Document:

fc_ex1020b-80731.htm

    
      Exhibit
10.20(b)

      FIRSTGOLD
CORP.

      AMENDED

      AIRCRAFT
TIME SHARING AGREEMENT

       

      This
Aircraft Time Sharing Agreement ("Agreement") by and between
Firstgold Corp. ("Lessee"), a Delaware
corporation whose address is 3108 Gabbert Drive, Suite 210, Cameron Park,
California 95682 and ASD Aviation, Inc. (“Lessor"), whose address is 300
W. Second Street, Carson City, NV 89703 (collectively the “Parties”) is effective
December 1, 2006, and shall terminate on December 31, 2015 unless terminated
sooner by either party pursuant to Article 9 below.

       

      WHEREAS,
Lessor is legal owner of an aircraft ("Aircraft"), equipped with
engines and components as described in the Aircraft Subject to the Time Sharing
Agreement attached hereto and made a part hereof, as Exhibit A; and

       

      WHEREAS,
Lessor and Lessee desire to lease said Aircraft on a non-exclusive time sharing
basis as defined in Section 91.501 (c) (1) of the Federal Aviation Regulations
("FAR");

       

      WHEREAS,
this Agreement sets forth the understanding of the Parties as to the terms under
which Lessor will provide Lessee with the use, on a periodic basis, of the
Aircraft as described in Exhibit A hereto, currently owned by
Lessor.

       

      WHEREAS,
the use of the Aircraft will at all times be pursuant to and in full compliance
with the requirements of FAR 91.501(b)(6), 91.501(c)(1), and
91.501(d);

       

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the Parties agree as follows:

       

      1. Use of
Aircraft.

       

      (a) Lessee
may use the Aircraft from time to time, with the permission and approval of
Lessor, for any and all purposes allowed by FAR 91.501(b)(6). Lessee's use shall
include the use of the Aircraft by any officer or employee of the Lessee who has
been authorized by Lessee to use the Aircraft on an as needed basis (“Authorized
Users”).

       

      (b) Lessee
represents, warrants and covenants to Lessor that:

       

      (i) Lessee
will use such Aircraft for and on Lessee’s own account only and will not use the
Aircraft for the purposes of providing transportation of passengers or cargo in
air commerce for compensation or hire;

       

      (ii) Lessee
shall refrain from incurring any mechanics or other lien in connection with
inspection, preventative maintenance, maintenance or storage of the Aircraft,
whether permissible or impermissible under this Agreement, and Lessee shall not
attempt to convey, mortgage, assign, lease or in any way alienate the Aircraft
or create any kind of lien or security interest involving the Aircraft or do
anything or take any action that might mature into such a lien;

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      (iii) During
the term of this Agreement, Lessee will abide by and conform to all such laws,
governmental, and airport orders, rules, and regulations as shall from time to
time be in effect relating in any way to the operation and use of the Aircraft
by a time-sharing Lessee;

       

      (iv) Lessee
shall only permit operation of the Aircraft by a fully qualified
pilot.

       

      (c) Lessee
shall provide Lessor with notice of its desire to use the Aircraft and proposed
flight schedules as far in advance of any given flight as possible, and in any
case, at least forty-eight (48) hours in advance of Lessee's planned departure.
Requests for flight time shall be in a form, whether written or oral, mutually
convenient to, and agreed upon by the Parties. In addition to the proposed
schedules and flight times Lessee shall provide at least the following
information for each completed flight promptly upon the completion of each
flight:

       

      (i) departure
point;

       

      (ii) destination;

       

      (iii) date and
time of flight;

       

      
        (iv)  the
number and identity of passengers and relationship to the
Lessee;

      

       

      (v) the
nature and extent of luggage and/or cargo carried;

       

      (vi) the date
and time of return flight, if any; and

       

      
        (vii)  any other
information concerning the flight that may be pertinent or required by
Lessor.

      

       

      (d) Lessor
shall notify Lessee as to whether or not the requested use of the Aircraft can
be accommodated and, if not, the Parties shall discuss
alternatives.

       

      (e) Lessee's
planned utilization of the Aircraft will take precedence over Lessor's use.
Additionally, any maintenance and inspection of the Aircraft takes precedence
over scheduling of the Aircraft unless such maintenance or inspection can be
safely deferred in accordance with applicable laws and regulations and within
the sound discretion of the Pilot-In-Command.

       

      (f) Lessor
shall have sole and exclusive authority over the scheduling of the
Aircraft.

       

      (g) Lessor
shall not be liable to Lessee or any other person for loss, injury, or damage
occasioned by the delay or failure to furnish the Aircraft pursuant to this
Agreement for any reason.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      2. Time Sharing
Arrangement.

       

      It is
intended that this Agreement will meet the requirements of a "Time Sharing
Agreement" as that term is defined in FAR Part 91.501(c)(1) whereby Lessor will
lease its Aircraft to Lessee.

       

      3. Cost of Use of
Aircraft.

       

      (a) In
exchange for use of the Aircraft, Lessee shall pay a flat rental rate of $200.00
per hour of flight time utilized by Lessee.

       

      (b) In
addition to the rental rate, Lessee shall pay the direct operating costs of the
Aircraft permitted pursuant to FAR 91.501 for any flight conducted under this
Agreement or a lesser amount as mutually agreed to by the
Parties.  Pursuant to FAR 91.501(d), those direct operating costs
shall be limited to the following expenses for each use of the
Aircraft:

       

      
        (i)  Cost of
Fuel, Oil, Lubricants and Other Additives;

      

       

      
        (ii)  Travel
expenses of the pilot (if other than an employee of Lessee), including food,
lodging, and ground transportation.

