Document:

Form of Medium-Term Notes, Series K, Notes Linked to 3 Month LIBOR

 Exhibit 4.2 
 [Face of Note] 
 Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation (“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede &
Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
  

			
	CUSIP NO. 94986RFR7	  	PRINCIPAL AMOUNT: $             
	REGISTERED NO.     	  	

 WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 
 Due Nine Months or More From Date of Issue 
 Notes due September 30,
2016 
 WELLS FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware
(hereinafter called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, the principal
sum of                                         
DOLLARS ($             ) on September 30, 2016 (the “Stated Maturity Date”) and to pay interest thereon from September 30, 2011 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for quarterly on March 30, June 30, September 30 and December 30, commencing December 30, 2011 (each, an “Interest Payment Date”), at the rate
per annum specified below until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest next preceding such Interest Payment Date. The Regular Record Date for an Interest Payment Date
shall be the fifteenth calendar day, whether or not a Business Day, prior to such Interest Payment Date. If an Interest Payment Date is not a Business Day, interest on this Security shall be payable on the next day that is a Business Day, with the
same force and effect as if made on such Interest Payment Date, and without any interest or other payment with respect to the delay. “Business Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York or Minneapolis, Minnesota. 
 Except as described below for the first Interest Period, on each Interest Payment Date, interest will be paid for the period commencing on and including the immediately preceding

 
Interest Payment Date and ending on and including the day immediately preceding that Interest Payment Date. This period is referred to as an “Interest Period.” The first Interest
Period will commence on and include September 30, 2011 and end on and include December 29, 2011. Interest on this Security will be computed on the basis of a 360-day year of twelve 30-day months. 

The interest rate on this Security that will apply during the first four Interest Periods (up to and including the Interest Period ending
September 29, 2012) will be equal to 2.00% per annum. For all Interest Periods commencing on or after September 30, 2012, the interest rate on this Security will be determined by the calculation agent for this Security (the
“Calculation Agent”) and will be equal to 3 month LIBOR on the Determination Date for such Interest Period plus 0.50%, subject to the Maximum Interest Rate. 
 The “Determination Date” for an Interest Period commencing on or after September 30, 2012 will be two London Banking Days prior to the first day of such Interest Period. A
“London Banking Day” is any day on which dealings in deposits in U.S. dollars are transacted in the London interbank market. 
 “3 month LIBOR” means, for any Determination Date, the arithmetic mean of the offered rates for deposits in U.S. dollars having a 3 month maturity, commencing on the second London
Banking Day immediately following that Determination Date that appear on the Designated LIBOR Page as of 11:00 a.m., London time, on that Determination Date, if at least two offered rates appear on the Designated LIBOR Page, provided that if
the Designated LIBOR Page by its terms provides only for a single rate, that single rate will be used. The “Designated LIBOR Page” means the display on Reuters, or any successor service, on page LIBOR01, or any other page as may
replace that page on that service, for the purpose of displaying the London Interbank rates for U.S. dollars. 
 If
(i) fewer than two offered rates appear or (ii) no rate appears and the Designated LIBOR Page by its terms provides only for a single rate, then the Calculation Agent will request the principal London offices of each of four major banks in
the London interbank market, as selected by the Calculation Agent, to provide the Calculation Agent with its offered quotation for deposits in U.S. dollars for a 3 month period commencing on the second London Banking Day immediately following that
Determination Date to prime banks in the London interbank market at approximately 11:00 a.m., London time, on that Determination Date and in a principal amount that is representative of a single transaction in U.S. dollars in that market at
that time. If at least two quotations are provided, 3 month LIBOR determined on that Determination Date will be the arithmetic mean of those quotations. 
 If fewer than two quotations are provided, 3 month LIBOR will be the arithmetic mean of the rates quoted at approximately 11:00 a.m. in New York, New York on that Determination Date by three major
banks in New York, New York selected by the Calculation Agent for loans in U.S. dollars to leading European banks, having a 3 month maturity and in a principal amount that is representative of a single transaction in U.S. dollars in that market at
that time. 

  
 2 

 If the banks so selected by the Calculation Agent are not quoting as set forth above, 3
month LIBOR on such Determination Date will be determined by the Calculation Agent in a commercially reasonable manner. 
 The
“Maximum Interest Rate” is 6.00% per annum. 
 The Calculation Agent shall, upon the request of a Holder
of this Security, provide the interest rate then in effect and, if determined, the interest rate that will become effective for the next Interest Period. All calculations of the Calculation Agent, in the absence of manifest error, shall be
conclusive for all purposes and binding on the Company and the Holder hereof. The Calculation Agent shall notify the Paying Agent of each determination of the interest applicable to this Security promptly after the determination is made. Wells Fargo
Securities, LLC will initially act as Calculation Agent. The Company may appoint a successor Calculation Agent with the written consent of the Trustee. 
 Any interest not punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less
than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture. 
 Payment of interest on this Security will be
made in immediately available funds at the office or agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota in such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that, at the option of the Company, payment of interest may be paid by check mailed to the Person entitled thereto at such Person’s last address as it appears in the Security Register or
by wire transfer to such account as may have been designated by such Person. Payment of principal of and interest on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for
that purpose in the City of Minneapolis, Minnesota. Notwithstanding the foregoing, for so long as this Security is a Global Security registered in the name of the Depositary, payments of principal and interest on this Security will be made to the
Depositary by wire transfer of immediately available funds. 
 This Security is not subject to redemption at the option of the
Company or, except as set forth in the next sentence, repayment at the option of the Holder hereof prior to September 30, 2016. This Security may be subject to repayment if requested by the authorized representative of a beneficial owner of
this Security as described on the reverse hereof under “Repayment upon Exercise of Survivor’s Option.” This Security is not entitled to any sinking fund. 

