Document:

form8k032008ex10-3.htm

    
      

      

    

     

    PROPERTY
OPTION AGREEMENT

    

    THIS
AGREEMENT made and entered into as of the 15th day of
March, 2008

    

    BETWEEN:                                MinQuest
Inc., a company having a mailing address at 4235 Christy Way, Reno, Nevada,
89519, U.S.A.

    

    (herein called the
“Optionor”)

    

    OF
THE FIRST PART

    

    

    AND:                      Patriot
Gold Corp., a company having an office at #501-1775 Bellevue Ave., West
Vancouver, B.C., Canada V7V 1A9

    

    (herein called the
“Optionee”)

    

    OF
THE SECOND PART

    

    WHERAS
the Optionor has represented that it is the sole recorded and beneficial owner
in and to the property called the WE (a.k.a Weepah Hills) Project (the
“Property) described in Schedule “A” attached hereto;

    

    AND
WHEREAS the Optionor, subject to the Net Smelter Royalty reserved to the
Optionor, now wishes to grant to the Optionee the exclusive right and option to
acquire an undivided 100% right, title and interest in and to the Property on
the terms and conditions hereinafter set forth;

    

    NOW
THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the premises, the
mutual covenants herein set forth and the sum of One Dollar ($1.00) of lawful
money of U.S. currency now paid by the Optionee to the Optionor (the receipt
whereof is hereby acknowledged), the Parties hereto do hereby mutually covenant
and agree as follows:

    

    1.           Definitions

    

     The
following words, phrases and expressions shall have the following
meanings:

    

    (a)           “After
Acquired Properties” means any and all mineral interests staked, located,
granted or acquired by or on behalf of either of the parties hereto during the
currency of this Agreement which are located, in the whole or in part, within
one mile of the existing perimeter of the Property;

    

    (b)           “Exchange”
means OTCBB Venture Exchange;

    

    (c)           “Expenditures”
includes all direct or indirect expenses [net of government

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    incentives
and not including payments to the Optionor pursuant to section 4, paragraphs
(a), (b)(ii), (c)(ii), (d)(ii), (e)(ii), (f)(ii), (g)(ii), (h)(ii), (i)(ii),
(j)(ii), and (k)(ii) hereof ] of or incidental to Mining Operations. The
certificate of the Controller or other financial officer of the Optionee,
together with a statement of Expenditures in reasonable detail shall be prima
facie evidence of such Expenditures; the parties hereto agree that Property
payments and Property expenditures are separate payments as outlined in
paragraph 4;

    

    (d)           “Facilities”
means all mines and plants, including without limitation, all pits, shafts,
adits, haulage ways, raises and other underground workings, and all buildings,
plants, facilities and other structures, fixtures and improvements, and all
other property, whether fixed or moveable, as the same may exist at any time in,
or on the Property and relating to the  operator of the Property as a
mine or outside the Property if for the exclusive benefit of the Property
only;

    

    (e)           “Force
Majeure” means an event beyond the reasonable control of the Opionee that
prevents or delays it from conducting the activities contemplated by this
Agreement other than the making of payments referred to in Section 4 herein.
Such events shall include but not be limited to acts of God, war, insurrection,
action of governmental agencies reflecting an instability in government
procedures, or delay in permitting unacceptable to both Optionor and
Optionee;

    

    (f)           “Mineral
Products” means the commercial end products derived from operating the Property
as a mine:

    

    (g)           “Mining
Operations” includes:

    

    (i)           every
kind of work done on or with respect to the Property by or under the direction
of the Optionee during the Option Period or pursuant to an approved Work
Program; and

    

    (ii)           without
limiting the generality of the foregoing, including all work capable of
receiving assessment credits pursuant to the Mines and Minerals act of Nevada
and the work of assessment, geophysical, geochemical and geological surveys,
studies and mapping, investigating, drilling, designing, examining equipping,
improving, surveying, shaft sinking, raising, cross-cutting and drifting,
searching for, digging, trucking, sampling, working and procuring minerals, ores
and metals, in surveying and bringing any mineral claims to lease or patent, in
doing all other work usually considered to be prospecting, exploration,
development, a feasibility study, mining work, milling concentration,
beneficiation or ores and concentrates, as well as the separation and extraction
of

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Mineral
Products and all reclamation, restoration and permitting
activities;

    

    (h)           “Net
Smelter Royalty” means that Net Smelter Royalty as defined in Schedule “B”
attached hereto (“NSR”);

    

    (i)           “Option”
means the option granted by the Optionor to the Optionee to acquire, subject to
the NSR reserved to the Optionor, an undivided 100% right, title and interest in
and to the Property as more particularly set forth in Section 4;

    

    (j)           “Option
Period” means the period from the date hereof to the date at which the Optionee
has performed its obligations to acquire its 100% interest in the Property as
set out in Section 4 hereof, which ever shall be the lesser period;

    

    (k)           “Property”
means the mineral claims described in Schedule “A”;

    

    (l)           “Filing
Fees” means all fees, payments and expenses necessary to keep the mineral claims
in good standing with federal, state and local government entities;

    

    (m)           “Work
Program” means a program of work reasonably acceptable to both parties in
respect of a particular Property, contained in a written document setting out in
reasonable detail;

    

    (i)           An
outline of the Mining Operations proposed to be undertaken and conducted on the
Property, specifically stating the period of time during which the work
contemplated by the proposed program is to be done and performed;

    

    (ii)           The
estimated cost of such Mining Operations including a proposed budget providing
for estimated monthly cash requirements in advance and giving reasonable
details; and

    

    (iii)           The
identity and credentials of the person or persons undertaking the Mining
Operations so proposed if not the Optionor, reasonably acceptable to both
parties hereto.

