Document:

CC Filed by Filing Services Canada Inc. 403-717-3898

Newcrest

Resources

Inc.

 

August 15, 2008

Mr. Kenneth D. Cunningham

President 

Miranda U.S.A., Inc.

5900 Philoree Lane

Reno, Nevada 89511

Re: Horse Mountain Project, Lander County, Nevada

Dear Mr. Cunningham:

The purpose of this letter (Letter Agreement) is to set forth binding contract terms between Miranda U.S.A., Inc., a Nevada corporation (Miranda) and Newcrest Resources, Inc., a Colorado corporation (Newcrest) for a farm in and joint venture arrangement in relation to the Horse Mountain Project constituted by the leasehold interest in (a) the unpatented claims in Lander County, Nevada listed in Exhibit A of the Mining Lease Agreement between Miranda and Bruce Miller dated November 23, 2004 described in Attachment 1 hereto (Lease) and (b) 20 HMF claim fractions that have been transferred by Miranda to Bruce Miller, also more particularly described in Attachment 1 hereto  (collective, the Project).  

1.

Grant of Exclusive Right to Acquire Interest in Project and Enter into Joint Venture Agreement.  Miranda hereby grants to Newcrest the exclusive right to acquire an undivided interest in the Project, subject to the terms and conditions of this Letter Agreement and a Joint Venture Agreement, which shall be based upon the Rocky Mountain Mineral Law Foundation's Model Exploration, Development and Mine Operating Agreement, 1996 Edition (Form 5A), unless the parties (in their respective discretions) subsequently agree to use instead the Rocky Mountain Mineral Law Foundation's Form 5A LLC Model Exploration, Development and Mining Limited Liability Company, as more specifically described in paragraph 7 below.

 

1536 Cole Blvd.

Suite 210

Lakewood, Colorado

80401

U.S.A.

Telephone

(720) 274-0978

Facsimile

(720) 274-0983

info@

newcrestamer.com

-1-

2.

Miranda Property Obligations.  Miranda will at its cost procure as soon as possible the granting of written express consent by Bruce Miller to this Letter Agreement (including to any transfer to Newcrest of an interest in the Project, subject to Newcrest executing and delivering a written instrument as referred to in Section 40.1 of the Lease).  Miranda shall also procure from Bruce Miller an executed Memorandum of Mining Lease Agreement concerning the Project (including as amended to include the 20 HMF claim fractions that have been transferred by Miranda to Bruce Miller) in recordable form reasonably satisfactory to Newcrest and have that memorandum recorded.  Miranda undertakes to complete these obligations as soon as possible.  If any of these obligations are not completed by 30 September 2008 (or any later date that Newcrest may in its discretion notify in writing to Miranda), Newcrest may terminate this Letter Agreement and the parties shall have no further obligation to each other.

3.

Memorandum for Recording.  Miranda shall by 31 August 2008 deliver to Newcrest a Memorandum of Option in the form attached hereto as Attachment 2, duly executed and notarized, for purposes of documenting of record Newcrest’s right to acquire a 60% undivided interest in the Project as provided in paragraph 4 below and, upon such acquisition of a 60% interest, the option to acquire an additional 10% undivided interest in the Project as provided in paragraph 5 below.

4.

Newcrest Work Expenditures.  In this Agreement the “Effective Date” is May 15, 2008.  In order to maintain this Letter Agreement in effect and maintain its right to earn an undivided 60% interest in the Project, Newcrest must incur the Work Expenditures described below.  If Newcrest fails to do so, the sole effect shall be termination of this Letter Agreement as of the applicable deadline, except for the $500,000 Work Expenditure for due on or before the first anniversary of the Effective Date, including certain lease and claim maintenance payments, as provided in paragraph 4.B below.  

A.

Newcrest shall expend the following amounts as “Work Expenditures” on or before each designated anniversary of the Effective Date on Exploration (as defined in Form 5A) operations on or for the benefit of the Project: 

			
	Anniversary of 

Effective Date

	Incremental Amount

	Cumulative Amount

	First

	$   500,000

	$   500,000

	Second

	$   750,000

	$1,250,000

	Third

	$1,000,000

	$2,250,000

	Fourth

	$1,000,000

	$3,250,000

Any excess Work Expenditures by Newcrest over the applicable minimum cumulative requirement due as of any anniversary of the Effective Date will carry over to (and counted towards) the remaining annual expenditure requirements for subsequent annual periods.

-2-

B.

If this Letter Agreement terminates within 60 days of the due dates for any lease or other contractual payments related to the Project or within 60 days of the deadline for annual BLM maintenance fees for unpatented claims within the Project, Newcrest shall be obligated to make those payments or pay those fees, as applicable.  No part of the Project shall be dropped or released while this Letter Agreement remains in effect, unless both Newcrest and Miranda approve of same in writing.  For purposes of determining what charges and costs will credit against the above expenditure requirements, the parties shall utilize the Accounting Procedures attached as Exhibit B to Form 5A, with the exceptions that (i) advance royalty payments to Bruce Miller under the Lease shall not constitute Allowable Costs under the Accounting Procedures, as described in paragraph 8 of this Letter Agreement, and (ii) the charge under Subsection 2.13(a)(i) of those Accounting Procedures for Newcrest's home office and general and administrative expenses shall be a flat fee of 5.0% of all Allowable Costs (as defined in those Accounting Procedures as herein modified).  Newcrest and Miranda agree that this figure may be adjusted upward if Newcrest can demonstrate by audited statements that home office and general and administrative expenses related to the Joint Venture are greater than 5.0% of all Allowable Costs and that the percentage charge should be raised by at least 1.0 to a total of 6.0% or higher.  Any such increase must be reconfirmed on an annual basis, and if not reconfirmed the percentage charge allowed will revert to 5.0%.  

Newcrest must comply with the $500,000 minimum Work Expenditure requirement due before the first anniversary of the Effective Date before being entitled to withdraw.

C.

Responsibility for Reclamation and Environmental Conditions:  Unless and until the parties enter into a Joint Venture Agreement pursuant to paragraph 7. below:

(a)

Newcrest shall have sole responsibility and liability, to the extent that such liabilities may be imposed by law, regulation or governmental agency, for reclamation of disturbances of the Project caused by its Exploration operations pursuant to paragraph 4.B above; and 

(b)

Miranda shall retain sole responsibility and liability for all other environmental conditions of the Project, to the extent that such liabilities may be imposed by law, regulation or governmental agency.  

If and at such time as the parties enter into the Joint Venture Agreement pursuant to paragraph 7. below, such responsibility and liability for the environmental conditions of the Project, regardless of when created, shall thereafter be borne by the Joint Venture.

Upon completion of the Work Expenditures in the amount of $3,250,000, Miranda shall deliver to Newcrest an Assignment substantially in the form of Attachment 3 hereto assigning to Newcrest a 60% undivided interest in the Project.

-3-

5.

Newcrest's Right to Earn Additional 10% Participating Interest.  If Newcrest earns a 60% undivided interest in the Project pursuant to paragraph 4, it will then have the option to increase its interest in the Project to 70% by spending a further US$5,000,000 on Exploration Work Expenditures at the Project within a further 3 years from completion of the initial Work Expenditures.  Upon completion of these additional Work Expenditures in the amount of $5,000,000, Miranda shall deliver to Newcrest an Assignment substantially in the form of Attachment 3 hereto assigning to Newcrest an additional 10% undivided interest in the Project.

6.

Failure to Earn.  If Newcrest fails to expend the cumulative amount due as of any anniversary of the Effective Date and at least $3,250,000 for Work Expenditures by the fourth anniversary of the Effective Date, then subject to the cure provision below in this paragraph, this Letter Agreement shall terminate as of that date, and Newcrest shall deliver to Miranda a quitclaim and release of all right, title and interest of Newcrest in and to the Project.  If Newcrest is deficient as to its cumulative Work Expenditure as of any anniversary of the Effective Date, Newcrest may cure the deficiency by paying the deficiency amount directly to Miranda within 15 days after notice of the deficiency from Miranda.  If Newcrest earns the 60% undivided interest in the Project and elects to earn an additional 10% undivided interest in the Project pursuant to paragraph 5, above, and thereafter fails to make the required Work Expenditures within the three years allowed, then Newcrest shall retain the initial 60% it has earned, the right to earn any additional interest pursuant to paragraph 5 shall terminate and the Joint Venture shall commence as described in paragraph 7 below.

7.

Conditions for Entering into Joint Venture Agreement.  At such time as Newcrest has (a) expended  $3,250,000 for Work Expenditures pursuant to paragraph 7 above in order to earn a 60% interest in the Project pursuant to Section paragraph 7 and elects not to increase that interest, or (b) has expended a total of $8,250,000 in order to earn a 70% interest in the Project pursuant to paragraph 5:

A.

The parties shall enter into a Joint Venture Agreement, based upon Form 5A, which shall be modified so as to be consistent with the provisions of this Letter Agreement and to incorporate the terms contained in Attachment 4 hereto;

C.

Newcrest shall contribute as its Initial Contribution pursuant to Section 5.1 of Form 5A its undivided 60% or 70% interest, as applicable, in the Project;

D.

Miranda shall contribute as its Initial Contribution pursuant to Section 5.1 of Form 5A its undivided 40% interest or 30% interest in the Project, as applicable; and

E.

Upon negotiation and execution of a definitive Joint Venture Agreement, this Letter Agreement shall terminate, and all subsequent operations on and for the benefit of the Project shall be governed by the Joint Venture Agreement.

-4-

F.

At any time while Newcrest is earning its interest in the Project, either party may prepare the form of Joint Venture Agreement it proposes to be used upon earn-in.  Each party covenants to negotiate diligently and in good faith to reach agreement on the terms and conditions of the definitive Joint Venture Agreement prior to the time Newcrest has earned in pursuant to paragraph 4.  

G.

Delay in negotiating the definitive Joint Venture Agreement shall not delay the Joint Venture becoming effective in accordance with the terms of this Letter Agreement, with the following terms being operative:

 

(a)

a joint venture will be deemed to be established between the parties for the exploration and, if warranted, development of the Project;

(b)

each party will be deemed to have contributed its Project interest share, or (up to a decision to mine) each party’s Project interest shall be subject to dilution, applying the formula in Form 5A, without any acceleration factor; 

(c)

Newcrest will be manager of the joint venture and entitled to a 5% administrative fee; and

(d)

each party will have voting rights regarding operations of the joint venture in the same proportion as its undivided interest in the Project.

8.

Property Payments.  Newcrest will meet advance royalty payments due to Bruce Miller under the Lease whilst it is earning in.  These payments will not count towards Newcrest’s earn-in Work Expenditure commitment either under paragraph 4 or 5.  Expenditures to satisfy work expenditure commitments under Section 4 of the Lease (including payments in lieu thereof) shall also constitute proper Work Expenditures under this Letter Agreement.  Once Newcrest has earned a 60% interest and elected not to earn a further 10% interest above 60% or earned a 70% interest (as applicable), the joint venture will meet any further advance royalty payments due to Bruce Miller under the Lease (which will count as joint venture expenditures).

