Document:

EXHIBIT 10.1

        MIDWAY GOLD CORP.

        (the “Company”)

        STOCK OPTION PLAN

        as adopted by the Board on May 6, 2003 and as amended on May 12, 2008

        1.           Purpose.  The purpose of this Stock Option Plan (the “Plan”), is to advance the interests of the Company and its shareholders by enhancing the ability of the Company to attract and retain the
        best available talent and to encourage the highest level of performance by senior officers, key employees, directors and consultants of the Company and of its subsidiaries through ownership of Common Shares in the Company. This form of Plan supersedes and replaces the terms and conditions of previously granted stock options of the Company (other than their exercise price and expiry date).

        2.             Defined Terms.  For the purposes of this Plan, the following terms shall have the following meanings:

        
            	
                         

                    	
                        (a)

                    	
                        “Applicable Laws” means all relevant provisions of law, including, without limitation, the Securities Act and the rules and regulations thereunder of British Columbia, and the jurisdictions in which Optionees may reside, and all policies, notices, instruments and
                        blanket orders in force from time to time that are applicable to the Company and the Optionees;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        “Board” means the Board of Directors of the Company or any committee duly empowered or authorized to grant options under this Plan;

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        “Common Shares” means common shares without par value in the capital of the Company providing such class is listed on the Exchange;

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        “Consultant” means, in relation to the Company, a Person or Consultant Company, other than an Employee, Senior Officer or a Director of the Company, that:

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        is engaged to provide on an ongoing bona fide basis, consulting, technical, management or other services to the Company or to an affiliate of the Company, other than services provided in relation to a Distribution;

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        provides the services under a written contract between the Company or an affiliate of the Company and the Person or the Consultant Company;

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        in the reasonable opinion of the Company, spends or will spend a significant amount of time and attention on the affairs and business of the Company or an affiliate of the Company; and

                    

        

        

        

        

        

        
            
                

            

        

        
            

            
                	
                             

                        	
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                        (iv)

                    	
                        has a relationship with the Company or an affiliate of the Company that enables the Person to be knowledgeable about the business and affairs of the Company;

                    

        

        
            	
                         

                    	
                        (e)

                    	
                        “Consultant Company” means a company or partnership of which the Consultant is an employee, shareholder or partner;

                    

        

        
            	
                         

                    	
                        (f)

                    	
                        “Director” means a director of the Company as may be elected or appointed from time to time;

                    

        

        
            	
                         

                    	
                        (g)

                    	
                        “Discounted Market Price” has the meaning assigned by Exchange Policy 1.1;

                    

        

        
            	
                         

                    	
                        (h)

                    	
                        “Disinterested Shareholder Approval” means approval by a majority of the votes cast by all the Company’s shareholders at a duly constituted shareholders’ meeting, excluding votes attached to shares beneficially owned by a Director, Senior Officer, Employee, Management Company Employee or Consultant,
                        and also includes a company, of which 100% of the share capital is beneficially owned by one or more persons who is a service provider;

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        “Distribution” means the sale of securities from the Company’s treasury, the sale of securities by a purchaser who acquired securities pursuant to a prospectus exemption, other than in accordance with the resale restrictions of Applicable Laws or the Exchange Policies, or the sale of securities by a control
                        person other than in accordance with the resale restrictions of Applicable Laws or the Exchange Policies;

                    

        

        
            	
                         

                    	
                        (j)

                    	
                        “Employee” means:

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        a Person who is considered an employee of the Company or its Subsidiary under the Income Tax Act (Canada) (i.e. for whom income tax, employment insurance and CPP deductions must be made at source);

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        a Person who works full-time for the Company or its Subsidiary providing services normally provided by an employee and who is subject to the same control and direction by the Company over the details and methods of work as an employee of the Company, but for whom income tax deductions are not made at source; or

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        a Person who works for the Company or its Subsidiary on a continuing and regular basis for a minimum amount of time per week providing services normally provided by an employee and who is subject to the same control and direction by the Company over the details and methods of work as an employee of the Company, but for whom income tax deductions are not
                        made at source;

                    

        

        
            	
                         

                    	
                        (k)

                    	
                        “Exchange” means the TSX Venture Exchange and any successor thereto;

                    

        

         

        
            

            

             

        

        
            
                

            

        

        
            

            
                	
                             

                        	
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                        (l)

                    	
                        “Exchange Policies” means the policies of the Exchange, as amended from time to time;

                    

        

        
            	
                         

                    	
                        (m)

                    	
                        “Investor Relations Activities” means any activities, by or on behalf of the Company or a shareholder of the Company, that promote or reasonably could be expected to promote the purchase or sale of securities of the Company, but does not include:

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        the dissemination of information provided, or records prepared, in the ordinary course of business of the Company

                    

        

        
            	
                         

                    	
                        A.

                    	
                        to promote the sale of products or services of the Company; or

                    

        

        
            	
                         

                    	
                        B.

                    	
                        to raise public awareness of the Company,

                    

        

        that cannot reasonably be considered to promote the purchase or sale of securities of the Company;

        
            	
                         

                    	
                        (ii)

                    	
                        activities or communications necessary to comply with the requirements of

                    

        

        
            	
                         

                    	
                        A.

                    	
                        applicable Laws,

                    

        

        
            	
                         

                    	
                        B.

                    	
                        the Exchange Policies or the by-laws, rules or other regulatory instruments of any other self regulatory body or exchange having jurisdiction over the Company;

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        communications by a publisher of, or writer for, a newspaper, magazine or business or financial publication, that is of general and regular paid circulation, distributed only to subscribers to it for value or to purchasers of it, if

                    

        

        
            	
                         

                    	
                        A.

                    	
                        the communication is only through the newspaper, magazine or publication, and

                    

        

        
            	
                         

                    	
                        B.

                    	
                        the publisher or writer receives no commission or other consideration other than for acting in the capacity of publisher or writer; or

                    

        

        
            	
                         

                    	
                        (iv)

                    	
                        activities or communications that may be otherwise specified by the Exchange;

                    

        

        
            	
                         

                    	
                        (n)

                    	
                        “Management Company Employee” means an individual employed by a Person providing management services to the Company, which are required for the ongoing successful operation of the business enterprise of the Company, but excluding a Person engaged in Investor Relations Activities;

                    

        

        

        

        

        

        

         

        
            
                

            

        

        
            

            
                	
                             

                        	
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                        (o)

                    	
                        “Market Price” means the last closing price per Common Share on the Exchange prior to the Board granting the option;

                    

        

        
            	
                         

                    	
                        (p)

                    	
                        “Optionee” means a Person to whom an option to acquire Common Shares has been granted under the terms of the Plan;

                    

        

        
            	
                         

                    	
                        (q)

                    	
                        “Person” means company or an individual;

                    

        

        
            	
                         

                    	
                        (r)

                    	
                        “Senior Officer” means a duly appointed senior officer of the Company or any Subsidiary;

                    

        

        
            	
                         

                    	
                        (s)

                    	
                        “Subsidiary” means any corporation, partnership, joint venture or other entity in which the Company owns or controls, directly or indirectly, not less than 50% of the total voting power or equity interests, and includes a subsidiary of a Subsidiary;

                    

        

        
            	
                         

                    	
                        (t)

                    	
                        “Tier 1 Issuer” has the same meaning ascribed thereto under the Exchange Policies; and

                    

        

        
            	
                         

                    	
                        (u)

                    	
                        “Tier 2 Issuer” has the same meaning ascribed thereto under the Exchange Policies.