      

       

      
        (iii)  Hangar
and tie-down costs away from the Aircraft's base of
operation.

      

       

      
        (iv)  Insurance
obtained for a specific flight.

      

       

      
        (v)  Landing
fees, airport taxes, and similar assessments.

      

       

      
        (vi)  Customs,
foreign permit, and similar fees directly related to the
flight.

      

       

      
        (vii)  Flight
planning and weather contract services.

      

       

      (c) Lessor
will invoice, and Lessee will pay, for all appropriate charges.

       

      (d) In
addition to the rental rate referenced in Section 3(a) above, Lessee shall also
be assessed the Federal Excise Taxes as imposed under Section 4261 of the
Internal Revenue Code, and any segment and landing fees associated with such
flight(s).

       

      4. Invoicing and
Payment.

       

      All
payments to be made to Lessor by Lessee hereunder shall be paid in the manner
set forth in this Paragraph 4. Lessor will pay to suppliers, employees,
contractors and government entities all expenses related to the operations of
the Aircraft hereunder in the ordinary course. As to each flight operated
hereunder, Lessor shall provide to Lessee an invoice for the flight time used
and the charges specified in Paragraph 3(b) of this Agreement (plus domestic or
international air transportation Excise Taxes, as applicable, imposed by the
Internal Revenue Code and collected by Lessor), such invoice to be issued within
thirty (30) days after the completion of each such
flight.  

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Lessee,
at its option, may prepay for the expected use of the Aircraft but in any case,
Lessee shall pay Lessor the full amount of such invoice upon receipt of the
invoice. In the event Lessor has not received a supplier invoice for
reimbursable charges relating to such flight prior to such invoicing, Lessor
shall issue a supplemental invoice for such charges to Lessee within thirty (30)
days of the date of receipt of the supplier invoice and Lessee shall pay such
supplemental invoice amount upon receipt thereof. All such invoices shall
separately itemize the expenses in items (i) through (vii) of paragraph 3(b) for
each flight included in that invoice. Delinquent payments, defined as payments
received more than thirty (30) days after invoice, to Lessor by Lessee hereunder
shall bear interest at the rate of ten percent (10%) per annum from the due date
until the date of payment. Lessee shall further pay all costs incurred by Lessor
in collecting any amounts due from Lessee pursuant to the provisions of this
Paragraph 4 after delinquency, including court costs and reasonable attorneys'
fees.

       

      5. Insurance and Limitation of
Liability.

       

      Lessor
represents that the flight operations for the Aircraft as contemplated in this
Agreement will be covered by the Lessor's aircraft all-risk physical damage
insurance (hull Coverage), aircraft bodily injury and property damage liability
insurance, passenger, pilot and crew voluntary settlement insurance and
statutory workers compensation and employer's liability insurance.

       

      (a) Insurance.

       

      (i) Lessor
will maintain or cause to be maintained in full force and effect throughout the
term of this Agreement aircraft liability insurance in respect of the Aircraft
in an amount at least equal to $______ million combined single limit for bodily
injury to or death of persons (including passengers) and property damage
liability. Lessor will retain all rights and benefits with respect to the
proceeds payable under policies of hull insurance maintained by Lessor that may
be payable as a result of any incident or occurrence while an Aircraft is being
operated on behalf of Lessee under this Agreement.

       

      (ii) Lessor
shall use his best efforts to procure such additional insurance coverage as
Lessee may request naming Lessee as an additional insured; provided, that the
cost of such additional insurance shall be borne by Lessee pursuant to Paragraph
3(b)(iv) above.

       

      (b) Limitation of
Liability. Lessee agrees that the insurance specified in paragraph 5(a)
shall provide its sole recourse for all claims, losses, liabilities,
obligations, demands, suits, judgments or causes of action, penalties, fines,
costs and expenses of any nature whatsoever, including attorneys' fees and
expenses for or on account of or arising out of, or in any way connected with
the use of the Aircraft by Lessee or its guests, including injury to or death of
any persons, including Lessee’s employees and its guests which may result from
or arise out of the use or operation of the Aircraft during the term of this
Agreement ("Claims").  This
Section 5 shall survive termination of this Agreement.

       

      (c) Lessee
agrees that when, in the reasonable view of the Pilot-In-Command of the
Aircraft, safety may be compromised, Lessor or the pilot may terminate a flight,
refuse to commence a flight, or take other action necessitated by such safety
considerations without liability for loss, injury, damage, or delay. Lessee
agrees that Lessee's operation of the Aircraft will be within the operation
guidelines of any pilot operating the Aircraft on behalf of the Lessee who will
be responsible to operate within the guidelines of FAR 91 and the pilot’s
private pilot certification.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (d) In no
event shall Lessor be liable to Lessee or its employees, agents,
representatives, guests, or invitees for any claims or liabilities, including
property damage or injury and death, and expenses, including attorney's fees, in
excess of the amount paid by Lessor's insurance carrier in the event of such
loss.

