Document:

exv10w2

Exhibit 10.2

SCHEDULE A

Apache Corporation

Form of Restricted Stock Unit Award Agreement

(Jan 2010 Bridge Awards)

GRANT NOTICE

	 	 	 
	Recipient Name:

	 	[Name]
	 
	 	 
	Company:

	 	Apache Corporation
	 
	 	 
	Notice:

	 	A summary of the terms of your grant of Restricted Stock
Units (“RSUs”) is set out in this notice (the “Grant
Notice”) but subject always to the terms of the Apache
Corporation 2007 Omnibus Equity Compensation Plan (the
“Plan”) and the Restricted Stock Unit Award Agreement (the
“Agreement”). In the event of any inconsistency between
the terms of this Grant Notice, the terms of the Plan and
the Agreement, the terms of the Plan and the Agreement
shall prevail.
	 
	 	 
	 

	 	You have been awarded a grant of Apache Corporation RSUs in
accordance with the terms of the Plan and the Agreement.
	 
	 	 
	 

	 	Details of the RSUs which you are entitled to receive is provided to
you in this Grant Notice and maintained on your account at
netbenefits.fidelity.com
	 
	 	 
	Type of Award:

	 	Restricted Stock Unit(s)
	 
	 	 
	Restricted Stock Unit:

	 	A Restricted Stock Unit (“RSU”) as defined in the
Plan and meaning the right granted to the Recipient
to receive one share of Stock for each RSU at the
end of the specified Vesting Period.
	 
	 	 
	Stock:

	 	The $0.625 par value common stock of the Company or
as otherwise defined in the Plan.
	 
	 	 
	Grant:

	 	A Grant related to                      Restricted Stock Units
	 
	 	 
	Grant Date:

	 	January 15, 2010
	 
	 	 
	Conditions:

	 	Once vested, the Recipient shall be paid the value
of his or her RSUs in shares of Stock (net of
shares withheld for applicable tax withholdings).

 

 

	 	 	 
	Vesting:

	 	RSUs granted shall vest (i.e., restrictions shall
lapse) in accordance with the following schedule,
provided that the Recipient remains employed as an
Eligible Person as of such vesting date:
	 
	 	 
	 

	 	As of the Grant Date — 1/3 vested
	 
	 	 
	 

	 	First anniversary of the Grant Date — 1/3 vested
	 
	 	 
	 

	 	Second anniversary of the Grant Date — 1/3 vested
	 
	 	 
	 

	 	Vesting is accelerated to 100% upon the Recipient’s death during the
Vesting Period. Upon vesting, the applicable shares of Stock,
subject to required tax withholding, shall be transferred by the
Company to the Recipient within thirty (30) days of the vesting date.
	 
	 	 
	 

	 	Vesting is accelerated to 100% upon a Recipient’s Involuntary
Termination or Voluntary Termination with Cause occurring on or after
a Change of Control during the Vesting Period. Upon vesting, the
applicable shares of Stock, subject to required tax withholding,
shall be transferred by the Company to the Recipient within thirty
(30) days of the vesting date.
	 
	 	 
	 

	 	Notwithstanding the foregoing, if the payment of the Stock is subject
to Internal Revenue Code Section 409A, payment will not occur until
the earlier of (1) the date payment would have been due if the Change
of Control had not occurred or (2) the date that the Change of
Control constitutes a “change in the ownership or effective control
of the corporation, or in the ownership of a substantial portion of
the assets of the corporation” within the meaning of Internal Revenue
Code Section 409A(a)(2)(A)(v).
	 
	 	 
	Withholding:

	 	A portion of the Stock subject to each RSU will be withheld
to cover required taxes, and the net number of shares of
Stock will be paid to the Recipient.
	 
	 	 
	Acceptance:

	 	Please complete the on-line grant acceptance as promptly as
possible to accept or reject your Grant. You can access this
through your account at netbenefits.fidelity.com. By
accepting your Grant, you will have agreed to the terms and
conditions set forth in the Agreement and the terms and
conditions of the Plan. If you do not accept your Grant you
will be unable to receive your RSUs.