                    

        

        3.             Administration.  The Plan will be administered by the Board. The Board will have authority, consistent with the Plan:

        
            	
                         

                    	
                        (a)

                    	
                        to grant options priced in accordance with this Plan;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        to prescribe the form of certificate evidencing grants of options to Optionees and any other instruments required under the Plan and to change such forms from time to time;

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        to adopt, amend and rescind rules and regulations for the administration of the Plan, provided however, that except as specified in Section 6(c), if the Common Shares of the Company are listed on the Exchange, no amendment which would increase the maximum number of Common Shares for which options may be granted will be made by the Board without the
                        approval of the Exchange;

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        to interpret and administer the Plan and to decide all questions and settle all controversies that may arise in connection with the Plan, all of which decisions of the Board will be final and conclusive;

                    

        

        
            	
                         

                    	
                        (e)

                    	
                        to determine who is eligible to receive options pursuant to the eligibility criteria of Section 5; and

                    

        

        
            	
                         

                    	
                        (f)

                    	
                        to make all other determinations necessary or advisable for administration of the Plan.

                    

        

        

        

        

        

        

         

        
            
                

            

        

        
            

            
                	
                             

                        	
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        4.             Compliance with Laws.  Transactions under the Plan are intended to comply with the Applicable Laws and the Exchange Policies. To the extent any provision of the Plan or action by the Board fails to so comply, it will be deemed null and
        void, to the extent permitted by law and deemed advisable by the Board.

        5.             Eligibility.  The Board may from time to time authorize the grant of options to anyone who is at the time of such authorization:

        
            	
                         

                    	
                        (a)

                    	
                        a Director, Senior Officer, Employee or a company that is wholly-owned by a Director, Senior Officer or Employee; or

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        subject to the Applicable Laws and the Exchange Policies, a Consultant or a Consultant Company.

                    

        

        
            	
                        6.

                    	
                        Shares Subject to the Plan.

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        Subject to adjustment as provided in Section 6(d):

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        the number of Common Shares to be issued or allotted and reserved for issuance from time to time upon the exercise of options granted under the Plan will not at any point in time exceed 10% of the issued and outstanding Common Shares;

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        no more than an aggregate of 5% of the issued and outstanding Common Shares may be granted to any one individual in any 12 month period, unless the Company is a Tier 1 Issuer and has obtained Disinterested Shareholder Approval;

                    

        

        
            	
                         

                    	
                        (iii)

                    	
                        no more than an aggregate of 2% of the issued and outstanding Common Shares may be granted to any one Consultant in any 12 month period; and

                    

        

        
            	
                         

                    	
                        (iv)

                    	
                        no more than an aggregate of 2% of the issued and outstanding Common Shares may be granted to all Employees conducting Investor Relations Activities, in any 12 month period.

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        If any option granted under the Plan expires unexercised or terminates by reason of dismissal of the Optionee for cause, or otherwise is lawfully cancelled without having been exercised, the number of Common Shares that were issuable thereunder will be returned to the Plan within the limits set forth in Section 6(a) and will be eligible for
                        re-issue.

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        No options can be granted under the Plan if the Company is designated “Inactive” (as defined in the Exchange Policies) by the Exchange.

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        In the event of a stock split, consolidation or reclassification or other change in the Company’s capital, other than an issue of Common Shares or by way of stock dividend, the number and exercise price of options will be adjusted by the Board

                    

        

        

        

         

        

        

        
            
                

            

        

        
            

            
                	
                             

                        	
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        to preserve the rights of the participants in this Plan substantially proportionate to those existing prior to such event.

        7.             Terms and Conditions of Options.  All options granted under the Plan will be subject to the following terms and conditions:

        
            	
                         

                    	
                        (a)

                    	
                        The per-share exercise price of each option will be set by the Board at the time of grant and will be not less than the Discounted Market Price of a Common Share;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        An option may be exercised no later than five years from the date it was granted, unless the Company is, at the time of the grant, a Tier 1 Issuer, in which case such option may be exercised no later than 10 years from the date it was granted;

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        With the exception of any options granted to a Consultant who performs Investor Relations Activities, all options granted to each Optionee under the Plan will become vested on the grant date, or at such other time as may be established by the Board at the time of the grant in compliance with the Exchange Policies. The Board will, at the time of grant,
                        determine the vesting date or dates of any options granted to a Consultant who performs Investor Relations Activities provided that such options must vest in stages over 12 months with no more than 1⁄4 of the options vesting in any three-month period.

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        Optionees will not exercise options until they have vested;

                    

        

        
            	
                         

                    	
                        (e)

                    	
                        Each option granted to an Optionee will be evidenced by the stock option agreement attached as Appendix “A” to this Plan;

                    

        

        
            	
                         

                    	
                        (f)

                    	
                        Any exercise of an option must be in writing, signed by the Optionee and delivered or mailed to the Company and payment in full as provided below for the number of Common Shares for which the option is exercised;

                    

        

        
            	
                         

                    	
                        (g)

                    	
                        The price of Common Shares purchased on the exercise of an option must be paid in full by cash or certified cheque, payable to the Company;

                    

        

        
            	
                         

                    	
                        (h)

                    	
                        No option or any interest therein will be transferable or assignable otherwise than by will or pursuant to the laws of succession;

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        An Optionee will have no rights as a shareholder of the Company with respect to any Common Shares covered by any option until such time as and to the extent only that such option has been exercised;

                    

        

        
            	
                         

                    	
                        (j)

                    	
                        If any Optionee ceases to be eligible for a grant of options under this Plan for any reason (a “Termination”), except the death of an Optionee or by reason of retirement pursuant to an established retirement policy of the Board or dismissal from employment or service for cause, all options granted to the Optionee under the Plan and then held
                        by the Optionee will, to the extent such options were vested and exercisable immediately prior to Termination, continue to be

                    

        

         

        
            
                

            

        

        
            

            
                	
                             

                        	
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        exercisable by the Optionee for a period of 90 days following Termination or until the expiration date of the option if earlier;

        
            	
                         

                    	
                        (k)

                    	
                        If Termination is by reason of retirement pursuant to an established retirement policy of the Board, all options held by the retiring Optionee will become vested and exercisable, to the extent not already vested and exercisable immediately prior to retirement, and they continue to be exercisable until their original expiration date;

                    

        

        
            	
                         

                    	
                        (l)

                    	
                        Notwithstanding Section 7(j), any options granted to an Optionee who is engaged in Investor Relations Activities will expire within 30 days after such Optionee ceases to be employed to provide Investor Relations Activities;

                    

        

        
            	
                         

                    	
                        (m)

                    	
                        In the event of the death of an Optionee, all options granted to the Optionee under the Plan and held by the Optionee immediately before death will, to the extent such options were vested and exercisable at that time, continue to be exercisable by the legal representative of the Optionee for a period of 1 year following the death of the Optionee or until
                        the expiration date of the option if earlier;

                    

        

        
            	
                         

                    	
                        (n)

                    	
                        In the event that the Company proposes to grant options, under this Plan or otherwise, which could result in the grant to Insiders, within a 12 month period, of a number of options exceeding 10% of the Company’s issued shares, the Company shall first obtain such disinterested shareholder approval as may be required by the Exchange;

                    

        

        
            	
                         

                    	
                        (o)

                    	
                        If the Company wishes to reduce the exercise price of any outstanding options held by any person who is an “insider” as defined by the Exchange, the Company shall first obtain such disinterested shareholder approval as may be required by the Exchange; and

                    

        

        
            	
                         

                    	
                        (p)

                    	
                        In the case of an Optionee being dismissed from employment or service for cause, such Optionee’s Options, whether or not vested at the date of dismissal will immediately terminate without right to exercise the same.

                    

        

        
            	
                        8.

                    	
                        Legend Requirements.

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        All options granted to Optionees pursuant to the Plan and any Common Shares issued on the exercise of such options will bear a legend stipulating any resale restrictions as may be prescribed by the Applicable Laws.

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        Further, if the Company is a Tier 2 issuer, or the exercise price is set below the Market Price of the Common Shares on the Exchange, the certificate will bear a legend stipulating that the optioned shares are subject to a 4 month Exchange hold period commencing the date of the grant.