       

      (e) LESSOR
SHALL IN NO EVENT BE LIABLE TO LESSEE OR ITS EMPLOYEES, AGENTS, REPRESENTATIVES,
GUESTS, OR INVITEES FOR ANY INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES AND/OR
PUNITIVE DAMAGES OF ANY KIND OR NATURE UNDER ANY CIRCUMSTANCES OR FOR ANY REASON
INCLUDING ANY DELAY OR FAILURE TO FURNISH THE AIRCRAFT OR CAUSED OR OCCASIONED
BY THE PERFORMANCE OR NON-PERFORMANCE OF ANY SERVICES COVERED BY THIS
AGREEMENT.

       

      6. Covenants Regarding Aircraft
Maintenance.

       

      The
Aircraft has been inspected and maintained in the twelve-month period preceding
the date hereof in accordance with the provisions of FAR Part 91. Lessor shall,
at its own expense, inspect, maintain, service, repair, overhaul, and test the
Aircraft in accordance with FAR Part 91. The Aircraft will remain in good
operating condition and in a condition consistent with its airworthiness
certification, including all FAA-issued airworthiness directives and mandatory
service bulletins. In the event that any non-standard maintenance is required
during any applicable lease term, Lessor shall immediately notify Lessee of the
maintenance required, the effect on the ability to comply with Lessee's use
requirements and the manner in which the Parties will proceed with the
performance of such maintenance and conduct of the balance of the planned
flight(s).

       

      7. No
Warranty.

       

      NEITHER
LESSOR (NOR HIS AFFILIATES) MAKES, HAS MADE OR SHALL BE DEEMED TO MAKE OR HAVE
MADE ANY WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL,
WITH RESPECT TO THE AIRCRAFT TO BE USED HEREUNDER OR ANY ENGINE OR COMPONENT
THEREOF INCLUDING, WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE
WITH SPECIFICATIONS, QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY,
FITNESS FOR ANY PURPOSE, USE OR OPERATION, AIRWORTHINESS, SAFETY, PATENT,
TRADEMARK OR COPYRIGHT INFRINGEMENT OR TITLE.

       

      8. Operational
Control.

       

      Lessee
shall be responsible for the physical and technical operation of the Aircraft
and the safe performance of all flights performed on behalf of the
Lessee.  However, Lessor shall retain ultimate authority and control
and possession of the Aircraft at all times during the term of this Agreement.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      In
accordance with applicable FARs, the qualified pilot provided by Lessee will
exercise all required and/or appropriate duties and responsibilities in regard
to the safety of each flight conducted hereunder.  The
Pilot-In-Command shall have absolute discretion in all matters concerning the
preparation of the Aircraft for flight and the flight itself, the load carried
and its distribution, the decision whether or not a flight shall be undertaken,
the route to be flown, the place where landings shall be made and all other
matters relating to operation of the Aircraft. Lessee specifically agrees that
the flight crew shall have final and complete authority to delay or cancel any
flight for any reason or condition which, in sole judgment of the
Pilot-In-Command, could compromise the safety of the flight and to take any
other action which, in the sole judgment of the Pilot-In-Command, is
necessitated by considerations of safety.  No such action of the
Pilot-In-Command shall create or support any liability to Lessee or any other
person for loss, injury, damages or delay.  The Parties further agree
that Lessor shall not be liable for delay or failure to furnish the Aircraft
pursuant to this Agreement which failure is caused by government regulation or
authority, mechanical difficulty or breakdown, war, civil commotion, strikes or
labor disputes, weather conditions, acts of God or other circumstances beyond
Lessor's reasonable control.  Lessee represents that Lessee's
operation of the Aircraft is within the operational guidelines of the Lessor's
Flight Requirements and the Lessee’s pilots are responsible to operate within
the guidelines of FAR 91 and the pilot’s flight certifications.

       

      9. Termination.

       

      (a) Either
party may terminate this Agreement for any reason upon written notice to the
other, such termination to become effective ten (10) days from the date of the
notice; provided that this Agreement may be terminated on such shorter notice as
may be required to comply with applicable laws, regulations, the requirements of
any financial institution with a security or other interest in the Aircraft,
insurance requirements or in the event the insurance required hereunder is not
in full force and effect.

       

      (b) Upon a
termination of this Agreement pursuant to Paragraph 9(a) above, Lessee shall pay
any and all amounts due to Lessor within ten (10) days of Lessor’s presentment
of a final invoice to Lessee.  If Lessee has prepaid for use of the
Aircraft, Lessor shall refund any remaining credit balance to Lessee within
twenty (20) days of the termination date of this Agreement.

       

      10. Governing
Law.

       

      The
Parties hereto acknowledge that this Agreement shall be governed by and
construed in all respects in accordance with the laws of the State of
California.

       

      11. Counterparts.

       

      This
Agreement may be executed in one or more counterparts each of which will be
deemed an original, all of which together shall constitute one and the same
agreement.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      12. Entire
Agreement.

       

      This Time
Sharing Agreement constitutes the entire understanding among the Parties with
respect to its subject matter, and there are no representations, warranties,
rights, obligations, liabilities, conditions, covenants, or agreements other
than as expressly set forth herein.

