Document:

Exhibit 10.20

 

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 Stefan Spears
(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

 

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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:

 

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(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.

 

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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 

 

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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.

 

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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 

 

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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:

  	
  Stefan Spears

  
	
   

  	
  708-95 Prince Arthur Ave

  
	
   

  	
  Toronto, ON

  
	
   

  	
  M5R 3P6

  
	
   

  	
   

  
	
  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.

 

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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:

Stefan Spears

 

	
  /s/ Stefan Spears

  	
   

  

 

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EXHIBIT A

 

INDEMNIFICATION AGREEMENT

 

This Agreement is made effective as of the 1st day
of August 2008, 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: Stefan M. Spears

  
	
   

  	
  Address: 708-95 Prince Arthur Ave Toronto ON M5R 3P6

  
	
   

  	
  Tele No.: 416-921-1849

  

 

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/ Stefan M. Spears

  	
   

  
	
   

  	
  Printed Name:

  	
   

  

 

A-6Protective Products of America, Inc.

EXHIBIT 10.1

CHIEF RESTRUCTURING OFFICER

ENGAGEMENT LETTER AGREEMENT

Dated as of March 5, 2010

Via Electronic Mail Delivery

Mr. Neil E. Scwartzman

Acting Chief Executive Officer

Protective Products of America, Inc.

1649 NW 136 Avenue

Sunrise, FL 33323

Re:

Engagement of Frank E. Jaumot as Chief Restructuring Officer (“CRO”) for Protective Products of America, Inc., CPC holding Corporation of America, Ceramic Protection Corporation of America, Protective International Corp., and Protective Products of North Carolina, LLC, each as a debtor and debtor in possession (collectively, the “Company”).

Dear Mr. Schwartzman:

This letter confirms and sets forth the terms and conditions of my engagement as the Chief Restructuring Officer by the Company, including the scope of the services to be performed and the basis of compensation for those services.  The Company is currently operating as a debtor in possession under Chapter 11 of title 11 (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Florida (the “Bankruptcy Court”), in Case No. 10-10722-BKC-JKO (Jointly Administered) (the “Chapter 11 Cases”).  Upon execution of this letter by each of the parties below, and entry of the Approval Order (as defined below), this letter shall constitute an agreement between the Company and myself. The Company sold substantially all of its assets on March 5, 2010, and is pursuing an orderly liquidation of its remaining assets in the Chapter 11 Cases (the “Orderly Liquidation”). 

1.

Description of Services

a.

Duties and Powers. 

I currently serve and will continue to serve as a director of the Company.  In addition, I shall serve as the CRO of the Company and shall supervise and oversee the Orderly Liquidation (and over all aspects thereof).  In this capacity, I shall have the authorization to: (a) to open and close bank accounts for the Company, (b) to transfer funds of the Company, (c) to cause the Company to modify, amend, terminate and/or enforce  any of its any contractual rights; (c) to cause the Company to enter into any agreement or contract that is reasonably necessary to the completion of the Orderly Liquidation; (d) cause the Company to comply with all Guidelines of the Office of the United States Trustee, (e) to cause the Company to pursue, settle or compromise any litigation, controversy or 

 

other dispute involving the Company, (f) to cause the Company to exercise the Company’s rights under the Company’s agreements and other agreements in favor of the Company; (g) to cause the Company to prepare one or more plans of reorganization, or to take any all action in the Chapter 11 Cases.    

2.

Compensation

a.

I shall bill the Company on Friday of each week for my services during that week.  I will be paid by the Company for the services of the CRO at the rate of $385 per hour.  I have the right to hire additional personnel to assist me.  Services provided to the Company by any additional such personnel to support the CRO in carrying the services outlined herein shall be paid by the Company at the standard hourly rates of such personnel, and their rates will not exceed $325 per hour. Such hourly rates shall be referred to as the “standard hourly rates”.  The aggregate changes for all services at the standard hourly rates shall not exceed $15,000 per week.

b.

In addition, I will be reimbursed by the Company for the reasonable out-of-pocket expenses of the CRO, and if applicable, other personnel, incurred in connection with this assignment, such as reasonable out-of-town travel, reasonable out-of-town lodging, duplications, computer research, messenger and telephone charges. All fees and expenses due to me will be billed on a weekly basis and be due and payable on each Wednesday during the Term of this Agreement for the prior calendar week. 

c.