                    

        

        9.             Tax Consequences of the Plan.  The Company does not assume responsibility for the income or other tax consequences for Optionees or persons eligible under the Plan and they are advised to consult with their own tax advisors.

         

        
            
                

            

        

        
            

            
                	
                             

                        	
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        10.           U.S. Plan. Notwithstanding the foregoing, the Board may grant an “incentive stock option” within the meaning of the U.S. Internal Revenue Code of 1986, as amended, to an Employee who is a citizen or resident of the United States of America pursuant
        to the Midway Gold Corp. 2008 Stock Incentive Plan for United States Resident Employees, attached hereto as Exhibit A (the “U.S. Plan”).

        11.           Effect of Certain Corporate Transactions.  In the event of a consolidation or merger in which the Company is not the surviving company, or in the event its outstanding shares are converted into securities of another entity or exchanged for other
        consideration, or in the event of an offer for Common Shares being made by a third party that constitutes a take-over bid as that term is defined in the Securities Act (British Columbia) or would constitute a take-over bid as that term is defined in the Securities Act (British Columbia) but for the fact that the offeree is not in British Columbia, all outstanding options will
        immediately vest and all options granted to the optionee under this Plan and held by the Optionee will continue to be exercisable after the Company has sent notice to each of the Optionees to exercise the options only for a period of 30 days from the date of such notice or until the expiration of the option, if earlier. After such time, the options will terminate, provided, however, that if such transaction does not close, all such options will be deemed not to have vested nor
        expired.

        12.           Bona Fide Employee or Consultant.  In respect of any options granted to Employees or Consultants pursuant to the Plan, the Board shall make a determination that such Optionee is, as at the date of the grant of the options, a bona fide Employee or
        Consultant, as the case may be.

        13.           Effective Date of Plan.  The Plan will become effective on the date it receives acceptance by the Exchange, including any shareholder approval required by the Exchange.

        14.           Restrictions on Corporate Optionee.  If the Optionee is not an individual, the Optionee will not, for the duration of time that the Optionee is the holder of options granted pursuant to this Plan, effect or permit any transfer of ownership or option
        of shares of the Optionee or allot and issue further shares of any class of shares of the Optionee to any Person.

        15.           Amendments to Plan.  The Board reserves the right, in its absolute discretion, to at any time amend, modify or terminate the Plan. Subject to Section 15, amendments to the Plan, from time to time, will become effective on the later of the date of
        the approval of such amendments by the Board and the date of the approval of such amendments by the Exchange.

        16.           Prior Approval.  The Plan, and any subsequent amendments thereto, are subject to the prior approval of the Exchange and ratification by the shareholders of the Company at each annual general meeting of the Company, and accordingly so long as the
        Common Shares are listed on the Exchange, no option granted under the Plan shall be exercised prior to these approvals having been obtained by the Company.

        17.           Governing Law.  The Plan will be governed by and construed in accordance with the laws of the Province of British Columbia.

        * * * * * * * * * * * * * ** * * * *

        

        

        

         

        
            
                

            

        

        
            
                 
            

        

        Appendix “A”

        OPTION AGREEMENT

        THIS AGREEMENT dated •, 200•, is between:

        MIDWAY GOLD CORP., a company incorporated under the laws of British Columbia, having its head office at Suite 300, 570 Granville Street, Vancouver, BC.

        (the “Company”)

        AND

        •, of the address set out in Appendix 1

        (“Optionee”)

        BACKGROUND

        A.        The Optionee holds one or more positions described in Section 5 of the Company’s 2003 Stock Option Plan (the “Plan”).

        B.        The Company has determined that the Optionee will receive an option (the “Option”) to purchase common shares of the Company (the “Common Shares”) pursuant to the Plan in accordance with the terms of this Agreement.

        AGREEMENTS

        In consideration of the Optionee holding and continuing to hold one such position and for other good and valuable consideration, the receipt and sufficiency of which each party acknowledges, the parties agree as follows:

        1.         The Company represents that the Optionee is a bona fide [Employee / Consultant / Management Company Employee / Director / Senior Officer] as defined in Section 2 of the Plan.

        2.         At the date of grant of the Option, the Company is classified as a Tier ( company under the TSX Venture Exchange Policies.

        3.         The Company grants to the Optionee the irrevocable option to purchase Common Shares on the following terms and conditions:

        
            	
                         

                    	
                        (a)

                    	
                        the number of Common Shares under Option, the vesting and expiry of the Option, and the price per share at which the Common Shares may be purchased, are as set out in Appendix 1 to this Agreement; and

                    

        

        

        

        

        

        

         

        
            
                

            

        

        
            	
                         

                    	
                        - 2 -

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        the grant of the Options evidenced hereby is made subject to the terms and conditions of the Plan, the terms and conditions of which are hereby incorporated by reference into this Agreement.

                    

        

        4.         To exercise this Option, the Optionee must deliver a written notice to the Company specifying the number of Common Shares that the Optionee wishes to acquire, together with cash or certified cheque payable to the Company for the aggregate exercise price. A certificate representing the Common Shares acquired will be issued by
        the Company’s transfer agent as soon as practicable thereafter and will bear a minimum 4 month non-transferability legend commencing as of the date of this Agreement. [Note: A Tier 1 company may grant stock options without a hold period, provided the exercise price of the options is set at or above the market price of the company’s shares rather than below.]

        
            	
                        5.

                    	
                        Time is of the essence of this Agreement.

                    

        

        6.         The exercise of this Option by the Optionee is entirely voluntary and any decision not to exercise this Option or any part of it will not in any way affect the Optionee’s employment or continued employment, and the exercise of this Option or any part of it will not give the Optionee any right to employment or continued
        employment.

        7.         This Agreement will enure to the benefit of the Optionee and the heirs and personal representatives of the Optionee.

         

        
            

             

             

            
                

            

            
                

                
                    	
                                 

                            	
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            8.         The Company may require from the Optionee such investment representation, undertaking or agreement, if any, as the Company may consider necessary in order to comply with applicable laws and the policies of the TSX Venture Exchange.This Agreement will be governed and constituted in accordance with the laws of the Province of British
            Columbia.

            IN WITNESS WHEREOF the parties have executed this Agreement as of the date first above written.

            MIDWAY GOLD CORP.

             

            
                	
                            
                            Per: _________________________                                                        

                        

            

            
                	
                             

                        	
                            Authorized Signatory

                        

            

             

            
                	
                            SIGNED IN THE PRESENCE OF:

                            ______________________________

                            Signature

                             

                            ______________________________

                            (Print Name)

                             

                            ______________________________

                            (Address)

                             

                            ______________________________

                            (Occupation)

                        	
                            )

                            )

                            )

                            )

                            )

                            )

                            )

                            )

                            )

                            )

                            )

                            )

                            )

                        	
                             

                            ______________________________

                            •[Name of Optionee]

                            Or if Optionee is not an individual:

                            • [Name of Company]

                            
                            Per:___________________________                                                                           

                            • [Authorized Signatory’s name],

                            • [Position]

                             

                        

            

             

            

            

            

            

            

             

            
                

            

            
                

                
                     
                

            

            APPENDIX 1

            
                	
                            Optionee Information

                        	
                            Number of Shares Optioned

                        	
                            Price per

                            Share

                        	
                            Vesting Date(s)

                            [If applicable]

                        	
                            Expiry Date

                        
	
                            • [Name]

                            • [Position]

                            • [Address]

                            • [Telephone #]

                            \• [Fax #]

                        	
                            •

                        	
                            Cdn$•

                        	
                            •

                        	
                            •

                        

            

             

            
                

                 

                

                 

                

            

             

            
                

            

            EXHIBIT A

             

            MIDWAY GOLD CORP.