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Apache Corporation

Form of Restricted Stock Unit Award Agreement

     This Restricted Stock Unit Award Agreement (the “Agreement”) relating to a grant of Restricted
Stock Units (as defined in the rules of the Apache Corporation 2007 Omnibus Equity Compensation
Plan (the “Plan”) (the “Grant”), dated as of the Grant Date set forth in the Notice of Award under
the Agreement attached as Schedule A hereto (the “Grant Notice”), is made between Apache
Corporation (together with its Affiliates, the “Company”) and each Recipient. The Grant Notice is
included in and made part of this Agreement.

     In this Agreement and each Grant Notice, unless the context otherwise requires, words and
expressions shall have the meanings given to them in the Plan except as herein defined.

Definitions

     “Grant Notice” means the separate notice given to each Recipient specifying the number
of RSUs granted to the Recipient (the “Grant”).

     “Fair Market Value” means the closing price of the Stock as reported on The New York
Stock Exchange, Inc. Composite Transactions Reporting System (“Composite Tape”) for a particular
date or, if the Stock is not so listed at any time, as reported on NASDAQ or on such other exchange
or electronic trading system as, on the date in question, reports the largest number of traded
shares of stock. If there are no Stock transactions on such date, the Fair Market Value shall be
determined as of the immediately preceding date on which there were Stock transactions.

     “Involuntary Termination” means the termination of employment of the Recipient by the
Company or its successor for any reason on or after a Change of Control; provided, that the
termination does not result from an act of the Recipient that (i) constitutes common-law fraud, a
felony, or a gross malfeasance of duty, or (ii) is materially detrimental to the best interests of
the Company or its successor.

     “Payout Amount” means the vested portion of the Grant expressed as shares of Stock
underlying the RSUs.

     “Recipient” means an Eligible Person designated by the Committee at the Grant Date to
receive one or more Grants under the Plan.

     “Voluntary Termination with Cause” occurs upon a Recipient’s separation from service
of his own volition and one or more of the following conditions occurs without the Recipient’s
consent on or after a Change of Control:

	 	(a)	 	There is a material diminution in the Recipient’s base compensation, compared
to his rate of base compensation on the date of the Change of Control.

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	 	(b)	 	There is a material diminution in the Recipient’s authority, duties or
responsibilities.
	 
	 	(c)	 	There is a material diminution in the authority, duties or responsibilities of
the Recipient’s supervisor, such as a requirement that the Recipient (or his
supervisor) report to a corporate officer or employee instead of reporting directly to
the board of directors.
	 
	 	(d)	 	There is a material diminution in the budget over which the Recipient retains
authority.
	 
	 	(e)	 	There is a material change in the geographic location at which the Recipient
must perform his service, including, for example the assignment of the Recipient to a
regular workplace that is more than 50 miles from his regular workplace on the date of
the Change of Control.

	 	 	The Recipient must notify the Company of the existence of one or more adverse conditions
specified in clauses (a) through (e) above within 90 days of the initial existence of the
adverse condition. The notice must be provided in writing to Apache Corporation’s Vice
President, Human Resources or his/her delegate. The notice may be provided by personal
delivery or it may be sent by email, inter-office mail, regular mail (whether or not
certified), fax, or any similar method. Apache Corporation’s Vice President, Human
Resources or his/her delegate shall acknowledge receipt of the notice within 5 business
days; the acknowledgement shall be sent to the Recipient by certified mail. Notwithstanding
the foregoing provisions of this definition, if the Company remedies the adverse condition
within 30 days of being notified of the adverse condition, no Voluntary Termination with
Cause shall occur.

Terms

     1. Grant of RSUs. Subject to the provisions of this Agreement and the provisions of
the Plan and Grant Notice, the Company shall grant to the Recipient, pursuant to the Plan, a right
to receive the number of RSUs set forth in the Recipient’s Grant Notice. The Grant shall give the
Recipient the right, upon vesting, to an equal number of shares of $0.625 par value common stock of
the Company (“Stock”).