9.

Representations and Warranties.

A.   Miranda and Newcrest hereby incorporate by reference the Participants' representations and warranties contained in Section 3.1 of Form 5A.

B.

Miranda hereby incorporates by reference the representations and warranties of "XCO" in Section 3.2 of Form 5A.

C.

Miranda hereby represents and warrants that it has received and reviewed full and complete copies of Form 5A, including all Exhibits thereto.

10.

"Dollars" and "$".  All references to "Dollars" and "$" are to United States Dollars.

-5-

11.

Force Majeure.  The provisions of Section 19.7 of Form 5A are incorporated herein by reference with respect to obligations of Newcrest and time periods for Work Expenditures under Section 4 above.  The blank in that section, for purposes of this Letter Agreement, shall be "two (2)" months.  Also included as Force Majeure events shall be the inability to gain access or permits for access to the Project for Exploration operations and the inability to obtain qualified drillers and adequate drilling equipment or other critical equipment for Exploration operations.

12.

Miranda's Right to Data and Confidentiality.  During the term of this Letter Agreement, Miranda shall have the right to review all data and information obtained by Newcrest regarding the Project, provided that it gives Newcrest reasonable advance notice of its desire to inspect same and provided further that such information shall be provided to Miranda without any representations or warranties by Newcrest as to the accuracy or completeness of same.  Newcrest shall prepare and deliver to Miranda reports of its progress and findings as soon as reasonably possible, if that information is reasonably determined by Newcrest or Miranda to be material for disclosure purposes, and in any event shall be delivered to Miranda on at least an annual basis.  All such information shall be kept confidential by the parties and shall not be disclosed except as may be necessary to comply with rules or regulations of any governmental agency or stock exchange.  Miranda or its parent company, Miranda Gold Corp., and Newcrest and any of its parent companies shall have the right, subject to reasonable advance notice to the other in order to allow the other to comment on the same, to prepare and disseminate news releases on the results and progress of Exploration operations on the Project.

13.

Governing Law; Jurisdiction and Venue.  This Letter Agreement shall be governed by Nevada law, and any disputes hereunder shall be resolved in Nevada State or Federal court.

14.

Assignment:  Except as provided below in this paragraph, neither party shall assign its rights under this Letter Agreement or in the Project without the prior written consent of the other party (not to be unreasonably withheld).  Any such assignment in violation of this provision shall be void.  Notwithstanding the foregoing, either party may assign its rights hereunder to an Affiliate as defined in Form 5A without the consent of the other.

15.

Area of Interest:  The parties hereby create an “Area of Interest” extending one (1) mile from the existing boundaries of the Property.  All claims granted to/located by Miranda or Newcrest within the Area of Interest, including any interior fractions (but, to avoid doubt, excluding any claims granted to/located by any third party), shall be subject to the terms of this Letter Agreement.

16.

Counterparts:  This Letter Agreement may be executed in any number of counterparts.  All counterparts taken together will constitute one instrument.  A faxed or emailed copy of this Letter Agreement can constitute a counterpart for the purposes of this Paragraph 16.

-6-

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have executed this Letter Agreement as of the date first written above.

MIRANDA U.S.A., INC., a Nevada corporation

By:

Title:

Date of Execution:

NEWCREST RESOURCES, INC., a Colorado corporation

By:

Title:

Date of Execution:

-7-

ATTACHMENT 1

to

Letter Agreement

Between

Newcrest Resources, Inc.

and Miranda U.S.A., Inc.

1.

Leases and Agreements

See Exhibit A to Mining Lease Agreement between Miranda and Bruce Miller dated November 23 2004

2.

Owned Patented Mining Claims

No Patented Mining Claims owned by Newcrest or Miranda are subject to this Agreement.

3.

Owned Unpatented Mining Claims

No Unpatented Mining Claims owned by Newcrest or Miranda.

4.

Other Properties

20 HMF claims described in a quitclaim deed from Miranda U.S.A., Inc. to Bruce W. Miller, recorded in Lander County, Nevada, on May 9, 2008, as Document No. 251122, which are now subject to the Mining Lease Agreement described in Paragraph 1, above, of this Attachment 1.

 

-1-

ATTACHMENT 2

to

Letter Agreement

Between

Newcrest Resources, Inc. and Miranda U.S.A., Inc.

Recorded at the request of

and when recorded return to:

NEWCREST RESOURCES, INC.

Attn:  Land Department

1536 Cole Boulevard, Suite 210

Golden, CO  80401

MEMORANDUM OF OPTION TO ENTER INTO JOINT VENTURE AGREEMENT

THIS MEMORANDUM OF OPTION TO ENTER INTO JOINT VENTURE AGREEMENT ("this Memorandum") is made and entered into effective as of                                     (“Effective Date”).

BY AND BETWEEN

NEWCREST RESOURCES, INC., a Colorado corporation

1536 Cole Boulevard, Suite 210

Golden, Colorado  80401

Phone:  303-239-8796

Fax:  303-239-9180

(referred to below as "NEWCREST")

AND

MIRANDA U.S.A , INC., a Nevada corporation

5900 Philoree Lane

Reno, Nevada 89511

(referred to below as "MIRANDA").

1.

Pursuant to a certain Letter Agreement of even date (“Letter Agreement”), MIRANDA has granted to NEWCREST the exclusive right and option:

(a)

 to acquire an 60% undivided interest in and to that certain Mining Lease Agreement between Bruce Miller W. Miller as lessor and Miranda as Lessee, dated November 23, 2004, as amended effective     , 2008 (the “Lease”), disclosed in a Memorandum of Mining Lease Agreement recorded       , 2008 as Document No.   , in Lander County, Nevada, pertaining to the properties lying and being in the County of Lander and State of Nevada, described more particularly in Exhibit A hereto, which by this reference is made a part hereof (the “Properties”) by performance of certain “Work Expenditures” (as defined in the Letter Agreement) in connection with the Properties; 

[Miranda Letter Agr., February 6, 2007]

(b)

if NEWCREST acquires the 60% undivided interest described in paragraph (a) above, to acquire an additional 10% undivided interest in the Lease by performing certain additional Work Expenditures in connection with the Properties; and 

(c)

to enter into a joint venture with MIRANDA for further exploration and development of the Properties (“Joint Venture Agreement”). 

2.

NEWCREST has as long as 4 years from the Effective Date to complete the requisite Work Expenditures pursuant to the Letter Agreement in order to acquire a 60% interest and as long as an additional 3 years to complete the requisite Work Expenditures in order to acquire an additional 10% interest.   

3.

Either party’s interest in the Joint Venture Agreement and the Properties may be changed or may be extinguished, as provided in the Joint Venture Agreement.

4.

Either party may be required to sell its interest in the Properties and its Participating Interest in the Joint Venture Agreement to the other upon the occurrence of certain conditions set forth in the Joint Venture Agreement.  

5.

Any transfer of a party’s interest in the Properties and the Joint Venture Agreement is subject to certain restrictions and conditions and to a pre-emptive right in favor of the other party. 

6.

Additional terms and conditions of the relationships between the parties and concerning NEWCREST’s rights in the Properties are contained in the Letter Agreement.  Nothing contained herein enlarges or diminishes the respective rights and obligations of either NEWCREST or MIRANDA under their more comprehensive Letter Agreement and the Joint Venture Agreement contemplated thereunder.  Information concerning the more comprehensive contract may be obtained from NEWCREST at the address for NEWCREST given above.

IN WITNESS WHEREOF, the parties have executed this Lease effective as of the day and year first above written.

			
	NEWCREST:

NEWCREST RESOURCES, INC., a Colorado corporation

By:

Typed Name:

Title:

	 
	MIRANDA:

MIRANDA U.S.A, INC., a Nevada corporation

By:

Typed Name:

Title:

-1-

STATE OF COLORADO

)

) ss.

COUNTY OF __________

)

The foregoing instrument was acknowledged before me on                          , by                                    as ____________________ of Newcrest Resources, Inc., a Colorado corporation. 

Witness my hand and official seal.

My Commission expires:               .

[SEAL]

Notary Public

STATE OF NEVADA

)     

) ss.

COUNTY OF_______________

)                                                                     

The foregoing instrument was acknowledged before me on                             , by                                                       as          of Miranda U.S.A., Inc., a Nevada corporation.

Witness my hand and official seal.

My Commission expires:               .

[SEAL]

Notary Public

-2-

EXHIBIT A:  PROPERTY DESCRIPTION

The following listed 159  unpatented mining claims located within portions of Sections 21, and 27 through 34, T.28N. R.45E., M.D.M.; Sections 25 and 36, T.28N. R.44E., M.D.M., Lander County, Nevada, more particularly described: 