             

            2008 STOCK INCENTIVE PLAN

            FOR UNITED STATES RESIDENT EMPLOYEES

             

            GENERAL

            This Midway Gold Corp. 2008 Stock Incentive Plan for United States Resident Employees (the “U.S. Plan”) is intended to supplement and be a part of the Midway Gold Corp. Stock Option Plan adopted by the Board on May 6, 2003 (the “Plan”). The purpose of the
            U.S. Plan is to enable the Company to grant Incentive Stock Options to qualifying employees who are citizens or residents of the United States of America.

            The U.S. Plan shall, at all times, be interpreted and administered consistently with the Plan and the rules and policies of the TSX Venture Exchange; provided, however, that in the event of a conflict between the U.S. Plan and the Plan, the terms of the U.S. Plan shall control,
            but only to the extent that such terms are required to (i) preserve the status of any Options granted thereunder as Incentive Stock Options, and (ii) maintain the U.S. Plan’s compliance with Section 422 et seq. of the Code so as to permit future issuances of Incentive Stock Options pursuant to the U.S. Plan. Notwithstanding the foregoing, in no event shall the U.S. Plan be administered in a manner that violates any rules or policies of the TSX Venture Exchange.

            DEFINITIONS

            As used in the Plan, the following terms shall have the meanings set forth below:

            “Affiliate” shall mean (i) any entity that, directly or indirectly through one or more intermediaries, is controlled by the Company and (ii) any entity in which the Company has a significant equity interest, in each case as determined by the Board.

            “Award” shall mean any Option granted under the Plan.

            “Award Agreement” shall mean any written agreement, contract or other instrument or document evidencing any Award granted under the Plan. Each Award Agreement shall be subject to the applicable terms and conditions of the Plan and any other terms and conditions (not inconsistent with the Plan) determined by the
            Board.

            “Board” shall mean the Board of Directors of the Company.

            “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated thereunder.

            “Company” shall mean Midway Gold Corp., a Canadian corporation, and any successor corporation.

            
                

            

            “Director” shall mean a member of the Board, including any Non-Employee Director.

            “Eligible Person” shall mean any employee (including any officer or director who is also an employee), who is a citizen of the United States or a resident of the United States, as defined in Section 7701(a)(30)(A) and Section 7701(b)(1) of the Code, providing services to the Company or any Affiliate who the Board
            determines to be an Eligible Person.

            “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

            “Fair Market Value” shall mean, with respect to any property (including, without limitation, any Shares or other securities), the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Board. Notwithstanding the foregoing and unless otherwise
            determined by the Board, the Fair Market Value of a Share as of a given date shall be, if the Shares are then listed on the TSX Venture Exchange, the average of the high and low sales price of one Share as reported on the TSX Venture Exchange on such date or, if the TSX Venture Exchange is not open for trading on such date, on the most recent preceding date when it is open for trading.

            “Incentive Stock Option” shall mean an option granted under Section 6(a) of the Plan that is intended to qualify as an “incentive stock option” in accordance with the terms of Section 422 of the Code or any successor provision. An Incentive Stock Option may only be granted to full-time or
            part-time employees (including officers and directors who are also employees), and an Incentive Stock Option shall not be granted to an employee of an Affiliate unless such Affiliate is also a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code or any successor provision.

            “Non-Employee Director” shall mean any Director who is not also an employee of the Company or an Affiliate within the meaning of Rule 16b-3.

            “Option” shall mean an Incentive Stock Option.

            “Participant” shall mean an Eligible Person designated to be granted an Award under the Plan.

            “Person” shall mean any individual or entity, including a corporation, partnership, limited liability company, association, joint venture or trust.

            “Plan” shall mean the Midway Gold Corp. Stock Option Plan adopted by the Board on May 6, 2003, and exhibits attached thereto, as amended from time to time.

            “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or any successor rule or regulation.

            “Securities Act” shall mean the Securities Act of 1933, as amended.

            2

            
                

            

            “Securities Exchange” shall mean the TSX Venture Exchange, the AMEX Stock Exchange, and any successor securities exchange thereof, or any other securities exchange where the Shares are then listed.

            “Share” or “Shares” shall mean common shares without par value in the capital of the Company (or such other securities or property as may become subject to Awards pursuant to an adjustment made under Section 4(c) of the Plan), provided that such class
            is listed on the Securities Exchange.

            “U.S. Plan” shall mean the Midway Gold Corp. 2008 Stock Incentive Plan for United States Resident Employees, as amended from time to time, the provisions of which are set forth herein

            ADMINISTRATION

            Power and Authority of the Board. The U.S. Plan shall be administered by the Board (or a committee of Directors designated by the Board to administer the U.S. Plan). The Board, or committee as applicable, shall be comprised of not less than such number of Directors as shall be required to permit Awards granted under the U.S. Plan to qualify under Rule 16b-3. Each Director shall be
            a Non-Employee Director. Subject to the express provisions of the U.S. Plan and to applicable law, the Board shall have full power and authority to: (i) designate Participants; (ii) determine the number of Shares to be covered by (or the method by which payments or other rights are to be determined in connection with) each Award; (iii) determine the terms and conditions of any Award or Award Agreement; (iv) amend the terms and conditions of any Award or Award
            Agreement and accelerate the exercisability of any Option or waive any restrictions relating to any Award; (v) determine whether, to what extent and under what circumstances Awards may be exercised in cash, Shares, other securities or other property, or canceled, forfeited or suspended; (vi) interpret and administer the U.S. Plan and any instrument or agreement, including an Award Agreement, relating to the U.S. Plan; (vii) establish, amend, suspend or waive such
            rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the U.S. Plan; and (viii) make any other determination and take any other action that the Board deems necessary or desirable for the administration of the U.S. Plan. Unless otherwise expressly provided in the U.S. Plan, all designations, determinations, interpretations and other decisions under or with respect to the U.S. Plan or any Award shall be within the sole
            discretion of the Board, may be made at any time and shall be final, conclusive and binding upon any Eligible Person and any holder or beneficiary of any Award.

            SHARES AVAILABLE FOR AWARDS

            Shares Available. Subject to adjustment as provided in Section 4(c) of the U.S. Plan, the aggregate number of Shares that may be issued under the U.S. Plan shall be 3,000,000; provided, however, that the aggregate number of Shares authorized under this Section 4(a) for use in
            granting Options shall, at all times, be a part of and subject to the limitations set forth in Section 6 of the Plan, and shall be adjusted proportionately to reflect any adjustments to the number of shares authorized under Section 6 of the Plan. Shares to be issued under the U.S. Plan may be either authorized but unissued Shares or Shares re-acquired and held in treasury.

            
                

                3

            

            
                

            

            Notwithstanding the foregoing, the number of Shares available for granting Incentive Stock Options under the U.S. Plan shall not exceed 3,000,000, subject to adjustment as provided herein, in Section 4(c) of the U.S. Plan, and subject to the provisions of Section 422 or 424 of the Code or any successor provision.

            Accounting for Awards. For purposes of this Section 4, the number of Shares covered by an Award or to which such Award relates shall be counted on the date of grant of such Award against the aggregate number of Shares available for granting Awards under the U.S. Plan. Any Shares that are used by a Participant as full or partial payment to the Company of the purchase price
            relating to an Award, or in connection with the satisfaction of tax obligations relating to an Award, shall again be available for granting Awards under the U.S. Plan. In addition, if any Shares covered by an Award or to which an Award relates are not purchased or are forfeited, or if an Award otherwise terminates without delivery of any Shares, then the number of Shares counted against the aggregate number of Shares available under the U.S. Plan with respect to such Award, to the
            extent of any such forfeiture or termination, shall again be available for granting Awards under the U.S. Plan.

            Adjustments. In the event of any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase
            Shares or other securities of the Company or other similar corporate transaction or event affects the Shares such that an adjustment is necessary in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the U.S. Plan, then the Board shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or other property) that thereafter may be made the subject of
            Awards, (ii) the number and type of Shares (or other securities or other property) subject to outstanding Awards, and (iii) the purchase price or exercise price with respect to any Award; provided, however, that the number of Shares covered by any Award or to which such Award relates shall always be a whole number. Such adjustment shall be made by the Board, whose
            determination in that respect shall be final, binding and conclusive.