     2. Vesting and Payment of Stock. Subject to the provisions of Section 3, the
entitlement to receive the number of shares of Stock pursuant to the RSUs comprising the Grant
Amount shall vest in accordance with the schedule set forth in the Grant Notice; provided that the
Recipient remains employed as an Eligible Person on such applicable vesting dates. Such Stock,
subject to applicable withholding, shall be transferred by the Company to the Recipient within
thirty (30) days of the vesting date and not later than March 15 of the year following the year in
which the RSUs vest.

     3. Termination of Employment, Death or Disability. Except as set forth below, each
Grant shall be subject to the condition that the Recipient has remained an Eligible Person from the
award of the Grant of RSUs until the applicable vesting date as follows:

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     (a) If the Recipient voluntarily leaves the employment of the Company (including retirement),
or if the employment of the Recipient is terminated by the Company for any reason or no reason, any
RSUs granted to the Recipient pursuant to the Grant Notice not previously vested shall thereafter
be void and forfeited for all purposes.

     (b) A Recipient shall become 100% fully vested in all RSUs under the Grant Notice on the date
the Recipient dies while employed by the Company. Payment shall occur as soon as administratively
convenient following the date the Recipient dies, but in no event shall the payment occur later
than March 15 of the calendar year immediately following the calendar year in which the Recipient
died. If the Recipient dies before receiving payment, the payment shall be made to the Recipient’s
estate.

     4. Change of Control. In the event of a Recipient’s Involuntary Termination or
Voluntary Termination with Cause occurring on or after a Change of Control of the Company which
occurs during the Vesting Period, the Recipient shall become 100% fully vested in the unvested RSUs
granted to the Recipient pursuant to the Grant Notice as of the date of his Involuntary Termination
or Voluntary Termination with Cause. Subject to Section 12.1(d) of the Plan, payment shall occur
within thirty (30) days of the Change of Control.

     5. Payment and Tax Withholding. Upon receipt of any entitlement to Stock under this
Agreement, the Recipient shall make appropriate arrangements with the Company to provide for the
amount of minimum tax withholding required by law, including without limitation Sections 3102 and
3402 or any successor section(s) of the Internal Revenue Code and applicable state and local income
and other tax laws. Each payment of the Payout Amount shall be made in shares of Stock, determined
by the Committee, such that the withheld number of shares shall be sufficient to cover the
withholding amount required by this Section (including any amount to cover benefit tax charges
arising thereon). The payment of a Payout Amount shall be based on the Fair Market Value of the
shares of Stock on the applicable date of vesting to which such tax withholding relates. Where
appropriate, shares shall be withheld by the Company to satisfy applicable tax withholding
requirements rather than paid directly to the Recipient.

     6. No Ownership Rights Prior to Issuance of Stock. Neither the Recipient nor any
other person shall become the beneficial owner of the Stock underlying the Grant, nor have any
rights of a shareholder (including, without limitation, dividend and voting rights) with respect to
any such Stock, unless and until and after such Stock has been actually issued to the Recipient and
transferred on the books and records of the Company or its agent in accordance with the terms of
the Plan and this Agreement.

     7. Non-Transferability of Stock. Stock issued pursuant to a Grant shall not be
transferable otherwise than by will or the laws of descent and distribution, subject to the
conditions and exceptions set forth in Section 14.2 of the Plan.

     8. No Right to Continued Employment. Neither the RSUs or Stock issued pursuant to a
Grant nor any terms contained in this Agreement shall confer upon the Recipient any express or
implied right to be retained in the employment or service of the Company for any period, nor
restrict in any way the right of the Company, which right is hereby expressly reserved, to
terminate the Recipient’s employment or service at any time for any reason or no reason. The

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Recipient acknowledges and agrees that any right to receive RSUs or Stock pursuant to a Grant
is earned only by continuing as an employee of the Company at the will of the Company, or
satisfaction of any other applicable terms and conditions contained in the Plan and this Agreement,
and not through the act of being hired, being granted the Grant, or acquiring RSUs or Stock
pursuant to the Grant hereunder.

