Document:

Exhibit 10.2

 

RESTRICTED SHARE AWARD

 

UNDER THE

 

2008 OMNIBUS STOCK AND INCENTIVE PLAN

 

for

 

THOMAS GROUP, INC.

 

Effective
as of the date executed below (“Date of Grant”), a Restricted Share Award (“Award”)
is granted by Thomas Group, Inc. (the “Company”) to Michael E. McGrath
(the “Holder”), provided that this Award is in all respects subject to the
terms and provisions of the 2008 Omnibus Stock and Incentive Plan for Thomas
Group, Inc. (the “Plan”), all of which are incorporated herein by
reference, except to the extent otherwise expressly provided in this
Award.  Capitalized terms used herein
without definition shall have the respective meanings specified in the Plan.

 

WITNESSETH

 

WHEREAS,
the Holder assumed the additional roles of President and Chief Executive
Officer on December 21, 2009 in addition to his role as Executive
Chairman, and

 

WHEREAS,
the Holder has agreed to devote substantially all of his time to these roles at
the Company for 2010, an increase from the one-third of his time required by the
role of Executive Chairman, and

 

WHEREAS,
the Holder has agreed to do so for his existing cash salary of $330,000 per
year for calendar year 2010, and

 

WHEREAS,
the purpose of this Award is to advance the interests of the Company and
increase shareholder value by providing additional incentive to retain and
motivate the Holder, and

 

WHEREAS,
the Company desires to grant to Holder an award which entitles the Holder to
receive up to 600,000 Restricted Shares subject to certain conditions described
herein;

 

NOW
THEREFORE, in consideration of the mutual covenants hereinafter set forth and
for other good and valuable consideration, the parties agree as follows:

 

1.               Restricted Share Award. The Company
hereby issues to the Holder the right to receive an aggregate of up to 600,000
Restricted Shares (the “Restricted Shares”) under the Plan upon the terms and
subject to the conditions set forth in this Award.

 

 

2.               Delivery of Shares.  The Restricted Shares shall be delivered to
the Holder in separate installments at the each of the following dates:

 

	
   

  	
  a.

  	
  March 31,
  2010

  	
   

  	
  150,000
  shares

  	
   

  
	
   

  	
  b.

  	
  June 30,
  2010

  	
   

  	
  150,000
  shares

  	
   

  
	
   

  	
  c.

  	
  September 30,
  2010

  	
   

  	
  150,000
  shares

  	
   

  
	
   

  	
  d.

  	
  December 31, 2010

  	
   

  	
  150,000 shares

  	
   

  

 

3.               Condition for Delivery of
Restricted Shares.  The Holder
shall be entitled to receive an installment of Restricted Shares only if as of
the delivery date specified above with respect to such installment he continues
to be employed by the Company in the roles of Executive Chairman, President and
Chief Executive Officer.

 

4.               Restriction on Shares to be
Removed upon Delivery.  Upon
delivery, all restrictions will be removed and the delivered Shares will be
unrestricted, except as may otherwise be required by law.

 

5.               Authority to Deliver Shares.  The Vice President of Human Resources and the
Chief Financial Officer jointly shall be authorized to execute such documents
as may be required to effect delivery of the Shares on each of the dates set
forth above if the condition for delivery of Restricted Shares specified in Section 3
above has been met.

 

6.               Withholding.  On each date on which the Shares are
delivered, the Holder shall be required to pay to the Company, in cash, the
amount which the Company reasonably determines to be necessary in order for the
Company to comply with applicable Federal or state income tax withholding
requirements and the collection of employment taxes.

 

7.               Status of the Holder with
Respect to Shares.  The Holder
shall have no rights, powers or privileges with respect to the Restricted
Shares until such Shares are delivered to the Holder.

 

8.               Representations and
Warranties.  As a
condition to the delivery of the Shares, the Board of Directors of Thomas Group, Inc.
(the “Board”) may obtain such agreements or undertakings, if any, as the Board
may deem necessary or advisable to assure compliance with any law or regulation
including, but not limited to, the following:

 

a.               a representation, warranty
or agreement by the Holder to the Company that he is acquiring the Shares for
investment and not with a view to, or for sale in connection with, the
distribution of any such Shares; and

b.              a representation, warranty
or agreement to be bound by any legends that are, in the opinion of the Board,
necessary to comply with the provisions of any securities 

 

 

law deemed by the Board to be applicable to
the issuance of the Shares and are endorsed upon the Share certificates.

 

9.               Termination of the Award.  Without limitation, this Award shall
automatically terminate and expire on the earlier of (i) the first date
that an aggregate of 600,000 Restricted Shares shall have been delivered under
this Award or (ii) the date of the Holder’s Separation, and upon the date
of such termination of the Award all Restricted Shares which have not been
delivered on or prior to such date will be permanently forfeited.

 

10.         Interpretation of the Award
Provisions.  The
Committee shall have the authority to the full extent provided under the terms
of the Plan to interpret all terms of the Plan and this Award, and to otherwise
supervise the implementation of such terms.