            ELIGIBILITY

            Any Eligible Person shall be eligible to be designated a Participant. In determining which Eligible Persons shall receive an Award and the terms of any Award, the Board may take into account the nature of the services rendered by the respective Eligible Persons, their present and potential contributions to the success of the Company or such other factors as the Board, in its
            discretion, shall deem relevant.

            AWARDS

            Options. The Board is hereby authorized to grant Options to Eligible Persons with the following terms and conditions and with such additional terms and conditions not inconsistent with the provisions of the U.S. Plan as the Board shall determine:

            
                

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            Exercise Price. The purchase price per Share purchasable under an Option shall be determined by the Board; provided, however, that such purchase price shall not be less than 100% of the Fair Market Value of a Share on the date of
            grant of such Option; provided, further, that in the case of the grant of an Option to a Participant who, at the time such Option is granted, owns (within the meaning of Section 422 of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of its Affiliate, the purchase price per Share purchasable under an Option shall be not less than 110%
            of the Fair Market Value of a Share on the date of grant of the Option.

            Option Term. The term of each Option shall be fixed by the Board at the time of grant. Notwithstanding the foregoing, unless sooner exercised, all Options shall expire and no longer be exercisable no later than 10 years after the date of grant; provided,
            however, that in the case of a Participant who, at the time such Option is granted, owns (within the meaning of Section 422 of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of its Affiliate, such Option shall expire and no longer be exercisable no later than 5 years from the date of grant.

            Time and Method of Exercise. The Board shall determine the time or times at which an Option may be exercised in whole or in part. The exercise price of an Option shall be paid in full by cash at the time of exercise of the Option.

            Limit on Aggregate Value. The Board will not grant Options in which the aggregate Fair Market Value (determined as of the time the option is granted) of the Shares with respect to which Options are exercisable for the first time by any Participant during any calendar year under this Plan shall exceed $100,000.

            Period of Grant. All Options must be granted within ten years from the earlier of the date on which this U.S. Plan was adopted by the Board or the date this U.S. Plan, separately or in conjunction with the Plan, was approved by the stockholders of the Company.

            Qualification as Incentive Stock Option. Any Option authorized under the U.S. Plan shall contain such provisions as the Board shall deem advisable to qualify the Option as an Incentive Stock Option. In the event that an Award fails to qualify as an Incentive Stock Option, such Award will be treated as a non-qualified stock option
            within the meaning of the Code.

            General.

            Limits on Transfer of Awards. No Award and no right under any such Award shall be transferable or assignable by a Participant otherwise than by will or by the laws of descent and distribution and the Company shall not be required to recognize any attempted assignment of such rights by any Participant;
            provided, however, that, if so determined by the Board, a Participant may, in the manner established by the Board, designate a beneficiary or beneficiaries to exercise the rights of the Participant and

            
                

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            receive any property distributable with respect to any Award upon the death of the Participant.

            Restrictions; Securities Exchange Listing. All Shares or other securities delivered under the U.S. Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Board may deem advisable under the U.S. Plan, applicable federal or state securities laws and regulatory
            requirements, and the Board may direct appropriate stop transfer orders and cause other legends to be placed on the certificates for such Shares or other securities to reflect such restrictions. If the Shares or other securities are traded on a securities exchange, the Company shall not be required to deliver any Shares or other securities covered by an Award unless and until such Shares or other securities have been admitted for trading on such securities exchange.

            AMENDMENT AND TERMINATION; ADJUSTMENTS

            Amendments to the U.S. Plan. The Board may amend, alter, suspend, discontinue or terminate the U.S. Plan at any time; provided, however, that, notwithstanding any other provision of the U.S. Plan or any Award Agreement, without the approval of the stockholders of the Company, no
            such amendment, alteration, suspension, discontinuation or termination shall be made that, absent such approval:

            violates the rules or regulations of any Securities Exchange;

            causes the Company to be unable, under the Code, to grant Incentive Stock Options under the U.S. Plan;

            increases the number of shares authorized under the U.S. Plan as specified in Section 4(a); or

            permits the award of Options at a price less than 100% of the Fair Market Value of a Share on the date of grant of such Option, as prohibited by Sections 6(a)(i) of the U.S. Plan or the repricing of Options.

            Amendments to Awards. The Board may waive any conditions of or rights of the Company under any outstanding Award, prospectively or retroactively. Except as otherwise provided herein or in an Award Agreement, the Board may not amend, alter, suspend, discontinue or terminate any outstanding Award, prospectively or retroactively, if such action would adversely affect the rights of
            the holder of such Award, without the consent of the Participant or beneficiary thereof.

            Correction of Defects, Omissions and Inconsistencies. The Board may correct any defect, supply any omission or reconcile any inconsistency in the U.S. Plan or any Award in the manner and to the extent it shall deem desirable to carry the U.S. Plan into effect.

             

            
                

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            INCOME TAX WITHHOLDING

            In order to comply with all applicable federal, state or local income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal, state or local payroll, withholding, income or other taxes, which are the sole and absolute responsibility of a Participant, are withheld or collected from such Participant. In order to assist
            a Participant in paying all or a portion of the federal, state and local taxes to be withheld or collected upon exercise of (or the lapse of restrictions relating to) an Award, the Board, in its discretion and subject to such additional terms and conditions as it may adopt, may permit the Participant to satisfy such tax obligation by (i) electing to have the Company withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or the lapse of
            restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes, or (ii) delivering to the Company Shares other than Shares issuable upon exercise or receipt of such Award with a Fair Market Value equal to the amount of such taxes. The election, if any, must be made on or before the date that the amount of tax to be withheld is determined.

            GENERAL PROVISIONS

            No Rights to Awards. No Eligible Person or other Person shall have any claim to be granted any Award under the U.S. Plan, and there is no obligation for uniformity of treatment of Eligible Persons or beneficiaries of Awards under the U.S. Plan. The terms and conditions of Awards need not be the same with respect to any Participant or with respect to different
            Participants.

            Award Agreements. No Participant will have rights under an Award granted to such Participant unless and until an Award Agreement shall have been duly executed on behalf of the Company and, if requested by the Company, signed by the Participant.

            U.S. Plan Provisions Control. In the event that any provision of an Award Agreement conflicts with or is inconsistent in any respect with the terms of the U.S. Plan as set forth herein or subsequently amended, the terms of the U.S. Plan shall control.

            No Rights of Stockholders. Neither a Participant nor the Participant’s legal representative shall be, or have any of the rights and privileges of, a stockholder of the Company with respect to any Shares issuable to such Participant upon the exercise of any Award, in whole or in part, unless and until such Shares have been issued in the name of such Participant or such
            Participant’s legal representative without restrictions thereto.

            No Limit on Other Compensation Arrangements. Nothing contained in the U.S. Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

            No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ, or as giving a director of the Company or an Affiliate the right to continue as a director, of the Company or any Affiliate, nor will it affect in any way the right of the Company or an Affiliate to terminate such employment at any time, with or
            without cause. In addition, the Company or an Affiliate may at any time dismiss a Participant

            
                

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            from employment, or terminate the term of a director of the Company or an Affiliate, free from any liability or any claim under the U.S. Plan or any Award, unless otherwise expressly provided in the U.S. Plan or in any Award Agreement. Nothing in this U.S. Plan shall confer on any person any legal or equitable right against the Company or any Affiliate, directly or indirectly, or give rise to any
            cause of action at law or in equity against the Company or an Affiliate. The Awards granted hereunder shall not form any part of the wages or salary of any Eligible Person for purposes of severance pay or termination indemnities, irrespective of the reason for termination of employment. Under no circumstances shall any person ceasing to be an employee of the Company or any Affiliate be entitled to any compensation for any loss of any right or benefit under the U.S. Plan which such
            employee might otherwise have enjoyed but for termination of employment, whether such compensation is claimed by way of damages for wrongful or unfair dismissal, breach of contract or otherwise. By participating in the U.S. Plan, each Participant shall be deemed to have accepted all the conditions of the U.S. Plan and the terms and conditions of any rules and regulations adopted by the Board and shall be fully bound thereby.

