Document:

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT AGREEMENT
(“Agreement”) is entered into by and between Mark Ethier (“Employee”) and HSN
General Partner LLC, a Delaware limited liability company (the “Company”), and
is effective December 1, 2004 (the “Effective Date”).

 

WHEREAS, the Company
desires to establish its right to the services of Employee, in the capacity
described below, on the terms and conditions hereinafter set forth, and
Employee is willing to accept such employment on such terms and conditions.

 

NOW, THEREFORE, in
consideration of the mutual agreements hereinafter set forth, Employee and the
Company have agreed and do hereby agree as follows:

 

1A.                             EMPLOYMENT.  The Company agrees to employ Employee as
Chief Operations Officer, and Employee accepts and agrees to such
employment.  During Employee’s employment
with the Company, Employee shall do and perform all services and acts necessary
or advisable to fulfill the duties and responsibilities as are commensurate and
consistent with Employee’s position and shall render such services on the terms
set forth herein.  During Employee’s
employment with the Company, Employee shall report directly such
person(s) as from time to time may be designated by the Company
(hereinafter referred to as the “Reporting Officer”).  Employee shall have such powers and duties
with respect to the Company as may reasonably be assigned to Employee by the
Reporting Officer, to the extent consistent with Employee’s position and status.  Employee agrees to devote all of Employee’s
working time, attention and efforts to the Company and to perform the duties of
Employee’s position in accordance with the Company’s policies as in effect from
time to time.  Employee’s principal place
of employment shall be the Company’s offices located in St. Petersburg,
Florida.

 

2A.                             TERM
OF AGREEMENT.  The term (“Term”) of
this Agreement shall commence on the Effective Date and shall continue until
March  1, 2008, unless sooner terminated in accordance with the provisions
of Section 1 of the Standard Terms and Conditions attached hereto.

 

3A.                             COMPENSATION.

 

(a)                                  BASE
SALARY.  During the Term of this
Agreement, the Company shall pay Employee an annual base salary of $360,000
through February 28, 2005 and then effective March 1, 2005 an annual
base salary of $400,000 for the remainder of the Term  (the “Base Salary”), payable in equal
biweekly installments or in accordance with the Company’s payroll practice as
in effect from time to time.  For all
purposes under this Agreement, the term “Base Salary” shall refer to Base
Salary as in effect from time to time.

 

(b)                                 DISCRETIONARY
BONUS.  During the Term, Employee
shall be eligible to receive discretionary annual bonuses.

 

(c)                                  BENEFITS.  From the Effective Date through the date of
termination of Employee’s employment with the Company for any reason, Employee
shall be entitled to participate in any welfare, health and life insurance and
pension benefit and incentive programs 

 

 

as may be adopted from time to time by the Company on the same basis as
that provided to similarly situated employees of the Company.  Without limiting the generality of the
foregoing, Employee shall be entitled to the following benefits:

 

(i)                                     Reimbursement
for Business Expenses.  During the
Term, the Company shall reimburse Employee for all reasonable and necessary
expenses incurred by Employee in performing Employee’s duties for the Company,
on the same basis as similarly situated employees and in accordance with the
Company’s policies as in effect from time to time.

 

(ii)                                  Paid
Time Off (“PTO”).  During the Term,
Employee shall be entitled to paid time off per year, in accordance with the
plans, policies, programs and practices of the Company applicable to similarly
situated employees of the Company generally.

 

4A.                             NOTICES.  All notices and other communications under
this Agreement shall be in writing and shall be given by first-class mail,
certified or registered with return receipt requested or hand delivery
acknowledged in writing by the recipient personally, and shall be deemed to
have been duly given three days after mailing or immediately upon duly
acknowledged hand delivery to the respective persons named below:

 

	
  If to the Company:

  	
   

  	
  HSN General Partner LLC

  
	
   

  	
   

  	
  1 HSN Drive

  
	
   

  	
   

  	
  St. Petersburg, FL
  33729

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
   

  
	
  If to Employee:

  	
   

  	
  Mark Ethier

  
	
   

  	
   

  	
  4309 Beach Park Drive

  
	
   

  	
   

  	
  Tampa, FL 33609

  

 

Either party may change
such party’s address for notices by notice duly given pursuant hereto.

 

5A.                             GOVERNING
LAW; JURISDICTION.  This Agreement
and the legal relations thus created between the parties hereto shall be
governed by and construed under and in accordance with the internal laws of the
State of Florida without reference to the principles of conflicts of laws.  Any and all disputes between the parties
which may arise pursuant to this Agreement will be heard and determined before
an appropriate federal court in Pinellas or Hillsborough Counties or, if not
maintainable therein, then in an appropriate Florida state court.  The parties acknowledge that such courts have
jurisdiction to interpret and enforce the provisions of this Agreement, and the
parties consent to, and waive any and all objections that they may have as to,
personal jurisdiction and/or venue in such courts.

 

6A.                             COUNTERPARTS.  This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.  Employee expressly understands and
acknowledges that the Standard Terms and Conditions attached hereto are incorporated
herein by reference, deemed a part of this Agreement and are binding and
enforceable provisions of this Agreement. 
References to “this 

 

2

 

Agreement” or the use of
the term “hereof” shall refer to this Agreement and the Standard Terms and
Conditions attached hereto, taken as a whole.

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed and delivered by its duly
authorized officer, and Employee has executed and delivered this Agreement on
December 1st, 2004.

 

	
   

  	
  HSN GENERAL PARTNER LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Lisa Letizo

  
	
   

  	
  By:  Lisa Letizio

  
	
   

  	
  Title:  Executive VP Human Resources

  
	
   

  	
   

  
	
   

  	
   /s/ Mark Ethier

  
	
   

  	
  MARK ETHIER

  

 

3

 

STANDARD TERMS AND
CONDITIONS

 

1.                                       TERMINATION
OF EMPLOYEE’S EMPLOYMENT.

 

(a)                                  DEATH.  In the event Employee’s employment hereunder
is terminated by reason of Employee’s death, the Company shall pay Employee’s
designated beneficiary or beneficiaries, within 30 days of Employee’s death in
a lump sum in cash, Employee’s Base Salary through the end of the month in
which death occurs and any Accrued Obligations (as defined in paragraph
1(f) below).

 

(b)                                 DISABILITY.  If, as a result of Employee’s incapacity due
to physical or mental illness (“Disability”), Employee shall have been absent
from the full-time performance of Employee’s duties with the Company for a
period of four consecutive months and, within 30 days after written notice is
provided to Employee by the Company (in accordance with Section 6 hereof),
Employee shall not have returned to the full-time performance of Employee’s
duties, Employee’s employment under this Agreement may be terminated by the
Company for Disability.  During any
period prior to such termination during which Employee is absent from the
full-time performance of Employee’s duties with the Company due to Disability,
the Company shall continue to pay Employee’s Base Salary at the rate in effect
at the commencement of such period of Disability, offset by any amounts payable
to Employee under any disability insurance plan or policy provided by the
Company.  Upon termination of Employee’s
employment due to Disability, the Company shall pay Employee within 30 days of
such termination (i) Employee’s Base Salary through the end of the month
in which termination occurs in a lump sum in cash, offset by any amounts
payable to Employee under any disability insurance plan or policy provided by
the Company; and (ii) any Accrued Obligations (as defined in paragraph 1(f) below).

 

(c)                                  TERMINATION
FOR CAUSE.  The Company may terminate
Employee’s employment under this Agreement for Cause at any time prior to the
expiration of the Term.   As used herein,
“Cause” shall mean:   (i) the plea
of guilty or nolo contendere to, or conviction for, the commission of a felony
offense by Employee; provided, however, that after indictment,
the Company may suspend Employee from the rendition of services, but without
limiting or modifying in any other way the Company’s obligations under this Agreement;
(ii) a material breach by Employee of a fiduciary duty owed to the
Company; (iii) a material breach by Employee of any of the covenants made
by Employee in Section 2 hereof; (iv) the willful or gross neglect by
Employee of the material duties required by this Agreement; or (v) a
violation of any Company policy pertaining to ethics, wrongdoing or conflicts
of interest.  In the event of  Employee’s termination for Cause, this
Agreement shall terminate without further obligation by the Company, except for
the payment of any Accrued Obligations (as defined in paragraph
1(f) below).

 

(d)                                 TERMINATION
BY THE COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE.  If Employee’s employment is terminated by the
Company for any reason other than Employee’s death or Disability or for Cause,
then (i) the Company shall pay Employee the Base Salary through the end of
the Term over the course of the then remaining

 

 

Term; and (ii) the Company shall pay Employee within 30 days of
the date of such termination in a lump sum in cash any Accrued Obligations (as
defined in paragraph 1(f) below). 
The payment to Employee of the severance benefits described in this
Section 1(d) shall be subject to Employee’s execution and non-revocation
of a general release of the Company and its affiliates in a form substantially
similar to that used for similarly situated executives of the Company and its
affiliates.

 

(e)                                  MITIGATION;
OFFSET.  In the event of termination
of Employee’s employment prior to the end of the Term, Employee shall use
reasonable best efforts to seek other employment and to take other reasonable
actions to mitigate the amounts payable under Section 1 hereof.  If Employee obtains other employment during
the Term, the amount of any payment or benefit provided for under Section 1
hereof which has been paid to Employee shall be refunded to the Company by
Employee in an amount equal to any compensation earned by Employee as a result
of employment with or services provided to another employer after the date of
Employee’s termination of employment and prior to the otherwise applicable
expiration of the Term, and all future amounts payable by the Company to
Employee during the remainder of the Term shall be offset by the amount earned
by Employee from another employer.  For
purposes of this Section 1(e), Employee shall have an obligation to inform
the Company regarding Employee’s employment status following termination and
during the period encompassing the Term.

 

(f)                                    ACCRUED
OBLIGATIONS.  As used in this
Agreement, “Accrued Obligations” shall mean the sum of (i) any portion of
Employee’s Base Salary through the date of death or termination of employment
for any reason, as the case may be, which has not yet been paid; and
(ii) any compensation previously earned but deferred by Employee (together
with any interest or earnings thereon) that has not yet been paid.

 

2.                                       CONFIDENTIAL
INFORMATION; NON-COMPETITION; NON-SOLICITATION; AND PROPRIETARY RIGHTS.

 

(a)                                  CONFIDENTIALITY.  Employee acknowledges that while employed by
the Company Employee will occupy a position of trust and confidence.  Employee shall not, except as may be required
to perform Employee’s duties hereunder or as required by applicable law,
without limitation in time or until such information shall have become public
other than by Employee’s unauthorized disclosure, disclose to others or use,
whether directly or indirectly, any Confidential Information regarding the
Company or any of its subsidiaries or affiliates.  “Confidential Information” shall mean
information about the Company or any of its subsidiaries or affiliates, and
their clients and customers that is not disclosed by the Company or any of its
subsidiaries or affiliates for financial reporting purposes and that was
learned by Employee in the course of employment by the Company or any of its
subsidiaries or affiliates, including (without limitation) any proprietary
knowledge, trade secrets, data, formulae, information and client and customer
lists and all papers, resumes, and records (including computer records) of the
documents containing such Confidential Information.  Employee acknowledges that such Confidential
Information is specialized, unique in nature and of great value to the Company
and its subsidiaries or affiliates, and that such information gives the Company
and its subsidiaries or affiliates a competitive advantage.  Employee agrees to deliver or return to the
Company, at the Company’s request at any time or upon termination or expiration
of Employee’s employment or 

 

2

 

as soon thereafter as possible, all documents, computer tapes and
disks, records, lists, data, drawings, prints, notes and written information
(and all copies thereof) furnished by the Company and its subsidiaries or
affiliates or prepared by Employee in the course of Employee’s employment by
the Company and its subsidiaries or affiliates. 
As used in this Agreement, “subsidiaries” and  “affiliates” shall mean any company
controlled by, controlling or under common control with the Company.

 

(b)                                 NON-COMPETITION.                         During
Employee’s employment with the Company and for twelve (12) months thereafter,
Employee shall not, directly or indirectly, on behalf of Employee or on behalf
of or with any other person, enterprise or entity, in any individual or
representative capacity, engage or participate in any business, including its
affiliated Internet entities, that is in competition with the Company or any
subsidiary or affiliate of the Company in the United States of America in the
field of television retailing, including, without limitation, QVC, Shop NBC
(formerly called ValueVision) or Shop at Home, as well as any company which
subsequently enters the field of television retailing as its primary business
(collectively, the “Competing Companies”). Employee’s obligations under this
Section shall continue during the Term and for the period after the Term
set forth above and shall not, for any reason, cease upon termination of
Employee’s employment with the Company. 
Notwithstanding anything else contained in this Section, Employee may
own, for investment purposes only, up to five percent (5%) of the stock of any
Competing Company if it is a publicly-held corporation whose stock is either
listed on a national stock exchange or on the NASDAQ National Market System and
if Employee is not otherwise affiliated with or participating in such
corporation.  As used herein,
“participate” means lending one’s name to, acting as consultant or advisor to,
being employed by or acquiring any direct or indirect interest in any business
or enterprise, whether as a stockholder, partner, officer, director, employee,
consultant or otherwise.  In the event
that (1) the Company or any of its subsidiaries or affiliates places, or
has placed for it, all or substantially all of its assets up for sale within
one (1) year after termination of Employee’s employment hereunder or
(2) Employee’s employment is terminated in connection with the disposition
of all or substantially all of such assets (whether by sale of assets, equity
or otherwise), Employee agrees to be bound by, and to execute such additional
instruments as may be necessary or desirable to evidence Employee’s agreement
to be bound by, the terms and conditions of any non-competition provisions
relating to the purchase and sale agreement for such assets, without any
consideration beyond that expressed in this Agreement, provided that the
purchase and sale agreement is negotiated in good faith with customary terms
and provisions and the transaction contemplated thereby is consummated.  Notwithstanding the foregoing, in no event
shall Employee be bound by, or obligated to enter into, any non-competition
provisions referred to in this Section 2(b) which extend beyond
twelve (12) months, in each case from the date of termination of Employee’s
employment hereunder or whose scope extends the scope of the non-competition
provisions set forth in this Section 2(b). 
The twelve (12) month time period referred to above shall be tolled on a
day-for-day basis for each day during which Employee participates in any
activity in violation of this Section 2(b) so that Employee is
restricted from engaging in the conduct referred to in this
Section 2(b) for a full twelve (12) months.

 

(c)                                  NON-SOLICITATION
OF EMPLOYEES.  Employee recognizes
that he will possess confidential information about other employees of the
Company and its subsidiaries or 

 

3

 

affiliates relating to their education, experience, skills, abilities,
compensation and benefits, and inter-personal relationships with suppliers to
and customers of the Company and its subsidiaries or affiliates.  Employee recognizes that the information he
will possess about these other employees is not generally known, is of
substantial value to the Company and its subsidiaries or affiliates in
developing their respective businesses and in securing and retaining customers,
and will be acquired by Employee because of Employee’s business position with
the Company.  Employee agrees that,
during the Term (and for a period of 24 months beyond the expiration of the
Term), Employee will not, directly or indirectly, solicit or recruit any
employee of the Company or any of its subsidiaries or affiliates for the
purpose of being employed by Employee or by any business, individual,
partnership, firm, corporation or other entity on whose behalf Employee is
acting as an agent, representative or employee and that Employee will not
convey any such confidential information or trade secrets about other employees
of the Company or any of its subsidiaries or affiliates to any other person
except within the scope of Employee’s duties hereunder.

