Document:

Wolverine Technologies Corp.: Exhibit 10.2 - Filed by newsfilecorp.com

    

    

    THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

    NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. 

     

    PRIVATE PLACEMENT SUBSCRIPTION
FOR NON U.S. SUBSCRIBERS

    

    PRIVATE PLACEMENT

    INSTRUCTIONS TO SUBSCRIBER:

    1. COMPLETE pages 2, 3 and Schedule A of this Subscription Agreement.

    2. PAYMENT of the subscription proceeds can made by an e-transfer to pubcoservicesinc@gmail.com or WIRE TRANSFER to the BMO account below.

    	
                BENEFICIARY

            	
                WOVERINE TECHNOLOGIES CORP.

                #55-11020 WILLIAMS ROAD

                RICHMOND, BC V7A 1X8

            
	
                BENEFICIARY BANK

            	
                BMO

                595 BURRARD STREET

                VANCOUVER, BC V7X 1L7

            
	
                INSTITUTION NUMBER

            	
                001

            
	
                TRANSIT NUMBER

            	
                00040

            
	
                ACCOUNT NUMBER

            	
                1656-049

            
	
                SWIFT CODE

            	
                BOFMCAM2

            

    3. FAX OR EMAIL copies of pages 2 and 3 of this Subscription Agreement, and all pages of Schedule A to PubCo Services Inc. at (587) 803-4293 or by e-mail to pubco@telus.net.

    

    
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    WOLVERINE TECHNOLOGIES CORP.

    PRIVATE PLACEMENT

    The Subscriber hereby irrevocably subscribes for, and on Closing will purchase from the Company, the following securities at a price of CDN$0.0025 per Share

    	
                _____________________ Shares

            
	
                 

            

    The Subscriber directs the Company to issue, register and deliver the certificates representing the Shares as follows:

    	 	
                REGISTRATION INSTRUCTIONS:

            	 	
                DELIVERY INSTRUCTIONS:

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	Name to appear on certificate 	 	Name and account reference, if applicable 	 
	 	 	 	 	 
	 	 	 	 	 
	 	SIN/Tax ID No.	 	Contact name	 
	 	 	 	 	 
	 	 	 	 	 
	 	Address	 	Address	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	Telephone number	 

    

    EXECUTED by the Subscriber this _______ day of_______________________, 2021. By executing this Agreement, the Subscriber certifies that the Subscriber and any beneficial purchaser for whom the Subscriber is acting is resident in the jurisdiction shown as the "Address of the Subscriber". The address of the Subscriber will be accepted by the Company as a representative as to the address of residency for the Subscriber.

    

    	 	
                WITNESS:

            	 	 	 	
                EXECUTION BY SUBSCRIBER:

            	 
	 	 	 	 	 	 	 
	 	 	 	 	X	 	 
	 	Signature of witness	 	 	Signature of individual (if Subscriber is an individual)	 
	 	 	 	 	 	 	 
	 	 	 	 	X	 	 
	 	Name of witness	 	 	Authorized signatory (if Subscriber is not an individual)	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	Address of witness	 	 	Name of Subscriber (please print)	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name of authorized signatory (please print)	 
	 	 	 	 	 	 	 
	 	
                ACCEPTED this _______ day of _____________________, 2021.

                WOLVERINE TECHNOLOGIES CORP.
Per:

            	 	 	 	 	 
	 	 	 	Address of Subscriber (residence)	 
	 	 	 	 	 	 
	 	Authorized signatory	 	 	Telephone number and e-mail address	 

    By signing this acceptance, the Company agrees to be bound by all representations, warranties, covenants and agreements on pages 3-11 hereof.

    This Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument.  Delivery of an executed copy of this Subscription Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Subscription Agreement as of the date hereinafter set forth.

    

    
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    Alberta Securities Commission (the ASC)

    Wolverine Technologies Corp. (the Issuer)

    The undersigned hereby acknowledges receipt of a copy of the failure-to-file cease trade order (the FFCTO) issued by the Executive Director of the ASC on October 5, 2020 with respect to trading of the Issuer's securities.

    The undersigned also acknowledges receipt of the Partial Revocation Order issued by Executive Director of the ASC on September 22, 2021, permitting the Issuer to conduct a private placement of an amount of up to $100,000 by way of the issuance of 40,000,000 Common Shares at a price of $0.0025 (US$0.001875) per Common Share (the Offering).

    The undersigned also acknowledges that all of the Issuer's securities, including the securities issued in connection with the Offering, will remain subject to the FFCTO until such order is revoked and that the issuance of this partial revocation order does not guarantee the issuance of a full revocation in the future.

    DATE:  ___________________________

     

    __________________________________

    (Name of Subscriber - please print)

     

    By:  ______________________________

    (Signature of Subscriber)

    

    
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    THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

    NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. 

     

    PRIVATE PLACEMENT SUBSCRIPTION

    (Non U.S. Subscribers Only)

    TO: Wolverine Technologies Corp. (the "Company")
#55-11020 Williams Road, Richmond, 
British Columbia, Canada  V7A 1X8

     

    Purchase of Shares

    1. SUBSCRIPTION

    1.1 The undersigned (the "Subscriber") hereby irrevocably subscribes for and agrees to purchase the number of shares of the Company's common stock (the "Shares") as set out on page 2 of this Subscription Agreement at a price of CDN$0.0025 per Share (such subscription and agreement to purchase being the "Subscription"), for the total subscription price as set out on page 2 of this Subscription Agreement (the "Subscription Proceeds"), which Subscription Proceeds are tendered herewith, on the basis of the representations and warranties and subject to the terms and conditions set forth herein.  The Shares are referred to as the "Securities".

    1.2 The Company hereby agrees to sell, on the basis of the representations and warranties and subject to the terms and conditions set forth herein, to the Subscriber the Shares.  Subject to the terms hereof, the Subscription Agreement will be effective upon its acceptance by the Company. 