 
  

  
 3 

 Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall
not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 [The remainder of this page
has been left intentionally blank] 

  
 4 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 

DATED:                      

 

											
		 		 	WELLS FARGO & COMPANY
				
		 		 	By:	 	  

		 		 		 	  

		 		 		 	Its:	 	  

						
	[SEAL]	 		 		 		 		 	
				
		 		 	Attest:	 	  

		 		 		 		 	  

		 		 		 		 	Its:	 	  

 TRUSTEE’S CERTIFICATE OF 
 AUTHENTICATION 
 This is one of the Securities of the 

series designated therein described 
 in the
within-mentioned Indenture. 
  

			
	CITIBANK, N.A.,
		 	as Trustee
		
	By:	 	  

		 	Authorized Signature
	
	 OR

	
	 WELLS FARGO BANK, N.A.,
as Authenticating Agent for the Trustee

		
	By:	 	  

		 	Authorized Signature

  
 5 

 [Reverse of Note] 
 WELLS FARGO & COMPANY 
 MEDIUM-TERM NOTE, SERIES K

 Due Nine Months or More From Date of Issue 
 Notes due September 30, 2016 
 This Security is one of a duly
authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an indenture dated as of July 21, 1999, as amended or supplemented from time to time (herein
called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities
are, and are to be, authenticated and delivered. This Security is one of the series of the Securities designated as Medium-Term Notes, Series K, of the Company, which series is limited to an aggregate principal amount or face amount, as applicable,
of $25,000,000,000 or the equivalent thereof in one or more foreign or composite currencies. The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity- or currency-based
indices, exchange traded funds, securities, commodities, currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed rate
or a floating rate. The Securities of this series may mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies.

 Article Sixteen of the Indenture shall not apply to this Security. 

The Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented by one
or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities issued to and registered in the names of, the beneficial owners or their nominees. 

The Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of
interest against a Holder of this Security. 
 Modification and Waivers 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the
Securities at the time Outstanding of all series to be affected, acting together as a class. The Indenture also contains 

  
 6 

 
provisions permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting together as a
class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain past defaults under the Indenture and their consequences may be waived under the Indenture by the
Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Any such consent or waiver by the Holder of this Security shall be conclusive and binding
upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 Defeasance 
 Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating to defeasance at any time of (a) the entire
indebtedness on this Security and (b) certain restrictive covenants and certain Events of Default, upon compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions of
Section 401 of the Indenture shall apply to this Security. 
 Authorized Denominations 

This Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which is an
integral multiple of $1,000. 
 Repayment upon Exercise of Survivor’s Option 

The Company has agreed to repay beneficial ownership interests in this Security, if requested by the authorized representative of the
beneficial owner of such beneficial ownership interest following the death of the beneficial owner, so long as the beneficial ownership interest in this Security was acquired by the beneficial owner at least six months prior to the request (the
“Survivor’s Option”). 
 Upon the valid exercise of the Survivor’s Option and the proper tender of a
beneficial ownership interest in this Security for repayment, the Company will repay such beneficial ownership interest in this Security, in whole or in part, at a price equal to 100% of the principal amount of the deceased beneficial owner’s
beneficial interest in this Security, plus any accrued and unpaid interest to the date of repayment. 
 To be valid, the
Survivor’s Option must be exercised by or on behalf of the Person who has authority to act on behalf of a deceased beneficial owner of this Security under the laws of the applicable jurisdiction (including, without limitation, the personal
representative of or the executor of the estate of the deceased beneficial owner or the surviving joint owner with the deceased beneficial owner). 
 A beneficial owner of this Security is a Person who has the right, immediately prior to such Person’s death, to receive the proceeds from the disposition of such beneficial owner’s interest in
this Security, as well as the right to receive the principal amount of the deceased beneficial owner’s interest in this Security plus any accrued and unpaid interest thereon. 

