Document:

Exhibit 10.40

Letter Agreement between Company and IBK Capital
Corp. dated November 1, 2002 regarding non-exclusive
assistance of IBK to seek corporate transaction for the
Company.

IBK Capital Corp.
The Exchange Tower
130 King Street West, Suite 1180
Toronto, Ontario, Canada M5X 1E4

November 1, 2002

Mr. William E. Reid, President
U.S. Gold Corporation
Suite 100, 2201 Kipling Street
Lakewood, Colorado 80215-1545

Dear Bill:

In accordance with our recent discussions, IBK Capital
Corp. (IBK Capital) will assist U.S. Gold Corporation
(U.S. Gold or the Company), on a non-exclusive basis,
in seeking to arrange and negotiate, on terms and
conditions acceptable to the Company, a business
arrangement (Business Arrangement) with a suitable
party (MergeCo).  As used herein, Business
Arrangement will mean (i) the acquisition, directly or
indirectly, by MergeCo of nay or all of the shares of U.S.
gold by way of tender offer, exchange offer, negotiated
purchase or open market purchases; and/or (ii) any
merger, consolidation, reorganization, or other business
arrangement to which the business of U.S. Gold is
combined with that of MergeCo.  The list of potential
MergeCos must be approved by U.S. Gold in advance in
writing prior to any contact made by IBK Capital.

1. Commission

The Company agrees to pay IBK Capital on the closing
date thereon, a commission equal to 3% of the total
amount of the Business Arrangement.  At the option of
IBK Capital, the commission can be paid in cash or in
shares of U.S. Gold, or a combination thereof.  The total
amount of the Business Arrangement is equal to the
implied value of the Company under the Business
Arrangement at the time the Business Arrangement is
announced.

The Company also agrees to pay IBK Capital for any
reasonable out-of-pocket expense, to be approved in
writing, incurred in connection with its activities
hereunder.  Any travel-related expenses are to be
approved in writing by the Company in advance.

2. Term

The appointment of IBK capital pursuant to this
agreement will be effective from the date first written
above and will continue for twelve months.  This
agreement may, however, be terminated by the Company
or IBK Capital upon notice in writing or otherwise to the
other party.  It is understood that in the event of the
termination or expiry of this agreement, IBK Capital
retains the right to be paid any out-of-pocket expenses
incurred by it and due to it pursuant to section 1 above,
on or before the date of such termination or expiry.

3. Information

The Company will furnish to IBK Capital the most up to
date information concerning the Company and its assets
as is available.  All such information (the Information)
will be kept confidential by IBK Capital, except such of the
information as has been made public by the Company.
All approved IBK Capital contacts must sign a
confidentiality agreement prior to IBK Capital providing
the contact with any non-public information pertaining to
U.S. Gold.

4. Indemnification

The Company agrees to notify IBK Capital promptly of an
assertions against it or any other person of any claim or
the commencement of any action or proceedings related
to any transaction contemplated by this agreement.

The Company agrees to indemnify and hold harmless IBK
Capital, its directors, employees, agents and controlling
persons (each being an Indemnified Party) from and
against any and all losses, claims, damages, liabilities
and expenses, joint or several to which such Indemnified
Party may become subject under any applicable
Canadian Federal or Provincial law which are caused by
or arise out of (i) any untrue statement or alleged untrue
statement of a material fact contained in the Information
or the omission or the alleged omission to state therein a
material fact necessary in order to make the statements
therein not misleading in light of the circumstances under
which they were made, or (ii) any transaction
contemplated under this agreement or IBK Capital's
providing the services to the Company pursuant to this
agreement.  However, such indemnity will not apply under
this clause to the extent that any loss, claim, damage,
liability or expense is found in a final judgment by a court
to have resulted primarily from the gross negligence or
bad faith of IBK Capital in rendering the services to the
Company pursuant to this agreement.

In the event IBK Capital appears as a witness in any
action brought against the Company in which an
Indemnified Party is not named as a defendant, the
Company agrees to reimburse IBK Capital for all
reasonable expenses incurred by it in connection with so
appearing and to compensate IBK Capital in an amount to
be mutually agreed upon.

5.  Jurisdiction

The terms of this agreement shall be interpreted by and
construed in accordance with and governed by the laws
of the Province of Ontario.

If the foregoing terms correctly set forth the terms of this
agreement between the Company and IBK capital, please
confirm this by signing and returning to IBK Capital the
duplicate copy of this letter.