    1.3 Unless otherwise provided, all dollar amounts referred to in this Subscription Agreement are in lawful money of the United States of America.

    2. PAYMENT

    2.1 The Subscription Proceeds must accompany this Subscription Agreement.  The Subscriber authorizes the Company's lawyers to deliver the Subscription Proceeds to the Company if the Subscription Proceeds are delivered to the Company's lawyers, without further instructions required.

    2.2 The Subscriber acknowledges and agrees that this Subscription Agreement and any other documents delivered in connection herewith will be held by the Company's lawyers on behalf of the Company.  In the event that this Subscription Agreement is not accepted by the Company for whatever reason within 90 days of the delivery of an executed Subscription Agreement by the Subscriber, or the minimum offering amount is not achieved by that time, this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as set forth in this Subscription Agreement without interest or deduction.

    

    
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    2.3 Where the Subscription Proceeds are paid to the Company, the Company may treat the Subscription Proceeds as a non-interest bearing loan and may use the Subscription Proceeds prior to this Subscription Agreement being accepted by the Company.

    2.4 If resident in Canada, the Subscriber must complete, sign and return to the Company an executed copy of this Subscription Agreement, the Questionnaire attached hereto as Schedule A (the "Questionnaire") and any other schedules attached hereto.

    2.5 The Subscriber shall complete, sign and return to the Company as soon as possible, on request by the Company, any documents, questionnaires, notices and undertakings as may be required by regulatory authorities, stock exchanges and applicable law.

    3. CLOSING

    3.1 Closing of the purchase and sale of the Shares shall occur on or before ____________________, 2021 or on such other date as may be determined by the Company in its sole discretion (the "Closing Date").  The Subscriber acknowledges that Shares may be issued to other subscribers under this offering (the "Offering") before or after the Closing Date.  The Company, may, at its discretion, elect to close the Offering in one or more closings, in which event the Company may agree with one or more subscribers (including the Subscriber hereunder) to complete delivery of the Shares to such subscriber(s) against payment therefore at any time on or prior to the Closing Date.

    4. ACKNOWLEDGEMENTS OF SUBSCRIBER

    4.1 The Subscriber acknowledges and agrees that:

    (a) none of the Securities have been registered under the Securities Act of 1933, as amended (the "1933 Act"), or under any state securities or "blue sky" laws of any state of the United States, and are being offered only in a transaction not involving any public offering within the meaning of the 1933 Act, and, unless so registered, may not be offered or sold in the United States or to U.S. Persons (as defined herein), except pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act, and in each case only in accordance with applicable state and provincial securities laws;

    (b) the Company will refuse to register any transfer of any of the Securities not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act;

    (c) by completing the Questionnaire, the Subscriber is representing and warranting that the Subscriber satisfies one of the categories of registration and prospectus exemptions provided for in National Instrument 45-106 ("NI 45-106") adopted by the Canadian Securities Administrators (the "CSA");

    (d) the decision to execute this Subscription Agreement and purchase the Shares agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company and such decision is based solely upon a review of publicly available information regarding the Company available on the website of the United States Securities and Exchange Commission (the "SEC") available at www.sec.gov (the "Company Information");

    

    
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    (e) the Subscriber and the Subscriber's advisor(s) have had a reasonable opportunity to review the Company Information and to ask questions of and receive answers from the Company regarding the Offering, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information contained in the Company Information, or any other document provided to the Subscriber;

    (f) the books and records of the Company were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the Subscriber during reasonable business hours at its principal place of business and that all documents, records and books pertaining to this Offering have been made available for inspection by the Subscriber, the Subscriber's attorney and/or advisor(s);

    (g) by execution hereof the Subscriber has waived the need for the Company to communicate its acceptance of the purchase of the Shares pursuant to this Subscription Agreement;

    (h) the Company is entitled to rely on the representations and warranties and the statements and answers of the Subscriber contained in this Subscription Agreement and the Questionnaire and the Subscriber will hold harmless the Company from any loss or damage it may suffer as a result of the Subscriber's failure to correctly complete this Subscription Agreement and the Questionnaire;

    (i) the Subscriber will indemnify and hold harmless the Company and, where applicable, its respective directors, officers, employees, agents, advisors and shareholders from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any acknowledgment, representation or warranty of the Subscriber contained herein, the Questionnaire or in any other document furnished by the Subscriber to the Company in connection herewith, being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;

    (j) the issuance and sale of the Shares to the Subscriber will not be completed if it would be unlawful or if, in the discretion of the Company acting reasonably, it is not in the best interests of the Company;

    (k) the Subscriber has been advised to consult the Subscriber's own legal, tax and other advisors with respect to the merits and risks of an investment in the Securities and with respect to the applicable resale restrictions, and it is solely responsible (and the Company is not in any way responsible) for compliance with:

    (i) any applicable laws of the jurisdiction in which the Subscriber is resident in connection with the distribution of the Securities hereunder, and

    (ii) applicable resale restrictions;

    (l) the Subscriber has not acquired the Shares as a result of, and will not itself engage in, any "directed selling efforts" (as defined in Regulation S under the 1933 Act) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of any of the Shares pursuant to registration of any of the Shares pursuant to the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements and as otherwise provided herein;

    

    
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    (m) the Subscriber is outside the United States when receiving and executing this Subscription Agreement and is acquiring the Shares as principal for its own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Shares;

    (n) the statutory and regulatory basis for the exemption claimed for the offer and sale of the Shares, although in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme to evade the registration provisions of the 1933 Act;

    (o) the Company has advised the Subscriber that, if the Subscriber is a Canadian resident, the Company is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell the Shares through a person registered to sell securities and, as a consequence of acquiring the Shares pursuant to this exemption, certain protections, rights and remedies provided, including statutory rights of rescission or damages, will not be available to the Subscriber;

    (p) neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of any of the Securities;

    (q) no documents in connection with this Offering have been reviewed by the SEC or any state securities administrators;

    (r) there is no government or other insurance covering any of the Securities; and

    (s) this Subscription Agreement is not enforceable by the Subscriber unless it has been accepted by the Company, and the Subscriber acknowledges and agrees that the Company reserves the right to reject any subscription for any reason.