 

11.         Governing Law.  TO THE MAXIMUM EXTENT PERMITTED UNDER
APPLICABLE LAW, THIS AWARD SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF TEXAS.

 

12.         Binding Effect.  This Award shall inure to the benefit of and
be binding upon the heirs, executors, administrators, successors and assigns of
the parties hereto.

 

13.         Amendments.  This Award may only be amended by a written
document signed by the Company and the Holder.

 

14.         Severability.  If any provision of this Award is declared or
found to be illegal, unenforceable or void, in whole or in part, the remainder
of this Award will not be affected by such declaration or finding and each such
provision not so affected will be enforced to the fullest extent permitted by
law.

 

15.         Counterparts.  This Award 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.

 

 

IN
WITNESS WHEREOF, the Company has caused these presents to be executed on its
behalf and the Holder has unto set his hand, all on the day shown below.

 

	
   

  	
  THOMAS
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edward P. Evans

  
	
   

  	
   

  
	
   

  	
  Edward
  P. Evans, Chairman of the

  
	
   

  	
   

  
	
   

  	
  Compensation
  and Corporate

  
	
   

  	
   

  
	
   

  	
  Governance
  Committee

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  March
  9, 2010

  
				

 

 

ACKNOWLEDGMENT

 

The
Holder agrees to be bound by all the terms of this Award and of the Plan.

 

	
   

  	
  By:

  	
  /s/
  Michael E. McGrath

  
	
   

  	
   

  
	
   

  	
  Michael
  E. McGrathExhibit 10.3

 

CANCELLATION OF

 

PERFORMANCE SHARE AWARD

 

UNDER THE

 

2008 OMNIBUS STOCK AND INCENTIVE PLAN

 

for

 

THOMAS GROUP, INC.

 

WHEREAS,
Thomas Group, Inc. (the “Company”) previously granted to Michael E.
McGrath (the “Holder”) a Performance Share Award, effective as of March 1,
2008 (the “Award”), entitling the Holder to receive up to 350,000 Performance
Shares under the 2008 Omnibus Stock and Incentive Plan for Thomas Group, Inc.
(the “Plan”), subject to the acheivement of certain performance targets,

 

WHEREAS,
the performance targets for 2008 and for 2009 required to be achieved for the
Award to vest with respect to such years were not met, and the target for “catch
up” vesting in 2010 is also unlikely to be met, and under such circumstances
the portions of the Award related to performance in 2008 and 2009 will not be
earned,

 

WHEREAS,
the Company is currently projected to be unprofitable for 2010 and under such
circumstances the portion of the Award related to performance inr 2010 cannot
be earned,

 

WHEREAS,
the Plan permits the cancellation of awards granted pursuant to the Plan and
upon cancellation the shares subject to such cancelled awards become available
for future grants under the Plan,

 

WHEREAS,
on behalf of the Company, the Compensation and Corporate Governance Committee
of the Board of Directors of the Company has determined that it is in the best
interest of the Company to cancel the Award, and the Holder is willing to
consent to such cancellation,

 

NOW,
THEREFORE, effective as of the last date set forth below, the Holderhereby
consents to the cancellation of the Award in its entirety, and the Company
confirms such cancellation.

 

	
  HOLDER:

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Michael E. McGrath

  	
   

  
	
   

  	
   

  
	
  Michael
  E. McGrath

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  March
  9, 2010

  	
   

  
				

 

 

	
  Confirmed:

  	
   

  
	
   

  	
   

  
	
  THOMAS
  GROUP, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Edward P. Evans

  	
   

  
	
   

  	
   

  
	
  Edward
  P. Evans

  	
   

  
	
   

  	
   

  
	
  Chairman,
  Compensation and Corporate Governance Committee

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  March
  9, 2010Exhibit 10.19

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into on August 1,
2008 between US Gold Corporation, a Colorado
corporation (the “Employer”) and Ian Ball (the “Employee”).  Together, the Employer and the Employee may
be referred to in this Agreement as the “Parties.”

 

WHEREAS,
the Employer desires to secure the employment of the Employee; and

 

WHEREAS,
the Employee desires to be employed by the Employer;

 

NOW
THEREFORE, in consideration of the mutual covenants contained in this
Agreement, the Employer and the Employee agree as follows:

 

ARTICLE 1

TERM OF EMPLOYMENT

 

1.1           Employment.  Effective with the date of this Agreement,
the Employer agrees to employ the Employee and the Employee agrees to be
employed by the Employer upon the terms and conditions hereinafter set forth.

 

1.2           Term.  The employment of the Employee by the
Employer as provided herein shall commence on the date hereof (the “Commencement
Date”) and shall terminate on July 31, 2011 (the “Initial Expiration
Date”), unless this Agreement is terminated earlier in accordance
with Article 4 herein, or unless the term of this Agreement is extended in
writing by the Employee and the Employer.

 

1.3           Office and Support.  The Employee shall be provided an office to
be located in Toronto, Ontario, and reasonable and necessary support staff
(determined upon agreement of the Employer and the Employee) at that location
and/or through other office location(s) of the Employer.