     9. The Plan. In consideration for this Grant, the Recipient agrees to comply with the
terms of the Plan and this Agreement. This Agreement is subject to all the terms, provisions and
conditions of the Plan, which are incorporated herein by reference, and to such regulations as may
from time to time be adopted by the Committee. Unless defined herein, capitalized terms are used
herein as defined in the Plan. In the event of any conflict between the provisions of the Plan and
this Agreement, the provisions of the Plan shall control, and this Agreement shall be deemed to be
modified accordingly. The Plan and the prospectus describing the Plan can be found on the
Company’s HR intranet and the Plan document can be found on Fidelity’s website
(netbenefits.fidelity.com). A paper copy of the Plan and the prospectus shall be provided to the
recipient upon the Recipient’s written request to the Company at 2000 Post Oak Blvd., Suite 100,
Houston, Texas 77056-4400, Attention: Corporate Secretary.

     10. Compliance with Laws and Regulations.

     (a) The Grant and any obligation of the Company to deliver RSUs or Stock hereunder shall be
subject in all respects to (i) all applicable laws, rules and regulations and (ii) any
registration, qualification, approvals or other requirements imposed by any government or
regulatory agency or body which the Committee shall, in its discretion, determine to be necessary
or applicable. Moreover, the Company shall not deliver any certificates for Stock to the Recipient
or any other person pursuant to this Agreement if doing so would be contrary to applicable law. If
at any time the Company determines, in its discretion, that the listing, registration or
qualification of Stock upon any national securities exchange or under any applicable law, or the
consent or approval of any governmental regulatory body, is necessary or desirable, the Company
shall not be required to deliver any certificates for Stock to the Recipient or any other person
pursuant to this Agreement unless and until such listing, registration, qualification, consent or
approval has been effected or obtained, or otherwise provided for, free of any conditions not
acceptable to the Company.

     (b) It is intended that any Stock received in respect of the Grant shall have been registered
under the Securities Act of 1933 (“Securities Act”). If the Recipient is an “affiliate” of the
Company, as that term is defined in Rule 144 under the Securities Act (“Rule 144”), the Recipient
may not sell the Stock received except in compliance with Rule 144. Certificates representing
Stock issued to an “affiliate” of the Company may bear a legend setting forth such restrictions on
the disposition or transfer of the Stock as the Company deems appropriate to comply with Federal
and state securities laws.

     (c) If, at any time, the Stock is not registered under the Securities Act, and/or there is no
current prospectus in effect under the Securities Act with respect to the Stock, the Recipient
shall execute, prior to the delivery of any Stock to the Recipient by the Company pursuant to this
Agreement, an agreement (in such form as the Company may specify) in which the Recipient represents
and warrants that the Recipient is purchasing or acquiring the Stock acquired under

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this Agreement for the Recipient’s own account, for investment only and not with a view to the
resale or distribution thereof, and represents and agrees that any subsequent offer for sale or
distribution of any kind of such Stock shall be made only pursuant to either (i) a registration
statement on an appropriate form under the Securities Act, which registration statement has become
effective and is current with regard to the Stock being offered or sold, or (ii) a specific
exemption from the registration requirements of the Securities Act, but in claiming such exemption
the Recipient shall, prior to any offer for sale of such Stock, obtain a prior favorable written
opinion, in form and substance satisfactory to the Company, from counsel for or approved by the
Company, as to the applicability of such exemption thereto.

     11. Notices. All notices by the Recipient or the Recipient’s assignees shall be
addressed to the Administrative Agent, Fidelity, through the Recipient’s account at
netbenefits.fidelity.com, or such other address as the Company may from time to time specify. All
notices to the Recipient shall be addressed to the Recipient at the Recipient’s address in the
Company’s records.

     12. Other Plans. The Recipient acknowledges that any income derived from the Grant
shall not affect the Recipient’s participation in, or benefits under, any other benefit plan or
other contract or arrangement maintained by the Company or any Affiliate.