       

      13. Notices and
Communications.

       

      All
notices, requests, demands and other communications required or desired to be
given hereunder shall be in writing (except as permitted pursuant to Paragraph
1(c)) and shall be deemed to be given: (i) if personally delivered, upon such
delivery; (ii) if mailed by certified mail, return receipt requested, postage
pre-paid, addressed as follows (to the extent applicable for mailing), upon the
earlier to occur of actual receipt, refusal to accept receipt or three (3) days
after such mailing; (iii) if sent by regularly scheduled overnight delivery
carrier with delivery fees either prepaid or an arrangement, satisfactory with
such carrier, made for the payment of such fees, addressed (to the extent
applicable for overnight delivery) as follows, upon the earlier to occur of
actual receipt or the next "Business Day" (as hereafter defined) after being
sent by such delivery; or (iv) upon actual receipt when sent by fax, mailgram,
telegram or email:

      

      If to
LESSOR:

      

      ASD
Aviation, Inc.

      300 W.
Second Street

      Carson
City, NV 89703

      

      If to
LESSEE:

      

      Firstgold
Corp.

      3108
Gabbert Drive, Suite 210

      Cameron
Park, CA 95682

      Attn:  Corporate
Secretary

      

       

      Notices
given by other means shall be deemed to be given only upon actual receipt.
Addresses may be changed by written notice given as provided herein and signed
by the party giving the notice.

       

      14. Further
Acts.

       

      Lessor
and Lessee shall from time to time perform such other and further acts and
execute such other and further instruments as may be required by law or may be
reasonably necessary to: (i) carry out the intent and purpose of this Agreement;
and (ii) establish, maintain and protect the respective rights and remedies of
the other party.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      15. Successors and
Assigns.

       

      Neither
this Agreement nor any party's interest herein shall be assignable to any other
party whatsoever. This Agreement shall inure to the benefit of and be binding
upon the Parties hereto, their heirs, representatives and
successors.

       

      16. Severability.

       

      In the
event that any one or more of the provisions of the Agreement shall for any
reason be held to be invalid, illegal, or unenforceable, those provisions shall
be replaced by provisions acceptable to both Parties to this
Agreement.

       

      17. Flight
Crew.

       

      Lessee
shall employ, pay for and provide a qualified pilot for all flight operations
under this Agreement performed on behalf of Lessee.

       

      18. Base of
Operations.

       

      For
purposes of this Agreement, the base of operation of the Aircraft is Cameron
Park Airport, Cameron Park, California; provided that such base may be changed
permanently upon notice from Lessor to Lessee.

       

      19. Taxes.

       

      The
Parties acknowledge that reimbursement of all items specified in Paragraph 3 are
subject to the Federal Excise Tax imposed under Internal Revenue Code 4261 (the
"Commercial Transportation
Tax").  Lessee shall pay to Lessor (for payment to the
appropriate governmental agency) any Commercial Transportation Tax applicable to
flights of the Aircraft conducted hereunder. Lessor shall indemnify Lessee for
any claims related to the Commercial Transportation Tax to the extent that
Lessee has paid Lessor the amounts necessary to pay such taxes.

       

      20. Title.

       

      Legal
title to the Aircraft shall remain in the Lessor at all times.

       

      21. Truth-in-Leasing.

       

      The
Lessor shall mail a copy of this Agreement for and on behalf of both Parties to:
Flight Standards Technical Division, P.O. Box 25724, Oklahoma City, Oklahoma
73125, within twenty-four (24) hours of its execution, as provided by FAR
91.23(c)(1).  Additionally, Lessor agrees to comply with the
notification requirements of FAR Section 91.23 by notifying by telephone or in
person the Sacramento FAA Flight Standards District Office at least forty-eight
(48) hours prior to the first flight under this Agreement.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (a) LESSOR
CERTIFIES THAT THE AIRCRAFT HAS BEEN INSPECTED AND MAINTAINED WITHIN THE
12-MONTH PERIOD PRECEDING THE DATE OF THIS AGREEMENT IN ACCORDANCE WITH THE
PROVISIONS OF PART 91 OF THE FEDERAL AVIATION REGULATIONS AND THAT ALL
APPLICABLE REQUIREMENTS FOR THE AIRCRAFT'S MAINTENANCE AND INSPECTION THEREUNDER
HAVE BEEN MET AND ARE VALID FOR THE OPERATIONS TO BE CONDUCTED UNDER THIS
AGREEMENT.

       

      (b) LESSEE,
WHOSE ADDRESS APPEARS IN PARAGRAPH 13 ABOVE AND WHOSE AUTHORIZED SIGNATURE
APPEARS BELOW, AGREES, CERTIFIES AND ACKNOWLEDGES THAT WHENEVER THE AIRCRAFT IS
OPERATED UNDER THIS AGREEMENT, A QUALIFIED PILOT, WHO MAY BE AN EMPLOYEE OF
LESSEE, SHALL BE KNOWN AS, CONSIDERED AND SHALL IN FACT BE THE OPERATOR OF THE
AIRCRAFT AND THAT LESSEE UNDERSTANDS ITS RESPONSIBILITIES TO INSURE ITS PILOT
COMPLIES WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

       

      (c) THE
PARTIES UNDERSTAND THAT AN EXPLANATION OF FACTORS AND PERTINENT FEDERAL AVIATION
REGULATIONS BEARING ON OPERATIONAL CONTROL CAN BE OBTAINED FROM THE NEAREST FAA
FLIGHT STANDARDS DISTRICT OFFICE.

       

      IN
WITNESS WHEREOF, the Parties hereto have each caused this Agreement to be duly
executed on the date first set forth above.