 

(d)                                 PROPRIETARY
RIGHTS; ASSIGNMENT.  All Employee
Developments shall be made for hire by the Employee for the Company or any of
its subsidiaries or affiliates. 
“Employee Developments” means any idea, discovery, invention, design,
method, technique, improvement, enhancement, development, computer program,
machine, algorithm or other work or authorship that (i) relates to the
business or operations of the Company or any of its subsidiaries or affiliates,
or (ii) results from or is suggested by any undertaking assigned to the
Employee or work performed by the Employee for or on behalf of the Company or
any of its subsidiaries or affiliates, whether created alone or with others,
during or after working hours.  All
Confidential Information and all Employee Developments shall remain the sole
property of the Company or any of its subsidiaries or affiliates.  The Employee shall acquire no proprietary
interest in any Confidential Information or Employee Developments developed or
acquired during the Term.  To the extent
the Employee may, by operation of law or otherwise, acquire any right, title or
interest in or to any Confidential Information or Employee Development, the
Employee hereby assigns to the Company all such proprietary rights.  The Employee shall, both during and after the
Term, upon the Company’s request, promptly execute and deliver to the Company
all such assignments, certificates and instruments, and shall promptly perform
such other acts, as the Company may from time to time in its discretion deem
necessary or desirable to evidence, establish, maintain, perfect, enforce or
defend the Company’s rights in Confidential Information and Employee
Developments.

 

(e)                                  COMPLIANCE
WITH POLICIES AND PROCEDURES.  During
the Term, Employee shall adhere to the policies and standards of
professionalism set forth in the Company’s Policies and Procedures as they may
exist from time to time.

 

(f)                                    REMEDIES
FOR BREACH.  Employee expressly
agrees and understands that Employee will notify the Company in writing of any
alleged breach of this Agreement by the Company, and the Company will have 30
days from receipt of Employee’s notice to cure any such breach.

 

Employee expressly agrees and understands that the
remedy at law for any breach by Employee of this Section 2 will be
inadequate and that damages flowing from such breach are 

 

4

 

not usually susceptible to being measured in monetary terms.  Accordingly, it is acknowledged that upon
Employee’s violation of any provision of this Section 2 the Company shall
be entitled to obtain from any court of competent jurisdiction immediate
injunctive relief and obtain a temporary order restraining any threatened or
further breach as well as an equitable accounting of all profits or benefits
arising out of such violation.  Nothing
in this Section 2 shall be deemed to limit the Company’s remedies at law
or in equity for any breach by Employee of any of the provisions of this
Section 2, which may be pursued by or available to the Company.

 

(g)                                 SURVIVAL
OF PROVISIONS.  The obligations
contained in this Section 2 shall, to the extent provided in this
Section 2, survive the termination or expiration of Employee’s employment
with the Company and, as applicable, shall be fully enforceable thereafter in
accordance with the terms of this Agreement. 
If it is determined by a court of competent jurisdiction in any state
that any restriction in this Section 2 is excessive in duration or scope
or is unreasonable or unenforceable under the laws of that state, it is the
intention of the parties that such restriction may be modified or amended by
the court to render it enforceable to the maximum extent permitted by the law
of that state.

 

3.                                       TERMINATION
OF PRIOR AGREEMENTS.  This Agreement
constitutes the entire agreement between the parties and terminates and
supersedes any and all prior agreements and understandings (whether written or
oral) between the parties with respect to the subject matter of this
Agreement.  Employee acknowledges and
agrees that neither the Company nor anyone acting on its behalf has made, and
is not making, and in executing this Agreement, the Employee has not relied
upon, any representations, promises or inducements except to the extent the
same is expressly set forth in this Agreement. 
Employee hereby represents and warrants that by entering into this
Agreement, Employee will not rescind or otherwise breach an employment
agreement with Employee’s current employer prior to the natural expiration date
of such agreement

 

4.                                       ASSIGNMENT;
SUCCESSORS.  This Agreement is
personal in its nature and none of the parties hereto shall, without the
consent of the others, assign or transfer this Agreement or any rights or
obligations hereunder, provided that, in the event of the merger,
consolidation, transfer, or sale of all or substantially all of the assets of
the Company with or to any other individual or entity, this Agreement shall,
subject to the provisions hereof, be binding upon and inure to the benefit of
such successor and such successor shall discharge and perform all the promises,
covenants, duties, and obligations of the Company hereunder, and all references
herein to the “Company” shall refer to such successor.

 

5.                                       WITHHOLDING.  The Company shall make such deductions and
withhold such amounts from each payment and benefit made or provided to
Employee hereunder, as may be required from time to time by applicable law,
governmental regulation or order.

 

6.                                       HEADING
REFERENCES.  Section headings in
this Agreement are included herein for convenience of reference only and shall
not constitute a part of this Agreement for any other purpose.  References to “this Agreement” or the use of
the term “hereof” shall refer to these Standard Terms and Conditions and the
Employment Agreement attached hereto, taken as a whole.

 

5

 

7.                                       WAIVER;
MODIFICATION.  Failure to insist upon
strict compliance with any of the terms, covenants, or conditions hereof shall
not be deemed a waiver of such term, covenant, or condition, nor shall any
waiver or relinquishment of, or failure to insist upon strict compliance with,
any right or power hereunder at any one or more times be deemed a waiver or
relinquishment of such right or power at any other time or times.  This Agreement shall not be modified in any
respect except by a writing executed by each party hereto.  Notwithstanding anything to the contrary
herein, neither the assignment of Employee to a different Reporting Officer due
to a reorganization or an internal restructuring of the Company or its
affiliated companies nor a change in the title of the Reporting Officer shall
constitute a modification or a breach of this Agreement.

 

8.                                       SEVERABILITY.  In the event that a court of competent
jurisdiction determines that any portion of this Agreement is in violation of
any law or public policy, only the portions of this Agreement that violate such
law or public policy shall be stricken. 
All portions of this Agreement that do not violate any statute or public
policy shall continue in full force and effect. 
Further, any court order striking any portion of this Agreement shall
modify the stricken terms as narrowly as possible to give as much effect as
possible to the intentions of the parties under this Agreement.

 

9.                                       INDEMNIFICATION.  The Company shall indemnify and hold Employee
harmless for acts and omissions in Employee’s capacity as an officer, director
or employee of the Company to the maximum extent permitted under applicable
law; provided, however, that neither the Company, nor any of its
subsidiaries or affiliates shall indemnify Employee for any losses incurred by
Employee as a result of acts described in Section 1(c) of this
Agreement.

 

	
  ACKNOWLEDGED AND
  AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: 12/1/04

  	
   

  
	
   

  	
   

  
	
   

  	
  HSN GENERAL PARTNER LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Lisa Letizo

  
	
   

  	
  By:  Lisa Letizio

  
	
   

  	
  Title:  Executive VP Human Resources

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   /s/ Mark Ethier

  
	
   

  	
  MARK ETHIER

  

 

6

 

FIRST
AMENDMENT TO EMPLOYMENT AGREEMENT

 

This FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT (“First Amendment”) is entered into by and between Mark
Ethier (“Employee”) and HSN General Partner LLC, a Delaware limited liability
company (the “Company”), and is effective as of the date signed below
(“Effective Date”).

 

WHEREAS, Employee and
Company previously entered into an Employment Agreement as of December 1,
2004; and

 

WHEREAS, Employee and
Company now wish to modify that Employment Agreement with this First Amendment.

 

NOW, THEREFORE, in
consideration of the mutual agreements hereinafter set forth, Employee and
Company have agreed and do hereby agree as follows:

 

A.           Section 2A, “TERM
OF AGREEMENT”, shall extend two (2) years from March 1, 2008
unless sooner terminated in accordance with the provisions of Section 1 of
the Standard Terms and Conditions.

 

B.             Section 3A, “BASE  SALARY”, shall remain the same during the
Term.

 

C.             Unless specifically
changed by this First Amendment, all other terms and conditions in the
Employment Agreement shall remain in full force and effect.

 

D.            The Employment
Agreement and this First Amendment shall be referred to collectively as the
“Agreement.”

 

IN WITNESS WHEREOF,
Employee and Company have executed this First Amendment on this 9th
day of July, 2007.

 

 

	
  /s/ Lisa Letizio

  	
   

  	
  /s/ Mark Ethier

  
	
  Lisa Letizio

  	
   

  	
  Mark Ethier

  
	
  VP Human Resources

  	
   

  	
   

  

 

 

SECOND
AMENDMENT TO EMPLOYMENT AGREEMENT

 

This SECOND AMENDMENT TO
EMPLOYMENT AGREEMENT (“Second Amendment”) is entered into by and between Mark
Ethier (“Employee”) and HSN General Partner LLC, a Delaware limited liability
company (the “Company”), and is effective as of the date signed below
(“Effective Date”).

 

WHEREAS, Employee and
Company previously entered into an Employment Agreement as of December 1, 2004,
and a First Amendment to Employment Agreement as of July 9, 2007 ( collectively
the “Employment Agreement”); and

 

WHEREAS, Employee and
Company now wish to modify that Employment Agreement with this Second
Amendment.

 

NOW, THEREFORE, in
consideration of the mutual agreements hereinafter set forth, Employee and
Company have agreed and do hereby agree as follows:

 

A.           Section 3A, “BASE  SALARY”, shall be $450,000 during the
Term.

 

B.             Unless specifically
changed by this Second Amendment, all other terms and conditions in the
Employment Agreement shall remain in full force and effect.

 

C.             The Employment
Agreement and this Second Amendment shall be referred to collectively as the
“Agreement.”

 

IN WITNESS WHEREOF,
Employee and Company have executed this First Amendment on this 23rd
day of June, 2008.

 

 

	
  /s/ Lisa Letizio

  	
   

  	
  /s/ Mark Ethier

  
	
  Lisa Letizio

  	
   

  	
  Mark Ethier

  
	
  VP Human ResourcesFiled by sedaredgar.com - American Uranium Corporation - Exhibit 10.1

LEASE AND OPTION AGREEMENT 
between 
NU
STAR EXPLORATION, LLC AND AMERICAN URANIUM CORPORATION 

 

Table of Contents 

	ARTICLE 1 DEFINITION AND INTERPRETATION 	1 
	 	1.1 	Definition and Interpretation 	1 
	ARTICLE 2 LEASE AND OPTION 	4 
	 	2.1 	Lease 	4 
	 	2.2 	Renewal 	4 
	 	2.3 	Consideration 	5 
	 	2.4 	Option to Purchase 	5 
	 	2.5 	AUC Covenants 	7 
	 	2.6 	Title Documents 	7 
	 	2.7 	AUC’s Right to Terminate Agreement
      	7 
	ARTICLE 3 SHARES 	8 
	 	3.1 	Shares 	8 
	ARTICLE 4 PROTECTION OF PROPERTIES 	8 
	 	4.1 	Property Maintenance 	8 
	 	4.2 	Amendments, Relocations and Patents 	9 
	 	4.3 	Change in Federal Mining Law 	9 
	 	4.4 	Covenants by Nu Star 	9 
	ARTICLE 5 WORK COMMITMENT 	9 
	 	5.1 	Work Commitment 	9 
	 	5.2 	Reporting and Audits 	10 
	ARTICLE 6 OPERATIONS DURING TERM 	10 
	 	6.1 	Operations 	10 
	 	6.2 	No Implied Covenants 	11 
	 	6.3 	Protection From Liens and Damages 	11 
	 	6.4 	Inspection 	11 
	 	6.5 	Data 	11 
	 	6.6 	Confidentiality 	12 
	 	6.7 	Insurance 	12 
	ARTICLE 7 DEFAULT, TERMINATION AND SURRENDER 	12 
	 	7.1 	Default 	12 
	 	7.2 	Termination and Surrender 	13 
	 	7.3 	Removal of Equipment 	13 
	ARTICLE 8 REPRESENTATIONS AND WARRANTIES 	14 
	 	8.1 	Nu Star’s Representations and Warranties
      	14 
	 	8.2 	Nu Star’s Acknowledgements 	16 
	 	8.3 	Indemnity 	16 

2 

	 	8.4 	AUC’s Representations
      and Warranties 	17 
	 	8.5 	Application 	17 
	ARTICLE 9 ASSIGNMENTS
      	17 
	 	9.1 	Transfers by AUC 	17 
	 	9.2 	Transfer by Nu Star 	18 
	 	9.3 	Affiliates 	18 
	ARTICLE 10 NOTICE
      	19 
	 	10.1 	Notices 	19 
	ARTICLE 11 MISCELLANEOUS
      	20 
	 	11.1 	Governing Law 	20 
	 	11.2 	Arbitration 	20 
	 	11.3 	Entire Agreement 	20 
	 	11.4 	Time of Essence 	20 
	 	11.5 	Binding 	20 
	 	11.6 	Counterparts 	20 
	 	11.7 	Third Party Beneficiaries 	20 
	 	11.8 	Force Majeure 	21 
	 	11.9 	Specific Performance 	21 
	 	11.10 	Perpetuities 	21 
	 	11.11 	Survival 	22 
	 	11.12 	Public Disclosure 	22 
	 	11.13 	Further Assurance 	22 
	 	11.14 	Amendment and Waiver 	22 
	 	11.15 	Section Headings, and Construction 	22 
	 	11.16 	Severability 	23 
	 	11.17 	No Partnership 	23 

	SCHEDULE “A” –
      PROPERTIES AND MINERAL CLAIMS 
	SCHEDULE “B” – NET SMELTER RETURNS
      ROYALTY 
	SCHEDULE “C” –
      SHAREHOLDER QUESTIONNAIRE 

LEASE AND OPTION AGREEMENT 

(Mining Claims, State of Arizona) 

This LEASE AND OPTION AGREEMENT is made as of September 18,
2008 

BETWEEN: 

  
    
      
        NU STAR EXPLORATION, LLC a limited liability
          company, having an address at 14418 South 40th Street, Phoenix, Arizona
          85044 

        (“Nu Star”) 

      

    

  

AND: 

  
    
      
        AMERICAN URANIUM CORPORATION, a Nevada
          corporation, having an office at 600 17th Street, Suite 2800 South,
          Denver, CO 80202 

        (“AUC”) 

      

    

  

RECITALS: 

A.          Nu
Star, or its agent, is the legal and beneficial owner of certain mining claims
known as ‘Rock’, ‘Big’, ‘Candy’, ‘Rush’ and ‘Wit’ located in the State of
Arizona and more particularly described in Schedule “A” (hereinafter referred to
as the “Mineral Claims”, or collectively as the “Properties”);

B.          AUC
is in the business of uranium exploration;

C.          Nu
Star wishes to lease the Mineral Claims to AUC in accordance with the terms of
this Agreement; and

D.          Nu
Star wishes to grant to AUC an option to purchase Nu Star’s interest in and
rights to the Mineral Claims in accordance with the terms of this Agreement.

NOW THEREFORE, in consideration of Ten Dollars, the
mutual promises and covenants contained in this Agreement, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
expressly acknowledged, the parties agree as follows: 

ARTICLE 1 
DEFINITION AND INTERPRETATION 

	1.1 	
      Definition and Interpretation

	 	 	 	 
		(a) 	
      “Affiliate” means a company that:

	 	 	 	 
			(i) 	
      is controlled by that party,

	 	 	 	 
			(ii) 	
      is controlled by the same company that controls that
      party, or

2 

	 	(iii) 	
      controls that party.

	 	(b) 	
      “Agreement” means this Lease and Option
      Agreement.

	 	 	 
	 	(c) 	
      “BLM” means the Bureau of Land
  Management.

	 	 	 
	 	(d) 	
      “Business Day” means a day (other than a Saturday)
      on which banks are open for business in British Columbia.

	 	 	 
	 	(e) 	
      “Commercial Production” means the day on which an
      aggregate total of 10,000 tons of uranium ore has been shipped from the
      Purchased Properties for the purpose of earning revenue from the sale of
      such products.

