Document:

Exhibit 10.34

 

NOTICE OF CONVERSION

 

TO: Lucid, Inc.

 

Pursuant to the terms and conditions of that certain Agreement dated as of July 9, 2010 between Northeast LCD Capital, LLC (“Northeast”) and Lucid, Inc. (“Lucid”), as amended by Amendment No. 1 dated as of June 16, 2011 (as so amended, the “Agreement”), Northeast hereby irrevocably elects to take payment of the Fee, as that term is defined in the Agreement, in the form of shares of the common stock of Lucid, provided only that the IPO, as that term is defined in the Agreement, occurs prior to January 1, 2012, and requests that the certificate for such shares be issued in the name of and delivered to Northeast LCD Capital, LLC, c/o C. Wesley Crowell, Bergen & Parkinson, LLC, 62 Portland Road, Suite 25, Kennebunk, Maine 04043.

 

	
Dated: September 2, 2011
    	
Northeast   LCD Capital, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   C. Wesley Crowell
    
	
 
    	
Name:
    	
C.   Wesley Crowell
    
	
 
    	
Title:
    	
Manager
    

 

 

Agreed and accepted this 2nd day of September, 2011:

 

	
 
    	
Lucid,   Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jay M. Eastman
    
	
 
    	
Name:
    	
Jay   M. Eastman
    
	
 
    	
Title:
    	
Chief   Executive OfficerLiberty Star Uranium & Metals Corp. - Exhibit 10.1 - Filed by newsfilecorp.com

SAGEBRUSH GOLD LTD. 

  1640 Terrace Way, Walnut Creek, CA 94597 

August 31, 2011 

Liberty Star Uranium & Metals Corp. 
Big Chunk Corp.

5610 E. Sutler Lane 

  Tucson, AZ 85712 

Attention: Larry Liang, President and Director 

Dear Mr. Liang, 

	
      RE: 
	
      Agreement (“Agreement”) between Liberty Star Uranium
      & Metals Corp. 

      (“Liberty Star”) and Sagebrush Gold Ltd.
      (“Sagebrush”) 

This letter sets out the binding agreement of the parties
respecting the matters set out below.

I.    
 Uranium Venture and Reorganization. 

Liberty Star and Sagebrush own or have rights to certain
uranium mining assets consisting of patented and/or unpatented claims, leases or
properties (the “Uranium Properties”). Liberty Star has sought and accepted
certain bridge financing from Sagebrush in the amount of $100,000 and grants to
Sagebrush (or its designee) the irrevocable option and right to cause Liberty
Star to convey to a newly organized venture (“Newco”) all of its Uranium
Properties upon election by Sagebrush. All Uranium Properties of Liberty Star
and Sagebrush shall be transferred to Newco pursuant to appropriate documents of
conveyance in customary form (e.g., by Quitclaim Deed) for a conveyance of such
nature with notification to all federal, state and local government authorities
of such conveyance.

The foregoing is subject to the following additional
conditions: 

	 	1. 	
      Investors in Newco will provide a public company (i.e.,
      Newco) that is seeking a merger which shall be current in all SEC filings
      and reports, and which shall have received FINRA approval for trading on
      the OTC Bulletin Board, with at least one active market maker. The public
      company shall constitute a “shell” company as in Rule 12b-2 under the
      Securities Exchange Act of 1934, as amended.

	 	 	 
	 	2. 	
      Newco will acquire the Liberty Star Uranium Properties
      and Sage Uranium Properties in exchange for shares of common stock of
      Newco to be issued as forth in the “Capitalization Table” annexed hereto
      as Exhibit A and the capitalization of Newco shall be as set forth in
      Exhibit A.

	 	3. 	
      The transaction (the “Reorganization”) shall be
      substantially as follows:

	 	 	 	 
	 		a. 	
      a newly-formed subsidiary of Newco will enter into an
      agreement with Liberty Star and Sagebrush to obtain the Uranium Properties
      in exchange for: (i) 6.0 million newly-issued shares of restricted stock
      of Newco issued to Liberty Star; and (ii) 20.0 million newly-issued shares
      of restricted stock of Newco issued to Sagebrush, plus $1 million, payable
      in cash if a $4 million is raised in the Private Placement (defined below)
      or if less, then by 1 year promissory note.

	 	 	 	 
	 		b. 	
      A minimum $2 million and maximum $4 million (subject to
      increase) private placement shall close contemporaneous with the Uranium
      Properties transfers (the “Private Placement”).

	 	 	 	 
	 		c. 	
      The Uranium Properties will be transferred free and clear
      of any and all liabilities and encumbrances (other than the leases and
      mining rights agreements, obligation to pay future NSR, bonding,
      maintenance and similar federal, state and local fees) and all
      inter-company indebtedness and any and all liens and obligations owed by
      Liberty Star or Sagebrush shall be cancelled. All maintenance and similar
      fees will be currently paid by Liberty Star and Sagebrush and will be
      current through the closing date.

	 	 	 	 
	 		d. 	
      The cost for the public company acquisition, and
      structuring and merger with the public company shall be arranged by
      Sagebrush and at the investors’ sole cost and expense, other than expenses
      of Liberty Star which shall be at the sole cost of Liberty Star.

	 	 	 	 
	 		e. 	
      Liberty Star will be entitled to designate one member of
      the Board of Directors of Newco.