     13. Terms of Employment. The Plan is a discretionary plan. The Recipient hereby
acknowledges that neither the plan nor this Agreement forms part of his terms of employment and
nothing in the Plan may be construed as imposing on the Company or any Affiliate a contractual
obligation to offer participation in the Plan to any employee of the Company or any Affiliate. The
Company or any Affiliate is under no obligation to grant further Stock to any Recipient under the
Plan. The Recipient hereby acknowledges that if he ceases to be an employee of the Company or any
Affiliate for any reason or no reason, he shall not be entitled by way of compensation for loss of
office or otherwise howsoever to any sum.

     14. Data Protection. By accepting this Agreement (whether by electronic means or
otherwise), the Recipient hereby consents to the holding and processing of personal data provided
by him to the Company for all purposes necessary for the operation of the Plan. These include, but
are not limited to:

     (a) administering and maintaining Recipient records;

     (b) providing information to any registrars, brokers or third party administrators of the
Plan; and

     (c) providing information to future purchasers of the Company or the business in which the
Recipient works.

*****

7Exhibit 10.1

        PAYMENT AGREEMENT AND GENERAL RELEASE

                  THIS PAYMENT AGREEMENT AND GENERAL RELEASE (this “Agreement”) is entered into this ______ day of November, 2009, by and between U.S. Precious Metals, Inc., a Delaware corporation (the “Parent”), with an office at 801 International Parkway, 5th Floor, Lake Mary, Florida 32746, and U.S. Precious Metals de Mexico, S.A. de C.V., a company formed under the laws of the United Mexican
        States (the “Subsidiary” and together with the Parent, each a “Company” and collectively, the “Companies”), with an office at Jacaranda 119, Col. Los Angeles, Michoacan, Morelia, C.P. 58100, and Duane Morris LLP, a Delaware limited liability partnership (“Duane Morris”), with an address at 111 S. Calvert Street, Suite 2000, Baltimore, MD 21202.

        RECITALS

                  WHEREAS, the Companies previously sought and obtained legal counsel and related services from Duane Morris, including, without limitation, legal counsel and related services performed in connection with regulatory and securities compliance, various financing arrangements, and general corporate representation (collectively, the “Engagement”);

                  WHEREAS, Duane Morris provided legal counsel and performed related services for the Companies consistent with the scope of the Engagement;

                  WHEREAS, as of the date of this Agreement, the Companies are indebted to Duane Morris in the amount of $1,297,678.39 (the “Existing Debt”) for legal counsel and related services rendered and disbursements not yet paid to Duane Morris in connection with the Engagement;

                  WHEREAS, the Companies have requested that Duane Morris make certain financial accommodations to the Companies with respect to payment of the Existing Debt and to continue to provide professional services to the Companies in connection with the Engagement (the “Continued Engagement”);

        

        

        

                  WHEREAS, the Companies agree, jointly and severally, to pay Duane Morris for any professional services rendered in connection with the Continued Engagement immediately upon invoice thereof and that all such amounts, together with any and all interest due and owing to Duane Morris and any and all other additional costs and fees under the terms of the Engagement, shall constitute additional indebtedness of the
        Companies to Duane Morris and shall be subject to the terms of this Agreement (such indebtedness, together with the Existing Debt, the “Debt”); 

                  WHEREAS, Duane Morris has agreed to continue to provide such professional services to the Companies in connection with the Engagement on the terms and conditions stated herein; and

                  WHEREAS, the Parent directly owns 100% of the equity securities of the Subsidiary (the “Equity Securities”) and has determined that its execution, delivery and performance of this Agreement and the other documents referred to herein directly and indirectly benefit, and are within the best interests of, the Parent.

                  NOW, THEREFORE, in consideration of the foregoing premises, and intending to be legally bound hereby, and in consideration of the mutual covenants, promises and forbearances set forth below, and other good and valuable consideration, receipt of which is hereby acknowledged, each of the Companies and Duane Morris hereby covenants, contracts and agrees as follows:

                  1. Incorporation of Recitals. The Recitals set forth above are true and correct and are incorporated herein by reference and made a binding part of this Agreement as though fully set forth herein.