      

       

      
        
          	 	LESSEE:	 
	 	 	 
	 	FIRSTGOLD
      CORP.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ James
      Kluber	 
	 	 	James
      Kluber	 
	 	Its:	Chief
      Financial Officer	 
	 	 	 	 

        

      

      

         

        
          
            	 	LESSOR:	 
	 	 	 
	 	ASD
      AVIATION, INC.	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ A.
      Scott Dockter	 
	 	 	A.
      Scott Dockter	 
	 	Its:	President/CEO	 
	 	 	 	 

          

        

        
 

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
A

       

      FIRSTGOLD
CORP.

       

      AIRCRAFT
SUBJECT TO TIME SHARING AGREEMENT

      

       

      Each of
the undersigned is a party to the Time Sharing Agreement dated December 1, 2006,
by and between Firstgold Corp. ("Lessee"), and ASD Aviation,
Inc. ("Lessor")
(collectively the "Parties"), and agrees that
from and after the date below, until this Exhibit A shall be superseded and
replaced through agreement of the Parties or the Time Sharing Agreement shall be
terminated pursuant to its terms, the Aircraft described below shall constitute
the "Aircraft" described
in and subject to the terms of the Time Sharing Agreement.

      

      

      Manufacturer's
Serial Number – 1981 Cessna – Centurion P-210

      

      FAA
Registration Number – N168SQ

      

      Engine
Model -  Io-540

      

      

      Dated:  December
1, 2006

       

      
        
          
            	 	LESSEE:	 
	 	 	 
	 	FIRSTGOLD
      CORP.	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ James
      Kluber	 
	 	 	James
      Kluber	 
	 	Its:	Chief
      Financial Officer	 
	 	 	 	 

          

        

        

           

          
            
              	 	LESSOR:	 
	 	 	 
	 	ASD
      AVIATION, INC.	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	/s/ A.
      Scott Dockter	 
	 	 	A.
      Scott Dockter	 
	 	Its:	President/CEO	 
	 	 	 	 

            

          

        

      

      

      

10fc_ex1029a-80731.htm

    
      Exhibit
10.29(a)

       

      SENIOR
SECURED PROMISSORY NOTE

       

      
        	Dated: August 27,
      2008	
                Amount:
      $378,378.37

              

      

       

      For value
received, FIRSTGOLD CORP., a corporation organized under the laws of the State
of Delaware (the “Maker”), hereby
promises to pay to the order of PLATINUM LONG TERM GROWTH, LLC, with an address
of 152 West 57th Street,
4th
Floor, New York, NY 10019 (together with its successors, representatives, and
assigns, the “Holder”), in
accordance with the terms hereinafter provided, the principal amount of Three
Hundred Seventy-Eight Thousand Three Hundred Seventy-Eight Dollars and Thirty
Seven Cents ($378,378.37) hereunder, together with interest and all other
obligations outstanding hereunder.

       

      All
payments under or pursuant to this Note shall be made in United States Dollars
in immediately available funds to the Holder at the address of the Holder first
set forth above or at such other place as the Holder may designate from time to
time in writing to the Maker or by wire transfer of funds to the Holder’s
account, instructions for which are attached hereto as Exhibit
A.  The outstanding principal balance of this Note shall be due
and payable on March 1, 2010 (the “Maturity Date”) or at
such earlier time as provided herein.

       

      ARTICLE
I

       

      Section 1.1    Purchase
Agreement.  This Note has been executed and delivered pursuant
to the Note and Warrant Purchase Agreement, dated as of August 7, 2008 (the
“Purchase Agreement”), by and between the Maker, the Holder (as a Lender) and
each other Lender party thereto and related agreements and
documents.  Capitalized terms used and not otherwise defined herein
shall have the meanings set forth for such terms in the Purchase
Agreement.

       

      Section
1.2    Interest.  The
outstanding principal balance of this Note shall bear interest, in arrears, at a
rate per annum equal to four percent (4%), payable in cash on the first Business
Day of each month following the date hereof.  Interest shall be
computed on the basis of a 360-day year of twelve (12) thirty-day months, shall
compound monthly and shall accrue commencing on the date
hereof.  Furthermore, upon the occurrence of an Event of Default (as
defined in Section 2.1 hereof), the Maker will pay interest to the Holder,
payable on demand, on the outstanding principal balance of the Note and on all
unpaid interest from the date of the Event of Default at a per annum rate equal
to the lesser of eighteen percent (18%) and the maximum applicable legal rate
per annum, calculated based on a 360-day year.

       

      Section
1.3    Payment
of Principal; Prepayment.

       

      (a) The
principal amount hereof shall be paid in full on the Maturity Date or, if
earlier, upon acceleration of this Note in accordance with the terms
hereof.  Any amount of principal repaid hereunder may not be
reborrowed.  The Maker may prepay all or any portion of the principal
amount of this Note upon not less than three (3) Business Days prior written
notice to the Holder, without penalty or premium.