	 	II. 	
      Bridge Financing.

	 	1. 	
      Sagebrush has advanced $100,000 to Liberty Star (the
      “Bridge”) to pay assessment work on some of its Uranium Properties in
      Arizona.

	 	 	 
	 	2. 	
      In consideration for the Bridge Liberty Star shall
      immediately issue to Sagebrush 5,000,000 shares of Liberty Star common
      stock (the “LS Shares”) and 5 year warrants to purchase 2,500,000 shares
      of Liberty Star common stock at an exercise price of $0.04 per share (the
      “LS Warrants”), The LS Shares and the LS Warrants shall be subject to
      customary protections from material events and recapitalization and shall
      be subject to full ratchet anti-dilution protection in the event that any
      lower priced issuance by Liberty Star is made while the LS Warrants are
      outstanding, provided, however, that in the event that any greater
      protections are afforded to investors in the next financing of Liberty
      Star expected to be in an amount of approximately $5,000,000, the LS
      Shares and LS Warrants shall be entitled to the benefit of such greater
      protections.

	 	 	 
	 	3. 	
      In the event that the Reorganization and Private
      Placement are not achieved by Sagebrush on or before December 31, 2011
      Liberty Star’s obligations (other than the obligations under Par. II.2.,
      above) under this Agreement will terminate in Liberty Star’s discretion
      and Liberty Star will have the full right to retain its Uranium
      Properties.

2 

III.   Negotiation in Good
Faith. 

From the date hereof until December 31,
2011 you and we will use our best efforts to effectuate the Reorganization and
transactions contemplated herein. The parties shall cooperate fully with each
other in preparing all such documentation, obtaining all necessary approvals,
waivers and consents and complying with applicable regulatory and governmental
requirements. 

IV.    Additional
Agreements. 

Each party will bear its own costs and
expenses in connection with the matters contemplated herein. Newco will be
represented by counsel designated by us in connection with the transaction, the
spinout, and for a minimum period following closing for purposes of the
financing, corporate, and securities matters.

Until closing, neither party shall
issue any press release or otherwise announce the spinout without mutual
agreement to the terms of the press release, except to the extent required by
law, rule or regulation upon advance notice to the other party or in connection
with financing or organizational matters. The disclosing party shall provide the
other party with reasonable notice and reasonable opportunity to comment upon
any public disclosure. 

The parties will treat all of the
material information received from each other as confidential. In the event the
transactions are not consummated or termination of this LOI, each party will
return all of the confidential information of the other party without retaining
any copies. Notwithstanding the foregoing, we will be permitted to disclose your
information as needed if reasonably connected to the Reorganization, the PIPE,
and other matters referred to herein. 

The undersigned acknowledge that they
are aware the federal securities laws require parties in possession of material
non-public information to refrain from all transactions in the securities of
such company until public announcement of such material non-public information.
Accordingly, the undersigned, on its own behalf and on behalf of their
affiliates and others who will have knowledge of the terms of this LOI, shall
refrain from affecting any transactions in securities of Newco except upon the
advice of their counsel who will have been informed of the nature of the
transactions contemplated herein.

The parties agree to the exclusive
jurisdiction of the state or federal courts located in New York, New York in the
event of any dispute relating to this Agreement or the matters set forth herein.
This Agreement shall be governed by the internal laws of the State of New York
without reference to principles of conflicts of laws. 

3 

If, after the reading the foregoing, you find that this letter
correctly expresses our intentions as stated, kindly so indicate by signing this
letter in the space provided below and returning one fully executed copy to us
and return to us not later than 5:00 P.M. on Wednesday, August 31, 2011, after
which time this offer will expire and the Bridge will become immediately due and
payable and shall be immediately refunded to us. 

Very truly yours, 

SAGEBRUSH GOLD. LTD 

By: /s/ David Rector 
Name: David
Rector 
Title: President 

AGREED AND ACCEPTED: 
LIBERTY STAR URANIUM AND METALS
CORP. 

By: /s/ Larry L. Liang 
Name: Larry L. Liang

  Title: President 

4 

EXHIBIT A 

	  	 
    	 
	 
	 	  	 
	 
	 	% 
	  	 
    	  $ Min 	  	 	%
      Outstdg 	  $ Max 	  	 	Outstdg
    
	  	  	  	  	 	  	  	  	 	  
	  	SAGEBRUSH * 	  	20,000,000 	 	52% 	  	20,000,000 	 	46% 
	  	LIBERTY
      STAR * 	  	6,000,000 	 	16% 	  	6,000,000 	 	14%
  
	$0.40 	PIPE * 	  $2,000,000 	5,000,000 	 	13% 	  $4,000,000 	10,000,000 	 	23% 
	  	NEWCO *
    	  	7,500,000 	 	19% 	  	7,500,000 	 	17%
  
	  	PIPEWARRANTS 50%@$.60 * 	  	2,500,000 	 	  	  	5,000,000 	 	  
	  	OPTION
      PLAN ** 	  	8,000,000 	 	 
    	  	8,000,000 	 	 
    
	  	  	  	  	 	100.00% 	  	  	 	100.00% 
	  	  	  	  	 	  	  	  	 	  
	  	  	  	  	 	  	  	  	 	  
	  	CLOSING: OUTSTANDING - 	  	38,500,000 	 	  	  	43,500,000 	 	  
	  	FULLY DILUTED - 	  	49,000,000 	 	  	  	56,500,000 	 	  

*       Issued at closing.

**    All option awards to be issued at the market on the day
of closing ($0.40) or at future market prices. 

5

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