	 	 	 
	 	(f) 	
      “Control” means that the votes carried by the
      shares held of the controlled company by the controlling company, are
      sufficient for the controlling company to elect or appoint a majority of
      the directors of the controlled company.

	 	 	 
	 	(g) 	
      “Data” has the meaning set forth in Section
      6.5(a).

	 	 	 
	 	(h) 	
      “Effective Date” means September 18,
  2008.

	 	 	 
	 	(i) 	
      “Expenditures” mean property maintenance costs and
      all costs and expenses incurred by or for the benefit of AUC in all
      activities conducted on or in respect of the Mineral Claims to advance the
      exploration and development of the Properties or in furtherance of the
      discovery, location, delineation or evaluation of any deposit of minerals
      within the Mineral Claims including, without limitation, aerial and
      surface reconnaissance, geophysical and geochemical work, and geological
      mapping; drill-site preparation; road building; land clearing; exploration
      drilling; trenching; excavation, driving of adits, sinking of shafts and
      similar underground operations; logging of drill holes and drill core;
      evaluation of geological, geophysical, geochemical or other exploration
      data; laboratory work, including without limitation, assay or
      metallurgical analyses; and reclamation and restoration work on any drill
      sites as required by any federal, state or local agency. Costs and
      expenses of all similar work not physically conducted on the Properties
      shall also constitute Expenditures to the extent that such work is for the
      purpose of, or in furtherance of, the discovery, location, delineation or
      evaluation of any deposits of minerals within the Properties.

	 	 	 
	 	(j) 	
      “Laws” means with respect to the interpretation of
      this Agreement, the laws of the Province of British Columbia and the
      federal laws of Canada apply, and with respect to the Mineral Claims all
      applicable statutes, rules, codes, regulations, by-laws, or orders
      enacted, promulgated, implemented, and/or issued by any United States
      federal, State of Arizona, or local government entity will
apply.

	 	 	 
	 	(k) 	
      “Lease” means the lease of the Mineral Claims by
      Nu Star to AUC pursuant to the terms of this
Agreement;

3 

	 	(l) 	
      “Lease Payment Date” means the first day of the
      Initial Term, and should any Lease(s) be renewed, then it shall mean the
      Renewal Date. If any such date falls on a day that is not a Business Day,
      the date shall be the next following Business Day.

	 	 	 
	 	(m) 	
      “Lease Payments” mean each amount due to Nu Star
      pursuant to Section 2.2.

	 	 	 
	 	(n) 	
      “Lease Term” means the Initial Term or a Renewal
      Term, as the case may be.

	 	 	 
	 	(o) 	
      “Option” means the option of AUC to purchase the
      Mineral Claims from Nu Star in accordance with the provisions of this
      Agreement.

	 	 	 
	 	(p) 	
      “Option Exercise Date” has the meaning set forth
      is Section 2.4(c).

	 	 	 
	 	(q) 	
      “Option Exercise Period” means the period
      commencing on the day following the Execution Date, or Renewal Date, as
      the case may be, and terminating 30 days prior to the end of the Initial
      Term, or a Renewal Term, as the case may be.

	 	 	 
	 	(r) 	
      “Option Notice” means the written notice delivered
      by AUC to Nu Star 30 days prior to the expiry of a Renewal Term setting
      out which of the Mineral Claims AUC wishes to purchase.

	 	 	 
	 	(s) 	
      “Renewal Date” means the anniversary date of each
      one year Lease that is renewed by AUC in accordance with this Agreement.
      For greater certainty, the anniversary date for the Leases shall be
      September 18.

	 	 	 
	 	(t) 	
      “Renewal Notice” means a written notice delivered
      by AUC to Nu Star on or before 30 days prior to the end of the Initial
      Term or any Renewal Term, and which shall set out the Mineral Claims to be
      leased or not to be leased for such renewal term.

	 	 	 
	 	(u) 	
      “Renewal Term” means a period of one year for any
      Lease that is renewed by AUC in accordance with this Agreement.

	 	 	 
	 	(v) 	
      “Royalty” means the 4% Net Smelter Returns Royalty
      payable to Nu Star in accordance with Section 2.4, and further described
      in Schedule “B”.

	 	 	 
	 	(w) 	
      “Shares” means shares of common stock of
    AUC.

	 	 	 
	 	(x) 	
      “Term” means the term of the Lease which will
      commence on the Effective Date and terminate on the later of the date
      before the first anniversary of the Effective Date (the “Initial
      Term”) or, if AUC has delivered to Nu Star a Renewal Notice, the end
      of any Renewal Term. The Initial Term and any Renewal Term, are
      collectively referred to as the “Term”.

	 	 	 
	 	(y) 	
      “Transfer Date” means the date upon which titles
      to the Mineral Claims are transferred to AUC, which, unless otherwise
      agreed upon by the parties, shall occur no later than 30 days after
      delivery of the Option Notice.

	 	 	 
	 	(z) 	
      “$ or Dollars” means US
  denomination.

4 

ARTICLE 2 
LEASE AND OPTION 

	2.1 	
      Lease

	 	 	 	 
		(a) 	
      As of the Effective Date Nu Star leases all of its right,
      title and interest in and to the Properties to AUC (the “Lease”),
      together with all appurtenances and water rights incident, if any, to the
      Mineral Claims and all improvements on the Properties for the
  Term.

	 	 	 	 
		(b) 	
      Other than the Initial Term, AUC is not obligated to
      enter into renewals of the Lease for the Properties.

	 	 	 	 
		(c) 	
      During the Term and prior to and until exercise of the
      Option, AUC, its employees, agents and independent contractors shall have
      all such rights and privileges of exclusive right and option to:

	 	 	 	 
			(i) 	
      enter the Properties;

	 	 	 	 
			(ii) 	
      have exclusive and quiet possession of the
    Properties;

	 	 	 	 
			(iii) 	
      do such prospecting, exploration, development or other
      mining work on the Properties and thereunder as AUC in its sole discretion
      may consider necessary; and

	 	 	 	 
			(iv) 	
      remove from the Properties and sell or otherwise dispose
      of uranium ore or yellowcake (U3O8), but only for
      the purposes of bulk testing and pilot plant
operations.

	2.2 	
      Renewal

	 	 	 	 	 
		(a) 	
      In the event AUC wishes to renew the Lease for one or
      more Mineral Claims after the Initial Term, and provided AUC is not in
      default, AUC will deliver to Nu Star a Renewal Notice, and the Lease will
      be renewed on the Renewal Date, provided AUC delivers to Nu Star the
      Consideration and agrees to incur the Expenditures.

	 	 	 	 	 
		(b) 	
      At its sole option, AUC may choose not to renew the Lease
      for certain Mineral Claims or blocks of Mineral Claims which comprise the
      Properties. Mineral Claims that AUC wishes not to lease shall be
      identified in the Renewal Notice and:

	 	 	 	 	 
			(i) 	
      the description of the Properties and Schedule “A” will
      be revised accordingly, and

	 	 	 	 	 
			(ii) 	
      the Renewal Consideration referred to in Section 2.3(b)
      for the Lease will be reduced by multiplying the Renewal Consideration by
      a fraction in which

	 	 	 	 	 
				A. 	
      the numerator is 449 minus the total of all Mineral
      Claims that AUC has not renewed its right to lease since the Effective
      Date, and

5 

	 	B. 	
      the denominator is 449.

	 		
      In the event AUC chooses not to renew its lease of one or
      more Mineral Claims, AUC will have no further rights or obligations with
      respect to such Mineral Claims.

	 	 	 
	 	(c) 	
      In the event AUC purchases some of the Mineral Claims
      pursuant to Section 2.4 below, but wishes to continue to lease other
      Mineral Claims, then the annual lease payments for the Mineral Claims that
      AUC wishes to lease, will be adjusted in the same manner as set out in
      Section 2.2(b).

	2.3 	
      Consideration

	 	 	 	 
		(a) 	
      In consideration of the Lease and the Option, on the
      Effective Date AUC agrees to pay to NuStar the sum of $119,550 and issue
      the number of Shares that, based upon their average trading price over a
      10 day period immediately preceding the Effective Date are valued at
      $80,000.

	 	 	 	 
		(b) 	
      In consideration of any Renewal Terms entered into by
      AUC, AUC agrees to:

	 	 	 	 
			(i) 	
      pay to Nu Star the cash payment set out in the column
      entitled “Cash Payment”, or issue to Nu Star the number of Shares that,
      based upon their average adjusted close price as quoted by Yahoo! Finance
      over a 10 day period immediately preceding the Renewal Date, equal in the
      applicable amount, as set out in the column entitled “Value of Shares of
      AUC” below, and

	 	 	 	 
			(ii) 	
      pay to the BLM the sum of $56,125 on or before a Renewal
      Date for renewal fees due for the Mineral
Claims.

	Renewal
      Term 	Cash Payment 	Value of Shares of AUC 
	1st Renewal Term
    	US$100,000 	US$100,000 
	2nd Renewal Term
    	US$125,500 	US$125,500 
	3rd Renewal Term
    	US$150,500 	US$150,500 
	4th Renewal Term and all Subsequent Renewal Terms 	An amount equivalent to the previous Lease
      Renewal Term plus $25,000 	An amount equivalent to the previous Lease
      Renewal Term plus $25,000 

The consideration paid or transferred
to Nu Star pursuant to Sections 2.3(b)(i) and 2.3(b)(ii) are hereinafter
referred to as the “Renewal Consideration”. 

	2.4 	
      Option to Purchase

	 	 	 
		(a) 	
      Nu Star hereby grants to AUC the sole and exclusive
      option to purchase Nu Star’s right, title and interest in all or some of
      the Mineral Claims (“Option”), together with all appurtenances,
      water rights, and improvements incident thereon, free and clear of all
      liens and encumbrances (save such exceptions, including overlaps of
      property and claims having priority in law to the rights of Nu Star and
      either referred to in Sections 4.2, 4.3, 8.1(c), or described in Schedule
      “A”).

6 

	 	(b) 	
      The Option may only be exercised by AUC during an Option
      Exercise Period.

	 	 	 
	 	(c) 	
      At any time after the Execution Date and provided AUC is
      not in default of any of its obligations under this Agreement, AUC may
      notify Nu Star of its intention to exercise the Option. Such notification
      will be in writing and will include a description of the Mineral Claims
      AUC wishes to purchase (the “Option Notice Date”).

	 	 	 
	 	(d) 	
      The purchase price for the Mineral Claims pursuant to the
      Option will be twice the value of the Renewal Consideration that would
      otherwise be payable or transferrable to Nu Star if AUC had leased the
      Mineral Claims in the year following the year in which AUC delivered the
      Option Notice, as adjusted pursuant to Section
2.3(b).

[For example, if AUC notified Nu Star
during the 1st Lease Renewal Term that it wished to purchase all of the Mineral
Claims, then the purchase price would be (a) $251,000 which is 2 times $125,500,
or (b) the number of common shares of AUC that, based upon their average trading
price over a 10 day period immediately preceding transfer date are valued at
$251,000, at AUC’s option. If AUC notified Nu Star during the 1st Lease Renewal
Term that it wished to purchase 250 of the Mineral Claims, then the purchase
price would be (a) $139,755.01 which is $251,000 times 250/449, or (b) the
number of common shares of AUC that, based upon their average trading price over
a 10 day period immediately preceding transfer date are valued at $139,755.01,
at AUC’s option.]

	 	(e) 	
      Subject to Section 2.4(f), if AUC sells or otherwise
      disposes of minerals mined and removed from the Properties that AUC has
      purchased pursuant to this Section 0 (the “Purchased Properties”),
      Nu Star hereby retains and reserves, and AUC hereby grants and agrees to
      pay to Nu Star, in further consideration for the sale of the Purchased
      Properties, a 4% Net Smelter Returns royalty (the “Royalty”) on all
      yellowcake (U3O8) produced from uranium ore mined or
      recovered from the Purchased Properties once Commercial Production has
      been achieved.

	 	 	 	 	 
	 	(f) 	
      At AUC’s option, for each breccia pipe of uranium
      mineralization located on one or more Mineral Claims within 1 claim block
      referred to in the description of the Purchased Properties (a
      “PIPE”), AUC may purchase Nu Star’s right to the Royalty on all the
      yellowcake (U3O8) produced from uranium ore mined or
      recovered from such Pipe, for the sum of $1,000,000.

	 	 	 	 	 
	 	(g) 	
      The Option will terminate and AUC will have no further
      interest in the Properties under the following conditions:

	 	 	 	 	 
	 		(i) 	
      on the last day of any existing Term, in the
  event

	 	 	 	 	 
	 			A. 	
      AUC has provided written notice to Nu Star that it wishes
      to terminate this Agreement and relinquish its option to purchase the
      Properties, or

	 	 	 	 	 
	 			B. 	
      AUC has failed to provide the required notice to renew
      the Lease in accordance with the time required pursuant to Section 2.2(a),
      and such failure was not otherwise excused in accordance with this
      Agreement; or

7 

	 	(ii) 	
      on such day that AUC informs Nu Star that it wishes to
      relinquish its option to purchase the
Properties.

	2.5 	
      AUC Covenants

	 	 	 
		
      During the Term, AUC covenants to use commercially
      reasonable efforts to:

	 	 	 
		(a) 	
      obtain all work permits, environmental approvals, and
      insurance required to carry out the Expenditures on the
  Properties;

	 	 	 
		(b) 	
      maintain the Mineral Claims and Nu Star’s rights with
      respect thereto in good standing;

	 	 	 
		(c) 	
      ensure that all third party consultants, equipment and
      materials suppliers, and independent contractors that AUC contracts to
      provide services and materials for or on behalf of the Properties are paid
      in full (subject to any holdbacks AUC may lawfully make);

	 	 	 
		(d) 	
      report all progress, findings, reports, technical data
      and any other matter related to the Mineral Claims to Nu Star within
      ninety (90) days after the end of the Initial Term and each Renewal Term;
      and

	 	 	 
		(e) 	
      act in accordance with good mining practices, in
      compliance with all applicable Laws and in accordance with the care and
      skill normally expected by someone conducting and managing exploration,
      development and mining activities on behalf of legal or beneficial owners
      of the Properties.

	 	 	 
	2.6 	
      Title Documents

	 	 	 
		
      Nu Star shall provide AUC with the recording information
      with respect to the deeds, easements, or other documents known to Nu Star
      which bear upon title to the Mineral Claims, and shall provide AUC with
      copies of all such documents in Nu Star’s possession or control. Nu Star
      shall, upon AUC’s request, record any such document in Nu Star’s
      possession or control which has not been recorded. Nu Star shall provide
      AUC with copies of all documents filed with the BLM or county subsequent
      to the Effective Date, provided that Nu Star shall not file any document
      that impairs Nu Star’s title to the Mineral Claims without AUC’s prior
      written consent. No later than ten (10) days prior to the Effective Date,
      Nu Star and AUC shall prepare an inventory of all title documents provided
      to AUC. If during the Term, AUC prepares and records any documents
      concerning title to the Mineral Claims, AUC shall provide Nu Star with
      copies thereof in advance of filing such documents of record, or if it is
      not possible to provide such documents in advance, then as soon thereafter
      as possible.

	 	 	 
	2.7 	
      AUC’s Right to Terminate
Agreement

	 	 	 
		
      AUC has no obligation to exercise the Option, except at
      its sole and independent discretion. AUC shall have the unrestricted right
      at any time to terminate this Agreement without liability or obligation of
      any kind except for making such payments and issuing such shares as may
      have previously accrued, and satisfying all obligations under Sections
      2.5, 4.1, and 5.1. Unless a

8 

termination results from the default of
Nu Star, all cash payments made and/or Shares issued prior to the time of
termination shall be non-refundable. 