 

1.4           Place of Performance.  In connection with the Employee’s employment
by the Employer, the Employee shall be based out of Toronto, Ontario except for
required travel on the Employer’s business to an extent reasonable and
necessary for the performance of the duties of the Employee.

 

ARTICLE 2

DUTIES OF THE EMPLOYEE

 

2.1           Duties.

 

2.1.1        The Employee shall initially
be employed with the title of Vice President of Exploration.  In that capacity, Employee shall report to
the Chief Executive Officer (“CEO”) and shall have duties and responsibilities
as may be assigned to him by the CEO. 
The Employer and Employee shall jointly prepare an addendum to this
Agreement to be completed within 30-60

 

1

 

days
of the Commencement Date, which addendum shall provide a mutually agreed
description of the Employee’s duties.

 

2.1.2        The Employer shall pay for
educational undertakings required to meet these duties.

 

2.1.3        (i)            During the term of this
Agreement, the Parties agree that Employee may also provide consulting or other
services to Lexam Explorations Inc. (“Lexam”) and/or McEwen Capital, such
services to occupy no more than 35 days of the Employee’s time per year.  Employee agrees that he shall endeavor to
schedule his time such that any work performed for Lexam or McEwen Capital
shall not interfere with his duties to Employer.

 

(ii)           In recognition of this
arrangement, Employer shall compensate Employee at the full rate set forth in Section 3.1
of this Agreement and Lexam and McEwen Capital shall each
reimburse the Employer for an amount equal to 10% of such compensation
(including any benefits and payments on account of termination from employment)
for the services to be provided to those entities.  Such reimbursement shall be made not less
frequently than semi-annually upon presentation of an invoice from Employer.

 

(iii)          The allocation of Employee’s
time between Employer, on the one hand, and Lexam and McEwen Capital, on the
other, may be reviewed periodically by the Board of Directors of Employer to
insure that the allocation is fair to all parties involved.  Any change in the allocation shall be
evidenced by an amendment to this Agreement.

 

2.2           Extent of Duties.  Other than as set forth in Section 2.1.2
above, the Employee shall devote substantially his full time, best efforts,
attention and energies to the business of the Employer.  During the term of this Agreement, the
Employee shall not be employed with or provide services to any person, firm or
entity other than the Employer, Lexam and McEwen Capital; provided, however,
that Employee may participate in charitable, civic and benevolent organizations
and provided further that Employee may participate in investments for his own
account or for the account of entities in which he has an equity interest, so
long as none of these endeavors interfere with his obligations to the Employer.

 

2.3           Disclosure of Information.

 

2.3.1        The Employee acknowledges
that all records, data, materials and information and copies thereof and all
information relating to any trade secrets, products, procedures, customers,
suppliers, services, pricing policies and practice, cost structure, business,
prospects and business opportunities and plans of the Employer and all
financial information and other information relating to the business and affairs
of the Employer (all of which are hereinafter collectively called the “Confidential Information”) disclosed to,
obtained or acquired by the Employee, is and shall remain the exclusive
property of the Employer, the disclosure of which to the competitors thereof or
to the general public would be highly detrimental to the best interests of the
Employer.  Therefore, the Employee agrees
that:

 

2

 

(i)            The Employee will hold in
strictest confidence and not disclose, reproduce, publish or use in any manner
during his employment or at any time after termination for any reason, without
the express authorization of the Chairman and CEO or Board of Directors of the
Employer, any Confidential Information, except as such disclosure or use may be
required in connection with the Employee’s work for the Employer.

 

(ii)           Upon request or upon the
date of termination of the Employee’s employment, the Employee will deliver to
the Employer, and not retain or deliver to anyone else, any and all
Confidential Information and all notes, memoranda, documents and in general,
any and all materials, electronic or written, and any and all material or
property relating to the Employer’s business.

 

2.3.2        In the event of a breach or
threatened breach by the Employee of the provisions of this Article 2.3,
the Employer shall be entitled to a restraining order or an injunction (i) restraining
the Employee from disclosing, in whole or in part, any Confidential Information
or from rendering any services to any person, firm, corporation, association or
other entity to whom such Confidential Information, in whole or in part, has
been disclosed or is threatened to be disclosed; and/or (ii) requiring
that the Employee deliver to the Employer all Confidential Information,
documents, notes, memoranda and any and all discoveries or other material upon
termination of the Employee’s employment with the Employer.  Nothing herein shall be construed as
prohibiting the Employer from pursuing other remedies available to the Employer
for such breach or threatened breach, including the recovery of damages from
the Employee.  The Employee’s obligations
in this Article 2.3 shall survive the termination of the Employee’s
employment with the Employer, howsoever caused.

