Exhibit
10.2


 


EXCHANGE
AGREEMENT


 


EXCHANGE
AGREEMENT (the “Agreement”) is made as of March 29, 2020, by and between U.S. Gold Corp., a Nevada
corporation (the “Company”), and the investor signatory hereto (the “Investor”).


 


WHEREAS,
the Investor is the holder of shares of the Company’s Series F Convertible Preferred Stock (“Series F Preferred
Stock”) issued pursuant to the Securities Purchase Agreement, dated as of June 11, 2019 (“June 2019 SPA”)


 


WHEREAS,
the Series F Preferred Stock were issued pursuant to an effective registration statement with Securities and Exchange Commission
(“Commission”), file No. 333-217860;


 


WHEREAS,
subject to the terms and conditions set forth in this Agreement and in reliance on Section 3(a)(9) of the Securities Act, the
Company desires to exchange with the Investor, and the Investor desires to exchange with the Company all of its shares of Series
F Preferred Stock (such shares of Series F Preferred Stock to be exchange, the “Exchange Shares), as set forth
on the Signature Page hereto, for shares of the Company’s Series G Convertible Preferred Stock having the terms set forth
on the Certificate of Designation attached hereto as Exhibit A (the “Certificate of Designation”)
in the amounts set forth on the Investor’s signature page hereto (the “Shares”); and


 


NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in consideration
of the premises and the mutual agreements, representations and warranties, provisions and covenants contained herein, the parties
hereto, intending to be legally bound hereby, agree as follows:


 


1.
Exchange. On the Closing Date (as defined below), subject to the terms and conditions of this Agreement the Company shall,
pursuant to Section 3(a)(9) of the Securities Act, exchange the Exchange Shares for the Shares in the ratio of one to one. Subject
to the conditions set forth herein, the exchange of the Exchange Shares for the Shares shall take place on March 31, 2020, or
at such other time and place as the Company and the Investor mutually agree (the “Closing” and such
date, the “Closing Date”). At the Closing, the following transactions shall occur (such transaction
an “Exchange”):


 


1.1
On the Closing Date, in exchange for the Exchange Shares, the Company shall deliver certificates evidencing the Shares to the
Investor or its designee in accordance with the Investor’s delivery instructions set forth on the Investor signature page
hereto, which shares shall have no restrictions on resale by the Investor, along with evidence of the filing of the Certificate
of Designation with the Secretary of State of Nevada and a legal opinion from the Company’s counsel addressed to the Investor
and in form and substance reasonable acceptable to the Investor. Upon receipt of the Shares in accordance with this Section 1.1,
all of the Investor’s rights under the Exchange Shares shall be extinguished. The Investor shall tender to the Company the
Exchange Shares within ten Trading Days (as defined below) of the Closing Date.


 






    	 



    	 



    

 


1.2
On the Closing Date, the Investor shall be deemed for all corporate purposes to have become the holder of record of the Shares,
irrespective of the date such Shares are delivered to the Investor in accordance herewith. The Exchange Shares shall be deemed
for all corporate purposes to have been cancelled upon receipt of the Shares in accordance with Section 1.1 above. Until the Exchange
Shares have been delivered to the Company, the Investor shall bear the risk that they are acquired by a bona fide purchaser with
no notice of the Investor’s and the Company’s claims.


 


As
used herein, “Common Stock” means the common stock of the Company, par value $0.001 per share, and any
other class of securities into which such securities may hereafter be reclassified or changed.


 


As
used herein, “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or
other entity of any kind.


 


As
used herein, “Trading Day” means any day on which the Common Stock is traded on the principal securities
exchange or securities market on which the Common Stock is then traded.


 


1.3
The Company and the Investor shall execute and/or deliver such other documents and agreements as are customary and reasonably
necessary to effectuate the Exchanges, including, at the request of the Company or its transfer agent, executed stock powers in
customary form.


 


2.
Closing Conditions.


 


2.1
Conditions to Investor’s Obligations. The obligation of the Investor to consummate the Exchange is subject to the
fulfillment, to the Investor’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions:


 


(a)
Representations and Warranties. The representations and warranties of the Company contained in this Agreement shall be
true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date.


 


(b)
Issuance of Shares. At the Closing, the Company shall cause certificates evidencing the Shares to be delivered to the Investor.


 


(c)
No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed
before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit or obtain substantial damages
in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement.


 


(d)
Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and
instruments incident to such transactions shall be satisfactory in substance and form to the Investor, and the Investor shall
have received all such counterpart originals or certified or other copies of such documents as they may reasonably request.


 






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2.2
Conditions to the Company’s Obligations. The obligation of the Company to consummate the Exchange is subject to the
fulfillment, to the Company’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions:


 


(a)
Representations and Warranties. The representations and warranties of the Investor contained in this Agreement shall be
true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date.


 


(b)
No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed
before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit, or obtain substantial damages
in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement.