    5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SUBSCRIBER

    5.1 The Subscriber hereby represents and warrants to and covenants with the Company (which representations, warranties and covenants shall survive the Closing Date) that:

    (a) the Subscriber is not a U.S. Person (as defined herein);

    (b) the Subscriber is not acquiring the Shares for the account or benefit of, directly or indirectly, any U.S. Person (as defined herein);

    (c) the Subscriber is resident in the jurisdiction set out on page 2 of this Subscription Agreement;

    (d) the Subscriber:

    (i) is knowledgeable of, or has been independently advised as to, the applicable securities laws of the securities regulators having application in the jurisdiction in which the Subscriber is resident (the "International Jurisdiction") which would apply to the acquisition of the Shares,

    (ii) is purchasing the Shares pursuant to exemptions from prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the Subscriber is permitted to purchase the Shares under the applicable securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions,

    (iii) acknowledges that the applicable securities laws of the authorities in the International Jurisdiction do not require the Company to make any filings or seek any approvals of any kind whatsoever from any securities regulator of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of any of the Securities, and

    

    
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    (iv) represents and warrants that the acquisition of the Shares by the Subscriber does not trigger:

    A. any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or

    B. any continuous disclosure reporting obligation of the Company in the International Jurisdiction, and

    the Subscriber will, if requested by the Company, deliver to the Company a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Company, acting reasonably;

    (e) the Subscriber is acquiring the Shares as principal for investment only and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and, in particular, it has no intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons (as defined herein);

    (f) the Subscriber is outside the United States when receiving and executing this Subscription Agreement;

    (g) the Subscriber understands and agrees not to engage in any hedging transactions involving any of the Securities unless such transactions are in compliance with the provisions of the 1933 Act and in each case only in accordance with applicable state securities laws;

    (h) the Subscriber acknowledges that it has not acquired the Shares as a result of, and will not itself engage in, any "directed selling efforts" (as defined in Regulation S under the 1933 Act) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of any of the Shares pursuant to registration of any of the Shares pursuant to the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements and as otherwise provided herein;

    (i) the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;

    (j) the entering into of this Subscription Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the constating documents of, the Subscriber, or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;

    (k) the Subscriber has duly executed and delivered this Subscription Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;

    (l) the Subscriber has received and carefully read this Subscription Agreement;

    

    
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    (m) the Subscriber (i) has adequate net worth and means of providing for its current financial needs and possible personal contingencies, (ii) has no need for liquidity in this investment, and (iii) is able to bear the economic risks of an investment in the Securities for an indefinite period of time, and can afford the complete loss of such investment;

    (n) the Subscriber has the requisite knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment in the Securities and the Company, and the Subscriber is providing evidence of knowledge and experience in these matters through the information requested in the Questionnaire;

    (o) the Subscriber understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgements, representations, warranties, covenants and agreements contained in this Subscription Agreement and the Questionnaire, and agrees that if any of such acknowledgements, representations and agreements are no longer accurate or have been breached, the Subscriber shall promptly notify the Company;

    (p) the Subscriber is aware that an investment in the Company is speculative and involves certain risks, including the possible loss of the investment;

    (q) the Subscriber is purchasing the Shares for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest is such Shares, and the Subscriber has not subdivided his interest in the Shares with any other person;

    (r) the Subscriber is not an underwriter of, or dealer in, the shares of the Company's common stock, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Shares;

    (s) the Subscriber has made an independent examination and investigation of an investment in the Securities and the Company and has depended on the advice of its legal and financial advisors and agrees that the Company will not be responsible in anyway whatsoever for the Subscriber's decision to invest in the Securities and the Company;

    (t) if the Subscriber is acquiring the Shares as a fiduciary or agent for one or more investor accounts, the Subscriber has sole investment discretion with respect to each such account, and the Subscriber has full power to make the foregoing acknowledgements, representations and agreements on behalf of such account;

    (u) the Subscriber is not aware of any advertisement of any of the Shares and is not acquiring the Shares as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

    (v) no person has made to the Subscriber any written or oral representations:

    (i) that any person will resell or repurchase any of the Securities,

    (ii) that any person will refund the purchase price of any of the Securities,

    (iii) as to the future price or value of any of the Securities, or

    (iv) that any of the Securities will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Securities of the Company on any stock exchange or automated dealer quotation system; and

    

    
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    (w) the Subscriber acknowledges and agrees that the Company shall not consider the Subscriber's Subscription for acceptance unless the undersigned provides to the Company, along with an executed copy of this Subscription Agreement:

    (i) a fully completed and executed Questionnaire in the form attached hereto as Schedule A, and

    (ii) such other supporting documentation that the Company or its legal counsel may request to establish the Subscriber's qualification as a qualified investor.

    5.2 In this Subscription Agreement, the term "U.S. Person" shall have the meaning ascribed thereto in Regulation S promulgated under the 1933 Act and for the purpose of the Subscription Agreement includes any person in the United States.

    6. ACKNOWLEDGEMENT AND WAIVER

    6.1 The Subscriber has acknowledged that the decision to purchase the Shares was solely made on the Company Information.  The Subscriber hereby waives, to the fullest extent permitted by law, any rights of withdrawal, rescission or compensation for damages to which the Subscriber might be entitled in connection with the distribution of any of the Shares.