            Governing Law. The validity, construction and effect of the U.S. Plan or any Award, and any rules and regulations relating to the U.S. Plan or any Award, shall be determined in accordance with the internal laws, and not the law of conflicts, of the Province of British Columbia, Canada.

            Severability. If any provision of the U.S. Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the U.S. Plan or any Award under any law deemed applicable by the Board, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without,
            in the determination of the Board, materially altering the purpose or intent of the U.S. Plan or the Award, such provision shall be stricken as to such jurisdiction or Award, and the remainder of the U.S. Plan or any such Award shall remain in full force and effect.

            No Trust or Fund Created. Neither the U.S. Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and an Eligible Person or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right
            shall be no greater than the right of any unsecured general creditor of the Company or any Affiliate.

            Other Benefits. No compensation or benefit awarded to or realized by any Participant under the U.S. Plan shall be included for the purpose of computing such Participant’s compensation under any compensation-based retirement, disability, or similar plan of the Company unless required by law or otherwise provided by such other plan.

            No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the U.S. Plan or any Award, and the Board shall determine whether cash shall be paid in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

            
                

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            Headings. Headings are given to the Sections and subsections of the U.S. Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the U.S. Plan or any provision thereof.

            Section 16 Compliance. The U.S. Plan is intended to comply in all respects with Rule 16b-3 or any successor provision, as in effect from time to time, and in all events the U.S. Plan shall be construed in accordance with the requirements of Rule 16b-3. If any U.S. Plan provision does not comply with Rule 16b-3 as hereafter amended or interpreted, the provision
            shall be deemed inoperative. The Board of Directors, in its absolute discretion, may bifurcate the U.S. Plan so as to restrict, limit or condition the use of any provision of the U.S. Plan with respect to persons who are officers or directors subject to Section 16 of the Exchange Act without so restricting, limiting or conditioning the U.S. Plan with respect to other Eligible Persons.

            Conditions Precedent to Issuance of Shares. Shares shall not be issued pursuant to the exercise or payment of the purchase price relating to an Award unless such exercise or payment and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act, the Exchange Act, the rules and
            regulations promulgated thereunder, the requirements of any Securities Exchange and the laws of the Province of British Columbia. As a condition to the exercise or payment of the purchase price relating to such Award, the Company may require that the person exercising or paying the purchase price represent and warrant that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the
            Company, such a representation and warranty is required by law.

            CONSULTATION WITH PROFESSIONAL TAX AND INVESTMENT ADVISORS. THE HOLDER OF ANY AWARD GRANTED HEREUNDER ACKNOWLEDGES THAT THE GRANT, EXERCISE, VESTING OR ANY PAYMENT WITH RESPECT TO SUCH AN AWARD, AND THE SALE OR OTHER TAXABLE DISPOSITION OF THE SHARES ACQUIRED PURSUANT TO THE U.S. PLAN, MAY HAVE TAX CONSEQUENCES PURSUANT TO THE CODE OR UNDER LOCAL, STATE OR INTERNATIONAL TAX LAWS.
            SUCH A HOLDER FURTHER ACKNOWLEDGES THAT SUCH HOLDER IS RELYING SOLELY AND EXCLUSIVELY ON THE HOLDER’S OWN PROFESSIONAL TAX AND INVESTMENT ADVISORS WITH RESPECT TO ANY AND ALL SUCH MATTERS (AND IS NOT RELYING, IN ANY MANNER, ON THE COMPANY OR ANY OF ITS EMPLOYEES OR REPRESENTATIVES). FINALLY, SUCH A HOLDER UNDERSTANDS AND AGREES THAT ANY AND ALL TAX CONSEQUENCES RESULTING FROM THE AWARD AND ITS GRANT, EXERCISE, VESTING OR ANY PAYMENT WITH RESPECT THERETO, AND THE SALE OR OTHER
            TAXABLE DISPOSITION OF THE SHARES ACQUIRED PURSUANT TO THE U.S. PLAN, IS SOLELY AND EXCLUSIVELY THE RESPONSIBILITY OF SUCH HOLDER WITHOUT ANY EXPECTATION OR UNDERSTANDING THAT THE COMPANY OR ANY OF ITS EMPLOYEES OR REPRESENTATIVES WILL PAY OR REIMBURSE SUCH HOLDER FOR SUCH TAXES OR OTHER ITEMS.

            EFFECTIVE DATE OF THE U.S. PLAN

            The U.S. Plan shall be effective upon its adoption by the Board, provided, however, that in the event that the U.S. Plan, separately or in conjunction with the Plan, is not approved by the stockholders of the Company within one year thereafter, the U.S. Plan will be terminated and
            all Awards granted under the U.S. Plan will be terminated and deemed null and void.

            
                

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            TERM OF THE U.S. PLAN

            No Award shall be granted under the U.S. Plan after ten years from earlier of date of adoption of the U.S. Plan by Board or date of stockholder approval or any earlier date of discontinuation or termination established pursuant to Section 7(a) of the U.S. Plan. However, unless otherwise expressly provided in the U.S. Plan or in an applicable Award Agreement, any Award
            theretofore granted may extend beyond such date, and the authority of the Board provided for hereunder with respect to the U.S. Plan and any Awards, and the authority of the Board to amend the U.S. Plan, shall extend beyond the termination of the U.S. Plan.

             

             

            
                

                10Exhibit 10.1 (W0196388).DOC

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made as of January 12, 2009, between MID-WISCONSIN FINANCIAL SERVICES, INC., its successors and assigns (the “Company”) and JAMES F. WARSAW (the “Executive”).  

RECITALS

The Company and the Executive acknowledge the following:

A.

The Executive has valuable expertise and experience in the Company’s business which will enable him to provide valuable business and management services to the Company.

B.

The Company desires to employ the Executive and the Executive desires to accept such employment on the terms and conditions set forth in this Agreement.

C.

The Executive’s employment is expressly conditioned upon entering into this Agreement and the Company will not employ the Executive absent his execution of this Agreement.

AGREEMENTS

In consideration of the mutual covenants and agreements set forth in this Agreement, the parties agree as follows:

1.

Employment.  The Company employs the Executive and the Executive accepts employment with the Company on the terms and conditions set forth in this Agreement.

2.

Term.  The term of the Executive’s employment shall commence on the date of this Agreement and continue until January 12, 2012, unless sooner terminated in accordance with the terms hereof (the “Employment Period”).

3.

Duties.  The Executive shall serve as President and Chief Executive Officer of the Company and will, under the direction of the Board of Directors of the Company, faithfully and to the best of his ability perform the duties assigned to him from time to time by the Board of Directors.  The Executive agrees to devote his entire business time, effort, skill and attention to the discharge of such duties while employed by the Company.  During the Employment Period, Executive shall be appointed to the Board of Directors of the Mid-Wisconsin Bank (the “Bank”) and shall also be nominated for election to the Board of Directors of the Company at the Company’s annual meeting of shareholders.  Executive shall not receive a separate fee for sitting on the Board of Directors of the Company or the Bank.  Executive may also be appointed to assume the duties of President of the Bank.  

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4.

Compensation.  The Executive shall receive a base salary of $230,000 per year (“Base Salary”) for all duties performed on behalf of the Company, the Bank and their affiliates, which will be payable in regular installments in accordance with the Company’s regular payroll practices and which will be subject to ordinary tax withholding and all required deductions.  Except as otherwise provided, the Company’s obligation to pay Base Salary shall terminate upon termination of this Agreement.