 

ARTICLE 3

COMPENSATION OF THE EMPLOYEE

 

3.1           Salary and Perquisites.  (a) For his services under this
Agreement, the Employee shall be entitled to receive a salary at the rate of
Cdn $125,000 per annum; (b) the salary provided shall be paid in equal
semi-monthly installments in accordance with the Employer’s normal practices; (c) the
Employee shall also be entitled to participate in any other compensation and
perquisite plans provided by the Employer to executive employees of the
Employer, subject to the applicable terms of such compensation and perquisite
plan as are determined in the discretion of the Employer in relation to the
Employee; and (d) Employer shall make and remit all required withholding
and employment taxes on any compensation paid or payable to Employee hereunder.

 

3.2           Vacation and Public Holidays.  The Employee shall be entitled to four (4) weeks
paid vacation per year of employment (accrued on a monthly basis) provided that
the Employee shall schedule such vacation time with the agreement of the CEO
and shall use his best efforts to schedule such vacation time so as not to
substantially interfere with the Employer’s business.  Vacation must be taken within 24 months of
the date upon which such vacation accrued to the Employee, and any vacation not
taken by such date shall be forfeited subject to the requirements of the
Ontario Employment Standards Act.  The Employee shall also be entitled to take
all paid public holidays customarily extended by the Employer to executive
employees of the Employer.

 

3

 

3.3           Medical, Health and Dental
Insurance Coverage.  The
Employer shall provide medical, health and dental insurance coverage to the
Employee and his spouse with coverage generally consistent with that extended
by the Employer to other executive employees of the Employer.  Such coverage shall be subject to the
conditions set out in the applicable plans and/or insurance contracts.

 

3.4           Expense Reimbursement.  The Employee shall be entitled to prompt reimbursement
for all reasonable and allocable expenses incurred by the Employee in the
performance of his duties hereunder.  The
Employee shall provide the Employer with proper receipts and substantiation for
such expenses.  The Employer shall
advance reasonable estimates of such expenses upon request of the Employee.

 

3.5           Stock Options.  Subject to the decision of the Board of
Directors of the Employer to grant such stock options, and effective upon the
date of such decision, the Employee shall be granted stock options to purchase
150,000 shares of common stock of the Employer. 
The options shall be exercisable for a period of ten years from the date
of grant and shall vest in three equal, annual installments beginning with the
first anniversary of the Commencement Date and continuing on subsequent
anniversaries so long as an Employee remains employed by the Employer.  The exercise price for each such stock option
shall be equal to the closing sales price of the common shares of the Employer
on the American Stock Exchange (AMEX) on the date that the option is approved
by the Board of Directors.  The options
shall be granted pursuant to, and subject to the conditions of, the US Gold
Corporation Equity Incentive Plan, as the same may be amended from time to
time.

 

ARTICLE 4

TERMINATION OF EMPLOYMENT

 

4.1           TERMINATION.  This Agreement and the Employee’s employment
hereunder may be terminated only as follows:

 

4.1.1        Death.  This Agreement shall automatically terminate
upon the death of the Employee during the term of this Agreement.  In such event, the Employer shall pay to the
Employee’s estate (i) any unpaid wages earned by the Employee to the date
of his death, (ii) any accrued and unpaid vacation pay earned by the
Employee, and (iii) an amount equal to six (6) months of the Employee’s
base salary then in effect, such amount to be paid within three months after
the date of the Employee’s death.  Upon
payment of such amounts, the Employer shall have no further obligations to the
Employee.

 

4.1.2        Disability.  This Agreement shall not terminate
upon the temporary disability of the Employee. 
The Employer may terminate this Agreement upon the permanent disability
of the Employee, defined as a condition which prevents the Employee from
performing his duties to the Employer on a regular basis for a period of more
than 3 months with or without reasonable accommodation, subject to the
requirements of the Ontario Human Rights Code.  In the event that the Employee’s employment
terminates due to a permanent disability of the Employee under this Article 4.1.2
during the term of this Agreement, the Employer shall pay the Employee an 

 

4

 

amount
equal to the lesser of (a) one (1) year of the Employee’s base
salary; and (b) the amount of the Employee’s base salary in respect of the
period between the date of termination of employment due to such permanent
disability and the Initial Expiration Date, in either event, payable within
three months after the date of such termination.  Upon payment of such amount, the Employer
shall have no further obligations to the Employee.

 

4.1.3        Termination by the Employer
for Cause.  The
Employer may terminate the Employee’s employment hereunder at any time without
notice for “Cause.”  For purposes of this
Agreement, “Cause” shall mean: (1) the willful and continued failure by
the Employee substantially to perform his duties hereunder (other than any such
failure resulting from the Employee’s permanent disability as defined in Article 4.1.2
herein), after demand for substantial performance is delivered by the Employer
that specifically identifies the manner in which the Employer believes the
Employee has not substantially performed his duties and giving 30 days to the
Employee to cure such failure; (2) the willful engaging by the Employee in
misconduct which is materially injurious to the Employer, other than business
decisions made in good faith; (3) the willful violation by the Employee of
the provisions of this Agreement, (4) dishonesty of the Employee, or (5) the
Employee’s commission of an offence under the Criminal
Code.  In the event of a
termination for Cause, the Employer shall pay to the Employee any unpaid wages
earned by the Employee to the date of his termination and any accrued and
unpaid vacation pay earned by the Employee. 
All stock options held by the Employee at the termination date shall
immediately cease and terminate on that date. 
The Employer shall have no further obligations to the Employee.