  
 7 

 The death of a Person holding a beneficial ownership interest in this Security as a joint
tenant or tenant by the entirety with another Person, or as a tenant in common with the deceased holder’s spouse, will be deemed the death of a beneficial owner of that beneficial ownership interest in this Security, and the entire principal
amount of the deceased beneficial owner’s interest in this Security held in this manner will be subject to repayment by the Company upon exercise of the Survivor’s Option. However, the death of a Person holding a beneficial ownership
interest in this Security as tenant in common with a Person other than such deceased holder’s spouse will be deemed the death of a beneficial owner only with respect to such deceased Person’s interest in this Security, and only the
deceased beneficial owner’s percentage interest in that beneficial ownership interest in the principal amount of this Security will be subject to repayment. 
 The death of a Person who, during his or her lifetime, was entitled to substantially all of the beneficial ownership interests in this Security will be deemed the death of the beneficial owner of this
Security for purposes of the Survivor’s Option, regardless of whether that beneficial owner was the registered holder of this Security, if the beneficial ownership interest can be established to the satisfaction of the Paying Agent. A
beneficial ownership interest will be deemed to exist in typical cases of nominee ownership, ownership under the Uniform Transfers to Minors Act or Uniform Gifts to Minors Act, community property, or other joint ownership arrangements between a
husband and wife. In addition, the beneficial ownership interest in this Security will be deemed to exist in custodial and trust arrangements where one Person has all of the beneficial ownership interest in this Security during his or her lifetime.
In the case of a joint trust, the joint tenant rules above will apply to the respective beneficial ownership interests. 
 The
Company has the discretionary right to limit the aggregate principal amount of this Security as to which exercises of the Survivor’s Option will be accepted by the Company from the authorized representative for any individual deceased
beneficial owner of this Security in any calendar year to $500,000. In addition, the Company will not permit the exercise of the Survivor’s Option for any portion of this Security with a principal amount of less than $1,000, and the Company
will not permit the exercise of the Survivor’s Option if such exercise will result in this Security having a principal amount that is not an integral multiple of $1,000. 
 An otherwise valid election to exercise the Survivor’s Option may not be withdrawn. An election to exercise the Survivor’s Option will be accepted in the order that it was received by the Paying
Agent, except for any beneficial ownership interest in this Security the acceptance of which would contravene the limitation described above. Beneficial ownership interests in this Security accepted for repayment through the exercise of the
Survivor’s Option normally will be repaid on the first Interest Payment Date that occurs 20 or more calendar days after the date of the acceptance. Each tendered beneficial ownership interest in this Security that is not accepted in a calendar
year due to the application of the limitation described in the preceding paragraph will be deemed to be tendered in the following calendar year in the order in which all such beneficial interests were originally tendered. If a beneficial ownership
interest in this Security tendered through a valid exercise of the Survivor’s Option is not accepted, the Paying Agent will deliver a notice by first-class mail to the registered holder, at that registered holder’s last known address as
indicated in the Security Register, that states the reason that the beneficial ownership interest in this Security has not been accepted for repayment. 

  
 8 

 Since this Security is a Global Security, DTC, as depository, or its nominee will be treated
as the holder of this Security and will be the only entity that can exercise the Survivor’s Option. To obtain repayment of this Security pursuant to exercise of the Survivor’s Option, the deceased beneficial owner’s authorized
representative must provide the following items to the broker or other entity through which the beneficial interest in this Security is held by the deceased beneficial owner: 

 

	 	•	 	 appropriate evidence satisfactory to the Paying Agent that: 

 

	 	(a)	the deceased was a beneficial owner of this Security at the time of death and his or her interest in this Security was acquired by the deceased beneficial owner at
least six months prior to the request for repayment, 

  

	 	(b)	the death of the beneficial owner has occurred and the date of death, and 

  

	 	(c)	the representative has authority to act on behalf of the deceased beneficial owner; 

 

	 	•	 	 if the beneficial interest in this Security is held by a nominee or trustee of, or custodian for, or other Person in a similar capacity to, the
deceased beneficial owner, a certificate satisfactory to the Paying Agent from the nominee, trustee, custodian or similar Person attesting to the deceased’s beneficial ownership in this Security; 

 

	 	•	 	 a written request for repayment signed by the authorized representative of the deceased beneficial owner with the signature guaranteed by a member firm
of a registered national securities exchange or of the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust company having an office or correspondent in the United States; 

 

	 	•	 	 if applicable, a properly executed assignment or endorsement; 

 

	 	•	 	 tax waivers and any other instruments or documents that the Paying Agent reasonably requires in order to establish the validity of the beneficial
ownership in this Security and the claimant’s entitlement to payment; and 

  

	 	•	 	 any additional information the Paying Agent requires to evidence satisfaction of any conditions to the exercise of the Survivor’s Option or to
document beneficial ownership or authority to make the election and to cause the repayment of this Security. 

 In turn, the
broker or other entity will deliver each of these items to the Paying Agent and will certify to the Paying Agent that the broker or other entity represents the deceased beneficial owner. 

The Company retains the right to limit the aggregate principal amount of this Security as to which exercises of the Survivor’s
Option will be accepted by the Company from the authorized representative for any individual deceased beneficial owner in this Security in any calendar year as described above. All other questions regarding the eligibility or validity of any
exercise of the Survivor’s Option will be determined by the Paying Agent, in its sole discretion, which determination will be final and binding on all parties. 

  
 9 

 The broker or other entity will be responsible for disbursing payments received from the
Paying Agent to the authorized representative. Forms for the exercise of the Survivor’s Option may be obtained from the Paying Agent. 

Registration of Transfer 
 Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis, Minnesota, a new Security or Securities of this series, with the same
terms as this Security, in authorized denominations for an equal aggregate principal amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided therein and to the limitations
described below, without charge except for any tax or other governmental charge imposed in connection therewith. 
 This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a
clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in
its sole discretion determines that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event of Default with respect to the Securities represented hereby has occurred and
is continuing. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, bearing interest at the same rate, having the same date of issuance, Stated Maturity Date and
other terms and of authorized denominations aggregating a like amount. 
 This Security may not be transferred except as a whole
by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor.
Except as provided above, owners of beneficial interests in this Global Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture.