       

      (b) Not later
than the fifteenth (15th) day of
each calendar month, the Maker shall make a mandatory prepayment to the Holder
equal to its Pro Rata Share of forty percent (40%) of the Maker’s Free Cash Flow
in and for the preceding calendar month; 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      provided,
however, that commencing with the payment to be made in December, 2008 and
continuing in each month thereafter, such monthly payment be equal to the
Holder’s Pro Rata Share of the greater of (i) forty percent (40%) of the Maker’s
Free Cash Flow in the preceding calendar month, and (ii)
$400,000.  Each such payment shall be accompanied by financial
calculations of such prior month’s Free Cash Flow certified as being complete
and correct by the Maker’s president or chief financial officer, in such detail
and with such supporting financial documents as the Collateral Agent (as defined
below) may require.  Each such mandatory prepayment shall be applied
first to any interest, fee or expense obligation hereunder which is then due and
unpaid and then on account of the principal balance hereof.  Prepayments applied to principal shall be made against
the principal balance of this Note and of all other outstanding Notes issued
under the Purchase Agreement on a pro-rata basis.  For the
purposes hereof, “Free Cash Flow” shall mean the Maker’s gross revenue from all
sources less direct operating costs in the period for which such calculation is
made (all in accordance with GAAP).

       

      Section
1.4    Security
Documents.  The obligations of the Maker hereunder are secured
by a continuing security interest in substantially all of the assets of the
Maker pursuant to the terms of a Security Agreement bearing even date herewith
by and between the Maker and the Collateral Agent, a Deed or Deeds of Trust, and
other collateral documents.  For the purposes hereof, the term
“Collateral Agent” shall have the meaning given thereto in the Security
Agreement.

       

      Section
1.5    Payment on Non-Business
Days.  Whenever any payment to be made shall be due on a
Saturday, Sunday or a public holiday under the laws of the State of New York,
such payment shall be due on the next succeeding Business Day and such next
succeeding day shall be included in the calculation of the amount of accrued
interest payable on such date.

       

      Section
1.6    Transfer.  This
Note may be transferred or sold, and may also be pledged, hypothecated or
otherwise granted as security, by the Holder; provided, however, that any
transfer or sale of this Note must be in compliance with any applicable
securities laws.

       

      Section
1.7    Replacement.  Upon
receipt of a duly executed, notarized and unsecured written statement from the
Holder with respect to the loss, theft or destruction of this Note (or any
replacement hereof) and a standard indemnity, or, in the case of a mutilation of
this Note, upon surrender and cancellation of such Note, the Maker shall issue a
new Note, of like tenor and amount, in lieu of such lost, stolen, destroyed or
mutilated Note.

       

      Section
1.8    Use of
Proceeds.  The Maker shall use the proceeds of this Note as set
forth in the Purchase Agreement.

       

      ARTICLE
II

       

      EVENTS OF DEFAULT;
REMEDIES

       

      Section
2.1    Events of
Default.  The occurrence of any of the following events shall
be an “Event of
Default” under this Note:

       

      (a) any
default in respect of any payment of the principal amount, interest or any other
monetary obligation under this Note, as and when the same shall be due and
payable (whether on the Maturity Date or by acceleration or otherwise) or within
three (3) days thereafter; or

       

      
        
          
          

        

        
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      (b) the Maker
shall fail to observe or perform any other condition, covenant or agreement
contained in this Note, which failure is not cured within five (5) Business Days
after the Maker’s receipt of notice of such failure; or

       

      (c) the
suspension from listing, without subsequent listing on any one of, or the
failure of the Common Stock to be listed on at least one of the OTC Bulletin
Board, the American Stock Exchange, the Nasdaq Capital Markets, the Nasdaq
Global Market, the Nasdaq Global Select Market or The New York Stock Exchange,
Inc. for a period of five (5) consecutive Trading Days, such a suspension to
only constitute an Event of Default if the Holder provides the Maker written
notification that it deems such suspension to be an Event of Default;
or

       

      (d) the Maker
shall default in the performance or observance of (i) any undertaking, covenant,
condition or agreement contained in the Purchase Agreement or any other
Transaction Document and such default is not fully cured within five (5)
Business Days after the Maker’s receipt of notice of such
default;  or

       

      (e) any
representation or warranty made by the Maker herein or in the Purchase Agreement
or any other Transaction Document shall prove to have been false or incorrect or
breached in a material respect on the date as of which made; or

       

      (f) any
failure by Maker to cure within five (5) Business Days after the Maker’s receipt
of notice of (A) a default in any payment of any amount or amounts of principal
of or interest on any Indebtedness of the Maker (other than the Indebtedness
hereunder) the aggregate principal amount of which Indebtedness is in excess of
$50,000 or (B) a
default in the observance or performance of any other agreement or condition
relating to any Indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders or beneficiary or beneficiaries of
such Indebtedness to cause with the giving of notice if required, such
Indebtedness to become due prior to its stated maturity; or

       

      (g) the Maker
shall (i) apply for or consent to the appointment of, or the taking of
possession by, a receiver, custodian, trustee or liquidator of itself or of all
or a substantial part of its property or assets, (ii) make a general assignment
for the benefit of its creditors, (iii) commence a voluntary case under the
United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic), (iv) file a petition
seeking to take advantage of any bankruptcy, insolvency, moratorium,
reorganization or other similar law affecting the enforcement of creditors’
rights generally, (v) acquiesce in writing to any petition filed against it in
an involuntary case under United States Bankruptcy Code (as now or hereafter in
effect) or under the comparable laws of any jurisdiction (foreign or domestic),
(vi) issue a notice of bankruptcy or winding down of its operations or issue a
press release regarding same, or (vii) take any action under the laws of any
jurisdiction (foreign or domestic) analogous to any of the foregoing;
or

       

      
        
          
          

        