    7. REPRESENTATIONS AND WARRANTIES WILL BE RELIED UPON BY THE COMPANY

    7.1 The Subscriber acknowledges that the acknowledgements, representations and warranties contained herein and in the Questionnaire are made by it with the intention that they may be relied upon by the Company and its legal counsel in determining the Subscriber's eligibility to purchase the Shares under applicable securities legislation, or (if applicable) the eligibility of others on whose behalf it is contracting hereunder to purchase the Shares under applicable securities legislation.  The Subscriber further agrees that by accepting delivery of the certificates representing the Shares, it will be representing and warranting that the acknowledgements representations and warranties contained herein and in the Questionnaire are true and correct as of the date hereof and will continue in full force and effect notwithstanding any subsequent disposition by the Subscriber of such Shares.

    8. RESALE RESTRICTIONS

    8.1 The Subscriber acknowledges that any resale of the Securities will be subject to resale restrictions contained in the securities legislation applicable to the Subscriber or proposed transferee.  The Subscriber acknowledges that none of the Securities have been registered under the 1933 Act or the securities laws of any state of the United States.  None of the Securities may be offered or sold in the United States unless registered in accordance with federal securities laws and all applicable state securities laws or exemptions from such registration requirements are available.

    9. LEGENDING AND REGISTRATION OF SUBJECT SECURITIES

    9.1 The Subscriber hereby acknowledges that upon the issuance thereof, and until such time as the same is no longer required under the applicable securities laws and regulations, the certificates representing the Shares will bear a legend in substantially the following form:

    THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").

    

    
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    NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.  "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

    9.2 The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Subscription Agreement.

    10. COLLECTION OF PERSONAL INFORMATION

    10.1 The Subscriber acknowledges and consents to the fact that the Company is collecting the Subscriber's personal information for the purpose of fulfilling this Subscription Agreement and completing the Offering.  The Subscriber's personal information (and, if applicable, the personal information of those on whose behalf the Subscriber is contracting hereunder) may be disclosed by the Company to (a) stock exchanges or securities regulatory authorities, (b) the Company's registrar and transfer agent, (c) Canadian tax authorities, (d) authorities pursuant to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and (e) any of the other parties involved in the Offering, including legal counsel, and may be included in record books in connection with the Offering.  By executing this Subscription Agreement, the Subscriber is deemed to be consenting to the foregoing collection, use and disclosure of the Subscriber's personal information (and, if applicable, the personal information of those on whose behalf the Subscriber is contracting hereunder) and to the retention of such personal information for as long as permitted or required by law or business practice.  Notwithstanding that the Subscriber may be purchasing Shares as agent on behalf of an undisclosed principal, the Subscriber agrees to provide, on request, particulars as to the identity of such undisclosed principal as may be required by the Company in order to comply with the foregoing.

    11. COSTS

    11.1 The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber (including any fees and disbursements of any special counsel retained by the Subscriber) relating to the purchase of the Shares shall be borne by the Subscriber.

    12. GOVERNING LAW

    12.1 This Subscription Agreement is governed by the laws of the State of Nevada.  The Subscriber, in its personal or corporate capacity and, if applicable, on behalf of each beneficial purchaser for whom it is acting, irrevocably attorns to the exclusive jurisdiction of the Courts of the State of Nevada.

    

    
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    13. SURVIVAL

    13.1 This Subscription Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the purchase of the Shares by the Subscriber pursuant hereto.

    14. ASSIGNMENT

    14.1 This Subscription Agreement is not transferable or assignable.

    15. SEVERABILITY

    15.1 The invalidity or unenforceability of any particular provision of this Subscription Agreement shall not affect or limit the validity or enforceability of the remaining provisions of this Subscription Agreement.

    16. ENTIRE AGREEMENT

    16.1 Except as expressly provided in this Subscription Agreement and in the agreements, instruments and other documents contemplated or provided for herein, this Subscription Agreement contains the entire agreement between the parties with respect to the sale of the Shares and there are no other terms, conditions, representations or warranties, whether expressed, implied, oral or written, by statute or common law, by the Company or by anyone else.

    17. NOTICES

    17.1 All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of telecommunication.  Notices to the Subscriber shall be directed to the address on page 2 and notices to the Company shall be directed to it at the first page of this Subscription Agreement.

    18. COUNTERPARTS AND ELECTRONIC MEANS

    18.1 This Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument.  Delivery of an executed copy of this Subscription Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Subscription Agreement as of the date hereinafter set forth.

    

    SCHEDULE A

    CANADIAN QUESTIONNAIRE

    All capitalized terms herein, unless otherwise defined, have the meanings ascribed thereto in the Subscription Agreement.

    The purpose of this Questionnaire is to assure the Company that the Subscriber will meet certain requirements of National Instrument 45-106 ("NI 45-106").  The Company will rely on the information contained in this Questionnaire for the purposes of such determination.

    The Subscriber covenants, represents and warrants to the Company that:

    1. the Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the transactions detailed in the Subscription Agreement and the Subscriber is able to bear the economic risk of loss arising from such transactions;

    2. the Subscriber is (tick one or more of the following boxes):

    	
                (A)

            	
                a director, executive officer, employee or control person of the Company or an affiliate of the Company

            	☐
	 	 	 
	
                (B)

            	
                a spouse, parent, grandparent, brother, sister or child of a director, executive officer, founder or control person of the Company or an affiliate of the Company

            	☐
	 	 	 
	
                (C)

            	
                a parent, grandparent, brother, sister or child of the spouse of a director, executive officer, founder or control person of the Company or an affiliate of the Company

            	☐
	 	 	 
	
                (D)

            	
                a close personal friend of a director, executive officer, founder or control person of the Company

            	☐
	 	 	 
	
                (E)

            	
                a close business associate of a director, executive officer, founder or control person of the Company or an affiliate of the Company

            	☐
	 	 	 
	
                (F)

            	
                an accredited investor

            	☐
	 	 	 
	
                (G)