 

4.1.4        Termination by the Employer
Without Cause. 
Notwithstanding anything else in this Agreement, the Employer may
terminate the Employee’s employment without Cause by providing the Employee
with either one (not both) of the following: (a) one (1) year’s
notice or payment of the Employee’s base salary for one year in lieu of such
notice or, (b) payment of the Employee’s base salary for the period
between the date of termination of the Employee’s employment and the Initial
Expiration Date, if such period is less than one (1) year.

 

4.1.5        Termination by the Employee.  The Employee may terminate this Agreement
without advance notice upon the occurrence of any of the following events:

 

(i)            the sale by the Employer of
substantially all of its assets to a single purchaser or to a group of
affiliated purchasers;

(ii)           the sale, exchange or other
disposition in one transaction or a series of related transactions, of at least
50% of the outstanding voting shares of the Employer;

(iii)          a decision by
the Employer to terminate its business and liquidate its assets;

(iv)          the merger or consolidation
of the Employer with another entity or any other type of reorganization where
the Employer is not the surviving entity; or

(v)           a fundamental
change in the Employee’s scope of authority or duties without his written
consent, or the Employee is required to report to any other person or committee
other than the Board of Directors and the Chairman of the Board.

 

5

 

In
the event that the Employee terminates this Agreement for any reason
articulated above, the Employer shall pay to the Employee an amount equal to
the lesser of (a) one year of Employee’s base salary; and (b) the
amount of Employee’s base salary in respect of the period between the date of
termination of such employment and the Initial Termination Date.  Upon payment of such amount, the Employer
shall have no further obligation to the Employee.

 

4.1.6.       Other Termination by the
Employee.  The
Employee may terminate this Agreement for reasons other than as provided in Article 4.1.5
herein, by providing at least 120 days’ prior written notice to the
Employer.  Subject to the requirements of
the Employment Standards Act, the Employer
may in its discretion waive all or part of such period of notice.  In the event of such termination of
employment, the Employer shall pay to the Employee any unpaid wages earned by
the Employee to the date of termination plus any accrued and unpaid vacation
pay earned by the Employee.

 

4.1.7        Notice of Termination to be
in Writing.  Any
termination of the Employee’s employment by the Employer or by the Employee
shall be communicated by written notice of termination to the other party.

 

ARTICLE 5

INDEMNIFICATION

 

5.1           Indemnification.  The Employer agrees to execute an
indemnification agreement with Employee not later than the Commencement Date in
the form attached hereto as Exhibit A and incorporated herein by
reference.

 

ARTICLE 6

GENERAL
PROVISIONS

 

6.1           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the Province of Ontario and the laws
of Canada in force therein.

 

6.2           Entire Agreement.  This Agreement supersedes any and all other
agreements, whether oral or in writing, between the parties with respect to the
employment of the Employee by the Employer. 
Each party to this Agreement acknowledges that no representations,
inducements, promises, or agreements, orally or otherwise, have been made by
either party, or anyone acting on behalf of any party, that are not embodied in
this Agreement, and that no agreement, statement, or proxies not contained in
this Agreement shall be valid or binding.

 

6.3           Assignment.  The Employee may not assign his rights and
obligations under this Agreement to any person or entity except with the
express consent in writing of the Employer. 
Subject to the Employee’s rights under Article 4.1.5 herein, the
Employer may assign its rights and obligations under this Agreement to any
affiliate of the Employer or successor to the Employer’s business by providing
notice of such assignment in writing to the Employee.

 

6.4           Notices.  For purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given 

 

6

 

when
delivered personally or by registered mail, return receipt requested, postage
prepaid, or by fax or e-mail with receipt confirmation followed by mail
delivery, addressed as follows:

 

	
  If to the Employee:

  	
  Ian Ball

  
	
   

  	
  55 Wellington Street

  
	
   

  	
  Bowmanville, ON

  
	
   

  	
  L1C 1V4

  
	
   

  	
   

  
	
  If to the Employer:

  	
  Robert R. McEwen

  
	
   

  	
  Chairman and CEO

  
	
   

  	
  US Gold Corporation

  
	
   

  	
  99 George St., 3rd Floor

  
	
   

  	
  Toronto, Ontario, M5A 2N4

  
	
   

  	
  Fax (647) 258-0408

  
	
   

  	
  e-mail: rob@usgold.com

  

 

or
such other address as either party may have furnished to the other in writing
in accordance herewith.  Such notice
shall be deemed effective upon personal delivery or three days following
delivery by certified mail at the addresses set forth above.

 

6.5           Severability.  If any provision of this Agreement is
rendered unenforceable by any court of competent jurisdiction, such
unenforceability shall not affect the enforceability of any other provision of
this Agreement.

 

6.6           Section Headings.  The section headings used in this Agreement
are for convenience only and shall not affect the construction of any terms of
this Agreement.