 


(c)
Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and
instruments incident to such transactions shall be satisfactory in substance and form to the Company and the Company shall have
received all such counterpart originals or certified or other copies of such documents as the Company may reasonably request.


 


3.
Representations and Warranties of the Company. The Company hereby represents and warrants to Investor that:


 


3.1
Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada. The Company is duly qualified to transact business and is in good standing in
each jurisdiction in which the failure to so qualify would have a material adverse effect on its business or properties.


 


3.2
Authorization. All corporate action on the part of the Company, its officers, directors and stockholders necessary for
the authorization, execution and delivery of this Agreement and the performance of all obligations of the Company hereunder, and
the authorization (or reservation for issuance of), the Exchanges and the issuance of the Shares, have been taken on or prior
to the date hereof.


 


3.3
Valid Issuance of the Shares. The Shares, when issued and delivered in accordance with the terms of this Agreement, for
the consideration expressed herein, will be duly and validly issued, fully paid and non-assessable. The shares of Common Stock
underlying the Shares have been duly reserved for issuance and upon conversion of the Shares will be duly and validly issued,
fully paid and non-assessable.


 


3.4
Compliance With Laws. The Company has not violated any law or any governmental regulation or requirement which violation
has had or would reasonably be expected to have a material adverse effect on its business and the Company has not received written
notice of any such violation.


 






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3.5
Consents; Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any Person, not
already obtained, is required in connection with the execution and delivery of this Agreement by the Company or the consummation
by the Company of the transactions provided for herein and therein.


 


3.6
Acknowledgment Regarding Investor’s Purchase of Securities. The Company acknowledges and agrees that the Investor
is acting solely in the capacity of arm’s length Investor with respect to this Agreement and the other documents entered
into in connection herewith (collectively, the “Transaction Documents”) and the transactions contemplated
hereby and thereby and that the Investor is not (i) an officer or director of the Company, (ii) an “affiliate” of
the Company (as defined in Rule 144 promulgated under the Securities Act), or (iii) to the knowledge of the Company, a “beneficial
owner” of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange
Act of 1934, as amended). The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby
and thereby, and any advice given by the Investor or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated hereby and thereby is merely incidental to the Investor’s acceptance of the Shares. The
Company further represents to the Investor that the Company’s decision to enter into the Transaction Documents has been
based solely on the independent evaluation by the Company and its representatives.


 


3.7
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting
the Company, the Securities or any of the Company’s officers or directors in their capacities as such.


 


3.8
No Group. The Company represents to the Investor that it will be entering into one or more Securities Exchange Agreements
with other investors in substantially the form and identical terms hereof (“Other Agreements”), but the Company
acknowledges that, to the Company’s knowledge, the Investor is acting independently in connection with this Agreement and
the transactions contemplated hereby, and is not acting as part of a “group” as such term is defined under Section
13(d) of the Securities Act and the rules and regulations promulgated thereunder. The Company hereby represents and warrants as
of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered pursuant to any of the
Other Agreements (or agreements related to the Company’s common stock purchase warrants) is or will be more favorable than
those terms offered hereunder.


 


3.9
Validity; Enforcement; No Conflicts. This Agreement and each Transaction Document to which the Company is a party have
been duly and validly authorized, executed and delivered on behalf of the Company and shall constitute the legal, valid and binding
obligations of the Company enforceable against the Company in accordance with their respective terms, except as such enforceability
may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.
The execution, delivery and performance by the Company of this Agreement and each Transaction Document to which the Company is
a party and the consummation by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation
of the organizational documents of the Company or (ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which the Company is a party or by which it is bound, or (iii) result in a violation
of any law, rule, regulation, order, judgment or decree (including federal and state securities or “blue sky” laws)
applicable to the Company, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults or rights which would
not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Company
to perform its obligations hereunder.


 






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3.10
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided the Investor or
its agents or counsel with any information that constitutes or could reasonably be expected to constitute material, nonpublic
information. The Company understands and confirms that the Investor will rely on the foregoing representations in effecting transactions
in the Shares.


 


3.11
No Commission Paid. Neither the Company nor any of its affiliates nor any Person acting on behalf of or for the benefit
of any of the foregoing, has paid or given, or agreed to pay or give, directly or indirectly, any commission or other remuneration
(within the meaning of Section 3(a)(9) of the Securities Act and the rules and regulations of the Commission promulgated thereunder)
for soliciting the Exchange in a manner that would void the exemption from registration under Section 3(a)(9) of the Securities
Act.


 


4.
Representations and Warranties of the Investor. The Investor hereby represents, warrants and covenants that:


 


4.1
Authorization. The Investor has full power and authority to enter into this Agreement, to perform its obligations hereunder
and to consummate the transactions contemplated hereby and has taken all action necessary to authorize the execution and delivery
of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby.