            	
                a company, partnership or other entity of which a majority of the voting securities are beneficially owned by, or a majority of the directors are, persons described in paragraphs A to F

            	☐
	 	 	 
	
                (H)

            	
                a trust or estate of which all of the beneficiaries or a majority of the trustees or executors are persons described in paragraphs A to F

            	☐
	 	 	 
	
                (I)

            	
                purchasing as principal Securities with an aggregate acquisition cost of not less than CDN$150,000

            	☐

    

    

    
        - 2 -

    

    3. if the Subscriber has checked box B, C, D, E, G or H in Section 2 above, the director, executive officer, founder or control person of the Company with whom the undersigned has the relationship is:

    
        	 

    

    (Instructions to Subscriber: fill in the name of each director, executive officer, founder and control person which you have the above-mentioned relationship with.  If you have checked box G or H, also indicate which of A to F describes the securityholders, directors, trustees or beneficiaries which qualify you as box G or H and provide the names of those individuals.  Please attach a separate page if necessary).

    4. if the Subscriber is resident in Ontario, the Subscriber is (tick one or more of the following boxes):

    	 	
                (A)

            	
                a founder of the Company

            	☐
	 	 	 	 
	 	
                (B)

            	
                an affiliate of a founder of the Company

            	☐
	 	 	 	 
	 	
                (C)

            	
                a spouse, parent, brother, sister, grandparent or child of a director, executive officer or founder of the Company

            	☐
	 	 	 	 
	 	
                (D)

            	
                a person that is a control person of the Company

            	☐
	 	 	 	 
	 	
                (E)

            	
                an accredited investor

            	☐
	 	 	 	 
	 	
                (F)

            	
                purchasing as principal Securities with an aggregate acquisition cost of not less than CDN$150,000

            	☐

    5. if the Subscriber has checked box A, B, C or D in Section 4 above, the director, executive officer, founder or control person of the Company with whom the undersigned has the relationship is:

    
        	 

    

    (Instructions to Subscriber: fill in the name of each director, executive officer, founder, affiliate and control person which you have the above-mentioned relationship with.)

    6. if the Subscriber has ticked box F in Section 2 or box E in Section 4 above, the Subscriber satisfies one or more of the categories of "accredited investor" (as that term is defined in NI 45-106) indicated below (please check the appropriate box):

    ☐ (a) a Canadian financial institution as defined in National Instrument 14-101, or an authorized foreign bank listed in Schedule III of the Bank Act (Canada);

    ☐ (b) the Business Development Bank of Canada incorporated under the Business Development Bank Act (Canada);

    ☐ (c) a subsidiary of any person referred to in any of the foregoing categories, if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;

    ☐ (d) an individual registered or formerly registered under securities legislation in a jurisdiction of Canada, as a representative of a person or company registered under securities legislation in a jurisdiction of Canada, as an adviser or dealer, other than a limited market dealer registered under the Securities Act (Ontario) or the Securities Act (Newfoundland);

    

    
        - 3 -

    

    ☐ (e) an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);

    ☐ (f) the government of Canada or a province, or any crown corporation or agency of the government of Canada or a province;

    ☐ (g) a municipality, public board or commission in Canada and a metropolitan community, school board, the Comite de gestion de la taxe scholaire de l'ile de Montreal or an intermunicipal management board in Québec;

    ☐ (h) a national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency thereof;

    ☐ (i) a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a pension commission or similar regulatory authority of a jurisdiction of Canada;

    ☐ (j) an individual who either alone or with a spouse beneficially owns, directly or indirectly, financial assets (as defined in NI 45-106) having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds CDN$1,000,000;

    ☐ (k) an individual whose net income before taxes exceeded CDN$200,000 in each of the two more recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of those years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;

    ☐ (l) an individual who, either alone or with a spouse, has net assets of at least CDN $5,000,000;

    ☐ (m) a person, other than an individual or investment fund, that had net assets of at least CDN$5,000,000 as reflected on its most recently prepared financial statements;

    ☐ (n) an investment fund that distributes it securities only to persons that are accredited investors at the time of distribution, a person that acquires or acquired a minimum of CDN$150,000 of value in securities, or a person that acquires or acquired securities under Sections 2.18 or 2.19 of NI 45-106;

    ☐ (o) an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;

    ☐ (p) a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;

    ☐ (q) a person acting on behalf of a fully managed account managed by that person, if that person (i) is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction, and (ii) in Ontario, is purchasing a security that is not a security of an investment fund;

    ☐ (r) a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility advisor or an advisor registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;

    

    
        - 4 -

    

    ☐ (s) an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;

    ☐ (t) a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law are persons or companies that are accredited investors;

    ☐ (u) an investment funds that is advised by a person registered as an advisor or a person that is exempt from registration as an advisor; or

    ☐ (v) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as (i) an accredited investor, or (ii) an exempt purchaser in Alberta or British Columbia after this instrument comes into force;

    The Subscriber acknowledges and agrees that the Subscriber may be required by the Company to provide such additional documentation as may be reasonably required by the Company and its legal counsel in determining the Subscriber's eligibility to acquire the Securities under relevant legislation.

     IN WITNESS WHEREOF, the undersigned has executed this Questionnaire as of the ________ day of__________________________, 2021.

