Rights outstanding on that date). Subject to the provisions of Section 5 above, Stock Rights may be granted under the Plan prior to the date of shareholder
approval of the Plan. The Board may terminate or amend the Plan in any respect at any time, except that without the approval of the shareholders obtained within 12 months before or after the Board adopts a resolution authorizing any of the following
actions, 
  
 (a)  the total number of shares that may be issued under the Plan may not be
increased (except by adjustment pursuant to Section 13); 
  
 (b)  the provisions of Section
3 regarding eligibility for grants of ISOs may not be modified; 
  
 (c)  the provisions of
Section 6(b) regarding the exercise price at which shares may be offered pursuant to ISOs may not be modified (except by adjustment pursuant to Section 13); and 
  
 (d) the expiration date of the Plan may not be extended. 
  
 Except as provided in Section 13(b) and the second sentence of this Section 16, in no event may action of the Board or shareholders alter or impair the rights of a grantee, without his or her consent,
under any Stock Right previously granted. 
  
 17.  Conversion of ISOs into NSOs; Termination of
ISOs.    The Committee, at the request of any optionee, may in its discretion take such actions as may be necessary to convert such optionee’s ISOs (or any installments or portions of installments thereof) that have not
been exercised on the date of conversion into NSOs at any time prior to the expiration of such ISOs. Such actions may include, but not be limited to, extending the exercise period or reducing the exercise price of the appropriate installments of
such Options. At the time of such conversion, the Commit­tee (with the consent of the optionee) may impose such conditions on the exercise of the resulting NSOs as the Committee in its discretion may determine, provided that such conditions
shall not be inconsistent with the Plan. Nothing in the Plan shall be deemed to give any optionee the right to have such optionee’s ISOs converted into NSOs, and no such conversion shall occur until and unless the Committee takes appropriate
action. The Committee, with the consent of the optionee, may also terminate any portion of any ISO that has not been exercised at the time of such termination. 
  
 18.  Application of Funds.    The proceeds received by the Parent from the sale of shares pursuant to Stock Rights shall be used for general corporate purposes.

  
 19.  Governmental Regulation.    The Parent’s obligation to sell and
deliver shares of the Common Stock under the Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or sale of such shares. 
 

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 20.  Withholding of Additional Income Taxes. 

 
 (a)  Upon the exercise of an NSO, or the grant of a Stock Bonus or Purchase Right for less than the
fair market value of the Common Stock, the making of a Disqualifying Disposition (as defined in Section 21), the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder or the surrender of an Option pursuant to Section
15, the Company, in accordance with Section 3402(a) of the Code and any applicable state statute or regulation, may require the optionee, Stock Bonus recipient or purchaser to pay to the Parent additional withholding taxes in respect of the amount
that is considered compensation includable in such person’s gross income. With respect to (a) the exercise of an Option, (b) the grant of a Stock Bonus, (c) the grant of a Purchase Right of Common Stock for less than its fair market value, (d)
the vesting of restricted Common Stock acquired by exercising a Stock Right, or (e) the acceptance of a surrender of an Option, the Committee in its discretion may condition such event on the payment by the optionee, Stock Bonus recipient or
purchaser of any such additional withholding taxes. 
  
 (b)  At the sole and absolute
discretion of the Committee, the holder of Stock Rights may pay all or any part of the total estimated federal and state income tax liability arising out of the exercise or receipt of such Stock Rights, the making of a Disqualifying Disposition, or
the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder (each of the foregoing, a “Tax Event”) by tendering already-owned shares of Common Stock or (except in the case of a Disqualifying Disposition) by
directing the Parent to withhold shares of Common Stock otherwise to be transferred to the holder of such Stock Rights as a result of the exercise or receipt thereof in an amount equal to the estimated federal and state income tax liability arising
out of such event. In such event, the holder of Stock Rights must, however, notify the Committee of his or her desire to pay all or any part of the total estimated federal and state income tax liability arising out of a Tax Event by tendering
already-owned shares of Common Stock or having shares of Common Stock withheld prior to the date that the amount of federal or state income tax to be withheld is to be determined. If the holder of Stock Rights is an Insider, an election by an
Insider to pay all or any part of the total estimated federal and state income tax liability arising out of any Tax Event (other than a Disqualifying Disposition) by having shares of Common Stock withheld (i) shall be made at least six (6) months
prior to the date of the Tax Event and shall be irrevocable (except that an Insider can revoke such election upon six months’ notice to the Committee by making a written irrevocable election to revoke the prior election); or (ii) shall be made
in accordance with paragraph 15 of the Plan or as otherwise may be permitted pursuant to the regulations promulgated under Section 16 of the Exchange Act. For purposes of this paragraph 20, shares of Common Stock shall be valued at their fair market
value on the date that the amount of the tax withholdings is to be determined. 
  
 21.  Notice to Parent
of Disqualifying Disposition.    Each employee who receives an ISO must agree to notify the Parent in writing immediately after the employee makes a Disqualifying Disposition (as defined below) of any Common Stock acquired
pursuant to the exercise of an ISO. A “Disqualifying Disposition” is any disposition (including any sale) of such Common Stock before either (a) two years after the date the employee was granted the ISO, or (b) one year after the date the
employee acquired Common Stock by exercising the ISO. If the employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter. 
  