CLAIM

        LOCATION         FILED

    COUNTY RECORDER          FILED           BLM SERIAL NO

NAME

         DATE

        COUNTY

          BOOK/PAGE

           BLM

             NMC

Mill-B 164

04/19/1994

07/11/1994

   409 / 062

07/15/1994

     702149

Mill-B 165

04/19/1994

07/11/1994

   409 / 063

07/15/1994

     702150

Mill-B 166

04/19/1994

07/11/1994

   409 / 064

07/15/1994

     702151

Mill-B 167

04/19/1994

07/11/1994

   409 / 065

07/15/1994

     702152

Mill-B 168

04/19/1994

07/11/1994

   409 / 066

07/15/1994

     702153

Mill-B 170

04/19/1994

07/11/1994

   409 / 067

07/15/1994

     702154

Mill-B 172

04/19/1994

07/11/1994

   409 / 068

07/15/1994

     702155

Mill-B 174

04/19/1994

07/11/1994

   409 / 069

07/15/1994

     702156

Mill-B 176

04/19/1994

07/11/1994

   409 / 070

07/15/1994

     702157

Mill-B 120

05/05/1994

07/25/1994

   409 / 318

08/02/1994

     703197

Mill-B 121

05/05/1994

07/25/1994

   409 / 319

08/02/1994

     703198

Mill-B 122

05/05/1994

07/25/1994

   409 / 320

08/02/1994

     703199

Mill-B 123

05/05/1994

07/25/1994

   409 / 321

08/02/1994

     703200

Mill-B 124

05/05/1994

07/25/1994

   409/ 322

08/02/1994

     703201

Mill-B 125

05/05/1994

07/25/1994

   409 / 323

08/02/1994

     703202

Mill-B 126

05/06/1994

07/25/1994

   409 / 324

08/02/1994

     703203

Mill-B 127

05/06/1994

07/25/1994

   409 / 325

08/02/1994

     703204

Mill-B 128

05/06/1994

07/25/1994

   409 / 326

08/02/1994

     703205

Mill-B 129

05/06/1994

07/25/1994

   409 / 327

08/02/1994

     703206

Mill-B 130

05/06/1994

07/25/1994

   409 / 328

08/02/1994

     703207

Mill-B 131

05/06/1994

07/25/1994

   409 / 329

08/02/1994

     703208

Mill-B 132

05/06/1994

07/25/1994

   409 / 330

08/02/1994

     703209

Mill-B 133

05/06/1994

07/25/1994

   409 / 331

08/02/1994

     703210

Mill-B 134

05/06/1994

07/25/1994

   409 / 332

08/02/1994

     703211

Mill-B 135

05/06/1994

07/25/1994

   409 / 333

08/02/1994

     703212

Mill-B 136

05/23/1994

07/25/1994

   409 / 334

08/02/1994

     703213

Mill-B 137

05/23/1994

07/25/1994

   409 / 335

08/02/1994

     703214

Mill-B 138

05/23/1994

07/25/1994

   409 / 336

08/02/1994

     703215

Mill-B 139

05/23/1994

07/25/1994

   409 / 337

08/02/1994

     703216

Mill-B 140

05/23/1994

07/25/1994

   409 / 338

08/02/1994

     703217

Mill-B 141

05/23/1994

07/25/1994

   409 / 339

08/02/1994

     703218

Mill-B 142

05/23/1994

07/25/1994

   409 / 340

08/02/1994

     703219

Mill-B 143

05/23/1994

07/25/1994

   409 / 341

08/02/1994

     703220

Mill-B 144

05/23/1994

07/25/1994

   409 / 342

08/02/1994

     703221

Mill-B 145

05/23/1994

07/25/1994

   409 / 343

08/02/1994

     703222

Mill-B 146

05/23/1994

07/25/1994

   409 / 344

08/02/1994

     703223

Mill-B 147

05/23/1994

07/25/1994

   409 / 345

08/02/1994

     703224

Mill-B 148

05/23/1994

07/25/1994 

   409 / 346

08/02/1994

     703225

Mill-B 149

05/23/1994

07/25/1994

   409 / 347

08/02/1994

     703226

Mill-B 150

05/23/1994

07/25/1994 

   409 / 348

08/02/1994

     703227

Mill-B 151

05/23/1994

07/25/1994

   409 / 349

08/02/1994

     703228

Mill-B 152

05/23/1994

07/25/1994

   409 / 350

08/02/1994

     703229

[

-1-

CLAIM

        LOCATION         FILED

    COUNTY RECORDER          FILED           BLM SERIAL NO

NAME

         DATE

        COUNTY

          BOOK/PAGE

           BLM

             NMC

Mill-B 153

05/23/1994

07/25/1994

   409 / 351

08/02/1994

     703230

Mill-B 154

05/23/1994

07/25/1994

   409 / 352

08/02/1994

     703231

Mill-B 155

05/23/1994

07/25/1994

   409 / 353

08/02/1994

     703232

Mill-B 156

05/23/1994

07/25/1994

   409 / 354

08/02/1994

     703233

Mill-B 157

05/23/1994

07/25/1994

   409 / 355

08/02/1994

     703234

Mill-B 158

05/23/1994

07/25/1994

   409 / 356

08/02/1994

     703235

Mill-B 159

05/23/1994

07/25/1994

   409 / 357

08/02/1994

     703236

Mill-B 160

05/23/1994

07/25/1994

   409 / 358

08/02/1994

     703237

Mill-B 161

05/23/1994

07/25/1994

   409 / 359

08/02/1994

     703238

Mill-B 162

05/23/1994

07/25/1994

   409 / 360

08/02/1994

     703239

Mill-B 163

05/23/1994

07/25/1994

   409 / 361

08/02/1994

     703240

Mill-B 169

07/02/1994

07/25/1994

   409 / 362

08/02/1994

     703241

Mill-B 171

07/02/1994

07/25/1994

   409 / 363

08/02/1994

     703242

Mill-B 173

07/02/1994

07/25/1994

   409 / 364

08/02/1994

     703243

Mill-B 184

05/23/1994

07/25/1994

   409 / 366

08/02/1994

     703245

Mill-B 185

05/23/1994

07/25/1994

   409 / 367

08/02/1994

     703246

Mill-B 186

05/23/1994

07/25/1994

   409 / 368

08/02/1994

     703247

Mill-B 187

05/05/1994

07/25/1994

   409 / 369

08/02/1994

     703248

Mill-B 188

05/05/1994

07/25/1994

   409 / 370

08/02/1994

     703249

Mill-B 190

05/23/1994

07/25/1994

   409 / 371

08/02/1994

     703250

Mill-B 191

05/23/1994

07/25/1994

   409 / 372

08/02/1994

     703251

Mill-B 300

05/24/1994

07/25/1994

   409 / 373

08/02/1994

     703252

Mill-B 301

05/24/1994

07/25/1994

   409 / 374

08/02/1994

     703253

Mill-B 302

05/24/1994

07/25/1994

   409 / 375

08/02/1994

     703254

Mill-B 303

05/24/1994

07/25/1994

   409 / 376

08/02/1994

     703255

Mill-B 304

05/24/1994

07/25/1994

   409 / 377

08/02/1994

     703256

Mill-B 305

05/24/1994

07/25/1994

   409 / 378

08/02/1994

     703257

Mill-B 306

05/24/1994

07/25/1994

   409 / 379

08/02/1994

     703258

Mill-B 307

05/24/1994

07/25/1994

   409 / 380

08/02/1994

     703259

Mill-B 500

05/04/1994

07/25/1994

   409 / 381

08/02/1994

     703260

Mill-B 501

05/04/1994

07/25/1994

   409 / 382

08/02/1994

     703261

Mill-B 502

05/04/1994

07/25/1994

   409 / 383

08/02/1994

     703262

Mill-B 503

05/04/1994

07/25/1994

   409 / 384

08/02/1994

     703263

Mill-B 504

05/05/1994

07/25/1994

   409 / 385

08/02/1994

     703264

Mill-B 505

05/06/1994

07/25/1994

   409 / 386

08/02/1994

     703265

Mill-B 506

05/06/1994

07/25/1994

   409 / 387

08/02/1994

     703266

CMX 101

09/07/1995

12/05/1995

   422 / 480   

12/04/1995

     725976

CMX 102

09/07/1995

12/05/1995

   422 / 481

12/04/1995

     725977

CMX 112

11/18/1995

12/05/1995

   422 / 482

02/13/1996

     733225

CMX 113

11/18/1995

12/05/1995

   422 / 483

02/13/1996

     733226

CMX 114

11/18/1995

12/05/1995

   422 / 484

02/13/1996

     733227

Mill-B 507

02/17/1996

03/21/1996

   426 / 466

04/03/1996

     735516

Mill-B 508

02/17/1996

03/21/1996

   426 / 467

04/03/1996

     735517

Mill-B 509

02/17/1996

03/21/1996

   426 / 468

04/03/1996

     735518

CMX 103

10/14/1996

01/07/1997

   436 / 832

01/03/1997

     760041

CMX 104

10/14/1996

01/07/1997

   436 / 833

01/03/1997

     760042

CMX 105

10/14/1996

01/07/1997

   436 / 834

01/03/1997

     760043

-2-

 

CLAIM

        LOCATION         FILED

    COUNTY RECORDER          FILED           BLM SERIAL NO

NAME

         DATE

        COUNTY

          BOOK/PAGE

           BLM

             NMC

CMX 106

10/14/1996

01/07/1997

   436 / 835

01/03/1997

     760044

CMX 107

10/14/1996

01/07/1997

   436 / 836

01/03/1997

     760045

CMX 108

05/27/2000

08/24/2000

   480 / 593

08/25/2000

     817783

CMX 109

05/29/2000

08/24/2000

   480 / 594

08/25/2000

     817784

CMX 110

05/29/2000

08/24/2000

   480 / 595

08/25/2000

     817785

CMX 111

05/27/2000

08/24/2000

   480 / 596

08/25/2000

     817786

Mill-B 308

10/22/2000

01/18/2001

   485 / 253

01/18/2001

     822318

RDA 35

10/23/2000

01/18/2001

   485 / 240

01/18/2001

     822319

RDA 36

10/23/2000

01/18/2001

   485 / 241

01/18/2001

     822320

RDA 37

10/23/2000

01/18/2001

   485 / 242

01/18/2001

     822321

RDA 69

10/23/2000

01/18/2001

   485 / 239

01/18/2001

     822322

RDA 500

10/23/2000

01/18/2001

   485 / 238

01/18/2001

     822323

Rum

Dreams 200

10/28/2000

01/18/2001

   485 / 244

01/18/2001

     822324

Rum 

Dreams 201

10/28/2000

01/18/2001

   485 / 245

01/18/2001

     822325

Rum 

Dreams 202

10/28/2000

01/18/2001

   485 / 246

01/18/2001

     822326

Rum 

Dreams 203

10/28/2000

01/18/2001

   485 / 247

01/18/2001

     822327

Rum

Dreams 204A

10/28/2000

01/18/2001

   485 / 248

01/18/2001

     822328

Rum

Dreams 205

10/28/2000

01/18/2001

   485 / 249

01/18/2001

     822329

Rum

Dreams 1

09/05/2001

11/30/2001

   496 / 526

11/30/2001

     826158

Rum

Dreams 2

09/05/2001

11/30/2001

   496 / 527

11/30/2001

     826159

Rum

Dreams 3

09/05/2001

11/30/2001

   496 / 528

11/30/2001

     826160

Rum

Dreams 4

0905/2001

11/30/2001

   496 / 529

11/30/2001

     826161

Rum

Dreams 5

09/05/2001

11/30/2001

   496 / 530

11/30/2001

     826162

Rum

Dreams 6

09/05/2001

11/30/2001

   496 / 531

11/30/2001

     826163

-3-

 