 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 Obligation of the Company Absolute 
 No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of
and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security. 

  
 10 

 No Personal Recourse 
 No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or
any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released. 

Defined Terms 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless
otherwise defined in this Security. 
 Governing Law 
 This Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles of conflicts of laws. 

  
 11 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations: 
  

					
	TEN COM	  	—	  	as tenants in common
			
	TEN ENT	  	—	  	as tenants by the entireties
			
	JT TEN	  	—	  	as joint tenants with right
		  		  	of survivorship and not
		  		  	as tenants in common

  

									
	UNIF GIFT MIN ACT	  	—	  	  
	  	Custodian	  	  

		  		  	(Cust)	  		  	(Minor)

  

	
	Under Uniform Gifts to Minors Act
	
	  

	(State)

 Additional abbreviations may also be used though not in the above list. 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 

 

	
	 Please Insert Social Security or

Other Identifying Number of Assignee

	
	  

  
  

 
  
  

 
 (PLEASE
PRINT OR TYPE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

  
 12 

 the within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and appoint
                                         attorney
to transfer the said Security on the books of the Company, with full power of substitution in the premises. 
  

									
	Dated:	 	  
	 		 	
					
		 		 		 		 	  

					
		 		 		 		 	  

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument
in every particular, without alteration or enlargement or any change whatever. 

  
 13U.S. Geothermal, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

EMPLOYMENT AGREEMENT 

This AGREEMENT made and dated as of the 29th day of September,
2011. 

BETWEEN: 

U.S.GEOTHERMAL, INC. 

(the "Company") 

AND: 

DANIEL KUNZ 

(the "Executive")

WHEREAS: 

A.         The Company and the Executive previously entered into an
employment agreement, dated May 18, 2010 (the “Original Agreement”)
pursuant to which the parties agreed to the terms and conditions of employment
of the Executive. The Original Agreement expired pursuant to its own terms on
March 31, 2011. 

B.         The Company and the Executive (the “Parties”) wish to
enter into a new employment agreement (this “Agreement”). 

        NOW THEREFORE THIS AGREEMENT WITNESSETH that in
consideration of the forgoing recitals and of the mutual covenants, agreements
and representations contained herein and other valuable consideration given by
each party hereto to the other, the receipt and sufficiency of which are hereby
acknowledged by each of the Parties, the Parties hereby agree as follows: 

	1. 	
      DEFINITIONS

1.1         Unless otherwise defined in the body of this
Agreement, defined terms have the meanings ascribed to them in Schedule "A" of
this Agreement. 

	2. 	
      EMPLOYMENT

2.1     Position. The Company agrees to
employ the Executive as Chief Executive Officer of the Company. The Executive
shall report directly to the Board of Directors (the “Board”). The Executive
shall perform, observe and conform to such duties and instructions as from time
to time are lawfully assigned or communicated to the Executive on behalf of the
Company by the Board and on behalf of such affiliated companies designated by
the Company as requiring the services of the Executive and as are consistent
with his position. It is agreed that the Executive’s employment hereunder shall
constitute sixty (60) hours per month, which shall be devoted exclusively for
the benefit of the Company.

2.2     Service. During the term
the Executive shall: 

	 	(a) 	
      well and faithfully serve the Company and use his best
      efforts to promote the best interests of the Company;

	 	 	 
	 	(b) 	
      unless prevented by ill health or injury, devote a
      portion of his working time and attention to the business of the Company;
      and

	 	 	 
	 	(c) 	
      comply in all material respects with any Company policies
      that may apply to the Executive from time to time.

2.3     Term. The term of this
Agreement shall be effective from October 1, 2011 (the "Effective Date")
and shall remain in full force and effect until the earlier of December 31,
2012 or until terminated in accordance with Section 4 of this Agreement.

	3. 	
      COMPENSATION AND BENEFITS

3.1     Salary. The Company shall pay
to the Executive $10,000.00 ("Base Salary") per month for every month
during which this Agreement remains in effect, payable in accordance with the
Company's regular payroll practices or on such other basis as mutually agreed
between the Company and the Executive. 

3.2     Bonus. Executive shall be
eligible to earn a bonus at the complete discretion of the Board. Bonus
compensation will be paid in accordance with Employer’s normal payroll
practice.

3.3     Stock Options. The Parties
acknowledge that as of the date of this Agreement the Executive holds stock
options to acquire 1,500,000 shares of the Company’s common stock in accordance
with the Stock Option Plan. 

3.4     Group Benefits. The Executive
will be eligible to participate in the Company's employee health insurance,
dental insurance, retirement and any other employee benefit plans, provided that
such participation will be subject to all terms and conditions of such plans
(including, without limitation, all waiting periods, eligibility requirements,
contributions, exclusions or other similar conditions and limitations). The
introduction and administration of the employee benefit plans is within the
Company's sole discretion, and the Executive agrees that the introduction,
deletion or amendment of any of the benefits shall not constitute a breach of
this Agreement. 