ARTICLE 3
 SHARES 

	3.1 	
      Shares

	 	 	 
		(a) 	
      The Shares shall be subject to resale restrictions which
      are required to be imposed on the Shares issued to Nu Star hereunder,
      pursuant to applicable securities laws, including the rules and policies
      of any stock exchange or quotation service upon which AUC may be listed or
      quoted at the time and any applicable resale restrictions imposed by the
      U.S. Securities and Exchange Commission or under state securities
    laws.

	 	 	 
		(b) 	
      Prior to the issuance of the Shares to Nu Star pursuant
      to this Agreement, Nu Star shall deliver to AUC a completed and executed
      “Prospective Investor Questionnaire” (“Questionnaire”) in the form
      attached hereto as Schedule B in connection with the issuance of such
      Shares and agrees to AUC filing certain personal information about Nu Star
      with any stock exchange or quotation service upon which AUC may be listed
      at the time and applicable securities regulators as required by applicable
      securities laws and policies and the rules and policies of any such
      exchange.

ARTICLE 4 
PROTECTION OF PROPERTIES 

	4.1 	
      Property Maintenance

	 	 	 	 
		(a) 	
      During the Term, AUC shall:

	 	 	 	 
			(i) 	
      pay all taxes levied or assessed against the Mineral
      Claims; and

	 	 	 	 
			(ii) 	
      pay all applicable fees and perform all work requirements
      for the unpatented mining claims included in the Properties and file
      and/or record in the applicable office(s) all evidence of such payments or
      work as is required by Law (“Property Maintenance Costs”) prior to
      the date such obligations become due.

	 	 	 	 
		(b) 	
      AUC shall provide Nu Star evidence of payment and
      performance of the Property Maintenance Costs as incurred and paid.
      Property Maintenance Costs, excluding any Mineral Claims renewal fees
      referred to in Section 2.3(b)(ii), shall be included in the
      Expenditures.

	 	 	 	 
		(c) 	
      Upon abandonment of the Properties, or termination by AUC
      of this Agreement, AUC shall remain liable for any Property Maintenance
      Costs that are required to keep the Mineral Claims in good standing and
      which are due and payable within thirty (30) days or less following the
      date of abandonment or termination.

9 

	4.2 	
      Amendments, Relocations and
  Patents

	 	 
		
      During the Term AUC shall have the right (but not the
      obligation) acting in good faith and in a prudent manner to amend or
      relocate any or all of the unpatented mining claims included in the
      Properties, to locate placer claims on ground theretofore covered by lode
      claims and vice versa, to locate mill sites on ground theretofore covered
      by mining claims and vice versa, and to locate any fractions existing on
      the Effective Date or resulting from the location, amendment, or
      relocation of mining claims or mill sites. All such locations, amendments,
      or relocations shall be made in the name of Nu Star. All expenses
      authorized by AUC in connection with the locating, amending, or relocating
      mining claims or mill sites shall be borne by AUC and shall constitute
      Expenditures for purposes of AUC’s Work Commitment. The rights of AUC
      under this Agreement shall extend to all such locations, amended
      locations, and relocations of the mining claims and mill sites, and the
      definition of Mineral Claims and Properties shall be amended or extended
      accordingly. At the request of Nu Star, AUC shall execute and record any
      documents necessary to clarify and confirm the interests of Nu Star in the
      new, amended or relocated mining or mill site claims.

	 	 
	4.3 	
      Change in Federal Mining Law

	 	 
		
      If the United States establishes a leasing system or
      other system of tenure for lands or minerals now subject to location under
      the mining laws, and if the new system gives Nu Star an election to
      acquire rights under the new system in exchange for or in modification of
      Nu Star’s existing rights for the Mineral Claims upon prior written
      consent of Nu Star, AUC may make the election in the name or Nu Star with
      respect to any or all of the unpatented claims included in the Properties.
      Thereafter, during the term of this Agreement AUC shall pay all royalties,
      rentals, bonuses, fees, and other amounts required by the new system, but
      AUC shall be entitled to credit all such payments as
  Expenditures.

	 	 
	4.4 	
      Covenants by Nu Star

	 	 
		
      During the Term, unless AUC has previously otherwise
      consented to in writing, Nu Star shall not sell, lease, dispose or
      encumber in any way any of its interest in the Properties except to AUC in
      accordance with this Agreement.

ARTICLE 5 
WORK COMMITMENT 

	5.1 	
      Work Commitment

	 	 	 
		(a) 	
      During the Initial term and each Renewal Term thereafter,
      AUC shall make the Expenditures on or for the benefit of the Properties in
      the amounts set forth below, but in no event less than the minimal amount
      necessary to maintain and preserve each and all of the unpatented Mineral
      Claims included within the Properties under all applicable Laws (the
      “Work Commitment”). Work Commitment activities undertaken on the
      Properties shall be undertaken in a manner consistent with best industry
      practises for exploration and reclamation activities for breccia pipe
      uranium deposits.

10 

	
Lease Period 	Total amount of Expenditures required to be
      
incurred on or for the benefit of the Properties 
	September 18, 2008 through 
September 17, 2009 [Initial
      Term] 	NIL 

	September 18, 2009 through 
September 17, 2010 [1st
      Renewal Term] 	US$250,000 

	September 18, 2010 through 
September 17, 2011 [2nd
      Renewal Term] 	US$400,000 

	September 18, 2011 through 
September 17, 2012 [3rd
      Renewal Term] 	US$400,000 

	All subsequent
      lease renewal Terms 	US$400,000 

	5.2 	
      Reporting and Audits

	 	 
		
      AUC shall furnish to Nu Star within forty-five (45) days
      following the end of each Lease Term, a report itemizing and detailing all
      Expenditures incurred by or for the benefit of AUC and deemed by AUC to
      qualify as such for the purposes of this Agreement. Nu Star shall be
      conclusively deemed to have accepted AUC’s determination that such
      Expenditures satisfy the terms and conditions of this Agreement unless Nu
      Star shall have made written exception within thirty (30) days after
      receipt by Nu Star of AUC’s statement of
Expenditures.

ARTICLE 6 
OPERATIONS DURING TERM 

	6.1 	
      Operations

	 	 	 
		(a) 	
      AUC shall conduct all operations on the Properties during
      the Term (“Operations”) in a good and workmanlike manner and in
      accordance with accepted mining practice and all Laws, including, but not
      limited to, all Laws regarding reclamation of the Mineral Claims. Without
      in any manner limiting the generality of the foregoing, AUC shall post and
      provide all and any mined land reclamation performance bonds required in
      order to commence Operations upon the Properties. All decisions with
      respect to exploration and development of the Properties, including all
      decisions regarding the commencement, suspension, resumption, or
      termination of any Operations, shall be made by AUC in its sole
      discretion.

	 	 	 
		(b) 	
      AUC hereby agrees to indemnify and hold Nu Star harmless
      from and against any cost, damage, claim, penalty, fine, liability or
      expense (including reasonable attorney's fees) incurred by or claimed
      against Nu Star, directly or indirectly, (i) as a result of AUC's use or
      occupancy of or Operation on the Properties, (ii) by reason of any failure
      of AUC, or its partners, officers, agents or employees, to perform its
      obligations under this Agreement, or (iii) otherwise as a result of AUC’s
      fault or negligence.

	 	 	 
		(c) 	
      Nu Star hereby agrees to indemnify and hold AUC harmless
      from and against any cost, damage, claim, penalty, fine, liability or
      expense (including reasonable attorney's fees) incurred by or claimed
      against AUC, directly or indirectly, (i) as a result of the
  exercise

11 

of Nu Star’s rights with respect to
the Mineral Claims either before or after the Effective Date, (ii) by reason of
any failure of Nu Star, or its partners, officers, agents or employees, to
perform its obligations under this Agreement, or (iii) otherwise as a result of
Nu Star’s fault or negligence. 

	6.2 	
      No Implied
Covenants

No covenants or conditions relating to the exploration,
development, mining, or related operations on or in connection with the
Properties, or the timing thereof, shall be implied. 

	6.3 	
      Protection From Liens and
  Damages

AUC shall keep the Properties free of liens for labor
performed, materials, equipment or merchandise furnished for use in the
Properties under this Agreement. 

	6.4 	
      Inspection

	 	 	 
		(a) 	
      Nu Star, or Nu Star’s authorized representative, at its
      sole risk and expense, may enter on the Properties at any reasonable time
      for the purpose of inspection, but shall enter at Nu Star’s own risk and
      so as not to hinder unreasonably the operations of AUC.

	 	 	 
		(b) 	
      Nu Star or Nu Star’s authorized representative may, at
      any reasonable time and at its sole expense, inspect any records pertinent
      and necessary for the purpose of substantiating the compliance of AUC with
      the provisions of this Agreement.

	 	 	 
	6.5 	
      Data

	 	 	 
		(a) 	
      Prior to, or as soon as practicable following the
      Effective Date, Nu Star shall deliver to AUC all drill core, all
      geological, geophysical, and engineering data and maps, logs of drill
      holes, results of assaying and sampling, and similar data concerning the
      Properties (or copies thereof) (“Data”) which are in Nu Star’s possession
      or control. Promptly thereafter, Nu Star and AUC shall prepare an
      inventory of all Data delivered to AUC by Nu Star.

	 	 	 
		(b) 	
      Upon the expiration, surrender or other termination of
      this Agreement (except by exercise of the Option), AUC shall, within sixty
      (60) days after such termination, (i) return to Nu Star all drill core and
      original data delivered by Nu Star to AUC which are then in AUC’s
      possession or control, and (ii) make available for inspection and copying
      by Nu Star all factual geological and geophysical data and maps (not
      including interpretive data), logs of drill holes, and results of assaying
      and sampling pertaining the Mineral Claims which AUC has produced and/or
      obtained as a result of its exploration work under this Agreement and
      which are then in AUC’s possession or control. Upon Nu Star’s request made
      within sixty (60) days after termination of this Agreement (except by
      exercise of the Option), AUC shall, at Nu Star’s expense, provide Nu Star
      with the drill cores designated by Nu Star.

	 	 	 
		(c) 	
      Neither party makes any representation or warranty as to
      the accuracy or interpretation of any such Data provided to the other
      party pursuant to this Agreement, and shall not
be

12 

liable on account of any use by the
other party or any other person of any such data or information. AUC shall not
be liable for the loss or destruction of any drill cores or drill core samples.

	6.6 	
      Confidentiality

Provided that this Agreement remains in force and AUC has not
exercised the Option, all information obtained by Nu Star or Nu Star’s
authorized representatives from AUC arising out of AUC’s activities on the
Properties pursuant to this Agreement shall be kept strictly confidential by Nu
Star and shall not be released to any third person except upon the prior written
consent of AUC or as required by any applicable Laws 

	6.7 	
      Insurance

On the Effective Date, or as soon thereafter as practicable and
prior to commencing any operations, AUC shall provide at its own expense and
will keep in force during the term of this Agreement, a policy or policies of
comprehensive general liability insurance from a reputable insurance company
qualified to do business in the State of Arizona with minimum limits of not less
than $1,000,000 for injury to one person and not less than $2,000,000 for injury
to more than one person in any one accident and not less than $500,000 for
property damage. These policies shall name Nu Star as an additional insured. AUC
shall deposit with Nu Star a certificate of insurance showing the limits of
liability together with an agreement by the carrier to give Nu Star thirty (30)
days notice before cancelling or substantially modifying the policy.

ARTICLE 7 
DEFAULT, TERMINATION AND SURRENDER

	7.1 	
      Default

	 	 	 	 
		(a) 	
      If either party (the “Notifying Party”) believes
      the other party (the “Notified Party”) is in breach of this
      Agreement, it shall notify the other party and give it the opportunity, as
      set forth in this subsection, to cure such breach. If the Notified Party
      does not:

	 	 	 	 
			(i) 	
      cure such breach within thirty (30) days of the Notified
      Party’s actual receipt of said notice,

	 	 	 	 
			(ii) 	
      as to breaches that can be cured but cannot be cured
      within thirty (30) days of the Notified Party’s actual receipt of said
      notice using reasonable diligence, commence (and notify the Notifying
      Party of its commencement) to cure such breach within thirty (30) days
      after its actual receipt of notice and thereafter diligently pursue all
      steps necessary to cure the breach as expeditiously as is reasonable under
      the circumstances and thereafter cure the breach,

	 	 	 	 
			(iii) 	
      as to breaches that due to their nature cannot be cured,
      commence (and notify the Notifying Party of its commencement) within
      thirty (30) days after actual receipt of notice to diligently pursue all
      steps necessary to mitigate such breach to the extent reasonably possible
      as expeditiously as is reasonable under the

13 

	 		
      circumstances and promptly take such actions as are
      reasonably designed to prevent such breach from recurring, or

	 	 	 
	 	(iv) 	
      notify the Notifying Party within thirty (30) days of its
      actual receipt of notice from the Notifying Party that it disputes that
      there has been a breach and institute an action in a court of competent
      jurisdiction contesting the alleged breach within ten days after it so
      notifies the Notifying Party;

	 		
      and if such breach is determined to be of a material
      nature, then, subject to the other provisions of this Section, the
      Notifying Party may terminate this Lease upon thirty (30) days notice to
      the Notified Party.

	 	 	 
	 	(b) 	
      Unless otherwise expressly provided herein, termination
      of this Lease under this Section shall be without prejudice to any other
      rights or remedies to which the parties may be entitled, including the
      right to Damages.

	7.2 	
      Termination and Surrender

	 	 	 	 
		(a) 	
      This Agreement:

	 	 	 	 
			(i) 	
      shall terminate automatically upon termination of the
      Lease, unless renewed by AUC in accordance with this Agreement;

	 	 	 	 
			(ii) 	
      may be terminated by written notice of the non-defaulting
      party in the event that the other party is in default pursuant to Section
      7.1;

	 	 	 	 
			(iii) 	
      may be terminated by mutual agreement of the parties;
      and

	 	 	 	 
			(iv) 	
      shall terminate automatically on the Transfer Date in the
      event AUC exercises the Option, and then only with respect to the
      purchased Mineral Claims.

	 	 	 	 
		(b) 	
      Upon termination of this Agreement, by default or
      otherwise, all rights, liabilities, and obligations of AUC under this
      Agreement shall terminate, except as expressly provided herein. For the
      avoidance of doubt, termination of this Agreement shall not terminate any
      obligations of AUC to pay any amounts which become due under the Royalty,
      in the event AUC exercises the Option.

	 	 	 	 
		(c) 	
      In the event of any controversy, the parties may, by
      mutual agreement, continue operations under this Agreement and AUC shall
      make the payments provided for in this Agreement notwithstanding the
      existence of the controversy. Upon the resolution of the controversy, such
      payments or restitutions shall be made as required by the terms of the
      decision of the mediator or arbitrator, or otherwise.

	 	 	 	 
	7.3 	
      Removal of
Equipment

Except where termination is effected by the exercise of the
Option, for a period of six (6) months after the termination of this Agreement,
AUC shall have the right (but not the obligation) to remove from the Properties
structures, equipment, personal property, and fixtures owned by AUC or erected
or placed on 

14 

or in the Properties by AUC. AUC may keep one or more watchmen
on the Properties during the above-mentioned period. The foregoing shall not
relieve AUC from any of its obligations to remove structures, equipment,
personal property or fixtures mandated under any reclamation requirements. 

ARTICLE 8 
REPRESENTATIONS AND WARRANTIES 

	8.1 	
      Nu Star’s Representations and
    Warranties

Nu Star represents and warrants to AUC as follows. 