 22.  Governing Law; Construction.    The validity and construction of the Plan and the instruments
evidencing Stock Rights shall be governed by the laws of the State of North Carolina. In construing this Plan, the singular shall include the plural and the masculine gender shall include the feminine and neuter, unless the context otherwise
requires. 
 

 9EXHIBIT 10.4

                         MINING LEASE AND
                        OPTION TO PURCHASE

     Mining Lease and Option to Purchase (this "Lease") made Dec. 1, 2001,
between Crown Mines, L.L.C., successor in interest to Deer Trail Development
Corporation ("Crown Mines" or "Lessor") of P.O. Box 743547, Dallas, Texas
75374-3547, as Lessor, and Unico, Incorporated, an Arizona corporation "Unico"
or "Lessee") of P.0. Box 777, Magalia, California 95954, as Lessee.

     WHEREAS Crown Mines is the owner of certain mining claims more fully
described below (the "Claims") and desires to lease the Claims to Unico and
Unico desires to lease the Claims from Crown Mines;

     THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

     1.     Property Leased and Purchase Option.

            (a)     Property Leased.

     In consideration of the royalties, covenants and agreements hereinafter
expressed to be paid, kept and performed by Unico, Crown Mines hereby leases
to Unico the following premises near Marysvale, Utah, County of Piute,
consisting of patented and unpatented mining claims and mill sites:

                      See attached Exhibit A

     The leased premises includes within its bounds, but is not limited to,
those workings commonly known as the "Deer Trail Mine", the "PTH tunnel" and
premises, the "Carisa and Lucky Boy mines" and the "deep target"
molybdenum-copper prospect potential believed by the U.S. Geological Service
to exist, to the extent that the "deep target" lies beneath the claim groups
described on Exhibit A.  Lessor has informed Lessee that Lessor is attempting
to patent one or more unpatented claims at or near the PTH tunnel portal (the
"Subject Claims") by exchanging certain other patented claims owned by Lessor
(not included in the Claims) with the U.S. Forest Service.  If Lessor causes
the Subject Claims to become patented claims, Lessor agrees that such patented
claims will be covered by the Lease and constitute part of the Claims. Lessor
and Lessee agree that if Lessor owns property contiguous to the Claims (the
"Contiguous Property"), Lessee shall have extralateral rights (e.g. up to, but
not beyond, any point where a fault breaks the continuity of the vein being
actively mined) into the Contiguous Property with respect to those Claims
where it is actively mining; provided, that Lessee pays all royalties provided
for in this Lease with respect to the ore so mined and complies with any and
all common law and statutory obligations of subjacent or sublateral support.

            (b)     Purchase Option.

     As additional consideration for the payment of the advance royalty,
royalties and other commitments of Lessee found herein, Lessor hereby grants
to Lessee an option to purchase all of the Claims and mill sites as described
herein and on Exhibit A attached hereto including all dumps equipment and
personal property contained therein, for a price equal to $4,000,000, provided
that in any event Lessor shall retain a carried interest of 3% of net smelter
returns (the "Minimum Royalty") from the Claims in perpetuity. Net smelter
returns shal1 be based on the Gross Value (as defined in Exhibit B hereto)
received by Unico from sale of the mineral in the ore taken from the leased
premises computed in the manner described in Exhibit B hereto, less any
assaying, weighing, treatment and special sampling charges.

     Upon exercise of the purchase option and payment therefor in cash or
certified funds, Lessor agrees to convey good and marketable title to the
above described leased premises to Lessee free and clear of any liens,
encumbrances, overriding royalties, carried interests or other interests,
except such as may have arisen on account of Lessee's operation and lease of
the premises and the Minimum Royalty. Upon exercise of the Purchase Option and
payment therefor by Lessee, Lessee shall become the fee title owner of the
above described leased premises, subject, however to the Minimum Royalty.

            (c)     Option to Obtain Additional Royalty.

     Lessee shall give Lessor 30 days advance written notice of its intention
to exercise the purchase option above described. Upon receipt of Lessee's
notice of purchase, Lessor may at its option for 30 days, elect to retain in
addition to the Minimum Royalty, a carried interest of an additional 5% of net
smelter returns (the "Additional Royalty") from the Claims in perpetuity in
lieu of the cash payment offered by Lessee for the Claims. Net smelter returns
allocable to said carried interest shall be computed in the same manner as the
3% royalty referred to in paragraph 1(a) above.  Lessor shall advise Lessee in
writing by the 30th day after receipt of Lessee's purchase notice of its
intent to take the Additional Royalty in lieu of the cash payment. If Lessee
has not received notice of election by Lessor by the thirtieth day, then it
shall pay the applicable purchase price by the sixtieth day after the delivery
of its original purchase notice and Lessor shall transfer fee title ownership
of the Claims to Lessee while retaining only the Minimum Royalty. In the event
Lessor gives notice of its election to take the Additional Royalty Lessee may
within 30 days thereafter at its sole option, and upon notice to Lessor, elect
to nonetheless pay the $4,000,000 instead of the Additional Royalty, in which
event it shal1 pay $4,000,000 to Lessor at the end of such 30 day period (i.e.
on the sixtieth day after delivery of its original purchase price).

            (d)     Information.