    

    2.           Headings

    

    Any heading, caption or index hereto
shall not be used in any way in construing or interpreting any provision
hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           Singular,
Plural

    

    Whenever the singular or masculine or
neuter is used in this Agreement, the same shall be construed as meaning plural
or feminine or body politic or corporate or vice versa, as the context so
requires.

    

    4.           Option

    

    The Optionor hereby grants to the
Optionee the sole and exclusive right and option (the “Option”) to earn a 100%
interest in the Property exercisable as follows:

    

    (a)           The
Optionee paying the sum of $20,000 USD to the Optionor by way of cash, and
reimburse all holding costs and expenses of location of mining claims, such
expenses to be identified in Schedule “C”;

    

    (b)           On
or before March 15th,
2009

    

    (i)           The
Optionee incurring Expenditures of $50,000 USD on the property;

    

    (ii)           The
Optionee paying $20,000 USD to the Optionor;

    

    (c)           On
or before March 15th,
2010

    

    (i)           The
Optionee incurring Expenditures of $75,000 USD on the Property in addition to
the expenditures referred to in clause (b)(i);

    

    (ii)           The
Optionee paying $20,000 U.S to the Optionor;

    

    (d)           On
or before March 15th,
2011

    

    (i)           The
Optionee incurring Expenditures of $100,000 USD on the Property in addition to
the expenditures referred to in clauses (b)(i) and (c)(i) hereof;
and

    

    (ii)           The
Optionee paying $35,000 USD to the Optionor;

    

    (e)           On
or before March 15th,
2012

    

    (i)           The
Optionee incurring Expenditures of $250,000 USD on the Property in addition to
the expenditures referred to in clauses (b)(i), (c)(i) and (d)(i) hereof;
and

    

    (ii)           The
Optionee paying $45,000 USD to the Optionor; and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f)           On
or before March 15th,
2013

    

    (i)           The
Optionee incurring Expenditures of $100,000 USD on the Property in addition to
the expenditures referred to in clauses (b)(i), (c)(i), (d)(i) and (e)(i)
hereof;

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor.

    

    

    (g)           On
or before March 15th,
2014

    

    (i)           The
Optionee incurring Expenditures of $100,000 USD on the Property in addition to
the expenditures referred to in clauses (b)(i), (c)(i), (d)(i) and (e)(i) and
(f)(i) hereof

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor; and

    

    

    (h)           On
or before March 15th,
2015

    

    (i)           The
Optionee incurring Expenditures of $100,000 USD on the Property in addition to
the expenditures referred to in clauses (b)(i), (c)(i), (d)(i), (e)(i), (f)(i)
and (g)(i) hereof;

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor; and

    

    (i)           On
or before March 15th,
2016

    

    (i)         
  The Optionee incurring Expenditures of $100,000 USD on the Property
in addition to the expenditures referred to in clauses (b)(i), (c)(i), (d)(i),
(e)(i), (f)(i), (g)(i) and (h)(i) hereof;

    

    (ii)        
  The Optionee paying $50,000 USD to the Optionor; and

    

    

    (j)           
On or before March 15th,
2017

    

    (i)           The
Optionee incurring Expenditures of $100,000 USD on the Property in addition to
the expenditures referred to in clauses (b)(i), (c)(i), (d)(i), (e)(i), (f)(i),
(g)(i), (h)(i) and (i)(i) hereof;

    

    (ii)           The
Optionee paying $50,000 USD to the Optionor; and

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (k)           On
or before March 15th,
2018

    

    (i)           The
Optionee incurring Expenditures of $250,000 USD on the Property in addition to
the expenditures referred to in clauses (b)(i), (c)(i), (d)(i), (e)(i), (f)(i),
(g)(i), (h)(i), (i)(i) and (j)(i) hereof;

    

    (ii)           Optionee
paying $100,000 USD to the Optionor.  Following which the Optionee
shall be deemed to have exercised the Option (the “Exercise Date”) and shall be
entitled to an undivided 100% right, title and interest in and to the Property
with the full right and authority to equip the Property for production and
operate the Property as a mine subject to the rights of the Optionor to receive
the NSR.

    

    The
Optionee shall have the one time right exercisable for 90 days following
completion of a bankable feasibility study to buy up to one half (50%) of the
Optionor’s NSR interest (i.e. an amount equal to 1.5% of the NSR interest) for
USD $2,250,000. The right to purchase the said NSR interest shall be exercised
by the Optionee providing the Optionor with notice of the purchase accompanied
by payment in the amount of USD $2,250,000.

    

    The
Optionor and Optionee understand and confirm that all Expenditures incurred in a
particular period, including any excess in the amount of Expenditures required
to be incurred to maintain the Option during such period, shall be carried over
and included in the aggregate amount of Expenditures for the subsequent period,
but not to exceed more than three (3) consecutive years.

    

    Notwithstanding
paragraphs (b)(i), (c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i), (i)(i),
(j)(i) and (k)(i) if the Optionee has not incurred the requisite Expenditures to
maintain its option in good standing prior to March 15th  of
any given year, the Optionee may pay to the Optionor within 60 days following
the expiry of such period, the amount of the deficiency and such amount shall
thereupon be deemed to have been Expenditures incurred by the Optionee during
such period.