        
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      (h) a
proceeding or case shall be commenced in respect of the Maker, without its
application or consent, in any court of competent jurisdiction, seeking (i) the
liquidation, reorganization, moratorium, dissolution, winding up, or composition
or readjustment of its debts, (ii) the appointment of a trustee, receiver,
custodian, liquidator or the like of it or of all or any substantial part of its
assets in connection with the liquidation or dissolution of the Maker or (iii)
similar relief in respect of it under any law providing for the relief of
debtors, and such proceeding or case described in clause (i), (ii) or (iii)
shall continue undismissed, or unstayed and in effect, for a period of thirty
(30) days or any order for relief shall be entered in an involuntary case under
United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic) against the Maker or
action under the laws of any jurisdiction (foreign or domestic) analogous to any
of the foregoing shall be taken with respect to the Maker and shall continue
undismissed, or unstayed and in effect for a period of thirty (30) days;
or

       

      (i) any
default or event of default, or event that, with the passage of time or giving
of notice or both would constitute a default or event of default, shall have
occurred under any mining lease or mining rights or claims agreement to which
Maker is now or at any time hereafter a party or any such agreement is
terminated by any of the parties thereto; or

       

      (j) a
judgment or judgments in the aggregate amount exceeding $25,000 is/are entered
against the Maker and not dismissed or discharged within twenty (20) days
following the entry thereof; or

       

      (k) Maker
shall cease to actively conduct its business operations for a period of five (5)
consecutive Business Days; or

       

      (l) any
material portion of the properties or assets of the Maker is seized by any
governmental authority; or

       

      (m) the Maker
is indicted for the commission of any criminal activity; or

       

      (n) closing
of a purchase, tender or exchange offer made to the holders of more than fifty
percent (50%) of the outstanding shares of Common Stock in which more than fifty
percent (50%) of the outstanding shares of Common Stock were tendered and
accepted.

       

      Section
2.2    Remedies Upon An Event of
Default.  If an Event of Default shall have occurred and shall
be continuing, the Collateral Agent may at any time at its option (a) declare
the entire unpaid principal balance of this Note, together with all interest
accrued hereon, plus fees and expenses, due and payable, and thereupon, the same
shall be accelerated and so due and payable, without presentment, demand,
protest, or notice, all of which are hereby expressly unconditionally and
irrevocably waived by the Maker; provided, however, that upon the occurrence of
an Event of Default described in Sections 2.1 (g) or (h) above, the outstanding
principal balance and accrued interest hereunder, plus fees and expenses, shall
be immediately and automatically due and payable, and/or (b) exercise or
otherwise enforce any one or more of the Holder’s rights, powers, privileges,
remedies and interests as well as its own rights, powers and remedies under this
Note, the Purchase Agreement, the Security Agreement or other Transaction
Document or applicable law.  No course of delay on the part of the
Collateral Agent or the Holder shall operate as a waiver thereof or otherwise
prejudice the right of the Collateral Agent or the
Holder.  

       

      
        
          
          

        

        
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      No remedy
conferred hereby shall be exclusive of any other remedy referred to herein or
now or hereafter available at law, in equity, by statute or
otherwise.  Upon and after an Event of Default, this Note shall bear
interest at the default rate set forth in Section 1.2 hereof.

       

      ARTICLE
III

       

      MISCELLANEOUS

       

      Section
3.1    Notices.  Any
notice, demand, request, waiver or other communication required or permitted to
be given hereunder shall be in writing and shall be effective (a) upon hand
delivery, telecopy or facsimile at the address or number designated in the
Purchase Agreement (if delivered on a Business Day during normal business hours
where such notice is to be received), or the first Business Day following such
delivery (if delivered other than on a Business Day during normal business hours
where such notice is to be received) or (b) on the second Business Day following
the date of mailing by express courier service, fully prepaid, addressed to such
address, or upon actual receipt of such mailing, whichever shall first
occur.

       

      Section
3.2    Governing
Law.  This Note shall be governed by and construed in
accordance with the internal laws of the State of New York, without giving
effect to any of the conflicts of law principles which would result in the
application of the substantive law of another jurisdiction.  This Note
shall not be interpreted or construed with any presumption against the party
causing this Note to be drafted.

       

      Section
3.3    Headings.  Article
and section headings in this Note are included herein for purposes of
convenience of reference only and shall not constitute a part of this Note for
any other purpose.

       

      Section
3.4    Remedies, Characterizations,
Other Obligations, Breaches and Injunctive Relief.  The
remedies provided in this Note shall be cumulative and in addition to all other
remedies available under this Note, at law or in equity (including, without
limitation, a decree of specific performance and/or other injunctive relief), no
remedy contained herein shall be deemed a waiver of compliance with the
provisions giving rise to such remedy and nothing herein shall limit a holder’s
right to pursue actual damages for any failure by the Maker to comply with the
terms of this Note.  Amounts set forth or provided for herein with
respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the holder thereof and shall not, except as
expressly provided herein, be subject to any other obligation of the Maker (or
the performance thereof).  The Maker acknowledges that a breach by it
of its obligations hereunder will cause irreparable and material harm to the
Holder and that the remedy at law for any such breach may be inadequate.
Therefore the Maker agrees that, in the event of any such breach or threatened
breach, the Collateral Agent (on behalf of the Holder) shall be entitled, in
addition to all other available rights and remedies, at law or in equity, to
seek and obtain such equitable relief, including but not limited to an
injunction restraining any such breach or threatened breach, without the
necessity of showing economic loss and without any bond or other security being
required.