 


4.2
Investment Experience. The Investor can bear the economic risk of its investment in the Securities, and has such knowledge
and experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the
Shares.


 


4.3
No Governmental Review. The Investor understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of
the investment in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.


 






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4.4
Validity; Enforcement; No Conflicts. This Agreement and each Transaction Document to which the Investor is a party have
been duly and validly authorized, executed and delivered on behalf of the Investor and shall constitute the legal, valid and binding
obligations of the Investor enforceable against the Investor in accordance with their respective terms, except as such enforceability
may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.
The execution, delivery and performance by the Investor of this Agreement and each Transaction Document to which the Investor
is a party and the consummation by the Investor of the transactions contemplated hereby and thereby will not (i) result in a violation
of the organizational documents of the Investor or (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Investor is a party, or (iii) result in a violation of any
law, rule, regulation, order, judgment or decree (including federal and state securities or “blue sky” laws) applicable
to the Investor, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults or rights which would not, individually
or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Investor to perform its obligations
hereunder.


 


5.
Additional Covenants.


 


5.1
Disclosure. The Company shall, on or before 9:30 a.m., New York City time, on the first business day after the date of
this Agreement, issue a Current Report on Form 8-K (the “8-K Filing”) disclosing all material terms
of the transactions contemplated hereby. From and after the issuance of the 8-K Filing, the Investor shall not be in possession
of any material, nonpublic information received from the Company or any of its respective officers, directors, employees or agents
that is not disclosed in the 8-K Filing. The Company shall not, and shall cause its officers, directors, employees and agents,
not to, provide the Investor with any material, nonpublic information regarding the Company from and after the filing of the 8-K
Filing without the express written consent of the Investor. The Company shall not disclose the name of the Investor in any filing,
announcement, release or otherwise, unless such disclosure is required by law or regulation. In addition, effective upon the filing
of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates,
employees or agents, on the one hand, and the Investor or any of its affiliates, on the other hand, shall terminate.


 


(a)
Survival of Covenants. The June 2019 SPA shall survive and be incorporated by reference into this Agreement and the Shares
issuable hereunder for all such purposes be deemed “Shares” as used under the June 2019 SPA as if the Shares were
issued pursuant to such agreement. Except as expressly set forth herein, the June 2019 SPA is and shall remain unchanged and in
full force and effect, and nothing contained in this Agreement shall, by implication or otherwise, limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the parties, or shall alter, modify, amend or in any way affect any
of the terms, conditions, obligations, covenants or agreements contained in the Agreement.


 


5.2
Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance
of this Agreement.


 






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5.3
Section 3(a)(9) Exchange. The parties acknowledge and agree that in accordance with
Section 3(a)(9) of the Securities Act, the Shares (and shares of Common Stock issuable upon conversion thereof) shall take on
the registered characteristics of the Shares being exchanged. The Company agrees not to take any position contrary to this Section
5.3.


 


6.
Miscellaneous.


 


6.1
Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to
the benefit of and be binding upon the parties hereto and the respective successors and assigns of the parties. Nothing in this
Agreement, express or implied, is intended to confer upon any party, other than the parties hereto or their respective successors
and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.


 


6.2
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law
or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state or federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any
such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.


 


6.3
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.


 


6.4
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered pursuant to the terms of the June 2019 SPA.


 


6.5
Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may
be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent
of the Company and the Investor. Any amendment or waiver effected in accordance with this paragraph shall be binding upon Investor
and the Company, provided that no such amendment shall be binding on a holder that does not consent thereto to the extent such
amendment treats such party differently than any party that does consent thereto.


 



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6.6
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded
and shall be enforceable in accordance with its terms.


 


6.7
Entire Agreement. This Agreement represents the entire agreement and understanding between the parties concerning the Exchange
and the other matters described herein and therein and supersede and replaces any and all prior agreements and understandings
solely with respect to the subject matter hereof and thereof.


 


6.8
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.


 


6.9
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.


 


6.10
Survival. The representations, warranties and covenants of the Company and the Investor contained herein shall survive
the Closing and delivery of the Shares.


 


6.11
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.


 


6.12
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.


 


[SIGNATURES
ON THE FOLLOWING PAGES]


 









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IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date provided above.


 





	 	THE COMPANY
	 	 
	 	U.S. GOLD CORP.
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 




 









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IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date provided above.


 


INVESTOR


 


Name
of Investor: ________________________________________________________


 


Signature
of Authorized Signatory of Investor: __________________________________


 


Name
of Authorized Signatory: ____________________________________________________


 


Title
of Authorized Signatory: _____________________________________________________


 


Email
Address of Authorized Signatory: _____________________________________________


 


Shares
of Series F Preferred Stock subject to Exchange: ___________


 


Shares
of Series G Preferred Stock to be issued to the Investor: ________________


 


[INVESTOR
SIGNATURE PAGE TO USAU EXCHANGE AGREEMENT]


 






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