     Lessor has previously furnished to Lessee copies of (or made available
for copying by Lessee) all maps, drawings reports and any available mine
history, showing the location of drill holes, drifts driven, stockpiles,
blocked out reserves, probable and or possible reserve estimates, assays,
assay reports, development and other data, as were reasonably available to
Lessor. Lessee agrees to return any and all such information to Lessor upon
termination of this Lease. Lessor also previously furnished Lessee copies of
drilling reports on the property, which shall also be returned to Lessor upon
termination of this Lease.  At any termination of this Lease, Lessee agrees to
furnish any similar data or information as to its development of the Claims to
Lessor on the same basis.  Lessee agrees to accept the property "as is" and to
indemnify and hold Lessor harmless for any damages incurred by Lessor arising
out of damage to property or person by the employees or agents of Lessee, or
any other person (other than the Lessor and those acting in Lessor's behalf)
where such damage arises on account of or in connection with the use,
operation or development of the property by Lessee.  Lessee agrees to have in
effect at the Effective Date (as defined below) and during the term of this
lease a public liability insurance policy in a reasonable amount, being at
least $1,000,000 per occurrence insuring against liability for damage to
person or property which may arise from operation of the Lease.

            (e)     Approval by Lessor's Board.

     Lessor agrees, warrants and represents that its board of managers has
taken all action necessary to enter into this Lease and that member approval
of this Lease is not necessary. Lessor further agrees, warrants and represents
that neither the execution of this document nor the exercise of the purchase
option by Lessee would result in the disposition of all or substantially all
of the assets of Lessor so as to require member approval under Utah law.
Further Lessor agrees, warrants and represents that in the event any member of
Lessor threatens to contest or contests, by court action or otherwise, the
grant or validity of this Lease or the grant, validity or exercise of the
purchase option thereunder, in any manner that it will indemnify and hold
harm1ess Lessee from any and all damages, costs and attorneys fees it may
suffer as a result of such contest and Lessor and I.N. Fehr individually each
agree to use their best efforts to obtain (and I.N. Fehr agrees to vote all
membership interests he owns or controls in favor of) any member approval or
consent which may be determined to be required and in such event, Lessor and
I.N. Fehr agree to recommend in writing approval of the Lease to the members
of Crown Mines. Lessor further agrees to provide a legal opinion or such
further assurances as Lessee may require during the term of this Lease as to
the agreements, representations and warranties contained in this paragraph.

     2.   Term; Assignment. Unico shall hold the leased premises for the
purpose of mining all kinds of minerals and ores for a period commencing on
the date of this Lease (the "Effective Date") continuing until June 1, 2004,
so long as the minimum royalty payments described below are being made and the
work condition described below is being satisfied, unless the Lease is sooner
terminated under any provision contained herein. Each party, with the prior
written consent of the other, which consent shall not be unreasonably
withheld, shall have the power to assign or sublet this Lease or any interest
hereunder.

     3.   Duties of Lessee; Royalty. Unico agrees to perform all work in a
thorough and workmanlike manner, to keep underground workings securely
timbered, drained, and clear of loose rock and rubbish, to properly dispose of
loose rock outside the mine, to assume payment of utility costs and taxes on
the Claims estimated to be approximately $25,000 per year plus any increase
due to Lessee's operations and normal cost increases over time (without
limiting the foregoing, Lessee agrees that Lessee will cause all utility
suppliers to open accounts in Lessee's name so that all utility costs can be
paid directly by Lessee, with evidence of such payment delivered to Lessor if
Lessor so requests); to keep accurate accounts, to render necessary statements
to Crown Mines showing the amount and character of production; and to pay to
Crown Mines, or its designated agent as rental for the leased Claims a five
percent (5%) royalty upon all ore taken and sold from the premises. Royalty
payments shall be based on the Gross Value (as defined in Exhibit B hereto)
received by Unico from sales of the mineral in the ore taken from the leased
premises computed in the manner set forth in Exhibit B attached hereto, less
any assaying, weighing, treatment and special sampling charges.  Payments of
all royalties by Unico shall be made to Crown Mines at the above address, or
its designated agent or bank by the l5th of the month next succeeding the
calendar month during which Unico shall have received payment for such
shipment as more fully described in Exhibit B attached hereto.  Lessor agrees
that it has no objection to Lessee's employing the services of its employee
Rell Frederick on a part time basis to assist in maintenance of the Claims.

     4.   Minimum Royalty. Unico shall pay a minimum royalty of $10,000 per
month to Crown Mines, regardless of the amount of actual production from the
Lease during a given month.

     5.   Rate of Production. Unico agrees to use its best efforts to mine and
remove mineral ores from the leased premises beginning upon the Effective Date
or as soon thereafter as is feasible as rapidly and in such quantities each
month as reasonably can be done, unavoidable delays, shortages of fuel and
labor, market conditions, adverse weather and other conditions beyond the
control of Unico to be taken into consideration as well as reasonable start-up
time. Unico agrees that as a condition to continuing this Lease, Unico shall
timely comply with and perform the work plan attached hereto as Exhibit C, and
shall deliver to Crown Mines evidence reasonably satisfactory to Crown Mines,
at Crown Mine's request from time to time, that such work plan is being timely
performed.