CLAIM

        LOCATION         FILED

    COUNTY RECORDER          FILED           BLM SERIAL NO

NAME

         DATE

        COUNTY

          BOOK/PAGE

           BLM

             NMC

Rum

Dreams 7

09/05/2001

11/30/2001

   496 / 532

11/30/2001

     826164

Rum

Dreams 8

09/05/2001

11/30/2001

   496 / 533

11/30/2001

     826165

Rum

Dreams 9

09/05/2001

11/30/2001

   496 / 534

11/30/2001

     826166

Rum

Dreams 10

09/05/20001

11/30/2001

   496 / 535

11/30/2001

     826167

Rum

Dreams 11

09/05/2001

11/30/2001

   496 / 536

11/30/2001

     826168

Rum

Dreams 12

09/05/2001

11/30/2001

   496 / 537

11/30/2001

     826169

Rum

Dreams 13

09/05/2001

11/30/2001

   496 / 538

11/30/2001

     826170

Rum

Dreams 14

09/05/2001

11/30/2001

   496 / 539

11/30/2001

     826171

Rum

Dreams 15

09/05/2001

11/30/2001

   496 / 540

11/30/2001

     826172

Rum

Dreams 16

09/05/2001

11/30/2001

   496 / 541

11/30/2001

     826173

Rum

Dreams 17

09/05/2001

11/30/2001

   496 / 542

11/30/2001

     826174

Rum

Dreams 18

09/05/2001

11/30/2001

   496 / 543

11/30/2001

     826175

Rum

Dreams 19

09/05/2001

11/30/2001

   496 / 544

11/30/2001

     826176

Rum

Dreams 20

09/05/2001

11/30/2001

   496 / 545

11/30/2001

     826177

Rum

Dreams 21

09/05/2001

11/30/2001

   496 / 546

11/30/2001

     826178

Rum

Dreams 22

09/05/2001

11/30/2001

   496 / 547

11/30/2001

     826179

HMT 1

04/14/2000

07/07/2000

   479 / 201

07/10/2000

     817090

-4-

 

CLAIM

        LOCATION         FILED

    COUNTY RECORDER          FILED           BLM SERIAL NO

NAME

         DATE

        COUNTY

          BOOK/PAGE

           BLM

             NMC

HMT 2

04/14/2000

07/07/2000

   479 / 202

07/10/2000

     817091

HMT 3

04/14/2000

07/07/2000

   479 / 203

07/10/2000

     817092

HMT 4

04/14/2000

07/07/2000

   479 / 204

07/10/2000

     817093

HMT 5

04/14/2000

07/07/2000

   479 / 205

07/10/2000

     817094

HMT 6

04/14/2000

07/07/2000

   479 / 206

07/10/2000

     817095

HMT 7

04/14/2000

07/07/2000

   479 / 207

07/10/2000

     817096

HMT 8

04/14/2000

07/07/2000

   479 / 208

07/10/2000

     817097

HMT 9

04/14/2000

07/07/2000

   479 / 209

07/10/2000

     817098

HMT 10

04/14/2000

07/07/2000

   479 / 210

07/10/2000

     817099

HMF 1

09/23/2005

   549 / 749

     915378

HMF 2

09/23/2005

   549 / 750

     915379

HMF 3

09/23/2005

   549 / 751

     915380

HMF 4

09/23/2005

   549 / 752

     915381

HMF 5

09/23/2005

   549 / 753

     915382

HMF 6

09/23/2005

   549 / 754

     915383

HMF 7

09/23/2005

   549 / 755

     915384

HMF 8

09/22/2005

   549 / 756

     915385

HMF 9

09/22/2005

   549 / 757

     915386

HMF 10

09/22/2005

   549 / 758

     915387

HMF 11

09/22/2005

   549 / 759

     915388

HMF 12

09/22/2005

   549 / 760

     915389

HMF 13

09/22/2005

   549 / 761

     915390

HMF 14

09/24/2005

   549 / 762

     915391

HMF 15

09/24/2005

   549 / 763

     915392

HMF 16

09/24/2005

   549 / 764

     915393

HMF 17

09/24/2005

   549 / 765

     915394

HMF 18

09/24/2005

   549 / 766

     915395

HMF 19

09/24/2005

   549 / 767

     915396

HMF 20

09/24/2005

   549 / 768

     915397

-5-

 

ATTACHMENT 3

to

Letter Agreement

Between

Newcrest Resources, Inc. and Miranda U.S.A., Inc.

CONVEYANCE AND ASSIGNMENT

THIS CONVEYANCE AND ASSIGNMENT, made this _________________ day of ________________, 20  , between Miranda U.S.A., Inc. (“Miranda”), a Nevada corporation, and Newcrest Resources, Inc. (“Newcrest”), a Colorado corporation:

WITNESSETH, for Ten Dollars and other good and valuable considerations to Miranda in hand paid by Newcrest, the receipt whereof is hereby confessed and acknowledged, Miranda has granted, bargained, sold, assigned and conveyed, and by these presents does grant, bargain, sell, assign, convey and confirm unto Newcrests, its successors and assigns forever, a   % undivided interest in and to that certain Mining Lease Agreement between Bruce Miller W. Miller as lessor and Miranda as Lessee, dated November 23, 2004, as amended effective     , 2008, disclosed in a Memorandum of Mining Lease Agreement recorded       , 2008 as Document No.   , in Lander County, Nevada, pertaining to the properties lying and being in the County of Lander and State of Nevada, described more particularly in Exhibit A hereto, which by this reference is made a part hereof.

Party of the first part will WARRANT AND DEFEND TITLE TO SAID PROPERTIES AGAINST ALL PARTIES CLAIMING BY, THROUGH OR UNDER PARTY OF THE FIRST PART, BUT NOT OTHERWISE.

IN WITNESS WHEREOF the said party of the first part has hereunto set its hand and seal the day and year first above written.

MIRANDA U.S.A., INC.

By:

Title:            

[

-1-

STATE OF 

)

)  ss.

COUNTY OF 

)

The foregoing instrument was acknowledged before me this _______ day of ____________, 200__, by _______________________________________, as __________________ of Miranda U.S.A., Inc., a Nevada corporation.

Witness my hand and official seal.

Notary Public

My commission expires: 

-2-

 

ATTACHMENT 4

to

Letter Agreement

Between

Newcrest Resources, Inc. and Miranda U.S.A., Inc.

Unless otherwise agreed at the time that Form 5A becomes effective, the following provisions are to be inserted in the Sections set forth below of Form 5A:

1.

Section 3.4:  Record title to the Lease of the Properties to be held by the Participants as tenants in common.  Title to other assets shall be held in the name of the Manager.

2.

Section 5.1:  

(a)

With respect to Sections 5.1 (a) and (b), the amount attributed to Newcrest’s Initial Contribution for purposes of dilution calculations shall be either the $3,250,000 expended under Paragraph 4 of the Letter Agreement or $8,250,000 expended under Paragraphs 4 and 5 of the Letter Agreement and the agreed amount attributed to Miranda’s Initial Contribution for purposes of dilution calculations shall be either 4/6 of Newcrest’s Initial Contribution under Paragraph 4 of the Letter Agreement or 3/7 of Newcrest’s Initial Contribution under Paragraphs 4 and 5, as applicable.  

(b)

Sections 5.1(c) and 5.1(d) of Form 5A are deleted as inapplicable.  

3.

Section 5.2:  Section 5.2 of Form 5A is deleted and replaced with the following:

In the event either Participant fails to contribute its undivided interest in the Properties to the Joint Venture as required for its Initial Contribution, then without waiving any other rights and remedies hereunder or at law or in equity, the other Participant shall have a right to specific performance of the obligation to contribute the Properties.  

4.

Section 6.1:  The Participants shall have initial Participating Interests equal to their undivided interests in the Properties at the time the Joint Venture Agreement becomes effective, i.e.:  

Newcrest— 60% or 70% 

Miranda—40% or 30% 

5.

Section 6.3(a) and (b):  A Participant shall be deemed to have withdrawn from the Joint Venture and relinquished its entire Participating Interest if, at any time, its Participating Interest becomes less than 10%.  The percentage of Net Proceeds to which the Reduced 

Participant is entitled shall be five percent (5) and the maximum amount shall be 100% of the Reduced Participant's Equity Account balance as of the effective date of the withdrawal

6.

Section 7.2:  Decisions of the Management Committee shall be made by simple majority vote with one representative of each Participant having a voting interest equal to his or her appointing Participant’s Participating Interest, except that sale of all or substantially all assets of the Joint Venture, or the initiation of any litigation or the settlement of any litigation in which the amount in settlement involves payments, commitments or obligations in excess of two hundred thousand dollars ($200,000) in cash or value, shall require approval of Participants having a cumulative Participating Interest of at least 75% .  

7.

Section 8.1:  Newcrest shall be the initial Manager unless replaced pursuant to Form 5A.

8.

Section 8.2(q):  All obligations of Manager under Section 6.2 with respect to Continuing Obligations shall be conditioned upon receipt by Manager of Miranda’s proportionate share of funds for such Continuing Obligations.  The right of entry for inspection of work directed toward Continuing Obligations shall be at reasonable intervals so as not to interrupt work being performed and shall be at the inspecting Participant’s sole risk.

9.

Section 8.3:  Add the following sentence to the end of Section 8.3:

Each Participant shall indemnify the Manager to the extent of such Participant’s Participating Interest for all expenditures made by Manager pursuant to approved Programs and Budgets and this Agreement and for all cost, claims, expenses, losses, liabilities and damages incurred or suffered by Manager in relation to the Joint Venture unless the Manager has, in so acting, been guilty of gross negligence or willful misconduct.

 

10.

Section 8.4:  Manager may resign upon three months prior notice, in which case the other Participant may elect to become the new Manager by notice within 60 days after the notice of resignation.  Manager shall be deemed to have offered to resign under Section 8.4(a) if its Participating Interest becomes less than 50%.

11.

Section 9.5(b)(ii):  There shall be no change in the reduction after Payout from that before Payout (i.e., the factor shall be 1.0). 

12.

Section 9.6(c):  If actual expenditures for a Program are less than the amount the contributing Participant would have been obligated to pay under the original Budget, then a Reduced Participant may reinstate its former interest upon payment of its former share of the revised Budget, plus 20%, in lieu of interest.

-2-

 

12A.

Sections 9.10, 10.2:  Shall be revised as required to reflect the following.

If the Management Committee approves the Development of the mine described in a Feasibility Study then:

(1)

Subject to (2) and (3) below, the Manager shall proceed with implementation of the Development in accordance with an approved Program and Budget.

(2)

Subject to (3) below, during the three (3) month period commencing on the date of that Management Committee approval (“Initial Period”) the Manager shall undertake preparatory activities (including, without limitation, obtaining all required approvals and permits, ordering equipment, putting contracts in place, and undertaking planning and preparation) required to commence the Development and may issue any billing or cash call to the Participants for such preparatory work, but shall not issue any billing or cash call to the Participants for any amounts relating to actual Development work (including, without limitation, payments for any plant, equipment, services or consumables constituting part of the Development).

(3)

If during the Initial Period the Manager wishes to undertake actual Development work and bill or cash call the Participants for amounts relating to such work it must first obtain the approval of Newcrest (in its absolute discretion).  If and to the extent Newcrest approves any such work and billing, Miranda may request Newcrest to fund such billings during the Initial Period, in which case Newcrest will advance to Miranda as a loan Miranda’s proportionate share of such billings or cash calls.  The loan will bear interest (at a commercial rate to be agreed and setout in the Joint Venture Agreement) and the loan plus interest must be repaid by Miranda no later than the last working day of the Initial Period, failing which Miranda will be deemed to be in default under the Joint Venture Agreement.