3.5     Vacation. The employment of the
Executive is part time and it is acknowledged that he will be entitled to take
vacation breaks at various times during the year. The timing of vacation will be
subject to the Company's business needs at the time. 

3.6     Expenses. The Executive shall
be reimbursed by the Company for all reasonable expenses incurred in connection
with the Executive's employment within a reasonable time after receipt of the
appropriate invoice or other documentation reasonably required by the Company
related to such expenses. 

3.7     Other Perquisites. Until the
earlier of expiration or termination of this Agreement, the Company agrees to
pay all reasonable costs associated with: a) an existing ManuLife life insurance
policy owned by the Executive; and, b) professional membership dues incurred by
the Executive related to the Executive's employment. 

3.8     Office Space. Until the earlier
of expiration or termination of this Agreement, the Company will continue to
provide office space for use by the Executive in its executive offices in Boise,
Idaho. 

	4. 	
      TERMINATION OF AGREEMENT AND
  EMPLOYMENT

4.1     Termination by Company. This Agreement
and the Executive’s employment may be terminated by the Company summarily and
without notice, payment in lieu of notice, severance payments, benefits, damages
or any sums whatsoever, on the occurrence of any one or more of the following
events: 

	 	(a) 	
      the Executive’s failure to carry out his duties hereunder
      in a competent and professional manner;

	 	 	 
	 	(b) 	
      the Executive’s appropriation of corporate opportunities
      for the Executive’s direct or indirect benefit or his failure to disclose
      any material conflict of interest;

	 	 	 
	 	(c) 	
      the Executive’s plea of guilty to, or conviction of, an
      indictable offence once all appeals (if any) have been completed without
      such conviction having been reversed;

	 	 	 
	 	(d) 	
      the existence of cause for termination of the Executive
      at common law including but not limited to cause related to fraud,
      dishonesty, illegality, breach of statute or regulation, or gross
      incompetence;

	 	 	 
	 	(e) 	
      failure on the part of the Executive to disclose material
      facts concerning his business interests or employment outside of his
      employment by the Company, provided such facts relate to the Executive’s
      duties hereunder;

	 	 	 
	 	(f) 	
      refusal on the part of the Executive to follow the
      reasonable and lawful directions of the Company;

	 	 	 
	 	(g) 	
      breach of fiduciary duty to the Company on the part of
      the Executive; or

	 	(h) 	
      material breach of this Agreement or gross negligence on
      the part of the Executive in carrying out his duties under this
      Agreement.

4.2     In the event of the early termination of the
Agreement for any reason set out in Section 4.1 above, the Executive shall only
be entitled to such compensation as would otherwise be payable to the Executive
hereunder up to and including such date of termination, as the case may be.

4.3     This Agreement and the Executive's employment may be
terminated on notice by the Company to the Executive for any reason other than
for the reasons set out in Section 4.1 above of this Agreement upon one month
notice to the Executive. In such event, the Executive will be entitled to
payment of salary up to and including such date of termination payable in
accordance with usual payroll practices but in no event later than two and a
half (2 1⁄2) months following the date of termination and the Executive shall not
have any ability to influence the tax year in which payment is made. Expenses
incurred up to and including such date of termination shall be reimbursed only
in accordance with Section 3.6. 

4.4     This Agreement and the Executive's employment may be
terminated on notice by the Executive to the Company for any reason upon one
month notice to the Company. In such event, the Executive will be entitled to
payment of salary up to and including such date of termination and payable in
accordance with the procedures in Section 4.3. Expenses incurred up to and
including such date of termination shall be reimbursed only in accordance with
Section 3.6. 

4.5     In the event that (i) Executive’s employment is
terminated either by Company without Cause or by Executive for Good Reason (as
defined below), and (ii) a Change of Control (as defined below) has occurred
within the twelve (12) month period preceding the date of such termination,
Executive shall be entitled to receive a lump sum payment in an amount equal to
twenty four (24) monthly installments of Executive’s base annual salary as set
forth under Section 5(a). Any payments made under this Section 4.5, in all
events, will be paid within 60 days of the date of termination. For purposes of
this Section 4.5, the Executive shall be considered to have had a termination of
employment as of the date that the facts and circumstances indicate that it is
reasonably anticipated that Executive will perform no further services for the
Company and its affiliates after such date or that the level of bona fide
services for the Company and its affiliates that Executive is expected to
perform is expected to decrease permanently to no more than 20% of the average
level of bona fide services that Executive performed over the immediately
preceding 36-month period. Whether Executive has had a termination of employment
will be determined in a manner consistent with the definition of “separation
from service” under Code section 409A. 

4.6     If this Agreement is terminated in accordance with
Section 4.5 and if the Executive elects continuation coverage under COBRA, the
medical and dental benefits provided to Executive pursuant to Section 3.4 of
this Agreement shall continue for the number of months of compensation Executive
is entitled to following the termination of employment pursuant to Section 3.4
or until such earlier time that Executive is eligible for similar benefits under
another employer’s plans or programs, but in no event will such coverage extend
beyond the period during which the Executive is eligible for COBRA continuation
coverage. The percentage of the contributions by the Company for the cost of the
benefits provided pursuant to this Section 4.6 shall be at the same level as the
Company’s contribution for such benefits during the Executive’s employment. 