    

    (l)           The
doing of any act or the incurrence of any cash payments by the

    Optionee
shall not obligate the Optionee to do any further acts or make

    any
further payments with the exception of fees and expenses to keep said property
in good standing as per paragraph 8b.

    

    5.           Transfer
of Title

    

    Upon Optionee’s completion of all
requirements to earn a 100 percent interest in the Property, the Optionor will
deliver or cause to be delivered to the Optionee’s solicitors a duly executed
transfer of Property in favor of the Optionee (the “Optionee Transfer”). The
Optionee shall be entitled to record the Optionee Transfer with the appropriate
government offices to effect transfer of legal title of the Property into its
own

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    name upon
the full and complete exercise of the Option by the Optionee. In the event the
Optionee Transfer is recorded the Optionor shall be entitled to record notice of
its NSR interest.

    

    6.           Mining
Operations during Option

    

    During the Option Period, the Optionor
may provide its mineral exploration expertise on the Property, on a consultation
basis for and on behalf of the Optionee, at the election of the
Optionee.  However, the Optionee has the exclusive right to determine
what Expenditures and Mining Operations it will perform, when they will be
performed, and by whom. If the Optionee elects to use the mineral expertise and
consulting services of the Optionor, then the Optionor shall invoice for time
for consulting services and related travel expenses from time to time and the
prompt payment of such invoices when due shall constitute a portion of
Expenditures by the Optionee as contemplated under Section 4
hereof.

    

    During the currency of this Agreement,
the Optionee, its servants, agents and workmen and any persons duly authorized
by the Optionee, shall have the right of access to and from and to enter upon
and take possession of and prospect, explore and develop the Property in such
manner as the Optionee in its sole discretion may deem advisable and shall have
the right to remove and ship therefrom ores, minerals, metals, or other products
recovered in any manner therefrom.

    

    7.           Assignment

    

    During the Option Term, both parties
shall have the right to sell, transfer, assign, mortgage, pledge its interest in
this Agreement or its right or interest in the Property. It will be a condition
of any assignment under this Agreement that such assignee shall agree in writing
to be bound by the terms of this Agreement applicable to the
assignor.

    

    8.           Termination

    

    This Agreement shall forthwith
terminate in circumstances where:

    

    (a)           The
Optionee shall fail to comply with any of its obligations hereunder, subject to
Force Majeure, and within 30 days of receipt by the Optionee of written notice
from the Optionor of such default, the Optionee has not:

    

    (i)           cured
such default, or commenced proceedings to cure such default and prosecuted same
to completion without undue delay; or

    

    (ii)           given
the Optionor notice that it denies that such default has
occurred.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In the
event that the Optionee gives notice that it denies that a default has occurred,
the Opionee shall not be deemed to be in default until the matter shall have
been determined finally through such means of dispute resolution as such matter
has been subjected to by either party; or

    

    (b)           The
Optionee gives notice of termination to the Optionor, which it shall be at
liberty to do at any timeafter the execution of this Agreement. If and when the
Optionee elects to terminate this Agreement, or terminate one of the projects
comprising the Property, at such time the Property or the specific project will
be returned to the Optionor and all claim fees, payments and expenses will be
paid in order to maintain the property in good standing for one year after
termination.

    

    Upon the
termination of this Agreement under this Section 8, the Optionee shall cease to
be liable to the Optionor in debt, damages, claim fees or otherwise, other than
to pay the claim fees as described in paragraph (b) of this Section 8 and all
liabilities referred to in Section 11.

    

    Upon
termination of this Agreement under this Section 8, the Optionee shall return
the Property, including all property within the designated boundary of the area
of interest, to the Optionor. The Optionee shall vacate the Property within a
reasonable time after such termination and relinquishment, but shall have the
right of access to the Property for a period of six months thereafter for the
purpose of removing its chattels, machinery, equipment and
fixtures.

    

    9.           Representations,
Optionies and Covenants of the Optionor

    

    The Optionor represents, options and
covenants to and with the Optionee as follows:

    

    (a)           The
Optionor is a company duly organized validly existing and in good standing under
the laws of Nevada;

    

    (b)           The
Optionor has full power and authority to carry on its business and to
enter
into this Agreement and any agreement or instrument referred to or contemplated
by this Agreement;

    

    (c)           Neither
the execution and delivery of this Agreement, nor any of the agreements referred
to herein or contemplated hereby, nor the consummation of the transactions
hereby contemplated hereby, nor the consummation of the transactions hereby
contemplated conflict with, result in the breach of or accelerate the
performance required by, any agreement to which it is a party;

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)           The
execution and delivery of this Agreement and the agreements contemplated hereby
will not violate or result in the breach of the laws of any jurisdiction
applicable or pertaining thereto or of its constating documents;

    

    (e)           The
Agreement constitutes a legal, valid and binding obligation of the
Optionor;

    

    (f)           The
Property is accurately described in Schedule “A”, is in good standing under the
laws of the jurisdiction in which it is located and is free and clear of all
liens, charges and encumbrances;

    

    (g)           The
Optionor is the sole recorded and beneficial owner of the Property and has the
exclusive right to enter into this Agreement and all necessary authority to
transfer its interest in the Property in accordance with the terms of this
Agreement;

    

    (h)           No
Person, firm or corporation has any proprietary or possessorty interest in the
Property other than the Optionor, and no person, firm or corporation is entitled
to any royalty or other payment in the nature of rent or royalty on any
minerals, ores, metals or concentrates or any other such products removed from
the Property other than the government of the state of Nevada pursuant to
statute; notwithstanding any Federal, State or County royalties or net proceeds
tax derived from mining operations.