     6.   Right of Access. Crown Mines or its designated representative, shall
have the right, upon reasonable notice, to enter upon the leased premises to
inspect the same or take samples therefrom, and Lessee will render to Crown
Mines reasonable assistance in its power in so doing.  Without limiting the
foregoing, Lessee agrees that Lessor shall continue to have access to the
surface of the leased premises (which right sha11 continue if and after Lessee
exercises its purchase option herein) so long as such access does not
interfere with Lessee's operations on the leased premises.

      7.  Taxes and Assessments. Unico agrees to pay when due all taxes and
assessments levied against the demised premises on account of the production
of ore under this Lease. All assessment work shall be performed and affidavits
of labor recorded by Lessee in due time as may be required by law. To the
extent that Lessee's operating expenditures on the premises exceed the minimum
required to qualify for assessment work on the unpatented claims included in
the leased premises, the excess may be reported by Lessor to qualify as
assessment work on its contiguous unpatented claims as permitted by law.

     8.   Default by Lessee. Unico agrees that in case of its failure in any
substantial respect to keep and fulfill any one or more of the covenants or
agreements herein or its failure to pay the minimum monthly royalty or perform
the work condition required by paragraph 5 above, it shall then be lawful for
Lessor to declare this Lease ended. Upon any default by Lessee, Lessor shall
give Lessee written notice of such default and Lessee shall have thirty (30)
days thereafter to correct such default. In the event of an uncorrected
default, (and also upon termination of this lease), Lessee agrees to surrender
and deliver the Lessor quiet and peaceable possession of the leased premises.
Upon termination of this Lease, for any reason, Lessee shall have a period of
120 days in which to remove any and all of its own mining equipment being used
in operating the leased premises or transporting ore from such operations.

     9.   Successors and Assigns. All covenants and agreements contained
herein shall extend to and be binding upon the heirs, legal representatives,
successors and assigns of the parties.

     10.   Termination. Lessee may, at any time, surrender and terminate this
Lease upon giving to Lessor sixty (60) days notice in writing and paying all
royalties owing through the effective date of termination. The parties may
also terminate this Lease by mutual agreement. This Lease shall terminate as
provided in paragraph 2 above or upon execution of the purchase option and
payment of the purchase price by Lessee subject to the carried interest to be
retained by Lessor as provided above. Lessor may terminate this Lease as
described in paragraph 8 above or otherwise as permitted by law.

     11.   Mining Equipment.  Unico shall be entitled to use Crown Mines'
on-site equipment, consisting of air pumps, ore cars, electrical stations,
compressors, duct works, fans, trams, rails, hoists, excavating equipment and
other equipment in the mine or located on the mining claims comprising the
leased premises and shall upon termination of the Lease, return such Equipment
to Crown Mines in as good a condition as received reasonable wear and tear
excepted.  Unico shall conduct all maintenance and repair of such equipment
during the term of the lease. Unico agrees not to remove such on site
equipment from the leased premises.

     12.   Compliance with Laws. All operations of Lessee shall be conducted
so as to comply with the laws of the State of Utah and with all rules,
regulations and requirements of federal authorities and Lessee agrees to
indemnify and hold harmless Lessor for any obligations, liens or similar
liabilities arising as a result of the operations of Lessee and constituting a
lien or obligation against the premises. The parties understand and agree that
the mine is an underground mine and that no significant reclamation of the
mine site is anticipated following normal mining procedures on the Claims.
Lessor is not aware of any notice of non-compliance from any governmental
agency regarding the  property, except as described on Exhibit D, which
Exhibit and the agreement contained therein is incorporated herein by
reference. Each party to this Lease shall be responsible for any
environmental, pollution or aesthetic requirements or liability legitimately
made or assessed by a governmental entity attributable to each party's
respective period of occupancy and operation of the Claims. To the extent
permitted by law, Lessee shall be entitled to any depletion allowance on the
property as a result of its mining activities.

     13.   Entire Agreement; Governing Law. This Lease replaces in its
entirety that certain Mining Lease and Option to Purchase (the "Existing
Lease"), dated March 30, 1992, executed by Deer Trail Development Corporation,
as lessor, and Unico, as lessee, and contains the entire agreement between the
parties hereto and any amendments thereto shall be in writing. The Existing
Lease is terminated as of the effective date of this Lease. This Lease sha1l
be governed and construed under the laws of the State of Utah.

     EXECUTED as of the date first above written.

LESSEE:                              LESSOR:

Unico, Incorporated                    Crown Mines, L.L.C.

      /s/ Ray Brown                           /s/ I.N. Fehr
By:__________________________               By:___________________________
    Ray Brown, President                       I.N. Fehr, President and Sole
                                               Manager

As to the agreements, representations and warranties in the last paragraph of
paragraph one of this agreement:

                                    /s/ I.N. Fehr
                                   _____________________________
                                   I.N. Fehr, individually and
                                   as an authorized officer of
                                   Lessor

State of California     )
                        : ss.
County of Butte         )

Personally appeared before me, Ray Brown, ____ this day of ___________ 2001,
who declared to me that he is the President of Unico, Incorporated and
acknowledged that he executed the foregoing lease on behalf of said
corporation by authority of a resolution of its board of directors or bylaws.