Yours very truly,
IBK Capital Corp.
By /s/ William F. White
President

Accepted as of the date first written above:

U.S. Gold Corporation
By /s/ William W. Reid
PresidentExhibit 10.41

Conditional Agreement Not To Exercise Stock Options
Under Stock Option Agreement Dated January 20, 1999
Pursuant to Non-Qualified Stock Option and Stock
Grant Plan As Amended and Restated March 17, 2003

This Amended and Restated Agreement is made
effective as of March 17, 2003 by and between U.S.
Gold Corporation (the "Corporation") and
William W. Reid ("Option Holder").

WHEREAS, Option Holder and Corporation entered into
that certain Stock Option Agreement dated January
20, 1999 (the "SOA") under Corporation's
Non-Qualified Stock Option and Stock Grant Plan
(the "Plan") covering an aggregate of 888,295
shares of Common Stock of Corporation at an
exercise price of $0.16 per share and with
expiration date thereunder of January 21, 2004, and

WHEREAS, Corporation had previously reserved
sufficient numbers of shares of authorized but
unissued Common Stock of the Corporation under
the Plan to provide for the exercise of the shares
of Common Stock under the SOA as well as other
outstanding stock option agreements, and

WHEREAS, Corporation required funding critical to
its operations and for the near-term protection of
its assets and therefore negotiated for the sale
and has closed certain private transactions with
third parties (the "Purchasers") covering the sale
of Common Stock of the Corporation, and

WHEREAS, in order for the Corporation to have
sufficient numbers of authorized and unissued
shares of Common Stock not otherwise reserved for
use under the Plan to sell to such Purchasers, the
Option Holder agreed to temporarily and
conditionally forgo the right to exercise a portion
of the options to purchase Common Stock under his
SOA in consideration for the commitments and
representations of the Corporation contained
herein, in order that the Corporation could remove
those number of shares of Common Stock from the
classification of "reserved shares" under the Plan
and for the Corporation to then be able to sell
such number of shares of Common Stock to
Purchasers, all as subject to the terms of this
Agreement.

WHEREAS, the Corporation and Option Holder entered
into Agreement effective December 6, 2002 which
agreement was amended to increase the number of
shares covered thereunder effective January 16,
2003, entitled Conditional Agreement Not To
Exercise Stock Options Under Stock Option
Agreement Dated January 20, 1999 Pursuant to Non-
Qualified Stock Option and Stock Grant Plan (the
"Amended Agreement"), and

WHEREAS, the Amended Agreement included the
obligation of the Corporation under Section B.2.
providing that if ..."the Corporation is unable to
reserve sufficient numbers of authorized but
unissued shares of Common Stock under the Plan for
all outstanding stock option agreements including
the SOA to the Option Holder, then the Corporation
commits to otherwise keep the Option Holder whole
in terms the intrinsic economic value of in-the-
money stock option shares subject to the limitation
on exercise contained in this Agreement as that
number may be reduced from time to time by
additional reserved shares being replaced thereby
making a portion of the option shares under the SOA
exercisable," which obligations of the Corporation
the Corporation and the Option Holder wish to
retroactively remove from both the December 6, 2002
agreement and the January 20, 2003 Amended
Agreement,

NOW THEREFORE the Corporation and Option Holder
agree and reaffirm as follows:

A.  Option Holder commits and agrees to Corporation
as follows:

1.  Option Holder agrees not to exercise an
aggregate of 847,200 shares of Common Stock under
his SOA until and unless the Corporation reserves
sufficient number of shares of Common Stock from
its authorized but unissued numbers of shares of
Common Stock, in whole or in part, to allow
such exercise by Option Holder of the full number
or any lesser number of shares of Common Stock, if
the Corporation is able to reserve some but not
all of the required by and subject to such SOA.

2.  This agreement in no way limits the ability of
Option Holder to exercise any or all of his option
shares under his SOA which are currently or in the
future become covered by reserved numbers of shares
of Common Stock of the Corporation under the Plan
and under the SOA.

3.  In consideration for the agreement of Option
Holder hereunder, the Corporation agrees and
commits to Option Holder that the Corporation will
use its best efforts to make available and to
reserve sufficient numbers of authorized but
unissued shares of Common Stock of the Corporation
under the Plan to allow exercise of all shares of
Common Stock subject to outstanding stock option
agreements including the SOA with Option Holder.
This includes, but is not limited to, the approval
by the shareholders of the Corporation of any
increase to the authorized number of Common Stock
equity of the Corporation as well as the
acquisition of treasury shares by the Corporation
which could otherwise be used for reservation of
Common Stock under the Plan and the SOA.

This Agreement shall be governed by and construed
in accordance with the laws of the State of
Colorado.

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

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement effective as of March 17,
2003.

Option Holder:

/s/ William W. Reid
William W. Reid

Corporation:

John W. Goth
John W. Goth, Director and Member of Compensation
Committee

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