    

    (i)           Upon
request by the Optionee, and at the sole cost of the Optionee, the Optionor
shall deliver or cause to be delivered to the Optionee copies of all available
maps and other documents and data in its possession respecting the Property.
Nothing will be withheld, hidden, or kept from the Optionee, whether the data or
information is held or not by the Optionor; and

    

    (j)           Subject
to performance by the Optionee of its obligations under Section 4, during the
Option Period, the Optionor will keep the Property in good standing, free and
clear of all liens, charges and encumbrances, will carry out all Mining
Operations on the Property in a miner-like fashion if the Optionee elects to use
the mining expertise and consulting services of the Optionor, will obtain all
necessary licenses and permits as shall be necessary and will file all
applicable work up to the legal limits as assessment work under the Mines and
Mineral Act (Nevada)

    

    10.           Representations,
Optionies and Covenants of the Optionee

    

    The
Optionee represents, Options and covenants to and with the Optionor
that:

    

    (a)           The
Optionee is a company duly organized validly existing and in good standing under
the laws of Nevada;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           The
Optionee has full power and authority to carry on its business and to enter into
this Agreement and any agreement or instrument referred to or contemplated by
this Agreement;

    

    (c)           Neither
the execution and delivery of this Agreement, nor any of the agreements referred
to herein or contemplated hereby, nor the consummation of the transactions
hereby contemplated conflict with,

    result in the breach of or accelerate
the performance required by, any agreement to which it is a party;

    

    (d)           The
execution and delivery of this Agreement and the agreements contemplated hereby
will not violate or result in the breach of the laws of any jurisdiction
applicable or pertaining thereto or of its constating documents;
and

    

    (e)           This
Agreement constitutes a legal, valid and binding obligation of the
Optionee.

    

    11.           Indemnity
and Survival of Representation

    

    The representation and Optionies
hereinbefore set out are conditions on which the parties have relied in entering
into this Agreement and shall survive the acquisition of any interest in the
Property by the Optionee and each of the parties will indemnify and save the
other harmless from all loss, damage, costs, actions and suits arising out of or
in connection with any breach of any representation, option, covenant, agreement
or condition made by them and contained in this Agreement.

    

    The Optionor agrees to indemnify and
save harmless the Optionee from any liability to which it may be subject arising
from any Mining Operations carried out by the Optionor or at its direction on
the Property. The Optionee agrees to indemnify and save harmless the Optionor
from any liability to which it may be subject arising from any Mining Operations
carried out by the Optionee or at its direction on the Property.

    

    The Optionor agrees to indemnify and
save harmless the Optionee from any liability arising form any and every kind of
work done on or with respect to the Property prior to the signing of this
Agreement (the “Prior Operations”). Without limiting the generality of the
foregoing, Prior Operations includes all work capable of receiving assessment
credits pursuant to The Mines and Minerals Act of Nevada and the work of
assessment, geophysical, geochemical and geological surveys, studies and
mapping, investigating, drilling, designing, examining equipping, improving,
surveying, shaft sinking, raising, cross-cutting and drifting, searching for,
digging, trucking, sampling, working and procuring minerals, ores and metals, in
surveying and bringing any mineral claims to lease or patent, in doing all other
work usually considered to be prospecting, exploration, development, a
feasibility study, mining work, milling, concentration, beneficiation of ores
and concentrates, as well as the separation and extraction of Mineral Products
and all reclamation, restoration and permitting activities.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    12.           Confidentiality

    

    The parties hereto agree to hold in
confidence all information obtained in confidence in respect of the Property or
otherwise in connection with this Agreement other than in circumstances where a
party has an obligation to disclose such information in accordance with
applicable securities legislation, in which case such disclosure shall only be
made after consultation with the other party.

    

    13.           Notice

    

    All notices, consents, demands and
requests ( in this Section 13 called the “Communication”) required or permitted
to be given under this Agreement shall be in writing and may be delivered
personally sent by telegram, by telex or telecopier or other electronic means or
may be forwarded by first class prepaid registered mail to the parties at their
addresses first above written. Any Communication delivered personally or sent by
telegram, telex or telecopier or other electronic means including email shall be
deemed to have been given and received on the second business day next following
the date of sending. Any Communication mailed as aforesaid shall be deemed to
have been given and received on the fifth business day following the date it is
posted, addressed to the parties at their addresses first above written or to
such other address or addresses as either party may from time to time specify by
notice to the other; provided, however, that if there shall be a mail strike,
slowdown or other labor dispute which might effect delivery of the Communication
by mail, then the Communication shall be effective only if actually delivered.
For purposes of this agreement and as a definition of address the Optionor’s
email shall be defined as rrkern@charter.net
and the Optionor’s telecopier number is 775-746-0938. The Optionee’s email shall
be defined as info@patriotgoldcorp.com
and the Optionee’s telecopier number is 604-925-5258. Notice will be provided to
each party should their respective email address change.

    

    14.           Further
Assurances

    

    Each of the parties to this Agreement
shall from time to time and at all times do all such further acts and execute
and deliver all further deeds and documents as shall be reasonably required in
order to fully perform and carry out the terms of this Agreement

    

    15.           Entire
Agreement

    

    The parties hereto acknowledge that
they have expressed herein the entire understanding and obligation of this
Agreement and it is expressly understood and agreed that no implied covenant,
condition, term or reservation, shall be read into this Agreement relating to or
concerning any matter or operation provided for herein

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    16.           Proper
Law and Arbitration

    

    This
Agreement will be governed by and construed in accordance with the laws of the
State of Nevada and the laws of the United States of America. The parties hereto
hereby irrevocably attorn to the jurisdiction of the Courts of Nevada. All
disputes arising out of or in connection with this Agreement, or in respect of
any defined legal relationship associated therewith or derived therefrom, shall
be referred to and finally resolved by a sole arbitrator by arbitration under
the rules of The Arbitration Act of Nevada.