                                   _____________________________
                                   NOTARY PUBLIC

Commission Expires:
Residing At:

State of Texas          )
                        : ss.
County of Dallas        )

Personally appeared before me, I.N. Fehr, this 16th day of Nov. 2001, who
declared to me that he is the President and Sole Manager of Crown Mines, L.C.
and acknowledged to me that he executed the foregoing lease on behalf of said
corporation by authority of a resolution of its managers or bylaws.

                                   /s/ Loriee C. Bartos
                                   NOTARY PUBLIC

Commission Expires: [NOTARY SEAL]
Residing At:

State of Texas          )
                        : ss.
County of Dallas        )

Personally appeared before me, I.N. Fehr, this 16th day of Nov. 2001, who
acknowledged to me that he executed the foregoing lease as to the last
paragraph of paragraph one in his individual capacity.

                                   /s/ Loriee C. Bartos
                                   NOTARY PUBLIC

Commission Expires:  [NOTARY SEAL]
Residing At:

<PAGE>
                      EXHIBIT A   PART II-U
            CROWN MINES L.L.C. CLAIMS LEASED TO UNICO
         Unpatented Claims Located in Piute County, Utah

------------------------------------------------------------------------------
                                     RECORDED   AMENDED           BLM SERIAL
CLAIM NAME             RECORD BOOK   PAGE       BOOK PAGE         NUMBER

APEX LODE                D           452                          95579
ATHENIA                  D           423                          95580
BUSTER                   G           459                          95585
BUSTER NO. 1             G           460                          95586
BUSTER NO. 2             G           461                          95587
BUSTER NO. 3             C           461                          95588
BUSTER NO. 4             M           129                          95589
BUSTER NO. 5             M           130                          95590
BUSTER NO. 6             M           131                          95591
BUSTER NO. 7             M           131                          95592
BUSTER NO. 8             M           132                          95593
BUSTER NO. 9             M           133                          95594
CALEDONIA LODE           D           588                          95596
CINNABAR LODE            D           584                          95599
CLIFF NO. 1              D           371                          95600
CLIFF NO. 2              D           372                          95601
CLIFF NO. 3              D           372                          95602
CLIFF NO. 4              D           373                          95603
CLIFF NO. 5              D           373                          95604
CLIFF NO. 6              D           373                          95605
CLIFF NO. 7              D           374                          95606
CLIFF NO. 8              D           374                          95607
COLUMBINE LODE           D           586                          95608
CREST LODE               D           452                          95610
DEER TRAIL EXT.          C           250                          95666
DEER TRAIL EXT. NO. 01   C           250                          95667
DEER TRAIL EXT. NO. 02   C           250                          95668
DEER TRAIL EXT. NO. 03   C           251                          95669
DEER TRAIL EXT. NO. 04   C           251                          95670
DEER TRAIL EXT. NO. 05   C           252                          95671
DEER TRAIL EXT. NO. 06   C           252                          95672
DEER TRAIL EXT. NO. 07   C           253                          95673
DEER TRAIL EXT. NO. 08   C           253                          95674
DEER TRAIL EXT. NO. 09   C           253                          95675
DEER TRAIL EXT. NO. 10   C           254                          95676
DEER TRAIL EXT. NO. 11   C           254                          95677
DEER TRAIL EXT. NO. 12   11          710        JJ    65         353982
DEER TRAIL EXT. NO. 13   11          711                         353983
DEER TRAIL EXT. NO. 14   11          772                         353984
DEER TRAIL EXT. NO. 15   11          713                         353985
DEER TRAIL EXT. NO. 24   11          722                         353994
DEER TRAIL EXT. NO. 25   11          723                         353995
DEER TRAIL EXT. NO. 26   11          724                         353996
DEER TRAIL EXT. NO. 27   11          725                         353997
DEER TRAIL EXT. NO. 28   11          726                         353998
DEER TRAIL EXT. NO. 29   11          727                         353999
DEER TRAIL EXT. NO. 30   11          728                         354000
DEER TRAIL EXT. NO. 31   11          729                         354001
DEER TRAIL EXT. NO. 32   11          730                         354002
DEER TRAIL EXT. NO. 33   11          731                         354003
DEER TRAIL EXT. NO. 34   11          732                         354004
DEER TRAIL EXT. NO. 35   11          733                         354005
DEER TRAIL EXT. NO. 36   11          734                         354006
DEER TRAIL EXT. NO. 37   11          735                         354007
DEER TRAIL EXT. NO. 38   11          736                         354008