13.

Section 9.12:  Percentage limitation on Budget overruns:  15%.  If Manager determines that modification of an existing Program and Budget is desirable, Manager may call a special meeting of the Management Committee in accordance with Section 7.3 with the proposed revised Program and Budget being delivered with the notice of the meeting in accordance with Section 9.3. 

14.

Section 10.3:  Percentage points over Prime Rate:  two.

15.

Section 12.2:    Delete entire section.

16.

Section 16.1:  Transfers in violation of Section 16.1 shall be void.  

17.

Section 18.3:  The first sentence of the second paragraph of Section 18.3 is replaced with the following:

-3-

 

The Participant disclosing Confidential Information pursuant to this Section 18.3, shall disclose such Confidential Information to only those parties who have a bona fide need to have access to such Confidential Information for the purpose for which disclosure to such parties is permitted under this Section 18.3 and (except for the officers, directors, employees, attorneys and accountants of the disclosing Participant’s Affiliates and those Affiliates themselves, for whom that Participant shall be responsible and liable to the other Participant for any use of or disclosure of the confidential Information by any such person or Affiliate in violation of this Article XVIII) who have agreed in writing supplied to, and enforceable by, the other Participant or are otherwise bound by and subject to enforceable policies and practices of the other Participant, to protect the Confidential Information from further disclosure, to use such Confidential Information solely for such purpose and to otherwise be bound by the provisions of this Article XVIII.

18.

Section 18.5:  Delete the last sentence of the Section and replace it with the following:

Any press release or other public announcement or disclosure to be issued by either Participant relating to this Business shall not identify the other Participant unless such other Participant has given its prior written consent to such identification.  

19.

Section 19.7:  Add inability to gain access or permits for access to the Property and inability to obtain qualified drillers or other workers or drill rigs or other critical equipment to the events constituting Force Majuere.

20.

Exhibit B – Accounting Procedures, Section 2.13:  Percentages for Management Fees during Exploration and Development Phases shall be set at 5% of all directly chargeable expenditures except as provided in Paragraph 5B of the Letter Agreement.  The Management Fee during the Mining Phase shall be negotiated and agreed in the Joint Venture Agreement referred to in Paragraph 7 of the Letter Agreement.

-4-ex4_1.htm

    
      

    

    
      Exhibit
4.1

      

      

      FORM
OF WARRANT TO PURCHASE COMMON STOCK

      

      THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS. THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER AND
OTHER PROVISIONS OF A SECURITIES PURCHASE AGREEMENT BETWEEN THE ISSUER OF THESE
SECURITIES AND THE INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH
THE ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID AGREEMENT. ANY SALE OR
OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.

      

      WARRANT

      to
purchase

      521,158

      Shares
of Common Stock

      of
COMMUNITY WEST BANCSHARES

      

      Issue
Date: December 19, 2008

      

      1.           Definitions. Unless
the context otherwise requires, when used herein the

      following
terms shall have the meanings indicated.

      

      "Affiliate" has the meaning
ascribed to it in the Purchase Agreement.

      

      "Appraisal Procedure" means a
procedure whereby two independent appraisers, one chosen by the Company and one
by the Original Warrantholder, shall mutually agree upon the determinations then
the subject of appraisal. Each party shall deliver a notice to the other
appointing its appraiser within 15 days after the Appraisal Procedure is
invoked. If within 30 days after appointment of the two appraisers they are
unable to agree upon the amount in question, a third independent appraiser shall
be chosen within 10 days thereafter by the mutual consent of such first two
appraisers. The decision of the third appraiser so appointed and chosen shall be
given within 30 days after the selection of such third appraiser. If three
appraisers shall be appointed and the determination of one appraiser is
disparate from the middle determination by more than twice the amount by which
the other determination is disparate from the middle determination, then the
determination of such appraiser shall be excluded, the remaining two
determinations shall be averaged and such average shall be binding and
conclusive upon the Company and the Original Warrantholder; otherwise, the
average of all three determinations shall be binding upon the Company and the
Original Warrantholder. The costs of conducting any Appraisal Procedure shall be
borne by the Company.

      
        
          UST
Sequence Number: 82

           

        

        
          
          

          
            

          

        

        
           

        

      

      "Board of Directors" means the
board of directors of the Company, including any duly authorized committee
thereof.

      

      "Business Combination" means a
merger, consolidation, statutory share exchange or similar transaction that
requires the approval of the Company’s stockholders.

      

      "business day" means any day
except Saturday, Sunday and any day on which banking institutions in the State
of New York generally are authorized or required by law or other governmental
actions to close.

      

      "Capital Stock" means (A) with
respect to any Person that is a corporation or company, any and all shares,
interests, participations or other equivalents (however designated) of capital
or capital stock of such Person and (B) with respect to any Person that is not a
corporation or company, any and all partnership or other equity interests of
such Person.

      

      "Charter" means, with respect
to any Person, its certificate or articles of incorporation,

      articles
of association, or similar organizational document.

      

      "Common Stock" has the meaning
ascribed to it in the Purchase Agreement.

      

      "Company" means the Person
whose name, corporate or other organizational form and

      jurisdiction
of organization is set forth in Item 1 of Schedule A hereto.

      

      "conversion" has the meaning
set forth in Section 13(B).

      

      "convertible securities" has
the meaning set forth in Section 13(B).

      

      "CPP" has the meaning ascribed
to it in the Purchase Agreement.

      

      "Exchange Act" means the
Securities Exchange Act of 1934, as amended, or any successor statute, and the
rules and regulations promulgated thereunder.

      

      "Exercise Price" means the
amount set forth in Item 2 of Schedule A hereto.

      "Expiration Time" has the
meaning set forth in Section 3.

      

      "Fair Market Value" means,
with respect to any security or other property, the fair market value of such
security or other property as determined by the Board of Directors, acting in
good faith or, with respect to Section 14, as determined by the Original
Warrantholder acting in good faith. For so long as the Original Warrantholder
holds this Warrant or any portion thereof, it may object in writing to the Board
of Director’s calculation of fair market value within 10 days of receipt of
written notice thereof. If the Original Warrantholder and the Company are unable
to agree on fair market value during the 10-day period following the delivery of
the Original Warrantholder’s objection, the Appraisal Procedure may be invoked
by either party to determine Fair Market Value by delivering written
notification thereof not later than the 30th day after delivery of the Original
Warrantholder’s objection.

      
        
          UST
Sequence Number: 82

           

        

        
          2

          
            

          

        

        
           

        

      

      "Governmental Entities" has
the meaning ascribed to it in the Purchase Agreement.

      

      "Initial Number" has the
meaning set forth in Section 13(B).

      

      "Issue Date" means the date set
forth in Item 3 of Schedule A hereto.

      

      "Market Price" means, with
respect to a particular security, on any given day, the last reported sale price
regular way or, in case no such reported sale takes place on such day, the
average of the last closing bid and ask prices regular way, in either case on
the principal national securities exchange on which the applicable securities
are listed or admitted to trading, or if not listed or admitted to trading on
any national securities exchange, the average of the closing bid and ask prices
as furnished by two members of the Financial Industry Regulatory Authority, Inc.
selected from time to time by the Company for that purpose. "Market Price" shall
be determined without reference to after hours or extended hours trading. If
such security is not listed and traded in a manner that the quotations referred
to above are available for the period required hereunder, the Market Price per
share of Common Stock shall be deemed to be (i) in the event that any portion of
the Warrant is held by the Original Warrantholder, the fair market value per
share of such security as determined in good faith by the Original Warrantholder
or (ii) in all other circumstances, the fair market value per share of such
security as determined in good faith by the Board of Directors in reliance on an
opinion of a nationally recognized independent investment banking corporation
retained by the Company for this purpose and certified in a resolution to the
Warrantholder. For the purposes of determining the Market Price of the Common
Stock on the "trading day" preceding, on or following the occurrence of an
event, (i) that trading day shall be deemed to commence immediately after the
regular scheduled closing time of trading on the New York Stock Exchange or, if
trading is closed at an earlier time, such earlier time and (ii) that trading
day shall end at the next regular scheduled closing time, or if trading is
closed at an earlier time, such earlier time (for the avoidance of doubt, and as
an example, if the Market Price is to be determined as of the last trading day
preceding a specified event and the closing time of trading on a particular day
is 4:00 p.m. and the specified event occurs at 5:00 p.m. on that day, the Market
Price would be determined by reference to such 4:00 p.m. closing
price).

      

      "Ordinary Cash Dividends"
means a regular quarterly cash dividend on shares of Common Stock out of surplus
or net profits legally available therefor (determined in accordance with
generally accepted accounting principles in effect from time to time), provided that Ordinary Cash
Dividends shall not include any cash dividends paid subsequent to the Issue Date
to the extent the aggregate per share dividends paid on the outstanding Common
Stock in any quarter exceed the amount set forth in Item 4 of Schedule A hereto,
as adjusted for any stock split, stock dividend, reverse stock split,
reclassification or similar transaction.

      
        
          UST
Sequence Number: 82

           

        

        
          3

          
            

          

        

        
           

        

      

      "Original Warrantholder" means
the United States Department of the Treasury. Any actions specified to be taken
by the Original Warrantholder hereunder may only be taken by such Person and not
by any other Warrantholder.

      

      "Permitted Transactions" has
the meaning set forth in Section 13(B).

      

      "Person" has the meaning given
to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3)
and 14(d)(2) of the Exchange Act.

      

      "Per Share Fair Market Value"
has the meaning set forth in Section 13(C).

      

      "Preferred Shares" means the
perpetual preferred stock issued to the Original Warrantholder on the Issue Date
pursuant to the Purchase Agreement.

      

      "Pro Rata Repurchases" means
any purchase of shares of Common Stock by the Company or any Affiliate thereof
pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or
14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any
other offer available to substantially all holders of Common Stock, in the case
of both (A) or (B), whether for cash, shares of Capital Stock of the Company,
other securities of the Company, evidences of indebtedness of the Company or any
other Person or any other property (including, without limitation, shares of
Capital Stock, other securities or evidences of indebtedness of a subsidiary),
or any combination thereof, effected while this Warrant is outstanding. The
"Effective Date" of a
Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or
exchange by the Company under any tender or exchange offer which is a Pro Rata
Repurchase or the date of purchase with respect to any Pro Rata Repurchase that
is not a tender or exchange offer.

      

      "Purchase Agreement" means the
Securities Purchase Agreement – Standard Terms incorporated into the Letter
Agreement, dated as of the date set forth in Item 5 of Schedule A hereto, as
amended from time to time, between the Company and the United States Department
of the Treasury (the "Letter
Agreement"), including all annexes and schedules thereto.

      

      "Qualified Equity Offering"
has the meaning ascribed to it in the Purchase Agreement.