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                  2. Acknowledgement of Debt. Each of the Companies acknowledges, affirms and agrees that (i) such Company receives direct and indirect benefits from the legal counsel and related services provided by Duane Morris to the other Company, (ii) all such legal counsel and related services were provided for the benefit of both Companies, (iii) the Existing Debt is validly due and owing to Duane Morris by both
        Companies on a joint and several basis, (iv) such Existing Debt has been documented by Duane Morris through the provision of invoices to the Parent, which invoices have not been paid (to the extent of the Existing Debt) or otherwise adjusted as of the date hereof, and (v) any additional Debt incurred shall be owing to Duane Morris by both Companies on a joint and several basis. 

                  3. Waiver of Defenses. Each Company waives any and all objections, defenses, counterclaims or other legal challenges of any kind or nature which it may have or claim to have against Duane Morris with respect to the Existing Debt.

                  4. Satisfaction of Debt.

                       (i) The Companies jointly and severally acknowledge and agree that (a) at all times on or after the date hereof, the Debt is immediately due and payable, without protest, presentment, demand, or further notice of any kind to either Company, all of which are expressly waived by each of the Companies, (b) although Duane Morris has not taken any collection actions with respect to the
        Debt as of the date hereof, Duane Morris reserves the right to take collection actions with respect to the Debt, in its sole discretion, at any time and from time to time, (c) in the event that Duane Morris elects, in its sole discretion, to take any collection actions with respect to the Debt, the Companies shall, subject to applicable laws, cooperate fully with any such collection actions and use their best efforts to ensure that the Debt is fully satisfied, (d) in the event of a
        Transaction (as defined below), the Companies shall pay the Debt in full, in immediately available funds, prior to or simultaneously with the consummation of any such Transaction, (e) in the event that Duane Morris discontinues or withdraws from its representation of either Company, the Companies shall immediately pay the Debt in full, in immediately available funds, (f) in the event that either Company commences any bankruptcy, reorganization, debt arrangement, or other case or
        proceeding under any state, federal or other bankruptcy or insolvency law, or any dissolution or liquidation proceeding or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any state, federal or other bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is involuntarily commenced against or in respect of either Company or an order for relief is entered in any such proceeding, the Companies shall immediately pay the Debt in full,
        in immediately available funds, and (g) the Companies shall pay the Debt in full in immediately available funds, on or prior to, in the event that Duane Morris, in its sole discretion, has elected not to take any collection actions and no Transaction has occurred as of such date.

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                       (ii) For purposes hereof, “Transaction” means, with respect to either Company, the first to occur of any one or more of the following:

                            (a) any Person (as defined in Section 13(d) and 14(d), as applicable, of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than (1) such Company or any trustee or other fiduciary thereof holding securities of such Company, (2) any Person acquiring securities from such Company solely pursuant to a written
        agreement with such Company, or (3) any company owned, directly or indirectly, by the stockholders of such Company in substantially the same proportions as their ownership of stock in such Company, is or becomes the Beneficial Owner (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of such Company representing fifty percent (50%) or more of the combined voting power of such Company’s then outstanding voting securities;

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                            (b) the consummation of a merger or consolidation of such Company with any other business entity, other than a merger or consolidation where no Person becomes the Beneficial Owner of a majority of the resulting voting power and where the voting securities of such Company outstanding immediately prior thereto continue to represent, either by remaining
        outstanding or by being converted into voting securities of the surviving or controlling entity, at least fifty percent (50%) of the combined voting power of the voting securities of such Company or such surviving or controlling entity outstanding immediately after such merger or consolidation; 

                            (c) the sale or disposition by such Company of all or substantially all of such Company’s assets; 

                            (d) any one or more investments in such Company on or after the date hereof, in the form of debt or equity or any combination thereof, which investments in the aggregate are equal to or greater than $5,000,000.00; or

                            (e) the dissolution, winding up or liquidation of the Company.