-----------------------------------------------------------------------------

DEER TRAIL EXT. NO. 39   11          737                         354009
DEER TRAIL EXT. NO. 40   11          738                         354010
DEER TRAIL EXT. NO. 41   11          739                         354011
DEER TRAIL EXT. NO. 42   11          740                         354012
DEER TRAIL EXT. NO. 43   11          741                         354013
DEER TRAIL EXT. NO. 44   11          742                         354014
DEER TRAIL EXT. NO. 45   11          743                         354015
DEER TRAIL EXT. NO. 46   11          744                         354016
DEER TRAIL EXT. NO. 47   11          745                         354017
DEER TRAIL EXT. NO. 48   11          746                         354018
DEER TRAIL EXT. NO. 49   11          747                         354019
DEER TRAIL EXT. NO. 50   11          748                         354020
DEER TRAIL EXT. NO. 51   11          749                         354021
DEER TRAIL EXT. NO. 52   11          750                         354022
DEER TRAIL NO. 11        A           135                          95612
DEER TRAIL NO. 12        A           142                          95613
DEER TRAIL NO. 13        A           142                          95614
DEER TRAIL NO. 14        A           143                          95615
DEER TRAIL NO. 15        A           143                          95616
DEER TRAIL NO. 16        A           144                          95617
DEER TRAIL NO. 17        A           144                          95618
DEER TRAIL NO. 18        A           145                          95619
DEER TRAIL NO. 19        A           145                          95620
DEER TRAIL NO. 21        24          114                          95621
DEER TRAIL NO. 22        24          114                          95622
DEER TRAIL NO. 23        24          115                          95623
DEER TRAIL NO. 24        24          116                          95624
DEER TRAIL NO. 25        24          117                          95625
DEER TRAIL NO. 26        24          117                          95626
DEER TRAIL NO. 27        24          118                          95627
DEER TRAIL NO. 28        24          119                          95628
DEER TRAIL NO. 29        24          120                          95629
DEER TRAIL NO. 31        1           599                          95630
DEER TRAIL NO. 32        24          122                          95631
DEER TRAIL NO. 39        B            99                          95632
DEER TRAIL NO. 40        B           100                          95633
DEER TRAIL NO. 41        B           100                          95634
DEER TRAIL NO. 42        B           101                          95635
DEER TRAIL NO. 43        B           245                          95636
DEER TRAIL NO. 44        B           246                          95637
DEER TRAIL NO. 45        B           247                          95638
DEER TRAIL NO. 46        B           245                          95639
DEER TRAIL NO. 47        B           246                          95640
DEER TRAIL NO. 48        B           270                          95641
DEER TRAIL NO. 49        B           322                          95642
DEER TRAIL NO. 50        B           322                          95643
DEER TRAIL NO. 51        B           323                          95644
DEER TRAIL NO. 52        B           323                          95645
DEER TRAIL NO. 53        B           324                          95646
DEER TRAIL NO. 54        B           224                          95647
DEER TRAIL NO. 55        G           227                          95648
DEER TRAIL NO. 56        G           227                          95649
DEER TRAIL NO. 57        G           228                          95650
DEER TRAIL NO. 58        G           229                          95651
DEER TRAIL NO. 59        G           229                          95652
DEER TRAIL NO. 60        G           230                          95653
DEER TRAIL NO. 61        G           231                          95654
-----------------------------------------------------------------------------

DEER TRAIL NO. 62        G           231                          95655
DEER TRAIL NO. 63        G           232                          95656
DEER TRAIL NO. 64        G           233                          95657
DEER TRAIL NO. 65        G           233                          95658
DEER TRAIL NO. 66        G           234                          95659
DEER TRAIL NO. 67        G           234                          95660
DEER TRAIL NO. 68        G           235                          95661
DEER TRAIL NO. 69        G           235                          95662
DEER TRAIL NO. 70        G           236                          95663
DEER TRAIL NO. 71        G           237                          95664
DEER TRAIL NO. 72        G           447                          95665
FALCON LODE              D           584                          95681
FIRE FLY LODE            D           584                          95682
GOLDEN EAGLE LODE        D           583                          95693
GORGE LODE               D           463                          95697
GRAND VIEW LODE          D           423                          95698
HIDDEN TREASURE AMENDED  D           589                          95701
JONQUIL LODE             D           587                          95705
KIESTER                  D           586                          95706
LA CIGALE                D           587                          95707
LINDA PLACER             N           125                          95709
LOWER CONTRACT           D           450                          95714
MONSTER #3               B           123                          95719
MONSTER #4               B           123                          95720
MONSTER #5               B           124                          95721
MONSTER #6               B           124                          95722
MONSTER #7               B           125                          95723
M6NSTER #8               B           125                          95724
MONSTER #9               B           126                          95725
MOUNTAIN CHIEF AMENDED   D           589                          95726
MOUNTAIN CHIEF NO. 1     M           128                          95727
MOUNTAIN CHIEF NO. 2     M           129                          95728
OLD CHANNEL LODE         D           464                          95747
OLD CHANNEL LODE NO. 1   M            81                          95748
PLUTO FRACTION           N           273                          95741
PORCUPINE LODE           D           588                          95742
PORTAL LODE              D           453                          95749
PORTAL NO. 1             M            82                          95750
PORTAL NO. 2             M            83                          95751
PYRITE LODE              D           585                          95729
RED KNOLL LODE           D           453                          95731
SANTA MARIA              D           464                          95735
SILVER WEDGE             D           422                          95737
SLOPE NO. 1              D           450                          95752
SLOPE NO. 2              D           451                          95753
SLOPE NO. 3              D           451                          95754
SLOPE NO. 4              M            83                          95755
SLOPE NO. 5              M           127                          95756
SLOPE NO. 6              M           127                          95757
SNOW SHOE LODE           D           583                          95760
SYLVIA PLACER            N           126                          95763
TAMARAC LODE             D           585                          95764
THE REEF LODE            D           588                          95732
TOMAHAWK LODE            D           583                          95767
TOPAZ LODE               D           587                          95768
VICTORY LODE             D           586                          95771
WHITE FLINT LODE         D           423                          95776
WILD CAT LODE            D           585                          95758
WOODLAND LODE            D           451                          95759

-----------------------------------------------------------------------------

   TOTAL CLAIMS           171

     Mining Lease Agreement between Crown Mines L.L.C., Owner
                 And Unico, Incorporated, Lessee

                            EXHIBIT B

Gross value Computation

1.     Definitions.

         1.1      "Gold Production" means the quantity of refined gold
outturned to Lessee's account by an independent third party refinery for gold
produced from the Property during the calendar month on either a provisional
or final settlement basis.