 

6.7           Amendments.  This Agreement may be amended only by written
agreement signed by both the Employer and the Employee.

 

6.9           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall constitute an original but all of which, when
taken together, shall constitute only one legal instrument.  This Agreement shall become effective when an
original or copy thereof bears the signatures of both parties hereto.  It shall not be necessary in making proof of
this Agreement to produce or account for more than one such counterpart
instrument.

 

6.10         Arbitration.  The Employer and the Employee agree that any
issue or dispute arising out of or relating to the application, interpretation,
effect or alleged violation of the Agreement shall be finally settled by
arbitration in the City of Toronto in the Province of Ontario in accordance
with the then existing National Arbitration
Rules of the ADR Institute of Canada, Inc. and the arbitration award may be entered in any
court having jurisdiction thereof.  The
prevailing party in such arbitration proceeding shall be entitled to
reimbursement of its reasonable legal fees and costs by the non-prevailing
party, as determined by the arbitrator(s). 
Each party shall pay fifty percent (50%) of all fees and costs of the
arbitrator(s) as well as all the fees and costs of its own counsel and
witnesses, and all other fees and costs associated with the preparation and
presentation of the party’s case, unless the arbitrator(s) decide
otherwise.

 

7

 

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

 

EMPLOYER:

US Gold
Corporation, a Colorado corporation

 

 

	
  By:

  	
  /s/
  Robert R. McEwen

  	
   

  

Robert
R. McEwen, Chairman of the

Board
of Directors and Chief Executive Officer

 

 

EMPLOYEE:

Ian
Ball

 

	
  /s/ Ian J. Ball

  	
   

  

 

8

 

EXHIBIT A

 

INDEMNIFICATION AGREEMENT

 

This
Agreement is made effective as of the        day
of
                    
200    , by and between US Gold Corporation, a Colorado
Corporation (“the Company”), and the undersigned director and/or officer of the
Company (the “Indemnitee”) with reference to the following facts:

 

The
Indemnitee is currently serving as a director and/or officer of the Company and
the Company wishes the Indemnitee to continue in such capacity, and, if
requested in the future, to serve in such other positions with the Company and
its subsidiaries as the Company may determine. 
The Indemnitee is willing, under certain circumstances, to continue
serving as a director and/or officer of the Company.

 

The
Indemnitee does not regard the indemnities available under the Company’s
Articles of Incorporation (the “Articles of Incorporation”) and Bylaws (the “Bylaws”)
as adequate to protect the Indemnitee against the risks of personal liability
associated with the Indemnitee’s service to the Company.  In this connection the Company and the
Indemnitee now agree they should enter into this Indemnification Agreement in
order to provide greater protection to Indemnitee against such risks of service
to the Company.

 

In
order to induce the Indemnitee to continue to serve as a director and/or
officer of the Company and in consideration of the Indemnitee’s continued
service, the Company hereby agrees to indemnify the Indemnitee as follows:

 

1
..            Indemnity.  The Company will indemnify the Indemnitee,
his executors, administrators or assigns, for any Expenses (as defined below)
which the Indemnitee is or becomes legally obligated to pay in connection with
any Proceeding.  As used in this
Agreement the term “Proceeding” includes any threatened, pending or completed claim,
action, suit or proceeding, whether brought by or in the right of the Company
or otherwise and whether of a civil, criminal, administrative or investigative
nature, in which the Indemnitee may be or may have been involved as a party or
otherwise, by reason of the fact that Indemnitee is or was a director or
officer of the Company, by reason of any actual or alleged error or
misstatement or misleading statement made or suffered by the Indemnitee, by
reason of any action taken by him or of any inaction on his part while acting
as such director or officer, or by reason of the fact that he was serving at
the request of the Company as a director, trustee, officer, fiduciary, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise; provided, that in each such case Indemnitee acted in good faith and
in a manner which he reasonably believed to be in or not opposed to the best
interests of the Company, and, in the case of a criminal proceeding, had no
reasonable cause to believe that his conduct was unlawful.  As used in this Agreement, the term “other
enterprise” includes (without limitation) employee benefit plans and
administrative committees thereof, and the term “fines” includes (without
limitations) any excise tax assessed with respect to any employee benefit plan.

 

A-1

 

2.             Expenses.  As used in this Agreement, the term “Expenses”
includes, without limitation, damages, judgments, fines, penalties, settlements
and costs, reasonable attorneys’ fees and disbursements and costs of attachment
or similar bonds, and investigations in connection with investigating,
defending, being a witness or participating in any Proceeding, and any expenses
of establishing a right to indemnification under this Agreement.

 

3.             Enforcement.  If a claim or request under this Agreement is
not paid by the Company, or on its behalf, within thirty days after a written
claim or request has been received by the Company, the Indemnitee may at any time
thereafter bring suit against the Company to recover the unpaid amount of the
claim or request and if successful in whole or in part, the Indemnitee shall be
entitled to be paid also the Expenses of prosecuting such suit.