    

    17.           Enurement

    

    This Agreement will ensure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns.

    

    18.           After
Acquired Properties

    

    (i)           The
parties covenant and agree, each with the other, that any and all After Acquired
Properties shall be subject to the terms and conditions of this Agreement and
shall be added to and deemed, for the purposes hereof, to be included in the
Property. Any costs incurred by the Optionor in staking, locating, recording or
otherwise acquiring any “After Acquired Properties” will be deemed to be Mining
Operations for which the Optionor will be entitled to reimbursements as part of
the Expenditures payable by the Optionee hereunder.

    

    (ii)           Any
additional claims agreed by the Optionee to be staked by the Optionor within 1
mile from the existing perimeter of the Property boundaries shall form party of
this Agreement. The Optionee will reimburse the Optionor for the costs of
staking the additional claims, unless the Optionee does not elect to have the
additional claims subject to this Agreement.

    

    19.           Default

    

    Notwithstanding anything in this
Agreement to the contrary if any party (a “Defaulting Party”) is in default of
any requirement herein set forth the party affected by such default shall give
written notice to the Defaulting Party specifying the default and the Defaulting
Party shall not lose any rights under this Agreement, unless thirty (30) days
after the giving of notice of default by the affected party the Defaulting Party
has failed to take reasonable steps to cure the default by the appropriate
performance and if the Defaulting Party fails within such period to take
reasonable steps to cure any such default, the affected party shall be entitled
to seek any remedy it may have on account of such default including, without
limiting, termination of this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    20.           Payment

    

    All references to monies herein shall
be in US funds unless otherwise specified. The Optionee shall make payments for
the Expenditures incurred by the Optionor no later than 30 days after the
receipt of invoices delivered by the Optionee to do any acts or make any
payments hereunder, and any act or payment or payments as shall be made
hereunder shall not be construed as obligating the Optionee to do any further
act or make any further payment or payments.

    

    21.           Supersedes
Previous Agreements

    

    This Agreement supersedes and replaces
all previous oral or written agreements, memoranda, correspondence or other
communications between the parties hereto relating to the subject matter
hereof.

    

    

    IN WITNESS WHEREOF the Parties
hereto have duly executed this Agreement effective as of the15th day of
March, 2008

    

    MinQuest
Inc.

    

    

    

    Per: /s/ Richard A.
Kern

    Richard
A. Kern, President

    

    Patriot
Gold Corp.

    

    

    

    Per: /s/ Robert
Coale

    Robert
Coale, President

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SCHEDULE
“A”

    

    Sections
18, 19, T1S, R40E MDB&M, Esmeralda County, Nevada

    

    

    CLAIM
NAME                             CLAIMANT’S
NAME                                                 NMC
NUMBER

    Weepah
1                                
            MinQuest
Inc.                                                                899984

    Weepah
2                                
            MinQuest
Inc.                                                                899985

    Weepah
3                               
           
 MinQuest
Inc.                                                                899986

    Weepah
4                              
           
  MinQuest
Inc.                                                                899987

    Weepah
5                                
            MinQuest
Inc.                                                                899988

    Weepah
6                                 
           MinQuest
Inc.                                                                899989

    Weepah
7                                  
          MinQuest
Inc.                                                                899990

    Weepah
8                                   
         MinQuest
Inc.                                                                899991

    Weepah
9                                     
       MinQuest
Inc.                                                                899992

    Weepah
10                                           MinQuest
Inc.                                                                899993

    Weepah
11                                           MinQuest
Inc.                                                                899994

    Weepah
12                                           MinQuest
Inc.                                                                899995

    Weepah
13                                           MinQuest
Inc.                                                                899996

    Weepah
14                                           MinQuest
Inc.                                                                899997

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SCHEDULE
“B”

    

    

    “Net
Smelter Return” shall mean the aggregate proceeds received by the Optionee from
time to time from any smelter or other purchaser from the sale of any ores,
concentrates, metals or any other material of commercial value produced by and
from the Property after deducting from such proceeds the following charges only
to the extent that they are not deducted by the smelter or other purchaser in
computing the proceeds:

    

    (a)           The
cost of transportation of the ores, concentrates or metals from the Property to
such smelter or other purchaser, including related insurance;

    

    (b)           Smelting
and refining charges including penalties; and

    

    The
Optionee shall reserve and pay to the Optionor a NSR equal to three (3%)
percent

    of Net
Smelter Return.