       

      
        
          
          

        

        
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      Section
3.5    Enforcement
Expenses.  The Maker agrees to pay all costs and expenses
incurred from time to time by the Holder with respect to any modification,
consent or waiver of the provisions of this Note or the Transaction Documents
and any enforcement of this Note and the Transaction Documents, including,
without limitation, reasonable attorneys’ fees and expenses.

       

      Section
3.6    Amendments.  This
Note may not be modified or amended in any manner except in writing executed by
the Maker and the Holder.

       

      Section
3.7    Compliance with Securities
Laws.  The Holder of this Note acknowledges that this Note is
being acquired solely for the Holder’s own account and not as a nominee for any
other party, and for investment, and that the Holder shall not offer, sell or
otherwise dispose of this Note except in accordance with applicable
law.

       

      Section
3.8    Consent to
Jurisdiction.  Each of the Maker and the Holder (i) hereby
irrevocably submits to the exclusive jurisdiction of the United States District
Court sitting in the Southern District of New York and the courts of the State
of New York located in New York county for the purposes of any suit, action or
proceeding arising out of or relating to this Note and (ii) hereby waives, and
agrees not to assert in any such suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of such court, that the suit,
action or proceeding is brought in an inconvenient forum or that the venue of
the suit, action or proceeding is improper.  Each of the Maker and the
Holder consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address in effect for notices to
it under the Purchase Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof.  Nothing in
this Section 3.8 shall affect or limit any right to serve process in any other
manner permitted by law.  Each of the Maker and the Holder hereby
agree that the prevailing party in any suit, action or proceeding arising out of
or relating to this Note shall be entitled to reimbursement for reasonable legal
fees from the non-prevailing party.

       

      Section
3.9    Binding
Effect.  This Note shall be binding upon, inure to the benefit
of and be enforceable by the Maker, the Holder and their respective successors
and permitted assigns.  The Maker shall not delegate or transfer this
Note or any obligations or undertakings contained in this Note.

       

      Section
3.10   Failure or Indulgence Not
Waiver.  No failure or delay on the part of the Holder in the
exercise of any power, right or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right,
power or privilege.

       

      Section
3.11   Maker Waivers; Dispute
Resolution.

       

      (a) Except as
otherwise specifically provided herein, the Maker and all others that may become
liable for all or any part of the obligations evidenced by this Note, hereby
waive presentment, demand, notice of nonpayment, protest and all other demands’
and notices in connection with the delivery, acceptance, performance and
enforcement of this Note, and do hereby consent to any number of renewals of
extensions of the time or payment hereof and agree that any such renewals or
extensions may be made without notice to any such persons and without affecting
their liability herein and do further consent to the release of any person
liable hereon, all without affecting the liability of the other persons, firms
or Maker liable for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY
JURY.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      (b) No delay
or omission on the part of the Collateral Agent or the Holder in exercising its
rights under this Note, or course of conduct relating hereto, shall operate as a
waiver of such rights or any other right of the Collateral Agent or the Holder,
nor shall any waiver by the Collateral Agent or the Holder of any such right or
rights on any one occasion be deemed a waiver of the same right or rights on any
future occasion.

       

      (c) THE MAKER
ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL
TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE LAW, HEREBY WAIVES ITS
RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE
HOLDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

       

      Section
3.12   Definitions.  Terms
used herein and not defined shall have the meanings set forth in the Purchase
Agreement.  For the purposes hereof, the following terms shall have
the following meanings:

       

      “Business Day”
(whether or not capitalized) shall mean any day banking transactions can be
conducted in New York City, NY, USA and does not include any day which is a
federal or state holiday in such location.

       

      “Person” means an
individual or a corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or political subdivision thereof) or other entity of
any kind.

       

      “Trading Day” means
(a) a day on which the Common Stock is traded on the OTC Bulletin Board or a
registered national securities exchange, or (b) if the Common Stock is not
traded on the OTC Bulletin Board or a registered national securities exchange, a
day on which the Common Stock is quoted in the over-the-counter market as
reported by the National Quotation Bureau Incorporated (or any similar
organization or agency succeeding its functions of reporting prices); provided, however, that in the
event that the Common Stock is not listed or quoted as set forth in (a) or (b)
hereof, then Trading Day shall mean any day except Saturday, Sunday and any day
which shall be a legal holiday or a day on which banking institutions in the
State of New York are authorized or required by law or other government action
to close.

       

      “Transaction
Documents” means this Note, the Purchase Agreement, the Security
Agreement, any Deed of Trust and all other security documents or related
agreements now or hereafter entered into in connection with and/or as security
for this Note and all amendments and supplements thereto and replacements
thereof and any other Transaction Document (as that term is defined in the
Purchase Agreement).

       

      [Signature appears on following
page]

      

      

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      IN WITNESS WHEREOF, the Maker
has caused this Note to be duly executed by its duly authorized officer as of
the date first above indicated.

       

      

      
        
          	 	FIRSTGOLD
CORP.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ STEVEN
      AKERFELDT	 
	 	 	Name: Steven
      Akerfeldt	 
	 	 	Title:
      CEO	 
	 	 	 	 

        

       

      

      

      

      

      

      

      

      

      

      

      
 

      

       

      [Signature
Page to Senior Secured Promissory Note]

       

      

       

      

      

      

      

      

      

      

-8-

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