 

4.             Subrogation.  In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all papers required and
shall do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable the Company effectively to
bring suit to enforce such rights; provided, however, that neither this right
of subrogation nor the exclusion set forth in Section 5(b) below
shall apply to any right of recovery of the Indemnitee or any payment received
by the Indemnitee from an entity that is the primary employer of the Indemnitee
or on whose behalf the Indemnitee serves as a director and/or officer of the
Company or an affiliate of any such entity.

 

5.             Exclusions.  The Company shall not be liable under the
Agreement to make any payment in connection with any claim made against the
Indemnitee:

 

(a)           to the extent
that payment is actually made to the Indemnitee under a valid, enforceable and
collectible insurance policy;

 

(b)           to the extent
that the Indemnitee is indemnified and actually paid otherwise than pursuant to
this Agreement, subject to Section 4;

 

(c)           in connection
with a judicial action by or in the right of the Company, in respect of any
claim, issue or matter as to which the Indemnitee shall have been adjudged to
be liable for negligence or misconduct in the performance of his duty to the
Company unless, and only to the extent that, any court in which such action was
brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, the Indemnitee is
fairly and reasonably entitled to indemnity for such expenses as such court
shall deem proper;

 

(d)           if it is proved
by final judgment in a court of law or other final adjudication to have been
based upon or attributable to the Indemnitee’s having gained any personal
profit or advantage to which he was not legally entitled;

 

(e)           for a
disgorgement of profits made from the purchase and sale by the Indemnitee of
securities pursuant to Section 16(b) of the Securities Exchange Act
of 1934 and amendments thereto or similar provisions of any state statutory law
or common law;

 

A-2

 

(f)            brought about
or contributed to by the dishonesty of the Indemnitee; provided, however,
notwithstanding the foregoing, the Indemnitee shall be protected under this
Agreement as to any claims upon which suit may be brought against him by reason
of any alleged dishonesty on his part, unless a judgment or other final
adjudication thereof adverse to the Indemnitee shall establish that he
committed (i) acts of active and deliberate dishonesty, (ii) with
actual dishonest purpose and intent, (iii) which acts were material to the
cause of action so adjudicated; or

 

(g)           for any
judgment, fine or penalty which the Company is prohibited by applicable law
from paying as indemnity or for any other reason.

 

6.             Indemnification of Expenses
of Successful Party.  Notwithstanding any
other provision of this Agreement, to the extent that the Indemnitee has been
successful on the merits or otherwise in defense of any Proceeding or in
defense of any claim, issue or matter therein, including dismissal without
prejudice, Indemnitee shall be indemnified against any and all Expenses
incurred in connection therewith.

 

7.             Partial
Indemnification.  If the Indemnitee is
entitled under any provision of this Agreement to indemnification by the
Company for a portion of any Expenses, but not for the total amount thereof,
the Company shall indemnify the Indemnitee for the portion of such Expenses to
which the Indemnitee is entitled.

 

8.             Advance of Expenses.  Expenses reasonably and necessarily incurred
by the Indemnitee in connection with any Proceeding, except the amount of any
settlement, shall be paid by the Company in advance upon request of the
Indemnitee that the Company pay such Expenses. 
The Indemnitee hereby undertakes to repay to the Company the amount of
any Expenses theretofore paid by the Company to the extent that it is
ultimately determined that such Expenses were not reasonable or that the
Indemnitee is not entitled to indemnification in respect thereof.

 

Such
advances shall be made by the Company unless: (a) the Board of Directors
determines, by a majority vote of a quorum of disinterested directors based on
clear and convincing evidence known to the Board of Directors at the time such
determination is made, that the Indemnitee would not be entitled to
indemnification under applicable law, or (b) if such a quorum is not
obtainable or a quorum of disinterested directors so directs, independent legal
counsel determines, based on clear and convincing evidence known to the counsel
at the time such determination is made, that Indemnitee would not be entitled
to indemnification under applicable law.

 

9.             Notice and Defense of
Claim.  The Indemnitee, as a condition
precedent to his right to be indemnified under this Agreement, shall give to
the Company notice in writing as soon as practicable of any claim made against
him for which indemnity will or could be sought under this Agreement.  Notice to the Company shall be given at its
principal office, shall be directed to the Corporate Secretary (or such other
address as the Company shall designate in writing to the Indemnitee) and shall
be effective only upon actual receipt. 
In addition, the 

 

A-3

 

Indemnitee
shall give the Company such information and cooperation as it may reasonably
require and as shall be within the Indemnitee’s power.