    

    Payment
of NSR payable to the Optionor hereunder shall be made quarterly within thirty
(30) days after the end of each calendar quarter during which the Optionee
receives Net Smelter Returns in USD dollars or in kind bullion at the discretion
of the Optionor. Within (60) days after the end of each calendar quarter for
which the NSR for such year shall be audited by the Optionee and any adjustments
in the payments of NSR to the Optionor shall be made forthwith after completion
of the audit. All payments of NSR to the Optionor for a calendar year shall be
deemed final and in full satisfaction of all obligations of the Optionee in
respect thereof if such payments or the calculations thereof are not disputed by
the Optionor of the same audited statement. The Optionee shall maintain accurate
records relevant to the determination of the NSR and the Optionor or its
authorized agent, shall be permitted the right to examine such records at all
reasonable times.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
“C”

    

    

    
      	
              Claim
      expenses 14 claims @ $100/claim

            	 	$	1,400.00	 
	 
      	 	 	 	 
	
              BLM
      Location filing fees 14 @ $170

            	 	$	2,380.00	 
	 
      	 	 	 	 
	
              County
      Location fees  14 @ $35.50

            	 	$	497.00	 
	 
      	 	 	 	 
	
              Annual
      filing fees BLM, County 14 @ $133.50 x 2 years

            	 	$	3,738.00	 
	 
      	 	 	 	 
	
              Total

            	 	$	8,015.00EXHIBIT
4.3

       

    

    
      	 	 	 
	
              

            	
               

            	
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    TERMS
AND CONDITIONS OF THE NOKIA PERFORMANCE SHARE PLAN 2008

    

     

    
      
        	
                1. 

              	
                Purpose
      and Scope of the Plan

              

      

    

     

    The purpose of the
Nokia Performance Share Plan 2008 is to retain Nokia employees on a long-term
basis, to promote employees’ long-term commitment, and to compensate them for
performance measured on a long-term basis. To accomplish these objectives Nokia
may grant eligible Nokia Group employees Nokia Shares under this
Plan.

     

    The Plan is tied
directly to the performance of Nokia Group. For the purposes of this Plan,
performance is measured through growth and profitability. The compensation to
the employees under the Plan becomes payable and the financial benefits of the
Plan materialize only if the pre-determined performance levels, measured by
Average Annual Net Sales Growth and EPS, are achieved by the end of the
Performance Period.

     

    Under the Plan a
maximum of 6 000 000 Performance Shares may be granted, which may result in
the settlement of 12 000 000 Shares in the maximum. The Board determines
the general guidelines under the Plan and approves the grants of Performance
Shares to eligible employees within its authorities. Grants of Performance
Shares under these terms and conditions may be made between January 1, 2008 and
December 31, 2008, inclusive.

     

    
      
        	
                2. 

              	
                Definitions

              

      

    

     

    Average Annual
Net Sales Growth: Average Annual Net Sales Growth is an average of the
annual net sales growth rates in the consolidated financial accounts for Nokia
Group (IFRS) during the Performance Period.

     

    Board:
Board of Directors of Nokia Corporation.

     

    EPS: Earnings per share
(diluted, excluding special items) in the consolidated financial accounts for
Nokia Group (IFRS).

     

    Grant
Amount: The number of Performance Shares granted to a
Participant.

     

    Nokia:
Nokia Corporation.

     

    Maximum
Number: The
number of Performance Shares to be settled, if the maximum performance is achieved with
respect to each of the performance criteria separately as defined under
paragraph 4.2. The Maximum Number equals two times the Grant Amount. One half of
the Maximum Number is tied to EPS and one half of the Maximum Number is tied to
Average Annual Net Sales Growth.

     

    Participant: Employee of Nokia Group who
has received a grant of Performance Shares under the Plan.

     

    Performance
Share/Shares: The Grant Amount consists of Performance Shares. Each
Performance Share represents a right to receive certain number of Shares or its
cash equivalent upon settlement, subject to the fulfillment of the conditions
under paragraph 4, and provided that no other restriction related to these terms
and conditions is applicable.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	 	 	 
	
                

              	
                 

              	
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    Performance
Period: The three fiscal years starting on January 1, 2008 and ending on
December 31, 2010.

     

    Plan: Performance Share Plan
2008 of Nokia.

     

    Settlement Date:
A banking day in Helsinki, Finland falling as soon as practicable after
the end of the Performance Period, as determined by Nokia.

     

    Share/Shares:
Nokia ordinary shares. What is said about Shares under these terms and
conditions, shall apply (as applicable) to their cash equivalent used for
settlement.

     

    Threshold Number:
The number of Performance Shares to be settled, if the threshold
performance is
achieved with respect to one performance criterion as defined under paragraph
4.2. Each Threshold Number equals one quarter (1/4) of the Grant Amount. One
Threshold Number is tied to EPS, and another is tied to Average Annual Net Sales
Growth.

     

    
      
        	
                3. 

              	
                Grant
      of Performance Shares

              

      

    

     

    At grant, each
Participant will receive a Grant Amount of Performance Shares. Nokia will notify
each Participant of the grant.

     

    As a precondition
for a valid grant, the Participant has to be employed by Nokia at the time of
the grant. The Participant may be required to give Nokia such authorizations and
consents, as Nokia deems necessary in order to administer the Plan.

     

    
      
        	
                4.

              	
                Financial
      Performance Criteria

              

      

    

     

    
      
        	
                4.1 

              	
                General
      Principles

              

      

    

     

    Measurement of
Nokia’s performance during the Performance Period will be based on the
consolidated financial accounts of Nokia Group (IFRS) as of December 31, 2010,
compared to the consolidated financial accounts of Nokia Group (IFRS) for
2007.

     

    The two
pre-determined financial performance criteria under the Plan are Average Annual
Net Sales Growth and EPS. Average Annual Net Sales Growth is calculated as an
average of the net sales growth rates for the years 2007 through
2010.

     

    
      
        	
                4.2.