	 	(a) 	
      Nu Star has full power and absolute authority and
      capacity to enter into this Agreement and to carry out the transactions
      contemplated hereby except where regulatory approval is required. Nu Star
      has obtained all authorizations for the execution, delivery and
      performance of this Agreement and such execution, delivery and performance
      and the consummation of the transactions herein contemplated will not
      conflict with, or accelerate the performance required by or result in any
      breach of any covenants or agreements contained in or constitute a default
      under, or result in the creation of any encumbrance, lien or charge under
      the provisions of its organizational documents or any members’ or
      managers’ resolution, indenture, agreement or other instrument whatsoever
      to which it is a party or by which it is bound or to which it may be
      subject and will not contravene any applicable Law.

	 	 	 
	 	(b) 	
      Nu Star, or its agent, is the registered and/or
      beneficial owner of an undivided one hundred percent (100%) interest in
      and to the Mineral Claims or has full authority on behalf of the
      registered and beneficial owners to enter into this Agreement, subject
      only to the paramount rights of the United States, as to the unpatented
      mining claims.

	 	 	 
	 	(c) 	
      except as set out in Schedule “A”, Nu Star, or its agent,
      owns good and defensible title to the Mineral Claims as reflected in the
      public records maintained by (i) the recorder’s offices of Mohave County
      and Coconino County, Arizona, and (ii) the Arizona State office of the
      Bureau of Land Management. Subject to the paramount title of the United
      States, rights previously granted by the United States to third parties,
      and the rights of third parties to use the surface of the Mineral Claims
      pursuant to applicable Laws, Nu Star owns the Properties free and clear of
      any encumbrances, and each of the Mineral Claims that is part of the
      Properties has been properly located and properly maintained in full
      compliance with all applicable Laws, all to the extent necessary to have
      an unpatented mining claim that is recognized as valid under all
      applicable Laws including the following: (i) the Mineral Claims were
      properly laid out and monumented; (ii) location notices and certificates
      were properly recorded and filed with appropriate governmental agencies;
      (iii) assessment work which was performed in accordance with industry
      standards and which was reasonably sufficient to hold the Mineral Claims
      has been performed and all governmental fees have been paid in a manner
      required by Law in order to maintain the Mineral Claims through the
      current assessment year; and (iv) all affidavits of assessment work,
      evidence of payment of governmental fees, and other filings required to
      maintain the Mineral Claims in good standing through the
  current

15 

	 		
      assessment year have been properly and timely recorded or
      filed with appropriate governmental agencies.

	 	 	 
	 	(d) 	
      There are no adverse claims or challenges against or to
      the ownership of or title to the Properties or any portion thereof, nor is
      there any basis therefore.

	 	 	 
	 	(e) 	
      The Properties are properly and accurately described in
      Schedule A hereto and are in good standing under the Laws.

	 	 	 
	 	(f) 	
      The Properties are in compliance in all material respects
      with all applicable Laws.

	 	 	 
	 	(g) 	
      Except as contemplated hereby, there are no outstanding
      agreements or options to acquire or purchase the Properties or any portion
      thereof or interest therein.

	 	 	 
	 	(h) 	
      Nu Star represents that except for the Royalty, no person
      has any royalty or other interest whatsoever in production or profits from
      the Properties or any portion thereof.

	 	 	 
	 	(i) 	
      Nu Star individually represents that no surface
      activities have been conducted by Nu Star on the Properties that have
      resulted in non-reclaimed surface disturbances subject to reclamation and
      rehabilitation obligations and that such surface activities, if any, have
      been properly completed in compliance with all applicable Laws, other than
      the activities conducted under exploration permits for which reclamation
      bonding remains in place.

	 	 	 
	 	(j) 	
      There is no contract, option or any other right of
      another binding upon Nu Star to option, sell, transfer, assign, pledge,
      charge, mortgage, explore or in any other way option, dispose of or
      encumber all or part of the Properties or any portion thereof or interest
      therein other than pursuant to the provisions this Agreement.

	 	 	 
	 	(k) 	
      There are no suits, actions, or other legal,
      administrative, arbitration, mediation, or other proceedings
      (“Proceeding”) to which it is a party or by which it would be
      bound, and it knows of no basis for and has not received any threat of
      assertion of any Proceeding against it or against any third party that
      could affect Nu Star’s compliance with the terms of this Agreement. If any
      Proceeding is threatened or commenced with respect to the Properties, it
      shall promptly notify AUC.

	 	 	 
	 	(l) 	
      It is acquiring the securities solely for its own account
      for investment and not with a view to or for sale or distribution of the
      securities or any portion thereof and without any present intention of
      selling, offering to sell or otherwise disposing of or distributing the
      securities or any portion thereof in any transaction other than a
      transaction complying with the registration requirements of the 1933 Act,
      and applicable state securities or “blue sky” laws, or pursuant to an
      exemption therefrom.

	 	 	 
	 	(m) 	
      The entire legal and beneficial interest of the
      securities that it is purchasing is being purchased for, and will be held
      for its account only, and neither in whole nor in part for any other
      person or entity.

	 	 	 
	 	(n) 	
      It is not resident in British Columbia,
  Canada.

16 

	8.2 	
      Nu Star’s
Acknowledgements

Nu Star acknowledges and agrees that: 

	 	(a) 	
      It is not acquiring the Shares as a result of any form of
      general solicitation or general advertising, including advertisements,
      articles, notices or other communications published in any newspaper,
      magazine or similar media or broadcast over radio, or television, or any
      seminar or meeting whose attendees have been invited by general
      solicitation or general advertising.

	 	 	 
	 	(b) 	
      It has access to and has reviewed the public filings of
      the Company available on EDGAR at www.sec.com, and has received all
      information that it deems necessary and appropriate to enable him, her or
      it to evaluate the financial risk inherent in making an investment in the
      Shares (the “Disclosure Documents”).

	 	 	 
	 	(c) 	
      No securities commission or similar regulatory authority
      has reviewed or passed on the merits of the Shares.

	 	 	 
	 	(d) 	
      There is no government or other insurance covering the
      Shares.

	 	 	 
	 	(e) 	
      There are risks associated with the purchase of the
      Shares.

	 	 	 
	 	(f) 	
      There are restrictions on its ability to resell the
      Shares and it is its responsibility to find out what those restrictions
      are and to comply with them before selling the Shares.

	 	 	 
	 	(g) 	
      Nu Star has not received or been provided with a
      prospectus, offering memorandum or similar document and the decision to
      enter into the Agreement and to purchase the Shares has not been based
      upon any verbal or written representations as to fact or otherwise made by
      or on behalf of AUC or any other person except as set forth in the
      Disclosure Documents and Nu Star’s decision is based entirely upon
      publicly available information concerning the AUC.

	 	 	 
	 	(h) 	
      If required by applicable securities legislation, policy
      or order or by any securities commission, stock exchange or other
      regulatory authority, Nu Star will execute, deliver, file and otherwise
      assist AUC in filing, such reports, undertakings and other documents with
      respect to the issue of Nu Star’s Shares as may be required.

	 	 	 
	 	(i) 	
      The Shares are being issued to Nu Star as consideration
      for the acquisition by AUC or its wholly owned subsidiary AUC Exploration
      Utah Inc., or both of them of Properties or any interest in
  them.

	8.3 	
      Indemnity

Nu Star shall protect, defend, indemnify, and hold harmless AUC
and its directors, officers, other employees, and agents from and with respect
to any and all rights, claims, demands, and Proceedings, of any and every nature
that are threatened, asserted or instituted against a party, regardless of
whether arising from injury, death, tort, breach of contract, violation of Laws,
or otherwise, and regardless of whether a party believes such right, claim,
demand, cause of action, or Proceeding is justified 

17 

(collectively, “Claims”), and injuries, deaths, damages,
and obligations of any and every nature resulting from or that gave rise to any
Claims, including liabilities, losses, costs (including, where applicable, costs
of cleanup and required studies), penalties (civil or criminal) expenses,
judgments, fines, settlements, interest, reasonable attorney’s fees, and other
related expenses of any nature (collectively, “Damages”) resulting from a
breach of its warranties, representations, or covenants. 

	8.4 	
      AUC’s Representations and
  Warranties

AUC represents and warrants to Nu Star as follows. 

	 	(a) 	
      It is a company duly incorporated and validly subsisting
      and is in good standing under the laws of the jurisdiction of its
      incorporation.

	 	 	 
	 	(b) 	
      It has full power and absolute authority and capacity to
      enter into this Agreement and to carry out the transactions contemplated
      hereby except where regulatory approval is required.

	 	 	 
	 	(c) 	
      It has duly obtained all corporate authorizations for the
      execution, delivery and performance of this Agreement and such execution,
      delivery and performance and the consummation of the transactions herein
      contemplated will not conflict with, or accelerate the performance
      required by or result in any breach of any covenants or agreements
      contained in or constitute a default under, or result in the creation of
      any encumbrance, lien or charge under the provisions of its constituting
      documents or any shareholders' or directors' resolution, indenture,
      agreement or other instrument whatsoever to which it is a party or by
      which it is bound or to which it may be subject and will not contravene
      any applicable Law.

	8.5 	
      Application

The representations and warranties of the parties shall be true
on the Effective Date and if either party learns that any of its representations
or warranties cease to be true, they shall immediately notify the other party.

ARTICLE 9 
ASSIGNMENTS 

	9.1 	
      Transfers by AUC

	 	 	 	 
		(a) 	
      AUC shall have the right to sell, option or joint venture
      its interest in this Agreement and the Properties prior to exercise of the
      Option:

	 	 	 	 
			(i) 	
      only upon prior written approval of Nu Star, such
      approval not to be unreasonably withheld,

	 	 	 	 
			(ii) 	
      provided that such transaction shall not relieve AUC of
      any obligations and liabilities under this Agreement,
and

18 

	 	(iii) 	
      provided that each purchaser, optionee or joint venturer
      prior to the effective date of any sale, option or joint venture shall
      agree in writing to be bound by the terms and conditions of this
      Agreement, including specifically the terms to pay the
  Royalty.

	 	(b) 	
      In no event shall AUC, by reason of any assignment or
      transfer of its rights hereunder, be relieved of the liability to issue to
      Nu Star any Shares AUC is or becomes obligations to issue to Nu Star,
      except upon the written consent of Nu Star agreeing to the acceptance of a
      cash equivalent, or shares of another entity.

	9.2 	
      Transfer by Nu Star

	 	 	 
		(a) 	
      Nu Star shall not assign or transfer any rights in and to
      the Cash Payments or the Shares, except (i) with the prior written consent
      of AUC, which consent shall not be unreasonably withheld, or (ii) by
      operation of law in the event of an individual’s death, bankruptcy or a
      corporate reorganization. In the event of a permitted transfer, each legal
      transferee shall (i) provide AUC, in respect of an assignment or transfer
      of rights to receive Shares and in respect of an assignment or transfer of
      rights to receive the Cash Payment, with certified copies of all
      applicable legal documentation evidencing transfer by operation of law;
      (ii) ratify this Agreement, and, (iii) with respect to the Shares, execute
      and deliver to AUC a Questionnaire in the form set out in Schedule B prior
      to receiving any distribution of Shares. No change in ownership shall be
      binding on AUC until thirty (30) days after AUC has received copies of the
      instruments and documents required herein evidencing the change. Except as
      set forth herein, AUC shall have no obligation to recognize any claims to
      the Cash Payments or the Shares.

	 	 	 
		(b) 	
      Except as expressly agreed in writing by AUC, no change
      or division in the ownership of the Properties or the right to receive the
      Cash Payments or issuance of the Shares shall enlarge the obligations or
      diminish the rights of AUC.

	 	 	 
	9.3 	
      Affiliates

Notwithstanding Sections 9.1 and 9.2, any party may assign all
or part of its interest or obligations contemplated in this Agreement to its
Affiliate, without the express approval of the other party. In the event of a
transfer to an Affiliate, the legal transferee shall: 

	 	(i) 	
      provide AUC, in respect of an assignment or transfer of
      rights to receive Shares and in respect of an assignment or transfer of
      rights to receive the cash payment, with certified copies of all
      applicable legal documentation evidencing transfer by operation of
    law;

	 	 	 
	 	(ii) 	
      ratify this Agreement, and,

	 	 	 
	 	(iii) 	
      with respect to the Shares, execute and deliver to AUC a
      Questionnaire prior to receiving any distribution of
  Shares.

19 

No change in ownership shall be binding on AUC until thirty
(30) days after AUC has received copies of the instruments and documents
required herein evidencing the change. Except as set forth herein, AUC shall
have no obligation to recognize any claims to the Cash Payments or the Shares.

ARTICLE 10 
NOTICE 

	10.1 	
      Notices

All notices and other communications to a party shall be in
writing and shall be sufficiently given if (i) delivered in person, (ii) sent by
electronic communications, with confirmation sent by registered or certified
mail, return receipt requested, or (iii) sent by registered or certified mail,
return receipt requested. All notices shall be effective and shall be deemed
delivered (i) if by personal delivery, on the date of delivery, (ii) if by
electronic communication, on the date of receipt of the electronic
communication, and (iii) if by mail, on the date of mailing. Until a change of
address is communicated as indicated above, all notices shall be addressed as
follows: 

	 	(a) 	
      If to Nu Star:

	 	 	 
	 		
      14418 South 40th Street 
Phoenix, Arizona 85044
      
Fax: (480) 940-4736

	 	 	 
	 	(b) 	
      If to AUC:

	 	 	 
	 		600 17th Street
	 		
      Suite 2800 South 
Denver, CO 80202 
Fax: (508)
      240-1259

	 	 	 
	 		
      With a copy to:

	 	 	 
	 		
      Clark Wilson LLP

	 	 	 
	 		
      Barristers and Solicitors

	 		800 – 885 West Georgia Street
	 		
      Vancouver, BC V6C 3H1 
Fax: 604-687-6314
      
Attention: Nicole M. Byres

Any party may give notice in writing of any change of its
address. The address provided in said notice will thereafter be deemed to be the
address of the party for the giving of notice hereunder. 

20 

ARTICLE 11 
MISCELLANEOUS 

	11.1 	
      Governing Law

The interpretation of this Agreement shall be governed by and
interpreted in accordance with the laws of the Province of British Columbia and
the federal laws of Canada applicable therein. The laws of the United States of
America and the State of Arizona will apply to any matter regarding the Mineral
Claims. THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION AT LAW OR IN
EQUITY OR IN ANY OTHER PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT. 

	11.2 	
      Arbitration

Should there be a disagreement or a dispute between the parties
with respect to the interpretation of this Agreement, or for any other dispute
arising from this Agreement the same will first be referred to a mediator to
assist the parties reach a resolution. In the event the parties are unable to
reach a mediated settlement, the dispute will be settled by a single arbitrator
pursuant to the Commercial Arbitration Act (British Columbia), and the
determination of such arbitrator will be final and binding upon the parties
hereto. This paragraph 11.2 will be deemed to be a submission to arbitration in
accordance with the 

Commercial Arbitration Act. 

	11.3 	
      Entire Agreement

This Agreement embodies the entire agreement and understanding
among the parties hereto and supersedes all prior agreements and undertakings,
whether oral or written, relative to the subject matter hereof including without
limitation, the Letter of Intent entered into between the parties and dated July
5, 2008. 

	11.4 	
      Time of Essence

Time shall be of the essence of this Agreement. 

	11.5 	
      Binding

This Agreement shall ensure to the benefit of and be binding
upon the parties hereto and their respective successors, permitted assigns,
heirs, administrators and legal representatives. 

	11.6 	
      Counterparts

This Agreement may be executed in counterparts which may be
delivered by facsimile. Each executed counterpart shall be deemed to be an
original and all such counterparts when read together constitute one and the
same instrument. 