     

    	If an Individual:	 	If a Corporation, Partnership or Other Entity:
	 	 	 
	 	 	 
	Signature	 	Print or Type Name of Entity
	 	 	 
	 	 	 
	Print or Type Name	 	Signature of Authorized Signatory
	 	 	 
	 	 	 
	 	 	Type of Entity_

Exhibit 10.1
COST SHARE FUNDING ASSUMPTION AGREEMENT
This COST SHARE FUNDING ASSUMPTION AGREEMENT (this “Agreement”) is made, effective as of the Effective Date (defined below), by and between GENERAL ATOMICS, a California corporation (“GA”), and RARE ELEMENT RESOURCES, INC., a Wyoming corporation (“RER”) (each a “Party” and collectively the “Parties”).  
RECITALS
WHEREAS RER controls certain mineral rights in the Black Hills National Forest of the Bearlodge Ranger District in Crook County, Wyoming, and has developed plans for a mineral processing facility near Upton, Wyoming, expected to be a source of rare earth elements (“REEs”);
WHEREAS GA and some of its affiliates are engaged in, among other activities, the management of complex technical programs for agencies of the U.S. government, as well as the processing, separation, and production of minerals and the design and engineering of chemical extraction systems pertinent to the processing, separation, and production of REEs;
WHEREAS GA previously responded, with support from RER and others, to Funding Opportunity Announcement Number DE-FOA-0002322, as modified (the “FOA”), issued by the Office of Energy Efficiency and Renewable Energy of the U.S. Department of Energy (the “DOE”);
WHEREAS GA’s response to the FOA proposed a three-phase project consisting of the design, construction, and operation of a demonstration plant in Upton, Wyoming, with GA serving as the prime recipient and RER (and other parties) serving as subrecipients or subcontractors (the “Project”);
WHEREAS the DOE has awarded a cooperative agreement, dated October 1, 2021 (with the reference number DE-0002322), to GA for the Project (the “Cooperative Agreement”); 
WHEREAS the Cooperative Agreement provides that up to forty-four million dollars (US$44,000,000) in Allowable Costs (defined below) for the Project would be funded on a cost share basis, fifty percent (50%) by the DOE and fifty percent (50%) by a non-Federal entity;
WHEREAS, in light of the Cooperative Agreement, RER desires to pay for all costs incurred by GA on the Project (including all costs for payments to its subrecipients and subcontractors on the Project) other than (i) any Allowable Costs on the Project funded by the DOE and (ii) any Unallowable Costs (defined below) on the Project above an amount equal to three  percent (3.0%) of the total amount of Allowable Costs to be paid by RER, and as part of the foregoing desired commitment RER desires to assume the above-noted non-Federal entity’s fifty percent (50%) cost share funding obligation pursuant to the Cooperative Agreement, and GA desires to accept RER’s offer; and
WHEREAS the Parties desire to enter into this Agreement to memorialize the terms and conditions of the foregoing.  

Page 1 of 8

AGREEMENT
NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants, and agreements contained in this Agreement, and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:
1.DEFINITIONS.
1.1.“Agreement” has the meaning set forth in the preamble. 
1.2.“Allowable Cost” means (as used in this Agreement) any cost incurred by GA under the Cooperative Agreement (including for payments to any subrecipient or subcontractor on the Project, and including any cost incurred in connection with the Project prior to the date of the Cooperative Agreement) that is authorized and deemed allowable by the DOE under FAR Part 31 and applicable DOE cost principles.
1.3.“Budget Period 1” means October 1, 2021 through September 30, 2022.
1.4.“Budget Period 2” means October 1, 2022 through September 30, 2023.
1.5.“Cooperative Agreement” has the meaning set forth in the recitals.
1.6.“Dispute” has the meaning set forth in Section 7.6.
1.7.“DOE” has the meaning set forth in the recitals.
1.8.“Effective Date” has the meaning set forth in Section 6.
1.9.“FOA” has the meaning set forth in the recitals.
1.10.“GA” has the meaning set forth in the preamble. 
1.11.“Party” and “Parties” have the meanings set forth in the preamble.
1.12.“Project” has the meaning set forth in the recitals.
1.13.“Project Completion Date” means the date of completion of the Project pursuant to the Cooperative Agreement.
1.14.“Project Cost” means any Allowable Cost or any Unallowable Cost, as such terms are defined in this Agreement.
1.15.“REEs” has the meaning set forth in the recitals.
1.16.“RER” has the meaning set forth in the preamble. 
1.17.“RER-Assumed Costs” has the meaning set forth in Section 2.1.
1.18.“Unallowable Cost” means (as used in this Agreement) any cost incurred by GA in connection with the Project (including for payments to any subrecipient or subcontractor on the Project, and including any cost incurred in connection with the Project prior to the date of the Cooperative Agreement) that is not allowable under FAR Part 31 and applicable DOE cost principles.

Page 2 of 8

1.19.“U.S.” means the United States of America.   
	2.	ASSUMPTION OF NON-FEDERAL COST SHARE AND OTHER PROJECT COSTS. 

2.1.Assumption and Payment Obligations.  RER hereby covenants to assume and pay for all Project Costs other than (a) any Allowable Costs funded by the DOE and (b) any Unallowable Costs above an amount equal to three percent (3.0%) of the total amount of Allowable Costs to be paid by RER (collectively, all Project Costs less the amounts to be deducted under the foregoing (a) and (b), the “RER-Assumed Costs”).
2.2.Invoicing.  Commencing on the Effective Date and continuing until the Project Completion Date, GA will invoice RER at the end of each month for all RER-Assumed Costs incurred to the date of such invoice in connection with the Project, to the extent not included in a prior invoice.  GA will provide reasonable documentation to RER regarding cost items incurred on the Project, and upon reasonable written request from RER, GA shall provide additional specific information regarding cost items incurred on the Project.
2.3.Payment Terms.  RER shall make a prepayment to GA of two million, seven hundred thousand dollars (US$2,700,000) on the Effective Date via wire transfer to an account designated in writing by GA, and such prepayment shall be applied to the first two million, seven hundred thousand dollars (US$2,700,000) of RER-Assumed Costs incurred on the Project.  Additional prepayments may be required early during Budget Period 2 of the Project to address equipment procurement and demonstration site refurbishment/upgrade requirements; the number and amount of such additional prepayments are dependent on the results of the design effort and procurement plans generated during Budget Period 1, and will be subject to the mutual written agreement of GA and RER to be negotiated by the Parties following the Effective Date.  Other than the foregoing prepayment(s), each payment under this Agreement shall be made by RER for the RER-Assumed Costs invoiced to RER, within thirty (30) days after the date of invoice.
2.4.Letter of Commitment.  Upon GA’s written request, after the Effective Date, RER shall execute and deliver to GA a letter of commitment for submission to the DOE, in a form acceptable to GA, confirming RER’s assumption of the cost share funding obligation as set forth in this Agreement.
3.TERM AND TERMINATION. 
3.1.Term.  The term of this Agreement shall commence on the Effective Date and continue until the Project Completion Date, unless terminated earlier as set forth under Section 3.2.
3.2.Termination.  Either Party may terminate this Agreement immediately upon written notice to the other Party in the event any of the following occurs: (a) the Cooperative Agreement is terminated for any reason prior to the Project Completion Date; (b) the other Party commits a material breach of its obligations hereunder, and fails to remedy such breach within thirty (30) days of written notice thereof; or (c) the other Party makes an assignment for the benefit of its creditors or files a petition in bankruptcy or makes a proposal or is adjudicated insolvent or bankrupt or such other Party commences any proceedings under any law or statute respecting insolvency or bankruptcy or any such proceedings are commenced against such other Party or a receiver, receiver-manager or trustee is appointed for all or a material part of the property of such other Party, any of which proceedings, if involuntary, shall not have been dismissed within sixty (60) days after the date of filing.