    “Good Reason” shall mean any one of the conditions set forth
below, provided that Executive must provide notice to the Company within sixty
(60) days of the existence of such condition and the Company will have thirty
(30) days from receipt of such notice to remedy the condition. If the condition
is not remedied within such 30 day period, the following conditions will
constitute “Good Reason”: 

	 	a) 	
      A material diminution in the Executive’s base
      compensation; or,

	 	 	 
	 	b) 	
      A material diminution in the Executive’s authority,
      duties, or responsibilities; or,

	 	 	 
	 	c) 	
      A material diminution in the authority, duties, or
      responsibilities of the supervisor to whom the Executive is required to
      report, including a requirement that an Executive report to a corporate
      officer or employee instead of reporting directly to the board of
      directors of a corporation (or similar governing body with respect to an
      entity other than a corporation); or,

	 	 	 
	 	d) 	
      A material diminution in the budget over which the
      Executive retains authority as a percentage of the Corporations overall
      budget; or,

	 	 	 
	 	e) 	
      A material change in the geographic location at which the
      Executive must perform the services.

	5. 	
      CONFIDENTIAL INFORMATION

5.1     The Executive acknowledges that, by reason of the
Executive's employment by the Company, the Executive will have access to
Confidential Information of the Company that the Company has spent time, effort
and money to develop and acquire. For the purposes of this Agreement any
reference to the "Company" shall mean the Company, and such respective
affiliates and subsidiaries as may exist from time to time. 

5.2     The Executive acknowledges that the Confidential
Information is a valuable and unique asset of the Company and that the
Confidential Information is and will remain the exclusive property of the
Company. 

5.3     The Executive agrees to maintain securely and hold
in strict confidence all Confidential Information received, acquired or
developed by the Executive or disclosed to the Executive as a result of or in
connection with the Executive's employment with the Company. The Executive
agrees that, both during his employment with the Company and after the
termination of his employment with the Executive, the Executive will not,
directly or indirectly, divulge, communicate, use, copy or disclose or permit
others to use, copy or disclose, any Confidential Information to any person,
except as such disclosure or use is required to perform his duties hereunder or
as may be consented to by prior written authorization of the Company. 

5.4     The obligation of confidentiality imposed by this
Agreement shall not apply to information that appears in issued patents or
printed publications, that otherwise becomes generally known in the industry
through no act of the Executive in breach of this Agreement, or that is required
to be disclosed by court order or applicable law. 

5.5     The Executive understands that the Company has from
time to time in its possession information belonging to third parties or which
is claimed by third parties to be confidential or proprietary and which the
Company has agreed to keep confidential. The Executive agrees that all such
information shall be Confidential Information for the purposes of this
Agreement. 

5.6     The Executive agrees that documents, copies, records
and other property or materials made or received by the Executive that pertain
to the business and affairs of the Company, including all Confidential
Information which is in the Executive's possession or under the Executive's
control are the property of the Company and that the Executive will return same
and any copies of same to the Company immediately upon termination of the
Executive's employment or at any time upon the request of the Company. 

	6. 	
      RESTRICTED ACTIVITIES

6.1     Restriction on Competition. The
Executive covenants and agrees with the Company that the Executive will not,
without the prior written consent of the Company, at any time during his
employment or for a period of twelve (12) months following the termination of
the Executive's employment, for any reason, either individually or in
partnership or in conjunction with any person, whether as principal, agent,
shareholder, director, officer, employee, investor, or in any other manner
whatsoever, directly or indirectly, advise, manage, carry on, be engaged in, own
or lend money to, or permit the Executive's name or any part thereof to be used
or employed by any person managing, carrying on or engaged in a geothermal
business anywhere in Oregon, Idaho, Nevada or the Republic of Guatemala or other
jurisdiction in which the Company is carrying on active business which is in
direct competition with the business of the Company of its subsidiaries. 

6.2     Restriction on Solicitation.
The Executive shall not, at any time during his employment or for a period
of twelve (12) months after the termination of the Executive's employment, for
any reason, without the prior written consent of the Company, for his account or
jointly with another, either directly or indirectly, for or on behalf of himself
or any individual, partnership, corporation or other legal entity, as principal,
agent, employee or otherwise, solicit, influence, entice or induce, attempt to
solicit, influence, entice or induce: 

	 	(a) 	
      any person who is employed by the Company to leave such
      employment; or

	 	 	 
	 	(b) 	
      any person, firm or corporation whatsoever, who is or was
      at any time in the last twelve (12) months of the Executive's employment a
      customer or supplier of the Company or any affiliate or subsidiary of the
      Company, to cease its relationship with the Company or any affiliate or
      subsidiary of the Company.

	7. 	
      ENFORCEMENT

7.1     The Executive acknowledges and agrees that
the covenants and obligations under this Agreement, including Sections 5 and 6,
are reasonable, necessary and fundamental to the protection of the Company's
business interests, and the Executive acknowledges and agrees that any breach of
this Agreement by the Executive would result in irreparable harm to the Company
and loss and damage to the Company for which the Company could not be adequately
compensated by an award of monetary damages. Accordingly, the Executive agrees
that, in the event the Executive violates any of the restrictions referred to
this Agreement and in particular in Sections 5 or 6, the Company shall suffer
irreparable harm and shall be entitled to preliminary and permanent injunctive
relief and any other remedies in law or in equity which the court deems fit in
addition to rights the Company may have to damages arising from said breach or
threat of breach. 