Upon the execution of this Agreement, and entry of an order in the Chapter 11 Cases approving this Agreement under Section 363(b) of the Bankruptcy Code (the “Approval Order”), the Company shall pay a retainer of $15,000 which shall be retained and applied against my final invoice.  Any funds remaining on deposit after the conclusion of our services shall be returned to the Company, or as otherwise directed by the Court.

3.

Term

The engagement will commence effective as of March 5, 2010 and may be terminated by either party without cause by giving 7 days written notice to the other party.   In the event of any such termination, any fees and expenses due to me through the effective date of such termination shall be applied to the remaining balance of the advance payment to the extent a balance exists and then any additional fees and expenses shall be remitted promptly (including fees and expenses that accrued prior to but were invoiced subsequent to such termination).  The Company may immediately terminate my services hereunder at any time for Cause (hereinafter defined) by giving written notice to me.  My services may be immediately terminated hereunder at any time for Good Reason 

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(hereinafter defined) by giving written notice to the Company.   Upon any such termination, the Company shall be relieved of all of its payment obligations under this Agreement, except for the payment of fees and expenses through the effective date of termination (including fees and expenses that accrued prior to but were invoiced subsequent to such termination) and its obligations under paragraph 8.  For purposes of this Agreement, “Cause” shall mean if (i) the CRO is convicted of, admits guilt in a written document filed with a court of competent jurisdiction to, or enters a plea of nolo contendere to, an allegation of fraud, embezzlement, misappropriation or any felony; or (ii) a material breach of any of my material obligations under this Agreement which is not cured within 30 days of the Company’s written notice thereof to me describing in reasonable detail the nature of the alleged breach. For purposes of this Agreement, termination for “Good Reason” shall mean termination caused by a breach by the Company of any of its material obligations under this Agreement that is not cured within 5 days of my having given written notice of such breach to the Company describing in reasonable detail the nature of the alleged breach.  

 

4.

Confidentiality / Non-Solicitation.

I shall keep as confidential all non-public information received from the Company in conjunction with this engagement, except (i) as requested by the Company or its legal counsel; (ii) as required by legal proceedings or (iii) as reasonably required in the performance of this engagement.  All obligations as to non-disclosure shall cease as to any part of such information to the extent that such information is or becomes public other than as a result of a breach of this provision.  

5.

Indemnification.

The Company shall indemnify me to the same extent as the most favorable indemnification it extends to its officers or directors, whether under the Company’ bylaws, its certificate of incorporation, or otherwise, and no reduction or termination in any of the benefits provided under any such indemnities shall affect the benefits provided to me.  The CRO shall be covered as an officer under the Company’s existing director and officer liability insurance policies, to the extent that same remain in full force and effect.  The Company shall also maintain any such insurance coverage for the CRO for a period of not less one year following the date of the termination of such officer’s services hereunder.  The attached indemnity provisions are incorporated herein and the termination of this agreement or the engagement shall not affect those provisions, which shall survive termination.  The provisions of this section 5 are in the nature of contractual obligations and no change in applicable law or the Company’ charter, bylaws, or other organizational documents or policies shall affect my rights hereunder.  

6.

Miscellaneous.

This Agreement shall (together with the attached indemnity provisions) be:  (a) governed and construed in accordance with the laws of the State of Florida, regardless of the laws that might otherwise govern under applicable principles of conflict of laws thereof; (b) incorporates the entire understanding of the parties with respect to the subject matter thereof; and (c) may not be amended or modified except in writing executed by each of the signatories hereto.  The 

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Company and I agree to waive trial by jury in any action, proceeding or counterclaim brought by or on behalf of the parties hereto with respect to any matter relating to or arising out of the performance or non-performance of the Company or me hereunder. Any disputes arising from or relating to this Agreement shall adjudicated by the Court.

If the foregoing is acceptable to you, kindly sign the enclosed copy to acknowledge your agreement with its terms.

Very truly yours,

/s/ Frank E. Jaumot

Frank E. Jaumot

Accepted and Agreed:

PROTECTIVE PRODUCTS OF AMERICA, INC., on behalf of itself and the 

Entities listed on Schedule 1

By: /s/ Neil E. Schwartzman

Name: 

Title: 

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Schedule 1

LIST OF AFFILIATED ENTITIES

CPC holding Corporation of America 

Ceramic Protection Corporation of America

Protective International Corp.

Protective Products of North Carolina, LLC 

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