                  5. Negative Covenants. 

                       (i) Each of the Companies jointly and severally covenants and agrees that, from the date hereof, through such time as any portion of the Debt is outstanding, without the prior written consent of Duane Morris, which consent may be withheld in Duane Morris’ sole and absolute discretion, neither of the Companies will:

                            (a) create, incur, assume or suffer to exist, any indebtedness, secured or otherwise, in excess of $[_50,000_] in the aggregate, other than (x) trade payables arising in such Company’s ordinary course of business or (y) convertible promissory notes sold in connection with the Companies’ fundraising efforts, or any lien or encumbrance on
        any of its assets; or

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                            (b) voluntarily repay in whole or in part, or modify, any existing indebtedness (other than trade payables arising in such Company’s ordinary course of business), prior to the repayment of the Debt in full.

                       (ii) The Parent covenants and agrees that, from the date hereof, through such time as any portion of the Debt is outstanding, without the prior written consent of Duane Morris, which consent may be withheld in Duane Morris’ sole and absolute discretion, the Parent will not:

             (a) convey, sell, assign, lease or sublease, transfer (by operation of law or otherwise), exchange or otherwise dispose of any Equity Securities or any interest therein;

             (b) create or suffer to exist any lien or encumbrance upon or with respect to any Equity Securities; or

             (c) approve or consent to the issuance of (1) any additional equity securities of the Subsidiary, (2) any securities convertible voluntarily by the holder thereof or upon the occurrence or non-occurrence of any event or condition into, or exchangeable for, any equity securities of the Subsidiary, or (iii) any warrants, options, contracts or other commitments entitling any person or entity to purchase or otherwise
        acquire any equity securities of the Subsidiary.

                       (iii) The Subsidiary covenants and agrees that, from the date hereof, through such time as any portion of the Debt is outstanding, without the prior written consent of Duane Morris, which consent may be withheld in Duane Morris’ sole and absolute discretion, the Subsidiary will not:

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                 (a) declare, set aside or pay any cash dividend or other distribution on any of its equity securities;

                 (b) authorize, issue or sell or enter into any agreement or arrangement for the authorization, issuance or sale of (1) any additional equity securities of the Subsidiary, (2) any securities convertible voluntarily by the holder thereof or upon the occurrence or non-occurrence of any event or condition into, or exchangeable for, any equity securities of the Subsidiary, or (iii) any warrants,
        options, contracts or other commitments entitling any person or entity to purchase or otherwise acquire any equity securities of the Subsidiary; or

                 (c) violate any covenant or agreement contained in the Pledge Agreement to be entered into by and between the Subsidiary and Duane Morris substantially simultaneously with the execution of this Agreement (the “Pledge Agreement”).

                  6. Exercise of Remedies. Each of the Companies acknowledges and agrees that in the event that (i) it fails to make any payment of the Debt as and when due under the terms of this Agreement, (ii) it violates any covenant or fails to perform any other obligation under the terms of this Agreement, or (iii) the Subsidiary defaults under or violates any covenant, term or provision of, the Pledge Agreement,
        Duane Morris shall be entitled (a) to exercise any and all rights and remedies against the Companies which are available to Duane Morris under applicable law, including, without limitation, the commencement of litigation against either or both of the Companies for collection of the full amount of the Debt or any portion thereof which remains outstanding and the exercise of all rights and remedies available pursuant to the Pledge Agreement; (b) to recover from the Companies all
        attorneys’ fees and costs incurred by Duane Morris in connection therewith; (c) without further obligation, to cease performing any and all professional services for the Companies in connection with the Engagement; and (d) to take any and all such steps as may be necessary to withdraw from representation of the Companies in connection with the Engagement, to which the Companies shall not object or otherwise inhibit or challenge.

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                  7. Release. In consideration of the forbearance to date by Duane Morris with respect to payment of the Debt and the accommodations made to the Companies with respect to payment of the Debt as stated herein, the Companies, for themselves and their respective officers, directors, affiliates, partners, subsidiaries, divisions, agents, successors, and assigns (collectively, the “Client
        Parties”), hereby release and forever discharge Duane Morris and its present and former officers, directors, affiliates, partners, subsidiaries, divisions, agents, employees, insurers, successors, and assigns (collectively, the “Duane Morris Parties”), from any and all liabilities, claims, actions, causes of action or suits, presently asserted or unasserted, accrued or unaccrued, known or unknown, that the Client Parties had, now have, or may have, or could
        claim to have against the Duane Morris Parties in anyway arising from or related to the Engagement.