              	
                Threshold
      Performance and Maximum
Performance

              

      

    

     

    Threshold (i.e.
minimum) performance levels and maximum performance levels are defined for each
performance criteria as follows:

     

    
      	
               
      

            	
              (a)

            	
              Average
      Annual Net Sales Growth during the Performance Period: 4% (threshold) and
      16% (maximum); and

            

    

     

    
      	
               
      

            	
              (b)

            	
              EPS: EPS of
      EUR 1.72 (threshold) and EUR 2.76 (maximum) for
  2010.

            

    

    

    The number of
Performance Shares to be settled, if any, is determined independently with
respect to Average Annual Net Sales Growth and to EPS.

    

    If the threshold
performance for neither of the two performance criteria is reached, no
settlement will take place.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	 	 	 
	
                

              	
                 

              	
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    If the threshold
performance level is achieved in respect of a performance criterion, the
Threshold Number of Performance Shares will be settled.

    

    To the extent the
threshold performance level is exceeded in respect of a performance criterion,
the number of Performance Shares to be settled will increase from the Threshold
Number up to the Maximum Number following a linear scale.

    

    The total number of
Performance Shares to be settled, if applicable, may not exceed two times the
Grant Amount.

     

    

    The following table
summarizes each performance criterion:

    

    
      	
              Performance
      Criterion

            	
              Threshold

              Performance

            	
              Maximum

              Performance

            	
              Potential
      range of

              Settlement

            
	
              EPS for
      2010

              (diluted,
      excluding special items)

               

            	
              EUR
      1.72

            	
               

              EUR
      2.76

               

            	
              Zero,
      or

              Threshold
      Number up to

              4 x Threshold
      Number

            
	
              Average
      Annual Net Sales growth  during

              Jan. 1, 2008
      – Dec. 31, 2010

            	
              4%

            	
               

              16%

               

            	
              Zero,
      or

              Threshold
      Number up to

              4 x Threshold
      Number

            

    

    

    
      	
              5. 

            	
              Measurement
      and Calculation of Payout

            

    

     

    The measurement of
Nokia’s performance shall be made after the end of the Performance Period. Based
on this measurement, the number of Performance Shares to be settled as Shares or
the equivalent amount of cash shall be calculated.

     

    Nokia shall carry
out the measurement and calculation in its sole discretion.

     

    The calculation of
the number of Performance Shares to be settled shall not result in fractional
Shares. The number of Shares shall be rounded to the nearest whole
Share.

     

    
      	
              6. 

            	
              Settlement

            

    

     

    On the Settlement
Date, Nokia will complete the settlement by transferring applicable number of
Shares, or their equivalent value in cash, to the Participant’s book-entry,
brokerage or other bank account, as applicable, provided that the Participant
has complied with these terms and conditions and performed all necessary actions
to enable Nokia to instruct the settlement. If the Participant has not performed
all necessary actions to enable Nokia to instruct the settlement, Nokia may, in
its sole discretion, sell the Shares on behalf of the Participant and remit the
proceeds to the Participant.

    

    The Settlement Date
cannot be earlier than the first banking day immediately following the day of
the announcement of Nokia’s annual results for the fiscal year
2010.

     

    Nokia may, in its
sole discretion, use for the settlement of Performance Shares one or more of the
following: newly issued Shares, Nokia’s own existing Shares (treasury Shares),
Shares purchased from the open market, or, in lieu of Shares, cash
settlement.

     

    The participants
shall not be entitled to any dividend or have any voting rights or any other
shareholder rights until and unless the Shares have been transferred to the
Participant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	 	 	 
	
                

              	
                 

              	
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              7. 

            	
              Changes
      in Employment

            

    

     

    If the employment
of the Participant with Nokia Group terminates prior to the end of the
Performance Period by the reason of early retirement, retirement, permanent
disability (as defined by Nokia at its sole discretion) or death, the
Participant retains the right to settlement. In case of death of the Participant
prior to the close of the Performance Period, Nokia has the right to settle the
Performance Shares at the Grant Amount prior to the end of the Performance
Period. If made, such special settlement will constitute full and final
settlement of that Performance Share grant.

     

    If the employment
of the Participant with Nokia Group terminates prior to the end of the
Performance Period for any other reason than those mentioned above, Nokia is
entitled to redeem the Performance Share grant from the Participant without
consideration, in which case the Participant shall
not be entitled to any settlement under these terms and conditions.

     

    In cases of
voluntary and/or statutory leave of absence of the Participant, Nokia has the
right to prorate the settlement.

     

    
      	
              8. 

            	
              Terms
      of Employment

            

    

    

    The grant or
settlement of Performance Shares does not constitute a term or a condition of
the Participant’s employment contract with Nokia under applicable local laws.
The Performance Shares, Shares or their cash equivalent under the Plan do not
form a part of the Participant’s salary or benefit of any kind.

    

    

    
      	
              9. 

            	
              Taxes
      and other Obligations

            

    

    

    The Participants
are personally responsible for all taxes and social security charges associated
with the Performance Share grants and Shares delivered upon settlement. This
includes responsibility for any and all tax liabilities in multiple countries,
if the participant has resided in more than one country during the Performance
Period. The Participants are advised to consult their own financial and tax
advisers (at their own expense) before accepting the grant in order to verify
their tax position.

    

    The Participants
are also responsible for any potential charges debited by financial institutions
in connection with the settlement of the Performance Shares or any subsequent
transactions related to the Shares.

    

    Pursuant to
applicable laws, Nokia is or may be required or may deem appropriate to withhold
taxes, social security charges or fulfil employment related and other
obligations upon grant or settlement of Performance Shares, or when the Shares
are disposed of by the Participants. Nokia shall have the right to determine how
such collection, withholding or other measures will be arranged or carried out,
including but not limited to a settlement of a net amount remaining after the
completion of such measures or potential sale of the Shares on behalf of the
Participants for the completion of such measures.