	8. 	
      REPRESENTATIONS AND
WARRANTIES

    The Executive represents and warrants to the Company that the
execution and performance of this Agreement will not result in or constitute a
default, breach, or violation, or an event that, with notice or lapse of time or
both, would be a default, breach, or violation, of any understating, agreement
or commitment, written or oral, express or implied, to which the Executive is
currently a party or by which the Executive or the Executive’s property is
currently bound.

    The Executive represents and warrants to the Company that the
Executive is free to enter into this Agreement and has no contract, commitment,
arrangement or understanding to or with any party that restrains or is in
conflict with the Executive’s performance of the covenants, services and duties
provided for in this Agreement. The Executive agrees to indemnify the Company
and hold it harmless against any and all liabilities or claims arising out of
any unauthorized act or acts by the Executive that, the forgoing representation
and warranty to the contrary notwithstanding, are in violation, or constitute a
breach, of any such contract, commitment, arrangement or understanding.

    The Executive acknowledges and agrees that the Company has made
no representations or warranties with respect to the tax consequences of any of
the payments or other consideration provided by the company to the Executive
under the terms of this Agreement, and that Employee is solely responsible for
the Executive’s compliance with any and all laws applicable to such payments or
other consideration. 

    The Company may take such action as it deems appropriate to
insure that all applicable federal, state, city and other payroll, withholding,
income or other taxes arising from any compensation, benefit or any other
payments made pursuant to this Agreement, or any other contract, agreement or
understanding that relates, in whole or in part, to the Executive’s employment
with the Company, are withheld or collected from the Executive. 

	9. 	
      GENERAL PROVISIONS

9.1     Cooperation and Assistance. The
Executive agrees that he shall, both during the term of this Agreement and
thereafter, fully co-operate with and assist the Company in the resolution of
complaints, claims or disputes against the Company, including without limitation
civil, criminal or regulatory proceedings. 

9.2     Use of Likeness. The Executive
hereby grants to the Company, its parent, subsidiary and affiliated companies,
during the term of the Executive's employment with the Company, and for a period
of one (1) year after the termination of that employment for any reason, the
right to use the Executive's name, likeness and biography in connection with the
advertising, sale and/or marketing of the Company's, or its parent or affiliated
company's, products or services. 

9.3     Severability. If any provision
of this Agreement is declared unenforceable or invalid for any reason
whatsoever, such unenforceability or invalidity shall not affect the
enforceability or validity of any remaining portion of this Agreement, which
remaining portion shall remain in full force and effect with such unenforceable
or invalid provisions shall be severed from the remainder of this Agreement.

9.4     Survival. The Company and the
Executive expressly acknowledge and agree that the provisions of this Agreement,
which by their express or implied terms extend beyond the termination of the
Executive's employment hereunder, or beyond the termination of this Agreement,
shall continue in full force and effect notwithstanding the termination of the
Executive's employment or the termination of this Agreement for any reason. 

9.5     Effect of Agreement. The
provisions of this Agreement constitute the entire employment agreement between
the Parties and it supersedes and cancels all previous communications,
representations and agreements, whether oral or written, between the Parties
with respect to the Executive's employment by the Company including the Original
Agreement. In consideration of the Company entering into this Employment
Agreement, the Executive hereby remises, releases and forever discharges the
Company from any and all claims, liability, actions or causes of actions arising
or which may arise now or hereafter in connection with any claim by the
Executive in respect of any prior written or oral employment contracts or
arrangements between the Executive and Company that pre-date the date of
execution of this Employment Agreement including the Original Agreement. 

9.6     Amendment. This Agreement may
not be amended or modified except by written instrument signed by the Company
and the Executive. 

9.7     Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the State of
Idaho and the federal laws of United States applicable therein, which shall be
deemed to be the proper law hereof. The Parties hereby attorn to and submit to
the jurisdiction of the courts of Idaho. 

9.8     Enurement. This Agreement shall
enure to the benefit of and be binding upon the Parties hereto and their
respective heirs, executors, administrators, successors, personal
representatives and permitted assigns. 

9.9     Affiliated Corporations. The
Executive acknowledges and agrees that all of the Executive's covenants and
obligations to the Company, as well as the rights of the Company under this
Agreement, shall run in favor of and shall be enforceable by the parent,
subsidiary and affiliated companies of the Company. The Executive acknowledges
that notwithstanding references in this Agreement to affiliated companies of the
Company, this Agreement is between the Executive and the Company. 

9.10     Legal Advice. The Executive
acknowledges this Agreement has been prepared by the Company and that the
Executive has had sufficient time to review these documents thoroughly,
including enough time to obtain independent legal advice concerning the
interpretation and effect of these documents prior to their execution. By
signing these documents, the Executive represents and warrants that he has read
and understood these documents and that he executes them of his own free will
and act. 

    IN WITNESS WHEREOF the Parties have hereto have duly
executed this agreement as of the day and year first above written. 

	  	  	U.S.GEOTHERMAL, INC. 
	  	  	  