	11.7 	
      Third Party
Beneficiaries

This Agreement is exclusively for the benefit of Nu Star, its
successors and permitted assigns, with respect to the obligations of AUC under
this Agreement, and for the benefit of AUC, its successors and 

21 

permitted assigns, with respect to the obligations of Nu Star,
under this Agreement, and this Agreement shall not be deemed to confer upon or
given to any other third party any remedy, claim, liability, reimbursement or
other right 

	11.8 	
      Force Majeure

	 	 	 
		(a) 	
      Notwithstanding anything herein contained to the
      contrary, if any party is prevented from or delayed in performing any
      obligation under this Agreement, and such failure is occasioned by any
      cause beyond its reasonable control, excluding only lack of finances, then
      the time for the observance of the condition or performance of the
      obligation in question will be extended for a period equivalent to the
      total period the cause of the prevention or delay persists or remains in
      effect regardless of the length of such total period.

	 	 	 
		(b) 	
      Any party hereto claiming suspension of its obligations
      as aforesaid will promptly notify the other party to that effect and will
      take all reasonable steps to remove or remedy the cause and effect of the
      force majeure described in the said notice insofar as it is reasonably
      able so to do and as soon as possible; provided that the terms of
      settlement of any labour disturbance or dispute, strike or lockout will be
      wholly in the discretion of the party claiming suspension of its
      obligations by reason thereof, and that party will not be required to
      accede to the demands of its opponents in any such labour disturbance or
      dispute, strike, or lockout solely to remedy or remove the force majeure
      thereby constituted. The party claiming suspension of its obligations will
      promptly notify the other party when the cause of the force majeure has
      been removed.

	 	 	 
		(c) 	
      The extension of time for the observance of conditions or
      performance of obligations as a result of force majeure will not relieve
      the parties their obligations to keep the Properties in good standing
      pursuant to this Agreement.

	 	 	 
	11.9 	
      Specific
Performance

The parties acknowledge that any breach of the terms of this
Agreement by any party would give rise to irreparable harm to other parties for
which money damages would not be an adequate remedy and accordingly the parties
agree that, in addition to any other remedies permitted under this Agreement,
any party shall be entitled to enforce the terms of this Agreement by a decree
of specific performance without the necessity of proving the inadequacy of money
damages as a remedy. 

	11.10 	
      Perpetuities

The parties do not intend that there shall be any violation of
the Rule Against Perpetuities, the Rule Against Unreasonable Restraints on the
Alienation of Property, or any similar rule. If any right or option to acquire
any interest in any real properties exists in this Agreement, such right or
option must be exercised, if at all, so as to vest such interest within time
periods permitted by applicable rules. If, however, any such violation should
inadvertently occur, the parties hereby agree that an arbitrator shall reform
that provision in such a way as to approximate most closely the intent of the
parties within the limits permissible under such rules. 

22 

	11.11 	
      Survival

The obligation of AUC to pay all amounts due or that become due
to Nu Star hereunder along with the obligations of the parties under Sections
4.1(c), 6.1(b), 6.1(c), 6.5(b), 7.3, and 8.3, shall survive termination of this
Agreement for any reason. For greater certainty, unless otherwise expressly
indicated, no other provisions of this Agreement shall survive termination. 

	11.12 	
      Public Disclosure

The parties agree that neither party will make any press or
public releases of information regarding the Properties or this Agreement,
without first obtaining the approval of the other party. Notwithstanding the
above, Nu Star hereby consents to the filing by AUC of this Agreement as a
public document and the identification of Nu Star in news releases and other
continuous disclosure documents as part of AUC’s public disclosure filings under
the laws of Colorado and the United States and the policies of any stock
exchange or quotation system upon which AUC may be listed or quoted at the time.

	11.13 	
      Further Assurance

At the request of either party, the parties shall take such
reasonable actions, and execute and deliver any further instruments, agreements,
documents or other papers reasonably requested by either party to effect the
purposes of this Agreement and the transactions contemplated hereby, including
without limitation, revision of schedules consistent with the legal description
of the Properties (including any amended or relocated mining claims or
subsequently issued leases). 

	11.14 	
      Amendment and Waiver

	 	 	 
		(a) 	
      No amendment or modification to this Agreement shall be
      effective unless be in writing and signed by both parties.

	 	 	 
		(b) 	
      No waiver by a party of any breach by the other party of
      any provision of this Agreement shall be deemed a waiver of any preceding
      or succeeding breach of the same or any other provisions hereof. No such
      waiver shall be effective unless in writing and then only to the extent
      expressly set forth in writing.

	 	 	 
	11.15 	
      Section Headings, and
Construction

	 	 	 
		(a) 	
      The section headings herein are for reference only and
      have no legal significance. Defined terms include the plural or
      derivatives of such terms. Unless otherwise expressly provided herein,
      references to Sections and exhibits, schedules, or appendices refer to
      those of this Agreement, and references to subsections refer to those
      within the Section or subsection where the reference appears.

	 	 	 
		(b) 	
      Provisions pertaining to requiring a party’s consent mean
      obtaining such consent in advance and in
writing.

23 

	11.16 	
      Severability

If any provision hereof is held to be invalid or unenforceable
in whole or in part in any relevant jurisdiction, such provision, only to the
extent invalid or unenforceable, shall be severable from this Agreement, and the
other provisions of this Agreement (along with the provision at issue, to the
extent that it would be valid and enforceable, and such provision shall be
deemed to be so reformed) shall remain in full force and effect in such
jurisdiction and the remaining provisions hereof shall be liberally construed to
carry out the purpose and intent of this Agreement. The invalidity or
unenforceability, in whole or in part, of any provision of this Agreement in any
relevant jurisdiction shall not affect the validity or enforceability of such
provision in any other jurisdiction, nor shall the invalidity or
unenforceability of any provision of this Agreement with respect to any person
or entity affect the validity or enforceability of such provision with respect
to any other person or entity. 

	11.17 	
      No Partnership

Nothing herein shall be deemed to: (i) constitute either party
the partner, venturer, agent, or legal representative of the other, or (ii)
create any fiduciary relationship between the parties. The parties do not intend
to create, and this Agreement shall not be construed to create, any mining,
commercial or other partnership or joint venture. Neither party shall act for or
assume any obligation or responsibility on behalf of the other party, unless and
as otherwise expressly provided herein. 

IN WITNESS WHEREOF the parties hereto have executed this
Agreement as of the Effective Date. 

	 	NU STAR EXPLORATION, LLC 
	 	 	 
	 	 	 
	 	 	 
	 	Per: 	/s/ T.C. Howard 
	 	 	Authorized Signatory 
	 	 	 
	 	 	 
	 	 	 
	 	AMERICAN URANIUM CORPORATION 
	 	 	 
	 	 	 
	 	 	 
	 	Per: 	/s/ Robert A. Rich 
	 	 	Authorized Signatory 

SCHEDULE "A"
LEASE AND OPTION AGREEMENT 

Properties and Mineral Claims 

[Note: Preliminary due diligence indicates that there may be
problems with 7 claims. These claims are identified below with an asterisk.]

ROCK CLAIM GROUP (105) 

  	Rock Claim 	AMC 	  	  	  
	Group 	Number 	Book 	  	Page 
	Rock 81 	386740 	B7024 	P 	750 
	Rock 83 	386741 	B7024 	P 	753 
	Rock 85 	386742 	B7024 	P 	756 
	Rock 87 	386743 	B7024 	P 	759 
	Rock 89 	386744 	B7024 	P 	762 
	Rock 91 	386745 	B7024 	P 	765 
	Rock 93 	386742 	B7024 	P 	768 
	Rock 95 	386747 	B7024 	P 	771 
	Rock 97 	386748 	B7024 	P 	774 
	Rock 99 	386749 	B7024 	P 	777 
	Rock 101 	386750 	B7024 	P 	780 
	Rock 103 	386751 	B7024 	P 	783 
	Rock 105 	386752 	B7024 	P 	786 
	Rock 106 	386753 	B7024 	P 	789 
	Rock 107 	386754 	B7024 	P 	792 
	Rock 108 	386755 	B7024 	P 	795 
	Rock 109 	386756 	B7024 	P 	798 
	Rock 110 	386757 	B7024 	P 	801 
	Rock 111 	386758 	B7024 	P 	804 
	Rock 112 	386759 	B7024 	P 	807 
	Rock 113 	386760 	B7024 	P 	810 
	Rock 114 	386761 	B7024 	P 	813 
	Rock 115 	386762 	B7024 	P 	816 
	Rock 116 	386763 	B7024 	P 	819 
	Rock 117 	386764 	B7024 	P 	822 
	Rock 118 	386765 	B7024 	P 	825 
	Rock 119 	386766 	B7024 	P 	828 
	Rock 120 	386767 	B7024 	P 	831 
	Rock 121 	386768 	B7024 	P 	834 
	Rock 122 	386769 	B7024 	P 	837 
	Rock 123 	386770 	B7024 	P 	840 
	Rock 124 	386771 	B7024 	P 	843 
	Rock 125 	386772 	B7024 	P 	846 
	Rock 126 	386773 	B7024 	P 	849 
	Rock 127 	386774 	B7024 	P 	852 
	Rock 128 	386775 	B7024 	P 	855 

2 

  	Rock Claim 	AMC 	  	  	  
	Group 	Number 	Book 	  	Page 
	Rock 129 	386776 	B7024 	P 	858 
	Rock 130 	386777 	B7024 	P 	861 
	Rock 131 	386778 	B7024 	P 	864 
	Rock 132 	386779 	B7024 	P 	867 
	Rock 133 	386780 	B7024 	P 	870 
	Rock 134 	386781 	B7024 	P 	873 
	Rock 135 	386782 	B7024 	P 	876 
	Rock 136 	386783 	B7024 	P 	879 
	Rock 137 	386784 	B7024 	P 	882 
	Rock 138 	386785 	B7024 	P 	885 
	Rock 139 	386786 	B7024 	P 	888 
	Rock 140 	386787 	B7024 	P 	891 
	Rock 141 	386788 	B7024 	P 	894 
	Rock 142 	386789 	B7024 	P 	897 
	Rock 143 	386790 	B7024 	P 	900 
	Rock 144 	386791 	B7024 	P 	903 
	Rock 145 	386792 	B7024 	P 	906 
	Rock 146 	386793 	B7024 	P 	909 
	Rock 147 	386794 	B7024 	P 	912 
	Rock 148 	386795 	B7024 	P 	915 
	Rock 149 	386796 	B7024 	P 	918 
	Rock 150 	386797 	B7024 	P 	921 
	Rock 151 	386798 	B7024 	P 	924 
	Rock 152 	386799 	B7024 	P 	927 
	Rock 153 	386800 	B7024 	P 	930 
	Rock 154 	386801 	B7024 	P 	933 
	Rock 155 	386802 	B7024 	P 	936 
	Rock 156 	386803 	B7024 	P 	939 
	Rock 157 	386804 	B7024 	P 	942 
	Rock 158 	386805 	B7024 	P 	945 
	Rock 159 	386806 	B7024 	P 	948 
	Rock 160 	386807 	B7024 	P 	951 
	Rock 161 	386808 	B7024 	P 	954 
	Rock 162 	386809 	B7024 	P 	957 
	Rock 163 	386810 	B7024 	P 	960 
	Rock 164 	386811 	B7024 	P 	963 
	Rock 165 	386812 	B7024 	P 	966 
	Rock 166 	386813 	B7024 	P 	969 
	Rock 167 	386814 	B7024 	P 	972 
	Rock 168 	386815 	B7024 	P 	975 
	Rock 169 	386816 	B7024 	P 	978 
	Rock 170 	386817 	B7024 	P 	981 
	Rock 171 	386818 	B7024 	P 	984 
	Rock 172 	386819 	B7024 	P 	987 
	Rock 173 	386820 	B7024 	P 	990 
	Rock 174 	386821 	B7024 	P 	993 

3 

  	Rock Claim 	AMC 	  	  	  
	Group 	Number 	Book 	  	Page 
	Rock 175 	386822 	B7024 	P 	 996 
	Rock 176 	386823 	B7024 	P 	 999 
	Rock 177 * 	386824 	B7025 	P 	 1 
	Rock 178 	386825 	B7025 	P 	 4 
	Rock 179 	386826 	B7025 	P 	 7 
	Rock 180 	386827 	B7025 	P 	 10 
	Rock 181 	386828 	B7025 	P 	 13 
	Rock 182 	386829 	B7025 	P 	 16 
	Rock 183 	386830 	B7025 	P 	 19 
	Rock 184 	386831 	B7025 	P 	 22 
	Rock 185 	386832 	B7025 	P 	 25 
	Rock 186 	386833 	B7025 	P 	 28 
	Rock 187 	386834 	B7025 	P 	 31 
	Rock 188 	386835 	B7025 	P 	 34 
	Rock 189 	386836 	B7025 	P 	 37 
	Rock 190 	386837 	B7025 	P 	 40 
	Rock 191 	386838 	B7025 	P 	 43 
	Rock 192 	386839 	B7025 	P 	 46 
	Rock 193 	386840 	B7025 	P 	 49 
	Rock 194 	386841 	B7025 	P 	 52 
	Rock 195 	386842 	B7025 	P 	 55 
	Rock 196 	386843 	B7025 	P 	 58 
	Rock 197 	386844 	B7025 	P 	 61

2.      BIG CLAIM GROUP (169)

  	Big Claim 	  	  	  	  
	Group 	AMC Number 	Book 	  	Page 
	Big 1 	393063 	B7225 	P 	741 
	Big 2 	393064 	B7225 	P 	744 
	Big 3 	393065 	B7225 	P 	747 
	Big 4 	393066 	B7225 	P 	750 
	Big 5 	393067 	B7225 	P 	753 
	Big 6 	393068 	B7225 	P 	756 
	Big 7 	393069 	B7225 	P 	759 
	Big 8 	393070 	B7225 	P 	762 
	Big 9 	393071 	B7225 	P 	765 
	Big 10 	393072 	B7225 	P 	768 
	Big 11 	393073 	B7225 	P 	771 
	Big 12 	393074 	B7225 	P 	774 
	Big 13 	393075 	B7225 	P 	777 
	Big 14 	393076 	B7225 	P 	780 
	Big 15 	393077 	B7225 	P 	783 
	Big 16 	393078 	B7225 	P 	786 
	Big 17 	393079 	B7225 	P 	789 
	Big 18 	393080 	B7225 	P 	792 

4 

  	Big Claim 	  	  	  	  
	Group 	AMC Number 	Book 	  	Page 
	Big 19 	393081 	B7225 	P 	795 
	Big 20 	393082 	B7225 	P 	798 
	Big 21 	393083 	B7225 	P 	801 
	Big 22 	393084 	B7225 	P 	804 
	Big 23 	393085 	B7225 	P 	807 
	Big 24 	393086 	B7225 	P 	810 
	Big 25 	393087 	B7225 	P 	813 
	Big 26 	393088 	B7225 	P 	816 
	Big 27 	393089 	B7225 	P 	819 
	Big 28 	393090 	B7225 	P 	822 
	Big 29 	393091 	B7225 	P 	825 
	Big 30 	393092 	B7225 	P 	828 
	Big 31 	393093 	B7225 	P 	831 
	Big 32 	393094 	B7225 	P 	834 
	Big 38 	393100 	B7225 	P 	852 
	Big 39 	393101 	B7225 	P 	855 
	Big 40 	393102 	B7225 	P 	858 
	Big 41 	393103 	B7225 	P 	861 
	Big 42 	393104 	B7225 	P 	864 
	Big 43 	393105 	B7225 	P 	867 
	Big 44 	393106 	B7225 	P 	870 
	Big 45 	393107 	B7225 	P 	873 
	Big 46 	393108 	B7225 	P 	876 
	Big 47 	393109 	B7225 	P 	879 
	Big 48 	393110 	B7225 	P 	882 
	Big 49 	393111 	B7225 	P 	885 
	Big 50 	393112 	B7225 	P 	888 
	Big 51 	393113 	B7225 	P 	891 
	Big 52 	393114 	B7225 	P 	894 
	Big 53 	393115 	B7225 	P 	897 
	Big 54 	393116 	B7225 	P 	900 
	Big 55 	393117 	B7225 	P 	903 
	Big 56 	393118 	B7225 	P 	906 
	Big 57 	393119 	B7225 	P 	909 
	Big 58 	393120 	B7225 	P 	912 
	Big 59 	393121 	B7225 	P 	915 
	Big 60 	393122 	B7225 	P 	918 
	Big 61 	393123 	B7225 	P 	921 
	Big 62 	393124 	B7225 	P 	924 
	Big 63 	393125 	B7225 	P 	927 
	Big 64 	393126 	B7225 	P 	930 
	Big 65 	393127 	B7225 	P 	933 
	Big 66 	393128 	B7225 	P 	936 
	Big 67 	393129 	B7225 	P 	939 
	Big 68 	393130 	B7225 	P 	942 
	Big 69 	393131 	B7225 	P 	945 