    

    
      	
              10. 

            	
              Breach
      of these Terms and Conditions

            

    

    

    The Participant
shall comply with these terms and conditions, as well as any instructions given
by Nokia regarding the Plan from time to time. If the Participant breaches these
terms and conditions and/or any instructions given by Nokia, Nokia may at its
discretion, at any time prior to settlement, rescind the grant of Performance
Shares.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	 	 	 
	
                

              	
                 

              	
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              11. 

            	
              Validity
      of these Terms and Conditions

            

    

     

    These terms and
conditions shall become valid and effective upon the approval by the Board. The
Board may at any time amend, modify or terminate these terms and conditions. The
Board may make such a resolution in its absolute discretion at any
time.

    

    Such action by the
Board may also, as in each case is determined by the Board affect the
Performance Shares that are then outstanding, but not settled.

    

    
      	
              12.

            	
              Administration

            

    

     

    The Plan shall be
administered on behalf of Nokia in accordance with the general guidelines
approved by the Board. Nokia has the authority to interpret these terms and
conditions, approve such other rules and procedures and take such other
measures, as it shall deem necessary or appropriate for the administration of
the Plan. Such action may also affect the Performance Shares then outstanding,
but not settled.

    

    Nokia has the right
to determine the practical manner of administration and settlement of the
Performance Shares, including but not limited to the acquisition, issuance,
sale, and transfer of the Shares or their cash equivalent to the Participant.
Furthermore, Nokia has the right to require from the Participant the submission
of such information or contribution that is necessary for the administration and
settlement of the Performance Share grants.

    

    
      	
              13. 

            	
              Governing
      Law and Settlement of Disputes

            

    

     

    These terms and
conditions are governed by Finnish laws. Disputes arising out of these terms and
conditions shall be settled by arbitration in Helsinki, Finland in accordance
with the Arbitration Rules of the Finnish Central Chamber of
Commerce.

    

    
      	
              14. 

            	
              Processing
      of personal data

            

    

     

    Nokia has the right to transfer
globally within Nokia Group and/or to an agent of Nokia Group any of the
personal data required for the administration of the Plan and the settlement of
the Performance Shares. The data may be administered and processed either by
Nokia or an agent authorized by Nokia in the future. The Participant is entitled
to request access to data referring to the Participant’s person, held by Nokia
or its agent and to request amendment or deletion of such data in accordance
with applicable laws, statutes or regulations. In order to exercise these
rights, the Participant must contact Nokia Corporate Legal department in Espoo,
Finland.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	 	 	 
	
                

              	
                 

              	
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    SUPPLEMENT
TO THE GRANT OF PERFORMANCE SHARES UNDER

     THE
NOKIA PERFORMANCE SHARE PLAN 2008 IN USA

     

    Amendments
to the Nokia Performance Share Plan 2008

     

     For purposes
of Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the
“Code”), the Nokia
Performance Share Plan 2008 (“Plan”) is amended, effective
as of March 19, 2008, by adding the following “Code Section 409A Schedule” to
the Plan.

     

    “Code
Section 409A Schedule”

     

    Notwithstanding
anything in the terms and conditions of the Plan (“Plan Rules”) to the contrary,
effective as of March 19, 2008, the Plan Rules are amended as set forth in this
Code Section 409A Schedule in order to avoid adverse or unintended tax
consequences to Participants under Section 409A of the Code, and the applicable
rules and regulations thereunder.  The provisions of this Code Section
409A Schedule shall apply to granted Performance Shares that are, or could
potentially be, subject to Section 409A of the Code, and shall supersede the
other Plan Rules to the extent necessary to eliminate inconsistencies between
this Code Section 409A Schedule and such other Plan Rules.

     

    1.           The
Settlement Date shall be the first banking day immediately following the day of
the announcement of Nokia’s annual results for the fiscal year
2010.

     

    2.           In
cases of voluntary and/or statutory leave of absence of the Participant, the
length of which exceeds the threshold determined for the relevant type of leave
in the applicable HR policy at the time of the leave, Nokia will prorate and
settle the Participant’s Performance Shares on the Settlement Date.

     

    3.           In
the event that the Participant’s employment terminates by reason of retirement,
early retirement, or permanent disability prior to the end of the Performance
Period, the Participant will retain the right to settlement of the Performance
Shares on the Settlement Date.  In the event that a Participant’s
employment terminates due to death, Nokia will settle the Participant’s
Performance Shares at the Grant Amount in the second month of the calendar
quarter following the date of the Participant’s death.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	 	 	 
	
                

              	
                 

              	
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        4.           If
any Plan Rule or grant document contravenes any regulations or guidance
promulgated under Section 409A of the Code or could cause any granted
Performance Shares to be subject to taxes, interest or penalties under Section
409A of the Code, Nokia may, in its sole discretion and without the
Participant’s consent, modify the Plan Rules or grant documents to: (i) comply
with, or avoid being subject to, Section 409A of the Code, (ii) avoid the
incurrence of additional taxes, interest or penalties under Section 409A of the
Code, and (iii) maintain, to the maximum extent
practicable, the original intent of the applicable Plan Rule or provision
without contravening the provisions of Section 409A of the
Code.

      

    

     

    *  *  *  *  *

     

    Except as set forth
herein, the Nokia Performance Share Plan 2008 remains in full force and
effect.

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