5.

Benefits.

(a)

Insurance.  The Executive shall be eligible to participate in any group health, life, dental, or other group insurance plan offered by the Company to its executive employees, subject to the terms, provisions and limitations of such plans or programs, during the Employment Period.  The Executive shall pay any required employee contribution for such plans.

(b)

Reimbursement for Reasonable Business Expenses.  The Company shall reimburse the Executive for reasonable expenses incurred by him in connection with the performance of his duties pursuant to this Agreement, which are consistent with the Company’s policies in effect from time to time, including, but not limited to, travel expenses, expenses in connection with seminars, professional conventions or similar professional functions and other reasonable business expenses.  The Executive agrees to provide the Company with receipts and/or documentation sufficient to permit the Company to take its full business expense deduction.

(c)

Automobile.  The Company agrees to reimburse the Executive for an amount to be agreed upon by the Executive and the Company for the lease of a vehicle by the Executive.  In the alternative, the Company and the Executive may agree that the Company will purchase a mutually agreeable vehicle for the exclusive use of the Executive.  Additionally, the Company will pay for the gas used for business purposes.  All maintenance and insurance expense for the automobile is the responsibility of the Company.  The vehicle will be used in accordance with all Company policies and procedures.

(d)

Vacation.  The Executive shall be entitled to four weeks of paid vacation annually, which must be used during the applicable year and not rolled over to subsequent years.  The Executive and the Company shall mutually determine the time and intervals of such vacation.

(e)

Bonuses.  The Executive will participate in a cash bonus plan which will provide for a target bonus equal to 30% of his Base Salary and a maximum bonus equal to 50% of his Base Salary.  The criteria for receiving the bonus will be agreed to annually by the Executive and the Board of Directors of the Company.  The criteria shall be based 80% on Company and Bank-wide criteria and 20% shall be based on achieving individual goals set by the Board of Directors and the Executive.

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(f)

Other Benefits.  Executive shall also be eligible to receive fringe benefits and to participate in any other retirement or welfare benefit plan or program generally offered by the Company to its executive employees, subject to the terms, provisions and limitations of such plans or programs during the Employment Period.

6.

Termination of Employment.

(a)

Termination of the Employment.  The employment of the Executive shall be terminated before the originally anticipated end of the Employment Period (i) upon the Executive’s death or Disability; (ii) upon the delivery to the Company of the Executive’s written notice of resignation or (iii) upon the delivery to the Executive of the Company’s written notice of termination with or without Cause or specified reason.

(b)

Definitions.

(i)

For purposes of this Agreement, “Disability” shall mean [a] a physical or mental condition which qualifies as a total and permanent disability under the terms of any plan or policy maintained by the Company and for which the Executive is eligible to receive benefits under such plan or disability policy, or [b] if the Executive does not participate in a disability plan, or is not covered by a disability policy, of the Company, “Disability” means the permanent and total inability of a participant by reason of mental or physical infirmity, or both, to perform the work customarily assigned to him or her, if a medical doctor selected or approved by the Board of Directors, and knowledgeable in the field of such infirmity, advises the Company either that it is not possible to determine when such Disability will terminate or that it appears probable that such Disability will continue for a period of at least one year.

(ii)

For purposes of this Agreement, “Cause” shall mean any one or more of the following on the part of the Executive:  [a] the commission of an act which results in a payment of a claim filed by the Company or the Bank under a blanket banker fidelity bond policy as from time to time and at any time maintained; [b] an intentional and willful failure to substantially perform his duties; [c] willful misconduct in the course of the Executive’s employment which is demonstrably and materially injurious to the Company or the Bank; [d] breach of a fiduciary duty involving personal profit or acts or omissions of personal dishonesty, including, but not limited to, commission of any crime of theft, embezzlement, misapplication of funds, unauthorized issuance of obligations, or false entries; [e] any intentional, reckless, or negligent act or omission to act which results in the violation by the Executive of any policy established by the Company or the Bank which is designed to insure compliance with applicable banking, securities, employment discrimination laws, except any act done by the Executive in good faith, as determined in the reasonable discretion of the Board of Directors, or which results in a violation of such policies or law which is, in the reasonable sole discretion of such Board of Directors, immaterial; [f] material breach of the terms of this Agreement by the Executive, which remains uncured after 15 days’ notice from the Company; or [g] failure of the Company to meet the objectives set forth on Exhibit A for any one-year period. 

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(iii)

For purposes of this Agreement, “Change of Control” shall mean:

(1)

the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either [i] the then outstanding shares of common stock of the Company (the “Outstanding Common Stock”) or [ii] the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change of Control:  [i] any acquisition directly from the Company, [ii] any acquisition by the Company, [iii] any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or [iv] any acquisition by any corporation pursuant to a transaction which complies with clauses [i], [ii] and [iii] of subsection [c] of this definition; or

(2)

individuals who, as of the date hereof, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of the Company; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors of the Company; or

(3)

approval by the stockholders of the Company of a reorganization, merger or consolidation (a “Business Combination”), in each case, unless, following such Business Combination, [i] all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Common Stock and Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company through one or more Subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Common Stock and Outstanding Voting Securities, as the case may be; [ii] no Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination; and [iii] at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent 

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Board at the time of the execution of the initial agreement, or of the action of the Board of Directors of the Company, providing for such Business Combination; or

(4)

approval by the stockholders of the Company of (i) a complete liquidation or dissolution of the Company or (ii) the sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation, with respect to which following such sale or other disposition, [i] more than 60% of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Common Stock and Outstanding Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Common Stock and Outstanding Voting Securities, as the case may be; [ii] less than 30% of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by any Person (excluding any employee benefit plan (or related trust) of the Company or such corporation), except to the extent that such Person owned 30% or more of the Outstanding Common Stock or Outstanding Voting Securities prior to the sale or disposition; and [iii] at least a majority of the members of the board of directors of such corporation were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors of the Company, providing for such sale or other disposition of assets of the Company or were elected, appointed or nominated by the Board of Directors of the Company.

(c)

Termination by the Company for Cause, Death or Disability, or Resignation by the Executive.  In the event of termination of the Executive’s employment by the Company for Cause, death or Disability, or the resignation by the Executive, payments of the Executive’s Base Salary shall be prorated to the date of termination.  The Company shall have no further obligation to the Executive, except to the extent such obligations may be imposed by applicable law or under the terms of a Company plan or program in which the Executive is a participant.

(d)

Termination Without Cause.  If the Executive’s employment is terminated by the Company for any reason other than for Cause, Disability or death, or if this Agreement is terminated by the Company for what the Company believes is Cause and it is ultimately determined by a court of competent jurisdiction that the Executive was terminated without Cause, the Executive shall receive as severance for such termination an amount equal to one year’s then Base Salary; provided, however, that if such termination occurs within one year after the occurrence of, or in contemplation of, a Change in Control, then Executive shall be entitled to receive $650,000 (without gross up for taxes or any other amounts).  Such payments shall be made in accordance with normal payroll practices of the Company from the date of termination to the first anniversary of the date of termination; provided, however, that if such payment is equal to $650,000 as provided in the prior sentence, such amount shall be paid from the 

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termination date to the third anniversary of the termination date.  During the 18-month period following a termination under this paragraph 6(d), the Company shall also reimburse the Executive for amounts paid, if any, to continue medical, dental and health coverage pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act.  The Company shall have no further obligation to the Executive except to the extent such obligations may be imposed by applicable law or under the terms of a Company plan or program in which Executive is a participant.

7.