5 

  	Big Claim 	  	  	  	  
	Group 	AMC Number 	Book 	  	Page 
	Big 70 	393132 	B7225 	P 	 948 
	Big 71 	393133 	B7225 	P 	 951 
	Big 72 	393134 	B7225 	P 	 954 
	Big 73 	393135 	B7225 	P 	 957 
	Big 74 	393136 	B7225 	P 	 960 
	Big 75 	393137 	B7225 	P 	 963 
	Big 76 	393138 	B7225 	P 	 966 
	Big 77 	393139 	B7225 	P 	 969 
	Big 78 	393140 	B7225 	P 	 972 
	Big 79 	393141 	B7225 	P 	 975 
	Big 80 	393142 	B7225 	P 	 978 
	Big 81 	393143 	B7225 	P 	 981 
	Big 82 	393144 	B7225 	P 	 984 
	Big 83 	393145 	B7225 	P 	 987 
	Big 84 	393146 	B7225 	P 	 990 
	Big 85 	393147 	B7225 	P 	 993 
	Big 86 	393148 	B7225 	P 	 996 
	Big 87 	393149 	B7225 	P 	 999 
	Big 88 	393150 	B7226 	P 	 1 
	Big 89 	393151 	B7226 	P 	 4 
	Big 90 	393152 	B7226 	P 	 7 
	Big 91 	393153 	B7226 	P 	 10 
	Big 92 	393154 	B7226 	P 	 13 
	Big 93 	393155 	B7226 	P 	 16 
	Big 94 	393156 	B7226 	P 	 19 
	Big 95 	393157 	B7226 	P 	 22 
	Big 96 	393158 	B7226 	P 	 25 
	Big 97 	393159 	B7226 	P 	 28 
	Big 98 	393160 	B7226 	P 	 31 
	Big 99 	393161 	B7226 	P 	 34 
	Big 100 	393162 	B7226 	P 	 37 
	Big 101 	393163 	B7226 	P 	 40 
	Big 102 	393164 	B7226 	P 	 43 
	Big 103 	393165 	B7226 	P 	 46 
	Big 104 	393166 	B7226 	P 	 49 
	Big 105 	393167 	B7226 	P 	 52 
	Big 106 	393168 	B7226 	P 	 55 
	Big 107 	393169 	B7226 	P 	 58 
	Big 108 	393170 	B7226 	P 	 61 
	Big 109 	393171 	B7226 	P 	 64 
	Big 110 	393172 	B7226 	P 	 67 
	Big 111 	393173 	B7226 	P 	 70 
	Big 112 	393174 	B7226 	P 	 73 
	Big 113 	393175 	B7226 	P 	 76 
	Big 114 	393176 	B7226 	P 	 79 
	Big 115 	393177 	B7226 	P 	 82 

6 

  	Big Claim 	  	  	  	  
	Group 	AMC Number 	Book 	  	Page 
	Big 116 	393178 	B7226 	P 	 85 
	Big 117 	393179 	B7226 	P 	 88 
	Big 118 	393180 	B7226 	P 	 91 
	Big 119 	393181 	B7226 	P 	 94 
	Big 120 	393182 	B7226 	P 	 97 
	Big 121 	393183 	B7226 	P 	 100 
	Big 122 	393184 	B7226 	P 	 103 
	Big 123 	393185 	B7226 	P 	 106 
	Big 124 	393186 	B7226 	P 	 109 
	Big 125 	393187 	B7226 	P 	 112 
	Big 126 	393188 	B7226 	P 	 115 
	Big 127 	393189 	B7226 	P 	 118 
	Big 128 	393190 	B7226 	P 	 121 
	Big 129 	393191 	B7226 	P 	 124 
	Big 130 	393192 	B7226 	P 	 127 
	Big 131 	393193 	B7226 	P 	 130 
	Big 132 	393194 	B7226 	P 	 133 
	Big 133 	393195 	B7226 	P 	 136 
	Big 134 	393196 	B7226 	P 	 139 
	Big 135 	393197 	B7226 	P 	 142 
	Big 136 	393198 	B7226 	P 	 145 
	Big 137 	393199 	B7226 	P 	 148 
	Big 138 	393200 	B7226 	P 	 151 
	Big 139 	393201 	B7226 	P 	 154 
	Big 140 	393202 	B7226 	P 	 157 
	Big 141 	393203 	B7226 	P 	 160 
	Big 142 	393204 	B7226 	P 	 163 
	Big 143 	393205 	B7226 	P 	 166 
	Big 144 	393206 	B7226 	P 	 169 
	Big 145 	393207 	B7226 	P 	 172 
	Big 146 	393208 	B7226 	P 	 175 
	Big 147 	393209 	B7226 	P 	 178 
	Big 148 	393210 	B7226 	P 	 181 
	Big 149 	393211 	B7226 	P 	 184 
	Big 150 	393212 	B7226 	P 	 187 
	Big 151 	393213 	B7226 	P 	 190 
	Big 152 	393214 	B7226 	P 	 193 
	Big 153 	393215 	B7226 	P 	 196 
	Big 154 	393216 	B7226 	P 	 199 
	Big 155 	393217 	B7226 	P 	 202 
	Big 156 	393218 	B7226 	P 	 205 
	Big 157 	393219 	B7226 	P 	 208 
	Big 158 	393220 	B7226 	P 	 211 
	Big 159 	393221 	B7226 	P 	 214 
	Big 160 	393222 	B7226 	P 	 217 
	Big 161 	393223 	B7226 	P 	 220 

7 

  	Big Claim 	  	  	  	  
	Group 	AMC Number 	Book 	  	Page 
	Big 162 	393224 	B7226 	P 	223 
	Big 163 	393225 	B7226 	P 	226 
	Big 164 	393226 	B7226 	P 	229 
	Big 165 	393227 	B7226 	P 	232 
	Big 166 	393228 	B7226 	P 	235 
	Big 167 	393229 	B7226 	P 	238 
	Big 168 	393230 	B7226 	P 	241 
	Big 169 	393231 	B7226 	P 	244 
	Big 170 	393232 	B7226 	P 	247 
	Big 171 	393233 	B7226 	P 	250 
	Big 172 	393234 	B7226 	P 	253 
	Big 173 	393235 	B7226 	P 	256 
	Big 174 	393236 	B7226 	P 	259

3.      CANDY CLAIM GROUP (124)

  	Candy 	  	  	  	  
	Claim Group 	AMC Number 	Book 	  	Page 
	Candy 	1 	393237 	B7226 	P 	262 
	Candy 	2 	393238 	B7226 	P 	265 
	Candy 	3 	393239 	B7226 	P 	268 
	Candy 	4 	393240 	B7226 	P 	271 
	Candy 	5 	393241 	B7226 	P 	274 
	Candy 	6 	393242 	B7226 	P 	277 
	Candy 	7 	393243 	B7226 	P 	280 
	Candy 	8 	393244 	B7226 	P 	283 
	Candy 	9 	393245 	B7226 	P 	286 
	Candy 	10 	393246 	B7226 	P 	289 
	Candy 	11 	393247 	B7226 	P 	292 
	Candy 	12 	393248 	B7226 	P 	295 
	Candy 	13 	393249 	B7226 	P 	298 
	Candy 	14 	393250 	B7226 	P 	301 
	Candy 	15 	393251 	B7226 	P 	304 
	Candy 	16 	393252 	B7226 	P 	307 
	Candy 	17 	393253 	B7226 	P 	310 
	Candy 	18 	393254 	B7226 	P 	313 
	Candy 	19 	393255 	B7226 	P 	316 
	Candy 	20 	393256 	B7226 	P 	319 
	Candy 	21 	393257 	B7226 	P 	322 
	Candy 	22 	393258 	B7226 	P 	325 
	Candy 	23 	393259 	B7226 	P 	328 
	Candy 	24 	393260 	B7226 	P 	331 
	Candy 	25 	393261 	B7226 	P 	334 
	Candy 	26 	393262 	B7226 	P 	337 
	Candy 	27 	393263 	B7226 	P 	340 
	Candy 	28 	393264 	B7226 	P 	343 

8 

  	Candy 	  	  	  	  
	Claim Group 	AMC Number 	Book 	  	Page 
	Candy 	29 	393265 	B7226 	P 	346 
	Candy 	30 	393266 	B7226 	P 	349 
	Candy 	31 	393267 	B7226 	P 	352 
	Candy 	32 * 	393268 	B7226 	P 	355 
	Candy 	33 	393269 	B7226 	P 	358 
	Candy 	34 * 	393270 	B7226 	P 	361 
	Candy 	35 * 	393271 	B7226 	P 	364 
	Candy 	36 * 	393272 	B7226 	P 	367 
	Candy 	37 	393273 	B7226 	P 	370 
	Candy 	38 	393274 	B7226 	P 	373 
	Candy 	39 	393275 	B7226 	P 	376 
	Candy 	40 	393276 	B7226 	P 	379 
	Candy 	41 	393277 	B7226 	P 	382 
	Candy 	42 	393278 	B7226 	P 	385 
	Candy 	43 	393279 	B7226 	P 	388 
	Candy 	44 	393280 	B7226 	P 	391 
	Candy 	45 	393281 	B7226 	P 	394 
	Candy 	46 	393282 	B7226 	P 	397 
	Candy 	47 	393283 	B7226 	P 	400 
	Candy 	48 	393284 	B7226 	P 	403 
	Candy 	49 	393285 	B7226 	P 	406 
	Candy 	50 	393286 	B7226 	P 	409 
	Candy 	51 	393287 	B7226 	P 	412 
	Candy 	52 	393288 	B7226 	P 	415 
	Candy 	53 	393289 	B7226 	P 	418 
	Candy 	54 	393290 	B7226 	P 	421 
	Candy 	55 	393291 	B7226 	P 	424 
	Candy 	56 	393292 	B7226 	P 	427 
	Candy 	57 	393293 	B7226 	P 	430 
	Candy 	58 	393294 	B7226 	P 	433 
	Candy 	59 	393295 	B7226 	P 	436 
	Candy 	60 	393296 	B7226 	P 	439 
	Candy 	61 	393297 	B7226 	P 	442 
	Candy 	62 	393298 	B7226 	P 	445 
	Candy 	63 	393299 	B7226 	P 	448 
	Candy 	64 	393300 	B7226 	P 	451 
	Candy 	65 	393301 	B7226 	P 	454 
	Candy 	66 	393302 	B7226 	P 	457 
	Candy 	67 	393303 	B7226 	P 	460 
	Candy 	68 	393304 	B7226 	P 	463 
	Candy 	69 	393305 	B7226 	P 	466 
	Candy 	70 	393306 	B7226 	P 	469 
	Candy 	71 	393307 	B7226 	P 	472 
	Candy 	72 	393308 	B7226 	P 	475 
	Candy 	73 	393309 	B7226 	P 	478 
	Candy 	74 	393310 	B7226 	P 	481 

9 

  	Candy 	  	  	  	  
	Claim Group 	AMC Number 	Book 	  	Page 
	Candy 	75 	393311 	B7226 	P 	484 
	Candy 	76 	393312 	B7226 	P 	487 
	Candy 	77 	393313 	B7226 	P 	490 
	Candy 	78 	393314 	B7226 	P 	493 
	Candy 	79 	393315 	B7226 	P 	496 
	Candy 	80 	393316 	B7226 	P 	499 
	Candy 	81 	393317 	B7226 	P 	502 
	Candy 	82 	393318 	B7226 	P 	505 
	Candy 	83 	393319 	B7226 	P 	508 
	Candy 	84 	393320 	B7226 	P 	511 
	Candy 	85 	393321 	B7226 	P 	514 
	Candy 	86 	393322 	B7226 	P 	517 
	Candy 	87 	393323 	B7226 	P 	520 
	Candy 	88 	393324 	B7226 	P 	523 
	Candy 	89 	393325 	B7226 	P 	526 
	Candy 	90 	393326 	B7226 	P 	529 
	Candy 	91 	393327 	B7226 	P 	532 
	Candy 	92 	393328 	B7226 	P 	535 
	Candy 	93 	393329 	B7226 	P 	538 
	Candy 	94 	393330 	B7226 	P 	541 
	Candy 	95 	393331 	B7226 	P 	544 
	Candy 	96 	393332 	B7226 	P 	547 
	Candy 	97 	393333 	B7226 	P 	550 
	Candy 	98 	393334 	B7226 	P 	553 
	Candy 	99 	393335 	B7226 	P 	556 
	Candy 	100 	393336 	B7226 	P 	559 
	Candy 	101 	393337 	B7226 	P 	562 
	Candy 	102 	393338 	B7226 	P 	565 
	Candy 	103 	393339 	B7226 	P 	568 
	Candy 	104 	393340 	B7226 	P 	571 
	Candy 	105 	393341 	B7226 	P 	574 
	Candy 	106 	393342 	B7226 	P 	577 
	Candy 	107 	393343 	B7226 	P 	580 
	Candy 	108 	393344 	B7226 	P 	583 
	Candy 	109 	393345 	B7226 	P 	586 
	Candy 	110 	393346 	B7226 	P 	589 
	Candy 	111 	393347 	B7226 	P 	592 
	Candy 	112 	393348 	B7226 	P 	595 
	Candy 	113 	393349 	B7226 	P 	598 
	Candy 	114 	393350 	B7226 	P 	601 
	Candy 	115 	393351 	B7226 	P 	604 
	Candy 	116 	393352 	B7226 	P 	607 
	Candy 	117 	393353 	B7226 	P 	610 
	Candy 	118 	393354 	B7226 	P 	613 
	Candy 	119 	393355 	B7226 	P 	616 
	Candy 	120 	393356 	B7226 	P 	619 

10 

  	Candy 	  	  	  	  
	Claim Group 	AMC Number 	Book 	  	Page 
	Candy 	121 	393357 	B7226 	P 	622 
	Candy 	122 	393358 	B7226 	P 	625 
	Candy 	123 	393359 	B7226 	P 	628 
	Candy 	124 	393360 	B7226 	P 	631 