	  	  	  
	  	  	  
	  	  	Per: /s/ John H. Walker
	  	  	Authorized Signatory 
	SIGNED, SEALED AND DELIVERED in 	) 	  
	the presence of: 	) 	  
	  	) 	  
	  	) 	  
	  	) 	  
	  	) 	  
	  	) 	  
	/s/ Amy Mitchell	) 	  
	Witness 	) 	  
	  	) 	/s/
    Daniel J. Kunz
	Amy Mitchell	) 	DANIEL KUNZ 
	Name 	) 	  
	  	) 	  

	Address  1505 Tyrell Lane, Boise, ID 83706	) 	 
	  	) 	 
	  	) 	 
	  	) 	 
	  	  	 
	  	  	 
	Occupation 	  	 

SCHEDULE "A" 

DEFINITIONS 

The following terms shall have the following definitions: 

	(a) 	
      "Board" means the Board of Directors of the
      Company;

	 	 
	(b) 	
      "Cause" has the meaning commonly ascribed to the
      phrase "cause" or "just cause for termination" at common law and, without
      limiting the foregoing, includes any of the following acts or
      omissions:

	 	(i) 	
      the Executive's gross default or misconduct during the
      Executive's employment in connection with or effecting the business of the
      Company;

	 	 	 
	 	(ii) 	
      the Executive's continued refusal or willful misconduct
      to carry out the duties of his employment after receiving written notice
      from the Company of the failure to do so and having had an opportunity to
      correct same within a reasonable period of time from the date of receipt
      of such notice;

	 	 	 
	 	(iii) 	
      theft, fraud, dishonesty or misconduct of the Executive
      involving the property, business or affairs of the Company or in the
      carrying out of the duties of his employment; or

	 	 	 
	 	(iv) 	
      any material breach of this Agreement including any
      breach Sections 5, 6 or 7 of this Agreement;

	(c) 	"Change of Control"
      means an event occurring after the effective date of this
      Agreement pursuant to which: 

	 	i. 	
      a merger, amalgamation, arrangement, consolidation,
      reorganization or transfer takes place in which securities of the Company
      possessing more than 50% of the total combined voting power of the
      Company’s outstanding voting securities are acquired by a person or
      persons different from the person holding those voting securities
      immediately prior to such event, and the composition of the board of
      Directors of the Company following such event is such that the directors
      of the Company prior to the transaction constitute less than 50% of the
      Board membership following the event; or,

	 	 	 
	 	ii. 	
      any person or any combination of persons acting jointly
      or in concert by virtue of an agreement, arrangement, commitment or
      understanding acquires, directly or indirectly, 30% or more of the voting
      rights attached to all outstanding voting securities; public and private
      placement share offerings are exempt this clause;
or,

	 	iii. 	
      any person, or combination of persons, acting jointly or
      in concert by virtue of an agreement, arrangement or commitment or
      understanding acquires, directly or indirectly, the right to appoint a
      majority of the directors of the Company; or,

	 	 	 
	 	iv. 	
      Company sells, transfers or otherwise disposes of all or
      substantially all of its assets, except that no Change of Control will be
      deemed to occur if such sale or disposition is made to a subsidiary or
      subsidiaries of the Company.

	(d) 	
      "Confidential Information" means all trade
      secrets, proprietary information and other data or information (and any
      tangible evidence, record or representation thereof), whether prepared,
      conceived or developed by an employee of the Company (including the
      Executive) or received by the Company from an outside source which is
      maintained in confidence by the Company or any of its employees,
      contractors or customers including, without
limitation:

	 	(i) 	
      any ideas, drawings, maps, improvements, know-how,
      research, geological records, drill logs, inventions, innovations,
      products, services, sales, scientific or other formulae, core samples,
      processes, methods, machines, procedures, tests, treatments, developments,
      technical data, designs, devices, patterns, concepts, computer programs or
      software, records, data, training or service manuals, plans for new or
      revised services or products or other plans, items or strategy methods on
      compilation of information, or works in process, or any inventions or
      parts thereof, and any and all revisions and improvements relating to any
      of the foregoing (in each case whether or not reduced to tangible form)
      that relate to the business or affairs of the Company or that result from
      its marketing, research and/or development activities;

	 	 	 
	 	(ii) 	
      any information relating to the relationship of the
      Company with any personnel, suppliers, principals, investors, contacts or
      prospects of the Company and any information relating to the requirements,
      specifications, proposals, orders, contracts or transactions of or with
      any such persons;

	 	 	 
	 	(iii) 	
      any marketing material, plan or survey, business plan,
      opportunity or strategy, development plan or specification or business
      proposal, or any information relating to any geothermal projects in which
      the Company has an actual or potential interest;

	 	 	 
	 	(iv) 	
      financial information, including the Company's costs,
      financing or debt arrangements, income, profits, salaries or wages;
    and

	 	 	 
	 	(v) 	
      any information relating to the present or proposed
      business of the Company.

	(e) 	
      "Person" means an individual, partnership,
      association, company, body corporate, trustee, executor, administrator,
      legal representative and any national, provincial, state
  or municipal government; and 

 	(f) 	
      "Stock Option Plan" means the Stock Option and
      Stock Bonus Plan for U.S. Geothermal Inc. as amended from time to
    time.

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