Page 3 of 8

3.3.Effects of Termination.  Upon any early termination of this Agreement, RER shall pay for all costs incurred by or on behalf of GA to wind down the Project other than any Allowable Costs for such wind-down paid for by the DOE; provided, however, that GA will use commercially reasonable efforts to minimize the costs of winding down and terminating the Project.  Except as set forth in the foregoing sentence, upon the expiration or termination of this Agreement, RER shall be responsible for paying all RER-Assumed Costs incurred as of the effective date of such expiration or termination.
3.4.Survival.  Any provision of this Agreement that imposes or contemplates continuing obligations on a Party will survive the expiration or termination of this Agreement.
4.SUBAWARD.
As between the Parties, all matters related to the Project, including but not limited to allocation to RER of a portion of the scope of work on the Project, will be governed by the terms set forth in the subaward agreement to be negotiated by the Parties.
5.REPRESENTATIONS AND WARRANTIES.
5.1.Representations and Warranties of GA.  As of the Effective Date, GA represents and warrants to RER as follows:
5.1.1.Organization.  GA is a corporation duly organized, validly existing and in good standing under the laws of the state of California and has the corporate power and authority to own or lease its property and assets and to carry on its business as presently conducted.
5.1.2.Authorization.  GA has the corporate power and authority to execute and deliver this Agreement and to perform, or cause to be performed, its obligations under this Agreement.  The execution and delivery of this Agreement has been duly authorized by GA, and no other corporate proceedings on the part of GA are necessary to authorize this Agreement.  This Agreement has been duly authorized, executed and delivered by GA and constitutes a valid and binding agreement of GA, enforceable against GA in accordance with its terms, except as such may be subject to or limited by bankruptcy, insolvency, reorganization, or other laws relating to or affecting creditors’ rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
5.1.3.Approvals.  The execution, delivery and performance of this Agreement by GA do not require any consent of, notice to or action by any lender or governmental entity, which consent, notice or action has not been made, given or otherwise accomplished. 
5.2.Representations and Warranties of RER.  RER represents and warrants to GA as follows:
5.2.1.Organization.  RER is a corporation duly organized, validly existing and in good standing under the laws of the state of Wyoming and has the corporate power and authority to own or lease its property and assets and to carry on its business as presently conducted.
5.2.2.Authorization.  RER has the corporate power and authority to execute and deliver this Agreement and to perform, or cause to be performed, its obligations under this Agreement.  The execution and delivery of this Agreement has been duly authorized by RER, and no other corporate proceedings on the part of RER are necessary to authorize this Agreement.  This Agreement has been duly authorized, executed and delivered by RER and constitutes a valid and binding agreement of RER, enforceable against RER in accordance with its terms, except as 

Page 4 of 8

such may be subject to or limited by bankruptcy, insolvency, reorganization, or other laws relating to or affecting creditors’ rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
5.2.3.Approvals.  The execution, delivery and performance of this Agreement by RER do not require any consent of, notice to or action by any lender or governmental entity, which consent, notice or action has not been made, given or otherwise accomplished. 
6.CONDITIONS PRECEDENT.
Notwithstanding anything to the contrary in this Agreement, this Agreement shall not become effective, and each Party’s respective obligations under this Agreement shall not become binding, until the first date on which the following conditions precedent have been satisfied (the “Effective Date”): (a) the rights offering by RER’s parent Rare Element Resources Ltd. (“RER Ltd.”), as approved by the RER Ltd. board of directors on October 1, 2021, has completed; and (b) RER Ltd. has raised aggregate proceeds of at least twenty-five million United States Dollars (US$25,000,000) pursuant thereto.
7.MISCELLANEOUS.
7.1.No Agency, Joint Venture or Partnership.  The Parties are and will at all times remain independent contractors and are not and shall not represent themselves to be the agent, joint venturer, partner or employee of the other Party or to be related to the other Party other than as an independent contractor.  No representations will be made or acts taken by either Party which could establish any apparent relationship of agency, joint venture, partnership or employment and neither Party shall be bound in any manner whatsoever by any agreements, warranties or representations made by the other Party or with respect to any other action of the other Party.
7.2.Notices.  All notices, requests, demands, consents and other similar communications under this Agreement shall be in writing (whether or not the other provisions of this Agreement expressly so provide), and shall be deemed to have been given (a) if delivered by hand, upon receipt; or (b) if sent by certified mail, upon receipt of confirmation of delivery, and, in each case (a) or (b), addressed as follows: 
	If to GA:
	General Atomics
3550 General Atomics Court  
San Diego, California 92121
Attention: Contracts Department
​

	with a copy to:
​
	General Atomics
3550 General Atomics Court  
San Diego, California 92121
Attention: Law Department
​