4.      RUSH CLAIM GROUP (39)

  	Rush Claim 	  	  	  	  
	Group 	AMC Number 	Book 	  	Page 
	Rush 	1 	372463 	B6344 	P 	857 
	Rush 	2 	372464 	B6344 	P 	860 
	Rush 	3 	372465 	B6344 	P 	863 
	Rush 	4 	372466 	B6344 	P 	866 
	Rush 	5 	372467 	B6344 	P 	869 
	Rush 	6 	372468 	B6344 	P 	872 
	Rush 	7 	372469 	B6344 	P 	875 
	Rush 	8 	372470 	B6344 	P 	878 
	Rush 	9 	372471 	B6344 	P 	881 
	Rush 	10 	372472 	B6344 	P 	884 
	Rush 	11 	372473 	B6344 	P 	887 
	Rush 	12 	372474 	B6344 	P 	890 
	Rush 	13 	372475 	B6344 	P 	893 
	Rush 	14 	372476 	B6344 	P 	896 
	Rush 	15 	372477 	B6344 	P 	899 
	Rush 	16 	372478 	B6344 	P 	902 
	Rush 	17 	372479 	B6344 	P 	905 
	Rush 	18 	372480 	B6344 	P 	908 
	Rush 	19 	372481 	B6344 	P 	911 
	Rush 	20 * 	372482 	B6344 	P 	914 
	Rush 	21 * 	372483 	B6344 	P 	917 
	Rush 	22 	372484 	B6344 	P 	920 
	Rush 	23 	372485 	B6344 	P 	923 
	Rush 	24 	372486 	B6344 	P 	926 
	Rush 	25 	372487 	B6344 	P 	929 
	Rush 	26 	372488 	B6344 	P 	932 
	Rush 	27 	372489 	B6344 	P 	935 
	Rush 	28 	372490 	B6344 	P 	938 
	Rush 	29 	372491 	B6344 	P 	941 
	Rush 	30 	372492 	B6344 	P 	944 
	Rush 	31 	372493 	B6344 	P 	947 
	Rush 	32 	372494 	B6344 	P 	950 
	Rush 	33 	372495 	B6344 	P 	953 
	Rush 	34 	372496 	B6344 	P 	956 
	Rush 	35 	372497 	B6344 	P 	959 
	Rush 	36 	372498 	B6344 	P 	962 
	Rush 	37 	372499 	B6344 	P 	965

11 

  	Rush Claim 	  	  	 
	Group 	AMC Number 	Book 	Page 
	Rush      
      40 	372500 	B6344 	P      968 
	Rush       41 	372501 	B6344 	P      971
  

5.      WIT CLAIMS (12) FILED IN
COCONOCO COUNTY, ARIZONA 

  	  	  	AMC Number 	File Number 
	Wit 	1 	383057 	3432324 
	Wit 	2 	383058 	3432325 
	Wit 	3 	383059 	3432326 
	Wit 	4 	383060 	3432327 
	Wit 	5 	383061 	3432328 
	Wit 	6 	383062 	3432329 
	Wit 	7 	383063 	3432330 
	Wit 	8 	383064 	3432331 
	Wit 	9 	383065 	3432332 
	Wit 	10 	383066 	3432333 
	Wit 	11 	383067 	3432334 
	Wit 	12 	383068 	3432335 

*Mineral claims marked with an asterisk may have material
defects which affect the ability of Nu Star to lease them and/or, provide an
option to AUC. If within 45 days after the Effective Date, Nu Star is not able
to cure the defect to AUC’s satisfaction, then the consideration referred to in
Section 2.3(a) and the Renewal Consideration referred to in Section 2.3(b) will
be reduced in proportion to the number of claims dropped. 

SCHEDULE “B” 
LEASE AND OPTION AGREEMENT 

NET SMELTER RETURNS ROYALTY 

	1. 	
      OBLIGATION

	 	 	 	 
		(a) 	
      If Nu Star becomes entitled to a royalty pursuant to
      Section 2.4(e) of the Agreement, AUC shall calculate, as at the end of
      each quarter within each fiscal year used by AUC (“Fiscal Year”)
      subsequent to the date Commercial Production begins.

	 	 	 	 
		(b) 	
      AUC shall within 45 days of the end of each quarter of
      each Fiscal Year, as and when any Net Smelter Returns are available for
      distribution, severally pay or cause to be paid to each Royalty Party 4%
      of the Net Smelter Returns to which Nu Star is entitled under Section
      2.4(e) of the Agreement.

	 	 	 	 
		(c) 	
      Nothing contained in the Agreement or this Schedule “B”
      shall be construed as conferring on Nu Star any right or interest in any
      of the Properties that AUC has purchased pursuant to this Agreement
      (“Purchased Properties”) except the right to receive royalty payments from
      AUC as and when due.

	 	 	 	 
		(d) 	
      AUC agrees that on the request of Nu Star they will
      execute and deliver such documents as may be necessary to permit that
      Royalty Party to record its interest against the Purchased
    Properties.

	 	 	 	 
	2. 	
      NET SMELTER RETURNS

	 	 	 	 
		(a) 	
      "Net Smelter Returns" means the net amount of
      money received by a Participant for its own account from the sale of
      minerals or concentrates extracted and derived from the ore mined from the
      Purchased Properties (“Mineral Production”) to a mill, smelter or
      other ore buyer after deduction of all Permissible Deductions.

	 	 	 	 
		(b) 	
      “Permissible Deductions” means the aggregate (to
      the extent not previously deducted or accrued) that is paid or accrued in
      each monthly period relating to the Mineral Production as
  follows:

	 	 	 	 
			(i) 	
      weighing, sampling, assaying and representation costs,
      and metal losses;

	 	 	 	 
			(ii) 	
      processor, refinery or smelter charges;

	 	 	 	 
			(iii) 	
      ore treatment charges, penalties, and any and all charges
      made by the purchaser of the Mineral Production;

	 	 	 	 
			(iv) 	
      any and all shipping, handling, forwarding and insurance
      costs which may be incurred in connection with the transportation of the
      Mineral Production;

	 	(v) 	
      all umpire charges which the purchaser may be required to
      pay; and

	 	 	 
	 	(vi) 	
      government imposed production, royalties and ad
      valorem taxes (excluding taxes on income).

		
      Where a cost or expense otherwise constituting a
      Permissible Deduction is incurred in a transaction with a party not
      dealing at arm’s length (as that term is defined in the Income Tax Act
      (Canada), such costs or expenses may be deducted, but only as to the
      lesser of the actual cost incurred or the fair market value thereof
      considering the time of such transaction and under all the circumstances
      thereof.

	 	 	 	 
	3. 	
      PAYMENTS AND AUDITED STATEMENTS

	 	 	 	 
		(a) 	
      Payment of Net Smelter Returns by AUC to Nu Star shall be
      made quarterly within 45 days after the end of each quarter of each Fiscal
      Year, and shall be accompanied with unaudited financial statements
      pertaining to the operations carried out on the Purchased
    Properties.

	 	 	 	 
		(b) 	
      Within 90 days after the end of the Fiscal Year, the
      records relating to the calculation of the Net Smelter Returns royalty
      shall be audited by AUC’s external independent auditor and any resulting
      adjustments in the payment of Net Smelter Returns payable to Nu Star shall
      be made as follows:

	 	 	 	 
			(i) 	
      if amounts are owed to Nu Star, the payment will be made
      forthwith together with interest at the Prime Rate plus 2%, and

	 	 	 	 
			(ii) 	
      if Nu Star has been over paid, such overpayment will be
      deducted from subsequent Net Smelter Returns royalty payments to Nu
      Star.

	 	 	 	 
		(c) 	
      The information contained in the audited statements
      referred to in (b) above, will include detailed information relating
      to:

	 	 	 	 
			(i) 	
      the quantity of Mineral Production and sale of Mineral
      Production for that Fiscal Year;

	 	 	 	 
			(ii) 	
      the Permissible Deductions, including Permissible
      Deductions carried over from previous years if in excess of the gross
      sales price(s) obtained for the Mineral Production in such previous
      years;

	 	 	 	 
			(iii) 	
      gross sales price(s) obtained for the Mineral Production;
      and

	 	 	 	 
			(iv) 	
      the calculation of the royalty payable to Nu
  Star.

	 	 	 	 
		(d) 	
      Each annual audited statements shall be final and not
      subject to adjustment unless Nu Star delivers to AUC written exceptions in
      reasonable detail within 90 days after Nu Star receives such statements.
      Nu Star, or its representative duly authorized in writing, at its expense,
      shall have the right to audit the books and records of AUC related to Net
      Smelter Returns to determine the accuracy of the audited statements, but
      shall not have access to any other books and records of AUC. The audit
      shall be conducted by a chartered or certified public
  accountant.

	 		
      Nu Star’s auditor shall have the right to conditional
      access to its books and records of AUC on execution of a written agreement
      by the auditor that all information will be held in confidence and used
      solely for purposes of audit and resolution of any disputes related to the
      report. A copy of Nu Star’s report shall be delivered to AUC upon
      completion, and any discrepancy between the amount actually paid by AUC
      and the amount which should have been paid according to Nu Star's report
      shall be paid forthwith, one party to the other. In the event that the
      said discrepancy is to the detriment of Nu Star and exceeds 5% of the
      amount actually paid by AUC, then AUC shall pay the entire cost of the
      audit.

	 	 	 
	 	(e) 	
      Any dispute arising out of or related to any report,
      payment, calculation or audit shall be resolved solely by arbitration
      under the Commercial Arbitration Act (British Columbia) in
      accordance with Section 11.2.

	 	 	 
	 	(f) 	
      No error in accounting or in interpretation of the
      Agreement shall be the basis for a claim of breach of fiduciary duty, or
      the like, or give rise to a claim for exemplary or punitive damages or for
      termination or rescission of the Agreement or the estate and rights
      acquired and held by AUC under the terms of the
  Agreement.

SCHEDULE “C” 
LEASE AND OPTION AGREEMENT 

NONE OF THE SECURITIES TO WHICH THIS PRIVATE LEASE AND
OPTION AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY U.S. STATE SECURITIES
LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED
STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. 

PROSPECTIVE INVESTOR QUESTIONNAIRE 

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Agreement. 

This Questionnaire is for use by each individual or entity who
is a U.S. person (as that term is defined Regulation S of the United States
Securities Act of 1933 (the “Securities Act”)) and has indicated an interest in
acquiring Shares of AUC. The purpose of this Questionnaire is to assure AUC that
each of the Undersigned will meet the standards imposed by the Securities Act
and the appropriate exemptions of applicable state securities laws. AUC will
rely on the information contained in this Questionnaire for the purposes of such
determination. The Shares will not be registered under the Securities Act in
reliance upon the exemption from registration afforded by Section 3(b) and/or
Section 4(2) and Regulation D of the Securities Act. This Questionnaire is not
an offer of the Shares or any other securities of AUC in any state other than
those specifically authorized by AUC. 

All information contained in this Questionnaire will be treated
as confidential. However, by signing and returning this Questionnaire, each of
the Undersigned agrees that, if necessary, this Questionnaire may be presented
to such parties as AUC deems appropriate to establish the availability, under
the Securities Act or applicable state securities law, of exemption from
registration in connection with the sale of the Shares hereunder. 

Please Note: It is important that the Prospective Investor
  complete both sections of the questionnaire.

ACCREDITED INVESTOR QUESTIONNAIRE 
(U.S.
Securities Laws) 

The Undersigned covenants, represents and warrants to AUC that
it satisfies one or more of the categories of “Accredited Investors”, as defined
by Regulation D promulgated under the Securities Act, as indicated below:
(Please initial in the space beside each category, if any, of an “Accredited
Investor” which the Undersigned satisfies.) 

	______
	Category 1 	
      An organization described in Section 501(c)(3) of the
      United States Internal Revenue Code, a corporation, a Massachusetts or
      similar business trust or partnership, not formed for the specific purpose
      of acquiring the Shares, with total assets in excess of US $5,000,000.
    

	 	  	
       

	______	Category 2 	
      A natural person whose individual net worth, or joint net
      worth with that person’s spouse, on the date of purchase exceeds US
      $1,000,000. 

	 	  	
       

	______
	Category 3 	
      A natural person who had an individual income in excess
      of US $200,000 in each of the two most recent years or joint income with
      that person’s spouse in excess of US $300,000 in each of those years and
      has a reasonable expectation of reaching the same income level in the
      current year. 

	 	  	
       

	______
	Category 4 	
      A “bank” as defined under Section (3)(a)(2) of the
      Securities Act or savings and loan association or other institution as
      defined in Section 3(a)(5)(A) of the Securities Act acting in its
      individual or fiduciary capacity; a broker dealer registered pursuant to
      Section 15 of the Securities Exchange Act of 1934 (United States);
      an insurance company as defined in Section 2(13) of the Securities Act; an
      investment company registered under the Investment Company Act of 1940
      (United States) or a business development company as defined in
      Section 2(a)(48) of such Act; a Small Business Investment Company licensed
      by the U.S. Small Business Administration under Section 301(c) or (d) of
      the Small Business Investment Act of 1958 (United States); a
      plan with total assets in excess of $5,000,000 established and maintained
      by a state, a political subdivision thereof, or an agency or
      instrumentality of a state or a political subdivision thereof, for the
      benefit of its employees; an employee benefit plan within the meaning of
      the Employee Retirement Income Security Act of 1974 (United
      States) whose investment decisions are made by a plan fiduciary, as
      defined in Section 3(21) of such Act, which is either a bank, savings and
      loan association, insurance company or registered investment adviser, or
      if the employee benefit plan has total assets in excess of $5,000,000, or,
      if a self-directed plan, whose investment decisions are made solely by
      persons that are accredited investors. 

	 	  	
       

	______	Category 5 	
      A private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940 (United
      States). 

	 	  	
       

	______	Category 6 	
      A director or executive officer of AUC. 

	 	  	
       

	______	Category 7 	
      A trust with total assets in excess of $5,000,000, not
      formed for the specific purpose of acquiring the Shares, whose purchase is
      directed by a sophisticated person as described in Rule 506(b)(2)(ii)
      under the Securities Act. 

	______	
      Category 8 
	
      An entity in which all of the equity owners satisfy the
      requirements of one or more of the foregoing categories.

Note that the Undersigned, if claiming to satisfy one of the
above categories of Accredited Investor, may be required to supply AUC with a
balance sheet, prior years’ federal income tax returns or other appropriate
documentation to verify and substantiate the Undersigned’s status as an
Accredited Investor. 

If the Undersigned is an entity which initialled Category 8 in
reliance upon the Accredited Investor categories above, please state the name,
address, total personal income from all sources for the previous calendar year,
and the net worth (exclusive of home, home furnishings and personal automobiles)
for each equity owner of said entity:

SOPHISTICATED INVESTOR QUESTIONNAIRE 

(Please initial in the space provide to the left of the
statement below if the Undersigned satisfies the description therein.) 

	1. 	
      _______ The Undersigned covenants, represents and
      warrants to AUC that it is a “Sophisticated Investor,” as defined by
      Regulation D promulgated under the Securities Act, as the Undersigned
      alone, or with the assistance of professional advisors, has such knowledge
      and experience in financial and business matters that the undersigned is
      capable of evaluating the merits and risks of Undersigned's purchase of
      the securities;

The Undersigned hereby certifies that the information contained
in this Questionnaire is complete and accurate and the Undersigned will notify
AUC promptly of any change in any such information. If this Questionnaire is
being completed on behalf of a corporation, partnership, trust or estate, the
person executing on behalf of the Undersigned represents that it has the
authority to execute and deliver this Questionnaire on behalf of such entity.

IN WITNESS WHEREOF, the Undersigned has executed this
Questionnaire as of [insert date] _____________________. 

	If a Corporation, Partnership or Other 	 	If an Individual: 
	Entity: 	 	  
	 	 	 
	 	 	 
	Signature and Title of Authorized 	 	Signature* 
	Signatory* 	 	  
	 	 	 
	 	 	 
	Print Name of Entity* 	 	Print Name* 
	 	 	 
	 	 	 
	Type of Entity* 	 	Social Security Number or other 
	  	 	Government I.D. Number* 
	 	 	 
	 	 	 
	Tax or other
      Government I.D. Number* 	 	E-mail
      address* 
	 	 	 
	 	 	 
	E-mail address*
	 	Telephone Number and Fax Number* 
	 	 	 
	 	 	 
	Telephone Number and Fax Number* 	 	  
	*Field is mandatory.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]