                  8. Confidentiality. The parties hereto agree that all terms and provisions of this Agreement, together with all matters concerning all dealings between them (collectively, the “Confidential Information”) shall remain strictly confidential, except to the extent that (i) any party hereto is required to report to any governmental, regulatory or insurance-related authority or company
        information contained herein; or (ii) Duane Morris enforces the terms of this Agreement and/or exercises its rights and remedies hereunder. Unless otherwise permitted by the terms of this paragraph, no aspect of the Confidential Information shall be voluntarily disclosed and, should any party be called upon by subpoena, deposition or otherwise to disclose any matter concerning the Confidential Information, it shall give notice to the other party in writing not less than ten (10) days
        prior to responding to such request for information.

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                  9. Integration. This Agreement contains the entire agreement between the parties hereto and the terms of this Agreement are contractual and not a mere recital.

                  10. Remedies Cumulative. The rights, powers and remedies of Duane Morris provided in this Agreement are cumulative and not exclusive of any right, power or remedy provided by law or equity, and no failure or delay on the part of Duane Morris in the exercise of any right, power, or remedy shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power, or remedy preclude
        other or further exercise thereof, or the exercise of any other right, power or remedy.

                  11. Companies’ Representations. Each Company represents that it (i) has carefully read this entire Agreement; (ii) has been advised by Duane Morris to consult with independent counsel of its choice concerning this Agreement and the meaning and significance thereof and has been afforded a reasonable period of time to do so; (iii) understands the contents hereof; and (iv) has entered into this
        Agreement voluntarily. 

                  12. Successors and Assigns. This Agreement shall be binding and inure to the benefit of the parties hereto and their respective successors and assigns.

                  13. Amendment and Waiver. No amendment of this Agreement, and no waiver, discharge or termination of any one or more of the provisions hereof, shall be effective unless set forth in writing and signed by the parties hereto. 

        9

        

        

        

                  14. Severability of Provisions. Any provision of this Agreement that is held to be inoperative, unenforceable, void or invalid in any jurisdiction shall, as to that jurisdiction, be ineffective, unenforceable, void or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability or validity of that provision in any other jurisdiction, and to this end the
        provisions of this Agreement are declared to be severable.

                  15. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and both of which taken together shall constitute one and the same document.

                  16. Governing Law. This Agreement shall be governed by Maryland law, without regard to its conflict of laws principles.

                  17. Authority to Sign. Each party represents that the person executing this Agreement on its behalf has been duly authorized to do so.

        [SIGNATURE PAGE FOLLOWS]

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                  AND NOW, intending to be lawfully bound, each Company and Duane Morris hereunder set their hand and seal as of the date first written above.

        	
                     

                	
                     

                	
                     

                
	
                     

                	
                    U.S. PRECIOUS METALS, INC.

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    By:

                	
                    /s/ M. Jack Kugler

                
	
                     

                	
                     

                	 
	
                     

                	
                    Name: M. Jack Kugler

                
	
                     

                	
                    Title: Chief Executive Officer

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    U.S. PRECIOUS METALS DE MEXICO, S.A. DE C.V.

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    By:

                	
                    /s/ David Burney

                
	
                     

                	
                     

                	 
	
                     

                	
                    Name: David Burney

                
	
                     

                	
                    Title: Managing Director

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    DUANE MORRIS LLP

                
	
                     

                	
                     

                	
                     

                
	
                     

                	
                    By:

                	
                    /s/ Keli B. Isaacson

                
	
                     

                	
                     

                	 
	
                     

                	
                    Name: Keli B. Isaacson

                
	
                     

                	
                    Title: Partner

                

        Payment Agreement and General Release

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