      

      "Regulatory Approvals" with
respect to the Warrantholder, means, to the extent applicable and required to
permit the Warrantholder to exercise this Warrant for shares of Common Stock and
to own such Common Stock without the Warrantholder being in violation of
applicable law, rule or regulation, the receipt of any necessary approvals and
authorizations of, filings and registrations with, notifications to, or
expiration or termination of any applicable waiting period under, the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules
and regulations thereunder.

      

      "SEC" means the U.S.
Securities and Exchange Commission.

      
        
          UST
Sequence Number: 82

           

        

        
          4

          
            

          

        

        
           

        

      

      "Securities Act" means the
Securities Act of 1933, as amended, or any successor statute, and the rules and
regulations promulgated thereunder.

      

      "Shares" has the meaning set
forth in Section 2.

      

      "trading day" means (A) if the shares
of Common Stock are not traded on any national or regional securities exchange
or association or over-the-counter market, a business day or (B) if the shares
of Common Stock are traded on any national or regional securities exchange or
association or over-the-counter market, a business day on which such relevant
exchange or quotation system is scheduled to be open for business and on which
the shares of Common Stock (i) are not suspended from trading on any national or
regional securities exchange or association or over-the-counter market for any
period or periods aggregating one half hour or longer; and (ii) have traded at
least once on the national or regional securities exchange or association or
over-the-counter market that is the primary market for the trading of the shares
of Common Stock.

      

      "U.S. GAAP" means United
States generally accepted accounting principles.

      

      "Warrantholder" has the
meaning set forth in Section 2.

      

      "Warrant" means this Warrant,
issued pursuant to the Purchase Agreement.

      

      2.           Number of Shares; Exercise
Price. This certifies that, for value received, the United States
Department of the Treasury or its permitted assigns (the "Warrantholder") is entitled,
upon the terms and subject to the conditions hereinafter set forth, to acquire
from the Company, in whole or in part, after the receipt of all applicable
Regulatory Approvals, if any, up to an aggregate of the number of fully paid and
nonassessable shares of Common Stock set forth in Item 6 of Schedule A hereto,
at a purchase price per share of Common Stock equal to the Exercise Price. The
number of shares of Common Stock (the "Shares") and the Exercise
Price are subject to adjustment as provided herein, and all references to
"Common Stock," "Shares" and "Exercise Price" herein shall be deemed to include
any such adjustment or series of adjustments.

      

      3.           Exercise of Warrant;
Term. Subject to Section 2, to the extent permitted by applicable laws
and regulations, the right to purchase the Shares represented by this Warrant is
exercisable, in whole or in part by the Warrantholder, at any time or from time
to time after the execution and delivery of this Warrant by the Company on the
date hereof, but in no event later than 5:00 p.m., New York City time on the
tenth anniversary of the Issue Date (the "Expiration Time"), by (A) the
surrender of this Warrant and Notice of Exercise annexed hereto, duly completed
and executed on behalf of the Warrantholder, at the principal executive office
of the Company located at the address set forth in Item 7 of Schedule A hereto
(or such other office or agency of the Company in the United States as it may
designate by notice in writing to the Warrantholder at the address of the
Warrantholder appearing on the books of the Company), and (B) payment of the
Exercise Price for the Shares thereby purchased:

      
        
          UST
Sequence Number: 82

           

        

        
          5

          
            

          

        

        
           

        

      

      (i) by
having the Company withhold, from the shares of Common Stock that would
otherwise be delivered to the Warrantholder upon such exercise, shares of Common
stock issuable upon exercise of the Warrant equal in value to the aggregate
Exercise Price as to which this Warrant is so exercised based on the Market
Price of the Common Stock on the trading day on which this Warrant is exercised
and the Notice of Exercise is delivered to the Company pursuant to this Section
3, or

      

      (ii) with
the consent of both the Company and the Warrantholder, by tendering in cash, by
certified or cashier’s check payable to the order of the Company, or by wire
transfer of immediately available funds to an account designated by the
Company.

      

      If the
Warrantholder does not exercise this Warrant in its entirety, the Warrantholder
will be entitled to receive from the Company within a reasonable time, and in
any event not exceeding three business days, a new warrant in substantially
identical form for the purchase of that number of Shares equal to the difference
between the number of Shares subject to this Warrant and the number of Shares as
to which this Warrant is so exercised.  Notwithstanding anything in
this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees
that its exercise of this Warrant for Shares is subject to the condition that
the Warrantholder will have first received any applicable Regulatory
Approvals.

      

      4.           Issuance of Shares;
Authorization; Listing. Certificates for Shares issued upon exercise of
this Warrant will be issued in such name or names as the Warrantholder may
designate and will be delivered to such named Person or Persons within a
reasonable time, not to exceed three business days after the date on which this
Warrant has been duly exercised in accordance with the terms of this Warrant.
The Company hereby represents and warrants that any Shares issued upon the
exercise of this Warrant in accordance with the provisions of Section 3 will be
duly and validly authorized and issued, fully paid and nonassessable and free
from all taxes, liens and charges (other than liens or charges created by the
Warrantholder, income and franchise taxes incurred in connection with the
exercise of the Warrant or taxes in respect of any transfer occurring
contemporaneously therewith). The Company agrees that the Shares so issued will
be deemed to have been issued to the Warrantholder as of the close of business
on the date on which this Warrant and payment of the Exercise Price are
delivered to the Company in accordance with the terms of this Warrant,
notwithstanding that the stock transfer books of the Company may then be closed
or certificates representing such Shares may not be actually delivered on such
date. The Company will at all times reserve and keep available, out of its
authorized but unissued Common Stock, solely for the purpose of providing for
the exercise of this Warrant, the aggregate number of shares of Common Stock
then issuable upon exercise of this Warrant at any time. The Company will (A)
procure, at its sole expense, the listing of the Shares issuable upon exercise
of this Warrant at any time, subject to issuance or notice of issuance, on all
principal stock exchanges on which the Common Stock is then listed or traded and
(B) maintain such listings of such Shares at all times after issuance. The
Company will use reasonable best efforts to ensure that the Shares may be issued
without violation of any applicable law or regulation or of any requirement of
any securities exchange on which the  Shares are listed or
traded.

      
        
          UST
Sequence Number: 82

           

        

        
          6

          
            

          

        

        
           

        

      

      5.           No Fractional Shares or
Scrip. No fractional Shares or scrip representing fractional Shares shall
be issued upon any exercise of this Warrant. In lieu of any fractional hare to
which the Warrantholder would otherwise be entitled, the Warrantholder shall be
entitled to receive a cash payment equal to the Market Price of the Common Stock
on the last trading day preceding the date of exercise less the pro-rated
Exercise Price for such fractional share.

      

      6.           No Rights as Stockholders;
Transfer Books. This Warrant does not entitle the Warrantholder to any
voting rights or other rights as a stockholder of the Company prior to the date
of exercise hereof. The Company will at no time close its transfer books against
transfer of this Warrant in any manner which interferes with the timely exercise
of this Warrant.

      

      7.           Charges, Taxes and
Expenses. Issuance of certificates for Shares to the Warrantholder upon
the exercise of this Warrant shall be made without charge to the Warrantholder
for any issue or transfer tax or other incidental expense in respect of the
issuance of such certificates, all of which taxes and expenses shall be paid by
the Company.

      

      8.           Transfer/Assignment.

      

      (A)        Subject
to compliance with clause (B) of this Section 8, this Warrant and all rights
hereunder are transferable, in whole or in part, upon the books of the Company
by the registered holder hereof in person or by duly authorized attorney, and a
new warrant shall be made and delivered by the Company, of the same tenor and
date as this Warrant but registered in the name of one or more transferees, upon
surrender of this Warrant, duly endorsed, to the office or agency of the Company
described in Section 3. All expenses (other than stock transfer taxes) and other
charges payable in connection with the preparation, execution and delivery of
the new warrants pursuant to this Section 8 shall be paid by the
Company.

      

      (B)        The
transfer of the Warrant and the Shares issued upon exercise of the Warrant re
subject to the restrictions set forth in Section 4.4 of the Purchase Agreement.
If and for so long as required by the Purchase Agreement, this Warrant shall
contain the legends as set forth in Sections 4.2(a) and 4.2(b) of the Purchase
Agreement.

      

      9.           Exchange and Registry of
Warrant. This Warrant is exchangeable, upon the surrender hereof by the
Warrantholder to the Company, for a new warrant or warrants of like tenor and
representing the right to purchase the same aggregate number of Shares. The
Company shall maintain a registry showing the name and address of the
Warrantholder as the registered holder of this Warrant. This Warrant may be
surrendered for exchange or exercise in accordance with its terms, at the office
of the Company, and the Company shall be entitled to rely in all respects, prior
to written notice to the contrary, upon such registry.

      
        
          UST
Sequence Number: 82

           

        

        
          7

          
            

          

        

        
           

        

      

      10.         Loss, Theft, Destruction or
Mutilation of Warrant. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and in the case of any such loss, theft or destruction, upon receipt of
a bond, indemnity or security reasonably satisfactory to the Company, or, in the
case of any such mutilation, upon surrender and cancellation of this Warrant,
the Company shall make and deliver, in lieu of such lost, stolen, destroyed or
mutilated Warrant, a new Warrant of like tenor and representing the right to
purchase the same aggregate number of Shares as provided for in such lost,
stolen, destroyed or mutilated Warrant.

      

      11.         Saturdays, Sundays,
Holidays, etc. If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall not be a
business day, then such action may be taken or such right may be exercised on
the next succeeding day that is a business day.

      

      12.         Rule 144 Information.
The Company covenants that it will use its reasonable best efforts to timely
file all reports and other documents required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations promulgated by
the SEC thereunder (or, if the Company is not required to file such reports, it
will, upon the request of any Warrantholder, make publicly available such
information as necessary to permit sales pursuant to Rule 144 under the
Securities Act), and it will use reasonable best efforts to take such further
action as any Warrantholder may reasonably request, in each case to the extent
required from time to time to enable such holder to, if permitted by the terms
of this Warrant and the Purchase Agreement, sell this Warrant without
registration under the Securities Act within the limitation of the exemptions
provided by (A) Rule 144 under the Securities Act, as such rule may be amended
from time to time, or (B) any successor rule or regulation hereafter adopted by
the SEC. Upon the written request of any Warrantholder, the Company will deliver
to such Warrantholder a written statement that it has complied with such
requirements.