         1.2     "Gross Value" shall be determined on a calendar month basis
and have the following meanings with respect to the following Minerals:

         1.2.1  Gold

     (a)  If Lessee sells unprocessed gold ores, or gold dore or gold
concentrates produced from Minerals, then Gross Value shall be equal to the
proceeds received by Lessee during the calendar month from such sales. Lessee
shall have the right to sell such unprocessed gold ores, gold dore and gold
concentrates to an affiliated party, except that such sales shall be
considered to have been sold at prices and on terms no less favorable than
those that would be obtained from an unaffiliated third party in similar
quantities and under similar circumstances.

     (b)  If Lessee produces refined gold (meeting the specifications of the
London Bullion Market Association) from Minerals, and if Section 1.2.1(a)
above is not applicable, then for purposes of determining Gross Value, the
refined gold shall be deemed to have been sold at the Monthly Average Gold
Price for the month in which it was refined. The Gross Value shall be
determined by multiplying Gold Production during the calendar month  by the
Monthly Average Gold Price.

         1.2.2 Silver.

     (a) If Lessee sells unprocessed silver ores, or silver dore or silver
concentrates produced from Minerals, then Gross Value shall be equal to the
proceeds received by Lessee during the calendar month from such sales. Lessee
shall have the right to sell such unprocessed silver ores, silver dore and
silver concentrates to an affiliated party, provided that such sales shall be
considered to have been sold at prices and on terms no less favorable than
those that would be obtained from an unaffiliated third party in similar
quantities and under similar circumstances.

     (b) If Lessee produces refined silver (meeting the specifications for
refined silver subject to the New York Silver Price published by Handy &
Harmon) from Minerals, and if Section 1.2.2(a) above is not applicable, the
refined silver shall be deemed to have been sold at the Monthly Average Silver
Price for the month in which it was refined. The Gross Value shal1 be
determined by multiplying Silver Production during the calendar month by the
Monthly Average Silver Price.

         1.2.3 All Other Minerals.

     (a) If Lessee sells unprocessed ores, dore or concentrates of any
Minerals other than gold or silver, then the Gross value shall be equal to the
amount of proceeds received by Lessee during the calendar month from such
sales. Lessee shall have the right to sell such unprocessed ores, dore or
concentrates to an affiliated party, provided that such sales shall be
considered, solely for the purpose of determining Gross Value, to have been
sold at prices and on terms no less favorable than those that would be
obtained from an unaffiliated third party in similar quantities and under
similar circumstances.

     (b) If Lessee produces refined or processed metals from Minerals other
than refined gold or refined silver, and if Section 1.2.3(a) above is not
applicable, then Gross Value shall be equal to the amount of the proceeds
received by Lessee during the calendar month from the sale of such refined or
processed metals. Lessee shall have the right to sell such refined or
processed metals to an affiliated party, provided that such sales shall be
considered to have been sold at prices and on terms no less favorable than
those that would be obtained from an unaffiliated third party in quantities
and under similar circumstances.

         1.3  "Minerals" means gold, silver, platinum, antimony, mercury,
copper, lead, zinc, and all other mineral, base and precious metals, elements
and mineral compounds, which are contemplated to exist on the Property or
which are after the effective date of the Lease (the "Effective Date")
discovered on the Property and which can be extracted, mined or processed by
any method presently known or developed or invented after the Effective Date.

         1.4  "Monthly Average Gold Price" means the average London Bullion
Market Association Afternoon Gold Fix, calculated by dividing the sum of all
such prices reported for the calendar month by the number of days for which
such prices were reported during that month. If the London Bullion Market
Association Afternoon Gold Fix ceases to be published, all such references
shall be replaced with references to prices of gold for immediate sale in
another established market selected by Lessee, as such prices are published in
Metals Week magazine.

         1.5 "Monthly Average Silver Price" means the average New York Silver
Price as published daily by Handy & Harmon, calculated by dividing the sum of
all such prices reported for the calendar month by the number of days in such
calendar month for which such prices were reported. If the Handy & Harmon
quotations cease to be published, all such references shall be replaced with
references to prices of silver for immediate sale in another established
market selected by Lessee as published in Meta1s Week magazine.

         1.6 "Property' means the real property and patented and unpatented
mining claims described in Exhibit A to the Lease to which this exhibit is
attached.

         1.7 "Silver Production" means the quantity of refined silver
outturned to Lessee's account by an independent third-party refinery for
silver produced from the Property during the calendar month on either a
provisional or final settlement basis.