 

With
respect to any such Proceeding: (a) the Company will be entitled to
participate therein at its own expense; and (b) except as otherwise
provided below, to the extent that it may wish, the Company jointly with any
other indemnifying party similarly notified will be entitled to assume the
defense thereof, with counsel reasonably satisfactory to Indemnitee.  After notice from the Company to Indemnitee,
given within a reasonable time, of its election so to assume the defense
thereof, the Company will not be liable to Indemnitee under this Agreement for
any legal or other expenses subsequently incurred by Indemnitee in connection
with the defense of such Proceeding except as otherwise provided below.  Indemnitee shall have the right to employ his
own counsel in such Proceeding but the fees and expenses of such counsel
incurred after notice from the Company of its assumption of the defense thereof
shall be at the expense of Indemnitee unless (i) the employment of counsel
by Indemnitee has been authorized by the Company, or (ii) Indemnitee shall
have obtained the written opinion of reputable counsel with expertise in such
matters (such counsel to be reasonably satisfactory to a majority of
disinterested directors) that there may be one or more defenses available to
Indemnitee that could reasonably be expected to result in a conflict of
interest between the Company and Indemnitee in the conduct of the defense of
such action, in each of which cases the reasonable fees and expenses of
Indemnitee’s counsel shall be at the expense of the Company.  The Company shall not be entitled to assume
the defense of any Proceeding brought by or on behalf of the Company or that is
the subject of the opinion provided by Indemnitee under clause (ii) above.

 

The
Company shall not be liable to indemnify Indemnitee under this Agreement for
any amounts paid in settlement of any Proceeding effected without its prior
written consent.  Indemnitee shall
execute and deliver such agreements, releases and other documents as the
Company may reasonably request to effect a settlement of any Proceeding.  Without Indemnitee’s consent, the Company
shall not enter into any settlement that provides for any action by Indemnitee
other than the payment of amounts against which Indemnitee is entitled to
indemnification hereunder.  In the event
that the Company proposes to settle any Proceeding by the payment of damages
against which Indemnitee is entitled to indemnification hereunder and in an
amount that the plaintiff has indicated would be acceptable, and the Indemnitee
refuses to enter into a reasonable settlement agreement, the Company shall not
thereafter be responsible for any costs of defense or the amount by which any
judgment or settlement thereafter paid exceeds the damages that the Company
proposed to pay in settlement.  Neither
the Company nor Indemnitee will unreasonably withhold their consent to any
proposed settlement.

 

10.           No Employment
Agreement.  Nothing contained herein
shall be deemed to create a contract of employment between the Company and
Indemnitee.

 

11.           Counterparts.  This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one instrument.

 

12.           Indemnification Hereunder
Not Exclusive.  Nothing herein shall be
deemed to diminish or otherwise restrict the Indemnitee’s right to
indemnification under any provision of the Articles of Incorporation or Bylaws
of the Company and amendments thereto or under law.

 

A-4

 

13.           Governing Law.  This Agreement shall be governed by and
construed in accordance with Colorado law without giving effect to the
principles of conflicts of laws.

 

14.           Coverage.  The provisions of this Agreement shall apply
with respect to the Indemnitee’s service in any of the capacities described in Section 1
above prior to as well as after the date of this Agreement.  The right of Indemnitee to be indemnified
hereunder shall continue after the termination of Indemnitee’s service as an
officer and/or director of the Company with respect to all periods prior to
such termination.

 

15.           Amendments; Waivers.  No supplement, modification or amendment of
this Agreement shall be binding- unless executed in writing by both of the
parties hereto.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provision hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

16.           Binding Effect.  This Agreement shall be binding upon and inure
to the benefit of and be enforceable by both of the parties hereto and their
respective successors, assignees (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the
business and/or assets of the Company), heirs, executors and personal and legal
representatives.

 

17.           Severability.  If any provision of this Agreement (including
any provision within a single section, paragraph or sentence) is held by a
court of competent jurisdiction to be invalid. void or otherwise unenforceable
in any respect, the validity and enforceability of any such provision in every
other respect and of the remaining provisions of this Agreement shall not be in
any way impaired and shall remain enforceable to the full extent permitted by
law.

 

18.           Notices.  All notices, requests, demands and other
communications which are required or may be given under this Agreement shall be
in writing and shall be deemed to have been duly given when delivered in person
(by express courier or otherwise), by telecopier or three days after being
deposited in the United States mail, certified mail, return receipt requested,
first class postage prepaid, as follows:

 

	
  If to the Company:

  	
  Name: US Gold Corporation

  
	
   

  	
  Address: 2201 Kipling St.,
  Suite 100

  
	
   

  	
  Lakewood, Colorado 80215

  
	
   

  	
  Tele No.: 303-238-1437

  
	
   

  	
   

  
	
  If to Indemnitee:

  	
  Name: Ian Ball

  
	
   

  	
  Address: 55 Wellington
  Street

  
	
   

  	
  Bowmanville, ON L1C 1V4

  
	
   

  	
  Tele No.: (866) 441-0690
  Ext. 110

  

 

A-5

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and signed as of the day and year first above written.

 

US GOLD CORPORATION

 

 

	
  By:

  	
  /s/
  Robert R. McEwen

  	
   

  
	
  Name:

  	
  Robert
  R. McEwen

  	
   

  
	
  Title:

  	
  Chairman
  and CEO

  	
   

  

 

 

INDEMNITEE

 

 

	
  By:

  	
  /s/
  Ian Ball

  	
   

  
	
   

  	
  Printed
  Name:

  	
   

  

 

A-6

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