Non-competition/Non-solicitation/Confidential Information.  Executive acknowledges that the development of personal contacts and relationships is an essential element of the Company’s and the Bank’s business, that the Company and the Bank have invested considerable time and money in development of such contacts and relationships, that the Company and the Bank could suffer irreparable harm if he were to leave the Company’s employment and solicit the business of customers of the Company or the Bank and that it is reasonable to protect the Company and the Bank against competitive activities by the Executive.  Executive covenants and agrees, in recognition of the foregoing and in consideration of the mutual promises contained herein, that in the event of a termination of his employment with the Company, Executive shall not accept employment with any Significant Competitor of the Company for a period of eighteen (18) months following such termination.  For purposes of this Agreement, the term “Significant Competitor” means any financial institution including, but not limited to, any trust company, bank, savings and loan association, credit union, or mortgage company which, at the time of termination of Executive’s employment with the Company or during the period of this covenant not to compete, has a home, branch or other office within a 25-mile radius of any office operated or maintained by the Company or the Bank (the “Territory”).

Executive agrees that during the term of his employment with the Company, and for a term of eighteen (18) months thereafter, he will not, directly or indirectly, within the Territory, on behalf of himself or on behalf of any other individual or entity, as an agent or otherwise contact, influence or encourage any of the customers of the Company or the Bank, of which Executive has knowledge or based on his capacity of employment for the Company or the Bank should reasonably have had knowledge, for the purpose of soliciting business or inducing such customer to acquire any product or service that is provided by the Company or the Bank from any entity other than the Company or the Bank.

Executive agrees that during the term of his employment with the Company, and for a period of eighteen (18) months thereafter, he will not, directly or indirectly, encourage, induce, or entice any employee of the Company or the Bank to leave the employment of the Company or the Bank.

Executive agrees that the non-competition and non solicitation provisions set forth herein are necessary for the protection of the Company and its affiliates and are reasonably limited as to (a) the scope of activities affected, (b) their duration and geographic scope, and (c) their effect on Executive and the public.  In the event Executive violates the non-competition and non-solicitation provisions set forth herein, the Company shall be entitled, in addition to its other legal remedies, to enjoin the employment of Executive with any Significant Competitor for 

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the period set forth herein.  If Executive violates this covenant and the Company brings legal action for injunctive or other relief, the Company shall not, as a result of the time involved in obtaining such relief, be deprived of the benefit of the full period of the restrictive covenant.  Accordingly, the covenant shall be deemed to have the duration specified herein, computed from the date relief is granted, but reduced by any period between commencement of the period and the date of the first violation.

Executive acknowledges that as a result of his employment with the Company or its affiliates, Executive has access to confidential information concerning the Company’s business, customers and services.  Executive agrees that during the Employment Period and for a period of eighteen (18) months subsequent thereto, he will not, directly or indirectly, whether in original, duplicated, computerized or other form, use, disclose or divulge to any person, agency, firm, corporation or other entity in the Territory any confidential or proprietary information, including, without limitation, customer lists, reports, files, manuals, training materials, records or information of any kind, or any other secret or confidential information pertaining to the products, services, customers or prospective customers, sales, technology and business affairs or methods of the Company or any of its affiliates (collectively “Confidential Information”) which Executive acquires or has access to during the Employment Period.  Notwithstanding the foregoing, Confidential Information shall not include (i) information which becomes generally available to the public through no fault of the Executive or (ii) information that no longer provides benefit to the Company or its affiliates.  Executive agrees that he will not at any time either during or subsequent to his employment with the Company remove Confidential Information, in any form whatsoever, from the premises or data base of the Company or its affiliates, except as required in the ordinary course of business as is necessary to perform Executive’s duties or as required by applicable law.  In the event of Executive’s termination from employment from the Company for any reason, Executive shall immediately return all Confidential Information of the Company, including any original, computerized or duplicated records to the Company.

Executive agrees that if he violates the covenants under this section, the Company shall be entitled to an accounting and repayments of all profits, compensation, commissions and other remuneration or benefits which the Executive has realized or may realize as the result of or in connection with any such violation.  Executive further agrees that money damages may be difficult to ascertain in case of a breach of this covenant, and Executive therefore agrees that the Company or its affiliates shall be entitled to injunctive relief in addition to any other remedy to which the Company or its affiliates may be entitled.

8.

Common Law of Torts and Trade Secrets.  The parties agree that nothing in this Agreement shall be construed to limit or negate the statutory or common law of torts or trade secrets where it provides the Company with broader protection than that provided herein.

9.

Specific Performance.  The Executive acknowledges and agrees that irreparable injury to the Company may result in the event the Executive engages in any act in violation of the provisions of Section 7 and that the remedy at law for the breach of any such covenant will be inadequate, the Executive agrees that the Company shall be entitled, in addition to such other 

-7-

remedies and damages as may be available to it by law or under this Agreement, to injunctive relief to enforce the provisions of Section 7 without the necessity of providing a bond.

10.

Waiver.  The failure of either party to insist, in any one or more instances, upon performance of the terms or conditions of this Agreement shall not be construed as a waiver or a relinquishment of any right granted hereunder or of the future performance of any such term, covenant or condition.

11.

Notices.  Any notice to be given hereunder shall be deemed sufficient if addressed in writing and delivered by registered or certified mail or delivered personally, in the case of the Company, to its principal business office and, in the case of the Executive, to his address appearing on the records of the Company, or to such other address as he may designate in writing to the Company.

12.

Severability.  In the event that any provision shall be held to be invalid or unenforceable for any reason whatsoever, it is agreed such invalidity or unenforceability shall not affect any other provision of this Agreement and the remaining covenants, restrictions and provisions hereof shall remain in full force and effect and any court of competent jurisdiction may so modify the objectionable provision as to make it valid, reasonable and enforceable.

13.

Complete Agreement.  Except as otherwise expressly set forth herein, this document and other agreements of even dates herewith, embody the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

14.

Amendment.  This Agreement may only be amended by an agreement in writing signed by all of the parties hereto.

15.

Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin, without reference to principles of conflicts of laws.

16.

Benefit.  This Agreement shall be binding upon and inure to the benefit of and shall be enforceable by and against the Company, its successors and assigns and the Executive, his heirs, beneficiaries and legal representatives.

17.

Code Section 409A Compliance.  Notwithstanding any other provision of this Agreement no severance benefit shall be paid pursuant to paragraph 6(d) if such payment would violate the requirements of Code Section 409A and cause the Executive to be subject to the interest and additional tax imposed pursuant to Code Section 409A(a)(1)(B), and any such payment otherwise provided for in such paragraph 6(d) shall be modified so that the timing will then comply with the requirements of Code Section 409A so as to preclude the application of Code Section 409A(a)(1)(B).  The modifications required by this paragraph include, but are not limited to, the following:

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(a)

Termination of Employment.  No severance payment shall be made prior to the date on which the Executive has incurred a termination of employment from the Company and each other member of the controlled group to which the Company belongs, as determined pursuant to Code 409A (the “Controlled Group”).

(b)

Specified Employee.  If the Executive is a “Specified Employee” on the date of his termination of employment as determined pursuant to Code Section 409A, no payment which constitutes deferred compensation under Code Section 409A shall be made until the first payroll date (the “Permitted Payment Date”) which is not less than six months subsequent to the date of the Executive’s termination of employment from the Company and each other member of the Controlled Group.  For purposes of this paragraph 17(b), the Specified Employee identification date shall be December 31, and the Specified Employee effective date shall be April 1.  Any payments made on the Permitted Payment Date pursuant to this paragraph 17b shall include any payments which otherwise would have been made pursuant to paragraph 6d to the Executive from his termination date through the Permitted Payment Date but for the fact that he was a Specified Employee on the date of his termination of employment.

IN WITNESS WHEREOF, the parties have executed or caused this Employment Agreement to be executed as of the date first above written.

MID-WISCONSIN FINANCIAL SERVICES, INC.

By:  KIM A. GOWEY

Kim A. Gowey

Its:  Chairman of the Board

EXECUTIVE:

   JAMES F. WARSAW

Name:  James F. Warsaw

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