2.   Payment Procedures.

         2.1 Accrual of Obligation.  Lessee's obligation to pay the royalty
provided in the Lease shall accrue upon the sale of unrefined metals, dore,
concentrates, ores or other Minerals products or, if refined  metals are
produced, upon the outturn of refined metals meeting the requirements of the
specified published price to Lessee's account.

         2.2 Futures or Forward Sales, Etc. Except as provided in Sections
1.2.1(a), 1.2.2(a) and 1.2.3 above (with respect to sales of unprocessed gold
and silver and sales of Minerals other than gold and silver), Gross Value
shall be determined, irrespective of any actual arrangements for the sale or
other disposition of Minerals by Lessee, specifically including but not
limited to forward sales, futures trading or commodities options trading, and
any other price hedging, price protection, and speculative arrangements that
may involve the possible delivery of gold, silver or other metals produced
from Minerals.

         2.3 Monthly Calculations and Payments. The royalties shall be
determined on a calendar month basis. The royalties required to be paid
pursuant to the Lease shall be paid on or before the date specified in the
Lease.

         2.4 Statements. At the time of payment of the royalty required to be
paid pursuant to the Lease, Lessee shall accompany such payment with a
statement showing in reasonable detail the quantities and grades of refined
gold, silver or other metals or dore, concentrates or ores produced and sold
or deemed sold by Lessee in the preceding calendar month; the Monthly Average
Gold Price and Monthly Average Silver Price, as applicable; costs and other
deductions, and other pertinent information in reasonable detail to explain
the calculation of the royalty payment with respect to such calendar month.
Payment shall be made to the address provided in the Lease to which this
Exhibit is attached for purposes of notices.

         2.5 Inventories and Stockpiles. Lessee shall include in all monthly
statements a description of the quantity and quality of any gold or silver
dore that has been retained as inventory for more than ninety (90) days:
Lessor shall have thirty (30) calendar days after receipt of the statement to
either (a) elect that the dore be deemed sold, with Gross Value to be
determined as provided in Sections 1.2.1(b), with respect to gold, and
1.2.2(b), with respect to silver, as of such thirtieth (30th) day utilizing
the mine weights and assays for such dore and utilizing a reasonable recovery
rate for refined metal and reasonable deemed charges for any deductions
specified in the Lease, or (b) elect to wait until such time as royalties
otherwise would become payable pursuant to  Sections 1.2.1(b) and 1.2.2(b).
The failure of Owner to respond within such time shall be deemed to
be an election to use the methods described in Sections 1.2.l(b) and l.2.2(b).
No royalty shall be due with respect to stockpiles of ores or concentrates
unless and until such ores or concentrates are actually sold.

         2.6 Final Settlement. All royalty payments shall be considered final
and in full satisfaction of Lessee's obligations with respect thereto, unless
Lessor gives Lessee written notice describing a specific objection to the
calculation thereof within two years after receipt by Lessor of the monthly
statement provided for in 2.5 above. If Lessor objects to a particular monthly
statement, it shall have the right, for a period of thirty (30) days after
Lessee's receipt of such objection, upon reasonable notice and at a reasonable
time, to have Lessee's accounts and records relating to the calculation of the
royalty payment with respect to the calendar month in question audited by an
independent certified public accountant. If such audit determines that there
has been a deficiency or an excess in the payment made to Lessor, such
deficiency or excess shall be resolved by adjusting the next monthly royalty
payment due Lessor. Lessor shall pay all costs of such audit unless a
deficiency of five percent (5%) or more of the royalty due for the calendar
month in question is determined to exist. Lessee shall pay the costs of such
audit if a deficiency of five percent (5%) or more of the amount due for the
calendar month in question is determined to exist. All books and records used
by Lessee to calculate the royalties due hereunder shall be kept in accordance
with generally accepted accounting principles.

         2.7 Transfer or Encumbrance of Royalty. Lessor may transfer, pledge,
mortgage, charge or otherwise encumber all or any part of its right, title and
interest in and to the royalty to which it is entitled under the Lease, except
that Lessee shall be under no obligation to make its payments to such
assignee, transferee, pledgee or other third party until Lessee's receipt of
written notice concerning the assignment, transfer or pledge.

          LEASE MADE DEC. 1, 2001, BETWEEN CROWN MINES,
          AS LESSOR, AND UNICO, INCORPORATED, AS LESSEE

                            EXHIBIT C

In order to fully develop the Deer Trail deposits it is deemed necessary to
excavate a new haulage/access tunnel. This new access tunnel will be located
within the leased premises and in an area that will give the greatest
advantage to cost effectively extract future production from the Deer Trail
deposits.

This access will be an inclined tunnel at no more than 12% grade. To be
complete with all service lines, i.e. compressed air, water, ventilation
ducts, electrical and communication lines. To be complete where necessary with
proper ground control measures such as rock bolts, mesh, steel sets
and/or timbers and to be in compliance with all MSHA (Mine Safety and Health
Administration) standards. The inclined tunnel will be large enough to
accommodate rubber tired mining equipment such as scoop trams, jumbo drills,
underground haulage trucks, and exploration equipment. The new tunnel will
also be large enough to extract in excess of 400 tons per day.

Construction of the new access tunnel is to be started prior to May 31, 2002,
and shall be completed within the first year of this signed Lease, with
extensions given for force majeure delays.

                            EXHIBIT D

                               NONE

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