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| (b)         | "Business" means the business presently or hereafter carried on by the Company in the area of mineral resource exploration, development and production; |
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| (c)         | "Disability" means the inability of the Executive as a result of illness or injury to perform his responsibilities as an employee of the Company for a period of 180 consecutive days or 200 days out of 400 days; |
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| (d)         | "Effective Change of Control" means the occurrence, within a single transaction or series of related transactions occurring within the same 12-month period, of a change in the identity of persons who individually or collectively hold rights to elect, or to approve the election of, a majority of the members of the Board, including, without limitation, transactions consisting of one or more sales or other transfers of assets or equity securities, mergers, consolidations, amalgamations, reorganizations, or any similar transactions; and |
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| (e)         | "Stock Option Plan" means the incentive stock option plan of the Company for directors, officers, employees and other service providers of the Company. |
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| (a)         | The Company (directly or through its United States and other subsidiaries) shall employ the Executive, and the Executive shall serve the Company and its subsidiaries as, President and Chief Executive Officer_or in such other capacity or capacities as may be determined by the Board from time to time. |
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| (b)         | The Executive represents that he has the required skills and experience to perform the duties required of him as President and Chief Executive Officer_and agrees to be bound by the terms and conditions of this Agreement. |
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| (c)         | The Executive will be employed by the Company on a full-time basis and will devote himself exclusively to the Business and will not be employed or engaged in any capacity in any other business that is in competition with the Business of the Company, without the prior written approval of the Company. |
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|                                 i) | the Executive shall comply with all lawful and reasonable instructions as may be given by the Board; |
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|                                 ii) | the Executive will perform his duties with the highest level of integrity and in a manner which shall engender the Company's complete confidence in the Executive's relationship with other employees of the Company and with all persons dealt with by the Executive in the course of employment; and |
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|                                 iii) | the Executive will perform his duties in a diligent, loyal, productive and efficient manner and use his best efforts to advance the Business and goodwill of the Company. |
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| (e)        | The Executive is employed on a full-time basis for the Company and understands that the hours required to meet the objectives of his employment will vary and be irregular. |
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| (f)        | The location of the Executive's employment under this Agreement shall be in the State of Colorado, |
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| (a)       | This Agreement shall commence on the date hereof and shall be of indefinite term unless terminated pursuant to the provisions hereof. |
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| (b)       | The Executive may terminate his employment pursuant to this Agreement by giving at least one (1) month's advance notice in writing to the Company. The Company may waive such notice, in whole or in part, and, if it does so, the Executive's entitlement to remuneration and benefits pursuant to this Agreement will cease on the date such notice is waived. |
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| (c)       | The Executive's employment shall terminate upon the death of the Executive, whereupon all stock options granted to the Executive shall immediately vest and shall be exercisable by the Executive's heirs, executors, administrators or personal representatives in accordance with the terms of the Stock Option Plan. |
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| (d)       | The Executive's employment shall be terminated upon the Disability of the Executive. |
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| (e)       | In the event of an Effective Change of Control, the Executive's employment shall be deemed to have been terminated without cause, and the Company shall be obligated to pay the Executive the severance payments calculated in accordance with subparagraph 6(f) hereof. |
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| (f)       | The Executive's employment may be terminated without cause by majority vote of the Board. In the event that the Executive's employment is so terminated, or is deemed to have been terminated pursuant to subparagraph 6(e) hereof, any stock options granted but not vested shall be immediately vest, and the Company shall pay to the Executive 36 months salary, in compensation for the Executive's loss of employment, together with a payment equal to 50% of any bonus entitlement of the Executive for each year in such 36 month period, plus any other compensation which the Executive is entitled to receive. Health (medical and vision), dental, long term disability and life insurance plan coverage in effect on the last day of employment shall continue, without material change, for a period of 36 months. The Executive shall not have the duty to mitigate damages. For the purpose of calculating payments due to the Executive pursuant to this subparagraph 6(f), all Federal and State taxes and Federal excise taxes (parachute taxes) shall be grossed-up. |
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| (g)       | The Company may terminate the Executive's employment without notice or payment in lieu of such employment, for cause. For the purposes of this Agreement "cause" shall mean (i) the failure to follow written policies or directions of the Board not inconsistent with this Agreement or contrary to applicable law, (ii) neglect of responsibilities after the receipt of written notice setting forth the performance deficiencies and providing 45 days to cure such deficiencies, (iii) acts of dishonesty, fraud, misrepresentation, insubordination, harassment or employment discrimination, and (iv) indictment for a felony. |
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| (a)       | Any notice required or permitted to be given to the Executive shall be sufficiently given if delivered to the Executive personally or mailed by registered mail to the Executive's home address. |
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| (b)       | Any notice required or permitted to be given to the Company shall be sufficiently given if delivered to the Secretary of the Company personally or if mailed by registered mail to the Company's principal office, attention Corporate Secretary. |
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| (c)       | Any notice given by registered mail shall be deemed to have been given forty-eight hours after the time it is posted. |
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