      

      13.         Adjustments and Other
Rights. The Exercise Price and the number of Shares issuable upon
exercise of this Warrant shall be subject to adjustment from time to time as
follows; provided, that
if more than one subsection of this Section 13 is applicable to a single event,
the subsection shall be applied that produces the largest adjustment and no
single event shall cause an adjustment under more than one subsection of this
Section 13 so as to result in duplication:

      

      (A)        Stock Splits, Subdivisions,
Reclassifications or Combinations. If the Company shall (i) declare and
pay a dividend or make a distribution on its Common Stock in shares of Common
Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into
a greater number of shares, or (iii) combine or reclassify the outstanding
shares of Common Stock into a smaller number of shares, the number of Shares
issuable upon exercise of this Warrant at the time of the record date for such
dividend or distribution or the effective date of such subdivision, combination
or reclassification shall be proportionately adjusted so that the Warrantholder
after such date shall be entitled to purchase the number of shares of Common
Stock which such holder would have owned or been entitled to receive in respect
of the shares of Common Stock subject to this Warrant after such date had this
Warrant been exercised immediately prior to such date. In such event, the
Exercise Price in effect at the time of the record date for such dividend or
distribution or the effective date of such subdivision, combination or
reclassification shall be adjusted to the number obtained by dividing (x) the
product of (1) the number of Shares issuable upon the exercise of this Warrant
before such adjustment and (2) the Exercise Price in effect immediately prior to
the record or effective date, as the case may be, for the dividend,
distribution, subdivision, combination or reclassification giving rise to this
adjustment by (y) the new number of Shares issuable upon exercise of the Warrant
determined pursuant to the immediately preceding sentence.

      
        
          UST
Sequence Number: 82

           

        

        
          8

          
            

          

        

        
           

        

      

      (B) 
       Certain Issuances of Common
Shares or Convertible Securities. Until the earlier of (i) the date on
which the Original Warrantholder no longer holds this Warrant or any portion
thereof and (ii) the third anniversary of the Issue Date, if the Company shall
issue shares of Common Stock (or rights or warrants or other securities
exercisable or convertible into or exchangeable (collectively, a "conversion") for shares of
Common Stock) (collectively, "convertible securities")
(other than in Permitted Transactions (as defined below) or a transaction to
which subsection (A) of this Section 13 is applicable) without consideration or
at a consideration per share (or having a conversion price per share) that is
less than 90% of the Market Price on the last trading day preceding the date of
the agreement on pricing such shares (or such convertible securities) then, in
such event:

      

      (A) the
number of Shares issuable upon the exercise of this Warrant immediately prior to
the date of the agreement on pricing of such shares (or of such convertible
securities) (the "Initial
Number") shall be increased to the number obtained by multiplying the
Initial Number by a fraction (A) the numerator of which shall be the sum of (x)
the number of shares of Common Stock of the Company outstanding on such date and
(y) the number of additional shares of Common Stock issued (or into which
convertible securities may be exercised or convert) and (B) the denominator of
which shall be the sum of (I) the number of shares of Common Stock outstanding
on such date and (II) the number of shares of Common Stock which the aggregate
consideration receivable by the Company for the total number of shares of Common
Stock so issued (or into which convertible securities may be exercised or
convert) would purchase at the Market Price on the last trading day preceding
the date of the agreement on pricing such shares (or such convertible
securities); and

      

      (B) the
Exercise Price payable upon exercise of the Warrant shall be adjusted by
multiplying such Exercise Price in effect immediately prior to the date of the
agreement on pricing of such shares (or of such convertible securities) by a
fraction, the numerator of which shall be the number of shares of Common Stock
issuable upon exercise of this Warrant prior to such date and the denominator of
which shall be the number of shares of Common Stock issuable upon exercise of
this Warrant immediately after the adjustment described in clause (A)
above.

      
        
          UST
Sequence Number: 82

           

        

        
          9

          
            

          

        

        
           

        

      

      For
purposes of the foregoing, the aggregate consideration receivable by the Company
in connection with the issuance of such shares of Common Stock or convertible
securities shall be deemed to be equal to the sum of the net offering price
(including the Fair Market Value of any non-cash consideration and after
deduction of any related expenses payable to third parties) of all such
securities plus the minimum aggregate amount, if any, payable upon exercise or
conversion of any such convertible securities into shares of Common Stock; and
"Permitted
Transactions" shall mean issuances (i) as consideration for or to fund
the acquisition of businesses and/or related assets, (ii) in connection with
employee benefit plans and compensation related arrangements in the ordinary
course and consistent with past practice approved by the Board of Directors,
(iii) in connection with a public or broadly marketed offering and sale of
Common Stock or convertible securities for cash conducted by the Company or its
affiliates pursuant to registration under the Securities Act or Rule 144A
thereunder on a basis consistent with capital raising transactions by comparable
financial institutions and (iv) in connection with the exercise of preemptive
rights on terms existing as of the Issue Date. Any adjustment made pursuant to
this Section 13(B) shall become effective immediately upon the date of such
issuance.

      

      (C)   
     Other Distributions.
In case the Company shall fix a record date for the making of a distribution to
all holders of shares of its Common Stock of securities, evidences of
indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash
Dividends, dividends of its Common Stock and other dividends or distributions
referred to in Section 13(A)), in each such case, the Exercise Price in effect
prior to such record date shall be reduced immediately thereafter to the price
determined by multiplying the Exercise Price in effect immediately prior to the
reduction by the quotient of (x) the Market Price of the Common Stock on the
last trading day preceding the first date on which the Common Stock trades
regular way on the principal national securities exchange on which the Common
Stock is listed or admitted to trading without the right to receive such
distribution, minus the amount of cash and/or the Fair Market Value of the
securities, evidences of indebtedness, assets, rights or warrants to be so
distributed in respect of one share of Common Stock (such amount and/or Fair
Market Value, the "Per Share
Fair Market Value") divided by (y) such Market Price on such date
specified in clause (x); such adjustment shall be made successively whenever
such a record date is fixed. In such event, the number of Shares issuable upon
the exercise of this Warrant shall be increased to the number obtained by
dividing (x) the product of (1) the number of Shares issuable upon the exercise
of this Warrant before such adjustment, and (2) the Exercise Price in effect
immediately prior to the distribution giving rise to this adjustment by (y) the
new Exercise Price determined in accordance with the immediately preceding
sentence. In the case of adjustment for a cash dividend that is, or is
coincident with, a regular quarterly cash dividend, the Per Share Fair Market
Value would be reduced by the per share amount of the portion of the cash
dividend that would constitute an Ordinary Cash Dividend. In the event that such
distribution is not so made, the Exercise Price and the number of Shares
issuable upon exercise of this Warrant then in effect shall be readjusted,
effective as of the date when the Board of Directors determines not to
distribute such shares, evidences of indebtedness, assets, rights, cash or
warrants, as the case may be, to the Exercise Price that would then be in effect
and the number of Shares that would then be issuable upon exercise of this
Warrant if such record date had not been fixed.

      
        
          UST
Sequence Number: 82

           

        

        
          10

          
            

          

        

        
           

        

      

      (D)     
   Certain Repurchases of
Common Stock. In case the Company effects a Pro Rata Repurchase of Common
Stock, then the Exercise Price shall be reduced to the price determined by
multiplying the Exercise Price in effect immediately prior to the Effective Date
of such Pro Rata Repurchase by a fraction of which the numerator shall be (i)
the product of (x) the number of shares of Common Stock outstanding immediately
before such Pro Rata Repurchase and (y) the Market Price of a share of Common
Stock on the trading day immediately preceding the first public announcement by
the Company or any of its Affiliates of the intent to effect such Pro Rata
Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase,
and of which the denominator shall be the product of (i) the number of shares of
Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the
number of shares of Common Stock so repurchased and (ii) the Market Price per
share of Common Stock on the trading day immediately preceding the first public
announcement by the Company or any of its Affiliates of the intent to effect
such Pro Rata Repurchase. In such event, the number of shares of Common Stock
issuable upon the exercise of this Warrant shall be increased to the number
obtained by dividing (x) the product of (1) the number of Shares issuable upon
the exercise of this Warrant before such adjustment, and (2) the Exercise Price
in effect immediately prior to the Pro Rata Repurchase giving rise to this
adjustment by (y) the new Exercise Price determined in accordance with the
immediately preceding sentence. For the avoidance of doubt, no increase to the
Exercise Price or decrease in the number of Shares issuable upon exercise of
this Warrant shall be made pursuant to this Section 13(D).

      

      (E)         Business
Combinations. In case of any Business Combination or reclassification of
Common Stock (other than a reclassification of Common Stock referred to in
Section 13(A)), the Warrantholder’s right to receive Shares upon exercise of
this Warrant shall be converted into the right to exercise this Warrant to
acquire the number of shares of stock or other securities or property (including
cash) which the Common Stock issuable (at the time of such Business Combination
or reclassification) upon exercise of this Warrant immediately prior to such
Business Combination or reclassification would have been entitled to receive
upon consummation of such Business Combination or reclassification; and in any
such case, if necessary, the provisions set forth herein with respect to the
rights and interests thereafter of the Warrantholder shall be appropriately
adjusted so as to be applicable, as nearly as may reasonably be, to the
Warrantholder’s right to exercise this Warrant in exchange for any shares of
stock or other securities or property pursuant to this paragraph. In determining
the kind and amount of stock, securities or the property receivable upon
exercise of this Warrant following the consummation of such Business
Combination, if the holders of Common Stock have the right to elect the kind or
amount of consideration receivable upon consummation of such Business
Combination, then the consideration that the Warrantholder shall be entitled to
receive upon exercise shall be deemed to be the types and amounts of
consideration received by the majority of all holders of the shares of common
stock that affirmatively make an election (or of all such holders if none make
an election).

      

      (F)         Rounding of Calculations;
Minimum Adjustments. All calculations under this Section 13 shall be made
to the nearest one-tenth (1/10th) of a cent or to the nearest one hundredth
(1/100th) of a share, as the case may be. Any provision of this Section 13 to
the contrary notwithstanding, no adjustment in the Exercise Price or the number
of Shares into which this Warrant is exercisable shall be made if the amount of
such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of
Common Stock, but any such amount shall be carried forward and an adjustment
with respect thereto shall be made at the time of and together with any
subsequent adjustment which, together with such amount and any other amount or
amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common
Stock, or more.

      
        
          UST
Sequence Number: 82

           

        

        
          11

          
            

          

        

        
           

        

      

      (G)      
  Timing of
Issuance of Additional Common Stock Upon Certain Adjustments. In any case
in which the provisions of this Section 13 shall require that an adjustment
shall become effective immediately after a record date for an event, the Company
may defer until the occurrence of such event (i) issuing to the Warrantholder of
this Warrant exercised after such record date and before the occurrence of such
event the additional shares of Common Stock issuable upon such exercise by
reason of the adjustment required by such event over and above the shares of
Common Stock issuable upon such exercise before giving effect to such adjustment
and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional
share of Common Stock; provided, however, that the Company
upon request shall deliver to such Warrantholder a due bill or other appropriate
instrument evidencing such Warrantholder’s right to receive such additional
shares, and such cash, upon the occurrence of the event requiring such
adjustment.