	If to RER:
​
​
​
​
	Rare Element Resources, Inc.
Attention: Randy Scott
​
Hand Delivery Address:
4 Shining Oak Drive
Littleton, Colorado 80127
​
Mailing Address: 
PO Box 271049

Page 5 of 8

		Littleton, Colorado 80127
​

	with a copy to:
​
	Rare Element Resources, Inc.
Attn: Kelli Kast
​
Hand Delivery Address: 
4 Shining Oak Drive
Littleton, Colorado 80127
​
Mailing Address:
PO Box 271049
Littleton, Colorado 80127
​

7.3.Assignment; Successors and Assigns.  This Agreement may not be assigned by either Party without the other Party’s prior written consent, and any attempt to so assign this Agreement, without such consent, will be void.  Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the Parties, and their respective successors and assigns.
7.4.Publicity.  Without obtaining the other Party’s prior written consent, neither Party shall make any public announcement concerning this Agreement or the subject matter hereof, except where such announcement is required to meet stock exchange or other legal requirements, and in such event, the information to be disclosed shall first be notified to the other Party to enable it to comment thereon prior to publication.
7.5.Governing Law.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the state of Colorado, without reference to the choice of law or conflicts of law principles thereof.   
7.6.Arbitration.  Any dispute, claim, or controversy arising out of or in connection with this Agreement or the relationship of the Parties, or the breach, termination, enforcement, interpretation, or validity of this Agreement (“Dispute”), including the determination of the scope or applicability of this agreement to arbitrate, shall be finally decided by arbitration in accordance with JAMS Comprehensive Arbitration Rules and Procedures before a panel of three (3) JAMS arbitrators, one (1) selected by GA, one (1) selected by RER, and the third (3rd), who shall be the chairman, selected by agreement of the two (2) arbitrators selected by the Parties.  In the event the two (2) arbitrators fail to agree on the selection of the third (3rd) arbitrator within thirty (30) days following the selection of the second (2nd) arbitrator, the chairman shall be selected in accordance with the JAMS Comprehensive Arbitration Rules and Procedures.  Subject to any valid requirements of any applicable U.S. statute, the arbitration shall be seated in Denver, Colorado, and except as the arbitrators may direct for good cause shown, the hearings shall be conducted in Denver, Colorado.  Each Party may be represented by counsel in any such arbitration.  During the course of any arbitration hereunder, the Parties will (i) each bear its own costs and attorneys’ fees and any expert witness fees, and (ii) each bear equally the arbitrators’ fees and expenses.  The arbitration shall be conducted in English.  Any arbitration under this Agreement shall be confidential, and the Parties may request that the arbitrators issue appropriate protective orders to safeguard each Party’s confidential information.  Except as required by applicable law, neither Party may make (or instruct the arbitrators to make) any public announcement with respect to the proceedings or decision of the arbitrators without the prior written consent of the other Party.  Any award rendered by the arbitrators shall be final and binding, and judgment may be entered upon it in any court having jurisdiction.  The arbitrators shall have the authority to award temporary, preliminary, and permanent injunctive and equitable relief in the arbitration (in addition to any monetary relief); provided, however, that either Party 

Page 6 of 8

may opt to seek equitable relief, including emergency injunctive relief, at any time, from a court of competent jurisdiction.  The existence of any Dispute, and any related resolution, mediation settlement or arbitration decision, shall be kept in confidence by the Parties, except as required in connection with the recognition and/or enforcement of an arbitration decision or as otherwise required by applicable law.
7.7.Jury Waiver.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY).
7.8.No Intention to Benefit Third Parties.  This Agreement is not intended to, and shall not, benefit any third party, or create any third-party beneficiary rights.  
7.9.Severability.  Should any one or more of the provisions of this Agreement be determined to be invalid, illegal, or unenforceable in any respect, the validity and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby and the Parties shall endeavor in good faith to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as practicable to that of the invalid, illegal or unenforceable provisions.
7.10.Amendments and Waivers. This Agreement may only be amended or modified with the written consent of both Parties.  The failure or delay of either Party at any time or times to require performance of any provision of this Agreement shall in no manner affect its right to enforce that provision.  No single or partial waiver by either Party of any condition of this Agreement, or any breach of any term, agreement, or covenant of this Agreement or the inaccuracy of any representation or warranty of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be construed or deemed to be a further or continuing waiver of any such condition, breach or inaccuracy or a waiver of any other condition, breach or inaccuracy. 
7.11.Counterparts.  This Agreement may be executed in counterparts, all of which taken together shall be deemed to be one and the same agreement.  Execution and delivery of this Agreement by delivery of an electronically recorded copy bearing a copy of the signature of a Party shall constitute a valid and binding execution and delivery of this Agreement by such Party.
7.12.Entire Agreement.  This Agreement supersedes all prior arrangements, understandings, letters of intent, conversations, and negotiations between the Parties with respect to the subject matter of this Agreement.  This Agreement constitutes the entire agreement, both written and oral, between the Parties with respect to the subject matter hereof, and all prior agreements respecting the subject matter hereof, either written or oral, express, or implied, shall be abrogated and canceled, and are null and void and of no effect.
[signature page follows]

Page 7 of 8

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be duly executed by its authorized representative effective as of the Effective Date.
	GENERAL ATOMICS
	RARE ELEMENT RESOURCES, INC.

	​
By:   /s/ Robert Khan for Scott Forney 
Name: Scott Forney 
Title: President, GA-EMS
	​
By:  /s/ Randall J. Scott 
Name: Randall J. Scott 
Title: President  

Execution Date; November 30, 2021 

Page 8 of 8

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