      

      (H)  
      Completion of Qualified
Equity Offering. In the event the Company (or any successor by Business
Combination) completes one or more Qualified Equity Offerings on or prior to
December 31, 2009 that result in the Company (or any such successor ) receiving
aggregate gross proceeds of not less than 100% of the aggregate liquidation
preference of the Preferred Shares (and any preferred stock issued by any such
successor to the Original Warrantholder under the CPP), the number of shares of
Common Stock underlying the portion of this Warrant then held by the Original
Warrantholder shall be thereafter reduced by a number of shares of Common Stock
equal to the product of (i) 0.5 and (ii) the number of shares underlying the
Warrant on the Issue Date (adjusted to take into account all other theretofore
made adjustments pursuant to this Section 13).

      

      (I)     
    Other Events. For so
long as the Original Warrantholder holds this Warrant or any portion thereof, if
any event occurs as to which the provisions of this Section 13 are not strictly
applicable or, if strictly applicable, would not, in the good faith judgment of
the Board of Directors of the Company, fairly and adequately protect the
purchase rights of the Warrants in accordance with the essential intent and
principles of such provisions, then the Board of Directors shall make such
adjustments in the application of such provisions, in accordance with such
essential intent and principles, as shall be reasonably necessary, in the good
faith opinion of the Board of Directors, to protect such purchase rights as
aforesaid. The Exercise Price or the number of Shares into which this Warrant is
exercisable shall not be adjusted in the event of a change in the par value of
the Common Stock or a change in the jurisdiction of incorporation of the
Company.

      
        
          UST
Sequence Number: 82

           

        

        
          12

          
            

          

        

        
           

        

      

      (J)     
    Statement Regarding
Adjustments. Whenever the Exercise Price or the number of Shares into
which this Warrant is exercisable shall be adjusted as provided in Section 13,
the Company shall forthwith file at the principal office of the Company a
statement showing in reasonable detail the facts requiring such adjustment and
the Exercise Price that shall be in effect and the number of Shares into which
this Warrant shall be exercisable after such adjustment, and the Company shall
also cause a copy of such statement to be sent by mail, first class postage
prepaid, to each Warrantholder at the address appearing in the Company’s
records.

      

      (K)         Notice of Adjustment
Event. In the event that the Company shall propose to take any action of
the type described in this Section 13 (but only if the action of the type
described in this Section 13 would result in an adjustment in the Exercise Price
or the number of Shares into which this Warrant is exercisable or a change in
the type of securities or property to be delivered upon exercise of this
Warrant), the Company shall give notice to the Warrantholder, in the manner set
forth in Section 13(J), which notice shall specify the record date, if any, with
respect to any such action and the approximate date on which such action is to
take place. Such notice shall also set forth the facts with respect thereto as
shall be reasonably necessary to indicate the effect on the Exercise Price and
the number, kind or class of shares or other securities or property which shall
be deliverable upon exercise of this Warrant. In the case of any action which
would require the fixing of a record date, such notice shall be given at least
10 days prior to the date so fixed, and in case of all other action, such notice
shall be given at least 15 days prior to the taking of such proposed action.
Failure to give such notice, or any defect therein, shall not affect the
legality or validity of any such action.

      

      (L)         Proceedings Prior to Any
Action Requiring Adjustment. As a condition precedent to the taking of
any action which would require an adjustment pursuant to this Section 13, the
Company shall take any action which may be necessary, including obtaining
regulatory, New York Stock Exchange, NASDAQ Stock Market or other applicable
national securities exchange or stockholder approvals or exemptions, in order
that the Company may thereafter validly and legally issue as fully paid and
nonassessable all shares of Common Stock that the Warrantholder is entitled to
receive upon exercise of this Warrant pursuant to this Section 13.

      

      (M)        Adjustment Rules. Any
adjustments pursuant to this Section 13 shall be made successively whenever an
event referred to herein shall occur. If an adjustment in Exercise Price made
hereunder would reduce the Exercise Price to an amount below par value of the
Common Stock, then such adjustment in Exercise Price made hereunder shall reduce
the Exercise Price to the par value of the Common Stock.

      

      14.         Exchange. At any time
following the date on which the shares of Common Stock of the Company are no
longer listed or admitted to trading on a national securities exchange (other
than in connection with any Business Combination), the Original Warrantholder
may cause the Company to exchange all or a portion of this Warrant for an
economic interest (to be determined by the Original Warrantholder after
consultation with the Company) of the Company classified as permanent equity
under U.S. GAAP having a value equal to the Fair Market Value of the portion of
the Warrant so exchanged. The Original Warrantholder shall calculate any Fair
Market Value required to be calculated pursuant to this Section 14, which shall
not be subject to the Appraisal Procedure.

      
        
          UST
Sequence Number: 82

           

        

        
          13

          
            

          

        

        
           

        

      

      15.         No Impairment. The
Company will not, by amendment of its Charter or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Company, but will at all times in good faith assist in the carrying out of all
the provisions of this Warrant and in taking of all such action as may be
necessary or appropriate in order to protect the rights of the
Warrantholder.

      

      16.         Governing Law. This Warrant will be governed by and
construed in accordance with the federal law of the United States if and to the
extent such law is applicable, and otherwise in accordance with the laws of the
State of New York applicable to contracts made and to be performed entirely
within such State. Each of the Company and the Warrantholder agrees (a) to
submit to the exclusive jurisdiction and venue of the United States District
Court for the District of Columbia for any civil action, suit or proceeding
arising out of or relating to this Warrant or the transactions contemplated
hereby, and (b) that notice may be served upon the Company at the address in
Section 20 below and upon the Warrantholder at the address for the Warrantholder
set forth in the registry maintained by the Company pursuant to Section 9
hereof. To the extent permitted by applicable law, each of the Company and the
Warrantholder hereby unconditionally waives trial by jury in any civil legal
action or proceeding relating to the Warrant or the transactions contemplated
hereby or thereby.

      

      17.         Binding Effect. This
Warrant shall be binding upon any successors or assigns of the
Company.

      

      18.         Amendments.  This
Warrant may be amended and the observance of any term of this Warrant may be
waived only with the written consent of the Company and the
Warrantholder.

      

      19          Prohibited Actions.
The Company agrees that it will not take any action which would entitle the
Warrantholder to an adjustment of the Exercise Price if the total number of
shares of Common Stock issuable after such action upon exercise of this Warrant,
together with all shares of Common Stock then outstanding and all shares of
Common Stock then issuable upon the exercise of all outstanding options,
warrants, conversion and other rights, would exceed the total number of shares
of Common Stock then authorized by its Charter.

      

      20.         Notices. Any notice,
request, instruction or other document to be given hereunder by any party to the
other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally, or by facsimile, upon confirmation of
receipt, or (b) on the second business day following the date of dispatch if
delivered by a recognized next day courier service. All notices hereunder shall
be delivered as set forth in Item 8 of Schedule A hereto, or pursuant to such
other instructions as may be designated in writing by the party to receive such
notice.

      
        
          UST
Sequence Number: 82

           

        

        
          14

          
            

          

        

        
           

        

      

      21.         Entire Agreement.
This Warrant, the forms attached hereto and Schedule A hereto (the terms of
which are incorporated by reference herein), and the Letter Agreement (including
all documents incorporated therein), contain the entire agreement between the
parties with respect to the subject matter hereof and supersede all prior and
contemporaneous arrangements or undertakings with respect thereto.

      

      

      [Remainder
of page intentionally left blank]

      
        
          UST
Sequence Number: 82

           

        

        
          15

          
            

          

        

        
           

        

      

      [Form
of Notice of Exercise]

      Date:
_________

      

      TO: [Company]

      

      RE:
Election to Purchase Common Stock

      

      

      The
undersigned, pursuant to the provisions set forth in the attached Warrant,
hereby agrees to subscribe for and purchase the number of shares of the Common
Stock set forth below covered by such Warrant. The undersigned, in accordance
with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price
for such shares of Common Stock in the manner set forth below. A new warrant
evidencing the remaining shares of Common Stock covered by such Warrant, but not
yet subscribed for and purchased, if any, should be issued in the name set forth
below.

      

      Number of
Shares of Common Stock _________________________________.

      

      Method of
Payment of Exercise Price (note if cashless exercise pursuant to Section 3(i) of
the Warrant or cash exercise pursuant to Section 3(ii) of the Warrant, with
consent of the Company and the Warrantholder)

       

                                                                      
______________________

      

      Aggregate
Exercise Price:           
______________________

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	
                                    Holder:

                                  	 	 
	 
      	
                                    By:

                                  	 	 
	 
      	
                                    Name:

                                  	 	 
	 
      	
                                    Title:

                                  	 	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          UST
Sequence Number: 82

           

        

        
          16

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
a duly
authorized officer.

      

      

      Dated:
December 19,
2008

      
        
          
            
              
                	 
      	
                        COMPANY:
      COMMUNITY WEST BANCSHARES

                      	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	
                        By:

                      	
                        /s/ Lynda Nahra

                      	 
	 
      	 
      	
                        Name:

                      	
                        Lynda
      Nahra

                      	 
	 
      	 
      	
                        Title:

                      	
                        President
      and Chief Executive Officer

                      	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	
                        Attest:

                      	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	
                        By:

                      	
                        /s/ John D. Illgen

                      	 
	 
      	
                        Name:

                      	
                        John
      D. Illgen

                      	 
	 
      	
                        Title:

                      	
                        Secretary

                      	 

              

            

          

        

      

      

      

      [Signature
Page to Warrant]

      
        
          UST
Sequence Number: 82

           

        

        
          17

          
            

          

        

        
           

        

      

      SCHEDULE
A

      Item 1

      Name:  Community West
Bancshares

      Corporate
or other organizational form:  corporation

      Jurisdiction
of organization:  California

      

      Item 2

      Exercise
Price: 1   $4.49

      

      Item 3

      Issue
Date:  December 19,
2008

      

      Item 4

      Amount of
last dividend declared prior to the Issue Date:  $.06 per share of Common Stock was
paid on May 15, 2008

      

      Item 5

      Date of
Letter Agreement between the Company and the United States Department of
the

      Treasury:  December 19, 2008

      

      Item 6

      Number of
shares of Common Stock:  521,158

      

      Item 7

      
        	
                Company’s
      address:

              	
                445 Pine
      Avenue

              

      

      Goleta,
California  93117

      

      Item 8

      
        	
                Notice
      information:

              	
                Lynda J.
      Nahra

              

      

      President
and Chief Executive Officer

      Community
West Bancshares

      445
Pine Avenue

      Goleta,
California  93117

      

      

      _____________________

       

      1 Initial
exercise price to be calculated based on the average of closing prices of the
Common Stock on the 20 trading days ending on the last trading day prior to the
date the Company’s application for participation in the Capital Purchase Program
was approved by the United States Department of the Treasury.

       

    

     UST Sequence Number:
82

     

    18

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